Cutting Out These 24 Expenses Will Save You Over $15,000 a Year
Cutting Out These 24 Expenses Will Save You Over $15,000 a Year
John Csiszar Sun, May 7, 2023
When it comes to living expenses, the truth is that most Americans subsist on a very thin margin, even if their earnings are solid. A recent survey from LendingClub and PYMTS revealed that about 51% of Americans who earn over $100,000, are living paycheck to paycheck.
The good news is that if you take a closer look at how you live, you'll likely find many areas where you can trim expenses and give yourself an extra buffer.
Cutting Out These 24 Expenses Will Save You Over $15,000 a Year
John Csiszar Sun, May 7, 2023
When it comes to living expenses, the truth is that most Americans subsist on a very thin margin, even if their earnings are solid. A recent survey from LendingClub and PYMTS revealed that about 51% of Americans who earn over $100,000, are living paycheck to paycheck.
The good news is that if you take a closer look at how you live, you'll likely find many areas where you can trim expenses and give yourself an extra buffer.
See what expenses you could cut from your budget, how you can save thousands of dollars in the process and how you can better invest the money instead.
1. Credit Card Interest
Monthly Savings: $64.47
Annual Savings: $773.61
Every month that you don't pay your full credit card balance you'll be charged interest. That's essentially money you're throwing away. The average American has a monthly credit card balance of $7,279, according to a recent report from LendingTree. With an average annual percentage rate of 19.07%, many Americans can save big on fees by getting rid of their credit card debt.
Let's assume you've built up the average amount of credit card debt and want to pay it off over the course of a year. By the end of that year, you'll have paid $773.61 in interest, according to Credit Karma's debt repayment calculator.
2. Life Insurance
Monthly Savings: $33
Annual Savings: $430
Life insurance is an essential benefit for many because it provides protection for spouses and heirs in case the primary breadwinner dies unexpectedly. This can be especially important if the family has a mortgage or other debts to pay off. The annual premium for a healthy 35-year-old male for a $500,000, 20-year term policy is about $430, according to CNN.
But if you have no dependents, you likely don't need life insurance and might consider canceling your policy. Another option is to look for a job with employer-paid life insurance.
3. Brokerage Commissions and Fees
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/cutting-24-expenses-save-over-162049715.html
The Limit Does Exist: Legal & Savings Bank Withdrawal Limits
The Limit Does Exist: Legal & Savings Bank Withdrawal Limits
Eric Reed Sun, May 7, 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.
The Limit Does Exist: Legal & Savings Bank Withdrawal Limits
Eric Reed Sun, May 7, 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.
If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Cashier/Teller Withdrawals
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/much-cash-withdraw-bank-140036657.html
Two Documents You Should Have for End-of-Life Planning
Two Documents You Should Have for End-of-Life Planning
04.08.2020 | Category: Understand how life insurance works
Talking about the type of care we want in our final days is something our culture tends to avoid, but a growing number of people believe that the value of such conversations far outweighs the discomfort.
As important as it is to talk about our end-of-life wishes, it’s just as important to create a legal record of those wishes. To ensure that your wishes are carried out, especially if you become physically or mentally incapacitated and unable to express those wishes, experts from both the health care and legal professions recommend you have two important documents in place:
Two Documents You Should Have for End-of-Life Planning
04.08.2020 | Category: Understand how life insurance works
Talking about the type of care we want in our final days is something our culture tends to avoid, but a growing number of people believe that the value of such conversations far outweighs the discomfort.
As important as it is to talk about our end-of-life wishes, it’s just as important to create a legal record of those wishes. To ensure that your wishes are carried out, especially if you become physically or mentally incapacitated and unable to express those wishes, experts from both the health care and legal professions recommend you have two important documents in place:
A living will
A durable power of attorney for health care
Retaining an attorney to create these documents is recommended to be sure they are prepared correctly to meet the requirements of your state. However, it is not always necessary, or legally required, to have an attorney create these documents.
