This Trade War Might Be The Straw That Breaks The US Dollar’s Back.

This Trade War Might Be The Straw That Breaks The US Dollar’s Back.

Notes From the Field By James Hickman (Simon Black)  February 3, 2025

It was early spring in the year 1171 AD when Byzantine Emperor Manuel I Komnenos decided to go to war against his much smaller ally-- Venice. And the historical record shows that it was a really bad idea.

The Byzantine Empire was still a vast and powerful state by the late 12th century. But it was becoming obvious to anyone paying attention that they were in serious decline.

The Byzantine treasury was almost always empty. Imperial debt was piling up left and right. Byzantine borders were constantly being invaded by Muslim hordes. And the imperial coin-- the gold solidus-- was beginning to fall out of favor as the dominant currency for international trade.

Perhaps most importantly, there were a great deal of inexperienced or incompetent Emperors who stood by and did nothing while adversaries exploited imperial weakness.

One bright spot in Byzantine foreign relations was with the Republic of Venice; and over time the two cultivated a strong friendship, and enjoyed significant trade and military cooperation. When the Byzantine Empire went to war, for example, Venice would often provide naval and maritime logistics support.

Trade was so strong between the two, in fact, that thousands of Venetian merchants moved permanently to Constantinople.

But it all came to an end in March of 1171. The Emperor very suddenly changed his tune on Venice and started viewing them as rivals who were taking advantage.

To be fair, Venice was definitely a rising power at the time. But they were a pipsqueak compared to the size and strength of the Byzantine Empire… and the Venetians in no way wanted a conflict. They got one anyway.

That spring, Emperor Manuel imprisoned as many as 10,000 Venetians in Constantinople. He also confiscated their assets, properties, and businesses.

The ruler back in Venice (coincidentally known as “the Doge”) tried to negotiate a peaceful, diplomatic solution. But in the end, a war between the two broke out. And while direct military conflict was quite limited, the economic and trade warfare seriously wounded both powers.

In retrospect the long-term consequences were clear: the Byzantine Empire lost a supportive ally, essentially pushing Venice into the arms of Western European powers. The Empire also never quite recovered the lost trade and economic opportunity costs from the war.

That’s because all war-- whether a shooting war or trade war-- is expensive. There are very, very few instances in history in which a nation benefited from prolonged war. In fact, the last guy to consistently wage ‘profitable’ wars was Napoleon… and he understood the key was to end it as quickly as possible.

Maybe that’s the strategy in this new trade war today. Maybe the whole idea is to show people that you’re not afraid to make good on your threats… to show that you’re not bluffing… and that everyone should run to the negotiating table immediately.

Perhaps. But it’s been well-documented that a long-term trade war, i.e. tariffs on goods imported from Canada and Mexico, will be incredibly expensive. Canada sends energy to the US. Mexico sends food. If there are two things that US citizens don’t need to become more expensive, it’s food and fuel.

The rough calculations show that American households will pay a few thousand dollars per year more. Most people can’t afford that, nor are they particularly inclined to try.

The optimists say that America doesn’t need to import any of that stuff, and that “we can produce everything we need at home”.

OK, that’s sort of true. The US has the capability to produce almost everything if it really had to. But to borrow from the great philosopher Chris Rock, “You could drive with your feet if you really had to. But that don’t make it a good XXXX idea.”

Every country, every economy in the world has a finite amount of resources-- workers, raw materials, capital, land, etc. And in a free market, those finite resources are put to their best and highest use… because that’s what generates the most profit, i.e. the most wealth and prosperity.

No one puts resources to work making socks and underwear if they could put those same resources to work developing disruptive technology. And the US economy has that option-- producing goods and services of extremely high value (including technology).

This has been a key driver of wealth in America.

But suddenly having to divert limited resources to something less valuable consequently means… less wealth and prosperity. Bottom line, trying to produce everything at home requires misallocating economic resources into less profitable, less prosperous industries.

