5 Frugal Money Habits Americans Can Learn From Other Countries

5 Frugal Money Habits Americans Can Learn From Other Countries

J. Arky   Tue, May 7, 2024

When Americans travel outside of the United States, there’s often a lot of culture shock experienced. The food might be prepared in a unique way and taste the exact opposite of what it is like at home. The languages are obviously different. And the amount of money people spend in other countries for everyday basic items … might not be as much.

This could be due to the exchange rate differences, or, it could just be the frugal habits that non-Americans have adopted in their financial lives.

The U.S. is known for its capitalism, wealth and price tags galore, but that doesn’t mean everyone has to spend a lot of money to meet their needs. Here are five frugal money habits Americans can learn from other countries.

Daily Grocery Shopping

Lots of Americans take one day out of the week to hit up the grocery store and buy everything they’ll need for the next seven or so days. In other places, a daily trip to the market can lead to surprising results, especially in their home-food budget.

“In places like Europe and Asia, many opt for daily visits to local markets,” said Jake Claver, financial director at Digital Ascension Group. “Buying fresh and only what’s needed for the day not only reduces waste but often results in healthier eating and surprisingly, savings over time. Americans, with their penchant for bulk buying, could re-evaluate this strategy.”

According to Kelly Palmer, founder of The Wealthy Parent LLC, “Europeans also save money by focusing on quality over quantity, especially when it comes to groceries. In European cities, you don’t find the same huge grocery stores you do in the U.S. which leads to a smaller, more curated selection of quality food. A smaller store means Europeans tend to just buy what they need and not stock up on items that will be wasted.”

Sharing Resources

In numerous Latin American cultures and countries, multi-generational collaboration is considered a financial cornerstone for families, creating an intricate and stable financial ecosystem. In Peru, for example, there is a practice of forming communal saving groups called “rondas” where community members add a weekly or monthly amount of funds to a shared pool.

Per tradition, this communal account goes to one member at a time, rotating among the participants while promoting saving habits. It also reduces reliance on financial institutions while strengthening community bonds.

“Beyond shared living arrangements, the insight lies in understanding the financial ecosystem that emerges from multigenerational support,” said John Browning, founder of Guardian Rock Wealth.

“In various parts of Africa and Asia, community sharing of resources, be it tools, books, or even skills, is commonplace,” Claver added. “This collective mindset not only strengthens community bonds but greatly reduces individual expenses.

 It’s not just about pooling resources; it’s about creating a dynamic network of financial wisdom, shared responsibilities, and mutual support. Americans can explore the depths of this cultural approach, considering how intergenerational collaboration can go beyond mere financial advantages to create a resilient family foundation.”

Repair Instead of Replace

To Read More:

https://finance.yahoo.com/news/5-frugal-money-habits-americans-171208752.html

The 1 Big Mistake You Should Never, Ever Make With Your Passport

The 1 Big Mistake You Should Never, Ever Make With Your Passport

BuzzFeed   Sun, May 5, 2024

A couple of years ago, I was invited to attend a friend’s July wedding in his wife’s hometown in northern Italy. As the date approached, I remarked to another friend who was also planning to travel from the U.S. for the celebration that I was glad I had just renewed my passport since it was due to expire in May. She responded cheerfully that she was all set because her passport wouldn’t expire until September.

She was mistaken. My friend was not all set because Italy, as part of the Schengen Area of European countries, requires visitors to have a passport that is valid for at least three months beyond the date they intend to depart.

Fortunately, she was able to expedite her passport renewal and make it to the wedding, but her situation highlighted a fairly common misconception about international travel.

Having A Current Passport Isn’t Always Enough

“A lot of us just think we need a valid passport to travel the world beyond our borders, but what many people don’t realize [is] that a current passport alone might not be enough,” said Katy Nastro, a spokesperson for the flight alert service Going.

Indeed, many countries require your passport to have a certain duration of validity remaining beyond the intended dates of your trip. The most common lengths are three and six months past the date you fly back to the U.S.

“A lot of countries, namely in Asia and the Middle East, require six months’ validity beyond your travel dates ― meaning if you take a trip to Vietnam in July, for example, your passport needs to be valid up until at least January,” Nastro explained. “If you arrive at the airport and try to get on your flight, some airlines won’t even let you board without this very important bit of time, in which case you run the risk of not being able to take your trip.”

Each country has a different timeline for passport validity, so international travelers need to familiarize themselves with these policies before booking a trip.

