7 Smart Reasons Why You Should Have 4 Bank Accounts

Smart Reasons Why You Should Have 4 Bank Accounts

This is a simple method designed to help people build their savings. Not only is it easy to follow, but it is also adaptable and applicable to all income levels. There are many reasons why you should have 4 bank accounts. However, the most obvious is that it is an easy way to help you gain control of your finances and your future.

What Is the 4 Bank Accounts System?

1. A Checking Account to Pay the Bills

Your first account should be a checking account to cover your basic living necessities. It is also the one that you should deposit your paycheck into if your employer cannot split it between multiple accounts.

The money that you put into this account should only be used to pay your recurring monthly bills. This includes housing fees (mortgage or rent), utilities, transportation, insurance, cell phone, groceries, etc. You should figure out the exact figure by tallying up your bills and ensuring you leave enough in the account to cover all your living expenses. Don’t forget to include payments that happen at less frequent intervals as well, such as property taxes.

Depositing your money in this account first guarantees that the money will be there, ready to use when bills come due. You can also automate payments to avoid late penalties as well. Since this checking account should only be used for bills, you won’t need a debit card for it. Not having one will help you avoid the temptation to use the funds for other things.

2. A Checking Account for All Your Other Expenses

Your second checking account will pay for everything else, like entertainment costs, shopping trips, gifts, and small splurges. Look at this account as spending for things you want, but don’t need. You’ll want a debit card for this account since this will be your primary expense account.

3. A Savings Account for Emergencies

Everyone needs a rainy day fund for life’s expenses that you can’t plan for such as car repairs, medical bills, or unemployment. Therefore, you should set aside money every month to create a safety net. This will help reduce the financial impact of large, unexpected expenses down the line. Experts suggest keeping a fund that could cover three to six months’ worth of expenses. However, this money is only intended for emergencies. So, you shouldn’t touch the account until you need it.

4. A Savings Account for Financial Goals

Your last bank account should be a savings account that is specifically dedicated for larger purchases like a car, a down payment on a house, or a vacation. You may view this as a savings account for your long-term desires. Or, you could use it as a retirement account. Either way, it helps you build savings for the future. Depending on how ambitious your savings goals are, you may want to create separate accounts for each one.

7 Reasons Why You Should Have 4 Bank Accounts

1. It forces you to look at your monthly expenses and create a budget.

Shockingly, many people have never learned how to create and live on a budget. However, setting up these different accounts forces you to categorize your expenses and calculate a figure of how much you spend each month. The 4 Bank Accounts System is an easy way to correct any imbalances and establish your financial goals.

2. The 4 Bank Accounts System prioritizes your expenses.

As you calculate your expenses, you must look at each one and decide which account it goes into. While you go through this process, you also qualify each item as a necessary or non-essential living expense. If you aren’t reaching your savings goals fast enough, it will also help you decide which ones you can do without to get there quicker.

3. Having a dedicated account ensures that your bills get paid first.

Since your account for living expenses is the first one to get funded, you never have to worry about running out of money at the end of the month. And, there is no risk of having your utilities turned off or not being able to afford groceries. If you set up automated payments, it helps you avoid late fees as well.

4. It will give you a clear picture of your spending habits.

One of the top reasons why you should have 4 bank accounts is because it highlights your spending habits. It neatly divides your finances into categories and allows you to see how much you spend each month on non-essential things. The process can also show you areas where you can reduce spending and help you live below your means.

5. Multiple bank accounts make it harder to spend money set aside for other goals.

You are less likely to make withdrawals or use an account that you don’t have a debit card for. So, it’s easier to resist temptation since the money is out of reach. Additionally, it makes you think about what you are spending your money on. The truth is that most people are unlikely to go to the trouble of transferring money for impulse buys. Therefore, it helps you spend money on things you don’t need.

6. You consistently work towards your financial goals without even thinking about it.

When you deposit the money directly into your accounts, you create the habit of putting your financial goals first. And, you don’t have the chance to spend it. Furthermore, compounding interest accelerates your savings goals even more.

You can simplify it even more if your employer can deposit your paycheck into multiple accounts. Then, your savings plan can become completely automated.

7. It teaches you how to manage your money.

The sad truth is that many of us never received a proper financial education. This is a contributing factor for why so many people struggle to save and get out of debt. One of the best reasons you should have 4 bank accounts is that it teaches you the fundamentals of saving money. Not only is the system is easy to understand, but it will also quickly establish good savings habits.

The Bottom Line

People have thought up tons of challenges and systems to help people save money. However, the 4 Bank Accounts System is one of the simplest and most straightforward that I have encountered. But, the system only works if you remain consistent. Whichever method you will stick with is the best one for you.

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15 People Who Made Their Wealth Later in Life

People Who Made Their Wealth Later in Life

When Do People Make Their Wealth?

We all know the success stories of prodigies and young billionaires who made their wealth at an early age. However, the compiled research shows that it takes approximately 32 years to become a billionaire. This means most billionaires did not find immediate success. In fact, the average age of business founders is about 40. So, if you are still hoping to join Forbes’ list of billionaires, there is still time. Here are 10 people who made their wealth later in life.

15 People Who Made Their Wealth Later in Life

1. Donald Fisher (37) – $3.3 billion

Donald Fisher claimed his success as the founder of Gap Inc. after a career as a real estate developer. At 37, he launched the company in San Francisco by selling music and clothing. Eventually, he branched out across the United States and introduced affiliated stores Old Navy and the Banana Republic. At the time of his death in 2009, his net worth was $3.3 billion.

People Who Made Their Wealth Later in Life

2. Martin Lorentzon (37) – $5.5 billion

After university and time in Silicon valley, Swedish billionaire Martin Lorentzon went on to make several important connections and form multiple companies. However, it was his partnership with Daniel Ek that led to his billion-dollar idea: Spotify. Today, this music streaming service has over 365 active monthly users, with 165 million paying subscribers. He is presently worth an impressive $5.5 billion, but this is likely to increase as Spotify continues to grow.

People Who Made Their Wealth Later in Life

3. Amancio Ortega (39) – $80 billion

Due to his founding role with the Inditex group, the parent company of the famous fashion retailer Zara, Amancio Ortega is one of the wealthiest people in Europe, but also the entire world. Although his clothing lines have amassed this Spanish billionaire quite a fortune, he made his wealth later in life at the age of 39. While he is not currently listed as the richest man in the world, his investments earn him more than $400 million per year in dividends alone. Including all his business assets and real estate holdings, Ortega has a net worth of $80 billion.

