Teaching People About Money Doesn’t Seem To Make Them Any Smarter About Money
.Teaching People About Money Doesn’t Seem To Make Them Any Smarter About Money
From Market Watch Oct 12, 2018 By Philip Fernbach & Abigail Sussman
Teaching people about money doesn’t seem to make them any smarter about money – here’s what might
Making Financial Decisions is hard, but three promising ideas are helping Americans Overcome Barriers
If the average American went in for a financial checkup, he or she might get rushed to the emergency room.
Forty-four percent of us can’t cover a $400 out-of-pocket expense, and 52% of American households have no retirement savings. We seem to be chronically poor at making financial decisions. We commit costly mistakes across all areas of personal finance including decisions about savings, investing, budgeting and borrowing.
Diagnosing the problem is easy: We make mistakes because financial decision making is hard, and we lack an understanding of the decisions we face. Finding a cure is much more difficult. To many, the obvious treatment is financial education, but recent research suggests that financial education is not effective.
Some promising new ideas such as “just-in-time” education and “nudges” to help us make better decisions are starting to emerge as alternative approaches.
Ineffective Programs
Governments around the world have invested huge resources in initiatives aimed at improving financial literacy, such as the Federal Deposit Insurance Corp.’s My Smart program, which helps low-income individuals develop financial skills.
Teaching People About Money Doesn’t Seem To Make Them Any Smarter About Money
From Market Watch Oct 12, 2018 By Philip Fernbach & Abigail Sussman
Teaching people about money doesn’t seem to make them any smarter about money – here’s what might
Making Financial Decisions is hard, but three promising ideas are helping Americans Overcome Barriers
If the average American went in for a financial checkup, he or she might get rushed to the emergency room.
Forty-four percent of us can’t cover a $400 out-of-pocket expense, and 52% of American households have no retirement savings. We seem to be chronically poor at making financial decisions. We commit costly mistakes across all areas of personal finance including decisions about savings, investing, budgeting and borrowing.
Diagnosing the problem is easy: We make mistakes because financial decision making is hard, and we lack an understanding of the decisions we face. Finding a cure is much more difficult. To many, the obvious treatment is financial education, but recent research suggests that financial education is not effective.
Some promising new ideas such as “just-in-time” education and “nudges” to help us make better decisions are starting to emerge as alternative approaches.
Ineffective Programs
Governments around the world have invested huge resources in initiatives aimed at improving financial literacy, such as the Federal Deposit Insurance Corp.’s My Smart program, which helps low-income individuals develop financial skills.
Unfortunately, research into the effectiveness of these programs paints a grim picture. A recent meta-analysis looked at every known study examining whether a financial-education intervention — such as training sessions, classes or one-on-one counseling — improves positive financial behaviors and financial health. Across all those studies, there was almost no benefit. Those participating in financial education were essentially no better off.
If we want to come up with better solutions, we need to understand the psychological barriers to financial education. Why is it so hard for people to learn?
Challenges To Learning
The first reason is relevance. The mind is not like a computer that can store arbitrary amounts of information. Instead, we tend to retain only what is useful for navigating our current circumstances.
For example, if you learn the abstruse mathematics of car leases to prepare for a negotiation at the dealership, you might be surprised to find how little you remember when renewing the lease years later. Financial education tends not to stick if it is not useful right away. Many curricula are flawed in precisely this way, teaching high schoolers about mortgages or debt management.
The second challenge is that the financial domain is a particularly complex one. You could call it a perfect storm. Many of the most important financial principles are highly counterintuitive. Take compound interest. Compounding is a nonlinear function.
The more you save, the more the savings accelerate, because the interest accrued in one period earns additional interest in the next period. In one study, participants were asked to guess how much money they would have after 40 years if they put $400 a month into a savings account that made a 10% annual return. The median guess was $223,000. The correct answer: $2.5 million.
To continue reading, please go to the original article here:
7 Steps That Protect You From Rising Interest Rates
.7 Steps That Protect You From Rising Interest Rates
How Rising Interest Rates Can Ruin Your Life
By Kimberly Amadeo Updated October 31, 2019
The Federal Reserve raised its benchmark fed funds rate to 2.5% at its December 19, 2018 meeting. Since then, it's lowered the rate three times. As of October 30, the current fed funds rate was 1.75%.
The fed funds rate affects all other interest rates. It directly affects rates for savings accounts, certificates of deposit, and money market accounts. Banks also use it to guide short-term interest rates. These include auto loans, credit cards, and home equity lines of credit. It also includes adjustable-rate loans.
The Fed's rate decision indirectly affects long-term rates as well, such as fixed-rate mortgages and student loans. It's one of the most critical factors in determining interest rates.
The lack of a Fed rate hike means banks won't pay you higher interest on your savings, but they also won't charge you more for loans. It affects wages and consumerism as well.
