The main causes of financial problems

8 Reasons for financial failure

Fighting financially? A lot of people, although they give everyone the impression that they did everything. They work, live in a good house and drive a great car, but live from paycheck to paycheck. Here are 8 major causes of poverty in the first countries of the world.

Live beyond your means

There is no escape from this. If you spend more money than you earn, then you may be getting extra money from somewhere, and that almost always means borrowed money, which is also called buying on credit. It’s all worth it, and it’s called interest. If you have a habit of buying things on credit, then the interest you pay over a lifetime will increase. 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 that interest. It’s even too painful to think about, but if you want to avoid poverty, you need to pull your head out of the sand and face the facts; your financial future depends on it.

Not far behind Jones

Some people try to keep up with their peers, for which they spend their money. This coercion will cost you a lot. Doing a self-image will ruin your finances and by the time you stop working, it will be expensive. You may think your peers are making great money to afford such things, or you may even think they have done well for themselves, but what you don’t know may surprise you. That they may find themselves in debt. Even if they live within their means to fund their lifestyle, that doesn’t mean you have to keep up with them.

Don’t rejoice in people and live up to other people’s expectations, live according to how to act properly in your circumstances and you will become much happier.

Consumer debt

Consumer debt, or dumb debt, as it is often called, is the purchase of things for borrowed money. It’s a waste of tomorrow’s income today. Debtors usually do not pay attention to what happens to the so-called things they have purchased on credit; that their new purchase is worth less than a minute when they bought it. The most important factor to follow is; The money borrowed for this subject is always more than what is worth. No one draws so many people into the debt and poverty cycle, and it’s not just low-income people; in fact middle-income people are prone to this trap.

Commercial greed

Commercialism during the twentieth century brought much prosperity; it has provided jobs and created countless businesses, but it has another side. The world’s first poverty, which is caused by an insatiable appetite for things. People are not just satisfied with what they need, but want more. All it takes is to pay, it’s money that could be used to build a financial base for their future.


Addiction is very expensive; just ask smokers. You don’t need to be a mathematician to calculate how many cigarettes you smoke for addiction. It is valued at more than $ 100 New Zealand per week. That’s equal to five thousand a year and fifty thousand a decade. No wonder many smokers break down. The same is true for those who are addicted to alcohol and packs.

Financial illiteracy

Financial illiteracy is a major cause of financial poverty, and not only low-income people are financially illiterate; high-income people may also be to blame for this. You hear stories of successful athletic people who earned millions during their heyday but failed a few years after retiring. It’s important to save and invest in the best years of earnings to set you up for when you don’t already earn that much.


Not taking responsibility for your own finances is irresponsible. They will come up with all sorts of excuses as to why they didn’t join the kiwisaver or contribute. Excuses such as, “You can’t take it all with you,” “I can die before retirement,” or “I’m just young”. People who treat their finances irresponsibly tend to be irresponsible in other areas of their lives. Making commitments, whether they are related, owning a home or a car or saving for retirement, takes responsibility, and that is what separates men from boys.

Bad company

Undoubtedly, bad company is the main reason why so many people live in poverty. It has been said, “You’re an average of five people you spend most of your time with,” so you should find out who you’re hanging out with and ask if their attitudes and opinions about finances affect your money habits. To grow, you need people who will help and encourage you. This sometimes means separation from bad company. It is difficult for some, but in the long run it is all worth it.

4 Streams of wealth rob you blindly every month

The first and biggest “merger of wealth” is taxes.

Our tax system is designed to punish employees who work hourly, and at the same time reward entrepreneurs and business owners. Employees who receive a salary pay taxes based on what they receive, and business owners pay taxes based on what they receive. To that end, most people think Fortune 500 companies are sorting through little guys. Keep in mind, you don’t need to be a big business to get big tax benefits. Even startups get huge tax breaks. So instead of complaining, maybe you should run the business from your kitchen table.

To be eligible for tax benefits in this business, the IRS says you must intend to make a profit. If this standard is met, you are automatically eligible for dozens of tax deductions that you do not receive as an individual. Most losses and start-up costs can be written off to other income from your work (there are restrictions, so get a good CPA for the business to work with you). Realize that no one else (not even your CPA or taxpayer) cares how much you pay in taxes, so it’s your job to understand how the system works and how to use it effectively.