People Who Made Their Wealth Later in Life

4. Dietrich Mateschitz (40) – $24.1 billion

As a former marketing executive, Austrian billionaire Dietrich Matechitz stumbled across his cash cow during his international travels. In 1984, he discovered an unusual energy drink called Krating Daeng and soon after went into business with Thai entrepreneur Chaleo Yoovidhya. With the introduction of Red Bull, they exploded into the market with extreme stunts and aggressive advertising campaigns.

It gained popularity across Europe and reached the United States, grabbing 75% of the market share in 1997. Their promotional cars and aircraft, sports sponsorships, and music label have expanded the brand even further. Today its products are sold in 171 countries. While the company is currently valued at just under  16 billion, or  $17.9 million. However, Mateschitz’s personal net worth is $24.1 billion.

5. Vera Wang (40) – $270 million

Vera Wang

This former figure skater turned fashion icon made her wealth later in life as well. After Vera Wang failed to qualify for the Olympics, she started at Vogue after college. She eventually became editor-in-chief of the magazine. Not only did she maneuver her way to the top of the corporate world, but also became a highly influential voice in directing fashion trends.

However, she made her fortune after she started designing her own gowns at age 40. Today, Vera Wang couture and clothing are highly sought after by the Hollywood elite. Moreover, they regularly appear on runways around the world. According to the Forbes list, Wang is currently worth $270 million.

6. Martha Stewart (40) – $400 million

Martha Stewart

In her early years, Martha Stewart was a stockbroker on Wall Street. After she discovered her true talents, she began building her brand. First, she owned a catering business, then published cookbooks, and founded her own magazine. Martha Stewart became a billionaire when her company went public in 1999.

However, things quickly went south for her. She served 5 months in prison for obstruction of justice and making false statements. Since then the company has been sold twice. However, she has rebuilt her reputation and her brand since then. According to Celebrity Net Worth, she is estimated to be worth about $400 million today. Martha Stewart is an unusual example of someone who made their wealth later in life, lost it, and managed to reclaim success.

 People Who Made Their Wealth Later in Life

7. Wolgang Marguerre (42) – $9.5 billion

You may be surprised to learn that the founder and CEO of Octapharma, one of the world’s leading manufacturers of blood plasma, did not strike it rich until he was well into middle age. At 42, he founded his company in Switzerland which has grown into a multi-billion dollar operation. It now operates production plants in six countries and earns annual revenue of $2.6 billion.

Although controversy threatened his company when journalists claimed Octapharma was exploiting and endangering peoples’ lives, it continues to thrive. There are more than 70 donation centers in the U.S. alone, the company nets billions in profit selling its products. And, Wolgang Marguerre maintains a personal net worth of $9.5 billion.

8. Sam Walton (44) – $15 billion

Sam Walton

Everyone knows the Walmart name, but not many know that Sam Walton didn’t strike it rich until well after 40. He claimed his spot on this list for founding the retail giant in 1962. After a successful career at JC Penney, he left to manage his own store at 44. One thing that set him apart from his competition was his emphasis on logistics. He took a single sporting goods store and created a global empire. Today his family is among the wealthiest people in the world. Their net worth far surpasses Sam Walton’s $15 billion when he died in 1992.

9. David Duffield (47) – $13 billion

David Duffield is the creator of several software companies including PeopleSoft, Integral Systems, and Information Associates. He made his fortune when his company grew to one of the largest software application companies worldwide. Eventually, Oracle bought out the company in 2005. Duffield is currently estimated to have a net worth of about $13 billion.

10. Henry Ford (49) – $200 billion

Henry Ford

Henry Ford founded Ford Motors and became one of the richest men in history. He began as an engineer for Edison Illuminating Company where he met Thomas Edison. When he discussed his idea, other engineers encouraged him to build the automobile. He eventually started his own business in 1899 introducing the Model T car. Since then, the Ford empire has expanded exponentially. At the time of his death in 1947, he had accumulated a fortune equivalent to about $200 billion today.

11. Charles Darwin (50) – $400 million

Charles Darwin

Charles Darwin is one of the most revered names among the scientific community. As a famous biologist and geologist, he had several significant contributions to academia. Although, the moment he set sail on the HMS Beagle his life changed forever. His findings during his voyage led to the theories of evolution and natural selection.

However, he didn’t make his fortune until he published the “Origin of Species” at the age of 50. Charles Darwin is also among the people who made their wealth later in life. He was worth approximately $16 million when he died in 1882, which is valued at slightly more than $400 million today.

12. Betty White (51) – $85 million

People Who Made Their Wealth Later in Life

Although many people know and admire Betty White as a comedic actress, they don’t know that she is another celebrity who made their wealth later in life. She has been a pioneer for both her work in front of and behind the camera. However, it was her role on the Mary Tyler Moore Show which launched her career at the age of 51.

White went on to star in many other famous sitcoms and movies, and continues to be among Hollywood’s most beloved actresses. Her current net worth is $85 million.

13.Taikichiro Mori (51) – $13 billion

Before Taikichiro Mori became a real estate mogul, he served as Dean of Commerce at Yokohama City University. Once he retired from the university, he used his knowledge to become a real estate investor. He went on to found the Mori Building Company which became wildly successful. Between 1991-1992, Taikichiro Mori was the richest man in the world. When he died, Mori’s net worth was estimated to be about $13 billion.

14. Ray Kroc (52) – $600 million

Ray Kroc

When Ray Kroc saw his golden opportunity, he was selling milkshake machines. After he met the McDonald’s brothers, he joined their company in 1954. There is much controversy surrounding his rise to success. However, no one can deny Ray Kroc’s influence in making McDonald’s a household name.

When he gained the company, he took it to heights that had never been imagined. McDonald’s is now worth more than $33 billion today and has locations in nearly every country. Ray Kroc was pivotal in launching the brand and was amply rewarded for his efforts. At the time of his death in 1984, Kroc was worth approximately $600 million.

15. Arianna Huffington (55) – $100 million

Arianna Huffington

Our last person on the list of people who made their wealth later in life continues on an upward slope. Arianna Huffington began her career as a successful author, columnist, and political commentator. Some have even called her one of the most influential and powerful women in the world because of her media platform and global reach. She founded the news publication Huffington Post which later sold to AOL for $315 million. Since then, she has been heavily involved in other successful companies such as Thrive and Uber. Today, her personal worth is about $100 million. However, her new endeavors could launch her to even greater heights.

