Most people get a little confused when thinking about using a U.S. Treasuries as a safe investment vehicle, because there are types types of loans connected to the investment, and each on is called something different based upon how long it takes to mature.

When I mentioned four types of loans, that’s what investing in a U.S. Treasury really is: giving the U.S. government a loan in return for one of the safest investments you can make, being backed by the full faith and credit of the U.S. government.

The government then takes that money and uses it for a variety of purposes.

There are four types of Treasuries to invest in: Treasury bills, Treasury notes, Treasury bonds and Treasury Inflation Protected Securities (TIPS). The first three are distinguished by the duration of the investment, and TIPS are defined by inflation adjustments to the interest on the investment.

Treasury Bills

A Treasury Bill is recognizable from having a maturity date of one year or less. You also don’t have to pay state or local taxes on what you make on it.

The Treasury Bill is also called a T-Bill or U.S. Treasury Bill, which all means the same thing, so don’t get confused there.

Treasury note
 
A Treasury note will mature from between two to ten years, with maturity dates usually set at 2, 3, 5, 7 or 10 years (in other words you can buy them at those intervals).

When you listen to or read about the U.S. Treasuries market, it’s normally the 10-year note that you hear quoted as to where bonds are priced at the moment.

Treasury Bonds

Treasury Bonds are can be bought from between twenty to thirty years to maturity.

Taxes on these are the same as the T-Bill and T-Note, with Federal taxes still applying, but state and local being tax exampt.

Treasury Inflation-Protected Securities ( TIPS)

Also debt issued by the U.S. Treasury, TIPS are unique in that the interest rate adjusts to inflation based upon the Consumer Price Index, which is the primary source used to measure inflation.

TIPS at this time are issued in five, ten and twenty year maturities.

Treasury Strategy

So with these various safe options available, what would be the best one at this time if you’re interested in investing in one of the Treasuries?

Personally I like the TIPS the best, based on the extraordinary amount of debt and deficits taken on by the U.S. government.

With the printing of billions upon billions of dollars, that will eventually lead to huge price increases as inflation rises.

So investing in some of the other Treasuries, especially the more long term ones, could end up eating into your capital based upon the rate of inflation, and you would be stuck with that.

Investing in TIPS would allow your return on capital to adjust with it, making it a highly desirable investment.

One other thing to consider would be how long you want to tie up your money. If you want it to be available at some reasonable time period, a T-Bill might be best for you, and that has some built-in inflation protection just based on the short period of time you would hold it.

Slightly different from your typical savings account or online savings option, FreshmanFund.com makes it easy to set up gift registries for your children’s college savings. Just as newlyweds or moms-to-be can create gift registries of items they need or want for their big day; you can set up registries for your children and prepare for their higher education expenses while you still have time to take advantage of compounding interest!

Money held in a FreshmanFund.com registry itself will not earn interest – however, the idea is you create the registry through FreshmanFund to enable easy contributions of gifts to the child’s educational savings plan, and then you connect the FreshmanFund registry with a 529 Savings Plan. When a FreshmanFund gift registry is connected with the child’s 529 plan; contributions made to their FreshmanFund registry will automatically transfer to the 529 plan in order to benefit from the interest earnings of the 529 plan. If you don’t already have a 529 Savings Plan, you can open one in a matter of minutes with SavingForCollege.com; or check with your trusted financial advisor for advice. The 529 Savings Plans are managed by the state you live in, so the requirements and specifics will vary slightly from one state to another. Most states have very low minimum deposit requirements (as low as $25) which makes it very easy to set up and start saving for your children’s future!

Gifts to a FreshmanFund.com registry can be made through bank deposits. credit cards, or through special gift certificates. A gift certificate from FreshmanFund is a great way to encourage someone to start a college savings plan for their children since it can only be redeemed through opening a gift registry account with FreshmanFund. The money can then be transferred to a 529 plan whenever the recipient opens one.

