Every kid in America and elsewhere knows that he or she should ‘save for a rainy day.’ Teaching kids to save at an early age is definitely a good idea and parents who train their children to save are training them to be financially responsible when they become adults. You really can’t start too young on this important financial habit.

With that said, it has to also be pointed out that saving alone won’t do you any good. The mere act of saving for a rainy day in the future might actually be bad for your money if you just limit yourself to saving. Why? One word: inflation.

Sure, you put your money in the bank instead of spending it. You did a good job. However, you should not let your money stay in the bank. If left there long enough, you simply won’t be able to buy as much stuff with the money you saved. In other words, inflation ‘rots’ your money. With every passing year, the value of stuff your money buys gets lower and lower.

Eventually, your savings in the bank won’t be worth anything at all. That’s how serious of a problem inflation is. This is why it is important to understand that saving is just the first step of responsible money management.

Putting your money in the bank enables you to resist spending it. However, if you really want to be fiscally responsible, you must figure out a way to make your money grown. In other words, you have to invest your money. Saving and investing are twins. They are interlinked. If you just save without investing, you are spinning your financial wheels and you will eventually lose the money you put in the bank. You have to invest your money. Without investments, saving is futile. Saving is a good habit but it is an incomplete habit.

Get into the habit of investing

As the amount of cash you have saved begins to pile up, start looking for places to invest your money. This is the hard part of investing. You have to figure out where to put your cash so it generates more money with time. The first part to investigating investment options is to figure out how much risk you want to take.

All investments have risks. Even your bank savings have some risks because the bank may go under, and your recovery is limited to the amount of savings insurance mandated by law in your jurisdiction.

Keep in mind that the more risk you take, the higher the returns. The lowest risks are certificates of deposits or time deposits. These pay very low interest rates. In fact, many pay below the rate of inflation. Pick only investments that pay more than the rate of inflation. Bonds are riskier, but they pay a little better.

Stocks are quite risky but the right stocks appreciate quite well. Real estate pays decently over the long haul but the downside is that you can’t free up your cash quickly. Real estate is not very liquid.

Kids are one of the most expensive adventures you’ll ever undertake. Their daily care items can cost a small fortune, but that’s nothing compared to the mountains of toys you’ll gladly buy them. Fortunately, there are ways you can save on toys without sacrificing fun.

Read on to discover 6 ways you can save money on toys for your kids.

1. Buy used

Shop at a thrift store, online or at your local consignment shop to find great deals on used toys. Often, shop owners are picky and only accept toys in good condition with all of the pieces. You can pick up used children’s toys for up to 75% off the retail price. When buying used, look for descriptions that say EUC which stands for “excellent used condition”.

2. Make toys from household items

You can buy all the toys in the world and your kids will still probably prefer things they find around your house. Pots and pans with spoons make great drum sets. Empty paper towel rolls can be transformed into swords. Boxes provide hours of fun. Look around and see what you already have before you buy something new.

3. Look online

If you really want new toys, buy them online. Shopping online makes it easy to compare prices and find the best deal on the toys your kids want the most. One thing you need to make sure of though is that you don’t spend too much on shipping. Look for sites that offer free shipping and do a search for coupon codes to maximize your bargains.

4. Shop at yard sales

Yard sales are toy goldmines. Parents look to make a little bit of money on the side by selling their kids used toys rather than just donating them. Often, they sell the toys for pennies on the dollar, giving you a great change to snag a bargain right in your own neighborhood. If you buy toys at yard sales, avoid stuffed animals that can carry bugs and make sure to check the toy over before purchasing.

5. Look for freebies

Sites like Freecycle are known for being goldmines of free toys. You might also have luck just driving down the road or browsing the free section of Craigslist. You never know where you’ll find bargain toys, so keep your eyes open and watch for freebies for your kids.

6. Start a toy swap with a local moms group

Getting together with other moms and having toy swaps is a great way to keep your toy collection from getting old. Everyone’s kids will enjoy playing with new while the parents will enjoy shopping for free.

Getting creative is the key to saving money on toys. Whenever possible, avoid shopping retail. Your kids won’t mind used toys and your wallet will love the savings!

Thank goodness for altruists among us. There are many Americans, Brits, Canadians, and others who won’t blink when asked to help people in need all over the world. Every society is blessed by their members who freely and willingly reach out with a helping hand.

Kiva is a social lending site that brokers private loans between well-intentioned individuals in the ‘developed’ world with cash-strapped entrepreneurs in the developing world. This is a crucial crowdsourcing service because it helps much-needed capital flow to areas of the world where capital is tight.