Numerous organizations offer templates of both of these documents, including CaringInfo (a program of the National Hospice and Palliative Care Organization) and Aging with Dignity’s Five Wishes program. Five Wishes has documents available in 29 languages and meets the legal requirements in 44 states, and is widely used in the other six states with the completion of one additional step. If you use an online template, make sure that it’s specific to the state you live in, since requirements vary from state to state.
Here’s some information on what each document is for and why they’re so important.
Living Will
A living will, also known as an advance health care directive, is a legal document in which you give instructions regarding your preferences for medical care in the event you are unable to make decisions for yourself. Living wills provide guidance for doctors and caregivers in instances such as terminal illness, coma, late-stage dementia or end-of-life care.
Why you should have it: By planning ahead, you can get the medical care you want and avoid care you don’t want. A living will can relieve your loved ones and caregivers of having to make what could be agonizing decisions. It can also help minimize confusion or disagreement about the choices you would want people to make on your behalf.
A living will forces you to answer difficult questions about end-of-life care. You may want to consult your doctor about what to include in your living will. Medical situations and procedures that can be addressed in a living will include the following:
Instructions on tissue or organ donations
To continue reading, please go to the original article here:
3 Things To Sell When You’re Ready To Take Your Wealth to the Next Level
3 Things To Sell When You’re Ready To Take Your Wealth to the Next Level
Yaёl Bizouati-Kennedy Sat, May 6, 2023 If you’re financially stable and want to take your wealth to the next level, there is a rather easy way to go about it: Sell some of your most valuable goods. Some of these items might be even more valuable than anticipated, enabling you to convert the newly earned cash into investments — and ultimately generating more wealth.
“We often overlook the potential value of the items we’ve collected over the years, but what might seem like clutter to us could be a dream purchase for someone else,” said Andrew Latham, CFP and managing editor at Supermoney.com.
3 Things To Sell When You’re Ready To Take Your Wealth to the Next Level
Yaёl Bizouati-Kennedy Sat, May 6, 2023 If you’re financially stable and want to take your wealth to the next level, there is a rather easy way to go about it: Sell some of your most valuable goods. Some of these items might be even more valuable than anticipated, enabling you to convert the newly earned cash into investments — and ultimately generating more wealth.
“We often overlook the potential value of the items we’ve collected over the years, but what might seem like clutter to us could be a dream purchase for someone else,” said Andrew Latham, CFP and managing editor at Supermoney.com.
That luxury watch gathering dust in your drawer, the designer handbag you haven’t used in years or that vintage audio equipment stored away in the basement could be the key to unlocking a new world of financial opportunities, said Latham.
“By identifying and selling these high-value items, not only do you declutter your space, but you also create an opportunity to invest in your future and turn your once-forgotten possessions into long-lasting wealth,” added Latham.
Jewelry
“I have evaluated thousands of jewelry items and have helped many people turn what they thought was junk jewelry into considerable amounts of cash, said Matt Harris, certified pearl specialist and pearl jewelry designer at Matt Harris Designs.
Harris said that when he ran a consignment store, he came across a lot of people selling either inherited pieces of jewelry they never wear, or pieces — such as engagement rings — that former partners offered, as well as pearls.
“You’d be surprised at how many people have no idea what their jewelry is worth,” said Harris. “Take gold for instance: It is at almost an all-time high, today trading at $2,020 per ounce. Just over 20 years ago throughout 2002 it hovered in the $200s.”
In addition to gold, Harris noted that Burmese sapphires, red spinel, Columbian emeralds and many other gemstones have skyrocketed since the ’80s but the average jewelry owner has no idea what they have or what it could be worth.
Harris recommends going to a reputable consignment store, or to a local gemologist or gem dealer, who can be very valuable in helping turn these old collections into cash.
Take Our Poll: Would You Put All of Your Savings in an Apple Savings Account?
Handbags
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/3-things-sell-ready-wealth-110100084.html
10 Ways To Build Wealth Fast
10 Ways To Build Wealth Fast
John Csiszar Fri, May 5, 2023
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.
