If the word “budget” does not make you jump for joy, you are not alone. Budgets exist to track, control, categorize and ultimately limit your spending. Although they can provide us with greater control and—eventually—freedom, budgets are based in concepts of scarcity and limitation.
Budgets are the monetary equivalent of diets. Instead of limiting and restricting food, budgets limit and restrict spending. And while diets—and budgets—can produce results deemed desirable, nobody really likes dieting.
Is there a different way to think about managing our money that might produce desirable results—without a sense of deprivation? We think so! In this article we (Kim Butler and Kate Phillips) share ideas of how to manage your spending with a prosperous mindset!
A guaranteed lifetime income is a compelling proposition. After all—who doesn’t love the idea of being set for life? While it is impossible to know how long you’ll live, it IS possible to make sure you will receive (at least) a certain amount of income for the rest of your life.
Single Premium Immediate Annuities (SPIAs) can provide this lifetime income, yet few people use them in their retirement strategies. Why is a lifetime income annuity a lifesaver for some retirees? And how can you know if it makes sense for your situation?
“If there’s a single unsolved problem in the retirement plans for many middle- and upper-middle-income adults, it’s what to do about long-term care costs later in life,” says Christine Benz of Morningstar. And she’s right.
According to the Genworth 2018 Cost of Care Survey, the national median annual cost for long term care ranges from $48,000 to $100,375 depending on the type of care required. Of course, home care is less expensive than care in a facility, and shared rooms are less expensive than private rooms.
Kids are expensive—and worth it! In a recent survey, an overwhelming majority of parents (94 percent) say parenting is the most rewarding aspect of their lives. But if you think the expenses end when the child turns 18 or graduates from college—think again!
According to a recent study by Merrill Lynch and Age Wave, 79% of parents in the U.S. provide financial support to their 18- to 34-year-old adult children. This amounts to $500 billion spent annually—twice what those same parents contribute to their retirement accounts ($250 billion).
“Grit is living life like it’s a marathon, not a sprint.”
—Angela Duckworth, Grit
What determines success? Is it intelligence, talent, or something else?
Angela Duckworth’s book, Grit: The Power of Passion and Perseverance, answers this question and explores the “something else” that is essential for success. Grit is the ability to sustain effort in order to reach long-term goals. Duckworth defines grit as part passion (something you know you want and/or love doing) and part perseverance (hard work and resilience).
Let’s dive into some of the highlights from this excellent book. As we do, we’ll look at how grit can be applied, specifically—to your finances!