Strategie to Make Donating an Easy Part of Your Finances
.Give Back: Strategies To Make Donating An Easy Part Of Your Finances
Cash For Tacos – June 15 2020
Do you often think about giving back by making more charitable donations, but struggle to do so?
Maybe you find it hard to let go of the money you worked so hard for.
Maybe you find it difficult to trust that your money will be used the way you think it should be.
Or maybe you just can’t figure out how to balance making donations with all of your other money goals.
We all have our own reasons for wanting to give more, yet struggling to do so. I look up to the people who find it easy to give their money away. Because for me, it takes a bit more work. I hold on to my money tightly, and donating does not come naturally to me. At this point in my life, a point where I feel secure in my finances, I want to make giving back a more intentional part of my financial plans.
Give Back: Strategies To Make Donating An Easy Part Of Your Finances
Cash For Tacos – June 15 2020
Do you often think about giving back by making more charitable donations, but struggle to do so?
Maybe you find it hard to let go of the money you worked so hard for.
Maybe you find it difficult to trust that your money will be used the way you think it should be.
Or maybe you just can’t figure out how to balance making donations with all of your other money goals.
We all have our own reasons for wanting to give more, yet struggling to do so. I look up to the people who find it easy to give their money away. Because for me, it takes a bit more work. I hold on to my money tightly, and donating does not come naturally to me. At this point in my life, a point where I feel secure in my finances, I want to make giving back a more intentional part of my financial plans.
But because giving away my money doesn’t come naturally to me, I knew I would need some financial strategies, along with some self-reflection, to intentionally incorporate it into my life. So if you find it hard to donate your money, or simply want to find a way to donate more, here is a list of things you can do to create the necessary space in your financial plans for giving back. But first, it’s helpful to try and understand why it may be hard to give.
WHY IS IT HARD TO DONATE?
During our lives, we are not always in a position where we can give as much as we would like. There are times when we need to focus on building up our own financial security. But in times where we are in a position to give financially, why do some of us struggle to give away our money when deep down we know we want to?
SCARCITY MINDSET
When we feel like a resource is in limited supply, or that there will never be enough, it’s hard for us to use it. In the case of our money, a scarcity mindset causes us to cling to it because we fear there will never be enough. A scarcity mindset makes it difficult to give money away.
I would argue that a scarcity mindset isn’t always a bad thing, though. It helps us to be more intentional with our limited resources since, in fact, they are limited. But when a scarcity mindset prevents us from rational thinking, it’s time to acknowledge it and work through it.
To continue reading, please go to the original article here:
https://www.cashfortacos.com/strategies-to-make-donating-a-part-of-your-finances/
Ways To Build Generational Wealth
.Ways To Build Generational Wealth
By Brian @ My Millennial Guide
Generational wealth is usually referred to as financial wealth that is passed down from one generation to another even though it can take other forms like traditions or heirlooms.
I’m currently in a position where I am trying to build wealth so that I can pass it down wealth from generation to generation. I’ll get into ways to build generational wealth later in the article but first I wanted to get into defining generational wealth…
What Is Generational Wealth?
Generational wealth is acquired by building generational assets which can include real estate, stocks, businesses, and many other types of assets.
Ways To Build Generational Wealth
By Brian @ My Millennial Guide
Generational wealth is usually referred to as financial wealth that is passed down from one generation to another even though it can take other forms like traditions or heirlooms.
I’m currently in a position where I am trying to build wealth so that I can pass it down wealth from generation to generation. I’ll get into ways to build generational wealth later in the article but first I wanted to get into defining generational wealth…
What Is Generational Wealth?
Generational wealth is acquired by building generational assets which can include real estate, stocks, businesses, and many other types of assets.
In the aspect of financial planning, generational wealth is a term that is geared toward passing down stable, significant financial resources for future generations.
Okay, now that we covered generation wealth, how can one grow it?
How Can I Build Generational Wealth?
To build generational wealth, generally, you need to have an income, whether as a job, career or a business. Once you have set your earning capacity, then you can adjust your thinking to shift from an income-based mentality to an asset-based one which will help you to create wealth. I published another article recently about growing your wealth here that you may found beneficial.
Basically, you need to have the right mindset and the discipline to stick to your financial goals.
