Treasury Bills vs. Bonds: What’s the Difference?
.Treasury Bills vs. Bonds: What’s the Difference?
Patrick Villanova Fri, October 29, 2021,
Fixed-income securities play an important role within individual investment portfolios and the economy at large. But like other securities, fixed-income instruments come in a myriad of variations, from short-term Treasury bills that only pay interest when the bill matures, to long-term Treasury bonds, whose investors receive interest twice yearly. Below, we’ll specifically examine the similarities and differences between Treasury bills, Treasury bonds and other types of bonds. If you’re interested in investing in fixed-income securities, a financial advisor can help you build a balanced portfolio.
Treasury Bills vs. Treasury Bonds
Like their name suggests, Treasury bills and Treasury bonds are debt instruments issued by the U.S. Department of the Treasury to help fund the operations of the federal government.
Treasury Bills vs. Bonds: What’s the Difference?
Patrick Villanova Fri, October 29, 2021,
Fixed-income securities play an important role within individual investment portfolios and the economy at large. But like other securities, fixed-income instruments come in a myriad of variations, from short-term Treasury bills that only pay interest when the bill matures, to long-term Treasury bonds, whose investors receive interest twice yearly. Below, we’ll specifically examine the similarities and differences between Treasury bills, Treasury bonds and other types of bonds. If you’re interested in investing in fixed-income securities, a financial advisor can help you build a balanced portfolio.
Treasury Bills vs. Treasury Bonds
Like their name suggests, Treasury bills and Treasury bonds are debt instruments issued by the U.S. Department of the Treasury to help fund the operations of the federal government.
Since they are backed by the “full faith and credit” of the government, both are extremely low-risk investments known for their relative safety. However, that security comes at a cost for investors. The returns offered by “T-bills” and “T-bonds” often fall well short of the returns of stocks and mutual funds.
The key difference between the two is the amount of time it takes for each to mature. While Treasury bonds are considered long-term debt securities, maturing 30 years after they are sold, Treasury bills are short-term securities that mature within a year and pay less interest than T-bonds. In fact, the maturity period of T-bills can be as short as four weeks.
The other primary difference between T-bills and T-bonds is how interest is paid. A T-bill pays out interest only when it matures. When an investor purchases a T-bill, they’ll pay a discounted rate and later collect the full face value of the bill when it reaches maturity. Treasury bonds work differently, paying out interest to investors twice a year until reaching maturity.
But T-bills and T-bonds share a plethora of similarities. Both are initially purchased at auction, either on the TreasuryDirect platform or through a bank or broker. Both can also be bought and sold on secondary markets. The minimum purchase of either kind of security is $100 and both are sold in increments of $100.
Treasury Bills vs. Savings Bonds
Another common type of bond is the U.S. savings bond. Like T-bills and T-bonds, savings bonds are issued by the Treasury Department to help fund government operations, making them reliable but not lucrative investments. However, unlike T-bills and T-bonds, savings bonds cannot be bought and sold on secondary markets. A savings bond can also be purchased with as little as $25.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/treasury-bills-vs-bonds-difference-192958846.html
Cramer: ‘Stop Freaking Out’ About Inflation”
.Cramer: ‘Stop Freaking Out’ About Inflation” — here's how to profit from soaring costs
Jing Pan Mon, October 25, 2021 MoneyWise
The threat of runaway inflation has many investors running scared — but for once, Jim Cramer isn’t getting too heated. The Mad Money host says there are still plenty of attractive places to put your money, pointing to four sectors in particular that could profit from rising prices.
Cramer: ‘Stop freaking out’ about inflation — here's how to profit from soaring costs
“We’ve got lots of companies that benefit — and many that benefit, you might say, spectacularly — and others that are basically immune,” Cramer said last week on his show. “Plenty of winners out there if you just stop freaking out and start looking at the opportunities.”
Cramer: ‘Stop Freaking Out’ About Inflation” — here's how to profit from soaring costs
Jing Pan Mon, October 25, 2021 MoneyWise
The threat of runaway inflation has many investors running scared — but for once, Jim Cramer isn’t getting too heated. The Mad Money host says there are still plenty of attractive places to put your money, pointing to four sectors in particular that could profit from rising prices.