“Some may require three months, while others may require six months or even more,” said David Alwadish, the founder and CEO of the passport and visa service ItsEasy.com. “When some countries also require a visa and grant a multiyear paper visa, they may require at least one year or more [of] validity.”

The specific requirement depends on a variety of factors, including the country’s immigration policies, bilateral agreements and security risk considerations.

“Therefore, it’s crucial for travelers to thoroughly check the entry requirements of the specific country they plan to visit to ensure compliance with passport validity regulations,” Alwadish emphasized.

He and Nastro have both observed a lack of understanding around passport validity rules.

“It’s common for people to be unaware of the three- or six-month passport validity rule, particularly among those who don’t travel frequently or haven’t encountered it before,” Alwadish said. “The rule may not be consistently enforced across all countries, causing misconceptions among travelers. The complexity of immigration policies, which can change, adds to the challenge of staying informed. Lastly, passport validity requirements may not be well-publicized, leading to lower awareness among travelers.”

What’s The Reason For These Requirements?

 “These requirements ensure that visitors have a valid passport for the duration of their intended stay, as well as for a buffer period in case of unexpected delays or extensions,” Alwadish explained.

You might’ve planned a two-week sojourn in the South of France, for instance, but maybe after a few days you realize that you actually want to stay for two months. Or perhaps something happens that’s out of your control.

“This is mainly out of precaution,” Nastro said. “Let’s say you fall seriously ill or have an accident and then need to stay in that country longer than intended. If your passport expires during this unplanned time, it can cause a mountain of issues upon trying to exit the country.”

The period of passport validity for international tourists provides an extra cushion in case you sustain an injury that precludes you from flying for a while, or you delay your return for other personal reasons. The point is to account for the fact that plans might change.

“Countries set a minimum of three or six months of passport validity for foreign visitors to facilitate efficient immigration procedures, bolster security measures and improve emergency management,” Alwadish said. “This ensures that visitors have a valid travel document throughout their stay and can respond effectively to unforeseen circumstances. Furthermore, these requirements promote fairness and reciprocity in visa policies, fostering balanced relationships between countries.”

To Read More:

https://www.yahoo.com/lifestyle/1-big-mistake-never-ever-111603933.html

Why You Should Think Twice About Buying a Home With Someone Before You’re Married

I’m an Attorney: Why You Should Think Twice About Buying a Home With Someone Before You’re Married

Andrew Lisa   Fri, May 3, 2024

According to Quicken Loans, since 2013, there’s been a sharp uptick in the trend of couples buying houses before getting married. While getting an early jump on building equity can be a proactive step toward financial freedom, the strategy has several downsides that can’t be ignored.

 “Buying a home with someone before marriage presents unique challenges from a legal and financial perspective,” said Marty Burbank, an elder law and estate planning attorney and the founder of OC Elder Law in Orange County, California.

Here’s a look at the potential downsides.

Unmarried Couples Lack Important Legal Protections

If you’re planning on getting married, you’re probably not planning on breaking up — but you might. And if you don’t wind up walking down the aisle, a shared property can become a legal minefield.

“The laws that require an equitable division of assets during a divorce are practically nonexistent for unmarried couples who break up,” according to Quicken Loans.

That can make for an ugly and financially disastrous parting of ways.

“I’ve seen many clients struggle with the absence of legal protections typically afforded to married couples,” Burbank said. “This makes essential legal instruments like cohabitation agreements or property agreements vital to clearly define ownership rights and responsibilities. Without these, each party might face significant legal battles or losses if the relationship dissolves.”

Mismatched Credit and Debt Can Make Borrowing a Challenge

Unmarried buyers can secure a mortgage through either a single or joint application. The latter gives more buying power to couples with two incomes — but only if they have comparable credit histories.

“When it comes to obtaining a loan, mixed credit profiles can lead to complications,” Burbank said. “In my experience, one partner’s poor credit score can adversely affect the couple’s loan terms, increasing interest rates or resulting in loan rejection.”

According to Quicken Loans, lenders approve joint borrowers based on the lower of the pair’s credit scores. That means it could make sense for the better-qualified partner to apply as an individual to secure a better rate — but that diminishes purchasing power and puts all the responsibility on one party while taking property rights away from the other.

“It’s crucial for couples to evaluate their financial standings individually and consider consulting with a financial advisor to understand the best path forward, whether that means improving credit scores before applying, or possibly having one partner apply individually,” Burbank said.

Dividing Equity After a Sale Can Be Challenging

Depending on whether one or both parties secure the loan, unmarried couples can structure ownership rights through sole ownership, joint tenancy or tenancy in common — all of which can spell trouble for one or both people when it comes time to cash out.

