15 Mortgage Questions To Ask Your Lender
.15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
15 Mortgage Questions To Ask Your Lender
By Karen Doyle Oct 28, 2021
Asking the right questions could save you money on a home.
Buying a house is exciting — but it’s also a big decision. Whether you’re looking for a new home or refinancing your current one, choosing the right mortgage is one of the most important aspects of the process, so it helps to be prepared. To ensure you get all the information you need as you’re making decisions when buying or refinancing a home, you need to know the right questions to ask.
Here are 15 questions to ask a mortgage lender, which will help you learn how you can save money when buying a home.
1. How Much House Can I Afford?
Before you can buy a house, you need a realistic idea of how much you can afford to spend on a house, as well as how big of a mortgage you can get. To do this, you should meet with mortgage lenders before real estate agents. You can get pre-qualified for a mortgage, meaning you’ll know exactly how much money you can borrow and therefore spend on a home.
By getting pre-qualified, you’ll be better prepared for the homebuying process and appear more appealing to sellers. Because this is one of the most important mortgage loan questions, make sure you ask it based on the amount of monthly payments you know you can handle. Before you go to a lender, analyze your budget and determine the amount you’re comfortable with, as well as how much money you’ll be able to put down.
A rule of thumb is to spend 25% or less of your net income on your mortgage. That means if you make $100,000 a year and you pay $20,000 in taxes, your net income is $80,000 and you should spend $20,000 on your mortgage annually. That amount works out to a monthly payment of $1,666.
2. What Kind of Loan Should I Get?
Among questions for mortgage lenders, this one is important. The two basic types of mortgages are fixed and variable rate. A fixed rate has the same interest rate for the term of the loan, which might be 15, 30 or even 40 years. With a fixed-rate mortgage, your payments remain the same for the life of the loan.
To continue reading, please go to the original article here:
8 Rules For Saving, Borrowing And Spending Money
.8 Rules For Saving, Borrowing And Spending Money
Liz Weston of NerdWallet Sun, December 5, 2021,
The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.
The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.
8 Rules For Saving, Borrowing And Spending Money
Liz Weston of NerdWallet Sun, December 5, 2021,
The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.
The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.
1. PRIORITIZE SAVING FOR RETIREMENT
In an ideal world, you’d start saving with your first paycheck and keep going until you’re ready to retire. You also wouldn’t touch that money until retirement. Even if you can’t save 15% of your pre-tax income for retirement, as recommended by Fidelity and other financial services firms, anything you put aside can help give you a more comfortable future. Aim to take full advantage of any company match you get from a 401(k) at work — that’s free money — and borrow against or cash out retirement funds only as a last resort.
2. SAVE FOR A RAINY DAY
You may have read that you need an emergency fund equal to three to six months of expenses, but it can take years to save that much. That’s too long to put off other priorities, like saving for retirement. A starter emergency fund of $500 can be your first goal, and then you can build it up. While you’re saving, try to create other sources of emergency cash, such as a Roth IRA (you can pull out your contributions at any time without taxes or penalties), space on your credit cards or an unused home equity line of credit.
3. SAVE FOR COLLEGE
Got kids? Open a 529 college savings plan and contribute at least the minimum, which is typically $15 to $25 a month. Retirement savings comes first, but anything you can save will reduce how much your child may need to borrow. Also, research shows the simple act of saving for college increases the chances that a child from a low- to moderate-income family will go to college.
To continue reading, please go to the original article here:
https://www.yahoo.com/news/liz-weston-8-rules-saving-031237764.html
The 5 Fastest Ways To Become Rich, According to Experts
.The 5 Fastest Ways To Become Rich, According to Experts
Bob Haegele Sat, December 4,
With the new year fast approaching, many of us are likely starting to think about our finances. In particular, you may want to increase your net worth or even get rich. After all, getting rich will allow you to not only have more financial security but also have more options. And, of course, you would have the ability to spend on more of the things you want.
The problem with the idea of getting “rich,” though, is that it takes a lot of time and effort. Get-rich-quick schemes are almost always nothing but a way to prey on those who are struggling financially. Unless you are born into a wealthy family and a large inheritance is passed to you, you will likely have to become rich through a combination of hard work and financial diligence.
The 5 Fastest Ways To Become Rich, According to Experts
Bob Haegele Sat, December 4,
With the new year fast approaching, many of us are likely starting to think about our finances. In particular, you may want to increase your net worth or even get rich. After all, getting rich will allow you to not only have more financial security but also have more options. And, of course, you would have the ability to spend on more of the things you want.
