Coping With The Guilt Of Losing Money
.Coping With The Guilt Of Losing Money
By The Investor
I accept it’s normal to feel frustrated, angry, or even downright stupid when you lose money on your investments.
But what about guilt?
My portfolio’s fall from its peak value in summer 2007 to a low in October 2008 represents a big loss for a 30-something private investor like me: at least a couple of years of after-tax income in cash terms. More importantly, the losses meant I had fewer options in October 2008 than the year before. I’d originally begun investing to build up a house-buying war chest for when the over-valued housing market corrected itself.
After several years waiting, house prices were finally falling, but my investments had fallen further. It was my sister who put it simplest and best, when I explained to her my fate:
“Ah, I see. If only you’d sold all your investments and put the money into a savings account! Now you’d have even more money, and you could buy a cheaper house.”
My sister was a 100% right.
Coping With The Guilt Of Losing Money
By The Investor
I accept it’s normal to feel frustrated, angry, or even downright stupid when you lose money on your investments.
But what about guilt?
My portfolio’s fall from its peak value in summer 2007 to a low in October 2008 represents a big loss for a 30-something private investor like me: at least a couple of years of after-tax income in cash terms. More importantly, the losses meant I had fewer options in October 2008 than the year before. I’d originally begun investing to build up a house-buying war chest for when the over-valued housing market corrected itself.
After several years waiting, house prices were finally falling, but my investments had fallen further. It was my sister who put it simplest and best, when I explained to her my fate:
“Ah, I see. If only you’d sold all your investments and put the money into a savings account! Now you’d have even more money, and you could buy a cheaper house.”
My sister was a 100% right.
Being told what I did wrong by my sister, who takes no real interest in money, might have hurt my pride. But then my emotional state has taken several turns during the bear market. I’ve felt:
Frustrated: After half a decade of waiting for property prices to fall and saving as much as 50% of my annual after-tax income, I’d thrown away my ticket to the ball.
Angry: At the world, and at the markets. What were the chances of a once in a hundred year credit crisis coming along just when I was finally getting ready to buy a house?
Foolish: If I’d thought property prices would fall so far, how could I have missed the connection with the stock market? Wishful thinking, perhaps?
Guilty: My family background is not a wealthy one, and the money I’d lost was modestly substantial – more than my parents’ life savings. What was I thinking playing roulette with the market and exposing myself to such losses?
Despite these churning emotions, I didn’t sell up in despair. Instead, I kept buying while shares were cheap. I did what history and the likes of Warren Buffett say you should do – hanging in and even buying when others were fearful. Time will tell if this faith in the stock market simply compounds my losses or leads to a recovery, but I’m glad I’ve stuck to the rational line. Here some tips that might help you if you’re also feeling guilty or giving in to bear market despair.
To continue reading, please go to the original article here:
https://monevator.com/coping-with-the-guilt-of-losing-money/
How People Learn to Become Resilient
.How People Learn to Become Resilient
By Maria Konnikova February 11, 2016
Perception is key to resilience Do you conceptualize an event as traumatic or as a chance to learn and grow
What Matters Is The Intensity And The Duration Of The Stressor
Norman Garmezy, a developmental psychologist and clinician at the University of Minnesota, met thousands of children in his four decades of research. But one boy in particular stuck with him. He was nine years old, with an alcoholic mother and an absent father. Each day, he would arrive at school with the exact same sandwich: two slices of bread with nothing in between. At home, there was no other food available, and no one to make any.
Even so, Garmezy would later recall, the boy wanted to make sure that “no one would feel pity for him and no one would know the ineptitude of his mother.” Each day, without fail, he would walk in with a smile on his face and a “bread sandwich” tucked into his bag.
The boy with the bread sandwich was part of a special group of children. He belonged to a cohort of kids—the first of many—whom Garmezy would go on to identify as succeeding, even excelling, despite incredibly difficult circumstances.
How People Learn to Become Resilient
By Maria Konnikova February 11, 2016
Perception is key to resilience Do you conceptualize an event as traumatic or as a chance to learn and grow
What Matters Is The Intensity And The Duration Of The Stressor
Norman Garmezy, a developmental psychologist and clinician at the University of Minnesota, met thousands of children in his four decades of research. But one boy in particular stuck with him. He was nine years old, with an alcoholic mother and an absent father. Each day, he would arrive at school with the exact same sandwich: two slices of bread with nothing in between. At home, there was no other food available, and no one to make any.
