How Much Cash To Have Stashed at Home at All Times

How Much Cash To Have Stashed at Home at All Times

Jordan Rosenfeld   Sun, May 21, 2023

Digital payment platforms like Venmo, PayPal and CashApp have changed the way we use and keep physical cash on hand. Most people rarely keep cash on their person, much less at home. However, there are always unexpected events that can lead to a necessity for having a bit of cash on hand, particularly emergencies ranging from catastrophic weather (hurricanes, wildfire), to power outages. If you can’t access your digital currency or your banking systems are down, having cash can allow you to get gas, food, and medicines with ease.

However, just how much cash should you have on hand? We asked experts to weigh in and the answer is: It depends.

Keep Cash to a Minimum

From a security point of view, cash is the most insecure asset you can have. Keeping it to a minimum in the house in the case of fire or theft is a good rule of thumb, said Ryan McCarty, CFP from McCarty Money Matters.

Just how minimum is up for debate among financial experts. Danielle Miura, CFP, the founder and owner of Spark Financials, suggested, “You should keep enough money on hand to get you a couple of gallons of gas, pay for a delivery tip, or to help in unfortunate events,” or around $100-$200 at a time. “Emergency funds should not be held at your home, they should be stored in a high-yield savings account of your choice.”

McCarty framed it more in terms of a ratio: “In terms of amount, don’t let your cash exceed 10% of your overall emergency fund and/or $10,000. You can’t deposit more than $10,000 in cash in a given year without raising red flags with the IRS.”

Enough for Emergency Expenses

Yasmin Purnell, a personal finance expert and founder of The Wallet Moth, a finance website, suggested you keep enough cash on hand in case of an emergency that would require you to access “temporary accommodation, food and drink, gasoline, and medication.” Purnell added, “As a general rule of thumb, having access to $1,000 in cash at home would ensure you can at least pay for immediate expenses in the case of a national emergency.”

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

https://finance.yahoo.com/news/much-cash-keep-home-times-180337690.html

It’s Time to Rethink Love for Cash With Fed Most Likely ‘Done’

It’s Time to Rethink Love for Cash With Fed Most Likely ‘Done’

Vildana Hajric and Peyton Forte    Sat, May 20, 2023

Bloomberg  -- Wall Street investors sitting on a pile of cash could start considering other opportunities, with the Federal Reserve possibly heading for a pause in interest-rate hikes, according to Tom Kennedy, chief investment strategist for global wealth management at J.P. Morgan.

“Cash very rarely outperforms, and it takes a long time for rates to go up, but they can come down really fast,” Kennedy said on the What Goes Up Podcast. He also estimated that his company’s clients are the most overweight cash now than they’ve been in a decade.

Here are some highlights of the conversation, which have been condensed and edited for clarity.

Q: What do you expect from the Fed going forward?

A: The Fed has been on a five-step journey to bring inflation down toward trend. The first step is to tighten financial conditions. The primary tool to do that is to hike rates. And for all of us regular people, that should change your decision.

Step two is those rate hikes impact the most interest-rate-sensitive sectors of the world. When interest rates go up, housing is the part of the economy that tends to respond first. Home-sale prices in America are going down sequentially — not a lot. Home prices went up a lot, they’re coming down a little bit. But it’s evidence now that rates are high enough and people need to change their decisions.

It’s a very short cycle and we have seen the impact there. So step one is raise rates. The Fed did that — 500 basis points. Step two is the most interest-rate-sensitive sectors respond — we’re there. Step three is now those high rates have to impact corporations.

How do rates do that? Higher rates actually limit the ability to borrow money and do capital investment. J.P. Morgan does billions of dollars of capital investment every year. If rates are too high, we can’t borrow and can’t do the capital investment.

If that’s true, we’re taking money or revenue from another business and so on. We’re in that phase. And when revenues in the system start to slow, as we’ve seen in in the S&P 500 as an example — in Q1 revenues relative to year ago are down 4%, give or take.

What do businesses do? They tend to defend their earnings and they can either cut capex more or more likely end up having to do some sort of layoffs — and then finally inflation comes down. So a five step process, I think we’re about halfway there. We should expect to see some level of layoffs in the back half of this year.

Q: You say that your clients are the most overweight cash they’ve been in the last 10 years. I’m wondering — for somebody who is in cash right now, what are you recommending that they actually be doing?