One of the most difficult aspects for graduating college students isn’t passing an mensa test and being smart enough for your first job, but instead entering the “real” world burdened by debt. From student loans to credit cards, students graduate with their degrees in hand and the weight of excessive monthly payments on their shoulders – and often the income earned in the first few years out of school will not match the amount of their debt repayments and living expenses. You can help a child graduate with less debt simply by contributing to their college fund while they’re still young children. Taking advantage of compounding interest over time, a young child who reaches their college years with a 529 savings will require far less in loans than a child who did not have a 529 plan.

Since most lenders of home loans require at least 20% of the purchase price down before they will consider financing you at a decent rate, it will serve you well to start saving as soon as you know a new home is in your future. Saving has always been a issue for Americans, especially since a lot of the population is living paycheck  to paycheck and just barely getting by on what they make each month. This leaves little room for even a small savings, let alone for a down payment on a home.

A Savings Plan
But, as with much of personal finance, where there is a will there is a way and a bit of planning is all it takes to get started on achieving one large part of the American dream. The first step in your savings plan is deciding how much to save. If you have prequalified for a home loan, you should have a good estimate of what the cost of the home you can afford will be. The 20% rule is generally what is required  by lenders for financing those individuals who have good but not excellent credit scores. Without the 20% down, most lenders will require you to purchase Private Mortgage Insurance (PMI) that protects the lender should you default on your home loan. PMI adds costs to your overall mortgage so it is financially wise to save enough for a down payment and skip the PMI altogether.

Down Payment Math
If you are looking at a home that costs $100,000, you would need to save $20,000 towards a down payment. While $20k may seem like an impossible goal to reach in a reasonable period of time, it will help you to save money in the long-term and have instant equity in your new home. Within your budget you can estimate how much money you can save each week. You may have to cut out luxuries such as cable, internet, or cell phone packages in order to save more money each month. The more cash you can save in the shortest period of time without negatively affecting your other financial obligations, the closer you will be to your dream of owning a home.

Cut Your Budget
If you are unwilling to do more drastic measures as such, it can be a very long savings period to reach your goal. However, there may be additional resource which you can tap into to get the money you need faster. For instance, some retirement accounts  and IRA’s allow you to borrow money from yourself to use for a home purchase. You can also check with the Veteran’s Administration if you are a qualified veteran or the state housing authority to check out programs that help first-time homeowners or those living on low-to-moderate income levels.

Stash Your Cash Wisely
To make savings even more effective, consider stashing your cash into a number of places that will prove profitable, depending on the savings time you have planned out. Instead of allowing your savings to sit and earn a small interest rate at your local bank, consider opening an online savings account that earns more interest or a money market account. By putting your money in an account that earns 5% interest instead of one earning less than 1%, you can make your savings work harder and more efficiently for you and at the same time decrease the time it takes to reach your ultimate savings goal.

Several decades ago saving money was a bit more simple than it is today. At one time people simply worked to pay their bills and save money for ….well whatever. While it is certainly necessary to save money for any and all expenses, the strategy you use to save money can make the difference between financial security and just getting by. In today’s world it is not only recommended but almost necessary to have several different savings accounts to fund various expenses. You should have a well padded emergency fund, retirement savings and maybe even a rainy day fund. In addition to these standard savings accounts, you should also consider having an account for reoccurring expenses. Here is how to get started.

• Determine what reoccurring expenses you have- Most people budget for monthly expenses with “extra” money going into savings. Unfortunately we all have regular reoccurring expenses that we end up paying out of savings that could have been budgeted for throughout the year. Sit down and make a list of things like car insurance, homeowners insurance, taxes, annual vacations and gifts for special events such as birthdays, anniversaries and holidays. These expenses may come once a year, semi annually or quarterly.

• Make a plan- Once you know what reoccurring expenses you have including the amount and when they are due you can then determine how much money you have to set aside each month to cover these expenses. With that number in mind you now know how much you have to save each month in order to pay your reoccurring expenses when they are due.

