4 Tips To Handle Your Finances in an Uncertain Economy

4 Tips To Handle Your Finances in an Uncertain Economy, According to Money Expert Michela Allocca

Chris Ozarowski  Wed, October 9, 2024  GOBankingRates

Michela Allocca is a personal finance creator who shares tips for managing money through her social media pages.  In a recent post on her Instagram @breakyourbudget, she offered viewers four tips to help them handle their finances and prepare for an uncertain economy or even a recession.

Why Recession Prep?

So why prepare for a recession? According to Allocca, in recent years there has been a noticeable rise in financial anxiety among people across the U.S. This isn’t necessarily confined to any particular age group, income bracket or industry — concerns are universal. Record inflation has impacted essential expenses like rent, groceries, gas, insurance and home prices.

Recently, an economic indicator known as the Sahm Rule was triggered, signaling that the country may be on the verge of a recession. The Sahm Rule is used to detect the start of a recession quickly. Developed by economist Claudia Sahm, it focuses on changes in the unemployment rate.

The rule states that if the three-month average of the national unemployment rate rises by 0.5 percentage points or more above its lowest point in the previous 12 months, it signals the beginning of a recession. A recession could mean more layoffs and a tougher and more competitive job market, so preparing as much as you can can be a good idea.

Michela Allocca’s 4 Tips for Recession Prep

1. Take a Financial Snapshot

Allocca suggests starting by getting a firm understanding of your current financial situation. “Review your accounts and get clear on how much you have and where,” she said.

Start by listing all your bank accounts, investment accounts, retirement funds and other assets. Then list all of your debts, such as credit cards, student loans or mortgages. This gives you your net worth — the difference between your assets and liabilities.

Next, assess your cash flow — the amount of money coming in and going out of your accounts each month. List all sources of income, including your salary and any freelance work or side gigs. Then, compare that to your expenses by reviewing bank statements and receipts. You should categorize your spending into essentials like housing, utilities and groceries, and non-essentials like entertainment and dining out.

By auditing your outflow, you can identify areas where you might be overspending. If you find places where you are spending more than you need to, you can cut back and put that money aside for a rainy day.

2. Audit Your Cash Position

Allocca explains that it’s important to decide where you keep your money, especially when the economic situation is more uncertain. She describes this as auditing your cash position. Allocca lists two options for where to keep cash.

One option is a high-yield savings account. Allocca says that this is “a great place for your emergency fund or any other short-term cash savings.” An emergency fund should be one of your top priorities — you’ll need it if you lose your job or have unexpected expenses.

TO READ MORE:  https://www.yahoo.com/finance/news/4-tips-handle-finances-uncertain-140210755.html

Warren Buffett: 14 Simplest Pieces of Money Advice That Can Work for Anyone

Warren Buffett: 14 Simplest Pieces of Money Advice That Can Work for Anyone

Ellie Diamond  Mon, October 7, 2024  GOBankingRates

Warren Buffett has a gift. He’s the 10th wealthiest person in the world and the largest shareholder of the famous Berkshire Hathaway, but he shares some of the most relatable money advice.

Buffett’s 60-plus-year career has left the personal finance world with some of its favorite quotes and most evergreen advice.

Start Small and Be Patient

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

Buffett didn’t start with millions to invest. He describes his early days as “working with a tiny, tiny amount of money,” when he would choose a promising small company and invest in its growth.

He believes this freedom to choose small companies makes small-scale investing powerful. More important: Anyone can follow this advice. Choose an affordable company you believe in, then wait for it to work its magic.

As Buffett said at the 2001 Berkshire Hathaway annual meeting, “I think if you’re working with a small amount of money, you can make very significant sums.”

Invest in Index Funds

“In my view, for most people, the best thing to do is own the S&P 500 index fund.”

If you’re looking for the simplest way to invest, Buffett recommends the index fund.

Index funds are investments that track the return of a market index, representing a particular section of the stock market. The Standard & Poor’s 500 Index is one such index.

The S&P 500 includes 500 companies in various top-performing industries. Its broad representation means you’re not tying your funds to a tiny slice of the economy. Buffett likes it for everyday investors because it’s a simple yet effective way to spread your money around.

Buy Bonds

“Put 10% of the cash in short-term government bonds.”

If you’re looking for investment strategies, why not do what Buffett does with his money? As Buffett told shareholders in 2013, he has instructed the administrator of his wife’s trust to split the funds 90/10: 90% in the S&P 500 and 10% in government bonds.

