Nine Money Rules To Live By

Nine Money Rules To Live By

Liz Weston, MSN Money

Americans young and old are flunking their finances, but money mastery isn't really that hard. Here are 9 simple keys you need to know. Most surveys that measure financial literacy focus on teenagers, and the results are always grim. In research by the nonprofit Jump$tart Coalition, which promotes personal finance education, the average high school student correctly answered just 48.3% of the questions covering money basics in 2008. That was down from 57.3% a decade earlier, but even that score was hardly distinguishing -- anything less than 60% counts as an F.

A 2005 poll by Harris Interactive for the National Council on Economic Education showed that adults aren't that much savvier. While teens on average scored a 53 (another F) on a quiz testing knowledge of basic economic and personal-finance concepts, the grownups' average score was just 70 (a C).

In addition:

More than one-quarter of adults failed the quiz.

Women were far more likely to fail than men; 42% scored an F, compared with 15% of men.

Men were much more likely than women to get an A or B on the test (51% compared with 17%).

If it makes you female readers feel any better, there are also lots of studies out there showing that we're better investors than men -- once we get around to investing.

But the fact remains that there's a heck of a lot of financial ignorance going around, and financial ignorance is costly. Women may have even more to lose than men, since we tend to earn less, are more likely to have interrupted careers and live longer, which means we have more time to suffer from our mistakes.

My email box and Facebook page bear testimony to the daily cost of financial illiteracy: men and women who are overwhelmed by debt or have no savings, or don't invest for retirement, or fall for investment scams, or think we can drive gas prices down by not buying fuel for a day.

Understanding economics and personal finance doesn't mean you won't make mistakes or face financial disasters. But you can lessen the odds and repair the damage faster if you know the rules of the game.

Here are the economic and financial concepts I wish everybody knew:

1. The difference between needs and wants

Our actual needs are pretty limited: food, shelter, clothing, companionship. Just about everything else is a "want," and our wants are essentially endless. Because our resources are limited (see "scarcity," below), we have to make choices about which wants to fulfill.

Also, the way we fulfill our needs involves a lot of choice. Shelter, for example, can be a bed at a mission for the homeless or a $125 million mansion. Our food choices offer a similar range, from beans and tap water consumed at home to steak and Dom Perignon at an exclusive restaurant.

I've discovered many people believe they have to spend money in certain ways or in certain amounts, when in reality their spending is a choice -- or is at least based on choices they made earlier. If you're facing a monster mortgage payment, for example, it's because you chose to buy that home and selected that particular mortgage.

Taking responsibility for our choices can be scary, but it should also be empowering. After all, if you have choices, you're not just a victim of circumstance.

2. Scarcity makes your choices for you

It's lovely to believe in a world of endless abundance, but the reality is that at any given point in time, our resources have limits. Whether it's oil in the ground, our time here on Earth or the cash in our pockets, there's only so much available to be spent.

People who ignore this reality are the ones who run out of paycheck before they run out of month, or who extend their unsustainable spending by relying on credit cards, home equity loans and other reckless borrowing. Their refusal to make the sometimes-hard choices needed to responsibly manage money means that they will have even fewer choices in the future. The money they spend on stuff and on interest can't be invested in other goals, like retirement, so odds are pretty good they'll wind up old and broke.

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

http://www.taxproboise.com/identity_theft/young_and_old_are_flunking_their_finances.pdf

I Finished My Residency Process: What A Great Experience

I Finished My Residency Process: What A Great Experience

Notes From the Fied By Simon Black  September 12, 2022

[Editor’s note: This letter was written by Sovereign Man team member Joe Jarvis]

Three months ago I went to Raleigh, North Carolina to complete the first step of applying for Mexican residency. The process was relatively painless. And I walked out of the Mexican Consulate in Raleigh a few hours later with my application approved.

Now, since I had to travel to Raleigh to go to the consulate there, I decided to stick around for a few days and check it out. It was during that trip when I realized just how expensive American cities have become.

Raleigh is a nice city. But it’s not a major Tier-1 US city like New York, Chicago, or San Francisco. By comparison it’s a medium-sized city. And yet I consistently paid what I would have considered New York City prices for food and drinks; $11 beers, $14 glasses of wine, $16 cocktails, and entrees regularly over $25. I looked into rents and real estate prices too, which were going bonkers and seemed incredibly expensive.

Fast forward three months, and I’ve now traveled to Mexico City to complete the final part of my residency application.

The first step is to apply at a consulate in your home country, which I did in Raleigh back in June; and, once approved, you travel to Mexico to finish the process.