This is not a one-day activity and requires consistent and diligent action, and above all the belief in what you are trying to achieve. It goes without saying that you must spend less than you earn, or top savings skills, so as to have some excess funds for investments.
However, because you want the wealth you are accumulating to last beyond one generation, you also need to empower your children with financial literacy especially budgeting and good money habits and invest in their future by setting up trusts and funds in their names.
Ways You Can Build Generational Wealth
To continue reading, please go to the original article here:
The 3 Muscle Groups Of Wealth Building
.The 3 Muscle Groups Of Wealth Building
April 18, 2019 FIRE By Mr. Bo Dangles
Welcome to the Gym of Wealth! I’m your trainer, Mr. Bo Dangles. It’s time to get to work.
It’s my job to give you the tools you need to build a nice, strong bank account that will give you all the confidence of a rhino, attract the envy and admiration of your peers, and give you the power and freedom to spend your days as you want. Everyone who goes to a real gym has their own reason for being there, but those reasons always boil down to one of three categories: They want to look better - They want to feel better - They want to do more
I know moms who exercise because want to be able to carry their kids around without feeling winded. They want to do more. I went to school with a bunch of frat guys who wanted to make their tee shirts look even tighter. They want to look better. I know a bunch of 20- and 30-somethings who are addicted to the neurochemicals, stress reduction, and better sleep that comes from exercise. They want to feel better.
Strangely enough, everyone who strives to accumulate wealth has their specific reason, but those reasons fall into the same few categories!
The 3 Muscle Groups Of Wealth Building
April 18, 2019 FIRE By Mr. Bo Dangles
Welcome to the Gym of Wealth! I’m your trainer, Mr. Bo Dangles. It’s time to get to work.
It’s my job to give you the tools you need to build a nice, strong bank account that will give you all the confidence of a rhino, attract the envy and admiration of your peers, and give you the power and freedom to spend your days as you want. Everyone who goes to a real gym has their own reason for being there, but those reasons always boil down to one of three categories: They want to look better - They want to feel better - They want to do more
I know moms who exercise because want to be able to carry their kids around without feeling winded. They want to do more. I went to school with a bunch of frat guys who wanted to make their tee shirts look even tighter. They want to look better. I know a bunch of 20- and 30-somethings who are addicted to the neurochemicals, stress reduction, and better sleep that comes from exercise. They want to feel better.
Strangely enough, everyone who strives to accumulate wealth has their specific reason, but those reasons fall into the same few categories!
If you want to build an emergency fund, layers upon layers of insurance, and to sleep better knowing that your family will be provided for even if something happens to you, you want to feel better. If you want to be able to flaunt some cash, a shiny new car, or a gold-plated toilet, you want to look better. If you want the freedom to choose how you spend your days, welcome to FIRE, and you want to do more.
Regardless of your “Why”, cement it in your brain and use that as the primary motivator to fuel your money workouts. Luckily, you don’t have to choose one of those things while leaving the others behind — strengthening your wealth muscles allow you to feel better, look better, and do more!
It’s EVERYTHING DAY in the Gym of Wealth and we’re hitting all three major muscle groups!
Upper Body – Earning - Core – Investing - Lower Body – Saving
Upper Body
When you work on your Upper Body, you’re working on increasing your EARNINGS.
Upper Body is sexy. Everyone likes to show it off. But if you only focus on Upper Body, you’ll be unbalanced. You’ll end up being shaped like a light bulb, which is definitely unsexy. Same with your finances. Most of America focuses on building their Earning muscles, because it’s all they know. You want more money? Make more money! That’s how they think. That includes everyone from the impoverished (who actually would see the most benefit by strengthening these muscles) to the C-level employees who bring in hundreds of thousands of dollars a year.
They all pick one of the “Why’s” above — Look Better, Feel Better, or Do More — and they immediately think that the only way to get to that Why is to earn more money.
To continue reading, please go to the original article here:
https://danglingthecarrot.com/blog/3-muscle-groups-of-wealth-building/
Momentum: Once an Object Gains Momentum It Tends to Stay In Motion
.Momentum: Once an Object Gains Momentum It Tends to Stay In Motion
Financial Planning Justin / June 18, 2020
If you look up inertia in the dictionary you will find its definition to be (emphasis is mine) “the resistance of any physical object to change its velocity. This includes changes to the object’s speed or direction of motion.“ Inertia is the glue preventing too many individuals from chasing their dreams, from finding and living their purpose, and from living a fulfilled life. It’s easy to want to make a change. It’s hard to make change happen.