Loss of chance of compound growth

Another set of huge wealth costs is the loss of the investment capital market you manage. If the value of real estate stocks drops significantly, it may take you years to get back to par. And of course, there is no guarantee that it will return during your investment life. The less capital you have invested, the less you can benefit from the power of adding up growth.

If the addition curve of your money is broken by market losses or premature withdrawals, it has a massive impact on your ultimate wealth. For example, if you were offered a job that lasted only 36 days and you had two pay options that you would take? (A) At the end of each day you may be paid $ 5,000 per day for a total of $ 180,000. (2) Your second option would be to pay one cent starting on the first day, but your payment is doubled each day – by 100 percent – and paid at the end of those 36 days.

If you jumped to $ 180,000, you missed the power of true money making. If your colleague who does the same job chose the lineup, he wouldn’t be a millionaire. In 36 days … he will become a wealthy multimillionaire with a final check of $ 343,597,384. Obviously, your investment will not experience such a rapid (or consistent) connection growth, but calculate – the strength of the addition curve over time is strong – unless you break it with large losses (which is not always possible) control (or withdrawal) (which you can).

Money lost in fees and interest for banks and financial companies

The next massive inflow of wealth we face is interest and fees paid to banks or financial companies. Cash lending has existed for thousands of years, and any business model that has lasted so long is a winner for the business. But when you do the borrowing part of the deal, it brings the wealth together, especially when most of the borrowed money is spent on asset depreciation

Now people will tell you that if you can borrow money cheaply and invest it in something that has a higher return than the interest rate you pay, you are using the levers correctly. This may be true, but those trying to take such a step should be aware of the reservations. Try this simple exercise: add up all the money you’ve paid for your life in monthly payments. Then compare that amount to the amount of money you saved on retirement and see which one is bigger. (If you want, we’d like to know about your results in the comments section below.) Then think about how to become a lender, not a borrower.

Depreciation of vehicles and other major assets

Another massive influx of wealth comes from the depreciation of cars, boats, equipment, appliances and most of the other major assets we buy. Most people will lose more money on cars in a lifetime than ever save on retirement, not to mention all the other depreciation assets they will buy. But you can make money on these subjects.

Think of your financial life as a big pie. Don’t give in to the old trick and focus only on what’s going on with your one piece of the pie (i.e. your gains or losses). Instead, pay attention to the whole pie and stop your massive showers of wealth.

Get Rich Overnight – The truth about getting rich overnight

Wouldn’t you like to join an opportunity or business and get rich overnight? I mean, who wouldn’t love that to happen? The truth is, to get rich overnight, you can’t. This has never been done before, never! Even those who made a video that went viral online didn’t get rich overnight. Viewers don’t see how much time successful people invest in their opportunities or business. So how do you get rich overnight? The simple answer is that you work endlessly from day to day in the rear for hundreds of previous nights. However, hard work in the fast food chain will not provide you with the desired income. So what opportunities or jobs can make this a reality?

1. Vice President of Marketing – To achieve this job, you will need a college and a handful of applications! However, some of these professionals can earn about $ 160,000 a year! I mean, how can you complain about going to college when such numbers are in front of your eyes? You may also have to start working with your own company, but in a few years you will be able to do that work at home!

2. Direct sales – You don’t need a college for that at all! You can start your direct sales adventure today at any time! However, you will need to make sure that you start with a company that is right for you. Make sure you get high payouts and enjoy what you will be selling! If you’re trying to sell something you don’t even like, you’ll not only find it hard to create sales, but also hate what you wake up and do every day. However, those in this field can earn millions! The low-cost direct salesman I know earned more than $ 256,000 in just one year.

3. Medical Director – If you’ve been trying to avoid going to college for years, don’t even read this brief explanation! However, by becoming a medical director, you could earn about $ 260,000 a year! You can also do most of this work online or over the phone at home. Just remember not to underestimate the amount of study you will need! Any career in some medical science will require rigorous training!

So the truth is about getting rich overnight, you can’t. To make a bunch of money in a few hours while you sleep, you need to put the pedal to the medal and make the ball ride! No matter how you decide to generate this income, you will have to work for it and you will have to start acting it! When I personally do work or start a business or even an opportunity, I don’t play games! I take the bull by the horns and take on the whole industry in which I will be engaged. The reason I do this is that I want significant growth and profit! So if you want the same thing, you have to do the same thing or more!

Why you all need to strive to make a million dollars

The songwriter says, “When I see it, I can do it, if I just believe it, there’s nothing.” For you, fists, there; this means that everything you can imagine and believe in is very simple. Think about making a million dollars, and guess what? Your mind will start thinking how you get to that million dollars, dollar after dollar.

