25 Secrets Every Rich Person Knows
.25 Secrets Every Rich Person Knows
Gabrielle Olya Tue, June 22, 2021
If it seems like the rich know something about money that the rest of us don't, it's probably because they do. There must be some reason the richest 1% of people now hold more than 40% of the world's wealth, according to the Credit Suisse Global Wealth Report. Maybe the rich have certain secrets to accumulating wealth -- but that doesn't mean what they know has to remain a mystery. Learn about strategies that you can use so you can build your own wealth, too.
Spending Must Align With Goals
One of the keys to being rich is having goals, said Michael Kay, president of Financial Life Focus and author of "The Feel Rich Project." "(The rich) know what they care about," he said. "Maybe it's passing wealth to another generation, maybe it's attaining a particular lifestyle. They are mindful of not wasting resources on things that have no value."
25 Secrets Every Rich Person Knows
Gabrielle Olya Tue, June 22, 2021
If it seems like the rich know something about money that the rest of us don't, it's probably because they do. There must be some reason the richest 1% of people now hold more than 40% of the world's wealth, according to the Credit Suisse Global Wealth Report. Maybe the rich have certain secrets to accumulating wealth -- but that doesn't mean what they know has to remain a mystery. Learn about strategies that you can use so you can build your own wealth, too.
Spending Must Align With Goals
One of the keys to being rich is having goals, said Michael Kay, president of Financial Life Focus and author of "The Feel Rich Project." "(The rich) know what they care about," he said. "Maybe it's passing wealth to another generation, maybe it's attaining a particular lifestyle. They are mindful of not wasting resources on things that have no value."
According to Kay, the wealthy tend to spend money only on things they care about. The rest of us can learn from this by setting our own goals and then monitoring our spending to see if it aligns with those goals.
Don’t Waste Money To Impress Others
Most rich people don't spend their time and money trying to impress others, Kay said. "They are not in a race. They know they have made it, so their attention is not on what others think." In fact, many wealthy individuals wouldn't have become rich if they had spent their hard-earned money buying things to keep up with others, he added.
Authors Thomas Stanley and William Danko said much the same thing in their 1996 best-seller, "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," writing that a couple of key secrets of the country's richest people are living below their means and rejecting big-spending lifestyles.
Spending money to appear rich before you actually are rich is a surefire way to sabotage your wealth-building goals. So, forget about the Joneses and focus on what matters: accumulating wealth in the coming years.
Have Plenty of Liquidity
The rich make sure they have sufficient liquidity, or cash, to cover their short-term needs. They maintain an emergency fund so "they don't have to disrupt their life for an unexpected occurrence," Kay said. The fact that rich people have money set aside for a rainy day isn't solely a function of their wealth. They have cash reserves because they are disciplined enough to save.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/25-secrets-every-rich-person-210022728.html
LBJ Called, He Wants His Inflation Back
.LBJ Called, He Wants His Inflation Back
Notes From the Field by Simon Black June 21, 2021 Cancun, Mexico
1960 was supposed to have been a fantastic year. The world was largely at peace for the first time in decades and had fully recovered from the influenza pandemic that had broken out in the late 1950s. Exciting new technology was rapidly developing, from color TV to the invention of the microchip.
In the United States, the country was getting ready to decide a Presidential race between two young candidates, both in their 40s. That had never happened before (or since) in the history of US presidential elections.
Overall there was a lot of optimism and energy as a new decade emerged.
And then, without warning, a recession struck the US economy.
LBJ Called, He Wants His Inflation Back
Notes From the Field by Simon Black June 21, 2021 Cancun, Mexico
1960 was supposed to have been a fantastic year. The world was largely at peace for the first time in decades and had fully recovered from the influenza pandemic that had broken out in the late 1950s. Exciting new technology was rapidly developing, from color TV to the invention of the microchip.
In the United States, the country was getting ready to decide a Presidential race between two young candidates, both in their 40s. That had never happened before (or since) in the history of US presidential elections.
Overall there was a lot of optimism and energy as a new decade emerged.
And then, without warning, a recession struck the US economy.
As usual, almost nobody saw it coming. The Federal Reserve was just as surprised as the US government when everyone noticed that industrial production began to drop in February 1960.
