When Is an Emergency Loan a Good Option?
.When Is an Emergency Loan a Good Option?
Trent Hamm, Jun 9, 2020 Founder of The Simple Dollar
Sometimes emergencies happen in life, and the best advice I have for everyone is to plan as though an emergency will happen sooner rather than later. Start building an emergency fund now, so that you have cash when things go awry and you really need it.
That’s great advice, of course, but it’s not helpful for someone facing an emergency right this moment before they even have the opportunity to start building their own emergency fund. The reality is that we live in a time with high unemployment, and even before that, four out of five Americans lived paycheck to paycheck.
The best long term solution is to prepare for emergencies, but what are the options in the short term?
When Is an Emergency Loan a Good Option?
Trent Hamm, Jun 9, 2020 Founder of The Simple Dollar
Sometimes emergencies happen in life, and the best advice I have for everyone is to plan as though an emergency will happen sooner rather than later. Start building an emergency fund now, so that you have cash when things go awry and you really need it.
That’s great advice, of course, but it’s not helpful for someone facing an emergency right this moment before they even have the opportunity to start building their own emergency fund. The reality is that we live in a time with high unemployment, and even before that, four out of five Americans lived paycheck to paycheck.
The best long term solution is to prepare for emergencies, but what are the options in the short term?
What about credit cards?
In many situations like these, people turn to credit cards. This solution offers the big advantage of being incredibly convenient: you just swipe your card or type in your number and the emergency is fixed, for now.
That big advantage comes paired with some disadvantages, however.
First of all, credit cards don’t work in all emergencies. They don’t help in identity theft situations, in situations where you can’t solve the problem with a credit card or when the credit network is unavailable (like after a natural disaster). They also don’t help if your card is already maxed out, or if you have poor credit and don’t have one.
Second, credit cards often come with very high interest rates. There are ways to mitigate this with zero interest balance transfer offers, but it’s still a difficulty to deal with, and if you don’t have strong credit, that option may not be available and you’re just stuck paying a very high interest rate.
In the end, credit cards are great for smaller emergencies where you can pay it off within a month or two and not accrue much interest on the card. They’re not good for large emergencies, and there are many situations where credit cards may be an unavailable option.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/loans/blog/when-is-an-emergency-loan-a-good-option/
3 Things You Should Consider Before Selling Your House for Cash
.3 Things You Should Consider Before Selling Your House for Cash
By Toni Husbands on 20 February 20190 comments
In August of 2017, an investor called us and offered to buy our condo for cash. We didn't have it listed for sale. The condo was in great condition, the rent we charged covered expenses, and it was in a very nice area that consistently attracted stable tenants. My husband and I took about five minutes to confer before deciding to accept the offer.
The offer was cash. We estimated it was about $10,000 less than we might have made through a traditional sale. After accounting for realtor commissions, taxes, and the time required to sell our condo; we felt the convenience of an as-is cash sale was worth it. The closing took less than two weeks. By the end of August, we had an extra $35,000 in the bank.
Selling your house for cash can be a dream come true. In these cases, investors are looking for a quick transaction. They aren't generally concerned with repairs. Real estate agents are not involved, so the cost of a broker's commission is waived. In my case, the inspection walkthrough was merely a formality.
3 Things You Should Consider Before Selling Your House for Cash
By Toni Husbands on 20 February 20190 comments
In August of 2017, an investor called us and offered to buy our condo for cash. We didn't have it listed for sale. The condo was in great condition, the rent we charged covered expenses, and it was in a very nice area that consistently attracted stable tenants. My husband and I took about five minutes to confer before deciding to accept the offer.
The offer was cash. We estimated it was about $10,000 less than we might have made through a traditional sale. After accounting for realtor commissions, taxes, and the time required to sell our condo; we felt the convenience of an as-is cash sale was worth it. The closing took less than two weeks. By the end of August, we had an extra $35,000 in the bank.
Selling your house for cash can be a dream come true. In these cases, investors are looking for a quick transaction. They aren't generally concerned with repairs. Real estate agents are not involved, so the cost of a broker's commission is waived. In my case, the inspection walkthrough was merely a formality.
