7 Reasons You Shouldn’t Keep More Than $3,000 in a Checking Account

I’m a Bank Teller: 7 Reasons You Shouldn’t Keep More Than $3,000 in a Checking Account

Laura Beck  Thu, June 20, 2024

Many people simply leave a large chunk of money in their checking accounts and let it sit there. But is that the best move? Probably not. GOBankingRates spoke to Rachael P., a seasoned bank teller who had seen it all when it came to customers’ banking habits. She knew firsthand the pitfalls of keeping too much money in a checking account and was always ready to offer tough financial advice when needed.

Here are the seven reasons why a bank teller advised against keeping more than $3,000 in a checking account.

No Interest Earned on Larger Balances

The number one reason Rachael disliked seeing huge balances in checking accounts was the complete lack of interest earned. “Why would you keep $10,000 just sitting there doing nothing?” she asked. Checking accounts are meant for money that will be spent in the short term, not for larger sums that could be earning interest elsewhere.

Easier Access Makes Frivolous Spending More Likely

Rachael had noticed a clear correlation between the size of a customer’s checking account balance and the amount of frivolous spending they do. “It’s like having a milkshake in front of you 24/7 — you’re going to keep taking sips whether you need them or not,” she said. Separating out larger sums makes it psychologically harder to dip into funds earmarked for other purposes.

You Lose Out on Opening Bonuses

Many banks offer lucrative bonuses of $200 or more just for opening new checking or savings accounts and maintaining a minimum balance. But if you already have a large checking account balance, you miss out on the ability to cash in on these deals. “Why leave money on the table?” Rachael asked. “That bonus could go right into investments.”

Your Money Isn’t as Safe as You Think

For all the security surrounding banks, a checking account balance only has $250,000 of FDIC insurance if the bank fails. Any amount over that is not protected. By keeping an excessively large sum in a checking account, customers were needlessly putting their money at risk. “Write that number down and decide if it’s worth it,” Rachael said.

No Opportunity for Compounding

“The miracle of compounding only works if your money is actually invested and earning returns,” Rachael shared. By leaving large amounts of money in checking accounts, many people were depriving themselves of decades of potential growth. Even a simple high-yield savings account could earn a customer hundreds — if not thousands — more per year than a standard checking account.

To Read More:

https://www.yahoo.com/finance/news/m-bank-teller-7-reasons-130007632.html

Giving Your Kids a Living Inheritance? Why It Might Be Necessary With Today’s Cost of Living

Giving Your Kids a Living Inheritance? Why It Might Be Necessary With Today’s Cost of Living

Cynthia Measom   Tue, June 18, 2024

Depending on their goals, wealthy parents or grandparents may opt to give a living inheritance instead of waiting until they die to pass on their assets.

Dana Blue, Esq., an experienced estate planning attorney at Dana Blue Law, explained that a living inheritance — also known as an accelerated inheritance — means giving some of your money or assets to your family while you’re still alive, rather than waiting until after you’re gone.

 “It’s like helping them out when they need it, whether it’s for buying a house, starting a business or paying for education,” she said.

Understanding more about why a living inheritance may be helpful to your loved ones and its pros and cons helps you decide if it’s the right choice for your financial planning.

Are More People Opting To Give a Living Inheritance?

“In my job as an estate planning attorney in Philadelphia, I’ve noticed more families considering this option lately,” Blue said. “With today’s high costs of living and uncertain economic times, many people see it as a better way to provide financial support when it can make the most difference. It’s about directly impacting and easing financial worries during important milestones.”

“Several factors contribute to the growing necessity of living inheritances today,” said Marty Burbank, an expert in estate planning and elder law and owner of OC Elder Law. “One key reason is the rising cost of living and education expenses that younger generations face. Additionally, witnessing their descendants benefit from their financial support and ensuring that assets are transferred tax-efficiently are strong motivators for benefactors.”

Why Might a Living Inheritance Be More Necessary Now?

To Read More:

https://www.yahoo.com/finance/news/giving-kids-living-inheritance-why-130019103.html

7 Biggest Cash Withdrawal Mistakes I See People Make Every Day

I’m a Bank Teller: 7 Biggest Cash Withdrawal Mistakes I See People Make Every Day

Madeline Duley   Tue, June 18, 2024

If you have a bank account, you’re likely familiar with the process of withdrawing cash, depositing checks and handling bills. While these might seem like basic tasks, there are a few common mistakes that are easy to make when carrying out these seemingly simple financial transactions.

Find out from a bank teller if you’re making these seven common cash withdrawal mistakes — and learn how to avoid them.

Getting Bills Too Large

Although efficient and compact, large bills aren’t as versatile as you might think.

“One mistake I often see is taking out large bills to spend at local businesses, because most won’t accept them because businesses are worried about fraudulent bills,” said Haley West, head teller at Kohler Credit Union.

The usability and convenience of smaller bills are well worth the annoyance of carrying around a thicker stack of cash.

