Main causes of financial problems

8 Reasons for financial failure

To fight financially? Many people are, although they give everyone the impression that they have done everything. They work, live in a nice house and drive a nice car, but they live from day to salary. Here are 8 main causes of poverty in the first world.
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Living beyond your means

There is no way out of it. If you spend more money than you earn, then you need to get extra money from somewhere and this almost always means borrowed money, also called buying a loan. All this has costs and this is called interest. If you have a habit of buying things on credit, then the interest you pay throughout your life will increase to a fortune. Interest is sometimes called dead money because you have nothing to show for all the interest you pay.

Think about what you could spend with all this interest. It’s almost too painful to even think about, but if you want to avoid poverty, then you have to get your head out of the sand and face the facts; your financial future depends on it.

In step with Jones

Some people try to deal with their peers with whatever they spend their money on. This is a compulsion that will cost you a lot. Realizing an image of yourself will seriously impair your finances and will be costly until you stop working. You may think that your peers are doing well financially to afford these things, or you may even think that they have done well for themselves, but what you do not know may surprise you. That they may be in debt to the eyeballs. Even if they live within their means to finance their lifestyle, this does not mean that you have to keep up with them.
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Do not enjoy people and meet the expectations of others, live according to the right course of action for your circumstances and you will be far happier.

Consumer debt

Consumer debt, or dumb debt, as it is often called, is buying things with borrowed money. He spends tomorrow’s income today. Debtors usually do not forget what happens to the so-called things they bought on credit; that their newly acquired belongings cost less the minute they bought it. This is a crucial factor to consider; The money owed on the item is always more than what the item costs. No one is covered by the debt and poverty cycle so much, and not just those on lower incomes; in fact, middle-income people are prone to this trap.

Commercial greed

Commercialism in the 20th century brought much prosperity; provide jobs and create countless businesses, but there is another country. The world’s first poverty caused by an insatiable appetite for things. People are not just satisfied with the things they need, but continue to want more. All this has to be paid, this is money that could be used to build a financial base for their future.


Addictions are very expensive; just ask all smokers. You don’t have to be a mathematician to calculate how much cigarette smokers pay for their addictions. It is valued at over $ 100 NZ per week. This equates to five grand per year and fifty grand per decade. No wonder many smokers are broken. It’s the same with those who are addicted to alcohol and so far.

Financial illiteracy

Financial illiteracy is the main cause of financial poverty, and not only low-income people are financially illiterate; high-income people may also be to blame. You hear stories of successful sports people who have earned millions during their heyday but are broken years after retirement. It is important to save and invest your money during the years in which you earn best to set you up when you no longer earn that much.


Failure to take responsibility for one’s own finances is irresponsibility. They will come up with all sorts of excuses for not joining the kiwisaver or contributing. Excuses like, “You can’t take everything with you,” “I could die before I retire,” or “I’m just young.” People who are irresponsible with their finances tend to be irresponsible in other areas of their lives. Making commitments, whether in a relationship, owning a house or a car or saving for retirement, takes responsibility, and that’s what separates men from boys.

Bad company

There is no doubt that bad company is the main reason why so many people live in poverty. It says, “You’re the average of the five people you spend most of your time with,” so it’s worth checking who you’re dating and asking if their attitudes and opinions about finances affect your money habits. To grow, you need people to help and encourage you. This sometimes means separation from bad company. Some find this difficult, but in the long run it’s worth it.


Which cash flow quadrant are you in?

Most people have no idea about cash flow quadrants. Are you one of them? If so, no problem. Today we will look at the same ones that have divided the entire population of our world into different classifications. These cash flow quadrants are:

E quadrant: You have a job and you work as an employee in a company / organization

S Quadrant: You are self-employed and own a job

B Quadrant: You are a business owner and you have a team to work for you

Quadrant I: You invest money in different businesses and the money works for you

This gives you a very clear idea of ​​what classification you are in and the financial situation you currently have. Mostly these four quadrants have four different attitudes and values. Many people will be surprised to learn this. Let’s look at it in detail:
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E quadrant:

E means “employee”. More than 65% of the world’s population falls under the E quadrant. These people work for others. You have heard the elders advise you: study from the heart, have good grades and grades and you will get a beautiful job. Earning a high-profile degree such as an MBA, engineering, etc. is considered necessary to obtain a high-paying job.
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Now no matter how big a scale of work you have, but that would be just a job. Whether you have the seat of an executive director or a clerk, you will be appointed in accordance with certain rules and regulations. Both executives and employees receive a salary at the end of the month and privileges along with it. However, there is a hell of a difference between the level of a high-ranking officer and a clerk, but one thing is exactly the same: if you stop going to the office for some reason, you will no longer receive a salary.
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Also, a fixed salary is sufficient only to cover monthly expenses, savings as mutual funds and / or purchase of shares on the stock market. This cash flow quadrant provides you with security and a stable salary every month to keep you satisfied. But have you ever thought that this security is only a temporary thing? The money comes only if you continue to go to the office regularly. If you are fired or retired, no more salaries will arrive. In addition, you cannot continue to work in old age. You need to do something about retirement before it comes. Therefore, job security is only for the time before retirement.
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S quadrant:

S means self-employed or small business. People who work for themselves and own this job fall into this category. For example, you run a store / store or website on a small level or on your own. This quadrant brings more satisfaction and freedom because you don’t have to work for someone else. You’re your own boss. However, it is also like the E quadrant. You or your staff need to work to keep the money coming. Therefore, people in this quadrant are also forced to work constantly.
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B quadrant:

B means business. This category includes owners of medium or large businesses. Moving and staying in this quadrant requires a lot of effort, patience, time, experience and experience and above all leadership qualities. If you want to move into this quadrant, you must have all these qualities. Here, you are the boss and you are in the driver’s seat. Your team and workers work for you, rather you go to work or visit the office every day. All you have to do is monitor business operations and make decisions. If you are a great leader and entrepreneur, you can raise your business and team to the highest level of success and achievement.
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This quadrant gives you the freedom of time and money. The best advice for moving into this quadrant is that you should start a small business and expand it gradually. You can continue to work to earn a steady monthly income while also spending a few hours a day on your business.
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Quadrant I: The superior quadrant of cash flow

I for the investor is the advanced level of ownership and business management. When you have a lot of money, you don’t have to do anything. Rather, money will do everything for you. This quadrant gives you the highest level of freedom – freedom of time and money.

After completing 10 to 12 fruitful years in business, you can become a successful investor. However, extensive experience and knowledge of market ups and downs is required. Planning and joining successful business groups make it easier for you to move into this quadrant.
The E and S quadrants are called poor or mediocre quadrants per person. These people cannot enjoy life because they have to work to make money. These two are called active income quadrants. No work; no money, it’s that simple.
While in quadrants B and I, as long as you run the business and invest wisely, you don’t have to worry at all. This “passive income” keeps coming. If you want to be rich and build wealth, you can only do so in quadrants B and I. But first you will need to change your thinking patterns and have the attitude of a business person and an investor.
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You can gradually and continuously move from the first and second quadrants to the third and even forward. This is entirely possible. So don’t wait and start planning now. When you decide to change your destiny, nothing can stop you from achieving your goal.
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Why there will never be another bitcoin

Well, it’s been a crazy 10 years for Bitcoin. In fact, it’s been more than 10 years since Bitcoin was first created by Satoshi Nakamoto. Whoever it was, he or she, they had a profound influence on the world. Undoubtedly, they predicted that this was why they chose to disappear from the spotlight.
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So more than a decade later, Bitcoin is still alive and stronger than ever. Thousands of other crypto coins have appeared since everyone tried to imitate the king of Crypto. They have all failed and will continue to fail. Bitcoin is one of a kind. Something that cannot be replicated. If you don’t know why, let me explain.

If you don’t know what bitcoin is, I’ll just give you a few brief key points:

  • Bitcoin is an online cryptocurrency
  • It has a maximum supply of 21 million
  • It cannot be forged
  • Not all coins are still in circulation
  • It is completely decentralized, without anyone controlling it
  • It cannot be censored
  • This is Peer to Peer Money
  • Anyone can use it
  • Bitcoin has a fixed supply that decreases every 4 years

What makes Bitcoin different?

So what makes Bitcoin different from all the thousands of other coins that have been invented since then?

When bitcoin was first invented, it began to spread slowly among a small group of people. It grows organically. As people began to see the benefits of bitcoins and how the price would increase due to the fixed supply, it began to grow faster.

