8 Steps To Improve Your Finances in One Year

8 Steps To Improve Your Finances in One Year

Feb 1, 2023  By Jordan Rosenfeld

Financial security is at the top of many people’s wish list. Whether you’re in a job that doesn’t pay what you deserve, you’ve got too much debt or your spending habits outreach your income — this next year can be the one where you finally improve your money situation.

Follow these expert tips to make it happen:

Take Control of Credit Card Debt With a Balance Transfer

Paying down debt should be a top priority for anyone trying to improve their finances in a year’s time. One strategy is to move your existing credit card balance over to new card that offers a very low interest rate. While the amount you owe won’t change, you’ll save money on interest payments, allowing you to pay down your balance more easily.

When choosing a credit card for a balance transfer, you’re looking for two key characteristics: a very low introductory rate and low balance transfer fees.

One card that fits the bill is Navy Federal Credit Union’s Platinum Credit Card. With a low intro APR for 12 months on balance transfers made in the first 60 days, the Platinum Credit Card is designed to help you pay off your credit card balance faster.

After the introductory period ends, the Platinum Credit Card still offers a low variable APR for balance transfers. That rate also applies to new purchases, so this card is ideal for any larger purchases you may have planned.

Prioritize Your Car Loan

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

https://www.gobankingrates.com/money/financial-planning/steps-improve-your-finances-in-one-year/?utm_term=incontent_link_13&utm_campaign=1211296&utm_source=yahoo.com&utm_content=13&utm_medium=rss

Are Americans Keeping Too Little Cash in Their Checking and Savings Accounts?

Are Americans Keeping Too Little Cash in Their Checking and Savings Accounts?

Casey Bond   Monday, February 27, 2023

Choosing the right bank account is an important decision, as it can impact how easily you’re able to manage your daily finances. But you’ll also have to decide how much to keep in each account. Let’s explore some popular banking strategies to make sure you’re doing it correctly.

Which Bank Account, and for What?

Derek Ripp, a CFP and partner at Austin Wealth Management, suggests structuring your cash into three groups:

1. Routine, Recurring Expenses

These are the predictable bills that come in every month. Since you’ll need to access this money often, it’s a good idea to keep it in a checking account. A new GOBankingRates survey found that 90% of Americans have a checking account that they currently use. This type of account allows an unlimited number of withdrawals. Some offer higher interest rates, though you won’t (and shouldn’t) keep enough money on deposit to earn any significant returns.

Start by figuring out the lowest amount of money you need to cover your monthly expenses, then make sure you maintain at least that balance in your checking account at the start of each month. “The amount you hold here is up to you,” Ripp said. “Some people keep the bare minimum and others prefer more of a cushion.”

In the GOBankingRates survey, researchers discovered 37% of Americans have $100 or less in their checking account and 19% have $100 to $500 in their account to cover expenses. It’s likely many people spend more than $500 a month, so they should really be trying to up that account a little in order to always be able to cover their monthly expenses without needing to rely on a credit card or some other form of payment.

It’s also good to keep in mind that if you don’t keep enough money in your account, you could get hit with overdraft fees, which average a hefty $29.50, according to Statista.

So, be sure to monitor the balance regularly. Fortunately, most banks allow you to set up email and text alerts that notify you when the balance drops below a certain threshold.

2. Larger, Planned Expenses

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

https://finance.yahoo.com/news/much-money-keep-type-banking-132545262.html

Americans More Likely To Talk about Politics & Relationships than Money

Americans More Likely To Talk about Politics & Relationships than Money

A survey of 2,000 Americans found they're more likely to talk about politics and relationships with their friends than money

Tanza Loudenback Jun 16, 2021

Even after a year in which personal financial hardship dominated the national conversation, results from Insider's new Master your Money Pulse Poll suggest that Americans still aren't comfortable discussing money with friends.

When asked which topics they regularly discuss with friends, each of the following outranked the topic of money: health, sex and relationships, politics, current events, and pop culture. The survey was conducted in May 2021 and included responses from 2,130 people 18 and older.

