Here’s What Everyone Should Be Doing To Fight Inflation

Here’s What Everyone Should Be Doing To Fight Inflation, According to the Top Money Experts

Jennifer Taylor   Sun, July 31, 2022

The current inflation rate is now 8.58%, and Americans are cutting back on spending through strategies ranging from coupon stacking to purchasing store brand items. GOBankingRates asked some of our Top 100 Money Experts for their best tips on how to fight inflation.  From cutting back on non-essentials to creating a financial plan, fight inflation with these expert recommendations.

Start Making Tough Spending Decisions

"Start making tough spending decisions," said Liz Claman, host of "The Claman Countdown" at FOX Business News.

"Go through your daily spending, write it all out, and then slash and burn. Downgrade to less expensive products. Cut out subscriptions you're not using enough. Delete apps that cost money -- even if it's just a few bucks. During COVID-19 lockdowns all the nail salons closed. I have friends who started doing their own nails and got so good at it, they haven't gone back to the salon. That's a weekly savings of $30 dollars. Everything adds up."

Cut Back on Non-Necessities

"Cut back on the non-necessities and find ways to increase your income," said Tonya Rapley, author of "The Money Manual."

Put Your Money Into I Bonds

"Right now, putting your money into Treasury I Bonds, investing in real estate or other alternative investments are the best ways to fight the impacts of inflation," said Danetha Doe, the creator of Money & Mimosas, a website that helps investors.

Add to Your Emergency Fund

Money and career expert Tori Dunlap is the founder of Her First $100K, host of the "Financial Feminist" podcast and author of the upcoming book "Financial Feminist."

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/everyone-doing-fight-inflation-according-230001414.html

Let’s Say You Actually Won The $1 Billion Mega Millions Jackpot. Now What?

Let’s Say You Actually Won The $1 Billion Mega Millions Jackpot. Now What?

(This info could also apply to the RV of the Dinar)

Charlotte Observer  Evan Santiago  Thu, July 28, 2022

This Friday’s Mega Millions lottery drawing has garnered quite the buzz after no winner claimed the prize from Tuesday night’s drawing, with the nationwide jackpot now at $1.02 billion.

It’s an eye-opening amount of money that will undoubtedly change someone’s life forever. The largest jackpot won by a North Carolina resident was a $344 million Powerball jackpot in 2019.

So what is it like to be the one who beats the odds? Van Denton, director of communications at North Carolina Education Lottery, gave The Charlotte Observer a breakdown of what happens if you become a lucky winner.

What are the mechanics of collecting a major prize? When you walk through the door at lottery headquarters, what happens?

Denton: The very first thing after that moment of seeing your win is sign your ticket and secure it in a safe place. You have 180 days to claim your prize. Put together your plan for how you would like your life to change. Get a trusted legal adviser. Get a trusted financial adviser. When you are ready, call lottery headquarters and schedule the day you want to claim your $1 billion. We’ll help you with the planning.

When you arrive, you present your signed ticket. Our staff will verify who you are and that you indeed have the winning ticket. You’ll work out your prize, a $1 billion annuity paid out over 29 years, or (a) cash payment of $602.5 million.

You’ll learn about the mandatory tax withholdings, just like those done on your paycheck at work (at the minimum – withholdings of 24 percent federal and 4.99 percent (in) state). You work out the timing of the wire transfer to your bank, celebrate with lottery staff, and share your story of great luck. And then you’re off on a whole new chapter of your life.

When is the lottery winner revealed? Can that person remain anonymous?

To continue reading, please go to the original article here:

https://news.yahoo.com/let-actually-won-1-billion-110000210.html

Here’s How Much in Taxes You’ll Pay if You Win the $1 Billion Mega Millions

Here’s How Much in Taxes You’ll Pay if You Win the $1 Billion Mega Millions (and Other Fun Facts)

Vance Cariaga    Thu, July 28, 2022

If you’re buying a lottery ticket on the off chance that you might win the $1 billion Mega Millions jackpot this week, you’d do well to remember this: Winning isn’t all Dom Pérignon and luxury suites. You’ll also face a hefty tax bill — so much so that you might have to scrape by on $380 million or so once the IRS takes its cut.