Unsurprisingly, my immigration experience here was fairly painless and straight forward. Although I did opt to hire professional help (a contact our Sovereign Man: Confidential members also have access to) for only a few hundred dollars.

It was great. The lady stood in line to get me the appointment, since their online appointment tool was down at the time. She also filled out the paperwork for me— with blue ink, which is apparently very important since they have begun to turn everyone with black ink away.

And, just like my consulate experience in Raleigh a few months before, I walked out of the immigration office a few hours later with my Mexican residency complete, and my ID card in hand.

But similarly, since I had never been to Mexico City, I decided to stay for a while and check out the city.

Keep in mind that Mexico City has a population of 20+ million people. For an equal comparison, you’d be looking at places like Shanghai or New York.

But what I found in Mexico City were prices significantly lower than in Raleigh, North Carolina. Food. Drinks. Entertainment. Real estate. Transportation. Medical care. And yet the quality and service were both consistently high.

I was generally going out in the city’s wealthier neighborhoods, like Polanco, Condesa, Roma, Santa Fe, Lomas, etc. And these are arguably the most expensive locations in the country... so I wasn’t expecting ultra-cheap, rock-bottom ‘Mexico prices’.

And yet I was still pleasantly surprised at how affordable Mexico City is— how much value you get for your money. In other words, you don’t pay very much. But you get a lot for it.

A luxurious, local brand hotel suite (with a living room and small kitchen) was less than $90.

When a friend of ours got sick, we paid about $70 for an English-speaking doctor to come over and make a house call, including tests, medicine, etc.  I don’t remember paying more than a few bucks for an Uber ride anywhere in the city, even going 40 minutes to the airport.

And then there’s the food... which is absolutely divine.

Mexico City really does have some of the nicest restaurants in the world. The food is exquisite. The design and decor are among the most eclectic and creative I’ve ever seen. And the service is second to none.

Even at grocery stores, the quality of the food is really great. Mexico is a major year-round agricultural producer, so many of the fruits, vegetables, and meats they sell are fresh and locally sourced. It was all cheap, too.

The grocery store I frequented in Polanco also had multiple specialty departments with imported cheeses, meats, wines, etc.

Most of all, there didn’t seem to be any shortages of anything. Everywhere I went, shelves were full. People were working. The economy was functioning.  By comparison, we held a Total Access event (Sovereign Man’s highest tier membership) in Austin, Texas a few months ago.

Austin is a cool city. But the historic downtown hotel (which charged $400+ per night) would only clean your room every three days due to staff shortages.

Simon brought his infant daughter with him and had to routinely sneak around the hotel at night looking for a place to dispose of poopie diapers because there was no housekeeping available.

Nearby drug store shelves were half empty and missing basic staples. Food delivery fees from Uber Eats and Door Dash eclipsed the price of the food itself.

And then there was the growing homeless problem in Austin— which has also become a major issue in many cities across the US.

Mexico City, quite ironically, is a breath of fresh air. Everything worked.

And while there were occasionally some people asking for change, I never saw a ‘tent city’ of homeless people that has become so pervasive in the US.

Mexico City itself is really pretty; it has, by far, the most greenery I have ever seen in any city in the world. There are parks everywhere.

And then there’s the city’s main park, called Bosque de Chapultepec. It’s larger than New York’s Central Park and London’s Hyde Park combined.

Bosque de Chapultepec is acre upon acre of greenery, paths and ponds, with the historic Chapultepec Castle in the center. Nestled in the park is also a Zoo, monuments, fountains, and multiple museums.

Of course Mexico City is not all rainbows and buttercups. Like any city, there are bad areas too. The traffic can be terrible. And yes, you shouldn’t drink the water.

The part I dislike the most is that many people in Mexico City are still obsessed with wearing masks.

In general, no one cares if you wear a mask or not. But I did have to put one on when I went to the immigration office.

There does seem to be some lingering Covid paranoia in Mexico City that will take time to subside.

Overall, though, I was very happy with the trip and could absolutely see myself living in Mexico City at some point.

And this means that having Mexican residency is a great part of my own Plan B.

Now, in case I ever need to leave my home country, I now have a place to go where (a) I actually like, and (b) I’m legally entitled to live.

Obviously I certainly hope I never need to use my Plan B. But in case I do, it feels really good to have such a great option.

