Debt-Free Millionaire
With two books about to be published and a new video game for youth, and adults, this podcast should take off quickly. We will be bringing on CPAs and real estate investors to talk through the process of becoming a Debt-Free Millionaire, or to go the other way and be okay with debt and become a millionaire. We let you make the ultimate decision but we will give you what you need to get there. Talk to you soon. Thanks to Xogos Gaming for sponsoring this podcast and for creating our game. We are excited to share this with you.
Episodes
Episodes
6 days ago
6 days ago
Shadowing - If there are only a few interviewees and the manager doesn’t have a lot of time to interview you, or has already interviewed you and wants to see you in action, they will ask if you would like to shadow them, to see how they work. Always accept the invitation. This is not as much for your benefit, but to see how you interact with other employees, to see if you are a good worker, and to see if the interviewer will like you after a hard day of work. Remember, the manager will be working harder than you during the day, with much more responsibility and they want to show that to you, so they will most likely pack the day with things to accomplish. This can also show that they are interested in you. You will need to bring your A-Game.
Before the Shadowing Appointment:
Work around their Schedule – Do everything possible to meet when it is convenient for them.
Know the Details - Before you show up, make sure you are clear on the details.
Appropriate attire - Make sure to ask beforehand what clothes you should wear. Do not wear a suit if you are going to dig in the dirt. You can ask for an itinerary, so you know how to prepare.
While Shadowing:
Show up early - This is an interview in action, and they want to make sure you will not just show up, but be early - since it’s a better indicator of how you will work if employed.
No phones - Put your phone on silent and keep it out of your hands. If you pick up the phone while you are shadowing, you most likely will not get the job. Show them that the job and this opportunity is very important to you.
Your best self - Present your best self with your body, non-verbal language, and speech.
Be positive and interact nicely with everyone you encounter - while you are with the manager, and while he is away. Others are watching, and the manager will most likely ask for others’ insight on you.
Be prepared to stay later than they ask. Managers have a job to accomplish, and this may be longer than the normal workday. Offer to stay to help with things afterwards, until they leave for the day, if they are accepting of this. You don’t have to do this after you are hired, but you are showing them that you work hard.
Get out of your comfort zone and ask to help wherever you see a need. They want to make sure you are a good fit, and who could be a better fit than someone who takes initiative.
Take plenty of Notes - Bring a notepad. Remember, the interviewer may have the position you ultimately want. Take notes on what they are doing, so you can work towards that position.
Ask plenty of questions to show your interest, and that you are trying to understand everything.
Earn the Position - Remember that you are not entitled to this job. This is how you earn it.
Reflect on your Career Path – Prepare to answer more personal career questions, spontaneously, in this interview. Prepare an answer to why you chose this position or job posting. This is a less formal setting, so don’t act like you have all the answers. Be humble and willing to, instead of making up an answer, ask a question to clarify, or gain advice from the interviewer.
Be curious, yet discreet – Show your interest in the interviewer and the position. Watch them for reactions, and empathize where possible. Practice active listening. Also, don’t cut them off.
After Shadowing:
Send them a thank you note – Like after any interview, send a personalized note, to stay at the top of their mind, and the list of potential employees.
Remember to follow up with an answer you promised, or a task they gave you.
Follow up a week later, about the job, by asking a question in a quick, easy-to-respond-to email.
After you have the job offer, if you still feel loyal to the company you work for and think that a promotion would satisfy your disengagement, then go to your current employer and explain the situation. Do not go empty handed (without another job offer) because if this meeting doesn’t go well, you want something ready and solid to fall back on. When speaking to your employer, tell them why you began looking, but tell them that you are loyal to the company, you like your co-workers and that you just need a change. Then, let them know you would like to stay, if they can make it viable to keep you. This then puts the ball in their court, giving them the chance to act; if they don’t want to, or can’t, you must then act on what is best for you. You gave them a chance, though. Remember, most employers do not want to lose someone that shows initiative, by bettering themselves with more education, or going out and experiencing job hunting for a better job.
Union Members - If you are working with a union, tell the union representative what you are doing. Your employer may not be allowed to promote you because of union rules, so asking for a promotion may not be a viable option. Unions are set so everyone is treated equally. Those who work harder cannot have an advantage, unless a different job becomes available - and you will still have to apply for that position. If there is not a job available, the employer is not allowed to offer you more money. This may be the best time to get out of this job and find one with an easier success ladder, where you can work harder to get ahead of the rest.
If you take the time to become better educated or find a better position, let your current employer know and tell them you will stay if they offer you a better position. They know they would lose a lot by letting you go. They would then have to go through the interview process and potentially pay the new employee more, due to newer and higher salaries for that position. They know that they are in a hard position, because you will save them time and money and you are already educated for the current position. They want you to stay, if that will keep you engaged at work.
Read additional articles, including: https://careers.unl.edu/resources/job-shadowing-a-pathway-to-professional-insight-and-growth/ https://career-advising.ndsu.edu/resources/job-shadowing-preparation-and-tips/ https://hbculifestyle.com/job-shadowing-questions-for-hbcu-success/
6 days ago
6 days ago
Interview Process: When you find the job you like and turn in your resume, the next step to the process is waiting to be called for an interview. They may ask you questions or ask you to submit writing samples before you are called in, but at some point, you will be called in to talk to the company owner or manager or conference call, as they vet the best candidates for the position. There are two ways they may hold the first interview:
Group Interview – This is the going trend right now, because it saves time and weeds out candidates quickly. This is where all the applicants meet together and talk to the manager, all at once. This is where you get to make a name for yourself, by asking and answering questions, speaking up, and being a leader while in the group. You don’t want to be influenced by group-think, but if you want to make a name for yourself in the group, you want to make sure you speak up in front of the group. This shows initiative, that you can be part of an effective team, and that you will go out of the way to understand. Don’t be intimidated in this process; everyone is human, and the interviewer just wants to make sure they get the best person. After it is over, remember to send them a thank you card, so you stay at the top of their mind.
Individual Interview – This would normally happen after the group interview, if there are a lot of potential employees. If there are only a few candidates, then the manager in charge will meet with everyone individually. They may want the best candidate, but they do not want to scare people away with a group interview, which may be intimidating. You will set up a time that works best for both parties and come to the office to meet with your potential boss. Interviews normally happen in a closed office or conference room, but some may happen in a more public area, such as a café. Be flexible and, if you really want this position, willing to step outside of your comfort zone. They will ask you questions, and you will be able to ask them questions. When being interviewed, try these tips:
Before the Interview:
Start by researching the company, and talking to your potential coworkers. Research not only the company you are interested in, but their industry, competitors, and recent news. Be prepared.
