12 Expenses That Drain Your Savings Without You Realizing It

12 Expenses That Drain Your Savings Without You Realizing It

Nicole Spector  Tue, September 26, 2023

Building up a nest egg can be terribly challenging in a society where the majority is forced to live paycheck to paycheck. But we all need to save for emergency expenses, as well as for our retirement. Sometimes, despite our best efforts, we get set back on our savings journey. This can happen without us even being completely aware of it.

Here’s a look at 12 expenses that can drain your savings without you realizing it and how to take back control so that you can keep building up your nest egg.

Utility Bills — Especially When Not Using Energy-Efficient Devices

Utility bills can not only eat into your spending money, they can eat into your savings. One way to lessen the damage is to use energy-efficient devices in your home.

“I recently reviewed my utility spending and was shocked to discover that I could save around $175 each year by making a few simple adjustments, like using LED lights and switching to a programmable thermostat that reduces heating during the night,” said Nathan Brunner, CEO at Salarship.

Data Usage

We’re pretty much all addicted to our smartphones, which means we’re consuming tons of pricey data. Have you ever looked into how much you’re spending on data usage per month? You could be nibbling away at your savings without even knowing it.

“Excessive data usage is an underrated expense that drains your funds without you even realizing it,” said Akash Karia, a keynote speaker, high performance coach and author. “It’s often overlooked, but when added together, it ends up being a substantial amount and a significant expense, especially if you are not keeping track of your usage.”

You can effectively lower data usage by limiting streaming and online gaming and being disciplined with data-sucking apps.

“Cut down on data devouring apps like Instagram, TikTok and Netflix, and whenever you have the chance, make sure you connect to a Wi-Fi network,” Karia said.

Subscription Services

Ours is a nation obsessed with subscription services. Eighty-three percent of consumers use at least one subscription based video-on-demand service, as of September 2023, according to Statista — up 10 percentage points in five years. If you’re using a few of these services, you may be slowly but surely depleting your savings.

“Individually, they may cost only $10 to $20 per month, but collectively, you might be shelling out hundreds annually without realizing it,” said Ankit Prakash, founder at Sprout24. “Software-as-a-Service (SaaS) is a silent drain on [your] funds.”

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

https://news.yahoo.com/finance/news/12-expenses-drain-savings-without-130034891.html

8 Things You Must Do Every Time You Save $500

8 Things You Must Do Every Time You Save $500

Jordan Rosenfeld    Mon, September 25, 2023

It feels good to save money, to see those numbers climbing higher and higher in your savings account without necessarily being earmarked for anything in particular.

But money sitting in a savings account is not the best way to build wealth or contribute to a healthy financial future. Instead, experts recommend the following 8 things to do each time you save an additional $500.

Adopt a Pay/Invest/Borrow Strategy

Noah Gomez, a financial consultant and founder at Thick Credit, recommended a pay/invest/borrow strategy.

“With $500 in savings, you can make an additional payment on outstanding debt (if any), invest a portion in stocks or your retirement fund, and place the remaining portion in a certificate of deposit (CD) that you can use as collateral to quickly take out a low-rate emergency loan.”

Put the First $500 Toward an Emergency Fund

“If it’s the first $500 you’ve ever saved, you should put it into a checking or savings account and keep doing that until you’ve saved enough for an emergency fund of 6 months living expenses,” according to Joe Pelusi, a financial advisor with Green Investment Strategies.

“Aspiration has some good savings accounts where your money earns a relatively high rate of interest (up to 3% in their savings account) and isn’t loaned out to fossil fuel companies causing the climate crisis.”

Open a High-Interest Savings Account

https://finance.yahoo.com/news/8-things-must-every-time-210009831.html

Why Real Assets Are a Safe Haven Against Inflation

Why Real Assets Are a Safe Haven Against Inflation

Notes From The Field By Simon Black  September 25, 2023

The first time I ever visited Zimbabwe in late 2010, the country was barely one year removed from the end of its legendary hyperinflation.

Hyperinflation in Zimbabwe had become so extreme-- roughly 90 billion trillion percent (that’s not a misprint) -- that the government finally capitulated in 2009 and simply abandoned the currency altogether.  And when I first landed in the capital of Harare, the infamous Zimbabwe dollar had become so worthless that many people were using it for wallpaper.

Zimbabwe had once been a vibrant, highly productive economy based on valuable mineral and agricultural exports. Even by the early 2000s, after two decades of independence under Robert Mugabe, inflation was still ‘only’ around 20%.