History
The Fed increased the federal funds rate a walloping 17 times between June 2004 and June 2006. Mortgage rates initially plummeted, but then they started to come back up. Ultimately, they were higher in June 2006 than they were two years earlier. Sometimes it can take 18 months for a fed rate hike to completely work its way through the economy.
7 Steps That Protect You From Rising Interest Rates
How Rising Interest Rates Can Ruin Your Life
By Kimberly Amadeo Updated October 31, 2019
The Federal Reserve raised its benchmark fed funds rate to 2.5% at its December 19, 2018 meeting. Since then, it's lowered the rate three times. As of October 30, the current fed funds rate was 1.75%.
The fed funds rate affects all other interest rates. It directly affects rates for savings accounts, certificates of deposit, and money market accounts. Banks also use it to guide short-term interest rates. These include auto loans, credit cards, and home equity lines of credit. It also includes adjustable-rate loans.
The Fed's rate decision indirectly affects long-term rates as well, such as fixed-rate mortgages and student loans. It's one of the most critical factors in determining interest rates.
The lack of a Fed rate hike means banks won't pay you higher interest on your savings, but they also won't charge you more for loans. It affects wages and consumerism as well.
History
The Fed increased the federal funds rate a walloping 17 times between June 2004 and June 2006. Mortgage rates initially plummeted, but then they started to come back up. Ultimately, they were higher in June 2006 than they were two years earlier. Sometimes it can take 18 months for a fed rate hike to completely work its way through the economy.
The December 2018 increase was the fourth that year, and the ninth in the last two years. The chart below illustrates the changing Federal funds rate from 2000 through today.
The Effect on Everyday Life
The demand for products and services increases when consumers have more money. That happens when they can borrow money at reasonable rates. Think of that pricey new car you want and the auto loan you'd be able to take out because rates are currently low. But there's a flip side. As rates rise, that car might be less pricey because loan costs will rise. An increase in the Fed's rate tends to keep prices more stable.
The opposite occurs when rates are high. The real estate market could soften in 2019 as higher mortgage rates make home loans more expensive.
The economy becomes sluggish when the federal funds rate is high. As a result, companies cut back on hiring. Employees become trapped at the pay rate they're currently receiving because raises and incentives are likewise curtailed. But the Fed believes that curbing inflation is worth it.
Savings Accounts, CDs, and Money Markets
Banks base interest rates for all fixed income accounts on the London Interbank Offer Rate (Libor). Libor is a few tenths of a point above the fed funds rate. It's the rate banks charge each other for short-term loans.
Fixed income accounts include savings accounts, money market funds, and CDs. Most of these follow the one-month Libor. Longer-term CDs follow longer-term Libor rates.
The rates in the Libor history compared to the fed funds rate might show that they trend along a similar path, but this hasn't always been the case, particularly in 2008 and 2009 when the two diverged during the recession.
Credit Card Rates
Banks base credit card rates on the prime rate. It's typically three points higher than the fed funds rate.
To continue reading, please go to the original article here:
https://www.thebalance.com/how-fed-rate-hike-affects-you-4119767
How to Create a Financial Binder
.How to Create a Financial Binder
Written by Sam
It’s a common worry. Am I spending more than I should? When are my bills due? Have I paid them? Am I on track to reach my financial goals? Am I going to be able to get out (or stay out) of debt? Financial worries are not only one of the greatest causes of personal anxiety; they can also be one of the biggest strains on a relationship.
Many people don’t have their finances well organized and therefore aren’t able to tell where they stand. Disorganized finances can have severe consequences; In the short-term, you may end up paying hundreds of dollars in late fees and penalties.
You may be digging yourself deeper into debt without even realizing it. In the long-term you won’t meet your high-level financial goals. Couples often end up re-hashing the same financial issues over and over again because they don’t have a way of tracking the decisions and progress they’ve made as a result of their arguments…er discussions. If your finances are not organized how can you ever have any hope of getting them under control?
The good news is that by taking one simple step you can start down the road of financial security and begin to get your finances in order. You can get a good overall view of your financial picture and establish a base from which you can build your financial future. It all starts with creating your financial binder.
What Is A Financial Binder?
How to Create a Financial Binder
Written by Sam
It’s a common worry. Am I spending more than I should? When are my bills due? Have I paid them? Am I on track to reach my financial goals? Am I going to be able to get out (or stay out) of debt? Financial worries are not only one of the greatest causes of personal anxiety; they can also be one of the biggest strains on a relationship.
Many people don’t have their finances well organized and therefore aren’t able to tell where they stand. Disorganized finances can have severe consequences; In the short-term, you may end up paying hundreds of dollars in late fees and penalties.
You may be digging yourself deeper into debt without even realizing it. In the long-term you won’t meet your high-level financial goals. Couples often end up re-hashing the same financial issues over and over again because they don’t have a way of tracking the decisions and progress they’ve made as a result of their arguments…er discussions. If your finances are not organized how can you ever have any hope of getting them under control?
The good news is that by taking one simple step you can start down the road of financial security and begin to get your finances in order. You can get a good overall view of your financial picture and establish a base from which you can build your financial future. It all starts with creating your financial binder.