The U.S. government offers two types of bonds: treasury and savings. Treasury bonds cost a minimum of $100, while savings bonds cost $25 and up.

Understand Your Investments

“Risk comes from not knowing what you are doing.”

Knowledge is power when it comes to your money. You don’t need to know everything about the market or the industry you’re investing in. Most people would never be able to invest if that was a requirement.

You do need to understand the basics of how an investment works. You’ve already taken the first step by learning about index funds and bonds. If you have another investment interest, start researching it. You can always ask a financial advisor for help if you need it.

Don’t Follow the Crowd

“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

Buffett has never made investment decisions by following trends. He made billions by finding companies he believed in and holding his shares in them for as long as it made sense.

If you understand the products in your portfolio and why they’re smart, you don’t need to follow investment trends.

Keep Cash Available

“When bills come due, only cash is legal tender. Don’t leave home without it.”

Buffett believes in his investments but knows the market can be volatile. In 2008, when its competitors were faltering, Berkshire thrived because it had plenty of access to cash.

That money was in cash equivalents, a short-term investment that you can cash in relatively quickly. Think of certificates of deposit and money market accounts, which you can open at most financial institutions.

One word of caution: CDs tend to charge fees if you withdraw early. There are always high-yield and traditional savings accounts if you need quick access.

TO READ MORE:  https://www.yahoo.com/finance/news/warren-buffett-14-simplest-pieces-230010894.html

Warren Buffett's Son Cashed In His $90,000 Inheritance at 19

Warren Buffett's Son Who Famously Cashed In His $90,000 Inheritance at 19 Spends Millions in 'Buffett Bucks' Transforming A Small New York Town

Jeannine Mancini  Updated Sun, October 6, 2024   Benzinga

Warren Buffett has always been clear about how he wants to handle his wealth with his kids, famously saying he'd give them "enough so they can do anything but not enough so they can do nothing."

His son, Peter Buffett, really took that to heart. At 19, Peter made a bold move by cashing in his $90,000 inheritance – Berkshire Hathaway stock – and using it to chase his dream of becoming a musician. While that stock would be worth hundreds of millions today, Peter has no regrets. For him, it wasn't about the money but the time it bought him to explore his passion.

In 2010, Peter and his wife Jennifer moved to Kingston, a small city in New York's Hudson Valley. From there, they began using their foundation, NoVo, to invest in the community. We're not talking pocket change either – NoVo's contributions rival Kingston's annual budget. One of the more interesting investments? The introduction of a local currency, known by some as "Buffett Bucks."

Yes, you read that right – Buffett Bucks. As part of Peter's vision for sustainable, community-focused development, the NoVo Foundation has supported the creation of a local community currency. The idea is to keep money circulating within the city, supporting local businesses and initiatives. It's an unconventional move, but it's all part of Peter's broader mission to strengthen the area's economy in a way that builds resilience and keeps things local.

Of course, NoVo's influence stretches beyond currency. The foundation has invested millions in projects like the Hudson Valley Farm Hub, which they purchased for $13 million in 2014. The farm has become a cornerstone of local agriculture, growing grains, vegetables and dry beans on 1,500 acres. It's not just about food production; the farm is also a training ground for future farmers, focusing on organic and sustainable practices.

But it's not all smooth sailing. Some Kingston locals have reportedly raised concerns about the foundation's decision-making process, particularly the lack of public input. Transparency becomes a big deal when so much of a town's economy is tied to one private organization. According to Tablet Mag, there are whispers of an unspoken rule: don't talk bad about NoVo if you want to keep getting funding.

Still, Peter isn't one to shy away from criticism. In response to some concerns, he's emphasized that NoVo isn't trying to claim all the answers. They're in it for the long haul, committed to finding solutions through dialogue and collaboration. It's all part of Peter's belief in using his resources not to control but to empower the community.

TO READ MORE:  https://www.yahoo.com/finance/news/warren-buffetts-son-famously-cashed-153019216.html

5 Financial Habits Keeping You Broke

5 Financial Habits Keeping You Broke, According to Money Expert Michela Allocca

Caitlyn Moorhead  Thu, October 3, 2024   GOBankingRates

The strategies and habits that lead to your personal financial success aren’t just comprised of big investments and down payments, but also of knowing which things to avoid. According to money expert and financial analyst Michela Allocca, a rising voice in personal finance, certain financial habits are major contributors to keeping people broke.