Manufacturing declined, GDP fell, and unemployment rose steadily, reaching 7% by May 1961-- a level rarely seen since the Great Depression.
The government responded with its usual playbook; after Kennedy narrowly won the election of 1960 (despite significant evidence of voter fraud), he immediately endeavored to make good on his election promise: “Get the country moving again.”
He started with billions in stimulus spending-- highway spending, extended unemployment benefits, etc.
Kennedy was known to have had little regard for the national debt (which he expanded by 10% in two years). Even before becoming President, JFK had given speeches arguing-- quite bizarrely-- that the national debt is actually a sign of prosperity.
And while Kennedy dumped money into the economy, the Federal Reserve rapidly slashed interest rates, from 4% all the way down to 1.25%.
The measures worked. By 1962, the Fed declared victory over the 1960 recession. They even published a report defending their money printing and aggressive interest rate cuts, citing “an absence of inflationary pressures”.
And that was true. From 1962 through 1964, inflation was less than 2%. The economy was in good shape and everyone was happy.
Lyndon Johnson won the presidency in 1964 after promising to forge a “Great Society,” a term that encompassed widespread social spending on everything from free healthcare to national endowments for art.
Johnson spent billions expanding welfare, food stamps, public transportation, environmental protection, public housing, university funding, etc.
Yet simultaneously, LBJ also rapidly escalated US military involvement in Vietnam.
Prosecuting an unwinnable war while simultaneously building the Great Society proved to be incredibly expensive, and the US national debt grew dramatically under Johnson.
Inflation rose too. In fact 1965 began a long period of what economic historians call “The Great Inflation”. Inflation passed 4% in 1966, and was more than 6% by the end of the decade.
Inflation really started spiraling out of control in the 1970s after then-President Richard Nixon ended the dollar’s convertibility into gold; by 1974 inflation was more than 12%, and peaked at nearly 15% in 1980.
Even throughout the 1980s, annual inflation still held well above 4%… and even in the 1990s and early 2000s inflation hovered near 3% per year on average.
In fact the low inflation we experienced in the past 12-13 years, averaging 1.7% since the 2008 financial crisis, is a major anomaly.
We’re told by the all-knowing, all-powerful central bankers at the Federal Reserve that they will maintain a long-term inflation rate of 2%.
But the Fed’s inflation track record speaks for itself.
Starting with the Great Inflation in the 1960s, and going all the way through 2008, the average annual inflation rate in the Land of the Free has been 4.6%, more than twice as much as the Fed has promised.
So this phenomenon of higher inflation we’re seeing now is nothing new.
Fiscal and monetary conditions today are also quite similar to the early 1960s.
Remember-- in 1960 the US was emerging from a major pandemic, the government was going heavily into debt, and the Federal Reserve was happy to accommodate it all with low interest rates.
Today the US is emerging from a major pandemic. The national debt has soared, and the federal government has an insatiable appetite to spend trillions of dollars on every social program it can dream up.
And then there’s the Federal Reserve— which last week announced they will keep interest rates at near zero until 2023.
Talk about bizarre. It’s obvious to everyone that the economy is roaring back, and businesses are having huge problems finding workers. It’s also obvious that inflation is rising.
Yet the Fed doesn’t seem to notice or care. They’ll continue printing money and maintaining 0% rates, no matter the cost.
All of these factors are huge inflationary pressures.
The numbers will fluctuate month to month, year to year. Some months the inflation numbers will fall. Other months they’ll rise.
But the long-term trend is pretty obvious: massive government spending and low interest rates is like the 1960s Great Inflation all over again.
Remember, even though the Fed insists that they’ll maintain 2% inflation, their actual track record between 1965 and 2008 is an average 4.6% annual inflation rate.
So if your own long-term financial planning is based on the Fed keeping its promised 2% inflation rate, you may be in for a rude awakening.
To your freedom and prosperity, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/trends/lbj-called-he-wants-his-inflation-back-32731/
11 Basic Money Moves Everyone Should Make During Hard Times
.11 Basic Money Moves Everyone Should Make During Hard Times
By Gabrielle Olya
The coronavirus pandemic has taken a major hit on the economy and the personal finances of workers across the country. The national unemployment rate was as high as 14.7% in April 2020. It's down to 6.1% now, but many Americans are still struggling to find jobs that pay them enough to stay afloat.
