How To Tell a Friend: I Can’t Afford That

How To Tell a Friend: I Can’t Afford That

 By Kara

I am a formerly broke person who had to tell people for a period of time in my life: “I can’t afford that.” Money can be a really sensitive topic for a lot of people for a variety of reasons. So I think it’s really important that we all develop a way to talk about it without being accusatory, without being defensive, without being negative. Also without straying into toxic positivity.

It can be difficult to navigate financial conversations with loved ones, especially if there is a big financial or lifestyle difference. With rising cost of living and limited spaces to hang in public for free, money is very much a part of all of our friendships today. We have to be able to talk about it. It’s important to be honest about what you can and cannot afford, but you don’t want to hurt anyone’s feelings.

How to tell a friend: I can't afford that

You don’t owe anyone an explanation

First and foremost, it’s important to remember that your individual financial situation is your individual financial situation. You don’t owe anyone an explanation about why you can or can’t afford anything. You should never feel badly about setting financial boundaries in your life. If you need to hear someone say it, I’m saying it! It’s not only okay, but important to prioritize your own financial stability for your own future. It’s really important to make decisions that align with your lifestyle values.

Be clear and direct

So when you’re telling a friend or a family member that you can’t afford something, be clear and be direct. Don’t beat around the bush. Don’t be awkward about it. Because that just brings a tinge of awkwardness to everybody.

Start by thanking them for the invitation and acknowledging that you would love to attend. Then follow it up by saying, “Unfortunately, right now is just not the time.” Try to avoid using apologetic or overly apologetic language like, “I’m so sorry, I can’t do that. I’m such an asshole.” Don’t do that.

That brings up two really weird things. One, now you are making them emotionally responsible for you. They have to assure you, no, you’re not an asshole. Don’t worry about it, right? So that’s more labor, you’re asking for them. Two, it can come across as defensive because they invited you out. Now that’s kind of a weird dynamic. Instead, try to stress in the conversation that you love this person, you want to see this person and offer up a suggestion that works for you instead.

Give an alternative, budget situation

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

https://bravelygo.co/how-to-tell-a-friend-i-cant-afford-that/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-tell-a-friend-i-cant-afford-that

https://www.youtube.com/watch?v=uljPy15kotY

Begging to Differ

Begging to Differ

Jonathan Clements  |  Jun 10, 2023 Humble Dollar

DON’T ASSUME YOUR PATH up the mountain is one that everybody else should also follow.

I don’t budget, I earmark 80% of my retirement savings for stocks and I’m currently well above that level, I don’t have a separate emergency fund, I expect to live comfortably in retirement on half of what I currently earn, I plan to delay Social Security until age 70 and my stock market money is entirely in index funds, with roughly half allocated to foreign shares.

Should you blindly mimic what I do? Absolutely not.

It’s called personal finance for a reason: Everyone’s approach to managing money should reflect their personal goals, circumstances and emotional makeup. Yes, it’s interesting to get a glimpse into the financial life of others—a glimpse that’s regularly offered by HumbleDollar’s articles and by readers’ comments. Those glimpses give us a chance to reassess what we do and why, and we might pick up some useful ideas that’ll help us to better manage our money.

But make no mistake: When it comes to handling money, nobody has a monopoly on truth. Yes, logic and evidence favor certain courses of action, such as buying stocks if you have a long time horizon, holding down investment costs, diversifying, indexing, saving diligently, insuring against big financial risks and so on. But in the end, each of us has to tailor such advice to our individual financial life.

That’s why I grow concerned whenever I see folks insisting that their approach is not just right for them, but right for everybody else. Where does that unwavering conviction come from? Often, it seems to rest on one or more of the following six arguments:

1. “You should do this—because it’s what I did.” I see this phenomenon all the time. Those who claimed Social Security early insist it’s wrong to delay—and those who claimed late believe it’s wrong to claim early. Ditto for those who do or don’t budget, or do or don’t own individual stocks, or do or don’t have long-term-care insurance.

I view this as a form of anchoring. Many folks find it hard to set aside what they’ve done or currently do, and imagine that a different path might work just fine for others. I don’t budget and never have. But if others find it useful or comforting, what’s the harm? I avoid actively managed funds and individual stocks. But if others actively manage their portfolio, their returns are okay and it makes them more tenacious investors, who am I to object?

Want to know what really impresses me?

