Dynastic Wealth
.Dynastic Wealth
Published July 7, 2021 by Jim Wang
As the lyrical poet Christopher Wallace once said, “Mo’ money, mo’ problems.”
I don’t know what it’s like to have dynastic wealth. We’ve done well financially and as the numbers get bigger, sometimes the stress of the markets can bleed over.
1% of $10,000 is a mere hundred bucks. It’s not chump change, per se, but it’s something I can accept and stomach without incident.
1% of $1,000,000 is $10,000 – which is more than twice what my starting salary was at my first job out of college with Northrop Grumman (and in fact is more than any monthly salary I’ve ever had).
I can only imagine what it’s like to have dynastic wealth, especially one you didn’t have a hand in building, and seeing similar activity.
Dynastic Wealth
Published July 7, 2021 by Jim Wang
As the lyrical poet Christopher Wallace once said, “Mo’ money, mo’ problems.”
I don’t know what it’s like to have dynastic wealth. We’ve done well financially and as the numbers get bigger, sometimes the stress of the markets can bleed over.
1% of $10,000 is a mere hundred bucks. It’s not chump change, per se, but it’s something I can accept and stomach without incident.
1% of $1,000,000 is $10,000 – which is more than twice what my starting salary was at my first job out of college with Northrop Grumman (and in fact is more than any monthly salary I’ve ever had).
I can only imagine what it’s like to have dynastic wealth, especially one you didn’t have a hand in building, and seeing similar activity.
I Was Taught From a Young Age to Protect My Dynastic Wealth [The Atlantic] – “When you come into money as I did—young, scared, and not very savvy about the world—you are taught certain precepts as though they are gospel: Never spend the “corpus” (also known as the capital) you were left. Steward your assets to leave even more to your children, and then teach them to do the same. And finally, use every tool at your disposal within the law, especially through estate planning, to keep as much of that money as possible out of the hands of government bureaucrats who will only misuse it.”
I Was Taught From a Young Age to Protect My Dynastic Wealth
A common ideology underlies the practices of many ultra-wealthy people: The government can’t be trusted with money.
By Abigail Disney JUNE 17, 2021
About the author: Abigail Disney is a documentary filmmaker, a co-founder of Fork Films, and the host of the podcast All Ears.
When ProPublica published its report last week on the tax profiles of 25 of the richest Americans, jaws dropped across the United States. How was it possible that plutocrats such as Elon Musk, Jeff Bezos, and Warren Buffett could pay nothing in income taxes to the federal government? What sneaky sleights of pen, what subterfuge, what acts of turpitude could have led to this result?
The shock stems, in part, from a disturbing reality: Nowhere does ProPublica assert that these men cheated, lied, or did anything felonious to lower their tax burdens. The naked fact of the matter is that not a single one of the documented methods and practices that allowed these billionaires to so radically minimize their tax obligations was illegal.
To continue reading, please go to the original article here:
The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
.The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
A financial plan goes beyond budgeting for regular expenses. It’s the process of managing short- and long-term finances. Taking good financial planning steps now can mean the difference between achieving your financial goals and living paycheck to paycheck.
Certified Financial Planners follow a set of steps to create recommendations for their clients. With some modifications, you can use the same process to develop your own financial plan.
The Ultimate Financial Planning Guide: Do It Like the Pros in 6 Steps
A financial plan goes beyond budgeting for regular expenses. It’s the process of managing short- and long-term finances. Taking good financial planning steps now can mean the difference between achieving your financial goals and living paycheck to paycheck.
Certified Financial Planners follow a set of steps to create recommendations for their clients. With some modifications, you can use the same process to develop your own financial plan.
What Are the 6 Steps in the Financial Planning Process?
Here are the six steps in the financial planning process, according to the Certified Financial Planner Board of Standards:
You may see variations with lists of five or seven steps, but the underlying principles are the same. Any of these lists of financial planning steps can be a model for your own personal financial plan.
Step 1: Set Your Financial Goals
The financial planning process starts when the planner establishes a relationship with you to learn about your goals, lifestyle and values. It’s worth the time to explore these ideas on your own.
When you’re working toward a specific goal, you’re more likely to stick to habits that will get you there. Take some time to think about the financial goals you want to reach. Here are some to consider.
Financial Goals To Consider
Buy a house.
Pay for your children’s college education.
Go on a dream vacation.
Fund your retirement.
Start a business.
Get out of debt.