What Is A Financial Binder?
A financial binder is a place to keep all of your high-level financial information including important decisions and goals you’ve made. Instead of containing transaction-level, detailed information about your finances, it is a place for summary-level information about such things as bank accounts, bills, financial decisions, savings goals, taxes, and credit reports.
Your financial binder doesn’t necessarily have to be a binder. Any form of organizing papers into categories could technically work. However, there are certain advantages to using a binder.
Binders are easy to expand. You can always add more tabs or upgrade to a larger binder (up to 5 inches).
Binders are easy to customize. You will inevitably want to create categories and information unique to your situation.
A Binder keeps items in one place and prevents them from getting misplaced.
Binders are portable. My wife and I sometimes like to review our financial progress during quarterly getaways. Being able to take our binder and go makes it easy to conduct these remote reviews.
Paper Vs. Digital Systems
Many people ask why they shouldn’t keep their binder information in digital form. Although your binder is paper based, many of the contents may be created digitally. Simply take the last step of printing out the documents after you work on them and you’ll have a nice backup.
Whenever you print a document, be sure to record both the date printed and the digital location of the file for later reference. While digital files do have advantages I discourage the use of exclusively digital storage for the following reasons.
The “did I change this?” factor. By printing out a hard copy of digital files, you put a stake in the ground so to speak. You establish that “on this date, I made this decision” rather than second guessing if you’re looking at the most recent version of a document.
Backup. If you haven’t had a hard drive crash on you yet, it’s just a matter of time. Most people don’t have adequate digital backup plans.
Here’s a handy tip: To make it easy to cross-reference your paper and digital files, alter your Microsoft Word or Excel settings to automatically print the date-printed and the digital location of each file.
In either program, from the menu select “View — Header and Footer.” You can then configure exactly what you want to appear at the top and bottom of the page. You may have to play with this a little to get exactly the effect you want.
What Should A Financial Binder Contain?
To continue reading, please go to the original article here:
http://www.gettingfinancesdone.com/blog/archives/2009/08/how-to-create-a-financial-binder/
Envelope Planning
.Envelope Planning
By Muhammad Ali
You're probably thinking, what the heck is that?
It's an idea that I suggested to my group here in Malaysia and I think it's great idea for those who want to take their planning to the next step.
Once you have entered all of your exchange plans into my Currency Exchange Planner software, this is the next logic step that can help you further get a clearer picture of your overall financial portfolio.
So how does this work, Muhammad?
You categorized your allocation of currency based upon your exchange plans. So let's see an example and then things will be more clear.
Below is a sample exchange plan from one of my group members. What he has done is made 16 envelopes and he put the required amount of currency in each labeled envelope based upon the amounts from his exchange planner.
Envelope Planning
By Muhammad Ali
You're probably thinking, what the heck is that?
It's an idea that I suggested to my group here in Malaysia and I think it's great idea for those who want to take their planning to the next step.
Once you have entered all of your exchange plans into my Currency Exchange Planner software, this is the next logic step that can help you further get a clearer picture of your overall financial portfolio.
So how does this work, Muhammad?
You categorized your allocation of currency based upon your exchange plans. So let's see an example and then things will be more clear.
Below is a sample exchange plan from one of my group members. What he has done is made 16 envelopes and he put the required amount of currency in each labeled envelope based upon the amounts from his exchange planner.
Remember that everyone's plans will be different, kind of like fingerprints, it's specific to each person. In this example, the person is holding Iraqi Dinar, Iranian Rial and Zimbabwe Dollar, you can substitute these for any other currencies you are holding, including Dong or Rupiah but just follow the logic flow of the example.
1. First RV exchange to secure Team (1 note IQD)
2. Pay current debts (1 note IQD)
3. Buy a house with land (40 notes x IRR)
4. Open a Private Bank account (10 notes x IRR)
5. Bank Investments (40 note iqd, 40 notes x IRR)
6. Farming/Agriculture business (15 notes x IQD)
7. Plan B - Precious Metals (50 notes x IRR)
8. Entertainment & Travel (2 notes x ZIM 100T)
9. Charity project 1 (15 notes x IQD 15 notes x IRR)
10. Charity project 2 (1 note x ZIM 100T)
11. Miscellaneous purchases (5 notes x IRR)
12. Family In-laws gifting (10 notes x IQD)
13. Taxes and expenses for 10 years (1 note x ZIM 100T)
14. Currencies to Exchange 5 years later (15 notes x IQD, 15 notes x IRR)
15. Basket 2, 3, 4 Reserve fund (5 notes x IRR)
16. Top up (If no RV as yet, buy more)
This particular Dinarian is holding quite a variety of currencies, may be you have less or may be you have more. The important aspect of all this, is this kind of creative thinking and planning will be what is required to keep you from losing your money in the future. I cannot stress how important money management is.