The as-is cash closing was also a piece of cake. The investors who contacted us were the building's property managers. They already owned other rental units in the building, so we were able to verify their legitimacy quickly.
However, all that glitters is not gold. This industry is rife with scammers looking to swindle you, and you should be careful working with people who advertise a service to buy houses for cash on traditional media sources, online, or even street corners (we've all seen the signs nailed to light posts).
If you're considering selling your house for cash to an investor, make sure you do your homework, and back away if you detect any of the following red flags.
It's a foreign investor
People who contact you from foreign countries offering to buy your house sight unseen should set off alarm bells. In some cases, scammers submit legal-looking documents or send you to websites that look professional. They might say they're moving to another country for work.
To continue reading, please go to the original article here:
https://www.wisebread.com/3-things-you-should-consider-before-selling-your-house-for-cash
How Becoming the Breadwinner Changed My Perspective on Money
.How Becoming the Breadwinner Changed My Perspective on Money
By Sarah Li Cain — Apr 14, 2020
My marriage has always been equal with regard to decision-making. That’s why it pains me to admit how much I relied on my husband to handle the paperwork for our finances a few years ago.
Maybe it’s because I was a Canadian living in the States. Perhaps it was impostor syndrome.
Whatever the reason, I thought as long as my husband had a sizable life insurance policy, that was all that mattered. (What is life insurance?)
I’d quit my job as a teacher when we moved and wasn’t exactly contributing to the household finances. I thought life insurance was for those who were earning a regular salary (like my husband) and there were others who would need the payout (like me).
Sure, I was earning a bit of side hustle income as a freelance writer, but at that point it was barely enough to pay for childcare.
Then my career as a freelancer took off and I surpassed my husband’s income, making more than twice his take home pay! My earnings flowed toward the mortgage, extra house payments, retirement savings and our son’s future college expenses.
How Becoming the Breadwinner Changed My Perspective on Money
By Sarah Li Cain — Apr 14, 2020
My marriage has always been equal with regard to decision-making. That’s why it pains me to admit how much I relied on my husband to handle the paperwork for our finances a few years ago.
Maybe it’s because I was a Canadian living in the States. Perhaps it was impostor syndrome.
Whatever the reason, I thought as long as my husband had a sizable life insurance policy, that was all that mattered. (What is life insurance?)
I’d quit my job as a teacher when we moved and wasn’t exactly contributing to the household finances. I thought life insurance was for those who were earning a regular salary (like my husband) and there were others who would need the payout (like me).
Sure, I was earning a bit of side hustle income as a freelance writer, but at that point it was barely enough to pay for childcare.
Then my career as a freelancer took off and I surpassed my husband’s income, making more than twice his take home pay! My earnings flowed toward the mortgage, extra house payments, retirement savings and our son’s future college expenses.
This new reality forced me to think about what would happen if I were gone. Could my husband afford the mortgage without my income? Could he retire comfortably without my future financial contributions? What would happen to my son’s college fund if I weren’t there?
The shift to being a breadwinner forced me to stop being so scared about tackling my estate planning. After all, I didn’t want to leave my family in a financial mess if I were to pass away. Or worse, if my husband and I both passed away and my young son was left to fend for himself.
I was still nervous, but my husband and I got our paperwork in order. It was way more emotional than anticipated (especially when it came to deciding on guardianship) but sorting out our paperwork ended up being invaluable.
Deciding on a Life Insurance Policy
I was still pondering how my role as a breadwinner would change our family dynamics when one of my friend’s relatives suddenly passed away. Watching my friend grieve was gut-wrenching.
Piling complications on top of grief, this relative’s surviving spouse couldn't afford the funeral costs, and Social Security wasn’t enough to cover her living expenses. This relative had to beg family for financial help.
My friend and I chatted for a good while about how we wouldn’t want our spouses to be in the same situation. This convinced me to pick a life insurance policy that reflected the fact I am contributing so much financially. I wanted to ensure that the payout would more than cover our mortgage and our son’s college expenses. Full-time childcare isn’t exactly cheap so I wanted to make sure there were enough funds to cover that amount.