You can — and should — have short and long-term goals. If something is important to you, write it down
Step 2: Put a Price Tag on Your Goals
In the first step, you identified the goals you want to achieve in the future. Next, figure out how much you’ll need to save to accomplish your goals.
To continue reading, please go to the original article here:
30 Ways Shopping Will Never Be the Same After the Coronavirus
.30 Ways Shopping Will Never Be the Same After the Coronavirus
Prepare now for a different shopping experience in the future.
By Laura Woods June 22, 2021 Retail Credit Cards 101
The coronavirus has changed life in just about every aspect, including shopping. Many retailers with a brick-and-mortar presence have been able to shift to serving customers solely online, but essential businesses like Target and Costco have been forced to quickly adapt to new safety protocols to protect customers and employees.
Some restrictions have eased up and will continue to do so, but as consumers get used to these thoughtful safety measures, they may want them to stick around. Here’s a glimpse at how shopping could be different forever.
30 Ways Shopping Will Never Be the Same After the Coronavirus
Prepare now for a different shopping experience in the future.
By Laura Woods June 22, 2021 Retail Credit Cards 101
The coronavirus has changed life in just about every aspect, including shopping. Many retailers with a brick-and-mortar presence have been able to shift to serving customers solely online, but essential businesses like Target and Costco have been forced to quickly adapt to new safety protocols to protect customers and employees.
Some restrictions have eased up and will continue to do so, but as consumers get used to these thoughtful safety measures, they may want them to stick around. Here’s a glimpse at how shopping could be different forever.
Young Children Not Allowed in Stores
Taking your child with you to run errands might become a thing of the past. In fact, some stores have already instituted this rule.
Wisconsin-based home improvement store Menards banned shoppers under the age of 16 at one point, requiring anyone who looked younger than 16 to show identification. Per the company website, Menards has lifted this ban, noting that children are now "welcome."
Mandatory Face Masks
At the beginning of the pandemic, there was some confusion regarding who should wear face masks. However, the Centers for Disease Control and Prevention now recommends people wear cloth face coverings in public settings, where social distancing guidelines can be difficult to maintain.
Consequently, many stores have followed suit, requiring shoppers to wear masks. For example, effective May 4, Costco requires all shoppers — except children under age 2 and individuals with a medical condition who cannot wear a mask — to wear a face covering that shields their mouth and nose at all times while in the store. Apple also requires masks in its stores, as does Publix.
6-Foot Spacing
In the pre-pandemic world, shoppers didn’t think twice about congregating in small spaces. However, now that the CDC recommends staying at least 6 feet apart from other people, stores have had to adjust.
For example, Target has implemented signage, floor decals and audio messages in stores reminding customers to stay 6 feet apart. Even when it’s seemingly safe to go back to normal, many customers might be uncomfortable narrowing the distance between themselves and fellow shoppers.
Buying Limits on In-Demand Items
It’s no secret that some shoppers have been hoarding in-demand items like toilet paper and hand sanitizer. As a result, some retailers have limited the number of hot-ticket items people can purchase per visit.
For example, Costco is currently restricting select fresh meat purchases to three packages per member. Kroger Co. is also limiting customers to certain quantities when purchasing high-demand items.
This makes sense, as 47% of consumers are stocking up on essential items, with 78% doing so because it makes them feel "safer," according to Shopkick. Buying limits on certain items could become the new standard, as the pandemic might leave people with a hoarding mentality.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/shopping/ways-shopping-never-same-after-coronavirus/
The 12 Most Controversial Price Hikes of the Last Year
.The 12 Most Controversial Price Hikes of the Last Year
Prices have soared for possible treatments and in-demand items.
By Gabrielle Olya March 12, 2021
When former President Donald Trump was ill with COVID-19, he was administered several different treatments to relieve his symptoms and shorten the course of his illness. These included Regeneron's investigational monoclonal antibody therapy, antiviral drug remdesivir, corticosteroid drug dexamethasone, supplemental oxygen, zinc, vitamin D, famotidine, melatonin and daily aspirin, CNN reported.
After the details of Trump's treatment were reported, shares of Regeneron Pharmaceuticals leaped almost 10%, Business Insider reported. And the cost of his remdesivir treatment? A cool $3,120 for the five-day treatment course -- a price that has been met with mixed reactions since its maker Gilead Sciences announced it in June.
While the price of Trump's miracle drug is already high, it's not the only costly item of the pandemic.
The 12 Most Controversial Price Hikes of the Last Year
Prices have soared for possible treatments and in-demand items.
