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Nothing Annoying or Unexpected.
Go Giving
Middah Kineged Middah (measure for measure.)
It’s how Hashem treats us.
If you want to receive, then give.
It’s also logical: People would rather do business with a giver than with a taker.
Besides being the right thing to do, it will benefit you too.
Idea from the book, The Go Giver, by Bob Burg, a short and inspiring read.
How I save Big on Bath and Body Products
Ebay.
Often cheaper.
Bulk.
Can make low offer (even if doesn’t list option, you can message seller).
Items without returns are often cheaper. I only do if I’ve used product before. If there’s a real issue, you’ll get refunded.
Find items, even name-brand, not sold on Amazon or U.S. sellers.
2
Reuven to Shimon: “Business must be doing well! I see you got a Lexus.”
Shimon: “If I could afford a Lexus, I’d be driving a Bugatti.”
There are only 2 reasons someone has something you can’t afford:
a. He can; therefore it has no relevance to you.
b. He can’t; therefore it has no relevance to either of you.
Intentions vs. Incentives
In the Soviet Union, furs piled up in warehouses, rotting, while people went hungry.
Illogical?
No.
The government required furriers, under penalty of the law, to meet their quotas.
So they did.
But they wouldn’t be punished for low food production.
Lesson I learned:
We act logically, based on our environment’s incentives.
These can include actual rewards and punishments, as well as mere convenience or the power of habit.
Intentions are nice, but incentives create results.
Like a Tire
If your tire’s deflated, you add air and look for a leak.
Same with money.
If you don’t have enough, manage your spending, saving, and investing.
That often solves it.
Making more without managing it is like adding air without plugging a leak.
Credit Card Aplication
In order to be approved for a credit card, you need to have income.
Even if you aren't currently employed, the company may count expenses being paid on your behalf.
After age 21, the bank may allow parents' and in-laws' incomes to be counted - even money you do not receive from them - if you do receive some support.
Before applying, find out what that company counts as income.
For a full discussion click here.
Scams
We've all heard horror stories of people who were scammed out of thousands of dollars.
The scariest part? It can happen to anyone.
Learning common tactics that scammers use can help you spot a scam.
Fear and intimidation (such as threats)
Stress (such as using deadlines)
Unrealistic Offers
Unprofessional Payment Method (Bitcoin/Gift Card/Zelle)
If you were scammed, go to the FTC Website to learn what steps to take.
Empathy Gap
An alcoholic listened with horror as his friend described some of the behavior he had seen from drunkards. "I wouldn't do that if I were drunk," he asserted. His friend gave him a sharp look. "If you were drunk, you'd be drunk! You can't predict what you would do when you aren't in that state." - Chafetz Chaim
Financial applications:
Assuming you won’t panic sell a stock.
Underestimating the power of peer pressure.
Not being wary of scams.
Shopping when hungry.
Plan ahead when you’re calm so you’re better prepared.
For more, see this article:https://www.asherfurst.com/money-guides/common-cognitive-biases-part-2
Life Insurance in 30 Seconds
If you have dependents, you probably need life insurance.
Term vs. Whole Life:
Most people only need Term which is often 1/8 of the price.
How much coverage?
A good rule of thumb is 25x the income you need.
Cost:
Start young and it is often around $50 a month.
Agent or DIY?
I recommend using an agent - you get expert guidance and it doesn’t cost more. The company pays him a commission.
Make sure you trust him since the more expensive the policy, the more he makes.
For a full discussion, https://www.asherfurst.com/money-guides/life-insurance-basics
The Best Retirement Account
The best account for retirement is an HSA.
Unlike other accounts, contributions are tax deductible, and growth and withdrawals aren’t taxed.
The catch?
You need a high deductible health plan.
Withdrawals need to be used for medical expenses, but see
https://www.asherfurst.com/money-guides/how-to-maximize-your-health-savings-account for a full discussion.
Save or Earn?
Saving is a pillar of personal finance since if you spend more than you make…
But, there are 2 ways to save:
Spend less: Limited
Earn more: Unlimited
While both are necessary, earning is more important.
How to Become Wealthy
People often talk as if there is only 1 path to wealth.
“Start a business”
“Max out retirement accounts”
It’s not true. Just a few options:
Start a business - Elon Musk
Run a business - Steve Ballmer, Microsoft CEO
Get a high paying job, or
Get a low paying job, live well below one’s means, and invest over many years - Ronald Read, or
Work multiple jobs.
They do have something in common though: Spending less than you make and hopefully investing the difference.
Credit Hack
If you have a credit card you no longer use, you should use it occasionally to keep it active.
You can schedule a few dollar transfer to your Amazon balance 1-2 times a year.
With the card on auto-pay, it will be used and paid effortlessly.
Goals Don’t Work
92% of new year’s resolutions aren’t kept.
Goals aren’t a plan; they are a destination.
Set a goal, then establish habits you’ll do consistently.
Scam Season
Scam red flags:
Unprofessional payment - Zelle, gift card, Bitcoin
Improper grammar, strange logos or email addresses
Any call or email asking for money or personal information
Pressure and urgency
Too-good-to-be-true offer
If you’re a victim of a scam, contact the local police department or the FTC website.
Don’t Jump In
If you have a business or career idea, get advice from people in that field.
This advice has saved me months from pursuits that were either too time consuming or didn’t have much money in them.
Be an Educated Consumer
Did you receive messages about Black Friday sales expiring and then hear that they were extended?
Did you notice the prices of some items go up and then down for a “sale?”
Be an educated consumer.
Don’t rush into decisions, and check the historical prices of an item.
Lower Your Taxable Income!
To lower your taxable income, you can put money in a 401(k) or IRA,
but it must be Traditional, not a Roth.
The 401(k) has to be funded by Dec. 31, but you have until Apr. 15 for an IRA.