Cramer: ‘Stop freaking out’ about inflation — here's how to profit from soaring costs
“We’ve got lots of companies that benefit — and many that benefit, you might say, spectacularly — and others that are basically immune,” Cramer said last week on his show. “Plenty of winners out there if you just stop freaking out and start looking at the opportunities.”
Here are the four safe havens Cramer recommends and why you might want to funnel some cash that way, even if it’s just your spare pennies.
Energy
Inflation and commodity booms often go hand in hand, with energy typically leading the charge.
In fact, the price of crude oil has already gone up over 70% year to date, while natural gas prices have more than doubled.
Of the big multinational energy producers, “I like Chevron the most,” Cramer says.
“[The company] yields nearly 5% [and is] committed to spending $10 billion in new technologies that are less energy-intensive.”
Cramer also likes domestic producers that seem to be returning more and more capital to shareholders in the form of dividends — naming Devon Energy and Pioneer Natural Resources as just a couple.
Financials
Banks tend to do well under rising interest rates. And facing growing inflation, the Fed is expected to raise rates as soon as next year.
Cramer points out how well Bank of America, Goldman Sachs and Morgan Stanley have been doing, but he also likes Wells Fargo for being a “wildcard turnaround of this entire stock market.”
After a 70% rally year-to-date, Wells Fargo shares now trade at about the same level as they did in January 2020. The other three stocks, however, are trading well above their pre-pandemic levels.
“Wells Fargo can have a ton of upside if it finally gets its house in order,” Cramer says. “And I’m telling you, it is getting its house in order.”
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/cramer-stop-freaking-inflation-heres-221000510.html
How To Rebound From a Bad Financial Year
.How To Rebound From a Bad Financial Year in 2020
By Andrew Lisa May 17, 2021
Follow these steps to improve your financial health.
Many Americans toasted the end of 2020 and woke up in 2021 realizing that while the end is in sight, we still have a long way to go to conquer the pandemic and right the economy. You may be one of the millions of Americans who lost their jobs, closed a business, faced unexpected expenses or experienced some other major loss due to COVID-19. The first thing to know is this: You are not alone.
Even more comforting, you still have the power to achieve financial freedom despite the setbacks of last year. With a little effort, you can shore up your budget, reduce your expenses and manage your financial recovery. The following short list of actions you can take right now will help you improve your financial health this year.
How To Rebound From a Bad Financial Year in 2020
By Andrew Lisa May 17, 2021
Follow these steps to improve your financial health.
Many Americans toasted the end of 2020 and woke up in 2021 realizing that while the end is in sight, we still have a long way to go to conquer the pandemic and right the economy. You may be one of the millions of Americans who lost their jobs, closed a business, faced unexpected expenses or experienced some other major loss due to COVID-19. The first thing to know is this: You are not alone.
Even more comforting, you still have the power to achieve financial freedom despite the setbacks of last year. With a little effort, you can shore up your budget, reduce your expenses and manage your financial recovery. The following short list of actions you can take right now will help you improve your financial health this year.
Listen To the Experts
One of the easiest steps to take costs nothing but time and could save you a lot of money in the long run: Take advice from people who know what they’re talking about. Personal finance podcasts like “Afford Anything,” “Women & Money,” “Brown Ambition” and “Future Rich” put some of the world’s foremost experts on the subject within your reach — and it costs nothing to listen. Likewise for YouTube channels like “Wealth Hacker” and “BeatTheBush” — and those are just a few.
Do some research, ask your Facebook friends what they like and subscribe to a few shows. Make your time pay by spending it listening to experts who specialize in solving the exact kinds of problems you’re experiencing.
Confront the Reality
It’s natural for people who are behind on their finances to block it all out because it feels too overwhelming to deal with — natural, but unhelpful. Only by staring the beast in the eye can you begin to create a strategy on how to defeat it.
