Rude Money Habits You Need To Break Now
.Rude Money Habits You Need To Break Now
Gabrielle Olya Tue, June 8, 2021,
Money can be a touchy subject, so how you approach it with others may take some extra thought and consideration. And although everyone has different levels of comfort when it comes to how they approach finances with friends, family and people they are doing business with, some behaviors are outright rude no matter who you are dealing with.
Here are 10 rude money habits you need to break now.
Money can be a touchy subject, so how you approach it with others may take some extra thought and consideration. And although everyone has different levels of comfort when it comes to how they approach finances with friends, family and people they are doing business with, some behaviors are outright rude no matter who you are dealing with.
Rude Money Habits You Need To Break Now
Gabrielle Olya Tue, June 8, 2021,
Money can be a touchy subject, so how you approach it with others may take some extra thought and consideration. And although everyone has different levels of comfort when it comes to how they approach finances with friends, family and people they are doing business with, some behaviors are outright rude no matter who you are dealing with.
Here are 10 rude money habits you need to break now.
Money can be a touchy subject, so how you approach it with others may take some extra thought and consideration. And although everyone has different levels of comfort when it comes to how they approach finances with friends, family and people they are doing business with, some behaviors are outright rude no matter who you are dealing with.
Asking How Much Someone Paid for Something That You Have No Intention To Buy
"It’s not polite to just ask prices of things," said Jennifer Porter, an etiquette expert and manners teacher in Seattle. "Some people love sharing prices, but unless it is offered, that is private information."
The exception to this rule is asking about pricing for something that you are interested in purchasing.
"It can be appropriate to open a conversation about how you’ve been looking for X and wondered what range a friend paid for a similar item," Porter said.
Asking To Borrow Money From Friends
Porter said that asking a friend to lend you money is an etiquette no-no. You may borrow money from a family member under certain circumstances, but if you do, have "a written plan and timeline to pay it back and offer to pay a small interest rate or whatever the ‘lender’ stipulates," Porter said.
Discussing Salary
It's rude to ask how much money someone else makes, and it's also rude to share how much money you make (unless there is good reason to do so, i.e. someone is looking for a job in your field and wants to know a typical salary range).
"This can make people feel uncomfortable," Porter said.
Not Tipping at a Restaurant
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/rude-money-habits-break-now-110024151.html
Financial Checklist for the Newly Married
.Financial Checklist for the Newly Married
Relationships & Money
Congratulations! You just got married! Maybe you even tied the knot without spending a fortune (now that is truly a feat). Regardless, you managed to get married in the middle of a global pandemic, so you deserve major kudos.
Now what?
As a newly-christened household, there are financial steps you and your partner need to take to make sure you’re legally and financially starting off on the right foot.
Financial Checklist for the Newly Married
Relationships & Money
Congratulations! You just got married! Maybe you even tied the knot without spending a fortune (now that is truly a feat). Regardless, you managed to get married in the middle of a global pandemic, so you deserve major kudos.
Now what?
As a newly-christened household, there are financial steps you and your partner need to take to make sure you’re legally and financially starting off on the right foot.
Newlywed Legal and Financial Considerations
Changing Your Name
Ahh, the romantic considerations of… a name change.
In Western culture, a woman has traditionally taken the last name of her partner. In Latin America, Asia, and many other parts of the world, women retain their maiden names for their entire lives. Nowadays, things have changed a bit–your partner may take your last name, you may both keep your last names, or you may hyphenate. Whatever you decide, you’ll need to make your new names legal as one of the first tasks of married life. If you’re changing your name, you won’t be able to set up a new joint bank account, get a passport, or put your name on a joint house title without updating certain legal documents.
After getting married, your first step to changing your name is getting a copy (or two) of your marriage license.
The officiant who performed your ceremony should have given you a copy when you got married. But if not, you can request a copy from the Vital Records Office in the county where you got married.