The bitcoin blockchain is now spreading to hundreds of thousands of computers around the world. It has spread beyond the control of any government. Its creator has disappeared and now works autonomously.
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Developers can upgrade and improve the bitcoin network, but this must be done with my consensus throughout the bitcoin network. No one can control Bitcoin. This makes Bitcoin unique and impossible to play.

There are thousands of other cryptocurrencies now, but as an example of what makes Bitcoin different, I will use Ethereum as an example. This is one of the largest alto coins at the moment and has been invented since 2015 by Vitalik Buterin.

Vitalik controls the Ethereum blockchain and basically has the final say on every development that happens in Ethereum.

Censorship and government intervention

For this example, let’s imagine Iran sending billions of dollars to North Korea to fund its new nuclear weapons program. This is not a good situation, but it should show you how your money is safer in bitcoin!

Anyway .. first example. Iran uses the standard banking system and converts this money into North Korea in US dollars. The US government says wait a minute, we need to freeze these transactions and confiscate the money. Easy. They do this immediately and the problem is over.
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Second example. The same thing is happening again, but this time Iran is using the Ethereum blockchain to send the money to North Korea. The US government sees what is happening. A phone call is being made.

“Get Vitalik Buterin here NOW”

The US government is “putting some pressure” on Vitalik and they are forcing him to return the blockchain and cancel Iran’s transactions. (The Ethereum blockchain was actually returned before, when a hacker stole a significant amount of money).

Problem solved. Unfortunately, the trust in Ethererum will be destroyed along with its price.

Ethereum is just an example, but is valid for any other cryptocurrency.

Bitcoin cannot be stopped

So the same thing happens again. This time, Iran is using bitcoin as a method of payment. The US government sees this and is powerless to stop it.

There is no one to call. There is no one to put pressure. Bitcoin is out of censorship.

Every other cryptocurrency out there is created by someone or some company and this will always be the point of failure. They are still centralized.

Another example would be if Vitalik’s family is taken hostage. Bitcoin is beyond all this and therefore the safest investment on the planet.

Learn how to use bitcoin

Everyone should own some bitcoin. Not without it, however, is dangerous. If you are new to bitcoin, you need to learn as much as you can before investing money. Owning bitcoin comes with many responsibilities. Learn how to use Bitcoin safely.

Why everyone should strive to earn a million dollars

The lyricist says, “If I can see it, then I can do it, if I just believe, there’s nothing to it.” For you knuckles there; this means that whatever you can imagine and believe is very easy to happen. Think about how to make a million dollars and guess what? Your mind will begin to think of ways to get to that million dollars, dollar by dollar.

You can’t sit at home and worry about not making money and then just get any money. No, the opposite will happen, you will end up losing even more money and you will probably even find yourself broken.

If you’ve been aware of what’s going on in the world, you’ll notice that there’s something fun in the world we live in. It is almost as if those who are confident end up with the prize, and those who are not confident with anything. Even the leading billionaire talk show, Oprah, said the world was built on intentions. So let your intention be the best it can be, or you may just suffer in the end, believe me.

I’ve heard countless people ask them how much money they want to make in the next five years of their lives, and they say they just want to make enough to be comfortable. They just want to earn enough to have food for a week, pay rent this month, pay the car note for this month and nothing more.

10 times out of 10 those people who just want to feel comfortable in life have either lost their jobs or even lost their homes as a result of so little thinking. Even I fell into this trap after I bought my first house. I felt that I had achieved so much that I mentally decided that I would not work so hard anymore. In fact, I halved the hours I worked. Want to know what happened? I was fired for the next 8 months, that’s right!

I can’t stress how important it is for you to shoot for the clouds, the clouds are a million dollars because, as they say, you can just land in the sky? But that will probably be $ 500,000, which is not a bad thing at all.

So, today you stop wanting to have just enough money to do this or that, no, instead think about too much money so that your mind will work with you to bring that kind of wealth into your life and if actually end up with a million and feel that this is too much for you because you are a person without yourself, then, damn it, give a little to someone, at least it is still used well in some way.

Financial advisers – how has reverse sexism become an acceptable norm?

In my opinion, pretending to be a non-sexist by engaging in sexist activities is perhaps the worst manifestation of morality in human endeavor. Let’s take the example of the financial media industry, if we can.