Even so, Garmezy would later recall, the boy wanted to make sure that “no one would feel pity for him and no one would know the ineptitude of his mother.” Each day, without fail, he would walk in with a smile on his face and a “bread sandwich” tucked into his bag.
The boy with the bread sandwich was part of a special group of children. He belonged to a cohort of kids—the first of many—whom Garmezy would go on to identify as succeeding, even excelling, despite incredibly difficult circumstances.
These were the children who exhibited a trait Garmezy would later identify as “resilience.” (He is widely credited with being the first to study the concept in an experimental setting.) Over many years, Garmezy would visit schools across the country, focussing on those in economically depressed areas, and follow a standard protocol.
He would set up meetings with the principal, along with a school social worker or nurse, and pose the same question: Were there any children whose backgrounds had initially raised red flags—kids who seemed likely to become problem kids—who had instead become, surprisingly, a source of pride? “What I was saying was, ‘Can you identify stressed children who are making it here in your school?’ ” Garmezy said, in a 1999 interview. “There would be a long pause after my inquiry before the answer came.
If I had said, ‘Do you have kids in this school who seem to be troubled?,’ there wouldn’t have been a moment’s delay. But to be asked about children who were adaptive and good citizens in the school and making it even though they had come out of very disturbed backgrounds—that was a new sort of inquiry. That’s the way we began.”
Resilience presents a challenge for psychologists. Whether you can be said to have it or not largely depends not on any particular psychological test but on the way your life unfolds. If you are lucky enough to never experience any sort of adversity, we won’t know how resilient you are. It’s only when you’re faced with obstacles, stress, and other environmental threats that resilience, or the lack of it, emerges: Do you succumb or do you surmount?
To continue reading, please go to the original article here:
https://www.newyorker.com/science/maria-konnikova/the-secret-formula-for-resilience
What Is A Wealth Advisor And Are They Worth It?
.What Is A Wealth Advisor And Are They Worth It?
Ideally, it’s safe to say that a majority of people would love to have a personal fortune that may require working with a wealth advisor. And if you have reached a point in your life where you need help with your assets and wealth, then you have reached a status that many others dream about! But having a massive net worth and more money can come with even more responsibilities you might be unsure about. Even if you know finances and investing quite well, you should consider an expert to help you maintain your fortune.
That’s where a wealth advisor can be your trusted financial partner. Their goal is to ensure your needs are met and that you are set up successfully for now and the future.
But what do wealth advisors do exactly? What should you look for if you need one?
What Is A Wealth Advisor And Are They Worth It?
Ideally, it’s safe to say that a majority of people would love to have a personal fortune that may require working with a wealth advisor. And if you have reached a point in your life where you need help with your assets and wealth, then you have reached a status that many others dream about! But having a massive net worth and more money can come with even more responsibilities you might be unsure about. Even if you know finances and investing quite well, you should consider an expert to help you maintain your fortune.
That’s where a wealth advisor can be your trusted financial partner. Their goal is to ensure your needs are met and that you are set up successfully for now and the future.
But what do wealth advisors do exactly? What should you look for if you need one?
Wealth Advisors are financial consultants for clients who are already affluent. Their job entails providing high-net-worth individuals with strategic advice and action for their finances, including the use of tax-advantaged accounts, estate planning, and risk management.
Instead of managing the day-to-day finances of their clients like financial advisors would, wealth advisors are focused on nurturing and protecting what is already available.
If you are lucky enough to build a high-net-worth, protecting the wealth is going to be key to maintaining your lifestyle and protecting your family for generations to come. Wealth accumulation is just the beginning, as wealth management is what’s really necessary in order to continue financial independence.
The job title of “wealth advisor” is also just another label and category of a financial advisor. And this title does not require specific certifications or education, but good wealth advisors will hold various certifications.
Would you want someone helping and managing your millions without proper experience? I’d hope not!
How much do Wealth Advisors make?
To continue reading, please go to the original article here:
This Free Gift From The Government Is Going To Expire In A Few Years
.This Free Gift From The Government Is Going To Expire In A Few Years
Notes From The Field By Simon Black
February 18, 2021 Miami, Florida
In the early first century AD, in the final years of his reign, the Roman emperor Augustus imposed a new tax on his subjects called the vicesima hereditatium. In Latin this means literally “twentieth of inheritance”, and in effect it was a 5% tax (i.e. 1/20th) on money and property that was inherited after someone died.