As can be seen in the heart warming and uplifting story of Bangladesh’s Grameen Bank, microlending can truly change many poor peoples’ lives for the better. Grameen enabled many rural women who barely had anything to eat become successful small-scale entrepreneurs who can now provide for their families.

Kiva follows the path blazed by Grameen: by providing microloans to budding entrepreneurs it aims to combat poverty in the Third World. The problem, of course, is the issue of trust. Borrowers need to be vetted to ensure that the money offered by good-hearted lenders aren’t stolen. Given the huge distances involved and the cultural gap, many people, understandably have second thoughts when it comes to lending on Kiva’s platform. Here are some tips to help you gauge whether you should extend credit via Kiva.

Is the borrower connected with a NGO?

If an NGO (non-governmental organization) is vetting for the borrower, the chances of the borrower being legit is better than otherwise. Still, this fact alone is not dispositive because there have been some cases in the past where the NGO itself is a fraudulent organization or used by a militant organization to raise funds.

Do a quick search on the NGO to see if everything is on the up and up. You should be able to turn up the name of the head of the NGO, run a search on that person. You might be surprised by what you turn up. Of course, you have to also do a search on the person doing the lending.

Fund only very very small requests

Not everyone on Kiva asks for sizable loans. Some ask for a very small amount of money. We’re talking about a fund less than $200 in some cases. In these cases, you should still do due diligence but since the funds involved are so small, many lenders can live with the fact if the funds don’t get repaid.

Still, you should look at Kiva’s ranking and feedback system and give out small loans only to people that have good rankings at the site.

Let’s face it-self-denial is not exactly popular in America nowadays. Why should it? Every ad, it seems, hype a product’s ability to deliver instant results at the user’s maximum convenience. Products that require some sort of intermediate efforts on the part of the consumer is looked at with disfavor. America, it seems, is always looking for the next big thing when it comes to convenience-instant results means instant happiness.

Unfortunately, real life doesn’t work that way. The things worth having in life, whether they be a career, a great relationship, a healthy body, and, yes, a healthy well-adjusted mind, takes some time to achieve. Still, we are so immersed in a culture of convenience that this ‘give it to me now’ attitude has infected every aspect of our lives-including saving money.

Saving money used to be a fun rite of passage for many American kids. Parents would buy them piggy banks to encourage them to put something away for a rainy day. A lot of that fun, light approach to saving is now gone. It seems kids have become miniature versions of their credit card-crazy parents-they blow through cash very quickly. Telling kids to save is like trying to talk them into getting a root canal. Use the steps below to help your kids save money in a less difficult way.

Turn Saving Money Into A Game

Kids love games. If you turn saving money into a game, you’ll get their attention and keep their attention long enough for them to understand the basics of saving money. Use basic elements from games to get them started on saving and also to keep them going once they started. First, offer them a prize if they hit their major objective-to fill up their piggy bank.

Second, offer them stars or small prizes if they consistently save. Next, offer them small prizes if they hit certain amounts. Offer ‘levels’ of saving. Keep them engaged by actively monitoring the game.

Finally, make sure the duration is short enough so they don’t lose interest. Usually, one month should do. After a contest is over, start another one-this time with a longer time horizon. Keep increasing the time horizon until you have a kid or kids that can save over a two year stretch. Keep at it since you are teaching them skills they’ll need for a lifetime of success.

Saving Money Reflects On Your Character

Everything you do reflects your character. Everything you say, even the clothes you wear, everything you plan, shows off the values you think are important and the things that don’t matter as much. Why should it be any different when it comes to saving money? You might be an artistic person who likes to think you live beyond conventional confines. Still, you need to know how to save money so you can have the funds you need to support your artistic pursuits.

At its most basic, money provides a measure of peace of mind. It helps you to plan ahead. By looking at the ability to save money as part of our personal character, a little bit of ego is put into play. We don’t want to be thought of as losers, right? So if you don’t want to be judged harshly by your friends, you can use this peer pressure or shame-based pressure to push you to get you to step up your savings game.

Remember to Invest What You Saved

Finally, all the savings in the world is not going to benefit you if you don’t invest your money. Simply dumping your money at the bank will ensure that your savings’ purchasing power will erode over time thanks to inflation. Park your money at the bank but research investments that have a risk profile that matches your personality and life stage. If you are young, take a look at riskier stocks. If you are already retired, look for ‘safer’ stocks.

Did you know that you can use your credit cards to put money in your pocket instead of draining money from it? This might seem like it is too good to be true but this is what many people are doing. The good news is you can do it too.

What’s the secret? No, this post is not hawking some ‘secret’ e-book that will show you how to convert your credit cards into money making and money generating cards.