This Dinarian even allocated 1 envelope (#14) for currency to be exchanged in 5 years time, meaning that if he runs into any financial difficulties due to Sudden Wealth Syndrome (SWS), he still has back up currency to bail him out.
He also allocated taxes and expenses for 10 years (#13) and (#15) he allocated currencies that can used to buy more currencies for the upcoming baskets. Wasn't that very clever?
For those who are visually oriented, this kind of creative thinking and exchange planning will be right up your alley and even if you're not you may still be able to benefit from it.
And very important, once you are done, make sure you put those envelopes in a bank safety deposit box or home safe box, but some place secure.
I hope my article has sparked some creative thinking and opened up new ways to help you plan your exchange. Remember our ultimate goal is to be in the 30% group of those who will not suffer from SWS. This requires learning and education and whatever else it takes, let's get it done.
Thanks for reading my article, as a token of thanks here is a $5 off promo code that you can use at the checkout for any of my CEP products. (code: Article5).
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
www.CurrencyExchangePlanner.com
Do's and Don'ts When You Increase Your Income
Do's & Don'ts When You Increase Your Income
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Team Member Blog, Consumerism to Frugalism
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
Do's & Don'ts When You Increase Your Income
From the Recaps Archives originally posted on 7/11/2019
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Team Member Blog, Consumerism to Frugalism
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
While we should live within our means, most people would make very different choices if money wasn’t an option. Having said that, money should never be the end goal.
What’s really at the heart of the drive for more money is the desire for more freedom and power: over our life and the choices we make about it, as well as our ability to influence the world in the ways we care most about.
Money is nothing more than the means to an end.
Unfortunately, most of us will not win the big lottery, start a billion dollar company, or inherit millions. This means that while our incomes may increase over time that increase will likely be gradual, and may come in the form of step or merit-based raises, bonuses, or commissions.
However, most people find themselves spending money as fast as they make it, gradual increase or not.
With these points in mind, what SHOULD you do if you find your income increasing?
Luckily, we’re here to help.
Here are 2 things you should do when you increase your income and 1 you shouldn’t.
Things You SHOULD Do :
Pay off Debt
We know we play this tune like a broken record, but paying off your debt as fast as you can is one of the most effective ways of having Money Earned through Money Saved.
In fact, paying off debt is second only to not accruing debt in the first place!
The reason paying off debt as soon as possible is so impactful is because of interest.
Essentially, any loans you have you will pay interest on, which gives the lender extra incentive for loaning the money in the first place.
The trick with paying off debt at a faster pace than your loan term lies in the fact that any extra you pay goes directly toward the loan balance and not to interest.
Thus, making extra payments lowers your overall balance, which lowers the interest paid, which lowers the total amount you will pay to the lender.
Depending on the size of the loan and how much extra you put toward it, the impact on the total you pay can be quite astounding.
For instance, making extra payments on a mortgage could save you upwards of $30,000 in interest and several years on the life of the loan!
Not only does paying down your debt help you to save on interest and shorten the life of the loan, having less debt helps you maintain financial flexibility.
Say your car dies and you need another one, or you get in an accident (heaven forbid) and have medical bills. What if you get laid off or get sick and need to miss work?
If your debt to income ratio is maxed out you’ll be hard-pressed to get more credit no matter how great your credit score is or how much you make.
This is why it’s so important to focus on paying down any debt you do have as fast as possible and to try and keep it paid down. Not only will you be saving on interest and getting out from under loans faster, you’ll be able to handle any unknowns that may come up that could require you to accrue more debt.
Long story short, if you increase your income one of the first things you should do with that money is to pay down your debt.
To continue reading, please go to the original article at
What Is Your Lifestyle After The RV?
.What Is Your Lifestyle After The RV?
By Muhammad Ali
I have been getting many questions about investing after RV and creating a steady stream of income so that you can have a work free lifestyle.
So I made this post for you all to think wisely and have the opportunity to top up your currency as required before the RV.
After the RV, the perfect scenario is: we do not want to work. We want to have our money work for us.
So we need to invest our money into places that will not run away with our money nor be shut down by corrupt/greedy CEO. No more money games!!!!
So the best and safest avenue will be thru the banks.
What Is Your Lifestyle After The RV?
By Muhammad Ali
I have been getting many questions about investing after RV and creating a steady stream of income so that you can have a work free lifestyle.
So I made this post for you all to think wisely and have the opportunity to top up your currency as required before the RV.
After the RV, the perfect scenario is: we do not want to work. We want to have our money work for us.
So we need to invest our money into places that will not run away with our money nor be shut down by corrupt/greedy CEO. No more money games!!!!
So the best and safest avenue will be thru the banks.
Just last week, I met with the manager of BIMB investments a subsidiary of a local bank in Malaysia, we met at my house. We had a 3 hour discussion of the BIMB investment program; this was our second meeting actually.
And I really like their programs and their results. This program is open to Singaporeans and foreigners from any country.
Their present returns have been around 11% per annum. This is very good.