Requesting Brand New Bills

There’s nothing more appealing than fresh, crisp bills, especially when you’re giving cash as a gift. However, requesting brand-new bills might have frustrating consequences.

“A mistake members make is requesting brand new bills as they are sticky and members tend to come back thinking that we shorted them or they gave too much when they purchased because the bills were stuck together,” West said.

Neglecting To Balance Accounts

Life gets busy and it can be hard to stay on top of account balances. An easy mistake to make is withdrawing cash from an account with inadequate funds.

“A staggering 19% of all payments in 2020 were cash transactions,” said Oliver Brifman, business insurance and financial services expert at eMerchant Authority. “Yet, many customers withdraw without checking their balance, leading to overdraft fees. Always check your balance before a withdrawal to avoid the plunge into overdraft territory.”

Rushing

When you are in a rush or distracted, it’s easy to make mistakes.

 “Based on my time as a bank teller, I learned firsthand how easily little mistakes can happen with cash transactions if you’re not careful,” said Steven Kibbel, former bank teller and now a Certified Financial Planner and financial advisor at Prop Firm App. “When people are rushed or distracted, they often make the mistake of miscounting bills, mixing up denominations or neglecting to double-check important details on checks.”

To Read More:

https://www.yahoo.com/finance/news/m-bank-teller-7-biggest-160040491.html

"Strategy to Retain Wealth" by Quantum Warrior

"Strategy to Retain Wealth" by Quantum Warrior

Emailed to Recaps 11/19/2013  From Recaps Archives

 (Dinar Recaps Note: This post is for informational purposes only.  It is not legal, tax or investment advice.  Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)

Strategy to Retain Wealth by Quantum Warrior

The "recipe" below is my personal one- if it does not suit you, don't do it. If you don't like the ideas, fair enough, we all have that right, but please don't complain to Recaps or me, just read something else. The usual disclaimers apply- do your own due diligence, every situation is different.

Like all of you, I am not wealthy now (except possibly spguru :-) ). However, I have spent considerable time working on my strategy to retain the wealth, there are lots of comments in many posts (including my earlier one) about not behaving like a lottery winner. What does that mean? Simply spending like the money will never run out. It will.

To retain my wealth, I plan to do the following- your figure out your own plan, but these ideas are presented in case they will help clarify the thinking process for those who need the help.

There are some simple rules:

Work on yourself FIRST, then work on your money

Personal Crash Course in the Value of Money

Generate Cash flow from Capital (i.e. Protect Your Capital)

Do NOT ever get into debt, for any reason

When to buy the toys

Legacy - Meaning & Fulfilment

As you'll see you can't really do one of these without the others. But the effort it takes to follow this "recipe" is far less than the pain and consequences of loosing all that wealth after having waited for so long, when many others have given up already.

Work On Your Self FIRST

(Just to avoid the obvious comments- do your exchange first, especially if there is a 30 day window, then start here, OK? :-) )

The obvious question here is "Why?". Well the answer is simple, "Who's going to manage your wealth then?" If you seriously think some Financial Planner has more interest in your long term financial health than you, think again. Or just simply give them all your money and save yourself the future heartache.

No disrespect intended there are many good financial planners out there, but it really is your wealth, so you ought to be more aware than anyone else, for them it is a job, for you it is your future.

Wealth Magnifies Who We Are: If you are a kind considerate person now, chances are you still will be when you have more money than you've ever had. Unless you have some hidden aspects of your character that will come out and sabotage you. Which they will. How much you work on you will determine how much self-sabotage you engage in.

Having lived in the US (the country most infected by this problem in my experience), there is a "disease" if I can put that way, I've observed and not just from when I lived there, but from comments in many posts in Dinarland over the years.

The disease: The Happiness Pill = Either take a pill to solve the problem or hire someone to do it for you. To put this somewhat graphically, no one can go to the toilet for you. Only you can do what you've got to do.

There are no short cuts, no free lunches. If you want the benefits of your wealth, you're going to have to change something about your beliefs or what has happened to you with money in the past will only happen again. Only bigger, with more zeros.

You are capable of solving and learning all these things, else you would not be here with this potential wealth in your hands. It is time to believe in you.

You can't buy a pill to fix the issues you may have, you can't hire an expert to fix you. Only you can empower you. It is no one else's responsibility but your own. This applies to your health and your wealth. Your beliefs create your reality. 100% of the time. You may disagree, but this is like gravity, it is still there, even if you disagree with it.

It has been shown again, and again, that most illnesses start with emotional upsets that eventually become physical. Medication by and large only suppresses symptoms, it rarely cures. Doctors are great if you've broken your leg or something like that. Modern medicine is now beginning to recognise many illnesses (back pain, stomach issues, etc.) are "psychosomatic" in origin.

 In other words, based on our belief system. Change that and the physical symptoms disappear. Please, do your own research on this one. Don't take my word for it.

Long term medical care is not the strong point of western medicine. Look at the "Food Matters" video and form your own opinion. Again, I am not disrespecting doctors, they do an amazing job with what they know. They key is there is more to us than medicine understands. Emotional health is vital to physical and mental well-being, that will never come out of a bottle.