Then, you can apply online or in person to update your Social Security card. Once your Social Security card is updated, you’ll need to make a trip to the good ‘ole DMV and get your license changed.
Eventually, you’ll also need a new passport (remember those?). For a name change on your passport, fill out a name change application here and apply by mail.
Others who will need to Know
Additional places or documents you may need to update or notify of your change in name and marital status include:
To continue reading, please go to the original article here:
3 Money Moves Every Woman Must Make, According to Rachel Cruze
.The Financially Savvy Female: 3 Money Moves Every Woman Must Make, According to Rachel Cruze
Gabrielle Olya Sun, June 6, 2021, 6:00
OBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall. Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
What is the biggest obstacle you face when it comes to financial success?
The Financially Savvy Female: 3 Money Moves Every Woman Must Make, According to Rachel Cruze
Gabrielle Olya Sun, June 6, 2021, 6:00
OBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall. Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
What is the biggest obstacle you face when it comes to financial success?
Comparison is probably the biggest struggle for me. It’s so hard to avoid these days because you don’t have to live next door to the Joneses to see their new car — we carry them around in our back pockets. But we’re comparing our real lives to someone else’s highlight reel. Comparison will steal your joy and your paycheck.
One of the best ways to overcome this is to unfollow accounts on social media that tempt you to shop. Out of sight, out of mind — you need to put some blinders on and focus on your own goals in life. Money is the tool to help you achieve them, and it’s hard to win with money when you’re spending it based on someone else’s values.
What is the best piece of advice you received along your financial journey?
Don’t do debt. Period! Debt will keep you paying for your past when you should be focused on your present and future. Our culture has normalized debt, but 78% of Americans live paycheck to paycheck. Not to mention that 40% of people can’t cover a $400 emergency with cash.
Being “normal” is not setting you up for financial freedom. Look, money flows two ways. If you’re spending more than you make, you’ll continue to repeat the cycle of debt. Start living below your means and cut down on expenses. It’s a simple concept, but it’s not the norm these days. Start budgeting your money and saving up for purchases that you would normally swipe a credit card to purchase. Practice delayed gratification!
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/financially-savvy-female-3-money-220016201.html
If Billionaires and Insiders Are Nervous About Markets, Should You Be?
.If Billionaires and Insiders Are Nervous About Markets, Should You Be?
Tim Staermose admin@sovereignman.com Tue, May 25 at 1:10 PM
Markets are frothy. Billionaires are bailing. But opportunities exist… for the right investor.
What do billionaires and company insiders know that you don’t?
So far in 2021, they have sold $24.4 BILLION worth of stocks.
Since November 2020, Facebook’s Mark Zuckerberg and his charity have sold $1.87 billion. Amazon’s Jeff Bezos has sold $6.7 billion in 2021. A couple of weeks ago, Larry Ellison of Oracle sold (only) $552 million of Oracle stock. Small investors are piling into overvalued markets.
If Billionaires and Insiders Are Nervous About Markets, Should You Be?
Tim Staermose admin@sovereignman.com Tue, May 25 at 1:10 PM
Markets are frothy. Billionaires are bailing. But opportunities exist… for the right investor.
What do billionaires and company insiders know that you don’t?
So far in 2021, they have sold $24.4 BILLION worth of stocks.
Since November 2020, Facebook’s Mark Zuckerberg and his charity have sold $1.87 billion. Amazon’s Jeff Bezos has sold $6.7 billion in 2021. A couple of weeks ago, Larry Ellison of Oracle sold (only) $552 million of Oracle stock. Small investors are piling into overvalued markets.
But the smart guys are heading for the exits. And they may be correct to sell right now...
The average Price/Earnings ratio in the S&P 500 is 44, which is about 3x the historic average. It’s only been higher two other times — just before the 2000 crash, and just before the 2008 crash.
(As the name suggests, a company’s Price/Earnings (P/E) ratio measures its share price relative to its per-share earnings. Analysts and investors use P/E ratios to compare companies’ relative values.)