But inflation began to spiral out of control.

There was no end to Mugabe’s bad policy ideas, ranging from price fixing to land reform. And after confiscating assets from citizens in the late 90s and early 2000s, Zimbabwe’s economy contracted viciously.

If that weren’t enough, Mugabe also ballooned government spending. He borrowed heavily and increased Zimbabwe’s national debt. So naturally, the central bank began printing vast quantities of money.

We all know what happened next; Zimbabwe’s economy was in the dumps, so fewer goods and services were being produced. Yet the central bank created substantially more paper money. So inflation soared.

By 2003 it reached nearly 600%. By 2006, over 1,000%. And yes, by November 2008, 90 billion trillion percent.

Most of us from developed countries can’t imagine the living conditions of a collapsed economy. And the locals I met in Harare told me incredible stories of food shortages and endless lines at banks, grocery stores, and pharmacies.

If you were lucky enough to be inside of a store where there was actually food on the shelves, workers were constantly putting new price tags on products. And while you were shopping, a voice would come over the loudspeaker and announce the new price of soup, bananas, and rice.

Everything was a constant rush. You had to race through the aisles to grab whatever you could, and check out before the prices went up.

It was the same at restaurants; several times during a meal, a waiter would come out and inform you about the new price of the beer you were drinking.

I remember one person told me that he used to buy two loaves of bread every morning on his way to work. He would eat one of the loaves during the day, and then sell the second loaf in the evening at a significantly higher price.

He realized that bread, bizarrely enough, held its value-- at least for the day. It was also a highly ‘liquid’ asset; he would always able to quickly find a buyer and sell his extra loaf at market value.

It’s not hard to understand why: bread has a real use in that it provides critical nourishment. And in a time of economic chaos and shortages, this is far more valuable than rapidly deteriorating paper currency.

The same logic applies to “real assets”, i.e. they hold their value during inflationary times because they provide something vital. And this is a key point to understand.

Think about consumer behavior: during economic boom periods, inflation is low. Unemployment is low. Interest rates are low. People have confidence and optimism about the future, so we tend to borrow more and spend more freely.

And the best performing assets during these boom periods mirror that sentiment.

Just think about the economic boom period from, say, 2016 through 2021. Unemployment, inflation, and interest rates were all at historic lows. Consumer spending soared.

And the most valuable companies in the world were the so-called “FAANG” stocks:

- Facebook, which just enables people to waste time swiping and scrolling

- Apple, which makes the devices for people to swipe and scroll

- Amazon, which makes it easy to shop and spend money

- Netflix, which is basically just an entertainment business

- Google, whose YouTube division is another entertainment business

In other words, the world’s most valuable companies were all consumer-oriented… and even more specifically, oriented towards shopping, recreation, and entertainment.

Over the same period, companies who produced some of the world’s most essential products were ignored.

Facebook stock soared nearly 500% between 2014 and 2019. Yet shares of Exxon Mobil lost about 10%. Netflix stock exploded more than 1,000%, while an ETF of gold miners lost 21%.

But today’s harder economic times are forcing changes in people’s focus and behavior. It’s only natural.

Most people have started paying a lot more attention to their expenditures. Spending $2,000 on a new iPhone suddenly doesn’t seem like such a great idea when oil is approaching $100/barrel.

And this is what leads me back to real assets. But first let’s define what that actually means--

“Real Assets” are defined in a variety of different ways. Sometimes people define real assets by citing specific asset classes, i.e. commodities and real estate. ChatGPT tells me that a real asset “is a tangible physical asset that has intrinsic value due to its substance and properties.”

I think these definitions miss the point. To me, a real asset is something that provides a critical need, like food, energy, economic productivity, or a store of value.

This could be a tangible, physical asset, like a barrel of oil or bushel of corn. But not necessarily.

Productive technology that makes the world better, faster, cheaper, etc. is considered intangible intellectual property. But it provides a critical need, which makes it a real asset.

Conversely, Mark Zuckerberg’s new “Threads” app is also technology. But given that it makes the world less productive, it is not a real asset. It’s just another recreation asset.

Similarly, 500 acres of prized, high-quality farmland provides critical value. But a Class C office building in a declining tier-3 city does not.

Viewed through this lens of “critical need”, it’s a lot easier to understand what is/isn’t a real asset… and why they can hold their value during inflationary times: it’s all about shifting priorities.

Real assets (including real asset businesses) have been largely ignored for more than a decade, in favor of ‘recreation assets’ focused on shopping and consumption.