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

https://humbledollar.com/2023/06/begging-to-differ/

‘Quit Saving Your Money’

‘Quit Saving Your Money’

Bethan Moorcraft   Thu, June 8, 2023

Financial guru Grant Cardone says there’s only 1 thing that will bring you true wealth — it's not your job or being cheap. Here's what it is and ways to do it

Real estate investment guru Grant Cardone says Americans should “quit saving” if they want to build true wealth.  Cardone, who goes by the nickname Uncle G, recently shared his two cents on Twitter: “That full-time job won’t bring you wealth. Saving, saving, saving won’t bring you wealth. Overspending won’t bring you wealth. Being scared won’t bring you wealth.”

There’s only one thing that will help you build real wealth “beyond millions of dollars,” according to Cardone. He says you need to invest.

“Quit saving your money,” Cardone says in a video he tweeted June 5. “That’s what my parents did. They saved money. They didn’t invest their money correctly. They didn’t take money [and] leverage it into real investments because they were terrified of losing their money.”

Cardone claims there are “asset classes out there where you can never lose your money” — such as real estate that generates cash flow and appreciates in value over time.

That advice comes as no surprise given that Cardone built a real estate empire — which he says contains almost eight thousand units of cash-flow-producing real estate, worth over $4 billion — from scratch.

Interested in emulating Cardone’s success? Here are three ways you can start investing in real estate without needing heaps of cash to get started.

Real Estate Investment Trusts

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

https://finance.yahoo.com/news/quit-saving-money-financial-guru-143000488.html

Dave Ramsey's Top 10 Money Traps To Avoid

Dave Ramsey Just Shared His Top 10 Money Traps To Avoid — and You’ve Probably Fallen for Most of Them

Nicole Spector Thu, June 8, 2023

Personal finance guru Dave Ramsey is famous for his no-nonsense, tough-love insights. Not everyone agrees with him, but many of his hard-and-fast rules exist for good reason: to help people avoid losing or wasting money that could serve them in retirement. Are you paying heed to his wisdom? Here’s a look at 10 money traps to avoid, according to Dave Ramsey.

Payday Loans

Payday loans are advances on your next paycheck that people may take out when they’re running low on cash and can’t wait — or don’t want to wait until said paycheck arrives. It’s best to avoid these loans, convenient though they may be.

“Payday loans are a slippery slope into a debt-building cycle that isn’t easy to escape,” reads a post on the Ramsey Solutions website.

Whole Life Insurance

Whole-life insurance is the most common type of permanent life insurance, according to the Insurance Information Institute. It remains in effect as long as the insured individual continues paying their premiums, offering a specified death benefit and dividends on the savings portion of the policy. And according to Dave Ramsey, it’s terrible.

“We don’t want you to get ripped off, we do want to see your family well protected, and we for sure want your financial future to include wealth and the chance to become self-insured,” reads Ramsey Solutions blog post. “The only kind of policy that lets you hit all those goals is term life. But whole life misses the mark in every department.”

Debt Consolidation Loans

When steeped in high interest debt, consumers may opt for a debt consolidation loan. With this maneuver, a person combines several high-interest debts into one loan with a fixed monthly payment. Though they have proven to be helpful for many, Ramsey is staunchly against them.

In response to a reader of New Castle News in 2022, Ramsey shared the following:

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

https://finance.yahoo.com/news/dave-ramsey-just-shared-top-114744255.html

13 Things You Should Never Put in Your Will

13 Things You Should Never Put in Your Will

Jordan Rosenfeld  Wed, June 7, 2023

While nobody likes to think about their own end date, putting together a will and related legal documents makes it more likely that your loved ones will have the smoothest process handling your estate after death and that your wishes will be followed.

Writing a will is not as simple as just slapping together a list of desires, however; there are some things you should not put in your will. Estate planning experts explain which ones.

Joint Accounts

You don’t need to pass joint accounts or accounts with beneficiaries’ names already on them through your will because including them can lead to confusion and open the estate to potential litigation, according to Stuart Schoenfeld, a partner in the trusts and estates practice of Capell Barnett Matalon & Schoenfeld LLP in New York.

Schoenfeld said, “You don’t need to include assets like these that go directly to a beneficiary in your will because they pass automatically to the designee upon your death.”

Personal and Private Wishes

Wills should mostly be about transitioning assets from your estate to loved ones and beneficiaries, Schoenfeld explained.

