Tag Archives: investing

Bernie Sanders and AOC want to lower credit card interest rates but it may not be a great idea

**Bernie Sanders and AOC want to lower credit card interest rates but it may not be a great idea**



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Yahoo Finance’s Rick Newman discusses Bernie Sanders and Alezandria Ocasio Cortez’s plan to discuss lower credit card interest rates.

Nobody should ever pay a 25% interest rate to a credit-card issuer.

With that said, the understandable urge to pass a law capping what banks can charge could hurt the very people it’s meant to help, and cause other problems that may ravage people’s finances even worse.

On Thursday, Democrats Bernie Sanders and Alexandria Ocasio-Cortez introduced new legislation that would cap credit-card interest rates at 15%, and require the U.S. Postal Service to offer basic banking services for those who can’t afford a traditional bank.

The bill addresses legitimate problems. Millions of Americans are “unbanked” or “underbanked,” with limited access to modern financial tools that help people get ahead. And high rates often charged to low-income borrowers can lock in an unbreakable cycle of debt and poverty.

Solutions aren’t as obvious as they seem, however. Banks would lose revenue if there were a federal cap on card interest rates, which is why they oppose such a move. Don’t cry for them.

Banks would be fine, but they’d make other adjustments that the New York City congresswoman and Vermont senator may not be anticipating. Banks set rates according to the riskiness of the borrower — and if 15% were the most they could charge for what are basically loans via credit card, they’d curtail borrowing limits. It could result in credit to fewer people.

Some consumers with weak credit might not even be able to get a card —even if they paid off the balance each month and never paid interest. Fees might also rise just for having a card. And people who do get cards might try to borrow more via plastic, if rates were lower and it cost them less (another wrong incentive).

So unintended consequences of a cap would include less access to credit for some and more credit-card debt, at a slightly less onerous rate, for others.

People run up costly credit-card balances for a couple reasons. Some people are just uninformed or undisciplined consumers. The best solution there is consumer education, along with new tools like financial-planning apps that can help people manage money, and send alerts when spending levels are too high.

Others rely on credit cards because they simply lack the cash to buy basics when they need them, which is a tougher problem.

As bad as credit-card debt is, it’s better than borrowing from a payday lender or illicit loan shark. The core solutions here are improved financial literacy, better skills and stronger earning power for the most vulnerable consumers. None of those are a quick fix.

That speaks to the second part of the Sander-AOC plan, which is postal banking. The postal service has outlets in most American communities, and it already cashes government-issued checks. So why not expand that to basic financial services? Other countries do, including France, the U.K., Germany, Japan and South Korea.

This could work, but only if done carefully. It’s possible for the postal service to offer savings and checking accounts, debit cards, ATMs for cash withdrawal and other basic services that entail little risk. There are legitimate questions about whether an agency backed by the federal government should compete for customers with private-sector banks. But it would be possible to tailor a menu of postal financial services so narrowly that there’d be little overlap.

The legislative proposal would go further, requiring the postal service to offer low-interest loans— and this is where the problem begins.

Anybody making a loan faces a risk of not getting their money back, which is why banks do extensive research to establish creditworthiness standards. That’s a core expertise of banking. Riskier borrowers pay higher interest rates, because it’s more likely they’ll default on a loan.

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Saving My FIRST $100,000 Before 26 | How Long it took to INVEST

**Saving My FIRST $100,000 Before 26 | How Long it took to INVEST**



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I saved my first $100,000 before the age of 26. This video shows how long it took to save, what I invest in, and what I did to get there

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ABOUT: I saved my first $100,000 before 26, it took me a while to here starting at just $12 an hour when I was 19. This video shows the most important thing about HOW to actually get there by adopting a frugal mindset, and investing to create passive income by buying dividend stocks that will eventually generate a snowball effect of compound interest. This is my story from 19, to 30 and how long it took to build save each $100K.

