Do's and Don'ts When You Increase Your Income

Do's & Don'ts When You Increase Your Income

From the Recaps Archives originally posted on 7/11/2019

2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Team Member Blog, Consumerism to Frugalism

Most of you would like to increase your income.

Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.

Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.

While we should live within our means, most people would make very different choices if money wasn’t an option. Having said that, money should never be the end goal.

What’s really at the heart of the drive for more money is the desire for more freedom and power: over our life and the choices we make about it, as well as our ability to influence the world in the ways we care most about.

Money is nothing more than the means to an end.

Unfortunately, most of us will not win the big lottery, start a billion dollar company, or inherit millions. This means that while our incomes may increase over time that increase will likely be gradual, and may come in the form of step or merit-based raises, bonuses, or commissions.

However, most people find themselves spending money as fast as they make it, gradual increase or not.

With these points in mind, what SHOULD you do if you find your income increasing?

Luckily, we’re here to help.

Here are 2 things you should do when you increase your income and 1 you shouldn’t.

Things You SHOULD Do : 

Pay off Debt

We know we play this tune like a broken record, but paying off your debt as fast as you can is one of the most effective ways of having Money Earned through Money Saved.

In fact, paying off debt is second only to not accruing debt in the first place!

The reason paying off debt as soon as possible is so impactful is because of interest.

Essentially, any loans you have you will pay interest on, which gives the lender extra incentive for loaning the money in the first place.

The trick with paying off debt at a faster pace than your loan term lies in the fact that any extra you pay goes directly toward the loan balance and not to interest.

Thus, making extra payments lowers your overall balance, which lowers the interest paid, which lowers the total amount you will pay to the lender.

Depending on the size of the loan and how much extra you put toward it, the impact on the total you pay can be quite astounding.

For instance, making extra payments on a mortgage could save you upwards of $30,000 in interest and several years on the life of the loan!

Not only does paying down your debt help you to save on interest and shorten the life of the loan, having less debt helps you maintain financial flexibility.

Say your car dies and you need another one, or you get in an accident (heaven forbid) and have medical bills. What if you get laid off or get sick and need to miss work?

If your debt to income ratio is maxed out you’ll be hard-pressed to get more credit no matter how great your credit score is or how much you make.

This is why it’s so important to focus on paying down any debt you do have as fast as possible and to try and keep it paid down. Not only will you be saving on interest and getting out from under loans faster, you’ll be able to handle any unknowns that may come up that could require you to accrue more debt.

Long story short, if you increase your income one of the first things you should do with that money is to pay down your debt.

To continue reading, please go to the original article at

https://www.moneysavedmoneyearned.com/2-things-you-should-do-and-1-you-shouldnt-when-you-increase-your-income/

Wealth Managers and Handling Losses

Wealth Managers and Handling Losses.

By Muhammad Ali

Imagine you invested the majority of your RV exchanged money or funds with a wealth manager and the guy lost 90% of your money.

Do you think this situation can never happen?  How about telling that to this man and his wife.

LINK

He invested $250,000 with a Wealth Manger only to be left with $11,200.

So yes, it definitely can happen and it can happen to you.

What would you do?

Probably, the same thing that this guy is doing in the article, protesting against the bank.

However, what is done is done.

Be careful and be cautious with any and all kinds of investments.  Risk only a small percentage of your capital.  Let's say you have $1,000,000 then advise your wealth manager to trade only 10%, $100,000 of that money.  That's it, that's all.  If they can make your money grow then great.  If they lose it all well then you still have your $900,000 in the bank.

In the Investment tab of my Currency Exchange Planner, you can do simulations of various types of investments and profit returns.  However, I also recommend that you only invest 10% to 20% of your remaining net worth.

You control your money.  Don't let the banker sweet talk you to invest more.

One avenue to invest your money is in Government Bonds or Treasury Bills.  These do not necessarily have to be done in your country.  You can invest in let’s Iraqi Treasury Bills.  The percentage of return may be smaller but the return and your capital is guaranteed.  You will not lose any of your capital.

So do your own research on what to invest.  Think smart and protect your money at all costs.

You will not get a second chance to buy more Dinars or Rials after the RV, so when you have lost all your money, the panic will start to kick in.

Take note to this post and pay serious attention to what I have said.

I hope my article has been of some interest to you.