You can’t sit at home worrying about not making money, and then you still have money coming in. No, the opposite will happen, as a result you will lose even more money, and will probably even end up spoiled.

If you have been aware of what is happening in the world, you will notice that there is a funny thing in the world in which we live. It’s as if those who are confident get the prize, and those who don’t trust with anything. Even billionaire host Oprah’s talk show said the world is built on intentions. So let your intention be the best possible, or you may suffer in the end, believe me.

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

10 times out of 10 these people who just want to be comfortable in life have either lost their jobs or even lost their homes as a result of such little thinking. Even I fell into this trap by buying my first home. I felt that I had achieved so much that I mentally decided that I would no longer work like that. I actually cut the number of hours I worked in half. Want to know what happened? I was fired for the next 8 months, just like that!

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

So stop today just wanting to have enough money to do it or not, instead think about having too much money so your mind will work with you to bring such wealth into your life and if you actually end up getting a million and feeling like it’s too much for you because you’re a self-willed person, then, heck, give it to someone, at least it’s still somehow usefully used.

Why there will never be another bitcoin

Well, it’s been a crazy 10 years for bitcoin. In fact it has been more than 10 years since bitcoin was first created by Satoshi Nakamoto. Whoever he was, he, she or they, they greatly influenced the world. They no doubt predicted that was why they decided to disappear from sight.

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 King Crypto. Everyone has failed and will fail. Bitcoin is the only type. What cannot be repeated. 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 a cryptocurrency on the Internet

  • The maximum offer is 21 million

  • It cannot be forged

  • Not all coins are in circulation yet

  • He is completely decentralized, someone controls him

  • It cannot be censored

  • This is equal money

  • Anyone can take advantage of them

  • Bitcoin has a steady supply that decreases every 4 years

What distinguishes bitcoin?

So how is bitcoin different from all the thousands of coins that have been invented since then?

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

Bitcoin blockchain is now distributed to hundreds of thousands of computers around the world. It has spread beyond the control of any government. Its creator has disappeared and now it works autonomously.

Developers can update and improve the bitcoin network, but this needs to be done by my consensus across the bitcoin network. No one can control Bitcoin. This is what makes bitcoin unique and impossible to replicate.

Thousands of other cryptocurrencies are now available, but as an example of what distinguishes bitcoin, I will use Ethereum as an example. It is one of the largest alternative coins at the moment and since it was invented by Vitalik Buterin in 2015.

Vitalik runs the Ethereum blockchain and basically has the last word in any development that happens on Ethereum.

Censorship and government intervention

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

Anyway .. the first example. Iran uses a standard banking system and converts this North Korean money into US dollars. The US government says we need to wait a minute, we need to freeze these operations and confiscate the money. Easy. They do it right away and the problem is over.

The second example. The same thing is repeated, but this time Iran is using the Ethereum blockchain to send money to North Korea. The US government sees what is happening. A phone call is made.

“Bring Vitalik Buterin here NOW”

The US government is “putting some pressure” on Vitalik, and they are forcing him to roll back the blockchain and cancel Iran’s transactions. (The Ethereum blockchain was actually pumped out earlier when a hacker stole a significant amount of funds).

The problem is solved. Unfortunately, Ethererum’s credibility will be ruined along with the price.

Ethereum is just an example, but it’s true for any other cryptocurrency.

Bitcoin cannot be stopped

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

There is no one to call. There is no one to put pressure on. Bitcoin is uncensored.

Any other cryptocurrency has been created by someone or some company and it will always be a point of failure. They are still centralized.

Another example might be when Vitalik’s family is taken hostage. Bitcoin is beyond all of this, and so it is the safest investment on the planet.

Learn how to use bitcoins

Everyone should own a little bitcoin. However, it is not dangerous. If you are new to bitcoin, you should learn as much as you can before investing. Bitcoin ownership comes with a lot of responsiveness. Learn how to use bitcoins safely.

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

In my opinion, pretending in a non-sexist way by engaging in sexist activities is perhaps the worst manifestation of the moral basis in human activity. Let’s take an example from the financial media industry if we could.

Well, The Wall Street Journal contains a list of the best financial advisors, and in that list men and women take into account ratings, actual profitability, and the amount of money under management. Then the Wall Street Journal releases a list of the best women financial advisors. Looking at it, one could easily tell; and what? But that’s only because we’ve been taught to think it’s right, even if it clearly reflects women’s complete bias. I asked myself, why does the Wall Street Journal do this?