And the opportunity cost of doing that cannot be overstated.

There’s another, even bigger problem, though.

The US dollar is already in trouble. Plenty of countries have already started to line up against the dollar; and as we’ve discussed in the past, foreign central banks have started ditching the dollar to buy gold instead.

This is a big problem for the US government; the Treasury Department desperately needs foreigners to keep funding America’s massive budget deficits. And even if the budget deficits miraculously disappear, America still needs foreign nations to hold on to the US government bonds they already own.

Threatening (and then actually following through) with tariffs will only make foreign countries less inclined to own US dollars.

Secretary of State Marco Rubio even admitted this weekend that within five years, “there will be so many countries transacting in currencies other than the dollar that we won’t have the ability” to impose sanctions or tariffs.

Less demand from foreign governments and central banks to own US dollars ultimately means higher inflation and higher interest rates across the board-- including higher mortgage rates. So more expensive food. More expensive fuel. And more expensive housing.

Again, this trade war might be a ploy designed to force everyone to the negotiating table… and perhaps they expect it will be over in a matter of days or weeks. But that’s a risky assumption.

A century ago, the ‘experts’ back in 1914 assumed that World War I would be over in a few months, and that the troops would “be home before the leaves fall from the trees” (according to what Kaiser Wilhelm of Germany reportedly told his soldiers departing for the front line).

This, too, may be long and costly. But even if it's short, declaring war on your own ally could easily create lasting consequences for America by accelerating backlash against the dollar.

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

https://www.schiffsovereign.com/trends/this-trade-war-might-be-the-straw-that-breaks-the-us-dollars-back-152034/

This Will Likely Be A Really Big Deal For Gold

This Will Likely Be A Really Big Deal For Gold

Notes From the field by James Hickman (Simon Black)  February 4, 2025

Well that was fast.

The smoke had barely cleared on the opening salvo of the Great North American trade war, when all sides called a truce to talk out their differences.

Just as we wrote yesterday, this is exactly what I was hoping would happen. In fact, in a Zoom call that Peter and I had Friday with our Total Access members, we predicted this outcome: that the trade wars were just an elaborate show to demonstrate to the world that America is willing to make good on its threats, and force everybody to the negotiation table.

There may be some short term benefit that comes from this. But as we said yesterday, there will likely be some long term consequences and here’s why:

According to Federal Reserve data, there will be roughly $28 trillion worth of US government bonds maturing over the next four years, i.e. now through the end of 2028.

That’s more than 75% of the government’s $36+ trillion national debt.

This is an absolutely staggering figure, averaging $7 trillion per year for the next four years.

And remember, we’re just talking about the existing debt that is set to mature. It doesn’t even include new debt that has to be issued over the next four years, which could easily be another $7-10 trillion.

This is an enormous problem for the Treasury Department, because they clearly don’t have $28 trillion to repay those bondholders.

Now, usually whenever a government bond matures, the investor might simply roll the proceeds into a new government bond. In other words, the old bond matures, and the investor puts the entire principal and interest into a new bond at whatever the higher interest rate is today.

This alone is going to cost the government a lot of money, because most of the bonds that are maturing over the next four years were originally issued 5, 10, or even 20 years ago, when interest rates were much, much lower.

So let’s do the math: if the government issued $28 trillion in the past at an average interest rate of 3%, but now they’ll have to refinance all that debt at a new rate of 5%, then effectively they’ll be paying an extra 2% per year.

That’s almost $600 billion in additional interest EACH YEAR on top of the $1.1 trillion interest bill that they’re currently paying. But even that might be wishful thinking.

And the reason why is, if you look at America’s public debt, the investors who buy those bonds are split pretty evenly between US entities (the Federal Reserve, American companies, US individual investors) and foreign investors (foreign government, central banks, multinationals).

This is critical to understand: the Treasury Department relies very heavily on foreigners to buy US government bonds and help fund the national debt.