Well, The Wall Street Journal publishes a list of the best financial advisors and it includes both men and women based on the ranks, the actual return and the amount of money under management. The Wall Street Journal then published a list of the best financial advisors for women. Considering this, one can easily say; and what? But this is only because we have been trained to think that this is right, even when it clearly demonstrates complete bias towards women. I wondered why the Wall Street Journal was doing this?

It’s just that those in the media are journalists, journalists spend a lot of time in college to get a journalism degree, thus have more time to be brainwashed into the trap of the theory of sexism, which says that in our patriarchal society women are victims in some way. The Wall Street Journal, a business newspaper, pretends to be above all this, but this is clearly not the case, judging by such a choice in their content.

If things were fair and sexism did not exist and everything was really “gender neutral”, there would be only one list of men and women or there would be two lists, one with only men and one with only women to be fair to both. When we look at the list of all financial advisors, there was only one woman in the top 20 and four in the top 100, which is not such a good performance and of course there are probably reasons for that, but these are the numbers, fair and square. We live in a competitive society and the financial sector really is, and these are the real results based on pre-defined criteria. This is the truth.

If for some reason we as a society are worried about women who look bad in such surveys and data, or if the Wall Street Journal is concerned, then we have a better choice;

A. Do not publish the survey at all

B. Two separate studies – one for men and one for women

If we choose “A”, then we are biased to store or hide data, which does nothing more than maintain the wrong name of the ability and supports the theme that both men and women are completely equal in all aspects of human endeavor, we do not are. We all either know, or we should already know, simply by simply observing our species and basic people observing techniques inherent in our species’ need to understand the world around us.

So, above “A” is better than the way we do the financial advisor’s survey now, but it’s probably not as good as choosing “B”, which makes more sense.

Then it could be argued, and the professor of gender studies would definitely do the reason that women have only 4 in the top 100 because the industry was previously biased towards women. Okay, let’s take this for a moment, shall we? First, the field of financial advisor is quite new, in fact the first people were even licensed for it, and the first courses took place in the late 70’s and early 80’s. There were women in those first grades. I know because I was married to one of them, actually enrolled in first grade. Most of the people in the class were men, but there were also women.

Maybe this title or subject didn’t interest women that much. Everyone at that time was allowed to enroll. Most of the stockbrokers, who were somewhat fed up with the norm, were first-class, but not all, some were just people from finance, banking and accounting, and other circles and interests. At the time the industry started at all, there was no bias. In fact, some might say that since Financial Counseling is very much about “relationships” with clients, that women may be more appropriate, this is of course my bias, as I believe that women who are evolutionarily are the mothers of the family unit, do better than men in relationships, but I deviate, because on this topic were spent enough words to fill the data from the Internet, generated by man in one day.

So why do men outperform women as financial advisors? Well, it could be said that men are usually more competitive, therefore they take a riskier approach, which makes them very successful or more often less successful, thus they crash and burn out and go to find a new job in another sector. A survey showing the lowest or lowest performing (in terms of return) financial advisors in this case will be completed by men; and women who are better relationship builders take less risk because they don’t want their clients to lose money, they will show more average returns, which overtime is a safer bet. This can actually make them “better” in general, a topic for future dialogue.

The funny thing about all this, and keep in mind that I don’t fight for “gender equality” and I don’t even value the financial sector; is that while people were busy playing gender equality games and the government was busy throwing more regulations into the sector, artificial intelligent robotic advisors came and went. Soon the best person to work for will not be a man or a woman or even a transgender person, but a computer. Well done people, you did it – again!

Top 5 start-up Fin Tech for young application-based investors

In his book “Only Paranoid Survive“, a semiconductor industry legend and founder of Intel, Andrew S. Grove gives an in-depth idea of ​​the strategic breaking point (SIP). Describing it as a critical transformation in an industry, Andrew justifies how SIP affects the company and forces it to change from in terms of process, systems, products and sometimes identity, the financial field, while remaining the same in its motive for saving and finding better ways to invest money, has come a long way from banks to mutual funds, stocks and bonds. is not rocket science, finance has been taken to new dimensions of investment and cost management, thanks to evolution due to the theory of strategic points of inflation.The next chapter of finance has already been introduced through mobile applications that allow easy investment. fintech applications, we explore five of the most promising investment-oriented fintech startups in the world that are excluded highly mobile.

