13 Simple Ideas To Stretch Your Money And Beat High Inflation

13 Simple Ideas To Stretch Your Money And Beat High Inflation

Ethan Rotberg  Tue, October 19, 2021

The pandemic has sparked shortages of goods and workers that have pushed inflation to its highest levels in decades. But you've already seen what that looks like, if you recently bought groceries, gassed up your car or went shopping for furniture or a new TV.  Prices are surging, and don't look for relief anytime soon. Various forecasts anticipate that stiff inflation will hang around into the new year.

One strategy for fighting back against rising prices is to take advantage of some simple ways to make and save more money in your daily life. 

Here are 13 ideas on how to effectively give yourself a raise — and kick inflation to the curb.

1. Cut The Cost Of Your Debt

High-interest debt from credit cards and personal loans can be a major drain on your bank balance, especially if you’re making only the minimum payments each month.

To break free from your debt ASAP, you might take out a debt consolidation loan. You’ll trade in all of your current balances — on credit cards, loans, everything — for a single monthly payment at a lower interest rate.

You can borrow money with no collateral at rates as low as 5.95%. Depending on how much interest you’re currently paying on your debts, consolidating them could save you thousands of dollars and help you become debt-free years sooner.

2. Hunt Down Your Long-Lost Money

You do know where all your money is, right?

Actually, people move on and forget all about money in old accounts all the time. It's so common that Americans currently have more than $40 billion in unclaimed funds waiting for them.

Is any of that yours? Search MissingMoney.com, which will show if you left any money in an old checking or savings account, or if you’re entitled to unclaimed life insurance policies from relatives who have passed away. (You'll want to be much more careful when you buy your own life insurance policy.)

You also should check with the IRS to see if there are any tax refunds you're missing. You can amend your previous tax returns for up to three years if you were eligible for a refund but neglected to claim it.

3. Refinance To A Cheaper Student Loan

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

https://finance.yahoo.com/news/13-simple-ideas-stretch-money-181500161.html

The Biggest Money Mistake You’re Probably Making

Finance Pro Rachel Cruze Shares the Biggest Money Mistake You’re Probably Making

Rob Poindexter   Mon, October 18, 2021, 3:00 PM·3 min read

Rachel Cruze is a personal finance expert and the author of “Know Yourself, Know Your Money.” She is also the host of “The Rachel Cruze Show,” where she shares practical tips to save more money, get out of debt quickly and make progress toward your financial goals.

Recognized by GOBankingRates as one of Money’s Most Influential, here she shares why she believes having a budget is the key to financial freedom, why taking on debt is the biggest money mistake you can make and how to get out of debt ASAP.

What is the best thing you did to improve your own financial wellness?

A budget is one of the best things I’ve ever done with my money, and now my husband and I budget together every month. A budget is simply a plan for your money — and you need to have a plan for your money! I used to think a budget limited my freedom when it came to my money, but it gives you freedom because it gives you permission to spend.

I recommend a zero-based budget. This is where your income minus expenses equal zero. You’re telling every single dollar where to go. If 2020 has taught us anything, it’s that we need to be intentional with every dollar we have coming in. A budget will also help you and your spouse get on the same page with your finances. It forces you to talk about how you’re spending your money, your financial goals and your dreams. Money is the tool that will help you achieve those dreams, and the budget is how you steer the ship. I love using the free budgeting app EveryDollar.

What are some simple strategies or tools anyone can use to make sure they are allocating their money smartly?

A lot of people get overwhelmed with their money because they’re trying to do too many things at once. You’re trying to get out of debt, save, invest… the list goes on! Take one thing at a time. I recommend following Dave Ramsey’s Seven Baby Steps. If you have debt, your first priority is getting out of debt.

Start by building a starter emergency fund of $1,000. This gives you a safety net as you’re working your way out of debt. Then, work your way out of debt using the debt snowball [method]. List all your debts smallest to largest, regardless of interest rate. Make minimum payments on everything, except for the smallest debt.

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

https://finance.yahoo.com/news/finance-pro-rachel-cruze-shares-190003244.html

Where Do Millionaires Keep Their Money?

Where Do Millionaires Keep Their Money?

Rosemary Carlson   Mon, October 18, 2021

Where do millionaires keep their money? High net worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate. Most of the 20.27 million millionaires in the U.S. did not inherit their money; only about 20% inherited their money.

More than two-thirds of all millionaires are entrepreneurs. Here are some of the places the genuinely rich keep their money.  Whether you’re a millionaire or not, a financial advisor can help you take significant steps toward achieving your goals.

