Financial Lessons from the Game of Basketball

Financial Lessons from the Game of Basketball

Defense wins championships.

You’ve heard the adage. Coaches, players, announcers, fans, and pretty much everyone involved in team sports believes that defense wins championships.

And it makes sense.

If you can stop the other team from scoring it stands to reason that you’ll have a good shot at winning the game.

While you’ve probably heard the adage used in many sports, you probably hear it used most often in reference to basketball, especially the National Basketball Association (NBA).

So, what does this have to do with personal finance?

Glad you asked.

Let’s delve into financial lessons from the game of basketball.

Offense or Defense?

The game of basketball can be broken down into two basic elements: offense and defense.

The same is true of personal finance, with the equivalent elements of personal finance being income and spending. More specifically, increasing your income or decreasing your spending.

Like the competing elements of offense and defense in basketball, you can make financial progress by increasing your income and/or decreasing your spending.

You need both to succeed, but which is better for winning the game?

The personal finance community is somewhat torn on which element is most important for financial success. Some advocate that increasing your income (offense) is most important because there’s unlimited potential. Others feel that decreasing your spending (defense) is most critical to reduce debt and live within your means no matter your income.

The jury is still out on whether income or spending is more important, but what about basketball? Does defense really win championships?

Does Defense Really Win Championships?

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

https://www.moneysavedmoneyearned.com/defense-wins-championships-financial-lessons-from-the-game-of-basketball/

What Are the Best States to Retire for Taxes?

What Are the Best States to Retire for Taxes?

Overview of Retirement Tax Friendliness

Retirees have specific financial concerns and some states have taxes that are friendlier to those needs. Of special interest to retirees are generally issues such as whether Social Security benefits are taxable at the state level, what property taxes will be levied and how retirement account and pension withdrawals are taxed.

Click on a state to see a full overview and calculate your taxes  LINK

Very Tax Friendly

States that either have no state income tax, no tax on retirement income, or a significant tax deduction on retirement income. In addition, states in this category have friendly sales, property, estate and inheritance tax rates.   Alaska   Florida   Georgia   Mississippi   Nevada   South Dakota   Wyoming 

Tax Friendly

States that do not tax Social Security income and offer an additional deduction on some or all other forms of retirement income. Generally, states in this category also have relatively friendly sales, property, estate, inheritance and income tax rates.

 Alabama   Arkansas   Colorado   Delaware   Idaho   Illinois  Kentucky   Louisiana   Michigan   New Hampshire   Oklahoma   Pennsylvania   South Carolina   Tennessee   Texas  Virginia   Washington   West Virginia

Moderately Tax Friendly

States that offer smaller deductions on some or all forms of retirement income. The sales, property, estate, inheritance and income tax rates in this category range in friendliness based on the degree of retirement deductions available.

 Arizona   District of Columbia   Hawaii   Indiana   Iowa   Kansas   Maryland   Massachusetts   Missouri   Montana   New Jersey   New Mexico   New York   North Carolina   North Dakota   Ohio   Oregon   Utah   Wisconsin

Not Tax Friendly

States that offer minimal to no retirement income tax benefits. These states also do not have particularly friendly sales, property, estate and inheritance tax rates.

 California   Connecticut   Maine   Minnesota   Nebraska   Rhode Island   Vermont 

Retirement Tax Friendliness

For seniors who plan to move to a new city or state for their retirement, there are a number of factors to consider. Weather is important to many retirees, as are amenities and attractions such as golf courses, beaches, parks and senior centers. Another major consideration is the cost of living in a certain area. Taxes are a big part of that.

To continue reading, please go to the original article at

https://smartasset.com/retirement/retirement-taxes?utm_source=taboola&utm_medium=cpc&utm_campaign=tab__falc_content_famistakes&utm_term=580&utm_content=203587794

.The Secret to Building Wealth – Buy Assets

The Secret to Building Wealth – Buy Assets

By RETIREBYFORTY

The Secret to Building Wealth

The secret to building wealth – Buy Assets and Avoid Liabilities. The first time this became clear to me was when I read Rich Dad Poor Dad by Robert Kiyosaki. The book is an easy read, but it has many flaws*. If you haven’t read it yet, I encourage you to check it out from the library and give it a quick read.

