10 Genius Things Dave Ramsey Says To Do With Your Money
10 Genius Things Dave Ramsey Says To Do With Your Money
Andrew Lisa Mon, July 10, 2023
Investors starting to pivot into more growth-oriented ETFs as Fed slows rate hikes: Strategist Businessman and a bestselling author. He’s also a self-made man who started with nothing and built a seven-figure net worth and a $250,000 annual income by age 26.
Now in his early 60s, he has spent many of the years between getting even richer by helping other people build wealth of their own. Here’s a look at some of the choicest wisdom and most sage advice that Dave Ramsey has doled out along the way to his legions of loyal followers.
10 Genius Things Dave Ramsey Says To Do With Your Money
Andrew Lisa Mon, July 10, 2023
Investors starting to pivot into more growth-oriented ETFs as Fed slows rate hikes: Strategist Businessman and a bestselling author. He’s also a self-made man who started with nothing and built a seven-figure net worth and a $250,000 annual income by age 26.
Now in his early 60s, he has spent many of the years between getting even richer by helping other people build wealth of their own. Here’s a look at some of the choicest wisdom and most sage advice that Dave Ramsey has doled out along the way to his legions of loyal followers.
Eliminate Debt Before You Invest
The No. 1 rule of the Ramsey investing philosophy is not to invest a dime — at least not until you eliminate all of your toxic debt, which he considers to be pretty much everything but your mortgage. Ramsey insists that you can’t build wealth when your primary wealth-building tool — your income — is tied up in monthly finance charges.
Harness the Power of the Snowball Method
Eliminating debt is easy to talk about but hard to do, which is why Ramsey is a longtime advocate of the so-called snowball method. This debt-reduction strategy requires you to attack your debts in order of smallest to largest, allowing you to chalk up quick wins that close outstanding accounts while boosting your confidence along the way.
Once it’s time to confront your truly scary debts, you’ll have momentum on your side — plus, you’ll be able to concentrate only on them now that your smaller debts are no longer nipping at your heels.
Build an Emergency Fund Before You Build Wealth
The first half of Ramsey’s top investing rule is to get out of debt. The second is to fully fund your emergency savings before you try to grow your money on the market. Eliminating debt puts you on solid financial ground; but, without enough cash in the bank to cover three to six months’ worth of expenses, you’re just one emergency away from being forced to tap into your retirement account.
Give 15% of Every Paycheck to Your Future Self
Once you’re free of debt and sitting on enough savings to survive at least a quarter of a year, Ramsey says the most important thing you can do with your paycheck is to save 15% of it — each and every pay period — in a tax-advantaged account. The best option is usually a 401(k) because every dollar from an employer match is free money, and free money is always a good thing. But if that’s not an option, a pre-tax IRA or after-tax Roth IRA are the next-best things.
Keeping Up With the Joneses Is an Unwinnable Game — Don’t Play
Sometimes the most important thing isn’t what you do with your money, but what you don’t do.
In “The Total Money Makeover: A Proven Plan for Financial Fitness,” Ramsey wrote, “We buy things we don’t need with money we don’t have to impress people we don’t like.”
In today’s world, social media influencers literally bank on your willingness to part with your cash to show off for people you don’t even know, much less like. Frivolous spending is the bane of wealth creation; remember, every dollar you wear is one you don’t save.
Utilize Money-Saving Technology
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/10-genius-things-dave-ramsey-120115148.html
How to Have More Money
How to Have More Money
Written by Jerrold Mundis | Published: 13 February 2012 – Updated: 18 November 2018
You can have more money. And you can have it — get it — without turning your life upside down or driving yourself nuts. Seriously. I got it that way, quietly, simply, and still am. You can, too. Maybe only a modest amount more, maybe a lot more. I don't know. But I do know that you can have more. I'm not doing anything so far as concept and technique go that you can't either. I just work the simple little four-point program that follows. You're welcome to it.