Consider an app like Mint, which unifies your entire financial life under one site. That includes your income, credit cards, subscriptions, bank accounts, loans, investments, retirement accounts and all the rest. You’ll get a clear picture of what’s coming in, what’s going out, which debts are most dire, which expenses are costing you the most and what changes need to be made. Conquering the crucial psychological barrier of confronting the situation is the first step to changing it.
To continue reading, please go to the original article here:
Tips To Keep Your Finances in Order Without Sacrificing What You Want
.Tips To Keep Your Finances in Order Without Sacrificing What You Want
Cameron Huddleston Last updated: Oct. 25, 2021
If you’re trying to live on a budget, you might not feel like you can have the things you want. But you don’t have to resign yourself to living a bare-bones existence if your budget is tight — it’s possible to live on a budget and get some of the stuff you want.
Create a Budget That Prioritizes Needs
If your income is limited, make sure it covers your needs first. “Food, shelter, clothing and utilities are needs,” said Donna Freedman, author of “Your Playbook For Tough Times. “The rest is just a series of wants.”
Tips To Keep Your Finances in Order Without Sacrificing What You Want
Cameron Huddleston Last updated: Oct. 25, 2021
If you’re trying to live on a budget, you might not feel like you can have the things you want. But you don’t have to resign yourself to living a bare-bones existence if your budget is tight — it’s possible to live on a budget and get some of the stuff you want.
Create a Budget That Prioritizes Needs
If your income is limited, make sure it covers your needs first. “Food, shelter, clothing and utilities are needs,” said Donna Freedman, author of “Your Playbook For Tough Times. “The rest is just a series of wants.”
Creating a budget can help. List the expenses you have to pay to survive. Add them up, and then subtract them from your income. If there’s not much left over, you might have to make some sacrifices. Don’t think of cutting out wants to cover needs as deprivation, though — think of it as a smart use of available funds, Freedman said.
Build an Emergency Fund
If you’re living on a budget, you might not think you can afford to set aside money each month in an emergency fund. But would you be able to afford an unexpected cost without savings?
“The thing that keeps you out of debt is to find room in your budget to grow your savings,” McClary said. You won’t be able to build your savings quickly, but if you can stash away a little each month, you can fall back on your emergency fund rather than go into debt when something unexpected happens.
Tackle Your Debt in Smart Ways
When you’re struggling with debt, you don’t want to just keep paying the minimum balance on what you owe. However, you may not be able to afford much larger payments, so you should look at other smart ways to tackle your debt. A personal loan could consolidate that debt into one set regular monthly payment.
Take Advantage of Tax Breaks
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/tips-keep-finances-order-without-220012304.html
LC From TNT: "No FDIC Insurance Necessary" 10-28-2021
.TNT:
LC: No FDIC Deposit Insurance Necessary: Wealthy Use Private Banking for Resolution
Repost 3/4/21
I am reposting this again to remind everyone FDIC is not important if your funds are in a private trust bank.
Dear All TNT Dinar & Open Mic Members;
I would like to inform everyone about my experience as a current private banking client of Wells Fargo Private Bank.
I would like to put to bed about possible banks failures after you get your blessing from exchanging your currencies. You need to ask yourself this question, why do the wealthy customers don’t worry about their investments disappearing out of their accounts.
TNT:
LC: No FDIC Deposit Insurance Necessary: Wealthy Use Private Banking for Resolution
Repost 3/4/21
I am reposting this again to remind everyone FDIC is not important if your funds are in a private trust bank.
Dear All TNT Dinar & Open Mic Members;
I would like to inform everyone about my experience as a current private banking client of Wells Fargo Private Bank.
I would like to put to bed about possible banks failures after you get your blessing from exchanging your currencies. You need to ask yourself this question, why do the wealthy customers don’t worry about their investments disappearing out of their accounts.
The reason they don’t have that concern is because their investments in the “private trust bank” is considered “off balance sheet” and therefore these investments are not owned by the bank and not reportable to Wall Street. Additionally, the wealthy customers’ investments are titled and owned by them personally or titled and owned by a trust or entity you control.
So, this is where a third party comes in to play. My private bank (Wells Fargo Private Bank) use Depository Trust Company (DTC) one of the world’s largest securities depositories that will be the clearinghouse and safekeeping for my transactions.