Any questions please send me an email to currencyexchangeplanner@gmail.com

I am the creator of the Currency Exchange Planner, an excel spread sheet, which is the most advanced and affordable planning tool for the Dinar Community.

 Try the FREE Download version to test run or BUY the full version for a One-Time low price of $25.  This includes free updates in the future.

 My website is www.CurrencyExchangePlanner. com

Thank you so much,  Muhammad Ali

https://www.currencyexchangeplanner.com/article-6-wealth-mangers-lose-money

13 Easy Ways To Trick Yourself To Save Money

From the Recaps Archives originally posted on 4/30/2019

13 Easy Ways To Trick Yourself To Save Money
By Ryan
 
If you have trouble saving money each month and always seem to go over your budget, try some of these helpful tips and tricks to save more money!
 
Saving money is definitely not as fun as spending money. Before I successfully changed my spending habits, I learned a few tricks to save money even when I didn’t want to. If you are trying to pay off debt or saving for retirement or a vacation, all of these tips will help you get there faster! 

#1. Use Cash For Everyday Expenses

You should have a monthly grocery budget. At the beginning of each month, take out that money in cash and leave your cards at home when you go to the store. Creating a list and shopping with cash will help you stick to your budget if you know you don’t have a credit card to fall back on.

I also recommend using Clicklist or any other online shopping method. I wrote an article about how my wife and I save a ton of money using Frys Pickup by shopping online and picking up our groceries from the store. Read more about it here: How Frys Pickup (formally Click List) Saves Me Money

For the cash technique, you can use this strategy for any other budgeted item you have. You can use cash and leave the cards at home when you go to a restaurant, movie theater, etc. Force yourself to stay on your budget.
 
#2. Pay Your Savings First Each Month

You should have a budget set up for the beginning of each month. In theory, you know how much money you are able to spend and how much you plan to save. Instead of spending money all month and saving whatever is left, reverse the process.

When you receive your first paycheck of the month, automatically move a certain amount of money from your checking account to your savings account. Many banks can do this for you automatically if you set it up for a certain amount. If you automatically move $25 dollars over initially, you know you have at least saved that much.

Force yourself to lower your spending rather than your saving. By reversing your money management order, you can more easily achieve your savings goals.

Digit is a mobile app that will assist you with this process as well. Digit is a service that looks at your spending and transfers money into a savings account automatically. If you would like to try it for free for 30 days, click my link here.

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

https://arrestyourdebt.com/13-easy-ways-trick-yourself-save-money/

Finding a Financial Advisor or Planner

From the Recaps Archives, originally posted on 6/3/2019

Finding a Financial Advisor or Planner
By Troy Segal Updated Jun 3, 2019

If it's ever occurred to you how complex and vital 'getting it right' is when it comes to saving, investing, maximizing the value of your wealth and planning for a safe, comfortable retirement, you've probably asked yourself if you should employ a financial planner or advisor.

Similarly, if you've felt the pressure of deciding on a big investment, such as a home or education—or felt overwhelmed with the financial details after a wedding, the birth of a child, divorce, death of a spouse, or major illness—you've probably wondered about finding someone to advise you.

Services of Advisors and Planners

According to a 2019 CNBC and Acorns Invest survey, over a third of Americans don't have a good understanding of what a financial advisor actually does. That figure balloons to 46% for Millennials.

So what kind of services do financial advisors and planners provide? Broadly, they can help you manage your financial life using a variety of strategies and products to both manage your wealth and improve your financial habits.

Types of Financial Advice

Not all financial advisors are the same. Some specialize in certain practice areas, types of clients, income levels, investment strategies, and products. Some work with clients all over the country, while others focus on clients in their town.

Some can help you with your taxes, insurance needs, or estate planning and others will focus on retirement planning. There are advisors for the younger client and some specialize on retirees. You can find a planner to help with life stages planning, estate distribution strategies, and business planning.

From managing every aspect of your personal or business financial life to simply suggesting directions, there are specialized professionals available to help.

Reasons to Seek Financial Advice

You may need an advisor for many reasons. For example, perhaps you just received a considerable sum of money from a relative who died or a windfall from the state lottery. As a person goes through different stages in life, their need for a financial professional will change.

erhaps you just had a baby and want to ensure their future in case the worst happens. Many parents seek help for college savings for children and setting up estates that can convey wealth to future generations.