Ironically, the best way to build wealth "fast" is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.
10 Ways To Build Wealth Fast
John Csiszar Fri, May 5, 2023
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.
Ironically, the best way to build wealth "fast" is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.
Save
You can't begin any type of wealth-generation plan without having money to invest. As soon as you start drawing an income, make it your top priority to save as much money as you can. One strategy often recommended by advisors is to "pay yourself first," meaning put money in savings immediately when you receive your paycheck, even before you pay your bills. This type of "forced savings" will require you to trim your discretionary spending but will also result in rapidly growing wealth.
Buy an S&P 500 Index Fund
The S&P 500 index doesn't guarantee profits, but it's proven itself time and time again to be a tremendous generator of long-term wealth. In fact, most investors are surprised to learn that the "risky" stock market has never lost money over any 20-year rolling period. And yet, the long-term average return of the S&P 500 is north of 10%. This means the S&P 500 index has a tremendous risk/reward profile over the long run. Even legendary investor Warren Buffett, the "Oracle of Omaha" himself, has directed his trustee to keep 90% of his money in an S&P 500 index fund after he passes.
Buy Dividend-Paying Stocks
Dividend-paying stocks may seem like a slow and boring way to build wealth, but they are one of the best ways to tap into a solid and growing source of income, and capital gains as well. The so-called "Dividend Aristocrats" are large, well-known companies in the S&P 500 index, like Coca-Cola and McDonald's, that have raised their dividends for at least 25 years in a row. This means that those who bought these companies 25 years ago are earning huge effective yields on their original investment amount. Combined with the potential for capital gains, the Dividend Aristocrats can be a great way to build wealth.
Buy a Rental Property
One of the key ways to build wealth fast -- and over the long term -- is to earn passive income. And one of the best ways to generate passive income is to own one (or several) rental properties. With a well-managed rental property, you'll receive a steady stream of income every month, with little additional effort required on your part. While you'll have to find tenants to move in and will have to deal with occasional maintenance issues, your income will essentially be on auto pilot. Unlike your mortgage payment, your rents will continue to rise over time, meaning your tenants will be paying some or all of your mortgage while you watch your properties appreciate in value.
Housing Market 2023: Is a Double-Digit Drop in Prices Coming?
Keep Asking for Raises
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/10-ways-build-wealth-fast-172411469.html
Are You Ready For Your First Year Of Retirement?
Are You Ready For Your First Year Of Retirement?
These Are 5 Things You Might Not Expect — But Definitely Need To Prepare For
Amy Legate-Wolfe Thu, May 4, 2023
You prepare for retirement your whole life — maybe as far back as your teenage years and that first check. You put cash aside. You invest. You live within your means and when the time comes, you downsize. So are you really, truly ready to retire? That depends.
Even with decades of planning and saving, surprises are likely to come your way that first year of retirement. Before the unexpected hits, here are five strategies retirees, and those about to take the plunge, need to put in place.
Are You Ready For Your First Year Of Retirement?
These Are 5 Things You Might Not Expect — But Definitely Need To Prepare For
Amy Legate-Wolfe Thu, May 4, 2023
You prepare for retirement your whole life — maybe as far back as your teenage years and that first check. You put cash aside. You invest. You live within your means and when the time comes, you downsize. So are you really, truly ready to retire? That depends.
Even with decades of planning and saving, surprises are likely to come your way that first year of retirement. Before the unexpected hits, here are five strategies retirees, and those about to take the plunge, need to put in place.
The Adjustment Period
Even if you have a smart plan for retirement, there’s still an adjustment period where leaving the labor force means far less money coming in and more going out. And let’s face it, pre-retirement habits and assumptions can be difficult to change.
If money from government sources and investments represents the upside, then spending habits — with an emphasis on “habits” — are the other. And the two must exist in balance.
Look over your budget before retirement, not after. Where and what do you spend on? What’s your projected cash inflow? Which cuts make sense, especially if they don’t impact your quality of life?