Consider that, in 2019, a ripe banana that was duct-taped to the wall sold for $120,000 at an art exhibition. Critical need? Hardly.

Meanwhile, that same year, the high priests of climate change (like Blackrock’s Larry Fink) were working diligently to cut-off funding for vital industries like oil, coal, and natural gas.

And this bizarre mismatch of priorities continued for years, through at least the first half of 2022.

But priorities are finally starting to shift. And this means that the ‘real assets’ which are critical to solving the world’s challenges will become much more important than ‘recreation assets’. And that’s what makes them such a great hedge against inflation.

To your freedom,   Simon Black, Founder Sovereign Man

https://www.sovereignman.com/investing/why-real-assets-are-a-safe-haven-against-inflation-148196/

3 Ways To Avoid Being Exploited As You Get Older

3 Ways To Avoid Being Exploited As You Get Older

‘They left us with nothing’: This elderly couple was evicted from their home of 20 years — after their son transferred ownership. 3 ways to avoid being exploited as you get older

Serah Louis   Sun, September 24, 2023

An elderly California couple was devastated when they were served an eviction notice in April for the home they’d been making regular payments on for two decades.

Ismael and Angelita Ramirez purchased their home back in 2003 with their son, who told them they didn’t need to include their name on the title.

"He told us they told him it wasn't necessary. And well, since we don't know English, that's where they lied to us," Ishmael told FOX26 News.

The eviction notice reportedly stated that the owner of the home was selling the property and the couple said they later learned their son had transferred the home to a woman who sent them the notice. Although the couple tried to get legal help, there wasn’t much the lawyer could do since the house wasn’t in their name.

“We thought, why did our boy do that to us if he knew the house was ours?" Ishmael said.

Elder financial abuse impacts millions of Americans

The Ramirezes were victims of elder abuse — which is far more common than you’d think.

In fact, the National Council on Aging reports up to five million older Americans are affected each year, while victims of financial abuse are estimated to lose at least $36.5 billion a year.

And in almost 60% of cases, the perpetrator is a family member — often the adult child or spouse of the victim.

The Ramirezes told FOX26 they’ve since been displaced and their Social Security income isn’t enough to buy a new home or even afford rent.

"They left us with nothing," Ismael said.

Their other son, Ismael Jr., created a GoFundMe fundraiser, which has already received more than 1,600 donations to help the couple.

Here are five ways to avoid being exploited as you get older, or to protect your aging parents from predators.

1. Appoint a power of attorney

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

https://finance.yahoo.com/news/left-us-nothing-elderly-couple-100000273.html

9 Middle-Class Money Traps That Keep You From Being Wealthy

9 Middle-Class Money Traps That Keep You From Being Wealthy

Angela Mae  Thu, September 21, 2023

According to the Pew Research Center, approximately half of all American households are considered to be part of the middle class. This equates to roughly 165 million people.

Typically, people in the middle class have some kind of college education, some disposable income, and may even be planning for retirement. But that doesn’t mean they’re financially stable.

In fact, middle class households usually have some kind of debt — like a mortgage, auto loan or credit cards — that they need to pay off. Along with this, these individuals are also still subject to many common financial pitfalls, or money traps, that keep them from achieving true wealth.

If you’re in the middle class and want to become financially independent or wealthy, here are some financial decisions or behaviors that might be keeping you from achieving this goal.

Trying To Keep Up With the Joneses

The “middle-class money trap is being on the hamster wheel of life,” said Sebastian Jania, owner of Manitoba Property Buyers. “This is doing things such as buying cars that depreciate over time, taking on student debt for a degree that doesn’t have a solid financial future, or buying a property that one simply shouldn’t be buying because it’s too expensive. This is all commonly referred to ‘keeping up with the Joneses.'”

Societal influence and pressure are very real concerns for many people, ones that often lead to extravagant purchases just to keep up appearances. The problem with this is that it can lead to a cycle of debt and overspending. When this happens, it can be harder to achieve long-term financial goals, invest in the future or build wealth.

Spending Without Saving or Investing

A common middle class money trap is spending all or more than your income without saving anything that will allow you to make investments that generate wealth, such as a home,” said John Bodrozic, co-founder of HomeZada.

“For the middle class who are homeowners,” Bodrozic added, “the money trap is neglecting maintenance, repairs, and obvious remodeling and improvement opportunities, or mismanaging your home from a financial perspective, that will prevent you from growing your investment and may even lower home values and your equity.”

