Bail-Ins Saves The Banks But Who Saves Us?
.Bail-Ins Saves The Banks But Who Saves Us?
By Muhammad Ali
We all remember the financial crises of 2008 and the Bail-outs that occurred. So no need to go down that path, instead we'll continue from there.
So the Governments will not Bail-out the banks again, then it means the banks will need to go somewhere else to help themselves out. Where do you think they will go? Yes, that's right the deposit holders.
If you think that Bail-ins are just some fantasy concoction of mine, why don't you tell that to this The 68-year-old man who hung himself at his home in Civitavecchia, a port town near Rome, after the so-called “save the banks” plan wiped out €100,000 in savings held at Banca Etruria.
But wait, he's already dead, so you cannot. This was during the time when certain banks were testing the new system. Unfortunately, their tests cause the life of this man.
Bail-Ins Saves The Banks But Who Saves Us?
By Muhammad Ali
We all remember the financial crises of 2008 and the Bail-outs that occurred. So no need to go down that path, instead we'll continue from there.
So the Governments will not Bail-out the banks again, then it means the banks will need to go somewhere else to help themselves out. Where do you think they will go? Yes, that's right the deposit holders.
If you think that Bail-ins are just some fantasy concoction of mine, why don't you tell that to this The 68-year-old man who hung himself at his home in Civitavecchia, a port town near Rome, after the so-called “save the banks” plan wiped out €100,000 in savings held at Banca Etruria.
But wait, he's already dead, so you cannot. This was during the time when certain banks were testing the new system. Unfortunately, their tests cause the life of this man.
Here's the full article for your reference, in case you think that I am making this up.
https://www.thelocal.it/20151210/man-kills-self-after-losing-100000-in-italy-save-banks-plan
I remember when this article first came out in 2015; I shared it with my group in Malaysia. While the world has probably forgotten about him by now, I have not and I believe the best way we can honour the memory of this man is by not doing what he did and understanding the bail-in system.
One of my Currency Exchange Planner software customers, lives in Toronto, Canada but is from Ottawa, same as myself. His name is Gary, and after RV, he wants to build a 1965 Cobra Factory 5 sports car, really awesome car. I hope to take a ride with him when he's done.
Now, the reason I am bringing up Gary is because he is 68 years old, same age as the man from Italy. So, it makes me wonder if the Bail-ins were to affect Gary's bank accounts, what Gary would do.
I will share some very interesting things with you guys about the Bail-in system and clarify things with you that probably you've never heard about before, so that none of us need to end up the same fate as the man from Italy.
First things first, let's talk about this Bail-in system and see how it will affect us.
Most countries have some sort of bank insurance deposit scheme, in Malaysia it is called PIDM, in North America it's known as FDIC. Sounds familiar? So what's it for?
Basically, your deposits are insured up to $250,000, so then the first question that should pop into your mind is; what about the amounts over that amount? Technically, there is no insurance coverage thru the bank for over that amount. You may have to look into 3rd party insurance coverage, something to discuss with your private bankers and lawyers.
But for now, let's assume you had $1,000,000 in your account, that means $250,000 is insured, and $750,000 is not, so this is how the Bail-in will factor in. The banks may 'appropriate' the $750,000 leaving you with $250,000. Suppose you had $10 Million in your account? I bet you're starting to worry now aren't you?
So you can see that the banks will not fail ever again. Right?
So should we be worried? Or is that a stupid question to ask? Well maybe I know something that you don't but don't worry, I'll share everything I know on this subject and at the end of this article, you won't be so worried, then I'll give you my opinion on whether we should be worried or not and some things you can do about it.
First of all, let me, put you out of some misery and let's settle this 'appropriated' $750,000.
The bank does not 'appropriate' or keep your money, as if they've just stolen your funds. Your account actually gets converted to equity (stock) in the bank. Your money is not gone, just converted, but when you check your bank balance it would not show your $750,000 because it is no longer cash in your account.
Then next logical step would be that to recover your funds you'll need to sell off your equity stocks back to cash. Something else that may happen is the bank may just take your full $1,000,000, and since your account has been converted to equity (stock) from cash, the FDIC is no longer responsible for your account and is not required to give you cash. Why? Because the FDIC only insures cash accounts not equity accounts, so now your entire bank account has been emptied!
Isn't this pretty clever of the banks to do this? For the common folks, like the Italian 68 year old man who doesn't understand the intricacies of the banking system will think that their life savings was just wiped out and may turn to drastic measures, such as in taking their lives. Do you think the bankers will care if you did that?
So I want to educate you all, so you do not do the same thing! So now you know what the bank has just done, your money is not gone, it's just transferred into Bank stock. It will be the customer’s responsibility to get that share of stock converted to cash, what that means is you'll need some help from your Team Lawyer to liquidate these stocks and turn them back into cash, once the Bank is stable.
If you turn the stocks back into cash right away, the bank may just take it again, so this is where your Plan B will come in handy. While you're waiting for the bank to become stable again, some of your gold and silver may need to be liquidated to cash to help maintain your cash flow until you can liquidate the bank stocks.
Remember your Private Banker works for the bank so he may not be the best person to get help from, your lawyer on the other hand works for you.
Another possible scenario, it may be difficult to sell the shares, much less get remuneration equal to the cash lost when the bank failed and bail-in was executed, so you need to prepare for this. So now do you see why I added the Gold and Silver tab in my Currency Exchange Planner? Planning, Planning, Planning.
And something else, the article I posted above occurred in Italy. That tells me the bail-in system is not just USA based but globally, I believe every country has it implemented by now.
I have provided a link to a PDF document that is 28 pages on the entire history of the Bail-in system from when they first started planning it in 1999. The man that did all this research his name is Randy Langel, I do not know him personally, but I commend him for his research and sharing it to the world.
It is probably the most extensive research on this subject, in simple layman terminology that you'll find. As it is now, it paves the road for us and we know exactly what to do, if and when the time calls for it.
The document also gives solutions, both short term and long term. I highly recommend everyone to download it, print it out so you can refer to it and incorporate some of the ideas that Randy recommends into your planning. Here's the link: https://www.popularresistance.org/docs/bail-in.pdf
Now, I am not done yet, I wanted to share my personal thoughts on the bail-in system and its current status. I have always said to my group that the Elite, in one hand will give us millions of dollars, while in their other hand they have the plan to take it all back, and that's thru the bail-ins.