To your freedom,  Simon Black,  Founder, SovereignMan.com

https://www.sovereignman.com/international-diversification-strategies/i-finished-my-residency-process-what-a-great-experience-37019/

This New Renaissance Can Fuel Human Prosperity For Decades To Come

This New Renaissance Can Fuel Human Prosperity For Decades To Come

Notes From the Field By Simon Black  September 2, 2022

The year 1776 is legendary for precisely one thing: the Declaration of Independence. But 1776 was actually a REALLY big year. Because in addition to the formation of the United States (which undoubtedly had an extraordinary impact on the course of the world), 1776 also saw two other historic trends take shape.

The first was the birth of capitalism.

1776 was the year that Scottish economist Adam Smith published his famous work An Inquiry into the Nature and Causes of the Wealth of Nations, which was the first book ever to outline the case for free markets and laissez-faire governments.

Not to take anything away from the impact that US independence had on the world, but you could easily make an argument that the idea of capitalism has been just as profound to human history.

Capitalism is responsible for more wealth creation and more prosperity in the past 246 years than every economic system combined over the previous 5,000. That’s a pretty significant impact.

But we’re not even finished yet with the big events from 1776. Because that year saw something else take place that was truly profound… again, potentially outweighing the impact of both US independence AND capitalism.

It was the invention of the steam engine… which at the time may have been the most disruptive technology in human history up to that point.

For thousands of years prior, nearly all work done on the planet was powered by muscle, i.e. human beings and animals toiling away in fields and factories. Just about everything required physical labor.

The steam engine changed all of that. For the first time on a mass scale, an inanimate fuel source (like coal or wood) could power machinery, which could do the work of dozens, even hundreds of people.

It was the steam engine that really kicked off the Industrial Revolution and brought about an extraordinary period of growth to the world, where wealth and standards of living increased like never before.

Over time, human beings figured out better, faster, cheaper ways to produce energy to fuel their machines. And there is an inextricable link between prosperity… and cheap energy.

When energy is cheap and abundant, societies are able to invest heavily in growth; they have more resources (i.e. more energy) available to grow, to produce goods and services, to invest in the future.

When energy is expensive and scarce, the opposite happens. A society has to spend most of its energy just to sustain itself, and there is limited surplus left over for growth and investment.

After generations of enjoying cheap energy and declining costs that fueled unparalleled prosperity, we are now facing steeply rising energy costs.

And I don’t even mean in dollar terms. Sure, the cost of a barrel of oil has more than doubled in the last year. Gasoline prices and electricity prices are high too.

But what I’m really talking about is the cost, in energy, of producing energy.

Oil wells, for example, require electricity or diesel fuel to power their pumpjacks. So oil wells essentially consume oil in order to pump oil.

In the past, this ratio of oil produced vs. oil used was quite attractive. For every barrel of oil it burned in fuel, an oil well would produce 30-40 barrels of output. And that was a great cost/benefit ratio.

But this ratio is falling rapidly, making energy a lot more expensive. And that’s a terrible trend. Again, cheap and abundant energy is a critical factor in driving prosperity. More expensive energy has the opposite effect.

Europe is already in a full-blown energy crisis, and many developing countries aren’t able to get their hands on enough energy to sustain themselves agriculturally. So this is already becoming a major issue, and it could potentially become much worse.

Obviously the war doesn’t help. But there has also been a deliberate political agenda to drive investment and enthusiasm away from fossil fuels towards more expensive, inefficient forms of energy production… like installing solar panels across cloudy Germany.

Again, I cannot overstate how important cheap energy is to human prosperity. So these incompetent, spineless politicians and climate fanatics are dragging the world down a terrible path.

Fortunately there is a real solution to this problem that already exists: nuclear.

It’s controversial (even though it shouldn’t be). But momentum is really starting to build for a new energy renaissance driven by nuclear power.

And this is a major trend you ought to be aware of, because it could drive human prosperity for generations to come. (Plus there are a LOT of ways to invest in it now.)

I invite you to explore this topic with me today in today’s podcast, in which we discuss:

- the intriguing history of energy, and why there was very little growth for 5,000 years

- how everything changed in 1776

- basic energy terminology you should know, like EROEI, specific energy, and more

- why cheap energy is so important to prosperity

- why energy is becoming more expensive… in energy terms

- why nuclear is the obvious answer, and how it can drive future growth.

