Why is it so Essential to Learn Money Skills?

Why is it so Essential to Learn Money Skills? 

August 2021   By Financial Imaginer

Do you know how to take care of money? Did you learn about money in school? From family? From friends? Have you ever wondered how some people seem to have more money than others? Some even have more than they would ever need. This is not just because they’re lucky, it’s because they’ve learned how to take care and manage their money!

If you want to feel confident about your financial future, then there are some things you can learn about money. I can be your teacher. If you invest your time to improve your financial literacy, I promise you here and now this will be one of the best decisions of your life!

This article aims to show you how the first steps to a better life must be to improve your financial literacy. Why earning, saving, and investing more money are the key to a better life.

Are you ready to learn how it all goes together and take control of your financial future?

Get yourself a cup of coffee or tea first.

Let’s get started!

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Learn How to Make Money Work for You

The best time to get started learning money skills is when you’re a child, the second-best time is right now!

It’s time to learn how money works and how you can make the most out of it.

Most people work very hard for their money, but why not become the person that makes its money work very hard for yourself? Work on becoming the latter!

Invest in Your Financial Literacy

Before you get started investing into capital markets, invest in your own financial literacy. There are a lot of things you can learn about money. And yes, it isn’t always easy. However, it’s also not rocket science!

What is Financial Literacy?

Financial literacy is the knowledge how money works. It’s the combination of skills and attitudes needed to make sound financial decisions and participate in the full range of money management activities throughout life.

In short: the knowledge and skill to make money work for You!

Understanding how money works helps not only financially but also emotionally.

Once you know how to make money work for you, the next steps will become easier: from budgeting to saving to investing.

The Most Important Investment of Your Life

Would you start playing Monopoly without understanding the rules of the game?

I guess not.

Poor people know how difficult it can be just to pay all their bills each month or how hard it might be to daydream about saving enough money for retirement while staying stuck in the hamster-wheel. Going round and round in circles but not really making any advancements or progress. This is exactly like playing Monopoly only relying on the money you get once you cross Start…

Monopoly; learn how to play before getting started!

Don’t go through life only collecting your stable pay-check every time you pass by “START”, level-up!

But why go through your life if you wouldn’t even play a boardgame this way?

It’s so simple, one of the most important things you should invest in your life is to understand the “rules of the game” – of YOUR life!

The fact that you’re reading this blogpost is an indicator that you’ve got appetite to learn the rules and improve your financial literacy.

Make learning how to money your new priority!

Understand how Money Works in Your Life and how it affects you emotionally

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

https://www.financial-imagineer.com/learn-money-skills/

8 Auspicious Money Traditions to Welcome The Chinese New Year of the Rabbit

8 Auspicious Money Traditions to Welcome The Chinese New Year of the Rabbit

21. January 2023 By Financial Imaginer

The Chinese New Year of the Rabbit is just around the corner and with it comes a time for celebration, family, friends, and of course – Money.  The new year is all about new beginnings, fresh starts, and building your fortune!   My wife is from Taiwan and by now we’ve almost enjoyed 20 Chinese New Year celebrations together in Taiwan, Singapore, and Switzerland. I always enjoy celebrating and immersing myself in Chinese New Year festivities and thought it was time to share and explore these beautiful traditions in the form of a blog post.

Always welcome the new morning with a new spirit, a smile on your face, love in your heart, and good thoughts in your mind.

Let’s dive in together and find out how to bring in good luck and riches during the year of the rabbit!

1. Chinese New Year Red Envelopes

Red envelopes are a special kind of envelope given to children during Chinese New Year. Inside the envelope is money, which is meant to bring good luck and happiness. Red envelopes are also given as gifts to family and friends, as a way to wish them good luck for the coming year.

The amount of money in the envelope is usually small, like some coins or paper money. This symbolizes the sharing of good fortune and is thought to bring even more luck and happiness!

The amount of money being gifted in red envelopes is important! While it’s also “the more, the marrier”, it is believed that giving specific amounts, lucky numbers, can bring more abundance and luck for the receiver. The numbers 8 and 6 are two of the most auspicious numbers.

恭喜發財，紅包拿來 – Gōngxǐ fācái hóngbāo ná lái！

Show generosity by giving away red envelopes with money inside during Chinese New Year celebrations!

2. Spend Money to bring Good Luck and Prosperity

People will often go on shopping sprees to buy new clothes, jewelry and other items in order to make sure they look their best during this time of celebration. Some also look at buying new items as a form of investing: New clothes or jewelry will bring fortune!

The idea behind this comes from embracing the abundance mindset within. This tradition is supposed to work a bit like “money karma“:

The more money you spend, the luckier and wealthier you will get.

Disclaimer from my side: It’s important to keep your spending in check!

Even if it might not be a “good investment”, new items will make you appear renewed, fresh, and ready for a new year full of new opportunities!

