First Things First : Why You Must Get Out Of Debt
.First Things First : Why You Must Get Out Of Debt
May 22, 2020 · by The Escape Artist · in Debt ·
Here’s a question I saw online in a financial discussion forum:
“I would like to ask some advice from you. I have recently came into a small windfall of money to the sum of £3K and wondered what best to do with it. Not a lot I know, but for my salary its quite a bit.
Initially my thoughts were to either:
– Invest into a stockmarket tracker fund?; or
– Start saving towards a deposit for a flat?
…but then I wondered whether I should use it to pay off my credit card debt or my student debt?”
This is a bit like someone asking what type of garden furniture they should be buying when their roof is on fire. Often in personal finance there is no right or wrong answer, its down to individual preferences. But here there is a correct answer and it goes something like this:
Why are you talking about investing in the stock market or buying a house?
First things first…you have CREDIT CARD DEBT and that is an EMERGENCY. You need to pay that off, right now!
Not My Priority - Investment Pointers
.Not My Priority - Investment Pointers
Dennis Friedman May 22, 2019
SOME YEARS AGO, I had a health scare—and it taught me an important lesson about my relationship with money. My primary care physician wanted me to see a hematologist. “Your white blood cells have been trending lower for the last five years,” he opined. “We need to find out what’s causing it.”
After a number of tests, the hematologist thought I might have a rare blood disease. He said the test results were inconclusive, but I fit the profile. He wanted to confirm his suspicions by performing a bone marrow biopsy. He went on to say that there was no cure for the disease, but there were drugs that could extend a patient’s life.
The doctor’s comments shook me to the core. Suddenly, I faced the possibility that my time on earth might run out far sooner than I expected. I started thinking about the things in my life that are important to me. How do I protect, experience and enjoy them?
My Five Truths
.My Five Truths
John Goodell | June 3, 2020
MANY MEMBERS of the military live in a crisis-like state. They’re frequently deployed to dangerous places. Their families often have to move every few years.
Today, that sense of crisis is shared by many others. In fact, with 23.1 million Americans unemployed as of April, a government paycheck seems stable by comparison.
How can families prep their finances for ongoing economic instability? Here are five of the money principles I advocate in my work counseling soldiers, veterans and their families:
1. Instead of expecting 7% to 10% annual investment returns—which may have occurred historically but will likely be less for the foreseeable future—try reducing your living costs by 7% to 10% and investing the difference. The compounding effect on your family’s wealth will be powerful.
You’ll “need” (a word folks use when they actually mean “want”) less to cover your living costs when you’re older, because your expenses will have already come down.
Who Actually Feels Satisfied About Money?
.Who Actually Feels Satisfied About Money?
Joe Pinsker July 21, 2019
“It’s not just how much you have—it’s what you do with it,” says one researcher who studies money and happiness.
These days, not even the rich feel rich. According to a recent survey by the financial-advisory firm Ameriprise Financial, only 13 percent of American millionaires classify themselves as wealthy. Even some of those surveyed who had more than $5 million across their bank accounts, investments, and retirement accounts said they didn’t feel rich. If multimillionaires don’t feel wealthy, who does?
I decided to go to Elizabeth Dunn, a psychology professor at the University of British Columbia and a co-author of Happy Money: The Science of Happier Spending, with my question: Once people have enough money to cover their basic needs and then some, what would make them feel satisfied—happy, even—with what they have? Dunn said she didn’t know of any academic studies that addressed this question head-on, but she did point to some related research that provides possible answers.
The Reason Many Ultrarich People Aren’t Satisfied With Their Wealth
The Reason Many Ultrarich People Aren’t Satisfied With Their Wealth
Joe Pinsker December 4, 2018
At a certain point, another million dollars doesn’t make anything newly affordable. That’s when other motivations take over.
As the number of millionaires and billionaires in the world climbs ever higher, there are a growing number of people who possess more money than they could ever reasonably spend on even the lushest goods.
But at a certain level of wealth, the next million isn’t going to suddenly revolutionize their lifestyle. What drives people, once they’ve reached that point, to keep pursuing more?
There are some good explanations, I found, after talking to a few people who’ve spent significant amounts of time in the presence of and/or researching the really, really rich. Michael Norton, a Harvard Business School professor who has studied the connections between happiness and wealth, had a particularly elegant model for understanding this pattern of behavior.
Why So Many Americans Don’t Talk About Money
.Why So Many Americans Don’t Talk About Money
The taboos vary by class, job, and circumstance.