From the latest reads of the Elite, it certainly seems that their hold on mankind is diminishing day by day. Something that's also really interesting is the number of protests that have been going on around the world. The citizens demanding that their governments treat them fairly and stop stealing their funds, thru corruption and wicked ways.
In Malaysia, for example the ruling party, had been in power for 40 years and thru that time, the politicians lived lavish lifestyles where the people on the street suffered from a dwindling Ringgit Malaysia currency.
Then in the last election, I, myself, even though I am not Malaysian, took a pro-active role and thru social media and viral messages a great change occurred, the ruling party was defeated and became the minority government.
So change can occur and I believe that maybe waiting all these years for the RV to occur was in fact a good thing for us. If we did RV back in 2012, most likely the Elite would have already seized our bank accounts and the majority would be none the wiser on how to get the money back.
What I think now, the banks and this entire bail-in system may have been shelved, in lieu of the new QFS system and if all of the world's currencies are moving back to a true gold-asset backed system, then it may mean that our money will be safe. I would really, really love it, that we can leave our money in the banks and not have to worry about these buggers trying to rip us off from our exchange funds.
So these are things that you really need to start thinking about, do I want to exchange all of my currencies at the beginning? Should I do it in stages over the years?
Or should I exchange a bit at the get go and then watch as the markets crash and correct themselves and the banks stabilized themselves and when the time is right, then exchange my remaining notes?
It's one thing to get higher rates or contract rates, but it's another thing if the money is taken from you. So these are all important decisions that I hope I have brought to your attention thru this article.
I, myself, I’m on a wait and see approach and will exchange a few notes at a time and see the markets and current banking situation.
That's why I always say, get your plans out of your head and get it down on paper. That's the only way you'll be able to play with it.
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
Different Ways to be Rich in 2019
.Different Ways to be Rich in 2019
By Ben Carlson August 1, 2019
It’s estimated only 5% of people in the United States are millionaires.
So if we’re using millionaire-status as a way to gauge wealth in this country, a lot of people are never going to get to the point where they’re considered “rich.”
But there are plenty of other ways to live a wealthy life that extend beyond how much money you have in the bank or your portfolio. And even those with a lot of money may not be considered rich when you look at other areas of their life.
Here are some ways to be rich in this day and age that go beyond money:
You have a job you enjoy. If you work a 9-5 job that means roughly 50% of your waking hours during the week are spent in the office, with your colleagues or at your place of employment. Many people put in even more hours than this.
So if you hate your employer, boss, co-workers, or career path that can be an enormous drag on your well-being.
Simply enjoying what you do, who you do it with, and the company you do it for can make for a supremely richer life than the alternative. It would be nice to pair a fulfilling career with a high paycheck but most people never find the former even if they receive the latter.
Being in control of your own time. A big paycheck is always nice but the impact wears off when you’re forced to deal with a stressful work environment, co-workers you don’t care for, or work you’re not appreciated for.
Different Ways to be Rich in 2019
By Ben Carlson August 1, 2019
It’s estimated only 5% of people in the United States are millionaires.
So if we’re using millionaire-status as a way to gauge wealth in this country, a lot of people are never going to get to the point where they’re considered “rich.”
But there are plenty of other ways to live a wealthy life that extend beyond how much money you have in the bank or your portfolio. And even those with a lot of money may not be considered rich when you look at other areas of their life.
Here are some ways to be rich in this day and age that go beyond money:
You have a job you enjoy. If you work a 9-5 job that means roughly 50% of your waking hours during the week are spent in the office, with your colleagues or at your place of employment. Many people put in even more hours than this.
So if you hate your employer, boss, co-workers, or career path that can be an enormous drag on your well-being.
Simply enjoying what you do, who you do it with, and the company you do it for can make for a supremely richer life than the alternative. It would be nice to pair a fulfilling career with a high paycheck but most people never find the former even if they receive the latter.
Being in control of your own time. A big paycheck is always nice but the impact wears off when you’re forced to deal with a stressful work environment, co-workers you don’t care for, or work you’re not appreciated for.
Everyone has aspects of their job they don’t care for but it’s hard to put a value on the ability to control what you work on, who you work with, and performing meaningful work that keeps you engaged.
Having a say in how you generally spend your time in your job is a perk not many workers enjoy.
The ability to work from anywhere. Working remotely is a relatively new phenomenon because the technology to do so effectively didn’t exist in the past.
Not only does it offer more flexibility but it can boost productivity, help people with their family life, and cut down on time spent commuting. It takes the right personality type and organizational culture to pull it off, but telecommuting can make your work and personal life so much easier.
Having a short commute to work. When looking for office space a few years ago my number one requirement was location. I wanted something as close to home as possible.
Cutting my commute down from 20 minutes to 5 minutes has made me at least 9% happier in life by not dealing with traffic and terrible drivers.
One study found adding 20 minutes to your commute makes you as miserable as receiving a 19% pay cut.
To continue reading, please go to the original article at
https://awealthofcommonsense.com/2019/08/different-ways-to-be-rich-in-2019/
Addressing the Financial Disease, Not Just the Symptoms
.Addressing the Financial Disease, Not Just the Symptoms
By Trent Hamm 10.15.19
Getting Started
When Sarah and I first hit our financial bottom, our natural response was to deal with the immediate problems.
We simply didn’t have enough cash on hand to pay our bills. At that moment, the money in our checking account wasn’t enough even to pay the bills we owed that were due before our next paycheck, even assuming we spent $0 on food or anything else in that timeframe.
We had a lot of debt – multiple car loans, a pile of student loans, a bunch of credit card debt, and some other loans, too.
We had an infant who had just added a bunch of additional expenses to our life – child care being the biggest, of course, but far from the only thing.
It was a hefty list of challenges, but we tackled them head on. I took charge of selling off a bunch of items from our closets, including some vintage sports cards and Magic: the Gathering cards and DVD box sets and video games, and used that to rapidly eliminate the worst of the debt.
We started eating all of our meals at home. We started engaging in a bunch of intense frugal “money free weekends” and 30 day challenges to curb our spending. I threw myself into freelance work and side gigs and other opportunities to make a little more money – in terms of work, there were a few years that were basically just a blur.
Unsurprisingly, we hammered a lot of that debt really quickly. We got ourselves back on track with our bills, with a nice little emergency fund to boot. We blew through paying off all of our debt in a little over a year – we were debt free a little over a year after hitting that financial bottom. Things seemed good.
Addressing the Financial Disease, Not Just the Symptoms
By Trent Hamm 10.15.19
Getting Started
When Sarah and I first hit our financial bottom, our natural response was to deal with the immediate problems.