The approach to investing at or during retirement is different than that of a young worker. As you near retirement your risk tolerance level will change, and your style of investing should change as well. Perhaps your company is offering a too-good-to-resist early-retirement package, and you want to make sure the money lasts.

Any of these events (and many others) could naturally trigger the desire for some professional help in managing your financial affairs.

To continue reading, please go to the original article here:
https://www.investopedia.com/updates/find-financial-advisor-planner/

Money is Not a Four Letter Word

 Money is Not a Four Letter Word

 By  JJ      

This post is part of the #WomenRockMoney Movement, a large group of female personal finance bloggers who have come together to inspire more women to learn about money. ***

Money can elicit a multitude of emotions. Envy, shame, ignorance, superiority, dread and anxiety, to name a few.

For many, money is a source of confusion.

Cloaked in a combination of jargon and overly complex concepts, a basic understanding of personal finance seems insurmountable when first getting started.

This feeling is disproportionately true for women.

Studies have shown that women not only have lower rates of financial literacy then men but they are also less confident in their financial abilities. With more women becoming equal contributors in the household, or even the primary breadwinner, it’s important that we get a better grasp of the personal finance basics.

On a societal level the subject of money remans taboo. Although we deal with matters of personal finance on a daily basis, most of us don’t feel comfortable discussing money, even with our best friends or romantic partner.

In order to increase the financial knowledge and confidence of women we need to create an environment where we all feel comfortable talking about money.

Did you know that people would rather have a conversation about death then talk about their personal finances?

What?

Yes, it’s true. Kathleen Burns Kingsbury, author of “Breaking Money Silence,” found that nearly half of Americans would rather discuss death, religion or politics before having a conversation about their personal finances.

This is crazy!

While I have not found a comparable published statistic for Canadians, I am going to assume we share a similar sentiment with our Southern neighbours. (Side note: if you are aware of a similar study published about Canadians please let me know by leaving a comment below!)

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

http://thefinancialgraduate.com/money-not-four-letter-word/

To Find a Better Solution, Ask a Better Question

To Find a Better Solution, Ask a Better Question

By Hal Gregersen

Stuck on a hard problem?

The director of MIT’s Leadership Center says you might just need to reframe it.

 Trace the origin story of any creative breakthrough and it is possible to find the point where someone changed the question. I have seen this as a longtime student of innovation; the stories in that realm abound.

 For example, consider the origins of the snapshot. Photography had been invented well before 1854, when Kodak founder George Eastman was born, and he took an interest in it as a young man.

 But as he prepared to take an international trip at age 24, Eastman found it was too much of an undertaking to pack along the elaborate and expensive equipment.

 The technology for capturing photographic images had steadily improved over the years in terms of speed and quality, but the assumption remained that this was a process for professionals, or at least for serious and well-heeled enthusiasts. Eastman wondered: Could photography be made less cumbersome and easier for the average person to enjoy?

 It was a promising enough question to motivate Eastman to dive into research mode, and exciting enough that he could recruit others to help. By age 26, he had launched a company, and eight years later, in 1888, the first Kodak camera came to market.

 Not only did it replace wet emulsion plates with new dry film technology, but it also featured what managers today call a “business model innovation.” There was no longer an expectation that customers would acquire the skills and the setup for developing the film.

Instead, after shooting a whole roll of 100 pictures, they would send the compact camera back to the company for developing.

 The Kodak was a smash hit, but Eastman’s question lived on. By 1900, he and his colleagues launched the Brownie, a $1 camera simple enough for a child to operate and durable enough for soldiers to take into the field.

 Today, as I sit in the midst of MIT’s buzzing hive of innovators, I see plenty of people arriving at and articulating questions with the same power to excite the imagination and engage other clever people’s efforts. For the moment, I’ll name one: Jeff Karp. He’s a bioengineer in charge of a lab devoted to biomimicry.

 If that term is unfamiliar to you, let me suggest that the best way to understand it is with a question: How does nature solve this problem?

Say the problem in question is the need for a bandage that will stay stuck to a wet spot, such as a heart, bladder, or lung that has just been operated on. In that case, what could be learned from slugs, snails, and sandcastle worms?