We’re not forecasting that a market crash is imminent. But at these valuations, it’s wise to exercise some caution.
Because financial markets are completely detached from reality…
In the United States alone, almost 10 million people remain unemployed. Thousands of small businesses are forever shuttered. Rising capital costs and labor shortages may close thousands more in the coming months.
And it’s not just small businesses that are in trouble…
Before COVID-19 struck, out of 3,000 large, publicly traded US companies, there were about 400 “zombies”. Zombie companies cannot generate enough operating income to cover their interest payments.
And the number of zombies has ballooned recently. Now, there are more than 600 zombie companies, with $2.6 TRILLION in total debt.
But again, most investors apparently don’t care about economic reality. Stock markets keep charging higher… with no regard for these clear risks.
Meanwhile, US Treasury bonds are no longer the “risk-free” investment that they once were.
Last year, when markets melted down, foreign investors and central banks didn’t rush into US Treasurys. Actually, foreigners sold $1 trillion of US Treasurys overnight.
How about cryptocurrencies as an alternative to stocks and bonds?
Despite what the fanatics proclaim, cryptocurrencies are not yet a stable store of value. For example, in the past month, bitcoin plummeted over 40%. And then quickly rebounded 10%.
So, since…
Stock markets are beyond frothy;
Treasury bonds are fraught with risk (especially with higher inflation coming);
And cryptocurrencies are not a stable store of value…
Then, at times like these, where can the rational, cautious investor safely invest capital?
Fortunately, there are still pockets of value where you can make money. Minimal downside and big upside — 54%, 120%, 250%, and even 303% profits.
You just need to:
Be extremely disciplined - with both your capital and time horizon;
And know where to look (NOT in US markets);
Let’s be clear: This type of investing is not for everyone.
If you lack the patience for your stock prices to increase…
If you cannot imagine suffering 10%, 20%, 30% losses, even though they’re temporary…
If you’re constantly checking the value of your portfolio on your phone…
Then you’re not cut out for this type of investing strategy. We’ll save you some time. You can close this email, and you can ignore this week’s remaining emails.
But if you have a long-term investment horizon with a classic asset allocation, then the risk is minimal, and the rewards are potentially unlimited.
We know that it’s your vision, discipline, and hard work that will reap the rewards. And we understand that you will build something lasting for years to come — something with real value.
Stay tuned for tomorrow to see how you can invest in real value and create true long-lasting wealth.
To your investment success, Tim Staermose, Chief Investment Officer, SovereignMan.com
How To Keep Your Financial Planning On Track in 2021
.How To Keep Your Financial Planning On Track in 2021
Resolutions lost their shine? Here’s how to get back the spark.
By Nicole Spector June 2, 2021
No matter how enthusiastic our New Year’s resolutions may have been to save more, spend less and/or take total ownership of our finances in 2021, they might now be losing their luster. The days since we made those ambitious resolutions are quickly passing and the shine is wearing off. Can’t we just cut ourselves some slack and do what makes us feel good and safe in the immediate sense, even if that means forsaking our lofty financial goals?
Try, if you can muster the energy, to return to that place of desire for a better financial life. If you feel that you’ve already blown it by, say, spending beyond your weekly budget or skipping a credit card payment, remember that a mistake doesn’t mean you can’t try again and have success. But don’t take it from me: Take it from the experts who’ve provided a road map to keep (or get) your financial planning on track in 2021.
How To Keep Your Financial Planning On Track in 2021
Resolutions lost their shine? Here’s how to get back the spark.
By Nicole Spector June 2, 2021
No matter how enthusiastic our New Year’s resolutions may have been to save more, spend less and/or take total ownership of our finances in 2021, they might now be losing their luster. The days since we made those ambitious resolutions are quickly passing and the shine is wearing off. Can’t we just cut ourselves some slack and do what makes us feel good and safe in the immediate sense, even if that means forsaking our lofty financial goals?
