Counter Intellegence That May Save Your Life!

This just in – start looking for ways to save now; Taxes are on the rise, and you WILL suffer if you don’t!

Ah, wouldn’t you know it, writing about the right thing at the right time feels great! This morning I woke up and did my usual reading on the web and guess what I came across? Take a look at this article! Tax hikes and cutbacks: States crunched!

Remember that little thing called inflation? Well, not only do we have to worry about the incoming inflation but we also have to worry about increased taxes now too! Um… I don’t know about you but that kind of  sucks! Well, the good thing is that Moolah Blog is here to help you survive these crazy times with good counter-measures to fight the currency erosion and the tax hikes! We will be diving into a series of counter-measures that will guide you through the inflationary period and past the tax burdens as well. Word of advice: Do not go past any step without first completing the previous step. If you decide to move past a step, you can’t say you weren’t forewarned.

Again, the following methods of counter-attacking currency erosion and tax hikes should be followed without surpassing any step. Alright, let’s get started!

1. Emergency Fund (Not to be confused with a regular savings account): In a way, we will be cutting expenses and increasing revenue like the States are looking to do so in the current economy. The only difference is that we will be learning how to decrease our tax burden through different forms of investments. Cutting expenses is a must no matter what methods you choose to try and be financially stable.

First things first, make sure that you have sufficient money in an emergency fund in case of emergencies. You can do this however you like; whether it be making smaller payments on debt or cutting back on expenses, an emergency fund should be at minimum five hundred to one thousand dollars depending on what is more affordable or feasible on your budget or income. This fund should be exclusively used for emergencies only! This fund should be kept safely in an savings account that is producing at a rate higher than 1% in my personal opinion.

Now, lets say that you’ve managed to create your emergency fund, what do you do with it now? You will want to put the emergency fund in a place where you can earn the highest return without risking a penny. Bellow are some suggestions as to where you can place your money. The important thing here is to make sure that your emergency fund counteracts the average inflationary rate of 1% (average over the last 100 years). This means that your emergency fund will, for any unforeseeable or unpredictable circumstance, be available to you without having lost its value over time.

Emergency Fund Recommendations:

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E*TRADE Bank. No fees, no minimum balance. 0.95% APY.

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FNBO Direct. No fees, no minimum balance. Recently rated best online savings account by Kiplinger, FNBO Direct is the online arm of First National Bank of Omaha.  1.50% APY.

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ING Direct. No fees, no minimum balance. A great feature is the ability to split your account into several labeled sub accounts. 1.5% APY.

Note: ING Direct offers a $25 bonus to new customers who deposit $250 or more. Once you have an account you can earn $500 by referring other customers.

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HSBC Direct. No fees, no minimum balance. HSBC Direct entered the race with one of the highest interest rates ever available on a high-yield online savings account, 6% APY. That was about two years ago. Since then, HSBC Direct has continued to be towards the top of any list of online bank accounts. 1.55% APY.

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Ally Bank. GMAC Bank is now Ally Bank, and the company has started a marketing campaign and using high interest rates to draw in new customers. Savings accounts, CDs, and money market accounts at Ally Bank are insured through the FDIC so as long as you don’t go over the FDIC limits, GM’s bankruptcy should not affect your deposits. 2.00% APY.

Some Advice:

Sign up for two or three of these accounts if you wish to do so. It might be a good idea to transfer funds between these accounts when the rates change! ;D

We will going into step 2 in our following post….