If Money Could Talk - By Greg Habstritt
.If Money Could Talk - By Greg Habstritt
A Powerful Perspective You’ve Never Heard Before – "If Money Could Talk"
Most people think they know me. They don’t. I am not what most people think I am. I am not the paper in your wallet, or the coins that jingle in your purse. I am not quietly sitting in your bank account, hoping to be used one day. You cannot see me, feel me or touch me. I am an idea. I am energy.
I’m neither good nor evil. I am only what you decide that I am, and I fulfill the role that you create for me.
If Money Could Talk - By Greg Habstritt
A Powerful Perspective You’ve Never Heard Before – "If Money Could Talk"
Most people think they know me. They don’t. I am not what most people think I am. I am not the paper in your wallet, or the coins that jingle in your purse. I am not quietly sitting in your bank account, hoping to be used one day. You cannot see me, feel me or touch me. I am an idea. I am energy.
I’m neither good nor evil. I am only what you decide that I am, and I fulfill the role that you create for me.
I don’t care how smart you are, where you live, what you do, or where you come from. All I care about is your energy.
Your energy decides what thoughts you have, and therefore your thoughts will determine the relationship you have with me.
I have very simple needs, and simple rules. I am infinite.
I have no limits, except for those you place on me with your mind. There is no limit to the energy in the world, and because I am simply energy, I cannot be restricted or controlled.
I crave abundance.
I am attracted to those who think without restrictions, who like to think big. When you believe there is enough of me to go around, I am naturally magnetized by that thinking.
I despise scarcity.
Because there is no limit to me, I avoid those who think from a win/lose or scarcity perspective. Those who believe I am in short supply, or difficult to receive, will find that very reality, because I choose to avoid those who think small.
I love value.
What magnetizes me most is the creation of value in the universe. I move to places where value is created, because creation is energy. If you wish to attract me into your life, focus on creating value for others, and I will appear.
I avoid entitlement and complacency.
To continue reading, please go to the original article here:
http://museologies.blogspot.com/2011/10/if-money-could-talk.html
The Relative Value of Money
.The Relative Value of Money
By Kevin From Financial Panther
There’s a concept that I’ve been thinking about over the past couple of years, especially as I’ve made this transition from a full-time, professional, real job, to a quasi-fake job as a blogger and gig economy worker. It has to do with a concept you could call the relative value of money.
When I think about what that means, it’s basically the idea that money you earn from one activity might be worth more to you personally compared to the money you earn from another activity.
In fact, it might be worth so much more to you that you’ll opt to spend your days earning money in that manner even if it means you’re making less money from an objective standpoint. This concept has really come into clearer focus to me over the past few years and I think it helps explain why I’ve made a lot of the work decisions I’ve made.
The Relative Value of Money
By Kevin From Financial Panther
There’s a concept that I’ve been thinking about over the past couple of years, especially as I’ve made this transition from a full-time, professional, real job, to a quasi-fake job as a blogger and gig economy worker. It has to do with a concept you could call the relative value of money.
When I think about what that means, it’s basically the idea that money you earn from one activity might be worth more to you personally compared to the money you earn from another activity.
In fact, it might be worth so much more to you that you’ll opt to spend your days earning money in that manner even if it means you’re making less money from an objective standpoint. This concept has really come into clearer focus to me over the past few years and I think it helps explain why I’ve made a lot of the work decisions I’ve made.
One of the weird things I’ve done consistently over the past few years is doing pretty low-level side hustles using sharing economy and gig economy apps. From an objective standpoint, it really didn’t make much sense for me to do all of this stuff.
At the peak of my lawyer career, I was making $300 or more per day from my salary, obviously more than enough to live very comfortably. And yet, even though I made all of this money, I still chose to spend my spare hours doing silly things like delivering food to people on my bike and selling stuff I found in the trash.
The common criticism I’d get was that doing this stuff was a waste of my time. The better use of my time would be to focus on my job and continue to progress in my legal career. Eventually, I could try to become a partner somewhere or just do something to continue to increase my salary, or at least to increase my prestige.