• Open a separate account for reoccurring expenses- The whole point of saving for reoccurring expenses is to avoid using your other savings to cover the expense. With that in mind it is a good idea to open and maintain a separate account to avoid using this money for other expenses that pop up throughout the year. Many people find that online savings accounts are convenient for reoccurring expenses due to the convenience and availability of funds. You can easily set up a direct deposit into your savings account to avoid the hassle of manually depositing money (thus avoiding the temptation to use that money for other expenses) while reaping the benefits of a FDIC insured bank that offers a higher than normal interest rate. Many online savings accounts do not require a minimum deposit and while they are accessible they are not too accessible where you would have instant access to the cash should you want to use it for something else.

Some people may think that multiple savings accounts is simply a waste of time and requires more energy than it is worth to maintain. In reality by having separate accounts for specific goals you are better able to stay organized and track your progress to ensure you are on target for financial goals.

The credit card reform will make it difficult if not impossible for some college students to apply for or obtain credit in the upcoming years. While this may prevent students from exiting school with thousands of dollars in credit card debt, it does nothing to help them manage their finances today. Fortunately college students are not the only people using credit cards less; more people are using cash over credit these days proving it is possible to survive without our trusty plastic. If you are heading off to campus this fall, here are a few pointers to keep your finances in order without using credit.

• Budget- Before you can properly manage your finances you must first know what exactly you are dealing with in terms of income (available cash) and expenses. Create a budget outlining your day-to-day expenses as well as any financial obligations for which you are responsible. Next you can evaluate how much money you have available to pay for these expenses or in some cases how much money you will have to earn to meet your obligations. Remember to update your budget whenever there are changes in your income or expenses.

• Checking account- If you do not yet have a checking account, now would be an ideal time to open one. From this account you can either write checks or use a debit card to pay for bills and other expenses. Checking accounts earn little or no interest however they do offer easy access to your cash.

• Savings account- Your checking account provides easy access to your money for expenses and bills. A savings account will offer a place to save your “extra” money that is not as easily accessible while offering a better opportunity for growth. With credit card use expected to decline in coming months, it is especially important for students to begin saving money for unexpected expenses or other emergencies.

• Track spending- The best way to stick to your budget and save money is by tracking your spending. Most people have heard this advice yet few people actually follow it. Challenge yourself to track your spending for a minimum of one week. In that time, keep track of every purchase you make and the amount of money you spend. This will help you quickly determine areas where you can cut back on spending to save money for other more important purchases.

Whether this is your freshman year or you are a professional student, these tips will help you stay atop of your finances making it possible to avoid debt and save money.

There is a lot of advice for saving money and creating a budget as a family but singles too have unique concerns when it comes to managing their personal finances. Some individuals are life-long singles while others may suddenly find themselves single due to death or divorce. Regardless of your status in life, a single personal’s financial planning is just as important as that of a family.

Here are some tips for helping single individuals manage their money effectively:

Budget Is Needed
Even if you are living on your own and depending only on yourself, it is still crucial to have a set budget. You should always know where you money is going and how much money you are bringing in. You will still have saving goals to meet and financial obligations to pay so creating a budget is still an essential part of good financial planning.

Emergency Account
As part of your budget, you should be prepared in the event an emergency should arise that requires upfront cash. This is especially important for a person relying on one income. An emergency situation may be the loss of a job, a health problem, or an accident that may hurt a family with two incomes but destroy the financials of a single person. A section of your budget should be devoted to your savings goals so don’t forget to include an emergency fund in your planning. Ideally, 3-6 months of your typical income is a goal to strive toward. In the event a crisis does occur, you will feel more secure in knowing you have a few months worth of living expenses covered at any one time.