1. Inuit Mint: Mint is a personal banking investment advice application designed in an easy-to-access interface. It monitors your income, savings, investments and based on them creates a budget and recommends consumer spending. With Mint, you don’t have to worry about checking your account statements or checking all pending accounts. You can also find ways to keep your credit rating higher and consistent. This one-touch financial manager automates your expenses to your income to make you achieve your financial goals in a reasonable amount of time.

2. A hiding place: By bringing the investment threshold to something as low as $ 5, Stash creates a different niche for potential investors. Stash is an investment platform for beginners, which promotes about 30 different investment opportunities, from which one can choose according to their preferences and goals. These investment options are prepared through intensive technical and market reports. In addition, when you start investing through Stash, it provides you with personalized recommendations and investment opportunities to get a better return. How does Stash manage to start an investment with just under $ 5? Well, these small amounts are used to record these investments in fractions.

3. Learn and invest from Rubicoin: “Learning by practicing” When you browse the Rubicoin website, you find their motive in the view. They came up with two applications: Learn and Invest, whose ultimate goal is crystal clear from their very name. Through Learn you get access to some valuable micro investment lessons that are published in non-specialized language and can be easily understood by everyone. Its purpose is to create an understanding of investment needs and instill confidence in you as you invest. Updated and enriched all the time, Learn gives you access to video, text and even audio tutorials when investing. Added to this is the blog shared by CFO Invest, on the other hand, it is a stock investment interface application that helps in creating and managing an investment portfolio. It has partnered with some of the best online brokerage services and is currently only available to iOS users. It is expected to learn and invest from Rubicoin in late 2016 in the Play Store.

4. Acorns: One of the most innovative ideas for automating savings and taking care of your change is Acorn. Acorn is a start-up company for Micro Investing. This idea of ​​micro investing is not related to start-up companies, but to a small amount of money that is invested. To use Acorn, you must first link all your accounts and cards to this app. Then, when you make a purchase through these accounts, and the backup change you receive in these costs is invested.

5. FinoZen: FinoZen believes in a philosophy of investing in short-term liquid mutual funds, rather than keeping your money at lower interest rates, collecting a savings account. An Indian startup, Finozen has attracted many interns and young employees who want to easily dispose of funds without trading in favor of a higher return on their investment. This Android fintech app can only be used for $ 2 and collects about 7-8%. FinoZen makes it easy to daily update your return on investment and easy transactions from your savings account to your FinoZen account and vice versa. It is interesting how the scenario for financial consulting and investment has developed in order to correspond to the consultations for each purse and purpose.

The five mobile applications mentioned above have created the era of digital investment, adding mobility, comfort and always active technical support to customers at almost zero prices. Yes, it is worth seeing how promising they turn out to be for their clients and whether they can ultimately reproduce the human comfort factor in the world of finance.

Financial antivirus stimulus packages and gold

Unfortunately, the new coronavirus is deadly not only to humans but also to the world economy. Central banks have fired their bazookas, but monetary policy has been helpless during pandemics with their supply disruptions and self-quarantine effectively freezing economic activity. Interestingly, even central bankers seem to acknowledge their impotence. As Jerome Powell said during his recent press conference:

“We don’t have the tools to reach individuals, and especially small businesses and other businesses and people who may be out of work … we think the fiscal response is critical.”

It did not take long to persuade governments to intervene and increase spending. For example, Spain announced a stimulus package of $ 220 billion, or almost 16 percent of its GDP. The UK has unveiled an even greater incentive: an unprecedented $ 400 billion financial rescue package, amounting to almost 15 percent of GDP, to “support jobs, income and business”. Germany has gone even further: the country has allowed its state-owned bank KfW to allocate $ 610 billion, or nearly 16 percent of companies’ GDP, to mitigate the effects of the coronavirus.

Trump has already signed two packages, but only worth $ 108 billion. But don’t worry: Americans haven’t said their last word yet. Republican and Democratic senators struck a deal for a $ 2 trillion stimulus package. Yes, you read that correctly. Two grim trillions! But if you think it’s a lot, you’re wrong! In terms of US GDP, two trillion is “only” 9.4 percent. So, don’t worry, there is room for extra incentives if needed.