“Wills are not the place to make a statement about family relations or to use as a platform to address personal issues from beyond the grave,” he said. “Why not use your will to settle old scores? Because your will is a public document, and people you don’t intend can see it.”

Business Interests for an Active Business

Don’t transfer business interests in your will, particularly a running business, Schoenfeld said, because it will be very difficult for that business to function while your estate is being settled.

He said, “Better to think in advance about an effective succession/estate plan to transition your business or your business interests.”

Life Insurance

Another thing to leave out of a will is your life insurance.

“If you are a high-net-worth individual with a taxable estate, it would not be wise to pass your life insurance policy through your will because you could forfeit up to half of it or a large percentage of it to estate taxes,” Schoenfeld said. “Pass on your life insurance policies through a life insurance trust.”

Secret or Secure Information

Wills go through a court procedure called probate, which involves a will being admitted into a court of law — a public process. That means people can access the court’s records, find the will and view the contents.

Asher Rubinstein — a trusts and estates, asset protection and tax law attorney with Gallet Dreyer & Berkey LLP in New York — said, “Therefore, wills should not include confidential information such as bank account numbers, access codes, PINs, passwords, keys to crypto, etc.”

Significant Assets Left to One’s Heirs

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

https://finance.yahoo.com/news/13-things-never-put-175937710.html

National Humiliation Is Just Another Tuesday Afternoon In America

National Humiliation Is Just Another Tuesday Afternoon In America

June 6, 2023  By Simon Black  Sovereign Man

When Sextus Julius Africanus was born in the city of Jerusalem around the year 160 AD, the Roman Empire was still near the peak of its power.  By the time Sextus was born, Antoninus Pius had ruled the empire with a steady hand for more than twenty years; his reign was peaceful and highly effective, and he left behind a strong economy and vast public treasury.

The following year in 161 AD, when Sextus was still just a baby, Marcus Aurelius became emperor and ruled wisely for nineteen years as an assiduous, diligent philosopher king.

Sextus was a young man just starting to make his way in the world when Marcus Aurelius passed away in 180 AD. And this is when things really started to unravel in Rome.

Marcus Aurelius was followed by his complete dirt bag of a son, Commodus (who was probably every bit as evil and insane as he was portrayed in the film Gladiator).

Commodus ruled brutally for twelve years until his assassination in 192 AD, after which several more emperors rose to power and were assassinated within a matter of months.

Finally Septimus Severus rose to power in 193 AD and ruled for 18 years; he nearly bankrupted the empire with his constant warfare and expansion of the state, and he heavily debased the denarius coin from 81.5% silver to 54% silver.

Septimus Severus was succeeded by his son Caracalla, whose first order of business was to murder his brother… and then further debase the currency and bankrupt the treasury.

Caracalla was assassinated after six years and succeeded by Macrinus, who himself was overthrown and executed barely a year after becoming emperor.

Macrinus was succeeded by the sexually tormented adolescent Elagabalus, who is purported to have offered half of the empire to any doctor who could turn him into a woman.

Elagabalus was slain after four years in power, then succeeded by his cousin Severus Alexander. His 13-year reign was marked by a massive border crisis and further debasement of the currency; but most notably, during the reign of Severus Alexander, his imperial troops began running wild outside of the law and began indiscriminately assassinating anyone they wanted.

By the time Severus Alexander himself was assassinated in 235 AD, the young baby boy I told you about in the beginning of this letter-- Sextus Julius Africanus-- was 75 years old.

Sextus was born at the end of the Roman Empire’s period of dominance. And throughout the course of his life, he witnessed and lived through Rome’s gradual-- then sudden-- decline.

As a child and young adult, Sextus lived in a Rome that was powerful and unparalleled, and he enjoyed an incredible era of peace and prosperity.

By the time he entered adulthood, the cracks were already visible. Inflation grew rampant. The economy began stagnating. Multiple pandemics had taken place. The barbarians started flooding across the border. The treasury was depleted. And the imperial government became completely dysfunctional, incapable of even basic administration or responsibility.

Sextus Julius Africanus experienced all of this decline first hand. It must have been exasperating. And frankly, many of us today can probably empathize.

When I started Sovereign Man back in 2009, I had a very clear thesis in mind: the United States (along with the West in general) is in decline.

Back then that was a controversial statement to make. Today it’s painfully obvious.

What’s more, the decline seems to be accelerating, conforming to the mathematic model of logarithmic decay; it’s similar to how Hemingway described going bankrupt in The Sun Also Rises: “gradually, then suddenly.”

