The Official Steps to Do After You Win the Lottery

The Official Steps to Do After You Win the Lottery

Find out about all the proper steps to take if you hit a huge jackpot in this video!

166,112 views•   Mar 27, 2021

9 - The Big Decision Sometimes a little bit of self discipline can go a long long way. That’s especially true for people who win the lottery. I mean, let’s say you win a lot of money, such as 100 million dollars. That easily qualifies as a life changing event.

8 - Stay Anonymous The easiest way to save yourself from a lot of trouble after winning a giant lottery is to tell as few people as possible. If you’re able to, don’t tell anyone that you won the lottery!

7 - Resist the Urge Here’s where your self control and discipline will REALLY be tested. If you win the lottery, don’t make any major purchases that you wouldn’t normally make for a while.  You have to get used to having that money first! 

6 - Debt Free If you have any debt, the first spending you should do with the money is to start paying off all your debts. Credit card bills, student loans, and yep, even paying off your mortgage. Some people advocate not paying a mortgage off if your interest rate is low because it’s lower than the return you’d earn in another investment.

5 - The Help Biggie wasn’t lying when he said the more money you get the more problems you have.  You definitely will want to have a good team of professionals to help with all the things associated with a lottery win.

To continue reading, please go to the original article here: 

https://www.youtube.com/watch?v=1x3fNZIoKDQ

How to Help Loved Ones Financially

How to Help Loved Ones Financially

Lending a hand without breaking your bank.

Christine Benz: Hi, I'm Christine Benz for Morningstar. Many financially stable people may wish to help loved ones who are struggling financially. Joining me to discuss what can often be a sticky situation is Michelle Singletary. She's a Washington Post columnist, and she's also the author of a new book called What to Do With Your Money When Crisis Hits. Michelle, thank you so much for being here.

Michelle Singletary: Thank you so much for having me.

Benz: Let's start with something that you emphasize in the book. And you do cover this topic about how to help loved ones who are struggling financially. One thing you say is to just start with a self-assessment, if you want to help someone else, take a look at your own financial situation and make sure that you are actually equipped to do so. Can you talk about that?

Singletary: I'm a big believer in "to whom much is given, much is required." But you've got to make sure that your financial house is stable. And the more you have, you might sort of feel like, "Well, of course, I have this extra money, I've got this retirement account..." But you really need to look at what your needs are first.

Make sure that you're secure before you give out of your extra. And so it means that you got to know your numbers, you have to understand, for example, if you're older, how much you have allocated for healthcare, long-term care.

If you don't have long-term-care insurance, you got to make sure that pot of money is there. And then when you do that, when you've assessed it, and say, "Yeah, I've got some extra," then you start to think about: How can I help my adult children, my grandchildren, extended relatives, siblings?

I know for myself and my family, I've got the good job. And so there is a lot of demand on my salaries and savings from family members. And my husband and I have set up a system by which we help folks. And it is very, I have to say, it's pretty intense. And for a reason. There is a practical reason behind that.

Because once your relatives and friends and adult children know that you've got a system in place, they're not going to just come to you with willy-nilly stuff, right? They're going to come with when they really need the money. And that's what you want to hope for.

Benz: Let's talk about this system. You wrote in the book that it is important to have a conversation about the person you want to help's financial situation. So you need to get, as you call it, a little bit in their business. Let's talk about that. Because you want to be sure that, actually, you can help and that you're not just putting a band-aid on what is an ER-type situation. Let's talk about how you go through that assessment.

To continue reading, please go to the original article here:

https://www.morningstar.com/articles/1032992/how-to-help-loved-ones-financially 

45 of the Top Finance Quotes to Boost Your Money Mindset

45 of the Top Finance Quotes to Boost Your Money Mindset

Todd Kunsman  Invested Wallet  in Financial Independence

Looking for finance quotes and quotes about money that can inspire you to take charge of your financial life?

Top Finance Quotes

Even if you aren’t in search currently, these quotes will keep you motivated and make you think differently about finances and money.  For me, besides these personal finance books, reading these particular quotes about money helped me get in the right financial mindset.  I’d recommend even keeping some of these financial quotes at your desk as a healthy reminder or for motivation.

