Three Small Ways to Save Big

Being financially prudent doesn’t have to be complex. Rebalancing your portfolio or maximizing the contributions of your 401(k) are invaluable moves. But not everyone has the knowledge or the knack for careful investing and budgeting. That’s why Money is the Root exists: to help those in the know and teach those who don’t know. So, if you find big financial decisions daunting don’t despair. In fact, you can save more than you realize with simple everyday solutions:

1. Household      Shopping – Anyone who runs a home, whether alone or with their partner,      will be aware of how quickly one can get through household supplies.      Especially if children are part of said household. CRASH! There go the      paper towels you just purchased and, oh, if only you’d thought to buy an      extra bottle of the hardwood floor cleaner, it would sure come in handy      right about now. That’s why buying in bulk is usually the smart financial      move. Next time you’re at Walgreens make sure to opt for the multi-pack on offer and stock      up on peace of mind.

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Whatcha Gonna Do When They Come For You?

Top Tips for When the IRS Garnishes your Wages

Two words that no one wants associated with them: wage garnishment. If you are behind on paying back your taxes, the IRS can contact your employer and have your wages garnished. They send notifications leading up to this action, but it’s better to get ahead of the problem rather than let it ride out. Your employer has to comply with a wage garnishment and the IRS can take 25 percent or more of your income until your debts are paid off. It’s safe to say that this is not an ideal situation.

Wage garnishments only occur after you have not paid your taxes and have ignored the warnings from the IRS. When you receive notifications from the government, take them seriously. They will move more quickly than you think and then you’ll have fewer options. Fortunately, if you do face wage garnishment, there are options to delay the IRS or stop these proceedings altogether.

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3 Easy Ways to Save Money When Staying Home With Kids

The Following is Post from Kyle over at The Penny Hoarder

When I made the decision to stay home with my kids after 10 years of working outside the home, I absolutely knew it was the right decision for my family.  However, I was afraid of failing.  I was afraid of how my family would survive without my income.

There really was no need for fear.

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How Much Risk Should You Be Comfortable With

There is no One-Size-Fits-All answer to this conundrum. Investment is inherently risky. No matter what you invest in, there’s at least some chance that you’ll lose it all. Though, depending on the investment, that chance may be very likely or not very likely at all. At the end of the day, only you can determine how much risk you are comfortable with. A good rule of thumb is to have only as much as you can handle without losing sleep at night. If the sleep test checks out, then you may just be in the right situation. But just in case, you may want to think about the following principles.

1)    Younger Investors Can Handle More Risk. Typically, that is. It works like this. Say you have a portfolio of stocks and bonds, as many people do. Stocks fluctuate in value a lot more than bonds. If you had stock only in one company, that would be risky indeed. Having investments in many stocks has a balancing effect on your portfolio. If one falls, another is rising. If you invest in an index fund of most or all big corporate stocks, you’ll get the benefit of the market’s tendency to increase in value over time. Of course, there are still some down years, but over the course of decades, the market always shows growth. That’s why young investors can keep a lot of money in stocks. If they lose a lot, they’ve got plenty of life to wait for it to rebound. Older investors tend to take on more bonds, which are very stable but don’t increase in value very much. Even as a young investor, you may want to have at least a handful of bonds, but it’s not uncommon to have less than 10% of your funds allocated to bonds, if you are young.

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Home loan help in the palm of your hands

Getting the right home loan guidance doesn’t have to take up your whole weekend, unnecessary paperwork or even putting a pause on your favourite playlist. In fact, you can make a start on your home loan application right now, by using your smart phone and the best part is you don’t even need to make a call. Check out our four easy steps below to see how you can get started:

1. Price Advice

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Paying Off Debt Smarter and Faster

There are few things better for your financial health than paying off any debts that you have as quickly as possible. The fact is, the longer you have the debt and the longer interest accrues, the more you pay for that debt. Even if what you purchased might have been a “bargain”, paying for it over several years will quickly turn it into something far less. For that reason, we put together a number of tips and bits of advice for paying off your debt smarter and faster. Enjoy.

Tip 1: Prioritize

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Brick and Mortar are Fading Fast, but Online Payday Lenders are, unfortunately, Thriving

There are few places that lead consumers into deeper debt then payday lenders but, due to state and federal restrictions imposed in the last few years, revenue from brick and mortar payday lending companies has remained flat during the last four years.

Unfortunately, online payday lenders have sprung up left and right and their revenues have more than doubled in the same time period, from $1.5 billion back in 2006 to over $4 million dollars last year, in 2013. In fact, according to a study by the Milken Institute, nearly 40% of all payday loans in 2012 were initiated online.

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When Should You Start Investing?

Not surprisingly, first-time investors usually have a little bit of anxiety about when the best time is to make their first stock purchase. It’s not an unfounded fear, frankly, because if a person were to start at the wrong point in the market, which has a tendency to go up and down quite a bit, they can be left staring at big losses right from the start.

The good news is simply this; time is definitely on your side. If you are investing for the long haul, which is recommended, well-chosen investments will have compounding returns that add up quite well no matter what the market was doing when you decided to purchase your first shares.

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Are you Secretly Sabotaging your Budget?

Okay, so you’re scrimping and saving and going to all the bargain shops that you can in an effort to stick to your budget. While you deserve props for that, the fact is that some of these well-intentioned habits might actually be hurting your budget more than helping. Below are 5 habits that could secretly be sabotaging your budget. Check them out and make sure that they aren’t sabotaging yours. Enjoy.

If you purchase items simply for the fact that they’re on sale, you may be sabotaging your budget. The fact is, sales can be extremely dangerous, especially on things like clothing. Many a person has purchased clothing items that they don’t need simply because they were “on sale”. If you see something you truly need and it’s on sale, by all means pick it up but, if it’s something you don’t normally purchase or simply don’t need, avoiding that sale is your best bet.

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Thinking of Retiring? Consider This


Just a note to my readers, this article was the first by my mom, she has been reading this blog for awhile now and wanted to write an article of her own. She expects to continue writing, so please encourage and leaves comments…Thanks!

My husband and I will be retiring within the next few years and we have found we have had many questions about Social Security.  Asking around and talking to friends and family they don’t know the answers when asked.  So, let’s just go over some brief facts about Social Security to get you started.

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