3. Pay off Debts before Chinese New Year

People use Chinese New Year as an opportunity to pay off any lingering debts in order to start the new year on a good financial footing. They pay off any existing debts before the Chinese New Year starts.

While you ought to do this before Chinese New Year, some also pay off debts with money that has been gifted during Chinese New Year.

This further symbolizes the new beginning and getting rid of old baggage.

4. There’s no Number 4 during Chinese New Year

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

https://www.financial-imagineer.com/chinese-new-year/

How Much Land Does a Man Need?

How Much Land Does a Man Need?

February 2022 Financial Imaginer

How much land does a man need? This is the question Leo Tolstoy asked himself after realizing that chasing more and more in life would never lead to happiness. In his classic book of the same name, he delves into a tale of a farmer who is rushing through life aiming to accumulate increasingly more land.

The story starts with how a farmer’s wife had a visit from her sister from the big city.

While they were sitting at the table, his wife started to talk – and compare their lives:

“I would not change my way of life for yours, we may live roughly, but at least we are free from anxiety. You live in better style than we do, but though you often earn more than you need, you are very likely to lose all you have. It often happens that people who are wealthy one day are begging their bread the next. Our way is safer. Though a peasant’s life is not a fat one, it is a long one. We shall never grow rich, but we shall always have enough to eat.”

The elder sister from the big city replied:

“Enough? Yes, if you like to share with the pigs and the calves! What do you know of elegance and manners? However much your good man may slave, you will die as you are living – on a dung heap – and your children the same!”

The farmer’s wife shockingly defended herself:

“So what, of course, our work is rough and dirty. But, on the other hand, it is sure; and we need not bow to anyone. But you, in your towns, are surrounded by temptations; today all may be right, but tomorrow the evil one may tempt your husband with cards, wine or women, and all will go to ruin. Don’t such things happen often enough?”

All the time, the farmer was listening and chopped in:

“Busy as we are from childhood tilling mother earth, we peasants have no time to let any nonsense settle in our heads. Our only trouble is that we haven’t enough land. If I had plenty of land, I shouldn’t fear the Devil himself!”

This is just the beginning of this great and valuable story and already all the ingredients for the big question of why “how much is enough in life” is such an essential question are on the table.

Let’s dig in.

1. The Grass Isn’t Always Greener on the Other Side

When we’re not content with what we have, we tend to look at others and compare ourselves with them. “Why does he/she have more than me?” We see the grass as being greener on the other side, but is it?

Chances are that others simply show you their life’s highlight reel but if you take a closer look, you’ll realize that the grass isn’t that green.

“Comparison is the thief of joy.”   Theodore Roosevelt

When we compare ourselves with others, how can we ever be happy? When will enough ever be enough? At some point, you just have to stop looking around and focus on your own life!

 We will always find something to long for – be it material things like money, cars, better clothes or houses – or non-material things like fame, recognition from others, or even love.

But how often do we realize when enough is enough?

How often are we content with what our lives are like now?

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

https://www.financial-imagineer.com/how-much-land-does-a-man-need/

How To Protect Yourself From These 4 Banking Scams That May Target You

How To Protect Yourself From These 4 Banking Scams That May Target You

Gabrielle Olya   Sun, January 29, 2023

There are many benefits to keeping your funds in a bank account, but one of the main reasons many people keep their money at a bank rather than under the mattress is the added security this provides. However, some scammers have come up with clever ways to access your bank account information or to get you to send them money from your secure accounts.

Here’s a look at some of the most common banking scams — plus, how you can avoid becoming a victim.

Phishing Scams

Phishing is a type of scam that targets consumers by sending them an email or text that appears to be from a well-known source, such as their bank. These messages will often ask you to click on a link or enter personal financial information, which the scammer can then use to access your accounts.

For emails, you can often tell these are fraudulent by looking at the sender address. If it is from a Gmail, Hotmail, AOL or Yahoo account or includes a bunch of numbers or letters, you can be certain it is not from your bank.

However, if you receive a text or email that appears to be from your bank but you’re unsure of its legitimacy, it’s best to double-check by contacting your bank directly.

“Locate a number for the business that you know is legitimate, such as the number on the back of your credit card, to determine if they’re the ones reaching out to you,” said Chip Kohlweiler, senior vice president of security at Navy Federal Credit Union.

Avoid clicking on any links you receive in an email or text message that seems suspicious, and do not provide any sensitive information to the sender.

Some financial institutions, including Navy Federal, do use text messages to verify suspicious purchases. However, those texts will never request personal information,” Kohlweiler said. “Check with your financial institution to see if it offers SMS text banking or mobile alerts — that way you can identify the difference between a real message and a scam.”

