11 Quick Steps That’ll Have You Managing Your Money Like A Millionaire

11 Quick Steps That’ll Have You Managing Your Money Like A Millionaire

By The Penny Hoarder Staff  Updated December 27, 2022

Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)

But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.  These are simple money moves any normal, non-millionaire person can make today. Each tip can get you closer to achieving your big goals.  

Take a look:

1. Cancel Your Car Insurance

Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal.

Use a website called EverQuote to see all your options at once.

EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.

Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.

2. Get a Free $25 to Invest Like an Elite Hedge Fund

Hedge funds feel like an elite, sophisticated way to invest — and out of reach for most of us. Something like a $250,000 minimum makes this kind of investing feel like an exclusive club for the wealthy.

But an app called Titan makes this kind of elite investing strategy accessible to the rest of us — and you can get started with just $100. Plus, they’ll give you $25 for free once you sign up and invest.

Titan is a simple, user-friendly investment app that mirrors the financial moves of top hedge funds. It invests money in top stocks, based on what all those hedge funds have been buying — because it knows those are best set up for growth.

And unlike robo-investing apps, you get access to fund managers and insights into what goes into their recipes. Titan’s portfolio managers and analysts aim to beat the stock market from day one.

All three of Titan’s co-founders are former hedge fund guys who are now heavily invested in their Titan portfolios — the same stocks they’d invest your money in.

More than 50,000 people already use Titan, and it takes just a few minutes to fund your account and get started — and get your free $25 so you can invest even more. Isn’t it time you had access to invest like the elite?

3. You Can Become Debt Free — Without Paying it All Off

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

https://www.thepennyhoarder.com/budgeting/money-management-in-10-steps/

6 End-of-Year Money Moves to Make Now and Set Yourself Up for 2023

6 End-of-Year Money Moves to Make Now and Set Yourself Up for 2023

By Molly Moorhead, CFP®   Assistant Managing Editor  Updated December 21, 2022

The year is almost over, and you’re no doubt rushing to wrap up holiday shopping, get ready to travel or meet a final work deadline.  The last thing you need is another item on your to-do list, but a little bit of financial reflection and planning is essential before the calendar turns to 2023.  Making these end-of-year money moves will help you handle whatever comes your way next year.

6 Money Moves to Make Before the End of the Year

1. Set Your Financial Goals for the Coming Year

When you think ahead to the end of 2023, what would make you feel accomplished? What if you cut your credit card debt by half? What if you were able to boost your savings account to four — or even five — figures? Or build up that emergency fund you may have had to dip into this year?

Think about what you want to celebrate at the end of 2022, and then set some goals to help you get there.

We’re fans of the SMART method of goal-setting. A SMART goal is:

Specific

Measureable

Attainable

Realistic

Timely

For instance, “become financially secure” isn’t a SMART goal because it’s ambiguous.

On the other hand, “save $5,000 in my emergency fund by the end of 2023” would be considered SMART because it’s specific, measurable and timely.

By thinking through your financial goals in this way, you’ll have more clarity about what you’re trying to do, and that will give you a better sense of how to allocate your resources and energy in the year to come.

Need a professional checkup? Answer a few questions about yourself to receive a customized financial plan — it's totally free and totally anonymous.

2. Review Your Spending Over the Past Year (and Be Honest About It)

We know this isn’t going to be fun. In fact, it’s probably going to be pretty tedious.

Here’s a shortcut: If you use your bank or credit card app, you likely have access to graphs that show how much of your income went to specific spending categories, like food, entertainment and household expenses.

However, you can reconcile your spending without digital tools.

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

https://www.thepennyhoarder.com/budgeting/end-of-year-money-moves/ 

How Much Cash Can I Withdraw From My Bank?

How Much Cash Can I Withdraw From My Bank?

Eric Reed  Mon, January 2, 2023

Just about every bank puts a limit on how much cash you can withdraw each day. In part, this is a security feature to prevent thieves from cleaning out unauthorized accounts. In other part, this helps banks and ATMs to stabilize liquidity. If accessing cash, especially on an unscheduled basis, is important to you, here’s what you need to know about daily withdrawal limits from a personal account at a commercial bank.