Here's what I do — and don't do. Never incur new unsecured debt
How to Have More Money
Written by Jerrold Mundis | Published: 13 February 2012 – Updated: 18 November 2018
You can have more money. And you can have it — get it — without turning your life upside down or driving yourself nuts. Seriously. I got it that way, quietly, simply, and still am. You can, too. Maybe only a modest amount more, maybe a lot more. I don't know. But I do know that you can have more. I'm not doing anything so far as concept and technique go that you can't either. I just work the simple little four-point program that follows. You're welcome to it.
Here's what I do — and don't do. Never incur new unsecured debt
I don't debt and haven't for 28 years now.
I know: using debt as a verb is unlovely. But it helps to distinguish that act from other uses of money, to be clear about what is actually being done — not spending, buying, enjoying, but: going into debt.
Readers of Get Rich Slowly and other personal finance blogs almost certainly know that using unsecured credit is a bad idea. But I'll tell you: It's more than a bad idea. It's a catastrophe. If any single thing can crush, break, and poison a life, kill anything of value or pleasure in it, it's unsecured debt, the sustained and mounting pressure of it over months, years, and even decades.
In his play A Doll's House, Henrik Ibsen wrote more than 130 years ago, “There can be no freedom or beauty about a home life that depends on borrowing or debt.”
True. I've never seen anyone for whom it isn't.
By the time I bottomed out on debt myself, way back in 1984, my marriage was over, my books were out of print, and my life shattered. I was waking up every morning with ground-glass in my stomach thinking, “Oh God, there's another bill coming in!” without any idea how I would ever be able to pay it. I was living in near constant pain and despair.
I was $113,000 in unsecured debt then (in today's dollars), had expenses of $3,000 a month and a guaranteed income of only $350 a month. It was clear, finally — made brutally clear to me by the misery, the anguish even — that this could not go on. So I stopped debting, cold turkey. Because I had to. Because I knew there was no other hope for me.
From that day in March of 1984 on, I did everything and anything I had to in order not to go one single dollar deeper into unsecured debt:
I sold things I owned.
I gave up my apartment and moved in with a friend.
I cut expenses to the bone, then cut into the bone.
I said yes not only to whatever kind of new literary or teaching work I could find, no matter how little it paid, but to any work.
Slowly, slowly, things began to get better.
It was out of that bottom and my recovery from it, out of not-debting, eventually paying off all that unsecured debt, and becoming free that I wrote my first book on personal money, How to Get Out of Debt, Stay Out of Debt, and Live Prosperously. It was the first book ever on that subject, to my best knowledge, and it's been in continuous print since 1988 (updated and expanded in 2003).
Now your circumstances may not be anywhere near as dire as mine were (at least I hope they aren't), but the fact remains: You cannot get out of debt by going deeper into it.
Nor will you be able to bring more money into your life — at least permanently, steadily — until you stop incurring any new unsecured debt. At best, that kind of debt will just continue to siphon money out of your life, relentlessly, and will be a nearly impenetrable barrier toward bringing more of it in. More that's yours to keep
So unless you can claim that you genuinely live free of any amount — any amount — for, say, at least 40 weeks out of every year (an only partly arbitrary number) . . . stop debting. Right now.
Understand that all economies are personal
To continue reading, please go to the original article here:
10 Enjoyable Experiences Ruined by Wealthy People
10 Enjoyable Experiences Ruined by Wealthy People
July 8, 2023 by Claire Conway
Throughout history, the actions of the wealthy have often had a profound impact on society, both positive and negative. While many wealthy individuals and corporations have used their resources to benefit society, others have contributed to the degradation of systems and resources that should benefit everyone.
From the exploitation of natural resources and the rising cost of education to the influence of money in politics and the lack of affordable housing, the actions of the rich have had far-reaching consequences.
10 Enjoyable Experiences Ruined by Wealthy People
July 8, 2023 by Claire Conway
Throughout history, the actions of the wealthy have often had a profound impact on society, both positive and negative. While many wealthy individuals and corporations have used their resources to benefit society, others have contributed to the degradation of systems and resources that should benefit everyone.
From the exploitation of natural resources and the rising cost of education to the influence of money in politics and the lack of affordable housing, the actions of the rich have had far-reaching consequences.