To your freedom,  Simon Black,  Founder, SovereignMan.com

https://www.sovereignman.com/podcast/this-new-renaissance-can-fuel-human-prosperity-for-decades-to-come-36955/

Real Estate Shake Out

Real Estate Shake Out

The Final Wake Up Call By Peter B Meyer

Global Paralysis

Lies, counterfeit money, corruption, greed and human folly; the scale of these folies is enormous; big enough to cripple the financial well-being and financial stability of nations worldwide. It is becoming particularly unpleasant for the big banks. Bank share prices are showing a clear downward trend, especially for European banks. Many banks are awash with unsecured loans that can never be repaid and must be written off as losses. With economies around the world noticeably weakened, the tide is inevitably turning against the establishment and the despair of the cabal is growing. This makes the financial cabal structure more vulnerable by the day.

People go to bed on Friday and on Monday morning, if the markets do not open, until they do, that is the reset, or the beginning of it. This is finally the moment the awakened have been waiting for. Read on to the end of this article to understand what is to come.

Final Chapter

The world is about to see the final chapter of the biggest real estate shake out in human history. One of the classic rules of bubbles is that they usually deflate to at least the level at which they started – and often a little lower.

That means that “house prices should fall 80% to 95% from their current highs. House prices may fall back to 1950 levels. As a result, 80% of houses would end up in negative equity territory. The number of defaults and foreclosures will increase.

These economic components together form the perfect storm that is raging through today’s economy.

The last of the greatest generation of spenders in history – the prosperous baby boomers – are leaving their best spending years behind. Deflation will increasingly become the dominant trend as the economy slows and debts rise.

The consequences of these events lead to one thing: a severe tightening of credit – and write-offs of tens of trillions in loans and receivables. That means less money in the system – less spending – less demand – falling prices – and ultimately: Depression and deflation.

This is reality of the cabal economy and the most likely path it will follow, based on historical and empirical research.

People all over the world have taken it for granted that money is a worthless piece of paper, an absolutely insane collective delusion forced upon them to believe.

Intrinsic Value

Hundreds of years ago, travellers accepted banknotes called traveller’s cheques because they believed that the banks issuing them had a good reputation. Once these cheques were presented at a local bank, they would receive the notes back in the local currency, with no central authority to authenticate them. But today, people do not think this way. They believe that a government is needed to ensure the value of money.

But real money is based on natural characteristics, such as intrinsic value, durability, divisibility, uniformity, portability, scarcity and public acceptance. These characteristics are essential for a medium of exchange to function as an honest standard of payment, which is not the case with currencies issued by central banks.

Once established, Rothschild money changers transferred the valuable energy of labour from the people to themselves.

Money, created out of nothing and backed by debt, cannot and does not buy valuables, it is a fraud. As long as the illusion exists that “debt money” has value, and the sheep continue to consent to this illusion by participating in it, they will not be freed from their debt slavery.

When people wake up and realise that most banks are not only bankrupt but also corrupt, they will switch en masse to gold as a means of payment, just as they have done before for centuries.

Money Backed By Debt Is A Crime Against Humanity

In today’s society, people all over the world have taken for granted that ‘paper’ is money, but this is a nonsensical collective illusion that everyone was forced to believe. People thought that a government was needed to ensure the value of money.

Real money is based on natural properties, such as being intrinsically valuable, durable, divisible, uniform, portable, scarce and universally accepted. These properties are essential for a fair exchange standard to become universally accepted. This is not the case with currencies issued by Central Banks.

Unlike central bank issued currency, gold has always been valuable; today’s debt money is someone else’s burden, backed by unreliable promises that ultimately cannot be kept. Money is the opposite of debt and therefore money cannot be secured by debt. In other words, it is a crime against humanity.

Invented by Mayer Amschel Rothschild and built on the fact that money is a flow of energy known as currency, generated from the combination of raw materials, goods, services, and labour of the people.

Thus Rothschild gained a monopoly over all energy flows on planet Earth. A globally supported slave labour system based on debt money issued by their own central banks, infiltrated into every government and country.

The flow of money designed to return to them provides a rock-solid opportunity for complete financial and economic control.

By controlling the money supply and bribing governments, they have made their worthless debt money equal in value to the people’s energy money! A fraud of shameless proportions.

Money created out of nothing backed by debt should not buy valuables, because it is fraud. But, as long as people are under the illusion that “debt money” has value, and the sheep accept this illusion, peoples will not be freed from their debt bondage.

Hyper-Liquidity Becomes Hyperinflation

It is time to pay attention to what governments are doing, and take action accordingly by buying as much gold and silver as possible.

The problem with government debts growing fast and huge is that when the time comes, the Central Banks will have to raise interest rates, and will be very reluctant to do so, which then accelerates inflation.

