Inflation Hedge Your Life: 5 Easy Ways to Live Richer

Inflation Hedge Your Life: 5 Easy Ways to Live Richer

By Financial Imaginer

Inflation is at an all-time high. The rising prices of goods and services are making it increasingly difficult for people to live comfortably. However, there are ways that you can inflation hedge your life and potentially live even richer without having to make significant changes. In this blog post, we will discuss some creative ways that you can protect yourself from the effects of inflation.

There are endless possibilities when it comes to inflation hedging your life.

Some of them are surprisingly simple and easy to implement.

Let’s get started!

1. Rethink Your Habits and Lifestyle

When it comes to inflation, you have to be mindful of every penny that you spend. What are you spending it on? Is it for a solution, for solving a problem, for a brand? One way to do this is to rethink your current habits and lifestyle. Are there any expenses that you can reduce or eliminate? Can you find cheaper substitutes for the things you need without reducing your quality of life?

Chances are most readers can do a lot on this first point!

A lot of people suffer from what is called lifestyle inflation. This occurs when your spending rises along with your income. You may not even realize it, but as you get raises and promotions, your lifestyle slowly starts to creep up. Suddenly, you’re spending more on coffee, going out to eat more often, and buying nicer clothes. All of these expenses can add up, and before you know it, your lifestyle inflation becomes inflationary itself!

The more you give in to lifestyle inflation.

The more you’re robbing your future self.

Of course, this is not to say that you should never enjoy the fruits of your labor. But it is important to be mindful of your spending and make sure that your lifestyle doesn’t become too inflated.

If you are looking for ways to reduce your spending, here are a few ideas:

– Find free or cheap entertainment options in your city or town.

– Replace sparkling bottled water with a Sodastream machine.

– Start cutting your own hair instead of paying for haircuts.

– Make coffee at home instead of buying it every day.

– Bring lunch from home instead of eating out.

– Shop at thrift stores or consignment shops.

– Grow your own veggies in a garden.

– Bake your own bread.

In a nutshell, the golden rule here is: Never upgrade your lifestyle too fast!

If you’ve gone beyond that point, think again, reconsider, and reevaluate.

There are many other ways that you can cut down on your spending.

The key is to be creative and to find what works best for you!

2. Separate Your Wants from your Needs

Every person’s life is different, so there is no one size fits all solution. However, by being mindful of your spending and separating your wants from your needs, you can make a significant impact on your budget.

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

https://www.financial-imagineer.com/inflation-hedge-your-life/

The Secret to Becoming a Money Jedi and Unlocking Financial Independence

The Secret to Becoming a Money Jedi and Unlocking Financial Independence

May the Life Force be with You!

2. January 2023  Financial Imaginer

Do you want to be a Money Jedi? Of course you do! Who wouldn’t want to have the power to control their finances and achieve financial independence? In this blog post, we will discuss the secret to becoming a Money Jedi and unlocking your true financial potential. It all comes down to harnessing the life force!   Your focus determines your reality.  Qui-Gon Jinn

Ok, enough small talk, let’s dive right into it!

A long time ago in a Galaxy far, far away stories were told about a group of people who managed to control their life force…

The Life Force

The life force is the “secret ingredient” to unlocking financial freedom. It’s an intangible energy that can be found in all things, including and especially in money.

In a way, money is your “lifetime” converted into some intangible and powerful thing at your disposal. Isn’t money some sort of “time pill”, compressed and ready to use whenever you need it?

If you are serious about becoming a money Jedi, you need to start recognizing the life force in anything around you!

Feel it.

It’s everywhere.

This isn’t just a lame portfolio of boring stocks, this is your freedom dividend fund.

This isn’t a Lamborghini, it’s half a lifetime of freedom being depreciated on the road.

This isn’t a relaxing five-star resort holiday, it’s one year less of work closer to retirement.

This isn’t a nice McMansion with 3,000 sqft, it’s two decades of unpleasant extra work – or if you rent it out it’s your fortress of freedom!

You see, young Padawan, one got to gain complete control over your life force!

You got to learn how to control and make use of it.

Do or do not. There is no try.   Master Yoda

By harnessing this power, you can gain complete control over your money and use it for your highest good: Time!

Becoming a Money Jedi requires dedication and practice but with the right guidance, anyone can do it!

Financial Independence is just 2 Parsecs Away!