To continue reading, please go to the original article here:
https://meetfabric.com/blog/how-becoming-the-breadwinner-changed-my-perspective-on-money
How Unpaid Debt Is Handled When A Person Dies
.How Unpaid Debt Is Handled When A Person Dies
May 28 2020 Sarah O’Brien@SARAHTGOBRIEN
Key Points
*Creditors generally try to collect what’s owed to them by going after the decedent’s estate during a process called probate.
*There are instances, however, where the surviving spouse, or another heir, may be legally responsible.
*Some assets don’t count as part of a person’s estate for probate purposes.
It’s not unusual for a person to pass away and leave behind some unpaid debt.
For the heirs — typically the surviving spouse or children — the question often is what, exactly, happens to those obligations. The answer: It depends on both the type of debt and the laws of the state.
A person’s assets — no matter how meager or massive — become their “estate” at death. That includes their financial accounts, possessions and real estate. And, generally speaking, it’s the estate that creditors go after when they try to collect money that they’re owed.
How Unpaid Debt Is Handled When A Person Dies
May 28 2020 Sarah O’Brien@SARAHTGOBRIEN
Key Points
*Creditors generally try to collect what’s owed to them by going after the decedent’s estate during a process called probate.
*There are instances, however, where the surviving spouse, or another heir, may be legally responsible.
*Some assets don’t count as part of a person’s estate for probate purposes.
It’s not unusual for a person to pass away and leave behind some unpaid debt.
For the heirs — typically the surviving spouse or children — the question often is what, exactly, happens to those obligations. The answer: It depends on both the type of debt and the laws of the state.
A person’s assets — no matter how meager or massive — become their “estate” at death. That includes their financial accounts, possessions and real estate. And, generally speaking, it’s the estate that creditors go after when they try to collect money that they’re owed.
“Fortunately for surviving spouses or other beneficiaries, in most cases that debt isn’t something they’d be responsible for,” said certified financial planner Shon Anderson, president of Anderson Financial Strategies in Dayton, Ohio.
However, there are some exceptions.
First, though, some basics.
The process of paying off all your debt after your death and then distributing any remaining assets from your estate to heirs is called probate. Each state has its own laws governing how long creditors have to make a claim against the estate during that time. In some places it’s a few months. In other states, the process can last a couple of years.
Each state also has its own set of rules for prioritizing debt that should be paid from the estate, said Steven Mignogna, a fellow with the American College of Trust and Estate Counsel.
“In most states, funeral expenses take priority, then the cost of administering the estate, then taxes and then most states include hospital and medical bills,” Mignogna said.
However, he added, not all of a person’s assets necessarily are counted as part of an estate for probate purposes.
For instance, with life insurance policies and qualified retirement accounts (e.g., a 401(k) or individual retirement account), those assets go directly to the person named as the beneficiary and are not subject to probate. Additionally, assets placed in certain types of trusts also pass on outside of probate, as does jointly owned property (e.g., a house) as long as it is titled properly.
In fact, a person could pass away with an insolvent estate — that is, one lacking the means to pay off its liabilities — and yet have passed on assets that didn’t go through probate and generally can’t be touched by creditors.
To continue reading, please go to the original article here:
https://www.cnbc.com/2020/05/28/heres-how-unpaid-debts-are-handled-when-a-person-passes-away.html
A Second Coronavirus Stimulus Check May Be Coming
.A Second Coronavirus Stimulus Check May Be Coming
Megan Henney, Fox Business June 12, 2020
A second coronavirus stimulus check may be coming. Here's how much money you could get
Earlier this week, Treasury Secretary Steven Mnuchin suggested the Trump administration was considering sending Americans another round of stimulus checks to offset the financial pain caused by the coronavirus pandemic and the related economic lockdown.
"I think we’re going to seriously look at whether we want to do more direct money to stimulate the economy," Mnuchin said Wednesday while testifying before the Senate Committee on Small Business and Entrepreneurship.
A Second Coronavirus Stimulus Check May Be Coming
Megan Henney, Fox Business June 12, 2020
A second coronavirus stimulus check may be coming. Here's how much money you could get
Earlier this week, Treasury Secretary Steven Mnuchin suggested the Trump administration was considering sending Americans another round of stimulus checks to offset the financial pain caused by the coronavirus pandemic and the related economic lockdown.