Augustus exempted close relatives from paying the tax-- so someone’s children, for example, didn’t have to pay. But everyone else had to fork over a piece of the action to the Roman state. Subsequent Roman emperors modified the law; Trajan, a second century AD emperor, created a ‘floor’ for the tax, so that anyone who inherited below a minimum amount wouldn’t have to pay.
And, as you can imagine, the tax rate rose over time.
This Free Gift From The Government Is Going To Expire In A Few Years
Notes From The Field By Simon Black
February 18, 2021 Miami, Florida
In the early first century AD, in the final years of his reign, the Roman emperor Augustus imposed a new tax on his subjects called the vicesima hereditatium. In Latin this means literally “twentieth of inheritance”, and in effect it was a 5% tax (i.e. 1/20th) on money and property that was inherited after someone died.
Augustus exempted close relatives from paying the tax-- so someone’s children, for example, didn’t have to pay. But everyone else had to fork over a piece of the action to the Roman state. Subsequent Roman emperors modified the law; Trajan, a second century AD emperor, created a ‘floor’ for the tax, so that anyone who inherited below a minimum amount wouldn’t have to pay.
And, as you can imagine, the tax rate rose over time.
Rome wasn’t the first civilization to come up with an estate or inheritance tax; there’s evidence going all the way back to ancient Egypt that the Pharoahs taxed the property of the dead.
And these days, estate and inheritance taxes remain a perennial favorite of bankrupt governments who are in need of cash.
To them, the only good wealthy person is a dead wealthy person, and there’s nothing they love more than stealing the assets of dead rich people.
After all, the political consequences are minimal: dead people don’t cast ballots (unless they’re voting for Joe Biden.)
The mere concept of a death tax is pretty offensive when you think about it. They tax you when you earn. They tax you when you save. They tax you when you spend. And they even tax you when you die.
But like all taxes, there are always ways around it.
There are steps you can take, for example, to dramatically reduce your income tax (i.e. the taxes you pay when you earn). You can maximize tax efficient retirement contributions, move to a lower tax state, take advantage of Puerto Rico’s extraordinary tax incentives, etc.
You can take steps to reduce taxes when you save-- for example, establishing a robust retirement account like a solo 401(k), or a foreign structure like a Maltese pension plan.
Similarly, you can take completely legal steps to ensure the government doesn’t confiscate your assets once you’ve passed away.
And frankly now is the best time to think about doing this if you’re in the Land of the Free.
This isn’t just for older people. In fact, thinking about estate tax is especially true right now IF YOU’RE YOUNG!
First-- some background.
Just like the Roman Empire under Emperor Trajan, the US federal government has a wealth limit, below which your ‘estate’ is not subject to any tax after you pass away.
But those limits vary from year to year.
2001, for example, was a terrible year to die.
That’s because the estate tax exemption back in 2001 was just $675,000. And the net value of your estate over that amount was taxed at a whopping 55%.
Over time, the exemption went up. And after the tax reform of 2017, the estate tax exemption is now $11.7 million per person, $23.4 million per couple.
Let’s be honest: that’s a lot of money. And most people will think, “Big deal, I’m worth less than $23.4 million, so I don’t even need to think about estate tax.”
But just remember that the $23.4 million exemption is set to expire in 2026, at which point the exemption drops back down to $6 million per person.
Again, though, you might think, “But I’m worth less than $6 million, so I still don’t need to think about estate tax.”
But consider the following:
A) The Bolsheviks who have invaded the media and political establishments LOVE the idea of taxing dead people.
And as the US national debt continues to rise, and the Bolsheviks continue spending unbelievable amounts of money on everything from the Green New Deal to Universal Basic Income (aka ‘Covid Relief’ in disguise), they’re going to need more funding sources.
So it’s totally possible they could whip the estate tax exemption back down to a MUCH lower level.
B) States also have estate and inheritance taxes.
Even if the federal exemption level doesn’t change, bear in mind that states have different limits and taxes too.
For example, Rhode Island’s estate tax exemption is much lower-- around $1.5 million. Washington state’s estate tax maxes out at 20%, and Nebraska’s top inheritance tax rate is 18%.
C) This matters even more if you’re young.
If you’re a broke 20 year old, you might think that making a few million bucks sounds impossible. Don’t underestimate yourself. Life is long and full of opportunity. And as crazy as the world is, talented people of integrity will always be able to create value and build wealth.
I know it’s a difficult exercise when you’re young, but if you think 70+ years down the road, you could easily find yourself having achieved far more financial success than the estate tax exemption.
So taking steps now while the exemption is high makes a lot of sense.