However, you need to take the book with a grain of salt and don’t blindly follow it 100%. You’ll have to separate the good advice from the bad. The biggest takeaway I got from Rich Dad Poor Dad is how to differentiate between assets and liabilities. It turns out, I had it wrong for years.

Once I learned that lesson, building wealth became much smoother. It makes a lot more sense to accumulate assets and avoid liabilities.

* There are many problems with Rich Dad Poor Dad. Mr. Kiyosaki is a great motivational speaker and salesman. That’s how he made his fortune. His books are designed to sell more books, courses, and seminars. Don’t fall for the seminars!

They are expensive and not very useful. You can learn a lot more for free on the internet and the library. I recommend reading The Millionaire Next Door and Your Money Or Your Life before Rich Dad.

Assets and Liabilities

Like most people, I used to think assets mean anything that has a cash value. However, that’s not the right way to look at it. If you want to become wealthy, you need to think of your household finance as a business. An asset is something that, in the future, can generate cash flow for you. Assets make money. Anything that takes money out of your pocket is a liability.

This was a revelation to me. I used to include our home, car, piano, and other personal belonging in the asset column. That’s the wrong way to look at it. All these things are liabilities. It changes how I think about spending. In my 20s, I felt great when I purchased our BMW convertible because I thought it was an asset. Now I know it’s a liability. That’s why I’ll never buy another luxury car as long as I’m building wealth. Once you think about assets and liabilities this way, it is much easier to build passive income.

Let’s take a look at some “assets.”

House

I’m sure you’ve heard that your home is your biggest asset. Is this really true? When you buy a house, you’ll have to pay the mortgage, property tax, HOA, insurance, utilities, repair and maintenance, yard work, and furnish it. That’s a lot of $$$ going out of your pocket every month.

Sure, the house can appreciate, but would the appreciation be enough to surpass all the expenses? That’s not always true. We purchased our 2 bedroom condo in 2007 and sold it 12 years later. The sale price was was just $1,000 over what we paid in 2007.

Add all the other expenses up and we lost a ton of money from living in that condo. We came out a bit ahead compared to renting, but not by much. Anyway, we all need a place to live and a house is great, but it isn’t really an asset.

A house is good because it forces people to save. A portion of the mortgage payment goes to the principal and you’ll get that back when you sell. We collected $140,000 after we sold our condo.

It’s nice to have a lump sum in the bank. Most people use this as a downpayment for the next home, but we didn’t need it because we moved into our rental duplex. I’ll invest the $140,000 in CrowdStreet and dividend stock.

There is one way to generate some money from your house – rent out the extra rooms! We used to rent out the extra room at our old home to new engineers. This worked out great. They were never home and the rent helped pay our mortgage. Renting out an extra room is even more lucrative today with Airbnb.

Lots of people are making extra money with it. This really depends on your personal situation, though. Most people value their privacy too much to rent out the extra room.

*Update* We moved into our rental duplex. We live in one unit and rent the other one out. It’s been great so far. Our housing expense dropped significantly. This is a really good house hack.

Car

For many people, their car is the second most valuable thing they own (next to the house). A car is a necessity to most people and it costs a lot of money. However, it’s not an asset. It’s even worse than your house because a car depreciates every day and you also need to buy gas.

A car is basically a money pit. How much money do you spend on your car every month? Can you imagine investing that money instead? Most of us need a car to go to work and run errands.

It’s an unavoidable expense almost everybody. However, I don’t think anyone should buy a luxury car unless they are already wealthy. I’ll buy another convertible someday, but it can wait until I’m rich.

Everything else you own

To continue reading, please go to the original article at

https://retireby40.org/secret-wealth-buy-assets/

.Triggers To Hack Your Life and Money

20+ Triggers to Hack Your Life & Money

By J. MONEY -

One year ago I picked up a large, 8 cup, water bottle to help force me to drink more water, and after staring at it day in and day out I’m proud to say I’m still going strong and hydrating my body :)

It’s rare stuff like this sticks, but according to my psychology loving friend James Clear, this is the power of “physical triggers.” Items in our life that remind us to do, or think, something specific. Every time I see this large ass bottle sitting on my desk I’m reminded to keep drinking!