Now you say, what if something happens to Wells Fargo Private Bank. Well, since they don’t own your investments, you only need to contact Depository Trust Company to now instruct them to name a new private trust bank (i.e. Northern Trust, U.S. Trust).
Just remember, the private trust bank is only a fiduciary that help manage your investment needs.
Please review the further detailed info on the Depository Trust Company that holds trillions of dollars of securities in their custody.
Furthermore, my private banker explained to me that generally his multibillion and multimillion dollar clients don’t have excess deposit insurance because the bank don’t have title to the investments to be a part of a bank failure.
Finally, this will not protect you from losing money on bad investments. Private trust banks generally carry insurance for your protection if they put you in an investment without careful due diligence and you lose your money as a result of their recommendation.
This is why everyone should relax and make sure you put your funds in a private trust bank to remove this concern. That’s what the wealthy and the 1% do. We do not need to reinvent the wheel.
Good luck to everyone and I hope that I helped ease everyone concerns I will see some of you in Las Vegas, Raleigh and some other venues that RayRen98 will be holding some Wealth Retention Workshops.
How To Set Up An Estate Plan
.How To Set Up An Estate Plan
Georgina Tzanetos Tue, October 26, 2021, 10:07 AM·7 min read
Thinking about estate plans usually evokes an image of a wealthy family summoning their family lawyer to make sure their summer homes pass through to the children while evading taxes. Modern estate planning though is much more about organizing your financial assets to make sure they are protected from new problems, such as outside business ventures or a potential divorce — or even a pandemic. According to a new survey from Edward Jones, a third of Americans say the pandemic has triggered conversations with their family about end-of-life plans.
An estate plan is a contract that is put in place to disperse and dispose of a person’s assets upon their death or selected time of transfer for the assets. This can include wills, trusts, powers of attorney, probates and more. It is up to the individual who created the estate plan to determine who the beneficiaries of their estate will be.
How To Set Up An Estate Plan
Georgina Tzanetos Tue, October 26, 2021, 10:07 AM·7 min read
Thinking about estate plans usually evokes an image of a wealthy family summoning their family lawyer to make sure their summer homes pass through to the children while evading taxes. Modern estate planning though is much more about organizing your financial assets to make sure they are protected from new problems, such as outside business ventures or a potential divorce — or even a pandemic. According to a new survey from Edward Jones, a third of Americans say the pandemic has triggered conversations with their family about end-of-life plans.
An estate plan is a contract that is put in place to disperse and dispose of a person’s assets upon their death or selected time of transfer for the assets. This can include wills, trusts, powers of attorney, probates and more. It is up to the individual who created the estate plan to determine who the beneficiaries of their estate will be.
Earl Rubinoff of The Rubinoff Group says to focus on these two important points:
The name of the person you want to take care of and be the guardian of your children.
The name of the person you want to take care of your money. This is essential since you want to appoint a trustee that you can trust and who you think has sound judgment. In addition, you need to name a competent successor trustee, in case your initial trustee is disappointing, gets ill, resigns, or dies.”
An important rule of thumb before walking into an estate planning meeting is to never sit at a table where there is not BOTH a licensed financial advisor and estate planning attorney present. Each of these professionals has a different specialty which is crucial in making an appropriate plan.
A financial advisor or CFP can ensure your assets are put into accounts that are easily transferable to your beneficiaries — or not, depending on what your goals are. For example, let’s say you prefer to liquidate your annuities while you are alive versus transferring them to your children. A financial advisor would then construct the distributions to be both immediate and liquid, going directly into bonds or other low-risk investments and increasing the amount of the distribution.
Had an annuity been set up as they usually are, investments might be put into target funds to last the duration of both your life and then perhaps for some years thereafter. The important thing here is that a target fund with even a 10-year horizon is invested far differently than a fund whose goal is to liquidate in the next 2-3 years.