1. Affordable Housing
Rich people buying up multiple properties as investments and leaving them empty or using them as vacation homes drives up the price of housing for everyone else. The lack of affordable housing is a major issue in many cities around the world, and the actions of wealthy property owners only exacerbate the problem.
2. Natural Resources
The extraction and exploitation of natural resources like oil, gas, and minerals have often been driven by wealthy corporations and individuals seeking to maximize profits. This has led to environmental destruction and exploitation of indigenous communities, as well as the exacerbation of climate change.
3. Art and Cultural Heritage
Wealthy collectors and institutions have been known to purchase priceless works of art and artifacts from around the world, only to keep them locked away in private collections or museums inaccessible to the public. This deprives people of the opportunity to appreciate and learn from these cultural treasures.
4. Politics
The influence of money in politics has long been a contentious issue. Wealthy individuals and corporations can donate large sums of money to political campaigns and lobbying efforts, giving them outsized influence over the decision-making process and leading to policies that often favor the wealthy at the expense of the rest of society.
5. Public Transportation
To continue reading, please go to the original article here:
https://investedwallet.com/wealthy-people-ruined-it-all/#more-36552
It Was Always My Choice to Make
It Was Always My Choice to Make
A ship at sea. Date: January 14, 2018 Author: Live Your Wage
I’m in the bowels of a large ocean liner steaming across the open sea. My heart is pounding and my arms ache. I’ve been shoveling coal from giant reservoirs into the furnace. Me and dozens of workers are in a giant boiler room and have been shoveling non-stop for 10 hours. (1)
The burning coal provides the steam that turns the 8 giant 30-foot pistons just behind our massive boiler room. The pistons in turn rotate the two enormous propellers just aft of the ship. The more coal, the more steam. The more steam, the more pressure to turn the pistons and apply power to the propellers – and the faster we get to our destination.
It Was Always My Choice to Make
A ship at sea. Date: January 14, 2018 Author: Live Your Wage
I’m in the bowels of a large ocean liner steaming across the open sea. My heart is pounding and my arms ache. I’ve been shoveling coal from giant reservoirs into the furnace. Me and dozens of workers are in a giant boiler room and have been shoveling non-stop for 10 hours. (1)
The burning coal provides the steam that turns the 8 giant 30-foot pistons just behind our massive boiler room. The pistons in turn rotate the two enormous propellers just aft of the ship. The more coal, the more steam. The more steam, the more pressure to turn the pistons and apply power to the propellers – and the faster we get to our destination.
But I don’t know where our destination is? The captain from his perch in the pilot house has voiced on more than one occasion that the destination is a tropical island of unbelievable beauty. The passengers have all paid good money to visit this place.
And to stay on schedule the ship must travel as fast as possible. Requests for more coal and more steam are a common refrain from the pilot house.
So I dig and shovel. Day and night. (2)
Finally the ship arrives. Calls for more coal cease. I can feel the ship slowing as we come into port. I hear the call for passengers to disembark.
But I am not offered that option. I am not a passenger.
My orders are to transfer more coal from the main depot in another part of the ship to the large reservoirs in the boiler room to make ready for the next part of the journey.
The task takes most of the day. I never glimpse a window. I never get a peek at the glorious island just outside, let alone set foot in the soft sands.
In fact, the scenery for me is no different here than when we were in the middle of the ocean or even back at our original port. I’d be hard pressed to prove that any change in location had occurred at all.
Abruptly I hear the captain call for engine preparations as the passengers begin returning to the ship. We’ll be leaving port in a matter of minutes. That’s when two very powerful revelations erupt within me.
First, if I never get to see or experience the destination, then the destination doesn’t actually matter.
Sure, it matters to the passengers who are paying good money to get there, and those wages trickle down into my salary, which I value greatly. But does the invisible destination impact or change me in any way? Would it be any different if the destination was a polluted backwater with overgrown brush and rocky beaches?
If you never see the destination, the destination loses all meaning.
The fact that the destination is a wonderful tropical island is just a means of getting passengers to pay money to board the ship. To me, the destination no longer matters. Just the money.
The second revelation is I realize what moves the ship.
