How I Set Up My Will — And What I Wish I’d Done Differently

By Jessica Sillers — Jan 10, 2023

Misconceptions About Making a Will

How We Set Up Our Will

As a freelance finance writer, I’ve published hundreds of articles full of tips for families to make informed choices about managing money. I’ve covered realistic budget plans and ideas to make the most of credit cards. I’ve written extensively about planning financially for the future, including buying life insurance, saving for retirement and preparing a will. I say all this not to brag, but so you know why I feel self-conscious admitting this next part.

The Million-Dollar Question

By Amy Legate-Wolfe   Jan. 09, 2023

Dave Ramsey says 79% of US millionaires didn't receive inheritance from their family — so how did they make the big bucks?  Riches don’t so much lie in getting a big gift but rather applying one’s career gifts.

Want to know what it takes to be a millionaire? Well, Ramsey Solutions went straight to the source and surveyed 10,000 of them. And some of the findings were surprising. Like: eight out of 10 invested in their company’s 401(k) plan.

Experts Say This Is A Key Sign You Have An Unhealthy Relationship With Money

By Natalia Lusinski Sep. 17, 2022

When it comes to money and budgeting, it’s often easier said than done. You may have the best of intentions — you’ll eat out less this month and put the money into your savings account instead. But then life happens. Just like working through any other life, fitness, or wellness issue, a little introspection is often the ticket. If you want to get your finances back in order, a financial psychologist or money mindset coach can help. It all starts with getting your head in the right place.

You Have “Enough” Money When You Can Afford 2 Needs

By Darius Foroux

Do you have “enough” money? A study found that the ideal income for a typical American family to have “emotional well-being” is around $60,000 to $75,000 annually.1

In an interview, Warren Buffett said he would be “very happy” with $100,000 a year, despite his billionaire net worth.2 Meanwhile, John Bogle, the pioneer of modern index investing and founder of the Vanguard Index Fund, says “enough” is “one dollar more than you need.” Which I think is also a good definition.   The truth is that “enough” depends on our personal circumstances.

7 Things Rich People Never Do

By Darius Foroux

I’ve adopted the mental model of Charlie Munger when it comes to living a good life. It’s useful to gain insights into the thought process of certain rich people.  Munger was trained as a lawyer, got briefly into real estate development, and built his fortune together with Warren Buffett in Berkshire Hathaway. Munger says:

“My system in life is to figure out what’s really stupid and then avoid it. It doesn’t make me popular, but it prevents a lot of trouble.”

It’s attractive to talk about all the things rich people do and how you can build wealth. A large part of my work focuses on the right actions we should undertake to get wealthy.

To Build Inevitable Wealth, Simply Avoid Financial Ruin

By Darius Foroux

In 1942, the world was at war. In December of the previous year, the United States entered WWII when Japan attacked Pearl Harbor.  By that time, the US got into a war that started in 1939. While Americans were quick to adjust back at home, by turning factories into manufacturers of weaponry, the war itself didn’t play out well at all.   America was struggling in the Pacific. It was a rough first year with many casualties. Some people started to lose faith.

That was the year an 11-year-old boy made his first stock purchase. He bought six shares of Cities Service, an energy company, for $38 per share. He bought three shares for himself and three shares for his sister, Doris Buffett.  The boy was of course Warren Buffett, the greatest investor of all time.

How Do People Become Wealthy? 2 Case Studies

By Darius Foroux

How do people become wealthy? I was always interested in that question because you can learn from other people’s success.   But I don’t want to look at billionaires and no one else. I’m also interested in how “normal” people build wealth.    You know, people who live in your city. Why? If anyone from your city can get rich, you can too.

Here’s an idea: Find someone in your network who you want to learn from. It doesn’t necessarily have to be a wealthy person. It could be someone who’s loved in your community.  Get close to them and simply observe. Look at what they do and listen to what they say. I’ve done that as well. I wrote about what I learned in an article. It’s really a good way to learn.

Impatience: The Pitfall of Every Ambitious Person

By Darius Foroux

People could talk to me about impatience 24/7 but I would still not act patiently. That’s because I had never seen the power of patience in my own life until a few years ago. At some point, I decided to do one thing for a long time without thinking about the results.  I started to write every day. I published a book and articles. Nothing happened for a while.   But after several months, I saw some success. Then, some more. And over the years, things kept adding up.

If you’re currently working hard without seeing the results you want, remember to stay focused on the path.  Remember that overnight success doesn’t exist. We have to remind ourselves of that whenever we’re impatient. It happens to every ambitious person.

Money Fallacy #1: The Checks Will Not Always Come

By Darius Foroux

In the world of behavioral science and finance, there’s a concept called “overextrapolation” or “extrapolation bias” which refers to the assumption that past returns equal returns.  We also tend to make that same mistake with our income.  A lot of people assume their current income level will move in the same direction. If they are earning more every year, they think they will keep earning more.  And if they are earning less, they anxiously assume that trend will keep going down.

Both are wrong. A person who earns well today can’t assume the checks will keep coming in (think of all the people who enjoyed 5 minutes of fame).  In my latest article, I share how you can avoid this money fallacy.

Wise & Wealthy: Pretending You’re Fine And Managing Emotions To Build Wealth

Wise

Too often, ambitious and hard-working people have an urge to pretend that everything is fine.

The house might be burning down, and they’ll say, “It’s fine!” Your house is on fire! How can it be fine?!

Sometimes, we need to admit things are not fine. In his book, Get Out of Your Own Way, the psychiatrist Mark Goulston writes:

“Admitting to yourself that you are upset or in pain can make you feel exposed. You fear that acknowledging a bad feeling gives it more power. The pain might get worse. You might not be able to tolerate it.”