“Regarding equity division, my experience has taught me that without marriage, complexities in asset division can escalate quickly when a relationship ends or when deciding to sell the property,” Burbank said. “Drafting a clear, legally enforceable document that outlines each person’s contributions and how proceeds will be divided upon sale can prevent many legal conflicts. This should be done with the assistance of a legal professional to ensure that all parties’ interests are protected.”

Taxes Can Get Complicated and Costly

To Read More:

https://www.yahoo.com/finance/news/m-attorney-why-think-twice-200009159.html

7 Surprising Money ‘Rules’ Most People Don’t Know (But Should)

7 Surprising Money ‘Rules’ Most People Don’t Know (But Should)

Sarah Bourassa   Thu, May 2, 2024

You’ve probably heard common financial advice like keeping a budget and trying not to spend more than you make. But other tips aren’t as well-known that can help you save a lot of money and create a financially healthy life.

From daily hacks to long-term tips, we talked to financial experts about not-so-obvious money advice they follow. Here’s what to know:

1. Sometimes you have to spend more to save more.

“A low price on a lousy product is actually a terrible deal because you will end up spending more, in the long run, to replace cheaply made items that break easily,” Andrea Woroch, a consumer-finance and budgeting expert, told HuffPost. “Focus on quality and spend more if it means it will last.” 

Woroch tries to save on quality merchandise by shopping second-hand for name brands. For big-ticket items, she recommends taking advantage of retail sales events (like Amazon Prime Day) and buying seasonal items (like patio furniture and winter clothing) at the end of the season. Other tips: Participate in free loyalty programs and search for online coupons before making a purchase.

2. Don’t be too restrictive with your budget, and don’t try to change it all at once.

“Although a detailed budget keeps you on track to meet your financial goals, one that is too restrictive will actually backfire quickly due to burnout,” Woroch explained. “[And] if you try to change all your spending habits overnight, it will be difficult to stick to the plan.”

Instead, she suggests making a few small changes to your spending and savings habits — and then building on these once they become routine.

She said it’s also important to make room in your budget for expenses that matter to you. For example, if a dinner date with a friend or partner is a priority, keep this in your budget. Find other ways to cut down on spending, like canceling unused subscriptions and unplugging gadgets to decrease energy bills.

3. Beware of convenient methods of payment, like auto-renew.

“It’s extraordinarily easy now in our society to spend money without thinking about it,” said Anne Lester, author of “Your Best Financial Life.” “You can sign up for auto-renew … you see something cute on Instagram, you go tap and boom, you bought it.”

But being able to buy things too easily can lead to unconscious spending. Instead, Lester advises slowing yourself down to make spending money more of a conscious decision.

One way she does this is to always create a shopping list before she goes into a store or buys items online. For online shopping, she suggests setting aside a specific time once a week to make purchases. When reviewing your list, ask yourself: Do I really need this? Is there a tangible moment when I know I’ll use this? Just making the list will give you time to reflect on whether the purchase is worthwhile.

For subscriptions, it can be easy to forget ones set to “auto-renew.” Lester suggests doing a “subscription cleanse” periodically, reviewing all your subscriptions and canceling the ones you’re no longer using.

Being too restrictive with your budget may actually backfire.

4. Automate saving money instead of letting it sit in your checking account.

To Read More:

https://www.yahoo.com/finance/news/7-surprising-money-rules-most-070024195.html

‘Automatic Millionaire’ David Bach: 7 Retirement Planning Tips He Swears By

‘Automatic Millionaire’ David Bach: 7 Retirement Planning Tips He Swears By

Kristopher Kane  Tue, April 30, 2024

Planning for retirement can be challenging and even a little scary. It’s an issue that raises some serious questions that need serious answers. Many of us put off retirement planning because it seems too far away or we’re having difficulty making ends meet with our current earnings.

How much should you save? What are the best methods for growing your nest egg? Where should you invest? David Bach, financial expert and author of 10 New York Times bestsellers, has some advice that might help make answering these questions easier.

Keep reading for a look at seven of Bach’s best tips for retirement, including how much you should try to save, what to do with those savings and how to make the most of your retirement fund.

Tip No. 1: Set Aside an Hour of Earnings Each Day

Bach’s first piece of advice is his trademark go-to phrase: Pay yourself first.

He says, “You’re going to work about 2,000 hours this year, assuming you have a job.”