To continue reading, please go to the original article here:
Average American Inheritance, By Wealth Level
Average American Inheritance, By Wealth Level
Eric Reed Fri, July 7, 2023
People inherit less than you might expect. In fact, most people think they’ll inherit far more than they really will.
If you do inherit money, it most likely won’t be subject to federal estate taxes. In 2023, those apply only to estates worth more than $12.92 million. But very few households have that level of wealth and most people inherit nothing at all. Here’s what the inheritance landscape looks like, according to the Federal Reserve’s most recent Survey of Consumer Finances from 2016 to 2019. If you need help with your estate plan or have received an inheritance, consider working with a financial advisor.
Average American Inheritance, By Wealth Level
Eric Reed Fri, July 7, 2023
People inherit less than you might expect. In fact, most people think they’ll inherit far more than they really will.
If you do inherit money, it most likely won’t be subject to federal estate taxes. In 2023, those apply only to estates worth more than $12.92 million. But very few households have that level of wealth and most people inherit nothing at all. Here’s what the inheritance landscape looks like, according to the Federal Reserve’s most recent Survey of Consumer Finances from 2016 to 2019. If you need help with your estate plan or have received an inheritance, consider working with a financial advisor.
Why the Average Inheritance is Misleading
What Is the Average Inheritance?
On average, American households inherit $46,200, according to the Federal Reserve data. But this figure is inflated by top-tier wealth and belies the fact that many households inherit no money at all.
Of those that do receive a bequest, most receive a small fraction of the average. The top 1% and 10% of households by wealth receive so much that their estates pull the average up. This creates the impression that many, if not most, households receive a comfortable nest egg. Very few actually do.
While less than a third of all households inherit any money, between 70% and 80% of households receive no inheritance at all.
Average Inheritance By Wealth Level
What Is the Average Inheritance?
A consitent reality with inheritance is that almost all households who receive an inheritance expect more than they get. This may have to do with the prominence of estate taxes in the national debate, which creates the impression that inheritance and estates are a matter for ordinary Americans. Here’s a look at how much households with varying levels of wealth inherit.
Top 1% Average inheritance: $719,000 Expected inheritance: $941,100
Measured by wealth, the top 1% of households receive overwhelmingly more than any other group measured. This is what causes such dramatically skewed data when it comes to measuring averages. This group receives more than four times as much as the next wealthiest cohort.
Next 9% Average inheritance: $174,200 Expected inheritance: $266,600
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/average-american-inheritance-wealth-level-130120356.html
End-of-Life Planning for Your Home
End-of-Life Planning for Your Home
Alexis Bennett
Ever thought about what will happen to your home after you shuffle off this mortal coil? Sounds a bit dark, right? But let’s face it, planning for the end of life isn’t just about wills and funeral arrangements. It involves a lot more, including what’s going to happen to your beloved abode. Whether you’re living in a classic mid-century, a cute little bungalow, or a chic apartment, it’s essential to include your home in your end-of-life planning. And that’s what we’re going to discuss today. Sit tight, because this might just be one of the most thought-provoking, life-changing articles you’ll read in a while.
End-of-Life Planning for Your Home
Alexis Bennett
Ever thought about what will happen to your home after you shuffle off this mortal coil? Sounds a bit dark, right? But let’s face it, planning for the end of life isn’t just about wills and funeral arrangements. It involves a lot more, including what’s going to happen to your beloved abode. Whether you’re living in a classic mid-century, a cute little bungalow, or a chic apartment, it’s essential to include your home in your end-of-life planning. And that’s what we’re going to discuss today. Sit tight, because this might just be one of the most thought-provoking, life-changing articles you’ll read in a while.
Why Should I Include My Home In End-of-Life Planning?
The first thing you may be asking is “Why should I care for planning the end of life of my home?” We all have at least a baseline understanding of the effects a loved one’s passing can have on the entire family. Studies have found the death of a family member can seriously impact the remaining members, especially when it comes to dealing with what’s been physically left behind.
Let’s look at a well-known example. Remember Aretha Franklin, known as the Queen of Soul? She wasn’t just a singer and songwriter but also an influential civil rights activist. Her vibrant career spanned many decades, enchanting the world with her soulful music.