 

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The Ugly Side of Amazon Subscribe and Save

 Amazon Subscribe and Save is a great way to save money on items you buy regularly Not only does it help your budget, but you can cancel at any time However, there are drawbacks to consider While it may seem like a good budgeting tool, there is also an ugly side of Amazon Subscribe and Save What Is Amazon Subscribe and Save? Thousands of items are eligible for this discount, and you can view them in the Subscribe and Save Store Browse a range of categories from groceries and household items to personal care products Choose which items you need, add them to your cart, select how often you need them delivered, and see how much you can save Your items will automatically ship based on the schedule you set What Are the Benefits? The discount varies between 5% and 15% They have several delivery schedule options from monthly to every six months You can postpone, reschedule, or cancel deliveries if you don’t need the item Free shipping on these items so you can bypass one of the largest fees of shopping online What Is the Ugly Side of Amazon Subscribe and Save? You are unable to lock in the price, so they may change between shipments Prices fluctuate and you may not realize it if you have automated payments and shipments Price spikes are a budgeter’s nightmare and can sneakily eat away at your monthly budget If you don’t realize there has been a price increase, you could be paying more than you need to or want to for a particular item Check you Amazon notifications, they will send a confirmation with the details of your order, including any price changes When you stay with a single seller, you could miss out on other deals by comparison shopping Although it was the best price when you joined Amazon Subscribe and Save, it might not be the best deal out there, could save more money if you shop in person as well If you cancel or postpone an item and your package has fewer than five items, you won’t receive the full discount How to Make the Most of Amazon Subscribe and Save Figure out which items you order most frequently, how much you currently spend, and decide if it is worth the savings Although it may not be worth it for cheaper items, applying it to more expensive household and personal products could save you a significant amount of money Compare prices with local stores and other sellers The convenience of having the items delivered may be worth paying a little more each month Edit your list and remove items that you skip again and again Best for non-perishable items that you can store if you don’t use them right away Paper products, cleaning supplies, pet food, diapers, toiletries, health and beauty products If you have at least five items delivered, you will receive a maximum discount of 15% Don’t just add items to fill the quota If you don’t use the products, then you are just wasting your money Make sure to read your emails and review the prices Check if prices have changed since the last shipment so there won’t be any surprises Apply Amazon coupons to save even more when you check out Clip virtual coupons, several lists around the web that lists eligible items for more discounts Read More 10 Things You Shouldn’t Pay For Record Setting Black Friday and Cyber Monday Sales 4 Qualities of a Good Online Store

People use Amazon to help them find the best deals and save money. Not only can you comparison shop between sellers, but you can also join Amazon Subscribe and Save. This is a great option for budgeters looking to save money on items they buy regularly. In addition to reducing your monthly expenses, you also have the flexibility to opt-out at any time. However, there are always drawbacks to any savings program. While it may seem like a good budgeting tool, there is also an ugly side of Amazon Subscribe and Save.

What Is Amazon Subscribe and Save?

Amazon Subscribe and Save is a service that offers bigger discounts when you agree to automatic deliveries from the same seller on a routine basis. Thousands of items are eligible for this discount through their marketplace. You can view them in the Subscribe and Save Store.

There are no fees to join. So, you can browse through offers in a range of categories from groceries and household items to personal care products. If you find a good deal, simply choose which items you need, add them to your cart, select how often you need them delivered, and see how much you can save. Then, your items will automatically ship based on the schedule you set.

What Are the Benefits?

The program has several benefits for frequent online shoppers. Depending on the size of your shipment, the discount varies between 5% and 15%. If you are ordering most of your groceries and health supplies online, this can save you a ton of money each month.

The Amazon Subscribe and Save program also has flexible delivery options. You can customize your schedule from monthly deliveries to every six months. If you don’t need the items, you can also postpone, reschedule, or cancel deliveries before shipment.

And, they offer free shipping on all eligible items. This allows you to bypass one of the largest fees and objections to shopping online.

What Is the Ugly Side of Amazon Subscribe and Save?

But, as with all things in life, there are two sides to every story. For every benefit, there are also drawbacks to consider.

You can’t lock in prices.

Even though you may agree to the price at the time you join, there is no way to guarantee you will get the same rate in the future. Prices fluctuate, and they may change between your deliveries. When prices decline, this is to your benefit. However, when they increase, you will be paying more for the same products. If you don’t realize there has been a price increase, you could be paying more than you think.

Although Amazon sends a confirmation email before shipment, you may miss price changes if you don’t read them. Most people would prefer to buy the same product from another seller who has a better price. But your delivery is on an automated shipping schedule, so Amazon will only cancel or edit orders when you intervene.

It doesn’t guarantee the lowest price.

Even though it may have been the best price available when you made the initial purchase, that doesn’t guarantee the lowest price on future shipments. Prices constantly fluctuate and new sellers are always looking for new customers. When you stay with a single seller, you could miss out on other deals by comparison shopping. Your regular order may not be the best deal out there.

Changing your order can affect your discount.

Although you may have received the largest possible discount on previous orders, canceling or postponing items could affect your savings. In order to receive the full 15% discount, you must have at least five items in the shipment. If you reduce your shipper and have less than five things in your cart, you will get a smaller discount.

How to Make the Most of Amazon Subscribe and Save

While you can’t deny the ugly side of Amazon Subscribe and Save, the trick is learning how to maximize its benefits to your advantage.

1. Review your budget to see if the savings make sense.

If you want to find out if the program is worth the time and trouble, you need to evaluate your expenses. Once you know which items you order most frequently, how much you currently spend for them, and compare prices, then you can decide if it is worth the savings.

Although it may not be worth it for cheaper items, applying it to more expensive household and personal products could save you a significant amount of money. However, you don’t want to pay more or receive items you don’t need. Therefore, you should review and edit your list before each shipment. Compare current prices and remove any items you don’t need.

2. It’s better for items that can be stored long-term.

The truth is that you will probably receive products more frequently than needed. Although this isn’t a huge deal for most items, it can equate to a lot of wasted money if you are ordering fresh produce.

So, Amazon Subscribe and Save is probably best used for non-perishable items such as paper products, cleaning supplies, pet food, diapers, toiletries, health and beauty products, and other things that will eventually be used.

3. Make sure you always have at least five items.

Another way to ensure you get the most out of the program is to ensure you meet the minimum standards. You need to have at least five items delivered to receive a maximum discount of 15%. But, you don’t want to simply add items to reach the quota. If you aren’t using the products, then you are just throwing your money away.

4. Review your shipment details.

Next time you get a shipment notification, don’t delete the email without reading it. Make sure you look at the details and review the prices. This is the time to make changes and ensure there won’t be any surprises.

