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Apache is functioning normally

May 29, 2023 by Brett Tams

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

Mortgage rates increased last week and remain high today. High rates have strained affordability for those who are trying to purchase a home during the peak homebuying season. But some relief may be on the way for those who wait to buy later in the season.

In its latest mortgage forecast, the Mortgage Bankers Association predicted that 30-year mortgage rates will finally drop below 6% by the end of 2023. Looking further ahead, the MBA thinks rates could reach 4.8% by the end of 2024 and 4.5% by the end of 2025.

Today’s Mortgage Rates

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Today’s Refinance Rates

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Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

Total paid$418,177
Principal paid$275,520
Interest paid$42,657
  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Mortgage Rate Projection for 2023

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022.

But many forecasts expect rates to fall later this year. In their latest forecast, Fannie Mae researchers predicted that 30-year fixed rates will trend down throughout 2023 and 2024.

But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control.

In the last 12 months, the Consumer Price Index rose by 4.9%. Inflation has continued to slow for several months now, which is a sign that the Fed’s efforts are working.

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

When Will House Prices Come Down?

Home prices declined a bit on a monthly basis late last year, but we aren’t likely to see huge drops this year, even if there’s a recession.

Fannie Mae researchers expect prices to decline 1.2% in 2023, while the Mortgage Bankers Association expects a 0.6% decrease in 2023 and a 1.4% decrease in 2024.

Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates may start to drop this year, which would remove some of that pressure. The current supply of homes is also historically low, which will likely keep prices from dropping too far.

What Happens to House Prices in a Recession?

House prices usually drop during a recession, but not always. When it does happen, it’s generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.

How Much Mortgage Can I Afford?

A mortgage calculator can help you determine how much you can afford to borrow. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.

Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn’t exceed 28% of your pre-tax monthly income.

The lower your rate, the more you’ll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.

Molly Grace

Mortgage Reporter

Source: businessinsider.com

Posted in: Renting Tagged: 2, 2021, 2022, 2023, 30-year, 30-year mortgage, About, affordability, average, best, big, Borrow, borrowing, Budget, business, Buy, buyers, Buying, calculator, Cash-Out Refinance, commission, Consumer Price Index, Credit, credit card, credit cards, down payment, equity, estate, expenses, experts, Fall, Fannie Mae, fed, Federal Reserve, Financial Wize, FinancialWize, fixed, Forecast, Forecasts, Free, good, HELOC, HELOC rates, historic, home, home equity, home equity line of credit, home prices, home renovation, homebuying, homeowners, homes, house, Housing, how much mortgage, in, Income, index, Inflation, Insurance, interest, interest rate, interest rates, lenders, leverage, line of credit, loan, Loans, low, LOWER, market, MBA, money, More, Mortgage, Mortgage Bankers Association, mortgage calculator, mortgage lenders, mortgage payment, MORTGAGE RATE, Mortgage Rates, Mortgages, offer, Other, payments, Personal, Personal Loans, play, points, pressure, price, Prices, principal, Product Reviews, Purchase, questions, rate, Rates, reach, Real Estate, Recession, Refinance, renovation, Reviews, right, rose, save, search, second, sellers, Spending, tax, taxes, the fed, trend, under, value, will, working, Zillow

Apache is functioning normally

May 29, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

Already having a tough time sticking to your New Year’s financial goal to save more and spend less in 2015?

Well, we are here to help! We’re partnering with some smart and savvy consumer financial experts and Mint partners for a live Twitter chat to discuss some of the biggest spending trends and pitfalls and address how you can stick you your financial resolutions. After all, February is the new January.

So join us on Wednesday, February 4th at 12pm PT/ 3pm ET for a live, hour-long #HowWeSpend Twitter chat to learn more about how to make smarter spending decisions this year.

Host

@Mint 

Participants

Mint’s own (@hperez), financial educator & #1 bestselling author (@TheBudgetnista), CNBC’s senior personal finance correspondent (@sharon_epperson), money-saving expert and Kiplinger.com columnist (@CHLebedinsky), bill pay tool and Mint partner (@MintBills), trusted name in consumer credit and resource for personal finance advice (@EFXFinanceBlog) and others.

How to participate

Make sure you follow Mint (@Mint) on Twitter so you can jump right in. Use the hashtag #HowWeSpend to search and select the “All” search option to follow the chat in real time.

Save more, spend smarter, and make your money go further

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Apache is functioning normally

May 28, 2023 by Brett Tams

April 4, 2022
by Zach Festini

As mortgage rates continue to rise, it’s more important than ever to stay updated on the latest industry news. Let’s get right into it and cover last week’s happenings that are continuing to affect the mortgage market.

Rates Update

Last week, mortgage rates kept moving upward in accordance with rising inflation and the Federal Reserve’s interest rate announcement (more on that below). Freddie Mac reported rate increases across the board for the week ending Thursday, March 31; and like many experts, they predict that this rising trend will continue.

The average lender is now offering well over 4.50 percent for 30-year fixed-rate loans, which should signal prospective borrowers to pursue financing now. Should this pace continue, we could see the average mortgage rates for 30-year options near five percent within the next month.

Our forecast: mortgage rates will continue to rise. The pace at which they do so will likely be dictated by the Fed’s six remaining meetings this year, which will probably come with announcements of further interest rate spikes. If you’re in the market for something new, we can’t stress enough how important it is to finance your home now. Our team of dedicated mortgage bankers is ready and available to help. Find one now or contact us with any questions.

Older, but Still Important News

Let’s cover some older industry news that has affected buyers since the start of this year.

  • For the first time since 2018, the Federal Reserve announced that interest rates will be rising by 0.25 percentage points – meaning mortgage rates will also rise – and that future increases will come over the rest of this year with each proceeding Fed meeting. To prospective buyers everywhere, this should be viewed as a red flag and a sign to follow through with a home purchase sooner rather than later.
  • Purchase applications are continuing to overtake refinance applications. And with the Fed applying upward pressure on mortgage rates through the rest of this year, opportunities to refinance will decline accordingly. When rates were at historic lows during the early pandemic, refinancing was an extremely appealing option for homeowners everywhere. Now that they’re back on the rise, though, we’re already seeing the opposite as we return to a high-demand purchase market. If you’re looking to refinance, act quickly and contact a Total Mortgage loan officer now.
  • At the start of February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were originally put in place in response to the pandemic but have since been removed, offering borrowers greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible for the self-employed.

To learn more about any of these recent developments, contact your Total Mortgage loan officer today.

In Closing

When it comes to financing a home, the time to act is now. The opportunity to refinance is already declining and the window to secure long-term savings with a lower rate is beginning to close. The sooner buyers act and lock in their rates, the more they’ll save in the long run. Contact us now with any questions and enjoy the rest of your week!


Filed Under: Uncategorized

Source: totalmortgage.com

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Apache is functioning normally

May 28, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

April is Financial Literacy Month. So there’s no better time than now to get the 4-1-1 on your personal finances. Mint is teaming up with popular personal finance experts for a live Twitter chat to share their tips and tricks on how to successfully manage your money and answer those burning questions about saving, investing, budgeting and the dreaded “D” word, debt.

Pull up a keyboard and join us on Tuesday, April 21st at 12pm PT/ 3pm ET for a live, hour-long #Money411 Twitter chat to hear from Mint and other consumer financial experts on better money habits for today and the future.

Host

@Mint

Participants

Mint’s own (@hperez), CNBC’s senior personal finance correspondent (@sharon_epperson), popular blogger of Budgetsaresexy.com (J. Money) and author of the forthcoming book Make Your Kid a Money Genius (Even If You’re Not) and member of the President’s Advisory Council on Financial Capability for Young Americans (Beth Kobliner).

How to participate

Make sure you follow Mint (@Mint) on Twitter so you can join the conversation. Use the hashtag #Money411 to search and select the “All” search option to follow the chat in real time.

If you want your questions to be included in the chat, tweet @Mint with your #Money411 question.

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Apache is functioning normally

May 28, 2023 by Brett Tams

Why You Should Spend Like A Millionaire- The Frugal and Smart Money Habits of Millionaires

Why You Should Spend Like A Millionaire- The Frugal and Smart Money Habits of MillionairesYou may have shook your head when you first read this title. However, hear me out and continue reading to learn more about the habits of millionaires! The rich are rich for a reason- most of them know how to manage their money correctly.

Sure, there are stories about rich people who spend their money like crazy and end up in bankruptcy.

But, surprisingly, the average millionaire is frugal, and they know how to manage their money well.

Related posts:

Here are some examples of millionaires and billionaires who are frugal:

  • Warren Buffett lives in a house that he bought in 1958 for around $30,000.
  • Mark Zuckerberg drives an Acura.
  • John Caudwell (worth $2.7 billion) rides his bike 14 miles to work every day and even cuts his own hair.
  • Jim C. Walton (son of Walmart founder) drives an old truck with no air conditioning.

I have personally met several retirees who have millions and live in an RV. RVing is a ton of fun, but a lot of people just assume that RVers have no money. If only they actually knew! We made one friend while RVing who actually has a nice house and millions in the bank, but he lives in an RV that is worth less than $20,000. You never would have guessed!

If you want to learn how to become rich (whatever amount of money or lifestyle that means to you), continue reading in order to learn more about the money management habits of millionaires.

They wear the same outfits.

President Barack Obama once said, “You’ll see I wear only gray or blue suits. I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make.”

Many other successful people feel the same way, including Mark Zuckerberg, the late Steve Jobs, Albert Einstein, and many others.

The average family spends $1,700 a year on clothing, which is a lot of money. Plus, the average person wastes anywhere from 10 to 30 minutes a day when deciding what to wear!

Having multiple outfits can lead to wasting time deciding what to wear, as well as wasting money.

They have more than one source of income.

A lot of millionaires have many sources of income, and this is one of the many great habits of millionaires.

They may have a day job, a business, rental properties, dividend income, and more. This allows them to bring in more money.

They also do this because millionaires know that one source of income may not last forever, and they are also able to lessen their risk by having multiple income streams.

Read about some of the many ways to make money at 75+ Ways To Make Extra Money.

They have long-term goals.

Successful people and millionaires are known to set goals, especially long-term ones. They are extremely determined and without goals it would be hard to be successful.

Setting goals is important because without a goal, how do you know where you’re heading? Goals can help keep you motivated and striving for your best.

Please keep this quote from Statistic Brain in mind:

People who explicitly make resolutions are 10 times more likely to attain their goals than people who don’t explicitly make resolutions.

And, it’s true!

They have a budget.

Yes, even millionaires have budgets! Not all of them have a traditional budget, but trust me, they know where their money is going and they are watching their cash flow closely.

Tracking your money and knowing where it is going can help you see where you’re wasting money and what spending habits need to be changed.

They educate themselves on financial matters.

When millionaires are unsure of a financial decision or implication, they either seek out financial advice from an expert and/or they seek out the knowledge they need to know by educating themselves.

Millionaires are always learning.

They read numerous books, attend classes, read the newspaper, and more.

They know the value of experts.

Continuing from the previous habit, the rich are interested in educating themselves, but they also know when to hire help.

Knowing when to get help from accountants, lawyers, experts, and more can help them take advantage of confusing laws, areas where they aren’t experts, etc. This can prevent wasteful spending, bad investments, and unnecessary legal issues.

This helps them save time as well as money!

They don’t fall for lifestyle inflation.

Millionaires tend to live below their means. Yes, many of them still spend money extravagantly, but many aren’t living paycheck to paycheck in order to do so.

Many millionaires buy items used, they drive “normal” cars like Toyotas, and they aren’t trying to keep up with the Joneses.

This is drastically different from those who aren’t millionaires.

Here are some money statistics that may scare you:

  • 68% of people live paycheck to paycheck.
  • 26% have no emergency savings.
  • The average household has $7,283 in credit card debt.
  • The average monthly new car payment is around $480.

Many people try to keep up with others and fall for lifestyle inflation, which can prevent you from being good with money.

When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards so that you can (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

They pay themselves first.

Millionaires pay themselves first.

Sure, they have more money to work with, but they always make sure to save money before spending it.

Paying yourself first is when you put money into savings as soon as you receive your paycheck. Doing this may allow you to save more money and cut back on unneeded spending, and it can help you prepare for the future.

They invest.

Millionaires make their money work for them, and that is how they stay rich.

Investing is important because it means you are making your money work for you. If you aren’t investing, your money is just sitting there.

This is important to note because $100 today will not be worth $100 in the future if you just let it sit under a mattress or in a checking account. However, if you invest, then you can actually turn your $100 into something more. When you invest, your money is working for you and hopefully earning you income.

For example: If you put $1,000 into a retirement account that has an annual 8% return, 40 years later that would turn into $21,724. If you started with that same $1,000 and put an extra $1,000 in it for the next 40 years at an annual 8% return, that would then turn into $301,505. If you started with $10,000 and put an extra $10,000 in it for the next 40 years at an annual 8% return, that would then turn into $3,015,055.

Learn more at The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!

They still use coupons and haggle.

Yes, one of the many habits of millionaires is that they tend to still use coupons and even negotiate in order to get the best pricing!

What other habits of millionaires am I missing? Share in the comments below!

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Apache is functioning normally

May 28, 2023 by Brett Tams

There’s a divide in the world of personal finance. On one side are the folks who offer advice for scrimping and saving your way to financial success. On the other are the experts who scoff at frugality and champion big wins. I think there’s a place for both.

From my perspective, it’s important to do the small stuff — clipping coupons, conserving electricity — because doing so builds good habits. And, of course, many small actions combine to yield big rewards in the long term. (Plus there’s the fact that a frugal lifestyle costs less to support, which means you can reach financial independence all the sooner!)

On the other hand, the “big wins” camp has a valid point. Too many people focus exclusively on the small stuff because it’s easy to do and doesn’t require any real sacrifice. Yet you improve your monthly cash flow by hundreds of dollars by achieving a single big win, which is likely to be more than you save on all of the thrifty things you do combined.

Big Wins vs. Pyrrhic Victories

The way I see it, there are four types of things you can do to reduce your expenses or boost your income.

  • Difficult (or time-consuming) things that provide small pay-offs. These pyrrhic victories include things like going door-to-door to collect old newspapers in order to earn money or making your own laundry detergent.
  • Easy (or quick) things that provide small pay-offs. Because there are so many of these opportunities, they’re the bread and butter of personal finance. They’re the daily victories with which we’re all familiar. On the income side, they include working overtime and participating in research studies. Small, quick ways to reduce spending include clipping coupons, buying clothes at thrift stores, and making use of the public library.
  • Difficult (or time-consuming) things that provide big pay-offs. Some tasks, such as moving to a cheaper home in a cheaper city, can provide huge rewards, but they take a lot of time and effort to accomplish. These are ongoing projects, and might include selling all of the stuff you’ve collected in your attic or garage. (An example of this is me selling my comic books last year.)
  • Easy (or quick) things that provide big pay-offs. Here’s where you should spend most of your time: Working toward big wins. These include negotiating your salary (which takes minutes, but pays off for decades to come) and reducing your transportation costs (which you can do in a matter of days).

Here’s a diagram to provide a visual representation of what I’m describing:

The reward quadrant
Some actions provide bigger payoffs than others. And some are easier than others.

Note: For convenience, I’m saying that the things we do fall into one of these four quadrants. In reality, all of this exists on a continuum. Some of the easy actions are easier than others. And each of us will obtain slightly different results.

As you can see, big wins are the best way to improve your financial situation. They’re easy (or quick) to achieve, but provide big rewards. If you want to improve your financial situation, start with these.

How to Achieve Big Wins

Here are some examples of common ways to achieve big wins that will dramatically improve your cash flow:

Housing

Housing is the biggest expense for most Americans — and by a wide margin. According to the U.S. Bureau of Labor Statistics’ 2012 Consumer Expenditure Survey (CES), the typical American household spends 32.8 percent of its income on housing, which includes mortgage (or rent), maintenance, insurance, interest, and utilities.

In an ideal world, you’d slash your housing expense by buying an affordable home in a city with a low cost of living. But while that would provide a huge financial reward, it’s not exactly easy, which means it doesn’t qualify as a “big win” in my world. But there are easier ways to reduce your living expenses.

The biggest (and, admittedly, most difficult) is to move within your current city. Sell your home (or move out of your rental) and choose something more affordable. Think about it: If you’re an average American who spends slightly more than $50,000 per year, $1,408 is going to housing every month. Drop that by 10 percent, and you’ll save almost $150 per month. Drop it by 30 percent, and you’ll save more than $5,000 per year!

Transportation

Transportation is our second-largest expense. We spend an average of $750 per month (17.5 percent of the typical budget) to get around, including vehicle payments, gasoline, insurance, and repairs. I know Americans love their automobiles. They’re loath to let go of them, even in the face of logic. But imagine how much you could save if you could cut your car costs in half! How do you do that?

  • Sell your current car. Replace it with a used vehicle, one that’s fuel efficient. (Side benefit: An older, used vehicle will cost less to insure!)
  • Drive your car only when necessary. When possible, bike or walk to reach your destination. (Side benefit: Increased fitness, which also saves you money!)
  • Make use of public transportation. (Side benefit: Time to read!)

Usually when I recommend people make changes to the way they get around, I’m met with a wall of objections. No worries. I’m used to it. But let me suggest that instead of looking for reasons you can’t do this that you instead look for ways you can. You’ll save yourself buckets of money.

Other expenses

Together, housing and transportation consume half of the average American’s budget. There are enormous opportunities to save if you choose to economize on these two categories. But there are dozens of ways to achieve big wins in other areas too.

The CES reveals that the typical household spent $1,736 on clothing in 2012, $3,556 on health care, $2,605 on entertainment, and $6,599 on food (which doesn’t include the $783 that went toward alcohol and tobacco).

Because each of us is different and we spend in different ways, opportunities for big wins vary from person to person. For example, after tracking my spending for the last half of 2013, I realized that I was spending way too much on travel. This year, I hope to cut my travel costs in half. Doing so would allow me to save money toward other goals, such as, guitar lessons.

Examine your own spending. Where do you have the most room to cut back? How can you do it? Look for big wins — and make them happen.

Income

I’ve written before about the importance of increasing your income. While it’s great to cut your spending, you can only trim your budget so far. Your earning potential, on the other hand, is theoretically unlimited. If you really want to get rich — slowly or otherwise — you’re going to have to make more money.

But as with spending, some methods of boosting your income provide big wins while others don’t. Here are two easy (or quick) ways to make a big difference to the amount of money you make:

  • Take a second job. Earning more in your spare time is a quick way to boost your cash flow, and it’s something that almost anyone can do. Some people don’t like the idea of taking a second job (they feel like it’s beneath them) and others are full of reasons that doing so is impossible (they don’t have time, the job market is tough). But for those who choose this path, a second job involves less risk and planning than most other income-boosting strategies, and it’s likely to cause far less stress than your primary job.
  • Negotiate your salary. One of the best ways to increase your income is at the source: during salary negotiations when you land a job or during a performance review. For many folks, salary negotiations can be awkward or scary. But in his book Negotiating Your Salary, career coach Jack Chapman argues that those few minutes during which you ask for more money in an interview can make a difference of tens of thousands of dollars over your career. Maybe hundreds of thousands. That’s a big win.

There are other ways to supercharge your income — become better educated, start a side business, become a landlord — but they take more time and effort. You can find a second job this week and be earning more toward your financial goals. And you can negotiate a salary increase the next time you sit down for a performance review. Both provide big boosts to your earnings for a minimum of effort.

The Bottom Line

I’m not saying you shouldn’t make your own laundry detergent or collect newspapers to earn money. But I think it’s important to put these activities in their proper place and to realize that you will never get rich doing them. (In fact, they’re a poor way to get out of debt.) It’s better to focus on actions that are easier to complete and/or yield greater rewards.

The biggest barrier between the average person and big wins isn’t ability. It’s psychology. Big wins generally require effort and sacrifice, which can be tough to stomach, especially if you’re just getting started with smart personal finance. But the sooner you understand that these aren’t fringe ideas, the quicker you’ll get out of debt or reach financial independence. The small stuff forms a great basis for behavioral change, but it’s doing the big things that will make you rich.

Source: getrichslowly.org

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Apache is functioning normally

May 28, 2023 by Brett Tams

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Wall Street is a place that people love to hate.

The Wall Street of today, however, could not be further from the one we know and fear: it’s a trillion-dollar industry with innovation brewing in every corner. You may have heard about these innovations on The Big Short or Moneyball but you might want to broaden your horizons when it comes to movies that feature this major American institution.

While learning about money, finances, and the stock market may or may not be your thing, there is plenty to learn while being classically entertained.

When you’re studying for the MCAT, going through a financial audit, or watching skyrocketing inflation happening before you, it can be hard to find films that accurately portray modern finance.

But Wall Street is full of memorable characters and interesting situations with plenty of twists and turns to keep your attention.

Whether you’re looking for movies about trading on Wall Street or movies about money itself, here are 25 classics worth watching over and over again!

Followed by a list of the best documentaries on stock market trading.

Wall Street is one of the most fascinating and exciting places on Earth. The best movies about Wall Street capture the excitement, drama, and humor that are found in this industry.

Best Movies About Wall Street

Plenty of movies have been made about Wall Street over the years. There is a fascination with the life of a trader and how it intersects with business.

The order dated from the oldest movie to the most recent film.

Here are 25 of the best films set at the intersection between finance and our culture:

1. “Edison, the Man” (1940)

The movie is about the life of Thomas Edison, one of the most famous inventors in history.

The main character is played by Spencer Tracy, who does a great job portraying businessman Thomas A. Edison. The story follows Edison’s journey from being a stockbroker on Wall Street to becoming one of the most famous inventors in history.

Most of the film’s script is fictionalized or exaggerated, it should be viewed as such.

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2. “Citizen Kane” (1941)

Citizen Kane is a 1941 American drama film directed by, produced by, and starring Orson Welles. The picture was Welles’s first feature film. The screenplay, written by Herman J. Mankiewicz and Welles, was based on the life of William Randolph Hearst.

Citizen Kane helped form the idea that there should be a cultural shift in how we view Wall Street. It is considered to be one of the greatest movies ever made because it’s highly innovative, artistic, and technical with many different themes being explored throughout its runtime.

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3. “It’s A Wonderful Life” (1946)

“It’s A Wonderful Life” is a classic movie for the generations.

The protagonist of the movie is George Bailey. The movie revolves around the idea that if George Bailey never existed, life would be much worse off. This film is a classic and a must-watch for anyone interested in finance or business.

Ultimately, he learns some valuable lessons about life and himself.

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4. “Trading Places” (1983)

“Trading Places” is the funniest movie about Wall Street. The plot revolves around how one man’s fall from Wall Street is another man’s blessing.

It’s a classic movie about Wall Street that is still relevant today. The film follows the story of two men whose lives are drastically changed when they’re made the subject of a bet on Wall Street. It stars Dan Aykroyd, Eddie Murphy, Ralph Bellamy, Don Ameche, Denholm Elliott, and Jamie Lee Curtis.

Released in 1983, Trading Places was a box-office success. Earning over $90 million, the film became the fourth-highest-grossing film of that year in the United States and Canada. Furthermore, it was critically acclaimed for its humor and cast.

John Landis directed “Trading Places” and it is an absolute classic. Watching Murphy talk about futures and markets is hilarious.

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Try Apple TV

5. “Working Girl” (1988)

“Working Girl” is a 1986 romantic comedy-drama film directed by Mike Nichols and written by Kevin Wade. The film stars Melanie Griffith, Harrison Ford, Sigourney Weaver, Alec Baldwin, and Joan Cusack. It received many Academy Award nominations in 1989, including Best Picture and Best Actress (for Griffith).

The story follows Tess McGill (Griffith), an ambitious secretary who pitches a profitable idea to her boss only to have her boss take credit. After her boss (Weaver) is out with a medical injury, Tess teams up with investment banker Jack Trainer (Ford) to make a big deal. Things get complicated when her boss comes back and discovers what Tess has been up to.

“Working Girl” was praised by critics upon release and became a box office success. It grossed over $96 million worldwide against its $13 million budget.

The idea for Working Girl came when writer Kevin Wade and producer Douglas Wick were in New York City together in 1984 and noticed throngs of career women walking to work while carrying their high heels (source).

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6. “Wall Street” (1987)

“Wall Street” is a 1987 American drama film directed by Oliver Stone and starring Michael Douglas, Charlie Sheen, and Daryl Hannah. The film tells the story of Bud Fox (Sheen), a young stockbroker who wants to make it big in the world of finance.

An eager and inexperienced stockbroker is willing to do anything to get ahead, including going through an unscrupulous shady corporate raider who takes the young-in-awe under his wing.

The movie was nominated for seven Academy Awards, including Best Picture and Best Actor (Michael Douglas).

A sequel titled “Wall Street: Money Never Sleeps” was released 23 years later.

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7. “Bonfire of the Vanities” (1990)

“Bonfire of the Vanities” is a movie that captures the class-consciousness of 1980s New York.

The film focuses on Wall Street and New York City’s stratification issues. In particular, it focuses on the Manhattan elite and how they are separated from other social classes in the city.

The film is based on a book by Tom Wolfe, who was inspired by his own experiences living in Manhattan during that time period.

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8. “Other People’s Money” (1991)

Other People’s Money is a 1991 American comedy-drama film directed by Norman Jewison and starring Danny DeVito, Gregory Peck, and Penelope Ann Miller. DeVito plays a ruthless businessman who buys companies and sells off their assets to make him rich.

Along the way, this corporate raider falls in love with the wife’s daughter, who is a lawyer. An avid lover of this woman, the corporate raider attempts to win her heart through legal maneuvering.

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9. “Glengarry Glen Ross” (1992)

Glengarry Glen Ross is a 1992 American drama film adapted by David Mamet from his 1984 Pulitzer Prize-winning play Glengarry Glen Ross. The film was directed by James Foley and stars Al Pacino, Jack Lemmon, Alec Baldwin, Alan Arkin, and Kevin Spacey.

“Glengarry Glen Ross” is a movie about the incentives of real estate salesman. This drama-filled movie shows what people will do to close a sale.

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10. “Barbarians at the Gate” (1993)

Barbarians at the Gate is a 1993 American drama made-for-TV movie based on the book of the same name by Bryan Burrough and John Helyar. The film was directed by Glenn Jordan and stars James Garner as H. Ross Perot, Peter Riegert as Henry Kravis, and Swoosie Kurtz as Ruth Harkness.

The film tells the story of a leveraged buyout between two Wall Street insiders who battle for control over a company. It is considered one of the best movies about Wall Street because it provides an inside look at how these deals are made.

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11. “The Associate” (1996)

The Associate is an American comedy movie released in 1996.

Investment banker Laurel Ayres (Whoopi Goldberg) is an associate for an investment firm who has great advice but doesn’t get the respect she deserves because she is a black woman.

Money is power, so she uses a white man as her partner. The protagonist has great advice but no one will take it seriously because she’s a woman of color with an African American sounding name. To prove her worth, the protagonist creates a fictional white male figure to be her business partner to make people listen to her more than they would otherwise.

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12. “Rogue Trader” (1999)

Rogue Trader is a 1999 British drama film directed by James Dearden and starring Ewan McGregor and Anna Friel. It is based on the true story of Nick Leeson, a British trader who caused £800 million or about $1 billion in losses through unauthorized trades in 1987, and his attempt to cover up his losses by falsifying account documents.

Nick reads in the newspaper that the company went bankrupt and then realizes the severity of his losses. Him and his wife then decided to go back to London, but Nick is arrested en route from Frankfurt. Finally, Nick is extradited to Singapore where he is sentenced to six and a half years in prison.

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13. “American Psycho” (2000)

American Psycho is a satirical psychological horror film that was released in 2000 and is based on the novel of the same name by Bret Easton Ellis.

The film stars Christian Bale, Willem Dafoe, Jared Leto, Josh Lucas, Chloë Sevigny, Samantha Mathis, Cara Seymour, Justin Theroux, and Reese Witherspoon. It debuted at the Sundance Film Festival on January 21, 2000, and was released theatrically on April 14, 2000.

American Psycho is a movie about Patrick Bateman, a successful Wall Street executive with an inner darkness that leads him to commit heinous crimes. The film has developed a cult following over the years and is now considered a classic. Additionally, it has made a strong presence in contemporary meme culture.

A direct-to-video sequel, “American Psycho 2” was released in 2002.

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14. “Boiler Room” (2000)

Boiler Room is a movie about Wall Street corruption. It stars Giovanni Ribisi, Vin Diesel, Nia Long, Ben Affleck, Nicky Katt, and Jamie Kennedy.

This movie is about a young man, played by Giovanni Ribisi, who ran an unlicensed casino, but wasn’t making the living his father, a New York City judge wanted. So, with the promise of being a millionaire, he becomes a stockbroker in a brokerage firm.

In fact, the brokerage firm was running Pump and Dump schemes – investment scams that involve artificially inflating the price of stocks before dumping them onto uninformed investors.

The movie was met with mixed reviews by critics but audiences seemed to enjoy it more. I mean it did star Ben Affleck.

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15. “The Bank” (2001)

This Australian movie “The Bank” is about finance software that predicts stock market trends.

This drama-thriller heist film was directed by Frank Oz and written by Paul Schrader. The critical response was mixed but praised its acting performances, particularly from Al Pacino and Jennifer Wright Penn.

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16. “The Pursuit of Happyness” (2006)

“The Pursuit of Happyness” is a 2006 American biographical drama film based on the life of Chris Gardner. It tells the story of how he rose from homelessness to Wall Street success. The movie was directed by Gabriele Muccino and stars Will Smith in the leading role. It grossed over $307 million worldwide, making it one of Smith’s highest-grossing movies. In 2006, Will Smith was nominated for the Academy Award for Best Actor for his portrayal of Gardner.

The movie is set in San Francisco, California, and follows Gardner’s trials and tribulations as he strives to become a successful stockbroker. Despite being homeless with a young son, he never gives up on his dream. The film finishes with him landing a job at Dean Witter Reynolds and becoming a millionaire five years later.

Although “The Pursuit of Happyness” is not technically about Wall Street, it is an excellent depiction of what it takes to be successful in this field – grit, determination, and perseverance in the face of adversity.

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17. “Wall Street: Money Never Sleeps” (2010)

Wall Street: Money Never Sleeps is a 2010 American drama film directed by Oliver Stone. It is a sequel to Wall Street (1987), which was also directed by Stone. The film stars Michael Douglas, Shia LaBeouf, and Carey Mulligan.

The movie begins with the release of Gordon Gekko (Michael Douglas) from prison, where he has been for eight years for insider trading and securities fraud. He immediately goes to see his future son-in-law, Jacob (Shia LaBeouf), who is now working on Wall Street. Gordon helps Jacob get back at the man who screwed his mentor’s firm over.

The movie covers the events leading up to the financial crisis of 2008 and explores how it affects individuals, society, and culture. The firm was highly successful at the box office earning more than $134 million worldwide.

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18. “Margin Call” (2011)

Margin Call is a movie about Wall Street and bankers. It is considered a classic, and it was released in 2011. The banker in the movie has created a financial model that shows the firm will be completely underwater, but before he can show anyone else, he gets fired. He hands his model off to a junior banker who then has to save everything from this one data point on his laptop in the middle of the night while everyone is asleep.

Everyone wonders if “Margin Call” is a true story. While there is no specific person or company name, it rings true of what happened in the 2007-2008 financial crisis.

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19. “Too Big To Fail” (2011)

“Too Big To Fail” is a 2011 HBO adaptation of the book by Andrew Ross Sorkin. The movie covers the 2008 financial crisis and follows bankers who meet behind closed doors with regulators to negotiate the federal bailout of the financial industry.

The film was able to feature a parade of stars who played different bank and investment bigwigs. While it’s based on true events, there are some dramatizations in order to make for a more compelling film.

It’s an interesting look at how Wall Street operates and what happens when things go wrong.

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20. “Cosmopolis” (2012)

“Cosmopolis” is a movie starring Robert Pattinson about an incident involving currency speculation. The plot of the movie is quite complicated and may leave viewers scratching their heads as to what just happened.

The protagonist, Eric Packer, is a Wall Street investor who finds himself in the middle of an unexpected incident while in New York City. His wife and lover are introduced throughout the story but it doesn’t make sense why they would be in New York City together.

This movie has a lot of intrigues that will keep you on your toes as you weave through his personal life and the emotional rollercoaster of trading!

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21. “Arbitrage” (2012)

“Arbitrage” is a movie about an ambitious hedge fund manager who tries to sell his company before anyone finds out he’s cooked the books. The plot involves a mistress accidentally dying in a car accident and its cover-up, with help from an unlikely source.

The movie is well acted and suspenseful and provides great insight into the world of high finance.

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22. “The Wolf of Wall Street” (2013)

The Wolf of Wall Street is a 2013 American biographical black comedy crime film directed by Martin Scorsese and written by Terence Winter, based on the memoir of the same name by Jordan Belfort. The film stars Leonardo DiCaprio as Belfort, Margot Robbie as his wife Naomi Lapaglia, Jonah Hill as Donnie Azoff, and Kyle Chandler as Patrick Denham.

This true story of Jordan Belfort, who starts his own company in the early 1990s and quickly grows their company – more importantly their status in the trading community on Wall Street. At the same time, so do their substance abuse and lies. Belfort is named the Wolf of Wall Street by Forbes Magazine. Soon after, the FBI look into Belfort’s trading schemes…

Now, you will have to finish the movie to see what happens.

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23. “The Big Short” (2015)

The Big Short is a movie about the 2008 financial crisis and Michael Burry’s role in it. It was directed by Adam McKay and stars the brilliant ensemble cast in this movie of Christian Bale, Steve Carell, Ryan Gosling, Brad Pitt, and Marisa Tomei. The film was nominated for five Academy Awards, including Best Picture and Best Director (source).

Viewers praise the film for being entertaining and broad. It is among the top Wall Street movies.

Not many people are brave enough to go against the market trends and big banks except for Michael Burry. Who came out ahead on the big short in the housing market?

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24. “Money Monster” (2016)

George Clooney and Julia Roberts team up in this financial thriller as TV show hosts who are taken hostage at gunpoint due to an irate investor. There is a tense standoff taking place on live television.

The film was directed by Jodie Foster and received mixed reviews, but still did well at the box office.

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25. “The Wizard Of Lies” (2017)

The Wizard of Lies is a 2017 American biographical drama film about the fall of Bernie Madoff. Madoff’s Ponzi scheme was highly watched across the world as it was the largest spam in US history as he robbed at least $65 billion from unknowning victims. The film stars Robert De Niro as Bernie Madoff, Michelle Pfeiffer as Ruth Madoff, Alessandro Nivola as Mark Madoff, Nathan Darrow as Andrew Madoff, and Kristen Connolly as Catherine Hooper.

The film shows how the family of Bernie Madoff falls apart amidst the scandal.

“Bernie Madoff” is a biopic about the infamous Ponzi schemer who was jailed for orchestrating one of history’s largest financial pyramids. The film utilizes Robert DeNiro as Bernie Madoff, and tells the story from his perspective. Critics praised the film for being powerful.

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What movies are about Wall Street?

Picture of a street sign of Wall street for what movies are about wall street

There are a lot of great movies about Wall Street, but it can be hard to pick the best ones.

Some of our favorites include “Too Big to Fail,” “Boiler Room,” and “The Wolf of Wall Street.”

Which movie is based on stock market? Much Watch Ones

Picture of trading software for which movie is based on stock market.

There are many movies based on the stock market. Some of the most popular ones include “The Wolf of Wall Street,” “The Big Short,” and “Margin Call.”

These movies tell the story of people who have made or lost a lot of money trading stocks and other investments. They offer a fascinating look at what happens behind the scenes on Wall Street, and they can be very educational for anyone interested in investing.

What Are the Top 3 Hedge Funds Movies to Watch?

There are a number of great movies about Wall Street and the hedge fund industry. Some of the most popular ones include “The Big Short“, “Boiler Room“, and “Arbitrage.”

These movies offer a fascinating look into the world of high finance and provide an interesting perspective on the industry. Hedge funds can be very profitable, but they can also be risky. Watch these films to learn more about the risks involved in this kind of investing, as well as the rewards.

Best Finance Documentaries

Picture of a guy in a business suit for the best finance documentaries

Ever since the 2008 financial crisis, film buffs have been obsessed with anything related to Wall Street.

From the “Trader” to the “Inside Job”, Hollywood seems ready to take on the global financial sector.

We’ve compiled a list of some of the best finance-related documentaries available to watch.

1. “Trader” (1987)

In the 1987 film “TRADER,” Paul Tudor Jones II offers a highly charged look at what it takes to make it as a Wall Street trader. The film was shot before the October 1987 crash, so it is an interesting historical artifact.

It delivers a rarely seen view of this marketplace and explains the workings of this frantic, highly charged area. This film is important because it captures America as it nears the end of its 200-year bull market.

“Trader” is a fascinating look into the minds of traders and their thought processes. It provides an inside look at the strategies that traders use to make money and how they think about the markets. If you are interested in learning about trading or want to get a better understanding of how it works, then Trader is a must-read documentary.

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2. “The Trillion Dollar Bet” (2000)

The Trillion Dollar Bet is a documentary about a magic formula, specifically the Black–Scholes–Merton formula, which was dreamed to reduce risk in the stock market.

It is an interesting film because it portrays Wall Street in a way that many people have never seen before. As they started to use this “dream” formula, they started losing huge amounts of investments each day. The movie focuses on the rise and fall of hedge funds, with a specific focus on the 1994-1998 period when one of them went bankrupt.

The documentary will interest many people who are interested in finance, economics, and investing.

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3. The Corporation (2003)

“The Corporation” is a documentary film written by Joel Bakan, and directed by Mark Achbar and Jennifer Abbott.

Released in 2003, the film examines the nature of the modern corporation, considering its legal status as a “person”, and how this affects different aspects of corporate behavior. The film won numerous awards including at the Sundance Film Festival (source).

And check out the latest… The New Corporation: The Unfortunately Necessary Sequel

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4. Enron – The Smartest Guys in the Room (2005)

The film “Enron – The Smartest Guys in the Room” tells the story of Enron, a company that was involved in accounting fraud and created $30 billion worth of debts. Enron is often seen as an example of corporate corruption and the Enron incident is often considered the best example of that.

This documentary tells the story of how Enron became one of the largest companies in America before its collapse.

Critics reviewed the film positively and it also received good ratings from audiences.

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5. Wall Street Warriors (Season 1-3 | 2006)

If you’re looking for a reality TV series that will take you inside the fascinating and high-pressure world of Wall Street, look no further than “Wall Street Warriors”.

The show follows the lives of those working on Wall Street – from traders to investment bankers to hedge fund managers.

There are 3 seasons, with each season consisting of 26 episodes. So whether you’re looking for an hour of entertainment or you want to learn more about the financial industry, “Wall Street Warriors” has something for you.

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6. The Ascent of Money (2008)

The documentary traces the origins of money, credit, and banking throughout history.

The title is interesting because it provides a comprehensive overview of how money has evolved over time. The documentary also interviews experts from various financial backgrounds, which makes it an insightful watch for anyone looking to gain a better understanding of finance.

The Ascent of Money is a 2008 documentary film written and directed by Michael Lewis and won an International Emmy Award.

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7. Floored (2009)

The documentary focuses on the futures exchange in Chicago, and how digitization and computerization are changing trading floor practices. It features interviews with various traders who offer their insights into this rapidly-changing industry.

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8. Million Dollar Traders (2009) – Mini Series

These ordinary traders did better than the pros. Some of the best traders included a student, a soldier, and a single mother of 2 children. They may have lacked experience, but they made up for it with guts and determination.

The reality mini-series happens during the recession of 2008 – also known as not a great time to be a trader. As the market falls, the story becomes personal for many of these non-traditional traders.

In fact, this is similar to what Teri Ijeoma is doing today.

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9. Capitalism: A Love Story (2009)

Capitalism: A Love Story is a 2009 documentary film written and directed by Michael Moore. The film examines the financial crisis of 2007-2008 and the subsequent economic recession.

The criticism in Capitalism: A Love Story is clearly pointed at businesses that take risks for profit-led motives, with public funds ultimately securing the risk. For example, Moore interviews former Merrill Lynch CEO John Thain, asking how much money he made while his company was losing $8 billion per quarter.

Moore interviews many too financial gurus to ask the question – What is America’s cost for its love of capitalism?

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10. “Inside Job” (2010)

Inside Job is a made-for-television documentary about the Fall 2008 financial crisis.

This documentary tackles the 2008 financial collapse in a way that is easily digestible, featuring interviews with experts in the field of finance. The film takes a look at some of the factors which led to the Great Recession, such as deregulation and Wall Street executives going unpunished.

The film walks viewers through topics such as extreme consolidated power on Wall Street, questionable banking practices which helped create the housing bubble, and federal regulators’ bailout that kept most big banks afloat after the 2008 financial collapse.

The movie was directed by Charles Ferguson, and it won an Academy Award for Best Documentary in 2011.

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Most Acclaimed Wall Street Movies

Picture of a movie theater for the most acclaimed Wall Street movies.

Many people ask, is there any movie on stock market? In fact, there are plenty!

In fact, there is probably a new flourish of movies being made about the economic effects from 2020 onward.

These are the top Wall Street Movies you must watch!

What is your favorite movie about wall street?

Everyone will have their favorite pick!

Start a movie club and discuss which Wall Street movies. This is a great way to understand the impact of what is going on in the financial markets.

Which Must Watch Stock Market Movies are on Your List?

These movies and documentaries are incredibly informative to find out what is happening on Wall Street and how things are handled.

They offer great insights into what can happen when things go wrong on Wall Street. If you’re interested in finance or investment banking, I highly recommend watching these movies!

More Resources for You…

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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Apache is functioning normally

May 28, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

’Tis the season to think green! So let’s do as the leprechauns do and celebrate a goal shared by real and imaginary creatures alike: protecting one’s stash.

Whether you’ve got an overflowing pot of gold or a more modest balance sheet, here are four principles for protecting your wealth.

Insure Your Stash

The biggest threat to your wealth is unforeseen expenses, especially medical bills; home and car repair; liability; and lost income due to death or disability. Failing to carry insurance against catastrophic losses isn’t thrifty; it’s shortsighted. The good news is that more Americans have access to affordable medical insurance than ever before, and shopping for car and home insurance has gotten cheaper and more convenient thanks to online marketplaces.

Plan for Emergencies

Your emergency fund (aka auxiliary pot of gold) works along with insurance. The emergency fund protects you against small losses; insurance protects you against big ones. Personal finance experts will argue endlessly about how big your emergency fund should be ($1000? Three months of expenses? Six months?), but we all agree on this: any emergency fund is better than none. Keep it in an FDIC-insured savings account; an online account that pays a little interest is a good choice.

Invest Your Gold Wisely

Most of us will have to fund a substantial portion of our retirement from our own savings. That makes it critical to invest well. Luckily, this doesn’t require supernatural abilities. Choose low-cost funds (such as index funds), don’t take more risk than you can handle (always own both stocks and bonds), save aggressively, and don’t be impulsive. Make a plan and stick to it regardless of what your cousin warns you about on Facebook. Great investing may be boring: it means thinking long-term, using unexciting mutual funds, and not making any sudden moves.

Create Your Own Pot of Gold

When we’re trying to save more money, we obsess over restaurant meals, entertainment, and travel—that is, we start by trying to cut out the most enjoyable, stress-relieving parts of our lives, even though they probably add up to a small part of our monthly spending. Instead, consider what you could save on housing or transportation. Voluntarily downsizing or giving up one car in favor of public transit, cycling, or car sharing can save hundreds per month, and there’s no evidence that it will make you any less happy. (Unless you reduce your commute time or get some cardio in on the way to work, in which case it’ll make you more happy.)

Save more, spend smarter, and make your money go further

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Source: mint.intuit.com

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Apache is functioning normally

May 28, 2023 by Brett Tams

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

The deadline for the U.S. to raise the debt ceiling is looming. If the U.S. defaults, it’s likely to impact many Americans in some capacity. Even if we manage to escape this economic crisis, though, another one is likely on the horizon.

Whether it’s a nationwide recession, worldwide crisis or a personal event, it’s a good idea to start thinking about how to stabilize your finances now so they can be a safety net in your time of need.

How the U.S. debt ceiling crisis could impact your finances 

“We’ve never had this type of default before,” says Jean Ross, a senior fellow of economic policy at the Center for American Progress. A lot depends on whether the default period is short term or more protracted.

Things that could happen include:

  • A decrease in household wealth: This would especially be the case among those who have retirement portfolios and stock holdings. A stock market spiral could impact retirees who are pulling from their retirement funds, as well as workers on the brink of retirement who might now have to reconsider their plans. 

  • Rising interest rates: Rates on credit cards and adjustable-rate mortgages would increase, and with it, the debt load of many Americans — which also could negatively affect their credit scores.

  • Delayed paychecks: This would impact federal employees and businesses with federal government contracts. Those affected could include everyone from cleaning contractors to graphic designers and people who serve lunch in federal buildings, according to Ross. 

  • A disruption in some federal or state government benefits: Programs like Supplemental Nutrition Assistance Program, Medicaid, Social Security and veterans benefits could be affected. 

How to make your budget resilient

You can’t always control how much time you have to prepare for a financial crisis. The key is to work strategically with the time and resources you have to safeguard your budget as best you can.

Here are some tips for how to brace your budget for a major financial disruption.

1. Make or fine-tune your budget

To prepare for an emergency, isolate your necessary expenses so you know what your bare minimum budget should be. A 50/30/20 budget framework is a good way to start thinking about what’s necessary and what you can cut if needed.

“When it comes to expenses, we usually don’t go back far enough,” says Kia McCallister-Young, the director of America Saves, a nonprofit organization and an initiative of the Consumer Federation of America. Only looking at your last few statements can cause you to leave out annual expenses. McCallister-Young recommends going back a full year and examining all your statements, including those from your bank and other bill pay apps.

If you’re in a crisis now: Make a list of expenses you can cut — things like cable or streaming subscriptions, meal services, eating out and shopping. Contact these providers to cancel immediately.

2. Create or bulk up your emergency fund

Ideally, you should have or be working toward an emergency fund that holds three to six months of necessary expenses. However, “three to six months in expenses is very overwhelming, and for some people unattainable as well, especially if you’re not earning a living wage,” says McCallister-Young.

She recommends starting with an attainable goal and automating your savings, either through direct deposit or through your bank. Even $10 a week is a good starting point. “Saving is a habit, not a destination,” says McCallister-Young.

Storing your emergency fund in a high-yield savings account is a good idea because it’s easy to access and also will be earning interest with each passing month, helping you reach your goal faster.

If you’re in a crisis now: It can feel scary to pull money from your emergency fund, but don’t be afraid. “You don’t have to feel bad about the fact that you are using the savings that you have created,” says McCallister-Young. “It’s supposed to be there to help you.” If you don’t have an emergency fund, though, reach out to your community resources.

3. Research assistance in your area

Knowing where to turn in a financial crisis can be a challenge because you might be feeling panic or shame. McCallister-Young recommends finding a “community of support that can lift you up and can tell you where you should go” in a time of need.

Plugging into these community resources ahead of an emergency can be helpful. Consider joining online neighborhood groups, following the social media pages of local nonprofits and identifying food banks in your area.

If you’re in a crisis now: Start your internet search with 211.org for confidential help from experts on everything from finding food to mental health assistance. From there, reach out to your community of support to find local food banks or identify community groups or nonprofits that can help pay your bills.

4. Pay down your debt

One of the ways you can set yourself up to survive a financial crisis is to have as little debt as possible. Big disruptions are likely to make it harder to pay your bills, and accruing interest will only make digging out of your circumstance harder.

To prepare for an emergency, start paying down credit card and other debt now. If it’s a recession you’re worried about, focus on paying down debt with the highest interest rates.

If you’re in a crisis now: Contact lenders to discuss payment options. For example, a lender might be able to put you on a payment plan to spread out costs into more manageable chunks or temporarily lower your interest rate.

5. Bolster your credit score

The best way to protect your credit during a financial disruption is to make on-time payments and keep your credit utilization as low as possible. However, this might be difficult, especially if you’re operating off of a reduced income and need your credit cards to supplement your monthly expenses.

You have some options when it comes to handling your debts, explains Melinda Opperman, chief external affairs officer at Credit.org. If you have time to prepare, “call your lender to ask if they offer a concession like a lower interest rate or a deferred payment,” she says. The only risk, according to Opperman, is that your lender might lower your credit limit, causing your credit utilization ratio to increase. This could harm your score until you are able to pay down the balance.

You also might consider using a balance transfer or 0% APR credit card to take some of the pressure off. Just pay attention to the fine print, especially when it comes to transfer fees and repayment terms, which are typically around 18 months, says Opperman.

If you’re in a crisis now: One way to weather a financial storm is to make on-time payments, but consider only paying the minimum balance, says Opperman. While it will temporarily increase your debt load, especially if you’re used to paying your balance in full each month, paying the minimum for a short time can help you get through a tough time while recording on-time payments, which is a huge factor in calculating your credit score.

The thing to note about your credit score is that it’s not typically directly impacted by a recession or personal financial crisis.

“A credit score doesn’t reflect your income, wealth or current financial situation,” says Opperman. “It’s a measure of how you handle your debts.”

Source: nerdwallet.com

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Apache is functioning normally

May 27, 2023 by Brett Tams

If you visit personal finance or investing blogs on a regular basis, you’ve probably read countless articles on the virtues of passive income. After all, many personal finance experts believe that passive income is the key to early retirement, financial independence, and permanent wealth. But, what is it exactly?

A Definition:

Investopedia describes passive income as “earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved.”

In addition to rental property, typical sources of passive income can include money earned from investments such as mutual funds, dividend-paying stocks, Real Estate Investment Trusts (REITs), and asset-backed securities. Unconventional forms of passive income can include earnings from copyrights, patents, and licenses or even royalties. The birth of the Internet also created a generation of entrepreneurs forging their own path toward passive income via the Internet, including Pat Flynn from Smart Passive Income. Except, according to Flynn, blogging is just part of the game.

“Although a blog isn’t passive in nature, it’s one of the best platforms for launching other passive income opportunities.“

-Pat Flynn

Simply put, passive income is the opposite of active income. The money you earn at your 9-to-5 job is not passive income, nor is the money you earn through your side hustle or garage sale. Real passive income is earned in your sleep and regardless of the amount of effort you put into it. And that’s why the idea of passive income has always been so popular. J.D. even wrote about passive income back in 2006, which seems like a lifetime ago.

“Passive Income is money that you earn without having to work for it. When you earn interest on a savings account, you are earning money passively; it accrues whether you’re working or not.”

-J.D. Roth

The pursuit of passive income through rental property: Is it the right time?

One of the most popular ways to generate passive income is to buy (or finance) an income-producing rental property and become a landlord. And, according to a recent study from the Joint Center for Housing Studies at Harvard University, now may be the perfect time.

According to Harvard researchers, the percentage of households that rent is on the rise, up from 31 percent in 2004 to 35 percent in 2012. That may not sound like a giant surge, but it is when you’re dealing with the entire population of the United States. To keep things in perspective, the Harvard study claims that the total number of renting households surpassed 43 million in 2013.

Researchers blame the increase in renters on a convergence of factors, including a record number of foreclosures in 2008 and economic troubles caused by the Great Recession. However, it also points to certain benefits that make renting a popular option. Some of the benefits of renting named in the study: greater mobility, protection from fluctuations in the housing market, and freedom from home maintenance and repairs.

The fact is, renting has simply become the best option for many. In fact, recent reports show that rents have skyrocketed in many parts of the country due to increased demand, so much so that the cost of renting has moved out of reach for many middle-class families. And while that’s bad news for those who simply want an affordable place to call home, it’s a real estate investor’s dream.

My Experience as a Landlord

Becoming a landlord might sound tempting, but — trust me — it’s not as glamorous as it seems. It’s also not nearly as passive as many think it to be, despite what Investopedia or others claim. As someone who has owned and managed two single-family rental properties for almost a decade, I must confess that the income I’ve earned has been anything but effortless. The truth: It’s actually been a lot of work.

For example, we’ve spent far too many weekends painting and cleaning our properties in between tenants. We’ve driven to and arranged countless meetings to discuss remodeling projects and repairs. We’ve had to deal with a whole host of random issues such as late rent payments, feuding neighbors, and secret pets. Once, one of our properties was even left in total shambles — with oil-stained carpet, missing doors, busted windows, and broken everything.

Using Passive Income for Early Retirement and Financial Independence

On the other hand, we do expect all of our hard work to pay off sooner or later. The fact is, both of our properties should be completely paid off in about 12 years. By then, we’ll be 46 years old and (hopefully) on the homestretch of our journey to retirement. Since we’ll have two children nearing college around that time, we plan to use our monthly rental income to help pay for their higher education. After that, we’ll keep it for ourselves and use the earnings to supplement our own income and early retirement plans. Our properties currently rent for around $1,800 total, but that’s only because I’ve promised not to raise rent on either of our long-term tenants. But they’ll move out eventually. And when they do, we hope to pull in at least $2,200 per month or more.

Want to Become a Landlord? Consider This

Since real estate markets are vastly different in different parts of the country, I couldn’t possibly write something that applies to everyone. On the other hand, if you’re considering purchasing an income-producing property to secure your own stream of passive income, there are certain things you should know:

  • You need plenty of cash — Banks have tightened lending standards significantly over the last decade, which means that a down payment of at least 20 percent is almost always required. If you can’t afford to come up with the down payment, then you probably can’t afford to own rental property in the first place.
  • You are taking a risk — Many people think owning rental property is always a money-making endeavor. However, that couldn’t be further from the truth. Investing in rental property has plenty of risks including nonpayment, property damage, prolonged vacancies, and more.
  • Bad things do happen — When you’re a landlord, “no news” is typically good news. However, there’s a reason why so many people are hesitant to get into the game. We’ve all heard rental horror stories and the fact is that many of them are true. You’d be amazed at the kind of damage people can leave behind, and how much of a headache it can cause. You know the saying, “Hope for the best, but prepare for the worst.”

Before you jump in head first, it’s important to understand what you’re getting into. That typically means researching the rental market in your area and gaining an understanding of current and past trends in rents and occupancy.

It’s also important to figure out what you need to earn in order to cover your expenses and turn a profit. And if you don’t like dealing with people or doing repairs, you can also research property managers in your area. For a monthly fee, they’ll do most of the heavy lifting for you — including finding tenants, hiring out repairs, and more.

Becoming a landlord isn’t for everyone, but it is a great way to earn (somewhat) passive income. And if early retirement, money for college, or financial independence are your goals, it’s just another way to make them happen.

Have you ever considered buying rental properties as a source of passive income? If so, why? If not, why not?

Source: getrichslowly.org

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