Michael Fischer, director and wealth advisor at Round Table Wealth Management says if you currently are working with a financial advisor, they should be able to give you a basic understanding of what the role of a will or trust would have in your estate plan.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/set-estate-plan-140713156.html
16 Simple Things That People Say Helped Them Feel Less Worried About Money
.16 Simple Things That People Say Helped Them Feel Less Worried About Money
Tue, October 26, 2021, 12:16 PM
Learning to work through the feelings that come up around money can be *quite* the journey. So when a redditor asked the folks at r/PersonalFinance for their tips on dealing with money anxiety, the responses that came in showed a really interesting range of ideas, both financial and psychological.
Here are some of the top comments:
1."Coming from a frugal but financially stable background, what helped me was budgeting and an adequate emergency fund. Once you understand what your life costs, and you have three, six, nine, 12 months or whatever of living expenses saved up, it helps not to worry about the future. If I lose my job, my house, get divorced, whatever, I know I can make it work." —u/meggers26
16 Simple Things That People Say Helped Them Feel Less Worried About Money
Tue, October 26, 2021, 12:16 PM
Learning to work through the feelings that come up around money can be *quite* the journey. So when a redditor asked the folks at r/PersonalFinance for their tips on dealing with money anxiety, the responses that came in showed a really interesting range of ideas, both financial and psychological.
Here are some of the top comments:
1."Coming from a frugal but financially stable background, what helped me was budgeting and an adequate emergency fund. Once you understand what your life costs, and you have three, six, nine, 12 months or whatever of living expenses saved up, it helps not to worry about the future. If I lose my job, my house, get divorced, whatever, I know I can make it work." —u/meggers26
An emergency fund is pretty much exactly what it sounds like: a savings account you can draw on in case of an unexpected bill or loss of income. Personal finance experts often suggest saving three to six months of your basic living expenses in your e-fund.
If you haven't started saving yet and that sounds like a lot of money, don't be discouraged. Start with smaller goals — can you save $5 a week until you reach $100? How about $200 next? Track your progress along the way, save at least a little bit every week, and keep setting new goals as you reach your old ones.
2."Figure out what is causing the fear and address that. For me, it's worrying that another 2008 is going to happen. So I both have a one-year emergency fund saved and I am working on getting in to management in my company. That way, I'm far less likely to be laid off. I already moved to a section of my company that was not hit very hard by 2008, so that helped a bit." —u/tkdyo
3."I formed a zero-based budget and created savings categories for enough things that only true emergencies feel like an emergency, and there is a fund for that too. r/YNAB completely changed my relationship with money." —u/nofilternolimits
FYI, a zero-based budget is one that assigns a "job" to every dollar you bring home during the month, with a goal of spending, saving, or investing every last penny.
Never made a budget before? It doesn't have to be painful or restrictive. Check out what one BuzzFeeder learned when she made her first budget ever with help from a financial planner.
To continue reading, please go to the original article here:
https://www.yahoo.com/lifestyle/people-talking-deal-money-anxiety-161602171.html
Nothing Happens Without a Plan
Nothing Happens Without a Plan
200-Level (Intermediate) | Retirement Planning
Updated October 15, 2021
October is Financial Planning Month. Of course, it’s also Adopt a Shelter Dog Month, Breast Cancer Awareness Month, Domestic Violence Awareness Month, Global Diversity Awareness Month, National Bullying Prevention Month, Estate & Gift Planning Awareness Month, and more. There’s plenty of awareness, appreciation, and support-worthy causes to recognize and celebrate this month.
But since Financial Planning is one topic highlighted this month, there’s no time like the present to do something vital for you and your future. Rarely anything happens without a plan. Even your daily to-do list is essentially a plan. If something isn’t on that list, the chances of it getting done go down dramatically.
Nothing Happens Without a Plan
200-Level (Intermediate) | Retirement Planning
Updated October 15, 2021
October is Financial Planning Month. Of course, it’s also Adopt a Shelter Dog Month, Breast Cancer Awareness Month, Domestic Violence Awareness Month, Global Diversity Awareness Month, National Bullying Prevention Month, Estate & Gift Planning Awareness Month, and more. There’s plenty of awareness, appreciation, and support-worthy causes to recognize and celebrate this month.
