Taking Charge of Finances

Perhaps one of the most anxiety-causing areas of our lives is the management of our money. The key to reducing that anxiety is not more money but more discipline over the money we have. Hopefully, these links will help develop more discipline and prepare for lean times.

CASH IN HAND: Having at least a month's worth of cash (to cover expenses), securely hidden and stored within the home, will be helpful if financial institutions are affected by a large-scale emergency. This should be separate from the Emergency Fund.

• Pray for God's Blessing and Favor
• Give to God's Work
• Build a Bank Account Buffer to avoid living paycheck-to-paycheck
• Save Money
• Reduce Debt
• Set aside for Retirement Income
• Invest for the Long-Term Future; things you might want beyond today; this is not retirement income
• Save for shorter-term goals; things you want in the near future; avoid instant gratification.
• Create an additional stream of income as a backup and buffer.
• Philanthropy
• Be the Lender & Not the Borrower (being free to help those in need [Philanthropy])
  References:
  The 6 + 1 System For Achieving Financial Security
  Smart Spending for Financial Freedom
  The Total Money Makeover: A Proven Plan for Financial Fitness

• Organize & Categorize financial documents
• Create a balance sheet with Income & Expenses
• Set Goals (vacations, purchases, etc.) & plans to reach them
• Create a retirement account and automatic payroll deposit through your employer
• Create and regularly deposit to an Emergency Fund
• Find ways to reduce everyday costs

He is the single most successful investor of the 20th century. Time magazine named him one of the most influential people in the world. Warren Buffett is an expert investor and business man. He is called the Oracle of Omaha for his sound business principles and profitable investments. He is ranked by Forbes as the #15 Most Powerful Person in the World in 2016, #3 in the 400 wealthiest persons in America, and the 2nd Richest Person in the US and the World. In his success, he has given a great number of advice, and this is a summary of the top 10 based on this YouTube Video.

1. Find Your Passion
Find Your Passion Through Part Time Adventures
It's Time to Discover YOUR TRUE Passion!
Don't Be Afraid To Pursue Your Biggest, Boldest Dreams
2. Hire Well
3. Don't Care What Others Think
4. Read, Read, Read
5. Have a Margin of Safety
6. Have a Competitive Advantage
7. Schedule for Your Personality
8. Always Be Competing
9. Model of Success
10. Give Unconditional Love

Minimalist Living - The Conserver Lifestyle
Paying Bills
10 Things You Should Always Buy Used Secondhand

Build Liquidity.
Do not save what is left after spending, but spend what is left after saving - Warren Buffet.
Saving Money is Possible for Anyone.

Student, Payday, Auto, Consolidating, Home Equity and other types of Loans

Debt - Get Out NOW!

Retirement Planning Starts at Age Zero

Investing Strategies
Stock Market Investing

Diversifying Funds into different "investment vehicles", such as precious metals, real estate, cash, stocks, bonds, etc., is necessary. If one vehicle is doing bad, the others may be doing well. Mutual Funds are a good example of financial diversification but mutual funds should not be the only investment vehicle.

Real Estate:
Live Like A Millionaire On A Modest Budget
Survive And Thrive In A Tiny House

Precious Metals:

Precious Metals are always a good [hedge] investment that should be part of a diversified portfolio to pay/barter for goods and services in case of a financial crisis. One of the best reasons for investing in (purchasing) precious metals, instead of conventional monetary vehicles (like IRAs and stock market EFTs), is that they are, usually, not monitored by, or reported to the IRS, unless is it sold for profit after the purchase or purchased in excessive amounts. In a Private Sale, it is up to the seller to voluntarily report a "capital gains" to the IRS. For large amounts sold by a Broker, the IRS could be notified (see previous link). Silver, Copper and Gold (in that order) are the best options because they can be physically held-in-hand as a payment (bartering) source to redeem for cash, products or services. If you buy it, take physical possession of it. Don't give it to some broker to "vault" it for you; there will be fees involved. Consider also Coins VS Bars when purchasing. Bars are less expensive to purchase but will be less flexible if they are needed as payment for goods or services in a financial crisis.


Junk Silver: Mostly in the form of U.S. Silver Coins (dimes, quarters, half-dollars and silver dollars) minted before 1965, "junk silver" has a high silver content (90%) that makes it a good investment (and purchasing tool) if the current [paper] monetary system fails. As a purchasing tool, most people will recognize a 'real' coin they can feel is a legitimate payment method. Given their high silver content, these old coins could be worth many times their face value, depending on the current price of silver per ounce (Spot Value) and the condition and face-name of the coin. For example, a 1962 Washington Quarter (worth 25 cents at face value) could be worth nearly $4.93 because of its silver content and a Silver Spot Price of $27.30. A rough formula for calculating its silver value goes something like this: Face Value X 0.723 X Spot Value (.25 X 0.723 X 27.30 = $4.93). There are Smart phone Apps and Online Calculators to get more accurate coin values.
NOTE: The silver content of a coin has little, or nothing, to do with a Coin Collector's (numismatic) value of a coin.
Research Further and Consult These Junk Silver Resources for More Information:
What is Junk Silver?
How to Manually Calculate Junk Silver Coins
Calculate the Value of Junk Silver Coins