Review everything from subscriptions you stopped using long ago to exorbitant rates for wireless and mobile phone usage. Such moves can bolster your savings cushion when you’re ready to move ahead.
Prioritize Your Expenses
Want to travel? It’s a delicious luxury but it’s incredibly expensive when you factor in food, lodging, flights and frequency of trips. Want to renovate your home or buy a seaside getaway? Interest rates on first and second mortgages these days are through the roof.
Want to stay healthy? Treadmills and gym memberships cost money — though certainly, prevention is a big bargain compared to a lengthy hospital stay.
Before you break open the coffers and live it up, get a sense of your “nice to haves” versus your “need to haves.” If visiting family you miss comes far ahead of a two-week trip to Paris as priorities go, allow your wallet to follow your heart.
Keep Adding To Your Savings
Once it’s time to retire, many folks throw the savings plan out the window of the cruise ship or dream home. That’s the wrong way to go. Saving not only offers a buffer but also a means to make even more aspirations possible.
To continue reading, please go to the original article here:
https://www.yahoo.com/finance/news/very-first-retirement-5-things-100000477.html
30 Money Moves That Could Set You Up for Life
30 Money Moves That Could Set You Up for Life
Gabrielle Olya Thu, May 4, 2023
Make Your Savings Very Hard To Get At
One of the keys to growing your savings is to keep the money in an interest-bearing account and don't touch it. Open a separate savings account at a bank you don't typically use. An internet bank can be good for this purpose since you won't be able to walk into a branch and take out the money.
Don't link your debit card to your savings account. When you want to deposit money, you can use mobile upload if available, mail in a check or go to a branch if it's not an internet-only bank.
30 Money Moves That Could Set You Up for Life
Gabrielle Olya Thu, May 4, 2023
Make Your Savings Very Hard To Get At
One of the keys to growing your savings is to keep the money in an interest-bearing account and don't touch it. Open a separate savings account at a bank you don't typically use. An internet bank can be good for this purpose since you won't be able to walk into a branch and take out the money.
Don't link your debit card to your savings account. When you want to deposit money, you can use mobile upload if available, mail in a check or go to a branch if it's not an internet-only bank.
Use Your Credit Card
This may seem like odd advice. After all, credit card debt is the biggest threat to financial security, right? Well, it can be. But credit card debt is different from credit card use. If you use your credit card for regular purchases and pay the balance off at the end of the month, it can actually help you save more.
First, you'll need a credit card that pays you cash back. Then, you'll need to use your card for groceries, gas and even monthly utility bills. And then -- this is the most important step -- you need to pay off your entire credit card balance before the due date. This way, you'll get cash back for what you've spent, but you won't pay any interest on your purchases. Now, the next most important step is to put the money you earned through cash back into your savings account. Don't let it sit there just to add up or to use it for next month's balance. Put it into savings.
Take Advantage of Credit Card Rewards
Some credit cards offer travel rewards and other perks in addition to or in lieu of cash back. If you have a travel rewards card, make sure you cash in on the rewards the next time you plan a trip to save on out-of-pocket costs.
Diversify Your Savings
You don't have to put all your money in a savings account. Diversifying your savings strategy to include a mix of savings accounts, CDs and money market accounts can ensure that you are earning interest while still being able to access funds if and when you need to.
Invest In Real Estate
If you own your home, you're already a real estate investor. But there are many other ways to make money from real estate. You can buy, fix and sell properties as they do on different fixer-upper shows on television. You could buy a multifamily property and earn rental income. Or you could invest in a real estate investment trust, or REIT, which sells shares of a portfolio of properties like shopping malls, apartment buildings and other properties.
Look At Where You Live
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/30-money-moves-could-set-190007732.html
7 Things You Must Do To Create a Plan for Your Money
7 Things You Must Do To Create a Plan for Your Money
Brought To You By JP Morgan Wealth Management
Do you need help with your finances but don’t know where to start? You could probably use a financial advisor, someone whose job is to help you draw up a financial plan and get you back on track.
