Essential Money Tips for New College Graduates

Congratulations!  You’re a college graduate, that’s an impressive achievement and you deserve recognition for all of your hard work.  The most common question new college grads have is, “Now what?”

Making a financial plan now can get you the head start in life you need.  Courtesy of the professionals at BW James, here are some essential tips for new college graduates to put their best foot forward:

Pick up a book or two on money basics

We know reading a book is probably the last thing you want to do after conquering that reading list from college, but you know better than anyone there’s nothing like an education so it is a good idea to educate yourself on the basics of budgeting and financial planning.

Make a budget

After you get a few months of work under your belt you’ll be used to the amount of take-home pay you’re earning.  That’s when it is time to figure out how much money you can afford to spend each month.  Mapping out your budget is a great way to quickly uncover whether you’re on the rocky road to spending more than you make – as many college graduates start out doing.

Cut the housing costs

Don’t jump to quickly into having your own place, whether you are able to stay at your parents for a year or two or getting a roommate to split that apartment bill, lowering your rent costs as much as possible will allow you to use that extra money to start slashing into those looming student loans.

Steer clear of debt

You’re likely to be bombarded with credit card offers, and while they may be tempting, do everything you can to keep them in the trash.  Acquiring more debt than you already have can be a dream killer.  Debt will prevent you from taking a job you might love because the salary won’t be high enough to meet your monthly obligations.

It can even shut the door on a job offer altogether, because an increasing number of employers are checking prospective employees credit reports as part of their due diligence.

Top Priority: Emergency Fund

Start building your rainy day money immediately.  The rule of thumb is to set aside the equivalent of three to six months’ worth of living expenses.  A year is ideal, but that can take time to build, but you should make this a personal goal.  

A money market mutual fund or a separate bank savings account are smart places to put this rainy day money.

These are just a few smart ways to start saving for your life today.  A head-start is invaluable and goes a long way to a long, happy, and stress-free life.  For more information about financial planning and the professionals at BW James visit http://www.bwjames.com 

Keep Your Home Warm for Less

It is winter time in Texas, recently the temperature has dropped and people are turning on the heaters for the first time this year.  Courtesy of BW James here are a few tips you can use to reduce the cost of your heating bill during these cold months.

Turn Down the Thermostat

This one is kind of a “duh” tip, but you’d be surprised how many people forget to do it.  Turning down the thermostat when you head off to work and when you go to bed can add up to at least 16 hours a day and save you about 14% on your heating bill.  In fact the rule of thumb is that you save about 3% on your heating bill for every degree that you set back on your thermostat full time.

Watch Those Fans

In just one hour, a hard-working bathroom or kitchen fan can completely expel a houseful of warm air.  Use them when you need to and shut them off when the job is done.

Close the Fireplace Damper

Heat rises, and an open damper is essentially a hole in the roof.  In fact you should limit the use of your fireplace, since fires actually suck the heat from a room.  Light it when you want the ambience they provide, but really they aren’t viable for heating the house in conjunction with central heat.

Turn Down the Water Heater

Reducing the temperature of the water in the water heater to 115-120 degrees reduces the power use without a noticeable difference when you take that morning shower.

Open the Curtains

When the sun is up, let it in.  Opening curtains and shades on south-facing windows during the day allows solar radiation to warm a living space, just remember to close them at night to reduce the heat from escaping.

These are some cost-free ways to reduce that heating bill.  We hope everyone stays warm this winter, and hopefully these tips can allow you to do so for less.  

For more information about the professionals at BW James visit http://www.bwjames.com 

How to Save During the Holidays

The leaves are falling, the temperature dropping, and the people are shopping.  The holidays are nigh and Christmas is just around the corner.  Tis the season for giving, but with a little planning you can give and save at the same time.  Courtesy of the professionals at BW James, here are some money-saving Holiday tips.

Budget, Budget, and Budget

Since your holiday budget is likely to be similar to what you’ve spent in the past few years, it’s relatively easy to come up with a budget and have an idea of what you’re going to be spending.  Advanced planning will take away quite a bit of stress come December and if you list out everyone you need to buy for and how much you would like to spend now you’ll save money in the long run.  Waiting until the week or two before Christmas will make you more likely to spend more on a gift just to get it over with.

Bring a Lunch

If you’re in the habit of going out to lunch everyday now is the time to start packing a sandwich.  It may not seem like much at first, but if you take $8 a day and put it back instead of spending it on grub for the next 30 days, you’ll still have over two weeks until Christmas and a cool $240 to cross some names off the gift list.

Be Creative

Do you normally buy for co-workers, neighbors, or other non-relatives?  You can save money by simply being creative.  For the crafty people you can find out things they really enjoy and make a cross-stitch or a painting or something like that.  Or perhaps you can simply find out their favorite dessert and bake it for them.  These type of gifts are easier on the wallet and because they’re thoughtful, go a much longer way than an overpriced generic gift at the department store.

Be Prepared

Make a list of everything you’ll need during the holidays, whether it be plenty of napkins for that Christmas meal, batteries, drinks, etc.  Stock up on everything you’ll need.  This will save you more stress than money, but stocking up on supplies at the grocery store is a lot cheaper than realizing you need something Christmas day and buying it at a convenience store.

Hopefully these few tips will save you some stress and money during the holidays.  For more information about financial planning and the professionals at BW James visit http://www.bwjames.com

Year End Money Saving Tips

It is now October and 2013 is almost completely over, and now it is time to start doing some year-end planning to save money during the rapidly approaching tax season.  Courtesy of the professionals at BW James, here are a few tips to be better prepared.

Get Organized

Gathering your tax data as soon as possible can save you a lot of trouble and put you in a better position to save money during tax time.  Round up all receipts and canceled checks, check brokerage statements for year-to-date gains or losses and make a checklist of accounts to keep track of the 1099s.  Organizing your files now will avoid some of the stress that would be there later.

Fund Your Retirement

There’s a bounty of ways to benefit on your taxes when funding an IRA.  The professionals at BW James can advise you on which way is best for you.  Perhaps it’s time convert that traditional IRA to a Roth IRA.  Be sure to talk to us about your retirement options.

Pay Off Deductible Expenses

Paying your state income tax estimate before December 31 can accelerate your federal deduction.  You can also pay property taxes early, make an extra mortgage payment, or opt to have dental work or deductible elective surgery you planned on having before the year-end.

Give to Charity

Do you donate to charities each year?  Doing so before December 31st will allow you to deduct the amount from your taxes sooner.  Be sure to work with BW James to coordinate the best time possible for charitable gifts to ensure you’re benefitted on your taxes.

Properly preparing for tax season at the end of the year can put yourself in great position for the April deadline.  These are just a few ways you can explore to get ready.

For more information about Barry W James and the professionals at BW James visit http://www.bwjames.com