‘Vishing’ Scams

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

https://news.yahoo.com/protect-yourself-4-banking-scams-130018963.html

What the U.S. Debt Ceiling Limit Means for Your Finances

What the U.S. Debt Ceiling Limit Means for Your Finances

By  Brian Martucci  January 23, 2023

The U.S. government is in danger of intentionally defaulting on its debt obligations for the first time in its history.

The Biden Administration and the House of Representatives, which is controlled by Republicans and led by Speaker Kevin McCarthy, must agree to raise the country’s legal borrowing limit — known as the debt limit or debt ceiling — by early June 2023. If they don’t, the government won’t be able to fund its operations, and financial markets will absolutely freak out. That, in turn, could have far-reaching (and very bad) consequences for your personal finances.

What Is the Debt Limit?

First, a quick review of what the debt limit is and the situation we find ourselves in today.

The debt ceiling is the maximum amount the United States government can borrow to fund its obligations. It’s currently $31.381 trillion.

The debt limit is set by law. No one can raise it unilaterally, not even the President of the United States. The only way it can increase is through Congressional authorization. That is, Congress has to pass a law saying “We are raising the debt limit from x dollars to y dollars.”

One common misconception about the debt limit is that raising it automatically puts the federal government deeper into debt by authorizing new spending. Were this true, not raising the debt ceiling would be a great way to control the size of the federal government.

In reality, Congress must raise the debt limit so that the government can pay bills it has already agreed to pay: Social Security checks, Medicare reimbursements, veterans’ healthcare, military service members’ salaries, and on and on. Congress choosing not to raise the debt ceiling is akin to a business owner deciding not to pay her employees or a homeowner telling his mortgage servicer to stuff it.

But because this misconception is so prevalent, it’s tempting for politicians to use the debt ceiling as leverage in negotiations over future government spending. That’s what happened in 2011, when House Republicans successfully used the threat of default to get the Obama Administration to agree to spending controls, and what’s happening again in 2023.

In the summer of 2011, the government came within hours of defaulting before White House and Congressional negotiators finally hammered out and passed an agreement to raise the debt ceiling. The mere threat of default spooked financial markets and chilled demand for U.S. government bonds, sending yields higher.

Since a wide range of consumer and business credit products yoke their interest rates to U.S. bond yields, this temporarily increased rates on mortgages, auto loans, personal loans, and more — hitting consumers and business owners right in the wallet.

Why Does the Debt Limit Exist?

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

https://www.moneycrashers.com/us-debt-ceiling-limit/?utm_source=apexmoney&utm_medium=dailynewsletter&utm_campaign=i-will-never-recommend-crypto

5 Tips To Help You Safely Pass on Your Wealth

5 Tips To Help You Safely Pass on Your Wealth

Andrew Lisa   Fri, January 27, 2023

It’s hard to imagine that anyone looks forward to planning how their stuff will be divvied up after they die. But taking the time to ensure a smooth transfer of wealth could be your final act of selflessness — and your posterity will certainly be grateful for your efforts.

“Having a well-thought-out plan prepared in writing by an estate planning attorney is essential,” said estate planning and wealth transfer attorney Robert E. Kabacy of Kell, Alterman & Runstein, L.L.P. “Without a plan, even though statutes define how an estate is handled, heirs are sometimes left with questions.”

Questions are just the start of what can go wrong if you neglect to make arrangements.

A poorly planned transfer of wealth can saddle your beneficiaries with high fees, unnecessary tax obligations and, worst of all, foster infighting, resentment and prolonged legal battles among your heirs.

The good news is that a little bit of planning can prevent all of those unfortunate outcomes and enshrine your legacy for generations to come.

If Nothing Else, Write a Will

The most basic tool in the wealth-transfer process is a will, which provides a record of your wishes. Without one, the state — and your heirs — are left guessing.

“A will is used to designate how you want your assets distributed to your surviving loved ones upon your death,” said estate planning attorney Tim Hurban of Hurban Law. “If you die without a will, state law governs how your assets are distributed, which may or may not be in line with your wishes.”

Create a Written Inventory of Your Assets

Every will is only as good as the chronicling of assets that goes with it.

“The single most important thing you can do to insure that your wealth is passed onto your loved ones is to keep an inventory of your assets somewhere,” said Tim Hewson, CEO and co-founder of U.S. Legal Wills. “In your will, you typically refer to ‘my estate,’ and it is the responsibility of your executor to gather up that estate and distribute it to your beneficiaries according to the instructions in the will.”

The problem, according to Hewson, is that executors often have no idea what or where your assets are. That’s why it’s crucial to create a detailed record that includes the information, account numbers, logons and passwords needed to access them.

“A generation ago, our parents may have had two bank accounts and a monthly statement sent to them in the mail,” Hewson said. “Today our assets are distributed all over the place, including in online accounts.”

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

https://news.yahoo.com/pass-wealth-according-experts-120011191.html

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