Re: How much to save for kids??? (plan for school& college) Look into 529 plans - to understand more about 529 plans refer to the link 529 plan - Wikipedia, the free encyclopedia You can also check any college savings calculator online - these will tell you based on the age of the child and what type college you plan to send him/her to (public - in state tuition, public - out of state tuition, ivy league etc) how much will it cost. Most calculators will also have an option where you can project how much you have to put into monthly savings assuming the fund earns x%. One example (I'm sure you can find more) is College Calculator
Re: How much to save for kids??? (plan for school& college) Thank you......let me research on the 529 plans...
Re: How much to save for kids??? (plan for school& college) [Hi Vidya Iam quite new to this blog,but as of now start saving monthly 2000rs initially ,put it into SIP lonterm like hdfc Mutual funds or so.They give you a return of 20%on an average , Then teh second year start incaresing teh amount by 1000rs more ,by this way every year you will cover the risk and the gap for inflation. When you get a bous or extra income do start saving and when its like a lakh or so ,invets in MIS schemes in psot office and the interest you earn on that save it ad RD This methos works and is very easy to follow, Slowly as when you get bulk amounts start saving and this is a realistic target Cheers Mahima
Re: How much to save for kids??? (plan for school& college) Mahima Thanks alot for the nice step by step plan....sounds very good and workable
Re: How much to save for kids??? (plan for school& college) Hi SriVidya, Good that you are thinking of saving for your son's education early. My daughter is 4.5 years old now. I have planned for technical education expenses for her and also planning to buy a small plot or house for her by the time she settles in her career. So went to a financial consultant, and she suggested the amount we need to save for her education and also different ways to pool money for her house/plot. We could not get an exact figure on how much to save for her house/plot because we ourselves werent sure about our budget for the same. Instead of placing all the investments in a single savings instrument, she asked us to diversify. So planning a part of the amount in PPFs, partly in SIPs and partly in bonds. How much you save depends on what you plan for the kids. For ex: only education? or Education + a vehicle + a house on your DS name? etc. -Lakshmi
Re: How much to save for kids??? (plan for school& college) Lakshmi thats nice..thanks for those tips...just yesterday one of my friend from India sent information about this Bajaj Capital company and the various investments or SIPs they suggest and how to invest etc....really very good plans and info suggested..I was planning to discuss with my husband and start investing....lets hope for the best
Re: How much to save for kids??? (plan for school& college) There are multiple options 529 Plan, Roth IRA, maximize 40K etc.. I also strongly advice read 9 steps to financial freedom by Suze orman. There are websites available with excellent calculators which can help you as well. More important start saving some percentage of monthly income
Re: How much to save for kids??? (plan for school& college) Hi Srividhya, no matter what amt u save.. the key is to be DISCIPLINED AND SYSTEMATIC about it. i mean, saving a fixed amount as per your means REGULARLY WITHOUT FAIL. come what may, never put off saving.. if its only abt education and marriage for ur child, start with Rs. 2000 per month and like said beofre, every yr increase the amount of saving. u can invest in ULIPs(unit linked insurance plans) as u can get tax benefit out of it too. Also, insurance is VERY IMPORTANT. there are no guarantees in life. god forbid if something happens to the parents, the child should hv some security/future. so get atleast one high premium insurance policy.. if its for buying property, car, or similar, u have to diversify.. u can invest in any/all of the below: - mutual funds(can open a SIP for as low as 500 rs) - ULIP (as low as 1000 rs), - RD account (as low as 500 rs) - post office savings (as low as 500 rs) and if u good at shares - stock market is a very lucrative option.. if u have a huge lumsum bulk amt (above 50k), invest in FD or NSCs.. as after 6 yrs it will give almost double the amount. if u hv a daughter, u can invest even in gold. it would be useful at the time of her wedding. in case of son also u can give ur DIL, but in general its a good option especially if u hv a daughter. dont buy jewellery.. but gold coins/buiscut/solid chains/less designer stuff as u will save on making charges and get more gold for ur money...