She said, “Personal finance success is 10% strategy and 90% behavior. There are so many things you can do that are external of your income to help ensure you stay on the right path.”

So many money moves are positive, such as starting an emergency fund, diversifying your portfolio or maximizing your 401(k). However, keep reading to discover the five habits Allocca says you should break unless you want to stay broke.

Earning passive income doesn't need to be difficult. You can start this week.

Not Keeping a Grocery List

If you are living paycheck to paycheck and spending every dollar you earn, there’s no room for impulse buying at checkout if you want to start saving.

Grocery shopping is inevitable, but Michela Allocca said it doesn’t have to derail your monthly budget. Keeping a grocery list is a great way to ensure you stick to your budget while shopping.

“Having a grocery list and shopping my pantry makes it so much easier to save money on food and not waste anything,” added Allocca. “It’s a simple habit that makes a big difference!”

Not Tracking Your Expenses

One of the most common mistakes people make is failing to create and stick to a budget. One of the biggest culprits in this is not tracking your expenses.

“You need to be doing this to know where your money is going,” she said.

Allocca stressed that budgeting is not about restriction but about clarity and control over your money. Without a clear plan, it’s easy to overspend and lose track of where your money is going.

Signing Up For Shopping Email Lists

TO READ MORE:  https://www.yahoo.com/finance/news/5-financial-habits-keeping-broke-180032867.html

Real Assets are Historically Cheap Right Now Here’s One Example

Real Assets are Historically Cheap Right Now. Here’s One Example.

Notes From the Field By James Hickman / Simon Black / Sovereign Man October 2, 2024

The “green energy” revolution is one of the biggest fantasies of today.

For example, they tell us that fossil fuels are going away, that the gasoline powered internal combustion engine is a thing of the past, and that everyone wants to drive an electric vehicle (EV).

Clearly, that’s why over 90% of consumers still choose gas powered vehicles...

So the government instead has to step in to mandate electric vehicle use, attempting to force manufactures to sell 50% electric vehicles by 2030.

They conveniently ignore the fact that the American electric grid cannot handle that kind of power demand.

And if the $1 billion per EV charging station Secretary of Transportation Pete Buttigieg is spending from the trillion-dollar infrastructure bill is any indication, we’re not going to get there in six years.

The “green energy” revolution is one of the biggest fantasies of today.

 Meanwhile, auto manufacturers are actually scaling back EV production as demand slows and infrastructure gaps remain vast.

Governments and activists may wish it were otherwise, but fossil fuels are not going away for decades. Yet, the belief that they are has led to massive misallocations of capital into renewables.

We’ve talked about this in regards to oil, natural gas, and the uranium required for nuclear power. All of these energy assets have been ignored by investors, or demonized by activists and governments, despite remaining absolutely critical.

And the same thing is true of the metals necessary to build traditional internal combustion engines.

Mining companies are obsessed with finding more metals like nickel and cobalt for the “green energy” revolution. Meanwhile, the specific niche metals required for gas vehicles have been neglected.

I’m talking about platinum group metals (PGMs). These include six metals—platinum, palladium, rhodium, iridium, ruthenium, and osmium—renowned for their high melting points and corrosion resistance.

Over 80% of palladium and 90% of rhodium is used in gas vehicle emissions control systems to convert toxic gases into less harmful substances.

And it seems investors have believed the lies of the climate fanatics, assuming that demand for these metals will drop precipitously as everyone flocks to electric vehicles.

This ignores, first, the actual reality that people still prefer gas vehicles.

Second, the fact that hybrid-electric vehicles are actually the most popular alternative to gas-only vehicles.

And while the EPA-regulation wants everyone to drive electric vehicles, hybrids also satisfy its 50% mandate.

Already, hybrid vehicles account for about 25% of vehicle sales in the US. And they actually use more PGMs per vehicle than traditional combustion engine cars.

But the supply of PGMs is shrinking.

South Africa, the dominant producer of platinum and rhodium, has struggled with power shortages, labor strikes, and declining investment in its mining sector. Russia, another major player, faces sanctions and geopolitical uncertainty that disrupt its palladium production.

With these two countries controlling the vast majority of global supply, the market is heading for significant deficits in the coming years. The numbers are already telling: in 2023 and 2024, the platinum, palladium, and rhodium markets all ran deficits, as in, more was consumed than produced.