And that’s the entire point: right now the exemption is far greater than most people’s level of wealth, which makes it a golden opportunity to think about estate planning.
For example, setting up a properly structured domestic trust is a great option to consider.
Through a trust, you could still essentially retain control over your assets, but move them out of your taxable estate forever.
Here’s an example: Imagine you’re starting a new business. On day 1, your business is essentially worthless. So you set up a perpetual, revocable trust in South Dakota and move, say, 40% of the shares into your trust.
In time, your business becomes successful and ultimately worth $15 million.
But since 40% of it is held in the trust, at the time of your passing, you -personally- would only own 60% of the shares, i.e. $9 million.
Depending on what the exemption level is at that time, hopefully many decades from now, you may or may not owe estate tax.
But the 40% of the shares that your trust holds, worth $6 million, is completely free of estate tax, presuming the trust is properly structured.
This is one way to shield at least a portion of your assets from estate tax.
It makes sense to consider moving appreciable assets into a trust. You might want to think twice before putting depreciating assets (like a car) into a trust.
But putting shares of a well-managed business, cryptocurrency, or real estate, into a trust, means that as those assets appreciate in value, ALL of it can be shielded from estate tax.
Again, even if you’re well below the exemption level, it makes sense to think about doing this. Because the Bolsheviks could decide tomorrow morning that they want to yank the exemption back down to a much lower level.
Right now, for most people, the current $23.4 million is enormous. They’ve given everyone the opportunity to move (in practical terms) virtually unlimited assets out of our taxable estates.
We know this opportunity is set to end in a few years. And they could change the rules and end this exemption much sooner than that.
So it really makes sense to think now about the future while the window of opportunity is wide open.
To your freedom and prosperity, Simon Black, Founder, SovereignMan.com
36 Things That Are Worth the Money
.36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It’s always tempting to look for the best deal, but some things are simply worth splurging on — even if you’re on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list. I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations — like international travel — might not be realistic now, in the middle of a pandemic, but they’re still worth keeping in mind for the future. These are the purchases experts say you won’t regret.
Hiring a Virtual Assistant
Anthony Clervi, managing partner at Una, said investing in a virtual assistant can be “invaluable.” Hiring an efficient assistant to take care of administrative tasks enables you to focus more on the aspects of your work that need your attention and could help shave hours off your workweek. Virtual assistants typically cost an average of about $16 an hour, according to PayScale.
36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It’s always tempting to look for the best deal, but some things are simply worth splurging on — even if you’re on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list. I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations — like international travel — might not be realistic now, in the middle of a pandemic, but they’re still worth keeping in mind for the future. These are the purchases experts say you won’t regret.
Hiring a Virtual Assistant
Anthony Clervi, managing partner at Una, said investing in a virtual assistant can be “invaluable.” Hiring an efficient assistant to take care of administrative tasks enables you to focus more on the aspects of your work that need your attention and could help shave hours off your workweek. Virtual assistants typically cost an average of about $16 an hour, according to PayScale.
Working Out With a Personal Trainer
Personal trainers cost an average of $26 per hour, PayScale reports. This might seem like an unnecessary expense, but personal trainers can help you meet fitness goals that you might not be able to achieve on your own — and you can’t put a price on your health. The benefits of hiring a trainer include a personalized workout, detailed instruction, motivation, accountability, a variety in your workouts and efficiency, according to Livestrong.
“Hiring a fitness coach is absolutely worth the investment and here’s why: If you’re Batman, your physical body is your Batmobile, which means it’s the vehicle that not only allows you to move and perform optimally as a human being, but keeps you feeling confident and attractive when you look in the mirror each day,” said Andrew White, co-founder of IVRY Fitness. “We pay for tons of things in life that function purely for our own entertainment, so why not flip the script and invest in yourself?”
If a personal trainer is out of your budget, do the next best thing and join a gym.
To continue reading, please go to the original article here:
Americans’ Biggest Financial Regrets
.Americans’ Biggest Financial Regrets
Laura Woods Last updated: Feb. 16, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice. A 2019 survey conducted by Policy Genius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone.
The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Here’s a look at the top financial regrets, along with advice to help make the problem a thing of the past.
Americans’ Biggest Financial Regrets
Laura Woods Last updated: Feb. 16, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice. A 2019 survey conducted by Policy Genius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone.
The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Here’s a look at the top financial regrets, along with advice to help make the problem a thing of the past.
