How A Single Pivotal Person Taught Me What Real Wealth Looks Like
.How A Single Pivotal Person Taught Me What Real Wealth Looks Like
Mad Money Monster May 13, 2019
Pivotal moments come around only so many times in life. The same can be said for pivotal people. It wasn’t until I was 18 years old that I met one such pivotal person. When I was 18 I thought real wealth meant a big house and flashy car. After meeting that person, I quickly realized that I was wrong. Over the course of a few months, my thoughts about money were completely reshaped and my financial outlook changed forever.
Up until that point in my short life, I had a very limited and distorted view of money and wealth. I was the youngest of four children in a poor family. Ironically, our trailer home was on the right side of the tracks which meant I was fortunate enough to attend a good school from kindergarten all the way up through high school.
How A Single Pivotal Person Taught Me What Real Wealth Looks Like
Mad Money Monster May 13, 2019
Pivotal moments come around only so many times in life. The same can be said for pivotal people. It wasn’t until I was 18 years old that I met one such pivotal person. When I was 18 I thought real wealth meant a big house and flashy car. After meeting that person, I quickly realized that I was wrong. Over the course of a few months, my thoughts about money were completely reshaped and my financial outlook changed forever.
Up until that point in my short life, I had a very limited and distorted view of money and wealth. I was the youngest of four children in a poor family. Ironically, our trailer home was on the right side of the tracks which meant I was fortunate enough to attend a good school from kindergarten all the way up through high school.
But attending a good school didn’t stop me from sitting in study hall my senior year calculating how much money I would need to make to be able to afford a nice double wide for my impending adult life. I am not kidding. I can vividly recall sitting at that desk with a piece of scrap paper and meticulously combing over how much I would expect to pay for a mortgage on a double wide and all the other expenses that go along with home ownership. My circle of influence was small and the bar was set low. At 18 years old, that was the future I envisioned for myself.
MY WEALTHY FRIEND
Back then, from my perspective, anyone who didn’t live in a trailer seemed rich. Obviously, rich is a relative term, but I was seriously impressed by anyone who lived in a real house. And since I attended a good school in a good area, a lot of my friends lived in real houses.
In high school, I can remember driving to a new development to visit a friend at his new house. As I walked through the door I was greeted with a sea of white towering walls, a vaulted ceiling, and an impressive staircase. I watched from the kitchen as my friend hurriedly descended the staircase to say hello.
I literally felt dwarfed and not worthy of his friendship sitting at that kitchen island, and it was at that very moment I decided my friend’s parents must be mega-rich. Now, till this day, I have no idea how much money or actual wealth my friend’s parents had. I just knew they could afford a big house in a nice neighborhood. To me, a big house = rich.
To continue reading, please go to the original article here:
What Should You Do With a Life Insurance Benefit?
.What Should You Do With a Life Insurance Benefit?
By Melanie Lockert The Fabric Blog
We’ve all dreamed of coming into a large sum of money. You imagine all the ways you’d spend a million dollars and think how much better your life would be. But what if you did get a large sum of money but it came at a great cost? This is what life insurance is all about.
But what is it like getting a life insurance death benefit and how does it actually work? What should you actually do with a life insurance benefit? We chatted with personal finance experts to find some answers.
Receiving a Life Insurance Benefit
Life insurance death benefit amounts can vary depending on the policy. Generally, life insurance payouts aren’t taxable unless you earn interest.
What Should You Do With a Life Insurance Benefit?
By Melanie Lockert The Fabric Blog
We’ve all dreamed of coming into a large sum of money. You imagine all the ways you’d spend a million dollars and think how much better your life would be. But what if you did get a large sum of money but it came at a great cost? This is what life insurance is all about.
But what is it like getting a life insurance death benefit and how does it actually work? What should you actually do with a life insurance benefit? We chatted with personal finance experts to find some answers.
Receiving a Life Insurance Benefit
Life insurance death benefit amounts can vary depending on the policy. Generally, life insurance payouts aren’t taxable unless you earn interest.
Emily Guy Birken, author of End Financial Stress Now received a life insurance death benefit in 2013 after her dad passed. During a time of grief, it can be difficult to do almost anything—but luckily the process of claiming her death benefit wasn’t too difficult.