Correct diet and exercise can fix almost anything, food for thought as it were. After all, you want to be healthy to enjoy your wealth right?

If you think this is just hokum, how many people have posted they have become ill, or even people have died over the stress of waiting for the RV to solve their problems? Stress is directly linked to hugely suppressing our immune system, which then means areas where we are physically weak are more at risk.

Managing your emotions, health and mental state will be an essential component in managing your future wealth. If you make clear decisions, make sure you manage risks well, then you'll be more than comfortable, if you are unsure of yourself, you'll end up with even more stress after the RV than you were before because you don't know how to handle the wealth properly and with the fear of loosing it all.

This means looking within and being ruthlessly honest about your strengths and weaknesses, and allowing for them in your plans. Some people have a weakness for fame, others for sex, others for drink or drugs, others for the good opinion of others, others for greed. You get the picture. Clear the obsessions, or the obsessions will clear you out.

Sadly for many, religion today is infected with the idea that "money is the root of all evil". Not just Christianity, but Buddhism & Hinduism have his issue, to name a few. There is nothing wrong with money. It is neutral- it only reflects the nature of the person using it.

This is the most important step and probably the hardest. I could list loads of resources on this topic, but it makes more sense for you to do that work on your own, since what works for me, may not work for you.

Also, if you take this point seriously, you'll do something, if not, you won't. Your action or inaction on this point will simply reflect your beliefs back to you about where you're at in terms of introspection, or looking within.

For the record, with due respect to psychologists, I am absolutely 100% not suggesting you get a shrink. My personal experience is most psychologists are at least as screwed up as their patients, not all but many. The other problem, again, in my opinion and no disrespect intended, is psychology has way too many theories and attempts to shoehorn all human experience into one or another theory.

We are all much, much bigger than just our minds, emotions or our bodies. There are lots of good psychologists out there doing great work, but there is a lot of noise out there too, finding the right one, is kind of like being a princess kissing frogs to see if one turns into a prince.

If you are really stuck, the SEDONA process works very well. it is astonishingly simple:

Feel whatever the emotion is you want to deal with (this includes resistance, blockages, negative and positive emotions). Feel it as strongly as you can

Ask yourself "Could I release this? - The only answer is Yes or No, either is fine, just be honest with yourself

Next, ask "Would I release this?" Again, only answer Yes or No. If in doubt, the answer is always a No.

Lastly, ask "When would I release this?" Again, be honest.

Repeat until the feeling is released, this may take a number of "loops"

If you find resistance, release the resistance using the same process

If the resistance is another emotion, release that with the same process

As you can see, the process is controlled 100% by you, and you can tell when it works, since you will feel lighter and more at ease. Clear ALL the emotion, even only a small "amount" is left. A good clue you've let go of it is if you sigh deeply. The body, mind and emotions are deeply connected.

Just remember some emotions run deeper and are more tangled than others, so may require much more spadework.

The two most important emotional attitudes to consciously develop are forgiveness and gratitude. This especially includes forgiving yourself. If something bad happens to you, ask: "What can I learn from this?" or "What buried assumptions do I have that attracted this to me?".

If you still have an emotional blockage, come back and work through it again. The process is simple, no said it would be easy. But then the things worth doing are never easy.

This is not an instant "magic pill", it will take work, in some cases a lot of work, to clear emotional blockages. It took however many years you've been alive to get the way you are now, it is natural and normal to take a little time to clear this up. The effort is worth it, you'll feel better much faster as you clear the habit of feeling the way you currently do. Because it is just a habit, and habits can be changed.

This is really all you need- we are already in our true nature, amazing, we just deeply, passionately believe we are not. You and only you are in 100% responsible for your life, no one else, not God, not your mother in law, not your boss, YOU. God set up the rules for you to win at this game, but you must play the game to win.

That is scary at first, until you realize that with that responsibility comes control, you can change what you like. This means YOU are in full control of your life. Sure, things may happen that you don't like, but they are reflections of you back to you, of you. Change your patterns, change your world. Sometimes stuff just happens and it's not about us at all, "Suck it up, Princess" and deal with it in an emotionally healthy way.

Personal Crash Course in Managing the Value of Money

Set aside 10% of your capital (after allowing for taxes)- and then spend it as completely stupidly and recklessly as you can. 10% may be quite a lot of money. By doing this, it will clear the "addiction" of spending like a lottery winner, and hopefully you'll see how fast 10% of your wealth can disappear.

Especially, if you are the quiet, careful type, do this- there may well be a suppressed spendaholic in there. If you are a spendaholic, then this may cause you to sober up a bit.

I once read that Anthony Robbins cured someone of smoking in half an hour, by getting him to smoke 20 packets of cigarettes in that time. Same idea but without the cigarettes.

Generate Cash Flow from Capital (i.e. Protect Your Capital)

After you have cleared all (and I mean all your debts, credit cards, money from friends, etc) the next rule is: Never Spend the Capital- only use it to buy assets that generate cash flow. Your homework is to figure out which assets are right for you.