Despite this looming shortage, prices for PGMs have plummeted.

Palladium is down 66% from its 2022 highs, and rhodium has crashed by 80% since 2021. This collapse in prices has put major PGM producers on the back foot, forcing them to cut jobs, and even shut down some operations.

Investors, spooked by the drop, are shorting palladium at record levels, convinced that the future belongs to EVs. But they’re missing the bigger picture.

False narratives like these are one reason why many real assets are historically cheap right now.

Real assets are physical, tangible goods like certain commodities and natural resources which have intrinsic value tied to real world uses. This includes energy assets like oil and uranium, productive technology, and fertile farmland.

It also includes critical minerals and metals, like the ones we have been discussing.

Unlike financial assets and paper money, they cannot be conjured out of thin air by central banks and government. Which is why they protect wealth against inflation.

And the type of conditions present in the PGM market is a classic example of finding a historically undervalued real asset.

A crucial, critical resource with limited supply? Check.

A burgeoning shortage, with no movement in the markets to remedy it? Check.

A historically low price for the critical resource? Check.

That’s why this summer we wrote to subscribers of our investment research service, The 4th Pillar, about a company which mines PGMs.

But rather than traditional mining, it extracts these metals from tailings— the waste left over from other mining operations.

And that means it actually gets its source material delivered to it for free...

This company has a deal with a chrome miner for the exclusive right to process the chrome mine tailings. It gives back the recovered chrome, and keeps all the extracted PGMs for itself.

It’s a symbiotic relationship with no money exchanged, no profit share, and no royalty owed.

This low-cost, efficient business model has allowed the company to stay profitable even as PGM prices have cratered.

With a rock-solid balance sheet and minimal debt, it is perfectly positioned to weather the current downturn and capitalize when the market inevitably turns.

But again, this isn’t just the story of PGMs and vehicle markets.

Everywhere you look, real assets are historically cheap.

Often these same conditions exist— the market for a critical resource has been ignored by investors, or demonized by activists, cutting into supply, while demand stays steady, or even grows.

While frustrating, these lies create enormous opportunity. The best way to capitalize is by investing in critical real asset companies at historic lows. As inflation rises and markets correct, those who invest now stand to benefit immensely.

To your freedom,  James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/real-assets-are-historically-cheap-right-now-heres-one-example-151519/

PS-
The 4th Pillar is our highest tier investment research service that focuses entirely on undervalued real asset businesses. Based on our track record, an annual membership is well worth the $1,995 cost.
If you’re interested in subscribing you can do so here.

Do This One Thing If You Can’t Afford a Financial Emergency Right Now

Do This One Thing If You Can’t Afford a Financial Emergency Right Now, According to Rachel Cruze

Nick Perry  Mon, September 30, 2024  GOBankingRates

A third of Americans say they cannot afford a $400 emergency expense in cash, according to research from Empower. That’s an astounding number that reflects the financial challenges most Americans are facing today. Unfortunately, life can be unforgiving, and just because you can’t afford a financial emergency doesn’t mean you might not experience one.

That’s why financial expert Rachel Cruze insists on the importance of an emergency fund. An expert at financial firm Ramsey Solutions, Cruze tells her more than 600,000 followers on Instagram that now is the time to start building an emergency fund.

Her No. 1 solution to prepare for a financial emergency is simple.

How To Build an Emergency Fund

Cruze’s biggest tip for building an emergency fund is to start selling things you don’t use. As she puts it, “Look around your house and think, ‘What crap do I have that I don’t use and that I don’t need?'” Turning those items you don’t want or need into cash will give you a buffer to pay off surprise debts like car repairs, medical bills or even semi-planned expenses like books for school or an increase in your phone bill.

Cruze notes that there are many things you can do to cut back on your spending, like picking up a side hustle or dining out less, but says, “Fast cash is what you need if you’re in that position [of not having an emergency fund].”

Some of the items Cruze recommends selling include:

Exercise equipment

TVs

Clothes

Shoes

With tools like Facebook Marketplace, Craigslist and Poshmark, it’s easy to turn the belongings you no longer want or need into cash.

How Much Should Your Emergency Fund Be?

Cruze notes in the caption of her post that a Ramsey Solutions study found that 34% of Americans have no savings at all. To gain a measure of financial peace, Cruze recommends selling enough items to secure a $1,000 cash emergency fund. That’s the first step to taking better control of your financial health.