The problem with the idea of getting “rich,” though, is that it takes a lot of time and effort. Get-rich-quick schemes are almost always nothing but a way to prey on those who are struggling financially. Unless you are born into a wealthy family and a large inheritance is passed to you, you will likely have to become rich through a combination of hard work and financial diligence.
In reality, there are arguably no secrets to becoming rich. Time-tested approaches are generally your best bet, and our experts confirmed that. They outlined some of the best ways to become rich (relatively) quickly.
1. Avoid (and Pay Down) Debt
Debt is not necessarily bad in all instances, but it is something to be avoided most of the time. For instance, student loans can be beneficial if the principal and interest rate are not excessive and they help you pursue a lucrative career.
“Some experts would contend that student loans are bad debt, but I disagree,” said Robert Johnson, chairman and CEO at Economic Index Associates. “I would categorize modest student loan debt as being ‘good debt.’ In my opinion, student loans get a bad rap.”
Again, the emphasis is on how you use them. Student loans can certainly be bad if the numbers don’t work in your favor. “There is no doubt that the system has been abused and that some students have accumulated a mountain of debt and have earned degrees that simply won’t provide the earning power to pay that debt back,” Johnson said.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-fastest-ways-become-rich-130041478.html
Defining Success
.Defining Success
Nov 17, 2021 by Ted Lamade Managing Director at The Carnegie Institution for Science
What does success look like these days? Is it obtaining a certain number of followers? Getting a specific number of “impressions”? Becoming a YouTube sensation? Passing a piece of legislation purely along party lines? Doubling or tripling your money on a meme stock or an NFT? Generating first quartile (or better yet, first decile) performance for a trailing twelve-month period?
Before you answer that, let me tell you about three people who appear to have very little in common, but are all connected by achieving a unique type of success that is too often overlooked.
Defining Success
Nov 17, 2021 by Ted Lamade Managing Director at The Carnegie Institution for Science
What does success look like these days? Is it obtaining a certain number of followers? Getting a specific number of “impressions”? Becoming a YouTube sensation? Passing a piece of legislation purely along party lines? Doubling or tripling your money on a meme stock or an NFT? Generating first quartile (or better yet, first decile) performance for a trailing twelve-month period?
Before you answer that, let me tell you about three people who appear to have very little in common, but are all connected by achieving a unique type of success that is too often overlooked.
The Highest Grossing Actor of All-Time
If I asked you to name the highest grossing actor of all-time, who would you guess? Tom Cruise? Julia Roberts? Tom Hanks? Each has won an Oscar and was the highest paid actor in Hollywood at some stage, but none are even in the top ten. That title goes to an actor who has never won an Oscar, has made far less per film than other leading stars, and whose films have on average grossed roughly half of Cruise’s, Roberts’, and Hanks’.
So, how did he do it? By sustaining a successful career for more than four decades through remarkable stamina and flexibility.
Samuel L. Jackson’s films have generated more than $20 billion dollars (and over $27 billion if you include cameos and voice acting roles). For comparison sake, films starring Cruise, Hanks, and Roberts have generated roughly $10.5, $7.7 and $6 billion respectively (link).
The secret to Jackson’s success? Starring in a lot of movies that have done better than average, a few blockbusters, and in a wide variety of roles, from action blockbusters to dramas, comedies, superhero movies, and animated films. This means roles such as Carl Lee Hailey in A Time to Kill, Zeus Carver in Die Hard, the voice of Frozone in The Incredibles, Nick Fury in Marvel movies, and of course, Neville Flynn in Snakes on a Plane.
PGA Money Leader
Around the same time that Samuel L. Jackson was hitting his stride, a golfer on the PGA Tour was doing so as well. Yet, if you ask any golf aficionado who the most successful players in the 1980’s were, they would likely rattle off names like Tom Watson, Greg Norman, Seve Ballesteros, or Nick Faldo. Few would say Tom Kite.
On the surface this is understandable. Physically, he was unimposing at 5’9 170 pounds and wore coke bottle glasses. He didn’t win a single major during the decade and won far fewer tournaments than his peers.
Yet, he still managed to finish near the top of the money list each year and was the first golfer to amass $6, $7, $8, and $9 million dollars in career earnings. So how did he do it? Like Samuel L. Jackson, Kite simply showed up more often than most, was willing to try new approaches (i.e., club combinations, fitness regiments, psychiatry, etc.), and almost always finished “in the money”.