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You can now turn a drone into a flying flamethrower

**You can now turn a drone into a flying flamethrower**



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The company Throwflame created an attachment for commercial drones that turns them into flamethrowers. Subscribe to Yahoo Finance: …

How to Make Your Budget Automatic | The No-Budget Budget Explained

**How to Make Your Budget Automatic | The No-Budget Budget Explained**



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In today’s video I go over the automatic budget (also known as the no-budget budget) made famous by bestselling author of the automatic millionaire David Bach.

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The automatic budget is a budgeting method that looks to set up systems that make as many of your regular financial decisions automatically as possible. The idea is that once you set it up you will just monitor your finances each month instead of creating a monthly budget for your money.

If you enjoyed this video you can check out some of my other videos at the links below!
All of my Personal Finance Videos:
All of my Debt Videos:
All of my Retirement Videos:
All of my Investing and Stock Market Videos:
All of my Budgeting Videos:

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Please watch: “The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners”

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Just like most things in life budgets aren't
for everybody. For some people, it's actually best to not
have a budget or at least that's what the author of the best-selling book the automatic
millionaire David Bach believes. Let's see if it's true. As you can tell by the title today I'm going
to be covering a very intriguing budget known as the automatic budget or sometimes as the
no-budget budget. Hey everyone Daniel here and welcome to Next
Level Life a channel where you can learn about Investing, debt, retirement, and many other
general financial education videos because the school's aren't going to do it for us. So if any of those topics sound interesting
to you or if you want to learn how to better handle your money and have more financial
freedom be sure to hit that subscribe button and the bell next to my name to be notified
every time I upload a video. So when you think about being responsible
with your money a budget may very well be the first thing that comes to mind. And judging by how many budgeting videos I've
made already on this channel I would understand if you're a little confused about why I'm
making a video that says that for some people no budget is necessary. The last thing I want to do is misguide you
so I want to get this out in the open first… The automatic budget is not for everybody. And if most of us are honest with ourselves
most of us do need some kind of budget. It may not be the zero-sum budget not everyone
needs that in depth of a budget but most of us do need some kind of budget. However, that doesn't mean that budgets are
for everyone. Some people do have the necessary traits to
live a financially successful life without a budget. So as you're watching this video keep that
in mind and be very honest with yourself because as intriguing as this budget is it isn't for
everybody. And the last thing you want to do is get yourself
tied to the idea of this budget if it isn't for you because then if you try it and it
doesn't work it's all the more discouraging when you realize you got to go back to more
traditional budgets. So with that disclaimer out of the way let's
get into the no-budget budget. WHAT IS IT:
So what is the automatic budget and how does it work? Well as the name implies the automatic budget
aims to make as much of your financial decisions for you automatically as possible. This is done by setting up automatic payments
for things like your mortgage, rent, cell phone bill, savings and retirement contributions
and anything else that you can automate. And it's actually pretty surprising how much
that is. After you've automated all the expenses and
savings that you can whatever's leftover is yours to spend on whatever you want. The idea is that from here on in you will
be able to just monitor your finances as opposed to setting up a monthly budget. So who does this type of budget work best
for? In my opinion, it works best for those who
either already have more money coming in than they do going out or at the very least have
a pretty good idea of where they want their financial life to go. In other words, they have well-established
goals. This is because for this budget to work long-term
you need to be willing to pay yourself first like David Bach preaches but you're also going
need to be willing to live on less. Why do I say that? Because just like with any budget you need
to be able to invest enough now so that you can support yourself and retirement later. The difference with this budget is that since
it's a lot more like a set-it-and-forget-it budget than most because you decide from the
get-go how much you're going to allocate to what category and basically just have it done
automatically from then on your initial decisions are going to have a huge effect on your financial
future. Say if you're in your early twenties and just
starting your first job and you decide to pay yourself 10% of your wages and you use
the automatic budget throughout your entire 40-year working career. Just to make the numbers easier let's assume
that you make $50,000 a year meaning that if you're putting away 10% you're saving $5,000
a year. At 8% rate of return, you would wind up with
$1,351,423.77 when you retire. However, there are a couple of things to consider
here first $1.35 million is good no doubt about it but it's not going to be quite as
good 40 years from now as it is today. If we assume inflation is about 3% per year
on average that means that the $1.35 million would be worth about $430,000 today. And if you were to get an 8% rate of return
on that you would realize that in today's dollars your retirement income would be about
$34,400 a year. Now some of you might go well that's fine
I can live on $34,400 today and since it's in today's dollars why would this be a problem? And you have a point it might not be a problem
I'm not trying to use this example to denigrate the automatic budget that's not my intent. But in this example, you were saving 10% of
your money and making $50,000 a year which means you were living off of $45,000 a year
in today's dollars. So you would need to adjust your lifestyle
a little bit in retirement which is probably not what we would want to do if we had the
choice. That's the great thing about the automatic
budget though is you do have the choice and that's why I was saying your initial decisions
are so important. Let's say that in the same example you decided
to save 20% of your income instead of 10 but you still made $50,000 a year. That would mean you're saving $10,000 a year
and would wind up with $2,702,815.10. That equates to a little under $830,000 today
meaning that your retirement income in today's dollars would be a little over $66,000 a year. Now, of course, you can always change your
initial decision later on down the line. Say if you went your first year saving 10%
and realize that you could still manage to get by comfortably if you up to 20% you could
certainly do that in the next year or whenever you realize it but I'm just going to say the
next year for this example. And say if you did that. Say if you upped your investments from $5,000
to $10,000 a year or from 10% to 20% given the numbers in the last example you would
end up with $2,597,881.85 when you retire. That's right around $105,000 less than had
you started at 20%, but it's still significantly better than staying at 10% the whole time. It
translates to a difference of a little over $32,000 in today's dollars and roughly $215
a month difference in retirement income in today's dollars. So it isn't necessarily backbreaking if you
catch it early but that initial decision is still important and can make a difference
when dealing with this budget. So the way I see there are 2 main ways that
this budget could fail. The first way is if you aren’t aware of
where you’re money is going and how much of it is leaving the house each month. Because you may end up not having enough money
to cover your expenses or you may end up forgetting some expenses that you don’t pay every single
month such as car tabs and other irregular expenses like that. This means that the term no-budget budget
is a little misleading because you do have to set up the budget initially just like with
any other one. It’s just that you don’t have to do a
new one every single month assuming you set up the initial budget properly. The second way that this could fail is by
not leaving you enough money to live on when you reach retirement like I already covered. So that's how the Automatic budget works. As always if there are any other types of
budgets that you want me to cover let me know in the comments below. But that'll do it for me today once again
if you enjoyed this video be sure to subscribe and hit that Bell next to my name so that
you'll be notified of all my future uploads. I generally upload every single Friday, and
if you have a friend that would be interested in this kind of content be sure to share it
with them and let's really get this information out there and start our own Financial revolution.