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

https://www.financial-imagineer.com/becoming-a-money-jedi/

The Worst Assets To Inherit and How To Address Them Before It’s Too Late

The Worst Assets To Inherit and How To Address Them Before It’s Too Late

David Nadelle   Thu, January 26,

The sudden and lengthy appearance of the coronavirus pandemic delivered many lessons — among them, that life can be taken away from even the healthiest individuals in the blink of an eye. Planning appropriate asset allocation before you die is an absolutely necessity for every adult.

Having a legally binding will in place lets you decide who will inherit your financial assets and possessions when you pass away. However, if you die without a will, the state in which you lived will make these very important decisions for you.

Financial assets are usually more straightforward, but as AARP noted, “Even IRAs and 401(k)s can be problematic, since they aren’t easy to transfer to the next generation or your children hold on to them for sentimental value.” Cash may be the best asset to leave behind, according to some experts.

You always want to do right by the deceased, but sometimes receiving another’s possessions when they pass can be more of an inconvenience than good fortune. Here are five of the worst assets to inherit and how to address them before it’s too late.

Businesses

While it is a reasonable and kind act to pass on your hard-earned business to your children, not every child wants to “take over the family business.” A business requires a succession plan so there are no unresolved expectations and operating details. Barring passing it over to a family member, business owners will need to arrange a buy-out by any existing partners — or a sale to a prospective buyer — while they are still living and working.

Timeshares

The one good thing about inheriting a timeshare is that it is already (partially) paid for. However, inheriting a timeshare means taking over a shared vacation resort, condo or property that won’t increase in value, that comes with annual fees and maintenance costs — and that includes strict regulations and flexibility concerns. Timeshares are often more of a headache than a relaxing adventure away from home, so those who are considering passing them down to another should find out first if the timeshare is even wanted and if not, make arrangements to disclaim it.

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

https://www.yahoo.com/finance/news/worst-assets-inherit-address-them-182019998.html

9 Principles & Strategies to Becoming a Millionaire (in 2023)

9 Principles & Strategies to Becoming a Millionaire (in 2023)

By Psychologist & Writer Dr. Benjamin Hardy

It’s not how good you are but how good you want to be - You have to want it!

We all become the product of our desires  - If you don’t want to become successful – you won’t – We all have  stories and values in our mind – and a lot of people think that wealth or success is bad -  this is not true  - There has to be a “why” behind it -

https://www.youtube.com/watch?v=pmIhDENqbfc

Psychologist Dr. Benjamin Hardy Explains: Money Habits Keeping You Poor

https://www.youtube.com/watch?v=m2NChuS4dSo

This Video Will Teach You More Than Reading 100 Books | Dr. Benjamin Hardy

https://www.youtube.com/watch?v=oUK6x5S0RUk

Don’t Hide Your Emergency Cash in These Spots

Don’t Hide Your Emergency Cash in These Spots

Cynthia Measom   January 23, 2023

To keep from having to go into debt when the unexpected happens, financial experts recommend that you open a savings account and build an emergency fund that can cover three to six months' worth of expenses. While that's all well and good, sometimes you need to have cash within arm's reach.

"It is smart to have a stash of money on hand in case of natural disasters or major power outages when electronic money transfers may not be possible," said Andrew Latham, certified financial planner and content director for SuperMoney. "However, the lion's share of your emergency savings should be in an FDIC-insured savings account earning interest."

If you're hiding emergency cash at home, here are some spots you should avoid.

Buried in Your Yard

"If you want to keep your cash accessible but not in a bank account, you might get tempted to put it in a coffee can or plastic bag and bury it in your yard," said Laura Adams, MBA and personal finance expert with Finder. "That might be the worst place for cash because it could get destroyed, forgotten or stolen. Even if you have home or renters insurance, it never covers lost, damaged or stolen cash."

In a Safe That Isn't Waterproof or Fireproof

"If you want cash on hand, ensure it's in a waterproof and fireproof safe or locked cabinet," Adams said. "Make sure you don't keep all your emergency money at home because a natural disaster such as a fire, flood or windstorm could put you at risk of losing all of it."

Under a Loose Floorboard or Behind a Loose Brick

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

https://finance.yahoo.com/news/don-t-hide-emergency-cash-200301493.html

5 Major Money Mistakes To Avoid When You’re Nearing Retirement

5 Major Money Mistakes To Avoid When You’re Nearing Retirement

Jan 24, 2023  By Jennifer Taylor

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

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

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

Building Wealth

Collecting Social Security Benefits Too Soon

Many people make the mistake of taking Social Security income as soon as they can because it’s available. Others start early because they’re afraid the system will run out of money. Neither approach is the best way to maximize benefits.