Try, if you can muster the energy, to return to that place of desire for a better financial life. If you feel that you’ve already blown it by, say, spending beyond your weekly budget or skipping a credit card payment, remember that a mistake doesn’t mean you can’t try again and have success. But don’t take it from me: Take it from the experts who’ve provided a road map to keep (or get) your financial planning on track in 2021.
1. Don’t Just Track Your Spending, Chart It
“Many people simply track their finances automatically with an app – which is a great start, but what these apps don’t account for is when you stray or get off-target with your financial goal, which happens a lot,” says Amanda L. Grossman, a certified financial education instructor and personal finance blogger at FrugalConfessions.com. “What you want to do is to start calculating and then tracking the gap between where you are, and where you should be, according to your financial plan or goal.”
Visualizing your spending and how you’re tracking toward your financial goals is easy to do with Monifi. With the Monifi mobile banking app, your transactions are automatically categorized, so you can see at a glance where your money is going. Personalized tags and notes make it even easier to have a clear picture of how your spending stacks up against every budget item and goal you set.
Plus, you can make some extra cash — Monifi is currently offering $250 for new and recent account holders if you make two direct deposits of at least $1,000 into your Spend Balance. A Monifi account also comes with a complimentary contactless debit card and free access to the AllPoint ATM network.
2. Examine 2020’s Spending Habits and Plan for 2021
“The pandemic helped consumers reevaluate spending in terms of what they needed, versus what they wanted,” says Angela Holliday, president of Frost Brokerage Services, Inc. and Frost Investment Services, LLC. “With this in mind, take a look at how you managed to cut costs in 2020 and apply that where you can in 2021. Then, use the extra cash to pay off your debt. This will help you continue good habits so you can prosper in the new year.”
3. Budget for Savings
To continue reading, please go to the original article here:
30 Essential Money Habits
.30 Essential Money Habits
By Elyssa Kirkham March 19, 2021
These money habits will help you grow your bank account.
What are you doing every day that can help you grow your bank account? If you can't answer that question, it's time to develop some new money habits. Just like with your physical health, your financial health depends on the daily decisions you make every day. While healthy habits such as eating better and exercising keep you fit, certain money habits can keep you financially comfortable and help you establish wealth.
1. Spend Less Than You Earn
This habit is Personal Finance 101. It's always going to be true that you'll never get ahead financially if you always have more money going out than coming in. The great news is there are two ways you can work on this habit: Focus both on growing your income and controlling your spending to live within your means.
30 Essential Money Habits
By Elyssa Kirkham March 19, 2021
These money habits will help you grow your bank account.
What are you doing every day that can help you grow your bank account? If you can't answer that question, it's time to develop some new money habits. Just like with your physical health, your financial health depends on the daily decisions you make every day. While healthy habits such as eating better and exercising keep you fit, certain money habits can keep you financially comfortable and help you establish wealth.
1. Spend Less Than You Earn
This habit is Personal Finance 101. It's always going to be true that you'll never get ahead financially if you always have more money going out than coming in. The great news is there are two ways you can work on this habit: Focus both on growing your income and controlling your spending to live within your means.
2. Keep Looking for New Earning Opportunities
As much as controlling spending is an essential habits, earning more money can be just as important. Look for ways to increase your income.
It could be something small, like babysitting once a week or bigger like selling crafts online.
3. Grow and Invest Your Money
In addition to looking for ways to earn money, financially savvy people also look for ways to grow the money they have. That can be as simple as finding a high-yield savings account where you can stash your funds and earn more than you would with a lower interest savings or checking account.
4. Continuously Pay Down Debt
Interest and debt can hold you back financially. It’s nearly impossible to get ahead and create a financially secure future when you’re always paying off yesterday’s purchases.
Whatever your debt repayment plan is, you need to stick to it and ideally pay more than the minimum every month to make a bigger impact.