In truth, that’s probably what I should have done, at least if we’re looking at pure numbers. I could obviously make much more money as a lawyer than I could from all of the stupid things I was doing. But the few bucks I made doing my random gig stuff felt so much more valuable and rewarding to me compared to any dollar I earned from my regular paycheck.
The thing I’ve learned to value more and more is control over my life. I suspect that’s something a lot of people on the path to financial independence value too. The money I made from my day job, however, was the exact opposite of control over my life. I had to be at the office at a certain time, do things that other people told me to do, and basically, plan my life around my job. It made me feel trapped.
A dollar might have the same objective value no matter how you choose to earn it. But how you personally value that dollar is another matter. I think that’s worth thinking about.
Thinking About The Relative Value Of Money
One of the podcasts I listen to pretty regularly is Tropical MBA, which I highly recommend you listen to if you’re the entrepreneurial type looking for some help and motivation.
This quote from a recent episode basically hit on exactly what I’ve been feeling over the past few years:
Would you rather be . . . relatively “poor” and own all your time? Or have a job, make decent money, but own none of your time? I’d pick selling cars on Craigslist and making $2000 or $3000 a month living in an apartment doing whatever I want when I wake up any day, any lifetime.
To continue reading, please go to the original article here:
How To Never Worry About Money Again
.How To Never Worry About Money Again
The No-Sweat Way to Protect Yourself From Financial Disaster By laura goldstein
Building a bigger rainy-day fund may feel daunting. Start by breaking it down into manageable chunks.
That nagging feeling that a bit of bad luck—a medical emergency or a layoff—could derail your finances is widely shared. A new survey from the American Psychological Association found that 54% of people rated paying for unexpected expenses a very or somewhat significant source of stress.
And people across the income spectrum tend to be underprepared. A Pew Charitable Trusts analysis finds middle-income households typically have the equivalent of 20 days of income to tap, and even high earners have just 52 days. Building a bigger rainy-day fund may feel like a daunting task, given all your expenses and savings goals, but you can start by breaking it down into manageable chunks.
How To Never Worry About Money Again
The No-Sweat Way to Protect Yourself From Financial Disaster By laura goldstein
Building a bigger rainy-day fund may feel daunting. Start by breaking it down into manageable chunks.
That nagging feeling that a bit of bad luck—a medical emergency or a layoff—could derail your finances is widely shared. A new survey from the American Psychological Association found that 54% of people rated paying for unexpected expenses a very or somewhat significant source of stress.
And people across the income spectrum tend to be underprepared. A Pew Charitable Trusts analysis finds middle-income households typically have the equivalent of 20 days of income to tap, and even high earners have just 52 days. Building a bigger rainy-day fund may feel like a daunting task, given all your expenses and savings goals, but you can start by breaking it down into manageable chunks.
Do It One Essential Expense at a Time
Aim to cover three months of one regular bill, like your mortgage, suggests RBC Wealth Management financial adviser Darla Kashian. Then move on to three months of utilities, then car payments, and so on.
This approach gives you the satisfaction of crossing one more potential problem off your list. Once you’ve hit three months of all essentials, make your new goal doubling your account to get to six months.
Why so long? “When things get rough, your emergency fund enables you to make good choices, where you don’t have to rush into a job you don’t want or dip into a credit card,” says Certified Financial Planner Board consumer advocate Eleanor Blayney.
Get It Out of Your Hands
Looking at your budget may help you find places to trim, but for big savings goals it may be easier and more sustainable to simply stash money away with each pay-check, just as you do with your 401(k), and live on what’s left. Set up automatic deposits to a separate account just for your emergency money.
Any employer that offers direct paycheck deposit can allow you to split the money between multiple accounts. Many banks will also allow you to give your accounts a nickname to match your goal—make this one “emergency” or even “Don’t touch this!” as a little extra reminder of how important this fund is for you.
Make It a Little Bit Inconvenient
To add another speed bump between you and your cash stash, consider opening an account at a bank other than the one you use for your everyday money. Ally, one of MONEY’s Best Bank picks, has a high-yield savings account that doesn’t include a debit card or checking.