We simply didn’t have enough cash on hand to pay our bills. At that moment, the money in our checking account wasn’t enough even to pay the bills we owed that were due before our next paycheck, even assuming we spent $0 on food or anything else in that timeframe.
We had a lot of debt – multiple car loans, a pile of student loans, a bunch of credit card debt, and some other loans, too.
We had an infant who had just added a bunch of additional expenses to our life – child care being the biggest, of course, but far from the only thing.
It was a hefty list of challenges, but we tackled them head on. I took charge of selling off a bunch of items from our closets, including some vintage sports cards and Magic: the Gathering cards and DVD box sets and video games, and used that to rapidly eliminate the worst of the debt.
We started eating all of our meals at home. We started engaging in a bunch of intense frugal “money free weekends” and 30 day challenges to curb our spending. I threw myself into freelance work and side gigs and other opportunities to make a little more money – in terms of work, there were a few years that were basically just a blur.
Unsurprisingly, we hammered a lot of that debt really quickly. We got ourselves back on track with our bills, with a nice little emergency fund to boot. We blew through paying off all of our debt in a little over a year – we were debt free a little over a year after hitting that financial bottom. Things seemed good.
However, there was still a core problem underlying all of this. Our default habits were still oriented toward spending everything we brought in, if not more. We were absolutely more mindful of how we were spending money, but our instincts were still very oriented toward spending, even as our debt went away.
During that period when we were paying down debt, I found myself alternating between being thrilled with my financial progress and then, almost in the next breath, resorting right back to those bad financial habits that put us in a bad situation to begin with. Things were going in the right direction, but for every three steps forward, there were two steps backward.
In short, we were really good at treating the symptoms, but we were completely missing the disease.
The Symptoms
The symptoms were obvious. We were in debt. We had a bunch of bills that we were unable to pay. If something bad were to happen to us in the short term, like an illness or a job loss or a car breakdown, things would get really awful really quick.
Those symptoms, just like the symptoms of a disease, were the things that would actually affect our day to day life. We could definitely feel the impact immediately from a maxed out credit card or a car breakdown that we couldn’t pay for. We felt it in terms of stress. We felt it in terms of not being able to buy groceries at the store or go out to eat. It impacted our life immediately.
Yet, those were just the symptoms.
The Disease
So, what was the disease, then?
The disease, as I see it now, was that we didn’t really have a clear idea of what we wanted out of life, and because of that, it was very easy to have our thoughts and desires become oriented toward the impulsive desires for things in the short term. The disease is a short term focus on life. The disease is living life through momentary desires and impulses.
There was a sense that we needed to “live a little,” but that sentence translated from actually having meaningful experiences to just buying things without any real rhyme or reason, just chasing the things we wanted in the moment.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/addressing-the-financial-disease-not-just-the-symptoms/
My Thoughts on Gold and Silver.
My Thoughts on Gold and Silver.
By Muhammad Ali
I have had several people contact me about my opinion on what will happen to Gold and Silver. So this article, in a way, is a follow up to my previous one, titled "Precious Metals - My Plan B".
First, let me just give you some of my background so you know that I have a bit of experience on this. I've started trading Forex, since 2000, while I was living in Canada. My first Forex course was Steven Nisson's candlestick training on VHS. I still have it and autograph books of his.
I spent a small fortune on training courses and books and from live trading experiences. I continued trading when I shifted to Malaysia in 2004 and around 2009 I opened my own Forex Company here, taught courses on Forex and trading for people as well as providing online signal services.
I have had my own traders and I did all the management for the company. I had a 15,000 square foot office in the heart of Kuala Lumpur. I had clients subscribing to my signal services from over 100 countries. I had professional services charging $500 US per month for signal services.
I've truly gone thru a lot in Forex, experimented with hundreds of robot software, known as E.A. (Expert Advisors) and trading systems and indicators. Then I just had enough of it all and stopped, but God had his own plan and brought be back to Forex via the Dinar, so now I just deal with the physical currency, less stressful.
My Thoughts on Gold and Silver.
By Muhammad Ali
I have had several people contact me about my opinion on what will happen to Gold and Silver. So this article, in a way, is a follow up to my previous one, titled "Precious Metals - My Plan B".
First, let me just give you some of my background so you know that I have a bit of experience on this. I've started trading Forex, since 2000, while I was living in Canada. My first Forex course was Steven Nisson's candlestick training on VHS. I still have it and autograph books of his.
I spent a small fortune on training courses and books and from live trading experiences. I continued trading when I shifted to Malaysia in 2004 and around 2009 I opened my own Forex Company here, taught courses on Forex and trading for people as well as providing online signal services.
I have had my own traders and I did all the management for the company. I had a 15,000 square foot office in the heart of Kuala Lumpur. I had clients subscribing to my signal services from over 100 countries. I had professional services charging $500 US per month for signal services.
I've truly gone thru a lot in Forex, experimented with hundreds of robot software, known as E.A. (Expert Advisors) and trading systems and indicators. Then I just had enough of it all and stopped, but God had his own plan and brought be back to Forex via the Dinar, so now I just deal with the physical currency, less stressful.
But during my years of intense study of charts, I learned about a man named Tom Williams. Here's a short YouTube video and Tom's tells you some very important psychological aspects of the markets and people.
Smart Money Drives the Financial Markets?
https://www.youtube.com/watch?v=6jwEwlZnSFY&feature=emb_logo
Now, just to further tell you who Tom is, he's a syndicate trader or professional trade or the Smart Money. They all mean the same thing, these are the people who move the markets, who manipulate and control the markets via the media.
I bought all his books, his courses and his software and studied intensely and learned a lot. One thing I did learn, is the charts lie to you, candlesticks lie to you, the charts do not show the movement of the smart money.
These people must have a Klingon cloaking device because they are invisible to the eyes of the people. There is ONLY 1 indicator that the smart money cannot hide from, the volume indicator and interestingly enough, 99% of all the traders out there do not use the volume indicator nor understand how it works. But this is the ONLY indication to know when the Smart Money is beginning to make their move.
I've witnessed first-hand the manipulation of the Smart Money and the manipulation of the brokers as well. The difference with a person's trading platform as compared to the smart money is you see your trades taking place, whereas they see everyone's trades taking place. So they have the added advantage over us.
So now, fast forward, 19 years later, that gives you a brief background into my experience, so let's get into today's article.