5. Pay Yourself First
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/budgeting/essential-money-habits/
27 Things You Should Never Do With Your Money
.27 Things You Should Never Do With Your Money
By Roger Wohlner June 1, 2021
Avoid these big money mistakes and keep more of your cash.
There is possibly an endless list of things you shouldn't do with your money. But from bad habits to decisions based on wishful thinking, some of the bigger missteps can really cost you. To find out the biggest money mistakes you should avoid, GOBankingRates asked financial experts for their best advice.
Never Cash Your Paycheck Right Away
If you cash your paycheck right away, you might burn through it too quickly.
"You will most certainly spend it all if you cash your paycheck rather than have your employer directly deposit it into your bank account," said Barbara Friedberg, a personal finance consultant. "Even better is to automatically transfer a percent of your paycheck into a retirement investment account and direct-deposit the remainder into a bank account."
27 Things You Should Never Do With Your Money
By Roger Wohlner June 1, 2021
Avoid these big money mistakes and keep more of your cash.
There is possibly an endless list of things you shouldn't do with your money. But from bad habits to decisions based on wishful thinking, some of the bigger missteps can really cost you. To find out the biggest money mistakes you should avoid, GOBankingRates asked financial experts for their best advice.
Never Cash Your Paycheck Right Away
If you cash your paycheck right away, you might burn through it too quickly.
"You will most certainly spend it all if you cash your paycheck rather than have your employer directly deposit it into your bank account," said Barbara Friedberg, a personal finance consultant. "Even better is to automatically transfer a percent of your paycheck into a retirement investment account and direct-deposit the remainder into a bank account."
One advantage of having a workplace retirement plan, such as a 401(k), is that money is automatically deducted from your pay and invested. You don't see it, so you won't spend it. You can use a budgeting template to get the most mileage out of your paycheck.
Never Fall For 'Special' Finance Deals You Can’t Afford
Promotional finance offers that provide zero or low interest rates on a big purchase might sound like a great deal -- until you wind up paying more than you expected. That's what happened to Grayson Bell, founder of personal finance website Debt Roundup.
"Don't finance a new vehicle, or watercraft in my case, based on the low promotional monthly payment," he said. "I financed a new $10,000 Jet Ski with no money down and no real way to pay for it based on a radio ad promoting a super low $69 per month payment. What I didn't read was the rate was only for two years, then it changes to include retroactive interest based on the loan amount."
"Those financing deals can ruin you if you're only looking at the monthly payment," he continued. "Go through the math and read all of the fine print. They get you in with the low monthly payments, but keep you paying for much longer than you anticipated."
Never Miss Out on Making Money With Your Money
When you pick out a checking account to use, you want to make sure you’re making the most of your options. The average checking account comes with an interest rate1 of 0.03%, if it has any at all, so you’ll want to shop around for the best options.
Depending on your daily balance, with PenFed’s Access America Checking account2, you can earn up to 0.35% APY3 with a monthly direct deposit of $500 or more. By using this account, you’ll be earning up to 11 times the average, which means your money will be doing more for you here than with other average checking accounts.
To continue reading, please go to the original article here:
One advantage of having a workplace retirement plan, such as a 401(k), is that money is automatically deducted from your pay and invested. You don't see it, so you won't spend it. You can use a budgeting template to get the most mileage out of your paycheck.
Never Fall For 'Special' Finance Deals You Can’t Afford
Promotional finance offers that provide zero or low interest rates on a big purchase might sound like a great deal -- until you wind up paying more than you expected. That's what happened to Grayson Bell, founder of personal finance website Debt Roundup.
"Don't finance a new vehicle, or watercraft in my case, based on the low promotional monthly payment," he said. "I financed a new $10,000 Jet Ski with no money down and no real way to pay for it based on a radio ad promoting a super low $69 per month payment. What I didn't read was the rate was only for two years, then it changes to include retroactive interest based on the loan amount."
