Opinion: How To Protect Your Money — At Every Age
.Opinion: How To Protect Your Money — At Every Age
Outside the Box Published: July 29, 2020 By Stephen Augstell
Learning from mistakes in uncertain times
Growing up, my friend’s mom always gave me good advice. When things went terribly wrong, Mrs. Brown would say, “It’s a learning experience, Stephen.” I realized that the experience, however painful, could serve me well in the end.
80% of older Americans can't afford to retire - COVID-19 isn't helping The fallout of COVID-19 has yet to be fully measured, but it’s fair to say that most of us have been impacted in some way — some more than others. However, what we learn from challenging occurrences can help us manage risks going forward.
In these uncertain times, the risks you face depend on where you are along your course toward reaching your goals. Whether you’re just starting out and in your 20s, or you are older and further along your path, consider the following measures to help mitigate the damage of the next unforeseeable event.
Opinion: How To Protect Your Money — At Every Age
Outside the Box Published: July 29, 2020 By Stephen Augstell
Learning from mistakes in uncertain times
Growing up, my friend’s mom always gave me good advice. When things went terribly wrong, Mrs. Brown would say, “It’s a learning experience, Stephen.” I realized that the experience, however painful, could serve me well in the end.
80% of older Americans can't afford to retire - COVID-19 isn't helping The fallout of COVID-19 has yet to be fully measured, but it’s fair to say that most of us have been impacted in some way — some more than others. However, what we learn from challenging occurrences can help us manage risks going forward.
In these uncertain times, the risks you face depend on where you are along your course toward reaching your goals. Whether you’re just starting out and in your 20s, or you are older and further along your path, consider the following measures to help mitigate the damage of the next unforeseeable event.
In your 20s
• Protect your FICO score with a line of credit attached to your checking account. Overdrafts are costly and can lead to all sorts of credit problems down the road. A low FICO score can severely limit your ability to fully leverage your income.
• Open a Health Savings Account. You can qualify if you have a high deductible health insurance plan. Contributions are tax deductible and growth in the account is tax-free if withdrawals are used for qualified medical expenses.
• Build your budget. Know how much you need to survive.
• Keep an emergency fund to pay for an unexpected expense or to buy you the time necessary to secure your next job.
•Take full advantage of work-related benefits such as matching contributions within a company sponsored retirement plan. It’s guaranteed money so you can’t go wrong.
• Start a Roth IRA. It’s less arduous than a traditional IRA and investment growth is income tax-free.
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Mortgage Rates Are Effectively Negative In the Land Of The Free
.Mortgage Rates Are Effectively Negative In the Land Of The Free
Notes From The Field By Simon Black July 22, 2020 Bahia Beach, Puerto Rico
By the late 200s AD, the economy of ancient Rome was in serious distress.
There was hardly a single year during that entire century without some major crisis– civil war, barbarian invasion, plague, imperial assassination, political scandal, or economic depression.
It was so bad, in fact, that historians refer to this period as the Crisis of the Third Century. And the Roman economy suffered immeasurably as a result of all the turmoil.
In a desperate effort to make ends meet, Rome’s emperors routinely resorted to debasing the currency.
Mortgage Rates Are Effectively Negative In the Land Of The Free
Notes From The Field By Simon Black July 22, 2020 Bahia Beach, Puerto Rico
By the late 200s AD, the economy of ancient Rome was in serious distress.
There was hardly a single year during that entire century without some major crisis– civil war, barbarian invasion, plague, imperial assassination, political scandal, or economic depression.
It was so bad, in fact, that historians refer to this period as the Crisis of the Third Century. And the Roman economy suffered immeasurably as a result of all the turmoil.
In a desperate effort to make ends meet, Rome’s emperors routinely resorted to debasing the currency.
To give you an example, the antoninianus silver coin had around 50% silver content when it was first circulated in 215 AD. Within a few decades, the antoninianus had been debased so much that newly minted coins contained less than 3% silver.