And we can see it just about everywhere.

From a fiscal perspective, the US is a complete train wreck. The national debt is about to pass $32 trillion as I write this, equivalent to roughly 122% of GDP-- a record high.

On top of that, though, the government continues to overspend by trillions of dollars each year, making the debt problem even worse. And Social Security’s trust funds are set to run out of money within ten years.

The currency is also in the dumps. The Federal Reserve debased the US dollar as heavily as the Romans debased their own currency, causing rampant inflation.

Plus, between the Fed’s incompetence and the US government’s irresponsible spending, the dollar is on the verge of losing its status as the world’s dominant reserve currency.

Socially we can see the country coming apart as well. Socialism is on the rise. Cancel culture and censorship reign. Sociopolitical divisions are high.

The education system is crumbling… and the teachers’ unions couldn’t possibly care less. Homeless and crime rates are appalling. Public trust levels are at record lows.

Many politicians at the highest levels are either stupid, incompetent, corrupt, dangerously narcissistic, medically unfit, or all of the above. And the most recent debt ceiling fiasco shows their ineptitude to even be able to negotiate a timely solution among themselves. 

Throughout all of this chaos, tensions with Russia, China, and Iran are on the rise… while the US military is being weakened by woke politics, fiscal mismanagement, and terrible leadership.

It seems like every few days there’s another major embarrassment… from a guy who never met a staircase he can’t fall up, to the humiliating withdrawal from Afghanistan, to a major crisis in the US banking system, to ‘mostly peaceful’ protests, to the debt ceiling soap opera.

And every one of these emboldens America’s adversaries.

Many of us are old enough to remember a time when such things were unthinkable, when America’s reputation for strength was unquestionable.

But these days, a major, national humiliation is just another Tuesday afternoon in the Land of the Free.

It’s exasperating. And Sextus Julius Africanus probably felt the same way, shaking his head in disbelief as he lived through the decline.

To be clear, even despite America’s gargantuan challenges, it is still possible to solve these problems and navigate out of this mess. And the basic ideas are quite simple: Capitalism. Productivity. Fiscal restraint. Self-reliance.

But the people in charge don’t seem to have a clue what they’re doing. And this is why it makes so much sense to have a Plan B.

To your freedom,  Simon Black, Founder  Sovereign Man

https://www.sovereignman.com/trends/national-humiliation-is-just-another-tuesday-afternoon-in-america-147644/

Cash Envelope System: How Does This Budgeting Method Work?

Cash Envelope System: How Does This Budgeting Method Work?

by Todd Kunsman

If you find yourself struggling to budget and save money, there is a technique you might want to try: the cash envelope system.  While there are many new personal finance platforms and apps that can help, sometimes it can be a bit overwhelming.   And don’t get me wrong, I am a fan of various budgeting apps that exist today.  But sometimes it’s better to go back to basics and remove the digital technology out of your life.

If you are interested in a more “physical” version of budgeting, then the cash envelope system might be for you. Below, you’ll learn everything you need to know about this budgeting method.

What Is The Cash Envelope System?

The cash envelope system is a systematic personal budgeting method. It relies on being able to use cash for almost all fixed and variable purchases throughout the month. So if you haven’t got the cash left, you can’t go splurging on luxury buys.

The envelope system tries to control impulse buying and help you live within your means. And it works by having the saver (that’s you!) plan each and every purchase over the next thirty days.

Advantages of The Cash Envelope System

There are several benefits of using the cash envelope system; not least being that the method can enable you to get into a good budgeting routine with your money.

It turns out that only 32% of US families currently maintain a budget which can be a risky way of living.

Are you the type to wonder where exactly your money goes each month? Using the envelope method means you are tracking your spending (down to the last cent!) and will highlight exactly where you need to cut your spending or budget more for.

Plus, if you’re prone to overspending, the cash envelope system can prevent it altogether. If you don’t have the cash in your hands; you can’t buy — it’s super simple.

Disadvantages of The Cash Envelope System

Unfortunately, this budgeting method means you will miss out on those all important credit card bonuses, like travel points and rewards. And while they might not have an exact cash value, credit card rewards can be pretty lucrative!

The other negative factor of the cash envelope method is that holding and carrying a lot of cash can make you feel unsafe. Of course, any of us can be vulnerable to theft in a range of situations, but you may feel uncomfortable pulling large amounts from the ATM or using a credit card.

Steps To Starting The Cash Envelope System

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

https://investedwallet.com/cash-envelope-system/

The Budget Calendar: What Is It And Do You Need One?

The Budget Calendar: What Is It And Do You Need One?

August 17, 2021 by Todd Kunsman

One of the first and easiest steps you can take with your finances is to create a personal budget calendar.  It’s an effective way to understand what your income and expenses look like, without having to try and remember off the top of your head.  Typically, you think you’ll remember everything and can manage your money without writing things down.

I certainly thought the same thing, but I quickly realized how I was mishandling everything when I was more tactical.  So what are the benefits of creating a budget calendar? How can you get started with one and maintain it for the foreseeable future? Jump in below to learn more!

What Is a Budget Calendar?

A budget calendar is similar to your everyday calendar, except it tracks the dates of your income and expenses. For example, you’ll note which days your wage comes in, the day each bill leaves your account and when subscriptions are paid, etc.

Every good budget calendar will include:

Your income – How much you are earning from each paycheck or what you make if you work for yourself.

Current expenses – Typically, your bills will fall on similar days each month. Planning these out on a calendar gives you the big picture.

Current savings – How you plan on scheduling money to save in your emergency fund or other investments.

You can certainly go a bit deeper, but at a high-level, those three areas will get you much farther with your finances than people who do not budget at all.

But this budget calendar idea exists to enable you to take a more careful approach towards money, to build a simple family budget, and plan a budget that fits your lifestyle.

The Benefits of A Budget Calendar

Can you believe that just 30% of U.S. households have a long-term financial plan? Budgeting allows us to keep track of our income, save money better, and ensure we are spending it where we have intended to.

Plus, if you’re looking to escape paycheck to paycheck living then having a budget is key.

Luckily, there’s not just one way to budget. Finding a budgeting style that works for you is important, as it will help you stick to your money intentions and reach your goals.

Opting for a budget calendar should help you:

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

https://investedwallet.com/budget-calendar/

Budgeting 101: The Basic Tips to Improve Your Finances

Budgeting 101: The Basic Tips to Improve Your Finances

August 8, 2021 by Todd Kunsman

One of the best ways to start improving your finances and master money management is through the basics: budgeting 101.  While it might not be the most fun to calculate your numbers and figure out how to spend and save money — it’s also critical early on in your journey.

By understanding and creating a personalized budget, you take control of your money and create a roadmap that will help you succeed now and in the future.

But what are the budgeting basics? How do you get started and are there different types of budget styles?

Don’t worry, I’ll cover everything you need to know in this budgeting 101 guide below.

What Is A Budget?

A budget is a plan that helps you manage your income, current expenses, and helps you save for your goals over set periods of time. With a budget, you have a plan for your spending and understand where your financial health currently stands.

Some people prefer to create a budget via writing it down on paper, while others like using an Excel spreadsheet or a personal finance app or software. For example, creating a budget calendar is a solid option.

Who should be budgeting?

Budgeting is an important tool for every person who’s earning and spending money (so pretty much everyone). It’s an activity that helps you remain in control of your money, stay on track with your goals and keep away from financial stress.

And understanding budgeting 101 will help you improve your relationship with money and offer you an accurate picture of your financial life. It’s a tool to help you get out of debt, save for your future and be prepared for any unexpected challenges.

Often people assume they know their current finances and how much they are spending. I also felt that way a few years back. However, when I really sat down and looked at the numbers, I was way off and surprised at the amount of wasteful spending I was engaged in.

Budgeting for Beginners Basics

If you’re a budgeting beginner, here are some of the steps to help you get started in the world of budgeting. Naturally, you can build a more complicated and in-depth budget — but keeping it simple can also improve your finances significantly.

1. Calculate monthly income

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

https://investedwallet.com/budgeting-101-tips/

11 Awesome Benefits of Budgeting Your Money

11 Awesome Benefits of Budgeting Your Money

March 24, 2021 by Todd Kunsman

If you want to start managing your money and get out of a financial rut, then you have to understand the benefits of budgeting.  For some people, creating and managing a budget is not that fun and can be quite tedious. Additionally, there is a stigma that having a budget means being extremely frugal and that you cannot have fun or spend any money on yourself.

Although you might need to live a more frugal style pending your current financial situation, budgeting is not about limiting your life completely or making you miserable.

What a personal budget does is show you where to allocate your money and how to distribute your income more effectively.