It’s just in the media – it’s journalists, journalists spend a lot of time in college to get a degree in journalism, and so he had more time to brainwash into the trap of sexist theory, which says that in our patriarchal society, women somehow become victims. The Wall Street Journal pretends to be above all, but obviously not, judging by this choice of content.

If things were fair and sexism didn’t exist and everything was truly “gender neutral,” there would be only one list with men and women, or there would be two lists: one only with men and one with women to be fair to both. If we look at the list of all financial advisers, only one woman is in the top 20, and in the top 100 – four, which is not very good, and, of course, there are reasons for this, but the numbers are fair and square. We live in a competitive society, and the financial sector does exist, and these are real results based on predetermined criteria. This is true.

If for some reason we as a society are worried about women who look bad during such surveys and data, or when it comes to the Wall Street Journal, then we have a better choice;

A. Do not publish the survey at all

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

If we choose “A,” then we have a bias to store or hide data, which does nothing more than reinforce the erroneous name and reinforces the theme that both men and women are completely equal in all aspects of human effort, we are not out are. We all either know or should have known this already, simply by simply observing our species, and the basic people who observe the techniques inherent in our species must understand the world around us.

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

Now one can argue, and a professor of gender studies would certainly say that the reason women had only 4 places in the top 100 is that the industry used to shy away from women. Okay, let’s take this for a moment? First, the field of financial advisor is quite new, in fact the first people even licensed it, and the first courses took place in the late 70’s – early 80’s. There were women in these first classes. I know, since I was married to one of them, I entered the very first class. Most of the people in the class were men, but there were also women.

Perhaps this title or subject did not interest women so much. Everyone who was allowed at the time was registered. Mostly stock brokers who had enough to eat the norms were those who were in first grade, but not all, some were just people from finance, banking and accounting and other strata and interests. At the time when the industry started at all, there was no bias. In fact, some may say that because “Financial Counseling” is largely about “relationships” with clients, women may be more appropriate, this is of course my bias, because I believe that women who are evolutionarily out of are the mothers of a married unit, more successful than men in a relationship, but I refuse, because enough words have been spent on this topic to fill in the publicly available data created by man.

So why do men outperform women as financial advisors? Well, we can say that men tend to be more competitive, so approach higher risk, which leads them to be very successful or tend to be less successful, so they break down and burn out and go looking for a new job in some other sector. The survey, which shows the lowest or worst (in terms of profitability) financial advisers, in this case will be filled by men; and women who build relationships better are less at risk because they don’t want their clients to lose money, will show more average returns, that overtime is a safer rate. This can make them overall “better” – a topic for future dialogue.

The funny thing about all of this, and, mind you, I don’t agree about “gender equality” and don’t even highly value the financial sector; is that while people have been busy playing with gender equality, and the government is busy imposing new rules on the sector, artificial intelligent robo-consultants have come and taken over. Soon the best person to work for will be a man or a woman or even a transgender person, it will be a computer. Well done, you did it yourself – Again!

Top 5 Fin Tech startups for young application-based investors

In his book “Only the paranoid survive“, semiconductor industry legend and Intel founder, Andrew C. Grove gives an in-depth look at the Strategic Inflection Point (SIP). Describing this as an important transformation in the industry, Andrew substantiates how SIP affects the company and makes it change itself in terms of process , systems, products, and sometimes identities.The financial sector, while remaining the same in terms of saving and finding better ways to invest money, has come a long way from banks to mutual funds, stocks, and bonds. , finance has moved to new dimensions of investment and cost management, thanks to the evolution due to the theory of strategic inflection points.The next chapter of finance is already open with mobile applications that allow easy investment.Analyzing these investment applications fintech, we explore the five most promising investments in the world targeted fin startups that have exclusively mobile access.

1. Inuit Mint: Mint is a personal investment advisory application developed in a user-friendly interface. It tracks your income, savings, investments and on their basis creates a budget and recommends non-standard expenses. With Mint you don’t have to worry to check your account statements and check your existing accounts. In addition, you can find ways to maintain credit score and consistency. A one-touch financial manager automates your expenses and income so you reach your financial goals in a reasonable amount of time.