I am a firm believer in Gold and Silver. They are and will be the money of the future that is without any doubt. If you take back anything from my article today, it's that, after the RV, you MUST buy some physical quantities of Gold and Silver. This is the very reason why I added the precious metals tab in my Currency Exchange Planner, as I believe your exchange plans should or must include gold and silver.
The difficulty with most people today, including myself, we lack the capital to buy any large amounts of these precious metals, but all that will change with the RV. I have educated my group to invest into these currencies, that we all hold, and after the RV, you'll now have the capital to secure more precious metals.
Between the two metals my preference has always been towards silver and I am sure we will one day see the two metals at par. Silver is in much more of a shortage than gold and also more of a demand.
Thru my study of Forex and the smart money what I've come to realize the hard way, the markets are manipulated and it's not a level playing field.
And, thru my study of charts and breakouts and again following the smart money, here's what I believe will happen.
Since 2014, I have said you will not see gold and silver go anywhere until the RV happens. Until that point, you will see these two metals just bounce in a range, which is what they have been doing for the past 5 years. Recently you've seen gold starting going up but it's still not going anywhere, it's still controlled.
When the RV happens, you will see both start to shoot up, the fake media will jump on it with their propaganda pushed by the smart money and this is directed to the people to get on the bandwagon and buy gold and silver, to get in while the getting is still good before it shoots thru the roof. All this is planned, as with what Tom Williams said in the video above.
What I suspect will happen is this will be a false breakout. If you're studied FX charts and triangles you'll know what I mean about breakouts and false breakouts. The Smart Money are manipulating the prices making people jump in, making them believe that the gold prices have broken out of the range and now moving up, they'll raise the price a few hundred pips, believe me, they can do it anytime they feel like it.
What I predict will happen, is that after a lot of people join into the buying streak and feeling they are comfortable and happy with their investment, then out of greed, the people will try to find more or borrow more money to invest in gold and silver.
The smart money will know the timing, and then they'll pull the rug right out from under everyone and will drop the price by 50% or more in the span of 1 hour, it'll be a sudden drop and you'll see silver prices and gold prices even lower than what it is today. It would happen too fast to be able to do anything about it. That, in essence, is a false breakout.
The fake propaganda media will again get on with telling everyone to get out before metals hit rock bottom. All these fake news propaganda created by the Smart money.
For those buying physical will be alright, as they own the physical gold or silver bullion some may panic and sell their bullion and some will still hold on to it.
Those trading gold and silver online will be wiped out, by margin calls or stop losses triggered. These are the people the smart money is targeting. Millions of people will be wiped out financially.
Once the price is dropping and has dropped the smart money will be there to buy up at dirt cheap prices that people once paid a hefty price for. As Tom said in the video, this is what they do, when the news says to sell, the smart money are buying.
Now, why do I believe this will happen the way? Well, this scenario has happened over and over and over again with Forex currencies, commodities, stocks and will continue to happen.
I've seen it, I've gone thru it, and it adds an enormous amount of stress to your mind and body. The smart money is masters at manipulation and they do not give a ** about you.
That's why they say 98% lose their money in Forex and only 2% make money, because they don't understand how the smart money trades and they don't trade with the smart money. If you trade against the smart money you'll surely lose it all.
All this will just be a game to them, another opportunity to take your money and I believe where there is opportunity for the smart money to do it, they definitely will.
After the false breakout and the precious metals drop, millions were wiped out from their trading positions on gold and silver, the smart money are buying once again and will then move the prices of gold and silver higher and higher and higher. Remember, I said, this is all but a mere game to them.
They care not if you are wiped out and crushed. Their egos are so high; they are so full of themselves that they will do it just to show the world that they can.
So what I have told my group, is once the RV happens, we have time to exchange, then we watch the prices of gold and silver climb. If you want to buy, you can also, but make sure you buy the physical bullion and then just hold on to it. When the prices drop by 50% or more, that's the time to go all out or all in, depends on your viewpoint and buy what you can but buy according to your plan.
Thing may happen very quickly and very fast after the RV. That's another reason why it's advantageous for you at this point to know and keep tabs of where to buy gold and silver online and thru retail outlets.
As when the prices drop, some of these dealers may stop selling, until the markets stabilize or may be competing with millions of other buyers so you need to act quickly.
Technically, these dealers paid a higher price for their stock, so if the price drops 50%, it's only logical that they will be inclined to stop all sales, as they would be losing money themselves by selling the metals at low prices. So you need to keep what I just said in mind.
If gold and silver drops by 50% in 1 hour, for sure the dealers will put a hold on selling. That's why settling some debts and things after RV, should be a second priority, monitoring other opportunities as getting in on Gold and Silver as they begin their decline to lower prices should be your first priority.
This is why it's so very, very, very important to plan and have a plan. In my exchange planner software, in my gold and silver tab, you can enter your places where to buy the precious metals. So it's all part of your planning.
Now, I am going to share with you something that I plan to do to cover myself. So I said, I expect gold and silver to drop by 50%, right? Then I said, at these low prices dealers will stop selling, right? So then, that means there's no opportunity, right? WRONG.
This is what I plan to do at the bottom out of the prices. If I cannot get physical, I will buy gold and silver online. You may not be able to buy the physical but you can buy it virtual or digital.
Now that I've enter the markets at bargain basement prices, I will wait and ride the wave back up to the $5000 or $50,000 an ounce price to whatever it may go to. As it's going up to higher levels, I will sell off some of the trades and use that money to buy the physical.
So if I cannot buy the physical metals at the low prices, I most certainly can buy online via trading and then at a later date in the future, sell off and convert to physical, where there is a will, there is a way.
So there you go, this is what I expect will happen. Whether it happens this way or not, only time will tell, but the important aspect is please include gold and silver as part of your planning as part of your Plan B. If you believe Gold and Silver will happen to rise some other way then that's fine but go back and please read the title of this article.
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
www.CurrencyExchangePlanner.com
The No. 1 Planning Tool for the Dinar community.
Available in Desktop PC/MAC and Mobile App (Android & IOS) versions
https://www.currencyexchangeplanner.com/article-23-my-thoughts-on-metals
Precious Metals - My Plan B
.Precious Metals - My Plan B
By Muhammad Ali
You may have heard me refer to precious metals as my Plan B, in several of my articles. If you haven't read any of my articles you can read them on my website, unless of course, you're on my website right now reading this article, therefore, just ignore everything I just said. ;)
OK back to the subject, precious metals and why do I consider them as my Plan B. The reason for this article clarification came about because someone emailed me, asking why do I consider precious metals as my Plan B.