To continue reading, please go to the original article here:
http://money.com/money/collection-post/3938823/save-money-emergency-fund/
The Ten Commandments Of Personal Finance
.The Ten Commandments Of Personal Finance
From The Retirement Manifesto By fritz@theretirementmanifesto.com
Is it possible that there are some basic principles upon which your personal finance journey should be built? It turns out there are. I’ll warn you in advance – you may not like some of them. Just as THE Ten Commandments guide us away from our personal nature which is sometimes tempted to do things which seem fun at the time, but lead to long term harm, these “Personal Finance Commandments” can guide you away from doing things which will bring harm to your long term financial goals.
In full transparency, I didn’t come up with the original list. That honor goes to this article from MoneyStepper, which I just read tonight. I liked the concept and the guidelines presented so much, I’ve decided to build on the original article with original thoughts of my own, including the “10 Commandments” title.
The Ten Commandments Of Personal Finance
From The Retirement Manifesto By fritz@theretirementmanifesto.com
Is it possible that there are some basic principles upon which your personal finance journey should be built? It turns out there are. I’ll warn you in advance – you may not like some of them. Just as THE Ten Commandments guide us away from our personal nature which is sometimes tempted to do things which seem fun at the time, but lead to long term harm, these “Personal Finance Commandments” can guide you away from doing things which will bring harm to your long term financial goals.
In full transparency, I didn’t come up with the original list. That honor goes to this article from MoneyStepper, which I just read tonight. I liked the concept and the guidelines presented so much, I’ve decided to build on the original article with original thoughts of my own, including the “10 Commandments” title.
In my quest to “Help People Achieve A Great Retirement”, I think there’s a lot of room to share some of the best concepts I come across in my heavy reading on personal finance topics. This one’s a good one, and worth my effort to build upon the concept.
Strive to achieve as many of these commandments as you can, and you’ll be well on your way toward financial independence. Break them, and suffer the consequences.
I. Keep Your Housing Costs Under 25% of Your Net Income
Personally, I like these “rule of thumb” guidelines to help you decide how much of something you can afford. When you’re shopping with a realtor, or talking to a banker, they often attempt to “stretch” you to a ratio that’s higher than you should really undertake. So, look at your last paycheck.
How much went into your bank account? If you rent, your rent should be less than 25% of your monthly NET pay (after taxes). Ditto on your mortgage payment. If you’re spending more than the 25% “commandment”, consider downsizing, or seek out a job with higher pay.
II. Keep Your Mortgage Under 2.5 Times Your Annual Salary
Interesting that the first two “Commandments” focus on housing costs. Appropriate, given the cost of the roof over your head is the highest expense you’ll incur in your personal finance journey. Manage it carefully, and don’t buy “too much” home. If you’re making $50,000/year, your home should be worth $125k or less.
III. Don’t Buy A New Car Unless You’re A Millionaire
I LOVE this one. Bottom line: buying a new car is stupid (yes, I said Stupid!). It depreciates immediately, and it’s expensive. It’s one of the worst personal finance decisions you can make. Don’t “Buy New”!
After a few months, it’s “just a car”. Within a few years, if you’re like most people, you’re “itching” for another one. AVOID the materialism – focus on the function. My wife and I have bought used cars for years, and paid cash for all but our first one.
To continue reading, please go to the original article here:
http://www.theretirementmanifesto.com/the-ten-commandments-of-personal-finance/
How to Find Your Money ‘Why’
.How to Find Your Money ‘Why’
By Katherine Fusco
There are lots of reasons to spend money, some good, some bad, most compelling. Of course, this is by design. Not spending money, though… that’s a trickier thing. The reasons not to spend—or to save, if you’d like to put it more positively—are often vague, rooted in a fuzzy sense of what one should do.
When people are tired or temptations are especially aggressive (hello, holiday season!), the vague I should pay off my debt crumbles in the face of beautiful store displays or delicious scents wafting from strategically open bakery doors.