"I think we’re going to seriously look at whether we want to do more direct money to stimulate the economy," Mnuchin said Wednesday while testifying before the Senate Committee on Small Business and Entrepreneurship.
It's unclear what specific policies the White House is exploring, but there are several proposals — from Democrats and Republicans alike — on the table that would get money directly into the hands of a significant chunk of Americans.
One such package, the $3 trillion HEROES Act passed by House Democrats in May, would send another round of $1,200 checks to American adults and children and expand the number of people who are eligible to receive the government aid. One criticism of the CARES Act, which sent up to $1,200 to Americans earning less than $75,000, was that it did not include older teens and college students.
But the HEROES Act broadens the scope of the money to include those individuals. The payments would be capped at $6,000 per household.
To see how much money you would receive through the HEROES Act, you can use this online calculator provided by Omni.
Some Democrats have proposed a more aggressive approach to stimulus measures. At the beginning of May, Sens. Kamala Harris, D-Calif., Bernie Sanders, I-Vt., and Ed Markey, D-Mass., unveiled a bill that would give most Americans a monthly payment of $2,000 until the virus begins to fade — a nod to universal base income championed by former Democratic presidential candidate Andrew Yang.
Similar to a House bill proposed in mid-April, the senators called for $2,000 cash payments to every American who earns less than $120,000. It would expand to $4,000 for married couples and also provided an extra $2,000 for each child up to three. That means families with three children could theoretically receive $10,000 per month.
Republicans, meanwhile, have pitched a back-to-work bonus for unemployed Americans returning to their jobs.
More than 44 million Americans have lost their jobs as a result of the coronavirus-induced economic shutdown, a rate unseen since the Great Depression. But Republicans have voiced concern that extra unemployment benefits of $600 a week are actually discouraging some workers from returning to their jobs. The sweetened benefits are set to expire at the end of June.
To continue reading, please go to the original article here:
https://www.yahoo.com/news/second-coronavirus-stimulus-check-may-134613683.html
How Fast Can You Become a Millionaire?
.How Fast Can You Become a Millionaire?
Play the best online investing game — CASHFLOW® Classic — to begin your exit from the Rat Race… for free! CASHFLOW Classic is the free online investing game that makes learning to invest fun.
We believe the best way to learn isn’t done reading textbooks or listening to lectures. We believe the best learning is accomplished by doing the real thing.
For example, if you want to learn how to ride a bike, reading a book or listening to a lecture won’t help very much. Sure, you can learn some high-level theory about balance, stability, and the structural integrity of the bike… but it won’t help you overcome your fears of falling down. The only way to learn how to ride a bike is to go outside, hop on a bike and start to pedal. Investing works the same way.
How Fast Can You Become a Millionaire?
Play the best online investing game — CASHFLOW® Classic — to begin your exit from the Rat Race… for free! CASHFLOW Classic is the free online investing game that makes learning to invest fun.
We believe the best way to learn isn’t done reading textbooks or listening to lectures. We believe the best learning is accomplished by doing the real thing.
For example, if you want to learn how to ride a bike, reading a book or listening to a lecture won’t help very much. Sure, you can learn some high-level theory about balance, stability, and the structural integrity of the bike… but it won’t help you overcome your fears of falling down. The only way to learn how to ride a bike is to go outside, hop on a bike and start to pedal. Investing works the same way.
You can read books about investing or listen to podcasts from day traders or watch YouTube videos on how to use stock trading software... but the only way to learn how to invest in the stock market or purchase your first real estate investment property is to do it.
Or is it?
Scraping your knee after falling down might hurt, but it won’t leave you in financial ruin like an investing mistake can. That’s why we designed CASHFLOW, to teach the basics of investing through real world scenarios which allow you to test your financial knowledge and learn from your mistakes—all without losing your own money.
Why Should You Play CASHFLOW Classic? Playing the CASHFLOW Classic free online game will help you… Learn how to invest without losing your money Why haven’t you started to invest? Is it lack of capital? Finding time?