Since nobody took home the grand prize on July 26 by matching all six numbers, the Mega Millions jackpot has now ballooned to $1.02 billion, CNBC reported. The next drawing is Friday night, July 29, at 11 p.m. EST.

It is now the third-largest jackpot in Mega Millions history — and only the third time the jackpot has risen above $1 billion, NPR reported. You have a 1 in 302.5 million chance of winning, which is long odds indeed.

One thing’s for certain: No matter who wins, they’ll be giving a huge chunk of their winnings to Uncle Sam. That’s the case whether the jackpot is doled out as an annuity of 30 payments over 29 years or as an immediate, reduced cash lump sum. Most winners opt for the cash option.

For the current $1.02 billion jackpot, the cash option is $602.5 million, CNBC noted. There is a mandatory 24% federal tax withholding on that amount, which would reduce the winnings by $144.6 million. It would be further reduced by the top federal marginal tax rate of 37%, which applies to yearly income above $539,900 for single taxpayers or $647,850 for married couples filing jointly.

Unless the winner does something creative with the jackpot, such as donating part of it to charity, there would be an additional 13% due to the IRS, for a total of $222.9 million in overall taxes. That would bring the winnings down to about $380 million — and that’s before any state or local taxes might apply.

If the winner is lucky enough to live in a state with no state income tax, this won’t be a problem. Only seven states have no state income tax, according to Intuit TurboTax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Of those states, Alaska and Nevada do not have the Mega Millions jackpot.

How to Play the Mega Millions Lottery

To continue reading, please go to the original article here:

https://news.yahoo.com/much-taxes-ll-pay-win-160121288.html

Why Lottery Winnings Don’t Always Lead To Happiness

Why Lottery Winnings Don’t Always Lead To Happiness

Shirin Ali | July 27, 2022

Story at a glance

Winning the lottery may increase a person’s life satisfaction and remain that way for decades to come.

An increase in happiness isn’t as certain, with research showing lottery winners showing little to no improvement there.

Researchers say happiness is subjective and is interpreted differently from person to person.

Receiving a massive influx of cash may seem like instant gratification but research has shown that winning a lottery may increase life satisfaction but may not impact general happiness.

The odds of winning a Mega Millions jackpot is one in 303 million — while the odds of winning at least $1 million are about 1 in 12.6 million.

For the lucky few who do manage to snag a winning ticket, they will likely experience an increase in life satisfaction that can persist for over a decade, with no evidence of that decreasing over time.

However, the effect on a person’s happiness and mental health after winning a lottery is more mixed, with research showing increases are usually smaller and not statistically significant.

Those are findings that researchers from New York University and Stockholm University in Sweden came to after studying over 400 people who had won lotteries in Sweden from 1998 to 2011.

America is changing faster than ever! Add Changing America to your Facebook or Twitter feed to stay on top of the news.

“We find that winning large sums of money strongly affects how content you are with your personal finances. But it does not affect how you feel about other aspects of life, such as your health, or your relationships with friends and family,” said Erik Lindqvist, one of the researchers behind the study.

Lindqvist’s team found clear evidence that wealth improves people’s evaluation of their lives as a whole— suggesting that improved financial circumstances is an important component behind increasing people’s life satisfaction.

To continue reading, please go to the original article here:

https://www.yahoo.com/news/why-lottery-winnings-don-t-185952242.html

Here’s How To Build a 6-Month Emergency Fund

Here’s How To Build a 6-Month Emergency Fund

Nicole Spector   Wed, July 27, 2022

We may be a country sorely lacking in financial literacy, but we all have one core principle ingrained in us: We must have an emergency savings fund.

In theory, it sounds pretty simple: You make a certain amount of income, and set a certain amount of that aside in an account that you only tap into when the going gets especially tough and you need to shell out dough for something like a new car part or a surprise medical bill. But embarking on building a six-month (the recommended amount) emergency fund can be challenging.

Where do you begin? With the help of finance experts, we've laid out a multi-step plan of attack.

Go In With the Right Mindset

"Saving is primarily a mental game that you can win," said Adam Garcia, founder of The Stock Dork. "Setting away even a tiny amount of money on a regular basis can eventually lead you to your objective, no matter how low your starting point is. Time and a little self-control are all that is required."

Get an Accountability Partner

"The journey to starting and faithfully contributing to an emergency fund is more successful when done with a partner," said Lucia Jensen, CEO of WeLoans. "Consider working with your financial advisor to help you stay on track."

Map Out Your Spending

"Take the time to distinguish what your necessary expenses are, and what your discretionary expenses are (i.e. streaming services, shopping for clothes)," said Katie Ross, EVP of American Consumer Credit Counseling (ACCC). "If you're in a tight spot financially, you may want to cut out some discretionary spending. Your emergency fund should cover your essential needs. After you calculate your total expenses for one month, multiply that number by six. The final number is how much money you should have for your six-month emergency fund."

Rethink Subscriptions and Sign Up for Promotions

"Whether it's your cable company, cell phone provider, or gym membership, it's time to rethink the value of your subscriptions to their services," said Owen Wilcox, co-founder of USInstallmentLoans. "You have probably forgotten about other subscriptions, yet they continue charging monthly fees. Consider canceling, putting some on hold, or renegotiating the deals to free up critical funds to be redirected to your emergency fund."

Start Setting 5%-10% of Your Paycheck Aside

To continue reading, please go to the original article here:

https://news.yahoo.com/build-6-month-emergency-fund-173007166.html

Tails, You Win

Tails, You Win

Jul 26, 2022 by Morgan Housel

Steamboat Willie put Walt Disney on the map as an animator. Business success was another story. Disney’s first studio went bankrupt. Later cartoons were monstrously expensive to produce, and financed at onerous terms. By the mid-1930s Disney had produced more than 400 cartoons – most of them short, most of them liked, and most of them losing money. Disney and his studio were nearly broke.

Snow White and the Seven Dwarfs changed everything. The $8 million it earned in the first six months of 1938 was an order of magnitude higher than anything the studio earned previously. It transformed Disney Studios. All company debts were paid off. Key employees got retention bonuses. The company purchased a new state-of-the-art studio in Burbank, where it remains today. By 1938 Walt had produced several hundred hours of film. But in business terms, the 83 minutes of Snow White was pretty much all that mattered.

Long tails drive everything. They dominate business, investing, sports, politics, products, careers, everything.

Rule of thumb: Anything that is huge, profitable, famous, or influential is the result of a tail event.

Another rule of thumb: Most of our attention goes to things that are huge, profitable, famous, or influential. And when most of what you pay attention to is the result of a tail, you underestimate how rare and powerful they really are.

Venture capital is a tail-driven business. You’ve likely heard that. Make 100 investments, and almost all of your return will come from five of them; most of your return from one or two.

Correlation Ventures crunched the numbers. Out of 21,000 venture financings from 2004 to 2014, 65% lost money. Two and a half percent of investments made 10x-20x. One percent made more than 20x return. Half a percent – about 100 companies – earned 50x or more. That’s where the majority of the industry’s returns come from. It skews even more as you drill down. There’s been $482 billion of VC funding in the last ten years.

The combined value of the ten largest venture-backed companies is $213 billion. So ten venture-backed companies are valued at half the industry’s deployed capital.

There is a feeling, I’ve noticed, that this low-hit, high-stakes path is unique to VC in the investment world.

I want to show you that it’s not. Long tails drive everything.

The most successful venture-backed companies – the tails – go on to become public companies. And it’s easy to measure how important tail returns are to public markets. Spoiler alert: It’s not much different than VC.

The S&P 500 rose 22% in 2017. But a quarter of that return came from 5 companies – Amazon, Apple, Facebook, Boeing, and Microsoft. Ten companies made up 35% of the return. Twenty-three accounted for half the return. Apple alone was responsible for more of the index’s total returns than the bottom 321 companies combined.

The S&P 500 gained 108% over the last five years. Twenty-two companies are responsible for half that gain. Ninety-two companies made up three-quarters of the returns.

The Nasdaq 100 skews even more. The index gained 32% last year. Five companies made up 51% of that return. Twenty-five companies were responsible for 75% of the overall return.