We’ve blogged about these triggers before, and how I’m also obsessed with sticky notes which are my all-time favorite triggers (the current one I have on my computer screen simply says “lifestyle” to remind me of why* I blog and work so hard online), but after seeing this email from a new reader of the site, it reminded me to share some others I’ve since come across as well.

Here’s what Janice sent me:

“I love the little games we play with ourselves to motivate. Right now I am working on getting rid of my Starbucks addiction. Every morning that I don’t get one, I drop a $5.00 bill into a big glass jar next to my desk so that I can visually see what I am saving. Silly but effective! Once it is full, I will deposit the money into savings and start over.”

Nice and simple right? And even though I’m a huge fan of spending money on things that make you happy like especially coffee (so long as it’s budged for and a priority!), the idea here is pretty solid. And can easily be used to curb other splurges as well.

Here are a handful of other money triggers that might help too:

Big thanks to everyone who shared these with me at some point over the past handful of months! Some really REALLY good ones here :)

Password Trigger: “Make your passwords a goal you want to accomplish so every time you log into your laptop, download an app, etc. you’re reminded of a different goal you have set for yourself. BEdebtFREE!2016, DEC15FinishBook, DrinkH20NowJ$ :)” – Heather Stephens

Pile of Crap Trigger: “When I was in credit card debt and realized what I was doing, I piled up all of the crap I bought onto my bed and took a picture of it all. Then I carried that picture in my wallet. Whenever I wanted to buy something I saw that picture and it made me think, “is this just going to end up on the pile of crap that I don’t even use/wear?” It really helped me a lot.” – Jon @ Money Smart Guides

Parking Lot Trigger: “My parking spot at work is a trigger to check my goals before entering the building” – Catina Mount

Savings Graph Trigger: “This kind of physical graph is a very powerful tool to help you achieve any of your goals, having them in front of you every day. I find it way more powerful than digital graphs because it is tangible. The target is to be always on track with the pink line (or above!) if we want to own our home in 3 years. I do update our stash amount every month and this is great to see the black curve trying to keep up with the pink one.” – Mustachian Post

Net Worth Text Message Trigger: “I run a quick net worth calc each afternoon and text the wife the day’s number. It keeps her focused on the goal.” – @Andrew_Dad

Blackberry Trigger: “I have a recurring weekly reminder on my Blackberry that pops up to tell me to “Save Money”. I only set it a few months ago, but it seems to help me stay focused.” – Weenie

Comparison Trigger: “I always have this quote on my computer screen, “Never compare yourself to anyone; you are only comparing your worst to their best.” It really helps me put things into perspective especially after a long hard day. – Christine @ ThePursuitofGreen

Financial Independence Trigger: “Today, I have my financial independence number all over the house. It’s taped to my computer monitor, on my message board on my wall and in my bathroom on the mirror. I see it all the time and it reminds me to keep pushing ahead to reach my goals.” – Jon @ Money Smart Guides

early retirement calculator  

To continue reading, please go to the original article at

https://www.budgetsaresexy.com/financial-triggers-grow-your-money/

.Cheapest U.S. Cities for Early Retirement 2019

Cheapest U.S. Cities for Early Retirement 2019

By Stacy Rapacon, Online Editor  Kiplinger| July 4, 2019

Early retirement can be more than just a daydream for those long Tuesday afternoons at work. With some smart planning, you can make leaving the workforce early a reality. You just have to keep in mind the unique challenges facing early retirees.

First of all, entering retirement at a relatively younger age means needing to stretch your nest egg further (hopefully). One way to do that is to find the right retirement destination for you. That's because where you live makes a big impact on your budget. After all, settling down in a place where the cost of living is below the national average means your retirement savings pack in more purchasing power.

With that in mind, we pinpointed 50 great places in the U.S. for early retirees—one in each state—focusing on living costs, median incomes and poverty rates for residents ages 45 to 64, as well as local tax environments and labor markets (just in case you want a second act to stretch your retirement savings further).

Of our 50 picks, these 31 destinations offer particularly low living costs, which heightens the chances of your money lasting through your extra-long retirement and beyond. The list is ordered alphabetically by state.

Huntsville, Ala.