Before we get into that, let me just clarify something else, what do I refer to as precious metals? Gold and Silver are the obvious, but I would also add in there stones and other metals as well. For stones, one may debate the risks involved as the purchase and re-sale values may be far apart, especially in the case of diamonds. Well for general purposes we'll just stick to gold and silver.
We can all agree that a Plan B is a back up plan, there's no question about that.
Precious Metals - My Plan B
By Muhammad Ali
You may have heard me refer to precious metals as my Plan B, in several of my articles. If you haven't read any of my articles you can read them on my website, unless of course, you're on my website right now reading this article, therefore, just ignore everything I just said. ;)
OK back to the subject, precious metals and why do I consider them as my Plan B. The reason for this article clarification came about because someone emailed me, asking why do I consider precious metals as my Plan B.
Before we get into that, let me just clarify something else, what do I refer to as precious metals? Gold and Silver are the obvious, but I would also add in there stones and other metals as well. For stones, one may debate the risks involved as the purchase and re-sale values may be far apart, especially in the case of diamonds. Well for general purposes we'll just stick to gold and silver.
We can all agree that a Plan B is a back up plan, there's no question about that.
So one may assume that the precious metals you purchased is your back up plan, in case of a market crash or you've blown too much of your wealth and need to liquidate your assets to get back on track. If that's the case, that's fine.
However, I take it on a different level and I apply my precious metals as a Plan B to my investments.
I said, in a previous article, before getting involved in investing, determine your lifestyle choice for living after the RV. Do you want a simple work-free lifestyle or do you want to join Robin Leach's Lifestyles of the Rich and Famous? I used to love watching that series back in the late 80's.
In my viewpoint, it is important to determine your lifestyle first, the reason for this, it will determine how much you want to expose yourself in the markets. If you want a simple lifestyle then there's no point going Gung Ho and investing a huge amount. You'll be putting yourself at a higher risk in case things back fire on you and you suffer loses. Let's put some numbers down so the picture becomes crystal clear.
After our exchange, let's we say had $5 million and we choose to have a simple lifestyle and target to make $5,000 per month, in our mind, this is enough for us to have a work-free lifestyle.
If you invested $1,200,000 into a fixed deposit account making 5% per year, this will give you $60,000 per year or $5,000 per month. Bingo! And on a plug note: My Currency Exchange Planner software has an Investment tab to help you plan with this.
So if that is our target, then we should invest slightly above that $1.2 million target line, let's say $1.5 million. This gives us a little buffer room. If we invested our entire $5,000,000 but our target was only to make $5,000 then we have over exposed ourselves into the markets with a risk of losing $3.5 million if things turned to the worst.
In this example, if we had $1.5 million of our $5 million invested, it means we have $5,000 coming in every month and we still have $3.5 million in our bank account. This plan will free yourselves of anxiety, stress and Sudden Wealth Syndrome. Of course, you still need to apply money management to the $3.5 million.
Don't forget what I advised in a previous article to compound your profits for a few years, maybe 3 to 5 years. So your investment account can grow and give you a buffer zone to handle any losses that may or may not occur.
So if your lifestyle target is higher then you'll need to raise those numbers as required, but keep in mind your targets should equate to the exchanged amount after RV. You won't be able to live a Robin Leach's lifestyle if your exchanged amount was only $800,000. Please apply all your senses to your management of money, especially the greatest one, common sense.
Can you now see why it's important to determine your lifestyle first? You're lifestyles can change and adapt, that's entirely up to you. But your after RV lifestyle is directly connected to your investing.
Before we move on, something very important about Fixed Deposits, they are Guaranteed returns. Unlike investment in the stock market or commodity market, fixed deposits are not a risky investment as they do not depend on fluctuating market rates.
Investors can rest assured that their investments are safe and will be getting back a guaranteed amount at the end of the tenure. Especially if the bank gives you a FREE toaster for signing up, right! On a serious note, enter your fixed deposit amounts in the Low investment category of the Investment tab in my exchange planner.
Now, let's get into Plan B.
What I am thinking and how I connect my precious metals to my Plan B, is like this. The precious metals are a back up to my investments. If the investments go bad, I won't replace the lost funds from my bank balance but from my precious metals.
I would sell off the required amount in gold or silver to replenish my investment account. The goal is to always have $1.5 million in that account, as per my plan.
Now, what I would do, is if I wanted to invest $1.5 million into the market, I would double that amount as my gold and silver purchase amount, meaning: If I wanted to invest $1.5 million I would purchase $3 million in gold and silver (combined), so what that means is my investing allocation combined with my precious metals would be $4.5 million.
In the example above, if we only had $5 million after exchange then, of course, my precious metals budget would be bumped down or my lifestyle or both. Another CEP plug: My exchange planner has a precious metals planning tab that can help you plan your budget.
My thinking here, is to offset and minimize my investing stress by having a fund (in my case, my precious metals) as a back up in case there are losses. So I do not have to always worry, will I make money or not?
If I lost money, my reaction would be, ok fine, I have a reserve fund option in place for that. So then, I can go about enjoying my day and my life without having to worry deeply about that.
Going back to the issue of compounding, you may also want to consider compounding a different way and using the profits from your investing for the first 3 to 5 years as top ups to your precious metal purchases.
So then, I would still invest my $1.5 million but the $60,000 earned per year I would use that amount to buy more precious metals and increase my Plan B, until I have the 1:2 ratio. Remember this ratio is not written in stone, you can lower or higher the precious metals account as to what makes you feel comfortable.
Our target is to have a WORK-free and WORRY-free lifestyle. You've all read about work-free lifestyles and I have even mentioned it above but I hope my article today has taught you the bases and importance of adding into that a WORRY-free lifestyle.
You've got all kinds of options, you just got to start getting your plans down on paper and out of your head. My Currency Exchange Planner was perfectly designed for this.
So with that note, I will end my article, I hope it has been of interest to you and your planning after the RV.
God bless us everyone and may we all be part of the exchange process and what comes afterwards. Amen.
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
www.CurrencyExchangePlanner.com
The No. 1 Planning Tool for the Dinar community.
Available in Desktop PC/MAC and Mobile App (Android & IOS) versions
https://www.currencyexchangeplanner.com/article-22-precious-metals-plan-b
Preparing Our Children to Inherit Wealth
.Preparing Our Children to Inherit Wealth
By Muhammad Ali
“The future depends on what you do today” Gandhi
Now this is a vast subject and a complicated one as there are many factors involved as to the amount of wealth transfer that will be left behind, the number of children involved and their age levels.