So I want you to think carefully about this and ask yourselves this question.
How much do I need to lock-in, in order to generate a monthly/yearly income that I can live off of comfortably?
So for everyone, that answer will be different. Some will want to live like a King while others a few thousand a month will contend you.
Ok let's put some numbers down on paper then you can see.
Let's say, for example, we want to live a millionaire’s lifestyle, this means we need at least $1,000,000 per year to live on. We can pay all of our expenses, we can travel anywhere we want, we can buy anything we want and we can live very comfortably. (Large house, which includes maid, gardener, personal driver etc.)
So how much do we need to invest with the bank to generate $1 million per year?
So let's say we can get 10% return, we will need $10,000,000 invested.
Now what this means is:
We will actually need more than $10 million from our currency exchange after the RV.
$6,000,000 to open a private bank account
$3,000,000 to buy a new 10 bedroom house with renovations, new car and clothes.
$1,000,000 to pay off all current debts and pay to our charities.
(These amounts may be overestimated - depends on each person's debt capacity)
And then $10,000,000 for investing.
So that means we would need at least $20,000,000 after RV.
Now, no bank can guarantee a yearly return of 10% it would all depend on the markets. So you may need to have multiple investment accounts with various banks to generate your 10% per year.
So for example, let's say you had a principal amount of;
$10,000,000 invested at BIMB giving you a yearly average of 5%
$10,000,000 invested at HSBC giving you a yearly average of 5%
If the banks made more money for you, then bonus!
Total is 10% giving you, your $1,000,000 per year profit to live off this money, roughly about $83,000 per month.
So this also means you never touch your principal and you have money flowing in every month.
And if you think you'll need more than $1,000,000 a year, then you'll need to invest higher amounts.
If you want to live a simpler lifestyle, then you will invest smaller amounts.
What is important to note, is that this kind of investing will give you a work free lifestyle.
Is it making sense?
Another option is this can also be done by investing in a business or restaurant. But remember when you operate a business, you need to monitor it, you will have expenses, overhead, employees, a lot of the head aces that comes with running a business.
So if that is what you want then by all means you can work towards it. Work is the keyword. You will not have a work free lifestyle.
Ideally if you want that kind of working lifestyle and if you have enough currency after RV, then you may want to consider doing both, investing with the banks and to open a business.
This way if the business is down, you still have money coming in from your banking investments.
YOUR PRIORITY IS TO FIND A WAY TO HAVE MONEY FLOWING IN, THIS IS WHAT YOU HAVE TO THINK VERY, VERY CAREFULLY, RIGHT NOW.
If money is always flowing out and you have no money flowing in, then sooner or later the money will finish and then you will find yourselves with no money and you’re out looking for a job.
So it's very important you plan from now and have good money management.
The above examples that I made are based on 1 particular lifestyle, you can adjust the lifestyle as you require and therefore adjust the investing amounts. It's all up to you.
I know exactly what I want and I have bought enough currency for the lifestyle that I choose.
By now, you all know the estimated rates for IQD, Rial and Zim. Calculate how much your estimated net worth will be.
Use my currency exchange planner spread sheet and it will help you calculate your Net Worth very easily.
Once you see the numbers then you will know whether you have enough currency to maintain that lifestyle.
And if you don't have enough currency then find money and top up while you still can.
You will never have this opportunity again, for some of you, you have been buying currency.
For some of you, you are holding 4 or 5 notes.
Think wisely and make sure you have enough currency to create a work free lifestyle.
My Currency Exchange Planner has an Investment tab that you can enter in 3 investment risk types. High Risk, Medium Risk and Low/No Risk investments. You can put in estimated amounts and percentages and see how much income you can generate per year and per month. This is the first step to your planning a steady income stream.
Once you know your lifestyle then you know what amount of income that you need to generate every month.
Now, regardless of your lifestyle, we want to try and target 10% profit per annum (year) from your investments.
Maybe you'll be lucky and get higher than this, like 15%-20%. Consider this a bonus or maybe you'll even get lower than 10%.
But 10% per annum is our target. Now we have think, how will we achieve this?
Some investments will lose money and some will do better than others. This is where you need an investment plan B.
So just this line alone tells you not to put all your eggs (investments) into one basket (one bank).
You need to diversity.
Here is my personal investment strategy after RV. I hope you pay close attention.
I will put my money in several avenues to give me several types of yield.
1. High risk investments
2. Medium risk investments
3. No risk investments
4. Agriculture
For now, I will exclude number 4.
For example, let's say $10,000,000 is my investment allocated amount.
My target is 10% per year so this gives me $1,000,000 per year divide by 12 months = $83,000 per month to cover my expenses.
So now going back to 1, 2 and 3.
You need to determine how to classify the investment as high risk, medium risk and no risk. Now, how much of the $10 million i will divide into no. 1, no. 2 and no. 3? This question requires a lot of careful thought.