At the moment, most countries around the world have to buy US government bonds simply because the US dollar is still the world’s dominant reserve currency. So they are essentially forced to hold US dollar assets, and Treasury securities are still the most liquid US dollar assets in the world.

Yet for the past several years there has been a significant movement underway by a number of countries to engage in trade and commerce without using the dollar. And this movement is growing.

I mentioned in my letter to you yesterday that the brand new Secretary of State Marco Rubio acknowledged this over the weekend, suggesting that the dollar’s dominance could be seriously diminished within five years.

Facing the constant threat of sanctions and tariffs will only motivate Brazil, Russia, China, India, and even many countries in Europe, to accelerate their diversification away from the dollar, and away from the United States.

The natural beneficiary of that trend will be gold.

We’ve written about this extensively. Gold rocketed to an all time high last year because central banks, and foreign governments, were reducing their dollar holdings.

And think about it. If you’re a foreign central bank and you have $100 billion of US government bonds that are about to mature, what are you going to do?

Are you going to reinvest that entire $100 billion back into a country that might already be threatening you with economic penalties?

Or do you quietly let the treasuries mature, take the money, and find someplace else to invest that $100 billion?

A lot of foreign governments and central banks are going to be giving serious consideration to option two.

But they are going to have to invest that money in an asset that, like US dollars, is widely accepted, and has universal value and marketability around the world.

Gold is one of those assets. And that’s why central banks have been buying so much of it for the past couple of years.

I think there’s an obvious case to be made, given the prospects of tariffs and further trade wars, or even just the threats thereof, they are going to keep buying gold and send the price even higher.

So if you’re interested in hedging against future risks to the US dollar, gold makes a lot of sense.

But on a final note, I’ll point out as I have in the past, that foreign governments and central banks buy gold. They do not buy shares in gold companies.

And right now there is a bizarre financial paradox in that gold is at an all time high, but thriving, profitable businesses which produce gold are trading at absurd discounts.

And we’ll talk about some examples over the next few days.

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

https://www.schiffsovereign.com/trends/this-will-likely-be-a-really-big-deal-for-gold-152041/

6 Tips To Save Retirees From Financial Disaster

‘Automatic Millionaire’ David Bach: 6 Tips To Save Retirees From Financial Disaster

Ellie Diamond  Sun, February 2, 2025   GOBankingRates

Money expert David Bach, author of “The Automatic Millionaire,” has dedicated his career to helping people achieve financial freedom. His philosophy centers on making smarter money decisions that keep your assets safe.

1. Save More as You Get Older

When CNBC asked Bach in 2018 how much money people should have in retirement savings, he pointed readers to Fidelity Investments’ age-based roadmap. This guideline suggests that a 30-year-old should have one year of their starting salary in savings, then twice their starting salary by age 35.

If you increase that goal by a factor of one every year, you’d have eight times your salary by age 60. Your final goal, Fidelity states, is to have 10 times your salary in the bank by 67.

Bach called this a general guideline, but warned that your target shouldn’t be lower.

2. It’s Never Too Late

As a money expert, Bach has spoken to people whose savings are far below goals like Fidelity’s. Whatever your circumstances, he said, “It’s never too late to start investing, and the best time to start is now.”

His first recommendation is to increase your retirement plan contribution and participate in a 401(k) match with your employer if one is available. The goal is to gradually save 10% to 15% of your income, or more if you need to and are able.

3. Spend Only on What You Value

In his book “The Latte Factor,” Bach wrote about the power of intentional spending. He teaches people that by paying attention to what they spend their money on, they can waste less and save more.

It’s not about giving up the things that bring you joy, he said. It’s about knowing where your money goes and avoiding spending on things that don’t match your values.