But if you are still skeptical and need more convincing, I put together a list of 11 awesome benefits of budgeting your money below. Let’s dive in!

Is Budgeting Hard?

For some folks, the mere mention of a budget conjures up images of mile-long spreadsheets, complex calculations, and tight spending restrictions that suck all the fun out of life. If that sounds like you, I have some good news: budgeting doesn’t have to be hard.

Making a budget isn’t complicated: you don’t need to be a financial expert, perform any fancy calculations, or give up everything you enjoy. You do have to be willing to put in the time to understand your expenses, make a realistic plan for your spending, and then stick to it. With a little work, anyone can do it — even you.

Benefits of Budgeting

The hardest part of budgeting is following the plan you’ve created. When the temptation to spend comes calling, it helps to understand and appreciate the benefits of budgeting your money. I’ve made a list of eleven budgeting benefits to convince you to give budgeting a try and to help give you the motivation to follow your plan once you’ve made it.

1. Puts You In Control of Your Money

Several years ago a friend told me, “Either you control your money, or it will control you.”  That’s one of the best pieces of advice I’ve ever gotten. Budgeting doesn’t restrict your spending.

Instead, it puts you in control of your money by helping you spend intentionally instead of wondering where all your money is going or why you never seem to have enough.

2. You Become Aware of Your Spending Habits

 Budgeting forces you to be aware of your spending habits. You may be shocked to find out how much you’ve been spending on lunches with co-workers, trips to Home Goods, coffee subscription boxes, or any number of other things.

Once you know where your money is going, you can use your budget to help you cut bad habits and form better ones.

3. Helps you set priorities

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

https://investedwallet.com/benefits-of-budgeting/

America Can't Even Negotiate With Itself Anymore...

America Can't Even Negotiate With Itself Anymore...

Notes From the Field By Simon Black  June 5, 2023

This is really starting to look a lot like ancient Rome

In the late summer of 408 AD, a barbarian army under the command of Alaric, king of the Visigoths, set out on a leisurely march across the Italian countryside towards the city of Rome… so that he could burn it to the ground.

Alaric had been promised money by the Roman government in exchange for a military alliance between Rome and the Visigoths; but just before the money was supposed to have been paid, the Romans canceled the deal.

Talk about a bonehead move.

Alaric was a decorated warrior at the head of a powerful army. And the Western Roman Empire, by comparison, was barely even functional anymore. The government was bankrupt, the currency was a joke, the economy was in the dumps, the military was weak, the borders were nonexistent… and there was no sense of unity in Roman society.

So it clearly made no sense to turn Alaric into an enemy. But then again, the emperor in the west was a weak, incompetent stooge named Honorius, whose legacy is so horrendous that he consistently ranks among the worst emperors in Roman history. And there’s some pretty stiff competition on that list.

Alaric, to his credit, actually tried to avoid conflict with the Romans and work out a resolution. But Honorius refused to negotiate… so Alaric gathered his troops and marched towards Rome.

Now, at that point in history, the city of Rome itself wasn’t even the capital of the western empire anymore; it had been moved to Milan, and then to Ravenna. But Rome was still among the largest and most prominent cities in the world, even in the early fifth century. And Alaric knew that sacking it would send shockwaves across the empire.

Alaric and his barbarian army were practically unopposed on their way to Rome; according to the ancient historian Zosimus, in fact, their march was so leisurely it was as if they were “at some festival” rather than heading to war.

They arrived in the fall of 408 AD and encircled the city, cutting it off from any resupply… meaning it would only be a matter of time before residents all starved to death and the Visigoths plundered the city.

The destruction of Rome was an unthinkable cataclysm. And so, with the barbarians literally at the gates, Honorius finally agreed to negotiate a deal. And it was a costly one-- many times more expensive than their original agreement.

That should have been the end of the story… and yet Honorius found a way to screw it all up again.

Early the following year in 409 AD, Honorius tried to double-cross Alaric by sending troops to ambush the Visigoths. The attack failed, and Alaric was infuriated by this violation of their treaty.

Again, to his credit, Alaric tried to negotiate a peaceful solution, and he asked for lands, titles, and tribute as compensation.

But Honorius-- who at that point was a highly experienced diplomat-- instead sent an insulting letter back to Alaric. Talks quickly broke down, and Alaric turned back towards Rome in late 409.

Once again-- and only after the barbarians were at the gate-- the government finally agreed to Alaric’s demands… and the destruction of Rome was narrowly avoided for a second time.