100 tips to help you SAVE Around the home ------------------------------------- 1. Get a home energy audit every couple of years with your power company to find ways to cut costs. 2. Save on electricity by trading your standard incandescent bulbs for compact fluorescent bulbs. Prices on CFBs have dropped dramatically, and they are more energy-efficient, last for years instead of months, consume little power and generate little heat. 3. Buy major appliances that sport the Energy Star sticker. That shows the appliance meets or exceeds standards set by the U.S. Department of Energy and the Environmental Protection Agency. 4. When building a home or replacing a roof, select a roof based more on energy efficiency than on how it looks. Light-colored roofs — such as white, galvanized metal or cement tile — do the best job of reflecting the sun, and they cool quickly at night. 5. Every few months, comparison shop to see if you're paying too much for your telecommunications services — Internet, land line phone and cable/satellite service. Many times, competing companies will offer better deals to new customers. If you find a better deal, contact your telecom providers and negotiate — or switch. 6. Cancel all the extra services you don't use, such as call waiting, caller ID, voicemail, call forwarding and three-way calling. For cell phones, block add-ons like text messaging, Web surfing and music downloads if you don't use them. 7. To save energy on heating or cooling, buy a programmable thermostat, especially if no one is home most of the day. Set it to turn on a half-hour before anyone arrives home. 8. Analyze your homeowners or renters insurance to see if there is any coverage that you can do without, and take higher deductibles if you have cash on hand to cover them. 9. Condo owners need to know what the condo association's insurance policy covers so as not to double-insure. 10. Some home improvements can reduce the cost of homeowners insurance. Something as simple as installing a fire extinguisher or a deadbolt lock can take a significant bite out of your insurance bill. 11. Cancel private mortgage insurance, or PMI, once your mortgage reaches an 80 percent loan-to-value. 12. Make extra mortgage payments, whether monthly, once a year or on some other schedule, to get to 80 percent LTV and cancel PMI more quickly. One way for those on a 26-pay-per-year salary schedule is to make an extra mortgage payment in months where you get three paychecks instead of two. 13. Fix leaky faucets — one drip of hot water a second is 20 kilowatts a month. 14. Be house-wise. Sell the big house or don't buy more house than you need. Get an affordable townhouse or a smaller home if a family member moves out. 15. Rent out a room in your home if you have more space than you need. If you have grown-up offspring living with you, negotiate with them to pay monthly rent for the privilege. 16. Lower your hot water thermostat 10 degrees, but no lower than 120 degrees. You'll still get all the hot water you need and save 25 kilowatt hours a month. 17. Cell phones can be expensive, especially if you're footing the bill for a houseful of users. Do a needs analysis and dump the phones that aren't absolutely necessary. Even with so-called family plans, canceling just one line can result in significant savings. 18. To save on energy costs, seal leaks. Invest in weather-stripping kits if you have drafty doors. Caulk over cracks and small holes around windows and exterior walls. Look carefully around plumbing pipes, telephone wires, dryer vents, sink and bathtub drains, and under countertops. 19. If your cell phone plan offers free nights and weekends, make your weekly calls then. Not only will it possibly allow you to save money by canceling long distance service on your land line, it will save you cell phone minutes. 20. Landscaping with the right mix of trees and shrubs can lower your energy bills by blocking winter wind and summer sun. 21. When looking to buy a house or refinance your mortgage, take the time to apply for and compare several mortgage offers from a diverse set of sources: the institution where you do your day-to-day banking, a neighborhood bank, a credit union and an online lender. That way you can have confidence that you got the best terms possible. 22. When comparing mortgage offers, don't forget to look at closing costs. Fees for things like title insurance and home inspections can vary greatly, even within the same institution. Taking time to compare or negotiate lower fees can save hundreds or even thousands of dollars, greatly reducing the real cost of your loan. 23. To cut utility bills, add more energy-efficient insulation to your attic, with the appropriate R-value, or resistance to heat flow, for your climate and the type of heating in your house. 24. Switching to an Internet telephone service, sometimes called Voice over IP, or VoIP, can save you big, especially if you make a lot of long-distance or international calls. VoIP providers often charge only a flat fee and don't have all the tacked-on taxes and fees that traditional telephone services do. 25. If you're getting a new mortgage or refinancing in an interest-rate environment where you think rates will fall, apply and then allow your rate to float for a while. Most lenders allow you to wait 30 days or more before locking in the interest rate you'll actually pay, so if you think rates are headed lower, take your time before locking — you may capture a lower rate. Conversely, if you think rates are heading up, lock immediately. Either way, get your rate in writing. A spoken agreement isn't worth much if your lender decides not to honor it.