If you are going to start a business, you'd better really be prepared to know what you're doing and a successful business is almost never about the product, it is an important ingredient but not the most important.

Work ON the business NOT in the business. My preferred approach is to buy into existing, viable businesses for long term cash flow growth. There are other assets you can buy into, but the ones that really make money with lower risk are almost never sold by financial planners, in my opinion. You do your own due diligence.

For financial products, e.g. stocks and shares, again, clear, unemotional thought and a system that you follow 100% of the time (that is proven to work) are key. There are great buys out there, but you need to clear your mind, manage your emotions and find a wining strategy.

To be good at this, you'll need to learn to read a balance sheet. You'll also need to get your emotions, opinions and other biases out of the way. Your goals an and certainly should include the spiritual dimension, but the application of those goals should be clear sighted and meeting your objective of generating cash flow, cleanly, legally and ethically.

DO NOT EVER GET INTO DEBT FOR ANY REASON

This is really simple: If you can't afford it, don't buy it, save until you can. We've all suffered at the hands of the banks. They are in business for them, not us. Just because you have more money, doesn't mean you can't loose it.

As a safety net, to avoid ever being back where you are now, don't borrow money period. Make sure your cashflow "engine" can at least get you financially free, even if not rich. By staying out of debt, you never put at risk your cashflow assets, which you would otherwise use as collateral for loans.

By avoiding the temptation of "free" money (it's never free, always got strings attached), you avoid the risk of loosing your assets that support your cashflow. After all, there many people in Dinarland who were doing really well 10 years ago and are now really struggling. The world changes unpredictably. Debt is a great way to loose it all real fast.

When To Buy The Toys

Well, you've probably picked up by now, that my suggestion is "never". The thing about the toys is we want to buy the "lifestyle" not the toy as such. So rent them when you need them, based on your on-going cashflow. If you absolutely must have one, than have a business that supports owning them by the profit from it's cashflow, the operating costs of owning the asset.

Toys follow a well known progression:

More Toys - the usual suspects: cars, planes, boats, men, women, parties etc.

Bigger Toys -  bigger versions of what you already have

Better Toys - e.g. owning a sports team

The problem is toys do not fill the void we are trying to fill. What fills that void, is meaning and fulfilment See Legacy below.

Also, if you really must own the toy, see Rule #1 - Work on Yourself FIRST. Why must you own it? Is it show off? To say "I've arrived?" What is your motivation? As long as you are clear about what your motivation is and why want to do it, and you are willing to accept the consequences of that choice, then go ahead, Enjoy!

Remember, very few boats, planes or fancy cars actually appreciate in value over time. See rule #3 - Protect your Capital

By all means use the cashflow you generate from your capital to get the lifestyle you want, just in my view, spending your RV capital to get it, is the slippery road to loosing it.

Yes, generating the cashflow will take time. Allow for that in your planning. Include in your thinking that inflation is usually double what the official figures are- so your cashflow must grow by that, plus some extra to keep money in motion.

Money stored in banks dies. Money needs motion to grow. Our job is to be smart, caring gardeners, who will continue to harvest abundance for decades to come.

Legacy - Meaning & Fulfilment

Do you remember your great-grand parents names? Chances are not. Maybe not even all your grand-parents either. Why? Whilst they may have been great people, they did not leave a legacy.

Contrast that with George Washington, Julius Caesar, Alexander the Great, Confucius and many more besides. We still speak their names hundreds or even thousands of years after their death. Why? Because they inspired ideas and change that outlasted their lifetimes and still affect us today.

They did not do thinking "In 2013 kids in schools will know my name! Yay!" they did it because they passionately believed in something that helped either a section of humanity, or humanity as a whole to grow and see itself in a new, better light.

Religions come and go, civilizations come and go, but the magic, the best of us, the human race, endures. If we commit ourselves to do the best we can, without expecting anything in return, for all the life on our planet, in whatever form we can, then we create a legacy that is worth having.

Conclusion

As you can see, all the points are connected. Each one supports and strengthens the others. But the first one, is the crucial starting point.

Hopefully you will find something useful in here, to help you grow and keep your wealth, have a fantastic lifestyle (you deserve it), one based on sustainable wealth, not greed that will allow you to give the best of you to helping others grow into the best they can be.

Do You Have to Pay Taxes on a Trust Inheritance?

Do You Have to Pay Taxes on a Trust Inheritance?

Hilary Collins   Sun, Jun 16, 2024

When making an estate plan, using a trust is a way to make passing assets — including both cash and physical assets — a bit easier. In fact, when using a trust, you can often allow your family to avoid a lengthy probate process after you’ve died. Inheriting a trust comes with certain tax implications. The rules can be complex, but generally speaking, only the earnings of a trust are taxed, not the principal.

A financial advisor can help you minimize inheritance tax by creating an estate plan for you and your family. Find a financial advisor today.