Too often, whether it be with weight loss goals, savings goals, or career goals, individuals set an ambitious, but attainable, goal only to give up shortly after starting due to some type of set back.
They get off to a great start but life brings an unexpected challenge and they never manage to get back on track—the goal they are chasing seems too far away—and fall back into the rut they so desperately want to escape. Inertia grabs ahold again.
Momentum: Once an Object Gains Momentum It Tends to Stay In Motion
Financial Planning Justin / June 18, 2020
If you look up inertia in the dictionary you will find its definition to be (emphasis is mine) “the resistance of any physical object to change its velocity. This includes changes to the object’s speed or direction of motion.“ Inertia is the glue preventing too many individuals from chasing their dreams, from finding and living their purpose, and from living a fulfilled life. It’s easy to want to make a change. It’s hard to make change happen.
Too often, whether it be with weight loss goals, savings goals, or career goals, individuals set an ambitious, but attainable, goal only to give up shortly after starting due to some type of set back.
They get off to a great start but life brings an unexpected challenge and they never manage to get back on track—the goal they are chasing seems too far away—and fall back into the rut they so desperately want to escape. Inertia grabs ahold again.
If inertia keeps us stuck on the same path, then we must look to create momentum to break through the inertia and reach our desired path. Momentum refers to an object’s tendency to stay in motion—meaning once an object gains momentum it tends to stay in motion; inertia prevents an object from gaining momentum. They aren’t quite opposites in definition, but I consider them opposing forces.
When chasing your goals, build momentum, and build it as fast as possible—avoid inertia’s pull to keep you in place.
Stacking Wins
Building momentum can be accomplished by setting smaller, micro, goals on your way to your ultimate goal. You don’t set out to run a marathon by heading out of the house and running 26 miles on Day One of training. You’d fail. You’d get discouraged and ultimately quit, never reaching your goal. Instead, you plan, train, and build up to 26.1 miles. You start small—build your confidence, your endurance, and achieve micro-goals along the way. 1 mile, 5 miles, 10 miles…all the way up to your marathon.
Each milestone is a mini-celebration and keeps you progressing toward your goal. I can’t believe I chose a running example as my first example given my disdain for running.
Accumulating $100,000 (or $500,000, or $1million, or $50,000…pick your number), like running a marathon, doesn’t happen overnight either. Planning on going from $0 to $100,000 is setting yourself up for disappointment and ultimately, failure.
To continue reading, please go to the original article here:
https://allaboutyourbenjamins.com/financial-planning/momentum/
A father’s letter to his kid: The 9 Money and Life Lessons Most People Learn Too Late In Life
.A father’s letter to his kid: The 9 Money and Life Lessons Most People Learn Too Late In Life
Published Fri, Jun 19 2020 Morgan Housel, Contributor@MORGANHOUSEL
On June 3, 2019, my wife and I welcomed our daughter into the world. She’s barely old enough to walk, so her job (mostly eating and sleeping) hasn’t changed much. But, one day, she’ll need some money and life advice. As a father who has spent much of his career studying and writing about money, behavioral finance and business, this is what I’ll tell her:
1. Don’t underestimate the role of chance in life.
It’s easy to assume that wealth and poverty are caused by the choices we make, but it’s even easier to underestimate the role of chance in life. The families, values, countries and generations we’re born into, as well as the people we happen to meet along the way, all play a bigger role in our outcomes than most people want to admit.
While you should believe in the values and rewards of hard work, it’s also important to understand that not all success is a result of hard work, and that not all poverty is due to laziness. Keep this in mind when forming opinions about others, including yourself.