Practice possible answers to questions they may ask. Search our site for “Common Questions.”
Reread the job description beforehand. You want to present yourself as the person they need.
Find people to role play with. This allows you to practice answering the common questions.
Prepare your list of references. Do not give them just anyone, make sure they are relevant to the job and remember to ask each beforehand.
Bring a portfolio or list of examples of your work. You want them to see you are prepared.
Make a list of Smart Questions you can ask, that show you did your research. Search “Smart Questions,” on our site, for examples.
Prepare a response to “behavior-based” questions, such as when they ask you to share an experience where you displayed behaviors that the company prioritizes and wants from you.
Plan your interview attire the night before. Make sure you come with the right dress code. Search “Interview Attire.” Make sure your appearance is clean and without blemish, but also matches the company culture. Don’t overdo the attire.
Bring many copies of your resume, a notepad, and pen. Take notes to show your attentiveness.
Stay calm, both before the interview and during it. Make sure your actions, answers, questions, and all interactions are intentional.
Practice, practice, practice - as much as possible - by yourself and with others.
Ask for an interview in the morning. Statistics show that interviewers are more positive early in the day.
During the Interview:
Arrive at the interview at least 10-15 minutes early. Be prepared to sit and wait until called.
Treat everyone you encounter with respect, from those you encounter in the parking lot to the assistant that tells you to sit and wait for the interviewer.
Show confidence in your appearance, by watching your posture, the look of your clothing, and remembering to smile. You can practice good posture beforehand, and remember good manners. Search “Body Language,” on our site.
Win the interviewer over with your confidence, authenticity, and positivity. Be genuine and truthful in your interaction. Everyone wants to be around people they like.
The first question is normally, “Tell me about yourself.” Practice a well thought out response.
Try to stay on the side of the interviewer. If they have a concern, make sure you have the same concern, and a way to resolve it.
When asked a question, use the STAR method in your response: Situation, Task, Action, and Result. Search our site for “STAR Method.” Basically, it means, give the situation, what your role was, what actions were taken, and what the results were.
Don’t blame others or speak negatively against a previous employee or employer. Be assertive and take responsibility. You can make sure you do not look “bad,” but don’t be petty in explaining a situation, by blaming others or speaking ill against those who aren’t there to respond. Always circle these situations back to how they were a positive influence in your development.
With every negative, give a resolution and how you overcame or learned from that situation. Take these questions back to skills and accomplishments you received. Be positive.
Anticipate your interviewer’s concerns or reservations. Answer and ask indirect questions, when appropriate, to find out what the interviewer is thinking (or assuming) about you.
Do not rant. Keep your answers as concise as possible. Focus on the most important issues. If you can, make the answers into conversations, so you can turn the questions back to the interviewer. They get bored of asking questions, and may want some interaction.
Clarify why you would be valuable for the company and reasons you want this position.
Don’t worry about your answers sounding practiced - everyone is nervous in an interview.
This is rare, but be prepared to respond to illegal or inappropriate questions. Sometimes, the interviewer isn’t thinking, or is overly curious. Search “Inappropriate Questions” on our site.
Close on a positive note. Make sure they have a good memory of you, so they cannot forget you.
After the interview:
Ask the interviewer what the next step is, or how many interviewees there are. Show your interest in the process, and sympathize with the pains they are taking to find the right candidate.
Send a personal letter to them thanking them for the opportunity, and mention something positive about the interview, so they can remember which candidate you were. This keeps you at the top of their minds.
Follow up with them about a week later, to: 1) stay at the top of their mind; and 2) show that you are still interested.
Last, but not least, don’t give up. Even if you don’t get a job offer, take this as a learning experience. Get back in and try again, with another similar position.
Read other articles about interviews at: https://www.thebalancemoney.com/top-job-interview-tips-for-college-students-2059837 https://www.newyorker.com/humor/daily-shouts/job-interview-questions-theyre-dying-to-ask-you https://www.theforage.com/blog/interview-questions/panel-interview https://www.flexjobs.com/blog/post/body-language-tips-video-interview/ https://www.michaelpage.ca/advice/career-advice/job-interview-tips/group-interviews-how-prepare-and-how-stand-out https://www.ach.edu/2014/09/how-to-stand-out-in-the-group-interview/
7 days ago
7 days ago
Simplified Explanation: Statistics have shown that Millennials and those younger will change their jobs four times in the first decade of working; only 29% of them feel engaged at their workplace; and 50% are dissatisfied with their work (Gallup polls, 2021). Adults are prone to searching out new jobs if they don’t like their work or side gigs if they want more work to pay the bills. This is not to demonize the work that employees are doing but instead to note that they can become disengaged, and they want something new.
Real Life: Everyone in America is able to quit their job and move on to another position that they are qualified for. The job market is very fluid, but if you are not qualified for a certain job or you don’t have the talent or skills, you will need to be trained for it, or continue working where you are. If you are not educated and skilled in the right area to get the job of your dreams, then that is up to you to change. Remember, you want another job and someone else would be happy to fill your position. If you want to change jobs, try these thoughtful questions before making the dive into a new career. The truth is, if you are dissatisfied with the job you have, it may not be the job that is disengaging you; so try this method to see if a potential job change is right for you.
What is it about the old/current job that you do not like? Can you/how can you make it more engaging?
Are you qualified for another position in the same company, and would that be engaging?
Is it the work that dissatisfies or disengages you, or is it something else (like the company culture)?
Will you feel joy in the next position - working for that company or another company - or will they all be a drag for you, because you aren’t doing what you want?
What is it you want to do? Are you qualified and have the talent to accomplish that job?
Would you be more satisfied if you had a side gig to mix things up, or is it that you just don’t want to work?
Is it the money you are making, the lack of a cause in the company, or do you just want something new?
Again, will you be satisfied with something in the future, or will you always be unhappy?