Instead, we just want to highlight the fact that your credit card is an instrument you can use to buy stuff that takes cash out of your pockets or stuff that puts money back in. In other words, you can use your credit cards to buy liabilities, or you can use it to buy assets.

Assets put money in your pockets. Liabilities drain cash from your pocket. It truly is that simple. You have a wide range of choices on what assets to buy and what to buy. Use the following tips so you can have a clear idea of how to go about buying assets.

Factor in your credit cards’ interest rate when you are buying assets

If you are buying an asset like website hosting annual package that you can resell, you have to keep in mind that you might be paying a high interest rate that might either eat into your profit margins or destroy your profits outright. Always pay attention to the cost of the money you are borrowing. This is a key element in making sure the asset you are buying produces enough money, after costs are deducted, to justify the purchase of the asset.

Ideally, you should buy an asset that generates more money than other assets at a similar price point. In other words, make sure you consider opportunity costs. It takes money to buy an asset so make sure you compare different assets so you are assured of having an asset that produces the most amount of money.

Factor in the amount of lead time for your asset to generate cash

Not all assets generate money when you buy them. Some have a dormant stage where the asset ‘ramps up’ to a point where it starts generating cash. This especially true for online properties or online services. There are many websites being sold online that do generate money-after some time.

Many asset seekers buy this type of virtual income-generating property because they are cheaper than sites that actually have a current robust cash flow. Obviously, you are betting that the ramp up period does pan out and the site actually starts generating real, albeit low at first, money.

Don’t gamble

You would be surprised at how many people get excited by the fact that they can use their credit cards to buy assets. They go hog wild and start buying all sorts of things that are hyped up as ‘assets’. The truth is, unless you are aware of how fast the item you are buying can generate money, you are gambling. There is an acceptable level of risk and there are outright gambles.

If you hope to make enough cash to pay off your credit card statement, it is crucial that you fight off the impulse to gamble and make informed and calculated risks instead. This is the crucial difference between smart buying and outright gambling. If you are just going to gamble, you might as well play online poker. At least with poker, there is still some element of skill and talent involved and you might make money. The same can’t be said of highly speculating online ‘assets.’

One of the most common ‘personal finance strategies’ consumers have is to put their savings in the bank while running up credit card debt. Yet this is not the ideal strategy.

Now, don’t get me wrong. This blog post is not about the total evils of credit card debt. I am not going to argue that credit cards are the Devil’s plastic calling cards which should be avoided entirely. That is not my point at all. There is a proper role for credit cards. You can use them as easy to track financial devices for keeping a clear record of your spending. They also relieve you of a lot of the security and logistical hassles of having to lug around a wad of cash.

With that said, you have to use them the right way-this means you have to totally pay them off at the end of every month. There are no ifs, ands, or buts about that. For credit cards to serve you instead of the other way around, you have to totally wipe them off in a short period of time. Properly used, credit cards give you a lot of flexibility and much-needed spending power. You just have to use them the right way.

Credit card debt becomes a problem if you let the balance roll forward month after month. This is not free money. Not by a long shot. You have to pay interest and finance charges on that balance. If you don’t knock them out and it keeps piling up with new purchases, the interest accrued also increases. This is compound interest and it is working against you.

Sadly, many consumers think that as long as they have money saved in the bank, they are being financially responsible even though they are running very large credit card balances on a rolling monthly basis. This strategy does not pay off. Not even close. Read the guide below and see how this breaks down.

Low Bank Interest Rates

You get a lot of security by depositing your money in the bank. First and foremost, you can withdraw your money anytime you want. It doesn’t get more liquid than that. Moreover, your deposits are guaranteed by Federal Depositors Insurance Corporation (FDIC) up to a certain limit. You gain a lot of peace of mind by putting your money in the bank.

The problem is that this pace of mind comes at a price-a steep one at that. You get really low interest rates. To add insult to injury, this interest is taxed. You can easily make more money investing in riskier investments like stocks or certain bonds.

The Problem of Inflation

Believe it or not, your money rots. Every month your money is in the bank, it is worth less and less. Keep it in the bank long enough and your money won’t be able to buy anything. This is the iron law of inflation. Due to government monetary policy, inflation eats up our cash even before we spend it. If you keep your money in the bank, it will continue to shrink when adjusted for inflation regardless of the fact that the bank is paying you interest.

Knock out Credit Card Debt First

Putting the two factors together, it just does not make sense to run a balance on your credit card and have savings in the bank. The interest rates on your credit cards are easily several times higher than the highest bank savings or CD rate you can get. You are losing money every month you keep money in the bank while running a large credit balance.