Will this mammoth fiscal stimulus help? Well, it depends – the devil is in the details. Much depends on what governments spend on dealing with this pandemic. The cost of health care and vaccine research is so necessary that even fiscal hawks (like us) would not complain. But this cannot be the case with the F-35, nor can it be said that financing infrastructure projects would not be very useful at the moment. You see, this is a unique situation where entire economies are freezing to smooth the curve and prevent the health system from collapsing. But when companies don’t work, they have no revenue. Without income, people have no salaries. Without salaries and income, loans are not repaid. Without repayment, the banking system collapses – and the whole system collapses like a house of cards. So some support is needed to prevent this – so that people can pay their debts without any problems.

Whether a simple fiscal policy will be useful or not remains to be seen. But recently, the unprecedented fiscal stimulus will have a very important consequence. Fiscal deficits will jump. Forget about austerity, surplus or even a balanced budget. So public debt will definitely follow suit.

Why is it important? Well, global debt levels were already sky-high. In the third quarter, global debt, which includes loans from households, governments and companies, rose to $ 253 trillion, or more than 322 percent, the highest recorded level. In many countries, public debt will jump to volatile levels.

In addition, it increases the chances of the US entering stagflation, which means that investing in gold is likely to be particularly attractive. It may be a good idea to consider learning more about this precious metal before it becomes apparent to all investors – when it does, its price will probably be much higher.

Steps to build a strong financial foundation

Are you the master of your wealth? You must be!

To build a solid structure, you need to start with a solid financial foundation that will take care of you now, while consolidating your future goals. What do you need to do to put this structure in place? This is incredibly clear. The tactics below will help you increase your financial self-confidence and set yourself up for financial success.

I’m getting organized

Before you continue, you need to know where you are financially right now. You can start by developing a personal balance. Make a list of each of your assets (what you own) and liabilities (what you owe). When you collect all your statistics, this will give you an idea of ​​your net worth.

Then find out your monthly cash flow and check your credit. You can use a budgeting template like this to make the process easier.

Increase your net worth

– Analyze your pay at home

– Make sure you spend less than you earn. Track your personal finances with a tool like Moneydesktop, which can give you the ability to take control of your finances and simplify your life.

– Manage your debt responsibly, making your payments on time and paying extra on all your consumer debt.

– Save money for your long-term goals. Open a sponsored employer 401 (k) and make sure you take advantage of all employer matching programs.

Take care of yourself

Now that you are organized and following a growth plan, you need to be sure that you are financially secure. Try applying these options.

– Build an emergency fund, because life happens. You need to be financially viable – instead of sinking into debt when faced with unexpected expenses or another financial crisis.

– Check your insurance coverage. This type of policy will help you keep your expenses in your pocket when unexpected expenses arise.

– Make sure you create or update your property plan. This may include updating your will, building a living trust, and creating a power of attorney and health care directive.

Prioritize your debt reduction

Be aware of excessive overpayment by paying excessive interest on the money you have borrowed. This can prevent you from investing money for your other financial purposes. Debt repayment is an ideal way to start building your financial base. If you are interested in implementing a fast-tracking debt repayment strategy, try the debt snowball method or other financial strategy to reduce interest rates.

Set your financial goals

Now that you have gathered all the parts for your financial base, it is time to ask yourself what you want both in the short and long term. Remember that your goals must be SMART: concrete, measurable, achievable, realistic and limited in time. Here are some concepts to help you get started.

– Save on down payment for a home

– Building a pension fund

– Save for children’s college

– Create an emergency fund

– Save for vacations with a bucket list

– Become financially free

Now let’s do it that way

– Be disciplined: Stick to the plan

– Maintain a balanced budget. You cannot be financially sound if you spend more than you earn.

– Automate your finances (regular money transfers from check to savings and online bill payment)

As you can see, building a financial foundation requires extreme care and determination. If you follow step by step, you can’t help but see results. Most importantly, you will begin to gain confidence in your ability to create and stick to your new healthy financial life.

Some things are more important than your certificate of deposit

Whether you are planning to retire or just want to protect your funds, finding a reliable long-term investment often means comparing a certificate of deposit in different institutions. The frequency of CDs is usually low, and many plans end up following surprisingly close inflation. In other words, a portfolio with modest certificates of deposit may grow in dollars, but not the actual value. It’s better than just burying your money in a hole, because $ 500 will cost significantly less in a few decades. A bottle of coke that once cost nickel can now cost a dollar or more, and it’s not as if the ingredients have gotten much better.