After you have answered these questions, you will have a better understanding of what is inside of you and why you feel disengaged or dissatisfied with your current job. It may not be the job that dissatisfies you. After answering these questions honestly, if you still want a new job, try asking the following questions. Then take these actions to begin the search for a new position:
What would you love to do at work? Remember, if you make your hobby your work, you may become dissatisfied with your hobby, and the thing you used to escape from your stress is now the thing you need to escape from. All that or you may begin to enjoy what you do and you may very much enjoy your new job.
Are there positions out there that can satisfy the needs you have? Search the web for job boards that may fulfill the need(s) that you have inside.
Did you find one? If they are out there, the next thing you should do is go interview someone that is doing that same job right now. If you can find someone that is dissatisfied and someone that is satisfied with the job, you will get a more well-rounded point of view. You would hate to take another job and then immediately find you are disengaged there as well. Remember that every time you change jobs and then list that in your resume for the next position, your next employer will see that, especially if they check references by calling up your previous work. The more you jump around the more your next boss will wonder if you will do that to them. There is a certain amount of movement that won’t spook an employer, but just make sure you won’t be moving around forever. A company loses thousands on training most employees, and the U.S. Economy loses billions each year on lost production; so do your research beforehand. Remember that if you move up in the company, that is a great sign to your next employer of your potential. If you answer that you were dissatisfied with your last job, in an interview, that can be a sign that you will likely be dissatisfied in this new job or if you are honest and open, giving them reasons why you left, may give them insight on how to keep you engaged and solid in this new position.
What requirements will it take to fulfill this job, or even to get past the interview process against others that are equally (or even more) qualified for this position? Will others be more prepared and qualified for this position? What education do you need to have? What job training or experience do you need? Can you/should you get this training and education before applying for this type of job?
Are you willing to go back to school to get this job? Is there on-the-job training? Or does the company want a “blank slate,” to train their own way and so doesn’t want you to be trained too much by someone else? You may be able to entice the interviewer that you are not trained or educated for this job but that you are a “blank slate,” ready to be trained their way. Remember that the employer is human, like you, but is looking for the best fit for this position, out of all the applicants. Are you the best person to fill this need?
Now, after doing your research into the new position, do not quit your day job. You want to make a smooth transition from your previous job into a new job. You also do not know if you will find a new job right away. You may start interviewing with these other positions while still working at your day job. This also shows the new employer that they are not hiring someone that was fired or had issues finding work. If they know they have someone that is already wanted by another employer, then you are playing on their jealousy that they want this employee just as much, if not more, and will pay to entice you to come over. So, do not enter an interview with a sense of desperation. When looking for a job, try taking these steps first:
Look to see if there are jobs that will satisfy your needs and wants and see what they provide for salary and benefits. Do some research into the company culture and see if you are a good fit.
Talk to the employees that would be working with you. There is nothing wrong with you entering the interview knowing anything and everything about the company and their employees. You could even go as far as to invite one of the employees to go out to lunch with you so you can “pick their brain” (ask them every question imaginable so you can determine if it is a good fit before you join). Remember also that just like you want to research the job opportunity, the employer wants you to know as much as possible beforehand. No employer wants you to join their ranks just to leave it after being trained.
Find out what type of qualifications you will need to work there and take the time to take the classes and training necessary to obtain those qualifications. Remember that these classes won’t just help you in a future position but may help you in the position you are currently working. They could also line you up for a promotion in your current job, which may end up engaging you. Tell your current boss that you are taking new classes. Don’t tell them that you are looking into getting a new job. Employers love when their workers are getting more education because it will only help with their current position. They see this as an opportunity, and if they are wise, they will offer you a higher position or pay more to keep a well-educated employee working for them.
Before going too far with searching out a new job, ask your employer what it would take to get a promotion or higher position in the company. If there is no upward momentum or path you can take, this is a good sign to find new employment. If there is upward momentum, this may be just what you need to satisfy your needs and get you reengaged. Even when you get a job offer, go back to your employer and tell them that you received a job offer but because you are loyal, you would like to stay here (if you do want to stay) if there is a way they can match the job offer or give you a promotion with something that will satisfy you.
Remember that anyone can ask for a promotion, but the ones to receive them are those willing to work for it. Are you willing to work for it? If so, ask your manager what you need to do to be promoted. Take their recommendations to heart. If you take those classes needed, show more initiative, or do what is required to advance, then you deserve that promotion. If they don’t give it to you at that point, then you have every right (and almost an obligation) to leave for a better job. If you are educated and ready for the position that you want, it is time to write a rock-solid resume. A resume is a summary of your work history, education, and even certifications, publications, and organizations you belong to. Here are a few tips when writing a resume:
Resume, in general:
Keep it all to one page. If it becomes too long, the reviewer will not read it.
You can use a template to get started, but remember to personalize it to speak more to who you are.
Resumes are often read by computers these days; templates can help get past the bots. Any system these days that takes resumes normally has a program to sort through viable resumes.
Keep it simple and uniform. Make sure it looks the same throughout, with font and spacing.
While simple, you want it to stand out. Make it unique, in your own way, but be careful about being too unique and giving too much information.
Make your contact information prominent and put it at the top, so they don’t need to search.
Design it to be skimmable, hitting all the highlights, without lengthy sentences.
Seek guidance from a professional - the money you may spend will be worth it.
Use active language, like “accomplished,” “achieved,” and “earned.”
Choose standard margins and spacing in the format, so it doesn’t look too busy.
Objective:
This is not needed unless you are making a large jump between different career fields; some employers do like it as a summary, but most know what type of job you are looking for, so it’s not needed.
If you are to write one, make sure that you focus it on each specific position.
Don’t use “I” or “me.” Make the objective very short - 2 lines - and straight to the point.
Job History:
The first and most important tip is, don’t put everything on your resume - only relevant items.
Keep a master list of your jobs; they may not apply to this one job, but maybe it can be used on the next.
Write it in reverse chronological order, with the newest on top. Make it easier for your reviewer.
If you don’t have relevant work experience, that is okay. List your previous employment, but focus more space on your education and transferable skills, or go take the needed classes.