“You receive more each month if you wait until your full retirement age, and you can even get increases after that — amounting to roughly 8% per year until you’re 70,” said Justin Pritchard, CFP, founder of Approch Financial, Inc. in Montrose, Colorado.

Having patience can literally pay off.

“Instead of claiming as soon as possible, run some numbers to determine how much you’ll earn if you wait,” he said. “Remember that a surviving spouse who takes over your benefit will be affected by your decision, so choose carefully.”

Cashing Out a Retirement Account

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

https://www.gobankingrates.com/money/financial-planning/major-money-mistakes-avoid-turn-60/

The Future of Banking: When Will We No Longer Need Cash?

The Future of Banking: When Will We No Longer Need Cash?

Andrew Lisa   Tue, January 24, 2023

In 1950, Americans could pay for dinner at a restaurant even if they left their money at home for the first time in history. That was the year Diners Club introduced the world’s first credit card.

More than 70 years later, the cashless society that’s been promised since then still hasn’t materialized. Despite direct deposit, BNPL, Apple Pay, Venmo, cryptocurrency and the rest, green paper rectangles with pictures of dead presidents still have a home in our wallets.’

If mobile banking apps and blockchains didn’t bring death to the dollar, is the long-awaited cashless society a myth, or is the generation coming of age today the last that will ever see paper money outside of a museum?

The Writing Is on the Wall for the Good Old Greenback

According to The New York Times, central banks across the world are experimenting with digital versions of their money — kind of like Bitcoin, but issued by the state and controlled as a currency. Sweden, China, Japan and others are introducing these digital currencies alongside old-fashioned cash. The plan in large would be to phase out paper money gradually over time.

According to the Atlantic Council, the U.S. Federal Reserve recently began working on a bank-to-bank digital currency of its own designed to speed up transfers between the world’s financial institutions. Unlike the previously mentioned countries, America’s central bank digital currency (CBDC) is only for wholesale transactions and isn’t yet a consumer currency — “yet” being the key word.

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

https://finance.yahoo.com/news/future-banking-no-longer-cash-120025072.html

What Does This Look Like 10 Years From Now?

What Does This Look Like 10 Years From Now?

Simon Black   January 23, 2023

On March 2, 1629, after years of escalating tensions with his own government, King Charles I of England dissolved parliament and ordered all the politicians to go home.

He was only in the fourth year of his reign, but Charles was already a very unpopular king. One of his worst habits was frequently abusing his power and taking unilateral executive actions-- raising taxes or passing new regulations-- which would ordinarily require the approval of parliament.

But Charles hated going through parliament, and he routinely found ways to bypass them; often he would creatively interpret obscure passages of ancient laws as justification to do whatever he wanted.

In one instance, Charles decided that a 400+ year old law, which had first been decreed under Henry III in the early 1200s, gave him the authority to demand payment from everyone in the country making more than 40 pounds per year. It did not.

In another example, he claimed that ‘tradition’ entitled him to collect customs and duties on various imports, even though English law clearly required parliamentary approval on all imposts.

Charles also famously demanded money from wealthy merchants and banks, calling them “forced loans”. He even seized literally TONS of silver from the Royal Mint that was being stored on behalf of wealthy individuals and foreign governments.

Parliament made attempts to block Charles; when he asked for money to raise an army and go fight in the Thirty Years War (which had been raging in Europe since 1618), parliament refused. When he wanted funds to bail out a close relative in Denmark, parliament again refused him.

Sometimes their disputes even spilled into the courts, where judges had to determine the legality of the king’s taxes and regulations.

But nothing was ever settled, and no compromises reached. In fact the conflict continued to escalate, until Charles finally dissolved parliament in 1629… effectively shutting down the government.

This is an often-repeated story throughout 5,000+ years of human history; there have been countless examples of dysfunctional governments and terrible leadership that fail to reach a rational compromise over the nation’s finances.

And such examples tend to be a hallmark of a nation in decline.

In the case of Charles, he would go on to be arrested, tried, and executed, and England plunged into a civil war.

Louis XV of France, and his successor Louis XVI, also routinely fought with their parliaments over royal finances. France would soon go bankrupt and dive head-first into revolution.

These are lessons worth noting, given that the United States government is once again at the precipice of default.

The national debt now stands at nearly $31.5 trillion. This is the current statutory ‘debt ceiling’, meaning that the Treasury Department no longer has the legal authority to borrow more money.

This means that yet another government shutdown is potentially on the table, as is a default on the national debt.