4 Reasons To Have an Emergency Fund

TO READ MORE:  https://www.yahoo.com/finance/news/one-thing-t-afford-financial-120019524.html

5 Secrets About Money American Banks Don’t Want You To Know

5 Secrets About Money American Banks Don’t Want You To Know — Plus How To Beat Them At Their Own Game

Maurie Backman  Tue, October 1, 2024  Moneywise

As consumers, we rely on banks to keep our money safe and secure. They’re an essential part of our economy — but they’re also a profit-seeking business.

As much as banks are a mainstay of people’s personal finances, some of their practices aren’t exactly as transparent as they should be — and many Americans have caught on.

In fact, a 2023 study from the Associated Press-NORC Center for Public Affairs Research revealed that only 10% of U.S. adults have a “great deal of confidence” in banks and financial institutions, while 56% say the government is not doing enough to regulate the industry.

There are certain tricks banks employ to make money and protect their own interests — and these tactics aren’t necessarily general knowledge.

Here are a few of the biggest banking secrets you should know about.

1. Sneaky fees

From maintenance fees to overdraft charges, one of the main ways banks make their money is through various fees. Even ones that seem negligible at first glance can add up over time.

For example, personal finance celebrity Dave Ramsey once called maintenance fees “some of the sneakiest,” adding that, “you agree to them when you open an account, and you may not even realize it until they show up on your statement six months later.”

But it may be possible to avoid paying maintenance fees. For instance, some banks may waive the fee if you maintain a certain minimum account balance.

However, fees on big loans, such as a mortgage, are often hiding in the fine print of your contract. Although it may feel tedious, always read the fine print before you open any account.

If you come across any fees, in general, you should feel empowered to contest it. After all, a bank is like any other business — they don’t want to lose you as a customer, especially if there’s a risk that they’ll lose you to a competitor.

2. Credit cards offer more protection than debit cards

Using a debit card over a credit card can be beneficial, especially since many businesses impose a surcharge on customers for credit card purchases. However, credit cards tend to offer more protection than debit cards.

Often, when there's a fraudulent transaction on your credit card account, you can dispute it. Typically, the charge will be removed from your balance while it's being investigated, or you'll receive a credit for that charge so you don't have to pay for it.

But when your debit card is used fraudulently, you have less protections in place. You generally only have a small window of time to report a fraudulent transaction on a debit card — and that window may depend on the rules and regulations your bank has in place.

If your debit card or PIN number is stolen, you may find yourself responsible for up to $500 in unauthorized transactions if you notify your bank after two business days, according to the FDIC.

With a credit card, on the other hand, you could report fraud several weeks later — on average, around 60 days after the fact. In some situations, it can be even longer.

For this reason, it could pay to use a credit card more often than your debit. As an added bonus, credit cards let you rack up points or cash back on your purchases, which debit cards don't.

TO READ MORE:  https://www.yahoo.com/finance/news/5-secrets-money-american-banks-121300122.html

Suze Orman: 1 Reason You Should ‘Absolutely’ Own Bitcoin

Suze Orman: 1 Reason You Should ‘Absolutely’ Own Bitcoin

GoBankingRates  Kellan Jansen  September 23, 2024

Suze Orman is a financial host and author, and in a recent interview with CNBC, she said she believes “everyone should absolutely” own the cryptocurrency bitcoin. Usually, people who support bitcoin as an investment view it as a store of value — but Orman doesn’t.

Here’s the real reason you should own the No. 1 crypto asset by market cap, according to Orman.

Young People Are Fascinated by Bitcoin

Orman’s main idea is that young people are excited by bitcoin, and they’re likely to continue buying it for years. This, she argued, should be positive for the coin’s price over time.

Orman doesn’t buy into the idea that bitcoin will become a store of value like gold or supplant the dollar. But she does view it as a speculative asset that may still have room to run in the future.

However, Orman doesn’t recommend putting all of your money into the crypto market. She said you should invest only what you can afford to lose. That aligns with the general recommendation of allocating no more than 5% of your portfolio to crypto.

Orman is correct in pointing toward younger generations’ interest in cryptocurrency. Millennial and Gen Z investors are now as likely to own crypto as they are to own real estate. One reason for that could be dissatisfaction with the current financial system.