Joe Pinsker March 2, 2020
Americans love to talk about how Americans hate to talk about money. Indeed, recent surveys from financial and market-research firms have found that in 34 percent of cohabiting couples (married or not), one or both partners couldn’t correctly identify how much money the other makes; that only 17 percent of parents with an income above $100,000 a year had told (or planned to tell) their children how much they earn or their net worth; and that people are “more comfortable” talking with friends about marital discord, mental health, addiction, race, sex, and politics than money.
These results seem to point to a society-wide gag rule that discourages the discussion of financial details. But there are caveats. The companies that tend to publish findings like these stand to gain from persuading people to talk more about their money, if not with their loved ones, then with a professional financial adviser. They’re also, therefore, more likely to be interested in the psychological drama of people who make $100,000 a year than in that of people who make less.
Find The Financial Confidence You Need To Make Smart Money Decisions
.Find The Financial Confidence You Need To Make Smart Money Decisions
March 10, 2020 By Cash For Tacos
Making financial decisions, and feeling confident about them, is no easy task. The decisions we make for our money can have long term effects on our financial well-being. And that can be a terrifying realization.
Decisions like: How much mortgage can I afford? Is this the best price I can get on airfare? How much should I be saving? Do I invest my savings? What do I invest in? Can I quit my job? Do I have enough money to retire?
These are all tough decisions, and it’s easy to stress out about making the “right” choice. If we aren’t a financial professional, money expert, or a travel hacking guru, we may not believe we have the expertise needed to make smart money choices. And this makes feeling confident in our financial decisions hard.
Financial Abuse – How Do You Identify It and Who Can Help?
.Financial Abuse – How Do You Identify It and Who Can Help? [Resources and Hotlines]
By Women Who Money Co-Founders, Vicki Cook and Amy Blacklock
Note: This post may contain triggers for those who have been in abusive relationships or been through sexual assault.
What is Financial Abuse?
Financial abuse is when the person ‘in power’ – the abuser – controls their victim’s access to money, including:
Controlling their spending
Stealing their money, credit, property, or identity
Denying them access to financial accounts and credit cards
Hiding assets from them
Keeping them from getting or keeping a job or pursuing education or training
Essentially, it’s a control tactic 99% of domestic/intimate partner violence abusers use to keep their victims trapped.
Should I Borrow From Savings To Pay Off $17,500 In Credit Card Debt?
.Should I Borrow From Savings To Pay Off $17,500 In Credit Card Debt?
May 30, 2020 By Catey Hill
Have a question about retirement? Email chill@marketwatch.com
I’m 40, will get a pension and have $60,000 saved for retirement. Should I borrow from it to pay off $17,500 in credit card debt?
Dear Catey, I am a 40-year-old law-enforcement officer and hope to retire in 13 or 14 years. At that time, I will have 30-plus years on the job with a pension giving me 70% of my current income with a cost-of-living annual percentage increase around 2% or 3%.
Additionally I have a little over $60,000 in a 457(b) plan. But I also have $17,500 in credit card debt with interest ranging from 9% and 16%. Is it a good idea to borrow from your 457(b) plan to pay off credit card debt? I think doing so would mean I was stress free from debt, plus I’d be paying myself back with interest on a five-year plan. What’s the right move? Thank you, Frank
Glossary of Personal Finance Terms
.Glossary of Personal Finance Terms
When you begin taking control of your money and reading about personal finance, you may come across terminology you aren’t familiar with. This can end up frustrating you or lead to mismanagement of your funds. And we certainly don’t want that!
Below you’ll find a fairly comprehensive list of definitions to help you grasp numerous personal finance terms. Words in color are linked to articles we’ve written on the term. Since we’ll add to this resource as time goes on, bookmark it or pin it for easy reference.
These definitions are for informational and educational purposes only. Please discuss any specific financial questions with an investment professional.
Are My Financial Fears Common? [How to Overcome 17 Money Worries]
.Are My Financial Fears Common? [How to Overcome 17 Money Worries]
By Women Who Money Co-Founders, Vicki Cook and Amy Blacklock
You probably didn’t stress out about money as a kid. If you got an allowance, earned money, or received cash as a gift, it usually meant you could buy something you wanted.
Even if your parents made you save part of it or set aside money to donate to others, spending money was exciting and made you feel grown-up.
As an adult, your enthusiasm for money and spending may have faded. You may be anxious and concerned about your finances if you are paying for all the stuff – housing, transportation, insurance, student loans, food, utilities, clothing, and more.
Common financial fears include: