Get ready for the “Work From Home” Tax
.Get ready for the “Work From Home” Tax
Notes From The Field By Simon Black - November 16, 2020 Sovereign Valley Farm, Chile
Once upon a time, long long ago in a dream world far, far away, banks actually used to be capitalists. They were wealth creators. They wanted to do business with their customers. They facilitated important trade and commerce. They acted responsibly and conservatively with other people’s money.
Now it’s a totally different story.
Banks seem to routinely steal from their customers. They gamble our savings away on ridiculous investment fads, treat us like criminal suspects, bury us in an absurd bureaucracy, and then charge us fees for the privilege of working with them. And to add insult to injury, many banks seem to have become full-blown Marxists.
Get ready for the “Work From Home” Tax
Notes From The Field By Simon Black - November 16, 2020 Sovereign Valley Farm, Chile
Once upon a time, long long ago in a dream world far, far away, banks actually used to be capitalists. They were wealth creators. They wanted to do business with their customers. They facilitated important trade and commerce. They acted responsibly and conservatively with other people’s money.
Now it’s a totally different story.
Banks seem to routinely steal from their customers. They gamble our savings away on ridiculous investment fads, treat us like criminal suspects, bury us in an absurd bureaucracy, and then charge us fees for the privilege of working with them. And to add insult to injury, many banks seem to have become full-blown Marxists.
I started noticing this last year when a number of bank CEOs, along with heads of other major corporations like Apple and General Motors, declared that they would no longer make business decisions prioritizing what’s in the best interest of their companies’ shareholders.
Just a reminder-- shareholders OWN the company. The CEO works for the company.
And yet these CEOs, who essentially work for their shareholders, have unilaterally decided that shareholders are no longer the priority.
This is a common theme in politics as well, with Bernie Sanders, AOC, and Joe Biden calling for an end to “shareholder capitalism.”
Don’t get me wrong-- being a responsible corporate citizen, treating customers well, taking good care of employees, etc. are all obvious things that are beneficial for any business long-term, and hence beneficial for the shareholders.
The key issue behind this movement, however, is the belief that shareholders shouldn’t be able to call the shots any longer.
They believe the government gets a say who should / should not be on a corporate board. And the public (i.e. the Twitter mob) gets a say what a company should / should not do.
Everyone else gets to tell you what you’re allowed to do with your own private property, i.e. your shares in the company. It’s no longer up to you.
This is decidedly anti-capitalist; it’s effectively public ownership of what’s supposed to be private property. Yet banks seem perfectly willing to go along with this new ethos.
And now they have another feather in their cap:
Just a few days ago, Germany’s Deutsche Bank (one of the largest banks in the world) released a paper proposing that people who have the ‘privilege’ of working from home should have to pay a 5% tax to subsidize people who can’t.
This is a ‘work from home’ or ‘remote worker’ tax. The report claims that this tax has been needed for years, but “Covid has just made it obvious.”
So, regardless of your circumstances-- even if you want to go back to the office but aren’t able to because your company sent everyone home-- Deutsche Bank thinks you should have to pay up.
The report is even borderline insulting to remote workers, saying that they’re “contributing less to the infrastructure of the economy whilst still receiving its benefits.”
So apparently all of us working from home are just lazy, good-for-nothing bums in the eyes of Deutsche Bank.
This ‘research report’ seems more like something out of Communist student newspaper, not one of the world’s biggest financial institutions.
If these people feel guilty that their remote work arrangements are unjust, there’s nothing preventing them from giving their entire paychecks away.
But for whatever reason they feel entitled to demand a pound of flesh from everyone else’s paycheck too.
Yet this is the world we live in now-- where even the banks have become Marxists and every idiot feels empowered to propose public policy.
And it’s also why TAX PLANNING must absolutely be part of your Plan B… which may soon become your Plan A.
This is absolutely the case if you live anywhere in the West: your taxes are going up. It’s already been happening in many cases at the local level.
In the Land of the Free, we’ve seen income taxes, property taxes, sales taxes, etc. increase across the country.
The People’s Republic of California has even proposed a wealth tax, plus an exit tax for people who flee the state.
And that’s before considering the impact of tax increases at the national level.
The incoming presidential administration in the US has already pledged to raise taxes, including corporate profits tax, individual income tax, and capital gains tax.
It doesn’t matter that the evidence strongly opposes these decisions.
For example-- over the past several decades, the US federal government’s tax revenue has consistently been about 16% to 18% of GDP, year in, year out.
In other words, the government’s ‘slice’ of the economic pie is 16-18%.
During that period, tax rates have been all over the board, from as low as 28% (for the highest individual rate) to more than 90%.
And yet the government’s slice of the pie has remained nearly constant.
The lesson here is pretty obvious: no matter how high, or low, tax rates go, the size of the slice relative to the rest of the pie remains the same.
So rather than try to make your slice bigger, why not focus your efforts (and tax policy) on what might create the biggest pie? Duh.
But hey, why bother looking at data and history before making a decision...
Another example is about capital gains tax rates; the historical data show that raising capital gains rates actually REDUCES tax revenue.
You’d think they’d take a look at the mountain of evidence first. But no. They want to increase capital gains to as high as 40%, and that’s just at the federal level.
It’s not going to be much different in many other countries, especially Europe. Governments have all their Covid programs to pay for, so they need the money.
And now it’s clear that even the banks are on board, pushing for higher taxes.
So, again, tax planning absolutely needs to be part of your Plan B. And fast.
On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years.
To your freedom, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/trends/get-ready-for-the-work-from-home-tax-29341/
9 Lessons to Take From Millionaires Who Are Really Good With Money
.9 Lessons to Take From Millionaires Who Are Really Good With Money
By The Penny Hoarder Staff
Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)
But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.
These are simple money moves any normal, non-millionaire person can make today. Each tip can get you closer to achieving your big goals.
9 Lessons to Take From Millionaires Who Are Really Good With Money
By The Penny Hoarder Staff
Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)
But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.
These are simple money moves any normal, non-millionaire person can make today. Each tip can get you closer to achieving your big goals.
Take a look:
1. They Grow Their Money 11x Faster — Without Risking Any of it
Putting your money under a mattress or in a safe will get you nothing. And a typical savings account won’t do you much better. (Ahem, .09% is nothing these days.)
Act like the rich and use a debit card called Aspiration to earn up to 5% cash back and up to 11 times the average interest on the money in your account. Plus, you’ll never pay a monthly account-maintenance fee.
2. Leave Your Family up to $1M
Oh, to be a millionaire. Look, not all of us have the money to set up trust funds for our loved ones. But you could still leave them up to a $1 million in life insurance — and you don’t even need to have the money in the bank. You’re probably thinking: I don’t have the time or money for that. But this take minutes — and you could leave your family up to $1 million with a company called Bestow.
To continue reading, please go to the original article here:
https://partners.thepennyhoarder.com/lessons-from-millionaires-desk/
How A Single Pivotal Person Taught Me What Real Wealth Looks Like
.How A Single Pivotal Person Taught Me What Real Wealth Looks Like
Mad Money Monster May 13, 2019
Pivotal moments come around only so many times in life. The same can be said for pivotal people. It wasn’t until I was 18 years old that I met one such pivotal person. When I was 18 I thought real wealth meant a big house and flashy car. After meeting that person, I quickly realized that I was wrong. Over the course of a few months, my thoughts about money were completely reshaped and my financial outlook changed forever.
Up until that point in my short life, I had a very limited and distorted view of money and wealth. I was the youngest of four children in a poor family. Ironically, our trailer home was on the right side of the tracks which meant I was fortunate enough to attend a good school from kindergarten all the way up through high school.
How A Single Pivotal Person Taught Me What Real Wealth Looks Like
Mad Money Monster May 13, 2019
Pivotal moments come around only so many times in life. The same can be said for pivotal people. It wasn’t until I was 18 years old that I met one such pivotal person. When I was 18 I thought real wealth meant a big house and flashy car. After meeting that person, I quickly realized that I was wrong. Over the course of a few months, my thoughts about money were completely reshaped and my financial outlook changed forever.
Up until that point in my short life, I had a very limited and distorted view of money and wealth. I was the youngest of four children in a poor family. Ironically, our trailer home was on the right side of the tracks which meant I was fortunate enough to attend a good school from kindergarten all the way up through high school.
But attending a good school didn’t stop me from sitting in study hall my senior year calculating how much money I would need to make to be able to afford a nice double wide for my impending adult life. I am not kidding. I can vividly recall sitting at that desk with a piece of scrap paper and meticulously combing over how much I would expect to pay for a mortgage on a double wide and all the other expenses that go along with home ownership. My circle of influence was small and the bar was set low. At 18 years old, that was the future I envisioned for myself.
MY WEALTHY FRIEND
Back then, from my perspective, anyone who didn’t live in a trailer seemed rich. Obviously, rich is a relative term, but I was seriously impressed by anyone who lived in a real house. And since I attended a good school in a good area, a lot of my friends lived in real houses.
In high school, I can remember driving to a new development to visit a friend at his new house. As I walked through the door I was greeted with a sea of white towering walls, a vaulted ceiling, and an impressive staircase. I watched from the kitchen as my friend hurriedly descended the staircase to say hello.
I literally felt dwarfed and not worthy of his friendship sitting at that kitchen island, and it was at that very moment I decided my friend’s parents must be mega-rich. Now, till this day, I have no idea how much money or actual wealth my friend’s parents had. I just knew they could afford a big house in a nice neighborhood. To me, a big house = rich.
To continue reading, please go to the original article here:
What Should You Do With a Life Insurance Benefit?
.What Should You Do With a Life Insurance Benefit?
By Melanie Lockert The Fabric Blog
We’ve all dreamed of coming into a large sum of money. You imagine all the ways you’d spend a million dollars and think how much better your life would be. But what if you did get a large sum of money but it came at a great cost? This is what life insurance is all about.
But what is it like getting a life insurance death benefit and how does it actually work? What should you actually do with a life insurance benefit? We chatted with personal finance experts to find some answers.
Receiving a Life Insurance Benefit
Life insurance death benefit amounts can vary depending on the policy. Generally, life insurance payouts aren’t taxable unless you earn interest.
What Should You Do With a Life Insurance Benefit?
By Melanie Lockert The Fabric Blog
We’ve all dreamed of coming into a large sum of money. You imagine all the ways you’d spend a million dollars and think how much better your life would be. But what if you did get a large sum of money but it came at a great cost? This is what life insurance is all about.
But what is it like getting a life insurance death benefit and how does it actually work? What should you actually do with a life insurance benefit? We chatted with personal finance experts to find some answers.
Receiving a Life Insurance Benefit
Life insurance death benefit amounts can vary depending on the policy. Generally, life insurance payouts aren’t taxable unless you earn interest.
Emily Guy Birken, author of End Financial Stress Now received a life insurance death benefit in 2013 after her dad passed. During a time of grief, it can be difficult to do almost anything—but luckily the process of claiming her death benefit wasn’t too difficult.
“I was pleasantly surprised at how easy it was to get the life insurance payout. Based on life insurance in pop culture, I thought it would be a more drawn-out or emotionally draining process,” she says.
In order to receive the life insurance payout, Birken says she had to fill out paperwork, sign documents and send in the death certificate. It took her about two to three weeks to receive the payout. In general, this process can often take between 30 to 60 days.
Choosing Between Payment Options
When it came to actually getting the life insurance payout, Birken was offered a couple of options. “The insurer offered us the option of receiving the full amount in either a check or direct deposit, or keeping it in their interest-bearing account, which is what my sister and I both opted to do,” explains Birken.
Choosing to keep it in the interest-bearing account was a strategic move and one that helped her manage her spending.
To continue reading, please go to the original article here:
https://meetfabric.com/blog/what-should-you-do-with-a-life-insurance-benefit
Last Lecture Achieving Your Childhood Dreams
.Last Lecture Achieving Your Childhood Dreams
November 9, 2020 by Jim Wang
Every few years, you’re reminded about things that have shaped the arc of your life.
Just last week, something popped up on the homepage of Hacker News that was like meeting an old friend again. It was a link to Youtube to Randy Pausch’s Last Lecture and it’s amazingly powerful to watch. It marked one of the first times I really thought about how I did things, rather than the thing itself.
The lecture was given in September 2007… it was no small coincidence that I’d quit my job and be working for myself by January of 2008.
Last Lecture Achieving Your Childhood Dreams
November 9, 2020 by Jim Wang
Every few years, you’re reminded about things that have shaped the arc of your life.
Just last week, something popped up on the homepage of Hacker News that was like meeting an old friend again. It was a link to Youtube to Randy Pausch’s Last Lecture and it’s amazingly powerful to watch. It marked one of the first times I really thought about how I did things, rather than the thing itself.
The lecture was given in September 2007… it was no small coincidence that I’d quit my job and be working for myself by January of 2008.
I had the pleasure of going to Carnegie Mellon and I even tried to take Randy Pausch’s course, Building Virtual Worlds, but never made it off the waitlist (it was the first few years it was available and everyone wanted to be in it… and there were far more deserving students than me). Sometimes I wish I had tried harder to get in the class but that’s the benefit of hindsight.
If you’ve never heard this lecture before, I’m excited for you.
https://apexmoney.com/last-lecture/
https://www.youtube.com/watch?v=ji5_MqicxSo&feature=emb_logo
5 Things Your Millionaire Neighbor Isn’t Telling You
.5 Things Your Millionaire Neighbor Isn’t Telling You
Updated: November 11, 2020 By Robert Farrington
At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.
It's currently estimated that there are about 3,000,000 millionaires in the United States today. And given that there are about 300,000,000 Americans according to the latest Census data, that means about 1 in 100 are millionaires. Even more startling is that means that you probably know someone who is a millionaire, and you probably live within a stone's throw of other millionaires that you don't know.
The truth is that a lot of millionaires have very specific habits. Traits that make them successful. One of the most interesting aspects of my Better Know a Young Millionaire Investor series is what makes some of these millionaires tick.
5 Things Your Millionaire Neighbor Isn’t Telling You
Updated: November 11, 2020 By Robert Farrington
At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.
It's currently estimated that there are about 3,000,000 millionaires in the United States today. And given that there are about 300,000,000 Americans according to the latest Census data, that means about 1 in 100 are millionaires. Even more startling is that means that you probably know someone who is a millionaire, and you probably live within a stone's throw of other millionaires that you don't know.
The truth is that a lot of millionaires have very specific habits. Traits that make them successful. One of the most interesting aspects of my Better Know a Young Millionaire Investor series is what makes some of these millionaires tick.
Beyond the inspirational, here are five fundamental habits that your millionaire neighbor has but probably isn't telling you.
1. Start Young and Don't Mess Up
Many millionaires start young. It's so much easier to start young rather than older. You just have more time - it's simple math.
Plus, the younger you start, the longer you have to see your money compound over time. Just think about this - the amount you need to invest per year to reach $1,000,000 by age 62:
Starting Age Amount To Invest Per Year
22 $3,600
25 $4,600
30 $6,900
35 $10,700
If you start at 25, you have 10 more years than starting at 35. You can debate the rate of return all you want, but younger is always better than older.
To continue reading, please go to the original article here:
https://thecollegeinvestor.com/5656/5-millionaire-neighbor-telling/
8 Theft Prevention Tips for the Holidays
.8 Theft Prevention Tips for the Holidays
November 9, 2020 in Car Knowledge Center
While spirits may be high during the holidays, so is crime. Fight the Bad Santas with these 8 tips to keep you and your car secure during the 2020 holiday shopping season! It’s the time of year when most of us are thinking about turkey, pumpkin pie, shopping deals, and celebrating the season with loved ones.
But what’s not on your mind during the holidays, could be putting you at risk…
According to the National Crime Victimization Survey, robbery and personal larceny tend to spike around the holidays. So while you’re off snagging those Black Friday deals and visiting family, criminals are gearing up for their favorite time of year as well. Cars packed with gifts, people carrying more cash, and rampant distractions make it easier for criminals to strike and steal that holiday joy.
So while you’re winterizing your car this season, don’t forget to add these 8 theft prevention and car security tips to your holiday to-do list:
8 Theft Prevention Tips for the Holidays
November 9, 2020 in Car Knowledge Center
While spirits may be high during the holidays, so is crime. Fight the Bad Santas with these 8 tips to keep you and your car secure during the 2020 holiday shopping season! It’s the time of year when most of us are thinking about turkey, pumpkin pie, shopping deals, and celebrating the season with loved ones.
But what’s not on your mind during the holidays, could be putting you at risk…
According to the National Crime Victimization Survey, robbery and personal larceny tend to spike around the holidays. So while you’re off snagging those Black Friday deals and visiting family, criminals are gearing up for their favorite time of year as well. Cars packed with gifts, people carrying more cash, and rampant distractions make it easier for criminals to strike and steal that holiday joy.
So while you’re winterizing your car this season, don’t forget to add these 8 theft prevention and car security tips to your holiday to-do list:
#1: Park Smart
Scouring the parking lot for the perfect spot during the madness of holiday shopping may sound like cruel and unusual punishment, but it could save you from a break-in. Look for a well-lit area with plenty of people and other cars nearby.
#2: Double-Check Your Car Doors & Windows
It’s easy to get distracted when you’re on the hunt for the perfect gift or thinking about the day’s fun-filled plans. Always remember to double check the locks and roll up all windows (including the sunroof).
If you want to be extra safe, manually lock your doors instead of using the fob. Today’s thieves have devices that allow them to jam the signal that locks your car and even capture the signal from a key fob so that they can trick your car into unlocking and driving away with them in it.
To continue reading, please go to the original article here: LINK
What a Financial Trainwreck Can Teach Us
What a Financial Trainwreck Can Teach Us
Six Mistakes to Learn From
Donna Freedman,
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
What a Financial Trainwreck Can Teach Us
Six Mistakes to Learn From
Donna Freedman,
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
They bought their son a tux at prom time, because they couldn’t afford the rental fee but hadn’t yet maxed out the Nordstrom card.
Clearly this couple is a financial trainwreck. But they have something to teach us, if we’re willing to listen.
It’s easy to scorn the protagonists as entitled or clueless. You’d never be that foolish. You’d never go into debt, get yourself out, and then go back in. You’d never borrow from family members, or cash in a 401(k), or use a credit card to put your kids in private school.
Maybe you wouldn’t. Or maybe scorning other people’s mistakes keeps you from having to look too hard at your own behaviors.
If you’ve absolutely got a lock on your dollars, good for you. But keep in mind that all across the country, otherwise intelligent and rational people are spending more than they earn.
Losing Sight of What Matters
Some debtors have little choice. For example, someone going through a serious health issue or a protracted divorce can’t just check out of the ICU early or stop paying for legal representation.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/financial-wellness/what-a-financial-train-wreck-can-teach-us/
Good Investment Habits
.Good Investment Habits
By: Sophie Johnson
Unless you hit the lottery, chances are you’ll be working for your money. You can make that money grow by investing it, which, in effect, makes your money work for you. Though some people see investment as a sort of lottery — you pick a good bet on the stock market and get rich — the truth is that successful investing comes down to practicing good habits. The earlier you start using these habits, the more successful you’re likely to be.
Be a Wise Guy
The more information you have, the better your investment decisions will be. Get smart by learning about bank accounts, interest and debit and credit cards, then move on to studying investments. This education should never end. Develop the habit of expanding your investment knowledge regularly.
Good Investment Habits
By: Sophie Johnson
Unless you hit the lottery, chances are you’ll be working for your money. You can make that money grow by investing it, which, in effect, makes your money work for you. Though some people see investment as a sort of lottery — you pick a good bet on the stock market and get rich — the truth is that successful investing comes down to practicing good habits. The earlier you start using these habits, the more successful you’re likely to be.
Be a Wise Guy
The more information you have, the better your investment decisions will be. Get smart by learning about bank accounts, interest and debit and credit cards, then move on to studying investments. This education should never end. Develop the habit of expanding your investment knowledge regularly.
Taking courses or reading books will deliver the information in an organized way. Investment information is available in many places, including the library and the Internet. However, don’t force yourself to slog through books or sites you don’t like. Choose enjoyable, interesting sources instead to maximize the learning experience.
Pay Day
When money comes in, pay some of it to yourself. Putting that money into a savings or investment account will help you build a brighter future. Your bank or employer might make this easier by automatically taking money from an account or paycheck and depositing it for you. If you put money into a company-backed retirement account, your employer might even chip in by matching your contribution. Although paying yourself first may be challenging if things are tight, putting away even a small amount will help keep the habit alive.
Risky Business
Investments involve taking risks, but those risks can be managed. Two habits can help you minimize potential losses. First, practice diversification -- that is, don’t invest all of your money in one place. By habitually spreading your money between different kinds of investments, a loss in one won’t wipe you out and gains in other investments might make up for a loss. Second, invest consistently over the long term. For instance, investing in the stock market consistently would allow you over time to buy stocks when prices are lowest and sell them when prices are high.
To continue reading, please go to the original article here:
https://pocketsense.com/psychology-of-budgeting-13722860.html
10 Habits That Financially Successful People Have
.10 Habits That Financially Successful People Have
By: Beverly Bird
Can You Get Ahead Just By Changing Your Habits?
We’ve all done it: ogling massive homes and estates while we’re driving, wondering how the owners achieved all that success and wishing for a little of it ourselves. Or maybe your neighbor just bought a brand new Ferrari. How did he become so financially successful?
Here’s a hint: He might not be. He might just appear to be successful. In fact, the world’s most successful people generally don’t spend wildly. They’ve developed good fiscal habits and they’re exactly that – habits. They’re consistent.
A Penny Saved…
Successful people routinely save. This doesn’t necessarily mean dropping their change into a jar every night before bed, although this is certainly beneficial, too. It means never spending more than they have to.
10 Habits That Financially Successful People Have
By: Beverly Bird
Can You Get Ahead Just By Changing Your Habits?
We’ve all done it: ogling massive homes and estates while we’re driving, wondering how the owners achieved all that success and wishing for a little of it ourselves. Or maybe your neighbor just bought a brand new Ferrari. How did he become so financially successful?
Here’s a hint: He might not be. He might just appear to be successful. In fact, the world’s most successful people generally don’t spend wildly. They’ve developed good fiscal habits and they’re exactly that – habits. They’re consistent.
A Penny Saved…
Successful people routinely save. This doesn’t necessarily mean dropping their change into a jar every night before bed, although this is certainly beneficial, too. It means never spending more than they have to.
Think of it this way: Every time single time you use that credit card or write a check, you have less money than you had a minute before. The equation only works if you spend less than you earn. It’s that simple.
You might have heard about Warren Buffett’s house, the one he bought for cash decades ago and continues to live in. It’s not a mansion. In fact, it’s a little on the small side. There’s no doubt in the world that Buffett can afford a lot more, but he’s lived with the habit of deferring instant and copious gratification in exchange for long-term wealth and security.
Are you stretching your budget to accommodate a lifestyle you can’t easily afford? Do you find yourself juggling your finances every month because you don’t quite earn enough to make all ends meet? This might be a habit you want to get out of.
And It’s About How You Save
About that change jar you toss your coins into every night. Get your money out of there and put it in some type of a financial account, even if it’s just a run-of-the-mill bank savings account, where it can earn some interest and grow.
Financial experts tout the 10 percent rule – you should regularly and methodically tuck aside this much of your income. Financially successful people tend to make it a habit to do more than that. Think 15 percent or even 20 percent if you can manage it.
To continue reading, please go to the original article here:
https://pocketsense.com/10-habits-that-financially-successful-people-have-13590062.html
Future Shock
.Future Shock
Jonathan Clements November 7, 2020
WHY DO WE MAKE spending decisions that we later regret? Yes, we tend to live for today and give scant thought to tomorrow. But it’s more complicated than that—which brings me to four insights from psychology.
I find the insights below fascinating, in part because they describe how I behave with uncanny accuracy. Many readers, I suspect, will also catch a glimpse of their own behavior:
Moral licensing. If we do something good—exercise, give to charity, work late, purchase an eco-friendly product—we often give ourselves permission to do something that’s not so good, such as rewarding ourselves with junk food or a new pair of shoes. In fact, research has found that simply thinking about doing something good, even if we don’t follow through, can prompt not-so-good behavior.
Future Shock
Jonathan Clements November 7, 2020
WHY DO WE MAKE spending decisions that we later regret? Yes, we tend to live for today and give scant thought to tomorrow. But it’s more complicated than that—which brings me to four insights from psychology.
I find the insights below fascinating, in part because they describe how I behave with uncanny accuracy. Many readers, I suspect, will also catch a glimpse of their own behavior:
Moral licensing. If we do something good—exercise, give to charity, work late, purchase an eco-friendly product—we often give ourselves permission to do something that’s not so good, such as rewarding ourselves with junk food or a new pair of shoes. In fact, research has found that simply thinking about doing something good, even if we don’t follow through, can prompt not-so-good behavior.
This is certainly a mindset I have. If I’ve been careful about my eating all week, I feel I “deserve” something unhealthy. Two decades ago, when I regularly ran marathons and half-marathons, I’d typically do my long runs on Saturday morning—and spend much of the time pondering the Italian sub and fries I’d devour afterwards.
Willpower budget. As with moral licensing, this is another explanation for why we slip from the straight and narrow. The notion: If we’ve been disciplined all day—eating carefully, focused on work, going to the gym at lunchtime—we might reach the end of the day with our willpower budget depleted, leading us to have that extra glass of wine or an extra-large slice of pie.
Can we expand our willpower budget? It isn’t clear. But if we can take our desired good behavior and turn it into habits—perhaps we make it a point to always exercise on certain days, always have a salad for lunch and always max out our 401(k)—these things may come to require little or no willpower. Our good habits may not expand our willpower budget, but they could free up part of that budget for other areas where we’re trying to improve our behavior.
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