45 Top Finance Quotes

While there are thousands of finance, money, and investing quotes out there, I only chose a small portion of them to keep this simple, yet informative.  These are the quotes that I really like, resonated with me a lot during my financial journey, or made me laugh a bit.  Step your money game up with these interesting, inspiring, humorous and wise quotes.

1. “Rich people have small TVs and big libraries, and poor people have small libraries and big TVs.” – Zig Ziglar

2. “Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like.” – Will Rogers

3. “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

4. “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

5. “An investment in knowledge pays the best interest.” – Benjamin Franklin

6. “Time is more value than money. You can get more money, but you cannot get more time.” – Jim Rohn

7. “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.” – Warren Buffett

8. “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.”- Benjamin Franklin

9. “Friendship is like money, easier made than kept.” – Samuel Butler

To continue reading, please go to the original article here:

https://investedwallet.com/top-finance-quotes/ 

Why Money Is Important and The Role It Plays in Our Lives

Why Money Is Important and The Role It Plays in Our Lives

By Todd Kunsman Invested Wallet

At some point, you may wonder why money is important and start to analyze the role it plays in your own life.  And our society has plenty of different viewpoints when it comes to money and happiness, how much money is truly enough, and how to better with money.  I’m sure you have heard many of the different sayings about money too, whether funny or to hit a particular point to make you think.

You know the ones, like:

“Money doesn’t buy happiness.” – Proverb

“Money is the root of all evil.” – 1 Timothy 6:10

“Having money isn’t everything, not having it is.”  – Kanye West

But you’ve probably heard many proverbs, famous quotes, or other sayings from people around you. And while there may be some truth to not let money dictate your entire life and choices, money IS important.

Why Is Money So Important?

The reason money is so important is that it provides options for you to live a better life that you choose and puts you in control. Having money and being comfortable with finances also gives you freedom and options to decide how you want to live and support the things you care most about in your life.

And yes, it’s true that money cannot necessarily buy you complete happiness forever and greed can make people do terrible things. Look what the hunger for more wealth and money did to Bernie Madoff and how he ruined the many families who invested with him.

But while there is truth to some of the negative connotations to money, ultimately you have the strength to dictate how you use money and if you let it control you.

Money is not everything in this world, but it can be powerful in helping you achieve your goals and let you make the best of the short life we all have.

The Real Benefits of Money

While your whole life does not need to focus on money and accumulating wealth, it is still important to dedicate your time to understanding it and building a strategy. 

Look, we all know that more money means you can generally afford a fancier lifestyle, bigger homes, better vacations, and flashier cars. But those material items are not the real benefits of having money and the temporary excitement from those items quickly wanes.  So why is money important?

To continue reading, please go to the original article here:

https://investedwallet.com/money-is-important/

Is $10,000 A Lot of Money? What You Need To Know

Is $10,000 A Lot of Money? What You Need To Know

As you begin building your net worth and reaching new financial goals, you may set your eyes on reaching $10,000.

Is $10,000 A Lot of Money? It’s a pretty big milestone to hit, especially if you are starting fresh in your financial journey.

The first time I had $10k saved, I had to refresh my bank screen a few times because it didn’t seem real. After all, prior to that goal I typically never had more than $1,000 saved at a time!

And although this is a nice sum of money after you reach this milestone and the excitement wears off a bit, you may stop to wonder a few questions:

Is $10,000 a lot of money? How far will this amount take me? What should I do with this amount of cash?

Is $10,000 A Lot of Money?

Having $10k saved is a commendable milestone but overall it is not typically considered to be a lot of money. For a majority of Americans today, this amount may only cover 3-6 months of living expenses pending their lifestyle and where they live. It seems to fall into the category of “having a lot of money” that you’ll want to have $100k+.

Overall, it’s hard to say an exact number of what constitutes a lot of money as everyone has different personal money mindsets, living expenses, and how you budget your income.

Is $10,000 in Savings Good?

Now don’t get discouraged by the previous section where we’ve basically established that $10,000 is not exactly a lot of money. It’s certainly an awesome achievement, especially when you consider that the Federal Reserve reported that 39% of Americans don’t have enough money on hand to cover a $400 emergency.

So remember, when you hit this $10k savings goal take the time to celebrate and feel good about your efforts. It can be a long journey of work on your personal finances!

So, is $10,000 in Savings Good?