So far, the excesses of money printing have been eliminated in the housing market, cryptos and stock prices, but it will not stay that way.

So the next stage in Hyperliquidity will be Hyperinflation due to the increased velocity of money in circulation. In a crisis of confidence in money. like the dollar, euro or yen, etc., is what causes hyperinflation, originated out of pure currency manipulation.

Consumer purchases have fallen sharply, which means that not all the new money is in circulation yet. Some has been used to pay off debts or is being saved, because nobody is investing.

Sooner or later this money will have to come back into circulation, and this will herald a period of hyperinflation, which means: too much money for fewer goods.

The Deep State Establishment is afraid of the movements and actions of the people, such as; ‘Stop the Fed’, and in fact; end all central banks. And that is exactly what is about to happen. Caused, by the banking system itself.

The moment this happens, the new QFS money system will be introduced, controlled by the people. The patriot policy is; to let the enemy destroy itself and that is now happening in real time, before our eyes. To be on the safe side; Stock up on water, food and necessities for the duration of a few weeks.

Awakening comes with a price. It may have been difficult and painful to get through the various stages of awakening, and especially to convince others. It is a challenge but opening the eyes and minds of the sheep, is even harder.

It is a struggle against time and injustice. The sheep are tossed to and fro without any idea of what is really happening, but they are eager to get in line for their free toxic Covid injection, which has predestined two-thirds of the population for an early departure from planet Earth.

https://finalwakeupcall.info/en/2022/09/03/real-estate-shake-out/

3 Reasons You Should Avoid Borrowing Against Your Home Right Now

3 Reasons You Should Avoid Borrowing Against Your Home Right Now

Liz Weston  Wed, September 7, 2022   MarketWatch

All that equity you're sitting on is tempting, but just because something can be done, doesn’t mean it should be done.

Soaring real estate values mean many homeowners are awash in equity — the difference between what they owe and what their homes are worth. The average-priced home is up 42% since the start of the pandemic, and the average homeowner with a mortgage can now tap over $207,000 in equity, according to Black Knight Inc., a mortgage and real estate data analysis company.

Spending that wealth can be tempting. Proceeds from home equity loans or lines of credit can fund home improvements, college tuition, debt consolidation, new cars, vacations — whatever the borrower wants.

But just because something can be done, of course, doesn’t mean it should be done. One risk of such borrowing should be pretty obvious: You’re putting your home at risk. If you can’t make the payments, the lender could foreclose and force you out of your house.

Also, as we learned during the Great Recession of 2008-2009, housing prices can go down as well as up. Borrowers who tapped their home equity were more likely to be “underwater” — or owe more on their houses than they were worth — than those who didn’t have home equity loans or lines of credit, according to a 2011 report by CoreLogic, a real estate data company.

Other risks are less obvious but worth considering.

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

https://www.marketwatch.com/story/3-reasons-you-should-avoid-borrowing-against-your-home-right-now-11662138434?siteid=yhoof2

5 Ways How You Value Money Affects Your Finances

5 Ways How You Value Money Affects Your Finances

Lee Huffman  Sun, September 4, 2022

Investors value money differently based on their experiences, goals and beliefs. This process is known as mental accounting, and it often affects how we budget and spend our money. Mental accounting can also affect our investment decisions, leading us to make choices that make it harder to meet our goals. Learn more about mental accounting, including how it applies to finance and whether or not you should use it to make decisions.

For more help with financial planning, consider working with a financial advisor.

Mental Accounting Definition

Mental accounting describes how two similar people choose to spend their income based on how each person values money differently. In many ways, these criteria are subjective, and investors weigh each of the categories differently, which complicates the topic even further.

Sometimes, mental accounting is detrimental and can make it harder for investors to reach their financial goals. This can happen when people view money decisions in relative terms instead of absolute terms.

Behavioral economists study the concept of mental accounting and how it affects our financial decisions ranging from daily spending to long-term investing. The concept was defined by famed economist Robert H. Thaler.

How to Use Mental Accounting in Financial Planning

In mental accounting, people treat money differently based on where it came from and how it is supposed to be used instead of treating every dollar the same. With investing and budgeting, people can treat their money differently in many ways. Here are a few examples:

Tax Refunds

Although a tax refund is getting a portion of the money withheld from your paycheck, many people view it as found money. They don’t always respect the time and effort it took to earn that money and, instead, feel that they can splurge when they get a refund. The money, which amounts to an interest-free loan to the government, may be used to fund a vacation, buy a big-screen TV or fund another purchase that they normally wouldn’t make.