Naturally this created rampant inflation; as Rome’s currency rapidly lost value, merchants had to continually raise their prices in order to keep up with the currency debasement.
So in 301 AD, Emperor Diocletian tried to combat inflation by imposing strict price controls across the empire… and he issued his infamous Edictum de Pretiis Rerum Venalium, known as the Edict on Maximum Prices.
(Unsurprisingly, Diocletian’s edict pointed the finger at evil capitalists, blaming the inflation on “men whose aim it is to restrain the general prosperity. . .”)
The edict went on to regulate every single wage and price in the empire… from a bushel of wheat to a day’s labor on a farm. And anyone who didn’t abide by the law was threatened with the death penalty.
The effect of the law was devastating. Not only did Diocletian’s edict NOT fix the inflation problem, it caused countless Romans to flee, many of whom went north to live among the barbarian tribes.
That proved even more disastrous, because Diocletian was rapidly losing taxpayers. So shortly after, the imperial government passed another law, forbidding anyone from leaving.
Every Roman was tied to their job, or to their farms. And the restrictions were generational: a son was legally bound to follow the trade and guild of his father.
This is actually a fairly common theme throughout history.
Russian Czar Ivan the Terrible, for example, decreed in 1581 that peasants were not allowed to leave their farms without the owner’s consent. And this was the norm in Europe for centuries while the feudal system was in place.
Freedom of movement is a relatively new phenomenon… something that became commonplace only in our modern time. It is one of the most important freedoms we have, and one that I believe many people will avail themselves of now.
These pandemic lockdowns have been absolutely devastating. The worldwide economic cost alone is tens of trillions of dollars. Hundreds of millions of people have lost their jobs (according to UN estimates). Millions of businesses have gone bust.
But even beyond the economic costs, the pandemic has caused a lot of people to reexamine their lifestyles.
People who live in cramped, super-expensive, highly-taxed urban areas were cooped up like hamsters for weeks, even months, barely able to even go outside.
And any rational person who understands there may be new waves of the pandemic… or entirely new pandemics that come in the future… is looking around for better options.
After all, politicians, intoxicated with their own power, have already shown us how they’re going to react– with hysteria, stupidity, and violence.
In southern California, beach goers were told to stay off the dry sand, but wet sand was OK. Officials in Nassau County, New York made it illegal to touch other people’s tennis balls.
Comrade Mayor Bill de Blasio of New York City locked everyone up in their homes and threatened to throw people in jail who ‘illegally’ attended religious services… but was totally fine when rioters, looters, and protesters took to the streets.
And Gunnison County, Colorado ordered all non-residents, including those who own homes in the area, to leave at once, and “not return until further notice.”
Fortunately nobody has to flee into the welcoming arms of barbarian tribes anymore… nor are we tied to the land like medieval serfs.
A lot of people are now realizing for the first time that they do have the freedom to move. The lockdowns forced nearly every business into remote work arrangements, and many of those will end up being permanent.
As a business owner, I think remote work is a double-edged sword. Productivity is definitely higher when people are together in an office.
But remote work is far more efficient; no more wasting time in traffic. It’s less expensive because it eliminates the need for office space. And employees tend to be happier.
So undoubtedly a lot of remote work arrangements are here to stay.
And people are starting to see now that they can live anywhere; there’s no need to stay in the city, or even suburb, just to be near the office, when you don’t have to go to the office anymore.
I’ve written about this a lot: I’m anticipating a great migration, from high-tax, high-cost, high-stupidity places, to low tax, low cost, more sensible places.
In the Land of the Free, this means Texas, Florida, Tennessee, and even states like Idaho and Wyoming.
Here’s the kicker: mortgage rates are now below 3%… which is nuts. At 3%, the real estate is essentially free.
If you imagine that inflation alone is 2% per year, then you’re effectively paying just 1% interest. And that 1% will be mostly credited back to you through various tax benefits, like a home office deduction, interest expense deduction (on a loan up to $750,000), and property tax deduction (up to $10,000).