When you google the topic, you will find many websites related to preparing children for wealth, however, I believe there is a difference between preparing our children for wealth and to inherit wealth.
As I said in a previous article, one of the first things we should do, after RV, is setup our Team and once our children reach the age of maturity (usually around 25 years of age) we will introduce them to the Team.
So our estate planning attorneys and financial advisors are ready, willing, and able to help prepare our children to inherit our wealth. Yet many of these plans will fail even in cases where all the documents are in place. Failure does not mean that our children will not receive the money.
It means that the money may create stress and resentment among siblings and other family members instead of the benefits we may have intended.
Preparing Our Children to Inherit Wealth
By Muhammad Ali
“The future depends on what you do today” Gandhi
Now this is a vast subject and a complicated one as there are many factors involved as to the amount of wealth transfer that will be left behind, the number of children involved and their age levels.
When you google the topic, you will find many websites related to preparing children for wealth, however, I believe there is a difference between preparing our children for wealth and to inherit wealth.
As I said in a previous article, one of the first things we should do, after RV, is setup our Team and once our children reach the age of maturity (usually around 25 years of age) we will introduce them to the Team.
So our estate planning attorneys and financial advisors are ready, willing, and able to help prepare our children to inherit our wealth. Yet many of these plans will fail even in cases where all the documents are in place. Failure does not mean that our children will not receive the money.
It means that the money may create stress and resentment among siblings and other family members instead of the benefits we may have intended.
There have been studies on wealth transfer that show children are not prepared to receive such wealth. Rarely are the failures due to legal, tax, or investment advice.
The failures to prepare our children to inherit our wealth are usually the result of a breakdown in trust and communication among family members. So may be this is where we need to start.
The solution to prepare our children to inherit our wealth is to have open, honest communication about money with our family members before they inherit the assets. This does not mean that they need to know how much money we have or see copies of our financial statements or financial plan.
The key is that our children appreciate the challenging work and sacrifice that was involved in earning and saving the money, in otherwise, all those years of waiting for the RV. We need to pass on our values along with the money.
So the next obvious question would be, how do we pass our values to our children. After doing a lot of reading and research on this subject, I realized there is a simple way we can do this and that's by sharing our RV stories with our children. The years of waiting, the stress, the anxiety of being close and hearing very soon and "this weekend".
The motivation of holding on to the currencies when we could have sold them off to have more food on the table. The sacrifices that we made to buy the currencies and how and where we stored them.
May be, some even lost or had to sell off some of their currencies. May be for some, their RV stories are more serious, with bankruptcies and being evicted and living in their cars for an extended period of time. I have a couple in my group in Malaysia that has debtors who are threatening with legal actions and even threatening with bodily harm, if their money is not returned. These matters are extending to Police reports and courts and what amazes me, these are all family involved issues.
And then there are some others, may be living on budgets and limited choices of meals and/or eating out. Some losing their jobs but still wanting to hold on to their currencies or some not able to buy extra gifts for the children around celebration times.
In some cases, may be tensions between husband and wife over buying the currencies, so whatever the cases may be, we all have stories of hardships and trials of waiting for the RV.
So this is my belief and I believe the best way to teach our children about money is through our RV personal stories. These are the memorable moments and lessons in our lives. Our children will remember the personal beliefs that motivated and drove us to take risks, save, and invest for the future.
It is through an understanding of those transformative moments in the family’s history that our children will begin to appreciate values and develop a feeling of responsibility that comes with their family’s financial success.
And something important to remember as parents we cannot simply impose our beliefs, values, and priorities on to our children. The children should be heard and respected, and they should have a role in shaping the family’s values and philanthropic focus. Consider asking your children questions instead of telling them how they should act or what their financial priorities should be.
Successful wealth transition cannot be built overnight or through a single action or trust document, but instead requires open, ongoing communication and education. It will take time.
And on that note, I will conclude this article.
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
www.CurrencyExchangePlanner.com
The No. 1 Planning Tool for the Dinar community.
Available in Desktop PC/MAC and Mobile App (Android & IOS) versions
https://www.currencyexchangeplanner.com/article-19-children-and-wealth
Reminiscing, Reflection, and What Really Matters
Reminiscing, Reflection, and What Really Matters
Into a Cloud
Ryan Kelly | November 13, 2019
MY GREAT-UNCLE, Jerry Kelly, was an American pilot in the Second World War. On Oct. 20, 1944, he was flying a close-support mission over Germany when his P-47 Thunderbolt was hit by anti-aircraft fire. After he radioed that he had smoke in the cockpit, his plane began losing altitude and was last seen disappearing into a cloud. Jerry was 20 years old.
More than 71 years later, a UPS carrier delivered a blue box to my home. The box contained a treasure trove—220 handwritten letters Jerry wrote home from the war. The box was a gift from my dad’s cousin, Phil, who spared no expense in shipping costs and tracked the package every hour to ensure safe delivery. Given my strong interest in Jerry’s life, Phil decided I should be the family guardian of the letters.
I’ve read each letter more than once. I now know Jerry better than most people I deal with every day. People I regularly interact with don’t work out their deepest thoughts and feelings in handwritten letters, and—even if they did—they wouldn’t let me read them.
Jerry’s letters have provided me with many valuable life lessons. Here are seven of those lessons:
1. Saving money brings focus to life. As a pilot, Jerry made a good wage and spent less than he earned. On Oct. 8, 1944, he wrote a letter to his mom expressing the satisfaction he felt from seeing his bank account balance reach $1,200, equal to $17,500 in today’s dollars. Jerry planned to study accounting at the University of Utah upon his return from the war.
Reminiscing, Reflection, and What Really Matters
Into a Cloud
Ryan Kelly | November 13, 2019
MY GREAT-UNCLE, Jerry Kelly, was an American pilot in the Second World War. On Oct. 20, 1944, he was flying a close-support mission over Germany when his P-47 Thunderbolt was hit by anti-aircraft fire. After he radioed that he had smoke in the cockpit, his plane began losing altitude and was last seen disappearing into a cloud. Jerry was 20 years old.
More than 71 years later, a UPS carrier delivered a blue box to my home. The box contained a treasure trove—220 handwritten letters Jerry wrote home from the war. The box was a gift from my dad’s cousin, Phil, who spared no expense in shipping costs and tracked the package every hour to ensure safe delivery. Given my strong interest in Jerry’s life, Phil decided I should be the family guardian of the letters.
