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/

Five Predictions For The Coming Decade Of Decline

Five Predictions For The Coming Decade Of Decline 

Notes From the Field By James Hickman (Simon Black)  June 11, 2024

There is a well-known modern proverb (often attributed to the novelist G. Michael Hopf) that goes, "Weak men create hard times, hard times create strong men, strong men create good times, good times create weak men."

The saying sums up the cyclical nature of the rise and fall of societies– and it’s a topic in which I have tremendous personal interest.

Having recently reached middle age, I can comfortably say with the benefit of hindsight that I was born and grew up during the American prime time– the time at which the wealthiest and most powerful country in the history of the world was at its peak.

The US is still an incredible country with so much prosperity and opportunity. But it would be completely naive and ignorant to claim that America is not in substantial decline.

Its standing in the world has waned, much of it just over the past few years. It’s hard for adversary nations to take you seriously when your President shakes hands with thin air and embassy employees in Kabul have to be evacuated by helicopter.

Financial challenges keep piling up– from the insolvency of Social Security to the $35 trillion national debt to the inflation problem that just won’t go away.

And social divisions, many of which have been bizarrely self-inflicted, seem to grow more tense by the day.

Fortunately, America’s decline began from a historically high peak. So even in its diminished state, again, it is still wealthy and powerful.

But the real concern isn’t where the country is today. It’s the trend, i.e. where the country will end up in ten years’ time if it stays on current course.

I’ve spent the past fifteen years studying similar cases throughout history– the US is far from alone as the only nation that has ever peaked and declined.

And one of the best works on the subject I’ve ever read is The Collapse of Complex Societies, by anthropologist Joseph Tainter.

“Collapse” is a strong word and conjures images of anarchy and death. But Tainter’s definition is more precise; “collapse” doesn’t mean that a society or nation ceases to exist, but that it experiences a steep decline in political, social, and economic stability.

This is what (I believe it’s clear) the US is going through right now, and the trend is accelerating.

Tainter’s book examines the common factors of how different societies throughout history declined– from ancient Mesopotamia to Western Rome. And his analysis shows that one of the key culprits in collapse is the inability of a government to recognize problems… or to solve them.

Many ancient Roman emperors were legendary for failing to recognize the horrible problems brought on by their policies and incompetence– inflation, invasion, etc.

This pretty much describes the US federal government in a nutshell.

Politicians can barely talk about problems in a civil and rational manner. And quite often they refuse to even acknowledge them.

We’ve seen this over and over again with issues such as inflation, the southern border, crime, and social security.

For example, the Social Security trustees publish a report each year stating plainly that the program is going to run out of money by 2033. But no one in Washington wants to talk about it. Joe Biden has even pledged to veto ANY efforts to reform the program.

Biden’s top officials also repeat the bold-faced lie that “the border is secure”, while actively encouraging illegal immigration. The federal government even sued Texas to stop the state from securing the border on its own.

The people in charge demonize and defund police, decriminalize theft, and elect progressive prosecutors who let violent criminals go free.

It’s the same dysfunction with federal spending. These people can’t even acknowledge that a $35 trillion national debt is catastrophic. Most politicians happily ignore it, and others come up with more outrageous spending to further the debt spiral.

They cannot acknowledge the problem, let alone discuss it rationally. Merely passing a budget now routinely devolves into a crisis.

Our view of where this trend leads is clear:

1. Inflation is coming.

There is little hope of responsible spending. The government’s own projections forecast an extra $20 trillion in new debt over the coming decade, and frankly that’s optimistic.

History shows that explosions in national debt are financed by the Federal Reserve creating new money– which ultimately causes inflation.

When the Fed created $5 trillion of new money during the pandemic, we got 9% inflation. How much inflation will $20+ trillion cause?

And the worse inflation becomes, the more urgency the rest of the world will have to replace the dollar as the global reserve currency… which will result in even MORE inflation in the US.

It’s a vicious cycle in which inflation will create more inflation. We project this is 5-7 years away.

2. Social Security is not going to be there for you.

Social Security is not a political problem; it’s an arithmetic problem. And the math just doesn’t add up.

Every year the US Secretary of Treasury signs the report saying plainly that, by 2033, Social Security’s trust funds will run out of money. Benefits will have to be permanently cut by 25% and then become worse over time.

3. Higher taxes are virtually guaranteed.

Politicians love claiming that people should pay their “fair share” but can never quite define how much that means.

And they have already moved the goalposts on who exactly owes society more— the “billionaires” became the top 1%, then quickly shot up to the top 5%, then 10% and soon it will be the top 25%.

Higher taxes won’t just be federal. State and local taxes— from sales tax to property tax— are very likely to cost more, while your governments provide much less.