Other Precious Metal Resources:
Silver VS Gold:    [Article 1]    [Article 2]
Best Precious Metals Investment and Trades (2019)
Precious Metals vs. the Stock Market
5 Questions To Ask Before Buying Precious Metals
Investment Guides to Gold and Silver and Rare Coins

Whether or not you believe in a breakdown (crash) of the financial structure as we now know it, having a separate fund for emergencies (some listed below) is a smart financial strategy. An emergency fund is a stash of money set aside to cover the financial surprises life throws our way. These unexpected events can be stressful and costly. Some reasons to have an Emergency Fund are: Job Loss or loss of pay due to illness or injury Unplanned expenses such as car repair, home repair, appliance replacement, emergency travel Emergency pet care Taxes increase

Storing the Emergency Funds should also be diversified. Not all funds should be in the bank or other financial institution but also at home where it is readily available when needed and when financial institiutions are closed.

Funding the Emergency Fund should be gradual but methodical. Many may not have the ability to set aside a ton of money all at once, but setting aside a buck or two every paycheck can lead to a substancially-sized fund.

Not much detail has been given here because of the many potential options and scenarios. The goal is to encourage setting up an Emergency Fund starting now and keep (and methodically) adding to it. There are many resources available to assist. A few are listed below.

Emergency fund: Why you need one
Setting Up a Crash-Proof Emergency Fund

Job Loss - Plan B - Don't wait for it to happen

Controlling & Eliminating Credit Card Debt and Use

Credit reports may affect your mortgage rates, credit card approvals, apartment requests, or even your job application. Suspicious activity or accounts you don't recognize can be signs of identity theft. Review your credit reports to catch problems early. Get a free copy of your credit report every 12 months from all 3 credit reporting companies. Also, knowing the things that affect your credit score can help you to improve it.
The following items may influence your finances, but, generally, won't have any effect on credit scores:
• Paying with a debit card
• A drop in salary
• Getting married
• Getting divorced
• Having a credit application denied
• Having high account interest rates
• Getting help from a credit counselor

What You DON'T Know About Your Credit Report Can Hurt You - What to Look For
• Payment History - Impacts 35% of your score. Pay bills on time with the required amounts.
• Amounts Owed - Impacts 30% of your score. Pay off debt as soon as possible.
• Length of Credit History - Impacts 15% of your score. It's, generally, best to not close old accounts.
• Types of Credit in Use - Impacts 10% of your score. Having both revolving credit (credit cards) & installment loans (auto loans, etc.) is best.
• New Credit - Impacts 10% of your score. Opening several lines of credit in a short period of time can, temporarily, have a negative impact.

Bartering

In an attempt to protect children from the "real world", parents often fail to teach important lessons about money and finance. Discussing the topic of responsible money management openly, even at the family dinner table, can help children understand the "whys" and "hows" of budgeting, saving and investing with real-life examples. Soliciting their input can also help communicate and clear up any questions or confusions they may have. It's also one of the best ways to get a child interested in the concept of financial responsibility. Most parents understand the importance of teaching their children about money and finance, but many don’t know how to do so or where to start. To help, here are some links for teaching children the important life concepts of money and financial responsibility. [Article]     [Video]

The Four Building Blocks to Financial Health:

Spending Saving Borrowing Planning

Keep an eye on your finances. Others are looking to hack you. For those who have never had a financial account hack scare, I dare say that they are either very blessed or very ignorant of the activities of their financial accounts (banks, credit cards, investments, retirement, etc.). It is very irresponsible and risky to not monitor financial accounts. Today, more than ever, electronic fraud and hacking is as common as breathing. I have been a victim of credit card fraud and, more recently, debit card fraud. Fortunately, I caught these crimes early because I keep regular tabs on my financial transactions and setup alerts. Unfortunately, no matter what I do, it will NOT keep me from being a victim again. Consider subscribing to a Credit Monitoring service and freezing your credit information with the 3 top credit reporting companies (Trans Union, Equifax and Experian). Never assume that your bank or investment(s) broker(s) are watching your back. Personally check your financial accounts on a frequent basis to spot fraudulent activity, setup automated alerts and act swiftly on anything that looks suspicious. Tips for monitoring your accounts for fraud:     [Article 1]     [Article 2]     [Article 3] [Video 1]     [Video 2] Protection From Identity Theft & Breaches

The concept of "cashless" is either a heated debate, the wave of the future, or a term you’ve never heard of. Governments have a love-hate relationship with cash because it is anonymous money which may represent untaxed earnings. This helps explain why the fix is in to outlaw cash. But anything electronic can be monitored, so anonymity is not likely. Consider investing in the Barter System and hand-held precious metals. Do governments want to outlaw cash? Be prepared for a war against economic freedom! Get 2 FREE Special Reports that will help you prepare for what's coming next

Cryptocurrency has made its mark in a "cashless society". It's a form of digital money that is designed to be secure and, in many cases, anonymous. View these videos for a better description:     [Video 1]     [Video 2]