Trust Basics

A trust is simply a legal vehicle which can be filled with myriad assets, including cash and physical holdings. The person who creates the trust is known as the grantor. A trust is overseen by a trustee. The trustee can be a person or a firm that manages the trust for the beneficiary. The beneficiary of the trust is the person who benefits from these assets. This beneficiary can be an individual, such as a child or other relative, or an organization like a charitable group.

Trusts are often used as a tool to minimize estate taxes. Also, while assets transferred via a will usually have to go through the probate process, trusts can usually bypass that step, speeding up the process and saving on court fees.

Types of Trusts

There are quite a few types of trusts, but one of the biggest differences between trusts is whether they’re revocable or irrevocable. A revocable trust can be modified at any point during the lifetime of the person making the trust—also known as the grantor. The grantor can add or remove beneficiaries, add or remove assets from the trust or terminate the trust completely. Once the grantor dies, the trust then becomes set in stone and can no longer be changed.

On the other hand, an irrevocable trust is set in stone as soon as it’s finalized. The grantor can’t change the beneficiaries or the terms or remove any assets from the trust once it’s established.

These are the two main categories of trusts, but there are many other types of trusts you might run into as well. These include:

Marital trusts

Bypass trusts

Charitable trusts

Generation-skipping trusts

Grantor-retained annuity trusts

Life insurance trusts

Special needs trusts

Spendthrift trusts

Testamentary trusts

Totten trusts

If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

How Are Trusts Taxed?

To Read More:

https://finance.yahoo.com/news/pay-taxes-trust-inheritance-130026222.html

Buy two, get one half off? How 'Spaving' Discounts Can Derail Your Finances

Buy two, get one half off? How 'Spaving' Discounts Can Derail Your Finances

Daniel de Visé, USA TODAY  Updated Sun, June 16, 2024 119

Any time you buy two of something and get a third item for half off, or add a few dollars to an online order to secure free shipping, you are “spaving.”

Spaving is a mashup of “spending” and “saving”: spending more to trigger savings.

But don’t fool yourself, experts say: Spaving is mostly spending.

“It’s always more spending. It’s not always more saving,” said Jeff Galak, an associate professor of marketing at the Tepper School of Business at Carnegie Mellon University in Pittsburgh.

Spaving has been in the news lately. It sounds like something new: The term has seldom appeared in this publication. It isn’t in the online Merriam-Webster dictionary. Type it into your word processor and watch your spellchecker erupt in protest.

'Spaving' sounds new, but the concept is not.

'Spaving' sounds new, but the concept is not.

'Spaving': A concept as old as the shopping mall

The concept behind spaving, however, goes wa-a-ay back.

“Spaving, besides being a terrible word, is not a new idea,” Galak said. “These promotions have been around forever.”

Here’s the basic concept: A merchant entices a customer to spend a little more, or a lot more, by offering a discount as a reward. Buy a third item, or a fourth, or a fifth, and get the last one free. Add another ten dollars to your cart, and that $5 shipping fee goes away.

Who needs a gallon of extra-virgin olive oil? Maybe you do, at the right price.

Customers may be seeing a lot of spaving offers this summer. Inflation has been pushing up prices. A dozen eggs cost about twice what they did in 2019. Overall, consumer prices rose by nearly one-fifth between 2019 and 2023, federal data show.

Consumers are pushing back. In response, retailers are rolling out deals.

Fast food chains are reviving the value meal in the wake of consumer backlash against reports of $15 Big Macs.

Target and Walgreens have announced summer price cuts. More customers are choosing discounted store brands.

Spending less for the same Happy Meal you bought a week ago is a no-brainer. Spaving, by contrast, can quickly spiral out of control.

'Spaving' can lead to overspending, needless purchases

The problem with spaving, experts say, is that it can lead a shopper to overspend on something they did not want, do not need and will not use.

“It’s always good to save money. The problem is when you’re spending money you wouldn’t have spent otherwise,” said Kimberly Palmer, a personal finance expert at NerdWallet.

Palmer herself recently succumbed to a spaving offer.

“It was a buy one, get one free,” she said. “I never intended to get a second shirt. It was for my daughter. I went ahead and bought two.”

The second shirt was free, so Palmer got a great deal, right?

Well, maybe not. She paid full price for the first shirt. Absent the spaving deal, she would have held out for a discount. In the end, she said, “I did spend more than I wanted to.”

To Read More: https://www.yahoo.com/finance/news/buy-two-one-half-off-090859687.html

Elon Musk: 5 Things Poor People Waste Money On

Elon Musk: 5 Things Poor People Waste Money On

David Nadelle   Thu, June 13, 2024

Despite a rough start to 2024, Elon Musk is once again the world’s richest person, according to Forbes, and in the spotlight this week due to the vote to approve his vote-of-confidence $56 billion pay package being held later today and a sexual harassment lawsuit filed against him and SpaceX recently by eight former employees.

Even the most news-avoidant person will know who Musk is. If there is one thing we can say with certainty, it’s that the SpaceX and Tesla, Inc. CEO knows how to stir the pot like few others. Musk’s social media influence and business acumen is always up for debate. However, as Aeon reported, “Not since Steve Jobs has an American technologist captured the cultural imagination like Musk.”

We can assume that if Musk wants something frivolous, he buys it. However, there isn’t a great deal of wasteful spending by Musk, who has talked in the past about the need to trim down excessive consumer spending by selling off unused real estate and driving his own Teslas (although he has owned a number of valuable collectible cars).

1. Overpriced Real Estate

According to a 2020 story by CNBC Make It, Musk owned four properties in the Los Angeles area worth around $40 million at the time. However, this was after selling off a few Bel-Air properties and after announcing he vowed to “own no house” as a dedication against being seen as materialistic. He now resides in a spartan two-bedroom house in Bocca Chica near Space X’s HQ.

2. Too Much Car

Many Americans get into serious debt by buying a vehicle out of their income range. Like most billionaires, it would be difficult to think that Musk would buy overpriced, depreciating assets with additional financial commitments to fuel, insurance, repairs and maintenance too. That doesn’t mean he hasn’t splashed out on some collectible cars in the past.

However, although he owns or has owned a 1920 Ford Model T, a Jaguar Series 1 1967 E-type Roadster, a 1978 BMW 320i and a rare McLaren F1, he mainly sticks to driving a Tesla Model S or a Cybertruck now, per CNBC.

3. Dining Out and Ordering Food In

To Read More Go To Original Article Here:

https://mail.yahoo.com/d/compose/8959995993?reason=invalid_crumb

Older Americans Are Stashing Thousands Around The House

Older Americans Are Stashing Thousands Around The House. Here's Why This Practice Can Lead To Lost Wealth

Serah Louis  Fri, June 14, 2024

Adrienne Volpe almost threw out her grandmother’s collection of books after she passed away — a decision that could have lost her a small fortune.

“My grandmother had pressed thousands of dollars in single bills inside books,” Volpe told the New York Times (NYT), recounting how she thought she would find autumn leaves within the pages instead.

Volpe’s grandmother had stashed about $10,000 in bills as small as $20 within her books.

Children and grandchildren of older Americans report finding hidden cash and valuables in their loved ones’ homes after they die — like under the mattress or even inside a freezer — due to mistrust in financial institutions.

But this practice can lead to potential wealth-building losses and complications for your loved ones after you pass.

Why You Risk Losing Money By Storing It In The Sofa

While you might have concerns about fraudsters accessing your bank account and siphoning funds from your savings — there are plenty of risks in leaving bundles of cash at home as well.

Experts note that your valuables could get stolen, destroyed by a disaster, like a fire, or even pocketed or misused by a family member. Plus, you could lose out on potential wealth-building opportunities by not investing this money and benefiting from compound interest growth.

“The lost interest — it probably would have been double, just by having it in the bank all these years versus having it in the bottom of a closet,” said Patrick Simasko, an estate lawyer in Mount Clemens, Michigan, who once uncovered nearly half a million dollars in cash and gold in the home of an older client who had hired him to execute her estate.

Some professionals say they often see this cash hoarding behavior among baby boomers and the silent generation — particularly those who grew up during the Great Depression and the bank failures of the 1930s.

However, Mark Criner III, senior trust strategist for Baird Trust in Scottsdale, Arizona, noted that some folks from certain minority communities are prone to this practice as well.

“That’s borne of minorities’ lack of access to these institutions for decades, and even when there was access, there was a lot of abuse,” Crimer told the NYT. “They weren’t always treated fairly or dealt with honestly.”

Problems For Your Loved Ones After You Pass

To Read More Go To Original Article Here:

https://www.yahoo.com/finance/news/older-americans-stashing-thousands-around-100400731.html

5 Myths About Debt That Nobody Should Believe in 2024

5 Myths About Debt That Nobody Should Believe in 2024

May 1, 2024    by Vance Cariaga

If you’re an adult, chances are you have some kind of debt. More than three in five Americans (61%) are in credit card debt and owe an average of $5,875. Americans collectively have about 84 million mortgages totaling more than $12 trillion, according to LendingTree. The Education Data Initiative estimates that 43.2 million U.S. borrowers have federal student loan debt.

Those stats don’t even include car loans, personal loans, business loans, lines of credit and other sources of debt. Given how much debt Americans carry, you’d think they’d do a better job of separating myth from reality.

Sadly, that’s not the case. Many debt myths are still alive and well in 2024. Here’s a look at five myths nobody should believe anymore.

Myth No. 1: All Debt is Bad

On the contrary, debt can be a positive financial tool when used wisely. Unfortunately, debt carries a negative stigma with many people, according to Natalia Brown, Chief Compliance and Consumer Affairs Officer at National Debt Relief, a provider of debt settlement and relief services.

She says there are a lot of reasons this myth persists.

“We may have watched our parents or someone close to us have terrible experiences with debt, lack of overall financial education, believing credit is not easily accessed and not knowing the benefits of debt when leveraged appropriately,” she said in an email. “These stigmas are unfair, because debt can be leveraged in ways to grow wealth.”