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

https://finance.yahoo.com/news/5-ways-value-money-affects-130001846.html

7 Things You Should Never Do When Planning For Retirement

7 Things You Should Never Do When Planning For Retirement

ADAM MCFADDEN | Updated July 21, 2022

Looking to retire comfortably? Avoid these mistakes.

It’s never too early, or too late, to start thinking about your retirement goals. No matter if you’re hoping to retire early or work until you can’t any longer, having a plan for how you can retire comfortably is essential.

Get started on these steps right now so you can reach your retirement goals.

1. Not Having A Professional Review Your Plan

If you’re fortunate enough to have plenty of retirement savings and investments, now is the time to futureproof your funds. But that takes time and skills that most don’t have, so the best option is to turn to a professional financial advisor. The hard part is finding the right one.

WiserAdvisor does all that work for you, matching you to the best financial advisor for your specific situation so you get in an expert in the areas you need.

There’s no cost to you and no obligation to hire the advisor, so there’s not much to lose.

2. Not Keeping An Emergency Fund

Common wisdom suggests you should keep three to six months of expenses in an emergency fund. Once you retire, however, you’ll likely want to bump up that amount. Generally speaking, accidents occur more often as you age, whether through accidental falls, reduction in driving abilities, loss of general dexterity or simply through spending more time at home rather than in an office. The best way to plan for emergency expenses in retirement is to build up your nest egg while you’re working, rather than making it a monthly line item in your budget.

Sign up for a new SoFi Checking and Savings Account today so that you can start stashing cash. You can earn a cash bonus of up to $300 with direct deposit and you can get up to 2.00% APY (Annual Percentage Yield) on all checking and savings balances with no balance cap restrictions*.

Plus, there are overdraft fees, no minimum balance fees and no monthly fees. You can even get paid up to two days early when you set up direct deposit.

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

https://www.gobankingrates.com/things-you-should-never-do-when-planning-for-retirement-1383852/

How Much Cash To Have Stashed at Home at All Times

How Much Cash To Have Stashed at Home at All Times

GoBankingRates

Digital payment platforms like Venmo, PayPal and CashApp have changed the way we use and keep physical cash on hand. Most people rarely keep cash on their person, much less at home.

However, there are always unexpected events that can lead to a necessity for having a bit of cash on hand, particularly emergencies ranging from catastrophic weather (hurricanes, wildfire), to power outages. If you can’t access your digital currency or your banking systems are down, having cash can allow you to get gas, food, and medicines with ease.  However, just how much cash should you have on hand? We asked experts to weigh in and the answer is: It depends.

Keep Cash to a Minimum

From a security point of view, cash is the most insecure asset you can have. Keeping it to a minimum in the house in the case of fire or theft is a good rule of thumb, said Ryan McCarty, CFP from McCarty Money Matters.

Just how minimum is up for debate among financial experts. Danielle Miura, CFP, the founder and owner of Spark Financials, suggested, “You should keep enough money on hand to get you a couple of gallons of gas, pay for a delivery tip, or to help in unfortunate events,” or around $100-$200 at a time. “Emergency funds should not be held at your home, they should be stored in a high-yield savings account of your choice.”

McCarty framed it more in terms of a ratio: “In terms of amount, don’t let your cash exceed 10% of your overall emergency fund and/or $10,000. You can’t deposit more than $10,000 in cash in a given year without raising red flags with the IRS.”

Enough for Emergency Expenses

Yasmin Purnell, a personal finance expert and founder of The Wallet Moth, a finance website, suggested you keep enough cash on hand in case of an emergency that would require you to access “temporary accommodation, food and drink, gasoline, and medication.” Purnell added, “As a general rule of thumb, having access to $1,000 in cash at home would ensure you can at least pay for immediate expenses in the case of a national emergency.”

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

https://www.gobankingrates.com/money/financial-planning/how-much-cash-should-keep-at-home-at-all-times/?utm_campaign=1180818&utm_source=yahoo.com&utm_content=7&utm_medium=rss

Why Is Money So Confusing?

Why Is Money So Confusing?

Liz Weston, CFP®

Thu, September 1, 2022  NerdWallet

The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Managing money is an essential life skill, yet most U.S. adults would fail a financial literacy test. Consider the results of a survey meant to measure financial literacy, called the TIAA Institute-GFLEC Personal Finance Index. On average, U.S. adults correctly answered only 50% of its financial literacy questions in 2022.