But Orman doesn’t evaluate further than this. She argued that the buy-in from young people is all that really matters. In other words, as long as people continue believing in bitcoin, its price should keep increasing.

Is Orman Right About Bitcoin?

TO READ MORE:  https://www.aol.com/suze-orman-1-reason-absolutely-140020392.html

Can I Deposit This Money Legally?

Can I Deposit This Money Legally?

Christy Bieber  Sat, September 28, 2024 Moneywise

I lost faith in banks in 2009 — now I have $650K in cash sitting in a safe. Can I deposit this money legally?

Anyone who lived through the Great Recession remembers the tremendous economic turmoil that took place.  Banks had made mortgage loans to unqualified borrowers, bundling those loans into mortgage-backed securities that were sold to investors. The entire house of cards collapsed as home prices began to fall and interest rates began to rise. Several major banks failed, the government was forced to bail out more and the stock market plummeted.

While the economy eventually recovered, many people became wary of financial institutions — with some people worried enough to withdraw their funds from banks and brokerage firms entirely.

If you're one of those people and have been hoarding cash since the Great Recession, you've sadly missed out on the chance to benefit from years of economic growth. While the average closing price for the Dow Jones Industrial Average was around $8,886 in 2009, the average in 2023 was $34,122, and has continued to rise in 2024.

For those who want to get in on the gains, it may be time to make a change. However, you'll need to understand the rules for doing so.

How To Deposit A Large Sum Of Money

If you've amassed a large sum of money at home instead of putting cash in the bank, you may be wondering if it's even possible to deposit it once you've had a change of heart.

The answer is yes, but there are some caveats.

Specifically, when you deposit over $10,000, your bank is required by the Bank Secrecy Act to report it to the Financial Crimes Enforcement Network. Your bank may ask some personal questions, including why you're depositing such a large sum, so you must be prepared to answer them.

To be clear, if you've done nothing wrong, earned the money legitimately and paid taxes on it, this reporting requirement shouldn't worry you. You just need to know about it so you aren't caught off-guard by the bank's queries.

What you don't want to do, though, is break up your big deposit into a series of smaller ones to evade reporting rules. This is called “structuring” and it's illegal even if you earned the money legitimately.

It’s also a good idea to call the bank in advance of making a large deposit. Showing up with $650,000 in cash could cause problems if the financial institution isn't prepared to handle that much all at once. Your bank can work with you to find a safe way to deposit the money.

You should also be aware that the Federal Deposit Insurance Corporation only insures up to $250,000 per person, per account, so simply depositing $650,000 into a bank account may not be the best move. You may want to put some money into different savings accounts or buy Certificates of Deposit or other investments with it so you don't risk losing funds above $250,000 if another bank collapse happens sometime in the future.

TO READ MORE:  https://www.yahoo.com/finance/news/lost-faith-banks-2009-now-115000682.html

Was Benjamin Franklin The Original Financial Guru?

Was Benjamin Franklin The Original Financial Guru?

Here are 4 bits of money advice from the Founding Father

Lou Carlozo   Sun, September 22, 2024  Moneywise

Staring out from the $100 bill, looking more like a wise old uncle than Founding Father, Benjamin Franklin seems an easy guy to like. And if anyone belongs on U.S. currency it's this colonial polymath who dished financial wisdom as fit for today as when he signed the Declaration of Independence at age 70.

Let’s start, though, by getting this myth out of the way: Franklin never exactly said, “A penny saved is a penny earned.” The line he wrote in his 1737 edition of “Poor Richard's Almanack” was this: “A penny saved is two pence clear.”

Regardless, a penny saved in 1737 would be worth 79 cents today, per the Official Data Foundation. And by offering sound advice like the above, it’s no stretch to call Franklin one of America’s original financial gurus.

Among the many things he said about personal finance, these four are drawn from “The Way to Wealth,” a collection of adages and advice published in 1758 that were imparted in previous “Almanack” writings.

No pain, no gain

“There are no gains without pains,” he wrote.

And you thought some buff weightlifter made this up. Franklin was vocal about the dangers of sloth (including excess sleep) and urged people to pursue wealth through industriousness. He cites a gripe as common then as now among people who struggle with money: high taxes. But wishing for outside factors to change, he argued, is never as effective as taking charge through diligence.

“He that lives upon hope will die fasting,” Franklin wrote, while the industrious “shall never starve … at the working man's house hunger looks in, but dares not enter.”