If you can afford to invest $10 million it means you have at least another $10 million in your bank account so you should also consider compounding the profits over 4 to 5 years before taking any profits. Let the money grow first, then starting the 6th year, start taking out your monthly profits.
For the first 1-5 years, control your spending and money out flow as you won't have money flowing in right away so you need to control the spending.
There are many articles available on compounding just do a search in Google and you’ll quickly be able to see the power of compounding.
So i hope my article helps you to plan your investments.
Any questions please send me an email to currencyexchangeplanner@gmail.com
I am the creator of the currency exchange planner, an excel spread sheet, which is the most advanced and affordable planning tool for the dinar community.
Try the free download version to test run or buy the full version for a one-time low price of $25. This includes free updates in the future.
My website is www.currencyexchangeplanner.com
Thank you so much, Muhammad Ali
Wealth Managers and Handling Losses
.Wealth Managers and Handling Losses
By Muhammad Ali
Imagine you invested the majority of your RV exchanged money or funds with a wealth manager and the guy lost 90% of your money.
Do you think this situation can never happen? How about telling that to this man and his wife.
He invested $250,000 with a Wealth Manger only to be left with $11,200.
So yes, it definitely can happen and it can happen to you.
What would you do?
Wealth Managers and Handling Losses.
By Muhammad Ali
Imagine you invested the majority of your RV exchanged money or funds with a wealth manager and the guy lost 90% of your money.
Do you think this situation can never happen? How about telling that to this man and his wife.
He invested $250,000 with a Wealth Manger only to be left with $11,200.
So yes, it definitely can happen and it can happen to you.
What would you do?
Probably, the same thing that this guy is doing in the article, protesting against the bank.
However, what is done is done.
Be careful and be cautious with any and all kinds of investments. Risk only a small percentage of your capital. Let's say you have $1,000,000 then advise your wealth manager to trade only 10%, $100,000 of that money. That's it, that's all. If they can make your money grow then great. If they lose it all well then you still have your $900,000 in the bank.
In the Investment tab of my Currency Exchange Planner, you can do simulations of various types of investments and profit returns. However, I also recommend that you only invest 10% to 20% of your remaining net worth.
You control your money. Don't let the banker sweet talk you to invest more.
One avenue to invest your money is in Government Bonds or Treasury Bills. These do not necessarily have to be done in your country. You can invest in let’s Iraqi Treasury Bills. The percentage of return may be smaller but the return and your capital is guaranteed. You will not lose any of your capital.
So do your own research on what to invest. Think smart and protect your money at all costs.
You will not get a second chance to buy more Dinars or Rials after the RV, so when you have lost all your money, the panic will start to kick in.
Take note to this post and pay serious attention to what I have said.
I hope my article has been of some interest to you.
Any questions please send me an email to currencyexchangeplanner@gmail.com
I am the creator of the Currency Exchange Planner, an excel spread sheet, which is the most advanced and affordable planning tool for the Dinar Community.
Try the FREE Download version to test run or BUY the full version for a One-Time low price of $25. This includes free updates in the future.
My website is www.CurrencyExchangePlanner. com
Thank you so much, Muhammad Ali
https://www.currencyexchangeplanner.com/article-6-wealth-mangers-lose-money
13 Easy Ways To Trick Yourself To Save Money
13 Easy Ways To Trick Yourself To Save Money
By Ryan
If you have trouble saving money each month and always seem to go over your budget, try some of these helpful tips and tricks to save more money!
Saving money is definitely not as fun as spending money. Before I successfully changed my spending habits, I learned a few tricks to save money even when I didn’t want to. If you are trying to pay off debt or saving for retirement or a vacation, all of these tips will help you get there faster!
#1. Use Cash For Everyday Expenses
You should have a monthly grocery budget. At the beginning of each month, take out that money in cash and leave your cards at home when you go to the store. Creating a list and shopping with cash will help you stick to your budget if you know you don’t have a credit card to fall back on.
From the Recaps Archives originally posted on 4/30/2019
13 Easy Ways To Trick Yourself To Save Money
By Ryan
If you have trouble saving money each month and always seem to go over your budget, try some of these helpful tips and tricks to save more money!
Saving money is definitely not as fun as spending money. Before I successfully changed my spending habits, I learned a few tricks to save money even when I didn’t want to. If you are trying to pay off debt or saving for retirement or a vacation, all of these tips will help you get there faster!
#1. Use Cash For Everyday Expenses
You should have a monthly grocery budget. At the beginning of each month, take out that money in cash and leave your cards at home when you go to the store. Creating a list and shopping with cash will help you stick to your budget if you know you don’t have a credit card to fall back on.
I also recommend using Clicklist or any other online shopping method. I wrote an article about how my wife and I save a ton of money using Frys Pickup by shopping online and picking up our groceries from the store. Read more about it here: How Frys Pickup (formally Click List) Saves Me Money
For the cash technique, you can use this strategy for any other budgeted item you have. You can use cash and leave the cards at home when you go to a restaurant, movie theater, etc. Force yourself to stay on your budget.