1. Credit Card Debt
Credit card debt can easily creep up on you. Whether you need to swipe the plastic to pay an unplanned expense or get tempted by something fun — i.e., an expensive pair of shoes or a big screen TV — racking up unpaid balances adds up fast. One-quarter (25.1%) of people ages 35 and up cite incurring credit card debt as their biggest regret of the decade. Slightly lower, 21.5% of people ages 18 to 34 share this sentiment.
How To Tackle Credit Card Debt
If you have credit card debt, you’re in good company. Consumer credit card debt reached a record-high of $829 billion in 2019, according to Experian. Additionally, retail credit card debt totaled a record-breaking $90 billion.
Now is the time to stop being weighed down by credit card debt. If you’re ready to take action, total up all of your balances, so you know where you stand. Then decide if you’d like to take the avalanche approach — paying the highest interest cards first — or the snowball approach — paying the lowest balance first.
To continue reading, please go to the original article here:
https://www.yahoo.com/finance/news/americans-biggest-financial-regrets-130036807.html
25 Things You Should Never Do With Your Money
.25 Things You Should Never Do With Your Money
Roger Wohlner August 28, 2020·
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.
25 Things You Should Never Do With Your Money
Roger Wohlner August 28, 2020·
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://finance.yahoo.com/news/21-things-never-money-100016441.html
20 Worst Money Mistakes People Make in the Name of Love
.20 Worst Money Mistakes People Make in the Name of Love
Don't let finances ruin your romance.
By Andrew Lisa August 25, 2020
While it’s true that love might not cost a thing, plenty of romances fall victim to money — or at least to money mistakes. Money and relationships are inseparable, and if you mismanage the former, the latter hardly stands a chance. From secrecy and poor communication to conflicting priorities and plain old bad decisions, some of the best relationship advice helps two people avoid the pitfalls of money mistakes in romance. Find out if you and your partner are making common money mistakes, and discover how these mistakes can hurt your relationship.
Keeping Money a Secret
It’s important to be open about money as it is to be open about even the most intimate aspects of your love life.
20 Worst Money Mistakes People Make in the Name of Love
Don't let finances ruin your romance.
By Andrew Lisa August 25, 2020
While it’s true that love might not cost a thing, plenty of romances fall victim to money — or at least to money mistakes. Money and relationships are inseparable, and if you mismanage the former, the latter hardly stands a chance. From secrecy and poor communication to conflicting priorities and plain old bad decisions, some of the best relationship advice helps two people avoid the pitfalls of money mistakes in romance. Find out if you and your partner are making common money mistakes, and discover how these mistakes can hurt your relationship.
Keeping Money a Secret
It’s important to be open about money as it is to be open about even the most intimate aspects of your love life.
“Couples are more comfortable discussing sex than money,” said Neale Godfrey, chairman and president of Children’s Financial Network. “They need to be comfortable with both. They should come clean with each other about assets, debt, income and expenses. They also need to set their goals together.” Avoiding money conversations can result in a change in the relationship’s power dymanic.
Leaving Financial Responsibilities to Just One Partner
It takes two to tango — and this has never been truer than when it comes to financial heavy lifting. This includes paying the bills and the management of investments. “Both partners need to have a clear handle on the inflows and outflows of money,” Godfrey said. “Even if you hate paying bills, do it.”
Concealing Your ‘Financial Personality’
Being real about who you are and accepting the other person as he or she is can mean the difference between relationship success and couple catastrophe — especially where money is concerned.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/relationships/worst-money-mistakes-couples-make/
Why I Talk Openly About My Money Mistakes
.Why I Talk Openly About My Money Mistakes
Talking about money is an enduring taboo. It shouldn't be.
By Nicole Spector February 9, 2021
Americans are very good at spending money, but not so good at talking about it. Sure, people will mention being broke or having just gotten paid. But discussing hard truths about money — like the mistakes we’ve made with spending, or the distinct path we’re on to save more in the years ahead — isn’t normal social conversation.
The subject of money isn’t as forbidden as it was in say, the 1950s, thanks to an escalation of awareness around issues such as pay transparency and the gender wage gap. But it’s still not embraced as a regular part of the conversation. As a March 2020 article in the Atlantic noted, the topic of finances is taboo partly because money (or lack of it) can make us feel bad — and who wants to talk about bad stuff?
To answer that question, financial blog author Peti Morgan wants to talk about money. More specifically, she wants to talk about her money mistakes and the valuable lessons she learned as a result of those mistakes. And Morgan had quite a few money problems not too long ago.
Why I Talk Openly About My Money Mistakes
Talking about money is an enduring taboo. It shouldn't be.