By Gabrielle Olya March 12, 2021
When former President Donald Trump was ill with COVID-19, he was administered several different treatments to relieve his symptoms and shorten the course of his illness. These included Regeneron's investigational monoclonal antibody therapy, antiviral drug remdesivir, corticosteroid drug dexamethasone, supplemental oxygen, zinc, vitamin D, famotidine, melatonin and daily aspirin, CNN reported.
After the details of Trump's treatment were reported, shares of Regeneron Pharmaceuticals leaped almost 10%, Business Insider reported. And the cost of his remdesivir treatment? A cool $3,120 for the five-day treatment course -- a price that has been met with mixed reactions since its maker Gilead Sciences announced it in June.
While the price of Trump's miracle drug is already high, it's not the only costly item of the pandemic.
Chloroquine
Before he got the coronavirus, Trump stated in May 2020 that he was taking daily doses of the antimalarial drug hydroxychloroquine, which he touted as a potential coronavirus cure despite warnings from medical experts and the Food and Drug Administration that it might not be effective and could have potentially harmful side effects, CNN reported. President Joe Biden criticized Trump for taking the drug, calling it “totally irresponsible” during a virtual town hall on May 19.
“There’s no serious medical personnel out there saying to use that drug. It’s counterproductive. It’s not going to help,” Biden said.
In addition to influencing others to take a potentially ineffective drug, Trump’s use of hydroxychloroquine may have had another effect — a price increase for the pharmaceutical. Chloroquine -- the drug from which hydroxychloroquine is derived -- saw price increases during the same period, GoodRx reported.
Entacapone
Entacapone is another medication that's being investigated as a treatment for the coronavirus. It also saw a price increase in 2020, GoodRx reported.
Mytesi
On April 9, 2020, Mytesi -- a drug used to treat HIV -- increased in price by 230% as the manufacturer sought approval from the FDA for use as a treatment for the coronavirus patients with diarrhea, GoodRx reported. The FDA did not approve Mytesi for this use, but its manufacturer is continuing to evaluate its effectiveness against the coronavirus.
Hand Sanitizer
Some sellers on Amazon have resold hand sanitizer for huge markups. One seller, Matt Colvin, was selling bottles for up to $70 each, The New York Times reported. Amazon cracked down on price gouging soon after, and his items were removed from the site.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/shopping/controversial-coronavirus-price-hikes/
Americans’ Biggest Financial Regrets of the Decade
.Americans’ Biggest Financial Regrets of the Decade
Laura Woods Tue, June 29, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice.
A 2019 survey conducted by Policygenius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone. The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Americans’ Biggest Financial Regrets of the Decade
Laura Woods Tue, June 29, 2021
The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice.
A 2019 survey conducted by Policygenius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone. The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.
Here’s a look at the top financial regrets, along with advice to help make the problem a thing of the past.
1. . Credit Card Debt
Credit card debt can easily creep up on you. Whether you need to swipe the plastic to pay an unplanned expense or get tempted by something fun — i.e., an expensive pair of shoes or a big screen TV — racking up unpaid balances adds up fast.
One-quarter (25.1%) of people ages 35 and up cite incurring credit card debt as their biggest regret of the decade. Slightly lower, 21.5% of people ages 18 to 34 share this sentiment.
How To Tackle Credit Card Debt
If you have credit card debt, you’re in good company. Consumer credit card debt reached a record-high of $829 billion in 2019, according to Experian. Additionally, retail credit card debt totaled a record-breaking $90 billion.
Now is the time to stop being weighed down by credit card debt. If you’re ready to take action, total up all of your balances, so you know where you stand. Then decide if you’d like to take the avalanche approach — paying the highest interest cards first — or the snowball approach — paying the lowest balance first.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/americans-biggest-financial-regrets-decade-220036381.html
36 Things That Are Worth the Money
.36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It's always tempting to look for the best deal, but some things are simply worth splurging on — even if you're on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list.
I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations -- like international travel -- might not be realistic now, in the middle of a pandemic, but they're still worth keeping in mind for the future. These are the purchases experts say you won't regret.
36 Things That Are Worth the Money
These are the products and experiences worth splurging on.
By Jaime Catmull November 4, 2020 Savings Accounts 101
It's always tempting to look for the best deal, but some things are simply worth splurging on — even if you're on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list.
I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations -- like international travel -- might not be realistic now, in the middle of a pandemic, but they're still worth keeping in mind for the future. These are the purchases experts say you won't regret.