But here’s the kicker: when Aretha passed away in 2018, she left behind a valuable estate but no will or trust to guide its distribution. Her family was left in a whirlwind of legal and financial chaos, along with the emotional pain of their loss. What a mess.
By including your home in end-of-life planning, you’re not just checking off another box on your to-do list. It’s more than that. It’s a gesture of love and kindness towards those who will mourn your loss. By taking these steps, you can ease their legal and financial burdens and prevent any added stress during an already tough time. Plus, it ensures that your wishes for your home are respected, offering a sense of peace to everyone involved.
What we really should be asking ourselves is “Why wouldn’t we include our homes in our end-of-life plans?” It seems like a no-brainer when you look at it like that. But what’s involved in considering your home and the things in it after you’re no longer here to care for them?
Legally Prepare Your Home
To continue reading, please go to the original article here:
https://todayshomeowner.com/home-finances/guides/end-of-life-planning-for-your-home/
Lending Money To Family: 10 Pieces of Advice for Setting Boundaries
Lending Money To Family: 10 Pieces of Advice for Setting Boundaries
June 27, 2023 by Saad Muzaffar
Hey there, moneybags! It’s time to get your financial act together and be mindful of your own situation. If your family hits you up for a loan, how do you set effective boundaries with them? After someone asked for advice, I grabbed the ten best tips from the discussion to help with the situation.
1. Know Thyself Financially
Consider letting the person know clearly if you cannot lend money. However, remember that you are not obligated to lend money, and it is okay to prioritize your own financial well-being.
Lending Money To Family: 10 Pieces of Advice for Setting Boundaries
June 27, 2023 by Saad Muzaffar
Hey there, moneybags! It’s time to get your financial act together and be mindful of your own situation. If your family hits you up for a loan, how do you set effective boundaries with them? After someone asked for advice, I grabbed the ten best tips from the discussion to help with the situation.
1. Know Thyself Financially
Consider letting the person know clearly if you cannot lend money. However, remember that you are not obligated to lend money, and it is okay to prioritize your own financial well-being.
You can always be transparent by admitting destitution. Someone rightly mentioned that people are less likely to ask a favor of you if you yourself are in a pickle.
2. Take Care of Your Heart
Many people discussed how lending money caused extreme distress or even depression. One user recalled being severely depressed when their relatives did not return the favor. Remember to view your time and energy as finite resources.
3. When in Doubt, Fib it Out!
Remember that a little white lie can go a long way if you’re in a real pinch. As someone suggested, tell them you’d help if you could, but unfortunately, you’re currently living like a pauper.
So, technically, you are just being honest about not having a surplus after you’ve allocated your finances to your primary areas of expenditure.
4. Set a One-Time Gift Amount
Consider setting a one-time gift amount with the understanding that they can never ask for money again. Now, remember that you have to be strict with this boundary.
As one person mentioned, if you have lent them money despite their continued violation of your boundary, separate your feelings from the matter and put it to a stop.
5. Don’t Mingle Love and Loans
To continue reading, please go to the original article here:
https://investedwallet.com/lending-money-to-family-members-advice-boundaries-set/
One of the Toughest Things to Master for Your Financial Health
One of the Toughest Things to Master for Your Financial Health
by Todd Kunsman Financial Health
When it comes to your life, you want to stay physically and mentally healthy. And this also applies to your personal finances, which is commonly called your financial health.
While your physical and mental health is far superior to your financial health, it’s still crucial to work on this too. And as I know and you may too, finances can cause some serious stress. That financial stress can then put a toll on your body, mind, and relationships. Yet, when it comes to your personal finances and financial well-being there is one area that is critical to master: self-control. The challenge is, it might be the toughest thing to be consistent with throughout your lifetime.
One of the Toughest Things to Master for Your Financial Health
by Todd Kunsman Financial Health
When it comes to your life, you want to stay physically and mentally healthy. And this also applies to your personal finances, which is commonly called your financial health.