TO READ MORE:  https://finance.yahoo.com/news/automatic-millionaire-david-bach-6-140037796.html

7 Mental Money Traps That Keep You Poor

7 Mental Money Traps That Keep You Poor

Crystal Mayer   GoBankingRates

A recent study shows that over 60% of Americans are living paycheck to paycheck. If you are like one of the millions of people struggling to find financial stability, you might be stuck in the wrong mindset. Avoiding certain mental money traps can help you adjust your spending and start saving for your future.

Creating a budget and sticking to it can help you achieve your financial goals, but you will also need to rethink how you spend money. Prioritizing your spending can help ensure that you have money left over each month to invest. If you are tired of seeing a miniscule balance in your checking account, reconsider these 7 mental money traps that keep you poor.

You Need To Spend Money To Make Money

You have likely heard the old adage, “you need to spend money to make money.” While this may be true for startup businesses, it isn’t a good mindset for most people.

Many people feel that they need to live a specific lifestyle, spending well more than they make to give the perception that they are wealthier than they are. Overspending will only leave you frustrated and won’t help you make money.

Almost all money experts agree that the key to wealth is investing. If you want to stop living paycheck to paycheck, take a look at your non-essential spending and start investing. Even small investments can pay off significantly over time.

Retirement Is Far Away

Many young people fall into the trap of thinking that retirement is far away so they don’t need to worry about it. Unfortunately, waiting to start saving for retirement can cost you big. Fidelity Investments recommends that you have at least 1x your salary saved by the time you are 30 and 3x your salary by the time you are 40.

The longer you wait, the less likely you will have the money you need when you retire. The good news is that even if you haven’t started saving, you can start now. The best way to go about it is by meeting with a financial advisor. Make sure you are also taking full advantage of your company’s 401(k) matching if they offer it.

You’ll Be Happy If You Buy Something

https://finance.yahoo.com/news/7-mental-money-traps-keep-120044792.html

7 Experts Share Their Best Money Advice for Kids

7 Experts Share Their Best Money Advice for Kids

Financial Pilgrimage

There are a million things to worry about when raising children. Often, teaching our kids about money doesn’t rise to the top of the list. If your kids are anything like mine, they care about video games, dolls, sports, and many other things.

There is a push and pull when raising money-smart kids. As parents, we want to provide our kids with the best life. Sometimes that means giving them the toy we always wanted as a kid but could never afford. It feels terrific when your kid is happy.

The hard part is thinking through the downstream impacts of giving them everything they want. Handing everything to them will make it challenging to appreciate hard work. How will they learn to appreciate how fortunate we are to live in the United States of America, one of the wealthiest countries in the world? How do we teach them there is more to life than material things?

I’m not sure I have found the correct answers to these questions. Or at least I am still trying to figure them out. I turned to money experts on Twitter to share their best advice for kids. The responses were excellent, and I took a few notes as a parent. So read on for money advice for kids from seven personal finance experts.

7 Experts Share Their Best Money Advice for Kids

Lesson 1: Make Their Money Work For Them

This article from the Interesting Dollar shared a great idea to use birthday money to demonstrate the value of interest. By gifting $300 a year for birthdays (between parents, grandparents, and aunts/uncles), you could demonstrate the growth provided by interest over a relatively short period. This simple exercise can help teenagers delay gratification and better understand how interest works. Below is an excerpt from the article.

“I did the math and thought that if they received $300 a year from age 10 to 17 and 8% interest, they would receive $2,592 on their 18th birthday. Then, each year they would receive the interest check on the balance in the account.”

Lesson 2: Embrace Minimalism

So much of what makes a person successful with their finances as an adult is being intentional. A high income helps, but many people make a lot of money and still live paycheck to paycheck. I love this article from One Frugal Girl about her conversations with her children. It’s not necessarily about depriving your kids of toys but getting them to be thoughtful about why they want something.