You should leave some money for emergencies in the bank and use the rest of your balance to knock out your credit card debt. Get rid of that debt and keep it under control. This way, you have more room to move in terms of finally growing your money. The next step is to find the right investment with the risk profile that best fits your situation.

For many people, saving is an end in of itself. This is wrong. If you look at it with an unsentimental eye, saving, by itself, is self-defeating. Why? One word: inflation. You can be the world’s best saver but if you put your money in the bank, it will only rot-thanks to inflation. Inflation is a financial cancer that gradually erodes the value of your money.

As time passes, the same amount of cash buys less and less goods and services. This is a reality many savers are either ignorant about or willfully ignore. When it comes to your financial future, you can’t be an ostrich with its head buried in the sand. You have to confront the fact that inflation will eat up your savings if you put it in the bank. Instead, you have to convert your money from cash into assets that will appreciate in time and beat inflation.

Here are some easy ways to save money into investments. No, this guide won’t deal with typical investments like stocks or bonds. This guide focuses on investment roads less traveled.

Buy gold coins or gold ETFs regularly

Gold coins and gold exchange-traded funds are the most popular ways to buy gold. If you find yourself saving up a small pile of cash weekly or monthly, quickly buy gold coins or gold ETFs with the funds you have saved. You don’t have to save up a ton. There’s no shame in the game of saving and investing small.

The key here is not the amount per se, but the fact that you are doing this constantly. Turn cash that is guaranteed to lose value into gold or other precious commodities. Of course, you will have to store your gold in a safety deposit box at a bank. As for ETF’s you can keep these with your broker.

Buy comic books or other collectibles

The great thing about the sports trading card and comic book collectible markets is the fact that they are relatively well-developed. People can quickly buy and sell these items. So if you don’t feel like buying gold at the end of the month, you can scoop up comic books and other collectibles which already appreciated in value. Dont’ go for virgin items since their investment value hasn’t been proven yet. Instead, buy comics that have shown appreciation. This same advice can apply to any other item that appreciates with time like art.

You are what you think. How many times have you heard that saying? Don’t think that just because you keep hearing it or reading it online that this repetition in someway weakens the truth it contains. It was true when you first heard it, it is true now. How you look at the world influences how you act in the world and what place you see yourself taking in the world.

There are certain ways of thinking that can help boost your income and personal finances. These ways of thinking boost your willpower to enthusiastically look for better-paying jobs and doing well in them. They also push you to think beyond your immediate needs and start building a future.

Take Responsibility

Surprise surprise-everything you are today is a product of somebody’s choices-yours! If you feel your life is going great, congratulate yourself for a job well-done in making the right decisions. If you feel that certain things are missing in your life, or you are not getting as much out of life as you could, take ownership of the fact that you chose this life for yourself.

I know it may seem painful, but we all choose our lives. We make decisions that produce the lives we are living now. If we are unhappy in any way, this just means we have to make different decisions, so we produce different results. The key thing to realize is that your decisions are powerful. If you can choose to be unhappy, you can choose to be happy. If you have been choosing to have very little cash left at the end of every month, you can choose to have more leftover.

You have to keep focusing on that central truth-you have the power to choose and your choices have consequences. Choose to save more money. Choose to spend less. Choose to invest more. In other words, take responsibility and be conscious that you are always making choices. This is a key part in decidng to make better choices.

Don’t blame others

Let’s face it, it feels good to blame other people. It takes the heat off of us and puts it on others. We don’t have to feel bad because we just got victimized by other people’s decision. We don’t have to change because we are not at fault. The problem with blaming others for bad decisions in our lives that have resulted in a life that is less than happy or optimal is that we are destroying our ability to take responsibility for our lives.

For example, if you blame your spouse for ‘wasting’ your paycheck every month, you are relieving yourself of the responsibility of coming to an agreement with your spouse as to how household income will be spent and saved. Take ownership of your decisions. Don’t pass the blame on others. This is the only you can focus your personal power into making the right personal finance decisions. Nobody else will set up and follow a financial plan for you-you have to do it.

Work toward long-term personal finance goals

It’s way too easy and to spend our money now and enjoy its benefits. Who wouldn’t want to feel good now, right? The problem is we spend all our income now, we will have very little left for the future. The key to effective personal financial planning is to realize and accept that plans for the future must be funded by sacrifices made today. Instead of spending and enjoying the money now, we invest it for the future. In other words, we’re just pushing forward the date of when we’ll enjoy our money. The good news is that the more you push your enjoyment into the future, the greater and longer-lasting it would be.