“I was pleasantly surprised at how easy it was to get the life insurance payout. Based on life insurance in pop culture, I thought it would be a more drawn-out or emotionally draining process,” she says.
In order to receive the life insurance payout, Birken says she had to fill out paperwork, sign documents and send in the death certificate. It took her about two to three weeks to receive the payout. In general, this process can often take between 30 to 60 days.
Choosing Between Payment Options
When it came to actually getting the life insurance payout, Birken was offered a couple of options. “The insurer offered us the option of receiving the full amount in either a check or direct deposit, or keeping it in their interest-bearing account, which is what my sister and I both opted to do,” explains Birken.
Choosing to keep it in the interest-bearing account was a strategic move and one that helped her manage her spending.
To continue reading, please go to the original article here:
https://meetfabric.com/blog/what-should-you-do-with-a-life-insurance-benefit
5 Things Your Millionaire Neighbor Isn’t Telling You
.5 Things Your Millionaire Neighbor Isn’t Telling You
Updated: November 11, 2020 By Robert Farrington
At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.
It's currently estimated that there are about 3,000,000 millionaires in the United States today. And given that there are about 300,000,000 Americans according to the latest Census data, that means about 1 in 100 are millionaires. Even more startling is that means that you probably know someone who is a millionaire, and you probably live within a stone's throw of other millionaires that you don't know.
The truth is that a lot of millionaires have very specific habits. Traits that make them successful. One of the most interesting aspects of my Better Know a Young Millionaire Investor series is what makes some of these millionaires tick.
5 Things Your Millionaire Neighbor Isn’t Telling You
Updated: November 11, 2020 By Robert Farrington
At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.
It's currently estimated that there are about 3,000,000 millionaires in the United States today. And given that there are about 300,000,000 Americans according to the latest Census data, that means about 1 in 100 are millionaires. Even more startling is that means that you probably know someone who is a millionaire, and you probably live within a stone's throw of other millionaires that you don't know.
The truth is that a lot of millionaires have very specific habits. Traits that make them successful. One of the most interesting aspects of my Better Know a Young Millionaire Investor series is what makes some of these millionaires tick.
Beyond the inspirational, here are five fundamental habits that your millionaire neighbor has but probably isn't telling you.
1. Start Young and Don't Mess Up
Many millionaires start young. It's so much easier to start young rather than older. You just have more time - it's simple math.
Plus, the younger you start, the longer you have to see your money compound over time. Just think about this - the amount you need to invest per year to reach $1,000,000 by age 62:
Starting Age Amount To Invest Per Year
22 $3,600
25 $4,600
30 $6,900
35 $10,700
If you start at 25, you have 10 more years than starting at 35. You can debate the rate of return all you want, but younger is always better than older.
To continue reading, please go to the original article here:
https://thecollegeinvestor.com/5656/5-millionaire-neighbor-telling/
What a Financial Trainwreck Can Teach Us
What a Financial Trainwreck Can Teach Us
Six Mistakes to Learn From
Donna Freedman,
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
What a Financial Trainwreck Can Teach Us
Six Mistakes to Learn From
Donna Freedman,
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
They bought their son a tux at prom time, because they couldn’t afford the rental fee but hadn’t yet maxed out the Nordstrom card.
Clearly this couple is a financial trainwreck. But they have something to teach us, if we’re willing to listen.
It’s easy to scorn the protagonists as entitled or clueless. You’d never be that foolish. You’d never go into debt, get yourself out, and then go back in. You’d never borrow from family members, or cash in a 401(k), or use a credit card to put your kids in private school.
Maybe you wouldn’t. Or maybe scorning other people’s mistakes keeps you from having to look too hard at your own behaviors.
If you’ve absolutely got a lock on your dollars, good for you. But keep in mind that all across the country, otherwise intelligent and rational people are spending more than they earn.
