Lifestyle Inflation: The Silent Killer of Your Finances?

lifestyle inflation: the silent killer of your finances

Chances are, you want to make more money.

Most of us think that a higher income would improve matters in our financial lives.

But would more money really be useful to your long-term financial health?

It could potentially help — as long as you don’t let lifestyle inflation drain away your excess income.

The reality is that when most people earn more money, they spend more money.  If you aren’t careful, lifestyle inflation can destroy all of the benefits that come with a higher income.

You won’t get ahead if you don’t put that money to good use for your future.

What is Lifestyle Inflation?

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Grow Your Dough Throwdown Update – February End – It’s Growing!

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It’s awesome when you see your investments going up!

It’s the kind of feeling that makes you feel powerful; invincible even.

And when your investments go down you feel a pit of despair in your stomach.  “Please go back up some so I can sell and I’ll never invest like that again,” you plead to the investment deities.

Of course this is all good reason you should carefully invest.  It’s not hard to do but if you don’t have the stomach to see your investments fall in value then you’re better off investing in broad sectors (like the S&P 500 or all stocks).  Honestly, most people aren’t that great at picking stocks so your best long-term plan is to stick to sector funds and ETFs.  And even then you might not want to look at your picks too often.

About a month and a half ago I jumped into the Grow Your Dough investment challenge.

This challenge pits a growing number of personal finance writers against each other for a year to invest $1,000 and see whose investments would come out on top.

I chose to pick individual stocks.

If you take a look at the other people in the competition you’ll see a number of different investing strategies.  It’s pretty cool to see how everyone interpreted the challenge.
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Quicken 2014 Deluxe for Windows Giveaway

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Not long ago we told you about the awesomeness that is Quicken Deluxe.

It’s a great bit of software that helps you track your money and create budgets (among other things).  If you’re looking to better understand your money then Quicken is one of the programs you need to check out.

Why am I telling you this?

I was given a promo code for a free copy of Quicken Deluxe 2014 to give to one of my excellent readers!  That could be you! Continue Reading

These 6 Behavioral Finance Mistakes May Be Ruining Your Finances!

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Behavioral finance is the study of how our behaviors affect our finances.

In many ways, the way that we see the world, and our reactions to what is happening around us, define our finances.

We might not even realize how our biases affect our finances.

The first step to overcoming biases in your life, especially if they are psychological, is to acknowledge them.  You need to be aware of what is holding you back.

Once you recognize the reasons for your difficulties, it will be easier to address them — and to come out ahead with your finances.

Here are 6 behavioral finance mistakes that might be holding you back:

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Not Every Baby Is Born Into Royalty But Yours Can Still Prosper

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Prince George, or Georgie, as he will be called, was born in July to much fanfare and anticipation. 

What does it mean to be born into the House of Windsor?   Even though he likely won’t exert his political power when he becomes king, he will still be influential.

And he will be worth a pretty penny. 

According to International Business Times, he will inherit 700 million pounds.  There’s no doubt little Prince George is already one of the wealthiest babies in the world.

Of course, not every baby is born into royalty, with the proverbial silver spoon.  Chances are, you probably wouldn’t want that life for your child anyway.

While you may be from modest means, you CAN help your child get a financial advantage over many of his peers by taking important steps when he or she is young.

7 Ways to Set Your Child Up Like Royalty

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How an Emergency Fund Will Save Your A$$

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You need an emergency fund.

This represents one of the basic pieces of personal finance advice.  Even so, many people don’t believe that an emergency savings are necessary.

If you want to improve your chances of achieving financial freedom, though, you need to change your mindset and acknowledge that an emergency fund is essential.

Here’s Why an Emergency Fund is Essential. Read These Now!

An emergency fund is essential.

To Deal with Unexpected Expenses

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Don’t Let Them Get Your Money! How You Can Hide Money from Lawsuits, Creditors, and the IRS

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Are you worried that someone might be coming for your money?

Whether it’s a potential lawsuit, or even if it’s the IRS or a creditor, you probably want to protect your assets.

If you want to protect your assets, you need to know where to hide your money, and know how to properly structure certain accounts in order to avoid having someone drain your financial well dry.

Here are some places that you can hide your money:

Retirement Account

One of the best places to hide your money is an ERISA-qualified retirement plan.  Not only can you keep some of your money safe, but you can also earn a tax-advantaged return on the money.  The money in your retirement account is protected from liability lawsuits.  Additionally, your retirement account might have some protection from bankruptcy and creditors (not always, though).
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