Total Population: 444,908

Share Of Population, Age 45 To 64: 27.8% (U.S.: 26.1%)

Retired Cost Of Living: 5.4% Below The National Average

Median Income, Age 45 To 64: $77,266 (U.S.: $69,909)

State's Retiree Tax Picture: Tax Friendly

As one of the 10 Cheapest States Where You'll Want to Retire, the Heart of Dixie boasts many great spots for affordable living. And Huntsville, in northern Alabama, is one of the best. It offers all the low-cost, low-tax advantages as the rest of the state, but adds more generous household incomes.

Home to NASA's Marshall Space Flight Center, the Redstone Arsenal and the Huntsville campus of the University of Alabama, the city offers a robust economy and a highly educated population.

You can also find plenty of cultural attractions, from a sculpture trail to a symphony orchestra, as well as opportunities for outdoor recreation (think bass fishing). In fact, Alabama at-large offers many of Florida's popular retirement attractions—warm weather, nice beaches and plenty of golf—all at a typically lower price.

To continue reading, please go to the original article at

https://www.kiplinger.com/slideshow/retirement/T037-S001-cheapest-u-s-cities-for-early-retirement-2019/index.html

.Is Hiring A Coach Worth The Money?

Is Hiring A Coach Worth The Money?

(And Do I Need One?)

You’re ready to make a significant change or to improve some part of your life. But you’re struggling to do it on your own. You’re finding it challenging to stay on top of “all the things” to know or with motivation or mindset to reach your goal.

Whether the changes we want to make or the goals we want to achieve are related to our health, career, finances, business, relationships, or some other aspects of our lives – we know it takes effort to make progress.

Striving for achievement, we read articles, download apps, buy books, courses, and products. Following blogs, chatting in forums, joining clubs and organizations, and attending conferences are other ways we might try to move closer to our goals.

large post it notes with coaching words being painted on them

Sometimes you find all the information you need and take action without help from others. But you can probably name at least one important goal you haven’t met – even after trying different ways to accomplish it.

If you suffer from impostor syndrome, are uninspired, would like more guidance, and are ready to move to the next level or make a transformative change, but don’t know where to start -you might consider hiring a coach.

Let’s arm you with some info to help you decide if a coach is right for you. After looking at what a coach does for their client, we’ll dive into:

Why hiring a coach can be a smart decision

When a coach is not the answer

Things to look for in a coach

How to make the most of a coaching experience

What is the Role of a Coach?

Even if you have never played a sport, you know coaches help prepare athletes to meet a goal successfully. The job of a coach is to teach, demonstrate, analyze, encourage, motivate, and more.

Coaches who help you meet life or business goals have a similar role. They ask questions, help you identify goals, work with you to create a plan, and structure a process to assist you in being successful.

But don’t think a coach will tell you what to do and how to do it. You’ll work with your coach rather than being their student. While you’ll learn from them, you’ll be an active participant in the process.

Coaches and clients usually create a short-term arrangement to work together. But the amount of time can vary depending on your goals and the progress you make toward meeting them.

Is Hiring a Coach Worth the Money?

When you can find almost any information you’re looking for on the internet, and with people being able to DIY more things than ever, you might be questioning the value a coach can provide.

If you can save money and try to figure out how to meet your goals yourself, shouldn’t you try that?

While you can certainly work toward your goals on your own, there are several reasons why paying for a coach is worth the money.

Working with a coach can:

Help you discover what’s holding you back and find the motivation to move forward.

Challenge your assumptions; help you find truth and meaning.

Identify ways to capitalize on your strengths and manage your weaknesses.

Increase your awareness and clarity to help you make better decisions.

Clarify your priorities.

Aid you in creating processes and structure.

Keep you focused.

Answer your questions quickly.

Provide you with honest and personalized feedback.

Challenge you to think differently and explore new options.

Help you move out of your comfort zone to make changes and grow.

Make you more accountable.

Support you and boost your confidence.

Improve your work-life balance and relationships.

Help you achieve your goals sooner and set new goals.

Save you time and money!

While we may think we know ourselves well enough to put together our own plan, don’t overlook the knowledge, skills, and experience a good coach brings to the table.

Because a coach can assess your abilities and limitations – real or perceived – from the outside, they can provide suggestions for how to increase, address, or remove them.