“I want them to learn how to use their imaginations to prevent boredom rather than depending on a room full of toys.“

Lesson 3: Use Money to Buy Your Time

TO READ MORE: https://financialpilgrimage.com/money-advice-for-kids/

6 Life-Winning-Lessons From a “Who Wants to Be A Millionaire” Contestant

Who Wouldn’t Want to Be a Millionaire: 6 Life-Winning-Lessons From a “Who Wants to Be A Millionaire” Contestant

By Financial Imaginer

What would you do if you received a $ 1 million jackpot? How does it actually feel to receive a windfall? What to do with it and how could it impact your life in the short, medium and long run?

Let’s first think about what you could possibly do with a large financial windfall?

– splurge (Sir? The Lamborghini in same gold as the Maybach?)

– take a sabbatical and travel to exotic locations, sipping martinis all day long

– travel to Vegas (all or nothing)

– re-invest in lottery tickets

– buy a house and/or pay-off your mortgage

– invest all into Vanguard ETFs and draw an annual $40,000 forever (Trinity study, 4% withdrawal rate)

– keep calm and carry on

Here’s what a Financial Imagineer would do with a $ 1 million windfall:

Keep calm and carry on!

Keep calm and carry on!

You find this hard to believe?

Looking through all the above options, this clearly appears to be the most boring choice. But hey, I’ve got a rather personal story for you guys today. Let me explain.

Once upon a time, I won a windfall myself.

I wanted to be a Millionaire.

We write the year 2001, my most crazy side-hustling days: During daytime, I was usually studying business administration and economics. Frequently, after sundown, you’d find me baking up to 200 pizzas each night at the first pizza home delivery franchise in my hometown. Saturdays, you’d find me advising clients at a bank counter and Sundays I’d be running the local polling station in our village.

Some wondered if I’d ever catch some sleep.

One evening, I was sitting on our couch watching the Swiss edition of “Who wants to be a Millionaire” on TV3. Somehow, none of the contestants ever seemed to make it past the first 10 questions. It got boring and frustrating. It quickly became painful for me to keep watching. I knew and appreciated the show from abroad and generally liked it because you usually learnt something while watching – infotainment. The entertainment value of the local version was rock-bottom. This tickled a nerve.

Instead of applying the ordinary way, I sent a feedback letter asking them to invite more suitable candidates in order to improve the infotainment value of their show. Little did I know that my written rant would be read and acted upon. Before I knew it, we – my then girlfriend and myself – got invited to participate as contestants at the TV show “Who Wants to Be a Millionaire”.

Turn sound on, click “play” and listen as you read on!   https://www.youtube.com/watch?v=OYVAxLJE1ww

TO READ MORE: https://www.financial-imagineer.com/who-wouldnt-want-to-be-a-millionaire-5-life-winning-lessons-from-a-who-wants-to-be-a-millionaire-contestant-for-anyone/

The ‘Hermit’ Savings Rules & 8 Frugal Tips for Today’s Economy

The ‘Hermit’ Savings Rules & 8 Frugal Tips for Today’s Economy

Cindy Lamothe   Fri, January 31, 2025   GOBankingRates

When your personal finances combine with your personal space, your spending habits and savings account might be working a bit more harmoniously too. Consumer practices across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”

 “For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”

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Whether it’s how you approach your visit to the grocery store or price-matching your favorite online retailers, the how, when and where you swipe your credit card has simply changed. If you embrace the hermit lifestyle and prefer your saving and spending to be done in a vacuum, below are some expert frugal living tips to thrive in today’s economy.

Embrace a DIY Mentality

“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost-effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”

Syed Lateef, business coach and CEO of SyedBNB, agrees. “We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”

He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings. Simply put, it’s better to invest your time than a third of your paycheck every time you need some general maintenance or repairs done.

“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”

Save Money by Cooking at Home

“The driving force behind the hermit economy isn’t entirely clear,” Lateef said. He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values. Instead of dinner and a movie out, you can now meal-plan and binge on your favorite streaming service.

“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”

As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.

He added, “Hermit consumers save money but also encourage healthier eating habits.”

TO READ MORE:    https://www.yahoo.com/finance/news/hermit-savings-rules-8-frugal-140043078.html

5 Major Money Mistakes To Avoid When You’re Nearing Retirement

5 Major Money Mistakes To Avoid When You’re Nearing Retirement

By Jennifer Taylor GOBankingRates

You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.

As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decisions.

When faced with a large amount of cash, it can be tempting to share it with loved ones — i.e., your children — or indulge yourself with luxury items. However, this money needs to last your entire retirement, which could span decades. Here’s a look at common financial blunders you don’t want to make as you get older if you want to avoid a major financial setback.

Building Wealth

Collecting Social Security Benefits Too Soon

Many people make the mistake of taking Social Security income as soon as they can because it’s available. Others start early because they’re afraid the system will run out of money. Neither approach is the best way to maximize benefits.

“You receive more each month if you wait until your full retirement age, and you can even get increases after that — amounting to roughly 8% per year until you’re 70,” said Justin Pritchard, CFP, founder of Approch Financial, Inc. in Montrose, Colorado.

Having patience can literally pay off.

“Instead of claiming as soon as possible, run some numbers to determine how much you’ll earn if you wait,” he said. “Remember that a surviving spouse who takes over your benefit will be affected by your decision, so choose carefully.”

Cashing Out a Retirement Account

When you retire, you might have the option to keep your retirement savings with your employer or move the money into a retirement account — i.e., an IRA — in your name.

“You don’t need to cash out the entire account and put that money in the bank,” Prichard said. “If you do so, 100% of your nest egg may become taxable income, resulting in high tax rates and possibly even underpayment penalties.”

Avoid decreasing the value of your retirement account by making informed decisions.

“Instead of cashing out,

TO READ MORE: https://www.gobankingrates.com/money/financial-planning/major-money-mistakes-avoid-turn-60/

Millionaires Live by These Rules To Build Wealth

Millionaires Live by These Rules To Build Wealth — Experts Explain If They’ll Work for You

Angela Mae  Mon, January 27, 2025   GOBankingRates

There’s an estimated 24.5 million millionaires in the United States. That’s a relatively small percentage of the country’s population, but it’s also not zero — meaning it’s very possible for more people to achieve “millionaire” status. It’s all about being strategic and intentional with your money and financial decisions.

If you’ve decided to truly pursue the goal of becoming a millionaire, you might be wondering how to get started. What types of rules do millionaires — especially self-made ones — follow to build (and maintain) their wealth?

Here’s the answer, according to a Forbes article, and how well the average person can follow those rules to do the same, as per the experts.

Pay Yourself First

Building wealth can take a while, but you can get yourself on the right path by prioritizing saving money before you prioritize spending it. In other words, pay yourself first.

According to the Forbes article, you should be saving 20% to 30% of your total income. This means you should save $20,000 to $30,000 for every $100,000 you make. You can do this based on either net or gross income, but gross will result in greater savings potential.

“By prioritizing savings and investments before any discretionary spending, individuals ensure that they are consistently building wealth,” said Shirley Mueller, founder of VA Loans Texas. “The earlier you begin this habit, the more time your money has to grow, particularly through the power of compound interest.”

Live Below Your Means

Millionaires stay millionaires not because they flaunt what they have or spend their money with abandon, but because they live below their means. But they become millionaires because they also think big.

This means spending less than you earn, which could entail eliminating those unnecessary expenses or reevaluating your budget. And it means dreaming of — and planning for — a bigger future.

“Resist the urge to splurge! Once of the most common financial mistakes people make is to drastically increase their expenses as soon as their income increases,” said Melissa Murphy Pavone, founder at Mindful Financial Partners.

“Avoid the urge to spend more as you make more. Instead save more. Invest the difference. As you get a raise, give yourself a raise. Increase your 401(k) contribution. Add to your emergency fund. Your future self will thank you.”

Be Strategic With Debt

According to Experian, the average U.S. consumer has $104,215 in total debt — including mortgages and other loans. But while some debt is “good” — or rather, useful — much should be avoided.

TO READ MORE:  https://finance.yahoo.com/news/millionaires-live-rules-build-wealth-210100915.html

Millionaires Live by These Rules To Build Wealth

Millionaires Live by These Rules To Build Wealth — Experts Explain If They’ll Work for You

Angela Mae   Mon, January 27, 2025  GOBankingRates

There’s an estimated 24.5 million millionaires in the United States. That’s a relatively small percentage of the country’s population, but it’s also not zero — meaning it’s very possible for more people to achieve “millionaire” status. It’s all about being strategic and intentional with your money and financial decisions.

If you’ve decided to truly pursue the goal of becoming a millionaire, you might be wondering how to get started. What types of rules do millionaires — especially self-made ones — follow to build (and maintain) their wealth?

Here’s the answer, according to a Forbes article, and how well the average person can follow those rules to do the same, as per the experts.

Pay Yourself First

Building wealth can take a while, but you can get yourself on the right path by prioritizing saving money before you prioritize spending it. In other words, pay yourself first.

According to the Forbes article, you should be saving 20% to 30% of your total income. This means you should save $20,000 to $30,000 for every $100,000 you make. You can do this based on either net or gross income, but gross will result in greater savings potential.

“By prioritizing savings and investments before any discretionary spending, individuals ensure that they are consistently building wealth,” said Shirley Mueller, founder of VA Loans Texas. “The earlier you begin this habit, the more time your money has to grow, particularly through the power of compound interest.”

Live Below Your Means

Millionaires stay millionaires not because they flaunt what they have or spend their money with abandon, but because they live below their means. But they become millionaires because they also think big.

This means spending less than you earn, which could entail eliminating those unnecessary expenses or reevaluating your budget. And it means dreaming of — and planning for — a bigger future.

“Resist the urge to splurge! Once of the most common financial mistakes people make is to drastically increase their expenses as soon as their income increases,” said Melissa Murphy Pavone, founder at Mindful Financial Partners.

“Avoid the urge to spend more as you make more. Instead save more. Invest the difference. As you get a raise, give yourself a raise. Increase your 401(k) contribution. Add to your emergency fund. Your future self will thank you.”

Be Strategic With Debt

TO READ MORE:   https://www.yahoo.com/finance/news/millionaires-live-rules-build-wealth-210100915.html

How To Avoid, Prevent 'Financial Infidelity' In Your Relationship

How To Avoid, Prevent 'Financial Infidelity' In Your Relationship

Brad Smith  Mon, January 27,  Yahoo Finance Video

Bankrate Senior Industry analyst Ted Rossman joins Wealth to discuss how couples can avoid financial infidelity in their relationships.

According to Rossman, secret spending is the most common form of financial infidelity, followed by hidden debt and concealed credit cards or bank accounts. He explains that people often hide financial matters because "they feel ashamed about the way they handle money" or they're seeking independence, noting "it's hard for people to mesh those money personalities."

Rossman advocates for the "yours, mine, ours" approach to money management. This strategy allows couples to be transparent about joint expenses while maintaining some financial independence. "Increasingly, people are craving some sort of financial separation, even within a relationship," he states, citing that 60% of couples maintain separate accounts.

Rossman emphasizes transparency as the key distinction: "It's financial infidelity when it's a secret." He stresses the importance of open communication, adding that couples should discuss "not just where it's going today but also where you want it to go in the future."

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Angel Smith

TO READ MORE AND VIEW VIDEO:

https://www.yahoo.com/finance/video/avoid-prevent-financial-infidelity-relationship-200500599.html

When Financial Infidelity Rears Its Ugly Head

When Financial Infidelity Rears Its Ugly Head

Maurie Backman  Mon, January 27, 2025  Moneywise

I found out my wife, 52, has more than $90K stashed in a secret savings account. What do I do now?

