How One Man Saved $1 Million in 5 Years

How One Man Saved $1 Million in 5 Years

Cameron Huddleston    Life and Money Columnist

Save $1 million with these tips.

If you’re graduating from college this spring, saving for retirement probably isn’t high on your list of priorities. In fact, GOBankingRates found that saving for retirement isn’t a priority for a large number of Americans. It certainly wasn’t at the top of Grant Sabatier’s to-do list when he graduated from the University of Chicago in 2007.

As a philosophy major entering the job market on the brink of the Great Recession, Sabatier was lucky to find work at a call center for an analytics company. The pay was pretty good, too: $42,000 a year. It was certainly enough to cover living expenses and leave him with some cash to stash in a retirement account. But Sabatier didn’t save a dime.

“I spent it all,” he said. “I had an opportunity to save when I was 22, but I didn’t. I tried to live the life.”

But he got a wake-up call two years later. After bouncing from job to job, Sabatier found himself living at home with his parents with just $2.26 in his bank account. He decided to make saving a priority.

Five years later, Sabatier had $1 million in the bank. Today, at age 32, he has about $1.35 million.

Have a Plan

Whether you want to retire early or retire with riches, you need to have a plan in place. You can’t just set aside an arbitrary amount in a retirement account each month and hope it works out.

When he was 24 and living at home, Sabatier decided he wanted to reach financial independence by age 30 — a tall order for someone with just a couple bucks in the bank. To figure out how much he would need to save, he used a retirement calculator.

Sabatier estimated his annual expenses would be $50,000 and found he would need to save 25 times that sum — $1.25 million — in order to live off the interest in retirement. He then calculated that he would need to save $50 a day and earn 5 percent annually to have $1.25 million in 30 years.

However, Sabatier didn’t want to wait that long; he wanted to save the amount he needed in just five years.

“When you get clear on your numbers, what it costs to have the lifestyle you want, you really are in control,” he said.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/saving-money/savings-advice/how-to-save-million-dollars-5-years/

The Blind Men and the Elephant

The Blind Men and the Elephant

Emailed To Dinar Recaps

Please entertain yourself while being very enlightened with this story that is a parallel to the Dinar - the Dinar Community and Dinar Intel Providers - It was very well thought out and put together - Thank you Rhino!

​Once there were three blind men who were given the task of describing an elephant. Each was led into an elephant pen by way of a different gate.

The first man approached the elephant from the front and groped around the elephant’s trunk. The second encountered the elephant from the rear and grabbed the tail. The last man walked into a leg and felt around that part of the elephant. Then the men were led out of the pen and asked to describe the appearance of an elephant.

​Well, being blind, none of them had ever actually seen an elephant, but each of them did have a very real perspective from which to share; and share they did.

​Then the men were led out of the pen and asked to describe the appearance of an elephant. Well, being blind, none of them had ever actually seen an elephant, but each of them did have a very real perspective from which to share; and share they did.

They all agreed that an elephant is round. After all, the trunk, tail, and leg are all basically round in shape. But that is where the similarities ended. Before long, the discussion turned ugly. ​

Each man knew that he was correct. After all, he had touched the elephant! You can’t get much closer to a source that than that.

Two of the men, each armed with unequivocal, undeniable, unimpeachable information, felt compelled to argue their cases. They felt it was their duty to convince all other blind people the “truth” about the elephant. These two men looked for every opportunity to pursue their duty, sharing elephant truths.

And other blind people appreciated their efforts and began to ask questions. Some members of the blind community liked hearing about the “trunk” description. Others thought that the “tail” description was closer to the truth. And these two men enjoyed their new-found popularity greatly.

In order to have more things to talk about, one of these same two men, researched Braille articles about elephants.

Unfortunately, some of the articles were written by folks with ulterior motives—ivory hunters, ruthless poachers, who cared only about the monetary value of elephants.

The blind man either didn’t know that some of the articles were intentionally deceptive, or perhaps he didn’t care. After all, the articles did provide talking points, which in turn increased his popularity.

​The second argumentative blind man was content simply to argue. The louder he argued the more attention he got. Healthy, informed debate is good and productive.