Hiring a Virtual Assistant
Anthony Clervi, managing partner at Una, said investing in a virtual assistant can be "invaluable." Hiring an efficient assistant to take care of administrative tasks enables you to focus more on the aspects of your work that need your attention and could help shave hours off your workweek.
Virtual assistants typically cost an average of about $16 an hour, according to PayScale.
Working Out With a Personal Trainer
Personal trainers cost an average of $26 per hour, PayScale reports. This might seem like an unnecessary expense, but personal trainers can help you meet fitness goals that you might not be able to achieve on your own — and you can't put a price on your health. The benefits of hiring a trainer include a personalized workout, detailed instruction, motivation, accountability, a variety in your workouts and efficiency, according to Livestrong.
"Hiring a fitness coach is absolutely worth the investment and here's why: If you're Batman, your physical body is your Batmobile, which means it's the vehicle that not only allows you to move and perform optimally as a human being, but keeps you feeling confident and attractive when you look in the mirror each day," said Andrew White, co-founder of IVRY Fitness. "We pay for tons of things in life that function purely for our own entertainment, so why not flip the script and invest in yourself?"
If a personal trainer is out of your budget, do the next best thing and join a gym.
To continue reading, please go to the original article here:
5 Major Money Mistakes To Avoid Once You Turn 60
.5 Major Money Mistakes To Avoid Once You Turn 60
Laura Woods Wed, June 30, 2021
You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.
As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decision
5 Major Money Mistakes To Avoid Once You Turn 60
Laura Woods Wed, June 30, 2021
You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.
As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decision
When faced with a large amount of cash, it can be tempting to share it with loved ones — i.e., your children — or indulge yourself with luxury items. However, this money needs to last your entire retirement, which could span decades. Here’s a look at common financial blunders you don’t want to make as you get older if you want to avoid a major financial setback.
Collecting Social Security Benefits Too Soon
Many people make the mistake of taking Social Security income as soon as they can because it’s available. Others start early because they’re afraid the system will run out of money. Neither approach is the best way to maximize benefits.
“You receive more each month if you wait until your full retirement age, and you can even get increases after that — amounting to roughly 8% per year until you're 70,” said Justin Pritchard, CFP, founder of Approach Financial, Inc. in Montrose, Colorado.
Having patience can literally pay off.
“Instead of claiming as soon as possible, run some numbers to determine how much you'll earn if you wait,” he said. “Remember that a surviving spouse who takes over your benefit will be affected by your decision, so choose carefully.”
Cashing Out a Retirement Account
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-major-money-mistakes-avoid-160054463.html
What Not To Do While Trying To Get Out of Debt
.What Not To Do While Trying To Get Out of Debt
Know how to pay off debt so you don't make costly mistakes.
By Jaime Catmull April 30, 2021
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
What Not To Do While Trying To Get Out of Debt
Know how to pay off debt so you don't make costly mistakes.
By Jaime Catmull April 30, 2021
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?
To continue reading, please go to the original article here:
9 Easy Ways to Be Fiscally Responsible
.9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez Wed, June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?" This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
What Does It Mean to Be Fiscally Responsible? Fiscal responsibility describes a person who has self-control and accountability for their spending. Government institutions' fiscal responsibility is about how wisely those who hold an office spend tax-payer dollars and manage money in the federal reserve bank. Defining fiscally responsible for personal finances is about how wisely an individual spends their earned income.
Why Is It Important to Be Fiscally Responsible?
9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez Wed, June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?" This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
What Does It Mean to Be Fiscally Responsible? Fiscal responsibility describes a person who has self-control and accountability for their spending. Government institutions' fiscal responsibility is about how wisely those who hold an office spend tax-payer dollars and manage money in the federal reserve bank. Defining fiscally responsible for personal finances is about how wisely an individual spends their earned income.
Why Is It Important to Be Fiscally Responsible?
Even with a decent-paying job, it often isn't wise to spend money unconsciously. You might be left waiting for your next paycheck to cover unplanned expenses. This can put your family's finances at risk.
If you don't make changes, debt may never go away. That is why it's so essential to becoming fiscally responsible. You need to control your money and not let your money be in control of you.
How Do You Become Fiscally Responsible?
There isn't a magic number that indicates that you're fiscally responsible. Instead, the kind of behavior you have when it comes to spending can be a deciding factor.
Below are nine easy ways to become fiscally responsible. You can perform each method in any order. Most of them you can do simultaneously.
