Don't Ever Do These 10 Things With Your Money
.Dave Ramsey Says Don't Ever Do These 10 Things With Your Money
MoneyWise Sarah Cunnane October 16, 2020
Dave Ramsey says you can solve your money troubles just as soon as you stop causing them.
The money-management guru has doled out his signature blend of tough-love financial advice and Biblical wisdom since 1992. He learned it all the hard way: In his 20s, Ramsey built a million-dollar fortune flipping houses but lost it all when banks started calling in his debts. He had to buckle down to build back up from bankruptcy.
Now his radio show is syndicated on more than 600 stations, and he’s authored several books. He teaches Americans how to avoid wallowing in debt — even during the current financial crisis.
Here are 10 of Dave Ramsey's biggest money "don'ts."
The Wrong Way to Think About Debt
.The Wrong Way to Think About Debt
October 12, 2020 MST The White Coat Investor
Category: Getting Out of Debt
By the time you read this, my family will have been completely debt-free for about three years. From the time I was 18 until the time I was 42, we had some sort of debt, usually either a mortgage or even when renting we had the $5K student loan I took out as a college freshman.
We're (fairly, in my opinion) ignoring the current month's expenses placed on credit cards (always paid off automatically), the leverage used by limited partnerships/LLCs we invest in (since our loss is limited to our investment), and the leverage used by publicly traded companies whose stocks we own via index funds. Everything we now buy, including our home renovation (the most expensive purchase of our lives), we buy with cash. The White Coat Investor, LLC has never had any debt and we plan to continue to grow it debt-free.
That's not to say I've never tried to use debt to our advantage. All three of our homes we have bought with a mortgage. My last year of residency we funded our Roth IRAs using a 0% credit card that we would pay off as an attending a few months later.
Found Money
.Found Money
By Will Kenton
What is Found Money
Found money refers to any amount of money that has been rediscovered after being forgotten about or abandoned by the rightful owner.
BREAKING DOWN Found Money
Found money can be used to describe anything from a wad of discarded dollar bills that one finds in the bottom of a washing machine to an uncollected asset discovered by beneficiaries long after the account holder has passed away. Found money always pertains to money that has gone unthought of until it is once again discovered.
In the United States, every state in the United States has an unclaimed property agency that works to get forgotten funds back into the pockets of their rightful owners. They can work to reunite people with unreturned deposits, undisbursed retirement funds and even uncashed payroll checks.
If You Have More Than $1,000 in Your Checking Account, Make These 5 Moves
.If You Have More Than $1,000 in Your Checking Account, Make These 5 Moves
by The Penny Hoarder Staff Updated October 7, 2020
You’ve done it. You’ve built up a little cushion in your bank account — $1,000! It feels good, right? Those days of checking your account balance in a panic are behind you.
Congrats! You’re on the right path. Now it’s time to think about some longer-term goals. What do you want to accomplish next with your money? Do you need to save more? Do you want to buy a home someday? Invest?
What’s the next step you should take? What are some specific things you can do to take your finances to the next level?
We’ve got some ideas for you:
When Ancient Greece Experienced Their Own ‘2020’…
.When Ancient Greece Experienced Their Own ‘2020’…
Notes From The Field By Simon Black Sovereign Man.com
October 12, 2020 Bahia Beach, Puerto Rico
For the powerful city-state of Athens in ancient Greece, the year 430 BC was one of the most tumultuous and dramatic in its history. Prior to 430 BC, Athens had been at the pinnacle of stability and power for decades. But in the course of that single year, the city was invaded by Sparta at the outbreak of the Peloponnesian War; Athenian officials essentially impeached their leader, Pericles, and put him on trial; and a deadly plague killed off up to 20% of the population.
In short, for ancient Athenians, 430 BC probably felt like 2020 does for us.
But despite all the hardship, Athens still managed to prevail. And that was in no small part due to the government’s enormous treasury surplus.
How To Handle A Windfall
.How To Handle A Windfall
By J.D. Roth| Updated: 11 September 2019
When my father died in 1995, he left behind a small life insurance policy that awarded each family member $5,000. It wasn't much, but it was the best he could do based on the fact that he had cancer. He hadn't been much of a planner, and hadn't been good with money, so that $5,000 per person was actually a significant amount.
At the time, I was deep in debt. I had over $20,000 in credit card balances, and was gradually adding more all of the time. If I'd been smart, I would have taken the proceeds from my father's life insurance and used them to immediately repay $5,000 in debt. But I wasn't smart. I used $1,000 to pay off debt (and patted myself on the back for it), but spent the rest on a new computer, software, and accessories. It didn't take long to realize that this was a dumb decision.
Millionaires Feel Stuck on a 'Treadmill': Survey
.Millionaires Feel Stuck on a 'Treadmill': Survey
By Robert Frank
A report from UBS found that wealth is a double-edged sword for today's millionaires, bringing plush comforts and a better lifestyle but also carrying increased stresses, anxieties and sacrifices with family and relationships. Today's millionaires also feel they are one stock-market crash away from losing their fortunes and that there is no such thing as "enough" wealth to feel secure.
"Millionaires enjoy a great deal of happiness and appreciation for what they've earned," said the UBS Investor Watch report called "When is enough ... enough?" But "many feel stuck on a treadmill, without a real sense of how much wealth would make them satisfied enough to get off." The report found that 52 percent of millionaires expressed the feeling of being "stuck on a treadmill, but I can't get off without giving up my family's lifestyle." It said that while satisfaction goes up as wealth increases, 58 percent of millionaires said their lifestyle expectations have also increased—so the more they have, the more they want.
How Wealth and Fame Doesn’t Necessarily Mean Success
.How Wealth and Fame Doesn’t Necessarily Mean Success
By Johnny Lops
I am sure the title of this article may have caught your attention and spurned multiple questions in your mind; “What does Dr. Lops mean that having become a CEO, or having means to buy a million dollar home does not mean I am not successful?”
Week after week, the media will report a story of a celebrity or famous athlete having been caught in a scandal. The story may pertain to an affair, an aggressive act, a divorce, or a “baby mama” looking to get appropriate access to child support.
We read these stories because we remain interested in the public lives of these individuals. But what is interesting to me is that regardless of the controversy they are confronted with, we continue to admire them for the initial talent or skill that brought that person national attention.
But the question remains: is that person truly successful?
The Difference Between A Credit Union And A Bank Explained
.The Difference Between A Credit Union And A Bank Explained
Content - Nate Drescher - March 25, 2020
It’s a question few know the answer to, but many ponder: What’s the difference between a credit union and a bank? On the surface, both types of organizations seem to do the same thing. You give them your money and, when you need it again, they give it back.
Both credit unions and banks also offer other perks and services. You can turn to either institution when you find yourself in need of a mortgage or auto loan. You can also earn interest on any money you have tucked away in a savings account.
So, with all these similarities, what really is the difference between a credit union and a bank?
8 Ways To Prepare To Become A Millionaire
.8 Ways To Prepare To Become A Millionaire
Written by Sam
Today I went to lunch with a very wealthy person. I don’t know exactly how wealthy , but based on his frequent trips to Maui, the fact that he earns a free plane ticket every month through his frequent flier points, and the fact that the other day he decided to go out and buy a truck just because he’s never had one before, there’s good reason to believe he’s close to a seven-digit earner.
As I talked with him, it raised a lot of questions in my mind about how managing my finances will change as my wealth grows. If I were a millionaire would I still need to budget? Would I still want to track all my spending? Would I still need to negotiate with my wife about finances?
It seems logical that with an income over $1,000,000 a year you wouldn’t need to plan as vigorously. But in the end thats a lie. Millionaires that manage their money irresponsibly can quickly lose it all and fall from grace (MC Hammer comes to mind).
Excerpts and Tips From Dave Ramsey On Debt and Investing
.Excerpts and Tips From Dave Ramsey On Debt and Investing
Written by Sam
Dave Ramsey’s Financial Peace University or FPU. Committing to attending the 13 weeks of classes was one of the best financial decisions we’ve made. The course covers a broad range of topics regarding personal finances and really gives you a good 10,000 foot view of your financial situation. In this post I’ll describe how
Dave addresses many myths about debt and gives a step-by-step plan to get out of debt.
Dumping Debt
Debt Myths
Myth – Lending to a friend or relative helps them.
Truth – Instead it really changes the dynamic of the relationship and damages it.
Myth – Co-signing on a loan is ok.
Truth – Statistically the person you’re co-signing with won’t repay the loan. That’s why the bank requires someone to co-sign.
Myth – Cash advances help poor people get ahead.
Truth – Cash advances are a way for poor people to have things they can’t afford.
Myth – Lottery and power ball will make me rich.
Truth – Lottery and power ball are a tax on poor people.