​Too bad this one fellow would occasionally resort to name calling, all the while claiming to be the only source of real elephant truth.

Nevertheless, he maintained a substantial following among the blind community and, to a large degree, that was all that mattered; much more so than the elephant.

What about the third blind man? Well, he was out there all the time. He too shared his perspective of the elephant, his own brand of elephant truth. His perspective was limited too, but he shared what he knew to be true.

The difference is, this man stayed true to his mission—sharing truth about elephants. He didn’t rail against the tail perspective. He didn’t throw a tantrum when new trunk information got released. He merely shared what he knew and let members of the blind community do with it what they will.

As you can see, not all the blind men behaved the same way. They did however, have several things in common. They all had great connections (which explains why they were selected as elephant describers in the first place).

These connections afforded them a certain measure of special status within the blind community. Additionally, all three blind men had valid perspectives. After all, their descriptions of the trunk, tail and leg were all accurate.

And let’s not forget the last thing they had in common—they were all blind! Special status or not, they were all members of the blind community.

Thus, while all of them had real information regarding a portion of the elephant, none of them understood the whole elephant.

Ultimately, the complete truth about the elephant resides with one Person—the Creator of the elephant.

If only the blind men knew this. I believe they did. Perhaps all that talk about the elephant created a temporary blind spot.

Go Elephant!

10 Simple Habits of Money-Smart Individuals

10 Simple Habits of Money-Smart Individuals

Master these successful money habits to boost your wealth.

By Tracie Fobes January 22, 2021

Mark Cuban. Warren Buffett. Michael Bloomberg. Most people will never be as rich as the world’s wealthiest billionaires, but you can still learn from their smart money habits.  From ditching debt to paying bills on time, fiscally savvy folks have developed good habits and plans that keep them in financial shape. And with a little effort, you too can master their tricks for managing money. If you’re looking to break bad money habits and get on more solid financial footing, follow these fiscal tips from the pros.

Have a Written Budget

Many people have a budget — sort of. They know who they have to pay each month and how much. However, they don’t have anything in writing. When you have a written budget, you see exactly where your money is going. Best of all, you can direct your money where you want it to go. Your budget is your roadmap to financial success, so make sure you include every single expense. Don’t forget about that coffee you grab on the way to work or the money you spend on parking every day.

Pay Down Debt

Take the steps necessary to pay off your debts. You will need to create a debt payoff plan to make it happen.  Start by assessing the types of debt you carry and determining what might be paid off first. Your credit card debt should be the first thing you look at. In addition to possibly carrying a high interest rate, it typically has variable rates. Because credit cards are revolving debt, if you only make the minimum payment required each month, you may not be able to pin down an end date for your debt.

Consolidating revolving debt into a personal loan lets you lock in a repayment term. In other words, you define an end date to that debt. Plus, by consolidating higher-rate debt you may save money on interest. A Discover® personal loan offers annual percentage rates between 6.99% and 24.99%. And with a fixed rate Discover personal loan, you won’t have to worry about increasing interest rates.

It might take some time, but you can pay off debt if you’re diligent.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/saving-money/budgeting/financial-habits-need-start-today/?utm_campaign=1043446&utm_source=yahoo.com&utm_content=4

16 Real People Affected By the Coronavirus Give Their Best Financial Advice

16 Real People Affected By the Coronavirus Give Their Best Financial Advice

Learn how you can get through the pandemic.  By Erica Corbin July 17, 2020

The coronavirus, also known as COVID-19, has taken over the world. As of March 30, 2020, there were more than 770,000 cases and nearly 37,000 deaths reported worldwide. It has affected the young and old alike and turned daily life in nearly every country into a surreal nightmare.

From a financial point of view alone, it’s an extremely uncertain and stressful time. Millions of people are unable to work and yet still must pay rent, car payments, student loan debt and more. Buying groceries and other essentials has become a challenge for many, too, and not just because there isn’t enough toilet paper to go around.  However, this doesn’t mean there aren’t ways of getting through this pandemic. GOBankingRates spoke with 16 people around the world who have been affected by the coronavirus, from job losses to life-threatening health concerns, and asked them for their best financial advice. Learn what you can do to manage your money during the outbreak.