I’ve read each letter more than once. I now know Jerry better than most people I deal with every day. People I regularly interact with don’t work out their deepest thoughts and feelings in handwritten letters, and—even if they did—they wouldn’t let me read them.
Jerry’s letters have provided me with many valuable life lessons. Here are seven of those lessons:
1. Saving money brings focus to life. As a pilot, Jerry made a good wage and spent less than he earned. On Oct. 8, 1944, he wrote a letter to his mom expressing the satisfaction he felt from seeing his bank account balance reach $1,200, equal to $17,500 in today’s dollars. Jerry planned to study accounting at the University of Utah upon his return from the war.
5 Financial Tasks To Tackle Now
5 Financial Tasks To Tackle Now
5 Financial Tasks You Should Tackle by the End of 2019
Posted by News Team | Nov 23, 2019 | Personal Finance
A task without a deadline is just wishful thinking.
Sometimes, you can get away with procrastinating. If you never get around to alphabetizing your spices, no one’s life will change. But putting off some tasks could have a huge impact on loved ones.
The close of the year is a good time to set some firm deadlines to make sure you won’t leave a financial mess for people you love if you unexpectedly die or become incapacitated. Consider putting these items on your to-do list with a Dec. 31 due date:
1. Check Your Beneficiaries
If you need convincing that updating beneficiaries is important, consider the case of David Egelhoff, a Washington state man who died two months after his divorce was final in 1994.
Because he had not changed his beneficiaries, his life insurance proceeds and pension plan were paid to his ex-wife rather than his children from a previous marriage. The children sued, and the case went all the way to the U.S. Supreme Court, which ruled in 2001 that the beneficiary designations had to be honored.
5 Financial Tasks To Tackle Now
5 Financial Tasks You Should Tackle by the End of 2019
Posted by News Team | Nov 23, 2019 | Personal Finance
A task without a deadline is just wishful thinking.
Sometimes, you can get away with procrastinating. If you never get around to alphabetizing your spices, no one’s life will change. But putting off some tasks could have a huge impact on loved ones.
The close of the year is a good time to set some firm deadlines to make sure you won’t leave a financial mess for people you love if you unexpectedly die or become incapacitated. Consider putting these items on your to-do list with a Dec. 31 due date:
1. Check Your Beneficiaries
If you need convincing that updating beneficiaries is important, consider the case of David Egelhoff, a Washington state man who died two months after his divorce was final in 1994.
Because he had not changed his beneficiaries, his life insurance proceeds and pension plan were paid to his ex-wife rather than his children from a previous marriage. The children sued, and the case went all the way to the U.S. Supreme Court, which ruled in 2001 that the beneficiary designations had to be honored.
You’re typically prompted to name beneficiaries when you sign up for a 401(k) or other retirement account. Beneficiaries also are usually required when you buy annuities or life insurance. You often can check and change beneficiaries online, or you may need to call the company to request the appropriate form.
2. Review Pay-On-Death Designations
You may not have been required to name beneficiaries when you opened your checking account or a non-retirement investment account. Instead, financial institutions may offer a “pay on death” option.
This allows you to name a beneficiary who can receive the money directly. Otherwise, the account typically has to go through probate, the legal procedure to distribute your property after you die.
Some states also have “transfer on death” options for vehicles and even real estate. Like pay-on-death accounts, these options allow you to pass property directly to heirs without the potential delays and costs of probate.
Beneficiaries can be added to vehicle registrations in Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Illinois, Indiana, Kansas, Maryland, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Texas, Vermont and Virginia, according to self-help legal site Nolo. To add or change a beneficiary, you apply for a certificate of car ownership with the beneficiary form.
Transfer-on-death deeds for real estate are available in Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Hawaii, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Virginia, Washington, West Virginia, Wisconsin and Wyoming, according to legal site RocketLawyer.
To add or change a beneficiary, the deed must be submitted to the appropriate county recorder.
To continue reading, please go to the original article here:
Your Life or Your Money
.Your Life or Your Money
By Anna Von Reitz
We all need to understand that FRN's are not your money. Never were. Federal Reserve Notes are I.O.U.'s that belong to the Federal Reserve. They are private script, just like when you (might) give someone an I.O.U.
They are responsible for paying it, but with what?
They haven't used actual money since 1933.
They've just passed debts around "as" money, and passed off their debts as your debts, as the "presumed" co-signers purportedly backing it.
They've inflated this currency 98% and this whole past month, they poured another trillion "dollars" of debt into the stock market, to prop it up at "your" expense.
This serves to further in-debt your family and bail out the corporations and banks at your expense. It also devalues whatever serves as currency yet some more, which shows up as inflation of prices at the gas pump and food stores and everywhere else.
We've seen close to a 30% price increase for many food items here in Alaska in the past three months alone. Nobody is talking about it, but, if you are paying attention or living on a limited income, you are feeling it and your discretionary income is evaporating. Worse, the value of any savings or retirement you have is evaporating, too.
Their excuse for propping up the stock market at your expense is that they have invested heavily in all these corporations "for" you, using your money. So now they are throwing more of your money at these corporations and at the stock market, also "for" you, when in fact those stocks are grossly overvalued already and the money markets and pension funds --- which they also invested in "for" you --- are based on "derivatives" and phony electronic titles and so-called "mortgage backed securities"---which are also bogus.
We have, unknown to us, been living in the Land of Oz for almost a century.
So, here's the picture: we are the actual, factual primary creditors of these banks, but they are pretending that we and all our earthly assets are instead "donated collateral" backing their debts in a commonwealth (communist) system of government that is in fact foreign to us.
Your Life or Your Money
By Anna Von Reitz
We all need to understand that FRN's are not your money. Never were. Federal Reserve Notes are I.O.U.'s that belong to the Federal Reserve. They are private script, just like when you (might) give someone an I.O.U.
They are responsible for paying it, but with what?
They haven't used actual money since 1933.
They've just passed debts around "as" money, and passed off their debts as your debts, as the "presumed" co-signers purportedly backing it.
They've inflated this currency 98% and this whole past month, they poured another trillion "dollars" of debt into the stock market, to prop it up at "your" expense.
This serves to further in-debt your family and bail out the corporations and banks at your expense. It also devalues whatever serves as currency yet some more, which shows up as inflation of prices at the gas pump and food stores and everywhere else.