2. Stash: By bringing the investment threshold to just $ 5, Stash is creating another niche for potential investors. Stash is an investment platform for beginners that promotes about 30 different investment opportunities from which to choose according to its preferences and goals. These investment options are prepared through intense reports on technical and market activities. Also, when you start investing through Stash, it provides you with individual recommendations and investment opportunities so you can make a better profit. How does Stash manage to start investing with something $ 5? Well, these small amounts are used to subscribe to these investments in shares.

3. Learn and invest from Rubicoin: “Learning by doing” When you browse the Rubicoin website, you see their motives already at the very side. They came out with two additions: Learn and Invest, whose ultimate goal is crystal clear in their very name. Through Learn you get access to several valuable micro-lessons on investing that are posted in an informal language and can be easily understood by everyone. It aims to build an understanding of your investment needs and instill confidence in you when investing. Constantly updated and enriched, Learn allows you to access video, text and even audio lessons through investment. To this can be added the blog shared by the CFO of Invest, on the other hand, it is an application for the stock interface that helps to create and manage the investment portfolio. It works with some of the best online brokerage companies and is currently only available to iOS users, Learn and Invest by Rubicoin is expected to appear in the Play Store in late 2016.

4. Acorns: Undoubtedly, one of the most innovative ideas for automating savings and taking care of change is Acorn. Acorn is a startup run by Micro Investing. This idea of ​​microinvestment is not associated with startups, but with a small amount of money invested. To use Acorn, you must first connect all of your accounts and cards to this app. Then every time you make a purchase through these accounts, and invest the extra changes you get for those costs.

5. FinoZen: FinoZen believes in a philosophy of investing in short-term liquid mutual funds than keeping money at lower interest rates by collecting a savings account. Indian startup Finazen has attracted many interns and young employees who want to have ease of cash management without trading in favor of greater returns on their investments. This app for Fintech for Android can be used for $ 2 and reaps about 7-8%. FinoZen makes it easy to daily update your return on investment and simple transactions from your savings account to your FinoZen account and vice versa. I wonder how the scenario of financial advice and investment has evolved according to the advice for any handbag and purpose.

The five mobile applications mentioned above ushered in the era of digital investment, adding to the customer mobility, comfort and always active technical support at almost zero prices. Yes, it would be worthwhile to see how promising they are for their clients and whether they will eventually be able to replicate the human comfort factor in the world of finance.

Financial antivirus and gold incentive packages

The new coronavirus, unfortunately, is deadly not only to humans but also to the world economy. Central banks have shot their bazookas, but during pandemics monetary policy is helpless due to supply disruptions and self-quarantine, which effectively freezes economic activity. Interestingly, even central banks recognize their impotence. As Jerome Powell said during his recent press conference:

“We don’t have the tools to attract individuals, especially small and other businesses, as well as people who may lose their jobs … we believe that financial measures are very important.”

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

Trump has already signed two packages, but worth only $ 108 billion. But don’t worry: Americans haven’t said their last word yet. Republican and Democratic senators have reached a deal on the stimulus package of about $ 2 trillion. Yes, you read that right. Two million trillion! But if you think that’s a lot, you’re wrong! In terms of U.S. GDP, two trillion is “just” 9.4 percent. So, don’t worry, if necessary there is room for further stimulation.

Will this instant financial incentive help? Well, it depends – the devil in the details. Much depends on what governments will spend money on fighting this pandemic. The cost of health care and vaccine research is much needed, so even financial hawks (like us) won’t complain. But that can’t become the F-35’s way, and let’s just say that funding for infrastructure projects wouldn’t be too useful now. You see, this is a unique situation where entire economies freeze to smooth the curve and prevent the health care system from moving. But if firms don’t work, they have no income. Without income, people have no wages. Without wages and income loans are not repaid. Without repayment, the banking system collapses – and the whole system collapses like a house of cards. Therefore, some support is needed to prevent this – so that people can pay smoothly on their obligations.

Whether a light budget policy will be useful or not remains to be seen. But the recent unprecedented financial stimulus will have one very important consequence. The budget deficit will increase. Forget about savings, surpluses or even a balanced budget. Therefore, public debt is bound to follow.

Why is this important? Well, the level of global debt was already sky-high. In the third quarter, global debt, which includes loans to households, governments and companies, rose to 253 trillion. US dollars, or up to more than 322 percent – the highest recorded level. In many countries, public debt will rise to volatile levels.