He goes on to say that most Americans will work around 90,000 hours over the course of their careers, from their first day on the job until retirement. Bach has long maintained that “pay yourself first” means you should keep the first hour of your pay and dedicate it to long-term savings.

For most of us, that 2,000 hours will be over a year of 40-hour work weeks, or around 260 working days per year. This means your goal would be to set aside around 260 times your hourly rate of pay.

For the sake of demonstration, let’s work with a round number and say you make $100 an hour (the actual average hourly wage is considerably less — between $34 and $35). At the end of the year, you will want to have saved a minimum of $26,000, or 260 times the amount you earned for the first hour of every working day that year.

Be Aware: These 8 Expenses Can Kill Your Retirement — Should You Ditch Them ASAP?

Tip No. 2: Put Your Savings in a Retirement Account

It’s not enough to “pay yourself first” if you don’t make good use of that money. Bach recommends that “you move the money into a 401(k), 403(b) or IRA account. If you don’t have one of those retirement accounts then get an IRA account today and get it set up automatically. Ask your employer if you can have the money automatically moved from your paycheck to your IRA account.”

Bach says most employers should be able to offer this kind of automatic diversion of funds, but if not, you may be able to make arrangements with your bank.

“If they won’t do it, then have your paycheck automatically deposited, and then set up your bank account to automatically move the money into your IRA account before you can touch it.”

Tip No. 3: Manage Your Retirement Savings Wisely

 To Read More:

https://news.yahoo.com/finance/news/automatic-millionaire-david-bach-7-140023193.html

6 Money Moves the Rich Make To Stay Rich

6 Money Moves the Rich Make To Stay Rich

Jennifer Taylor  Sun, Apr 28, 2024,

If you’re trying to make more money, studying the rich is a great place to start. Some wealthy people were born into money, while others worked their way to the top. However they got there, many have figured out how to stay rich.

Learning how to make millions is one thing, but mastering the art of keeping that fortune intact is a different task. Many people get rich only to blow through their earnings in a matter of years.

Whether you have come into money or are still figuring out how to get there, keep reading to learn more about how the rich stay rich.

They Avoid Get-Rich-Quick Schemes

One common misconception is that the wealthy constantly look to get richer more quickly through engaging in activities such as picking stocks, said Laurie Samay, director of financial planning at Apexium Financial LP. “In reality, the wealthy are typically more interested in preserving their wealth.”

Rather than taking a risk on volatile get-rich-quick schemes, Samay said the wealthy take a slow-and-steady approach to investing, and they focus on diversification. She recommended investing across several asset classes to gradually build wealth.

“Many academic studies have concluded that the mix of stocks and bonds in a portfolio has the greatest influence on performance — even more so than transaction costs and security selection,” Samay said. “Like the rich, your portfolio should be adequately diversified across asset classes.”

Samay said being diversified might include exposure to:

Different types of bonds

Large-cap equities

Small-cap equities

International equities.

You can further diversify by investing in specialty asset classes, such as natural resources and real estate equities, Samay said.

They Make Retirement Savings a Priority

Among the wealthy, saving for retirement is typically a priority, because they want to maintain their current lifestyle — at least to a certain extent — during their golden years, Samay said.

“This principle is just as important for the average Jane or Joe,” she said. “Although it’s tempting to focus on improving your current financial situation, it’s never wise to ignore your future finances.”

Retirement might be decades in your future, but Samay said your best chance of having a financially secure and comfortable retirement is to start putting money aside today. She recommended taking advantage of any employer-sponsored retirement plans available to you.

“In a 401(k) arrangement, your employer will typically match all or a portion of the contributions you make to the plan, giving you more bang for your buck,” Samay said.

If your employer doesn’t offer a retirement plan or you would like to make additional investments, consider contributing to an individual retirement account or a Roth IRA.

“Although you might not be able to max out your contributions today, the sooner you start, the less you’ll have to save in the long run, due to market gains and compounding,” Samay said.

To Read More:

https://www.gobankingrates.com/money/wealth/reasons-rich-stay-rich/?utm_term=incontent_link_17&utm_campaign=1269744&utm_source=yahoo.com&utm_content=20&utm_medium=rss

Settling the Gold Versus Crypto Debate

Settling the Gold Versus Crypto Debate

Notes From The Field by James Hickman  April 24, 2024

In 1972, while excavating to build a factory on the Black Sea coast of Bulgaria, a backhoe operator noticed gold objects glimmering in the bucket of his machine.

The construction worker had accidentally discovered the Varna Necropolis.