To continue reading, please go to the original article here:
Why It’s Not Quite Time To Panic About Inflation
.Why It’s Not Quite Time To Panic About Inflation
By Emily Stewart Nov 10, 2021, 5:05
How to think about rising prices, explained by an economist who thinks about this all the time.
Rising prices are definitely a thing right now, and it’s hard not to let a little bit of worry creep in. The United States isn’t experiencing 1970s-level spiraling inflation, but for people leaving the grocery store or a restaurant, the receipt is often a little bit higher than it used to be.
The consumer price index, which measures what consumers pay for goods and services, rose by 6.2 percent from a year ago in October, according to the Bureau of Labor Statistics, the quickest annual clip it’s risen since 1990. Over the course of the month, prices crept up by 0.9 percent.
Why It’s Not Quite Time To Panic About Inflation
By Emily Stewart Nov 10, 2021, 5:05
How to think about rising prices, explained by an economist who thinks about this all the time.
Rising prices are definitely a thing right now, and it’s hard not to let a little bit of worry creep in. The United States isn’t experiencing 1970s-level spiraling inflation, but for people leaving the grocery store or a restaurant, the receipt is often a little bit higher than it used to be.
The consumer price index, which measures what consumers pay for goods and services, rose by 6.2 percent from a year ago in October, according to the Bureau of Labor Statistics, the quickest annual clip it’s risen since 1990. Over the course of the month, prices crept up by 0.9 percent.
The data shows prices are up almost everywhere, including gasoline, energy, shelter, food, and new and used cars and trucks. Among the few price indexes to decline were airline fares and alcoholic beverages.
October’s inflation numbers came in above economists’ expectations, and to politicians, the media, and other observers, they are a bit jarring — especially those who have been arguing that much of the current inflation in the economy is temporary.
There are a lot of open questions in the pandemic economy, including what’s going on with supply chains and labor, and inflation remains an issue no one is quite sure how to solve. Regardless of what the experts say, for regular people, the economic landscape can be a little nerve-wracking, especially when it comes to prices. Inflation makes people feel bad about the economy, even when there is plenty to feel good about, too.
I reached out to Claudia Sahm, a senior fellow at the Jain Family Institute and former Federal Reserve economist, to ask how to parse the latest inflation numbers. Sahm isn’t an inflation hawk and has for some time pushed back against fearmongering on the issue, but she acknowledged that the October situation isn’t good.
Wages aren’t broadly keeping up with inflation across all jobs, though they are in some sectors, such as hospitality. However, Sahm notes, the economic situation — and pandemic situation — is much better for many people this year than it was last. She’s not hitting the panic button on prices, but she worries about the implications for the reconciliation bill in Congress, and emphasizes that the Fed is paying attention to what’s going on.
Our conversation, edited for length and clarity, follows.
https://www.vox.com/the-goods/2021/11/10/22775092/inflation-cpi-october-economy-biden-fed
The Problem With America’s Semi-Rich
.The Problem With America’s Semi-Rich
By Emily Stewart Oct 12, 2021
This story is part of a group of stories called “The Goods”
America’s upper-middle class works more, optimizes their kids, and is miserable.
It’s easy to place the blame for America’s economic woes on the 0.1 percent. They hoard a disproportionate amount of wealth and are taking an increasingly and unacceptably large part of the country’s economic growth. To quote Bernie Sanders, the “billionaire class” is thriving while many more people are struggling. Or to channel Elizabeth Warren, the top 0.1 percent holds a similar amount of wealth as the bottom 90 percent — a staggering figure.
The Problem With America’s Semi-Rich
By Emily Stewart Oct 12, 2021
This story is part of a group of stories called “The Goods”
America’s upper-middle class works more, optimizes their kids, and is miserable.
It’s easy to place the blame for America’s economic woes on the 0.1 percent. They hoard a disproportionate amount of wealth and are taking an increasingly and unacceptably large part of the country’s economic growth. To quote Bernie Sanders, the “billionaire class” is thriving while many more people are struggling. Or to channel Elizabeth Warren, the top 0.1 percent holds a similar amount of wealth as the bottom 90 percent — a staggering figure.
There’s a space between that 0.1 percent and the 90 percent that’s often overlooked: the 9.9 percent that resides between them. They’re the group in focus in a new book by philosopher Matthew Stewart (no relation), The 9.9 percent: The New Aristocracy That Is Entrenching Inequality and Warping Our Culture.
There are some defining characteristics of today’s American upper-middle class, per Stewart’s telling. They are hyper-focused on getting their kids into great schools and themselves into great jobs, at which they’re willing to work super-long hours.
They want to live in great neighborhoods, even if that means keeping others out, and will pay what it takes to ensure their families’ fitness and health. They believe in meritocracy, that they’ve gained their positions in society by talent and hard work. They believe in markets. They’re rich, but they don’t feel like it — they’re always looking at someone else who’s richer.
They’re also terrified. While this 9.9 percent drives inequality — they want to lock in their positions for themselves and their families — they’re also driven by inequality. They recognize that American society is increasingly one of have-nots, and they’re determined not to be one of them.
I recently spoke with Stewart about America’s 9.9 percent — the people who are semi-rich but don’t necessarily feel it. We talked about fear, meritocracy, and why the 9.9 percent are so obsessed with nannies. Our conversation, edited for length and clarity, is below:
So, to start out, you write about the 9.9 percent and a “new aristocracy” in America. Who are these 9.9 percent?
The statistical side of it is very imprecise. I don’t think of the 9.9 percent as just everybody who has more than a certain amount of money and less than another amount of money.
I see it more as a culture, and it’s a culture that tends to lead people into the 9.9 percent of the wealth distribution. It’s a cultural construct that is defined by attitudes toward family, toward identity issues about gender and race, by education and educational status and the idea of what constitutes a good career, which is mainly professional and managerial.
What does the culture look like? How do these people separate themselves out?
The guiding ideology is essentially that of a meritocracy. The driving idea is that people get where they are in society through a combination of talent and work and study. The main measures of that are educational attainment and material well-being, and anything that we provide to society or other people is on top or on the side of that and is a reflection of our own virtue and not in any way necessary for social functioning or part of a good life. It’s always, essentially, a sacrifice.
The obvious place to look for it is the whole college admissions game. But I think that’s kind of limited, too. I put a lot of emphasis on the family aspect because I think that’s a place where you really see in operation the attitudes and practices that go into child rearing and family formation.
To continue reading, please go to the original article here:
https://www.vox.com/the-goods/22673605/upper-middle-class-meritocracy-matthew-stewart
5 Things You Can Learn From Previous Generations’ Money Mistakes
.5 Things You Can Learn From Previous Generations’ Money Mistakes
by Mike Brassfield Senior Writer November 22, 2021
Let’s make it clear right off the bat: Your generation is the best generation, OK? And no matter which generation you happen to belong to, there’s plenty you can learn from the financial mistakes of previous generations, who all behaved in financially unwise ways.
If you’re Gen Z, you can avoid the house-hunting regrets of millennials. If you’re a millennial, you can learn from the credit card disasters of Gen X. If you’re Gen X, there’s still time to avoid repeating the retirement mistakes of the baby boomers. And if you’re a boomer, hey, you already know everything, right?
Kidding, y’all! We’re just kidding! (Full disclosure: The writer of this piece is Gen X, so he doesn’t really matter.)
5 Things You Can Learn From Previous Generations’ Money Mistakes
by Mike Brassfield Senior Writer November 22, 2021
Let’s make it clear right off the bat: Your generation is the best generation, OK? And no matter which generation you happen to belong to, there’s plenty you can learn from the financial mistakes of previous generations, who all behaved in financially unwise ways.
If you’re Gen Z, you can avoid the house-hunting regrets of millennials. If you’re a millennial, you can learn from the credit card disasters of Gen X. If you’re Gen X, there’s still time to avoid repeating the retirement mistakes of the baby boomers. And if you’re a boomer, hey, you already know everything, right?
Kidding, y’all! We’re just kidding! (Full disclosure: The writer of this piece is Gen X, so he doesn’t really matter.)
What can we learn from previous generations’ financial mistakes?
1. Gen Z? Avoid Millennials’ Regrets
If you’re Gen Z, you can avoid the house-hunting regrets of millennials.
A survey of homebuyers in 2017 found that 57% of millennial homeowners surveyed would have done something differently if they got a do-over on the home buying process. More than a quarter — 28% — wished they’d saved more before making the purchase.
It’s easy to automatically sock away some savings with an app like Aspiration. With a digital Aspiration account — a hybrid of checking and savings — you can earn up to 20 times the average interest on your savings balance. (The FDIC reports that the average account earns just .05%.) You also get a debit card that earns you up to 5% cash back on purchases.
You can automatically sock away some savings every payday. It takes five minutes to sign up.
2. Millennial? Avoid Gen X’s Credit Card Hell
So, we’re obviously not going to talk about millennials like, you irresponsible kids and your avocado toast. The fact is, elder millennials are pushing 40 these days. Millennials are middle management now.
So it’s not too late to avoid being sucked into the credit card hell that mauled Generation X so badly. And I say that as a member of Generation X.
To continue reading, please go to the original article here:
https://www.thepennyhoarder.com/bank-accounts/generation-money-mistakes/?aff_sub2=homepage
No Such Thing as Enough Money
.No Such Thing as Enough Money
By Jacob Schroeder October 27, 2021
How much money is enough?
It’s a philosophical money question that often arises out of discontent. We see someone of substantial means, like a celebrity, live a troubled life. Or, we ourselves experience great fortune yet feel unhappy. It makes us wonder where the finish line is, the point when you can stop striving for more and settle into a life of satisfaction.
There are some great financial blogs that provide good answers, such as here and here. And then there are a variety of books that tackle this question in their own ways: Ego Is the Enemy, The Last Lecture, the Bible, to name a few.
No Such Thing as Enough Money
By Jacob Schroeder October 27, 2021
How much money is enough?
It’s a philosophical money question that often arises out of discontent. We see someone of substantial means, like a celebrity, live a troubled life. Or, we ourselves experience great fortune yet feel unhappy. It makes us wonder where the finish line is, the point when you can stop striving for more and settle into a life of satisfaction.
There are some great financial blogs that provide good answers, such as here and here. And then there are a variety of books that tackle this question in their own ways: Ego Is the Enemy, The Last Lecture, the Bible, to name a few.
Another book that resonates with me, perhaps because of its instructive format, is How Will You Measure Your Life? by the late Clayton Christensen.
He comes to the startling realization:
“I had thought the destination was what was important, but it turned out it was the journey.”
That to me is the answer to the question. Though it is, in a way, a non-answer. As with many of life’s mysteries, there is no definitive conclusion.
There is never enough money. Don’t get me wrong. I don’t mean that you can always use more money to achieve a perfect life. Rather, I mean the exact opposite. No amount of money will insulate you from suffering.
This week Elon Musk’s wealth jumped by $36 billion in a single day, bringing his net worth close to $300 billion. Yet, even he has experienced some very public setbacks, including the tragedy of losing his first child.
“The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favor to the learned; but time and chance happen to them all.” (Eccles. 9:11)
There is no such thing as enough money, as there is no destination of absolute happiness. It’s all about simply having the capacity to notice the truly joyful things along the journey.
To continue reading, please go to the original article here:
https://incognitomoneyscribe.com/2021/10/27/no-such-thing-as-enough-money/
Am I Responsible for Paying Off My Deceased Husband’s Debt?
.Am I Responsible for Paying Off My Deceased Husband’s Debt?
Stacy Francis, CFP®, CDFA®, CES™, President & CEO Sun, November 28, 2021
Losing your spouse is a painful, confusing time, but add to that repeated calls from an aggressive debt collector, and a bad situation suddenly can get even worse. Before you cave into the pressure, take a moment to catch your breath and learn the facts about your rights and responsibilities. You may be off the hook as some debts — including even certain types of credit card charges — are forgiven at death. However, others linger much longer.
First off, you should know that you are generally not personally responsible for paying off your husband's debts, as any loans would normally be paid off by his estate. This includes credit card debt, student loans, car loans, mortgages and business loans.
Am I Responsible for Paying Off My Deceased Husband’s Debt?
Stacy Francis, CFP®, CDFA®, CES™, President & CEO Sun, November 28, 2021
Losing your spouse is a painful, confusing time, but add to that repeated calls from an aggressive debt collector, and a bad situation suddenly can get even worse. Before you cave into the pressure, take a moment to catch your breath and learn the facts about your rights and responsibilities. You may be off the hook as some debts — including even certain types of credit card charges — are forgiven at death. However, others linger much longer.
First off, you should know that you are generally not personally responsible for paying off your husband's debts, as any loans would normally be paid off by his estate. This includes credit card debt, student loans, car loans, mortgages and business loans.
According to Marc Zimmerman, trust and estate planning attorney with the Law Offices of Michael A. Zimmerman, "When your husband dies owing a debt, the debt does not go away. Generally, the estate is liable for paying any outstanding debts, and, the named personal representative, executor or administrator will pay debts owed from the money in the estate, not from their own money or that of the surviving spouse.
However, if the surviving spouse inherits certain assets from the deceased spouse through beneficiary designations or joint account ownership, and the estate assets are insufficient to satisfy the creditor claims, the creditors could attempt to make claims against those assets that pass directly to the surviving spouse outside of the probate estate.”
That being said, you may be responsible for certain types of debts. For example, if the debt is jointly owned or you have co-signed a loan, you are obligated to continue to pay this debt. This occurs most often with credit cards, car loans or mortgages. Some states also require you to pay off any medical bills that your spouse incurred before their death.
The State You Live in Can Make a Big Difference
It is essential to understand the laws of your state so that you know where you stand concerning all debts, as some community property states hold you responsible for the debt even if it is not in your name. Community property laws make both spouses equally liable for debts incurred after the marriage has taken place.
There are currently nine community-property states:
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/am-responsible-paying-off-deceased-093006243.html
25 Secrets Elon Musk and Every Other Rich Person Knows
.25 Secrets Elon Musk and Every Other Rich Person Knows
Gabrielle Olya Thu, November 25, 2021
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."
25 Secrets Elon Musk and Every Other Rich Person Knows
Gabrielle Olya Thu, November 25, 2021
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.
To continue reading, please go to the original article here:
https://www.yahoo.com/finance/news/25-secrets-elon-musk-every-130009427.html
Experts From A World That No Longer Exists
.Experts From A World That No Longer Exists
Nov 10, 2021 by Morgan Housel
The biggest risk to an evolving system is that you become bogged down by experts from a world that no longer exists. The more evolution you have, the more you should expect that expertise has a shelf life. That’s always been the case and will always be. It’s just hard to accept because people need experts to trust and experts want to hold onto beliefs that were hard-fought to learn. Some expertise is timeless. A few behaviors always repeat. They’re often the most important things to pay attention to.
But most things evolve, and evolve faster than people’s beliefs. It’s a tricky thing that leads to a long history of older generations whose success came from understanding the new rules of their era not recognizing that the rules may have changed again.
Experts From A World That No Longer Exists
Nov 10, 2021 by Morgan Housel
The biggest risk to an evolving system is that you become bogged down by experts from a world that no longer exists. The more evolution you have, the more you should expect that expertise has a shelf life. That’s always been the case and will always be. It’s just hard to accept because people need experts to trust and experts want to hold onto beliefs that were hard-fought to learn. Some expertise is timeless. A few behaviors always repeat. They’re often the most important things to pay attention to.
But most things evolve, and evolve faster than people’s beliefs. It’s a tricky thing that leads to a long history of older generations whose success came from understanding the new rules of their era not recognizing that the rules may have changed again.
Investor Dean Williams once said, “Expertise is great, but it has a bad side effect. It tends to create an inability to accept new ideas.”
If you appreciate how much the world evolves you can appreciate how important that advice can be.
Henry Ford was a tinkerer. He revolutionized the factory floor by letting his workers experiment, trying anything they could think of to make production more efficient.
There was just one rule, a quirk that seemed crazy but was vital to the company’s success: No one could keep a record of the factory experiments that were tried and failed.
Ford wrote in his book My Life and Work:
I am not particularly anxious for the men to remember what someone else has tried to do in the past, for then we might quickly accumulate far too many things that could not be done.
That is one of the troubles with extensive records. If you keep on recording all of your failures you will shortly have a list showing that there is nothing left for you to try – whereas it by no means follows because one man has failed in a certain method that another man will not succeed.
That was Ford’s experience. “We get some of our best results from letting fools rush in where angels fear to tread.” He wrote:
Hardly a week passes without some improvement being made somewhere in machine or process, and sometimes this is made in defiance of what is called “the best shop practice.”
They told us we could not cast gray iron by our endless chain method and I believe there is a record of failures. But we are doing it. The man who carried through our work either did not know or paid no attention to the previous figures … a record of failures – particularly if it is a dignified and well-authenticated record – deters a young man from trying … I cannot discover that any one knows enough about anything on this earth definitely to say what is and what is not possible.
The important thing is that when something that previously didn’t work suddenly does, it doesn’t necessarily mean the people who tried it first were wrong. It usually means other parts of the system have evolved in a way that allows what was once impossible to now become practical.
To continue reading, please go to the original article here:
https://www.collaborativefund.com/blog/experts/