By Nicole Spector February 9, 2021
Americans are very good at spending money, but not so good at talking about it. Sure, people will mention being broke or having just gotten paid. But discussing hard truths about money — like the mistakes we’ve made with spending, or the distinct path we’re on to save more in the years ahead — isn’t normal social conversation.
The subject of money isn’t as forbidden as it was in say, the 1950s, thanks to an escalation of awareness around issues such as pay transparency and the gender wage gap. But it’s still not embraced as a regular part of the conversation. As a March 2020 article in the Atlantic noted, the topic of finances is taboo partly because money (or lack of it) can make us feel bad — and who wants to talk about bad stuff?
To answer that question, financial blog author Peti Morgan wants to talk about money. More specifically, she wants to talk about her money mistakes and the valuable lessons she learned as a result of those mistakes. And Morgan had quite a few money problems not too long ago.
Opening Up About Money Can Be Terrifying at First
As the founder of the Leveraged Mama financial blog, podcaster and online business coach, Morgan discovered that the best way to tackle your financial problems is to treat them like any other problem — starting with admitting you have a problem in the first place.
A year ago, prior to embarking on her financial blogging journey, Morgan was ashamed of just how deep into debt she’d found herself. She was possibly even more ashamed to talk openly about it.
“I was worried that setting off on this journey so publicly would mean the loss of respect, pride and friends,” she said. “I knew that by sharing (about my failures), people I knew personally would find out about all the stupid things I had done with my money. I could lose respect. I could lose friends.”
But owning her problems and failures was, for Morgan, the only true way to overcome them.
“I had to stand up and declare to anyone who cared to read about me that I had failed,” she said. “I knew that I needed to be honest about how much debt I was in, and how I got into that much debt.”
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/savings-advice/why-talk-about-money-mistakes/
12 Essential Money Tips for Every Phase of Your Financial Life
.12 Essential Money Tips for Every Phase of Your Financial Life
By Gabrielle Olya
Get The Secrets Money Experts Want You To Know.
Everyone makes money missteps at some point in their lives, whether it’s splurging on unnecessary items or neglecting to contribute to retirement funds as soon as possible. Even financial pros are not immune to making mistakes. To help you avoid unnecessary pitfalls, check out these tips and tricks that can help you live your best money life — no matter your age.
Start With Saving
More than half of Americans have less than $1,000 in savings, a 2019 GOBankingRates survey found. Although it’s tempting to spend rather than save when you get a paycheck, it’s important to prioritize putting money away into your checking or savings account. On top of that, you should also use the right checking or savings accounts to grow your money.
12 Essential Money Tips for Every Phase of Your Financial Life
By Gabrielle Olya
Get The Secrets Money Experts Want You To Know.
Everyone makes money missteps at some point in their lives, whether it’s splurging on unnecessary items or neglecting to contribute to retirement funds as soon as possible. Even financial pros are not immune to making mistakes. To help you avoid unnecessary pitfalls, check out these tips and tricks that can help you live your best money life — no matter your age.
Start With Saving
More than half of Americans have less than $1,000 in savings, a 2019 GOBankingRates survey found. Although it’s tempting to spend rather than save when you get a paycheck, it’s important to prioritize putting money away into your checking or savings account. On top of that, you should also use the right checking or savings accounts to grow your money.
Avoid Lifestyle Inflation
It’s important to increase your savings rate whenever you start earning more in order to keep growing your net worth. “Save one-third of every pay raise you get so you don’t succumb to lifestyle inflation,” said Ted Jenkin, a certified financial planner. By starting this practice early in your career, you’ll develop good habits like saving, investing and paying down debts instead of spending it on more stuff you won’t care about in a few years’ time.
Don't Waste Your Money on Things You Don't Need
Whether you’ve just received your first paycheck or your first raise, it can be tempting to spend your money on things you want rather than on things you need — but this can be a huge mistake.
“Don’t spend so much money on clothing,” said Michelle Schroeder-Gardner, founder of the personal finance blog “Making Sense of Cents.” “I’ve worked full-time since I was around the age of 14, yet I didn’t really start saving money until nearly a decade later.”
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10 Simple Habits of Money-Smart Individuals
.10 Simple Habits of Money-Smart Individuals
By Tracie Fobes Last updated: Jan. 20, 2021
Master these successful money habits to boost your wealth.
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.
10 Simple Habits of Money-Smart Individuals
By Tracie Fobes Last updated: Jan. 20, 2021
Master these successful money habits to boost your wealth.
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.
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