Whether you've lost your job, are experiencing reduced hours or are among the fortunate Americans who are still employed, here are the money moves experts say everyone should be making right now.
11 Basic Money Moves Everyone Should Make During Hard Times
By Gabrielle Olya
The coronavirus pandemic has taken a major hit on the economy and the personal finances of workers across the country. The national unemployment rate was as high as 14.7% in April 2020. It's down to 6.1% now, but many Americans are still struggling to find jobs that pay them enough to stay afloat.
Whether you've lost your job, are experiencing reduced hours or are among the fortunate Americans who are still employed, here are the money moves experts say everyone should be making right now.
Review Your Budget
It's important to revisit your budget so you know exactly how much money you have coming in and how much you will need to cover essentials.
"A budget is key to feeling financially secure right now and determining if you can make ends meet," said Tony Drake, CFP and founder of Drake & Associates in Waukesha, Wisconsin. "Write out your budget. List all your expenses, including fixed expenses like your mortgage, car payment and cell phone bill. It should also include variable expenses, such as utility payments, groceries and entertainment. Then determine how much income you have coming in. If your expenses outweigh your income, you’re going to have to take a hard look at where you can cut, even if it’s temporary."
Cut Back on Nonessential Spending as Much as Possible
"During these unprecedented times there are many things you cannot control, but how you save and spend is something you can manage," said Lindsay Sacknoff, head of consumer deposit and payment products at TD Bank. "Today's financial decisions will build a cushion to help you plan for what may lie ahead."
To this end, she recommends cutting out nonessential expenses -- any expenses outside of groceries, prescriptions, rent and utilities.
"By cutting out any non-essentials from your budget, you can easily save a few hundred dollars in the coming months," Sackoff said. "Putting your gym membership on hold, canceling a streaming service you never use, and cleaning your home instead of hiring a service are all luxuries that aren’t necessary."
Reevaluate Your Spending on 'Wants'
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/savings-advice/money-moves-make-during-hard-times/
Rich People Who Won’t Leave Money to Their Kids
.Bill Gates and 15 More Rich People Who Won’t Leave Money to Their Kids
By Rachel Hoffman March 4, 2021
These members of the elite want their kids to tough it out.
Having rich and famous parents comes with its perks -- which can include a sizable inheritance. But some business people and celebrities aren't looking to pass on their riches to their kids. Instead, they're looking to donate their riches to charity or just want their kids to tough it out.
Mark Zuckerberg
Facebook founder Mark Zuckerberg became a billionaire before the age of 32 and is today worth $104 billion. But he won't be sharing the majority of his money with his daughters, Max (age 4) or August (age 3). In a letter to their newborn daughter in 2015, Zuckerberg and his wife, Priscilla Chan, pledged to give away 99% of their company shares, which topped $45 billion at the time.
Bill Gates and 15 More Rich People Who Won’t Leave Money to Their Kids
By Rachel Hoffman March 4, 2021
These members of the elite want their kids to tough it out.
Having rich and famous parents comes with its perks -- which can include a sizable inheritance. But some business people and celebrities aren't looking to pass on their riches to their kids. Instead, they're looking to donate their riches to charity or just want their kids to tough it out.
Mark Zuckerberg
Facebook founder Mark Zuckerberg became a billionaire before the age of 32 and is today worth $104 billion. But he won't be sharing the majority of his money with his daughters, Max (age 4) or August (age 3). In a letter to their newborn daughter in 2015, Zuckerberg and his wife, Priscilla Chan, pledged to give away 99% of their company shares, which topped $45 billion at the time.
According to the letter, the couple's goal in donating the funds is to "advance human potential and promote equality for all children in the next generation."
Sting
British musician Sting, who has a net worth of $400 million, said that he's not leaving any cash to his six children -- Joe, Fuchsia, Mickey, Jake, Eliot and Giacomo. In an interview with the Daily Mail, the musician said he plans to spend the majority of his fortune.