Yet then Honorius managed to screw it up for the third time in a row.

The following year, in 410 AD, Alaric and Honorius were set to meet near the capital city of Ravenna to discuss peace and cooperation.

But Alaric and his men were ambushed just prior to the meeting by Roman troops. He survived. And, completely fed up with Honorius, Alaric took his troops back to Rome for the third (and final) time in two years.

The Visigoths entered the city on August 24, 410 AD through Rome’s Salarian Gate, about 3 kilometers north of the Colosseum.

Alaric and his men spent three full days sacking the city. Almost everything of value was stolen or destroyed. Cultural treasures were defaced, monuments were ripped down, buildings were burned to the ground, and the city’s residents were killed or enslaved.

It was difficult to not think of this story when news broke about the debt ceiling ‘resolution’ late last week, because the two situations share many parallels.

The sack of Rome in 410 AD was a crisis of their own making. Decades of terrible strategic and financial decisions had reduced Rome to a shell of its former greatness, weakening the western empire considerably. Their enemies noticed.

The United States is in a similar position; decades of terrible decisions have led to a $31+ trillion national debt that grows by leaps and bounds every single year. Through its completely irresponsible addiction to spending, the government has weakened the country considerably… and America’s adversaries have noticed.

In the early 400s, Rome was led by a complete buffoon who, despite all of his years in government service, engineered a crisis by refusing to negotiate or to take an obvious risk seriously… only to ultimately cave and narrowly avoid an earth-shattering catastrophe.

This is a clear similarity to the debt ceiling fiasco that we saw play out over the last few months. The risk was obvious… and yet the guy who shakes hands with thin air refused to negotiate until the last minute, just barely averting disaster.

Waiting until the last minute to just barely avoid a major catastrophe is not a viable problem solving strategy. Neither is kicking the can down the road.

Yet every few years the debt ceiling becomes a major crisis. They consistently wait until the last minute, hastily negotiate a short-term patch, and kick the can down the road for another few years while they take the country even deeper into debt, until the whole cycle begins anew.

The Romans tried to do the same thing with the Visigoths: negotiate a terrible, last minute solution. Make the problem worse. Repeat.

This approach didn’t work in the early 400s, and it won’t work today. As the sack of Rome demonstrated, when you’re constantly taking things to the brink of disaster, eventually someone is going to go too far.

A worldwide financial meltdown triggered by the United States defaulting on its debt was very narrowly avoided. This time. Who’s to say that when this comes up again in 2025 that some idiot politician won’t take things too far?

The really ridiculous thing about the debt ceiling crisis was that it shows the inability of the US government to negotiate responsibly… with itself! This was literally a case of American politicians trying to resolve their differences with other American politicians.

How is this going to work out when the people on the other side of the table aren’t from another US political party… but from the Chinese Communist Party?

It’s worth thinking about given how the specter of conflict continues rising; just over the weekend, a Chinese naval vessel intentionally maneuvered to within 150 meters of US and Canadian ships in the Taiwan Strait. And this was just one of many obvious escalations in recent months.

The last point worth mentioning is that the sack of Rome illustrates how dangerous complacency can be.

When Alaric showed up in 408 AD for the first time, the city’s destruction was avoided. When he showed up the second time in 409 AD, the city’s destruction was avoided again.

So you can probably imagine that when Alaric and his barbarian army were on the way to Rome for the third time in 410 AD, the city’s residents probably felt confident that their leaders would once again figure out a last minute solution.

That misplaced confidence in their incompetent leaders cost Romans dearly.

It’s worth remembering that you don’t have to bet everything you’ve worked to achieve on today’s pitiful leadership; there are plenty of steps you can take to reduce your exposure to the risks that they’ve created (and continue to ignore).

You can, for example, hold a portion of your savings in an alternative asset like gold, which has a 5,000 year history of holding its value, especially in times of crisis.

You can set up more robust structures to help you save for retirement… which makes a lot of sense given the looming insolvency of Social Security’s major trust funds.

And you can even establish legal residency or citizenship in a foreign country, giving you a place to go in the event that you ever need to leave.

Some of these options take time to establish. And you don’t want to make the same historical mistake of waiting until the last minute-- just before a crisis-- to start taking action.

To your freedom,  Simon Black, Founder  Sovereign Man

https://www.sovereignman.com/trends/this-is-really-starting-to-look-a-lot-like-ancient-rome-147625/