Make sure that under each previous employer you have only 3-5 bullet points, explaining what you did, and only report relevant information...Other articles to read or see these infographics: https://www.campuswell.com/how-start-side-gig/ https://www.yourgreenpal.com/blog/99-side-hustle-gigs-and-apps-to-make-money-during-covid-19 https://www.self.inc/info/side-hustle-statistics/
Friday May 10, 2024
Friday May 10, 2024
Read this Article to Get More Information: Rents are rising faster than wages across the country, especially in these cities Wages for the typical U.S. worker have surged since the pandemic, but for many Americans those gains are being gobbled up by rising rent. Rents jumped 30.4% nationwide between 2019 and 2023, while wages during that same period rose 20.2%, according to a recent analysis from online real estate brokers Zillow and StreetEasy. The gap between wage growth and rent increases was widest in large cities, including Atlanta; Charlotte, North Carolina; and Miami, Phoenix and Tampa. Other cities where renters are feeling the pinch include Baltimore, Cincinnati, Las Vegas, New York and San Diego. Rent soared during the pandemic as demand rose due to Americans fleeing major urban centers and opting for more space away from neighbors in the suburbs and rural areas. Rent is still increasing, housing experts say, although now at a slower pace. Some metros including Austin, Texas, and Portland, Oregon, have seen rent decreases in the past year, according to the analysis, a stark contrast to more populated cities like New York, which "is heading in the opposite direction," said StreetEasy Senior Economist Kenny Lee. "New multifamily buildings coming online have eased competitive pressure in many markets, but in New York City construction just simply can't keep up with demand," Lee said in a statement. Read More at: https://www.cbsnews.com/news/rent-cost-us-2024-housing-national/ Image from: https://www.jchs.harvard.edu/blog/rents-have-soared-across-country-home-prices-grew-even-faster
Thursday May 09, 2024
Thursday May 09, 2024
Simplified Explanation: Having children costs money. You have to feed them, cloth them, shelter them, and do most things for them, until they grow up, and become adults. These increase your expenses, and reduce the time you can/should work outside the home. Real Life: Children are the greatest blessing in your life - better than anything (other than your spouse)! They are the source of some of your greatest joys, and sometimes heartache. With this blessing comes more financial obligations. Parenting Financials 101: When you have a child, there are many obligations you will have, in order to care for the child. First off, your monthly expenses increase dramatically, due to buying diapers, formula, diapers, clothes, and many accessories, including diapers. Other items needed include pack-and-play, beds, strollers, car seats, toys, and much more. Also, parenting an infant and toddler is very exhausting, and will take a toll on your workload. You will need to spend more time with them, or pay for daycare, or even a live-in nanny, depending on how much you work. Recently, a growing percentage of couples wait until they are financially settled to have children. Sometimes, this moveable target makes a couple never start a family, because the goal is either never met, or always increased, because they do not feel ready. Just know that the longer you wait, the more exhausting your child will pay on you and the more exhausting they are the more you will end up exhausted. Children are exhausting no matter how old you are, but would you rather play on the ground and run after a toddler when you are in your 40s, or when you are younger and more energetic, in your 20s? Also, would you rather have your children out of your house by the time you hit 50, or not until you are in your 60-70s? The older you are when you start, the older you will be when they leave the nest. Either way you choose, just make sure that they are well taken care of, and remember that most things you spend money on, for your child, are reimbursed by the government through child tax credits of $4,000 per year. You will need to spend most nights waking in the middle and caring for the child. An infant needs to eat multiple times during the night, diapers need to be changed, and they will need comfort if they are scared or uncomfortable. As they get older, you are waking when they are scared or wet the bed. When they become teenagers, you stay up late until they get back from social gatherings, parties, and dates. Then when you are older and the kids move out, you find yourself waking up because of your own bowel movements. Get ready, as you get older, your life doesn’t become easier, even without children. Just know, having children while you are younger and more energetic is not a bad thing, but make sure that you can care for their needs - both with time and money. Read more articles: https://www.statista.com/chart/2633/raising-a-child-today-could-cost-a-quarter-of-a-million/ https://www.kidjunction.com/2023/03/15/10-advantages-of-having-children/ https://www.bellybelly.com.au/parenting/having-kids-young/ https://www.psychreg.org/mental-health-benefits-having-children/ https://freudianmommy.com/benefits-of-having-children/ https://lovinglifeathome.com/2023/09/04/science-proves-having-babies-good-for-you/ https://www.usda.gov/media/blog/2017/01/13/cost-raising-child
Wednesday May 08, 2024
Wednesday May 08, 2024
Simplified Explanation: Having children costs money. You have to feed them, cloth them, shelter them, and do most things for them, until they grow up, and become adults. These increase your expenses, and reduce the time you can/should work outside the home.
Real Life: Children are the greatest blessing in your life - better than anything (other than your spouse)! They are the source of some of your greatest joys, and sometimes heartache. With this blessing comes more financial obligations.
Parenting Financials 101: When you have a child, there are many obligations you will have, in order to care for the child. First off, your monthly expenses increase dramatically, due to buying diapers, formula, diapers, clothes, and many accessories, including diapers. Other items needed include pack-and-play, beds, strollers, car seats, toys, and much more. Also, parenting an infant and toddler is very exhausting, and will take a toll on your workload. You will need to spend more time with them, or pay for daycare, or even a live-in nanny, depending on how much you work.
Recently, a growing percentage of couples wait until they are financially settled to have children. Sometimes, this moveable target makes a couple never start a family, because the goal is either never met, or always increased, because they do not feel ready. Just know that the longer you wait, the more exhausting your child will pay on you and the more exhausting they are the more you will end up exhausted. Children are exhausting no matter how old you are, but would you rather play on the ground and run after a toddler when you are in your 40s, or when you are younger and more energetic, in your 20s? Also, would you rather have your children out of your house by the time you hit 50, or not until you are in your 60-70s? The older you are when you start, the older you will be when they leave the nest. Either way you choose, just make sure that they are well taken care of, and remember that most things you spend money on, for your child, are reimbursed by the government through child tax credits of $4,000 per year.
You will need to spend most nights waking in the middle and caring for the child. An infant needs to eat multiple times during the night, diapers need to be changed, and they will need comfort if they are scared or uncomfortable. As they get older, you are waking when they are scared or wet the bed. When they become teenagers, you stay up late until they get back from social gatherings, parties, and dates. Then when you are older and the kids move out, you find yourself waking up because of your own bowel movements. Get ready, as you get older, your life doesn’t become easier, even without children.
Just know, having children while you are younger and more energetic is not a bad thing, but make sure that you can care for their needs - both with time and money.