A financial planner can assist with some or all of your money issues by helping you create a personalized plan for your situation. They can help you plan for retirement or college, offer guidance with saving or paying off debt, work with you to build an investment portfolio and more. You might choose a financial planner for a limited purpose or for expansive help with your complete financial life.
7 Things You Must Do To Create a Plan for Your Money
Brought To You By JP Morgan Wealth Management
Do you need help with your finances but don’t know where to start? You could probably use a financial advisor, someone whose job is to help you draw up a financial plan and get you back on track.
A financial planner can assist with some or all of your money issues by helping you create a personalized plan for your situation. They can help you plan for retirement or college, offer guidance with saving or paying off debt, work with you to build an investment portfolio and more. You might choose a financial planner for a limited purpose or for expansive help with your complete financial life.
Financial advisors’ services usually come at a cost, but if you need the help, it will be more than worth it. Plus, there are ways to get started with a financial planner without paying for the service.
Enrolling in J.P. Morgan Personal Advisors comes with no advisory fee for the first six months. You simply set up a free financial planning session, and an advisor will guide you through building a personalized financial plan and opening an investment account.
Taking your finances, risk tolerance, and time horizon into account, an advisor will match you to an expert-built portfolio and provide ongoing advice. As your financial goals change over time, your advisors will continue to be on hand to adjust your strategy. Also, J.P. Morgan’s team of advisors act as fiduciaries, so you can be confident that any advisor you work with has your best interest at heart.
If you’re considering hiring a financial planner, you’ll probably want to know exactly how you two will create a financial plan together.
7 Steps of Financial Planning
Once you’ve picked a financial planner, there are a few financial planning steps you’ll go through with your planner. Each planner might have similar or different steps, or they might perform these tasks in a different order. But in any case, here is a basic summary of how a financial plan is created.
1. Getting To Know Your Financial Planner
Let’s imagine that Brittany is your financial planner. The first meeting with Brittany might be similar to a first date. You’ll want to know her philosophy, investment approach and what steps she’ll take to help you meet your financial goals.
In your initial meeting with Brittany, ask to review her investment policy statement. The investment policy statement maps out how she will handle your money, her strategy and her work approach to help you meet your financial goals. Make sure to take a look at a sample financial plan as well, if available.
2. Asking Questions
Once you’ve gotten to know your planner, you’re ready for the next step: asking questions. Don’t be afraid to do your due diligence and ask your financial planner questions. She is working for you — as well as with your money — so dive in with these types of questions:
Can you please describe your educational background, experience and licenses?
What are your fees, and how are you compensated?
Are you a fiduciary, and will you put my financial interests ahead of your own?
What services do you offer as a financial planner?
What type of investments do you recommend and why?
What type of communication can I expect from you?
After synthesizing the information from your first meeting with Brittany, it’s time to proceed with the next steps of financial planning.
6 Financial Pros Share How They Would Invest $100,000
6 Financial Pros Share How They Would Invest $100,000
Jaime Catmull Thu, May 4, 2023
What would you do if you got a financial windfall of $100,000? In the current economy, it’s tricky to figure out the best way to make the most out of a large sum of money, so I posed that question to six finance and investing professionals to find out what they would do in that situation.
Here’s what they said.
6 Financial Pros Share How They Would Invest $100,000
Jaime Catmull Thu, May 4, 2023
What would you do if you got a financial windfall of $100,000? In the current economy, it’s tricky to figure out the best way to make the most out of a large sum of money, so I posed that question to six finance and investing professionals to find out what they would do in that situation.
Here’s what they said.
Wendy Liebowitz, CFP, Education Consultant at Fidelity Investments
There are four areas I consider when it comes to any investment strategy: debt, emergency account, protection and growth.
First, pay off any high interest-bearing debt, such as a credit card with a high interest rate. Second, save at least three to six months’ worth of essential expenses, and keep those savings in a checking, savings or money market account so you can access them easily should you ever need to.
Third, depending on your risk tolerance and time horizon, consider protecting your principal, or the amount you invest, through methods such as a fixed-rate investment, which tends to be less volatile.