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

https://medium.com/s/story/to-find-a-better-solution-ask-a-better-question-3be7fee5af65

4 Laws To Generate Wealth

4 Laws To Generate Wealth

By The Money Mix

Want to generate wealth? Play by the rules.

Have you ever come across the phrase – ‘play by the rules’? It’s perhaps the most powerful phrase in the world we live in. Why? Because the world itself is in existence because it plays by some specific rules.

All-natural laws are just what they are; they are not there for us to judge their fairness or otherwise. The best we can do is to take advantage of them and be a blessing to ourselves and our generation.

If you want to generate wealth,  for whatever reason you might need it for, these laws should be your best companion.

I have compiled these four laws because of the evergreen nature, and if they are considered with a kin eye, you are on your way to wealth.

The Great Law To Generate Wealth – Law Of Saving

Unto he who continues to keep not less than 10% of his income shall more income visit, and from he who keeps no such store shall fresh income avoid, and even the little that struggles to get to him shall be quickly removed and given to he who keeps the store.

Gentle words fall lightly, but they have great weight!

We already know that more leads to more, and that loss lead to more losses until something drastic stops the trend. If you want to generate wealth seriously, you must be careful with our saving plans, why we must not lose the momentum.

The Law of Income According To Earl Nightingale

This states that all money that will come to you as an individual, group, state, company or nation, all income hinge on demand for what you do, how well you do it and the difficulty of replacing you.

From this, you can infer that as you improve your earning capacity by taking in more useful information and motivation, you earn more.

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

https://themoneymix.com/generate-wealth/

Why Wealth is Only Half the Story

Why Wealth is Only Half the Story

By Max From The Money Mix

When financial freedom is mentioned, what comes into your mind? 

You probably think of having plenty of material wealth and possessions, perhaps.

Well, that’s just not the whole story.  I will let in on a secret that most people miss.  Financial freedom is not just about attaining plenty of monetary possessions, it’s more than that.

Financial Freedom Secret

A majority of people make the mistake of tagging their value of financial freedom on some imaginary figure or a specific amount of money.  They envision that, once they hit that target amount, then they will have attained financial freedom and will no longer have to work again.

Well, think about the likes of Bill Gates, Warren Buffet and other fellows who are wealthiest in the world.  The money they have can sustain them for their entire life.  But, they still work, however, their motivation is now different.

What drives and motivates them to do the things they do is something totally different from just the need for money.  They still work to probably make the world a better place, to get recognition, to build a legacy among other forms of motivation.  There are numerous quotes about financial freedom.  Warren Buffet once said, “Someone is sitting in the shade today because someone planted a tree a long time ago”.

Investing for a long-term impact should be the driving force.

So, why is wealth only half the story?  Let’s look at some basics of wealth.

The Basics of Wealth

Wealth and possessions are just one among many other means to financial freedom.  Economically, wealth represents a person’s net worth and financial position.  It is obtained using a personal financial ratio where the total liabilities are deducted from the total assets.  Wealth is categorized into three categories which include personal property, monetary savings and capital wealth.

Personal property includes tangible items such as the automobiles, houses, the monetary savings include an accumulated past income and capital wealth includes the value of the income-producing assets.

Wealth can provide some form of safety net or protection against the unforeseen decline in the individuals’ living standards in the event that they lose their job or has another form of financial emergency.

 Wealth is a compilation of things that are limited in supply, are transferable and can be useful to meet certain human needs.  Therefore, scarcity forms a key factor in wealth.  Wealth is considered an accumulation of something that is scarce and a resource with net asset value.

When you have the abundance of these resources, you will not have to worry about the money you need to meet your physical needs.  However, it is still possible to feel inadequate once you obtain the amount of money you’ve always figured.  Wealth can help you meet various physical needs such as shelter, clothing, food, but does it really help meet all human needs?

Let’s see how you can achieve financial freedom in relation to diverse human needs:

Human Needs and Achieving Freedom

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

https://themoneymix.com/why-wealth-is-only-half-the-story/

The 10 Most Valuable Financial Lessons I Learned

The 10 Most Valuable Financial Lessons I Learned in 2018

By  Trent Hamm  Updated on 01-10-19

 Getting Started

​Each year, during the period between Christmas and New Year’s, I sit down and look over what happened during the past year, what I can learn from that, and what I can apply from that to the year to come.

