.11 Most Unanticipated Disadvantages of Becoming Wealthy

Physicians on FIRE

I’m sure you’re well acquainted with the advantages of becoming wealthy. You can buy what you want, travel in luxury, and when your wealth makes you financially independent, work becomes optional. Have you spent any time considering the disadvantages of becoming wealthy? Perhaps you’ve read the stories of lottery winners who wish they had never played the game. Sudden wealth can, in some instances, create more problems than it solves.

Mark LaForet, the author of today’s Friday Feature, isn’t opposed to building wealth. In fact, you could say he’s all LaForet, but that would be a terrible pun. Mark is also aware that there are some cons to pair with the pros of getting rich, and he highlights 11 of them below.

.9 Things We Should Never Minimize

Lisa Avellan of Simple and Soul.

As minimalists, we strive for less stuff to experience more life. We learn how to detach from our possessions, limit technology, set boundaries with our commitments, and manage our finances with more intention. Our schedules get pared down to the most important appointments, we open our calendars for family time, meeting with a friend, reading, or pursing a passion. Simplicity becomes our goal.

We learn to ask ourselves important questions before adding any item to our life:

“How can this make my life easier?”

“Will this cause more freedom or hold me back?”

.How to Give with More Impact: What You Need to Know

February 18, 2021 by Chelsea

Listen on Spotify Why You've Got to Listen to This Episode...

In today’s episode, I’m talking with In today’s episode, I’m talking with Global Philanthropy Advisor and Expert, Kris Putnam-Walkerly. She is the author of Delusion Altruism, which highlights the truth that how we give is just as important as how much we give. We’re talking about why you don’t need to be wealthy to be a philanthropist, why philanthropists struggle with a scarcity mindset, and how you can take your first step to give with more impact today!

Key Takeaways to Help You Give With More Impact

As always, we’ve rounded up our top three takeaways to summarize what we believe are the core points to remember from Kris.

1 - We Are All Philanthropists

First, we are all philanthropists. As Kris said, philanthropy is a big fancy word that makes people think they need millions of dollars to qualify.

.Investing: The Greatest Show On Earth

Mar 9, 2021 by Morgan Housel

Let me share two quick stories that have nothing to do with investing. I want to convince you of something important and overlooked: Investing is a broader field than it looks, and there is so much to learn about it outside of the narrow lens of finance.

The first comes from forests.

Most young tree saplings spend their early decades under the shade of their mother’s canopy. Limited sunlight means they grow slowly. Slow growth leads to dense, hard wood. But something interesting happens if you plant a tree in an open field: free from the shade of bigger trees, the sapling gorges on sunlight and grows fast. Fast growth leads to soft, airy wood that didn’t have time to densify. And soft, airy wood is a breeding ground for fungus, disease, and ultimately a short life. “A tree that grows quickly rots quickly and therefore never has a chance to grow old,” forester Peter Wohlleben writes.

Which is exactly how it works in business and investing, isn’t it?

.16 Money Rules That Millionaires Swear By

Gabrielle Olya Mon, March 8, 2021

Being a millionaire or billionaire — especially a self-made one — usually requires being disciplined about saving and spending, as well as investing wisely. Although the super rich can splurge on lavish vacations and fancy cars, some eschew a luxurious lifestyle for one that allows them to maintain their wealth over the long-term. So, if you want to live like a millionaire yourself, you’ll have to follow the money rules of the wealthy.

Kristen Bell: Take Advantage of Coupons When Shopping Net worth: $20 million

“Frozen” star Kristen Bell still clips coupons despite her multi-million-dollar wealth.

“I almost exclusively shop with coupons,” she said on “Conan,” sharing that her personal favorite place to shop with coupons is Bed Bath & Beyond. “It’s the best one because they’ve got 20% off, and if you go and buy a duvet or an air conditioner or whatever, you could be saving upwards of $80.”

.5 Major Money Mistakes To Avoid Once You Turn 60

Laura Woods Sun, March 7, 2021

You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.

As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decisions.

When faced with a large amount of cash, it can be tempting to share it with loved ones — i.e., your children — or indulge yourself with luxury items. However, this money needs to last your entire retirement, which could span decades. Here’s a look at common financial blunders you don’t want to make as you get older if you want to avoid a major financial setback.

.How Much Money is Enough?

By Retire Before Dad

How much money is enough to retire or change careers? As my wealth has increased, I've found that net worth is an imperfect measure of enough. A few years ago, somebody asked how much money is enough for me to retire. I used a back of the napkin estimation based on the financial independence number and answered. This was 2015-ish. At the time, I thought the number would be more than enough to live comfortably for the rest of our lives, fund our three children’s college educations, and still travel in retirement.

But sometime in Q4 2019, our family’s net worth (minus home equity) surpassed the number, and since then, we’ve left it in the dust thanks to the Covid-19 dip and recovery rally. According to the 2015 RBD, I could stop working my full-time job today. Yet here I am, with no immediate plans to leave my career. As my wealth has grown, I’ve found that net worth alone is an imperfect indicator of enough.

Enough for What?

.Warren Buffett Says This Is How You Stay Financially Healthy In The Pandemic

Doug Whiteman Tue, March 2, 2021

Warren Buffett isn't letting the pandemic get in his way.

The 90-year-old investing legend has gotten both his COVID shots, and so has his longtime business partner, Charlie Munger, according to a report by Bloomberg. Though Buffett wasn't able to immunize his company from the coronavirus economy, Berkshire Hathaway Inc. has been making a strong recovery. Profits were down 48% last year at the massive conglomerate, but earnings during the final quarter of 2020 jumped 23% from a year earlier.

So, all in all, the billionaire businessman would seem to be weathering the crisis just fine. You can, too — if you follow his lead. Here are six lessons from Buffett on how to protect your money as the pandemic hangs on.