Perhaps, but we believe the primary reason most people never begin investing isn’t a lack of money or motivation but overcoming their fears of making a mistake.
Unlike in real life, when you play CASHFLOW Classic, you won’t feel the painful humiliation—and monetary loss—you experience when you make the wrong pick in the stock market or your real estate investment doesn’t work out the way you thought it would.
Practice buying and selling stocks or investing in real estate for capital gains or cash flow as many times as you like. Simulate how you would handle real investing opportunities before you shell out your hard earned money. It’s fun, safe, and free to play.
To continue reading, please go to the original article here:
What Does It Mean To Be Wealthy?
.What Does It Mean To Be Wealthy?
Written byRobert Kiyosaki Last updated:June 08, 2020
Wealthy or rich, it's your choice.
How much money would it take for you to feel rich?
Investment firm, Charles Schwab asked 1,000 Americans that very question. The answer? $2.4 million.
There some interesting findings in the survey about what being rich meant for people.
Spending time with family (62 percent)
Having time to myself (55 percent)
Owning a home (49 percent)
Eating out or having meals delivered (41 percent)
Subscription services like movie/TV and music streaming (33 percent)
Other things that make people feel rich in their daily lives include owning the latest tech gadgets (27 percent), having a gym membership or personal trainer (17 percent), and using a home cleaning service (12 percent).
What Does It Mean To Be Wealthy?
By Robert Kiyosaki Last updated:June 08, 2020
Wealthy or rich, it's your choice.
How much money would it take for you to feel rich?
Investment firm, Charles Schwab asked 1,000 Americans that very question. The answer? $2.4 million.
There some interesting findings in the survey about what being rich meant for people.
Spending time with family (62 percent)
Having time to myself (55 percent)
Owning a home (49 percent)
Eating out or having meals delivered (41 percent)
Subscription services like movie/TV and music streaming (33 percent)
Other things that make people feel rich in their daily lives include owning the latest tech gadgets (27 percent), having a gym membership or personal trainer (17 percent), and using a home cleaning service (12 percent).
And almost half of those surveyed felt that saving money and investing was the way to achieve their definition of rich.
The difference between rich and wealthy
When I was a young boy, my rich dad told me about the difference between being rich and being wealthy.
“Many people think that being rich and being wealthy are the same thing,” said rich dad. “But there is a difference between the two: The rich have lots of money but the wealthy don’t worry about money.”
Almost Half Of People Surveyed Feel That Saving Money And Investing Was The Way To Achieve Their Definition Of Rich.
What rich dad meant was that while being rich might mean you have lots of money, you also might have lots of expenses that keep you up at night. These could be expenses like your mortgage, your car payment, credit cards, private school tuitions, and more. In short if you’re rich, you’re often trying to keep up with the Rat Race. (The Rat Race is a horrible place to be, which is why my board game, CASHFLOW® is designed to help you get out of it).
Often if you’re rich, you have a high paying job to pay for the Rat Race, and you have to get up to work every day. You probably also have a fear of getting fired or laid off. What would happen if you didn’t have your job and your salary? That’s often a scary proposition of rich people.
This is why I find interesting what the people surveyed by Charles Schwab consider being rich. With the exception of the first two, which had to do with more free time, they were about liabilities like eating out, subscription services, and gadgets. Truly the worries of those in the Rat Race.
This signals that most people do not understand what it means to be truly wealthy. In fact, most people are confusing wealthy with being rich, that is with having lots of money to spend but no real financial independence.
Being wealthy means you don’t have these worries. Why? What’s the difference?
The definition of being wealthy
To continue reading, please go to the original article here:
12 Money Tips for the Newly Single
.12 Money Tips for the Newly Single
By Mr Ssc June 9, 2020
Even if it’s for the best, ending a relationship can hurt in so many different ways. While most people are discussing the emotional fallout, which alone can be bad enough, conversations around the financial repercussions when ending a relationship aren’t as popular. Hopefully these money tips for the newly single will help you find your footing as you step into this new stage of life.
