Money market funds have it all over bank savings accounts and interest-bearing checking accounts when it comes to being a good place to stash your savings. Money market funds are, in fact, a type of mutual fund, the difference being that the price per “share” sticks at $1 and never changes. That, from a purely technical standpoint, makes money markets riskier than checking and savings accounts. (more…)

The dollars we have freed up from the budgeting and review process need to be put in an account to start our cash reserve to cover all expenses for at least ninety days.

OK, we have done budgeting; reviewed car and home owners insurance; analyzed sources of income and payroll deductions; and how money is spent. When do we get to the fun part, saving money? (more…)

Finding a mutual fund that’s a good fit for you can seem a daunting process. After all, there are literally thousands of these things floating around. And if you pick up a financial magazine in hopes of sorting through this mess, you’re bombarded by a ton of fund advertisements, all touting that particular fund family’s great returns and often including pictures of the fund managers, arms crossed and looking fiercely insightful. (Why fund companies think how their managers look is somehow enticing to investors remains a mystery to me.) (more…)