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

https://finance.yahoo.com/news/time-rethink-love-cash-fed-200000526.html

20 Tips To Stay Financially Healthy Without Sacrificing What You Want

20 Tips To Stay Financially Healthy Without Sacrificing What You Want

Cameron Huddleston   Fri, May 19, 2023

If you're trying to live on a budget, you might not feel like you can have the things you want. But you don't have to resign yourself to living a bare-bones existence if your budget is tight -- it's possible to live on a budget and get some of the stuff you want.

Create a Budget That Prioritizes Needs

If your income is limited, make sure it covers your needs first. "Food, shelter, clothing and utilities are needs," said Donna Freedman, author of "Your Playbook For Tough Times. "The rest is just a series of wants."

Creating a budget can help. List the expenses you have to pay to survive. Add them up, and then subtract them from your income. If there's not much left over, you might have to make some sacrifices. Don't think of cutting out wants to cover needs as deprivation, though -- think of it as a smart use of available funds, Freedman said.

Build an Emergency Fund

If you're living on a budget, you might not think you can afford to set aside money each month in an emergency fund. But would you be able to afford an unexpected cost without savings?

"The thing that keeps you out of debt is to find room in your budget to grow your savings," McClary said. You won't be able to build your savings quickly, but if you can stash away a little each month, you can fall back on your emergency fund rather than go into debt when something unexpected happens.

Tackle Your Debt in Smart Ways

When you're struggling with debt, you don't want to just keep paying the minimum balance on what you owe. However, you may not be able to afford much larger payments, so you should look at other smart ways to tackle your debt. A personal loan could consolidate that debt into one set regular monthly payment.

Take Advantage of Tax Breaks

If you're a low-wage worker, take advantage of tax breaks when you file your tax return -- such as the earned income tax credit. To qualify for the 2022 tax year, your income must fall below certain limits: from $16,480 if you're filing as single, head of household or widowed with no children, to $59,187 if you're married filing jointly with three or more children.

If the credit you receive is more than the taxes you owe, the IRS will refund you the difference. That tax refund can be used to help pay off debt, build an emergency fund or cover additional expenses.

Eat at Home

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

https://finance.yahoo.com/news/20-tips-keep-finances-order-173104250.html

8 Ways to Prepare and Protect Your Money

Experts Explain Hyperinflation and 8 Ways to Prepare and Protect Your Money

Imagine a world where money is worth practically nothing, and the costs of goods increase rapidly, doubling and tripling day after day. This situation might sound like a fictitious movie plot, but it has happened many times before in our world. It’s called hyperinflation, and it can wreak economic devastation on people.

Right now, the increasing prices of goods and services across the board have already stretched people’s budgets. That’s just called inflation. But during hyperinflation, things would get dramatically worse. While the odds of this happening in the U.S. are small, there is no better time to get your financial house in order.

Financial planners and experts share their best tips and personal finance advice to prepare for any economic scenario, including hyperinflation.

But First, What is Hyperinflation?

Inflation can signal that an economy is growing and demand for goods and services is rising. However, hyperinflation is not just about high growth in the cost of goods.

“The biggest misconception about hyperinflation is that we’re in it now,” said Mike O’Leary, co-host of early retirement and frugal living podcast Friends on FIRE. “Economists typically define hyperinflation as a month-on-month increase of 50% or more. We’re currently experiencing an uncomfortable but fairly normal inflationary cycle.”

Why Does Hyperinflation Occur?

Hyperinflation is complex. There are many reasons why hyperinflation could occur. Every country’s economy is different and has its own unique path that could lead them down into this nightmare scenario.

However, common underlying causes of hyperinflation include:

a rapid increase in the supply of money without a currency backing such as gold

a rapid rise in the demand for goods and services

In the past, some governments have rapidly increased the money supply by printing money. Hyperinflation occurs when excess money is rapidly added to an economy, such as Brazil’s 1995 hyperinflation. From 1985 to 1994 prices rose by a mind-boggling 184,901,570,954.39%.

Common Hyperinflation Misconceptions

Understanding exactly what hyperinflation is and isn’t so you can spot the actual indicators is important. A common misconception about hyperinflation is that it is something that could quickly occur. Just because the price of clothing, electronics, utilities, or gas dramatically increases does not signify inflation, much less hyperinflation.

“Broad economic indicators can signal the onset of inflation. These include things like the money supply, the consumer price index, and the producer price index. By monitoring these, you can make sure you’re not caught unaware by a sudden surge in prices”, said Michael Ryan, an experienced Financial Planner.