"Those financing deals can ruin you if you're only looking at the monthly payment," he continued. "Go through the math and read all of the fine print. They get you in with the low monthly payments, but keep you paying for much longer than you anticipated."
Never Miss Out on Making Money With Your Money
When you pick out a checking account to use, you want to make sure you’re making the most of your options. The average checking account comes with an interest rate1 of 0.03%, if it has any at all, so you’ll want to shop around for the best options.
Depending on your daily balance, with PenFed’s Access America Checking account2, you can earn up to 0.35% APY3 with a monthly direct deposit of $500 or more. By using this account, you’ll be earning up to 11 times the average, which means your money will be doing more for you here than with other average checking accounts.
To continue reading, please go to the original article here:
Getting Schooled on Becoming More Financially Literate
.Getting Schooled on Becoming More Financially Literate
Dennis Friedman November 5, 2019 Humble Dollar
MANY BELIEVE we’ve raised a bunch of financial illiterates. If people were better educated about personal finance, the argument goes, they’d make smarter money decisions. North Carolina this year became the 20th state to require high schoolers to take a financial literacy class. Its Lieutenant Governor, Dan Forest, said the new law would “ensure future students, prior to graduating high school, will be more financially literate and economically sound in their decision making as adults.”
But many aren’t sold on the idea that a personal finance class in high school is going to make much of a difference. According to the Huffington Post, “The way we make financial decisions has more to do with our money personality, our math skills, logical thinking, the ability to investigate, the confidence to ask questions and spot BS answers, and recognizing the unconscious influences in ourselves that have long been studied by behavioral scientists.”
Getting Schooled on Becoming More Financially Literate
Dennis Friedman November 5, 2019 Humble Dollar
MANY BELIEVE we’ve raised a bunch of financial illiterates. If people were better educated about personal finance, the argument goes, they’d make smarter money decisions. North Carolina this year became the 20th state to require high schoolers to take a financial literacy class. Its Lieutenant Governor, Dan Forest, said the new law would “ensure future students, prior to graduating high school, will be more financially literate and economically sound in their decision making as adults.”
But many aren’t sold on the idea that a personal finance class in high school is going to make much of a difference. According to the Huffington Post, “The way we make financial decisions has more to do with our money personality, our math skills, logical thinking, the ability to investigate, the confidence to ask questions and spot BS answers, and recognizing the unconscious influences in ourselves that have long been studied by behavioral scientists.”
There are many studies that show that teaching financial literacy in high school has little effect on how people handle money. For example, a 2014 paper for the journal Management Science looked at the results from nearly 170 papers covering more than 200 scientific studies on financial literacy. It found that financial education did little to improve subsequent financial behavior.
According to Timothy Ogden, managing director of the Financial Access Initiative, a research center, “It’s easy to boost financial knowledge: Lots of programs show positive outcomes when you ask people a few questions before and after a financial-ed course. Unfortunately, the impact disappears when you measure what people who take the courses actually do (not just what they say they do, which is a problem with a lot of studies that claim to find an impact).”
What these studies may be telling us is that we need to change the way we teach financial literacy. Financial education can have more of an impact if it’s based on the students’ short-term needs and delivered in a timely manner. For example, teaching high schoolers about college loans and credit card debt could make a difference in the debt load of students going to college.
Personal finance classes also need to deal with economic realities. How to find the lowest interest rate on a car loan is more important than how to calculate interest on that loan.
We should keep in mind that just because you know more about personal finance doesn’t mean you’re going to behave better. We all have emotions and biases that can keep us from making rational decisions.
To continue reading, please go to the original article here:
What to Worry About and Four Things You Can Do
.What to Worry About and Four Things You Can Do
Adam M. Grossman | July 19, 2020 Humble Dollar
IN RECENT WEEKS, I’ve focused on some of the growing risks in the financial system. In the stock market, there are day trading enthusiasts and their obliging brokers. In Washington, there’s a Federal Reserve that has served up a seemingly bottomless punch bowl of new money.