Skilled coaches help you laser focus on your specific issues and goals to significantly improve your time to successful change or completion.

To continue reading, please go to the original article at

https://womenwhomoney.com/hiring-coach-worth-money/

.10 Steps To Become A Millionaire

10 Steps To Become A Millionaire

In 5 Years  (Or Less)

By Benjamin Hardy PhD

"A lot of people think we are creatures of habit but we're not. We are creatures of environment." — Roger Hamilton

“Become a millionaire not for the million dollars, but for what it will make of you to achieve it.” — Jim Rohn

Hey!

Money is a means to far more important ends.

However, if you don't have clear financial goals—which you track, measure, and report consistently—then you certainly won't hit them.

If you don't have specific and stretching financial goals, it's likely due to limiting beliefs and a fixed mindset.

In this article, I detail a simple (and realistic) 10 Steps To Become A Millionaire In 5 Years (Or Less)

You can do this.  Have an epic week!

It doesn’t matter where you currently are in your financial situation — whether just starting out or already making lots of money.

 Most people, no matter what their income, are treading water. As a person’s income rises, so does their spending.

 Few people understand how to continually increase their income, lifestyle, and joy at the same time.

 In this article, you will learn:

 How to become wealthy

 How to build a life that continually increases your level of confidence and joy

 How to continually expand, learn, grow, and succeed as a person

 How to develop mentorships, friendships, and strategic partnerships with nearly anyone you want

 If these things are not interesting to you, then this article was not written for you.

 Here’s how it works:

 1.  Create A Wealth Vision

 “When riches begin to come they come so quickly, in such great abundance, that one wonders where they have been hiding during all those lean years.” — Napoleon Hill

 Step one of becoming financially successful is to actually create a vision for yourself financially. Einstein said that imagination is more important than knowledge. Arden said creativity is more important than experience.

 How much imagination do you have for your future?

 Do you see huge potential and possibility for your life?

 Or, do you see a pretty average life?

 Creating a vision is an iterative process. You don’t just create a vision once and then never look at it again.

 You continually create and write your vision — every single day.

 Lok at any area of your life in which you’re doing well, and you’ll find it’s because you see something beyond what you currently have. By that same token, look at any area of your life that isn’t exceptional, and you’ll find that you don’t see something beyond what you currently have.

 Most people are living in and repeating the past.

 Having a vision is focused on the future.

Your life and behavior immediately shift when you begin imagining a different future and stridently strive for it.

 In order to do this, you must obliterate your need for consistency. From a psychological perspective, people generally feel the need to be viewed by others as consistent. This need causes people to retain behavioral patterns, environments, and relationships that are ultimately destructive and unsatisfying for far too long.

To continue reading, please go to the original article at

https://benjaminhardy.com/10-steps-to-become-a-millionaire-in-5-years-or-less-4/

.15 Personal Finance Rules to Live By

15 Personal Finance Rules to Live By

The following is a guest post from Marc at VitalDollar.com.

Have you ever wondered what separates those who are successful financially with those who are not? Have you felt like your income should allow you to live a much more comfortable life than what you are experiencing?

Personal finance doesn’t have to be complicated. There are a few basic rules that you should follow, and if you do that, everything else falls into place.

This article covers some of the most basic and most powerful financial rules that should impact your everyday life.

1. Spend Less Than You Earn

Arguably, the most important financial rule is to spend less than you earn. Regardless of how much money you make, it’s impossible to get ahead if you’re spending it all. Even worse, you could be going backward and accumulating debt if you’re spending more than you earn.

Lifestyle creep is when your spending increases at the same rate as your income. Ideally, as you progress through your career your income will rise. If you’re able to minimize lifestyle creep and keep your expenses at the same level, you’ll be able to save and invest the excess.

Ultimately, how much you keep is far more important than how much you earn. Someone with a $50,000 income can wind up in a better spot than someone with a $500,000 income based on how much is spent and how much is kept.

2. Know Where Your Money is Going

Establishing a budget is common financial advice. A budget gives you control over the way your money is spent, which helps you to make the most of the money that you have.

While budgeting is important, it’s equally important to track your expenses. If you’re not tracking your expenses, you won’t know if you are truly sticking to the budget.