#2. Pay Your Savings First Each Month
You should have a budget set up for the beginning of each month. In theory, you know how much money you are able to spend and how much you plan to save. Instead of spending money all month and saving whatever is left, reverse the process.
When you receive your first paycheck of the month, automatically move a certain amount of money from your checking account to your savings account. Many banks can do this for you automatically if you set it up for a certain amount. If you automatically move $25 dollars over initially, you know you have at least saved that much.
Force yourself to lower your spending rather than your saving. By reversing your money management order, you can more easily achieve your savings goals.
Digit is a mobile app that will assist you with this process as well. Digit is a service that looks at your spending and transfers money into a savings account automatically. If you would like to try it for free for 30 days, click my link here.
I To continue reading, please go to the original article here:
https://arrestyourdebt.com/13-easy-ways-trick-yourself-save-money/
The Signs That Signal You Are Too Obsessed With Making Money Now
The Signs That Signal You Are Too Obsessed With Making Money Now
Post From Invested Wallet
Making Money NowMaking money is something I’ve been working on quite a bit the last few years to better my financial health.
Yet, at times I also found myself becoming a bit too obsessed with making money now and the pursuit of wanting to get rich. I think it’s a natural feeling for many in our society.
However, I’ve been fortunate enough to catch myself and ensure I do not make it my entire life either.
Life is short and anything can change in an instant. So while money is important to our lives, it should not be all that matters..
The Signs That Signal You Are Too Obsessed With Making Money Now
From the Recaps Archives originally posted on 5/30/2019
The Signs That Signal You Are Too Obsessed With Making Money Now
Post From Invested Wallet
Making Money NowMaking money is something I’ve been working on quite a bit the last few years to better my financial health.
Yet, at times I also found myself becoming a bit too obsessed with making money now and the pursuit of wanting to get rich. I think it’s a natural feeling for many in our society.
However, I’ve been fortunate enough to catch myself and ensure I do not make it my entire life either.
Life is short and anything can change in an instant. So while money is important to our lives, it should not be all that matters.
Below are a few signs that might signal you are becoming too obsessed with making money or getting rich fast.
All You Talk About Is Money
That’s rich coming from a personal finance nerd like me, right? (That’s rich, get it? #MoneyPuns)
As much as I do think about money, it’s not something I talk about constantly to everyone in my life. It can be a touchy subject to some, plus there is plenty to talk about and connect with others about.
If you find that every word you speak or conversations lead to making money, getting rich, or how much you’re making, try to find ways to dial it back. You shouldn’t have money on your brain 24/7.
You Stress Yourself Out Trying to Get Rich
Money is stressful and managing personal finances can be too. But if your obsession with getting rich and chasing the almighty dollar is stressing you out, you may be too obsessive.
I’m all about working hard and chasing financial independence, but if it is affecting your mental and physical well-being, it’s time to re-evaluate your goals.
Ask yourself, “Is trying to make money or get rich worth the toll it has on my body and mind?”
You Jump On Every Money Making Idea
Since making money now is a heavy priority, anytime some new way to make money comes up you’re the first one to jump on it.
There is nothing wrong with wanting try something new, but it can become a problem if you never see something through and jump to the next thing right away.
By doing this, you aren’t putting 100% of your focus on something and can get frustrated when it doesn’t work out. This can take a serious toll on your mind.
To continue reading, please go to the original article here:
8 Insights Only the Self-Made Super Wealthy Understand
.From the Dinar Recaps Archives originally posted on 6/3/2019
Billionaire Ken Fisher Shares 8 Insights Only the Self-Made Super Wealthy Understand
Wonder what it's really like to strike it rich? Billionaire Ken Fisher explains the perspectives of the self-made wealthy.
BY KEVIN DAUM Inc. 500 entrepreneur and best-selling author@KevinJDaum
Not all entrepreneurs are in it for the money, but gaining wealth is certainly among the top motivators for company building. Not surprisingly, having great wealth brings it's own unique responsibilities and circumstances that few get to experience first hand.
I recently had the privilege of interviewing billionaire Ken Fisher, founder, chairman, and CEO of Fisher Investments, best-selling author, Forbes magazine columnist, and No. 225 on the Forbes 400.
Fisher provided a candid, no-holds-barred look at the perspective of the self-made super wealthy.
Here are his insights.
From the Dinar Recaps Archives originally posted on 6/3/2019
Billionaire Ken Fisher Shares 8 Insights Only the Self-Made Super Wealthy Understand
Wonder what it's really like to strike it rich? Billionaire Ken Fisher explains the perspectives of the self-made wealthy.
BY KEVIN DAUM Inc. 500 entrepreneur and best-selling author@KevinJDaum
Not all entrepreneurs are in it for the money, but gaining wealth is certainly among the top motivators for company building. Not surprisingly, having great wealth brings it's own unique responsibilities and circumstances that few get to experience first hand.