While your physical and mental health is far superior to your financial health, it’s still crucial to work on this too. And as I know and you may too, finances can cause some serious stress. That financial stress can then put a toll on your body, mind, and relationships. Yet, when it comes to your personal finances and financial well-being there is one area that is critical to master: self-control. The challenge is, it might be the toughest thing to be consistent with throughout your lifetime.
What is Financial Health?
Before we get into how self-control affects your financial health, I think it’s important we are all on the same page on the definition.
Financial health is the term used to describe your own personal finances and how healthy it is. This includes things like how well your saving, what you put away for retirement, how little debt you have, etc.
There is a bit more to it than that, but for the sake of this post, we’ll keep it that simple.
Why Self-Control Matters to Your Financial Health
As I mentioned in the introduction, I think self-control is one of the toughest things to master for your financial health.
Your ability to control certain desires or urges with your money, can really determine your overall financial stability and results in the long-run.
It’s also incredibly challenging, especially if you are just starting to take control of your personal finances.
I see a need for discipline and self-control in four key financial areas:
To continue reading, please go to the original article here:
8 Ways to Prepare and Protect Your Money
8 Ways to Prepare and Protect Your Money
Experts Explain Hyperinflation and 8 Ways to Prepare and Protect Your Money
September 27, 2022 Financial Pilgrimage
Imagine a world where money is worth practically nothing, and the costs of goods increase rapidly, doubling and tripling day after day. This situation might sound like a fictitious movie plot, but it has happened many times before in our world. It’s called hyperinflation, and it can wreak economic devastation on people.
Right now, the increasing prices of goods and services across the board have already stretched people’s budgets. That’s just called inflation. But during hyperinflation, things would get dramatically worse. While the odds of this happening in the U.S. are small, there is no better time to get your financial house in order.
8 Ways to Prepare and Protect Your Money
Experts Explain Hyperinflation and 8 Ways to Prepare and Protect Your Money
September 27, 2022 Financial Pilgrimage
Imagine a world where money is worth practically nothing, and the costs of goods increase rapidly, doubling and tripling day after day. This situation might sound like a fictitious movie plot, but it has happened many times before in our world. It’s called hyperinflation, and it can wreak economic devastation on people.
Right now, the increasing prices of goods and services across the board have already stretched people’s budgets. That’s just called inflation. But during hyperinflation, things would get dramatically worse. While the odds of this happening in the U.S. are small, there is no better time to get your financial house in order.
Financial planners and experts share their best tips and personal finance advice to prepare for any economic scenario, including hyperinflation.
But First, What is Hyperinflation?
Inflation can signal that an economy is growing and demand for goods and services is rising. However, hyperinflation is not just about high growth in the cost of goods.
“The biggest misconception about hyperinflation is that we’re in it now,” said Mike O’Leary, co-host of early retirement and frugal living podcast Friends on FIRE. “Economists typically define hyperinflation as a month-on-month increase of 50% or more. We’re currently experiencing an uncomfortable but fairly normal inflationary cycle.”
Why Does Hyperinflation Occur?
Hyperinflation is complex. There are many reasons why hyperinflation could occur. Every country’s economy is different and has its own unique path that could lead them down into this nightmare scenario.
However, common underlying causes of hyperinflation include:
A rapid increase in the supply of money without a currency backing such as gold
A rapid rise in the demand for goods and services
In the past, some governments have rapidly increased the money supply by printing money. Hyperinflation occurs when excess money is rapidly added to an economy, such as Brazil’s 1995 hyperinflation. From 1985 to 1994 prices rose by a mind-boggling 184,901,570,954.39%.
Common Hyperinflation Misconceptions
To continue reading, please go to the original article here:
Wealth & Income Are Not The Same
Wealth & Income Are Not The Same
Hillary Hoffower
A woman who studied 600 millionaires says there's a misconception about wealth that just won't die
Wealth does not equal income, but people often mistakenly think they're the same thing.
Wealth is the net worth of a household, whereas income is what's reported on an income tax return.
Being rich isn't about how much money you make or spend — it's about how much money you keep. ...
There are a lot of myths about wealth, but one seems to strongly persist: The idea that income equals wealth.
Wealth & Income Are Not The Same
Hillary Hoffower
A woman who studied 600 millionaires says there's a misconception about wealth that just won't die
Wealth does not equal income, but people often mistakenly think they're the same thing.