5. Look for digital coupons.

If you love clipping coupons, then there is more good news for you. There are tons of sites and forums that share virtual coupons. You can apply Amazon coupons to save even more when you check out.

Although Amazon Subscribe and Save can help your budget, you need to know how to navigate the fine print to maximize your savings.

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Crowdfunding for Charity

How to Set Up Crowdfunding for Charity

Christmas is always a special time of year for my family, but probably not for the reasons you would expect. Sure, we get together and celebrate with all our usual traditions. However, the holidays are also a time to reflect on and share our blessings with others. So, every year my family chooses a charitable cause that holds special meaning for us and finds some way to support them. It is a good reminder of what the Christmas spirit is all about as well as the importance of giving back to the community. The birth of crowdfunding sites has opened up new possibilities and ways to help. If you are looking for ways you can contribute, here’s how to set up crowdfunding for charity.

What is Crowdfunding?

Crowdfunding is a simple concept that has helped people raise millions of dollars for different causes. Instead of trying to get a single large donation, it takes a more grassroots approach of asking for smaller donations from a large group of people.

The platforms provide a secure online portal where you can make monetary contributions. Several charities, social justice causes, startups, and individuals seeking assistance through hardships utilize crowdfunding to raise money. If you are looking for a way to give back, you can donate to existing non-profits or charitable organizations that support national and international relief efforts. Or, you can find an individual cause to directly help people you know.

How Do You Set Up Crowdfunding for Charity?

Although it is easy to fill out the required fields and launch your crowdfunding cause, it takes more to lead a successful campaign. You must implement a good strategy and get ready to put in a good amount of work to see results. You can’t just set it and forget it, then expect the donations to come rolling in.

When you take the role of organizer, you will need to set the goals for the crowdfunding campaign, share important details of the cause you are raising money for, and find a way to reach the maximum amount of people possible. One of the easiest methods of gaining support is to post links, pictures, and updates through your social media. The more platforms you use, the more people you can reach.

However, one thing you must remember is to pay attention to the fine print. There are rules and fees associated with each platform. And, they all operate differently. Some will charge a small percentage to use their platform and also regulate how and when the funds are disbursed. Make sure to read them carefully so they aren’t any surprises later on.

What Are the Best Crowdfunding Platforms to Use for Charity?

So, the big question is how do you choose which site is best when you are crowdfunding for charity? There are dozens of platforms to choose from, and more popping up every day. However, every crowdfunding site is not created equal.

The top crowdfunding sites provide easy setup and maintenance, but they will charge you for it. Platforms like Indiegogo and Kickstarter are among the largest and most popular because they are user-friendly. In only a few minutes, you can have it completed and ready to start spreading the word. And, organizers can quickly access the funds when they are ready to use them. But, they require a 5% fee to use their services. While GoFundMe has no platform fee, it charges transaction fees for debit and credit cards.

Sites like Mightycause are much better suited for nonprofits and charitable causes. They have some of the lowest fees, charging only 1.2% for processing fees. And although they don’t require you to meet specific goals, they will give you access to free tools to help achieve them.

The Best Crowdfunding Platform for Our Christmas Cause

The Cause

This year, my family decided to think a little bigger. We are rallying support for a group of people who are often overlooked. Although society considers them adults, 20% of children who “age out” of foster care become instantly homeless. As they formally enter adulthood, they lose access to every form of support they had as minors.

To put it lightly, these kids are often unprepared and ill-equipped to take care of themselves as adults. They face greater obstacles and have a higher risk of dropping out, unemployment, teen pregnancy, abuse, and imprisonment. So, youth centers, such as the Flite Center, provide support to local teens as they transition into adulthood. In addition to providing basic living necessities, they also offer career counseling, resource navigation, and assistance to find housing and education.

Unfortunately, these centers are severely underfunded and are always in need of support. Therefore, my friend, her community, and now all our social media contacts are banding together to put together gift baskets with Christmas stockings stuffed full of toiletries, gift cards, warm clothing, and other necessities to make their lives a little easier. To help us with this task, we chose SignUpGenius.

The Crowdfunding Platform

Although any one of the crowdfunding platforms can help you achieve your goals, it is important to find the one the best suits your needs. The primary benefit of this crowdfunding platform for charity is that it allows you to itemize your list and assign slots for volunteers to sign up. It gives more flexibility to those who are contributing and makes it easier for the organizer to meet the donation goals.

Instead of just sending money, the platform’s design allows you to choose what you want to contribute. After creating a list of items to include, we provided the link to purchase them in bulk. There are also options to purchase gift cards or pay for an entire basket. For those who find it difficult to make monetary contributions, there is also a request for handwritten Christmas cards that can be included with the baskets.

However, SignUpGenius has another huge advantage: the cost. While they do charge a set monthly fee, they will not require a percentage of the money you raise. The lowest package starts at $8.99 a month, but they do offer a free trial for their premium plans.

In addition to the financial savings, their site will also help us save a ton of time and energy in preparation. Now, we can focus our efforts on community outreach and informing everyone of how they can help. This Christmas, we want people to understand that family isn’t always the people that you are related to. Everyone in your community is part of your family. And as a community, we can support each other and make it even stronger.

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How to Sell and Recycle Old Electronics

How to Sell and Recycle Old Electronics

My family loves tech and gadgets. While my dad is the original collector with stereo equipment and early green-screen computers dating back to the late 1970s and early 1980s, we have built quite the collection of antiquated electronics. Although some of it is valuable, most of it is junk which is difficult to dispose of. And as I’ve come to find out, throwing them away is basically tossing money out the window. While the operating systems are completely obsolete, they are still in good shape. After doing a little research, I have discovered seven ways you can sell and recycle old electronics so they don’t end up at the local landfill.

7 Ways to Sell and Recycle Old Electronics

1. Trade-in Programs

One of the most convenient ways to get compensation for your old electronics is through trade-in programs. A quick online search will pull up several retailers who will give you cash, credit, or gift cards. While there may be a few local options, there are several national companies that offer to pay you for them.

  • Target offers gift cards when you turn in old laptops, phones, video games, and other electronics.
  • Best Buy allows you to trade them in for in-store credit. Or, if you want to trade up or use the credit for future purchases, you can mail them in for gift cards.
  • Amazon will pay you for your outdated devices.
  • Apple’s Recycling Program also offers gift cards. However, it is limited to Apple products only.

2. Sell Them Online

Another way to earn cash for your electronics is to sell them yourself. If your devices are still functioning well, you could try to advertise them online or through local marketplaces. You are more likely to get the maximum value if you sell it yourself, but it could take a while to find a buyer.