4. Continued social chaos.

Every time it feels like the lack of civility and unity across Western Civilization can’t get any worse, something new erupts.

The latest is university students screaming “from the river to the sea” and “Just Stop Oil” while defacing artwork and public monuments. Rising tides of socialism and racial animosity never seem to ebb, and idiotic wokeness just won’t go away.

These social divisions will likely continue to grow.

5. Maybe most importantly, major geopolitical disruptions.

As the financial and social decline of the US becomes increasingly obvious to the rest of the world, adversaries are becoming more emboldened.

Nations like China, Russia, North Korea, and Iran are likely to grow more assertive, and there will be significant calls to replace the dollar as the global reserve currency.

Soft war incidents like spy balloons, manufactured pandemics, cyberattacks, etc. will persist— and if we’re very lucky, there won’t be a shooting war. I give it 50/50.

It’s exasperating. Anybody over the age of about 35 remembers a time when it wasn’t like this.

Yet now chaos is the norm. I’m not saying this to be dramatic– it’s important to be intellectually honest.

Part of being intellectually honest means acknowledging that, again, the US is still a great country with an incredibly powerful economy, boasting some of the most valuable businesses in the world.

And Americans still enjoy an extremely high standard of living— albeit one that has been disrupted in recent years by the combination of inflation, crime, and social chaos.

The most exasperating part is that these problems are fixable.

The US government could spend responsibly, encourage capitalism and innovation to grow the economy, and its debt problems would melt away. The dollar would remain valuable. US leadership might even earn back global trust.

But with the current people in charge, I wouldn’t hold my breath. And I also wouldn’t put all my hopes and dreams on the voters smartening up anytime soon.

Yet there are still plenty of solutions that independent-minded individuals can execute without relying on the government.

For example:

Problem: Future inflation will pose a major problem to one’s savings.

Solution: Invest in assets which do well during, or even benefit from, inflation— real assets such as energy, mining, and productive technology. Right now many of these are selling for record low prices, yet poised for substantial growth.

Problem: An overrun border and rising crime rates threaten cities and living standards.

Solution: Obtain a second residency in a foreign country where you really enjoy spending time, or even obtain a second passport. This way you and your family will always have a place to go if the need ever arises.

Problem: Social Security’s trust funds will run out of money within a decade.

Solution: Maximize contributions to retirement accounts— including a special type of 401k which could allow you to double contributions and direct where funds are invested. This lowers your taxable income, puts more money away for retirement, and allows the investments to grow tax-free.

There are solutions for people who, unlike the government, are willing to recognize the problems and actually do something about it.

https://www.schiffsovereign.com/trends/five-predictions-for-the-coming-decade-of-decline-151037/

If you’re feeling a bit overwhelmed and unsure how to get started, I want to take a moment and introduce you to our newest product called Schiff Sovereign Premium.

To Read More:   Click here to find out more.

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

4 Ways the Upper Class Handles Inflation That the Middle Class Could Learn From

4 Ways the Upper Class Handles Inflation That the Middle Class Could Learn From

Jake Safane   Mon, June 10, 2024

Inflation can be a double-edged sword. On one side, it can cut into your budget by raising the cost of essentials like housing, food, and transportation. But it can also be harnessed to grow your wealth, such as by increasing the interest you earn on your savings.

In some sense, being wealthy makes it easier to benefit from inflation. If you have $100 in savings, the difference between a 1% annual percentage yield (APY) on a savings account and a 5% APY is only $4. But if you have $100,000 saved, then the difference is $4,000.

Still, it’s better to earn that extra $4 on a $100 in savings than, say, lose money due to bank fees or pay interest when borrowing money if your balance turns negative. And over time, you can build up your savings and investments more to benefit from inflation further, much like many wealthy people do.

Specifically, consider the following four ways the upper class handles inflation that the middle class could learn from.

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

Staying Invested

While periods of inflation might stress you out and make you feel like you need to pull all of your money out of investments so that you have more cash on hand, that can be counterproductive. Instead, many wealthy people benefit from sticking with diversified investing.

“First off, they know how to stay invested in the right places, even when the economy is shaky. They spread their money across real estate, stocks, and commodities — assets that usually go up in value when prices rise,” said Jaqueline Schadeck, CEO at Golden Wealth Strategies and host of PBS show My Money Mentors.

Preparing for the Unexpected

Another way the upper class handles inflation is that they tend to be prepared for the unexpected.

“Inflation can sometimes be a surprise to many families, especially for bills that are paid yearly. For example, a lot of people have been caught off guard by how much insurance and property taxes have increased just in the last year,” said Patrick Marcinko, financial advisor at Bogart Wealth.