Cash and Cash Equivalents

Many, and perhaps most, millionaires are frugal. If they spent their money, they would not have any to increase wealth. They spend on necessities and some luxuries, but they save and expect their entire families to do the same. Many millionaires keep a lot of their money in cash or highly liquid cash equivalents.

They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth. There is no standing in line at the teller’s window.

Studies indicate that millionaires may have, on average, as much as 25% of their money in cash. This is to offset any market downturns and to have cash available as insurance for their portfolio. Cash equivalents, financial instruments that are almost as liquid as cash. are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills.

Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash. Treasury bills are short-term notes issued by the U.S government to raise money. Treasury bills are usually purchased at a discount. When you sell them, the difference between the face value and selling price is your profit. Warren Buffett, CEO of Berkshire Hathaway, has a portfolio full of money market accounts and Treasury bills.

Millionaires also have zero-balance accounts with private banks. They leave their money in cash and cash equivalents and they write checks on their zero-balance account. At the end of the business day, the private bank, as custodian of their various accounts, sells off enough liquid assets to settle up for that day. Millionaires don’t worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank.

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

https://finance.yahoo.com/news/where-millionaires-keep-money-201959651.html

25 Secrets Elon Musk and Every Other Rich Person Knows

25 Secrets Elon Musk and Every Other Rich Person Knows

Gabrielle Olya    Sun, October 17,

If it seems like the rich know something about money that the rest of us don't, it's probably because they do. There must be some reason the richest 1% of people now hold more than 40% of the world's wealth, according to the Credit Suisse Global Wealth Report. Maybe the rich have certain secrets to accumulating wealth -- but that doesn't mean what they know has to remain a mystery. Learn about strategies that you can use so you can build your own wealth, too.

Spending Must Align With Goals

One of the keys to being rich is having goals, said Michael Kay, president of Financial Life Focus and author of "The Feel Rich Project."

"(The rich) know what they care about," he said. "Maybe it's passing wealth to another generation, maybe it's attaining a particular lifestyle. They are mindful of not wasting resources on things that have no value."

According to Kay, the wealthy tend to spend money only on things they care about. The rest of us can learn from this by setting our own goals and then monitoring our spending to see if it aligns with those goals.

Don’t Waste Money To Impress Others

Most rich people don't spend their time and money trying to impress others, Kay said. "They are not in a race. They know they have made it, so their attention is not on what others think." In fact, many wealthy individuals wouldn't have become rich if they had spent their hard-earned money buying things to keep up with others, he added.

Authors Thomas Stanley and William Danko said much the same thing in their 1996 best-seller, "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," writing that a couple of key secrets of the country's richest people are living below their means and rejecting big-spending lifestyles.

Spending money to appear rich before you actually are rich is a surefire way to sabotage your wealth-building goals. So, forget about the Joneses and focus on what matters: accumulating wealth in the coming years.

Have Plenty of Liquidity

The rich make sure they have sufficient liquidity, or cash, to cover their short-term needs. They maintain an emergency fund so "they don't have to disrupt their life for an unexpected occurrence," Kay said.

The fact that rich people have money set aside for a rainy day isn't solely a function of their wealth. They have cash reserves because they are disciplined enough to save.

Everyone should aim to build an emergency fund with enough cash to cover six to nine months worth of expenses, Kay said. However, you don't have to set that much aside all at once. You just need to be working toward that goal with every paycheck. With that in mind, arrange to have a set amount automatically transferred from your checking account to savings each month.

"Like anything else, it's a goal," Kay said. "It only makes you a failure if you're not working on it."

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

https://finance.yahoo.com/news/25-secrets-elon-musk-every-230154184.html

21 Life Hacks From Warren Buffett That Anyone Can Use

21 Life Hacks From Warren Buffett That Anyone Can Use

Ashley Redmond   Fri, October 15, 2021

You don't get to be one of the richest people in the world without knowing something the rest of us don't. Often referred to as the Oracle of Omaha, Warren Buffett has a net worth of $102.2 billion, according to Forbes.

While Buffett is unquestionably a genius when it comes to business, his words of wisdom aren't just good for finding a hot investment. In fact, there are many Warren Buffett tips that anyone can use.

Learn how you can apply Buffett's tips and hack your way to a wealthier life.

1. Decide That You’re Going To Be Rich

In order to be rich, you have to believe that one day you will be. According to the Huffington Post, Buffett once reportedly said, "I always knew I was going to be rich. I don't think I ever doubted it for a minute."

For best results, set high expectations for yourself and work toward your goals and aspirations.