As an example, Brown cites real estate investments, which let you earn income that can be used to pay down the mortgage while also building wealth.

One of National Debt Relief’s missions is to change negative stereotypes about debt. Since its founding in 2009, National Debt Relief has helped more than 550,000 people resolve more than $11.5 billion in debt.

Myth No. 2: Every Debt Lowers Your Credit Score

Debt doesn’t necessarily lower your credit score. In fact, taking on debt and managing it successfully can actually boost your credit score.

For one thing, you need to establish a credit history to get a score to begin with. From there, your score can improve based on things like the length of your credit history, your payment history and your credit utilization ratio.

To Read More Go To The Original Article HERE:

https://www.gobankingrates.com/net-worth/debt/5-myths-about-debt-that-nobody-should-believe-in-2024/?utm_term=morefrom_link_4&utm_campaign=1274486&utm_source=yahoo.com&utm_content=12&utm_medium=rss       

Barbara Corcoran: Spend Money the Right Way and It Will Come Back to You

Barbara Corcoran: Spend Money the Right Way and It Will Come Back to You

Adam Palasciano  Wed, June 12, 2024

Many people may be under the impression that diligently saving money can make them rich. However, two self-made millionaires have a different opinion.

Barbara Corcoran, a real estate entrepreneur and star of ABC’s “Shark Tank,” is a firm believer that saving money doesn’t result in wealth.

“I’m just not a believer in saving money,” Corcoran explained to CNBC Make It. “I’ve never saved a dime my whole life.”

Additionally, finance guru and investor Grant Cardone recently tweeted his thoughts about saving money: “That full-time job won’t bring you wealth. Saving, saving, saving won’t bring you wealth… The ONLY thing that will bring you true wealth is investing.”

Wealthy people know the best money secrets. Learn how to copy them.

Focus on Building Cash Flow

Rather than throwing your money in a savings account, both Corcoran and Cardone agree that it’s financially smarter to invest in assets that “keep your money moving” and “create cash flow.”

It’s true that investing is one of the best ways to build true wealth and create cash flow. For example, investing in a start-up or real estate can lead to big returns and the potential for consistent income. Money indeed makes money, and investing carefully can get you there.

To Read More:  https://www.yahoo.com/finance/news/barbara-corcoran-spend-money-way-113036533.html

100 Top Money Tips From Tony Robbins That Are Always Relevant

100 Top Money Tips From Tony Robbins That Are Always Relevant

June 11, 2024   by Virginia Anderson Edited by Chris Cluff

Entrepreneur and investor Tony Robbins is known for dishing out straightforward and actionable financial advice. Here are some of his most notable tips to reach your saving, investing and budgeting goals.

Focus on Your Money Goals

Robbins strongly believes in using the law of attraction to get what you want in all areas of life — including your finances. He says you can attract success over time by manifesting a positive attitude and mastering your money goals.

Surround Yourself With Successful People

Do you know a few people who have achieved financial success? Maybe they own their own business or plan to retire early. Talk to them and find out how they realized their goals. They can inspire you to reach your own.

Delay Rewards Until You Meet Your Goals

To truly realize financial success, you may need to make some sacrifices with the hope of better rewards in the future. Exercising willpower to forgo things you don’t need today is a skill you can develop. Use it to master your financial self-control.

Learn How To Read Basic Financial Statements

You don’t have to be an accountant or financial adviser to accumulate wealth. However, learning the basics of financial statements can help you if you decide to invest in stocks. You can use financial statements to evaluate a company’s performance and determine whether it meets your investment criteria.

Understand Common Financial Terminology

Many terms used in personal finance and investing may be unfamiliar to you. Examples include high-frequency trading, dollar-cost averaging and exchange-traded funds. Learn what they mean and how they apply to your investment strategy. Knowing the terms will allow you to understand investment news and decipher earnings reports.

6. Determine Your Risk Tolerance

Investment strategies typically fall into three categories: aggressive, moderate and conservative risk tolerance. Aggressive strategies are highly volatile, with lots of ups and downs. Conservative strategies aim for consistent, average returns. Your risk tolerance should align with your financial goals.

Set Financial Goals

Anyone who wants to achieve financial freedom needs a plan. Your financial goals form the basis of your plan. Determine what you want to achieve over the short and long term. Example goals include establishing a budget, paying off debt and creating an emergency fund.

Try SMART Goals

The SMART acronym stands for specific, measurable, achievable, relevant and time-bound. Robbins advises using SMART to set smaller milestones for your long-term goals. For instance, if you want to set up an emergency fund, you could set SMART monthly milestones to meet along the way.

Be Obsessed With Not Losing Money

Robbins notes that wealthy people hate losing money because it takes significant effort to rebuild wealth once it’s lost. Apply this rule to all your financial decisions, including your monthly budget, investments and savings goals.