If you’re not sure what type of financial institution should keep your money then you may want to consider working with a financial advisor.

What Are Withdrawal Limits?

A daily withdrawal limit is the maximum amount of money you can withdraw from your bank account in a single day. These limits largely exist for two reasons.

The first is to manage cash flow and liquidity. Banks keep a limited amount of cash on hand at any given time, as do ATMs. By setting withdrawal limits, the bank can control how much they have to distribute at any given time.

Just as importantly, if not more so, withdrawal limits are a security feature. By limiting daily withdrawals, banks help protect their customers against unauthorized access. Even if someone gets your debit card and PIN number, there’s a limit to the damage they can do.

There are three main categories of withdrawal limits:

ATM Withdrawals

This is by far the most common use of the term “withdrawal limit.” Your bank’s ATM withdrawal limit is the maximum amount of physical cash you can take out of an ATM in one 24-hour period. For example, many banks have a $500 limit, which means you can’t take out more than $500 in cash during a single 24-hour period.

Typically banks apply the ATM limit cumulatively, across all ATM transactions in a single 24-hour period. This means that it is not a limit on how much you can withdraw at once, but rather a limit on how much you can withdraw from ATMs altogether over the course of a day.

While your bank sets a limit on ATM withdrawals, individual ATM operators can do so as well. This limits how much money you can take out of that operator’s machines over the course of a single day. For example, say your bank has a $1,000 withdrawal limit and you use an ATM with a $600 limit.

This means that you can withdraw up to $600 from that ATM operator’s machines in a single day, but you can withdraw an additional $400 from other ATMs before hitting your bank’s limit.

Cashier/Teller Withdrawals

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

https://news.yahoo.com/much-cash-withdraw-bank-140036657.html

This Family Escaped… Because They Had A Second Passport

This Family Escaped… Because They Had A Second Passport

Notes From the Field By Simon Black  Janury 2, 2023

On November 26, 1927, a 47-year old Austrian naval officer stood at the altar of the Nonnberg Abbey in Salzburg to marry his young, 22-year old bride. His name was Commander Georg Ritter von Trapp; and hers-- Maria.  They were the couple who would become famous from the 1965 movie The Sound of Music, a popular musical which was loosely based on their true story.

Von Trapp came from a naval family; his father was a decorated officer who had been elevated into nobility for his service, and Georg followed in his father’s footsteps when he entered Austria-Hungary’s Imperial Naval Academy in 1894 at the age of 14.

And more than 20 years later, von Trapp distinguished himself as one of the most successful submarine commanders of World War I.

But Austria-Hungary was on the losing side, and the war had devastated the empire.

By the time the war ended in 1918, Austria-Hungary’s economy was near collapse. Food supplies had dwindled, plus the famous Spanish flu pandemic had set in (which nearly killed the Emperor).

The empire disintegrated in a matter of months; its former territories became independent states, including the newly landlocked Republic of Austria. So Commander von Trapp had suddenly become a naval officer with neither a navy, nor even a coastline.

He initially retired and enjoyed a life of leisure; his first wife was a wealthy heiress, so the von Trapps had money. When she died in 1922, she left him with a vast fortune... along with seven children.

Five years later von Trapp married his children’s nanny, Maria, who was just 22 at the time.

At first the family continued to live comfortably on their estate near Salzburg. But von Trapp lost his fortune in the early 1930s during the Great Depression, and the family was forced to make ends meet by singing at concerts.

They became relatively famous and went on tour, singing their way across Europe during the late 1930s. But when Germany invaded Austria in 1938, von Trapp could see the writing on the wall and knew it was time to leave.

The Sound of Music ends with the von Trapp family dramatically escaping the Nazis and fleeing Austria by literally walking over the mountains into Switzerland. But the filmmakers completely made that up.

In reality, the von Trapps simply went to the local station and boarded a train for Italy.

But the reason they were able to do so amid the Nazi’s occupation of Austria is because Commander von Trapp had a second passport.

Georg von Trapp was born in the city of Zadar (modern day Croatia), where his father was stationed at the time.

Back then, Zadar was part of the Austro-Hungarian Empire. But after the empire was formally dissolved following World War I, Zadar became (strangely) part of the Kingdom of Italy.