Insurance is one of those things that you need to buy just in case disaster strikes. Whether it’s natural or man made, insurance will help offset catastrophic expenses that can destroy your family. Read on to discover 4 kinds of insurance you can’t afford to go without.

Homeowner’s/Renter’s Insurance

This may seem like a no-brainer, but there are still people in this world that choose to go without insurance. While renter’s insurance is completely voluntary, most homeowner’s are required to carry insurance on their house. Although, the coverages may vary from plan to plan and there are always additional choices you can get for your policy.

Having insurance on your dwelling and the possessions within it will protect you in the event of a fire or other natural disaster. Most policies provide a means to replace important contents such as furniture, clothing and appliances. It is important to note that not all homeowner’s policies cover the same things, so you should check with your insurer to see if floods, hurricanes and other extreme events are covered. Some people may be required to buy extra coverages if the home is located within a certain distance of water.

Health Insurance

A lot of young people go without health insurance if possible because they don’t get sick enough to warrant the extra expense. Health insurance is expensive, but in the event of an injury or illness, health insurance can make a huge difference. What used to be a voluntary type of coverage will soon be mandated, and companies will be required to offer a certain level of coverage. Young people will find themselves with no option but to participate, though their coverages may not cover their needs in all situations. The bottom line is that you need to be well informed and purchase insurance that meets your needs now and in the future.

Car Insurance

Going without car insurance isn’t an option in most places, so being caught behind the wheel without the proper documentation can be an expensive mistake. Being involved in an accident without car insurance can even land you in jail. Before you get your license suspended or you spend a night in the slammer, shop around for some auto insurance. Find a way to fit it into your budget because this is one type of insurance you can’t afford to go without. Remember, auto insurance isn’t just for the bad drivers, even if you do everything right and you get hit, you’ll still be required to prove you are insured. Luckily, rates for good drivers tend to be lower.

Life Insurance

If you have anyone depending on you like a spouse or children, you’ll want to make sure you have life insurance. Many employers offer life insurance for employees that are on the clock, but when you’re not at work you still need protection. Life insurance can ensure that your loved ones have the means to stay in their own home, finish their educations and just survive if something happens to you. While you should always hope for the best, it never hurts to plan for the worst.

These four types of insurance are essential to every adult. Plan your budget carefully to ensure that you can meet the premiums because you simply can’t afford to go uninsured.

Taking the plunge and saying, “I Do” for the second time is a scary thought for many people. One of the leading causes of divorce is money, so it’s only natural to dread the financial aspect of your second marriage. Fortunately, for those contemplating wedded bliss, there are some things you can do to ensure smooth financial bliss with your new partner.

1. Keep your separate checking accounts

Joint accounts allow independence and a safety net. If you’ve been single for a while, keeping your separate account will help you maintain a part of yourself that you might not be ready to give up yet.

2. Keep a joint account for shared expenses

Shared expenses are those that involve household bills. Mortgage payments, utilities and other shared expenses should be paid from the joint account. Both partners should contribute to the balance of the joint account.

3. Don’t separate your bills

Having separate bills is a recipe for disaster. If you take the water and your spouse takes the electricity, you’ll soon be arguing over the size of the bills and how much each of you used. Instead, pay joint bills from a joint account.

4. Set up spending rules

Determine a threshold at which purchases must be discussed with the other spouse. You don’t want to always be asking for permission to spend money, but for large purchases the other person should be consulted to avoid revenge purchases and hurt feelings.

5. Talk about gift giving

Decide early on who you will be giving gifts to and what the budget is for each of them. You don’t want to end up arguing at Christmas because your partner spent 10 times more on his parents than you did on yours.

6. Plan for the long term

It’s important to discuss where each of you would like to be financially in 5 or 10 years. Discuss your plans, your desires and how you can get there. If you each have different plans, you’ll need to have a discussion to decide which direction to go in.

7. Account for differences in income

It’s unlikely that you and your spouse will earn the same amount, so you need to discuss how contributions to the joint account will be made. Will you each contribute the same amount regardless of income or will the partner earning more contribute more.

8. Blend your money styles

Some people make meticulous notes in their checkbook ledger and keep track of every penny they spend. Others rely on their monthly credit card statement to show their financial damage. Whatever your style is, it’s important your partner knows and is comfortable with the way you do business.

9. Discuss your debts

Talking about your debt is difficult, but the key to a solid financial foundation is understanding what types of debts and payments each person brings in to the marriage. Don’t forget about child support, alimony and other debts you may incur as a result of divorce.

10. Be prepared to compromise

It’s unlikely that everything you want to happen will happen, so be ready and willing to compromise with your partner. You didn’t marry them for their paycheck, so don’t let money come between you and your happiness.