Passive income using bank accounts - £1000+ per year (UK)

**Passive income using bank accounts – £1000+ per year (UK)**



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This video demonstrates how you can use the money you’ve earned via Print On Demand (or just money you’ve saved) to generate passive income. At the very least, please educate yourself and ensure you aren’t losing money as a result of saving it – video explains why this might happen.

If you don’t know that POD is and just stumbled across this video as a conscientious saver, then please watch some of my others and all will be explained.

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LINKS AS PROMISED:

Topcashback:

**UPDATE 19/04/19**
There’s now a great site that figures out what accounts will be best for you based on how much you have to save. It tells you what banks to use, what direct debits to set up, and how much interest you’ll make – perfect! It’s called

Nationwide 5% on £2500

TSB 5% on £1500

Tesco 3% on £3000

HBoS 1.5% on £5000

Did I mention Topcashback?

Top SAVINGS accounts (kept up to date by MSE):

Best CURRENT accounts (kept up to date by MSE):

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How to meet the £1k transfer criteria:

If it wasn’t clear in the video, here’s a written version. You need to set up a standing order from 1 account to transfer to another, so account 1 transfers £1000 to account 2, then account 2 transfers £2000 to account 1. If you have more than 2 accounts, just repeat the process:

AC1 transfers to AC2
AC2 transfers to AC3
AC3 transfers to AC4
AC4 transfers back to AC1

Boom, done.