If retired, you may also want to consider protecting the amount of income you’ll need in retirement through guaranteed sources of income, such as Social Security, pensions and/or income annuities.
Once these three areas are addressed, allocate the remainder of the $100,000 to growth in a well-diversified investment strategy of stocks, bonds and cash, which can be done through individual securities, mutual funds, ETFs or fee-based managed solutions, just to name a few options. Following these four steps should help you balance risk and reward and put you in a better place financially to achieve your long-term goals.
Amy Richardson, CFP, Director With Schwab Intelligent Portfolios Premium
When exploring ways to invest a financial windfall of this kind, the first step should be to zero in on your goals. If you’re investing for retirement, a good place to start could be maxing out your 401(k), IRA or other retirement savings vehicles. If you’re looking to invest for future education costs, you may consider opening a 529 college savings plan.
Lastly, if you have a wider range of financial goals in mind — anything from building wealth to maximizing savings to paying down debt — a brokerage account may be a good fit as it allows you to invest in a wide range of assets, from stocks and bonds to mutual funds, ETFs and more.
Which types of investments you choose will depend on your goals and how much time you have to reach them. If you have a longer time to invest and you’re looking to maximize the growth of your investment, you may want to invest more aggressively by holding more stocks.
More conservative investors typically put more of their portfolio into bonds. Whether you are a more conservative or more aggressive investor, it’s important not to put all of your eggs in one basket and instead focus on building a diversified portfolio. It’s also important to avoid trying to time the markets, which is nearly impossible. The most important thing is to maximize the time your money has in the market to grow.
Jilliene Helman, CEO of RealtyMogul
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/6-financial-pros-share-invest-130015593.html
The War On Cash Poses An Existential Threat To Our Financial Independence
The War On Cash Poses An Existential Threat To Our Financial Independence
Allister Heath Wed, May 3, 2023
Shops that refuse cash? Councils that require maddening parking apps? Tradesmen who demand bank transfers? I’m part of the problem, dear reader. The virtual penny finally dropped when I flew to the Middle East recently without first bothering to visit a bureau de change, or even to withdraw local currency from an ATM. Every shop, taxi and restaurant accepted contactless payments; there was no need to fumble through my wallet trying to decipher unfamiliar notes. My smartphone’s mobile payment service was sufficient, a physical credit card largely unnecessary.
The War On Cash Poses An Existential Threat To Our Financial Independence
Allister Heath Wed, May 3, 2023
Shops that refuse cash? Councils that require maddening parking apps? Tradesmen who demand bank transfers? I’m part of the problem, dear reader. The virtual penny finally dropped when I flew to the Middle East recently without first bothering to visit a bureau de change, or even to withdraw local currency from an ATM. Every shop, taxi and restaurant accepted contactless payments; there was no need to fumble through my wallet trying to decipher unfamiliar notes. My smartphone’s mobile payment service was sufficient, a physical credit card largely unnecessary.
Next time, I will also make sure to take foreign currency. The global war on cash made my life easier on this occasion, but far from paving the way towards the liberating, borderless techno-utopia portrayed by a naive, self-interested alliance of Silicon Valley and Wall Street types, it is fast turning into the stuff of nightmares.
A cashless society is discriminatory, facilitates crime and hands dangerous powers to busybody officials, technocrats and woke pseudo-capitalists. Rishi Sunak is cracking down on fraud, launching a new squad with 500 prosecutors, but this will achieve little unless the Government finally grasps the need to protect cash from extinction.
A cashless economy compels everyone to carry a smartphone all the time, and to have access to at least one payment card. It requires the use of multiple apps, and substantial levels of technological literacy. This discriminates against the elderly, and anybody who finds technology difficult. It is a disaster for those on the margins of society, without a bank account or who lack a good credit score.
Many older voters are incensed at the way their choices have been curtailed. The hit is often two-fold. Take the compulsory shift towards electric cars: it is controversial in and of itself, and of course charge points, unlike petrol stations, don’t accept cash.