My Best Money Tips for the Newly Single
The challenges someone who’s newly single faces depends on the financial entanglement they had with their ex partner. Whether or not they lost money separating from them or took on any extra debt in the process also has a big effect on their immediate finances. For example, a couple who’s dating might just go their separate ways and be done with each other, but a married couple will have a lot more to split up.
If you’re leaving a long term relationship or marriage, and especially if there’s kids involved, it can be financially complex when you become newly single. Here’s some tips and things to keep in mind as you navigate your money post break up.
12 Money Tips for the Newly Single
By Mr Ssc June 9, 2020
Even if it’s for the best, ending a relationship can hurt in so many different ways. While most people are discussing the emotional fallout, which alone can be bad enough, conversations around the financial repercussions when ending a relationship aren’t as popular. Hopefully these money tips for the newly single will help you find your footing as you step into this new stage of life.
My Best Money Tips for the Newly Single
The challenges someone who’s newly single faces depends on the financial entanglement they had with their ex partner. Whether or not they lost money separating from them or took on any extra debt in the process also has a big effect on their immediate finances. For example, a couple who’s dating might just go their separate ways and be done with each other, but a married couple will have a lot more to split up.
If you’re leaving a long term relationship or marriage, and especially if there’s kids involved, it can be financially complex when you become newly single. Here’s some tips and things to keep in mind as you navigate your money post break up.
Change all your passwords and security questions
When you’re in a relationship with someone for a long time you get to know each other pretty well. That trust usually extends to sharing your passwords or at least leaving them out in the open. On top of that, they probably know enough about you to guess your security questions to do a password reset.
While your ex is probably not going to do anything even if they have your password, it’s always better to be safe when it comes to internet security. You should also force any banking websites or apps to log out of all devices, too.
Make a detailed list of your debt and assets
Identify what’s shared and what belongs to just you. That way you have it to reference as you sort life out and divide things up with your ex. If a lawyer’s involved or you’re going through a divorce you’re going to need all this information, but it’s good to have under any circumstances.
Open up a separate bank account
If you haven’t already, open yourself up a separate bank account that’s just in your name. Do this even if you haven’t physically separated from your ex or are just in the early stages of splitting up. Start moving over all your deposits and bill payments to your new account.
It’s also important to save a backup of any transactions or other information you might need from your joint account, too. Especially if you’ll need those for your taxes.
To continue reading, please go to the original article here:
http://www.slowlysippingcoffee.com/12-money-tips-for-the-newly-single/
How to Cope With Being Broke, Angry, and Ashamed
.How to Cope With Being Broke, Angry, and Ashamed
My Two Cents May 29, 2020 By Charlotte Cowles
Before Amanda Clayman became a therapist, she grappled with serious debt in her 20s. When she got her degree in social work in 2005, she decided to help people understand how money is tied to their emotional needs. “I wanted to say to as many people as possible, ‘Hey, it doesn’t have to be like this,’” she told me.
While the field of financial therapy is still relatively new, Clayman says a lot of therapists ask how they can address their clients’ financial anxieties. Her answer is simple: “’Talk more about money!’ I’m not offering financial advice.” Today, as the entire world grapples with the financial fallout of the pandemic — layered on top of the devastating toll of human loss — her work is more in demand than ever. In addition to treating patients, she recently partnered with the podcast Death, Sex & Money to launch a three-part series, Financial Therapy. We talked about how she overcame her own struggles with money and what she’s telling her clients who feel overwhelmed by financial stress and uncertainty.
How did you get into financial therapy in the first place?
How to Cope With Being Broke, Angry, and Ashamed
My Two Cents May 29, 2020 By Charlotte Cowles
Before Amanda Clayman became a therapist, she grappled with serious debt in her 20s. When she got her degree in social work in 2005, she decided to help people understand how money is tied to their emotional needs. “I wanted to say to as many people as possible, ‘Hey, it doesn’t have to be like this,’” she told me.