Until you get to the point of comparison of certificates of deposit in different banks and credit unions, it is important to remember the big picture. Not only will inflation reduce the impact of any profits, but withdrawing money earlier will usually mean penalties. If you find that you are stressed by comparing all the details of different options, remember that some things in life are more important.

Invest in time, not just money

If you spend two full weekends just comparing plans online and talking to investors, you’ve already made a significant investment. How many dollars an hour does your free time cost? Assuming you work full time, these hours in the evenings and on weekends are even more valuable. If you had to pay for overtime for hours spent researching and comparing financial opportunities, would the information you receive cost so much money?

It is difficult to “invest” time in a way that seems useful in terms of hourly wages, but “saving” time is more intuitive. If you need a whole portfolio of managed funds, then why not hire a professional? They may charge a high hourly rate, but you also benefit from their many years of training and experience.

Cultivating a wealth of experience

As any advisor will tell you, the best time to start saving is always now – the sooner the better. But earning money for set-aside means either extra hours of work or previous experience in the short term. Sufficient funds can be set aside through small lifestyle adjustments, such as packing lunch and restricting one’s purchases at will, but zealous pinching of pennies can also go too far. If you give up every opportunity to see your favorite band at a concert or trade all your vacation days for extra hours, then you may be overemphasizing savings. In the immortal words of the constant mentor of the Balu Jungle Book, “If you behave the way a bee acts, no, you work too hard.”

The inability to plan for the future is irresponsible, but there is a time when any hobby or project can get out of hand. Remember the general picture and when you find yourself comparing a certificate of deposit in twenty institutions, consider simply hiring a financial advisor. There are better ways to invest your time and money that allow you to enjoy life between now and retirement.

Make sense of your finances

The reality is that money comes and goes; more important is how you handle your funds. Long ago, when I learned how money works; the rule of 72 was an eye opener. Rule 72 is an easy way to determine how long it takes for your funds to double; it is based on an annual interest rate divided by 72, which will be equal to the number of years it takes to see any real overtime growth. Such as, say, a 1K investment with an annual return of 1.0%, which is more than what your bank is currently paying; it would take 72 years to double your funds. (72/1 = 72 years). The money will grow to only 2K over a period of 72 years.

Now, take the same 1K, properly invested in the financial markets of 10%, which was the historical average, it will take 7.2 years to double your funds. So, during this 72-year period, you will have 10 doubling periods, or $ 955,594, just under $ 1 million; not bad for 1K. Have you ever wondered why local and national banks have a plush atmosphere and marble floors to walk on? We need to learn how to manage our finances; budgeting, spending and saving; are part of being reasonably responsible managers.

Over the years, many of us have made mistakes with our money; whether through a loan, bad financial management, debt burial; or by snatching from various financial advisers or a fraudster. In order to make sense of our finances, we need discipline to do the right thing and to refrain from frivolous meaningless bad habits. In the last few weeks, with this coronary virus pandemic, I’ve seen people spend their stupidly hard-earned money; buying more than what he or she would normally need on a given day. The world is not coming to an end. Distribute your funds on the table and take what you need to connect the two ends. A crisis should not be needed to get our attention with our finances, it should be a process of about a year on how to manage money properly.

During times like these, it grabs our attention to slow down and rethink things before acting on impulse. Also, this is another way God draws our attention; for those of us who believe that He is the true and living God. He controls this whole situation and has the whole world in his hands. The goal of each person, when he or she learns how to manage their finances, should include, but is not limited to: the purchase of life insurance and health insurance products, there are legitimate sources of income through diversification of multiple assets, own real estate, have a basic understanding of how to buy low and sell high, or at least get an equivalent; or win with any business venture you can engage in. Last but not least, be advised by reliable professional financial advisers “to help manage large financial portfolios”.

The truth behind money is to know how to manage it properly and to live according to our abilities and to be calm in mind, soul and spirit. We need to learn from our mistakes and mistakes and be a blessing to others who may lack both the finances and the knowledge of how to have more than enough. Share your education with others to help them change their thinking from thinking to thinking of poverty to help increase their wealth accordingly. It’s time to let your money start working for you; instead of working for money!