 I usually come up with a big handful of life lessons during that review, things I learned from situations in my life that didn’t quite go as I liked. What went wrong? Where did I go wrong? What can I do better?

These life lessons spread across all spheres of life and usually number in the dozens. I tend to literally make a list of them as I review the year as a way to figure out how to do better in the coming year.

​Among the lessons I learned in the past year were 10 that have real personal finance implications, though some tend to branch over into other spheres of life. I thought it might be valuable to share those lessons, along with what I hope to do differently going forward.

 Lesson #1: If the stock market is scaring you in terms of your future, you’re either not invested appropriately or don’t know what you’re invested in.

 This is something I did right this year, but the bumps in the stock market reminded me of the panic I felt in 2008 when I watched my retirement balance fall by 40%. I didn’t change anything back then, but I was often sick to my stomach about it and my instinct kept screaming to run away from the risk.

But then… things recovered. Between 2008 and 2018, my retirement accounts tripled in value.

 The stock market is swooning again, but this time I don’t have the butterflies. Why?

Adsense for Blog Posts

 First of all, I recognize that the stock market will rebound. The entirety of the American economy is not going to disappear in a puff of smoke. There are millions of Americans out there every day working hard and innovating, and that’s where the value of the stock market comes from. This is a correction, like every other, not an apocalypse.

 Second, I recognize that the stock market is only a place for individual investors to put their money if they have long term goals. If you’re going to use that money within the next ten years, it shouldn’t be in the stock market.

 Over a period of more than ten years, it will enjoy several years of growth and multiple corrections, which is enough time for that investment to start to approach the long term average annual return of a stock market investment, somewhere between 7% and 10% depending on how you calculate it. I have nothing in the stock market that I intend to use within the next ten years.

I’ve honestly barely paid any attention to the ongoing correction. It’s just another good sized correction, like 2008, like 2001, like 1992, like 1987, and so on. It’s part of having investments in stocks – every several years, the stock market corrects itself.

 If you know this and you still feel the butterflies, one of two things are happening. One, you’ve got too much risk – you have money in stocks that you’re going to need within 10 years. You fix this by moving such money out of stocks.

​Two, you’re looking at the trees and can’t see the forest – the success of long-term investments is judged over the long term, not over a few months.

 What I’ve learned from this correction is that I’m a lot more confident and sure about my investing plan for an early retirement than I was ten years ago and, because of that, there’s no risk of me making an emotionally driven bad financial decision in the face of a momentary change in the stock market.

 Lesson #2: Give yourself plenty of breathing room in terms of both time and money when doing a major home improvement project.

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

https://www.thesimpledollar.com/the-ten-most-valuable-financial-lessons-i-learned-in-2018/

The 3 Things You Should Do To Build Wealth

The 3 things you should do to build wealth in 2019 (updated regularly)

by  Steve Adcock    January 10, 2019

In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).

Without the relatively comfortable full-time paycheck.

It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.

I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.

Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.

In fact, we pulled down a combined $250,000 in our last years working.

We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.

How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot of time. Let me explain.

How to build huge wealth in 2019 / 2020

First, let’s set the record straight about high incomes.

If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.

Just. Plain. Wrong.

It makes us feel better to believe that we’ll never be able to retire early without a huge income, but that’s just not true. The truth is a high-income job often comes with a set of assumed requirements that keep high-income earners churning on the hamster wheel for years.

You might be surprised at how many high income earners still live paycheck to paycheck just to maintain their high income job.

The strategies that I’m about to talk about apply to anyone – with any level of income. Big incomes or small, building wealth ultimately comes down to a small set of insanely basic principles.

Principle #1: Invest Your Cash

Nobody ever got rich just by “saving money“. Those articles about how to save money by ordering water instead of a soft drink in restaurants? Yeah, that’s nonsense. That’s not how we build wealth.

Wealthy people build wealth by devoting years of their life to investing their cash in appreciating assets.

Wow. Okay, what does this mean? It means we’re not just putting our money in a bank. That only makes banks rich. Instead, we’re placing additional value on our cash by investing it in assets that gain value over time.