In addition, it increases the likelihood that the U.S. will go into stagflation, and that means investing in gold is likely to be particularly attractive. Perhaps it would be good to think about learning more about this precious metal before it becomes apparent to all investors – if it does, its price will probably be much higher already.

Steps to build a strong financial fund

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

In order to build a stable structure, you need to start with a strong financial foundation that will take care of you now, strengthening your future goals. What needs to be done to install this design? This is surprisingly true. The following tactics will help boost your monetary confidence and set yourself up for financial success.

Get organized

Before you can proceed, you need to know exactly what financial position you are in now. You can start by developing a personal balance sheet. Make a list of each of your assets (what you have) and liabilities (what you owe). If you collect all your statistics, it will give you a sense of self-worth.

Next, find out your monthly cash flow and check your credit. You can use such a template for a budget to simplify the process.

Increase your net worth

– Analyze your home payment

– Make sure you spend less than you earn. Keep track of your personal finances with a tool like Moneydesktop that can give you the ability to manage your finances and simplify your life.

– Responsibly manage debt, making timely payments and paying all debts.

– Save money on your long-term goals. Open a 401 (k) funded employer and make sure you use any employer compliance programs.

Defend yourself

Now that you are organized and implementing a growth plan, you need to make sure you are financially secure. Try implementing these settings.

– Create a fund for emergencies, because life happens. This is necessary to maintain financial viability – against plunging into debt if you face unexpected expenses or another financial crisis.

– Check the insurance coverage. Such policies will help limit pockets in the event of unexpected expenses.

– Make sure you install or update your property plan. This may include renewing your will, building a living trust and making a power of attorney and directive in the field of health.

Prioritize debt reduction

Remember to overstretch the money by paying excessive interest on the money you have borrowed. This can prevent you from directing money to other financial purposes. Debt repayment is the perfect way to start building your financial foundation. If you are interested in implementing a quick debt repayment strategy, try a debt method or other financial strategy to lower interest rates.

Define your financial goals

Now that you’ve collected all the pieces for your financial fund, it’s time to ask yourself what you want for both the short and long term. Remember that your goals need to be smart: specific, measurable, achievable, realistic and time-bound. Here are some concepts to help you get started.

– Save on the down payment for the house

– Create a pension fund

– Save for Children’s College

– Create an emergency fund

– Save for vacation with bucket list

– Become financially free

Now let’s do it

– Be disciplined: follow the plan

– Maintain a balanced budget. You can’t be financially healthy if you spend more than you earn.

– Automate your finances (regular money transfers from checking to savings and paying bills online)

As you can see, creating a financial framework requires a lot of attention and determination. If you follow the step-by-step process, you can’t help but see results. Most importantly, you will begin to gain confidence in your ability to create and follow a new healthy financial life.

Some things are more important than your certificate of deposit rates

Whether you are planning to retire or just want to protect your funds, finding a reliable long-term investment often means comparing deposit rates across institutions. Tariffs on CDs tend to be low, and many plans end up tracking surprisingly close to inflation. In other words, a portfolio with modest certificates of deposit can grow in dollars, but not at actual value. It’s better than just burying money in a pit, as $ 500 will cost much 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 approach the comparison of deposit rates in different banks and credit unions, it is important to remember the big picture. Inflation will not only reduce the impact of any profits, but early withdrawal will usually mean penalties. When you feel stress comparing all the details of different options, remember that some things in life are more important.

Investing time, not just money

If you’re spending 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, evenings and weekends these hours are even more valuable. If you had to pay for overtime for the hours you spent researching and comparing financial opportunities, would the information be worth that much money?

It’s hard to “invest” time in a way that in terms of hourly wages it’s worth it, but “save” time more intuitively. If you need a whole portfolio for managed funds, then why not hire a specialist? They may charge a high hourly rate, but you also benefit from their years of training and experience.

Cultivating a wealth of experience

As any advisor will tell you, the best time to save is always now – the sooner the better. But making money to save money means either extra hours of work or previous experience in the short term. Enough funds for investment can be allocated through small lifestyle adjustments such as packing lunch and restricting purchases on your own, but avid money-making can also go too far. If you give up every opportunity to see your favorite band at concerts or trade on all the days off for extra hours, you may be overemphasizing the savings. In the immortal words of the constant teacher of the “Jungle Book” Balu: “If you behave like a bee, 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 if you find yourself comparing certificate rates on deposits in twenty institutions, just think about hiring a financial advisor. There are better ways to invest your time and money that allow you to enjoy life from now until retirement.