1. They Nearly Got Stranded Abroad and Had To Buy an Emergency Flight Home

Nicole Diaz and her husband were in Ireland celebrating her 30th birthday when the coronavirus really started taking over. In the days leading up to their trip, more and more tours had been postponed and the country’s annual St. Patrick’s Day parade, which drew 500,000 people last year, was canceled.

They had been in the country for less than 48 hours when they learned that they needed to fly home to California immediately.  “We had to buy an emergency flight back to the U.S. once we saw that Ireland got added to the travel ban list,” Diaz said. “We ended up shelling out a little over $2,000 on the emergency flight back to Los Angeles.”  Fortunately, they were able to get home and enter self-isolation immediately.

Advice: Save 20% of Your Paycheck

“If I could give others advice, it would be to make sure you always have a cushion for emergencies like this,” Diaz said. “Thankfully, we had that cushion. I’ve been making it a habit to put at least 20% of my paycheck away toward savings and so this extra money helped us a lot.”

Diaz recognizes that this is easier said than done when you’re living paycheck to paycheck. However, there are ways to save 20% more of your paycheck without even trying.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/people-affected-coronavirus-give-best-financial-advice/

With Apologies To Drunken Sailors Everywhere. . .

With Apologies To Drunken Sailors Everywhere. . .

Notes From The Field By Simon Black  February 9, 2021  Bahia Beach, Puerto Rico

The year was 1977.  Disco was in. Star Wars was the biggest movie of the year. The world’s first personal computer was announced-- the Commodore PET, which came with 8 kilobytes of memory.  And the Gross Domestic Product of the United States reached $1.9 trillion-- more than double what it had been just ten years prior.  As you probably know (or possibly remember), though, most of the GDP “growth” during the 1970s wasn’t because the US economy was strong. Quite the opposite, actually.

The 1970s was a period of economic stagnation and inflation. The economy was in such bad shape that, between January 1, 1970 and December 31, 1977, the S&P 500 grew exactly ZERO percent.

Yet food and fuel prices kept spiraling out of control. This is a big reason why GDP kept rising in the 1970s despite such a weak economy.

We’ll come back to 1970s inflation in a moment; for now, I’ll point out the coincidence that the latest COVID stimulus bill which Congress seems ready to pass, is also $1.9 trillion.

In other words, the amount of money they want to spend in a SINGLE legislative package is the same as the size of the entire US economy in 1977. And 1977 is still fairly recent history.

Even today, $1.9 trillion is nearly 10% of the size of the US economy, and roughly 50% of expected federal tax revenue this fiscal year.

Before this COVID spending plan was announced, the Congressional Budget Office estimated in early January that the budget deficit this year in the Land of the Free would be $2.3 trillion (up from their $1.8 trillion estimate a few months before.)

Now they’ll have to add another $1.9 trillion to the total, tentatively bringing this year’s budget deficit to $4.2 trillion.

It’s important to note, of course, that the politicians and public health officials keep moving the goalposts on when life will go back to ‘normal’.

Their latest estimate is that, after hundreds of millions of people are vaccinated, then possibly by late fall there will be “a degree of normality”.

But naturally if there’s the slightest hint of anyone getting the sniffles this fall, they’ll likely slap everyone back down into stay-at-home orders and quarantines. And this means MORE stimulus.

Stay home. Be afraid. Dehumanize yourself and others. Believe what you’re told. Obey. Collect your free government money.

Among the countless, obvious problems with their plan is that they only have one way to pay for it: debt.

The national debt in the United States is nearly $28 trillion right now (up from $23 trillion pre-COVID). And the debt will sprint past $29 trillion soon and reach $30 trillion within the next few months.

At $30 trillion, the national debt will be roughly 1.5x the size of the entire US economy. That will also be a record high-- even higher than when the US was fighting the Nazis in World War II.

The challenges with this approach, of course, are that

(a) someone actually has to have trillions of dollars lying around; and

(b) be willing to lend such prodigious sums to the US federal government.

That’s a pretty tall order.

Most foreign countries don’t have that sort of money. Europe and Japan, for example, are flat broke. And those who do have the money (China) don’t have any interest in financing US government deficits.

You can see this in the data: foreign ownership of US government debt has actually been declining over the past few years, giving a very strong indication that they’re unwilling and/or unable to loan more money to Uncle Sam.

So, with foreign lenders off the table, the Treasury Department will have to look to other sources.

Social Security’s trust funds have long been a source of plunder. But with the program having already turned cashflow negative (and set to run out of money possibly by the end of this decade), this isn’t a viable option any longer.

That leaves the Federal Reserve-- America’s central bank. The Fed has the ridiculous authority of being able to conjure unlimited quantities of money out of thin air in its sole discretion. And as a result, they’ve been buying up the vast majority of US government debt for most of the past decade.

Prior to the Global Financial Crisis in 2008, the Fed’s balance sheet was around $850 billion. Since then, they’ve created so much money that their balance sheet has ballooned to $7.4 trillion.

This takes me back to the 1970s.

Starting in around 1970, the Federal Reserve began heavily slashing interest rates and pumping more money into the economy in an effort to boost GDP.

The plan was successful; like I wrote earlier, the US economy ‘grew’. But so did inflation and unemployment.

Inflation in particular was miserable during the 70s, reaching 14% by its peak in 1980. And most of this happened because they borrowed too much and created too much money.

I wrote about this recently-- economic prosperity isn’t rocket science. All that’s required is some basic fiscal restraint, economic freedom, and a stable currency. The free market takes care of the rest.

History shows that bad things tend to happen when politicians and bureaucrats try to engineer prosperity by debasing the currency.

Yet these people continue to print and spend money like drunken sailors… which is frankly an insult to drunken sailors everywhere. Even drunken sailors eventually realize when they’ve run out of money.

It’s entirely possible that such unprecedented debt and money expansion could cause serious problems with the currency-- including 1970s style inflation.

Don’t fall into a logical trap and believe that inflation will never be a problem, simply because it hasn’t been a problem yet.  Rather, acknowledge that the US was extremely lucky for inflation to have been relatively benign over the last decade.  But after the year we just had, it would be foolish to assume that the next decade will be as tame as the previous one.

To your freedom and prosperity, Simon Black, Founder, SovereignMan.com

https://www.sovereignman.com/trends/with-apologies-to-drunken-sailors-everywhere-30789/



25 Things You Should Never Do With Your Money

25 Things You Should Never Do With Your Money

Avoid these big money mistakes and keep more of your cash.

By Roger Wohlner November 6

There is possibly an endless list of things you shouldn’t do with your money. But from bad habits to decisions based on wishful thinking, some of the bigger missteps can really cost you. To find out the biggest money mistakes you should avoid, GOBankingRates asked financial experts for their best advice.

Never Cash Your Paycheck Right Away

If you cash your paycheck right away, you might burn through it too quickly.  “You will most certainly spend it all if you cash your paycheck rather than have your employer directly deposit it into your bank account,” said Barbara Friedberg, a personal finance consultant. “Even better is to automatically transfer a percent of your paycheck into a retirement investment account and direct-deposit the remainder into a bank account.”

One advantage of having a workplace retirement plan, such as a 401(k), is that money is automatically deducted from your pay and invested. You don’t see it, so you won’t spend it. You can use a budgeting template to get the most mileage out of your paycheck.

Never Fall For 'Special' Finance Deals You Can’t Afford

Promotional finance offers that provide zero or low interest rates on a big purchase might sound like a great deal — until you wind up paying more than you expected. That’s what happened to Grayson Bell, founder of personal finance website Debt Roundup.

“Don’t finance a new vehicle, or watercraft in my case, based on the low promotional monthly payment,” he said. “I financed a new $10,000 Jet Ski with no money down and no real way to pay for it based on a radio ad promoting a super low $69 per month payment. What I didn’t read was the rate was only for two years, then it changes to include retroactive interest based on the loan amount.”

“Those financing deals can ruin you if you’re only looking at the monthly payment,” he continued. “Go through the math and read all of the fine print. They get you in with the low monthly payments, but keep you paying for much longer than you anticipated.”

Never Co-Sign a Loan You Can’t Afford

To continue reading, please go to the original article here:

https://www.gobankingrates.com/saving-money/savings-advice/things-should-never-do-with-money/#2

Old-School Money Advice You Shouldn't Follow Anymore

Old-School Money Advice You Shouldn’t Follow Anymore

These old-school rules could hurt you financially.

By Valencia Higuera December 10, 2020

If you don’t know much about money, you don’t have to look far for advice. You can always learn from personal finance articles, books and videos or from money-savvy friends and family. Although there’s no short supply of guidance, money rules can shift over time. For that matter, some old-school advice should be taken with a grain of salt. Here’s what the experts said is some of the worst money advice.

Pay Off Your Mortgage Early

Most people need a mortgage to purchase a home. However, financing a house entails paying thousands of dollars in interest. To reduce interest charges, some borrowers come up with a plan to pay off their mortgages early by making extra payments.  This advice isn’t bad in itself, but according to Paul Moyer, the founder of SavingFreak.com, this advice doesn’t make the same financial sense in our current low-interest environment as it did when mortgage rates were higher, like 6% to 8%.

“Those extra payments can do more work for you by being placed in other investments,” Moyer said. “Even if you only get 6% over the life of the investment, you will beat the interest you are paying on your home mortgage.”

You Can Buy a House You Can’t Afford — Just Get Roommates

Taking in a roommate or two can be a financially savvy way to save money, but never purchase a home if you can’t afford to make the mortgage payments yourself. Roommates come and go, so you can’t rely on them to pay off your home loan. And defaulting on a mortgage will ruin your credit and could result in foreclosure, making it hard for you to take out loans and buy another home in the future.

Prioritize Saving For Your Child’s Education

Some parents believe it’s their responsibility to pay for their child’s college education. The problem, however, is that some people save for their child’s college education at the expense of saving for their retirement. Rather than sock all your money away for college tuition, David Walters, a certified financial planner with Palisades Hudson Financial Group, encouraged prioritizing retirement.

“I often need to remind (parents) that you can finance your child’s education with college loans and other funding sources, but you can’t finance your retirement, so a balance is needed,” said Walters. “This is even more important for parents with children at or close to college age, as their time horizon for retirement is much shorter.”

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/old-school-money-advice-shouldnt-follow-anymore/?utm_campaign=1043446&utm_source=yahoo.com&utm_content=1

H

ello, World!

5 Money Beliefs That Are Holding You Back

 5 Money Beliefs That Are Holding You Back

John Csiszar   Mon, February 8

When it comes to financial planning, it’s easy to sabotage your own success. Between constantly rising bills and expenses and the omnipresence of the American “buy-now” culture, it can be hard to set aside money for things like emergency funds and retirement savings. Add to that the very human tendency to have self-defeating money beliefs, and it’s easy to find yourself adrift financially.

The good news is that saving and investing doesn’t have to be complicated. In fact, if you can talk yourself out of some of the most counterproductive money beliefs, you’ll find yourself on the path to success in no time. Here’s a look at some of the most common self-defeating financial beliefs and how you can overcome them for a more productive financial life.

I Don't Have Any Extra Money

This is probably the most common excuse Americans give for not saving money. And for many households, it can certainly seem as if there isn’t “extra” money for things like savings, investments or paying off debt. A simple reframing of your finances can help you get past this obstacle.

Instead of thinking of saving and investment as what you do with your “extra” money, prioritize it. As soon as you get your paycheck, slice off 5% or 10% or even 20% and send it directly to your savings. Then, use your remaining funds for your monthly obligations and discretionary spending. Some refer to this strategy as “paying yourself first,” and it’s a great way to always ensure that you do have the “extra money” you need for savings and investments.

Investing Is Only for Rich People

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/5-money-beliefs-holding-back-220028147.html

The Money Date Guide: How to Talk About Money with Your Partner

The Money Date Guide: How to Talk About Money with Your Partner

February 8, 2021

Are you looking for a way to talk openly about your finances with your partner? Or do you want to start setting and sharing financial goals with your partner but don’t know where to start?

Then a money date is a great place to start. Money dates are a great way to get the awkward money conversation going between you and your partner. And they are a great way to set and share financial goals together and start feeling like a team.  Every partner has their own feelings towards money rooted in their own lived experiences. And as a couple, it can be hard to discuss these things openly, as one can feel very vulnerable.

But figuring out a way to talk about money openly is a rewarding experience that will help you get on the same page and start working on your financial goals together.*

My partner and I started having money dates when we decided to move in together. These dates have been invaluable as they help us align our money with the shared vision we have for our future.  Both of us have had an experience where we weren’t on the same page financially with our past partners, which put a strain on those relationships.  Therefore, we knew from the get-go that we needed to be vulnerable and talk about all things money, both good and bad, to be able to get on the same page and work towards our goals as a team.

And so far, it’s working for us.

In this post, I’ll give you the strategies and framework you need to start having those tough but rewarding financial conversations with your partner.

To continue reading, please go to the original article here:

https://www.cashfortacos.com/money-date/

Three Biggest Financial Fears

Three Biggest Financial Fears

by Mike Brassfield

If you’re financially stressed out these days, you’re far from alone. These are rocky and uncertain times we’re living in, and the stress level is super high. A number of recent surveys have confirmed that Americans are financially frazzled right now.

For example, a survey by the National Endowment for Financial Education found that a whopping nine in 10 Americans say the COVID-19 crisis is causing stress on their personal finances. Most worry about not having enough saved, or not being able to pay bills.  A survey by John Hancock Financial found that nearly a quarter of Americans have dipped into their emergency savings during the pandemic. 

Surveys are finding three main sources of financial stress. We’ve got strategies for tackling all three:

1. Fear of the Uncertain Future

Are you worried about losing your job? Nervous about what’s going to happen next? That’s why it’s crucial to have an emergency fund as backup — just in case.

An emergency fund is a stash of easily accessible money that equals three to six months’ worth of salary, in case you unexpectedly lose your job. And millions of us unexpectedly lost our jobs in 2020.

With the Aspiration Spend account, you can earn up to 5% cash back on your debit card purchases. With the Aspiration Save account (where you can funnel your tax refund), you can earn up to 20 times the average interest on your savings balance. (The FDIC reports that the average account earns just .05%.)

2. Fear of Falling Behind on Credit Card Debt

The pandemic and its shutdowns and its job losses have forced more Americans to fall back on their credit cards to pay their bills and pay for necessities like food. For those who are still struggling, managing credit card debt is a huge source of stress.

To continue reading, please go to the original article here:

https://www.thepennyhoarder.com/investing/financial-stress-answers/?aff_sub2=homepage

7 Key Home-Buying Numbers to Know

7 Key Home-Buying Numbers to Know
Shopping for a House? Here are 7 Key Home-Buying Numbers to Know

by Larissa Runkle  Contributor  JANUARY 25, 2021

There’s a lot that goes into buying a new home, starting with finding the right one all the way down to finalizing the paperwork. Somewhere in that process, you’ll likely find yourself trying to decipher myriad new terms and figuring out what they mean for you.

We’ve compiled this list of seven key numbers you’ll need to know when buying a home — plus the details on how understanding these terms can help you land your dream home.

Here are seven all-important home-buying numbers to know.

1. Cost per Square Foot

One of the first numbers you’ll encounter when shopping for homes is cost per square foot. While this number is based on a relatively simple calculation, it’s an important one to understand since ultimately it helps you determine how much house you’re getting for your money.

“Cost per square foot is simply the list price divided by the number of livable square feet,” said Tyler Forte, founder & CEO of Felix Homes. “This number is important because it allows a homeowner to compare the relative price of homes that are different sizes.”

But there’s more to consider, he said. “While cost per square foot is an important metric, you should also consider the layout of the home. In many cases, a home with an open floor-plan may seem larger even if it has a smaller livable square footage.”

Forte defines livable square footage as any interior space that’s heated and cooled, which is why a garage wouldn’t necessarily fit the bill. One of the best ways to understand how much home you can afford is to break it down by cost per square foot, which will vary from city to city and neighborhood to neighborhood.

To continue reading, please go to the original article here:
https://www.thepennyhoarder.com/home-buying/home-buying-numbers-to-know/?aff_sub2=homepage