It’s always like this. J.P. Morgan Asset Management published the distribution of returns for the Russell 3000 from 1980 to 2014. Forty percent of all Russell 3000 stock components lost at least 70% of their value and never recovered. Effectively all of the index’s overall returns came from 7% of components. That’s the kind of thing you’d associate venture capital. But it’s what happened inside your grandmother’s index fund.

You can drill this down even more.

Amazon drove 6.1% of the S&P 500’s returns last year. And Amazon’s growth is almost entirely due to Prime and AWS, which itself are tail events inside a company that has experimented with hundreds of products, from the Fire Phone to travel agencies.

Apple was responsible for almost 7% of the index’s returns. And it is driven overwhelmingly by the iPhone, which in the world of tech products is as tail-y as tails get.

To continue reading, please go to the original article here:

https://www.collaborativefund.com/blog/tails-you-win/

Why You Shouldn’t Keep Your Cash Under the Mattress

Why You Shouldn’t Keep Your Cash Under the Mattress

Valencia Higuera   Mon, July 25, 2022

If you don't know much about money, you don't have to look far for advice. You can always learn from personal finance articles, books and videos or money-savvy friends and family.

Although there's no short supply of guidance, money rules can shift over time. For that matter, some old-school advice should be taken with a grain of salt.

Pay Off Your Mortgage Early

Most people need a mortgage to purchase a home. However, financing a house entails paying thousands of dollars in interest. To reduce interest charges, some borrowers come up with a plan to pay off their mortgages early by making extra payments.

This advice isn't bad in itself, but according to Paul Moyer, the founder of SavingFreak.com, this advice doesn't make the same financial sense in our current low-interest environment as it did when mortgage rates were higher, like 6% to 8%.

"Those extra payments can do more work for you by being placed in other investments," Moyer said. "Even if you only get 6% over the life of the investment, you will beat the interest you are paying on your home mortgage."

You Can Buy a House You Can't Afford -- Just Get Roommates

Taking in a roommate or two can be a financially savvy way to save money, but never purchase a home if you can't afford to make the mortgage payments yourself. Roommates come and go, so you can't rely on them to pay off your home loan. And defaulting on a mortgage will ruin your credit and could result in foreclosure, making it hard for you to take out loans and buy another home in the future.

Prioritize Saving For Your Child's Education

Some parents believe it's their responsibility to pay for their child's college education. The problem, however, is that some people save for their child's college education at the expense of saving for their retirement. Rather than sock all your money away for college tuition, David Walters, a CPA and certified financial planner with Palisades Hudson Financial Group, encouraged prioritizing retirement.

"I often need to remind (parents) that you can finance your child's education with college loans and other funding sources, but you can't finance your retirement, so a balance is needed," said Walters. "This is even more important for parents with children at or close to college age, as their time horizon for retirement is much shorter."

Use a Money Transfer Company To Send Cash

To continue reading, please go to the original article here:

https://news.yahoo.com/why-shouldn-t-keep-cash-143210325.html

11 Social Security Mistakes That Can Cost You a Fortune

11 Social Security Mistakes That Can Cost You a Fortune

GOBankingRates  Gabrielle Olya   Thu, July 21, 2022

Whether you're counting on Social Security to fund most of your retirement income or supplement it, you want to make sure you get all of the money you're entitled to. However, with so many ways to claim benefits -- especially if you're married or used to be married -- small mistakes could end up costing you a lot of money over the rest of your life.  By knowing which Social Security mistakes to avoid, your retirement will be easier to handle -- even if you aim to retire early.

The Mistake: Not Checking Your Earnings Record

Even if you're decades away from claiming Social Security, you could be making a big mistake if you don't keep track of your yearly earnings.

The amount of Social Security benefits you receive depends on your earnings record, so if that record is incorrect, you might not receive the benefits you're entitled to.

Errors can occur for a variety of reasons, including an employer reporting an incorrect amount of earnings or your earnings not showing up because you got married or divorced and your name change has not been processed correctly.