Knowing where your money is going is a critical aspect of managing your money wisely. If you haven’t budgeted or tracked your expenses in the past, it can be an eye-opening experience.

When you see how you are really spending money, you’ll probably be able to quickly identify a few areas where you’re spending too much and could easily cut back (with a little bit of discipline).

3. Avoid Impulse Purchases

Most people spend their money based on emotions. Impulse buys can be small things (like picking up a few items when you’re checking out at grocery store, or it can be bigger things like a timeshare.

Large impulse purchases can obviously have a damaging impact on your finances, but even the small purchases add up.

To get control over the small impulse buys you can commit to grocery shopping with a list, and sticking to the things on your list.

For larger purchases, get in the habit of waiting at least 24 hours (or longer, if possible) before making a buying decision. When you take time to evaluate the purchase based on all of the factors involved, you’ll often find that you don’t really want or need that thing that you almost bought. You’ll reduce buyer’s remorse and keep more money in your pocket.

To continue reading, please go to the original article at

https://www.freemoneyfinance.com/2019/07/15-personal-finance-rules-to-live-by.html

.More Money, Less Happiness: When Money Makes You Miserable

More Money, Less Happiness: When Money Makes You Miserable

By  Michael Laurence    August 2019   

Money, the conventional wisdom says, doesn't buy happiness. Modern psychology seems to back this up, with studies suggesting that beyond an income of $75,000, money doesn't make you any happier.

This conclusion is simultaneously obvious and counter-intuitive.

As an abstract principle, most us acknowledge that money doesn't buy happiness. But, at the same time, we all want more of something material — a nicer house, nicer vacations, the ability to live in a certain neighborhood or eat at fancier restaurants — that we think would make us happier. (If you're J.D., you think maybe season tickets to your favorite team might make you happier.)

So, we're left with a conundrum. Or, rather, a series of conundrums: Does income in excess of $75,000 make us happier? And if not, why not?

When Money Makes You Happier

In answer to the first question, I believe that all else equal — and as we'll see below, this is a huge qualifier, as things are rarely equal — more money generally makes you happier.

To be clear, money won't solve every problem. If you're lonely or bitter or angry, for instance, more money won't make you any happier. But just because money doesn't solve every problem doesn't mean that money won't solve any problems.

Money can make many things easier, or better. With more money you can:

Build a nest-egg.

Pay off your house or car.

Go on more vacations.

Have more kids.

Be a stay at home parent.

Eat better food.

Retire early.

With more money, you can do any number of other things that people enjoy and that make them happier. And if you're a victim of systemic poverty, more money can change your world.

As much as we pay lip-service to the idea of money not making us happy, it often does, and it's okay to admit this. It doesn't make us materialistic or greedy to want retirement savings, a nicer home, a paid-off car, or a trip to Europe.

When Money Makes You Miserable

Assuming that you buy the premise that (in theory) more money should (generally) make us happier, it raises the question of why (in practice) income beyond $75,000 annually doesn't make us any happier.

I think the explanation for this seemingly irreconcilable conflict is that most people spend the extra income poorly. Most people use money ways that make them less happy.

To continue reading, please go to the original article at

https://www.getrichslowly.org/more-money-less-happiness/

.8 Common Causes of Debt — And How to Avoid them

8 Common Causes of Debt — And How to Avoid them

By Tim Lemke

Debt plagues millions of Americans every day. It is such a common problem that many of us don't even think twice about what we owe, or how we landed in such a predicament.

The simplest explanation is that debt happens when you spend more than you earn. But it's not actually that simple when real life steps in. Unexpected events, bad planning, and even a decision to pursue an education can leave you facing big debt that may take years to pay off.

By understanding some of the main causes of debt, we can make better financial decisions in avoiding it. Let's take a look at some of the worst offenders.

1. Medical expenses

Medical costs have long been one of the leading causes of bankruptcy in the United States. Even those with health insurance are not immune to medical debt. An illness, injury, or health condition can cause bills to quickly accumulate.

The Kaiser Family Foundation found that three in 10 Americans report that they or a household member have had trouble paying medical bills in the past year — 58 percent of which were affected in a way that had a major impact on their life. More than 60 percent of respondents claim their savings were wiped out. Another 37 percent turned to credit cards.