While it’s hard to know what those price increases will be, you can prepare by budgeting for emergencies and variability.

“Wealthy individuals ensure they have an emergency fund, or cash set aside, that can help them cover surprise expenses. This helps them avoid relying on debt when expenses turn out to be a lot more than they had expected,” said Marcinko.

Note, however, that where you keep your emergency fund matters.

 “If inflation is higher than the interest rate on savings, the purchasing power of your money is eroding,” added Marcinko.

Some high-yield savings accounts can keep up with or exceed inflation. And if you have excess savings beyond what’s needed for an emergency fund — experts often suggest around 3-6 months of living expenses — then that could prompt you to keep setting aside money for investments that can potentially keep pace with or outgain inflation.

To Read More:  https://www.yahoo.com/finance/news/4-ways-upper-class-handles-140033766.html

8 Upper Class Money Traps That Ruin Your Wealth

8 Upper Class Money Traps That Ruin Your Wealth

Cindy Lamothe  Mon, June 10, 2024  GoBankingRates

Having a higher income doesn’t make you immune to making poor financial decisions. Those in the upper class might have access to more resources, but they can also easily fall for money traps that may jeopardize their wealth.

“One bad money habit that I have noticed among wealthy individuals is overspending,” said Paige Robinson, real estate investor and owner of House Buyers. “With their high income, some people tend to develop a habit of living beyond their means and indulging in expensive purchases or lifestyle choices.”

She added that this can lead to mounting debt and a false sense of financial security, as these people may believe that their high income will always cover their expenses. Below are eight more financial missteps the wealthy should be wary of making.

Believing You Have Unlimited Funds

“The most common money mistake I see wealthy people make is the false sense of security they have in their current bank balance,” said Martin Gasparian, attorney and owner of the law firm Maison Law. “They seem to think the money will always be there, without real awareness that zero is indeed a number, and at some point without proper planning, it may just come up.”

He continued, “So perhaps more of an attitude than behavior, I advise my financial clients to keep a keen eye on their current financial condition, as well as how they intend to stay there.”

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

Impulsive Spending

Even if someone has a lot of money, it doesn’t give them a free pass to spend recklessly, warned Sherman Standberry, licensed CPA and managing partner at My CPA Coach.

 “Some wealthy people can get so used to having plenty of disposable income, that they develop a habit of buying things they don’t or will ever need,” he explained. “If they’re not careful enough, this habit can lead to some financial trouble in the long run.”

Not Vetting Who You Give Money

Another bad money habit that the wealthy succumb to, according to Gasparian, is the habit of handing out money to people who — while may seem in need – -really have no intention of paying them back.

“This includes investments that are not properly vetted or any large-scale financial purchases that lack forethought and true investment purpose.”

Neglecting To Pay Bills on Time

“I have also seen many well-to-do clients with dismal credit scores and a ledger full of late notices,” said Gasparian. “Those with capital may know how much money they have, but if their bills are delinquent or unattended to, this type of behavior leads to an unfavorable financial impression, and if one’s credit history is ever called into question, such debt may come back to haunt someone in a poor way.”

To Read More:  https://www.yahoo.com/finance/news/8-upper-class-money-traps-150052645.html

24 People Who Unexpectedly Received A Large Sum Of Money Are Revealing How It Changed Their Lives

24 People Who Unexpectedly Received A Large Sum Of Money Are Revealing How It Changed Their Lives, And Some Stories Are Complete Surprises

BuzzFeed   Sat, June 8, 2024

Reddit user u/willow-mist asked the community, "People who won/inherited/earned a large amount of money in a short amount of time, what was the biggest change?" Here are the changes people experienced when they came into large sums of money unexpectedly:

1."You know how you can list things 'highest price to lowest while online shopping or browsing real estate listings?' I thought that was hilarious and that nobody would ever use it. It turns out that it's useful when money is no object, and you prefer not to look at the lower-end options." —u/lessafan

2."Fixing things is no longer about the cheapest way to do it yourself, but about weighing a good DYI solution vs. just writing a check and being done with it. Say a tree needs to be cut down. Without money, you think about what you can use or borrow. Renting is a last resort, but viable.