While the field of financial therapy is still relatively new, Clayman says a lot of therapists ask how they can address their clients’ financial anxieties. Her answer is simple: “’Talk more about money!’ I’m not offering financial advice.” Today, as the entire world grapples with the financial fallout of the pandemic — layered on top of the devastating toll of human loss — her work is more in demand than ever. In addition to treating patients, she recently partnered with the podcast Death, Sex & Money to launch a three-part series, Financial Therapy. We talked about how she overcame her own struggles with money and what she’s telling her clients who feel overwhelmed by financial stress and uncertainty.
How did you get into financial therapy in the first place?
I was raised by parents who were really anxious about money, but I didn’t know or notice. I thought they were just really careful with their finances. So, I inherited a good deal of that anxiety, and I wasn’t conscious of how that led to me to do certain things. As a young adult, I was really impulsive with spending, and I got into a lot of credit card debt. I was super ashamed of it; nobody knew.
What kind of debt are we talking?
At my rock bottom, I owed about $31,000 in today’s dollars. But I’d basically lost track because I would use a convenience check from one credit-card company to pay another one. My bills were just eating each other. This was also in the late ’90s, when it was possible to wrack up a huge amount of debt without really noticing because there were such low interest rates.
At the same time, my life was a fabulous mess. I moved to New York when I was 22, with no savings, and that was the beginning of my debt because I put my security deposit and broker’s fee on a credit card.
I worked in nightlife for the first decade of my career, in the promotions department, putting on parties to get people to come to clubs. And then for different lifestyle brands, like cars and alcohol and other companies, sponsoring events. I was an expert in motivating people to spend money on things. Of course, that marketing was also affecting me personally, which I totally didn’t see, until I finally did.
What kinds of things were you spending on?
I wasn’t living a lavish lifestyle. I was broke. I hung out at the club where I worked. I didn’t go out to expensive dinners. I was just a kid in New York paying a huge amount of rent and not making much money. I made $25,000 a year at my first job. But even after I got better jobs, I just didn’t have control over my money. I never had a budget. I never had an idea of how much I should be spending on anything.
To continue reading, please go to the original article here:
https://www.thecut.com/2020/05/how-to-cope-with-being-broke-angry-and-ashamed.html
Money Advice for the Extremely Broke
.Money Advice for the Extremely Broke and Deeply Screwed (Thanks COVID-19!)
By Katie Way Apr 17 2020,
If you're laid off and panicking about how to eat AND pay rent, personal finance experts have some practical options and advice for you.
It is almost too much to have to think, in the midst of all the chaos and fear surrounding the COVID-19 pandemic, about finding a new job. But, for at least 22 million Americans who’ve been laid off as a result of widespread business closures and shelter-in-place mandates, that’s reality right now.
And the layoffs don’t seem like they’re going to stop anytime soon, either. According to a report from Data For Progress, 52 percent of workers under the age of 45 have had their income negatively impacted as a result of this crisis, and some economists predict our current rate of joblessness could actually surpass the unemployment rate during the Great Depression.
So, yes, we may be living in a crisis that rivals a period in American history when people were eating dust (?) to survive, but at least we’re doing it together. Awesome!
Money Advice for the Extremely Broke and Deeply Screwed (Thanks COVID-19!)
By Katie Way Apr 17 2020,
If you're laid off and panicking about how to eat AND pay rent, personal finance experts have some practical options and advice for you.
It is almost too much to have to think, in the midst of all the chaos and fear surrounding the COVID-19 pandemic, about finding a new job. But, for at least 22 million Americans who’ve been laid off as a result of widespread business closures and shelter-in-place mandates, that’s reality right now.
And the layoffs don’t seem like they’re going to stop anytime soon, either. According to a report from Data For Progress, 52 percent of workers under the age of 45 have had their income negatively impacted as a result of this crisis, and some economists predict our current rate of joblessness could actually surpass the unemployment rate during the Great Depression.
So, yes, we may be living in a crisis that rivals a period in American history when people were eating dust (?) to survive, but at least we’re doing it together. Awesome!
It’s hard not to panic while gazing into the maw of a recession, a national financial crisis morbidly in sync with a personal one. But panicking, while potentially cathartic, won’t help pay the rent (and that little $1,200 check might not help much, either). VICE asked a handful of financial experts about what some actionable steps might look like for the truly, madly, deeply financially fucked among us.