This means that your tax-adjusted, inflation adjusted interest rate is probably ZERO, and potentially even NEGATIVE… so you can technically be paid for borrowing money now.
So it’s worth strongly considering this opportunity while it’s on the table.
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com
Your Money Problems: Why They're All Your Fault
.Your Money Problems: Why They're All Your Fault
By Tara Struyk
I love writing about money — not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
But that’s really what issues that surround money are all about, isn’t it? The way we behave with our money is a lot like many other things in life — we know what we should do, but that hardly means we actually do it.
Your Money Problems: Why They're All Your Fault
By Tara Struyk
I love writing about money — not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
But that’s really what issues that surround money are all about, isn’t it? The way we behave with our money is a lot like many other things in life — we know what we should do, but that hardly means we actually do it.
We know we should exercise, avoid fast food, and eat more vegetables just like we know we should spend less, avoid debt, and save more of our money. Most of us struggle with both, at least sometimes.
The key to solving money problems, then, often isn’t about outside factors (like making more money). Instead, it’s about our own habits and behaviors. (See also: Party Like It's $19.99: The Psychology of Pricing)
So how can we make better choices when it comes to money? First, I think, we need to accept that our money problems are (usually) all our own fault. Then, it’s time to stop relying on self discipline and develop habits that put bad choices out of reach.
What’s the Problem?
I think the key to unraveling any money problem is to first accept that the problem is probably an emotional one. Just think about some of the money problems people tend to get into. Debt is one of the most obvious, and if you’ve ever watched Suze Orman or Dave Ramsay or Oprah address this, it’s pretty clear that debt goes much deeper than just a frivolous desire to acquire more.
For some people, a desire to give their kids all the things they never had growing up makes it impossible for them to say “no.” For others, a financial setback has them feeling too ashamed to admit they can no longer afford the lifestyle they’re used to.
To continue reading, please go to the original article here:
http://www.wisebread.com/your-money-problems-why-theyre-all-your-fault
Why Personal Finance Isn't Personal for Mint
.Why Personal Finance Isn't Personal for Mint
Expert Interview with Luke Landes
Since 2003, Luke Landes has been writing about personal finance and ensuring your money is wisely spent. Luke took a moment away from his site, Consumerism Commentary, to speak with us about caring for your money and why, surprisingly, personal finance isn't as "personal" as we think.
What are some common misconceptions you see about finance?
"Personal finance is personal!" Here's an interesting conundrum. One of the reasons given for an apparent lack of good financial decision-making among the public is that money-related decisions are more about emotion than mathematics. We all learn basic addition and subtraction when we're young. People with uncontrollable amounts of debt have no lack of understanding of arithmetic; this result is due to something other than the question whether a bank balance greater than zero is better than one less than zero.
Human beings simply make decisions with emotions rather than with logic. When financial literacy tries to solve the problem through education, it's often focusing on the wrong things.
Why Personal Finance Isn't Personal for Mint
Expert Interview with Luke Landes
Since 2003, Luke Landes has been writing about personal finance and ensuring your money is wisely spent. Luke took a moment away from his site, Consumerism Commentary, to speak with us about caring for your money and why, surprisingly, personal finance isn't as "personal" as we think.
What are some common misconceptions you see about finance?
"Personal finance is personal!" Here's an interesting conundrum. One of the reasons given for an apparent lack of good financial decision-making among the public is that money-related decisions are more about emotion than mathematics. We all learn basic addition and subtraction when we're young. People with uncontrollable amounts of debt have no lack of understanding of arithmetic; this result is due to something other than the question whether a bank balance greater than zero is better than one less than zero.
Human beings simply make decisions with emotions rather than with logic. When financial literacy tries to solve the problem through education, it's often focusing on the wrong things.
But here's where the constant "personal finance is personal!" drumbeat leads to a misconception. Yes, humans are emotionally-driven beings, and good financial decision-making requires more than a textbook understanding of the net worth equation, for example. This mantra is often used as an excuse to ignore good financial advice, to fully submit to emotional decision-making, and to rationalize bad ideas. It leads to the idea that while some advice is good for "most people," I am above average. A special set of rules applies to me. Chances are good that you and I both fit in well with "advice for averages."