8 Ways to Prepare for Hyperinflation

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

https://financialpilgrimage.com/hyperinflation/

48 Easy Things You Can Do To Live Better and Save Money

48 Easy Things You Can Do To Live Better and Save Money

May 10, 2023   By Terence Loose

If it seems like the world is getting more expensive, that’s because it is.  The cost of consumer goods is rising, according to the Bureau of Labor Statistics. But there are still ways to live well and have inexpensive fun in a higher-priced world. By using these strategies, you can keep more of your paycheck for yourself.

Upgrade Your Savings Account

If you’re not taking advantage of a savings account that gives back to you then you are missing out on free money. Whatever you’re saving for, you should do it in an account with a competitive Annual Percentage Yield (APY).

Milli Bank, a mobile bank that is a division of First National Bank of Omaha (FNBO), offers a 4.50% APY, plus useful tools like Jars to keep money for different financial goals separate. It also has real-time tracking of how your spending affects your savings goals. Not only does the money you deposit keep growing while you’re not looking, you will also learn where you can adjust your spending habits to save more.

Whether you value a competitive Annual Percentage Yield or savings tools that help you reach your goals faster, you should make the most of your savings account.

Buy Off-Season

Just because something is really expensive right now, that doesn’t mean it will be in three months.

“Timing is everything when it comes to shopping,” said Jon Lal, founder and CEO of online coupon and cash-back website BeFrugal. “Time your purchases with the seasonality and popularity of items, and get it in the off-season or when stores have too much inventory.”

That might look like buying next winter’s snow boots from the clearance rack in the spring, for example – it involves planning ahead.

Listen To More Music

Listening to music can actually make you happier, according to research from the University of Missouri. Fortunately, you don’t need to buy a bunch of new tunes. Instead, check out affordable music services like Spotify, where you can listen to tons of amazing music for free. Look up free concerts in your area as well – cities and community organizations often have free concerts in the parks during spring and summer!

Maintain Your Stuff

A bike with rusted gears and a flat tire is not a bike — it’s a space-waster. And a car that never gets its oil changed is a major credit card expense waiting to happen. Remember, a little prevention can save you a major headache — and potentially reduce big expenses down the road.

Learn To Say ‘No’

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

https://www.gobankingrates.com/saving-money/savings-advice/things-you-should-do-to-save-money/?utm_term=incontent_link_6&utm_campaign=1226735&utm_source=yahoo.com&utm_content=9&utm_medium=rss

Mark Cuban Says This Is the No. 1 Thing To Do To Build Wealth

Mark Cuban Says This Is the No. 1 Thing To Do To Build Wealth

Cameron Diiorio   Thu, May 18, 2023

Mark Cuban is an American businessman known for his work as a shark on “Shark Tank” and for his ever-growing portfolio of businesses. He is the owner of the NBA’s Dallas Mavericks and the founder of Cost Plus Drugs, a pharmaceutical company that provides pharmaceutical drugs at a reduced cost to customers in need. Chosen by GOBankingRates as a Top Money Expert, Cuban shares his expertise and provides tips on how to build wealth and begin an investment journey.

What’s the No. 1 thing everyone should do to build wealth?

Have appreciable assets.  Whether it’s a home or a mutual fund — something that can appreciate in value over the long term

What metrics do you look for/what research do you do to determine if a company is a good investment? Are there also non-quantitative factors you look for?

For private companies, it’s a lot of things. Is it a great entrepreneur, is it a strong product, is it differentiated? For public companies, I recommend people focus on investing in funds. Investing in individual stocks has gotten harder over the years because there is so much money chasing stocks.

What advice would you give someone wanting to start investing but unsure where to begin?

Learn as much as you can, but be patient. There are no shortcuts.

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

https://finance.yahoo.com/news/mark-cuban-says-no-1-120007296.html

5 Financial Scams That Target Your Cell Phone

5 Financial Scams That Target Your Cell Phone

Jake Arky   Tue, May 16, 2023

Scams are everywhere these days, from the email phishing to fake websites trying to steal your money, information or both. As scams are increasing and becoming more prevalent, it’s important to be aware of all the ways to stay safe when using your personal technology. The latest target for financial scams is right in your pocket: your cell phone.  “The phone has become the center of targets for scammers now as a scammer can send not only an email, but also a text message where people are much more trusting for some reason which really should not be,” comments Sandy Fliderman, CTO at Industry FinTech.

GOBankingRates reached out to Fliderman, as well as some other security and cyber-tech experts, to learn more about all the scams you might encounter on your phone — and ways to protect yourself.

Smishing

You might be familiar with the term “phishing,” where scammers use seemingly trustworthy contact information to furtively gain access to your data. But now there’s a new type of phishing out in the world known as “smishing.”

“This is a type of phishing scam uses text messages to trick you into clicking on a link or providing your personal information,” says Fliderman. “The text message may appear to be from a legitimate company, such as your bank or credit card company, but it is actually from a scammer.”

After you have uploaded all your information, it goes immediately to the scammer who can take your identity, money, data, or any other private material stored on your phone.

Vishing

A variation on the phishing theme is vishing, where scammers call and attempt to deceive you into giving them your personal information.

“This is a type of phishing scam that uses voice calls to trick you into providing your personal information,” notes Fliderman. “The caller may identify themselves as a representative from a legitimate company, such as your bank or credit card company, but they are actually a scammer.”

As technology is advancing, so too are the scams that can wreak havoc on your cell phone. Scams are upping their game in a variety of ways, including utilizing artificial intelligence.

“Now they are also using AI to fake the voice and make it sound more legitimate since many scammers are from outside the U.S. and have strong accents. The AI gets around this issue,” says Fliderman.

Spoofed Call

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

https://www.yahoo.com/finance/news/5-financial-scams-target-cell-210010518.html

I’m a Financial Advisor: These Are the Worst Money Mistakes I See People Make

I’m a Financial Advisor: These Are the Worst Money Mistakes I See People Make

Heather Taylor   Wed, May 17, 2023

Throughout the course of their careers, financial advisors see many people make a lot of money mistakes. Some of these mistakes, unfortunately, are repeatedly made over and over again. If they continue to make the same money mistakes, it can have a significant impact on their financial health in the short- and long-term.

Which money mistakes are among the most common? GOBankingRates spoke to several financial advisors who shared the worst money mistakes they see people make.

Spending Money They Don’t Have

Let’s start with a money mistake many people make on a repeated basis: spending even though they don’t have any money.

John J. Chichester, Jr. — CFP and founder and CEO of Chichester Financial Group, said rather than plan and save money for future goods, services or trips, people often run up credit card bills for things they decide they need or want right now. As a result, they end up in debt trying to live a lifestyle they cannot afford. While it does require some sacrifice, the more satisfying approach is to make a plan and budget for future purchases.

Carrying and Increasing Bad Debt

A big money mistake Jamilah N. McCluney, financial specialist at Black Wealth Financial, sees people making is carrying and increasing bad debt.

Debt comes in two forms: bad and good. Bad debt is credit cards and personal loans with high interest rates. McCluney said high interest can make it especially difficult to get out of debt and ultimately delays the process of building wealth.

The solution, for those who carry bad debt, is to create a plan to quickly, completely and permanently eliminate it. McCluney recommends using a few strategic approaches like delaying immediate impulse spending and creating a realistic shopping fund.

Pulling Money Out of the Stock Market

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

https://finance.yahoo.com/news/m-financial-advisor-worst-money-110017721.html

How Many Americans Retire With a Million Dollars?

How Many Americans Retire With a Million Dollars?

Rebecca Lake  Wed, May 17, 2023

Saving $1 million (or more) for retirement is a great goal to have. Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you’re looking to be in the minority but aren’t sure how to get started on that savings goal, consider working with a financial advisor.

What Does the Average Retiree Have Saved?

The Federal Reserve’s Survey of Consumer Finances tracks retirement savings data for different age groups in the U.S. According to the most recent survey that was completed in 2019, the average retirement savings by age breaks down like this:

$426,000 for those aged 65 to 74

$357,000 for those aged 75 and older

As you can see, those numbers are well below the $1 million mark. They represent how much the average person 65 and up have saved in retirement accounts, including 401(k) plans and Individual Retirement Accounts (IRAs).

If you look at median figures, the numbers change even more. The median represents the middle number in a group of numbers. The Federal Reserve data shows that 65 to 74-year-olds have a median of $164,000 in their retirement accounts while those 75 and older have $83,000 saved for retirement.

These numbers are from 2019 and may not reflect any retirement gains (or losses) retirees have experienced in the last few years. The next Survey of Consumer Finances is set to be released sometime in 2023 and it may paint a very different picture of retiree savings with the impacts of the COVID-19 pandemic and higher inflation factored in.

What Is the Average Retiree’s Net Worth?

Net worth is a measurement of your assets against your liabilities. A higher net worth indicates that you have more assets than debts and that’s a good thing when it comes to retirement.

In terms of the average retiree’s net worth, the Federal Reserve data puts it at approximately $1.2 million for those aged 65 to 74. The average net worth drops to $958,000 for those aged 75 and older. The data measures a variety of assets and debts, including:

Retirement accounts  Bank account balances   Certificate of deposit accounts  Savings bonds  Stock holdings  Cash value life insurance  Managed assets  Business equity  Unrealized capital gains  Primary mortgage debt  Home equity loans and lines of credit  Student loans  Vehicle loans  Credit cards  Other installment debt

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

https://finance.yahoo.com/news/many-americans-retire-million-dollars-140019814.html

5 Ways To Cash In on Your Spare Change

5 Ways To Cash In on Your Spare Change

Jennifer Taylor   Tue, May 16, 2023

You’ve been collecting spare change for quite some time now, and your piggy bank is about to bust. The time has come to empty it, but first, you want to decide how to put your savings to good use.

After spending months — or even years — collecting these coins, you want to do something meaningful with the money. Here are five ideas to consider as the best use for your spare change.

Save for Holiday Gifts

While the holidays might be the farthest thing from your mind right now, Holly Andrews, loans manager and managing director at KIS Finance, a financial brokerage firm based in the United Kingdom, suggested using your spare change to start saving for this expensive season.

“Putting away your spare change right from the start of the year means you have the maximum amount of time to save for the holidays, and you’ll probably be surprised at just how much this will add up to over 10 or 11 months,” she said. “It may not cover everything, but it will certainly give you a very big head start, and you won’t have to worry about how you’ll afford everything as the holidays get closer.”

Imagine not having to scramble to cover all those holiday expenses this year, because you’ve already planned ahead. Enjoy the feeling!

Add It to Your Debt Repayments

If you’re trying to pay off credit card balances, Andrews said anything you can contribute to the cause will be a great help.

“Keep adding your spare change to a jar and every time you reach $10 or $20 dollars, put it in your bank account and add it to your next credit card payment,” she said. “It might not seem like much at the time, but every dollar that you can add towards debt repayment will benefit you in the long-run.”

In no time at all, you might make a serious dent in your debt repayments.

Start an Emergency Fund

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

https://finance.yahoo.com/news/5-smartest-things-spare-change-130019244.html

If a Family Member Dies, Which Debts Will You Be Responsible For?

If a Family Member Dies, Which Debts Will You Be Responsible For?

Vance Cariaga    May 15, 2023

One thing to know about debt is that it doesn’t go away — even after the death of the person holding it. When someone dies, their debts and assets typically pass to their estate, according to the Consumer Financial Protection Bureau (CFPB). The estate is responsible for paying any unpaid debts.

If there is no money or property left, then under most circumstances the debt will not be paid. As a general rule, no one else — including family members — is required to pay the debts of someone who died, according to the CFPB. That’s not always the case, however.

In some cases, surviving family members might be responsible for paying certain debts of the deceased. This largely depends on the type of debt and where you live. For example, shared debts might fall on the shoulders of survivors in the following scenarios:

You were joint account owners.

You borrowed the money as a co-signer.

You are a surviving spouse and live in a community property state where spouses share responsibility for certain marital debts.

Your state has “necessaries statutes” that make parents and spouses responsible for certain necessary costs such as healthcare.

In community property states, spouses are “considered joint owners of nearly all assets and debts acquired in marriage,” according to a 2022 blog on the Experian website. The vast majority of states use a different “common law” model that allows spouses to own property individually. The type of law your state follows dictates how property is divided upon divorce or death.

Experian lists only nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Three states — California, Nevada and Washington — also have community property law for domestic partnerships that might not involve marriage.

Some states also require medical debt to be paid for by the surviving spouse, according to the Trust & Will website. In addition, you might be responsible for paying taxes owed by the decedent if you are the surviving spouse and you file jointly for the year your spouse died. As Trust & Will noted, surviving spouses can take over tax duties if they don’t want them to be handled by the estate administrator or other representative. But taxes will need to be filed and paid.

When it comes to other debt, such as credit cards, you might not be responsible for paying it even if you were an authorized user.

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

https://finance.yahoo.com/news/family-member-dies-debts-responsible-121502138.html