The best sites and marketplaces to post your items are Craigslist, Facebook Marketplace, eBay, or Amazon. Craigslist and Facebook Marketplace are more local, so they require face-to-face transactions. These are usually cash only and won’t have shipping fees unless you offer the option. On the other hand, eBay and Amazon help you reach a wider market and improve the chances of finding a buyer. But, they also take a percentage for using their platform.

If you decide to go this route, you should cross-list items in several places to cast the widest net possible.

3. Use a Direct-Buy Used Electronic Sites

Unfortunately, most people don’t have the time or patience to deal with private sales. So, if you don’t want the hassle of advertising and meeting with potential buyers in person, you should check out direct-buy sites for used electronics.

Amazon, Gazelle, and Decluttr give you access to trusted buy-back programs for your electronics. All you have to do is send them your old electronics. Once they receive them, then they will evaluate the value and send you compensation.

4, Check with Local Repair Shops

Sometimes local repair shops will buy used laptops and phones for parts, or repair them and sell them for a profit. So, even if your devices are old and well-worn, they still hold value.

Check with repair shops in your area to see if they can scavenge parts that are still valuable and compatible with other devices. They may offer you cash or trade-in credit, depending on what components they can get from your old electronics. Even if they don’t, repair shops are usually willing to dispose of them for free.

5. Pass Them on to a Friend or Family Member

Perhaps you know someone who needs a laptop or phone upgrade. Accidents happen all the time, and electronics are expensive to replace. Try asking around to see if anyone is looking for a temporary fix until they can afford something else.

Many people insist on giving you something, but you may have the opportunity to help someone you care about who is facing a tough financial situation. This is a good option if it is the first cell phone or laptop for a student as well. If they have a used or older device, there is less fear of damaging or losing it since it isn’t the latest and most expensive one available.

6. Donate Them to a Good Cause

In some instances, helping the less fortunate is more important than getting a good price. If you want to donate your outdated electronics to a good cause, you can look into local chapters of these organizations.

Many shelters and programs that assist veterans and victims of domestic violence gladly accepted older phones. There are also non-profits and charitable organizations that always need electronic upgrades. You can also call around to schools, shelters, churches, and other charities that may have a use for them. Donating them is a great way to give back to your community, instead of trying to sell or recycle your old electronics.

7. Safe Disposal and Recycling

However, if the devices are too far gone, it may be best to just scrap them. You can save yourself time and trouble by finding a place to safely dispose of them.

Many electronic retailers and recycling services will accept old electronics and get rid of them for you, free of charge. All you have to do is find designated kiosks inside stores like Best Buy where you can drop them in. Or, you can usually drop them off at the customer service desk, and they will make sure the devices are properly handled.

Before You Sell and Recycle Old Electronics…

Before you hand over any of your personal devices, make sure you wipe or destroy the hard drive. Many recycling centers do this for you, but it’s always safer to do it yourself. You don’t want your personal information floating around, or give anyone access to important documents that could leave you vulnerable to fraud or identity theft. So, if the hard drive has nothing on it or has been destroyed, you know your information is secure when you sell or recycle your old electronics.

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How to Protect Your Portfolio Before a Recession

How to Protect Your Portfolio Before a Recession

 

Every type of investment comes with risks. However, there are many steps you can take to insulate your investments against market volatility. Here are seven ways you can protect your retirement savings and portfolio before a recession.

7 Things You Can Do To Protect Your Portfolio Before a Recession

1. Accept the fact that recessions happen.

No matter how well you plan, you can never escape risk. Market volatility is an inherent part of investing. So, periodic crashes are just the nature of the beast. According to the National Bureau of Economic Research, there has been a market recession every ten years (sometimes more frequently) since 1858.

It can be tough to ride out the highs and the lows of the stock market. However, you have to accept that every few years, the market will inevitably dive. These are natural, self-correcting mechanisms that counteract long periods of market gains. But, the ebb and flow of the market mean it will stabilize eventually. Although you can’t predict when it will happen, you can monitor signs and prepare for it.

2. Know your risk tolerance.

Before you even make your first investment, you must know what level your risk tolerance is. This varies for every investor based on their financial goals, job security, timeline, and general attitude towards money. Therefore, every brokerage and financial advisor will ask you to complete a questionnaire to help you determine what type of strategy works best for you.

The type of investments you choose depends on your risk tolerance. People tend to become more conservative as they near retirement age since they have less time to recover from losses. However, if you already have a conservative approach or find it difficult to stomach drastic market fluctuations, it may be better to go with investments like bonds, real estate, and large-cap stocks that are less volatile.

3. Keep an eye on the bigger picture.

One of the most common mistakes amateur investors make is trying to time the market. Don’t waste your energy or capital trying to time different sectors. Instead, keep an eye on the bigger picture and stay with your long-term strategy. It can be hard to ignore the daily rises and falls, but don’t get distracted by the latest trends. Remind yourself why you chose your specific investments.

When you see large fluctuations, you must regulate your emotions. The last thing you should do is panic and make impulsive decisions about your portfolio. The more practical solution is to create a strategy to scale back your risk. If you try to micromanage your portfolio, it could cost you even more.

Most financial advisors will tell you to ride it out so you don’t lock in the losses. Then you will have the chance to recover. History has shown that people who hold their investments through a recession have portfolios that almost always recuperate their losses. Trying to outrun a bear market usually results in people selling their shares and then rebuying them later at much higher prices

4. Diversification is key to surviving a recession.

Although diversification is a common strategy, it shouldn’t be overlooked or undervalued. It is one of the most important methods to protect your investments on the brink of a recession. When you put your eggs in many different baskets, the gains in thriving markets will offset any losses other industries are experiencing.

When you diversify your portfolio, not only should you maintain different kinds of investments, but also investments in various industries, companies of different sizes, and multiple geographic locations. Time and again, it has proven to be a good way to ensure your portfolio stays balanced and profitable, even during a recession. You may need to do this yourself, or you can choose funds that automatically diversify your investments for you.

5. Evaluate and rebalance your portfolio.

While it is wise to evaluate and rebalance your portfolio regularly, it is even more important before an economic downturn. Look at the composition of your portfolio and decide if you need to reallocate funds to protect your portfolio before a recession.

The traditional model of 70/30 where 70% is invested in stocks, 30% in bonds works for most investors. However, other investors opt for a different strategy of 50/20/30 where they invest 50% in stocks, 20% in bonds, and the remaining 30% in real estate. It offers greater diversification and security when the market dips.