One of the great selling points of the cashless world was that it would reduce robberies and cut tax evasion. It has achieved the latter, as evidenced by a surprisingly large rise in the tax to GDP ratio, but it has also triggered an epidemic of fraud, with one in 15 people victimised annually by scams such as phishing or dodgy emails.
Many of us now log into bank accounts by showing our faces, presenting our fingerprints or through voice recognition. But impersonation is getting easier: artificial intelligence (AI) can clone our appearance and produce deepfakes – videos that look and sound exactly like us – to fool automated, or even human, identification protocols. Digitisation can be greatly fragilising.
Imagine the power of a hacker, turbocharged by AI, sponsored by a crime syndicate, a hostile state or terrorist organisation who was able to delete bank account records, rub out transactions or plant incriminating, fake records of payments? Our society is a mere step away from chaos.
To continue reading, please go to the original article here:
https://www.yahoo.com/news/war-cash-poses-existential-threat-200000224.html
Suze Orman Shares Advice for Paying Down Your Mortgage Faster
Suze Orman Shares Advice for Paying Down Your Mortgage Faster
Personal finance guru Suze Orman has a cornucopia of helpful advice. Among her tips, she suggests paying off your mortgage by the time you retire. Whether you have a 15- or 30-year mortgage, here’s Orman’s advice for paying down your mortgage faster.
Why Should You Pay Off Your Mortgage as Quickly as Possible?
Putting extra money toward your mortgage might seem like a financial hardship. After all, your mortgage loan is set up to pay out within 15 or 30 years — all you have to do is make the required payments in full and on time. Plus, isn’t it better to invest or save any extra money you have in your budget?
Suze Orman Shares Advice for Paying Down Your Mortgage Faster
Personal finance guru Suze Orman has a cornucopia of helpful advice. Among her tips, she suggests paying off your mortgage by the time you retire. Whether you have a 15- or 30-year mortgage, here’s Orman’s advice for paying down your mortgage faster.
Why Should You Pay Off Your Mortgage as Quickly as Possible?
Putting extra money toward your mortgage might seem like a financial hardship. After all, your mortgage loan is set up to pay out within 15 or 30 years — all you have to do is make the required payments in full and on time. Plus, isn’t it better to invest or save any extra money you have in your budget?
In certain instances, Orman said, the answer is no. “Don’t you want to feel safe in these seriously uncertain times — uncertain times about inflation, uncertain times about what the markets are doing, uncertain times about everything?” Orman asked in her February 2022 podcast. “The best way you can put certainty in your life is to own your home outright by the time you retire.”
Orman said she doesn’t recommend this strategy if you’re 35 and know you’re going to move in three or four years. But she does believe that if you are older and your goal is to gain financial security and safety, paying off your mortgage as quickly as possible is a wise idea.
“Paying more on your mortgage could help you earn equity faster, reduce the total interest you’ll pay over the life of the loan and, ultimately, allow you to repay your mortgage more quickly,” said Felton Ellington, community lending manager at Chase. “That’s because making payments directly to the principal reduces the total amount of interest paid because interest is calculated as a percentage of the principal. Typically, the lower the principal, the less interest owed.”
Orman’s Advice for Paying Down Your Mortgage Faster
Here’s what you need to do to make your mortgage payments history, according to Orman.
Consider the Loan’s Interest Rate
The lower your loan’s interest rate, the faster you can potentially pay it off. However, if you’re thinking about refinancing to get a lower rate, Orman said to proceed with caution.
“The big mistake is that after spending years paying down their existing 30-year mortgage, people then refinance into a new 30-year mortgage,” Orman once wrote on her blog. “This is so very wrong. … My rule of refinancing is that you are to never extend your total payback period past 30 years.”
Orman explained that if you have a 30-year mortgage and you’ve already made payments for 14 years, you should make it a point to get a refinanced mortgage paid off in 16 years. Otherwise, if you refinance for another 30 years, you’ll end up paying for your mortgage with interest for 44 years in total.
To continue reading, please go to the original article here: