Learn the vital steps to becoming a millionaire, and be clued up on the secret life habits of the wealthy.
Why do some people manage to get filthy rich? While others put in lots of effort and graft but have nothing to show for it?
Logically, it may seem some people are just lucky, and others are just not meant to have that kind of life. But this isn’t true; it is just a case of tapping into the correct habits and self-discipline to succeed.
So, the good news! It isn’t down to just pure luck; the rich are just aware of the following factors to succeed financially:
- A positive state of mind.
- Extremely high levels of self-discipline.
- They avoid bad habits/ procrastination
Not having a fear of failure
In this article, we will look further into the discrete practices and success formulas applied by millionaires and the successful.
Step 1 – Knowing where you stand financially
Even for some, this may seem a scary prospect. But this is imperative, especially for the next step, where you will need to draw up a financial plan.
If you are up to your eyeballs in debt, and your bank balance is always in the red, then this task may seem pointless to you – but it will still help you for the following reasons:
- Be aware of your total debt amount; this will give you direction on getting it paid off.
- Your bank account may have unnecessary direct debits – cancel these with immediate effect.
- See if your income does cover your outgoings (If it doesn’t – see step 3).
- Help Highlight any other financial problems
- Even just doing this task will give you a new sense of confidence, as you are finally taking control (something the majority will overlook and act defeatist about – usually just working a job they don’t like, just to keep up with monthly outgoings).
It will tell you where you stand financially.
Step 2 – Make a Financial Plan
A Financial Plan can be more frightening than step 1 for most people. However, you can download an online financial calculator, which can do all the hard work for you. A program like My Money Platform will do all your financial calculations for you. For example: It has the capabilities to calculate the age you retire and how much money you would have. All you need to do is read through your statements and make a list of all your assets and liabilities.
Step 3 – Reduce your debt
If you have numerous obligations (liabilities), then look to cut them. A debt consolidation loan is a good way to turn multiple debts into one payment, enabling you to reduce interest. Increase your income The reduce seem obvious, but even if you are full time employed, there’s still plenty of options to get stuck into a new project. E.x. publish that book you wanted to write, or setting up your own online business. If you follow a craft that means something to you, then it should inspire you to make extra income.
Step 4 – Make wise investments
Use your money wise, with the goal of making returns. Have you got the best interest savings account? Even Current accounts now offer interest, maybe shop around to see if you can get a better deal.
— The Capitalist (@Capitalist_Site) May 5, 2016
The Stock Market
For the more adventurous, learn about investments and see if there’s a chance of a lucrative return. Don’t risk all of your savings – to minimize any potential risk to your lifestyle, only use 10% – 20% of your savings.
If you are not a keen investor, there are still plenty of other options:
- Pension schemes which float on the general exchange market (no knowledge required).
- Investment funds.
- Invest in the property market.
- Invest in business.
There are lots of ways you can be creative.
Step 5 – Save to the max for your pension fund
Invest in a private pension scheme, if you work for an employer, then you should automatically be enrolled into one (ask your HR department if you are not aware, as they should at the very least have information).
Always aim to save big rather than small, an online finance calculator will help – as it will automatically calculate to the detail of what you spend a month.
To round it off…
If you can master all of these steps, then you will be sure to retire a very wealthy person. Setting up an online business is challenging, but with good self-discipline and a positive state of mind, then you should be able to conquer this.
To help with motivation you can:
- Exercise and eat healthily.
- Listen to success coaches like Anthony Robbins.
- Practice yoga and meditation.
- Take up art.
- Set yourself goals – don’t be hard on yourself, make your first few goals easily obtainable, to build up confidence.
4 Ways Biden Hopes To Overhaul Social Security
Joe Biden has laid out his plans to overhaul Social Security should he win the election in November. It shouldn’t come as a surprise that Biden wants the wealthy to chip in more money, the biggest boost in benefits will go to the lowest earners, and when it’s all said and done, his plan doesn’t save the program from insolvency.
Here are the four main Social Security changes proposed by Joe Biden:
1. Increase Taxes On High Earners
Currently, there is a 12.4% payroll tax on earned income (wages and salaries, not investment income) that goes towards Social Security. It applies to earned income between $0.01 and $137,700 per year. A full 94% of workers fall into this income range, meaning all of their earned income is subject to the payroll tax. For high earners, income above $137,700 per year exempts one from contributing towards the payroll tax. The change proposed by Biden would add a second threshold at $400,000 per year in earned income. Any earned income above $400,000 would again be subject to the 12.4% payroll tax.
Biden’s plan would create a “donut hole” between the $137,700 threshold and the $400,000 threshold, where earned income between these two amounts is still exempt from the payroll tax. But as the payroll tax cap amount increases every year in step with the National Average Wage Index, eventually that donut hole will shrink.
2. Tie The Special Minimum Benefit To The Federal Poverty Line
Currently, the special minimum benefit for lifetime low earners was $886.40 a month. While it won’t affect too many retirees, Biden’s plan would set the special minimum benefit at 125% of the federal poverty line. Last year, 125% of the federal poverty line for an individual was $1,301 a month. So readjusting the benefit to Biden’s proposal would increase the payment by xx%.
3. Increase Benefits For Long-Lived Recipients
Also included in Biden’s plan is an increase in benefits for long-lived Americans.
For the most part, certain expenses like healthcare increase dramatically as we age. Social Security benefits don’t often increase at the same rate. So seniors who are fortunate enough to enjoy a long life often see their increased expenses outstrip their monthly benefits. Biden has proposed that recipients between ages 78 and 82 get a 1% increase in their primary insurance amount every year until it reaches a 5% overall increase.
4. Change The Inflation Measurement To The CPI-E
Biden’s final change to Social Security would adjust the inflation measurement used to calculate the yearly cost-of-living adjustment from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for the Elderly (CPI-E).
While 80% of Social Security beneficiaries are seniors, the CPI-W tracks the spending habits of urban and clerical workers.
Biden’s plan would use the CPI-E as the new inflationary tether. The CPI-E specifically tracks the spending habits of households with persons aged 62 and up, allowing the program to make more accurate cost-of-living adjustments each year.
Biden’s proposals would face a significant challenge as it would require 60 senators voting in favor to get legislation passed. It’s not exactly easy to get bipartisan support for the changes when Republicans have no interest in raising taxes on wealthy individuals. Additionally, increasing taxes on high earners won’t save the Social Security program from insolvency, it will just delay it a few years.
Biden Is Latest Dem to Support Ridiculous Free Housing Proposal
Presidential candidate Joe Biden is the latest Democrat to throw their support behind the ridiculous idea that housing should be free
During an appearance yesterday, Biden said he agrees with “forgiving” both mortgage and rent payments. He says this as the country struggles with the coronavirus pandemic and 38 million Americans are without a job.
“There should be rent forgiveness and there should be mortgage forgiveness now in the middle of this crisis. Not paid later, forgiveness. It’s critically important to people who are in the lower-income strata.” said Biden
Tara Raghuveer, housing campaign director at People’s Action, a political network devoted to grassroots organizing, aired her opinion. She said, “The tenant is the most vulnerable person in the economy right now.”
She added, “The alternative to not canceling the rent is complete bottoming out of the market. And tens of millions of people literally never financially recovering from this moment.”
Calls for Housing Relief
Biden’s call for rent and mortgage relief echoes efforts by Minnesota Rep. Ilhan Omar. Omar introduced legislation that would bar landlords and lenders from collecting monthly payments. It would also impose late fees “through the duration of the pandemic.”
Under Omar’s plan, renters and mortgage borrowers who skip payments wouldn’t need to pay back anything once the rent and mortgage forgiveness policy ended. And any lender or landlord who violated the plan would face penalties.
Correctly, housing industry experts point out that allowing renters to skip payments also needs to consider the consequences of the landlords not being able to pay their own mortgages on the property.
“If multifamily landlords, particularly the small mom and pop landlords who own just maybe one to four units can’t make their mortgage payments and can’t stay in business, those are affordable units that are going to be lost to the private market,” said Flora Arabo, the national senior director of state and local policy at Enterprise Community Partners.
“Rent forgiveness without rental subsidies could be pretty catastrophic for tenants,” Arabo said.
Omar’s plan addresses these concerns, supporters say. It does so because it creates a fund for landlords and lenders so that they could recoup any losses.
Not surprisingly, Raghuveer’s organization, People’s Action, worked with Omar in drafting the bill. The organization threw in more stipulations for landlords to collect those funds. These include providing information on their revenues, refraining from discrimination based on the source of income, and other tenant protections.
Biden’s support for the rent and mortgage forgiveness plans doesn’t really mean much. However, the biggest problem with these free housing proposals is that they demonize landlords. They let the tenants immediately skip payments, but force the landlords to deal with bureaucracy and red tape to receive relief funds.
According to the Census Bureau, individual investors own nearly 75% of our nation’s rental units, not massive corporations. Those mom and pop landlords likely aren’t any more sophisticated than their tenants. They would also find themselves in the same dire financial situation should they lose the ability to collect rent.
Bob Pinnegar, president and CEO of the National Apartment Association, said in a recent interview, “Rent cancellation proposals do not adequately address the problem and fail to recognize that many property owners are in the same dire situation as their residents — substantial loss of income amid ongoing financial obligations.”
Entertainment Companies and Retailers Could Face Mass Extinction
Whether or not the country decides to enact official lockdown measures in an attempt to halt the spread of the coronavirus, some cities like Los Angeles New York City are taking their own measures to try and halt the spread.
Mayors in both cities ordered bars to close and restaurants to only offer take-out and delivery services.
On top of that, movie theaters and concert venues in both cities have been ordered to close.
How other cities handle the coronavirus outbreak remains to be seen, but it’s clear that any business that relies on people gathering in one place could face a serious survival threat in the coming weeks and months.
Here are a few industries and businesses that could face extinction in the coming months if the coronavirus outbreak become a full on pandemic here in the US:
The first ones to come to mind are theater companies if the order to close becomes widespread. The largest two are Cinemark (NYSE: CNK), AMC Entertainment (NYSE: AMC). Also consider National CineMedia (NASDAQ: NCMI) which runs all the ads you see before a movie.
Michael Pachter, an analyst at Wedbush Securities says “There is a genuine concern that [coronavirus] will limit theatrical attendance globally, whether driven by theater closures or fear of contamination.”
Also look at financial pressure being put on companies in the food and entertainment space like Dave & Buster’s (NASDAQ: PLAY).
Particularly vulnerable could be Diversified Restaurant Holdings (NASDAQCM: SAUC), which operates 64 Buffalo Wild Wings Franchises. With restaurants forced to shut down, the company could focus more on take-out orders for it’s popular wings and appetizers.
However, with nearly every major sports league shut down, including the upcoming NCAA March Madness tournament, there’s little need for large orders of wings to feed family and friends at home.
Most vulnerable could be the already struggling retailers like Ascena Retail Group (NASDAQ: ASNA) which owns brands like Ann Taylor, Loft and Lane Bryant.
JCPenney (NYSE: JCP) has managed to hold on a lot longer than many predicted, but this latest blow could be the final one for the company originally founded in 1913. The company’s footprint is now so small that any drop in business due to shoppers staying away could be fatal.
The last retailer is GNC (NYSE: GNC), the seller of supplements and vitamins. This one might be a “beating a dead horse” type of investment as the share price has already plunged from 98% in the last five years. But there’s never any foot traffic in the stores despite near-permanent sales and discounts, so this could be the final straw.
On the other side of the coin, if there are quarantine efforts put into place, it’s clear that a vast majority of Americans will simply double or triple their orders from Amazon for all their purchases. We will also likely see viewing time on Netflix soar.
Also expect a massive uptick in business for delivery companies like GrubHub (NYSE: GRUB).
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