It's not easy to predict how your health could change in the future. Actually, it's almost impossible. But putting certain safeguards in place can help mitigate the risk of financial ruin.

Health insurance is the first step. And while premiums can be expensive, facing an illness or injury without that coverage would be infinitely more devastating. (See also: The One Question You Need to Answer to Choose the Best Health Care Plan)

It's also critical that you build an emergency fund. This savings cushion should ideally cover six months' to a year's worth of your living expenses. If the worst happens, you'll at least have something to fall back on. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

2. Loss of income

Losing a primary source of income can severely hurt your bottom line. Maybe you were laid off or fired, or had a sudden decline in revenue for your business.

Maybe you needed to stop working to care for a child or older relative. Or perhaps your health took a turn, and you were forced to retire early or drop to part-time employment. When something like this happens, it's easy to find yourself overwhelmed by bills and expenses. Debt can quickly follow.

One of the biggest safeguards you can establish for yourself, again, is an emergency fund. Ideally, this fund can sustain you while you try to replace your lost income. Is your emergency fund as big as it should be?

It's also key that you try to live well below your means at all times, even when money is good. This means spending more on "needs" and less on "wants." This way, even if your income drops unexpectedly, you'll find it easier to get by at your current lifestyle without dipping into that emergency fund or creating new debt.

To continue reading, please go to the original article at

https://www.wisebread.com/8-common-causes-of-debt-and-how-to-avoid-them?ref=seealso

.12 Places to Keep Your Money Safe — And Growing

12 Places to Keep Your Money Safe — And Growing

By Tara Struyk

 Maybe you've heard a story like this: An entirely ordinary — and often reclusive — elderly person passes away, revealing the millions of dollars they have stashed away in their modest homes.

One Nevada man died to reveal a fortune, including gold bars and coins, worth more than $7 million. His bank account was found to be holding a meager $200.

In an age when there are so very many options for saving, investing, and managing our money, the notion that people still really do put cash under their mattresses is a bit hard to imagine.

Then again, if you've been faced with the task of deciding where to keep your savings, you've probably discovered it isn't an easy one, precisely because there are so many choices.

So where can you keep your money safe but still earn a decent return? Here are some key options.

Savings Accounts

They're simple, they're convenient, they're easy to find and they're perfectly safe in terms of protecting your principal investment. Because there is so much competition, you can also find a decent interest rate if you shop around. Just be sure to choose an account with no fees. Who wants to pay to save?

(See also: Why Savings Account Interest Rates Are So Low)

Who It's Best For

Those who prioritize liquidity (the ability to withdraw your money whenever you want it without restrictions) above all other conveniences. If you're looking to save for shorter term goals, or for an emergency fund, a savings account is a great option.

Money Market Accounts

This type of savings account tends to provide higher returns than a typical savings account, but that also has more restrictions on withdrawals and minimum deposits.

Some money market accounts even allow some check-writing privileges. These accounts are risk free in terms of losing your initial deposit and, like a simple savings account, are insured by the Federal Deposit Insurance Corporation (FDIC), which protects your deposits against bank failure.

Who It's Best For

Those who value safety and are willing to forego some convenience and accessibility for higher rates of return.

High-Yield Checking Accounts

Many checking accounts charge a monthly fee, but some checking accounts, often called "high yield checking accounts," actually offer pretty solid interest rates instead.

These accounts are typically offered by local credit unions and online banks and, as of July 2014, some offered interest rates as high as 5% — although there are quite a few caveats to scoring that kind of return. You can run a search of these types of accounts and what they offer at CheckingFinder.

Who It's Best For

Those who seek safety, reasonably good liquidity and don't mind jumping through a few hoops for a higher return.

Certificates of Deposit

A certificate of deposit, or CD, is a sort of IOU from a bank in which the bank agrees to pay back the amount you deposited plus a specific amount of interest within a certain time frame.

For example, if you buy a $1,000 CD with a 5% interest rate, you'll be owed $105 when the CD matures. Generally, you can't withdraw this money before the CD's maturity date without incurring a penalty.

However, CDs are very low risk and generally provide higher returns than a savings or money market account. (See also: The Basics of CD Laddering)

Who It's Best For

Those who are seeking a long-term savings vehicle and don't expect to need to access their savings immediately.

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