I just got laid off after living paycheck to paycheck, and I don’t have a palatial family home near a body of water where I can squat until this thing is over—like millions of other Americans , I’m ** and I’m freaking out! What do I do?
Kelsey Sheehy, personal finance expert, NerdWallet: This is not a normal time for anyone, but it's especially daunting for people who feel like they were already on shaky financial ground to begin with.
I mean, you're separated from friends and family, from your support system. You're not sure if or when you're going to be able to return to work, when you're going to have money coming in. And you still have all of these other financial obligations looming over your head!
So I think the first step I have been advising people to take is just take a deep breath, acknowledge that yes, this is a lot, and then start to focus on putting out the fires where you can.
To continue reading, please go to the original article here:
https://www.vice.com/en_us/article/dygmdq/financial-advice-for-unemployed-extremely-broke-covid-19
Ten Harsh Truths About This Recession You Need to Get Used To
.Ten Harsh Truths About This Recession You Need to Get Used To
The brutal reality of how your life will feel going through these uncertain times.
By Tim Denning June 8 2020
Eat. Sleep. Pee. Repeat.
That’s what my life feels like during this recession right now. It’s repetitive. We’re waiting to hear the verdict. “How bad is it, your honor?” Nobody knows — not even Warren Buffett.
Some of us already have a one-way ticket to wreck city. And some of us might actually do better because of the recession. It’s hard to tell. Everybody is guessing, even CNBC Finance.
Pausing the economy for an extended period of time and locking people in their homes has never been done before. The graphs from The Great Depression or 2008 recession may not apply to this one.
The recession is going to be tough no matter how much money you had before it all started. Having lived through the last recession, here are a few harsh truths (not financial advice).
Blaming the Recession Won’t Help You
If you get caught in the economic cyclone, blaming the recession won’t help you. It’s like blaming a fortuneteller for your future failures.
Ten Harsh Truths About This Recession You Need to Get Used To
The brutal reality of how your life will feel going through these uncertain times.
By Tim Denning June 8 2020
Eat. Sleep. Pee. Repeat.
That’s what my life feels like during this recession right now. It’s repetitive. We’re waiting to hear the verdict. “How bad is it, your honor?” Nobody knows — not even Warren Buffett.
Some of us already have a one-way ticket to wreck city. And some of us might actually do better because of the recession. It’s hard to tell. Everybody is guessing, even CNBC Finance.
Pausing the economy for an extended period of time and locking people in their homes has never been done before. The graphs from The Great Depression or 2008 recession may not apply to this one.
The recession is going to be tough no matter how much money you had before it all started. Having lived through the last recession, here are a few harsh truths (not financial advice).
Blaming the Recession Won’t Help You
If you get caught in the economic cyclone, blaming the recession won’t help you. It’s like blaming a fortuneteller for your future failures.
The recession hits us all and all you can do is focus on what you can control:
How you think about the recession
What you do in the recession
The effort you spend revitalizing your skills
The way you interact with others
The recession might throw you off your game, but it’s not the recession’s fault if you fall down and stay down.
Don’t Accept a One-Way Ticket to Wreck City
What is wreck city?
Gambling, speculating, followed by your worst nightmare: leverage.
I was reading the other day that more retail investors than ever are going in and out of the stock market trying to make a quick buck so they can retire. Many of these people are signing up for financial platforms that come bundled with huge amounts of leverage.
Leverage equals debt. For example, you invest $2000 into the stock market and the platform you’re using gives you $10,000 of stocks. If the stocks go up 5%, then you get 5% back on $10,000, not $2000. It’s great if your stocks go up. But if stocks do down, well, you experience the toxic effects of decay.
Decay is where the performance of your investment declines because of the expense ratio, which is higher than normal to compensate for the fact you borrowed some of the original money you invested. In simple terms, fees are eating away your investment returns.
Just because we’re in a recession, doesn’t mean you should invest money you don’t have or take big financial risks without the education to back them up. If you don’t know what you’re doing when it comes to investing, it’s a good idea to stay away from the markets or get professional advice.
Now is Not the Time to Be Complaining
To continue reading, please go to the original article here: