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The 1 Mistake That Can Destroy a Small Business in 24 Hours

September 12, 2025 by Travis Campbell Leave a Comment

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Running a small business is a constant balancing act. Every decision, big or small, can have lasting effects on your company’s future. While there are many challenges entrepreneurs face, there is one mistake that can destroy a small business in 24 hours. It’s not a dramatic theft, a fire, or even a lawsuit—though those are all serious in their own right. Instead, it’s something deceptively simple, and it can sneak up on even the most cautious owners. Understanding this risk is critical if you want your business to survive and thrive in today’s fast-moving world. Let’s break down what this mistake is, how it happens, and what you can do to avoid it.

1. Ignoring Cash Flow Management

The one mistake that can destroy a small business in 24 hours is ignoring cash flow management. Cash flow is the lifeblood of any business, no matter the industry or size. Without enough cash on hand, you can’t pay your employees, suppliers, or even keep the lights on. Many business owners focus on revenue and profits, but overlook the day-to-day flow of money in and out of their accounts.

For example, you might have thousands in outstanding invoices and think your business is doing well. But if your clients are slow to pay and your bills are due, you’ll quickly run into trouble. Even a single missed payroll or late payment to a key vendor can start a chain reaction. Employees lose trust, vendors stop delivering, and suddenly your business’s reputation and operations are at stake. This is why mastering cash flow management is essential for every small business owner.

2. Overestimating Sales Projections

Another common trap is overestimating how much money will come in each month. Optimism is important, but when it comes to financial planning, realism is even more critical. Overly rosy sales projections can lead you to spend money you don’t actually have. This can mean taking on unnecessary expenses, hiring too quickly, or investing in inventory that sits unsold.

If sales fall short, your cash flow suffers. Even a brief dip in revenue can leave you scrambling to cover essential costs. This is a textbook example of how a small business can be destroyed in 24 hours by a single unexpected shortfall, leaving you with unpaid bills and unhappy stakeholders.

3. Failing to Monitor Expenses

Small expenses add up fast. It’s easy to sign up for software subscriptions, upgrade office equipment, or approve travel costs without considering the bigger picture. But if you don’t keep a close eye on your spending, you may find that your outflows are outpacing your income.

When cash flow problems hit, you may not have time to cut costs or negotiate better terms with vendors. That’s why business owners must regularly review their expenses and trim unnecessary costs before they become a crisis. Even a minor oversight can be the mistake that can destroy a small business in 24 hours if it leaves you unable to meet your financial obligations.

4. Not Having a Cash Reserve

Many small businesses operate without a financial safety net. This leaves them vulnerable to sudden emergencies, slow-paying clients, or unexpected expenses. Without a cash reserve, even a single bad day can mean the difference between survival and closure.

Building up a cash reserve doesn’t happen overnight, but it should always be a priority. Set aside a percentage of your profits each month, even if it’s a small amount. This buffer can give you the breathing room you need to weather storms and avoid the mistake that can destroy a small business in 24 hours.

5. Neglecting to Reconcile Accounts Regularly

Reconciling your accounts may not be the most exciting task, but it’s one of the most important. If you’re not regularly checking your bank statements against your accounting records, you may miss errors, fraudulent charges, or missed payments. These issues can quickly snowball, leading to cash shortages you didn’t anticipate.

Set aside time each week to review your financials. Use accounting software or hire a bookkeeper if needed. The time you invest here can prevent the mistake that can destroy a small business in 24 hours and keep your finances on track.

Staying Vigilant: Your Best Defense

The reality is that the mistake that can destroy a small business in 24 hours usually stems from complacency. It’s easy to assume that things are fine as long as you’re making sales and paying bills. But without careful cash flow management, even a successful business can collapse in a single day. Stay proactive by reviewing your finances often, building up a cash reserve, and planning for the unexpected.

What steps have you taken to protect your business from cash flow problems? Share your experiences or questions in the comments below!

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Travis Campbell

Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.

Why Do So Many People Ask If Gold Is Still Worth Buying

August 27, 2025 by Catherine Reed Leave a Comment

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For centuries, gold has been seen as one of the safest investments, a symbol of wealth and a store of value during uncertain times. Yet today, with new investment tools like stocks, bonds, and even cryptocurrency, many people wonder if gold still has the same appeal. The question of whether gold is still worth buying surfaces often when markets become unstable or inflation rises. Families and investors alike want to know if putting money into this shiny metal is a smart choice or just an outdated tradition. By exploring why people ask if gold is still worth buying, we can better understand its role in today’s financial world.

1. Gold as a Historical Safe Haven

One major reason people ask if gold is still worth buying is its reputation as a safe haven. Throughout wars, recessions, and political turmoil, gold has held its value when paper currencies and markets stumbled. Unlike other assets, it is tangible and universally recognized as valuable. Families often feel reassured holding something physical during times of financial uncertainty. This long history explains why gold remains part of so many conversations about wealth preservation.

2. Concerns About Inflation

Inflation often sparks the question of whether gold is still worth buying. When everyday prices rise, money in the bank loses purchasing power. Gold, on the other hand, tends to maintain or even increase in value during inflationary periods. For families worried about protecting savings, this makes gold appealing. It serves as a hedge when cash and low-interest accounts fall short.

3. Stock Market Volatility

Another factor driving the question of whether gold is still worth buying is market volatility. Stocks can deliver impressive returns, but they also come with sudden drops that rattle investors. Gold generally moves differently than stocks, offering balance in a portfolio. When markets take a dive, gold often stabilizes losses by holding steady or rising. This makes it attractive for those seeking protection during unpredictable times.

4. Limited Growth Potential Compared to Other Assets

Some people hesitate because gold lacks the growth potential of other investments. Unlike stocks or businesses, gold does not generate income, dividends, or interest. This sparks the debate about whether gold is still worth buying in the long run. While it provides safety, it doesn’t always build wealth as aggressively as other assets. Families looking to grow future savings may need to combine gold with other strategies.

5. The Influence of Global Uncertainty

Global uncertainty is another reason people wonder if gold is still worth buying. Events like geopolitical tensions, pandemics, or natural disasters push investors toward safer assets. Gold becomes a symbolic form of insurance during unpredictable times. The more uncertain the world feels, the stronger the demand for gold. For everyday families, this means gold prices often surge when global stability weakens.

6. Comparisons with Cryptocurrency

In recent years, cryptocurrency has entered the conversation as a digital alternative to gold. This new option raises fresh questions about whether gold is still worth buying compared to modern assets. Some see Bitcoin as “digital gold,” offering portability and limited supply. Others argue that gold’s centuries-long track record makes it far more dependable. This debate keeps gold in the spotlight as investors weigh tradition against innovation.

7. Accessibility and Liquidity

Part of the appeal lies in how easily gold can be bought, sold, and stored. Coins, bars, and ETFs make access straightforward for nearly anyone. This convenience helps explain why so many still ask if gold is still worth buying. It’s not just for the wealthy—it can be a tool for everyday savers too. The ability to quickly convert gold into cash adds to its lasting appeal.

8. Emotional and Cultural Value

Beyond finance, gold carries emotional and cultural weight. Jewelry, family heirlooms, and traditions give it meaning beyond market value. This sentimental aspect reinforces why people ask if gold is still worth buying. Owning gold feels like owning history and legacy, not just an investment. It’s one of the few assets that blends financial value with personal significance.

Finding Balance in Modern Portfolios

So, is gold still worth buying? The answer depends on individual goals, risk tolerance, and financial priorities. Gold may not deliver explosive returns, but it provides stability, balance, and reassurance in uncertain times. For many families, the key lies in using gold as part of a diverse portfolio rather than the only strategy. Its unique role makes it more than just a relic of the past—it remains a relevant financial tool today.

Do you think gold still has a place in modern family finances? Share your thoughts and experiences in the comments below.

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Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Could Your Investment Advisor’s Licensing Affect Your Heirs’ Payout?

August 18, 2025 by Catherine Reed Leave a Comment

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When most people choose a financial professional, they focus on performance, fees, and personality. But there’s another factor that could have a major impact on your family’s future — your investment advisor’s licensing. The type of license your advisor holds can influence what happens to your accounts if they retire, change firms, or pass away. In some cases, the wrong setup could slow down or even reduce the payout your heirs receive. Understanding how licensing works can help you make informed decisions that protect your loved ones.

Why Licensing Matters More Than You Think

Your investment advisor’s licensing isn’t just a technical detail; it determines who can legally manage your assets and how quickly transfers can occur. Advisors with certain licenses are tied to specific firms, which means your accounts may be subject to firm rules if they leave. Others may operate under independent licenses that allow for more flexible transitions. If your advisor’s status changes, it can trigger account freezes, requiring extra verification before funds are released. Knowing their licensing type now helps you plan for smoother transitions later.

1. Broker-Dealer Licensing and Firm Control

Advisors licensed through a broker-dealer are often bound to that firm’s rules and oversight. If your advisor leaves, retires, or passes away, your account might automatically be reassigned to another representative. While this keeps your investments managed, it may delay your heirs’ access if additional paperwork or compliance checks are needed. Broker-dealer arrangements can also limit your choice of investment products. If flexibility for your heirs is a priority, it’s worth discussing how the firm handles client accounts in these situations.

2. Registered Investment Advisor Licensing and Fiduciary Duties

Some advisors are licensed as Registered Investment Advisors (RIAs), which come with fiduciary obligations to act in your best interest. RIAs often operate independently or in smaller firms, giving you more control over how accounts are handled. However, if the advisor is a solo practitioner, their absence could still cause temporary disruption. The firm’s succession plan becomes a critical factor in how quickly your heirs can access funds. Always ask about continuity plans for RIA-managed accounts.

3. State vs. Federal Licensing Implications

An investment advisor’s licensing can be regulated at either the state or federal level, depending on the size of their practice. State licensing may mean more localized oversight, but it could also create extra steps if you or your heirs live in another state. Federal registration can streamline processes across state lines, potentially speeding up transfers. That said, even with federal licensing, firm policies still apply. Understanding these jurisdictional differences can help you prepare for potential delays.

4. Licensing Changes During Your Advisor’s Career

Your advisor’s licensing may not stay the same over time. They might switch from a broker-dealer to an RIA model, or expand into additional licensing categories. Each change can affect account handling, beneficiary procedures, and the type of products available. If these changes happen without your knowledge, you could be caught off guard when it matters most. Regular check-ins about licensing status can help you adjust your estate and account plans accordingly.

5. The Role of Licensing in Beneficiary Designations

Even with the right beneficiaries named, your investment advisor’s licensing can influence how quickly funds are distributed. Some firm policies require advisor involvement to process payouts, while others allow direct coordination with the firm’s operations team. In cases where the advisor is no longer available, a lack of clear licensing alignment can slow the process. This is especially true if your account is held in proprietary products that require additional steps to liquidate. Ensuring your account setup minimizes dependency on a specific advisor can help your heirs avoid delays.

6. Succession Plans and Licensing Compatibility

A well-prepared advisor will have a succession plan that aligns with their licensing structure. For example, an advisor under a broker-dealer may have an assigned successor within the firm, while an RIA might partner with another independent advisor for continuity. If the licensing and the succession plan don’t align, gaps can occur that leave your accounts in limbo. This mismatch could mean your heirs wait months for access. Reviewing both aspects together is one of the best ways to safeguard your payout.

Protecting Your Heirs from Licensing-Related Delays

Your investment advisor’s licensing plays a bigger role in your estate planning than many realize. By understanding the implications of their licensing type, you can take proactive steps to ensure your heirs receive their inheritance without unnecessary obstacles. This includes asking the right questions now, confirming the firm’s transfer procedures, and ensuring beneficiary designations work within the licensing framework. When your financial advisor and estate plan are aligned, your family’s future is far more secure.

Have you ever asked your advisor how their licensing might affect your heirs’ payout? Share your thoughts and experiences in the comments.

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The No-Spend Challenge: Myth or Magic? Unveiling 14 Reasons Why It’s Worth the Hype!

May 28, 2024 by Teri Monroe Leave a Comment

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In a world where spending seems as natural as breathing, the concept of a “no-spend month” sounds like a Herculean task. But hold on to your wallets, because this financial phenomenon is taking the internet by storm. Are no-spend months the secret sauce to financial freedom, or just another passing trend? Let’s dive in and uncover the truth behind the hype.

1. Financial Fitness Frenzy

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Embarking on a no-spend month ignites a financial fitness frenzy, akin to strapping on a money-saving Fitbit. It’s not just about pinching pennies; it’s a full-blown workout for your wallet. Tracking every expense becomes a game, motivating you to outdo your own savings record. With each dollar saved you feel a surge of accomplishment, propelling you closer to your financial goals with newfound vigor.

2. Breaking Bad Habits

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Ever found yourself mindlessly swiping your card for that third pumpkin spice latte of the day? In the realm of no-spend months, breaking bad spending habits is akin to smashing through a brick wall of temptation. It’s a transformative journey that forces you to confront your financial Achilles’ heel head-on. By abstaining from unnecessary purchases, you rewire your brain to resist impulse buying and prioritize mindful spending instead. However, sometimes these small habit fixes are not the true problem, and instead, you should look to make larger lifestyle changes to truly make an impact on your financial health.

3. Budgeting Bonanza

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Budgeting doesn’t have to be boring! A no-spend month injects some excitement into your financial planning game, helping you allocate your hard-earned cash more wisely. No-spend months unleash a budgeting bonanza, turning mundane money management into an exhilarating adventure. Armed with newfound determination, you scrutinize every cent, allocating funds with surgical precision. With each successful month, you not only bolster your savings but also cultivate a deeper understanding of your financial landscape.

4. Mindful Spending

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By putting a temporary halt on non-essential purchases, you’ll become more mindful of where your money goes. Suddenly, that impulse buy doesn’t seem so irresistible. Each transaction becomes a deliberate act, prompting reflection on the true value of every dollar spent. As you pause before each purchase, you consider its necessity and align it with your financial goals, fostering a deeper appreciation for the resources at your disposal. Through this mindful approach, you cultivate a heightened awareness of your financial habits, paving the way for greater financial stability and satisfaction.

5. Savings Supercharge

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Cha-ching! Say hello to a beefier savings account. A no-spend challenge can turbocharge your savings goals faster than you can say “frugal living.” By cutting out non-essential expenses, you funnel every spare dollar into your savings account, watching it grow with each passing day. The satisfaction of seeing your savings soar becomes addictive, fueling your determination to continue the challenge month after month.

6. Creative Solutions

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Who needs retail therapy when you’ve got DIY projects and pantry raid recipes? A no-spend challenge encourages you to get creative with what you have, sparking joy without breaking the bank. In the realm of no-spend months, creative solutions become your secret weapon, transforming constraints into opportunities.

Instead of hitting the mall, you channel your inner DIY guru, breathing new life into old possessions with a touch of creativity. Meal planning becomes an adventure as you whip up gourmet dishes from pantry staples, proving that culinary magic knows no bounds. Through resourcefulness and ingenuity, you discover that the best things in life aren’t bought, they’re crafted with imagination and a dash of inspiration.

7. Debt Demolition

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Take a wrecking ball to your debt with the power of a no-spend month. By funneling extra cash towards those pesky balances, you’ll be one step closer to financial freedom. Each payment towards your balances becomes a victory, inching you closer to financial liberation with every passing day. As you witness your debt shrinking before your eyes, you realize that with determination and discipline, even the most formidable financial obstacles can be overcome.

8. Fleeting Effects

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While the benefits of a no-spend challenge are undeniably transformative, its effects can sometimes be fleeting. The initial rush of financial empowerment may fade as old habits creep back in, threatening to undo your progress. Without sustained effort and mindfulness, it’s easy to slip back into old spending patterns, diminishing the impact of your hard-earned savings. However, by viewing each no-spend challenge as a stepping stone rather than a panacea, you can build lasting habits that lead to sustained financial well-being.

9. Social Support

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Joining forces with friends or family for a no-spend challenge can turn saving money into a team sport. Plus, who doesn’t love a little friendly competition? Embarking on a no-spend month with a supportive network can amplify your success as you cheer each other on. Sharing tips, victories, and challenges creates a sense of camaraderie.

Whether it’s swapping homemade meal ideas or organizing free group activities, your support system keeps morale high and temptation at bay. Together, you prove that financial wellness is not just an individual journey but a collective endeavor fueled by friendship and solidarity.

10. Financial Reset

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A no-spend challenge serves as a powerful financial reset button, allowing you to reassess your priorities and realign your spending habits. It’s a chance to hit pause, step back, and take a fresh look at your financial landscape with clarity and purpose. By temporarily halting non-essential purchases, you create space to evaluate what truly matters and chart a course toward your long-term financial goals. With each deliberate choice, you lay the foundation for a healthier and more intentional relationship with money.

11. Learn to Appreciate

no-spend month appreciate everything that you have

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During a no-spend challenge, you’re prompted to pause and truly appreciate the things you already possess. As you refrain from constant consumption, you find contentment in the simple joys of life, from a home-cooked meal to a leisurely walk in nature. Through this process, you cultivate gratitude for what you have rather than constantly longing for what you don’t. Ultimately, you learn that true wealth isn’t measured by material possessions but by the richness of experiences and connections that money can’t buy.

12. Empowerment Galore

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In the realm of no-spend challenges, empowerment reigns supreme as you take control of your financial destiny. Every decision to forego unnecessary purchases fuels a sense of agency and self-reliance. With each successfully completed challenge, you gain confidence in your ability to manage your money wisely, paving the way for greater financial independence. This newfound empowerment extends beyond your finances, permeating other aspects of your life as you realize the potential for positive change lies within your grasp.

13. Sustainable Lifestyle

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No-spend challenges aren’t just a temporary fix, they’re a lifestyle choice. Embracing a more minimalist approach to spending can lead to long-term financial stability and happiness. By embracing minimalism and mindful consumption, you reduce your environmental footprint and contribute to a healthier planet. As you prioritize needs over wants, you cultivate a more conscious approach to living that extends far beyond the challenge itself. Ultimately, no-spend months become a cornerstone of your commitment to a more sustainable and fulfilling way of life.

14. Balance is Key

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While no-spend challenges offer numerous benefits, maintaining balance is crucial for long-term success. Denying yourself all indulgences indefinitely isn’t sustainable and can lead to burnout or frustration. Instead, use these challenges as a tool to find harmony between saving and splurging, ensuring that you enjoy life without compromising your financial goals. By striking the right balance, you create a sustainable approach to money management that supports both your present enjoyment and future financial security.

Is a No-Spend Challenge Right for You?

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So, do no-spend challenges actually work? Absolutely! From boosting savings to fostering mindfulness, the benefits speak for themselves. However, like any financial strategy, success lies in moderation and mindful implementation. Ready to take the plunge and experience the magic of a no-spend month for yourself? Your wallet (and future self) will thank you later!

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Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. Teri holds a B.A. From Elon University. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

You Can’t Afford To Stay There: 12 Signs You Can’t Afford Your Rent

May 7, 2024 by Vanessa Bermudez Leave a Comment

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Renting a place that suits your style while accommodating your budget can feel like a tightrope walk over a bustling city intersection. It’s crucial to recognize the red flags that signal your current rent may be straining your finances too much.

Here’s a list of 12 tell-tale signs that it’s time to reassess your housing costs or risk jeopardizing your financial health.

1. Your Rent Eclipses 30% of Your Income

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Financial experts often cite spending no more than 30% of your pre-tax income on rent as a rule of thumb.

If your rent swallows a bigger portion of your paycheck, you might be setting yourself up for a financial crunch. This figure doesn’t just come out of thin air; it’s designed to ensure you have enough left for other essentials like food, transportation, and savings.

2. You’re Regularly Late on Rent

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If you find yourself frequently racing against the due date for your rent or paying late fees, it’s a stark indicator that your rent might be more than you can handle.

Consistently delayed payments indicate that your budget needs recalibration to better align with your income.

3. Savings? What Savings?

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The ability to save money while covering expenses is a hallmark of good financial health. If your high rent keeps you from saving money, you may need to consider more affordable living arrangements.

Remember, unforeseen expenses can arise, and without savings, you’re in a precarious financial position.

4. You Dread the Bill Each Month

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The psychological effect of unaffordable rent can be as significant as the financial strain. If the thought of your rent bill fills you with dread each month, it might be time to look for a place that feels financially comfortable rather than a monthly nightmare.

5. Your Credit Cards Are Maxing Out

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Relying on credit cards to get through the month because your rent is too high is a slippery slope into debt. If you notice your credit card balances creeping up and you’re covering more of your daily expenses on credit, your housing costs might be to blame.

6. You Have No Room for Emergency Expenses

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An affordable rental allows you to handle unexpected expenses—a car repair, a medical bill, or an urgent trip.

If paying your rent means you can’t afford to manage emergencies, your financial setup needs tweaking. A healthy budget includes a buffer for the unpredictable.

7. You’re Cutting Back on Essentials

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When you start slashing your grocery budget or skimping on health care to afford your rent, it’s a warning that your living situation isn’t sustainable. Sacrificing essentials means your rent is not only unaffordable—it’s threatening your well-being.

8. You Can Barely Cover Utility Bills

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Utility bills can vary, but if they’re causing stress each month on top of your rent, you might be living beyond your means. When the basics like electricity and water become a burden, it’s clear that something’s got to give.

9. No Cash for Socializing

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Social interactions are vital for mental health. If you find yourself declining invitations because you’re strapped for cash after paying rent, you’re missing out on more than just fun.

Over time, this isolation can take a toll on your overall happiness and social relationships.

10. Your Work-Life Balance is Suffering

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If you’re working extra hours or taking a second job just to make rent, your work-life balance may be off-kilter. Long-term, this isn’t sustainable.

Your quality of life shouldn’t suffer for the sake of keeping an expensive roof over your head.

11. You’re Ignoring Debt Repayment

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If your rent makes it difficult to chip away at your debt, it’s time to rethink your living situation. Ignoring debt to pay rent can lead to higher interest costs and a damaged credit score—issues that could haunt your financial future.

12. Your Financial Stress is Skyrocketing

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Lastly, if financial anxiety is your constant companion because of your rent, it’s more than a sign—it’s a red flag waving furiously.

Financial stress can affect every aspect of your life, from your relationships to your physical health.

Is It Time to Move?

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Recognizing these signs early can save you from financial and emotional distress. Your living situation should be a source of comfort, not constant financial anxiety.

If too many of these signs ring true, it might be time to start apartment hunting again. Remember, it’s about finding a balance that works for your wallet and well-being.

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Vanessa Bermudez

Vanessa Bermudez is a content writer with over eight years of experience crafting compelling content across a diverse range of niches. Throughout her career, she has tackled an array of subjects, from technology and finance to entertainment and lifestyle. In her spare time, she enjoys spending time with her husband and two kids. She’s also a proud fur mom to four gentle giant dogs.

The Financial Black Sheep: 15 Traits That Set You Apart From The Rest Of Your Family

May 2, 2024 by Vanessa Bermudez Leave a Comment

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Every family often has a dynamic where financial habits and attitudes toward money are passed down from generation to generation. However, some individuals break away from these patterns, standing out as the “financial black sheep” of the family.

These individuals exhibit distinct traits that set them apart from their relatives in the realm of personal finance. Here are 15 traits that can mark you as the financial black sheep of your family:

1. Embracing Financial Independence

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While your family may rely on traditional sources of income or support systems, you’ve taken the path of financial independence. You prioritize building wealth and do not rely on others for financial stability.

2. Risk-Taking Mindset

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Unlike risk-averse family members, you embrace calculated risks in your financial ventures. Whether investing in stocks or starting a business, you understand that taking risks can lead to substantial rewards.

3. Entrepreneurial Spirit

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While some in your family may favor conventional career paths, you possess an entrepreneurial spirit. You’re not afraid to pursue unconventional opportunities and create your own path to success.

4. Wise Investor

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You’ve cultivated a deep understanding of investing and actively manage your investment portfolio. While others may shy away from the complexities of the stock market, you see it as an opportunity for wealth growth.

5. Financial Literacy Advocate

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You recognize the importance of financial education and advocate for it within your family. You strive to empower others with the knowledge and skills to make sound financial decisions.

6. Frugal by Choice

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While your family may indulge in lavish spending, you value frugality and mindful spending. You understand the value of money and prioritize saving and investing for the future.

7. Debt-Free Lifestyle

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Debt may be typical among your family members, but you’ve made a conscious effort to live a debt-free lifestyle. You prioritize paying off what you owe and avoid unnecessary borrowing.

8. Long-Term Financial Planning

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While some may live for the moment, you take a proactive approach to long-term financial planning. You set clear financial goals and work diligently towards achieving them, whether it’s saving for retirement or purchasing a home.

9. Diversified Income Streams

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Instead of relying solely on a single source of income, you’ve diversified your income streams. Regardless of whether it’s through side hustles, investments, or passive money streams, you understand the importance of multiple revenue sources.

10. Generous Philanthropist

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Some may hoard their wealth, but you believe in giving back to your community and making a positive impact. You actively donate to charitable causes and use your financial resources to help those in need.

11. Tech-Savvy Financial Management

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You leverage technology to manage your finances efficiently. Whether using budgeting apps, robo-advisors, or online banking platforms, you embrace innovative tools to streamline your financial management process.

12. Continuous Learning

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You recognize that the world of finance is constantly evolving, so make an effort to stay informed about the latest trends and developments. You actively seek out opportunities for learning and self-improvement in the world of personal finance.

13. Focus on Financial Wellness

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Beyond just wealth accumulation, you prioritize overall financial wellness. You understand the importance of balancing financial stability with mental and physical well-being, striving for a holistic approach to prosperity.

14. Resilience in Financial Setbacks

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Despite facing financial setbacks or challenges, you remain resilient and adaptable. You view obstacles as opportunities for growth and learn valuable lessons from adversity.

15. Visionary Financial Goals

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You have ambitious financial goals that extend beyond mere monetary wealth. Whether achieving financial freedom, leaving a legacy for future generations, or significantly impacting the world, you have a clear vision for your financial future.

Is Being a Financial Black Sheep Good or Bad?

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Being the financial black sheep of your family isn’t about rebelling against established norms. Instead, it’s embracing a mindset of empowerment, education, and innovation in personal finance. By embodying these traits, you pave the way for your own financial success and inspire others to follow suit.

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12 Places Baby Boomers Are Spending Their Money That Have Meaning

April 15, 2024 by Teri Monroe Leave a Comment

As the baby boomer generation reaches retirement age and beyond, their spending habits are evolving. With a lifetime of experiences and accumulated wealth, this demographic is making conscious choices about where they allocate their resources. Rather than solely focusing on material possessions, many baby boomers are investing their money in places that hold deep personal significance.

Today, baby boomers are responsible for more than half of all US spending and wealth. Combined, boomers make up a net worth of nearly $70 Trillion. Here are 12 meaningful places baby boomers are spending their money.

1. Travel

Baby boomers as a whole are spending more than $120 Billion on travel annually. Boomers are increasingly taking cruises and guided tours or even investing in RVs to travel cross country. Many boomers want to spend their hard earned money on bucket list travel destinations. Travel offers them the opportunity to create lasting memories and expand their horizons.

2. Health and Wellness

With a greater awareness of the importance of health, baby boomers are investing in wellness programs, gym memberships, and activities such as yoga, meditation, and tai chi to maintain their physical and mental well-being.

In many ways, boomers are driving the fitness industry. One study found that members of the baby boomer and silent generation make up 23% of all gym goers.

3. Grandchildren

Unsurprisingly, boomer grandparents often splurge on their grandchildren. Collectively, boomers spend about $35 billion a year on their grandkids.

Many boomers are providing more than just material things for their grandchildren. With the rising cost of education, fifty-two percent of grandparents help pay for their grandchildren’s schooling. Grandparents are also helping with bills and setting up bank accounts for their grandchildren.

4. Education

The average student loan debt for borrowers over 60 is more than $23,000. Boomers are not just paying off student loan debt from their adult children. Many Boomers are enrolling in continuing education programs, allowing them to pursue their passions and engage in lifelong learning.

5. Home Renovation Projects

As they age, baby boomers are investing in home renovations to make their living spaces more comfortable, accessible, and suited to their changing needs. This may include upgrading kitchens and bathrooms, or creating outdoor living areas.

6. Second Careers and Entrepreneurship

Instead of fully retiring, many baby boomers are choosing to start their own businesses. Whether it’s turning a hobby into a small enterprise or pursuing a passion project, entrepreneurship offers them a sense of purpose and fulfillment.

7. Philanthropy and Charitable Giving

Baby boomers are actively giving back to their communities through philanthropy and charitable donations. Whether it’s supporting local causes, or participating in environmental conservation efforts they are committed to making a positive impact on the world.

8. Cultural Experiences

Baby boomers are avid patrons of the arts, including theater performances, concerts, museums, and galleries. They appreciate the enrichment and inspiration that cultural experiences provide, supporting artists and cultural institutions in the process.

9. Hobbies

Whether it’s gardening, woodworking, painting, or playing musical instruments, baby boomers are indulging in hobbies that bring them joy and fulfillment. Investing in leisure activities allows them to pursue their passions and explore their creative side.

10. Tech Gadgets and Smart Home Devices

Many boomers are embracing the digital age and are investing in the latest gadgets and devices. From smartphones and tablets to smart home systems and fitness trackers, they are staying connected and informed in today’s tech-driven world.

11. Pets

Boomers account for 38% of annual pet spending in the US. With no children at home and disposable income, many boomers are spending money on their furry friends. Pets offer companionship and stress relief. Furthermore, studies have shown that interacting with animals can help with healthy aging.

12. Financial Planning and Retirement Services

As they approach retirement, baby boomers are seeking professional financial advice and investing in retirement planning services to ensure their financial security later in life. They are focused on building nest eggs, managing investments, and preparing for the future.

Making The Most of Their Golden Years

As the baby boomer generation continues to shape consumer trends, their spending habits reflect a desire for meaning, fulfillment, and personal growth. By boomers spending their money on things such as travel experiences, health and wellness, education, and philanthropy, they are not only enriching their own lives but also making a positive impact on society as a whole. As they navigate retirement and beyond, baby boomers are redefining what it means to spend money with purpose and intention.

17 Rare Coins That Could Be Hiding in Your Change

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How Colors Affect Your Investment Decisions

October 16, 2023 by Jacob Sensiba 55 Comments

When I was a new advisor, one area I failed to understand was the importance of color. We are, at our heart, 90% subconscious beings. Sure, we have thoughts, but while we’re deciding which ice cream to eat, our automatic mind is handling the so-much-more trivial tasks of (among many, many others) breathing and sensory response. Those who are able to reach those subconscious portions of us are more likely to sell us on pursuing whatever it is they’re selling.

I was in the business of selling you on your goals. Better yet, I was in the business of selling you on the fact that you’d rather pay me to handle as much of your money as possible.

I wasn’t selling actual products, I was selling the concepts of trust, commitment, and richness. These concepts can be expressed in colors.

Colors Affect Decision Making

The use of color in sales isn’t limited to investment advisors. On the contrary, most advisors have little understanding of the importance of the subconscious on a client’s decision to say “yes” or “no” to a strategy. Yet there’s tons of research available, from color’s role in shopping to fruit-buying, and even clean energy and cleaning supplies.

Marketers understand the role of color. So should you.

Brief overview of colors

Most of the colors below have two different associations, that depend on your experience and temperament

Red – Danger, power, and strength. On the other side of the coin, passion, desire, and love are also associated with this color.
Green – Growth and harmony. Common associations include tranquility and a sense of calm.
Blue – Trust, peace, compassion, and warmth. Can also emit feelings of sadness and cold.
Brown – Dependability and resilience. Users of brown are typically more reserved.
Orange – Joy, enthusiasm, and attraction are common associations. Orange is also used to call attention.
Purple – Mysterious, wealthy, and soothing (to some).
Yellow – Aggressive, energetic, and cheerful.
Black – Power, aggressiveness, and sadness.
White – Purity, bland, and cold.

Effective Colors

If I had meetings with potential new clients, I’d choose royal blue ties. Royal blue suggests security and trust. My goal with new clients was to be the guy they could hand money over to manage. Imagine that you were meeting with an advisor that you’d never previously met. Would you trust a guy wearing red?

In later meetings, when we’d talk about investing, I’d switch colors to green. Hunter green especially is a wealthy color. This was most effective with clients who seemed to be in love with the pursuit of money. If I projected wealthy colors, they were more likely to accept my counsel and allow me to manage more of their assets inside my firm. Even so, if I wore green to meetings where we were signing contracts, it symbolized that these were going to be big money-making investments.

Avoid These Colors

I owned a kick-ass yellow tie. Besides being the color of caution, my blondish hair created a pale, washed outlook. It seemed like I might be sick. This unsteady, youthful, and pale look decreased sales.

Red was a color I played games with. I had a red marker on my dry erase board. When I was disproving something other advisors had told my client, or I was recommending areas we wanted to avoid, I purposefully used red. I switched to blue or green markers to illustrate my own strategies.

What Does This Have To Do With You?

Colors affect all of your buying decisions. If an advisor is recommending a change in your strategy, be aware of her choice of colors when making an argument. When you’re handed a prospectus for a product, look at the colors they choose. When you go to a financial company website, avoid the urge to choose based on the color pattern.

Let’s look at a few examples:

Fidelity.com: Bright, fresh green. The only orange is the “choose an account button.” Orange is a “call to action” color. Blue is only used in the words “See how Fidelity can help.” Remember what I said about trust? These colors aren’t accidents.

Vanguard.com: Red all over the place. At first blush, this seems like a mistake, but think about what Vanguard sells. They sell at a lower cost and the fact that you’re probably paying too much if you’re looking somewhere else. Even the keyword on the side, “Vanguarding” suggests stopping to think. Red increases your heart rate, gets you excited, and creates energy. Red is the perfect color for what Vanguard sells.

Scottrade: An interesting choice….purple. This isn’t a bad move either. First, it’s different from the others, but purple is a calm, soothing color. As a slightly smaller broker, Scottrade’s job is to get you to think of them as a steady ship (often I was surprised that many of my clients had never heard of Scottrade).

TDAmeritrade: Check out all the green.

Ameriprise: Tons of royal blue. Why? This is an advisor-driven company, so they’re not going to sell red. They’re selling a trusted relationship.

E-Trade: Their site is too busy. Lots of green, some blue, and a little purple all make sense. The black across the top is interesting. Black is a power color. I used it during what we’d call “come to Jesus” meetings (I don’t mean to be offensive – that’s the term every office I ever worked in called it when clients needed to either be given the boot or get on board). However, it’s also an impulse shopping color, so maybe E-Trade thinks they have to get people while the impulse is on.

Charles Schwab: Blue, with a big lime button in the middle “get guidance” button and an orange “open an account” button at the top.

The Most Important Point To Remember

Colors are used against you all the time. To stay in control of your money, use colors defensively. Or, when you’re up for your next raise, use colors against your boss!

For more on financial advisors and how to pick the right one check out these great articles.

When I Was a New Financial Advisor
What is the Role of a Financial Advisor?
Afraid To Meet With a Financial Advisor? Here’s How the First Meeting Goes

Photo credit: wazimu0.

Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry. His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management. Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Finance Lessons Learned from the Pandemic

February 23, 2022 by Jacob Sensiba Leave a Comment

The Covid-19 pandemic changed life for two years and there are definitely still elements of what life was in the world today. No doubt there were some terrible things that happened. People lost their lives and their jobs. But there were also positives that came out of it. We’re going to highlight the lesson we can learn from this pandemic, particularly some personal finance lessons we can learn.

Working from home

This new type of work does not apply to everyone and I don’t like leaving people out, but this needs to be talked about. Working from home and articles about it took over during the pandemic and continue to be discussed.

Working from home, at least from some of those articles and studies, appears to be a net positive for employees and employers. Let time commuting, less overhead costs, more productivity thanks to no commute, increased job satisfaction, and improved work-life balance.

Thanks to the work-from-home setup, people who were able to do that moved out of the city or rented an Airbnb for an extended amount of time. In either case, those people were, likely, able to reduce their housing costs by moving to the suburbs or giving themself a little vacation/change of scenery.

Savings rate

A lot of people saved money during the pandemic thanks to stimulus payments. In April of 2020, the personal savings rate for Americans was 33%. In March of 2021, the personal savings rate for Americans was 26.6%.

The savings rate has fallen since then but is still above 12% which is higher than it was before the pandemic (less than 10%).

Stimulus payments

According to the National Bureau of Economic Research (NBER), most Americans either saved or paid down debt with the majority of their stimulus payments. 40% of the stimulus payment was spent, 30% was saved and another 30% was used to pay down debt.

Personal finance lessons

I think there were a lot of personal finance lessons that can be learned from the pandemic. Here’s a list of them below:

People saved more money

The future was very uncertain so people were more conservative with their spending and less conservative with their savings. That mindset shouldn’t change. The future, in principle, is uncertain. We do not know what tomorrow holds, so saving for a rainy day/goals/retirement is very important.

You don’t need to spend money to have fun

At the very beginning of the pandemic, you couldn’t go anywhere. Quarantine and lockdown orders came in right away. Instead of getting together in person, people utilized Facetime, phone calls, and Zoom. I, personally, had group Zooms with family members where we played and had conversations like we would if we were in person.

Diversification is important

Early in the pandemic, the market tanked. We lost over 30% in six weeks. Granted, it came right back up not long after, but that might not always be the case. If you don’t have time to ride out the ebbs and flows of the market, it’s important you get your asset allocation right. Talk with your adviser to make sure your investment matches your time horizon and risk tolerance.

Get rid of debt

You never know when your job and your ability to earn can be taken from you. Some people lost their jobs, some people were furloughed, and some people just weren’t able to go to work. If you don’t have an income, the only other part of the balance sheet you can affect is your expenses. Get rid of your debt. That’ll help you reduce your expenses in case that happens (you can also save more).

Protect your loved ones

Get life insurance. A lot of people passed away during the pandemic. If you contribute income to your household, you need to make sure you financially protect the people that rely on your income.

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

How to Increase Your Net Worth

February 2, 2022 by Jacob Sensiba Leave a Comment

Your net worth is a benchmark for your financial success. Notice that I said financial success and not just success. That was intentional because money doesn’t define your success. Money can afford you freedom, but I believe real success doesn’t involve money. That was free of charge, now let’s talk about how to increase your net worth.

What is net worth?

Net worth is assets minus liabilities. How much wealth do you have after you subtract what you owe versus what you have? It’s typically used to gauge your progress in your financial life. If you have debt, then when you pay it down, your net worth goes up. The same happens when you increase your savings.

How to increase your assets

Honestly, the only way to increase your assets is to save money. At least, that’s where it all starts. The more you save, the more you have to work with.

How do you save money? Decrease your expenses and/or make more money. That’s what it comes down to. Figure out what’s important – in terms of your budget and spending. Everything else that doesn’t fit on that list needs to either be removed or reduced.

Once you have money saved, then you can put it to work. Invest it in securities or assets that have a chance to increase in value. What kinds of things have a chance to increase in value? Stocks, bonds, mutual funds, ETFs, precious metals, real estate, certificates of deposit (CDs), and cryptocurrency/NFTs (though I would tread carefully here).

Growing your assets will help you increase your net worth.

How to decrease your liabilities

Pay down your debts. That’s it. Obviously, it’s more challenging than that. Ideally, what you’d want to do is pay down your debts before you focus on the saving aspect of it. If you have debts with high-interest rates, like credit cards, those should be your first priority.

We’ve gone into detail about the repayment methods before so we’ll only touch on them briefly, but what’s important is decreasing your expenses so you can make larger, more regular payments towards your debts.

The next step is developing a repayment strategy. The two we’ve talked about before are the debt avalanche and the debt snowball. The debt avalanche – you pay the debt with the highest interest rate off first before moving to the next one. The debt snowball – you pay the debt with the smallest balance off before moving on to the next one.

Paying down your debts will really help you increase your net worth.

Is there a net worth number you should hit?

At the end of the day, your net worth number is really a reflection of what you’ve saved for retirement. Ideally, you will not have any debts, including your mortgage. So there’s no math that needs to be done. What are your assets? Primary home, any rental properties, and then your retirement savings, with primary home and retirement savings being the two most common for everyone.

So the question becomes, how much should you save for retirement? Thankfully, we’ve created a guide for you to help answer that question (see below).

Disclaimer:

Jacob Sensiba

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/