What To Do: Check Your Social Security Statement While Working

To avoid losing money due to errors in your earnings record, check your statement annually. If you notice errors, gather proof of your earnings to send to the Social Security Administration, such as your W-2 or pay stubs. Once the Social Security Administration has verified your claim, it will correct your record.

It's much easier to prove an error that happened the previous year, when you still have your records handy, than it is for 10, 20 or more years ago because you probably don't have a paper trail going back that far.

The Mistake: Not Working Long Enough

To qualify for Social Security retirement benefits, you need at least 40 work credits. You can earn up to four credits each year based on your earnings. For 2019, you must earn $1,360 to get one credit, or $5,440 to get the maximum of four credits.

In addition, your benefits are calculated based on the average of your 35 highest-earning years. If you have fewer than 35 years of earnings, $0 will be averaged in for each year you don't have earnings.

What To Do: Do the Math Before Retiring

As you're approaching retirement, check your earnings statement first to make sure you have enough credits to qualify for Social Security. If you don't already have 35 years of earnings, consider whether working an additional year or two could help boost your Social Security benefits.

To continue reading, please go to the original article here:

https://news.yahoo.com/11-social-security-mistakes-cost-160102171.html

Money Stress Is Linked to Poor Financial Wellness

Money Stress Is Linked to Poor Financial Wellness, Advisors Can Help

Wola Odeniran  Fri, July 22, 2022

New research from T. Rowe Price shows that your level of financial stress can connect with your financial wellness. In fact, retirement plan participants who report stress related to debt are saving less for retirement than those who are not stressed. Let's take a look at how money stress can be a sign of poor financial wellness.

A financial advisor could help you create a financial plan to get on a stress-free path to managing your money.

Retirement Plan Participants Are Stressed About Money

T. Rowe Price says that your path to a successful retirement starts with financial wellness. This includes paying your bills on time, being prepared for emergencies, and making sure you have access to information and tools that can track your financial decisions and hold you accountable.

But research from the global investment firm shows that retirement plan participants are stressed about debt. And this is causing them to save less than those who are not stressed. The research shows that stress stems from several financial factors, including debt, budgeting and health care expenses.

According to the study, 33% of respondents are struggling to stick to their monthly budgets. Roughly one-third of those with student loan debt are having issues repaying it. And 20% of respondents are similarly struggling to pay off credit card debt or home equities.

Research also shows that this financial stress is taking a toll on young folks, women and racial minorities.

Among survey participants, 73% of workers age 30 and younger reported moderate to high levels of stress related to budgeting, while only 40% of older workers age 50 and older reported the same stress.

Research also shows that women are 26% more likely than men to experience higher levels of financial stress, specifically as it relates to debt, budgeting, nonretirement savings and health care expenses.

When it comes to race, the study found that Black and Latino workers are 34% and 40%, respectively, more likely to experience higher levels of debt-related stress than white workers.

Overall, 25% of respondents believe they will have to lower their standard of living in retirement.

How High Financial Stress Predicts Financial Wellness

To continue reading, please go to the original article here:

https://news.yahoo.com/money-stress-linked-poor-financial-153548429.html

Inflation Money Tips: Top Advice for Saving and Spending

Inflation Money Tips: Top Advice for Saving and Spending

GOBankingRates   Andrew Lisa   Thu, July 21, 2022

The bad news for anyone whose budget is struggling to keep up with rising prices is that inflation is not yet starting to cool. While things appeared to be moving in the right direction in April, May inflation spiked again and got worse in June.

"Inflation is over 9% right now so everything is more expensive," said personal finance expert and "Crawl Before You Ball" author Buffie Purselle. "Food, gas, water — everything you need to live. The reality is that there is very little room in anyone's budget for wants right now."

Purselle is not incorrect, but that doesn't mean there aren't things you can do to take the sting out of these tough economic times while waiting for prices to fall back down to Earth.

Write It Down and Visualize

It's hard to imagine that there's a personal finance expert on Earth who advises against creating a budget and a household spending plan, but they usually say to pick the app or software that works best for you. At least one expert, however, wants you to do it the old-fashioned way. "My biggest piece of advice for individuals looking to gain a strong financial footing in this uncertain economic environment is to write everything down," said Lisa Fischer, chief growth and lending officer of the fintech company Mission Lane.