"I told them there won't be much money left because we are spending it," he said, citing previous commitments for his wealth. While Sting said he would help his children out if they were in trouble, he doesn't believe that will be necessary. "They have the work ethic that makes them want to succeed on their own merit," he said.
Elton John
Elton John and his husband David Furnish have a combined net worth of $550 million, but they do not plan to leave much of it to their sons, Elijah and Zachary.
"Of course I want to leave my boys in a very sound financial state. But it's terrible to give kids a silver spoon. It ruins their life," the music icon told the Daily Mirror. "Listen, the boys live the most incredible lives. They're not normal kids and I'm not pretending they are. But you have to have some semblance of normality, some respect for money, some respect for work."
Bill Gates
Bill Gates, who has a net worth of $137 billion, is not planning to turn over his massive fortune to his kids, Jennifer, Rory and Phoebe. The business mogul recently explained that his children will be given every opportunity to get an education, but they will not be left to live off a hefty inheritance.
"Our kids will receive a great education and some money, so they are never going to be poorly off, but they'll go out and have their own career," he said to "This Morning." "It's not a favor to kids to have them have huge sums of wealth. It distorts anything they might do, creating their own path."
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10 Reasons Why Talking To Kids About Money Is More Important Than Ever
.10 Reasons Why Talking To Kids About Money Is More Important Than Ever
By Gabrielle Olya
The coronavirus pandemic has disrupted many families' finances. Many parents have lost their jobs or have had their hours cut and are bringing in reduced earnings. Others might have lost money due to the stock market plummeting. These changes can obviously have an effect on their children, but money can be a difficult thing to talk to kids about. Even if you haven't felt adverse effects from the coronavirus pandemic personally, it's still a good time to have an honest conversation about money with your kids.
Here's why now is a good time to talk to your kids about money, plus how to have these important financial conversations.
10 Reasons Why Talking To Kids About Money Is More Important Than Ever
By Gabrielle Olya
The coronavirus pandemic has disrupted many families' finances. Many parents have lost their jobs or have had their hours cut and are bringing in reduced earnings. Others might have lost money due to the stock market plummeting. These changes can obviously have an effect on their children, but money can be a difficult thing to talk to kids about. Even if you haven't felt adverse effects from the coronavirus pandemic personally, it's still a good time to have an honest conversation about money with your kids.
Here's why now is a good time to talk to your kids about money, plus how to have these important financial conversations.
It's Always a Good Idea To Talk To Kids About Money, No Matter the Circumstances
"First and foremost, I think it is a common mistake among parents to either wait until there are challenging financial times before they have the money talk with their children or never talk about money at all," said Kristina Morales, an MBA in banking and finance with more than 20 years of experience in commercial banking. "This is so important because it will help kids to better understand when parents need to make changes to their spending or lifestyle when difficult times arise. If they have no understanding or appreciation of where money comes from and how it works, they may have a very difficult time when times call for change or sacrifice."
Parents Now Have Time To Do It
"When financial literacy is not taught in schools and we have some important quality time available these days, it makes all the sense in the world to talk to your kids about something as important as finances and money," said Sandra D. Adams, CFP, partner at the Center for Financial Planning, Inc. in Southfield, Michigan.
Kids Will Be Seeing the Impact of Job Loss in Real Time
With parents losing jobs and assets, having open communication with your children about the new reality is important.
"This is a time when families are all together and when kids of all ages will have to see in real terms how the impact of job losses, job furloughs, asset losses and the need to cut back on expenses affect the entire family," Adams said. "The 'we are all in this together' motto here can make this a family affair, and they can be part of figuring out where the household can save on costs, cut back on expenses, etc. Lessons learned during these lean times will benefit children and parents alike, even when times get better and as children grow into adults."
Honesty Helps Children Become Comfortable With Talking About Money
Money is often seen as a taboo topic, but now is a good time to open up the lines of communication and encourage your kids to talk freely about financial matters.
"Right now are very tough times for so many families around the country, but it’s important to tell children about the circumstances that have occurred, be it a layoff or a reduction in pay or a loss in savings because of stock market trends," said Brent Weiss, CFP, chief evangelist at Facet Wealth. "Being honest helps children start to feel comfortable talking about money and learning about the importance of difficult decisions."