Consider Franklin’s counsel as an invitation to find and maintain income streams beyond your day job. Maybe start a side hustle out of your home and grow it from there.

Be frugal

“We must add frugality, if we would make our industry more certainly successful,” Franklin wrote. "You may think , perhaps, that a little tea or a little punch now and then, diet a little more costly, clothes a little finer, and a little entertainment now and then, can be no great matter, but remember, many a little makes a mickle. Beware of little expenses. A small leak will sink a great ship."

The most recent figures from the U.S. Bureau of Labor Statistics show that, in 2022, Americans spent 10.9% more on apparel and services, including 18.8% more on footwear, than the previous year.

While that’s not the same as splurging on a sea cruise, ask yourself whether slowly filling your closet points to a spending problem — that proverbial capsizing ship. Or, as Franklin lamented, “When you have bought one fine thing, you must buy 10 more.”

TO READ MORE:  https://www.yahoo.com/finance/news/benjamin-franklin-original-financial-guru-112800465.html

Suze Orman’s Top 25 Tips That Will Save You From Financial Disaster

Suze Orman’s Top 25 Tips That Will Save You From Financial Disaster

Gabrielle Olya   Thu, September 26, 2024  GOBankingRates

Suze Orman was working as a waitress and making $400 a month at 29 years old. She then decided to take a chance on a major career change and landed a job as a broker for Merrill Lynch.

Having been on both ends of the financial spectrum, Orman knows what it takes to make the leap from broke to wealthy, and is now one of the most respected voices in personal finance — as well as a New York Times bestselling author with more than 25 million books in circulation.

According to Celebrity Net Worth, she is worth some $75 million, indicating that she’s followed her own financial advice for saving, investing and preparing for retirement.

As any self-made millionaire will tell you, going from rags to riches takes hard work. It also calls for tons of tried-and-true personal finance strategies to maintain and build financial success. Here are 25 tips from Orman to steer clear of financial disaster.

Live Within Your Needs but Below Your Means

Living within your needs but below your means is the golden rule of the Suze Orman budget. Although food and shelter are needs, you might be spending too much on these essentials.

“How much you choose to spend on your basic needs is a squishy number dependent on the choices you make,” Orman wrote in a blog post. “For example, a mortgage lender may tell you that you will qualify for a $250,000 mortgage. But if you can find a great home that meets your family’s needs, and it costs $195,000 you will save a lot of money that can be used for other important goals. The $195,000 home fits your needs.”

Don’t Lease a Car — Buy Instead

“Leasing is a horrible financial move,” Orman wrote in a blog post. “It is the auto industry’s way to get you to buy a car you can’t really afford. (…) The big problem is that when you lease there’s the temptation to keep leasing forever.

“So every three years — the standard lease length — you turn in your car and lease another. That means you are signing on for never-ending monthly car payments.”

Orman explained that buying is better because once you pay off your loan, you have that extra monthly payment to build your emergency fund, contribute to a retirement account, save for a home down payment or meet another financial goal.

Stop Paying Extra for Minor Conveniences

The difference in the cost of paying for food delivery instead of cooking or hopping in an Uber instead of taking the bus might seem small, but the expense of always taking the convenient option will add up over time.

“It adds up big time,” Orman told CNBC. “Stop leasing cars, stop eating out, stop doing the (thing) that’s wasting your money and makes your life easier, because in the long run it’s going to make it harder.”

Cut Out Your Coffee Habit

“I wouldn’t buy a cup of coffee anywhere, ever — and I can afford it — because I would not insult myself by wasting money that way,” Orman told CNBC.

She believes that $3 spent daily on coffee is better off going into a retirement fund or used to meet other savings goals.

For example, if you spend $100 a month on coffee and put that money into an IRA instead, that would grow to about $1 million after 40 years given a 12% rate of return.

“You need to think about it as: You are peeing $1 million down the drain as you are drinking that coffee,” Orman said. “Do you really want to do that? No.”

Pay With Debit Instead of Credit Whenever Possible

“There is no more expensive form of bondage than spending more than you have and paying interest of 15% or more on your credit card,” Orman wrote in a blog post.

She recommends paying for everything with a prepaid debit card or a debit card that is tied to a checking account that does not have overdraft coverage.

TO READ MORE:  https://www.yahoo.com/finance/news/suze-orman-top-26-tips-200055723.html