Result: Despite the current recession and 11% unemployment, the stock market is close to its pre-coronavirus all-time high, fueled in part by the Fed’s policies, which have driven income-starved investors to take greater risk. Meanwhile, the federal budget deficit has gone into the stratosphere—in June alone the deficit was $863 billion, up from $8 billion last year—and the Fed has printed about three trillion new dollars.
What to Worry About and Four Things You Can Do
Adam M. Grossman | July 19, 2020 Humble Dollar
IN RECENT WEEKS, I’ve focused on some of the growing risks in the financial system. In the stock market, there are day trading enthusiasts and their obliging brokers. In Washington, there’s a Federal Reserve that has served up a seemingly bottomless punch bowl of new money.
Result: Despite the current recession and 11% unemployment, the stock market is close to its pre-coronavirus all-time high, fueled in part by the Fed’s policies, which have driven income-starved investors to take greater risk. Meanwhile, the federal budget deficit has gone into the stratosphere—in June alone the deficit was $863 billion, up from $8 billion last year—and the Fed has printed about three trillion new dollars.
A reader asked which posed a bigger risk, an overeager stock market or an overspending government. My response: These risks aren’t the only risks. In fact, the worst risks are the ones we aren’t currently paying attention to. Risks that catch us by surprise are, by definition, the ones we’re least prepared for. Below are just a few examples. Some of these represent risks to the entire system, while others may impact us individually.
Cybersecurity. Talk to folks who work for financial institutions, and they’ll tell you that their computer systems are attacked every day. Fortunately, most attacks are unsuccessful. But I worry about a situation where a major bank’s systems are compromised. The result would be chaos, even if the problems were eventually sorted out.
Identity theft and other types of fraud. In the past, I’ve mentioned Peter Willmott, the former chief executive of Federal Express, whose own bookkeeper stole nearly $10 million from him. Ulysses S. Grant, a former president, found himself bankrupted by a Ponzi scheme late in life. Fortunately, these are the exception rather than the rule, but they illustrate that fraud can affect anyone.
Litigation. Travel down a highway in many states, and you’ll see billboards blanketed with ads for attorneys. “Injured? Call us!” If you’re a physician or a small business owner, litigation is a perennial risk. But the fact is, it can impact anyone who owns a home or drives a car.
Political risk. Ever since the 2000 election got hung up in litigation, I get a little nervous in election years. The reality is that financial markets are mostly agnostic to political parties, but they hate uncertainty. To have the Oval Office hanging in the balance may be the worst kind of uncertainty.
To continue reading, please go to the original article here:
Watch Your Wallet
.Watch Your Wallet
Joe Kesler | March 13, 2021 Humble Wallet
AS A BANKER, I got a ringside seat from which to watch the many ways that people are separated from their hard-earned money. Some are illegal. Some are legal, but unethical. And many, while legal and ethical, would be unnecessary with a little more knowledge about managing money. For me, the most disturbing experiences were when scammers extracted money from the naïve and innocent. I’ve seen the pain of customers who found out that their elderly mother had given her life savings to a manipulative TV preacher. Unfortunately, there isn’t a lot that can be done in such situations.
Even sadder are the lonely people who develop an online romance with someone overseas. To come to the U.S., somebody convinced one of my customers to wire funds, so he could get a passport and airline ticket. But that wasn’t enough. Just send a little more, he told her numerous times. Finally, the lightbulb came on that this might be a scam.
Watch Your Wallet
Joe Kesler | March 13, 2021 Humble Wallet
AS A BANKER, I got a ringside seat from which to watch the many ways that people are separated from their hard-earned money. Some are illegal. Some are legal, but unethical. And many, while legal and ethical, would be unnecessary with a little more knowledge about managing money. For me, the most disturbing experiences were when scammers extracted money from the naïve and innocent. I’ve seen the pain of customers who found out that their elderly mother had given her life savings to a manipulative TV preacher. Unfortunately, there isn’t a lot that can be done in such situations.
Even sadder are the lonely people who develop an online romance with someone overseas. To come to the U.S., somebody convinced one of my customers to wire funds, so he could get a passport and airline ticket. But that wasn’t enough. Just send a little more, he told her numerous times. Finally, the lightbulb came on that this might be a scam.
Have you heard of the Nigerian prince scam? I didn’t believe any sophisticated person would fall for such a crazy scheme. But a customer of mine got a fax from a “prince” trapped in Nigeria. The fax promised that if my customer, an accountant no less, would wire $20,000, it would allow the prince to wire my customer millions. Unfortunately, my customer bought it and lost not only his money, but also his reputation.
Rather than absorb the loss and move on, my customer decided to fly to Nigeria to “get his money back.” He didn’t get his money back, but at least he came back alive.
Today, many scams are high tech. It’s become common for computer hackers to demand ransom in return for unlocking vital computer systems. I’ve talked to businesses that have had to pay the ransom in bitcoin—or risk seeing their business fail.
Selling fear. One of the earliest books I read on investing was How to Prosper During the Coming Bad Years, published in 1979. It scared me that we were on the brink of destruction. I didn’t have much money, but I bought goldmining stocks in countries I couldn’t even find on a map. I later learned that fear sells books and newsletters. But it doesn’t lead to clear thinking or prosperity.
Today’s marketers still seek to get your money through fear tactics. I recently saw an economist’s newsletter that included an impressive array of charts, all showing how the stock market is in a bubble. His pitch? The future doesn’t belong to passive low-cost index investors like me. Rather, I should turn my money over to him, because he’s going to be an expert stock picker as the markets crash.
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How Much House Can I Afford?
.How Much House Can I Afford?
Jason Lee May 21, 2021 The Simple Dollar
To understand how much house you can afford, you need to take into account two important factors — what lenders will approve you for and what fits within your budget. The good news is that these budgetary guidelines typically line up. Even so, you will need to make sure you don’t take on more house than you can afford just because the lender is willing to approve a loan for that amount.
How much home can I afford?
Lenders look at a long list of criteria to determine the amount of house they’re willing to approve you for. The list includes things like your current monthly debt payments, your total debt, your income, your credit score, your current assets, how much of a down payment you can make and the current status of the economy.
How Much House Can I Afford?
Jason Lee May 21, 2021 The Simple Dollar
To understand how much house you can afford, you need to take into account two important factors — what lenders will approve you for and what fits within your budget. The good news is that these budgetary guidelines typically line up. Even so, you will need to make sure you don’t take on more house than you can afford just because the lender is willing to approve a loan for that amount.
How much home can I afford?
Lenders look at a long list of criteria to determine the amount of house they’re willing to approve you for. The list includes things like your current monthly debt payments, your total debt, your income, your credit score, your current assets, how much of a down payment you can make and the current status of the economy.
1. The 5 Cs of lending
According to Wells Fargo, lender approval can be summarized as the five Cs — credit history, capacity, collateral, capital and conditions.
Credit history is your credit score and your past borrowing history can be found in your credit report. Capacity refers to what you can afford. Often, this is a look at your debt-to-income ratio — how much you are paying in debt monthly versus how much income you are bringing in.
Collateral in a home purchase will be the physical home you are buying, which becomes collateral the bank or lender can seize when you don’t repay your loan. Capital deals with what other assets you might have to help with repayment of the loan, and conditions are the purpose of the loan, the market environment and the status of the economy.
2. The rule of 20
A rule that may be somewhat antiquated — but is still widely cited as important — is the rule of 20. According to this rule, homebuyers should not purchase a home unless they are prepared to make a 20% down payment on top of the additional costs associated with purchasing the home. For example, if you are looking to buy a $300,000 home, under this rule, you should be prepared to make a down payment of $60,000.
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https://www.thesimpledollar.com/mortgage/how-much-house-can-i-afford/