"Then, make it clear to yourself, your family and friends that you have a commitment to become financially independent," said Randall "Dolph" Janis, an insurance agent at Clear Income Strategies Group. "Create your future with a plan, knowing when to get aggressive against knowing when to be conservative."

2. Start Saving at a Young Age

By age 15, Warren Buffett had earned $2,000 delivering papers and selling magazine subscriptions, according to CNBC. He used $1,200 of his earnings to invest in a farm, forming a profit-sharing agreement with the farmer.

The lesson? "Start saving money as early as possible, so that you get into the habit," said Brittney Castro, founder and CEO of Financially Wise Women.

This is important whether you're saving to invest in a business or buy your first house.

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

https://finance.yahoo.com/news/21-life-hacks-warren-buffett-163004663.html

What To Do if You Lose Your Wallet

What To Do if You Lose Your Wallet

Sam DiSalvo   Fri, October 15, 2021

We’ve all been there: that pang of anxiety when you can’t find your wallet. Maybe you left it somewhere. Maybe it was stolen. Either way, it’s gone and you need to figure out what to do next. Take a deep breath. All is not lost. There are some key steps you can take to start recovering what you need to.

Notify Your Bank & Credit Card Companies

Do this immediately upon realizing you lost your wallet. If you wait more than 24 hours, you might have to pay for charges you didn’t make. Often, the first thing thieves will do is start seeing if they can put your cards to use. Notifying your bank and credit card companies immediately stops that at the pass, and ensures you won’t be on the hook for any of their charges.

Banks and credit card companies will go through the past few charges to confirm they’re yours or mark them as unrecognized so you don’t have to pay for them. After that, they’ll start the process to get you a new card.

Even if you end up finding your card, the only inconvenience is a brief wait for a new card, something that’s much more tolerable than what could happen if thieves started making purchases.

Get a New Driver’s License or Identification Card

Driving without a license can get you a ticket if you’re pulled over, not to mention all the other inconveniences that come up if you’re caught without your ID. Depending on your state, you’ll most likely have to go to the DMV to replace your ID. Bring your social security card (provided it wasn’t in your wallet), birth certificate and some proof of residency, like a utility bill. Some states will charge you to replace the license, but others will waive the fee if you can prove it was stolen with a police report.

Replace Your Social Security Card

If you had your social security card in your wallet, you’ll want to act as soon as possible. If a thief has your social security card, they can open new credit card accounts, so you’ll want to get a credit freeze with Equifax, Experian, and TransUnion to ensure no credit cards are opened right away. This might cost a fee between $2-10.

The Social Security Administration will issue you a new card, but won’t issue you a new social security number unless you can prove you were a victim of identity theft. In the future, keep your social security card in a safe place at home, rather than in your wallet.

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

https://finance.yahoo.com/news/lose-wallet-202259756.html

Here's When The IRS Can Check Out My Bank Account

Here's When The IRS Can Check Out My Bank Account

Rick Newman ·Senior Columnist   Wed, October 13

Let’s say I hire a contractor to do a project on my house, and he asks for payment in cash. It would be cheaper than if I wrote a check, and we both know why: Cash leaves less of a paper trail and the contractor might not report it as income. If he doesn’t have to pay income tax on the money, he’ll share some of the savings with me.

This type of gray-market transaction happens all the time, every day. Parents pay babysitters and nannies in cash. Waiters earning tips report a fraction of what they take home as taxable income. People selling used cars slash hundreds or thousands off the agreed price on the bill of sale they submit to the state, so the buyer pays less in sales tax.

Stay ahead of the market

The Biden administration wants Congress to give the IRS authority to look in people’s bank accounts as a tool for helping find tax cheats. The premise is solid: Massive tax avoidance robs the Treasury of as much as $280 billion per year, with wealthy evaders dodging the most in taxes. One recent study found the top 1% of earners underreport their income by 21%. Matching bank records with tax filings and other documents the IRS already has would help identify who’s hiding money, and where.

WASHINGTON, DC - JUNE 08: Sen. Rob Portman (R-OH) greets Charles P. Rettig, commissioner of the Internal Revenue Service during a Senate Finance Committee hearing June 8, 2021 on Capitol Hill in Washington, D.C. The committee is hearing testimony on the IRS budget request for 2022. (Photo by Tom Williams-Pool/Getty Images)

Sen. Rob Portman (R-OH) greets Charles P. Rettig, commissioner of the Internal Revenue Service during a Senate Finance Committee hearing June 8, 2021 on Capitol Hill in Washington, D.C. The committee is hearing testimony on the IRS budget request for 2022. (Photo by Tom Williams-Pool/Getty Images)

Reeling in more of the tax revenue evaders already owe might restore some sense of fairness to a system many think is rigged in favor of the wealthy. Democrats with slight majorities in both houses of Congress also need new revenue to pay for a broad package of social-welfare and green-energy programs they want to pass by the end of the year. President Biden says an extra $80 billion in enforcement funding over a decade could help the IRS collect an extra $700 billion in taxes Americans already owe. That would be 900% return on investment. If the return is only one-third that, it would still be a bargain.