Become a Learning Machine

In your quest to achieve financial success, focus on personal growth. Always be learning. Read personal finance books, listen to podcasts and read investment-related articles. As you feed your mind, you’ll open yourself up to new opportunities you didn’t know existed.

Don’t Underestimate the Power of Giving Back

To Read More:  https://www.gobankingrates.com/money/financial-planning/top-money-tips-from-tony-robbins/

Robert Kiyosaki Believes ‘Crash Has Begun’ — His 6 Ways To Use It to Your Advantage

Robert Kiyosaki Believes ‘Crash Has Begun’ — His 6 Ways To Use It to Your Advantage

Chris Ozarowski Tue, June 11, 2024  GoBankingRates

Robert Kiyosaki, financial influencer best known for his “Rich Dad Poor Dad” franchise, recently posted on X that he believes a significant economic downturn, or “crash,” has started. Such periods, he said, are challenging but present unique opportunities to acquire wealth.

Kiyosaki outlined six strategies to leverage during a crash to increase your chances of getting rich. Here’s what he said and which parts of his advice you can integrate into your own financial strategy.

Wealthy people know the best money secrets. Learn how to copy them.

What’s a Financial Crash?

A financial crash is a rapid and significant decline in asset values across various markets, triggered by economic disturbances, policy shifts or unforeseen global events. Such downturns can lead to widespread economic hardship, affecting employment, savings and investment returns.

In recent years, the global economy has witnessed several significant market crashes. The 2008 financial crisis was triggered by the collapse of the housing market and high-risk mortgage-backed securities, leading to a loss of more than $2 trillion in the global economy. More recently, the 2020 downturn induced by the COVID-19 pandemic saw rapid declines in stock prices and a severe economic slowdown.

Kiyosaki’s 6 Rules for Navigating a Crash

1. Don’t Catch Falling Knives

Kiyosaki advised against impulsive buying during market dips. As stock prices tumble, it’s tempting to try buying a good company’s stock at a discount. Kiyosaki cautioned, “don’t catch falling knives,” which means to wait until asset prices stabilize and avoid purchases during a steep decline to prevent losses.

2. Study

Education is crucial in investment. Kiyosaki stressed the importance of learning from various sources, including YouTube, where he said advice can either be good or questionable. He suggested investors spend time finding credible sources and understanding different perspectives.

3. Networking

Kiyosaki encouraged building relationships with persons with similar financial aspirations and distancing oneself from those who do not take accountability for their financial decisions.

While networking with other people who share your interests may generally be beneficial, it can also lead to echo chambers where new ideas and necessary critiques of financial strategies are not discussed. This should be avoided.

To Read More:  https://www.yahoo.com/finance/news/robert-kiyosaki-believes-crash-begun-120134289.html

11 Overlooked Risks That Could Ruin Your Financial Stability

11 Overlooked Risks That Could Ruin Your Financial Stability

By Claire Conway  Jun-12-2024

Financial pitfalls can throw a monkey wrench into even the most responsible person, which is why everyone should be aware of hidden threats that can derail your financial security. People reveal what unexpected life changes can turn your life upside down. Have you experienced any of these hidden financial threats?

1. All Homeowner-related Expenses

Where do I begin? Owning a home comes with endless potential repairs, from heat and water pumps to air conditioning, flooring, and roof repairs (and everything in between). Although owning a home is a significant life milestone, even the most frugal homeowner confesses that the expenses quickly pile up and easily turn a secure financial situation upside-down.

2. Missing a Credit Card Payment

In school, you learn about world history, calculus, and home economics, but you aren’t taught one of the most important life lessons: Paying your credit card payments on time. One of the most severe financial penalties you can face is failing to make the minimum monthly payment on your debt, causing interest rates to spike and your credit score to plummet. For many Americans, missing a credit card payment is catastrophic.

3. Car Loans

If you’re ever applying for an auto loan, always focus on the out-the-door cost of the vehicle you want to buy. The dealership will always push you toward lowering your monthly payment, even if there are better ways to navigate the loan. The longer your loan is, the more you’ll pay in the long run for your vehicle. Don’t fall for the “lower monthly payment” trick because it will cost you far more money in the end.

4. Losing Your Job

Nobody plans on ever losing their job, but sometimes, the unexpected happens. Getting laid off greatly affects your income, but nobody ever plans for it. After all, we misguidedly believe it will never happen to us. But trust me, your life can change in the blink of an eye when your “steady income” is suddenly ripped away! Obviously, an emergency fund is handy in times of unemployment, but that’s another aspect of financial wellness that many people underestimate.

5. Your Spouse’s Pension Ending

Unfortunately for married people, when one person passes away, their financial benefits cease to exist as well. One woman specializing in finding work for older Americans knows how hard it can be. “I’ve seen firsthand too often when the husband dies, the pension stopped,” one woman attests. “It sucked helping older women find jobs, especially when they had no experience in any job. We had to provide training in soft skills, too, like showing up at an exact time.”

To Read More:  https://investedwallet.com/11-overlooked-risks-that-could-ruin-your-financial-stability/