How to Find Your Money ‘Why’
By Katherine Fusco
There are lots of reasons to spend money, some good, some bad, most compelling. Of course, this is by design. Not spending money, though… that’s a trickier thing. The reasons not to spend—or to save, if you’d like to put it more positively—are often vague, rooted in a fuzzy sense of what one should do.
When people are tired or temptations are especially aggressive (hello, holiday season!), the vague I should pay off my debt crumbles in the face of beautiful store displays or delicious scents wafting from strategically open bakery doors.
More than this, advertising often appeals to our sense of self, frequently tying products to concepts or feelings that we truly believe in. How many bath bombs have been purchased on credit cards in the name of self-care? How many unused vitamins and supplements under the name of wellness?
Pink things for breast cancer awareness? Maybe an embarrassment of water bottles and reusable bags under the name of environmentalism, even though the environmental thing would be shopping less overall?
Against all these compelling, ego-supporting reasons to shop, the vague “adulting” calls to save more and spend less don’t stand a chance.
Just as advertisers know to tap into your sense of self through fairly specific identity appeals—Are you a dog-loving hiker? Here’s a four-wheel drive station wagon—you can also meet your own financial needs by developing your own money mantra, or “why.”
The importance of considering our feelings and values when it comes to money has gained traction in the field of economics. As the journal Applied Economics reports, “individualized cultural values measures do indeed explain part of the financial behaviour of households.”
Becoming more concretely aware of cultural, familial and personal values might thus be an important key to better personal finance.
Here are a few techniques to use for getting in touch with your money “why”:
1. Tap Into Your Core Values
What’s most important to you? Unlike with the next two exercises, you’re allowed to be a bit vague here. You might find yourself naming things like “beauty,” “health,” “community,” “family” or even something grander like “justice.”
To continue reading, please go to the original article here:
Risk Is What You Don’t See
.Risk Is What You Don’t See
Jan 14, 2020 by Morgan Housel
Harry Houdini was more than an escape artist. Anything that made people gasp interested him and was something he would try. One of his famous tricks was letting big men punch him in the gut as hard as they could. Houdini – an amateur boxer before becoming a magician – said he could flex his muscles in a way that could absorb any blow. The stunt matched what people loved about his escapes: the idea that his body could conquer physics.
One day in 1926 Houdini was resting in his dressing room after a performance when a group of students from McGill came in to visit. One of the students, Jocelyn Gordon Whitehead, asked, “Is it true, Mr. Houdini, that you can resist the hardest blows struck to the abdomen?”
Without warning he then began slamming his fist into Houdini.
Risk Is What You Don’t See
Jan 14, 2020 by Morgan Housel
Harry Houdini was more than an escape artist. Anything that made people gasp interested him and was something he would try. One of his famous tricks was letting big men punch him in the gut as hard as they could. Houdini – an amateur boxer before becoming a magician – said he could flex his muscles in a way that could absorb any blow. The stunt matched what people loved about his escapes: the idea that his body could conquer physics.
One day in 1926 Houdini was resting in his dressing room after a performance when a group of students from McGill came in to visit. One of the students, Jocelyn Gordon Whitehead, asked, “Is it true, Mr. Houdini, that you can resist the hardest blows struck to the abdomen?”
Without warning he then began slamming his fist into Houdini.
Arthur Conan Doyle’s book The Edge of Unknown writes:
Houdini stopped him suddenly in the midst of a punch, with a gesture that he had had enough.
Houdini immediately after stated that he had had no opportunity to prepare himself against the blows, as he did not think that Whitehead would strike him as suddenly as he did and with such force, and that he would have been in a better position to prepare for the blows if he had arisen from the couch for this purpose.
A day later Houdini was doubled over with abdominal pain. His appendix was ruptured, almost certainty from Whitehead’s blows.
And then Harry Houdini died.
The riskiest stuff is always what you don’t see coming.
Risk is complicated, which is why we’re not great at dealing with it. It’s more than just something bad happening. How risky something is depends on whether its target is prepared for it. A big event people have time to prepare for can be handled without much fuss. A smaller one out of the blue can be deadly.