In practice, however, the prospect of more IRS snooping into Americans’ finances is an off-the-shelf outrage generator. Anti-government sentiment is near historic highs. The spread of disinformation is too. Toss in a little demagoguery, and social-media trolls will have half the country thinking the IRS is stealing money from their bank accounts. The Treasury Department says IRS bank reviews would target the wealthy, not lower- or middle-income families. But the scaremongering practically whips itself up.

The original plan was for the IRS to monitor accounts with balances of more than $600, which is meant to filter out inactive accounts or those held by kids. That threshold is way too low. Democrats drafting legislation are considering raising the cutoff to $10,000, but $100,000 or even $1 million might be a better limit.

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

https://finance.yahoo.com/news/heres-when-the-irs-can-check-out-my-bank-account-115143383.html

Why Does The Government Want to Know How Much is in Your Bank Account?

Why Does The Government Want to Know How Much is in Your Bank Account?

Vance Cariaga   Thu, October 14, 2021,

If you’re concerned that the U.S. government wants to monitor your bank account, you’re not alone. Plenty of lawmakers, consumers and banking trade groups are pushing back against the idea, which was proposed in May by the Treasury Department as part of its budget request.

But the government has its reasons for such a proposal, and they mainly have to do with President Joe Biden’s desire to crack down on unpaid taxes, mostly from wealthy Americans and big businesses. Those unpaid taxes total about $7 trillion, The New York Times reported, and the Biden administration wants that money to help fund social and economic programs.

Under the Treasury Department’s proposal, banks would be required to note how much money goes into and out of bank accounts, with the exception of accounts that have less than $600 of inflows a year, or whose balances are below $600, CBS News reported. No individual transactions would be listed, and Treasury officials insist such a plan would not lead to more audits of middle-income Americans.

But banks and their trade groups are not happy about the proposal, and they’re showing their displeasure by running advertising and letter-writing campaigns to raise awareness about it. This in turn has led to an avalanche of phone calls, emails and complaints from concerned personal and small-business account holders.

“We have heard a lot from our customers about their concerns about their privacy,” Jill Castilla, CEO of the single-branch Citizens Bank of Edmond in Oklahoma, told The New York Times. “I’ve gotten calls, emails, and then we’ve had many customers come in.”

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

https://finance.yahoo.com/news/why-does-government-want-know-193640228.html

Fortify Your Finances Against Natural Disaster

Fortify Your Finances Against Natural Disaster

Liz Weston of NerdWallet   Mon, October 11, 2021,

Emergency preparedness experts recommend that you have a “go bag” and a “stay bin” for disasters: kits with supplies to help you survive a few days if you have to evacuate your home or shelter in place.

Preparing your finances for natural disasters is also smart. Having cash on hand, access to credit and the right insurance coverage can help you get through perilous times. Fortifying your home against disasters also can be a good investment.  Not everyone can make these preparations, of course. People with the fewest resources often suffer the brunt of disasters. But anything you can do to bolster your situation now could help you limit the toll.

STASH SOME CASH

Having cash on hand could help you pay for groceries, gas, shelter and other necessities if ATMs and payment systems aren’t functioning, which could happen if the power goes out or cyberattacks knock systems offline.

You may need more than you think, especially if you’re away from your home for more than a few days. Insurance consumer advocate Amy Bach recommends keeping at least $2,000 in a safe place somewhere in your home. After a widespread disaster, there is often “incredible competition” for rentals and other lodging, and a cash deposit could help you secure a place to stay, says Bach, executive director of the nonprofit United Policyholders.

The currency should be in addition to any emergency savings you have at the bank. Again, anything is better than nothing. While financial planners typically recommend an emergency fund equal to three to six months of expenses, even a couple hundred dollars can help you cope.

GET SOME CREDIT

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

https://www.yahoo.com/lifestyle/liz-weston-fortify-finances-against-104407489.html

An Unhealthy Obsession With Money

An Unhealthy Obsession With Money

Posted October 6, 2021 by Ben Carlson

One hundred dollars invested in Berkshire Hathaway in 1965 would have grown to more than $2.8 million by the end of 2020.  Warren Buffett’s holding company is the most impressive long-term compounding machine in history, increasing in market value at 20% per year for nearly 6 decades.  Compounding is a wonderful thing but it can also become an unhealthy obsession if you view every financial decision through that lens.