Retirement Planning
If you plan to remain single, your retirement fund will be solely your responsibility. In your retirement years, you will likely have some support from your Social Security benefits but it will likely not be enough to keep you throughout the rest of your life. Even the young and single individuals should spare no time contemplating retirement funding, since the earlier you plan, the more you can save. Set your retirement contributions to automated payments so it will make it easier to be consistent. What you don’t see in theory, you really won’t miss. Enroll in retirement funds through your employment if offered and if it isn’t an option, set yourself up with an IRA.

Keep Expenses Low and Savings High
While you are single, it is probably the easiest time to practice smart spending. After completing a budget, really look at where your expenses lie. Is there lots of unnecessary spending going on simply because there is no one to answer to but yourself? Regardless if you are currently single and hope to marry one day or if you plan to stay single forever, you need to control your wants from your needs and keep spending to a minimum so that your financial future will be assured with each dollar you save now.

Despite their continued growth in popularity there are still many people who do not have an online savings account. Some people are simply unaware of the benefits while others are not yet ready to venture from their local branch. Be that as it may, online savings accounts are something that every consumer should learn more about and consider in order to take advantage of the many benefits they offer. If you do not have an online savings account or are considering opening one, here are a few of the reasons keeping people from going back to brick and mortar banks.

• Better interest rates- By far one of the most compelling reasons to consider an online savings account is the higher interest rates that they offer. Without the overhead of traditional banks, online banks are able to offer interest rates that are very competitive. The whole point of a savings account is to have a safe place to save money. Not known to be a “money making” account, finding a high interest rate to help your money grow is a great reason to try an online savings account.

• Automated savings- Banks that operate entirely online eliminate the need to physically make a trip to a bank. By automating your savings you benefit in many ways. You eliminate the temptation to “find” other uses for your money between cashing your check and depositing money into your savings. You can set your account to automatically transfer money from your checking account or from your paycheck if you have the option for direct deposit.

• Pay your bills online- A savings account is primarily used to save money, however some people have discovered the benefits of transferring money into their savings account (more than savings) to cover certain monthly expenses. With the ability to pay bills from your savings account you can safely store you money in your savings account to earn interest until it is time to pay the bill.

• Accessible but not too accessible- Most online savings accounts offer easy accessibility via a transfer into your checking account. Unlike you local branch you probably will not have the option to hit the ATM and withdraw money on a whim. You have access to your money but not so much that you are tempted to use it for unnecessary purchases.

• More affordable- Online savings accounts often allow you to build your savings without the restrictions of minimum balances and unnecessary fees. So not only are you getting a better interest rate you are avoiding many of the fees and restrictions placed on traditional savings accounts.

Online savings accounts are not without cons, however as more people are discovering the benefits are worth the few negatives associated with these accounts. Before signing up for an online savings account take the time to carefully compare all accounts to ensure your money is in the best place possible.

Many people want to save more money but either lack the discipline or the time to set up a savings account. There are still others who have the discipline and time but think they have no available money to put toward savings. In reality with the exception of people facing a severe financial hardship, everyone should be able to cut costs and find money to save in their current budget.

Wachovia is offering a way for these consumers to save money with little to no effort on their part. The Way2Save program offers an excellent way to jump start your savings or put something aside for a specific goal such as holiday gifts or next years vacation fund. While there are some limitations (you won’t fund your retirement with this program) you can certainly benefit by saving money for short term goals. Here is how it works.

In order to participate in the Wachovia Way2Save program you must first have a Wachovia checking account. Wachovia offers a free checking account so this should not be an obstacle for persons not able to meet minimum fund requirements for other checking accounts. In fact you may be eligible for a sign on bonus by opening your free checking account through Wachovia. Once you have your free checking account opened you can then sign up for the Way2Save program. From there you can save money in two ways. 

• Each time you use your Wachovia check card for purchases they will automatically transfer $1 into your Way2Save account. This also happens each time you use your check card to pay a bill online or set up automatic debits.

• To really build your savings quickly you can also request an automatic transfer from your checking account up to $100 each month.