Re: 100 tips to help you SAVE Daily Life ----------------------------- 26. Don't "crisis cook." Shopping after work for the day's dinner gets expensive. Plan a weekly menu before shopping and watch your grocery bill shrink. 27. Don't waste money on prepared foods. Instead, prepare meals ahead of time and freeze them, or double a recipe when cooking and freeze the remaining portion for a hectic day coming up. 28. The highest-markup items at the grocery story are on the shelves at about chest level. Reach up or kneel down to select the cheaper house or generic brands. 29. Avoid shopping for food when you're hungry; you'll buy more. And try to shop without the kids; those little helpers can quickly boost your bill by lobbying for their favorite high-priced brands. 30. Grab your local supermarket's weekly insert or log onto its Web site to see the weekly specials. You can save big by buying whatever brands are marked down rather than always buying the same brand. 31. Check out the wealth of coupon sites on the Web before you shop. 32. Avoid purchasing non-grocery items, such as painkillers, contact lens solution, etc., at a grocery store. You usually pay more. 33. Beware of "discount store syndrome." Just because you're in a bargain store doesn't mean you're getting the best price on every item. 34. Always send in for the rebate on a purchase, whether it's $2 or $50. It all adds up. 35. Veer your wardrobe away from the extremely fashionable, trendy styles that limit how many times and how many ways you can wear them. Try to buy clothes with dual functions: business casual outfits that can be dressed down for a relaxed night out with friends, for example. 36. Dry cleaning costs add up quickly. So put the silks in the back of the closet and move your wash-and-wears upfront. 37. When your clothes are wrinkled, hang them on a shower rod, spritz them with a fine mist of hot water and they'll be wrinkle-free in the morning. 38. Put cash back in your pocket by taking the clothing you no longer wear — that's still in good condition — to a consignment shop. While you're there, shop for used clothes — if they're in good condition, you'll save a bundle by not buying new! 39. Working couples can reduce out-of-pocket medical expenses and premiums by carefully comparing the costs of the benefits offered by each employer to find the best deal. 40. Check out the local beauty school for bargains on everything from haircuts and manicures to spa facials and highlights. 41. Save a bundle on taxes by paying your child care and health care costs with pretax dollars. Participate in your employer's flexible spending account program. 42. Cut child care expenses through flexible scheduling. Can you telecommute, job share or work more flexible hours to reduce the hours away from home? 43. If your public school district offers a half-day pre-K program for 4-year-olds, enroll your child. It's free and reduces child care costs to half-day rates. 44. Consider alternative ways to get health care for your pet. Humane society or university veterinary clinics may offer thriftier medical services than private practitioners. And always seek a second opinion when a vet suggests a pricey procedure. You'd do it for yourself, right? 45. Keep your eyes open for new restaurants in town. They typically offer grand opening specials. 46. Check your local newspapers for advertisements of lunch and dinner specials and early bird specials — look for coupons, too. 47. Do lunch instead of dinner. Lunch menus usually offer the same entrees as dinner, just smaller portions and a smaller check. 48. Share an entree or stick with the appetizer menu. Many restaurants serve portions that are too large for one person to finish. 49. Check your favorite magazines' Web sites for online offers that may be lower than others you've received. 50. Use your local library — your tax dollars pay for it, so you should be reaping the benefits. Check out a book you'll read once instead of buying it at the bookstore. Pick up a video at the library rather than renting one.