Dating back to around 4500 BC, the jewelry found in this ancient burial site is the earliest evidence of the use of gold by humans, and archeologists believe that they were considered a status symbol in ancient burial rituals.

Thousands of years ago, gold was likely collected from the earth’s surface in the form of nuggets or river dust.

It wasn’t until about 3500 BC, on a hilltop located in the modern-day country of Georgia, that a group of people from the prehistoric Kura-Araxes dug the oldest known gold mine.

Known as Sakdrisi-Kachagiani, the gold mine predates Ancient Egypt and even Mesopotamia.

By around 2000 BC, commercial transactions involving gold were being recorded on cuneiform tablets in modern-day Turkey. Materials like tin and textiles were traded for a particular weight of gold, because the first known gold coins weren’t minted until around the 6th Century BC.

King Croesus of Lydia in modern-day Turkey, used these coins to standardize the weight and purity of gold.

After that, gold coins were used directly in commerce for thousands of years, until the United Kingdom formally adopted the gold standard in the early 1800s. This was the first monetary system where a country’s paper money had a value directly linked to gold.

And even today, over 50 years since the US abandoned its own gold standard, central banks around the world still hold vast quantities of gold as a reserve to store value.

Individuals and large financial institutions do the same. And gold jewelry is still extremely valuable.

That’s quite a track record. For over 6,000 years, humans have valued gold.

Fifteen years ago, Bitcoin was created. And today there are countless millions of people who believe crypto has value too.

Now, gold and crypto are completely different and seldom belong in the same sentence. But for some reason there are often heated debates between proponents of each who argue bitterly over whether Gold or crypto is better.

No other asset classes attract such conflict or controversy. You don’t see passionate oil investors engaging in riotous debates with natural gas speculators. There is no heated argument over wheat vs. soybeans.

But gold and crypto are sometimes positioned as diametrically opposed, and this is just silly. Each asset has its function.

Gold has an enormous amount of value— and I have actually argued that it is still undervalued, even at its all-time high.

I’ve written extensively about the US government’s financial woes; the national debt is closing in on $35 trillion, and that figure is set to grow by $20+ trillion over the next decade according to the government’s own financial forecasts.

In addition to the new debt, the amount of debt the US government has to refinance over the next 5-7 years is staggering— literally tens of trillions of dollars. And all of it will be refinanced at a higher interest rate.

This means that interest payments on the national debt will keep growing like a malignant tumor.

In fact this year the amount of interest paid on the national debt will exceed defense spending for the first time in US history. And it will only keep rising.

Gold will most likely do very well in that scenario. But more importantly, foreign governments will likely move away from the US dollar as the global reserve currency over the next 5-10 years… and gold is the most likely asset to replace the dollar.

Central banks are already buying more gold as a reserve. And when the dollar loses its dominant global reserve status, countries are likely to turn to gold as a stable alternative that they can trust… because they already own it.

Simultaneously, crypto also has a lot of benefits. If you hold 100% of your savings in the financial system— whether at a bank, brokerage, etc., you might be surprised to find how easily it is to lose access to your funds.

Government agencies can seize your account (without due process) even by mistake. Banks can fail. They can freeze your account and force you to prove that you’re not doing anything wrong.

Plus even the most mundane bank transfers these days are heavily scrutinized. I had an exasperating conversation with a bank not long ago when I tried to send money to my sister… and they required all sorts of paperwork and justification to send my own money to my family.

Crypto is a great way to bypass that mess… to simply send money from point A to point B directly, without any middleman whatsoever.

Crypto exists digitally, so it can be moved across borders easily and at no cost. And if you know what you’re doing, you can hold it yourself, without any third party or even special security equipment… and this is an incredibly unique feature.

The idea behind a Plan B is to figure out what you want to accomplish and figure out which tools are available to help you achieve your goals.

Well, it’s a pretty smart goal to want to have protection against the declining currency of the world’s most heavily indebted nation. It’s also a reasonable goal to want to own some assets that are completely beyond the financial system.

Crypto and gold are two completely separate tools for completely separate purposes. There’s no sense in debating crypto vs. gold. To me the answer is both.

To your freedom,  James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/settling-the-gold-versus-crypto-debate-150734/

The Fed’s Game Of “Make Believe” Comes To An End

The Fed’s Game Of “Make Believe” Comes To An End

Notes From The Field by James Hickman (Simon Black)  April 29, 2024

It’s barely been a year since the 2023 bank crisis in which several large banks, including Silicon Valley Bank and Signature Bank, failed.

At the time, I wrote that the bank failures weren’t over, and that there would be more.

But it’s been quiet for most of the last year; the banking system has been pretty calm thanks in large part to an emergency program that the Federal Reserve created to bail out other troubled banks.

They called it the Bank Term Funding Program (BTFP), and it essentially expired a few weeks ago. In other words, no more emergency lending to troubled banks.

Barely a month later, we have already witnessed our first casualty: Pennsylvania-based Republic First (not to be confused with First Republic, which failed last year) was shut down by regulators on Friday afternoon.

Republic First had the same issues as the others that failed last year — too many ‘unrealized bond losses’ on their balance sheet.

Just like Silicon Valley Bank, Signature Bank, etc. last year, Republic First had used their customers’ deposits to buy US Treasury bonds in 2021 and 2022, back when bond prices were at all-time highs.

By early 2023, the situation had reversed. Bond prices had plummeted; even supposedly ‘safe’ and ‘stable’ US Treasury bonds had fallen substantially in price, and banks were sitting on huge losses.

Remember that bond prices fall when interest rates rise. So when the Fed jacked up interest rates from 0% to 5% in an attempt to control inflation, they were simultaneously creating huge losses in the bond market... which also meant huge losses for banks.

Silicon Valley Bank was just the tip of the iceberg. Plenty of other banks (including Bank of America) had racked up enormous bond losses. In fact the total unrealized losses in the banking sector last year amounted to a whopping $620 billion.

The Fed knew they had an enormous problem on their hands. So they created this Bank Term Funding Program, which was basically a giant game of ‘make believe’.

Through the BTFP, banks were allowed to borrow money from the Fed using their cratering bond portfolios as collateral. But instead of valuing the bonds at the actual market price, everyone simply pretended that the bonds were still worth 100 cents on the dollar.

In other words, the banks just made up prices for their assets, and the Fed allowed them to do it.

(It’s ironic that a certain former President is on trial in New York City for inflating the value of his assets, even though banks were inflating the value of their bonds through the BTFP.)

The Fed managed to prevent any further embarrassing bank failures last year by sprinkling this magical fairy dust across the banking system.

But now that the BTFP has expired, it has become obvious that problems in the banking system haven’t gone away. Republic First’s failure a few days ago is just one symptom.

Think about it: Bond prices are still down (because interest rates remain much higher than they were in 2021-2022). Banks are still sitting on massive unrealized losses.

And now that the Fed has stopped playing ‘make believe’, the bank failures have started up again.

It’s not to say that ALL banks are in terrible shape; some banks wisely used the last twelve months to get their financial houses in order.

Unfortunately most didn’t... which is why there’s still more more than HALF A TRILLION dollars in unrealized losses in the US banking system. This means that Republic First probably won’t be the only failure, unless the Fed steps in with its magical fairy dust again.

Also bear in mind that losses from their US Treasury portfolios aren’t the only problem in the banking system; for example, plenty of banks are sitting on huge potential losses from loans they made on office properties.

I don’t think the scope of this problem is anywhere near the 2008 financial crisis, which brought down some of the world’s largest banks. Not even close.

But the reality is that there are still a lot of banks with a lot of unrealized losses. And the biggest one of all happens to be the Federal Reserve.

According to its own financial statements, just released last month, the Fed’s total unrealized losses are almost $1 TRILLION — $948.4 BILLION to be more precise. And the vast majority of those unrealized losses come from US Treasuries.

So just like Silicon Valley Bank, Signature, First Republic, and now Republic First, the Federal Reserve has rendered itself completely insolvent.

In fact, total Federal Reserve capital is just $51 billion... versus $948 billion in losses. This means the Fed is insolvent 19 times over.

Think about that: the largest, most important central bank in the world... the steward of the global reserve currency... is completely insolvent on a mark-to-market basis.

You’d think that would be front page news. But no one ever talks about it. No one even wants to talk about it.

Of course plenty of people will insist that it doesn’t matter, just like they insist that the national debt doesn’t matter.

But this is yet more absurd fantasy; just look at the facts:

The FDIC’s published reports show more than $500 billion in unrealized losses in the US banking sector.

The Federal Reserve, which in theory would bail out the banking sector, is itself insolvent by $900 billion.

The US government, which would bail out the Fed, is insolvent by more than $50 trillion.

It’s just debt on top of debt on top of debt. Losses on top of losses on top of losses.

Just like the BTFP, everyone wants to play a giant game of ‘make believe’ and pretend that the Fed’s solvency is not a problem, that the US government’s enormous debt is not a problem.