While it might not seem like a lot of money you will be surprised how quickly it can add up. In addition to painless and effortless savings, you will also benefit from a 5% bonus (up to $300) on your savings at the end of the year as well as 5% Annual Percentage Yield. It is important to note that after the first year the bonus as well as APY drops to 2%.

This program is ideal for people just opening checking and savings accounts. You not only receive a sign on bonus for a free checking account, but you begin to build your savings without even thinking about it. At the end of the first year you may want to withdraw or transfer your savings to a higher interest rate account. Until that point you can take advantage of a great bonus and APY without changing your current banking practices.

Saving money is challenging when most (or all!) of your income seems to be going towards living expenses and debt repayments. There are several ways to reduce your expenses in order to give you some money to save each month – here are a few tips to get you started:

Set up Transfers

One of the easiest methods of saving money is to set yourself up with a savings account linked to your checking account. Whenever you use money from your primary checking account and it’s an odd number, round up to the next whole number and put the difference into savings.

For example, if you swipe your debit card connected to the checking account and spend $4.82, subtract an even $5 from your balance in your check register, and move the 18 cents into your savings account. Over time, these little deposits will add up, but chances are you won’t even miss them when you do it.

Communications

Cable television, cell phones, and internet are often expenses that can be reduced or eliminated all together. Many television shows can now be watched for free, or for a few dollars a month on various web sites – making it possible to eliminate your cable tv bill and save money each month. With a little research, you can even get your computer and television connected to view your shows on your tv through your computer.

Cell phone statements tend to have unexplained charges from time to time. Be sure to examine your statement each month and ask for verification on any fees and charges you don’t understand – you may lower your cell phone bill by a few dollars each time you do this.

If you don’t rely on your internet for work purposes, you may not require the fastest connection or most expensive internet plan. Consider downgrading to a less expensive plan and putting the difference in your savings account each month.

Organize and Get Rid of Clutter

If your home is getting over run with clutter, it might be time to get rid of it, organize, and make a few dollars on the sale of the items you no longer need. Books, CDs, electronics and clothes are all items that sell well on eBay, at yardsales, or on various online sites that buy your old stuff in order to resell it to their site visitors.

Your trash is someone else’s treasure, so before you throw it out, see if you can make a few dollars to boost your savings account balance.

School is right around the corner, and in some places it’s already started. This can be a very hectic time, and a very costly time, for many families. Luckily there are ways to avoid these extra costs and keep yourself out of trouble.

Buy Later – While it may be important for you to buy certain things before school starts, some things may not be necessary until a little bit into the school year. Instead of buying everything first, wait a couple of weeks into the semester to buy supplies. This way, your child knows exactly what they need for each class.

You’ll save yourself from buying unnecessary supplies (which often happens). Another great thing about buying a little into the school year is that certain supplies may have been marked down in price. This is because they have a surplus of supplies left over and need to get rid of them. As I said, don’t wait last minute for things that are completely necessary (backpack, pencils, etc.), but do wait for things that can be set aside.

Back to School Clothes – Check places such as Marshall’s and Ross for your child’s back to school clothes. There are many stores that offer marked down designer brands for very reasonable prices. Don’t feel like you have to spend loads of money on back to school clothes, because this just isn’t true. Also check out the back to school sales, because a lot of stores offer great mark downs right before school starts. Take your child with you to pick out clothes, because depending on their age you don’t want to buy something that they decide they would never want to wear. If they choose it, they’re more likely to wear it.

Food – Don’t be afraid to let your child eat school lunches. They’re usually balanced and nutritious, and reasonably priced. A lot of people seem to think they save money by packing their kids lunches, and in some cases they do (so try comparing prices between making lunch and buying it). It all depends on the school your child goes to, and what they like you to pack for lunch. This is more of a judgment call in most cases.

Back to school doesn’t have to break the bank, as long as you take the necessary precautions. Don’t feel that you need to spend ridiculous amounts of money on supplies, clothing, or lunches. Make a budget and stick to it, and you’ll be just fine.