There Are Examples of Generosity and Good News Around Finances Now, Too
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https://www.gobankingrates.com/saving-money/family/reasons-talking-kids-money-important-ever/
Why You Need To Cut Your Kids Off — and How To Do It
.Why You Need To Cut Your Kids Off — and How To Do It
By Gabrielle Olya
Find out how to stop enabling your grown child.
If you're an empty nester who's still financially supporting your adult children, you're not alone. A survey of more than 1,800 empty nesters across the country conducted by 55places, an adult community comparison site, found that nearly 40% are still financially supporting their children in some way. Those who are still providing financial support spend an average of $254 per month on their child or children, with the most common expenses being cellphone plans, rent and groceries.
Although you might feel compelled to lend a helping financial hand to your kids, doing so can put you at risk of jeopardizing your own finances and retirement plans. Take these steps to cut off your children so you can retire comfortably one day.
Why You Need To Cut Your Kids Off — and How To Do It
By Gabrielle Olya
Find out how to stop enabling your grown child.
If you're an empty nester who's still financially supporting your adult children, you're not alone. A survey of more than 1,800 empty nesters across the country conducted by 55places, an adult community comparison site, found that nearly 40% are still financially supporting their children in some way. Those who are still providing financial support spend an average of $254 per month on their child or children, with the most common expenses being cellphone plans, rent and groceries.
Although you might feel compelled to lend a helping financial hand to your kids, doing so can put you at risk of jeopardizing your own finances and retirement plans. Take these steps to cut off your children so you can retire comfortably one day.
One-Third of Parents Said They Would Delay Retirement To Help Their Kids Financially
According to a separate survey conducted by Ameriprise, about one-third of Americans ages 30 to 69 with at least $100,000 in investable assets have delayed their own retirements or would do so to help their kids pay for college. The survey also found that 80% of respondents either have given or plan to give financial assistance to their children to pay for their first car. Another 78% either have contributed or plan to contribute toward their children's wedding expenses, while 40% either have contributed or plan to contribute toward their children's first home purchase.
Before you reach into your wallet, make sure you know the risks of continuing to provide financial help to your kids.
Paying For Your Kids Can Hinder Their Ability To Be Financially Independent
Allowing your grown children to lean on you financially can end up hurting them in the long run, said Ryan Moore, founder and CEO of Kingman Financial Group in Corpus Christi, Texas.
"If you’re a parent financially supporting children into adulthood, you’re enabling them to be reliant on your financial support for the rest of their lives," he said. "It’s critical that you teach your children the value and responsibility of earning and managing money."
It Can Harm Your Own Financial Health
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https://www.gobankingrates.com/saving-money/family/why-you-need-to-cut-kids-off-how-to-do-it/
The Best Financial Advice From 7 Real Dads
.The Best Financial Advice From 7 Real Dads
Jordan Rosenfeld Fri, June 18, 2021,
Learning how to earn, manage and invest money isn’t something that kids are typically taught in school. In fact, according to Youth.gov, many kids lack basic financial knowledge of everyday situations, from budgeting to reading an invoice. In one financial survey, high school seniors only scored an average of 48% correct, revealing a need for financial education. Who better to get money advice from, then, than dads with financial expertise? Here’s what seven fathers with real-life wisdom shared.
Adopt a Growth Mindset
Jonathan Sanchez, father of two, a real estate investor and co-founder of Parent Portfolio, teaches his kids to think beyond just how much something costs.
The Best Financial Advice From 7 Real Dads
Jordan Rosenfeld Fri, June 18, 2021,
Learning how to earn, manage and invest money isn’t something that kids are typically taught in school. In fact, according to Youth.gov, many kids lack basic financial knowledge of everyday situations, from budgeting to reading an invoice. In one financial survey, high school seniors only scored an average of 48% correct, revealing a need for financial education. Who better to get money advice from, then, than dads with financial expertise? Here’s what seven fathers with real-life wisdom shared.
Adopt a Growth Mindset
Jonathan Sanchez, father of two, a real estate investor and co-founder of Parent Portfolio, teaches his kids to think beyond just how much something costs.