With money, you may decide owning a chainsaw could be useful, so perhaps you buy one. Beyond that, I ask myself, 'Do I really want to do this thing myself, or should I just find someone to do it for $500?' As a specific answer, I now pay someone to cut my grass."  —u/Red__M_M

3."I stopped caring about keeping my job since I now have a safety net from stocks. I can now push back on unreasonable requests, and I'm a lot more confident about asking for raises because I know I can comfortably quit any time."  —u/Antereon

4."I started eating better. No more buying the cheapest version of everything. I also bought a very nice bed."   —u/handsthefram

5."I made a mistake and told my former closest friends. They are turned on me out of jealousy, I'm assuming. It sucks. So, I'm more humble with my money when building friendships." —u/theluckiestmind

6."I don't even have to think about taking my pets to the vet. I used to put it off, hoping they would get well by themselves if we just waited it out. Now it's, 'Hey buddy, you're acting a bit sick. Let's get you checked out.' Need medicine? No problem, and no splitting dosages either."  —u/TiogaJoe

7."I inherited $200k when my grandmother passed a few years ago. It was enough to get me out of the poverty cycle but not enough to buy a house or live off of for a substantial amount of time. I set aside most of it but gave myself the luxury of a decent chunk of spending money. You may think I bought a bunch of silly things with that money, and I did.

But I mostly used it to get good quality things that will make life easier and last a while. I got a chest freezer, a nice dresser and side tables, a decent fridge, and clothes that fit me and look good. I also had the privilege of helping my community so much. Being able to drop a couple hundred to buy a friend's hearing aids or get someone's not-cheap prescription is amazing. I've been fortunate; my community hasn't taken advantage of it. They're aware I will always help, but they use it as a last resort safety net."

"I have half of it left three years later. Without the constant stress of affording everything, I figured out what I wanted to do with my life, and now that money will support me as I study for the next few years."—u/ThrowMoneyAway666

8."Ironically, it made me want to save more. For the first time in my life, I had savings, and I wanted to grow it and start thinking about retirement."  —u/Legendary_Lamb2020

Stress Levels before and after — it's like night and day. Being poor is stressful. Very stressful. Having money means having options, which coincidentally means less worrying about making things work and more focus on figuring them out, leading to more success. You simultaneously have more options while ending up needing a plan B less. It's almost cruel. Money doesn't bring happiness, but it kills 90% of real-life day-to-day stress, paving the way for positive change."  —u/redditingatwork23

10."I took all the money and immediately paid off a large chunk of my mortgage. The only change is that I can pay off my house before I die."   —u/daver456

To Read More Go To Original Article Here:

https://www.yahoo.com/lifestyle/people-came-large-sum-money-121602648.html

I’m a Financial Advisor: Here Are the 6 Worst Secrets You Can Keep from Me

I’m a Financial Advisor: Here Are the 6 Worst Secrets You Can Keep from Me

Cara Danielle Brown   Sat, Jun 8, 2024,

Some may be surprised to learn that the relationship between a client and their financial advisor can be an intimate one — largely because the events occurring in a client’s personal and professional life can have a significant impact on his or her financial future. And that means all those events — no matter how bad or ugly — need to be disclosed. It may even help to think of your financial advisor like a monetary life coach.

For various reasons, ranging from pride to shame, clients often fail to reveal sensitive information to their advisors which can put their financial future in jeopardy. To find out more, GOBankingRates spoke with seasoned financial advisors to reveal the worst secrets you can keep.

Income or Assets from Illegal Activities

For CFP Stephen Kates, this one tops the list largely due to the fact that there is a risk such activities might taint the advisor, which can destroy their career. If a client manages to hide income or assets from unsavory activities and this comes to light, the blowback for the financial advisor could include civil fines, sanctions and reputational damage.

And it’s not as simple as the financial advisor claiming ignorance given the “Know Your Client Rule,” which lays out a process of background checks that financial institutions must adhere to in order to guard against financial crimes. If anything manages to creatively slip through the cracks, the punishment can be swift.

Hiding Assets or Investments

Kates explained that some clients take a piece-meal approach to money management, choosing not to disclose certain assets because they prefer to manage them on their own or have an entirely different financial institution manage them instead. However, Kates said, “One of the most important parts of building a portfolio is having a cohesive strategy. When you hide assets, you risk the advisor recommending investments that are not appropriate in light of the true breadth of your assets.”

Overstating Income

On the opposite end of hiding assets is overstating income, explained certified financial planner and founder of Retire to Abundance, Tyler Meyer, who once had a couple report their income as 30% higher than it actually was. Turned out, they were reporting their gross income instead of their net income.

“We had to have a very real conversation about why they weren’t hitting their savings goals,” said Meyer. “We were able to set more realistic goals, including their savings rate, but more importantly, a more realistic timeline to retire.” Overstating income can lead to inappropriate investment strategies and unrealistic goals.

Hidden Debts

In the absence of a complete financial picture, Meyer explained, advisors can’t adequately help clients in effectively managing their debt, avoiding excessive interest payments or prioritizing debt reduction.

To Read More:

https://finance.yahoo.com/news/m-financial-advisor-6-worst-140019772.html