Read more articles: https://www.statista.com/chart/2633/raising-a-child-today-could-cost-a-quarter-of-a-million/ https://www.kidjunction.com/2023/03/15/10-advantages-of-having-children/ https://www.bellybelly.com.au/parenting/having-kids-young/ https://www.psychreg.org/mental-health-benefits-having-children/ https://freudianmommy.com/benefits-of-having-children/ https://lovinglifeathome.com/2023/09/04/science-proves-having-babies-good-for-you/ https://www.usda.gov/media/blog/2017/01/13/cost-raising-child
Tuesday May 07, 2024
Tuesday May 07, 2024
Simplified Explanation: As explained before, taxes are money that is collected, by the government, from its citizens and their businesses, to pay for their operations. These are mandated payments - based on your income, property, or what you purchased - of which funds go to the operation of federal, state, county, and city government bodies. The money is used for infrastructure, salaries of their workers, and anything else they decide to use the money for - literally anything they decide.
Real Life: The first thing you need to know is who the IRS is. The Internal Revenue Service (IRS) is a federal government department that is in charge of collecting taxes throughout the year, reviewing your annual tax return, and auditing you if they think you are hiding something. You cannot hide from them forever.
The first piece of advice, regarding the IRS (and yes, I am about to tell you to spend money), is to pay your taxes every year. The IRS does not care about your hardships; they want to know you are paying your “fair share.” They have created extensions for when something happens, and forgiveness plans if you get into trouble with them, but you will pay your taxes.
At the same time, you shouldn’t feel obligated to pay more than you are supposed to pay. You should strive to pay as little as possible (while still paying your taxes), starting with your W-9 form. This is the form that tells your employer how much to take from your pay and withhold for federal income tax. If you are the head of your household, they lower your withholdings; if you have children, you pay less, and so on. You are taking less out from your paycheck because they believe you will pay less in your annual tax return. The best way to figure out if you are overpaying is if you receive a tax return at the beginning of the next year. If the IRS writes you a check, it means you sent them too much.
Your taxes are paid at the beginning of each year for the previous year. You pay between January 1st and April 15th, of each year, based on the money you paid to the government the previous year (or should have paid), and any deductions you should have taken out. We will go over each of these. If you own your own business then you pay quarterly, for if you waited until the end of the year, you may have run out of money to pay the taxes.
History of Taxes: Did you know that it used to be unconstitutional to charge a federal income tax? That’s right! Back when the Constitution was written, there was not to be a tax on the people, but instead, the government would claim money in other ways, including import taxes for goods coming into the country. Before the Civil War, the Federal Government found other ways of funding itself. During the war, though, there was a massive amount of debt accumulated, and President Abraham Lincoln decided he needed to pay the debt that was accumulating, and wanted everyone to chip in. Almost a decade after the war, and after the government was flush with taxes coming in, it was repealed. People were about to go back to normal (not paying a tax), but the U.S. Congress got involved again, and in 1894, they enacted a law, demanding the citizens begin paying for the everyday expenses of the government - including their salaries and benefits, once again - with a flat tax. With politics, this began to evolve to what we have today, which basically states, depending on how much you make, you must pay a certain amount.
Now taxes for United States citizens are based on how much money they make, and where they live. The greatest tax increase was during Franklin Roosevelt’s presidency, and the greatest cut was during the years of President Ronald Reagan, (unless you count the different types of deductibles, meaning ways of using your money in a positive way that can lower the amount you own the federal government - and that came from President Donald Trump). Here is the history of taxes, according to each President, who now has the obligation to collect the right amount of taxes from the people.
Abraham Lincoln (Republican) (1861-1865): Revenue Act - 3% tax on income over $800 (paid off expenses and debt from the U.S. Civil War). This is when the Internal Revenue Service (IRS) was created - July 1, 1862. Repealed in 1871.
Grover Cleveland (Democrat) (1885-1889, 1893-1897): In 1894, Congress tried to enact a flat rate income tax, and the U.S. Supreme Court ruled it unconstitutional, because there were varying populations in each state.
Woodrow Wilson (Democrat) (1913-1921) – The IRS was reestablished and Form 1040 was designed. The 16th Amendment to the Constitution was enacted, adding 1% tax on income over $3,000, and 6% on income over $500,000. In 1916, he increased it to 2%, to pay for World War I. It was increased again in 1917, to 2% for income over $1,000, and the surtax increased to 63%. In 1920, government revenues were at $6.6 billion, and fell to $1.9 billion during the Great Depression.
Herbert Hoover (Republican) (1929-1933) – Enacted the Revenue Act of 1932 - the largest tax reform of its time. This increased income taxes to 4% over $1,000, up to 63% for the highest earners. This caused the highest earners to find better tax strategies. Corporate taxes increased to 15%.
Franklin Roosevelt (Democrat) (1933-1945) – Roosevelt desired to tax the rich even more, to attack the debt caused by his New Deal plan. In 1944, he raised the top margin to the highest point ever, 94%, for the highest earners, and claimed it was for World War II. In 1945, revenues increased to $45 billion (from $9 billion in 1941). This tax increase affected the lower income earners, as well. Most of this increase was used to pay Social Security, established in 1935 yet the benefit was not fully funded until 1945, with another tax increase.
Harry Truman (Democrat) (1945-1953) – The U.S. Congress cut rates in 1948, but two years later, Truman raised them again for the Korean War. By now, the lowest earners paid 20%, and the highest paid 91%.
John F. Kennedy (Democrat) (1961-1963)– Though he was assassinated before enacting the Revenue Act of 1964, this act was to lower taxes and increase job growth. He was murdered before it could be passed.
Lyndon B. Johnson (Democrat) (1963-1969) – The Revenue Act of 1964, passed by Congress and Johnson, cut tax rates to 70%, and the standard deduction was set at $300. In 1965, Medicare was enacted and created a larger deficit; so, lowering taxes was not an option without dramatically increasing deficits.
Ronald Reagan (Republican) (1981-1989) – The Economic Recovery Tax Act was passed by the President and Congress, in 1981, greatly reducing the top tax rate, from 70% to 50%, and indexed tax brackets for inflation. He pushed for savings and investments to stimulate the economy. Again, in 1986, he created the Tax Reform Act to cut taxes, and this time simplify the tax code. The top rate was lowered to 28%, and the standard deduction and personal exemptions were increased, which benefited the lower-income earners.