Although there is some variation among generations, the trend tracks across all age groups — Americans are most likely to talk about current events with their friends and least likely to bring up finances.

Old Americans say the are less likely to talk about money with friends:

47% of 18-to-34 year olds regularly discuss money

38% of 35-to-54 year olds regularly discuss money

25% of 55-to-74 year olds regularly discuss money

These results underscore a longstanding taboo around discussing personal finances in America. This "society-wide gag rule" exists at varying degrees, Joe Pinsker wrote in an article for The Atlantic, particularly between socioeconomic classes, genders, and cultures.

"Many Americans do have trouble talking about money — but not all of them, not in all situations, and not for the same reasons. In this sense, the 'money taboo' is not one taboo but several, each tailored to a different social context," Pinsker wrote.

Talking about money can lead to better financial outcomes

Money is an uncomfortable, emotionally charged topic for a lot of people. If you feel like you're lacking or not saving as much as you've been told to, there may be embarrassment or shame. If you feel like you're doing well compared to what you know (or assume) of others' situations, there might be a tinge of guilt.

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

https://www.businessinsider.com/data-americans-dont-talk-about-money-with-friends-2021-6

If There Is a Recession, It Has Already Happened

If There Is a Recession, It Has Already Happened

2023 doesn’t look nearly as bleak as consensus economic forecasts and financial news reports suggest.

Bob Diamond, Larry Kantor  Published on February 8, 2023

Arecession in 2023 seemed to be the consensus coming into the new year. That is no surprise, given that last year delivered the highest rate of inflation, the most monetary tightening in four decades, and an inverted yield curve. Strong January economic data—especially the U.S. employment report—may cause many forecasters to change their minds or delay the timing of an expected downturn to later in the year. But if this cycle ends up being designated as a recession, it’s already been underway for many months and will probably be over by the spring.

Recessions are typically generated by sharp declines in interest-rate-sensitive sectors, like housing and manufactured goods, and we have been experiencing that for quite some time.

Housing is clearly in a recession that began almost a year ago. Mortgage rates more than doubled, and home sales have declined for 11 consecutive months—amounting to a cumulative drop of nearly 40 percent. House prices and rents have been falling since last summer.

Consumer spending on goods in real (inflation-adjusted) terms peaked in mid-2021. This followed a surge when many services such as travel and dining at restaurants were off-limits, forcing people to spend a lot more time at home. The decline accelerated toward the end of last year following consumers re-engaging in those services and a huge rise in interest rates.

Retail sales in November and December plunged at a double-digit annual pace, forcing retailers to discount items to eliminate excess inventories, cancel expansion plans, and reduce their workforce.

That is what happens during recessions. The technology sector is also contracting following a COVID-induced boom in the demand for tech services like online shopping, food delivery, streaming services, and remote work and video conferencing. Just like the retail industry, tech companies expanded their capacity to an extent that turned out to be excessive.

Normally, all of that would be enough to crash the economy. But the COVID experience delivered several unusual developments that allowed the economy to hold up unusually well:

A combination of factors—including early retirements, less immigration, people either sick or caring for someone who is, and a dearth of childcare services—produced a massive shortage of labor. Job openings peaked at a record 11.5 million and there are still 11 million openings compared with less than 6 million people unemployed. That has allowed the economy to continue generating strong job growth even as labor demand weakens. As a result, household income isn’t getting hit nearly as hard as it usually does, mitigating the spread from the cyclical sectors to the rest of the economy.

Household and business balance sheets have remained relatively healthy, supported by huge income and wealth gains generated by unprecedented monetary and fiscal stimulus. Households were able to build up a huge stock of excess savings that they are still digging into to support spending. In addition, consumers and businesses did not take on excessive leverage and debt to the degree usually seen in the later stages of economic recoveries.

Energy and other commodity prices have fallen sharply, contrary to the experience during the great inflation of the 1970s and early 80s. The decline in gasoline and natural gas prices has boosted household purchasing power, while sharp drops in lumber and steel prices have helped keep production costs under control.