On the contrary, they’re huge challenges. And the ultimate consequence is going to be the loss of the US dollar as the global reserve currency.

To your freedom,  James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/the-feds-game-of-make-believe-comes-to-an-end-150768/

Warren Buffett’s Top 20 Tips That Will Save You From Financial Disaster

Warren Buffett’s Top 20 Tips That Will Save You From Financial Disaster

Kellan Jansen   Sun, Apr 28, 2024,

Warren Buffett is one of the most widely trusted investors of the modern era. When he offers financial advice, it’s worth listening to — especially if it can help you avoid financial disaster.

Put yourself on the right track for financial success by studying Buffett’s best everyday money tips.

Start an Emergency Fund

Buffett says you should start an emergency fund before investing. Try to fund it with three to six months’ worth of expenses. That way, if you suddenly lose your job or have to allocate your paycheck elsewhere, you won’t have to sell your assets to get back on track.

You can’t time financial emergencies — if they occur when the market is down, you could be forced to sell for a loss unless you have enough in savings to cover the cost.

Avoid Debt

Buffett is strongly against debt. In a 2004 Berkshire Hathaway meeting, he said, “It’s very tempting to spend more than you earn. It’s very understandable. But it’s not a good idea.” This puts him in line with other personal financial experts, like Dave Ramsey, on the subject.

When you’re in debt, unexpected expenses can be devastating. They can force you to miss installment payments, which may hurt your credit score and delay you from reaching your financial goals.

Pay Yourself First

Next, Buffett recommends making saving your first priority. He said, “Don’t save what’s left after spending, but spend what is left after saving.”

You can summarize his mindset as paying yourself before you pay others. This shift in approach can improve your spending habits and make sure you’re always primarily focused on building wealth.

Think Long Term

When it comes to investing, Buffett prides himself on taking the longest view in the room. In a 2022 shareholder letter, he said, “Our favorite holding period is forever,” and “having a long attention span and the ability to concentrate on one thing for a long time is a huge advantage.”

For the average person, this is a reminder to only invest in companies and assets you’re comfortable holding for many years. When you adopt this strategy, you’re less likely to make financial decisions based on short-term market fluctuations. This ensures you benefit from the long-term growth of great companies instead of selling too soon and missing out on gains.

Recognize What You Don’t Know

One reason people struggle with investments is they buy stocks they don’t really understand. When you don’t understand an asset, it’s harder to make good decisions about when to buy, sell and hold it.

Buffett is a firm believe in never investing in what you don’t understand.

Create Opportunities for Yourself

Buffett was a big believer in side hustles before the term existed. In his early years, he made extra money by delivering newspapers, selling used golf balls and even buffing cars.

Stories from Buffett’s early years show that he was always looking for new opportunities for himself. When they didn’t exist, he created them. Adopting a similar approach could help you bring in more income, which means more cushion for scary financial situations.

Be OK With Sitting Out

Buffett’s company, Berkshire Hathaway, has $168 billion in cash and short-term investments. If you had that much extra cash lying around, you’d probably invest a good chunk of it. But Buffett doesn’t. He’s OK with waiting on the sidelines until the right opportunity emerges.

His famous “20-slot rule” is a great example of the philosophy. He says to imagine you had a card with only 20 slots in it — those slots represent all of the investments you could make in your lifetime. You’d probably think a little more carefully about the assets you buy and sell. This is how Buffett always thinks.

Admit Your Mistakes

To Read More:

https://finance.yahoo.com/news/warren-buffett-top-20-tips-140115339.html

7 Key Signs You Can Afford To Do What You Want When You Want

7 Key Signs You Can Afford To Do What You Want When You Want

Cindy Lamothe   Fri, Apr 26, 2024,

There is perhaps no greater dream than having the freedom to do what you want when you want. For instance, being able to take that weekend trip, splurge on a fancy new wardrobe, or pay the tab on a large meal without worrying about your bank account.

All of these scenarios come from being financially free.

 “Financial independence is a major milestone and something most desire to reach,” said Dayten Rynsburger, chief revenue officer and co-founder of Niche Capital CO.

If you can relate to that — and wonder how you’ll know when you have made it — here are a several key signs according to experts.

You Can Put All Your Bills on Autopay

“One of my personal favorite benchmarks for financial freedom is when you can place all your bills on autopay and never have to worry about an overdraft,” said Carter Seuthe, CEO of Credit Summit.

“This is sort of a tongue-in-cheek measure, but I think it works. It means you have the financial freedom to know and trust your bills are covered, and that there’s a consistent amount of money in your accounts to allow for this.”