Houdini – who buried himself under six feet of dirt in a straight jacket and dug himself out weeks before he was killed by a student’s jab – learned this the hard way.
It’s also something we should remember when thinking about the economy and our investments.
The biggest economic risk is what no one’s talking about, because if no one’s talking about no one’s prepared for it, and if no one’s prepared for it its damage will be amplified when it arrives.
To continue reading, please go to the original article here:
https://www.collaborativefund.com/blog/risk-is-what-you-dont-see/
5 Ways To Cash In on Your Spare Change
.5 Ways To Cash In on Your Spare Change
Jennifer Taylor Fri, April 22, 2022
You’ve been collecting spare change for quite some time now, and your piggy bank is about to bust. The time has come to empty it, but first you want to decide how to put your savings to good use.
After spending months — or even years — collecting these coins, you want to do something meaningful with the money. Here are five ideas to consider as the best use for your spare change.
5 Ways To Cash In on Your Spare Change
Jennifer Taylor Fri, April 22, 2022
You’ve been collecting spare change for quite some time now, and your piggy bank is about to bust. The time has come to empty it, but first you want to decide how to put your savings to good use.
After spending months — or even years — collecting these coins, you want to do something meaningful with the money. Here are five ideas to consider as the best use for your spare change.
Save for Holiday Gifts
While the holidays might be the farthest thing from your mind right now, Holly Andrews, loans manager and managing director at KIS Finance, a financial brokerage firm based in the United Kingdom, suggested using your spare change to start saving for this expensive season.
“Putting away your spare change right from the start of the year means you have the maximum amount of time to save for the holidays, and you’ll probably be surprised at just how much this will add up to over 10 or 11 months,” she said. “It may not cover everything, but it will certainly give you a very big head start, and you won’t have to worry about how you’ll afford everything as the holidays get closer.”
Imagine not having to scramble to cover all those holiday expenses this year, because you’ve already planned ahead. Enjoy the feeling!
Add It to Your Debt Repayments
If you’re trying to pay off credit card balances, Andrews said anything you can contribute to the cause will be a great help.
“Keep adding your spare change to a jar and every time you reach $10 or $20 dollars, put it in your bank account and add it to your next credit card payment,” she said. “It might not seem like much at the time, but every dollar that you can add towards debt repayment will benefit you in the long-run.”
In no time at all, you might make a serious dent in your debt repayments.
Start an Emergency Fund
If you don’t already have an emergency fund, your spare change is a great starting point, said Alissa Krasner Maizes, financial planner and founder of the investment advising firm, Amplify My Wealth.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-ways-cash-spare-change-180105626.html
How to Make Better Financial Decisions
.How to Make Better Financial Decisions
By Barbara O’Neill
A key financial decision people struggle to make is how to allocate savings for multiple financial goals. Do you save for several goals at the same time or fund them one-by-one in a series of steps? Basically, there are two ways to approach financial goal-setting:
Concurrently: Saving for two or more financial goals at the same time.
Sequentially: Saving for one financial goal at a time in a series of steps.
Each method has its pros and cons. Here's how to decide which method is best for you.
How to Make Better Financial Decisions
By Barbara O’Neill
A key financial decision people struggle to make is how to allocate savings for multiple financial goals. Do you save for several goals at the same time or fund them one-by-one in a series of steps? Basically, there are two ways to approach financial goal-setting:
Concurrently: Saving for two or more financial goals at the same time.
Sequentially: Saving for one financial goal at a time in a series of steps.
Each method has its pros and cons. Here's how to decide which method is best for you.
Sequential goal-setting
Pros
You can focus intensely on one goal at a time and feel a sense of completion when each goal is achieved. It's also simpler to set up and manage single-goal savings than plans for multiple goals. You only need to set up and manage one account.
Cons
Compound interest is not retroactive. If it takes up to a decade to get around to long-term savings goals (e.g., funding a retirement savings plan), that's time that interest is not earned.
Concurrent goal-setting
Pros
Compound interest is not delayed on savings for goals that come later in life. The earlier money is set aside, the longer it can grow. Based on the Rule of 72, you can double a sum of money in nine years with an 8 percent average return. The earliest years of savings toward long-term goals are the most powerful ones.
Cons
Funding multiple financial goals is more complex than single-tasking. Income needs to be earmarked separately for each goal and often placed in different accounts. In addition, it will probably take longer to complete any one goal because savings is being placed in multiple locations.
Research findings
To continue reading, please go to the original article here:
https://www.wisebread.com/how-to-make-better-financial-decisions?ref=relatedbox
Financial Gurus: Who Are They and What Can They Teach Us?
.Financial Gurus: Who Are They and What Can They Teach Us?
Wed, April 20, 2022, Top 10 Financial Gurus to Learn From
By Eric Whiteside Updated April 20, 2022 Reviewed By Thomas Brock
Learn more about investing by reviewing lessons from major financial advisors
History's most famous financial advisors are known for very different reasons. They include successful investors who share their knowledge with the masses, television celebrities who write books, and criminals who stole millions of dollars. Ten of the most famous financial advisors are discussed below.
Financial Gurus: Who Are They and What Can They Teach Us?
Wed, April 20, 2022, Top 10 Financial Gurus to Learn From
By Eric Whiteside Updated April 20, 2022 Reviewed By Thomas Brock
Learn more about investing by reviewing lessons from major financial advisors
History's most famous financial advisors are known for very different reasons. They include successful investors who share their knowledge with the masses, television celebrities who write books, and criminals who stole millions of dollars. Ten of the most famous financial advisors are discussed below.
KEY TAKEAWAYS
Famous financial advisors became household names for a variety of reasons.
Benjamin Graham and Warren Buffet are among the most common traditional financial advisors that relied heavily on value investing.
Several financial advisors such as Dave Ramsey and Robert Kiyosaki are most known for their print publications.
TV personals including Suze Orman and Ben Stein are recognizable financial advisors.
Charles Ponzi and Bernie Madoff made a name for themselves due to their financial crimes.
Benjamin Graham
Benjamin Graham is known as the father of value investing which involves identifying and buying undervalued stocks that have the potential to grow over time.1 To calculate a company's intrinsic value, his approach eschews trends and hot ideas and relies instead on diligent research, thorough financial analysis, and patience— standard concepts today, but revolutionary when he introduced it in the 1930s.
Graham’s disciples include many of the most successful investors of the last 70 years. His 1949 book The Intelligent Investor remains a must-read for all asset managers and stock traders, whatever their investment approach.2
Warren Buffett
Investor Warren Buffett, the "Oracle of Omaha," is one of Graham’s most famous followers. Buffett has openly attributed his remarkable track record to Graham's principles.2 The one rule of Graham's that Buffett does not always follow is to diversify: He often prefers to concentrate investments in companies.
3,641,613% Gain
Had you invested $1 in Berkshire Hathaway in 1964, your investment would have been worth $3,641,613 at the end of 2021.3
To continue reading, please go to the original article here:
How Financial Literacy Changes Once You’re Retired
.How Financial Literacy Changes Once You’re Retired
John Csiszar Wed, April 20, 2022
Financial literacy covers a wide range of topics, from budgeting and saving to investing and planning for retirement. Once you retire, however, financial literacy broadens to include scenarios that may not have been as relevant during your working life. For example, income typically drops in retirement, while expenses may remain the same or even rise, depending on the type of lifestyle you lead and the condition of your general health.
Financial Literacy Month is a great time for both seniors and those about to retire to review their planning and make sure they're prepared for the changes encountered in retirement. Here are seven topics that are important to understand if you want to avoid any financial landmines in retirement.
How Financial Literacy Changes Once You’re Retired
John Csiszar Wed, April 20, 2022
Financial literacy covers a wide range of topics, from budgeting and saving to investing and planning for retirement. Once you retire, however, financial literacy broadens to include scenarios that may not have been as relevant during your working life. For example, income typically drops in retirement, while expenses may remain the same or even rise, depending on the type of lifestyle you lead and the condition of your general health.
Financial Literacy Month is a great time for both seniors and those about to retire to review their planning and make sure they're prepared for the changes encountered in retirement. Here are seven topics that are important to understand if you want to avoid any financial landmines in retirement.
Social Security
From the time you start receiving your first paychecks, you've been paying into the Social Security system. But as you approach retirement, it's time to start planning your Social Security withdrawal strategy instead. Before you hit retirement, it pays to maximize your income in any way possible, as your Social Security payout is based in large part on how much you earn during your working career. You'll also want to sit with a tax or financial advisor and determine whether you should initiate your payments early, at full retirement age or as late as age 70.
Medicare
Medicare is a health insurance program for seniors, but it's a complicated system with various parts. To use it effectively, you'll have to become literate on how it works. In a nutshell, Medicare consists of two original parts, A and B, which cover hospital and medical expenses, respectively. Part B requires a monthly premium. You can also add Part D if you require prescription drug coverage.
Medicare Advantage, also known as Medicare Part C, is an alternative to Original Medicare that is run by a private company. As the choices can get complicated, you'll likely need to speak to an expert to get financially literate when it comes to Medicare. Note that neither Original Medicare nor Medicare Advantage are likely to cover care outside of the United States.
Required Minimum Distributions
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/financial-literacy-changes-once-retired-130003742.html
5 Pieces Of Money Advice That No Longer Apply
.5 Pieces Of Money Advice That No Longer Apply (And Updated Advice)
Tue, April 19, 2022
The world has changed A LOT in the past two years, and money advice that worked in 1978 doesn't work today. So here are five pieces of advice I think we all need to say goodbye to, and what to do instead.
1. Old School Money Tip: Always share your money with a married partner.
Common financial advice says that splitting bank accounts, investments accounts, and every day spending 50/50 with your spouse is the only way to go. The thinking is that shared accounts provide greater transparency and that once you're officially married, you stop being separate financial entities and become one. You should be working together on all financial goals and joint finances allows that.
5 Pieces Of Money Advice That No Longer Apply (And Updated Advice)
Tue, April 19, 2022
The world has changed A LOT in the past two years, and money advice that worked in 1978 doesn't work today. So here are five pieces of advice I think we all need to say goodbye to, and what to do instead.
1. Old School Money Tip: Always share your money with a married partner.
Common financial advice says that splitting bank accounts, investments accounts, and every day spending 50/50 with your spouse is the only way to go. The thinking is that shared accounts provide greater transparency and that once you're officially married, you stop being separate financial entities and become one. You should be working together on all financial goals and joint finances allows that.
Why It's Time to Say Goodbye: A recent survey found that almost 70% of millennial women who responded had experienced some form of financial abuse.
2. Old School Money Tip: Always put 20% down on a house.
How many times have you had a parent or family member tell you that you *need* 20% down for a house? 20% is the amount that allows you to bypass PMI, aka private mortgage insurance, an additional fee that's tacked onto your monthly payment if you don't put 20% down. Here's the thing though: in this market, 20% is often north of six figures. A $600,000 house means 20% down is $120,000.
Why It's Time to Say Goodbye: Prices are rising so fast you get priced out trying to do that.
According to a recent study from Redfin, "5,897 homes in 50 of the biggest US metropolitan areas by population have sold this year for at least $100,000 above their listed price, more than double a year ago." And while the Federal Reserve interest rate increase should help slow the demand for housing, the lack of housing available is still pushing prices up.
Waiting to have 20% of an ever-increasing housing price is likely to price you out of the market. There are many loans available where you can put down as low as 5%, leaving you with more money available for home repairs or to increase your bid if need be.
And on the PMI front, your credit score, debt-to-income ratio, and loan-to-value ratio can all affect your PMI rate, so if you have a great credit score and low debt amounts, your PMI may be low enough to make it well worth putting less than 20% down.
To continue reading, please go to the original article here:
https://www.yahoo.com/lifestyle/5-outdated-money-rules-die-164602133.html