“I give my kids the money advice to not think that they cannot afford anything, such as a toy or a game. Instead, I encourage them to ask themselves, how can they afford it? This question promotes a growth mindset that [they] can use in all aspects of life, including finances, such as having a savings goal.”
When his 7-year-old son wanted to subscribe to an online learning game, the boy came up with the idea of selling his unused toys to help him reach his goal.
Maximize Your Retirement by Starting Early
For young people, retirement is a theoretical idea that will happen “someday.” But according to dad David Steiner, a principal of Zebulon Tax Advisory LLC, the earlier you start putting money away for that day, the more likely you won’t have to worry about money in retirement. For example, he ran the numbers on a 401(k).
The math is simple: “$20,000 (limit is $19,500) per year for 20 years is $400,000, and with growth at 6% (which is really low, the market averages 9-11%), it will turn into about $865,000. If you increase the rate of return to 8%, the amount is now about $1.2 million. Not bad. If held for 40 years at 6% — $3.4 million, 8% — over $6 million — one can retire on that comfortably.” The same goes for an IRA.
Pay Yourself First, but Live Below Your Means
Bryce Welker, owner and CEO of CPA Exam Guy, an e-learning and course review resource for CPA exam candidates, tells his kids two main things:
“One would be pay yourself first, the second would be live below your means. The first is an inducement to save money. Whenever you get paid, whether that’s through investing or employment income, prudent financial planning for the future involves setting aside money for your savings account first before spending money on anything else. The next budgetary allocation would be to your bills, followed by discretionary spending.”
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/best-financial-advice-7-real-110000968.html
7 ‘Taboo’ Money Topics We Should Be Openly Discussing
.7 ‘Taboo’ Money Topics We Should Be Openly Discussing
Gabrielle Olya Sat, June 19, 2021, 2:00 PM
Talking openly about money has been seen as taboo for years. But it seems that millennials are now trying to buck the trend. A recent Wall Street Journal article noted that young adults are more open to talking about their finances than older generations -- and this might be a good thing
How Your Parents Plan To Support Themselves in Retirement
It can be uncomfortable to discuss financial plans with your parents, but not having these conversations now can make things more difficult for you and your siblings down the line if it turns out that your parents don't have a retirement plan in place.
7 ‘Taboo’ Money Topics We Should Be Openly Discussing
Gabrielle Olya Sat, June 19, 2021, 2:00 PM
Talking openly about money has been seen as taboo for years. But it seems that millennials are now trying to buck the trend. A recent Wall Street Journal article noted that young adults are more open to talking about their finances than older generations -- and this might be a good thing
How Your Parents Plan To Support Themselves in Retirement
It can be uncomfortable to discuss financial plans with your parents, but not having these conversations now can make things more difficult for you and your siblings down the line if it turns out that your parents don't have a retirement plan in place.
"We should definitely talk more with our aging parents about their financial situations and how to plan for them -- not just with the parents, but also other siblings," said Yaron Ben-Zvi, CEO of Haven Life, a life and disability insurance agency. "This isn't always easy, but can avoid a lot of stress down the road if aging parents don't actually have the resources they need to live comfortably in their golden years."
Your Own Retirement Plans
In addition to being aware of your parents' plans for retirement, you may also want to check in with your peers to make sure that you yourself are on track -- even if retirement currently seems far away.
‘Saving for retirement’ is a nebulous phrase that many people do not understand fully, and therefore, they put it off longer than necessary," said Leslie Tayne, founder and head attorney at the debt solutions law firm Tayne Law Group. "By speaking openly about how much one has saved for retirement and their saving practices, it becomes easier for those younger or newer to saving to understand the scope of long-term financial stability and goals."
Estate Plans
Talking about money -- especially in the context of death -- can make anyone uneasy, but you should be discussing estate plans with both your partner and your parents.
"Talking about death or severe illness/disability with your partner is probably not your idea of romantic pillow talk, but estate planning is, in some ways, a final act or expression of love," said Tara Falcone, CFA, CFP, founder of ReisUP and ambassador for Trust & Will.