You can also limit your exposure by selling riskier assets. At the first signs of a recession, herd instincts are to get out of the equities market completely. But, if you do this, you will miss some valuable opportunities. Therefore, fixed-income investments are usually a better option for more risk-averse investors. U.S. treasury bonds, utilities, consumer staples, commodities, and companies with a long, established history are more likely to weather a recession. Dividend-paying stocks will also guarantee steady cash flow and offer more stability through economic downturns.

6. Invest your money in uncorrelated markets.

Another way to protect your portfolio before a recession is to invest in uncorrelated markets. Look for commodities or assets that don’t fluctuate in tandem with the stock market. This is a great way to hedge your bets and help your portfolio remain profitable even during a recession. Uncorrelated markets, such as real estate, hold their value over time. So, you will be able to maintain consistent returns even when several sectors are suffering losses.

7. Be open to new opportunities.

Although your instincts may tell you not to invest during a recession, making regular contributions will help you continue to build towards your retirement goals. Just because your portfolio is less profitable doesn’t mean you should stop investing.

The silver lining of a bear market is that market crashes can also bring new investment opportunities. Even if share prices drop, they will likely recover over time. If you are in a stable position, buying on the dip could turn you a huge profit. If you choose the right stock options, you are setting yourself up for success when the market rebounds.

There is no way to time it perfectly, and prices could continue to drop. Therefore, you should set an investing threshold so you know your limits and how much capital you are willing to gamble with.

Sticking with Your Strategy

Ultimately, nothing is recession-proof. Even when people claim to have the market beat, ignore the hype and do your research. Most importantly, resist the urge to try to time your investments to beat the market. There is no magic, crystal ball. Focus on the long-term and stick to your investment strategy. If you have any questions about how to limit your exposure to minimize risks, discuss your options with your financial advisor.

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3 Reasons Why You Should Insure Your Body Parts

3 Reasons Why You Should Insure Your Body Parts

Purchasing policies for specific body parts is not a typical topic of conversation in the insurance world. Although in most cases it is celebrities who want this kind of coverage, there are also instances in which other people could benefit from it. For example, if your income depends on the use of a particular appendage or body part, it could affect your livelihood. Therefore, here are a few reasons why you should insure your body parts if you fall into this category.

3 Reasons You Should Insure Your Body Parts

While it might seem like a strange notion to you, many people have insured their body parts in the past. Certain careers, such as athletes, entertainers, and artists depend on their skills or appearance to earn an income. Here are some of the most common reasons why people have decided they should insure their body parts.

1. You want to protect your assets.

Without a doubt, entertainment companies are willing to shell out big bucks to insure their cash cows. This is even more important if the celebrity is known for a trademark feature or aspect of their appearance. Whether it is Julia Roberts’ smile or Tom Jones’ chest hair, these entertainers are instantly recognizable because of them. So, it makes sense to protect your source of income. As former playmate Holly Madison said after insuring her breasts for $1 million, they are important “assets.” If anything would happen to them, it would affect their ability to work and bring in income.

Looking at it from the professional sports franchises’ perspective, each athlete is vital for their business to make money as well. If their all-star athletes aren’t able to play, they lose money in ticket and merchandise sales. Therefore, sports teams often have a general disability policy if their stars have an accident that keeps them from playing. These types of policies are available from most standard insurers. However, you will need to find more specialized insurance companies if you want to insure a body part. Athletes like David Beckham and Cristiano Renaldo did exactly this, insuring their legs with multi-million dollar policies to protect the assets that helped make them famous.

2. You will have disability insurance should you have a career-ending injury.

One of the most important reasons why you should insure your body parts is because the policies provide coverage in case of death, damage, or dismemberment. Not only do people want to protect their assets, but also make sure they have a source of income if they have an accident or career-ending injury. Taking out disability insurance for specific body parts would supplement their income if they are no longer able to perform their craft or skill that they depend on to earn money. Actors and models purchase policies to protect their appearance while athletes insure the body parts they rely on to play at the professional level.

However, they aren’t the only occupations that can benefit from customized insurance policies. Musicians and artists sometimes insure their hands or vocal cords in case they can no longer perform or create. Chefs and wine tasters have also been known to insure their taste buds as well. If they were to lose their sense of taste or smell, it could cost them their entire livelihood.

3. It could generate more business with free publicity.

Another reason some people suspect that celebrities insure their body parts is to generate publicity. As ridiculous as this may sound, stories like this grab headlines and get people talking. If the story stirs up enough buzz, it creates a lot of free publicity.

In fact, a supermarket in the UK used this publicity stunt to generate more income. They insured the taste buds of their senior wine buyer for 10 million pounds (about $17.3 million). What seemed like a crazy idea turned into a huge profit for them. The story was picked up by three magazines and six national newspapers. Then, following the story, the supermarket’s wine sales increased by 19%.

Some have suggested that celebrities do this as well. While the rumor has never been confirmed, there was gossip that Mariah Carey insured her legs for $1 billion. However, the timing happened to coincide perfectly with the beginning of her “Adventures of MiMi” tour. Whether the rumor is true or not, Carey still made $27.9 million in box office sales that tour.

How Do You Insure Your Body Parts?

Although these insurance policies aren’t exclusively available to celebrities, they do cost more than the average person can afford. These are not your standard insurance policy. They will personalize it to each client’s specific needs. So, you should expect to pay a high price for their attention to detail.

If you decide to insure your body parts, options are limited. Most people who want to insure their body parts must consult with one company that has become internationally known for selling specialized insurance. Lloyd’s of London has provided some of the most famous insurance policies for celebrities for over 100 years. One of the first celebrities to seek such a policy was silent film star, Ben Turpin, who bought $25,000 of coverage to insure his crossed eyes. However, they continue to sell specialized policies today to many celebrities worth millions of dollars.

The Most Expensive Body Parts Ever Insured (Reportedly)

Even though it is possible, it is still not common practice to insure body parts. However, several celebrities have gone to great lengths to protect their assets. Here is a list of the ten most expensive insurance policies (reported but not confirmed) ever purchased.

  1. Mariah Carey’s legs – $1 billion
  2. J-Lo’s butt – $300 million
  3. Cristiano Ronaldo’s legs – $144 million
  4. David Beckham’s legs – $70 million
  5. Michael Flatley’s legs – $40 million
  6. Julia Robert’s smile – $30 million
  7. America Ferrera’s smile – $10 million
  8. Daniel Craig’s body – $9.5 million
  9. Tom Jones’ chest hair – $7 million
  10. Bruce Springsteen’s voice – $6 million

The celebrities have made headlines with their unusual insurance policies. However, this list is likely to expand and change as more people decide to view their bodies as assets worth insuring.