How do you balance a good saving strategy and not be too penny-pinching? What's a sign you should loosen up a bit?
There's more to life than money. Financial writers don't want to believe that; their livelihood is based on framing all of life's interesting bits from a financial perspective. I get that. To a hammer, everything looks like a nail, and even when I write, I look for an angle that reflects my audience's expectations to read about finances. It's possible to take any good idea too far. If your penny-pinching is hurting other people, if you're making unnecessary sacrifices, or if the return you get for your time isn't high enough - and that return will decrease as you become more financially savvy - it's time to reevaluate your choices.
What are some good saving strategies you recommend for those dealing with debt?
To continue reading, please go to the original article here:
8 Places Burglars Rarely Search in a Home
.8 Places Burglars Rarely Search in a Home
More than 2 million burglaries are reported in the U.S. every year – and 66% of them are residential. When it comes to home type and seasons, burglaries run the gamuts: Renters are just as likely as homeowners to have a break-in and although warmer months see a spike in home invasions, no season is safe. With this level of prevalence and unpredictability, it’s essential that every person protect his or her belongings.
Once inside a home, smart burglars know exactly where to look first. You might think you were slick hiding your jewelry in the medicine cabinet or at the bottom of an underwear drawer, but those are actually a few of the first places burglars look when entering a home.
Instead of leaving your items vulnerable to being found in common home hiding places, check out these more covert options instead:
8 Places Burglars Rarely Search in a Home
More than 2 million burglaries are reported in the U.S. every year – and 66% of them are residential. When it comes to home type and seasons, burglaries run the gamuts: Renters are just as likely as homeowners to have a break-in and although warmer months see a spike in home invasions, no season is safe. With this level of prevalence and unpredictability, it’s essential that every person protect his or her belongings.
Once inside a home, smart burglars know exactly where to look first. You might think you were slick hiding your jewelry in the medicine cabinet or at the bottom of an underwear drawer, but those are actually a few of the first places burglars look when entering a home.
Instead of leaving your items vulnerable to being found in common home hiding places, check out these more covert options instead:
1. Wall Safe
In their haste, burglars will typically pick up an entire movable safe and take it with them to try to open later. Prevent this by installing your home safe directly into the wall. A locked wall safe is secure from burglars on the run.
2. Floor Safe
Floor safes are hard for burglars to detect and won’t take up extra space in your home. The great thing about these safes is that even if the thieves find it, they’ll have an incredibly hard time trying to remove or empty it.
3. Safe Inside a Box
If you’re partial to your moveable safe, consider disguising it; instead of leaving it out in the open, put it inside a cardboard box and place a few blankets or toys on top before closing it. Arrange the box among others in a closet, attic, or basement so it blends in and is inconspicuous.
To continue reading, please go to the original article here:
http://www.westernsafesandiego.com/blog/8-places-burglars-rarely-search-home/
Money Has Become Associated With Greater Happiness
.Money Has Become Associated With Greater Happiness
By Tara Bahrampour July 1, 2020
A new report finds that in recent decades, having more money has become increasingly associated with greater happiness.
The Expanding Class Divide in Happiness in the United States, 1972—2016, published last week in the journal Emotion, found that among people age 30 and older, the correlation between income and happiness has steadily risen over the years.
The study used data from the General Social Survey, one of the longest-running nationally representative surveys of U.S. adults, with 44,198 participants between 1972 and 2016.
Money Has Become Associated With Greater Happiness
By Tara Bahrampour July 1, 2020
A new report finds that in recent decades, having more money has become increasingly associated with greater happiness.
The Expanding Class Divide in Happiness in the United States, 1972—2016, published last week in the journal Emotion, found that among people age 30 and older, the correlation between income and happiness has steadily risen over the years.
The study used data from the General Social Survey, one of the longest-running nationally representative surveys of U.S. adults, with 44,198 participants between 1972 and 2016.