If this story sounds familiar it’s because this has already happened in recent history-- in 2011. And 2013. And 2018. And 2019.

Now it’s happening again. And unsurprisingly, both sides have dug in and claim they are unwilling to negotiate their demands.

To say this is yet another humiliation for the United States is a massive understatement. The entire world can see that, not only is the US government incapable of managing its finances… but also that its politicians cannot rationally solve problems. It’s pitiful.

What I really want to focus on today, however, is the future: what do you think this problem will look like 10 years from now?

Today it’s already a terrible embarrassment… and a major problem.

The national debt is so big that, this fiscal year, the Treasury Department will spend close to $1 TRILLION just to pay INTEREST.

This is happening at a time when:

1) Interest rates are rising (which means that the government’s annual interest bill will increase)

2) The economy is slowing (so tax revenues will decrease)

3) Government spending is still outrageous, with a $1+ trillion deficit expected this fiscal year

This is a pretty disastrous scenario. And if you plot this trend line starting from where we are today, it’s easy to imagine what might happen over the next decade.

If deficits are already $1 trillion per year right now, how high will they be in a decade? If the national debt is $31.5 trillion today-- roughly 120% of US GDP-- how high will it be a decade from now?

It’s silly to assume that the United States can simply keep growing the national debt forever without consequence. It’s silly to assume they can run trillion dollar deficits every year without consequence.

Today those consequences are just embarrassments and minor inconveniences. Ten years from now they may be major catastrophes.

This is the entire point of having a Plan B. The future is far from certain-- and it’s possible that voters finally elect competent leadership who act responsibly and arrest the nation’s decline.

And that’s a nice hope, and it would be great if it happens.

But it’s a lot more rational to focus your energy on things that you can control. And that’s a Plan B.

If your government is on a clear path to more humiliation and fiscal ruin, it makes sense to ensure you don’t have all of your eggs in one basket.

To your freedom,

Simon Black, Founder  Sovereign Research & Advisory

https://www.sovereignman.com/trends/what-does-this-look-like-10-years-from-now-145298/

What To Do With Lump Sum Pension Payout

What To Do With Lump Sum Pension Payout

I’m about to get $130,000 from a lump-sum pension payout, but I don’t know what to do with it

By Beth PinskerFollow

A reader wants to know the best way to invest a lump sum of money to have it last through retirement

Got a question about the mechanics of investing, how it fits into your overall financial plan and what strategies can help you make the most out of your money?

Dear Fix My Portfolio,   I am about to receive a lump-sum payout from a pension plan I was in. It’s around $130,000. Need some advice on the best way to invest this money. I am turning 60 in April and don’t have a 401(k) or IRA plan.      Stephen in Connecticut

Dear Stephen,

It’s great that you’re asking what to do about moving around a major sum of money before it actually happens. So many people move the money first and ask questions later, which can cost you quite a bit in taxes and lost gain.

“I cannot tell you how many calls and inquiries I have received after an investor has made an incorrect rollover decision or unadvisable Roth conversion decisions, incurred huge tax liabilities, or caused their Medicare premiums to be double what they might otherwise be, and then called me to ask for help after the damage was done,” says Eric Amzalag, a financial planner and owner of Peak Financial Planning in Woodland Hills, Calif.

If $130,000 is going to be the majority of your nest egg for retirement, then you most likely want to do a direct rollover to an IRA account and never touch the money yourself. Your pension plan should be able to send the money directly to wherever you set up an account — most major financial institutions should have an option for you to open a rollover IRA account — and then you won’t owe tax until you take out distributions.

If the money comes to you in the form of a check and then you deposit it into an IRA account within 60 days of the distribution, you can likely defer the tax. But the timing can be tricky, and if you miss your window, you’ll owe the IRS income tax on the full amount.

Your investment choices

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

https://www.marketwatch.com/story/im-about-to-get-130-000-from-a-lump-sum-pension-payout-but-i-dont-know-what-to-do-with-it-11674449759?siteid=yhoof2

The Similarities Between Fitness and Personal Finance

The Similarities Between Fitness and Personal Finance

December 20, 2021  Financial Pilgrimage

What do physical fitness and personal finance have in common? On the surface, there are a lot of differences between your fitness program and financial wellness. One involves income, spending, saving, and investing. The other involves physical activity, nutrition, and overall health. The reality is that financial fitness (and just fitness) are some of the most critical areas of our lives. It’s no coincidence that there are striking similarities between fitness and finance once you start digging in.

Financial Fitness is Behavioral

Fitness programs have always been a big part of my life. So when referring to fitness, we’ll be talking about both sides of the equation, including physical activity and nutrition. Being raised by a dietitian and having a love of sports had me interested in both early on. Looking back, I feel fortunate to have built habits in both areas at a relatively young age.

Growing up in a house with two younger brothers and a junk food-loving dad, the competition for unhealthy food was fierce. My mom would go grocery shopping every ten days, and the one bag of chips or package of cookies would be gone within a day, sometimes minutes. That would leave us with nothing but rice cakes, fruits and veggies, and other healthy options for the rest of the week and a half. It was rough.

We had home-cooked meals that consisted of protein, carbs, and vegetables most nights. But, as I got older, I realized that having home-cooked meals was a rarity compared to other households.

We’d still get fast food on occasion. My dad was a fast-food manager, after all. With three kids in the house, sometimes the easy thing was to bring home a big bag of burgers and fries so we could eat and then make our way to evening activities. This taught me that one of the most critical nutrition lessons is “everything in moderation.” Eating fast food, sweets, or potato chips is fine on occasion as long as most of what you put into your body is more on the healthy side.

Whenever a new diet fad becomes popular, I’ll ask my mom about it to get her thoughts. Usually, she rolls her eyes. Over the years, there have been so many diet fads—Atkins, Paleo, Intermittent Fasting, Mediterranean, South Beach, and on and on. Almost everyone will swear by one of these diets and back it by “science.” I understand that some diets result from personal beliefs or food allergies. However, most people latch onto these fad diets, stick with them for a while, and then end up right back where they started. We’ll hit on this topic more below.

Personal Finance is Personal – So Is Fitness

When attending FinCon, a conference for personal finance nerds like me, the theme was “personal finance is personal.” This statement means that everyone’s situation is different. It’s one of the reasons why I believe there are so many personal finance bloggers as we all connect to other people in different ways. What I’ve learned through personal finance is that if you want to change your behavior, you have to change your habits.

Financial and fitness programs are behavioral, and they’re personal. Hopefully, this blog post resonates with some people, but it can’t be relatable to everyone. So all I can do is tell my story and share the experiences I’ve learned over my lifetime with the hope that it makes an impact.

We have a deep emotional connection to both food and money. For example, I know when I’m stressed and tired, that’s when I tend to stuff my face with junk food or drink alcohol. Similarly, others may practice “retail therapy” and take it to the malls to run up their credit card bills. It’s a vicious cycle that hits us in our weakest moments. So how do we change our habits? I’m not sure, but maybe understanding the similarities between fitness and financial wellbeing will be helpful.

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

https://financialpilgrimage.com/fitness-and-personal-finance/

How to Create Wealth during a Recession

How to Create Wealth during a Recession

By  Financial Imaginer

There’s no time like the present to create wealth. Most wealthy people know that it’s during difficult times when possibilities for building wealth abound. So if you’re looking to create some serious financial stability for yourself and your loved ones, don’t wait – don’t let this crisis go to waste – start now. Learn how to create wealth during a recession with the following 8 tips.

1. Never let a Crisis go to Waste.

When it comes to creating wealth, there’s no such thing as a bad time – only good opportunities disguised as bad times. So instead of being afraid of a recession, use it as an opportunity to create wealth. Change your goggles, instead of using your fear glasses, look for opportunities!

2. Get Creative with Your Investments

Wealth creation is all about thinking outside the box. If you want to create wealth during a recession, you have to be creative and think differently than “the rest of us“.

The building blocks of your [financial] life.

But don’t worry, there are plenty of ways to create wealth without putting your life savings at risk. For example, you could start a business or invest in real estate, another way is by investing in distressed assets. This could be anything from a house that’s in foreclosure to a business that’s about to go bankrupt. Of course, you need to be careful with these kinds of investments, but if you do your homework, you could see some serious opportunities during a recession.

You can also get creative with more traditional investments, like stocks and bonds. For example, you could invest in companies that are doing well despite the recession. The high percentage of passive investing results in more generic sell-offs of everything and stock pickers might find stocks at undeservedly low levels.

Another option is to start your own business. Many people lose their jobs during a recession, but if you have an entrepreneurial spirit, this could be the perfect time to turn your ideas into reality and pivor into a new life altogether. There are many resources available to help you get started, so there’s no excuse not to at least try.

What’s the worst that could happen?

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

https://www.financial-imagineer.com/how-to-create-wealth-during-a-recession/