"Your medical or end-of-life wishes are the last thing you want your loved ones to be stressed out about if something happens to you. For example, when my father passed away at 36 years old, he didn’t have a will, nor had we discussed his wishes even though we knew his illness would likely take him. Not having those documents in place fueled a lot of heated discussions and sleepless nights that could have been avoided."
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/7-taboo-money-topics-openly-180004560.html
Overcoming The Downer Of No Longer Making Maximum Money
.Overcoming The Downer Of No Longer Making Maximum Money
06/18/2021 by Financial Samurai
Do you know what is really hard? Deciding to walk away from a whole lot of money in your prime. If you decide to retire early, you must accept the death of your maximum money potential.
At age 34, I was making a base salary of $250,000. Come year-end, my bonus would range between $0 to $500,000. Instead of suffering from the one more year syndrome for one more year, I decided to quit the money by negotiating a severance instead.
If I hadn’t left my job and averaged a realistic $500,000 a year in total compensation since 2012, I would have made $4.5 million by now. And if I had gotten regular raises and promotions, maybe I would have made more than $7 million after nine years. ** Perhaps I should have stayed in finance after all!
Overcoming The Downer Of No Longer Making Maximum Money
06/18/2021 by Financial Samurai
Do you know what is really hard? Deciding to walk away from a whole lot of money in your prime. If you decide to retire early, you must accept the death of your maximum money potential.
At age 34, I was making a base salary of $250,000. Come year-end, my bonus would range between $0 to $500,000. Instead of suffering from the one more year syndrome for one more year, I decided to quit the money by negotiating a severance instead.
If I hadn’t left my job and averaged a realistic $500,000 a year in total compensation since 2012, I would have made $4.5 million by now. And if I had gotten regular raises and promotions, maybe I would have made more than $7 million after nine years. ** Perhaps I should have stayed in finance after all!
The more you make, the harder it is to walk away. I told myself back then that if I didn’t leave, I probably never would break free from the golden handcuffs. Many people who dislike working in finance, management consulting, and big tech after a while have this same problem. It’s hard to drop your maximum money potential.
However, if you’re unhappy with your current situation, you must find a solution to overcome the desire for more money.
Some call this desire greed. But greed is not the right term if you’re still trying to build your financial nut. You’re only greedy if you have enough but still work like mad doing something you don’t like or that has no benefit to society.
How To Be OK With No Longer Making Maximum Money
Everybody has the ability to make a certain amount of money. Income has a range that usually increases the older you get. Rational people are also realistic with how much money they can make. If you decide to work for the government, you know your pay will be within a very tight band. Alternatively, if you decide to become an entrepreneur, your income upside is unlimited.
Let me share with you the steps I took to be at peace with no longer trying to make maximum money. In the process of walking away, I also lost my title and became a nobody. For some, walking away from prestige is even more difficult than walking away from money.
1) Envision What Your Life Would Be Like Making More
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Why Money Is Important And The Role It Plays in Our Lives
.Why Money Is Important And The Role It Plays in Our Lives
At some point, you may wonder why money is important and start to analyze the role it plays in your own life. And our society has plenty of different viewpoints when it comes to money and happiness, how much money is truly enough, and how to better with money.
I’m sure you have heard many of the different sayings about money too, whether funny or to hit a particular point to make you think. You know the ones, like:
“Money doesn’t buy happiness.” – Proverb “Money is the root of all evil.” – 1 Timothy 6:10
“Having money isn’t everything, not having it is.” – Kanye West
But you’ve probably heard many proverbs, famous quotes, or other sayings from people around you. And while there may be some truth to not let money dictate your entire life and choices, money IS important.
Why Is Money So Important?
Why Money Is Important And The Role It Plays in Our Lives
At some point, you may wonder why money is important and start to analyze the role it plays in your own life. And our society has plenty of different viewpoints when it comes to money and happiness, how much money is truly enough, and how to better with money.
I’m sure you have heard many of the different sayings about money too, whether funny or to hit a particular point to make you think. You know the ones, like:
“Money doesn’t buy happiness.” – Proverb “Money is the root of all evil.” – 1 Timothy 6:10
“Having money isn’t everything, not having it is.” – Kanye West
But you’ve probably heard many proverbs, famous quotes, or other sayings from people around you. And while there may be some truth to not let money dictate your entire life and choices, money IS important.