And since von Trapp had been born in a city that was now part of Italy, he was eligible for Italian citizenship.

Commander von Trapp was famously a staunch Austrian. But even a patriot like him could see the value in having a second passport; it’s like an insurance policy to mitigate the what-if’s. The unknown. The unexpected. The unthinkable.

And if there’s anything we should have learned from the past few years, it’s that the unthinkable absolutely happens. Life can change fundamentally, overnight. And having a second passport, or at least foreign residency, can really help mitigate those unthinkable risks.

Von Trapp probably wasn’t contemplating Nazi occupation of Austria when he became eligible for Italian nationality in 1918. In fact the Nazi party wouldn’t even become prominent in Germany for at least a decade.

But as a former submarine commander, Von Trapp understood risk and uncertainty. And he knew that having Italian nationality would help his family be better prepared for a world full of unknowns.

This made their departure quite simple. Instead of a dramatic escape, they merely used their Italian papers to leave Austria and cross the border into Italy.

(They didn’t remain in Italy for very long; almost immediately they traveled to London, and then finally to the United States where the family eventually settled in Vermont.)

I was able to do the same thing for my in-laws recently; my wife’s family is from Ukraine, and we were able to get them out of Kiev, across the border to Poland, and eventually to Cancun, because they have legal residency in Mexico.

And the reason they have legal residency in Mexico is because both of my kids were born there. Under Mexico’s nationality law, whenever foreigners give birth in Mexico, the child automatically becomes a Mexican citizen, plus both parents AND both sets of grandparents are eligible for permanent residency.

So because my kids were born in Mexico, my in-laws became Mexican residents. And this really smoothed their departure from Ukraine.

(Once they arrived in Mexico, we applied for US visas for them, which were quickly granted. And they are now at my home in Puerto Rico under a two-year refugee status.)

Another benefit of a second passport is that it often passes down to the next generation. My kids, for example, have five passports. Their children will inherit all of them, as will their children’s children.

So even if the unthinkable doesn’t happen again in my lifetime, my kids will still have the insurance policy, as will their children and grandchildren.

But a second passport isn’t just for warzones and catastrophes.

A second passport ensures you always have another place to go. It gives you more options for retirement. More places to live. More places to do business and invest. Better ease of travel. Often there may even be tax, healthcare, legal, and pension benefits.

And, with very few exceptions, there's no downside whatsoever.

(A handful of places, like Israel, require citizens to serve in the military, but this is very rare.)

Now, I don’t want to give you the impression that a second passport is some Panacea that's going to solve all of your problems. That’s not the idea.

But it can be a great help to mitigate crazy, unforeseen, life-wrecking risks. Both for you, and for future generations of your family.

It’s a rare thing to be able to put in a little bit of effort today, and have that effort create lasting benefit for generations to come. But you can absolutely do this with a second passport.

Best of all, you might even be entitled to one already; one of the best ways to obtain a second passport is through ancestry, or bizarre accidents of birth like Georg von Trapp.

Italy is one of those places; if you have grandparents from the old country, you might very well be eligible for Italian citizenship and a second passport. And there are many other countries too, including Ireland, Greece, and more.

You can read more about citizenship by ancestry here, including a number of countries that offer it.

If you’re inclined towards New Year’s Resolutions, I’d definitely encourage you to put citizenship by ancestry on your list for this year. Again, it takes some up-front effort. But the benefits can truly last for generations.

To your freedom,  Simon Black, Founder  Sovereign Research & Advisory

https://www.sovereignman.com/international-diversification-strategies/this-family-escaped-because-they-had-a-second-passport-144898/

The Ups and Downs of Money and Marriage

The Ups and Downs of Money and Marriage

By Billy B | Purpose

If you want to be happy and rich, don’t marry someone based on pretty looks, charming words, and fuzzy feelings of love. Instead, marry someone who has the same goals, dreams, and shares the same decision-making logic as you. If you can do this when choosing a partner, you’ll find you’ll be happier, less-frustrated, and if you’re both frugal along the way, you can become richer than you ever imagined.

I know, because this outcome happened to us. It’s true: The spouse you choose will have a massive impact on the amount of wealth and happiness you will be able to experience over your lifetime together.