"Whether it's scribbling in a notebook or typing out an organized list, keeping a detailed record helps you visualize your cash flow and cut down where needed. "Amid the current inflationary period, this will help individuals keep an eye on rising costs and spending within the necessity and luxury expense categories."POLL: Do You Have a Side Gig or Other Hustle?

You Know What's Inflated? Your Recurring Subscriptions

If you take Fischer's advice and write your budget out by hand, you'll probably notice that you're writing some variation of the same thing over and over and over again. "Get rid of those eight or nine different subscriptions," Purselle said. "It's the first thing to go. Get rid of those charges you get every month for apps you don't use and you don't necessarily need. It's not about just not going to get coffee — those small amounts and subscriptions add up. And once you put that money back in your budget, put it in your savings."

Match Your Investments to the Moment

Interest rates are rising, which makes money more expensive to borrow, but it's probably safe to say that your savings account yield has barely ticked up only a little, if at all. The good news is that you can move your money to savings vehicles designed with inflation in mind. "Two such tools are TIPS — Treasury Inflation-Protected Securities — and Series I Savings Bonds," said Maya Nijhawan, co-founder and COO of Finch Credit.

"Both are designed to help protect your money from inflation, but they have their own nuances. Before you hit the buy button, make sure you understand all the terms and conditions."

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/top-money-advice-for-periods-of-inflation/?utm_campaign=1174515&utm_source=yahoo.com&utm_content=11&utm_medium=rss

11 Ways Warren Buffett Lives Frugally

11 Ways Warren Buffett Lives Frugally

GOBankingRates  By Amanda Garcia     Wed, July 20, 2022

Trying to build your savings, pay off debt and make the most of your money? You might want to try living like a billionaire — but only if that billionaire is Warren Buffett. The investor — known as the Oracle of Omaha — is the CEO of Berkshire Hathaway. But there's more to this American business magnate than just his job.

Despite his roughly $125.1 billion net worth, according to Forbes, the eight-wealthiest man in the world enjoys a life of simple taste, frugal living and generous philanthropy. Here's a look at Warren Buffett's tips for living frugally.

Despite his roughly $125.1 billion net worth, according to Forbes, the eight-wealthiest man in the world enjoys a life of simple taste, frugal living and generous philanthropy. Here's a look at Warren Buffett's tips for living frugally.

Warren Buffett's House Is the Same One He Bought in 1958

Billionaires live in mansions, right? Not Buffett. He lives in the same residence in Omaha, Neb., that he bought in 1958 for $31,500, the equivalent of roughly $285,000 in 2020 dollars. Buffett has no intention of putting his own home up for sale. "I wouldn't trade it for anything," he told CNBC earlier this year.

POLL: Do You Think You Will Be Able To Retire at Age 65?In today's money, Buffett would have paid about $43 per square foot for the 6,570-square-foot home. But these days, the home is worth about $161 per square foot, according to the home's current value listed by the tax assessor's office in Douglas County, Nebraska, where Buffett lives.

If you want to live like Buffett, consider buying less home than you can afford. Instead of paying pricey mortgage payments, you'll be able to put more of your money toward savings, retirement or vacations. And if you must take out a loan, perhaps get a 30-year mortgage — it's "the best instrument in the world," Buffett told CNBC.

In fact, Buffett took out a 30-year mortgage in 1971 when he bought a vacation home in Laguna Beach, California. "If you're wrong and rates go to 2%, which I don't think they will, you pay it off," he said. "It's a one-way renegotiation. It is an incredibly attractive instrument for the homeowner and you've got a one-way bet."

Buffett Starts His Day With a Cheap Breakfast

You might assume billionaires brunch at the most extravagant restaurants, ordering eggs Benedict and bottomless mimosas. Or, they hire a personal chef who can whip up whatever and whenever they want — right? Wrong. Adopting Buffett's lifestyle doesn't include paying high prices for daily gourmet French toast prepared in the comforts of your own home. When it comes to food, the billionaire investor has been known to save money by taking the fast-food route.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/11-ways-warren-buffett-lives-173001606.html