In Buffett: The Making of an American Capitalist, Roger Lowenstein tells a story from Buffett’s friend and former business partner Katherine Graham when she was publisher of the Washington Post.

Graham was in the airport with Buffett and needed to make a phone call from a payphone (remember those?). She asked Buffett for a dime (which was the going rate for a call at the time). Buffett grabbed a quarter from his pocket and walked off to get change from a cashier.  Graham snapped at him, “Warren, give me the quarter!”  Buffett was so stingy he wanted to give her exact change for the call and not a penny more.

There was another story from the book where Buffett complained to a friend about his wife purchasing $15k of new furniture for their home. He told the friend, “Do you know how much that is if you compound it over 20 years?”

I’m not going to defend extravagant furniture purchases but that’s not really the point. If you’re always worried about the future value of your money, it becomes much harder to enjoy the present value of your time.

Shelby Davis isn’t a household name like Buffett but his investing track record is almost as impressive.

Davis quit his job at age 38 in the late-1940s to become a full-time investor. His timing was impeccable as the stock market was about to enter one of the great bull markets of all-time. His timing was fortuitous but Davis was also a fantastic stock picker.  Sticking mainly to insurance stocks, Davis managed to turn $50,000 in 1947 into $900 million by the time he passed away in 1994.1

Like Buffett, Davis was a compounding machine. Like Buffett, Davis came from the value investing school of Ben Graham. And like Buffett, Davis was noticeable cheap for being so rich.

Buffett scoffed at buying expensive furniture for his wife as he did the math in his head about lost future gains from compounding while Davis gave the exact same speech to his grandson…about a $1 hot dog. He refused to buy it for the boy.  He also told his children they could only have a swimming pool if they dug the hole themselves.2   Those are relatively small things though. Once the sums became large enough, the money created a rift in the family.

In his book  The Davis Dynasty, John Rothchild recounts a fight between Davis and his daughter that made it into the pages of the New York Daily News in the early-1960s:

In the early 1940s, he funded each account with $4,000-surely not a sum that would sap anybody’s future self-reliance. By 1961, as the New York Daily News reported, each “$4,000 acorn had grown into a $3.8 million oak.”

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

https://awealthofcommonsense.com/2021/10/an-unhealthy-obsession-with-money/

The End Of Physical Currency, Cash, Is Certainly Drawing Near': Economist

The End Of Physical Currency, Cash, Is Certainly Drawing Near': Economist

Ihsaan Fanusie   Thu, October 7, 2021

In this article:  Eswar Prasad   American economist

Physical currency and hard cash may soon be a thing of the past, Eswar Prasad, Cornell University economics professor and author of "The Future of Money" told Yahoo Finance Live.

“The end of physical currency, cash, is certainly drawing near, and cryptocurrencies, including bitcoin (BTC-USD), have certainly paved the way for that revolution,” Prasad said.  The digitalization of transactions has been well underway for the past few decades, but serious discussions regarding a fully-digital dollar are relatively new.

The prospect of a central bank digital currency (CBDC) in the U.S. has gained traction in 2021, with the Fed reportedly planning to begin a review process of the costs and benefits associated with CBDCs as soon as next week.

While the chances of adopting a digital currency within the near future are slim, digital payments have grown exponentially within the past few years, giving credence to the notion that the U.S. is moving towards a digital economy.

But it is unlikely that cryptocurrencies will become the dominant form of payments in the future, Prasad says, because of their inherent volatility. Stablecoins like those pegged to fiat currencies, however, may become more widespread as the digital economy evolves.

“My own view is that cryptocurrencies may not ultimately prove to be viable mediums of exchange,” he said. “Especially the decentralized ones like crypto coins that have very volatile value and that have a number of other impediments. But they've already given rise to stablecoins, whose value is backed by reserves of hard currency, such as the U.S. dollar and U.S. dollar securities, which could provide more efficient payment transactions.”

Digital currency or cash: 'The objective is financial inclusion'

Government-backed digital currency could be an egalitarian benefit to a thriving private sector by allowing for greater financial inclusion, Prasad said. "Banking the unbanked" has been a popular goal for enthusiasts of digital currencies and other fintech.

The internet has brought to the regular person many financial tools historically available exclusively to professionals, enthusiasts say, and new developments in financial technology have given these people greater leverage and control in their finances.

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

https://news.yahoo.com/cryptocurrencies-paved-the-way-for-the-end-of-cash-economist-145549693.html