Choose a spouse recklessly, and you may spend the next few decades in the same reoccurring arguments on what decisions are smart, and how you should spend your money.

But choose a spouse wisely, and you can spend the next few decades planning, executing, and living a dream future you both want to live together.

But, no matter who you choose as a partner, a conflict-free, emotionally-perfect, and completely-blissful marriage does not exist. Even the best marriages have disagreements, arguments, and fights. But as long as you agree on the big decisions in life, at least your fights will be over the small decisions in life.

I wanted to write this article to pull back the curtain on my own marriage, and show the pros and cons that we experience as we pursue the same financial life together.

We’re lucky that we rarely argue about money, because finances are a top-10 cause for divorce and conflict in American mairrages. But as you’ll see, just because we’re on the same financial page, that doesn’t mean our marriage is perfect or argument-free. It just means that we have more time to disagree about everything else, haha.

Here are a few examples that show the pros and cons of marrying a person who shares the same frugal logic as you:

Decision Making:

Pro: When you’re on the same financial page as your spouse, all of the financial decisions you make are made using the same shared-logic you both posses. Therefore, the question as to how to spend your money wisely together becomes a logical act, rather than acting on a whim. It makes saving a ton of money easy, because you both think saving and investing makes sense, so you effortlessly do it together. But marriage and life isn’t about being 100% logical and disciplined all of the time. This overly-logical trait leads to the con of marrying someone who is on the same frugal page as you.

Con: Because you’re both so logical and disciplined financially together, sometimes you’ll miss out on taking a huge risk, or going on an awesome adventure, because spending money on this particular event just doesn’t make a lot of sense to your shared financially-logical minds.

But if you asked me what type of married-life I’d rather experience: A YOLO life (You Only Live Once life) where major life decisions are based on emotional feelings, and anything and everything good and bad may happen. Or a disciplined journey of logical decisions that will naturally lead you to the life you want to live, I’d choose the logical lifestyle 10 out of 10 times because you’re almost guaranteed to reach the destination you dream about. If you base major life decisions on emotions and feelings, there’s only a chance you’ll end up living the life you want to live, and a chance is just not enough for me. I want to be sure.

Traveling Together:

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

https://www.wealthwelldone.com/the-ups-and-downs-of-money-and-marriage/

Why You Don’t Want to Go Back in Time and Do It Over Again

Why You Don’t Want to Go Back in Time and Do It Over Again

By The Wealthy Accountant

Owen Flanagan was on a quest to understand what it takes to live a good life. As he prepared an essay for the book How to Live a Good Life: A Guide to Choosing Your Personal Philosophy he tells the story of when he interviewed the Dalai Lama. Knowing that Buddhists consider resentment and anger as very bad, he asked the Dalai Lama if it would be wrong to want to go back in time and kill Hitler.

The Dalai Lama felt that it would the the right thing to do, go back in time and kill Hitler before WWII and end all the suffering and cruelty that entailed before it happened. He felt killing Hitler should be done with “martial fanfare” even.

But not in anger.

If the goal is to reduce suffering, the Dalai Lama got the question wrong. To see why going back in time is the worst choice to right a wrong or to take a different course, we need to start closer to home. (We’ll address the Dalai Lama and the Hitler issue later.)

Going Back in Time to Fix a Mistake

Science fiction has made a subgenre out of time travel. The idea is we can “go back” and fix a wrong, right a mistake, take a different course.

Aside from the fact that travel back in time is impossible, as far as we know, there is one serious problem we can’t ignore. Travel back in time means we could kill our parents before we are born so we are never born to go back in time to. . . you know. (Causality Loop)

Astute readers might point out we can travel to the future using relativistic speed or a gravity well. True, but you can’t reverse the process. When you move forward you leave it all behind.

All this deep thinking on traveling back in time to fix a mistake or make a different life choice is counterproductive, regardless the science.

The assumption is that if you could travel back in time you could make a different choice. You would call a cab rather than drive while intoxicated. The person you killed, maybe even a family member, could be saved.

Late in life you might dream of starting over and taking a different career path. It is natural to think of the things that might have been. Maybe a different spouse. Or no significant other at all! Maybe start that business, write that book, see that exotic place.

Yet you forget one simple fact. If you “truly” go back in time and do it again you can’t take the current you—wisdom, experiences and all—with you. Going back in time means really going back. The you that goes back leaves all your experience and knowledge in the future.

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

https://www.wealthyaccountant.com/2022/11/02/why-you-dont-want-to-go-back-in-time-and-do-it-all-over-again/?fbclid=IwAR0-TnlzRzSSfFieOvYgjy-ln6ViNzWenvTShAlj2jUw8OvUb7Ka3vOOy-Q

7 Ways to Develop Financial Trust in Your Relationship

7 Ways to Develop Financial Trust in Your Relationship

If you find that you're constantly fighting about money or hiding how you spend money from your partner, it may be time to rethink your relationship goals and values. Fighting about money can create tension in a relationship and make it challenging to accomplish future goals. When one spouse gets frustrated with the other, it can seem like you're on an island all on your own, trying to resolve a difficult situation. How can couples develop and build financial trust in their relationship?

From creating a long-term goal to paying bills on time, here are several tips for developing financial trust in your relationship.

Seven Key Couples can Create Financial Trust

Share a Joint Credit Card

Establish Clear Boundaries

Have Regular, Transparent, and Productive Discussions

Be Open and Honest About Financial Situations

Time + Planning = Trusting Financial Relationship

Pay Bills on Time

Discuss Finances Before Marriage

Share a Joint Credit Card

Opening a joint credit card is a great way to build and develop financial trust. Being transparent and on the same page when it comes to handling money is a crucial aspect in any relationship.

This allows couples to develop a line of credit that'll benefit future investments if both parties maintain a good credit score. It also helps couples define their combined budget, savings, and expenses more than having completely separate finances.

- Gigi Ji, Head of Brand and Business Development, KOKOLU

Establish Clear Boundaries

Couples can develop and build financial trust in their relationship by establishing clear boundaries. In other words, couples need to define what's theirs and what's not clearly. This can help them avoid unnecessary conflicts and misunderstandings and prevent any nasty surprises when one partner wants to spend money on something they've already agreed not to do.

It's also important for couples to address any financial disagreements as soon as possible so they don't fester and become bigger problems later on. When couples ignore their financial disagreements, it can lead to resentment and even result in divorce. Therefore, I believe couples who can talk about their money issues openly and honestly are much more likely to find a solution that works for both parties.

- Tiffany Homan, COO, Texas Divorce Laws

Have Regular, Transparent, and Productive Discussions

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

https://www.harriscashcoach.com/post/7-ways-to-develop-financial-trust-in-your-relationship?fbclid=IwAR2n1HJnL5Bh_R2jMZNHOU06ddMY8ZG5bKwWwxVhSmhawzLmYu0iZroF8o0

Top 9 Financial Resolutions for the New Year (2023)

Top 9 Financial Resolutions for the New Year (2023)

New Year New Me with resolutions written on a notepad on a coffee table with a laptop, pencil, and plant.With each new year comes the perfect opportunity to reflect on the progress of your financial life and create actionable goals for the 12 months ahead. While most people focus on saving more money and paying down debt, others place importance on shifting behaviors around money management and increasing their income in an attempt to improve one’s financial circumstances.

Millions of Americans will create a New Year’s resolution in 2023, but only a fraction of them will succeed in achieving their goals. It’s discouraging to resort to half-measures or outright failure for weeks or months at a time, prompting most people to abandon their resolution altogether.

One solution is to set attainable financial goals that take small steps in the right direction rather than unlikely giant leaps. If you’re planning to make the new year your best one yet, check out our top financial New Year’s resolutions to get you started with a bang.

Top 9 Financial New Year’s Resolutions

1. Boost Your Credit Score

One of the most powerful financial moves you can make in the new year is checking your credit history reports and improving your scores. You can view your reports for free with the three major credit bureaus, Equifax, Experian, and TransUnion, once every 12 months through AnnualCreditReport.com.

Checking your credit reports and credit scores gives you the information you need to make changes, if necessary, and identify any errors that need to be corrected. With a clean credit report and good credit score, you will have access to more affordable credit now and in the future.

This can save you hundreds to thousands of dollars if you are thinking about taking on some form of financing in the new year.

2. Evaluate Your Debt

Another smart resolution for the upcoming year is taking a close look at your current debt. Having consumer debt, including credit card balances, personal loans, student loans, or a mortgage isn’t necessarily a bad thing. However, interest accruals on these debt balances can add up to a significant amount over time. You could also be potentially hurting your credit score.

Look at what you owe and the interest rate on each debt, then determine what might be available for extra payments. When paying extra is not a feasible option to reduce your debt load, consider alternatives such as a debt consolidation loan or debt relief program for additional assistance.

3. Work on Your Budget

Another important financial resolution that will add money to your wallet is committing to working on your budget. Figuring out what money is coming in and where it’s going every month can be an enlightening process.

If you’re noticing that you don’t have as much as you’d like to set aside for retirement, investments, or savings, looking at your budget can reveal where you may be able to cut back or reallocate some of your spending.

Budgeting doesn’t have to be difficult, though. There are a handful of money management apps, websites, and desktop software programs to make the process a breeze.

4. Increase Your Savings Amount

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

https://www.aprfinder.com/financial-resolutions?fbclid=IwAR0NZJYKkjEHalFQl0gV-t-U2oRQvvqX3RWAi38ZRAfRfDwdOUq6U7Uc4hs 

The Quiet Disappearance Of The Safe Deposit Box

The Quiet Disappearance Of The Safe Deposit Box

Michael Waters  December 2, 2022 Very Informative & Interesting

Once revered as the safest way to store physical valuables, safe deposit boxes are now being phased out by major banks. The move is already starting to backfire.

In the opening sequence of The Bourne Identity, a young Matt Damon wakes up with no idea who he is. All he has is a code — the account number for a safe deposit box in Switzerland.

At the bank, an attendant leads him into an elaborate steel vault, where he’s presented with a safe deposit box. Inside are the first clues to his identity: a gun, a watch, stacks of cash, and a series of passports under different nationalities, including one bearing the name “Jason Bourne.”

Over the years, safe deposit boxes have become iconic — a staple not only of the banking industry but also of heist movies and spy flicks. Inside Man, The Dark Knight, Casino, and The Da Vinci Code all feature pivotal safe deposit box scenes.

In Hollywood, safe deposit boxes are so prominent, in fact, that it’s easy to miss the seismic changes racking the industry: In the wake of the 2008 financial crisis, big banks have quietly abandoned the safe-deposit business.

Both HSBC and Barclays have shuttered their safe-deposit services in many countries, and Capital One joined them in 2016. Most recently, this past September, JPMorgan Chase announced it was phasing out its safe deposit boxes, too. In the coming decade, other major banks seem likely to join them.

What went so wrong?

The Rise Of The Safe Deposit Box

The Civil War was just days away when a New York businessman named Francis Jenks stumbled on an idea that would change the face of the banking industry.

In March 1861, while on a trip to England, Jenks — the moneyed son of a Harvard professor — began to wonder what he was supposed to do with his valuables while he was out of town.

He decided to create a company that would store items for New York’s “fashionable inhabitants,” who wanted to, say, decamp to Europe for the summer.

Rather than worry about burglaries, Jenks suggested that the urban elite store their books, wills, jewelry, tea sets, and silver with him.

He opened a massive, marble building in lower Manhattan, complete with a thick steel vault. Inside, he offered 500 safe deposit boxes to customers.

To ensure the safety of the boxes, Jenks required two keys to unlock a box: one key for the customer and one key for his employees. Guards armed with muskets stood in front of the building at 146 Broadway through the night.

He called it the Safe Deposit Company of New York.

It was the first company of its kind — and as the Civil War broke out, demand soared. Bold-faced names like the Vanderbilts, the Guggenheims, the Roosevelts, and more began storing their valuables with Jenks. Hetty Green, the millionaire businesswoman, maintained a private vault so big that it could fit a desk inside of it.

It was such a success that copycat safe deposit box companies began proliferating across the US, with names like the Mercantile Safe Deposit Company and the Lincoln Safe Deposit Company.

While the first safe-deposit companies were stand-alone organizations, dedicated solely to safekeeping, major banks soon got involved. By the early 20th century, nearly every bank in America had a safe-deposit arm.

The Tricky Economics Of Safe Deposit Boxes

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

https://thehustle.co/the-quiet-disappearance-of-the-safe-deposit-box/

Why Is Inflation So High? Plus How Your Wallet Can Survive

Why Is Inflation So High? Plus How Your Wallet Can Survive

December 21, 2022 by Josh Dudick

In the past few months, Americans have seen a sharp increase in the price of many essential goods and services. With salaries staying the same, this inflationary trend has frustrated many people, leaving them concerned about the future.  The latest consumer price index (CPI) reports a 7.7% increase in inflation over the last year (a 40-year high). This inflation data shows that the average American family spends more each month to cover basic living expenses.

Which begs the question – why is inflation so high?

While there is no single factor that can fully explain this trend, there are a few key drivers that have contributed. Here are some of the culprits.

Too Much Money in The System

The COVID-19 pandemic necessitated a prolonged lockdown, keeping people inside their homes and businesses closed. While this helped curb the spread of the virus, it led to an overabundance of funds in the system.

People spent less, but cash was in surplus, driving inflation. America’s economic stimulus package was an additional influx of funds into the economy, further contributing to inflation. According to the Federal Reserve, Americans had extra savings of $2.3 trillion from 2020 to mid-2021 – that’s a lot.

All these got reinforced by shortages of everything from food to other household items, so people had less to buy. In the end, people started spending on whatever was left and, by so doing, bumping up the prices of these items.

Supply and Demand Imbalances

When there is more demand for a good than available supply, the price goes up. People are willing to pay more for goods when they are insufficient, racking up inflation figures.

At the height of the pandemic, when spending dropped and savings increased, the demand for goods and services decreased. But now that we have emerged from this crisis, people are more willing to spend, increasing demand.

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

https://investedwallet.com/why-is-inflation-so-high-plus-how-your-wallet-can-survive/ 

Ancient Rivers of Money

Ancient Rivers of Money

By Venkatesh Rao

This entry is part 1 of 14 in the series Psychohistory

Sometimes a single phrase will pop into my head and illuminate a murky idea for me. This happened a few days ago. The phrase was “ancient rivers of money” and suddenly it helped me understand the idea of inertia as it applies to business in a deeper way. Inertia in business comes from predictable cash flows. That’s not a particularly original thought, but you get to new insights once you start thinking about the age of a cash flow.  We think of cash-flow as a very present-moment kind of idea. It is money going in and out right now. But actually, major cash flow patterns are the oldest part of any business.

It is the very stability of the cash flow that allows a business to form around it. In fact, most cash flows are older than the businesses that grow around them. They emerge from older cash flows.

When you buy a sandwich at Subway, the few dollars that change hands are part of a very ancient river of money indeed. Through countless small and large course changes, the same river of money that once allowed some ancient Egyptian to buy some bread from his neighbor now allows you to buy a sandwich.

Buyers and sellers alike see markets as an illegible and turbulent churn of transaction opportunities. But really, they are landscapes carved out by great, ancient rivers of money and their tributaries. These rivers change course rarely. Cash flows are also among the most basic financial ideas. Only businesses make profits, but governments and non-profits form around cash flows too.

These ancient rivers carve out both a spatial and temporal landscape. Spatially, the flow metaphor suggests old, dried-up river beds, gorges and ravines, flood plains, ox-bow lakes, watersheds, and of course, the rivers themselves. This plays well with the idea of “segment.”

But markets also have a temporal dimension, based on which river of money you are talking about, and how long ago it last changed course.

If you think of markets that way, things look very different. Some rivers of money are very old and very stable. You can at most fight to displace others from prime positions along the banks. Others are new and unstable and may change course frequently, creating and destroying fortunes through their vagaries. Others may be maturing, with dams being built to stabilize them. People have always bought food and clothes. They are only now beginning to buy iPads. They are starting to not buy CDs.

Generalizing, you can even think of an average “age” of the market as a whole.  An interesting question to ask is whether early adopters as a group should be considered as living in a future market, or whether the mainstream should be thought of as living in the past. I prefer the latter model.

Organizations are like riverbank communities.

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

https://www.ribbonfarm.com/2010/11/05/ancient-rivers-of-money/