Losing Sight of What Matters
Some debtors have little choice. For example, someone going through a serious health issue or a protracted divorce can’t just check out of the ICU early or stop paying for legal representation.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/financial-wellness/what-a-financial-train-wreck-can-teach-us/
Good Investment Habits
.Good Investment Habits
By: Sophie Johnson
Unless you hit the lottery, chances are you’ll be working for your money. You can make that money grow by investing it, which, in effect, makes your money work for you. Though some people see investment as a sort of lottery — you pick a good bet on the stock market and get rich — the truth is that successful investing comes down to practicing good habits. The earlier you start using these habits, the more successful you’re likely to be.
Be a Wise Guy
The more information you have, the better your investment decisions will be. Get smart by learning about bank accounts, interest and debit and credit cards, then move on to studying investments. This education should never end. Develop the habit of expanding your investment knowledge regularly.
Good Investment Habits
By: Sophie Johnson
Unless you hit the lottery, chances are you’ll be working for your money. You can make that money grow by investing it, which, in effect, makes your money work for you. Though some people see investment as a sort of lottery — you pick a good bet on the stock market and get rich — the truth is that successful investing comes down to practicing good habits. The earlier you start using these habits, the more successful you’re likely to be.
Be a Wise Guy
The more information you have, the better your investment decisions will be. Get smart by learning about bank accounts, interest and debit and credit cards, then move on to studying investments. This education should never end. Develop the habit of expanding your investment knowledge regularly.
Taking courses or reading books will deliver the information in an organized way. Investment information is available in many places, including the library and the Internet. However, don’t force yourself to slog through books or sites you don’t like. Choose enjoyable, interesting sources instead to maximize the learning experience.
Pay Day
When money comes in, pay some of it to yourself. Putting that money into a savings or investment account will help you build a brighter future. Your bank or employer might make this easier by automatically taking money from an account or paycheck and depositing it for you. If you put money into a company-backed retirement account, your employer might even chip in by matching your contribution. Although paying yourself first may be challenging if things are tight, putting away even a small amount will help keep the habit alive.
Risky Business
Investments involve taking risks, but those risks can be managed. Two habits can help you minimize potential losses. First, practice diversification -- that is, don’t invest all of your money in one place. By habitually spreading your money between different kinds of investments, a loss in one won’t wipe you out and gains in other investments might make up for a loss. Second, invest consistently over the long term. For instance, investing in the stock market consistently would allow you over time to buy stocks when prices are lowest and sell them when prices are high.
To continue reading, please go to the original article here:
https://pocketsense.com/psychology-of-budgeting-13722860.html
10 Habits That Financially Successful People Have
.10 Habits That Financially Successful People Have
By: Beverly Bird
Can You Get Ahead Just By Changing Your Habits?
We’ve all done it: ogling massive homes and estates while we’re driving, wondering how the owners achieved all that success and wishing for a little of it ourselves. Or maybe your neighbor just bought a brand new Ferrari. How did he become so financially successful?
Here’s a hint: He might not be. He might just appear to be successful. In fact, the world’s most successful people generally don’t spend wildly. They’ve developed good fiscal habits and they’re exactly that – habits. They’re consistent.
A Penny Saved…
Successful people routinely save. This doesn’t necessarily mean dropping their change into a jar every night before bed, although this is certainly beneficial, too. It means never spending more than they have to.
10 Habits That Financially Successful People Have
By: Beverly Bird
Can You Get Ahead Just By Changing Your Habits?
We’ve all done it: ogling massive homes and estates while we’re driving, wondering how the owners achieved all that success and wishing for a little of it ourselves. Or maybe your neighbor just bought a brand new Ferrari. How did he become so financially successful?
Here’s a hint: He might not be. He might just appear to be successful. In fact, the world’s most successful people generally don’t spend wildly. They’ve developed good fiscal habits and they’re exactly that – habits. They’re consistent.
A Penny Saved…
Successful people routinely save. This doesn’t necessarily mean dropping their change into a jar every night before bed, although this is certainly beneficial, too. It means never spending more than they have to.
Think of it this way: Every time single time you use that credit card or write a check, you have less money than you had a minute before. The equation only works if you spend less than you earn. It’s that simple.
You might have heard about Warren Buffett’s house, the one he bought for cash decades ago and continues to live in. It’s not a mansion. In fact, it’s a little on the small side. There’s no doubt in the world that Buffett can afford a lot more, but he’s lived with the habit of deferring instant and copious gratification in exchange for long-term wealth and security.
Are you stretching your budget to accommodate a lifestyle you can’t easily afford? Do you find yourself juggling your finances every month because you don’t quite earn enough to make all ends meet? This might be a habit you want to get out of.
And It’s About How You Save
About that change jar you toss your coins into every night. Get your money out of there and put it in some type of a financial account, even if it’s just a run-of-the-mill bank savings account, where it can earn some interest and grow.
Financial experts tout the 10 percent rule – you should regularly and methodically tuck aside this much of your income. Financially successful people tend to make it a habit to do more than that. Think 15 percent or even 20 percent if you can manage it.
To continue reading, please go to the original article here:
https://pocketsense.com/10-habits-that-financially-successful-people-have-13590062.html
Future Shock
.Future Shock
Jonathan Clements November 7, 2020
WHY DO WE MAKE spending decisions that we later regret? Yes, we tend to live for today and give scant thought to tomorrow. But it’s more complicated than that—which brings me to four insights from psychology.
I find the insights below fascinating, in part because they describe how I behave with uncanny accuracy. Many readers, I suspect, will also catch a glimpse of their own behavior:
Moral licensing. If we do something good—exercise, give to charity, work late, purchase an eco-friendly product—we often give ourselves permission to do something that’s not so good, such as rewarding ourselves with junk food or a new pair of shoes. In fact, research has found that simply thinking about doing something good, even if we don’t follow through, can prompt not-so-good behavior.
Future Shock
Jonathan Clements November 7, 2020
WHY DO WE MAKE spending decisions that we later regret? Yes, we tend to live for today and give scant thought to tomorrow. But it’s more complicated than that—which brings me to four insights from psychology.
I find the insights below fascinating, in part because they describe how I behave with uncanny accuracy. Many readers, I suspect, will also catch a glimpse of their own behavior:
Moral licensing. If we do something good—exercise, give to charity, work late, purchase an eco-friendly product—we often give ourselves permission to do something that’s not so good, such as rewarding ourselves with junk food or a new pair of shoes. In fact, research has found that simply thinking about doing something good, even if we don’t follow through, can prompt not-so-good behavior.
This is certainly a mindset I have. If I’ve been careful about my eating all week, I feel I “deserve” something unhealthy. Two decades ago, when I regularly ran marathons and half-marathons, I’d typically do my long runs on Saturday morning—and spend much of the time pondering the Italian sub and fries I’d devour afterwards.
Willpower budget. As with moral licensing, this is another explanation for why we slip from the straight and narrow. The notion: If we’ve been disciplined all day—eating carefully, focused on work, going to the gym at lunchtime—we might reach the end of the day with our willpower budget depleted, leading us to have that extra glass of wine or an extra-large slice of pie.
Can we expand our willpower budget? It isn’t clear. But if we can take our desired good behavior and turn it into habits—perhaps we make it a point to always exercise on certain days, always have a salad for lunch and always max out our 401(k)—these things may come to require little or no willpower. Our good habits may not expand our willpower budget, but they could free up part of that budget for other areas where we’re trying to improve our behavior.
To continue reading, please go to the original article here:
What Not To Do While Trying To Get Out of Debt
.What Not To Do While Trying To Get Out of Debt
Jaime Catmull, GOBankingRates November 6, 2020
If worrying about how to pay off debt keeps you awake some nights, late-night television abounds with alleged solutions. Some ads even promise to get rid of your debt for pennies on the dollar.
Fall victim to these deals and you might be left with worse financial troubles than before. But these aren’t the only foolish ways of paying off debt. Financial experts shared some common mistakes people make while trying to get out of debt avoid making these same missteps.
1. Not Having a Reasonable Debt Repayment Strategy
When sitting down to tackle your debt, the first step should be to see how much total debt you actually have. Add up any debt you have accrued from student loans, car loans, credit cards, medical debt, home equity loans, payday loans, personal loans and IRS and government debt. If you’ve been dealing with debt for a while, this might add up to a scary number that could leave you feeling overwhelmed, and you might feel like you don’t know how to even begin paying it back.
What Not To Do While Trying To Get Out of Debt
Jaime Catmull GOBankingRates November 6, 2020
If worrying about how to pay off debt keeps you awake some nights, late-night television abounds with alleged solutions. Some ads even promise to get rid of your debt for pennies on the dollar.
Fall victim to these deals and you might be left with worse financial troubles than before. But these aren’t the only foolish ways of paying off debt. Financial experts shared some common mistakes people make while trying to get out of debt avoid making these same missteps.
1. Not Having a Reasonable Debt Repayment Strategy
When sitting down to tackle your debt, the first step should be to see how much total debt you actually have. Add up any debt you have accrued from student loans, car loans, credit cards, medical debt, home equity loans, payday loans, personal loans and IRS and government debt. If you’ve been dealing with debt for a while, this might add up to a scary number that could leave you feeling overwhelmed, and you might feel like you don’t know how to even begin paying it back.
Why This May Be a Mistake
When you don’t have a clear debt repayment plan, your instinct might be to try to cut back on spending, save more and earn extra money until you’ve saved enough to pay back your debt all at once. However, if you are just making the minimum payments throughout this time, you’ll be accruing more interest all along.
Aim to consistently pay down your debt every month. Whether you want to tackle the highest-interest debt first or the smallest bill, know what your plan is and how you can achieve your goals.
Does It Ever Make Sense To Pay Down All Your Debt at Once?
In many cases, paying off all your debt at once is impossible, so having this as your goal will only set you up for failure. However, if you’ve recently received a bonus, tax refund or another cash windfall that can eliminate or at least pay off most of your debt, this is a great way to use that money.
Paying off debt as quickly as possible will lower the interest you have to pay and also will improve your credit score.
2. Taking Out Payday Loans
If your car or house payment is due before your next paycheck, a payday loan can seem tempting. With a payday loan, the lender gives you the cash you need, and you write a check for the amount you’re borrowing, plus a finance fee.
To continue reading, please go to the original article here:
https://www.yahoo.com/news/not-while-trying-debt-000600661.html
8 Ways To Defend Your Family Finances
.8 Ways To Defend Your Family Finances From Whatever Comes Next
Ethan Rotberg Sat, November 7, 2020
A family budget is a delicate thing to balance, even without a pandemic crashing through and jumbling your finances. In a chaotic year like this, with the country dealing with a recession, ugly unemployment rates, political tensions and new waves of the coronavirus, you’ll need to arm yourself with extra financial tools to protect your household from potential money troubles.
Here are eight ways you can defend your family’s finances, starting today.
1. Clear as much debt as you can
Paying down debt may be the most impactful way to protect your family’s finances — especially if high-interest debts like credit cards are draining more of your cash each month.
8 Ways To Defend Your Family Finances From Whatever Comes Next
Ethan Rotberg Sat, November 7, 2020
A family budget is a delicate thing to balance, even without a pandemic crashing through and jumbling your finances. In a chaotic year like this, with the country dealing with a recession, ugly unemployment rates, political tensions and new waves of the coronavirus, you’ll need to arm yourself with extra financial tools to protect your household from potential money troubles.
Here are eight ways you can defend your family’s finances, starting today.
1. Clear as much debt as you can
Paying down debt may be the most impactful way to protect your family’s finances — especially if high-interest debts like credit cards are draining more of your cash each month.
So long as your credit score is in decent shape, you should consider consolidating your debts with a personal loan. With a good debt consolidation loan, you can replace all of your debts with a single loan at a much lower interest rate.
That will save you money and give you some breathing room. A free service will allow you to quickly compare loan offers from multiple lenders, making it easy to find the best rate possible.
2. Stop up the leaks in your budget
The pandemic has already forced us to cut back, whether we like it or not. But you may still be leaking money out of your family budget if you're paying too much for services like your cellphone plan, or if you're not using a cash-back app to save every time you shop.
Plug the leaks by looking for the better deals that are out there. For example, with a little comparison shopping you may be able to save $1,000 a year on your homeowners insurance. And shop around for your car insurance at least once a year, because you may be severely overpaying for your coverage.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/8-ways-defend-family-finances-131500884.html
How to Invest Your 401(K) in Causes You Care About
How to Invest Your 401(K) in Causes You Care About
My Two Cents Oct. 16, 2020 By Charlotte Cowles@charlottecowles
The Cut’s financial advice columnist Charlotte Cowles answers readers’ personal questions about personal finance. Email your money conundrums to mytwocents@nymag.com
Sustainable investing: One more thing to feel guilty about not doing? A luxury for rich people who want to justify the piles of money they’re making in the stock market while the rest of us fret about our jobs? Or a relatively painless action you can take with your retirement savings and then sleep better at night?
Technically, it’s all three. But let’s not overcomplicate things. The good news is that if you have a retirement account, it’s easier than ever to invest it in a way that reflects your values. I think of it as kind of like voting with your money, which is to say, it’s more effective than screaming into the void.
How to Invest Your 401(K) in Causes You Care About
My Two Cents Oct. 16, 2020 By Charlotte Cowles@charlottecowles
The Cut’s financial advice columnist Charlotte Cowles answers readers’ personal questions about personal finance. Email your money conundrums to mytwocents@nymag.com
Sustainable investing: One more thing to feel guilty about not doing? A luxury for rich people who want to justify the piles of money they’re making in the stock market while the rest of us fret about our jobs? Or a relatively painless action you can take with your retirement savings and then sleep better at night?
Technically, it’s all three. But let’s not overcomplicate things. The good news is that if you have a retirement account, it’s easier than ever to invest it in a way that reflects your values. I think of it as kind of like voting with your money, which is to say, it’s more effective than screaming into the void.
I know: Wading through the bowels of your 401(k) plan is the last thing you feel like doing these days. But in the grand scheme of joyless pandemic should-dos, moving your retirement investments into companies you feel vaguely good about — and divesting from the ones you definitely don’t — is not that unpleasant, especially if you’ve just spent an evening trying to scrub seven months’ worth of mysterious goo out of your refrigerator drawers.
From start to finish, transferring my retirement savings into ESG funds — named for the “environmental, social, and corporate governance” standards that they’re held to — took me less than an hour, including the eight minutes I spent on hold when I got confused and called the investor services line at Vanguard (they were very polite and talked me through the steps). I wouldn’t go so far as to call the process straightforward, but it was simpler than I expected.
(A word on retirement savings: Does it seem insane to focus on what your finances will look like in about 40 years when we’re in the middle of — gesturing around — all this? Of course. My advice: Don’t overthink it. Research shows that people make bad financial decisions when they get overwhelmed. If you’re already saving for retirement, keep doing it. If you’re not, make a plan for how to start.)
Here’s a step-by-step guide to better align your retirement savings with your moral compass.
What exactly are ESG funds?
To continue reading, please go to the original article here:
https://www.thecut.com/2020/10/a-beginners-guide-to-socially-responsible-investing.html
Dave Ramsey Warns: Don't Do These 10 Things With Your Money
.Dave Ramsey Warns: Don't Do These 10 Things With Your Money
Sarah Cunnane, MoneyWise November 3, 2020
Dave Ramsey says you have to stop causing your money troubles before you can solve 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 fortune as a house flipper 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.
Dave Ramsey Warns: Don't Do These 10 Things With Your Money
Sarah Cunnane, MoneyWise November 3, 2020
Dave Ramsey says you have to stop causing your money troubles before you can solve 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 fortune as a house flipper 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."
1. Don’t try to tackle your biggest debts first
When you’re deep in debt with multiple loans, freeing yourself can seem impossible. That’s why Ramsey suggests the “debt snowball method.”
Rather than start with the loan with the highest interest rate, Ramsey says to pay off the loan with the lowest balance first, making only minimum payments on the rest. The idea is that each small victory inspires you to tackle bigger challenges.
“It’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals,” Ramsey explained on his website.
The snowball method is one of Ramsey's most common pieces of advice but it's also controversial. If your credit score is hurting, it may be better to use an online service that can help you determine which bills to pay off first to get your score back up.
2. Don’t try to justify frivolous purchases
To continue reading, please go to the original article here:
https://www.yahoo.com/news/dave-ramsey-warns-dont-10-160500198.html