Answers each question and comment on each student post in 100 word count
I am a great fan of the Flexible Spending Account (FSA) because it helps me cover some expenses that you cannot control. The first time I heard about was in a benefit’s enrollment meeting. Too many people start talking really bad about it because if you do not use all your funds, you forfeit them. However, I stayed longer and asked the person that was given the information. She explained almost everything about and the most I liked was that I will have the total amount available on the first day of the year and that the money was not paying taxes.
Every year I take the FSA that help me to pay for glasses, co-payments, medicines, and other things that are sold through the FSA’s store. I think this is a way to save too.
(2) Sinking Fund
I have never used a sinking fund. Actually, I did know about it until now. It is something I per sure I will use to save money to buy my dream home. By the moment I am trying to pay all my debts to start saving for my house, but I think I can start doing research about the offers in my bank in reference to sinking funds.
In Colombia, big companies have an employees’ organization. It is something like a union but works only to looks benefits for the employees from the employees. They have a fund that is called “Natillera.” In that fund, you put a monthly payment that gains interest and you receive the invested money plus the interest before Christmas. The greatest thing is that they make a monthly raffle among the participants and if you win you get the total amount that you must receive at the end of the year. I never participated in those funds but my dad won more than five times.
(3) Have you ever created a sinking fund to help you with a large purchase? If so, what was the purchase and how did you create your sinking fund? Would you do anything differently after reading this week’s chapters? Why or why not?
If you have never created a sinking fund for a large purchase, discuss this week’s topics related to how you would create one. Be sure to indicate what you would be purchasing with your fund.
I create sinking funds for both personal and business use. I set aside certain amount of money every month to fund for new computer parts, vacation… For business, I set aside different amount of money depends on how quick the current system degraded. For example, the antenna system can only function with minimum issues in 3 to 5 years. They need to be replaced and sinking fund will be created from the day system is acquired and adjust over time to keep up with the degrading rate.
(5)What are you doing to save for retirement?
If you are not currently saving for retirement, how should you get started?
(6) My older brother gave me this advice several years ago when I was complaining about not being able to save as much as I would like. He asked me about my phone bill, cable bill, car payments. He told me to start there and see where I could “trim the fat”. I wasn’t able to lower all of them but it was pretty surprising how many of them I was able to cut down. Some of them I had to sacrifice a little bit (is giving up HBO really a sacrifice?), but some I just needed to call and take advantage of some promos or deals that were going on. It didn’t seem like much but added it up pretty nicely when I was paying my bills every month and they were less than the previous months.