A father’s letter to his kid: The 9 Money and Life Lessons Most People Learn Too Late In Life
Jun 19 2020 By Morgan Housel, Contributor@MORGANHOUSEL
On June 3, 2019, my wife and I welcomed our daughter into the world. She’s barely old enough to walk, so her job (mostly eating and sleeping) hasn’t changed much. But, one day, she’ll need some money and life advice. As a father who has spent much of his career studying and writing about money, behavioral finance and business, this is what I’ll tell her:
1. Don’t underestimate the role of chance in life.
It’s easy to assume that wealth and poverty are caused by the choices we make, but it’s even easier to underestimate the role of chance in life. The families, values, countries and generations we’re born into, as well as the people we happen to meet along the way, all play a bigger role in our outcomes than most people want to admit.
While you should believe in the values and rewards of hard work, it’s also important to understand that not all success is a result of hard work, and that not all poverty is due to laziness. Keep this in mind when forming opinions about others, including yourself.
2. The highest dividend money pays is the ability to control time.
Being able to do what you want, when you want, where you want, with who you want and for as long as you want provides a lasting level of happiness that no amount of “fancy stuff” can ever offer.
The thrill of having fancy stuff wears off quickly. But a job with flexible hours and a short commute will never get old. Having enough savings to give you time and options during an emergency will never get old. Being able to retire when you want to will never get old. Achieving independence is our ultimate goal in life. But independence isn’t an “all-or-nothing” — every dollar you save is like owning a slice of your future that might otherwise be managed by someone else, based on their priorities.
3. Don’t count on getting spoiled.
No one can grasp the value of a dollar without experiencing its scarcity, so while your mother and I will always do our best to support you, we’re not going to spoil you. Learning that you can’t have everything you want is the only way to understand needs versus desires. This in turn will teach you about budgeting, saving, and valuing what you already have.
Knowing how to be frugal — without it hurting you — is an essential life skill that will come in handy during life’s inevitable ups and downs.
To continue reading, please go to the original article here:
7 Important Ways You Should Not Follow the Crowd Financially
.7 Important Ways You Should Not Follow the Crowd Financially
By Marc | Apr 18, 2019 | Personal Finance
Many Americans are in pretty bad shape financially. In fact, the statistics can be pretty shocking.
“Nearly half of all working-age families have zero retirement account savings,” and the median family has only $5,000 saved for retirement
57% of Americans have less than $1,000 in their savings accounts
The average household owes nearly $7,000 in credit card debt
Despite the fact that most Americans are not on the right path financially, many are still following the crowd and making decisions based on what other people are doing.
If you want something better, you need to do something different.
7 Important Ways You Should Not Follow the Crowd Financially
By Marc Personal Finance
Many Americans are in pretty bad shape financially. In fact, the statistics can be pretty shocking.
“Nearly half of all working-age families have zero retirement account savings,” and the median family has only $5,000 saved for retirement (source).
57% of Americans have less than $1,000 in their savings accounts (source).The average household owes nearly $7,000 in credit card debt (source).
Despite the fact that most Americans are not on the right path financially, many are still following the crowd and making decisions based on what other people are doing.
If you want something better, you need to do something different.
Rather than simply following what you see other people doing, you need to make decisions and take the actions that will get you to a better place financially.
Here are 7 ways that you should not be following the crowd if you want a better financial future.
1. Spending Without Purpose
Many people have no real plan or purpose for how they spend their money. Buying decisions are often made based on emotions, and emotions can be easily swayed or influenced. Emotional buying also tends to involve quick decisions.
You can see the evidence of this all around us in terms of the marketing and advertising that we’re eposed to on a daily basis. Advertisements often appeal to emotions and desires, because that type of advertising works. Companies want to convince you that you need their product or service and that you deserve it.
Bad spending habits lead to spending without purpose. Effective money management doesn’t require you to deprive yourself of nice things, but it does require you to spend your money with purpose.
What you should do instead: We all have different priorities, and purposeful spending will allow you to have money for the things that matter the most to you. Spending with purpose means that you know your priorities and that you avoid unnecessary spending on things that really aren’t important to you, leaving you with money to use in ways that matter more.
Take the time to identify your own priorities, and also think about the things that really don’t matter that much to you. Next, create a budget that minimizes expenses in the unimportant areas, and allows for enough money on the things that do matter.
2. Saving Whatever is Left
To continue reading, please go to the original article here:
10 Reasons You (Think You) Don't Need a Will
.10 Reasons You (Think You) Don't Need a Will
Allison Kade Feb 28, 2019
Money can be fun: buying stuff, being generous with our friends, planning for our glorious future.
And, sure, it can sometimes be a little less fun: paying down debt, balancing our budget, planning for the unexpected.
So, understandably, a lot of people focus on the fun stuff and put off the rest. We’ve spoken to too many people who haven’t created a last will and testament. Here are the top reasons people convince themselves they don’t need a will . . . and what you should really know.
1. What If I’m Immortal?
A last will and testament describes your wishes if you were to pass away. It can cover your property, and even name whom you’d like to take care of your kids if you were no longer around. Even if you're young now, you could still benefit; millennials need wills, too.
10 Reasons You (Think You) Don't Need a Will
Allison Kade Feb 28, 2019
Money can be fun: buying stuff, being generous with our friends, planning for our glorious future.
And, sure, it can sometimes be a little less fun: paying down debt, balancing our budget, planning for the unexpected.
So, understandably, a lot of people focus on the fun stuff and put off the rest. We’ve spoken to too many people who haven’t created a last will and testament. Here are the top reasons people convince themselves they don’t need a will . . . and what you should really know.
1. What If I’m Immortal?
A last will and testament describes your wishes if you were to pass away. It can cover your property, and even name whom you’d like to take care of your kids if you were no longer around. Even if you're young now, you could still benefit; millennials need wills, too.
But hey, if you’re immortal, then you’re right. You probably don’t need a will, if you’ll live forever. And because you’ll outlive your kids (unless they’re immortal, too!), you don’t need to worry about who to appoint as their legal guardian.
2. What if I Don’t Have a Lot of Time?
The median time for Fabric customers to fill out a will is seven minutes, and 75 percent finished within 10 minutes. After that, Fabric sends instructions on how to make the will legally binding. That, too, is something you can do in minutes. For the most part, this involves printing out your document, signing it and getting two people to witness it. The whole thing can be as simple as printing it at work and getting two coworkers to watch you sign.
3. Don’t I Need a Lawyer?
Lawyers are great. In fact, we recommend speaking to one if you have any specific questions about your personal situation. Sure enough, there are many cases when it makes sense to consult an attorney—especially if you’re planning to pass down a lot of assets, or if you have a complicated estate!
To continue reading, please go to the original article here:
https://meetfabric.com/blog/10-reasons-you-do-not-need-a-will
How To Avoid Costly Estate - Planning Minefields
.How To Avoid Costly Estate-Planning Minefields
6 Costly Estate-Planning Minefields, And How To Avoid Them
Over the years many celebrities have provided cautionary estate-planning lessons, and actor James Gandolfini, who died in June 2013 at age 51, is no exception. The actor, known for portraying mob boss Tony Soprano, left a portion of his estate, widely estimated at $70 million, to relatives and friends through his will, which became public and was criticized as being badly constructed. For one thing, it exposed some of his wealth to probate, the time-consuming and potentially costly process a legal court takes to administer financial affairs. In addition, his estate could owe millions of dollars in federal estate tax alone.
At least Gandolfini had an estate plan; fewer and fewer Americans do. In 1998, 61 percent of Americans 55 and older had a will or trust. In 2012, only about 54 percent did, says a study by Texas Tech University. Failing to take action or making the wrong moves can be costly for you and your heirs. Here are six blunders experts told us they see most often, and what to do instead:
How To Avoid Costly Estate-Planning Minefields
6 Costly Estate-Planning Minefields, And How To Avoid Them
Over the years many celebrities have provided cautionary estate-planning lessons, and actor James Gandolfini, who died in June 2013 at age 51, is no exception. The actor, known for portraying mob boss Tony Soprano, left a portion of his estate, widely estimated at $70 million, to relatives and friends through his will, which became public and was criticized as being badly constructed. For one thing, it exposed some of his wealth to probate, the time-consuming and potentially costly process a legal court takes to administer financial affairs. In addition, his estate could owe millions of dollars in federal estate tax alone.