Money can be a point of contention in any marriage. And sometimes, the tension it creates can have big consequences.   Roughly two-thirds of U.S. divorces happen to couples in their 20s, 30s and 40s, according to the American Psychological Association. But the rate of divorce among adults 50 and older doubled between 1990 and 2010. And as of 2019, 36% of U.S. divorces were among adults 50 and up.

Now there are various factors that can lead to divorce, but money tends to be a big contributor. And if you're in your 50s and just found out that your wife has been secretly hiding money in a savings account throughout your 20-year marriage, you may be experiencing a range of emotions, from anger to sadness.

You may also be wondering how to cope with the news — especially if you're talking about a large sum of money like $90,000.

But divorce isn't necessarily the answer. There may be ways you can salvage your marriage and move forward in a more open and honest fashion with one another.

When financial infidelity rears its ugly head

Financial infidelity can take on a lot of forms. For some couples, it can mean one person racking up scores of debt and keeping it a secret. In others, it can mean having a hidden savings account that isn't shared with a partner.

A recent study shows that more than 40% of U.S. adults who are married or live with a partner have kept a financial secret from their significant other.

This is consistent with a late 2021 survey by the National Endowment for Financial Education (NEFE) which found that 43% of U.S. adults have engaged in financial deception.

The most common type of financial infidelity identified was hiding specific purchases, bank accounts, statements or cash (39%), followed by racking up debt in secret or lying about money that was earned (21%).

How to cope with financial infidelity

Financial infidelity can be a tough thing to get over. The NEFE says that among couples who experienced it, 32% wound up with less trust in the relationship. And for 16%, it ultimately caused them to separate their finances or get divorced.

TO READ MORE:  https://www.yahoo.com/finance/news/found-wife-52-more-90k-120500120.html

9 Important Financial Emergencies and How To Deal With Them

9 Important Financial Emergencies and How To Deal With Them

Personal Finance - Janice Friedman - May 23, 2019

DO YOU HAVE AN EMERGENCY FUND?

Have you ever encountered a financial emergency? What was it about, and how did you deal with it? Here, we will explore some of the most common financial emergencies and how to deal with them.

9 Important Financial Emergencies and How to Deal with Them

Have you ever been in a situation that requires you to use some finances which you had not anticipated?  In life, we’re sometimes faced with sudden inevitable occurrences.  Whether a sudden sickness, job loss, or sudden demise of a loved one, different financial emergences occurrences require us to dig our pockets deeper to fix them.

I’ve been using Personal Capital to plan for a financial emergency. I can use it to monitor my emergency fund and see how much cash is embedded in my net worth. Best part it’s completely free to use.

Financial freedom is all about having the flexibility to live completely free without any burden even if there is an emergency. Even if you’ve achieved financial freedom, building some sort of buffer in your financial plan for financial emergencies is important.

Before we explore more on the different types of financial emergencies and ways to deal with them, let’s look at what a financial emergency is first.

So, What are Financial Emergencies?

Financial emergencies are unexpected situations that require one to use some money that they didn’t intend. What happens when you find yourself in need of cash abruptly from an unanticipated event is what is referred to as a financial emergency.

If not resolved on time, it can pose immediate grave repercussions. These emergencies can occur at any time and in any circle of life, including at home, and work and more.

Since you can’t prevent some of these emergencies, the prudent thing to do would be to plan for them. That is, make sure that when the unexpected event occurs, you have some cash stashed somewhere to cushion you from the impact.

Although you cannot entirely plan for everything, having a fall back plan or some backup is always crucial.

List of Most Common Financial Emergencies

Here are 9 of the most severe financial emergencies you are likely to encounter.

Major Medical Emergencies

Some health or medical emergencies are beyond our control, and no matter how much we try to stay healthy and fit, they still occur. Although we all want to believe that we won’t get sick, planning for such things before they happen is the best thing to do.

TO READ MORE: https://millionairemob.com/financial-emergencies/