Know Your Net Worth
Net worth is an indication of someone's financial situation. It's not how much a person makes in a year. Instead, net worth is the dollar amount of one's assets minus their liabilities or debt.
For example, a person has $50,000 in stocks and $10,000 in consumer debt. Therefore, this person's net worth is $40,000 ($50,000 – $10,000 = $40,000).
On the other hand, a different person has $20,000 in a retirement account and $40,000 in student loan debt. This person's net worth is negative $20,000 ($20,000 – $40,000 = -$20,000).
Having a negative net worth is a reality check that tells a person they need to start making changes to their financial habits. There isn't an exact dollar amount that considers someone financially stable.
Instead, the key is which direction is one's net worth trending: Up or down?
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/9-easy-ways-fiscally-responsible-040100046.html
6 Reasons Why It’s So Hard To Get Out of Debt
.6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom Wed, June 30,
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
To get some additional insight on why you haven't gotten out of debt by now, take a look at these reasons why it's so difficult. Plus, learn what you can do to start conquering your debt once and for all.
6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom Wed, June 30,
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
To get some additional insight on why you haven't gotten out of debt by now, take a look at these reasons why it's so difficult. Plus, learn what you can do to start conquering your debt once and for all.
1. You Don't Have a Budget
Not having a budget is a sure way to keep yourself in debt. It's important to assign each dollar you earn to a specific category, including debt, and then account for every dollar you spend.
Many different budget plans exist, including the 50/30/20 rule. When using this budget, you put 50% of your income toward your necessities, such as rent, car payments, insurance, utilities and food. Next, 30% goes toward things you want, such as eating out, streaming services and new shoes. The remaining 20% goes into savings and paying off debt.
If you're determined to pay off your debt as soon as possible, you may want to play with the percentages a bit. For instance, consider putting 30% or 40% toward your savings and debt and leaving only 10% for things you want but don't need.
2. You Only Make Minimum Payments
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/6-reasons-why-hard-debt-220050527.html
17 Surprising Ways Penny-Pinching Costs You More
.17 Surprising Ways Penny-Pinching Costs You More
By Gabrielle Olya
Frugal living could cost you in the long run.
It's hard to resist seemingly good deals when we see them, whether it's a bargain home in a pricey neighborhood, a tempting cable company promotion or a $10 T-shirt. But sometimes deals that seem too good to be true actually are. Although the initial investment might be low, it could end up costing you in the long term, whether through maintenance costs or missed opportunities to put your money toward a more worthwhile purchase.
GOBankingRates spoke to financial experts to find out which seemingly "good deals" you should always avoid. After all, if you're hunting down deals and steals, you want to make sure that they're ones that will pay off.
17 Surprising Ways Penny-Pinching Costs You More
By Gabrielle Olya
Frugal living could cost you in the long run.
It's hard to resist seemingly good deals when we see them, whether it's a bargain home in a pricey neighborhood, a tempting cable company promotion or a $10 T-shirt. But sometimes deals that seem too good to be true actually are. Although the initial investment might be low, it could end up costing you in the long term, whether through maintenance costs or missed opportunities to put your money toward a more worthwhile purchase.
GOBankingRates spoke to financial experts to find out which seemingly "good deals" you should always avoid. After all, if you're hunting down deals and steals, you want to make sure that they're ones that will pay off.
Purchasing a Home That Needs a Complete Renovation
You might be able to find a great deal on a fixer-upper compared to a move-in-ready home that could come at a hefty price. With the median home value in the U.S. recently hitting about $230,000, it might seem like a smart move to save money upfront by buying a cheaper home and fixing it up. But that's not always the case.
How This Might Cost You More
Martin Eiden, a licensed associate real estate broker with Compass Real Estate, uses the example of a property selling for $700,000 when neighboring, finished homes sell for $1 million.
"A newbie buyer would look only at the cosmetic work and say, 'I can put $100,000 into the property to bring it up to the $1 million (value) and save $200,000.' However, it is not as easy as it seems," Eiden said.
"You often need an architect to create and file plans — which can take months — and get city approval, which can also take months. In other words, it often takes six months of design and approval before work can begin. Construction can take another six to 12 months. During that time you cannot live there since it's a construction site, but you still have to pay for heat, water, taxes and a mortgage. Meanwhile, you have to rent an apartment for a year. As such, there are double housing costs."
Leasing a Car
Leasing a car is often "more affordable" than buying a car, but it could ultimately be a worse financial decision.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/savings-advice/ways-penny-pinching-costs-more/