I recently had the privilege of interviewing billionaire Ken Fisher, founder, chairman, and CEO of Fisher Investments, best-selling author, Forbes magazine columnist, and No. 225 on the Forbes 400.
Fisher provided a candid, no-holds-barred look at the perspective of the self-made super wealthy.
Here are his insights.
1. It isn't pursuit of wealth, but pursuit of passion that creates wealth.
Focusing on money won't likely get you to the Forbes list like Fisher. He aptly states: "Most people don't get super wealthy by accumulating money. They get super wealthy by following some dream they are passionate about, whether its starting and running a business, or being a rock star musician or a visual entertainer."
He points out that most of the super wealthy overshoot their personal goals, and yet they are still driven by their passion. The super wealthy know that if you pursue your passion, the money will come.
2. After a certain monetary threshold, the desire isn't for more wealth, but more time.
There is very little that the super wealthy cannot buy. As the wealth keeps accumulating, spending becomes less of a joy or ambition. "After a certain point," Fisher explains, "there isn't much more you can think of that you want."
What becomes more desirable is time to enjoy life. "The vacation homes, cars, boats, and wardrobes are just more stuff to deal with." Fisher observes. "All that stuff clutters your time usage, so at a certain point, the wealthier you get the more you covet time."
3. Everyone you've known forever (except your spouse) will think you've changed.
There is a common belief that wealth changes everyone, and not always for the better. Fisher says, "Only you will know that you haven't changed; that passionate drive to follow dreams does not change."
Fisher explains it this way: "Everyone's perceptions of change are as though they are seeing the clock at a few different hour points in your evolution, as opposed to seeing it as a continuous sweeping minute hand that doesn't change."
To continue reading, please go to the original article here:
8 Critical Personal Finance Numbers You Need to Know
.8 Critical Personal Finance Numbers You Need to Know
Post From Money Saved Is Money Earned
Do you know your financial status?
If not, you’re not alone. A recent Gallup poll found that only 32% of Americans have a household budget.
Furthermore, a recent Bankrate survey found that 55% of Americans don’t think their financial situation will improve this year, with 44% who think their situation will stay the same and another 12% saying they think their situation will get worse.
While you may feel your financial situation won’t improve, you are guaranteeing it won’t improve if you don’t know where you stand or if you’re actively ignoring your finances.
Like any path taken in life, you need to know where you’re starting so you know how far you’ll need to go before you reach your destination.
Every journey has a beginning, and you must know yours.
8 Critical Personal Finance Numbers You Need to Know
:Posted at Dinar Recaps Archives on 7/10/2019
Post From Money Saved Is Money Earned
Do you know your financial status?
If not, you’re not alone. A recent Gallup poll found that only 32% of Americans have a household budget.
Furthermore, a recent Bankrate survey found that 55% of Americans don’t think their financial situation will improve this year, with 44% who think their situation will stay the same and another 12% saying they think their situation will get worse.
While you may feel your financial situation won’t improve, you are guaranteeing it won’t improve if you don’t know where you stand or if you’re actively ignoring your finances.
Like any path taken in life, you need to know where you’re starting so you know how far you’ll need to go before you reach your destination.
Every journey has a beginning, and you must know yours.
It’s important to be able to accept the things you did know, didn’t know, or ignored that have impacted your current financial situation. Only then can you build an effective financial plan.
You can start your journey any place or any time, but more importantly, start now.
Here are 8 critical personal finance numbers you need to know no matter where you are on your financial journey.
1. After-Tax Income
The first critical personal finance number you need to know is your after-tax income.
This means you must know what money you’re actually putting in your pocket every month (net) as opposed to your overall income (gross)
For those that are salaried, simply look at your paycheck to see what money you’re taking home every month.
After-tax income will be harder for those with a variable income or who freelance, but close estimations can still be made. Plus, if you’re income is variable it’s important to know how much it varies when making other financial decisions so you don’t overstretch yourself.
Knowing how much money you actually have to allocate is the first step in taking control of your financial situation.
Check out 2018 Tax Changes You Need to Know for more information about tax brackets and other important tax laws.
2. Monthly Expenses
Once you know how much money you have coming in you need to determine how much money you have going out. You also need to make sure you’re covering all your necessities and not overspending for non-essentials.
They only way to truly know what’s going out each month is to build a budget.
Many think of a budget as restrictive, but really it’s simply a way to track what you’re spending each month and on what. Once you know how much money is going out and for what, you can make changes based on your goals if needed.
Even those who have good cash flow must still have a general idea of their budget if they want to maintain their finances. After all, 33% of those making $50k-$100k live paycheck-to-paycheck, and 25% of those making $150k are in the same predicament.
There are five major sections to a basic budget. They are:
Income
Fixed Expenses
Variable Expenses
Debt Payment
Balance
Once you know how much money is coming in and going out each month, you can begin to make goals and to tweak your finances to meet those goals.
To continue reading, please go to the original article at
https://www.moneysavedmoneyearned.com/8-critical-personal-finance-numbers-you-need-to-know/