You Don’t Have Debt

“Being debt-free, including paying off all credit card balances, loans and mortgages, indicates financial freedom as it frees up income for other purposes and eliminates the burden of interest payments,” said Michael Benoit, certified finance expert and founder of ContractorBond. “For example, if someone has been able to pay off their student loans and credit card debt, they can now use that money to invest or travel without worrying about payments.”

Jonathan Feniak, general counsel at LLC Attorney, equally notes that having a low debt-to-income ratio is a big sign. “Individuals at the helm of their finances typically have a low debt-to-income ratio. They have managed to significantly pay off their debts or maintain a credit balance that is manageable relative to their earnings.”

He added, “Not all debts are created equal. When you’ve got expensive debts like credit cards and personal loans cleared, it’s a significant step towards financial liberation.”

Check Out: 6 Cheap Hobbies To Start in 2024 That Will Make You Extra Money

You Have an Emergency Fund in Place

“I would point out that having a fully-funded emergency fund, typically covering 3-6 months’ worth of living expenses, provides financial security and peace of mind in case of unexpected expenses or job loss,” said Benoit. “For instance, if someone has an emergency fund and their car breaks down, they can pay for the repairs without going into debt.”

You Have Established Savings and Investments

To Read More:

https://finance.yahoo.com/news/7-key-signs-afford-want-200306383.html

Here’s How I Learned (And Built Wealth)

Here’s How I Learned (And Built Wealth)

I Knew Nothing About My Own Money — Here’s How I Learned (And Built Wealth)

Andrew Lisa  Wed, April 24, 2024

Financial literacy is the foundation of financial success.

You don’t need a graduate degree in finance to avoid overdrafting your checking account or going into credit card debt, but avoidable mistakes, unhealthy borrowing and missed opportunities are all but certain if you don’t understand the basics of credit, interest, budgeting, banking, taxes, saving and investing.

The good news is that if your financial knowledge isn’t up to par, it’s not too late to learn your way into prosperity — and a new GOBankingRates study of more than 1,000 people is proof.

Can Financial Literacy Cure Money Mismanagement?

Nearly half of the study’s respondents — about 44% — said they never struggled with money due to a lack of financial literacy. On the other end of the spectrum, 36% say inadequate knowledge has held them back and that their finances are still in disarray because of it.

However, nearly one in five — about 19% — had previously struggled but have since recovered after gaining a better understanding of personal finance.

Young and youngish people between 18 and 44 were more likely than older people to have righted a faltering ship through improved financial literacy, and men were more likely than women to say the same.

However, one overarching theme prevails across all demographics: If you’re struggling financially, committing yourself to learning more about the ins and outs of money is the surest way to improve your chances of cutting spending, eliminating debt, building savings and creating wealth.

Another incentive to learn as much as possible about money is that personal finance knowledge transfers seamlessly to business pursuits. GOBankingRates spoke to a successful entrepreneur who applied what he learned about personal finance to his company’s bottom line.

An Entrepreneur Turns Personal Finance Knowledge Into Business Acumen

Daniel Meursing is the CEO of Premier Staff on Sunset Boulevard in West Hollywood, Los Angeles. When he founded the luxury event staffing agency in 2018, he had plenty of industry knowledge, high-level connections and no shortage of ambition — but upon going into business for himself, he realized that his commitment to financial literacy might have been his most important asset of all.

His company has worked with everyone from automotive giants like Bentley and Ferrari to entertainment powerhouses like Netflix and The Oscars — and Meursing’s efforts have helped him build a comfortable amount of wealth along the way.

But he wouldn’t have been able to manage his business’s finances so successfully had he not taken ownership of his personal finance self-education. Although, that’s not to say his journey from monetarily ill-informed to financially savvy was easy.

“I understand that becoming financially literate can be overwhelming, but I believe it’s a crucial step toward achieving financial success,” said Meursing.

It Can Be Hard To Know Where To Begin, but Just Take That First Step

As with anything, the first steps toward financial literacy are the hardest. With so many complex subjects, potential sources of knowledge and conflicting information, it can be hard to even know where to begin.

“For those who are just starting their financial literacy journey, I recommend seeking out reputable sources of information, such as well-established financial publications, educational resources provided by trusted financial institutions, and books written by experienced professionals in the field,” said Meursing, who leveraged his real-world network while also leaning on academic sources.

To Read More:

https://www.yahoo.com/finance/news/knew-nothing-own-money-learned-150112934.html