George H.W. Bush (Republican) (1989 – 1993) – The Omnibus Budget Reconciliation Act of 1990 raised the top tax rate to 31%, to reduce the federal deficit (yet, never did).
Bill Clinton (Democrat) (1993-2001) – He increased taxes, including the top tax bracket to 39.6%, in 1993. He also decreased deductions in order to pay for Social Security benefits. He enacted the Taxpayer Relief Act in 1997, introducing more tax breaks for families with dependent children and educational costs. Beyond that, he did lower the capital gains tax to 10-15%, to push people to invest, and created the Roth IRA.
George W. Bush (Republican) (2001-2009) – The Economic Growth and Tax Relief Reconciliation Act of 2001 lowered tax rates and dropped the top tax rate to 35%. It created a 10% tax increase on the first $6,000 of income earned - $12,000 for a joint return (for those married). The Jobs and Growth Tax Reconciliation Act of 2003 cut taxes again, and lowered capital gains taxes.
Barack Obama (Democrat) (2009-2017) – The Obama Affordable Care Act of 2010 was enacted with a penalty for not buying Health Insurance, but then was rewritten as a “tax” by U.S. Supreme Court Justice John Roberts. The Obama American Taxpayer Relief Act of 2012 increased tax rates, with the top bracket increasing again, to 39.6%. The Net Investment Income Tax was imposed to create a 3.8% surtax, intended to tax portfolio income.
Donald Trump (Republican) (2017-2020) – The Tax Cuts and Jobs Act of 2017 brought dramatic change. It increased deduction for business and personal expenses, to promote spending; the standard deduction nearly doubled; some tax deductions were eliminated for big businesses and high earners; tax loopholes were closed; individual tax rates were lowered (highest earners lowered to 37%); and corporate tax rates dropped to a flat 21%. The Sunset Provision was enacted by Congress to revert taxes to prior law in 2026.
As you can see from the list above, taxes in the United States have fluctuated with almost all presidents since the Federal Income Tax was introduced, during the Civil War, by President Abraham Lincoln. With these new taxes the government was able to pay for an expensive war, and with ever president afterwards, they have used this as a political instrument to stir up excitement.
Currently – Taxes are a very political thing. Conservatives, Libertarians, and the Republican Party want less government control over their lives, and so, want the government to take less of their taxes. Democrats, Green Party, Progressives, Liberals, Socialists, and Communists want more government, in different ways, and so, need to tax the people more, to pay for these programs.
In the news today (3/20/2021) we are looking at the government charging more taxes on us, including:
Wealth Tax: A one time or annual fee charge, based on how much you own. This would be for the wealthy at whatever level of ownership the government decides. This is a tax used in Europe with very disappointing results. Most of the time, GDP for the country decreased and many of the wealthy simply moved their wealth to another country. This tax would also be placed on U.S. millionaires and billionaires, but not foreign investors who would move in, buying up the loss of U.S. wealth. These bills were written and promoted by Senators Elizabeth Warren and Bernie Sanders (Progressive Democrats).
Value Added Tax: Every time you buy a product, you pay a sales tax. This normally is regulated by State, County, and Local governments. A VAT Tax is where the federal government puts together their own sales tax, and adds that to every product you buy. So, when you are paying 10% on goods you buy right now, you would pay an additional 10% to the federal government.
President Biden’s plan: His plan is a repeat from the past 30 years of taxes: increase the tax rates for those making over $200,000 a year, and remove many of President Trump’s enacted tax deductions (ways of using your money in good ways to decrease your taxes, including donations to nonprofits).
Gas and Fossil-Fuel Taxes: With the coming possibility of a Green New Deal, taxes on all fossil fuels will increase, to penalize the use of fossil fuels, and pay for the Green New Deal and the money being spent to pay the United Nations, based on the Paris Climate Accords.
How to Pay Less Towards Taxes - It is always important to pay the least amount legally possible to the government. You are only obligated to pay the minimal amount. Here are a few ways to keep your money:
W-4 Form Deductions – When you sign all your new employee paperwork, you will have one form, the W-4, which will ask you questions to estimate how much you need to pay in Federal Income Tax. Pick every deduction point possible. Your company's HR Manager will figure out how much you will have to pay from that number. The more deductions you have, the less the government will withdraw from your pay.
Increase your employee benefits – All fringe benefits, provided by your employer, are tax deductible. The money you pay for your benefits (health insurance, life insurance, retirement) is subtracted from your salary; that reduced payout is taxed. The more you pay into your benefits, including your retirement savings account, the less you pay to the government.
Expenses Reimbursed as an Accountable Plan – If you pay for business with your own personal money, make sure it is documented; have them expense it as a normal expense, and not in payroll. This will decrease your pay, and so, reduce your taxes.
Again, you are under no obligation to pay higher taxes than you are legally and lawfully required to. That means it is your duty to yourself to find ways to decrease your pay and taxes, so that you take more of the benefits of the money you worked so hard to earn.
Maximize your IRA and HSA Contributions – You can contribute to both of these tax free accounts for retirement (Individual Retirement Account – IRA, maximum contribution is $6,000 in 2021) and Health (Health Savings Account – HSA, maximum contribution is $3,600 in 2021) through your employer - with each paycheck, or by setting up your own account and contributing yearly.
Rethink your filing status (Married vs. Single): When you are married, you can file your taxes jointly or individually. There are benefits to each, so check which one will allow for a larger tax return collectively.
Child Tax Credit: For each child you have, you can write off a certain amount of taxes. This changes constantly, with new administrations, and should be looked up at www.debt-freemillionaire.com/taxfree/.
Standard vs Itemized Deductions: There are many deductions you can list (itemize) on your taxes, to pay less taxes, including donations, medical expenses, etc. You may take all the deductions that work in your favor, or take the Standard Deduction - a specific amount of money set by the government - whichever is more. These are good things the government recognizes as ways to reduce your taxes.
Record charitable donations: Every time you donate to a 501(c)(3) non-profit organization, you can deduct that amount from your taxes. You want to keep good records of these for 7 years, so, if you are audited by the IRS, you have full documentation to justify these reductions in taxes. You can list your charitable miles, donations of cash or materials, and anything that financially supports non-profits.
Claim your children, friend, or relatives you have been supporting: all those you support financially can be claimed as a dependent of yours (especially if they aren’t making money and paying taxes - you get a deduction for them to pay for their care).
Track all your medical expenses: If you have a certain amount of medical expenses, these may be deducted from your tax bill. Keep track of: miles, bills, and medical expenses, including medication.
Deduct your state and local sales taxes: When you pay your state and local sales taxes, you can write this off as a deduction because you are not required to pay taxes twice on your money.
Student Loan interest: If you attended school and paid for it with student loans, you can write off a small portion of these fees and interest towards your student loans.
Child and dependent care: If you are paying for the care of children, friends, or relatives during the day, or as a resident in those facilities, you can write these expenses off of your taxes.
Earned Income Tax Credit: These help low- to middle-income workers get a tax break. If you qualify, you can use the credit to reduce the taxes you owe and possibly increase your refund.
State Income Tax: If you are taxed on your money by the state, you can reduce your taxes owed by reporting to the federal government the taxes paid to the state? You get a federal tax break because of income taxes paid to the state?
Reinvest your investment dividends: If you receive a dividend from your stocks and you withdraw that amount or accept it in cash, you will be taxed on it; but if you reinvest it into the stock, it’s tax free.
Write off mortgage interest payments: Your mortgage interest (not Principle) payment is tax deductible. This is an extra incentive for people to become homeowners. Hint: The more payments you make in a year the more you can deduct. Tax experts advise clients to pay your last payment of the year on December 31st, to claim your tax credit; but remember, you can’t claim that amount the following year.
Start a business and write off your losses (K-1 form): This can be your greatest deduction over a few years. If you start a business, most see a loss of money for the first few years (after salary). All that loss is distributed among owners and deducted in your taxes. This also means that your investors get these same deductions, as well, if they own part of the company. The government supports the startup of new businesses - especially if they create jobs - and wants you to be able to deduct losses from your income (less income to tax and pay).
Energy Savings and Green Initiatives - When you buy green technology, such as solar panels, tankless hot water heaters, insulation, or energy efficient measures for your house (or even your business), you can write these off on your taxes. Find a complete list (including local incentives) online, according to your state.
Take advantage of government programs: The government creates programs to help people financially during hard times; this includes COVID and the financial struggle it pushed most Americans into.
Become Tax Refund Smart: Learn other methods, especially local deductions, that will help you reduce your tax rate; this is how the rich pay less in taxes, and you can, too. Don’t just allow the government to take more from you than you are legally obligated to pay. At the same time, don’t write off things that are not tax deductible, because when the IRS finds out, they will come after you for the difference, and a punitive (punishment) fee on top of that difference (and as they search your records, they won’t make it easy for you).
* Everything in this chapter is for educational purposes and should not be taken as financial advice. Talk to your accountant and/or tax preparer for current and local deductions that are allowed.
Also read: https://taxfoundation.org/data/all/federal/summary-latest-federal-income-tax-data-2023-update/ https://taxedright.com/2024-tax-brackets/ https://engaging-data.com/tax-brackets/ https://wbtphdjd.medium.com/where-90-percent-tax-rate-really-came-from-e3834f0e56b https://www.visualizingeconomics.com/blog/2011/04/14/top-marginal-tax-rates-1916-2010
Tuesday May 07, 2024
Tuesday May 07, 2024
Simplified Explanation: Like buying a personal home, you will find opportunities to buy houses at a low price
Real Life: Investments are a must learn for most people but the truth is most Americans should diversify their money into many different funds (such as mutual funds) and sit on it for 10+ years. Most advisors will tell you they can get you a better return, but you have mutual funds available to the public that, over 10 years, will give you a 20% ROI (Return on Investment) every year so moving it around is just adding more risk instead of keeping it in one location. On Week 3, Day 4 (W3: D4) we listed out the most common investments you could invest in but now we will get a little more into investing of individual stocks.
Disclaimer: This is not financial advice on how to invest but information about investing as an educational study. Here are things you may want to know before you start buying stocks:
What are investments – Investments are buying ownership in a company or mutual fund. By you buying any investment you are paying for a portion of that company or fund and asking for a return on that investment. Investing in individual stocks is just one way to invest your money. Here are a few ways before we get into more details about each:
Individual stocks - An individual stock represents ownership in a single company, entitling the shareholder to a proportional share of the company's assets and earnings. When an investor purchases shares of an individual stock, they are essentially buying a small piece of that company. The value of the stock can fluctuate based on various factors, including the company's performance, market conditions, and investor sentiment. Individual stocks can be bought and sold on stock exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ, providing investors with the opportunity to potentially profit from the success of specific companies. However, investing in individual stocks also carries risks, as the value of a stock can decline, leading to potential losses for investors.
Mutual Funds - A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional portfolio managers, mutual funds offer investors the opportunity to access a diversified portfolio of assets without needing to purchase individual securities themselves. Investors buy shares in the mutual fund, and the fund's value is determined by the performance of the underlying assets it holds. Mutual funds are designed to spread risk across a variety of investments, reducing the impact of any single security's performance on the overall fund. They are commonly used by investors seeking diversification and professional management of their investment portfolios.
Bonds - Investment bonds, also known as bonds or fixed-income securities, are debt instruments issued by governments, municipalities, corporations, or other entities to raise capital. Investors purchase bonds, effectively lending money to the issuer in exchange for periodic interest payments, known as coupon payments, and the eventual repayment of the bond's face value, known as the principal or par value, at maturity. Bonds typically have a fixed interest rate and specified maturity date, offering a predictable stream of income and considered relatively safe investments compared to stocks. However, bond prices can fluctuate based on changes in interest rates, credit ratings, and market conditions. Investors may choose to invest in bonds for income, capital preservation, diversification, or as part of a balanced investment portfolio, with bonds commonly traded on bond markets through brokers or financial institutions.
Private Companies - Ownership in a private company refers to having a stake in a company that is not publicly traded. Unlike publicly traded companies, private company ownership is typically limited to a smaller group of investors, founders, or venture capitalists. It grants individuals or entities rights such as voting privileges and a share of profits, but is less liquid and not easily traded on an open market.
Living vs Retirement investing - Some of these options are for monthly living expenses (individual stocks) and some grow over time (mutual funds, bonds, and private companies). Consider how soon you want to use your money and buy accordingly. The sooner you want a return, the more risk you will be taking.
Stockbrokers yesterday, today, and tomorrow
In the past people have invested with a stockbroker, recently its been through a stock broker website, now it is being done completely on an app on your phone. The same has changed for fees as well. In the past you paid a broker a good amount of your return for them to invest it, prices dropped as the visual broker went away and online trading became popular, and now there is almost a price war among brokers trying to win you as a client. They have dropped fees to nearly $0 per trade with apps like Robinhood.
Broker Strengths and weaknesses - Different brokers have different strengths and weaknesses and fees they charge, look up reviews online and sit down to meet with them before setting up an account. Weigh the pros and the cons.
Diversification in your investments - Never invest all your money in one stock or company ever. There is too much risk that something could happen, and it be worth $0. Diversify your portfolio means spread your money out. Investors know this that 10 may fail but if one hits it big, it will eat up all the other loses and you will still make a lot of money if you choose correctly. Most of the time, a diverse selection of stocks and companies won’t all fail at the same time, minus a recession usually makes all prices fall, which is why you need to consider your risk tolerance and ability to get back up and not see yourself as a victim. If you are resilient in life, you are more likely to have a higher risk tolerance.
Mutual Fund Diversity - A mutual fund is diversifying because it is usually built as a fund of many individual stocks, bonds, and commodities and if a certain value goes down, others may go up which means less of a loss during a recession.
Balanced Portfolio - Diversifying in competing stocks helps balance your portfolio. You should think of having a mixture of recession-friendly sector investments such as staples, utilities, and health care. They don’t have the best returns during boom times in the market, but they also don’t go down because they are essential. Essentials normally stay steady during recessions because they are always needed. Retailers such as Amazon and Wal-Mart stay stead or go up during recessions when people have to shop for cheaper options. Look for stocks that give a reliable dividend, real estate is a good investment after the price settles down low. Precious metals increase during times of recession and slowly decrease as times get easier and people adjust their holdings to go after more lucrative investments. Invest in yourself during a recession; take your money and put it into your education during a recession. Education during a time of high unemployment will get you through any rough economy and make you ready to be hired when the recession ends and businesses are looking for new blood (employees).
Dividends - Most stocks pay you dividends, excess money, each year, without you having to sell your stock. Most people invest this money back into the company with more stock or keep it for your living expenses. Though if the economy turns, there will be no dividend that year and this is why you should have other income through a full-time job just to make sure you can feed you and your family. Look also at how a company/stock pays dividends, finding those who show a strong history. Also know that they can hold back on paying dividends in time of recession to give the company more funding.
Recessions Happen - Considering recessions happen every ten years, investment values drop for two to three years afterwards slowly creep back up to before recession levels and higher, then when you get older you are advised to rebalance your portfolio to be less risky, consider this new approach. Most financial planners want you to change your portfolio to be as risk averse as possible in your later years. Instead, try planning out your next 10-12 years between each market adjustments, starting in the middle of each recovery, how much money will you need? Rebalance that amount of your investments into low risk investments while keeping the rest in high risk mutual funds with a history of high returns over 10 years. If you do this, the next 10 years of money you need will not fluctuate too much while the rest will be able to climb to new heights and though it may drop during the next recession, history has shown that it always comes back after the recession and when it comes back it shoots well past its last peak value. This way your investments continue to climb as you grow older and the hope is that you never go without the funds you need to survive.
Lookup Their History - All established investments have a history, look at the history of the stock or mutual fund. Make sure that they show a steady incline over the years. Mutual funds will likely give you a 1, 5, and 10 year history of their average ROI interest rate they have returned. Those that are the most steady increase dramatically over the years and even if a few stocks drop in their investment, the rest of the investments will potentially increase keeping the fund portfolio solid and growing.
News Affects Values - Consider the news when considering individual stocks. When you buy stock, make sure you are informed about their latest news. If they are hiring, this is a good sign for expansion and increased values, if they are being sued, this will return with a lower value for their stock. If a pandemic happens travel stocks will fall yet retailers who allow for shopping online will likely grow. Learn before you buy what to look for in the news so you can be the first to buy when something good happens and first to sell when something negative happens.
Strengths and Weaknesses in Stocks and Investments - Each company and mutual fund have their strengths and weaknesses. For companies they have their strengths in potential for growth while mutual funds have potential in the individual investments in that fund. This is all public knowledge so look at what they are investing in and see if you think those are good investments. Remember though, that they have a 10-20 year history that you can check and they are good at what they do.
Debt-to-Equity Ratio: One weakness could be their debt-to-equity ratio or those companies that are still in a great deal of debt compared to their equity in their own company. To find this number, divide the total liabilities on the company balance sheet by the total amount of shareholder equity. For those with a lower risk tolerance, that number should be 0.3 or less.
Price-earnings ratio (P/E Ratio) shows how well a stock’s value is doing compared to their earnings. This will tell you if they are undervalued or overvalued. To find this ratio, divide the company's share price by its earnings per share. If a company is trading at $40 per share and the earnings per share are $2.50, the P/E ratio is 16. Use this to investigate similar companies. The lower you the ratio means the more the earnings are increasing. Know that a stock with a 16 ratio can be good when you compare it with other companies. It all depends on how the economy is doing at that time.
WELCOME TO THE DEBT FREE MILLIONAIRE BRAND
Beyond our podcast, we also have an upcoming video game and books.
Upcoming Video Game
Our game is being produced by Xogos Gaming, with the help of the ASA.
Debt-Free Millionaire" is an innovative financial simulation game that blends the thrill of video gaming with the practical, life-changing knowledge of personal finance and investment. Designed to mirror real-life financial situations and decisions, the game is powered by sophisticated machine learning to create dynamic, realistic scenarios that players must navigate. From managing day-to-day finances to making strategic investment decisions in stocks, commodities, real estate, and businesses, players will encounter the full spectrum of financial planning and wealth building.
Upcoming Books
One of these books is a general Debt Free Millionaire personal finance course. That is right, we will be teaching you classes about personal finance right from the book.
The second book is about house flipping, and do I have some great stories for you. I once bought a house that was built in 1913 that I had to nearly rebuild, I made so many changes. It was in Fort Leavenworth, in Kansas, and man was that an adventure.
Another house I flipped and in the middle of it I had open heart surgery, which I woke up on Christmas day and the a few months later, while still remodeling, the whole country shut down due to COVID lockdowns. That too is a story for another time.