In other words: If you find money confusing, you’re far from alone. But the reasons you’re baffled may have more to do with how our brains work than how money does. Understanding some of the common barriers, along with strategies to cope, could help you finally get a handle on your finances.

Money is a new language

You wouldn’t expect to carry on a fluent conversation in Madrid or Mexico City if you only knew a few words of Spanish. Similarly, personal finance is loaded with terms, jargon and concepts that take a while to learn.

“Entering the world of money is like entering a whole new culture and learning a new language,” says Ed Coambs, a certified financial planner and couples therapist in Charlotte, North Carolina.

You shouldn’t feel stupid for not understanding everything instantly, and no one should make you feel that way. However, learning can be more difficult if we encounter judgmental, condescending or dogmatic people — which unfortunately describes many people who are fluent in personal finance lingo.

“Many money experts, professional or non-professional, can become varying degrees of authoritarian: ‘Yes, I know what's best for you. This is what you should do,’” Coambs says.

People with a rigid approach to personal finance may not understand the culture and life experiences that shaped you. They may insist you funnel every possible dollar into paying off debt or saving for retirement, for instance, but you may feel it’s important to tithe to your church or support your elderly parents.

Rather than dictating how you should spend your money, helpful advisors meet people where they are, says Rachael DeLeon, interim director of the Association for Financial Counseling & Planning Education, a nonprofit foundation that administers financial counseling credentials.

“It's figuring out: What are your values? What's important to you? And how do you make that work within your own financial situation?” DeLeon says.

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

https://news.yahoo.com/why-money-confusing-130006884.html

It’s A Crazy World When Zimbabwe Has The Most Stable Currency

It’s A Crazy World When Zimbabwe Has The Most Stable Currency

Notes From the Field By Simon Black August 30, 2022

Robert Mugabe could have gone down in history with the same esteem and grandeur as Nelson Mandela.

Like Mandela, Mugabe was imprisoned for several years for being a prominent anti-colonialist leader in Zimbabwe— then called Rhodesia.

Upon release from prison, and with a little help from the international community, Mugabe became Prime Minister of Zimbabwe in 1980.  And the first few years of his leadership were quite reasonable.  But that all changed in 1987 when the constitution was amended and Mugabe gained dictatorial powers. 

Mugabe destroyed the economy with insane regulations, fought expensive wars, and indebted the nation.

He also confiscated private land from established (mostly white) farmers, which he redistributed to his supporters, most of whom had no experience in farming.

Unsurprisingly, Zimbabwe’s once-booming agriculture exports collapsed almost overnight.

This authoritarian control pervaded across nearly all industries, and by the early 2000s, Zimbabwe’s economy was in shambles.

About half the country was unemployed and inflation skyrocketed.

In 2001 alone, retail prices doubled. But that was just the beginning. By 2003, inflation was nearly 600%. By 2006, more than 1,200%.

At its peak in 2008, Zimbabwe’s inflation was estimated by various economists to be somewhere between 500 billion and 89 SEXTILLIAN percent, which looks like this: 89,000,000,000,000,000,000,000%.

In 2009, the government finally capitulated and chose to abandon its currency altogether. And for the next several years, Zimbabwe had no official currency.

People transacted in dollars, euros, South African rand, Chinese renminbi… any foreign currency they could get their hands on.

I’ve been to Zimbabwe a few times; the people are intelligent, resourceful, and good-natured. And they have amazing stories to tell about living through hyperinflation.

By 2016, Zimbabwe’s government decided to give a national currency another chance. They started by issuing “bond notes”. And a couple years later they reestablished a new Zimbabwe dollar.

But this time, they promised to use restraint in printing money.

Now, I’m sure you will be shocked to learn that the central bank of Zimbabwe did not exercise restraint...

The new currency was introduced at parity with the US dollar, allegedly worth 1:1. And Zimbabwe’s government threatened to imprison anyone who ignored the official exchange rate.

Naturally, though, the government’s excessive spending and money printing caused the currency to lose value almost immediately. And soon they had to establish price controls based on an exchange rate of 25:1 to USD.

By the start of 2022, the Zimbabwean dollar was worth about 108:1 USD. And it’s now trading around 520:1.

But hey, that’s way better than the 35 quadrillion to 1 ratio of 2009...

There has been an interesting development, however. Instead of continuing with its failed policies, the central bank of Zimbabwe has begun issuing gold coins.

And the 91.67% pure, one ounce Zimbabwean gold coins are currently going for about $1,830 USD.

As of early August, about 4,500 had been sold to be used for local trade, which means they’re circulating as a legal currency in the Zimbabwean economy. That makes these gold coins the most stable currency in the world.

Now, personally I’m a bit skeptical and would love to see a full chemical assay to make sure the coins are actually as pure as the government claims.

Also, crypto would be a MUCH better medium of exchange for day-to-day transactions than gold coins.

But (assuming everything is legitimate) Zimbabwe is at least taking a step in the right direction, which is more than most western governments can say for themselves.

Sure, the US, UK, and Europe don’t have anywhere close to Zimbabwe’s level of inflation, which was more than 200% in the last 12 months.

But since 1971, when the US dollar was decoupled from gold, the value of the US dollar has fallen by nearly 87%.

Even worse is that interest rates in the US (when adjusted for inflation) have been negative for most of the past twenty years. Anyone who responsibly saved their money in, say, a savings account, LOST money after accounting for inflation and taxes.

Given that governments and central banks are key drivers of inflation and interest rates, this is tantamount to official theft.

And yet they keep doubling down on failed policies. They act like they can cure inflation, which in large part was caused by excessive government spending, with more government spending.

And they treat the absurdly-named Inflation Reduction Act as if it’s some sort of magical spell that can ward off the most destructive economic monsters.

If only that were true.

But in the real world, inflation will inevitably increase as they borrow another trillion dollars to pour into the IRS, triggering millions of new audits and causing American productivity to decline.

Forgiving student debt is another inflationary move. If nothing else, universities know that they can raise their tuition because all of the suckers taxpayers are footing the bill for an extra $10,000 to $20,000.

The US national debt now stands at $31 trillion, an increase of $2.4 trillion so far this fiscal year. And the Treasury Department is forecasting multi-trillion dollar deficits for years to come.

These deficits are extremely inflationary... because the government pays for them by having the central bank print more money.

At least Zimbabwe has figured it out. Western governments, on the other hand, still believe they can print and spend as much money as they like without consequence.

This is pure madness. But fortunately you don’t have to wait for the federal government to start acting responsibly.

You are perfectly free to store a portion of your savings in gold, silver, or any number of other real assets that hold value in times of inflation.

And with the way things are going, that might not be a bad idea to consider.

To your freedom,  Simon Black,  Founder, SovereignMan.com

https://www.sovereignman.com/trends/its-a-crazy-world-when-zimbabwe-has-the-most-stable-currency-36945/

What to Do With a Financial Windfall

What to Do With a Financial Windfall

Rivan V. Stinson, Staff Writer Tue, August 30, 2022 Kiplinger

It’s a cliché, but it’s also true: Every cloud really does have a silver lining. That was hammered home for me after I was recently rear-ended in a car accident. I wasn’t hurt, but it was a frightening experience, and the amount of paperwork required in its aftermath was sometimes overwhelming.

After I filed my claim and it was processed, my auto insurer deemed my car a total loss. But before I had time to mourn the fact that I was carless—again—the silver lining emerged: I was refunded part of my auto insurance premium for the month, and I was cut a check for $11,000, which was what my auto insurance company concluded my 2014 Chevy Cruze was worth. While the settlement wasn’t a Powerball, “quit my job” amount, it did give me pause, because I had to decide what to do with it.

Back to Basics

I knew I didn’t want to run out and lock myself into an auto loan for another car. With prices for new and used vehicles still crazy high, adding a car payment didn’t sit well with me—especially since my old car was paid off. Plus, the Washington, D.C. metro area has a public transit system that I had used consistently before I had a car. So I did what I’ve been meaning to do for a while: I added money to my emergency fund.

You generally want to have at least three to six months’ worth of expenses stashed in a dedicated savings account in case of a job loss, medical emergency or costly car-repair bill. (Here's more on where to find emergency cash.) However, with inflation running at about 9%, you should stash more in the account.

Bulking up your savings by about 10% or more will give you more protection in the event of an emergency, says Samantha Gorelick, a certified financial planner with Brunch & Budget, a financial planning firm. You need to be prepared to cover your expenses at elevated prices if inflation continues, she says.

If you don’t have an emergency fund, an unexpected windfall is a good way to start one. Put your money to work by parking it an interest-bearing savings account. Rates are climbing for both savings and money market accounts at many financial institutions. (For current rates on top-yielding accounts, go to depositaccounts.com.)

Another personal finance basic to consider: Pay down any credit card debt you have. For those carrying a balance, using even a modest windfall to pay it down could put you on a better financial footing and potentially increase your credit score.

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https://news.yahoo.com/financial-windfall-162909157.html