At least Gandolfini had an estate plan; fewer and fewer Americans do. In 1998, 61 percent of Americans 55 and older had a will or trust. In 2012, only about 54 percent did, says a study by Texas Tech University. Failing to take action or making the wrong moves can be costly for you and your heirs. Here are six blunders experts told us they see most often, and what to do instead:
Minefield No. 1: You Think You’re Too Young For A Will Or Don’t Have Enough Assets To Protect
A good estate plan can save your heirs some money; it also protects you and your family while you are alive. If you don’t have a plan and you become incapacitated, someone will have to go to court to be named your guardian so that he can make medical and financial decisions for you. The process not only is unpleasant but also could easily cost $10,000 or more, says Martin Shenkman, a New York City attorney and certified public accountant. If other family members object, the process could drag out, which will cost more and could leave your bills unpaid or delay needed medical treatments.
If you die without a plan, you’ll also have no control over who becomes the guardian of your minor children or who gets your assets. “A lot of people assume that if they do nothing, everything goes to a surviving spouse,” says Deborah Cohn, an estate-planning attorney in Bethesda, Md. Instead, your property will pass to your survivors based on your state’s laws of intestacy. (You can find links to your state’s rules here.)
And if you have neglected to name beneficiaries on accounts that need them, such as retirement, life insurance, and brokerage accounts, the companies that manage those products have a default rule in their contracts’ fine print that spells out how your assets will be distributed. “It might say it goes to your surviving spouse, but it might also say it goes into your probate estate,” Cohn says. “Then your state’s intestacy law make those decisions for you, and money will be depleted to pay for probate.”
Steer clear. Get a basic estate plan in place. You’ll need a will, which states who you want to inherit any property that does not have a designated beneficiary, and name a guardian to care for young children.
To continue reading, please go to the original article here:
http://finance.yahoo.com/news/6-costly-estate-plannning-minefields-204500869.html
How To Avoid The Riches-to-Rags Debacle
.Money Lessons From Boris Becker – How To Avoid The Riches-to-Rags Debacle
June 27, 2019 By Aditya
Whether you like the sport of tennis or not, you are probably familiar with the face of a former world champion Boris Becker. A flamboyant career winning 49 singles titles and 15 doubles titles paved the way for his $29 million net worth in the year 2017.
So, how do you go from a multi-million dollar net worth to bankruptcy where you are forced to auction all your trophies and awards to pay off one’s debts ?
The answer is simple — Bad Financial Planning.
While Becker didn’t turn bankrupt overnight, his riches-to-rags story is a much needed wake up call to reevaluate our finances and strategically plan for the long term. Before you lay flat on the turf, helplessly declaring your bankruptcy, let’s understand how you can avoid this massive debacle.
Money Lessons From Boris Becker – How To Avoid The Riches-to-Rags Debacle
June 27, 2019 By Aditya
Whether you like the sport of tennis or not, you are probably familiar with the face of a former world champion Boris Becker. A flamboyant career winning 49 singles titles and 15 doubles titles paved the way for his $29 million net worth in the year 2017.
So, how do you go from a multi-million dollar net worth to bankruptcy where you are forced to auction all your trophies and awards to pay off one’s debts ?
The answer is simple — Bad Financial Planning.
While Becker didn’t turn bankrupt overnight, his riches-to-rags story is a much needed wake up call to reevaluate our finances and strategically plan for the long term. Before you lay flat on the turf, helplessly declaring your bankruptcy, let’s understand how you can avoid this massive debacle.
1. Curb Your Borrowing
50X bonus points if you sign up for our latest credit card !
A brand new SUV at only $200/month !
Personal loans at the lowest interest rates ! No Questions Asked !
Of course there will be no questions asked, because the more you borrow, the more interest you pay. In my post Plastic Money – when debt comes disguised as wealth, I have elaborated on the calculation of interest payments on the amount borrowed and how it can lead to a huge pile of debt.
Just because you can borrow money instantly through some online portal, does not mean you can use the money to travel to the most exotic destination this summer. Live within your means and only a maximum 40% of your monthly income must be allotted to paying EMI’s towards your loans. Therefore, if your monthly income is $3000, your EMI payments should be no more than $1200.
2. Do You Know Your Savings Rate ?
If your savings rate is below 25% off your monthly income, you need to start budgeting right away and cut down on unnecessary expenses. Avoid impulse purchases the moment you receive your paycheck and plan your finances for the long term.