Historically, the stock market builds serious wealth for investors. This chart from Macro Trends shows how the Dow Jones has performed over the years. Over time, Wall Street investors tend to build wealth because their investments appreciate. They go up in value as this chart demonstrates. 

https://thinksaveretire.com/wp-content/uploads/2018/12/dow-jones-100-year-historical-chart-2018-12-17-macrotrends.png

 Others have chosen real estate investments through house flipping. The idea is investors buy undervalued “fixer-upper” homes that need some love. They fix them up and re-sell them at a profit.

Jeremy Biberdorf from Modest Money says that to be a successful house flipper, get as many properties as you can. Go all in or don’t even start.

Jeremy’s tips include:

Resist a total remodel; instead, look for undervalued properties

Know your budget and stick to it (it’s easy to go overboard)

Understand the neighborhood and its pros and cons

Never say No to an inspection; it might save your butt!

In whatever way you choose to save your money in 2019, investing your cash in appreciating assets builds wealth over time.

How much should you invest? There isn’t a one-size-fits-all approach.

I always encourage new investors to talk to a financial advisor to develop an investment strategy that works best for them. But if you’re looking for high-level advice:

If you don’t have an emergency fund, start one now. The immediate goal is to build up at least three months of living expenses to account for an unexpected job loss or health issue.

Take advantage of company-sponsored 401ks. Many companies match contributions made by their employees. This is free money. And, 401ks reduce your taxable income. Talk to your company about investment opportunities. They might even provide free financial advisor services.

Streamline your expenses. Spend a weekend diving through your expenses. Take a look at your bank and credit card statements and make judgment calls about each and every expense. With every dollar that you’re spending, is it actively contributing to your happiness? Be honest. And, be brutal.

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

https://thinksaveretire.com/build-wealth/

Personal Lessons Learned Since The 2008 Financial Crisis

Personal Lessons Learned Since The 2008 Financial Crisis

By Financial Samurai

 On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered.

 Despite all the economic devastation, I wish I could rewind time. I’d rather be 31 than 41, simply because I love life and want to live as many years as possible.

 The period between 2008 – 2018 was the most exciting 10 years of my life. Here are some of the lessons I have learned since the financial crisis.

Lessons Learned Since The 2008 Financial Crisis

 1) It’s really hard to go all-in, even when you know you should. Despite telling myself over and over again that we were in the buying opportunity of a lifetime, I couldn’t convince myself to invest much more than my usual 401(k) maximum because my world was falling apart.

 A couple dozen friends had been laid off, including my best friend at the time, who worked at Lehman. I feared I might be next and would need as much cash as possible to hold me over just in case.

 In 2005, I had taken a $1,200,000 mortgage to buy a single family home. I already had around $380,000 in mortgage debt from the first property I bought in 2003. With property prices in San Francisco falling along with the stock market, bankruptcy was a very real possibility if I had lost my job.

 Therefore, I built a significant CD portfolio with most of my excess cash instead. The best 5-year and 7-year rates were at 4.25% at the time, so I decided that was where most of my savings went.

 The only things I did right were keeping my job and not selling any real estate or stocks in the middle of the downturn.

  2) Chaos is a great motivator. I had been putting off starting Financial Samurai since 2006, but once the financial crisis hit, I decided to finally launch in the summer of 2009. If I got laid off, I needed a backup plan.

 I also decided it was time to get married. I had known my wife since college, and she would be turning 28 in 2008. For some reason, 28 always stuck in my head as the perfect age for her to get married. Further, I had also wanted to focus on my career until 30 to see how far I could get.

 The difficult times of 2008 made me want to hold onto her even more. I could lose everything, but I couldn’t lose her. Relationships were more important than money back then, and they are more important than money today.

​3) You gain a tremendous amount of confidence and expertise in 10 years. Previously, I’d always been embarrassed to ever say I was an expert in anything. But once I turned 32, I felt I had developed some expertise in the Asian Equities market. And now that I’m in my 10th year building Financial Samurai, I have no problem believing and saying I have expertise in digital media.

 Because of this experience, I also no longer fear financial ruin. If Financial Samurai shuts down and all my passive income goes away, I know I can get a job back in finance, fintech, or online marketing. The base pay would range between $150,000 – $250,000 + stock, and my family would be fine.

 Age discrimination is no longer a fear either. Instead, you realize experience makes you incredibly valuable. Once you’ve been able to earn income by yourself for so many years, nothing will stop you from living the life you want.

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

https://www.financialsamurai.com/personal-lessons-learned-since-the-2008-financial-crisis/