Wealth is the net worth of a household, whereas income is what's reported on an income tax return.
Being rich isn't about how much money you make or spend — it's about how much money you keep. ...
There are a lot of myths about wealth, but one seems to strongly persist: The idea that income equals wealth.
"It continues to be the assumption of those who increase consumption as their income increases that they are the same," wrote Sarah Stanley Fallaw, director of research for the Affluent Market Institute, in her book, "The Next Millionaire Next Door: Enduring Strategies for Building Wealth, in which she surveyed more than 600 millionaires in America.
She added: "And believing this myth gives the false perception that those who appear to be rich (neighbors driving luxury cars or friends in $200-plus jeans) are wealthy when in fact it only means they spent more than real millionaires on these purchases."
Point blank, income and wealth are not the same thing.
Wealth refers to the net worth of a household, i.e. all of its assets minus of all its liabilities, Stanley Fallaw explained. Household income is merely realized income to be reported on one's personal income tax return.
Even the Tax Foundation gets it wrong, referring to "millionaires" in terms of their income tax returns versus their net worth, Stanley Fallaw said. In reality, a millionaire's income is only 8.2% of their wealth, she found through her research.
This myth is problematic, Stanley Fallaw added, because it "distorts" the numbers people focus on when trying to achieve financial independence.
Wealth isn't about how much money you make or spend — it's about how much money you keep
To continue reading, please go to the original article here:
https://www.businessinsider.com/difference-between-wealth-net-worth-income-2019-1
Keep These Financial Records in Your 'Go Bag'
Keep These Financial Records in Your 'Go Bag'
Lisa Rowan
But even if you don’t live in a hurricane-prone area like I do, there’s no excuse for not having an emergency kit ready for the worst-case scenario, whether it be a wildfire or a flood or an earthquake.
Beyond evacuation essentials like clothing, toothpaste and a flashlight, you’ll also want to have a substantial amount of financial information on hand. This information can help you make payments, access assistance, and otherwise go about daily life during or after an emergency. Since cell phone or internet service may not be available, it’s important not to rely on just having your username and password memorized to access various financial services.
Keep These Financial Records in Your 'Go Bag'
Lisa Rowan
But even if you don’t live in a hurricane-prone area like I do, there’s no excuse for not having an emergency kit ready for the worst-case scenario, whether it be a wildfire or a flood or an earthquake.
Beyond evacuation essentials like clothing, toothpaste and a flashlight, you’ll also want to have a substantial amount of financial information on hand. This information can help you make payments, access assistance, and otherwise go about daily life during or after an emergency. Since cell phone or internet service may not be available, it’s important not to rely on just having your username and password memorized to access various financial services.
Plus, you’ll need a lot of that financial information to help you rebuild: For instance, you may need to show proof of income if you apply for Federal Emergency Management Agency (FEMA) disaster relief assistance. And the last thing you want to be doing as you’re trying to rush your family out of your house is trying to dig up your last pay stub.
The following are the financial documents you should pack copies of in your evacuation bag.
Identification
Driver’s license and/or passport
Social security card
Birth certificate
Contact numbers for family, friends or neighbors
School registration forms
Family
Alimony payment agreement
Child support payment agreement and payment receipts
Elder care payment records
Will or trust
Power of attorney
Home
The deed to your house or your rental lease
Home or renter’s insurance policy
Other home loans, like a home equity line of credit
Photos of your property, including photos of valuable items that have separate insurance coverage
Flood insurance policy
Property tax statement
Car
Title or loan records
Registration
Insurance policy Banking, Investing And Credit Cards
Account numbers, routing numbers, verification codes and institution contact information
Account information for stocks, bonds or mutual funds
Retirement account records
Other Financial Records
Most recent tax return
Employment record (an offer letter or pay stubs) and contact information for workplace
Government benefits documentation (Social Security, TANF, veterans benefits)
Utility account information
Student loan agreements
Cash
Along with your documents, you’ll want to have cash available for expenses if payment systems are unavailable or the power is out. How much should you have handy?
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