To continue reading, please go to the original article here:
https://seekingmyutopia.com/2019/06/27/money-lessons-from-boris-becker/
How To Avoid The Riches-to-Rags Debacle
.Money Lessons From Boris Becker – How To Avoid The Riches-to-Rags Debacle
June 27, 2019 By Aditya
Whether you like the sport of tennis or not, you are probably familiar with the face of a former world champion Boris Becker. A flamboyant career winning 49 singles titles and 15 doubles titles paved the way for his $29 million net worth in the year 2017.
So, how do you go from a multi-million dollar net worth to bankruptcy where you are forced to auction all your trophies and awards to pay off one’s debts ?
The answer is simple — Bad Financial Planning.
While Becker didn’t turn bankrupt overnight, his riches-to-rags story is a much needed wake up call to reevaluate our finances and strategically plan for the long term. Before you lay flat on the turf, helplessly declaring your bankruptcy, let’s understand how you can avoid this massive debacle.
Money Lessons From Boris Becker – How To Avoid The Riches-to-Rags Debacle
June 27, 2019 By Aditya
Whether you like the sport of tennis or not, you are probably familiar with the face of a former world champion Boris Becker. A flamboyant career winning 49 singles titles and 15 doubles titles paved the way for his $29 million net worth in the year 2017.
So, how do you go from a multi-million dollar net worth to bankruptcy where you are forced to auction all your trophies and awards to pay off one’s debts ?
The answer is simple — Bad Financial Planning.
While Becker didn’t turn bankrupt overnight, his riches-to-rags story is a much needed wake up call to reevaluate our finances and strategically plan for the long term. Before you lay flat on the turf, helplessly declaring your bankruptcy, let’s understand how you can avoid this massive debacle.
1. Curb Your Borrowing
50X bonus points if you sign up for our latest credit card !
A brand new SUV at only $200/month !
Personal loans at the lowest interest rates ! No Questions Asked !
Of course there will be no questions asked, because the more you borrow, the more interest you pay. In my post Plastic Money – when debt comes disguised as wealth, I have elaborated on the calculation of interest payments on the amount borrowed and how it can lead to a huge pile of debt.
Just because you can borrow money instantly through some online portal, does not mean you can use the money to travel to the most exotic destination this summer. Live within your means and only a maximum 40% of your monthly income must be allotted to paying EMI’s towards your loans. Therefore, if your monthly income is $3000, your EMI payments should be no more than $1200.
2. Do You Know Your Savings Rate ?
If your savings rate is below 25% off your monthly income, you need to start budgeting right away and cut down on unnecessary expenses. Avoid impulse purchases the moment you receive your paycheck and plan your finances for the long term. Accounting for the following future expenses in your budgeting strategy will help you better understand attributing your savings to short term and long term goals.
Short Term Saving Goal examples : New car - House repairs - Expensive gifts for an upcoming wedding
Long Term Saving Goals examples : Child’s education - Retirement planning - Health care costs
Once you are able to visualize the amount you need in order to fund each of the above needs, the likelihood of saving more today will drastically increase.
To continue reading, please go to the original article here:
https://seekingmyutopia.com/2019/06/27/money-lessons-from-boris-becker/
Do's and Don'ts When You Increase Your Income
.Do's & Don'ts When You Increase Your Income
7/11/2019 Team Member Blog, Consumerism to Frugalism
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
While we should live within our means, most people would make very different choices if money wasn’t an option. Having said that, money should never be the end goal.
Do's & Don'ts When You Increase Your Income
7/11/2019 Team Member Blog, Consumerism to Frugalism
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
While we should live within our means, most people would make very different choices if money wasn’t an option. Having said that, money should never be the end goal.
What’s really at the heart of the drive for more money is the desire for more freedom and power: over our life and the choices we make about it, as well as our ability to influence the world in the ways we care most about.
Money is nothing more than the means to an end.
Unfortunately, most of us will not win the big lottery, start a billion dollar company, or inherit millions. This means that while our incomes may increase over time that increase will likely be gradual, and may come in the form of step or merit-based raises, bonuses, or commissions.
However, most people find themselves spending money as fast as they make it, gradual increase or not.
With these points in mind, what SHOULD you do if you find your income increasing?
Luckily, we’re here to help.
Here are 2 things you should do when you increase your income and 1 you shouldn’t.
Things You SHOULD Do :
1. Pay off Debt
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