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This is a follow up from my video about profits and taxes which can be found here:

Join the rapidly growing Passive Owls Facebook community for help/advice from a group of awesome people:

My blog to document my passive income goals:

Thumbnail from Pixabay. CC0 Creative Commons. Free for commercial use. No attribution required but here it is anyway because I’m feeling generous.
if you consistent with P OD you'll probably soon get to a point where you have more money than you know what to do with that's the girl anyway and at the moment I earn about a thousand pounds a year just from interest on savings accounts or not savings accounts I will explain that in a moment but if you're from the UK this video is for you if you know I'm sorry you're gonna have to get your information from elsewhere so I'm on money saving expert at the moment and it just shows the top savings accounts are pretty terrible 1.5% easy access so you're gonna get one point five percent on whatever savings you put away but what most people don't realize in the UK is there you don't need a savings account to save your money you can actually put it in a current account which is what I do are multiple current accounts you don't just have to have one like you probably will have for your bills with direct debits and things like that you can have more than one so starting with the best interest rate is and these are all accounts that I use by the way so I feel comfortable recommending them the Nationwide Building Society do five percent interest on the first twelve months and I had two of these accounts that now passed that 12 months I don't get the interest anymore and have moved on but while it lasted it was great you can just open these accounts and it's 5% on up to 2500 I think it used to be back when I originally got these accounts used to be 5000 but they cut that and the banks this is something that you'll see with all the different banks you've got to pay in at least a thousand pounds per calendar month and this excludes transfers from any nationwide account held by you or anyone else that's easy to sell out you just transfer a thousand pounds from a different account it's really no problem and once you've got a few of these accounts set up you can set them up so they transfer into each other so that's that five percent open the account really simple it's a current account as long as you're paying in a thousand each month you will get five percent interest on two thousand five hundred which is two thousand five hundred times five percent one hundred and twenty five pounds over the course of the year and just to say as well I haven't said this at the start of the video but inflation means that your money is going to be worth last year on year so if you are putting away you're actually basically penalized for saving money because that money's gonna be worth less each year so you need to make sure that the interest that you're getting out where's the inflation which this crappy one here on money-saving expert one point five percent is less than inflation so if you had your savings in a savings account you are literally losing money every year TSB is the next one they also offer five percent on one thousand five hundred and I have four of those accounts you can have far and then you can open joint accounts on top of that I believe with TSB same again you just have to pay in a thousand pounds and you can set that off with some standing order Wizardry where one account pairs another so if you've got four accounts might es be one page TSB 2tsp two pairs TSP 3 tsp 3 pays far and then far transfers it back to one if you don't understand how that works and put explanation in the description it sounds complicated but it's really easy itself it takes about five minutes and then it will automatically do it I just sent mine to do it on the first of every month and it's done so we have got one thousand five hundred times five percent seventy five quid a year and obviously if you've got four accounts times four is three hundred pounds for the year its minimum of five hundred but I just set the payment to be a thousand anyway except what most of the other banks one and if they're all paying each other a thousand pounds then it's easier just to do it that the way rather than messing about and changing their figure so again quite easy to open that it says there takes ten minutes to apply you just do that four times or however much money you've got to fill up these savings accounts just to say about TSB this 5% is actually new it's for new customers my accounts currently get 3% because they open them a while ago but all new customers get 5% and that was an apology for some downtime or something that they had a while back or some sort of issue with their system where people couldn't log on and access their money so they're offering this as sort of an apology they didn't say how long this is gonna last and I assume that they will honor that going forward but there's no guarantees so it's best to sign up for this as soon as possible if you are going for one of these accounts so a next one is Tesco Bank and they offer three percent it's a bit complicated with Tesco actually at the moment because they've changed the terms I have two of these accounts they're both both percent on up to three thousand and they've changed it recently it used to be that you had to have direct debit sale and you could actually pay from one Tesco account to another Tesco account they changed the scheme in July 2018 so that you can't actually set up any direct debits to a Tesco account so not only have you got to pay in so much but you have to also have direct debits set up so it is a bit complicated three thousand times three percent ninety pounds you can have two well I've got two I think you might be able to have marbled you can have two at least two of those accounts 180 a year so just I put that as a last resort go with the other accounts first if you've got money but this is also another account to start your money and if you're already overflowing on the other ones and finally what used to be my favourite but is now pretty dire Bank of Scotland it was my favorite because I'm already a Halifax customers you know from probably my other video if you've watched it I have four of these accounts but the interest and the terms are just getting worse and worse and you can also open joint accounts as well for more on top of that the difficulty with this is well back in the day when I did it it was 5% interest then they cut it to 3 and now they've caught it to 1.5 so it's pretty crap and you also have to pay in at least a thousand staying credit and at least two direct debits that's literally just happened in July 2018 so all these banks are changing and requiring direct debits however it's quite easy to satisfy that criteria you can either just transfer some of your other direct debits across from your current account or you can just set up a Terra debit to pay a cherry or some money if you wanted to do that so we've got 5,000 times 1.5% 75-pound obviously if you have eight accounts at 600 pounds over the course of the year what I would also recommend is just checking on money-saving expert or similar size to compare what the best accounts are because they do change the rates quite a lot Bank of Scotland is quite consistent these days some of them have an end date like the nationwide one it only you can only do it for 12 months just check what the actual current rates are and I will put a link to the money-saving expert article in the description finally the last thing in relation to passive income you can't get much easier than top cashback I used to use a website similar to this called quid cur but I found that a lot of the things that were trying to find weren't available on quit cur and move to top cashback a couple years ago and I've never looked back so it's really good so the way it works is you register it's totally free and then when you're going to buy something you just check to see if the start is on there by just searching in this box here so say I was gonna switch you can see sky there I was going to do my internet switch to sky if I was going to do my gas which I've just done switched to British Gas so I was going to do this anyway took me five seconds to type in British Gas and I had a look and I get 68 pounds just for clicking through their link so the way it works is top cashback get payment as an affiliate for referring you to this company supposedly and then they give you a percentage of what that is so it's well worth doing it's as simple as literally clicking a link and I will put my link in the description if you want to sign up I think we both get some money if you do that and I would appreciate it if you find my videos helpful but just to show you my account and give you an example of the money that I've earned 900 pounds and this is over a couple of years but this is literally money for doing things that I would have done anywhere things like switching my internet provider which I would do every year things like switching my gas and electricity provider which I would usually do every year so to show you my earnings on this website will organize by the most cashback the best one I got was by switching to BT in 2016 I got 126 pound cash back I was gonna do it anyway switch into Sky in 2015 99 pounds TalkTalk 85 pounds in some of these cases this cashback actually pays for the entire service so my internet may have been fully paid for because I only got a cheap deal and don't pay for anything else buy these services I bought a drone 60 quid cash back my insurance company 50 quid energy company 50 queered utility fire etc it goes down and goes down but it just shows it's something that's really easy to register for if you're interested in passive income you might as well register for this cuz why wouldn't you want a free nine hundred pounds or whatever amount that you earn hope that was helpful that is my situation with my savings I would always recommend if possible investing the money back into your designs are improving yourself in some way but inevitably if you are successful in PRD then you are going to have some spare money and you're going to be thinking about what to do with that so just to recap as well about the payments I know it's a bit confusing if you've not actually done it before and you're not used to it so I've used the Bank of Scotland ones as an example so I've got for Bank of Scotland accounts Bank of Scotland accounts need one thousand pound paying in each month so I just set the number one account to pay number two a thousand pounds on the first day of the month and number two to pay a number three on the first day of the month three to pay far-far to pay one so the money literally moves from one two three four one and that's really easy to set up it takes about five minutes it's a standing order that you set up from one to another and that's how you meet the criteria in terms of direct debits you can pay genuine direct debits that you like bills and stuff like that or you can just make a donation to a charity or some other way it's a shame about the Tesco account as I said the Tesco account used to allow you to actually set up direct debits to it they've recently stopped that feature literally last month so you're no longer able to do that okay I hope you found that helpful and not too barring any questions put them in the comments I will be happy to help I realize it's a bit of a steep learning curve if you're not used to this but current accounts are the way forward at the moment coz the UK is so messed up saving accounts are not very good