Why Is Money So Important?
The reason money is so important is that it provides options for you to live a better life that you choose and puts you in control. Having money and being comfortable with finances also gives you freedom and options to decide how you want to live and support the things you care most about in your life.
And yes, it’s true that money cannot necessarily buy you complete happiness forever and greed can make people do terrible things. Look what the hunger for more wealth and money did to Bernie Madoff and how he ruined the many families who invested with him.
But while there is truth to some of the negative connotations to money, ultimately you have the strength to dictate how you use money and if you let it control you.
Money is not everything in this world, but it can be powerful in helping you achieve your goals and let you make the best of the short life we all have.
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Why You Should Wait To Buy A House
The Definitive Guide To Buying Your First Home
‘The market is as hot as we’ve ever seen it:’ Why you should wait to buy a house
Published Thu, Jun 17 2021 Updated Thu, Jun 17 202112:31 PM EDT
Alicia Adamczyk
With prices for new and existing homes at record levels and demand still sky-high, prospective buyers might be better off waiting for more inventory and less competition, housing experts say.
Currently, houses are staying on the market for an average of six days nationwide, according to data from Zillow, an impressively fast turnaround. That’s a seller’s dream, but potentially bad news for buyers, who face enormous competition and might end up paying more and forgoing important parts of the homebuying process — like inspections — to get their offer accepted quickly.
A few different factors have created this homebuying environment, says Jeff Tucker, senior economist at Zillow. The most obvious is the Covid-19 pandemic, which accelerated many people’s homebuying timelines. Coupled with historically low interest rates, buyers wanted to lock in extra space and a good deal on their mortgages.
The Definitive Guide To Buying Your First Home
‘The market is as hot as we’ve ever seen it:’ Why you should wait to buy a house
Published Thu, Jun 17 2021 Updated Thu, Jun 17 202112:31 PM EDT
Alicia Adamczyk
With prices for new and existing homes at record levels and demand still sky-high, prospective buyers might be better off waiting for more inventory and less competition, housing experts say.
Currently, houses are staying on the market for an average of six days nationwide, according to data from Zillow, an impressively fast turnaround. That’s a seller’s dream, but potentially bad news for buyers, who face enormous competition and might end up paying more and forgoing important parts of the homebuying process — like inspections — to get their offer accepted quickly.
A few different factors have created this homebuying environment, says Jeff Tucker, senior economist at Zillow. The most obvious is the Covid-19 pandemic, which accelerated many people’s homebuying timelines. Coupled with historically low interest rates, buyers wanted to lock in extra space and a good deal on their mortgages.
That coincided with a large group of millennials, America’s largest generation, reaching their prime homebuying years, says Tucker. He expects demand will continue to be high for a few years as these late-20, early-30-somethings naturally start to nest.
But with such a hot market, prospective homebuyers might be better off waiting until the fall or even next year to buy, Tucker says. Though no one can say with exact certainty what will happen, he says inventory is already starting to rebound a little bit, which will give buyers more options. Zillow expects home prices to stay elevated for the next year, at least.
“This is a really challenging time to be a buyer. The market is as hot as we’ve ever seen it before,” Tucker says. “If they can watch and wait for the next several months, time is on their side.”
Don’t let emotions take over
Of course, many people may not be able to wait for the opportune moment to buy a home, or they simply may not want to put it off for a few more months. And mortgage rates are still low enough that buyers may be willing to forego their dream house to lock in better financing.
But buyers should still consider the urgency of their move, says Kristina Morales, an Ohio-based realtor at Morales Team Real Estate. If you don’t immediately need more space, it might make sense to wait out the crazy market right now, rather than make concessions. Otherwise, be ready to pay a premium.
“If you have to buy right now, you have to be realistic about the offers you’re putting in,” Morales says. “You’re not going to get a deal, you are likely going to pay well over the ask.” She says when she sold her own home earlier this year, she sold it in two days for $75,000 over her asking price.
To continue reading, please go to the original article here:
https://www.cnbc.com/2021/06/17/why-experts-say-you-might-want-to-wait-to-buy-a-new-house.html