We've seen close to a 30% price increase for many food items here in Alaska in the past three months alone. Nobody is talking about it, but, if you are paying attention or living on a limited income, you are feeling it and your discretionary income is evaporating. Worse, the value of any savings or retirement you have is evaporating, too.
Their excuse for propping up the stock market at your expense is that they have invested heavily in all these corporations "for" you, using your money. So now they are throwing more of your money at these corporations and at the stock market, also "for" you, when in fact those stocks are grossly overvalued already and the money markets and pension funds --- which they also invested in "for" you --- are based on "derivatives" and phony electronic titles and so-called "mortgage backed securities"---which are also bogus.
We have, unknown to us, been living in the Land of Oz for almost a century.
So, here's the picture: we are the actual, factual primary creditors of these banks, but they are pretending that we and all our earthly assets are instead "donated collateral" backing their debts in a commonwealth (communist) system of government that is in fact foreign to us.
The Land of Oz.
The truth is easy to ascertain. We have literally millions of Witnesses. Nobody outside the environs of Washington, DC, was ever told what was going on. Not only were we not told a word about any of this, we were deliberately misled and lied to and coerced under color of law. By our own employees.
To make things more interesting, the criminals in back of all this fraud and racketeering, sought bankruptcy protection in 2009, and as a result, in 2011, all the "Federal Reserve Notes" became utterly worthless, backed by nothing at all but the good faith of Congress --- the same rogues that created the situation in the first place.
Please bear in mind that Federal Reserve Notes are NOT "United States Dollars" nor "United States Notes", either. You must pay attention -- close attention -- to what you are holding in your hands. And in your bank accounts.
So, there you are, misidentified as a Municipal "citizen of the United States", on the hook as the "presumed" co-signer for all these debts, and according to them, all your assets should be forfeit to their creditors, most especially, the Communist Chinese.
Enter two factions of the "US" military and a Wild Card ---- one faction, the Municipal DOD, is happy to see America overrun and sacked for debts it doesn't owe, because the alternative is paying their own debts. They and their endlessly criminal US NAVY are on our backs, as if it were our fault that their Roman Government is led by criminals and schmucks.
The Territorial Department of Defense is stuck in the middle, having a contract and obligation to defend us. That's the second military faction.
And then, there's the Wild Card. This is basically one man, who they shafted many times too often. He has, all by himself, locked down the hard asset accounts of the world and nothing that they can do is of any avail.
There they are, wiggling like dying bugs, or vampires, an encrypted computer program straight through their hearts, trying to convince us after all that has gone on, that digital "currency" is the way to go.
If it were, they wouldn't be in the position they are in, would they? Held captive by a single computer geek.
Digital currency is just more fiat-on-speed, having even less connection with reality. We would be better off conducting business using plastic clothes pins as tokens. At least such objects have actual substance and a practical use.
To continue reading, please go to the original article here:
https://inteldinarchronicles.blogspot.com/2019/11/anna-von-reitz-your-life-or-your-money.html
How to Protect Your Finances in Case of a Recession
.How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
Now is an excellent time to add to your emergency fund. Start an automatic transfer to your savings account with every paycheck, and look for other ways to beef up that fund.
If you don't have an emergency fund that could handle a lengthy unemployment, there's no need to panic. Remember: anything you can put away will be helpful if you do find yourself with a pink slip.
Create Your Plan B Budget
Another proactive step to take is to map out what would change about your spending habits if you were to lose your job or take a pay cut. Going through your current budget and identifying the items you could cut can help reassure you that your emergency fund will weather a loss of income.
You could even challenge yourself to make some small cuts now and see if you miss your former expenditures. That can free up some extra money (more for the emergency fund!) and help you feel more in control of your spending now and in the future.
Attack Your Credit Card Debt
If you're carrying a balance on your credit cards, now is a good time to get aggressive with your payoff plan. Carrying debt into a recession could make for an overwhelming burden if you experience a pay cut or a layoff. You'd hate to find yourself unable to pay your credit card bills — and have to deal with debt collectors — when you're already feeling financially stressed.
To continue reading, please go to the original article here:
https://www.wisebread.com/how-to-protect-your-finances-in-case-of-a-recession?ref=relatedbox
The 3 Things To Build Wealth
The 3 Things To Build Wealth
By Steve Adcock
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot fo time. Let me explain.
How to build huge wealth in 2019
First, let’s set the record straight about high incomes.
If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.
Just. Plain. Wrong.
The 3 Things To Build Wealth
By Steve Adcock
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot fo time. Let me explain.
How to build huge wealth in 2019
First, let’s set the record straight about high incomes.
If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.
Just. Plain. Wrong.
It makes us feel better to believe that we’ll never be able to retire early without a huge income, but that’s just not true. The truth is a high-income job often comes with a set of assumed requirements that keep high-income earners churning on the hamster wheel for years.
You might be surprised at how many high income earners still live paycheck to paycheck just to maintain their high income job.
The strategies that I’m about to talk about apply to anyone – with any level of income. Big incomes or small, building wealth ultimately comes down to a small set of insanely basic principles.
Principle #1: Invest Your Cash
Nobody ever got rich just by “saving money“. Those articles about how to save money by ordering water instead of a soft drink in restaurants? Yeah, that’s nonsense. That’s not how we build wealth.
Wealthy people build wealth by devoting years of their life to investing their cash in appreciating assets.
Wow. Okay, what does this mean? It means we’re not just putting our money in a bank. That only makes banks rich. Instead, we’re placing additional value on our cash by investing it in assets that gain value over time.
Historically, the stock market builds serious wealth for investors. This chart from Macro Trends shows how the Dow Jones has performed over the years. Over time, Wall Street investors tend to build wealth because their investments appreciate. They go up in value as this chart demonstrates.
Others, like Chad Carson, invest in real estate to build wealth. Real estate investors buy properties to rent to companies and/or families.
In whatever way you choose to save your money in 2019, investing your cash in appreciating assets builds wealth over time.
How much should you invest? There isn’t a one-size-fits-all approach.
I always encourage new investors to talk to a financial advisor to develop an investment strategy that works best for them. But if you’re looking for high-level advice:
If you don’t have an emergency fund, start one now. The immediate goal is to build up at least three months of living expenses to account for an unexpected job loss or health issue.
Take advantage of company-sponsored 401ks. Many companies match contributions made by their employees. This is free money. And, 401ks reduce your taxable income. Talk to your company about investment opportunities. They might even provide free financial advisor services.
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