To continue reading, please go to the original article here:

https://investedwallet.com/is-10000-a-lot-of-money/

There Are 7 Money Personality Types

There Are 7 Money Personality Types, says psychology expert—how to tell which one you are (and the pitfalls of each)

Published Wed, Apr 28 2021 Ken Honda, Contributor

We often stress about the importance of financial literacy, such as gaining a strong understanding of how money works and having the resources to make informed decisions.

But when it comes to establishing financial health, one thing most people fail to consider is their money personality type — or their approach and emotional responses to money.

We each have our own beliefs and emotions about money, and they are mostly shaped by our individual life experiences (e.g., passed down from our parents or influenced by our current situations).

In my 10-plus years of researching the psychology of money and happiness, I’ve found that there are seven distinct money personality types. Typically, we fall into a combination of many types, and not just one

Identifying which types you fall under, and understanding the pitfalls of each, can significantly improve your relationship with money. It can help you do things like spend less on impulse purchases, be better about budgeting, invest wisely and ensure a nice nest egg for retirement.

1. The Compulsive Saver

Signs you might be a Compulsive Saver:

You put away money endlessly, sometimes with no actual end goal in mind.

You believe saving money is the only way to feel more secure in life.

You’re very frugal. (Friends will often come to you for advice on which phone company is the cheapest, which point cards are worth it, or when to buy plane tickets at the lowest price.)

Pitfalls: Some Compulsive Savers are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save. For example, they might choose to skip out on hobbies or activities that could bring them happiness and purpose.

Money advice: It’s all about moderation; learn to find a balance between saving money and enjoying life. Think about where you see yourself in the future and how you can use your savings to get there.

To continue reading, please go to the original article here:

https://www.cnbc.com/2021/04/28/7-money-personality-types-and-the-pitfalls-of-each.html

The Power of Financial Habits

The Power of Financial Habits

Samantha Lamas   Feb 10, 2021

Adopting mental shortcuts can help you stick to a budget.

Many financial decisions force us to balance what we want now against what’s better for us in the long term. In this classic want/should conflict, a “want” is something that grants immediate pleasure, while a “should” is something that offers benefits much later--such as healthy retirement savings.

We all know we should be doing things like saving for retirement, paying off our debt, or monitoring our spending, but these "shoulds" are hard to put into practice. Why? Because we are human. We aren’t made to think 30 years from now, even though we should be doing so.   With that in mind, how can we get ourselves to accomplish our "shoulds"? One way is to develop healthy financial habits.

Don’t Underestimate the Power of a Good Financial Habit

Our mind is constantly using mental shortcuts to make decisions, some of which come from our habits. Many of us don’t even notice our own habits because they’ve become something we do automatically. These simple habits make our lives easier by helping us combat the multitude of decisions we make daily. For example, most of us brush our teeth every morning. Instead of waking up each morning and pondering whether to brush our teeth, our habit makes the decision for us. Not only is this one fewer decision we must make, but it also may lead to better dental hygiene.

Similarly, developing the right financial habits may help make decisions easier and improve our overall financial well-being. Many people think that building a habit is all about repetition, but a few other factors must be considered:

1) The difficulty of the behavior

2) The context of the decision

3) The immediate reward associated with the behavior

Keep Your Financial Habits Simple

When it comes to building a habit, the more complex the desired behavior is, the harder it can be. For our finances, using a simple but effective rule of thumb can be a solution.

In our recent research, we began sifting through the many rules of thumb in the media to identify the rules that financially well-off people tend to use. Rules like "Always pay debt in full when possible," "Save up for big purchases," and "Have an emergency fund (to cover three to six months of expenses)" seemed to float to the top. That said, choosing a rule of thumb to follow must be a personalized decision. Try choosing a rule that fits into your lifestyle and can help you reach your financial goals.

To continue reading, please go to the original article here:

https://www.morningstar.com/articles/1022305/the-power-of-financial-habits

Does F.I.R.E. Prevent Divorces?

Does F.I.R.E. Prevent Divorces?

By FIRECracker  April 26, 2021

The F.I.R.E. movement, which stands for Financial Independence, Retire Early.

In my last post about not losing yourself in retirement, reader Steve posted an interesting question in the comments:

“Any thoughts on the FIRE couples that get divorced? One would think that not having money issues (the #1 stressor for married people) and achieving a monumental goal together would strengthen that bond, but apparently there is more to it.”   –Steve

This got me thinking. If money, which is the #1 reason why couples break up, is no longer an issue, why are FIRE couples still getting divorced?

Now, I’m no relationship expert and this is me taking a wild stab at it, so feel free to take it with a grain of salt. Having seen some friends and family get divorced for reasons other than money, I’ve noticed that marital problems don’t just drop on a couple by surprise and then explode their marriage like a grenade. Instead, they pile on gradually like a gentle snowfall. And because it sneaks up on you, you don’t realize until it’s too late that you’re trapped in a blizzard, praying you won’t die a horrible frostbitten death.

I’m not sure how I stumbled on this, but marriage counsellors recognize something called the “Four horsemen of the marriage apocalypse.” These are patterns they see over and over again in seemingly predict marriages that are destined to fail. Intrigued, I started reading up on them and realized, yup, in pretty much every divorce I’ve witnessed, the patterns they describe are eerily familiar.

Curious? Well, here they are…

HORSEMAN #1: CRITICISM

No relationship is perfect, and we’ve all playfully criticized our spouses from time to time. In fact, “taking the piss” and mocking your spouse just shows how much you love them. For example, Wanderer loves it when I make fun of his weak, little girl arms (Wanderer is glaring at me for some reason as I write this). And I love it when he laughs at me for not being able to figure out how to unlock a door.

But when that criticism happens on a daily basis with the intention to hurt the other person, it’s a sign that a relationship could bite it. And when I say criticism, I don’t mean complaints, which are related to actions, like “you didn’t do the dishes!” or “you forgot to take out the trash again!” I mean, nasty, soul-destroying insults that stab you like a steak knife straight through the heart.

Eg. “You’re so lazy! All your friends are more successful than you and all you do is bum around the house.”

Eg. “You’re so selfish! You never think about anyone else but you!”

If your spouse is bombarding you with more criticism than an overbearing tiger mother, this is one of the first signs that your marriage is in trouble.

HORSEMAN #2: CONTEMPT

To continue reading, please go to the original article here:

https://www.millennial-revolution.com/freedom/does-fire-prevent-divorces/

7 Common Money Arguments in Marriage

7 Common Money Arguments in Marriage — And How to Tackle Them Together

By Jeremy Brown Apr 20 2021, 5:31 PM

From misaligned financial visions to lack of follow through on previously set financial goals, these money arguments are very common.

Arguments about money are about more than money. In every heated discussion about overspending, mismanagement, bills being ignored, issues of envy, guilt, shame, fear loom large. Financial therapists and counsellors understand this, which is why, in addition to helping with brass taxes financial decisions, they also look at the emotions behind money arguments. This better helps individuals and couples gain a better sense of the complex mechanisms at work so they can make better decisions and have fewer arguments.

“For many people, the thought of entering financial coaching or money counseling means something is or has gone wrong,” says AJ Bishop, Chief Executive Officer and the Founder of My Wealth Conscious Coach. “Sure, they understand and know they have a disconnect around money, but it’s not an unworkable topic.

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Therefore, good, hardworking, reasonable people attempt to resolve the “I-can-do-it-all-by-myself” items and avoid the major topics and financial issues that do create conflict, tension, and sometimes fights about money.’

Financial counsellors and therapists see a lot of the same arguments over and over again. They’re also keenly able to help couples identify the various larger issues at play and help them end the arguments once and for all. Here, then, are a few of the more common money arguments in marriage they see — and some ways to prevent them from cropping up again and again.

The Money Argument: Your Financial Visions are Misaligned

Very often couples who struggle financially are not on the same page when it comes to their overall vision. They have different priorities on what is important, spending-wise, or different ideas on how to spend money.

This can create problems right from the start that can only grow worse over time. One person wants to go on a lavish vacation, while the other wants to save to buy a house. Over time, each person comes to resent the other, thinking that they’re either cheap or that they spend too much.

The Solution: Couples need to sit down separately and map out their own financial visions and then do the same thing together. And, if you’ve done that already, do it again and often. “Priorities, goals and objectives change regularly,” Bishop says. “Don’t make assumptions that you’re heading in the same direction because you had the conversation that one time.”

The Money Argument: There’s no follow-through on financial goals

To continue reading, please go to the original article here:

https://www.fatherly.com/love-money/money-arguments-in-marriage/

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3 Important Lessons I Learned from Collecting Baseball Cards

3 Important Lessons I Learned from Collecting Baseball Cards

MAY 10, 2021

A few weeks ago my dad asked me to list a few baseball cards on eBay. The cards were 2001 rookie cards of Ichiro Suzuki and Albert Pujols. To my surprise, each card sold for several hundred dollars really fast. Listing those cards brought back old memories of collecting baseball cards as a kid. This post goes over three important life lessons I’ve taken into adulthood from my time collecting baseball cards.

My Saturday nights as a pre-teen were often spent swapping baseball cards with friends. My best friend lived three houses up the street and was my main trading partner. We’d often have sleep-overs filled with wrestling videos, video games, and an all-out baseball card exchange.

Yes, I was (and still am) a huge nerd.

Professional Skills Learned from Collecting Baseball Cards

While going through my old collection, I came across the crown jewel of most baseball card collections from the early 90s. A Ken Griffey Jr. 1989 Upper Deck rookie card. First of all, it makes me feel super old that Ken Griffey Jr. has been retired for more than 10 years (and let’s be honest, he’s pretty much been retired since 2000 when he left Seattle).

Even though most of the cards in what’s left of my collection are worthless, it got me thinking about all of the lessons I learned from collecting baseball cards as a youngster.

Collecting cards taught me how to negotiate with friends and vendors at a young age. It also taught me how to make what seemed at the time like tough and sometimes emotional decisions. As silly as it sounds, I used to get very attached to cards in my collection. Last but not least, it helped to estimate the future value of an asset.

Even my decision to major in finance was in some ways driven by collecting baseball cards. My mom used to say, “You should be a stock broker, it’s like trading baseball cards only with stocks!” While this didn’t make much sense at the time, I can see the connection now. Baseball cards are an asset with a present value based on a variety of different factors. The goal is to predict the future value of the asset to maximize return.

Below are a few of the lessons I learned from collecting baseball cards as a kid.

Negotiation Skills

To continue reading, please go to the original article here:

https://www.financialpilgrimage.com/heres-what-i-learned-from-collecting-baseball-cards/?utm_source=rss&utm_medium=rss&utm_campaign=heres-what-i-learned-from-collecting-baseball-cards

Sleeping with Cash

Sleeping with Cash

Andrew Forsythe    May 6, 2021

HERE AT HUMBLEDOLLAR and in many other places, this point has been made: The best investment portfolio isn’t the one that’s theoretically or empirically superior. Rather, it’s the one that lets you sleep at night.  What I’ve found, as far as my portfolio goes, is that the necessary prerequisite for a good night’s sleep is one thing above all else: an oversized cash reserve. By that, I mean a cash hoard that can handle not only the most likely contingencies, but also unexpected ones—and then some.

I typically keep enough cash to finance our normal expenditures for at least six years. In fact, with the current bubbly stock market, I’m above that level. To back that up, I also have a decent allocation to bond funds, consisting mostly of an intermediate-term municipal fund in a taxable account and total bond market index funds in retirement accounts.

Back in 2017, author William Bernstein was quoted in HumbleDollar saying, “When you’ve won the game, stop playing with money you really need.” That insight struck a chord with me, and it’s one of the reasons I’ve come to value cash.

I’m less interested in getting richer and more interested in guaranteeing that the modest lifestyle that has served my wife and me so well can be maintained for as long as we remain on this planet, regardless of any curveballs thrown our way.

The importance of a good-sized cash reserve was brought home to me over my many years as a criminal defense lawyer. While my early days often involved more dramatic and serious cases, later on my bread-and-butter business was representing basically good, decent people who (or whose kids) made a mistake or two: driving while intoxicated, drug possession and various other weaknesses of the “there but for the grace of God go I” type.

What constantly amazed me was how many of these seemingly middle-class folks, at a time of real urgency, struggled to come up with even a modest down payment for my services. For most garden variety misdemeanors, I had long believed it was reasonable to ask for a $1,000 retainer, with a payment plan for any remaining balance that stretched over several months.

To continue reading, please go to the original article here:

https://humbledollar.com/2021/05/sleeping-with-cash/