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Buy Once Cry Once Mentality in Budgeting

 

Buy Once Cry Once Mentality in Budgeting

Most people know that the purpose of budgeting is to help you take control of your finances. The first step in doing this is creating a monthly budget. First,  you figure out how much you make each month. From that, you monitor what you spend and deduct it from your total income. Many people look for ways to reduce their expenses as much as possible. But, is that the best approach to budgeting? Some say buying quality over quantity is more cost-effective. The ‘Buy Once, Cry Once’ mentality in budgeting may cost more upfront but can save you a ton in the long run.

What is the ‘Buy Once, Cry Once’ Mentality?

Buy Once, Cry Once is the idea that you value quality over price. It means that you can purchase something one time for a higher price, and it will withstand the test of time. Believe me, I understand the importance of cutting corners here and there to save a buck. I used to be the type of person who never paid full price for anything. But after seeing the bottom line of buying multiple cheap items, the ‘Buy Once, Cry Once’ mentality is now ingrained in me.

Invest in Quality Clothing

For example, I used to buy cheaply made clothing from the large box stores to save money. My closet was full of items from the bargain bins and discount racks. However, within a year, the new items started to look worn or would fall apart and need repairs. Instead of buying a cheap, poorly made winter jacket for $20, look at purchasing something from a quality brand.  Yes, it might cost five times as much. But, you get what you pay for. So, chances are it will last you five times longer than the more economical option. And honestly, you’ll be happier with it in the end.

Don’t Settle for Cheap Knock-Offs

Another example would be buying an expensive appliance. Many high-end appliances like air-fryers and insta-pots have flooded the market, but the appeal comes from their longevity. I use both these appliances several times a week, and they are still working as well as the day I bought them. Sure, you could spend less on a knock-off, generic product. But spending more on a quality appliance will save you money in repairs and replacement costs. You buy the appliance once (and cry because of the high price), but then you have a well-made product that will last you for years to come.

Cheap Vehicles Often Lead to Costly Repairs

However, the most obvious application of the Buy Once, Cry Once approach to budgeting was when I bought a used vehicle. Several years ago, I was looking for a new car. However, there was no way I could afford high monthly payments. So, I found a used vehicle from a private seller. On the surface, everything looked clean and functioned well. But, within a few months, I experienced one costly repair after another. In total, I spent nearly as much on repairs as I did on the vehicle. Had I increased my initial budget, I could have bought a more reliable car that didn’t require so much maintenance.

Buy Once, Cry Once Mentality in Budgeting

So now that we have wrapped our heads around the ‘Buy once, Cry once’ mentality, how does it fit into budgeting?

If you ascribe to this mantra, then you know your budget is going to take a substantial hit upfront. After all, paying for quality is not a new idea. In terms of budgeting, you should look at the expense as a one-time expenditure. When you plan for a large purchase, you can adjust your budget so you don’t overextend yourself. Going back to the example of buying a new winter coat, you would put aside extra money in the budget around November/December to accommodate the extra expense.

Think of it this way; a one-time expense for a quality item usually turns out to be a better value over time. Rather than having to budget to purchase lesser quality items more frequently, you invest in better-made items that you only have to buy once.

However, if you are making a larger purchase like a car that is bigger than your entire budget, it will probably require a loan. But the Buy Once, Cry Once theory still applies. Although you have larger monthly payments, buying a better quality vehicle will save you money in labor and repairs.

How to Get Quality at a Lower Cost

Even though you are going to spend more upfront with this approach, you can still find quality at a decent cost. Just because you want to buy quality products does not mean you have to buy the most expensive option. You can save a lot of money by doing some research before you spend anything. Compare product reviews and shop around for the best deals. Depending on what you are shopping for, you can likely find excellent deals with seasonal offers.

 

Another way you can stretch your budget is to find second-hand items. With online marketplaces and sales becoming more active than ever, there is a good chance you can find used products for a great price. If possible, take some time to explore used options before you blow your monthly budget.

Conclusion

Shifting your mindset to purchase something based on quality over price will reap many financial benefits over time.  The ‘Buy Once, Cry Once’ mentality in budgeting may be hard to grasp at first. But once you embrace it, I can assure you that you’ll ultimately be more satisfied.  By creating a free monthly budget, you too can be on your way to financial independence.  

Budget Smart, Invest Wise

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

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5 Financial Benefits of Deleting Social Media Apps

5 Financial Benefits of Deleting Social Media Apps

Without question, social media has changed how humans communicate. While we now have access to a global network of people and information, constant communication also subjects us to a constant bombardment of advertisements, notifications, and promotional offers as well. For these reasons and more, many people announce that they are taking social media cleanses to detox from its negative side effects. Even if you don’t feel the need to declare it to the world, taking a break from social media for even 24 hours could be good for you. In addition to its mental health benefits, people are discovering that there are many financial benefits of deleting your social media apps as well.

What Are Some of the Financial Benefits of Deleting Social Media Apps?

1. It Removes the Temptation to Spend.

When I began clearing my home screen of social media apps, I didn’t realize how it would affect my spending habits. With so many embedded advertisements, I was frequently diverted to sites I never intended to visit. And, although I hate to admit it, also spend money I never intended to part with. My increased monthly savings was the most unexpected financial benefit of deleting my social media apps.

Deleting these and other mobile shopping apps I frequently use took away the temptation to spend. It’s as simple as the press of the button to have things delivered to your front door. When I saw the apps every time I opened my phone, it was harder to resist impulse buying.

Once I became aware of this bad habit, I also realized I was making unnecessary in-game purchases with some of my mobile gaming apps as well. Removing all of these has saved me a significant amount of money each month.

2. You Have Less Exposure to Targeted Advertising.

Speaking of embedded advertisements, social media apps are littered with them. The banner and pop-up ads are hard to ignore. And, if you spend hours each day scrolling, they become ingrained into your subconscious when you see them over and over again. This marketing strategy has proven so successful that 76% of people say they have bought something they saw in a social media post. Furthermore, many of the respondents said they didn’t even intend to buy anything before they made the purchase.

It has become even more effective since social media uses your search history to target items you have shown an interest in. If you have looked it up multiple times, they will continue to show you more ads. The more you see something, the more likely it becomes that you will buy it. So, reducing your exposure to marketing and advertisements can help you avoid spending money. This is good news for your wallet and your monthly budget.

3. It Makes You More Productive at Work.

Facts are facts. Most of us spend hours every day scrolling through social media. If you don’t believe me, check your screen time tracker. Not only will it show you have much time you spend on your phone every day, but it will also tell you which ones are your biggest time-suckers.

If you are constantly getting notifications or checking your phone at work, it can become a huge distraction. And, it could be affecting your overall job performance. By deleting the apps from your phone, you can greatly improve your productivity. Who knows…maybe if you aren’t so distracted, you’ll finally feel motivated to go after a raise or a promotion.

4. The Extra Time Can Help You Increase Your Income.

I can’t speak for others, but I was shocked to see that I was spending upwards of 4-5 hours every day on social media. Although I always complained that I never had enough hours in the day, now I had evidence why. The time we spend looking at the latest posts could be put towards more productive pursuits.

Instead of wasting this time on social media, I wanted to use it to improve my financial situation. I started by taking advantage of new opportunities and became more serious about investing. As I looked at ways to earn passive income, I finally found the courage to start my own business. Although this is how I chose to use my reclaimed time, you could use it to learn a new skill or earn a specialized degree that will increase your income.

5. It Becomes Easier to Focus on Your Goals.

Possibly the most impactful financial benefit of deleting social media apps was that it become easier to focus on my goals. Sure, there were times I felt I was missing out as my friends posted updates of their vacations and new purchases. However, reducing my exposure to other people’s irresponsible spending habits also reduced comparisons and envy.

Not having those incessant reminders allows you to reset your priorities and focus on what and who is most important. For me, removing the temptations to use social media made it is easier to achieve my financial goals.

Don’t Forget About the Health Benefits of Deleting Your Social Media Apps Either!

In addition to all the financial benefits, we can’t forget to mention the mental health benefits as well. Once I deleted the worst offenders from my phone, my sleeping habits immediately improved. I felt more energized when I woke up and less drained at the end of the day.

Psychologists have also noted that it can reduce your anxiety levels. By removing the obligation you feel to stay in constant communication, you eliminate the stress it creates. This allows you to relax and truly live in the moment. And, when we spend less time looking at our phones, we are able to focus on other, more personal modes of communication.

Although it may not be necessary to do a social media detox, taking a step back from our daily routines can give you a new perspective and appreciation. Going forward, I know that I can take a step back and then ease back into whenever I feel the need. However, once you begin noticing the financial benefits of deleting your social media apps, you may decide to take a permanent hiatus.

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The Biggest Lies About Growing Wealth

The Biggest Lies About Growing Wealth

From an early age, there are several myths and lies about growing wealth that are drilled into our memory. It can be difficult to break free from this way of thinking. However, some of these misconceptions are based on outdated ideas and limited perspectives. Here is a look at some of the most common lies still being circulated.

5 Common Lies About Growing Wealth

1. Businesses Break Even in the First Year.

There is a common misconception among new business owners that you will be an instant success. However, in reality, plans get delayed, unexpected expenses arise, and it takes time to create a market presence.  According to Forbes, the timeline to achieve profitability is closer to 18-24 months. Furthermore, 25% of new business ventures fail in their first year.

The truth is that instant success is very rare. While entrepreneurs are waiting for their breakthrough moment, you must be willing to wait it out, lose money, or even walk away from a failed venture. Many successful businessmen will tell you that had several failures before they finally prospered.

2. All You Need Is a Good Idea.

This mantra lies at the heart of the American Dream that anyone can get rich with the right idea. This is one of those lies about growing wealth that perpetuates itself because there is some truth in it. Unfortunately, not every great idea meets a market need or consumer demand. Not only must the idea be feasible and practical, but most importantly it must be profitable. If no one wants to buy your product, then it will never be successful.

The execution and timing of your business’s launch are also crucial. When you are first finding your legs, expect to invest a ton of man-hours to get it off the ground. You should also make sure you have enough savings to cover your bills and give yourself a cushion. This will allow you to breathe a little as you wait to gain a foothold and break even.

3. You Need High Returns and Savings to Grow Money.

Another myth about growing wealth is that you need high returns and savings to grow your wealth. However, most financial planners will tell you that making steady contributions is a more efficient strategy. Consistent savings is more important than stumbling upon a good investment opportunity. But, don’t ignore a good opportunity when it comes around.

This is also a great lesson to pass on to the next generation. Remember, it is never too early to begin saving and investing. Time is a valuable asset; the sooner you begin, the more money you earn from compounding interest. Even if you start small, you can let your money begin working for you.

4. You Need a Loan to Start a Business.

One of the greatest pitfalls for potential business ideas is the idea that you need a loan to start a business. While some entrepreneurs have a significant amount of startup capital, most just start where they are at and build from there. Instead of quitting your job and focusing solely on the new business, perhaps it is wiser to keep your day job. This will provide a safety net while you establish yourself. Once your business can sustain itself, then it may be time to consider making it your sole source of income.

5. You Can’t Get Rich Off Your Salary.

Another lie about growing wealth is that you will never get rich just off your salary. Although it may be difficult to build enough savings for retirement on your salary alone, you can begin using it for steady investments from an early age. If you invest small portions of your salary, over time it will grow exponentially. The key is to make consistent contributions at regular intervals to ensure steady, continued growth. Diversification will also protect your nest egg and mitigate long-term risks.

The Secret to Growing Wealth

The truth about growing wealth is that there are many roads that can lead you to the same goal. There is no carefully guarded secret among the wealthy about how to get rich. Yet, increasing your wealth begins with the same fundamental lessons. Unfortnately, most people are not willing to take the necessary steps to get there. Instead, they choose to ignore their finances and bad habits rather than taking control of them. Growing your personal net worth doesn’t need to be complicated. But, it does require you to take action.

The first step is to determine what your financial situation is. Once you know where you are at, it makes it easier to determine where you want to go. You can start by tracking your spending and sticking to a budget. This basic exercise can help you identify areas for improvement. If you aren’t living below your means, you will never add to your net worth.

Although this is the first step in building wealth, it is not enough to merely break even. Once you learn to live below you means, the next step is to start saving and investing your money. Every extra dollar you have at the end of the month should be put to work for you. Budgeting apps and tools can help you determine how much you need to set aside each to achieve your financial goals.

The final and most critical key to financial success is consistency. It’s starts by creating healthy spending and savings habits. Then, it requires you to continue prioritizing them over large, unnecessary expenditures. Making regular contributions to your savings account and investment portfolio will ensure steady and long-term financial growth.

Final Thought About Growing Wealth

When you are making important decisions about your finances, consider your sources. Advice is freely offered with the best of intentions. However, you should take time to do your research and learn to decipher fact from fiction. Identifying lies about growing wealth is a good place to start. And remember, when in doubt you can always seek out professional advice to find the best ways to grow your personal wealth.

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