Settling for the Status Quo

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

https://finance.yahoo.com/news/9-middle-class-money-traps-120048718.html

More Money, Literally More Problems: Unique Estate Planning Concerns for the Ultra Wealthy

More Money, Literally More Problems: Unique Estate Planning Concerns for the Ultra Wealthy

Patrick Villanova, CEPF®   Thu, September 21, 2023

In the realm of personal finance, estate planning stands as a paramount consideration for those who have amassed substantial wealth. For ultra-high-net-worth individuals – people with over $30 million in investable assets – the complexities and implications of legacy planning become even more pronounced. While it’s often tempting to delay such discussions, proactively managing your wealth’s future distribution is essential to ensure a seamless transition for your beneficiaries. A financial advisor may be able to help you manage your wealth and create an estate plan tailored to your needs.

Importance of Proper Estate Planning

Estate planning is a powerful gear in the engine of wealth management and preservation. It establishes mechanisms like trusts, which cater not only to the future needs of heirs but also ensure your assets are distributed according to your wishes. A well-drafted plan clearly outlines the distribution of assets, minimizing the chance of disputes and legal battles. This not only preserves family relationships but also reduces stress during an already challenging time.

Without precise planning, heirs could also face taxing burdens and legal puzzles that can whittle down the value of their inheritance.

Additionally, estate planning offers a chance to express one’s healthcare preferences through documents like living wills and medical powers of attorney. These documents ensure that an individual’s medical wishes are respected, even when they are unable to communicate their desires.

Unique Estate Planning Concerns for the Wealthy

If you’re ultra-wealthy, the complexity of your wealth demands a more intricate plan than what the average person or even high-net-worth individual may require.

Ultra-high-net-worth individuals often possess wealth that spans multiple generations. Ensuring this wealth endures and thrives requires strategic estate planning. Structures like family limited partnerships (FLPs) and generation-skipping trusts can be employed to efficiently pass assets to grandchildren, avoiding excessive taxation while maintaining family control over assets.

Many affluent individuals also hold a deep commitment to philanthropy. Establishing charitable foundations or trusts can allow you to leave a lasting impact on causes dear to your heart.

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

https://finance.yahoo.com/news/more-money-literally-more-problems-135446685.html

Minimizing the Opinions of Others

Minimizing the Opinions of Others

Written by Cheryl Smith

One of the many things I have observed as a longtime online writer is the ebb and flow of the opinions of others. Putting yourself out there, being real and transparent, and sharing from your heart opens the door for others to react and respond, and their feedback can either distract and discourage or affirm and encourage you.

Here are 10 lessons I’ve learned over the past nearly 12 years that are not only for online authors but can be applied to anyone who deals with the opinions of others. Don’t we all?

10 Lessons in Minimizing the Opinions of Others

1. People’s opinions are as varied as people themselves.

They hold the potential to elevate you to pedestal status one day, then to trample your name (and work) in the mud the next. People’s opinions vary immensely from one person to the next. A thousand people can read your written words and come away from them with a thousand interpretations. Those interpretations can be completely off-track or the reader can totally “get” what you are trying to say.

2. Stay true to yourself.

Don’t be swayed. Don’t second-guess yourself. Stay true to who you are and what you have been called to do. My husband always tells me to do what brings me peace, and following his advice is extremely liberating. Continue to do what gives you peace and allows you to lie down at night with a clear, clean conscience. Don’t conform to what others think you should do, say, or be.

3. Praise isn’t always what it seems.

There are those who have mastered the art of being able to ruin a perfectly good compliment by adding a subtle, passive-aggressive insult to the mix.

4. Jealousy is cruel.

Your success can and will bring out the worst in others. Song of Solomon 8:6 says, “Jealousy is as cruel as the grave.” People who are driven by jealousy are much more likely to lash out online than insult you to your face. If someone is jealous of you and/or your work, remember it is their problem, not yours. Press on unfazed by the issue(s) of those who criticize you.

5. Stay grounded.

There will be highs. There will be lows. The important thing is that you are affected by neither. Whether someone left a one-star rating or a five-star review changes nothing.

6. Toughen up.

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

https://nosidebar.com/minimizing-the-opinions-of-others/

The Worst Financial Gifts to Give Your Kids

The Worst Financial Gifts to Give Your Kids

September 16, 2023  The White Coat Investor

Parents with fantastic intentions often hurt their children by giving terrible financial gifts. Here's how to change that.

PIMD welcomes the White Coat Investor. WCI is a physician-specific personal finance and investing website. The White Coat Investor can help you to become financially literate and disciplined, which will allow you to spend your time and effort on your patients, your family, and your own wellness. WCI truly believes that a financially secure doctor is a better partner, parent, and practitioner. White Coat Investor is an affiliate partner of PIMD.

As a general rule, parents love their kids and would do anything for them. However, due to a lack of financial literacy, many parents with fantastic intentions end up hurting their children. Here are some of the ways they do that.

#1 A Car

I'm sure there are people who think it is a bad idea to give your kid a car because it will spoil them. That's not what I'm talking about. If you really want to spoil them, knock yourself out (actually we'll get to this under #6).

What I am talking about is giving your kid a car that isn't yet paid for. Yeah, some people do this. Can you believe it? They go down to the dealership, put down a $300 down payment, sign up for some loan payments, and then get the car for their kid. Along with the responsibility to make the payments! Uhhh . . . thanks, Mom. I guess it could be worse. They could have signed you up for a lease.

#2 Whole Life Insurance

Another common situation is a parent who bought their kid a whole life insurance policy at birth. It would stand to reason that if you're buying baby food and life insurance from the same company, one of the two probably isn't a very good product.

Despite that, I keep running into people in their 20s and 30s who have just been given a whole life insurance policy and asked to take over the payments. Their parents have been making monthly payments on these for 2-3 decades, but the surrender value is only a four-figure amount at this point and the child is basically being asked to pay a two- or three-figure amount every month for the rest of their life.

It wasn't a good policy to start with. It doesn't address any financial need they actually have (because the face value is usually something like $20,000). And now they have no idea what to do with it, so they just start making the payments too!

Incidentally, what they should do is surrender it; put the money toward their student loans; thank their parents for their kind gift; and never, ever run the numbers on how much that gift could have been had it been invested aggressively in a 529.

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

https://passiveincomemd.com/the-worst-financial-gifts-to-give-your-kids/

Replacement Cost Versus Actual Cash Value Home Insurance

Replacement Cost Versus Actual Cash Value Home Insurance

By Financial Samurai / 09/18/2023

Home insurance costs are going up due to rising home prices, rising building costs, increasing natural disasters, and less appetite for risk from the insurance and reinsurance companies. As a result, more homeowners are looking to save by taking out an actual cash value (ACV) home insurance policy as opposed to the more common replacement cost value (RCV) home insurance policy.

I'm going through this dilemma right now as I diligently hunt for a home insurance policy for a new home I plan to buy. The actual cash value policy I found is about 52% cheaper than the best replacement cost policy I've found. With such significant annual savings, I'm leaning toward the actual cash value option.

Let me explain the definitions of each home insurance policy and discuss why one may be better than the other. Ideally, a homeowner needs disaster insurance in case the worst happens, such as a fire that destroys everything.

First, let's review what depreciation means. It is key to understanding the difference between replacement cost and actual cash value. In simple terms, depreciation is the loss of value of your property over time.

Replacement cost is the amount paid to replace property or personal belongings without any deductions for depreciation. You may also have the option for replacement cost value on automobile, motorcycle, and boat policies.

Actual Cash Value Home Insurance Policy Definition

Actual cash value is equal to the replacement cost value minus depreciation. In other words, an actual cash value home insurance policy does not replace what you lost. Instead, it reimburses you for the item's CURRENT actual value.

For example, your roof might have cost $30,000. However, since it's 15 years old and only has a useful life of 30 years, the current value of your roof might only be $15,000. If your roof tears off during a tornado, your actual cash value home insurance policy would just pay $15,000.

How is the current value of your roof determined? To determine an item's ACV, an insurance adjuster will take the cost of replacing your damaged or stolen property and reduce the cost of the property based on depreciation, such as age and wear and tear.

Therefore, the older your house, the less an actual cash value policy will likely cover.

Replacement Cost Value Home Insurance Policy Definition

Replacement cost value (RCV) is what it costs to replace damaged or stolen property without depreciation. It doesn't matter how old the item is. A replacement cost value policy is obligated to replace the item at whatever it costs today.

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

https://www.financialsamurai.com/replacement-cost-value-versus-actual-cash-value-home-insurance/

The $2 Billion Powerball Winner Is Making The Worst Mistakes Financial Planners Warn People Of After They Come Into A Ton Of Money

The $2 Billion Powerball Winner Is Making The Worst Mistakes Financial Planners Warn People Of After They Come Into A Ton Of Money

Paige Hagy  Tue, September 19, 2023

The winner of the record-breaking $2 billion Powerball prize is breaking every financial planning rule in the book. Edwin Castro is buying up California real estate since winning the lottery in November, including a three-story $25.5 million mansion in the Hollywood Hills, the same part of Los Angeles that A-list stars like Leonardo DiCaprio and Ariana Grande call home.

That’s the exact opposite of what financial advisors recommend for lottery winners—or any person who suddenly comes into great wealth. Rather, they suggest waiting until the emotional high of winning the jackpot cools off. One advisor counseled against buying up expensive homes altogether.

“I’ve seen clients purchase large homes in faraway locations that they ultimately realize they will not use frequently and end up being a major ongoing financial burden that took several years to sell,” Paul Karger previously told Fortune.

Karger is a cofounder and managing partner at TwinFocus, a wealth advisory firm that manages over $7 billion for ultra-high-net-worth families. He recommends to clients, who range from centimillionaires to billionaires, to wait six months to a year before making any big buys.

The value of second or third homes (or mansions) is shrinking post-pandemic, and luxury real estate is not known for being a great investment considering its vulnerability to economic conditions outside the owner’s control. Plus, real estate is an illiquid asset, which can become a burden if the owners are careless about managing the rest of their wealth. The annual cost to maintain a home is roughly 1% to 4% of the home’s worth.

By this estimate, the upkeep for Castro’s $25.5 million Hollywood Hills home—which has five bedrooms, six bathrooms, a game room, wine cellar, home theater, wet bar, gym, cold plunge, steam shower, and sauna—will cost $255,000 to over $1 million annually.

More mansions and a vintage Porsche

And that’s not all he bought. A couple weeks after buying the first mansion, he spent $4 million on a Japanese-inspired house in Altadena, Calif., his hometown in the Los Angeles suburbs and near the gas station where he bought the winning ticket.

Earlier this month, he also bought a $47 million mega-mansion in Los Angeles, with seven bedrooms, 11 bathrooms, an infinity pool, koi pond, champagne room, wine cellar, home theater, and a view of the city skyline. Castro also purchased a vintage Porsche 911 costing $250,000, the New York Post reported in April.

Castro claimed his prize in February, choosing to immediately receive nearly $1 billion in cash, which came out to be roughly $628 million after taxes. The alternative option was to collect the full $2 billion prize through an annuity over 29 years, which financial advisors say is usually the better strategy.

“People don’t understand there is a potential for loss. They only focus on the potential for gain,” Nicholas Bunio, a financial planner told the Associated Press last November.

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

https://finance.yahoo.com/news/2-billion-powerball-winner-making-170524751.html   

The No. 1 Personality Trait Linked To A Long Life

The No. 1 Personality Trait Linked To A Long Life:

 ‘The effects of just being positive are overstated,’ psychology expert says

Published Sun, Sep 17 2023   Aditi Shrikant

The number of people who are living to at least 100 years old in the U.S. has doubled over the past decade.   Many centenarians credit their longevity, at least in part, to their positive attitude.

Roslyn Menaker, 103, told The Guardian that “happiness, joy, appreciation … a positive outlook,” are why she has lived so long. Ruth Sweedler, 103, told CNBC Make It that she was always praised for her good attitude growing up. “When I walked into a classroom, my teacher would say, ‘Good morning, sunshine!’ Because I was so cheerful,” she said.

While seniors might feel being positive has played a role in their longevity, the relationship between personality and aging is more nuanced, says David Watson, a former professor of personality psychology at the University of Notre Dame.

“I think the effects of just being positive are overstated,” he says. But there are other traits he believes are closely linked to longevity.

‘Conscientious people don’t do stupid things’

When breaking down personality, it’s helpful to look at the Five Factor Model, a personality theory that suggests most people’s traits can be grouped into five categories: openness, conscientiousness, extroversion, agreeableness and neuroticism.

Conscientiousness, or how organized and disciplined you are, is the most related to longevity, Watson says.

This is likely because people with high degrees of conscientiousness are better at taking care of themselves. Conscientious people, for example, tend to drink alcohol in moderation and eat more balanced meals, he says.

“Conscientious people don’t do stupid things so they have lower rates of accidents and better health behaviors,” he says.

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

https://www.cnbc.com/2023/09/17/this-is-the-nopoint1-personality-trait-linked-to-living-longer.html