The path of the economy going forward will be determined largely by the future path of inflation and how central banks respond to it. Fed tightening is working: the cyclical sectors are getting clobbered, and most asset prices—including stock and bond prices—have fallen significantly. Most important, inflation has diminished at an extraordinarily rapid pace.

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

https://www.worth.com/if-there-is-a-recession-it-has-already-happened/

How Money Can Make or Break Your Relationship

How Money Can Make or Break Your Relationship

Pam Krueger   Fri, February 24, 2023

One of the biggest financial decisions we will make in life has nothing to do with money. At least, not for everyone. It’s what billionaire investor Warren Buffett claims to be the most important decision he has ever made: choosing who to marry.

Love and money are often a volatile mix that makes or breaks a relationship, according to a survey from the Institute for Divorce Financial Analysts, with “money issues” being one of the leading causes of divorce. However, research shows that couples who are financially in sync often have stronger, happier, and longer-lasting marriages.

That only happens through equal participation in your household’s finances. Sure, relationships involve compromise and sacrifice. But it need not be disproportionate.

Whether your relationship status is on date number two, recently engaged, on thin ice, or together so long you can’t remember your anniversary, here are a few tips to help you build a healthy relationship while preserving your own financial well-being.

Recognize How Your Money Personalities Differ

Turns out, the old adage “opposites attract” may be more fact than fiction. A paper published in the Journal of Marketing Research found that “tightwads” (people who spend less than they would like) and “spendthrifts” (people who spend more than they would like) usually marry each other.

While personality differences cause some relationship problems, it isn’t the real root of money issues. The source of the problem is remaining steadfast in your own financial habits and behaviors. Merging those differences can reshape each other’s financial behaviors in a positive way. For instance, the spendthrift of the relationship starts saving more for long-term goals. Over time, couples can find themselves in a sort of yin-yang of financial balance, bringing out the best in each other.

Consider a study from researchers at Washington University in St. Louis who found that having a conscientious spouse can boost your salary by $4,000 and increase your chances of getting promoted. In other words, your better half may encourage you to change your behavior and take greater risks to pursue growth opportunities you may not have pursued otherwise.

Understanding your conflicting habits is an important first step. Getting there, however, doesn’t just come naturally.

You Need to Talk About Money

In a relationship, the best way to grow financially isn’t through accounting but rather through communicating. Couples who communicate effectively make better financial decisions, according to a Fidelity Investments study. The couples who say they communicate well are more likely to expect to live a comfortable retirement, rate their household’s financial health as excellent or very good, discuss finances together monthly, and say money is not their greatest relationship challenge.

https://finance.yahoo.com/news/money-break-relationship-171227255.html

Do I Want a Revocable or Irrevocable Living Trust?

Do I Want a Revocable or Irrevocable Living Trust?

Liz Smith Thu, February 23, 2023

As you get older, there are two major things that you should consider. One is retirement. Having the necessary retirement savings and a financial plan will allow you to live the kind of life you want to live during your golden years. The second thing to account for is what will happen to your estate, and estate planning is not just for rich people. And having a strategy in place to pass on your assets will make it smoother for you and your loved ones later in life. A local financial advisor can help you with living trusts and other estate planning issues.

Defining a Revocable Living Trust

At the most basic level, a revocable living trust, also known simply as a revocable trust, is a written document that determines how your assets will be handled after you die. Assets can include real estate, valuable possessions, bank accounts and investments.

As with all living trusts, you create it during your lifetime. (There are also testamentary trusts, which don’t take effect until after you die.) Assets you place in the trust are then transferred to your designated beneficiaries upon your death. What sets a revocable living trust apart is that you can change or cancel the provisions at any time. Hence, the term “revocable” in its name.

Before we go into more detail about why you should or shouldn't get a revocable living trust, there are some terms you should understand. (You may also want to brush up on the basics of how trusts work.) Also, know that the exact laws governing trusts vary by state. The rules in Arizona or Florida won't be same same as those in Oregon or Michigan.

The person who creates a trust is the trust-maker. You will also see the terms trustor and grantor. All three words refer to the same person. Typically, the trust-maker of a revocable living trust is also the trustee. The trustee is the person who handles administration of a trust – such as keeping track of income and tax returns. One thing that you will do in your trust documents is name a successor trustee. This is the person who will manage the trust when you no longer can. The final term to know is beneficiaries. These are the people, organizations or other entities that will receive assets from your trust after your death.

How to Create a Revocable Living Trust

If you think that a revocable living trust is right for you, get ready. You will have to do most of the work upfront so that the dissemination of your estate is easier down the road. Start by taking an inventory of your assets. Then, think about who you want to inherit your assets and who you can assign as trustee. Once the document is drawn up, transfer any property you want covered into the trust.

https://finance.yahoo.com/news/revocable-living-trust-210600597.html

Where Value Ends

Where Value Ends

James Kerr  |  Feb 17, 2023  Humble Dollar

I recently had a revelation about my adult children: When it comes to money, they’re a lot like me—and that’s both a good thing and a bad thing.

I had this revelation while dining with my 25-year-old son at a sports bar over the New Year’s holiday. The food was marginal—it was a sports bar, after all—but the plates came loaded with food. What’s more, the prices were quite reasonable, especially compared to those in Philadelphia and Washington, D.C., where Liam spends the bulk of his time these days.

All of this made him quite happy. He has, he told me, three criteria for what constitutes value while eating out. The quantity of food comes first. Second is whether the cost is reasonable. The quality of the cuisine comes last on his list.

In other words, he could get outstanding food, but it would fail his value test if he didn’t get enough of it. His meal would really be a loser, value wise, if that superb-but-stingy dish also cost too much.

Now, let it be said that Liam is currently a law student and has no money. It could be that his criteria will change when he’s a bigshot lawyer earning lots of money, and can afford the best chefs and restaurants in the land.

But I doubt financial success will change his mindset. Why? Because he’s my son, and his frugal, value-based way of looking at money happens to come from me.

I’ve always been conservative about finances. It’s something I learned early on from my thrifty parents, who never made much money but were somehow able to make ends meet for a hungry family of eight.

Through my folks, I learned the importance of working hard, living simply and below your means, paying the bills on time, being exceedingly careful about debt, and socking away every dollar you can for a time when you might need it. While these time-honored principles will never land me on a list of the world’s richest people, I have been able to achieve a modicum of financial independence here in my early 60s.

All that’s good, I think. And I’m happy to say that my financial conservatism has been passed onto my three adult sons, who are quite responsible with their finances.

But there’s a point where frugality and penny-pinching become excessive, and I fear I’ve spent too many years of my adult life in that realm. It’s the part of me that has hesitated to take a fancy vacation because it will set me back $5,000. Or passing on a chance to have a prime rib dinner at a three-star Michelin restaurant and opting instead for a BYOB hole-in-the-wall because it will save me a hundred bucks.

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

https://humbledollar.com/2023/02/where-value-ends/

What Happens to Your Money if Your Bank Fails?

What Happens to Your Money if Your Bank Fails?

Jenny Rose Spaudo  Wed, February 22, 2023

Many of you might wonder what banks do with your money while it’s sitting in your account. But how many of you know what happens to it when a bank has to close down?

Thankfully, bank failure isn’t something that happens often. According to the Federal Deposit Insurance Corporation (FDIC), there have been 561 total bank failures from 2001 through 2022. The majority took place during the recession from 2008 through 2011, but zero occurred in 2021 and 2022.

However, just because most people’s banks don’t fail doesn’t mean it can’t or won’t happen to you. So what happens to your money in that case? And what can you do to avoid the risks of bank failure? Here’s what the experts have to say.

What Happens When a Bank Fails

The vast majority of banks are insured by the FDIC, although some choose smaller deposit insurers. If an FDIC-insured bank fails, the government-backed agency protects consumers’ money by selling the bank to another financial institution or paying depositors directly up to $250,000.

If your bank is sold, your money is typically available in your new account within two business days and your terms and conditions stay the same, said Levon Galstyan, CPA at Oak View Law Group.

“However, it may take longer if a large number of depositors are affected by the bank’s failure,” he added.

Direct Deposits, Pending Transactions and Bills After a Bank Failure

What if you have direct deposits set up through your current employer? If your bank is acquired, you shouldn’t need to take any action. Your deposits should be redirected automatically to your account at your new bank.

However, if there’s a delay and your accounts aren’t immediately transferred to another bank, you might need to reach out to your employer and have them temporarily redirect your paycheck to another account.

“In any case, it’s a good idea to keep track of your direct deposit information and to update it as necessary if you change banks or if there are any changes to your bank account information,” said Galstyan. “This can help ensure that your direct deposits continue to be credited to the correct account and that you have access to your funds in a timely manner.”

Keep in mind that direct deposits and pending transactions differ during a bank failure.

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

https://finance.yahoo.com/news/happens-money-bank-fails-154603575.html

3 Banking Mistakes to Avoid Like the Plague in 2023

3 Banking Mistakes to Avoid Like the Plague in 2023

Story by Maurie Backman • Jan 29

The money you have in the bank most likely isn't money that landed there because you won the lottery or came upon an unexpected windfall. Rather, it's money you most likely worked for by toiling away at your job, and maybe even a side hustle on top of that.

That's why it's so important to pay close attention to your bank accounts -- and make the time to check up on them. It's also important to avoid these big mistakes -- both in 2023 and in general.

1. Not shopping around for a better interest rate on your money

The interest rate you earn on your savings account or in a CD might vary significantly from one bank to another. Even if your bank seems to be paying a pretty generous amount of interest, it still pays to do some research and see what other banks are paying -- especially these days.

A year or so ago, this advice wouldn't have really held up. Back then, banks were paying such a minimal amount of interest that there was almost no point in putting in the time to earn an extra $0.72 in interest in the course of a year.

But these days, banks are paying a lot more interest. You might easily, for example, snag an interest rate in the 3% range in a high-yield savings account and a rate in the 4% range for a CD. So if your bank is paying 3.2% on regular savings but there's a bank out there paying 3.7%, that's a big difference.

2. Paying overdraft fees in your checking account

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

https://www.msn.com/en-us/money/personalfinance/3-banking-mistakes-to-avoid-like-the-plague-in-2023/ar-AA16RzGy

Three Blind Men and the Elephant

Three Blind Men and the Elephant

Please entertain yourself while being very enlightened with this story that is a parallel to  the Dinar - the Dinar Community and Dinar Intel Providers -  It was very well thought out and put together - Thank you Rhino!

Once there were three blind men who were given the task of describing an elephant. Each was led into an elephant pen by way of a different gate.

The first man approached the elephant from the front and groped around the elephant’s trunk. The second encountered the elephant from the rear and grabbed the tail. The last man walked into a leg and felt around that part of the elephant.

Then the men were led out of the pen and asked to describe the appearance of an elephant. Well, being blind, none of them had ever actually seen an elephant, but each of them did have a very real perspective from which to share; and share they did.

They all agreed that an elephant is round. After all, the trunk, tail, and leg are all basically round in shape. But that is where the similarities ended. Before long, the discussion turned ugly. Each man knew that he was correct. After all, he had touched the elephant! You can’t get much closer to a source that than that.

Two of the men, each armed with unequivocal, undeniable, unimpeachable information, felt compelled to argue their cases. They felt it was their duty to convince all other blind people the “truth” about the elephant. These two men looked for every opportunity to pursue their duty, sharing elephant truths.

And other blind people appreciated their efforts and began to ask questions. Some members of the blind community liked hearing about the “trunk” description. Others thought that the “tail” description was closer to the truth. And these two men enjoyed their new-found popularity greatly.

In order to have more things to talk about, one of these same two men, researched Braille articles about elephants. Unfortunately, some of the articles were written by folks with ulterior motives—ivory hunters, ruthless poachers, who cared only about the monetary value of elephants.

The blind man either didn’t know that some of the articles were intentionally deceptive, or perhaps he didn’t care. After all, the articles did provide talking points, which in turn increased his popularity.

The second argumentative blind man was content simply to argue. The louder he argued the more attention he got. Healthy, informed debate is good and productive. Too bad this one fellow would occasionally resort to name calling, all the while claiming to be the only source of real elephant truth.

Nevertheless, he maintained a substantial following among the blind community and, to a large degree, that was all that mattered; much more so than the elephant.

What about the third blind man? Well, he was out there all the time. He too shared his perspective of the elephant, his own brand of elephant truth. His perspective was limited too, but he shared what he knew to be true.

The difference is, this man stayed true to his mission—sharing truth about elephants. He didn’t rail against the tail perspective. He didn’t throw a tantrum when new trunk information got released. He merely shared what he knew and let members of the blind community do with it what they will.

As you can see, not all the blind men behaved the same way. They did however, have several things in common. They all had great connections (which explains why they were selected as elephant describers in the first place).

These connections afforded them a certain measure of special status within the blind community. Additionally, all three blind men had valid perspectives. After all, their descriptions of the trunk, tail and leg were all accurate.

And let’s not forget the last thing they had in common—they were all blind! Special status or not, they were all members of the blind community. Thus, while all of them had real information regarding a portion of the elephant, none of them understood the whole elephant.

Ultimately, the complete truth about the elephant resides with one Person—the Creator of the elephant. If only the blind men knew this. I believe they did. Perhaps all that talk about the elephant created a temporary blind spot.

Go Elephant!

The 20 Most Important Personal Finance Laws To Live By

The 20 Most Important Personal Finance Laws To Live By

By Ben Carlson   December 7, 2020

You could be the second coming of Warren Buffett as an investor but it won’t matter if you can’t save money and get your personal finances in order first. Saving money will always be more important than investing. As the saying goes, you have to crawl before you can walk. As a professional investor and money manager I constantly get questions from friends and clients about what they should be doing better. Here, I’ve distilled it down to 20 rules:

1. Avoid credit card debt like the plague

The first rule of personal finance is to never carry a credit card balance. Credit card borrowing rates are egregiously high and paying those rates is an easy way to negatively compound your net worth. If you carry credit card debt for a prolonged period of time, you’re not ready to invest your money in the markets.

2. Building credit is important

Likely the biggest expense over your lifetime will be interest costs on your mortgage, car loans and student loans. Having a solid credit score can save you tens or even hundreds of thousands of dollars by lowering your borrowing costs.

3. Income is not the same as savings

There is a huge difference between making a lot of money and becoming wealthy because your net worth is more important than how much money you make. Having a high income does not automatically make you rich; having a low income does not automatically make you poor. All that matters is how much of your income you set aside, not how much you spend.

4. Saving is more important than investing

Pay yourself first is such simple advice, but so few people do this. The best investment decision you can make is setting a high savings rate because it gives you a huge margin of safety in life. You have no control over the level of interest rates, stock market performance or the timing of recessions and bear markets but you can control your savings rate.

5. Live below your means, not within your means

Living within or above your means is how you end up going from paycheck to paycheck without every truly building wealth. The only way to get ahead is by living below your means and setting aside a portion of your income for the future.

6. If you want to understand your priorities look at where you spend money each month

You have to understand your spending habits if you ever wish to gain control of your finances. The goal is to spend money on things that are important to you but cut back everywhere else. And if you pay yourself first you don’t have to worry about budgeting, you just spend whatever’s leftover on the things that truly matter to you.

7. Automate everything

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

https://fortune.com/2020/12/07/personal-finance-advice-credit-card-debt-income-savings-investing-money-taxes-retirement/