It found a growing class divide in happiness, with the happiness of whites with no college education steadily declining since 1972, while the happiness of whites with college education stayed steady.
For African Americans, the results were different but still reflected a rising money-happiness correlation: Happiness levels of blacks with no college education has stayed steady since 1972, while the happiness of blacks with college education has increased. For both races, the happiness gap by education has grown.
Money can buy happiness — if you know how to use it
To continue reading, please go to the original article here:
States Without Income Tax: Is There a Benefit to Moving?
.States Without Income Tax: Is There a Benefit to Moving?
There are some states without income tax, and amongst many of the high income earners I know, they’d love to live in one. So much so, in fact, that I often get question marks and eye rolls when I tell them that living in California is great. Many of my friends won’t even think about California because of the state income taxes here.
However, is it really all that beneficial to live in states without income tax? That’s what I’m going to look into here, and we’ll see what the outcome is
States Without Income Tax
There are 7 states without income tax, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Tennessee and New Hampshire also don’t tax earned income, HOWEVER, they will tax investment income. So, any interest income or dividend income will be taxed at 5% and 2% respectively (for 2019), and you’ll have to file state income tax return.
States Without Income Tax: Is There a Benefit to Moving?
There are some states without income tax, and amongst many of the high income earners I know, they’d love to live in one. So much so, in fact, that I often get question marks and eye rolls when I tell them that living in California is great. Many of my friends won’t even think about California because of the state income taxes here.
However, is it really all that beneficial to live in states without income tax? That’s what I’m going to look into here, and we’ll see what the outcome is
States Without Income Tax
There are 7 states without income tax, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Tenneesee and New Hampshire also don’t tax earned income, HOWEVER, they will tax investment income. So, any interest income or dividend income will be taxed at 5% and 2% respectively (for 2019), and you’ll have to file state income tax return.
Everyone else charges a state income tax that you have to pay. See the chart below for the differences.
https://i.insider.com/5db1f769dee0197a792f8765?width=1200&format=jpeg
https://www.businessinsider.com/personal-finance/states-with-no-income-tax-map
There are some stark differences amongst the states as you can see in the chart. Of the states that do have an income tax, some charge a flat rate (meaning everyone pays the same percentage independent of salary), and some charge progressive rates (meaning the more you make, the more you pay). The rates in the chart reflect the highest tax rates possible in that state. For more information about that you can check out the excel chart at taxfoundation.org.
While it’s a nice thought to say you get to save money when you live in a state without income taxes, it’s important to realize something:
States Have To Make Money Somehow, So If They Aren’t Taxing Your Income, Where Is Their Money Coming From?
To continue reading, please go to the original article here:
Federal Reserve: Everything is fine. Just like in 2008
.Federal Reserve: Everything is fine. Just like in 2008
Notes From The Field By Simon Black July 9, 2020 Bahia Beach, Puerto Rico
It’s nothing but rosy news coming from the Federal Reserve.
Recently the Fed released this reassuring statement:
“The banking system remains well-capitalized under even the harshest of these downside scenarios. . .”
In other words, everything is just fine.
Yet at the same time, the Fed also announced that it would impose restrictions on bank dividends and stock buybacks, essentially preventing banks from passing along their profits to shareholders.
If those two statements strike you as completely contradictory, you’re right.
Federal Reserve: Everything is fine. Just like in 2008
Notes From The Field By Simon Black July 9, 2020 Bahia Beach, Puerto Rico
It’s nothing but rosy news coming from the Federal Reserve.
Recently the Fed released this reassuring statement:
“The banking system remains well-capitalized under even the harshest of these downside scenarios. . .”
In other words, everything is just fine.
Yet at the same time, the Fed also announced that it would impose restrictions on bank dividends and stock buybacks, essentially preventing banks from passing along their profits to shareholders.
If those two statements strike you as completely contradictory, you’re right.