But since Financial Planning is one topic highlighted this month, there’s no time like the present to do something vital for you and your future. Rarely anything happens without a plan. Even your daily to-do list is essentially a plan. If something isn’t on that list, the chances of it getting done go down dramatically.
So your financial security certainly isn’t going to happen without your attention.
But I’m Going To Start Saving For Retirement When…
Boosting your savings rate probably won’t happen because it made your list of New Year’s resolutions. Nor will it be at the top of your “to-do” list when you land a big raise.
The chance of increasing your retirement contributions becoming a priority when the kids are out of daycare or college isn’t as high as you’d like to believe.
Maybe the money you thought you’d save at key times in your life went toward debt payments or inflating your lifestyle. While those aren’t necessarily bad things, there’s a really good chance saving more for retirement won’t happen unless you make a plan to make it happen.
Financial planners know plenty of people in their 60’s who have just gotten started on their financial plans. They’ve saved a bit along the way because they knew they were supposed to. But they never followed a long-term strategy.
As a result, they have not saved enough to support the retirement lifestyle they want to enjoy after leaving work. And in the majority of cases, they’re already mentally ready to leave their jobs.
Not Saving Enough
To continue reading, please go to the original article here:
https://womenwhomoney.com/financial-planning-for-retirement/
It Sounds Crazy
.It Sounds Crazy
Oct 14, 2021 by Collaborative Team
It’s a rare person who wants to hear what he doesn’t want to hear. —Richard Cavett
Abig part of almost every story in history is that expectations move slower than facts. People become vested in their views of how the world works. But the world can work one way for a long time and then … boom … abruptly lurch in a new direction. Opinions crawl while events leap. It’s a tricky little thing.
In the 1960s, before he was old, Warren Buffett joked of taking advice from old investors. “They know too many things that are no longer true,” he said.
It Sounds Crazy
Oct 14, 2021 by Collaborative Team
It’s a rare person who wants to hear what he doesn’t want to hear. —Richard Cavett
Abig part of almost every story in history is that expectations move slower than facts. People become vested in their views of how the world works. But the world can work one way for a long time and then … boom … abruptly lurch in a new direction. Opinions crawl while events leap. It’s a tricky little thing.
In the 1960s, before he was old, Warren Buffett joked of taking advice from old investors. “They know too many things that are no longer true,” he said.
The strongest opinions form when a trend persists for years or decades, and a narrative of “this is just how things work” is the path of least resistance. It gets reinforced when that narrative becomes part of your identity – where you work, or how you invest your money, or who you hang out with and discuss what’s true.
But things change. Technologies become obsolete and markets exploit opportunities and people get bored with what used to excite them. Regulations change. Generations evolve. Accidents and chance push the world in ways that are impossible to predict. One damned thing after another. Sometimes those changes happen literally overnight.
So what happens when the world lurches but opinions lag?
You get situations where what’s true sounds crazy because people’s beliefs haven’t caught up with reality.
A few examples:
The S&P 500 gained 27% in 2009 – a fantastic return. Yet when asked in early 2010, 66% of investors thought it fell that year, according to a survey by Franklin Templeton. The idea that the market was surging sounded crazy because “the market crashed” was such a powerful narrative after 2008. People just clung to it.
The lowest-income workers have seen some of the largest recent wage gains in percentage terms. And that’s not just a pandemic quirk – it’s been like that since 2018. “Recent growth for workers with low wages has outpaced that for high-wage workers by the widest margin in at least 20 years,” the New York Times wrote last year. That sounds crazy because it’s so counter to the long-held narrative that high-wage workers are booming while the bottom stagnates and declines.
China’s demographics are so poor it’s going to face labor shortages in the coming years like few other countries have ever dealt with. Its total population is already falling. That sounds crazy because it’s the most populated country on earth and synonymous with rapid growth and endless pools of cheap labor. But its working-age population will decline by more than 20% over the next 30 years.
To continue reading, please go to the original article here:
How and Where To Spend Wisely as the Economy Recovers From the Pandemic
.How and Where To Spend Wisely as the Economy Recovers From the Pandemic
Rob Poindexter Thu, October 21, 2021
The pandemic has taken a massive toll on the economy, which has negatively affected individuals and small businesses alike. As the economy is recovering from the setback, you might be wondering what, why, and how to make wise decisions when it comes to spending on necessities.
Here’s how you can spend or splurge wisely during the economy’s recovery period.
Know the Difference Between Your Wants and Needs
How and Where To Spend Wisely as the Economy Recovers From the Pandemic
Rob Poindexter Thu, October 21, 2021
The pandemic has taken a massive toll on the economy, which has negatively affected individuals and small businesses alike. As the economy is recovering from the setback, you might be wondering what, why, and how to make wise decisions when it comes to spending on necessities.
Here’s how you can spend or splurge wisely during the economy’s recovery period.
Know the Difference Between Your Wants and Needs
Distinguishing the difference between wants and needs can be difficult for many people, but if you can successfully prioritize your needs over you wants, you may be able to pay off debt more quickly and efficiently.
While splurging a little can be no problem, buying an expensive new watch or designer shoes can wait. Always make sure that your necessities are paid for, and only start thinking of spending on your wants after you've paid your bills and put money into savings. When in doubt, don't make impulsive purchases. Instead, think about whether that money can be put to better use for your future.
Keep Track of Your Spending
Whether you’re a beginner or an expert at keeping your personal finances in check, it's always a good idea to keep track of your spending. Whether it’s a pack of gum or a bottle of water, knowing how much you spend daily is the key to successful financial planning. You'll be surprised at how quickly small and unnoticeable expenses can build up -- especially if you use a credit card.
To know and understand your financial needs, first, you need to take time and observe your weekly and monthly spending habits. Though it's tough, you need to go through your monthly credit card statements and view the charges. It may be hard at first, but taking some time to track your finances regularly will be a paving stone to your financial success.
Try using cash when running day-to-day errands. You will be more cautious of spending when you physically see your money being spent.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/where-spend-wisely-economy-recovers-134825783.html
5 Signs You’re Saving Too Much
.5 Signs You’re Saving Too Much
Cynthia Measom Thu, October 21, 2021
For many people, saving too little is the problem. However, for others, it’s the exact opposite because they are saving too much. Too much of anything can be dangerous, including stashing excess cash in a savings account or under a mattress.
But how do know if you’re putting too much cash toward savings? To help, consider these five signs that indicate your savings balance is out of control and learn how you can start being smarter with your money.
5 Signs You’re Saving Too Much
Cynthia Measom Thu, October 21, 2021
For many people, saving too little is the problem. However, for others, it’s the exact opposite because they are saving too much. Too much of anything can be dangerous, including stashing excess cash in a savings account or under a mattress.
But how do know if you’re putting too much cash toward savings? To help, consider these five signs that indicate your savings balance is out of control and learn how you can start being smarter with your money.
Why Is It Bad To Have Too Much Excess Cash?
“Cash is king except when rates earned on cash are low and the cost of goods you pay for are rising,” said Michele Lee Fine, RICP, founder and CEO of Cornerstone Wealth Advisory. “The world around you is getting more expensive, but your saved capital remains flat.
Being in ‘too much excess cash’ has a cost called opportunity cost. You may be wealthy today sitting on a lot of cash, but as your cash balances remain level, they are not outpacing inflation and actually losing value. Inflation is a stealth tax, and if your savings don’t earn more than the inflation rate, your savings and its purchasing power is actually diminishing.”
Chris Kampitsis, from The SKG Team at Barnum Financial Group, agrees:
“If you keep all of your nest egg in conservative cash — it is near certain that it will lose some spending power every single year,” he said. “Think of the cost of a mid-sized sedan now versus thirty years ago. If you kept that cash in the bank the last thirty years, would you still be able to afford the same car?”
But people who are hoarding cash also need to think about why they feel the need to sustain this behavior. “What is this really about?” said Lisa M. Dieter, CFP(r), founder and wealth advisor, EmberHouse. “Do you need the cash to feel secure? Do you feel unworthy of bigger-ticket expenditures? What is in your money history that could explain the need for so much cash?”
Now that you know that having too much excess cash can be to your financial detriment, here are five signs you are saving too much.
You’ve Become Too Frugal
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