To read the complete article, please go to…
Federal Reserve: Everything is fine. Just like in 2008 | Sovereign Man
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com
The Coronavirus Is Causing A Cash And Coin Shortage In The United States
.The Coronavirus Is Causing A Cash And Coin Shortage In The United States
By Matthew Gault
A lack of circulation is causing stores all over the country to run out of coins and cash
Banks, laundromats, grocery stores, and retail stores across the country are telling customers that, if they’re paying in cash, they need to bring exact change. All over, ATMs are empty. Last week, a small paper sign taped to the door of a Philadelphia Rite Aid warned customers they needed exact change if they paid in cash.
“Dear Customer: Due to a Nationwide shortage of coins and small bills, we would appreciate exact change if possible. We will exchange your change for larger denomination bills,” the sign read.
A worker at the store told Motherboard in a phone call that the store has recently had trouble getting its coin orders filled by the local bank. Usually, the store orders about $800 in coins, but two weeks ago the bank couldn’t fill the order and last week it could only give Rite Aid half. For now, the worker said the store has enough coins and small bills and customers don’t seem to be too concerned.
The Coronavirus Is Causing A Cash And Coin Shortage In The United States
By Matthew Gault
A lack of circulation is causing stores all over the country to run out of coins and cash
Banks, laundromats, grocery stores, and retail stores across the country are telling customers that, if they’re paying in cash, they need to bring exact change. All over, ATMs are empty. Last week, a small paper sign taped to the door of a Philadelphia Rite Aid warned customers they needed exact change if they paid in cash.
“Dear Customer: Due to a Nationwide shortage of coins and small bills, we would appreciate exact change if possible. We will exchange your change for larger denomination bills,” the sign read.
A worker at the store told Motherboard in a phone call that the store has recently had trouble getting its coin orders filled by the local bank. Usually, the store orders about $800 in coins, but two weeks ago the bank couldn’t fill the order and last week it could only give Rite Aid half. For now, the worker said the store has enough coins and small bills and customers don’t seem to be too concerned.
“I hope it don’t last,” they said. “At first, with everything else going on, a lot of people did stop using cash and were more with credit and debit. So in a way that helped us.”
On the surface, a cash shortage during a pandemic seems counter-intuitive. People are staying home more and spending less. Just because the money isn’t moving around doesn’t mean there should be less of it.
The truth is more complicated, and the federal government is doing its best to say it's on top of the crisis, while local businesses and national chains alike are telling customers to prepare for the worst. Broadly speaking, hard currency, and coins in particular, are a vector for disease and coins offer bacteria and viruses a smoother ride than cash.
Scientists have speculated that the virus that causes COVID-19 can exist on cash, but scientists aren’t sure how dangerous it is. Epidemiologists recommend washing your hands after handling cash or coins just to be safe. In China, banks sterilize and sometimes destroy currency to control the spread of disease.
According to the U.S. Federal Reserve Chair Jerome Powell, cash is in short supply precisely because it isn’t moving around.
To continue reading, please go to the original article here:
https://www.vice.com/en_us/article/8895e4/covid-19-is-causing-a-national-coin-shortage?
Don’t Feel Guilty About Spending Money
.Don’t Feel Guilty About Spending Money [The ROI In Your Life]
Todd Kunsman
One topic within personal finances that doesn’t get discussed often is how spending money is perfectly okay. Gasp! All gasping aside, a recurring theme in the finance industry is how small purchases add up over time and are detrimental to your finances. You’ve seen the “latte” media headlines and how you’re missing out on thousands and thousands of dollars a year. It’s not just media articles either, there are plenty of financial experts who shout the same cliche statements.
“Cut all your expenses,” “Stop buying that daily coffee,” etc. You really start to feel attacked or shameful about your purchases. But, you shouldn’t feel guilty about spending money if it improves the ROI of your life and you have a spending plan (some sort of budget).
Determining the ROI In Your Life (Return on Investment)
We have one life to live and time really does creep up fast. It still feels like last week that I was heading off to college and now as I write this, I’m in my early 30s. And as much as I love saving and investing, I make no apologies in buying things I love that add value to my life — and neither should you!
Don’t Feel Guilty About Spending Money [The ROI In Your Life]
Todd Kunsman
One topic within personal finances that doesn’t get discussed often is how spending money is perfectly okay. Gasp! All gasping aside, a recurring theme in the finance industry is how small purchases add up over time and are detrimental to your finances. You’ve seen the “latte” media headlines and how you’re missing out on thousands and thousands of dollars a year. It’s not just media articles either, there are plenty of financial experts who shout the same cliche statements.
“Cut all your expenses,” “Stop buying that daily coffee,” etc. You really start to feel attacked or shameful about your purchases. But, you shouldn’t feel guilty about spending money if it improves the ROI of your life and you have a spending plan (some sort of budget).
Determining the ROI In Your Life (Return on Investment)
We have one life to live and time really does creep up fast. It still feels like last week that I was heading off to college and now as I write this, I’m in my early 30s. And as much as I love saving and investing, I make no apologies in buying things I love that add value to my life — and neither should you!
I’ve always felt that hoarding money and never using it to experience things you love, is a missed opportunity to get the most out of life. Instead of cutting all your expenses (even things that bring you joy), focus that expense-cutting effort on things that you won’t miss at all.
The simple way to put this:
Figure out where spending your money will bring the most ROI for you.
And the areas where you are fine cutting back, be more aggressive there to save money.
Typically, this concept is called conscious spending.
Instead of being cheap or just spending blindly, you decide what to spend money on and what not to. You’ve created a monthly budget, develop goo spending habits, and stick to it — guilt free.
For this to work well for me, I still ensure I stick to my regular plan of paying yourself first each month. Meaning, I’m saving and investing a consistent percentage, then paying my bills, and leaving the leftovers to use as I wish. Since I’m not going into debt to buy things or neglecting my financial goals, there is no negative impact in spending money on things I enjoy.
To continue reading, please go to the original article here:
How to Live Within Your Means Without Feeling Deprived
.How to Live Within Your Means Without Feeling Deprived
Todd Kunsman
As you began reaching adulthood or working on your personal finances, you’ve probably heard (or read) that you need to “live within your means.” It’s a standard process that will help ensure everyone is more financially responsible and will have long-term healthy finances.
However, even though the idea behind this concept is so simple, many times people fall into the trap of spending more than they currently make or have. And yes, even those who have bigger salaries or overall income can fall into the lifestyle inflation trap too.
Below, you’ll learn more about living within your means, why it can be difficult, and tips to stay within your budget without feeling deprived.
What is Living Within Your Means?
How to Live Within Your Means Without Feeling Deprived
Todd Kunsman
As you began reaching adulthood or working on your personal finances, you’ve probably heard (or read) that you need to “live within your means.” It’s a standard process that will help ensure everyone is more financially responsible and will have long-term healthy finances.
However, even though the idea behind this concept is so simple, many times people fall into the trap of spending more than they currently make or have. And yes, even those who have bigger salaries or overall income can fall into the lifestyle inflation trap too.
Below, you’ll learn more about living within your means, why it can be difficult, and tips to stay within your budget without feeling deprived.
What is Living Within Your Means?
To “live within your means” simply means you are ensuring that the amount of money you spend is less than what you bring in every month. This helps prevent you from going into debt, living paycheck to paycheck, and encourages you to save money for your emergency fund.
Typically, the best way to ensure you are living within your means is to budget or at the very list, be incredibly financially aware of your income and expenses. Budgeting is not the most fun part of life, but it can have major positive impacts on the way you spend and save money.
Luckily, you can also use various personal finance software that can make the process less tedious and helps you stay on the right track. A few financial tools you might consider to help include:
Personal Capital (net worth, spending, investment tracker)
Savology (easy financial planning software)
You Need A Budget (powerful budgeting software)
Why Can It Be Difficult to Live Within Your Means?
For some people, living within their means is pretty easy and many have no trouble transitioning. However, it can also be challenging for others to break bad financial habits and get spending under control.
Why can it be so difficult to live within your means?
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