Housing & Budgeting Solutions. 7 money secrets of the wealthy that could save all of us tens of thousands of dollars every year. Below are the topics we will cover in this blog. If you’d like to join me live on Thursday, Oct. 17, 2024, at 4 pm PT, email [email protected] with VIDEOCON in the subject line. Be sure to check out our Natalie Pace channel on Youtube for all of our free videoconferences and Substack for the podcast on this topic (after Oct. 17th) at https://youtube.com/nataliepace and https://nataliepace.substack.com/. Subscribe there so you don't miss a thing. Think Bigger Slash the Big-Ticket Bills Partner Up Be Careful of Buying High Simple Math Can Be Very Deceiving Rampant Fraud & Deception When You Search for a New Mortgage How Low Will Interest Rates Go? Here is more information on each point. Think Bigger There are many ways that we need to think bigger to exit the rat race. One way is to understand that we can be very frugal and still be struggling to make ends meet. Most of us are not shopaholics. If we’re under the age of 40, we might be spending 30 to 50% of our income on housing, and there are a lot of other expenses to try and fit in, including transportation, food, health care and insurance. If we move to a more affordable city, chances are wages will be lower while our commute costs could be much higher (particularly if it lengthens our driving time to the office). For many of us, buying instead of renting could be even more expensive, even if the simple math suggests otherwise. I’ll discuss that in the simple math topic below. Once we acknowledge that the sinkhole in our budget is not going to be fixed with curtailing café lattes, we can tackle the real challenges of living in the 21st Century. Life doesn’t add up. We must think creatively to make ends meet. We have to find ways to lower our personal costs of housing, transportation, medical insurance, taxes and other big-ticket bills that are weighing on our household finances. Slash the Big-Ticket Bills This was a game changer for me personally. I would definitely not have the career I have if I had not found a way to cut costs. Increasing income is what we always think we need to do. However, finding ways to keep more of our money, and invest, save and spend it on things we truly care about is the real game changer. I’ll discuss how to dramatically reduce housing costs in the point below. There is an entire section of Real Estate in the 6th edition of The ABCs of Money devoted to informing us on this topic. Most of us are spending $9000 or more a year on each car we own. Many families spend $10,000 or more a year on health insurance. Main Street gives up a great deal more of our income in taxes (percentage-wise) than most billionaires do, while many of the strategies they employ to lower their taxable income are available to all. (Peter Thiel reportedly has $4-5 billion in his Roth IRA – an amount that is exempt from capital gains and income taxes, unless the laws change.) There are creative solutions that could dramatically reduce all these expenses. You can read about them in the 6th edition of The ABCs of Money. You can learn and implement them by attending our Oct. 18-20, 2024 Financial Freedom Retreat. You can also receive private coaching and a money makeover from me privately. Email [email protected] or call 310-430-2397 to learn more. Partner Up Rich people plan 100 years in advance. They are thinking about their parents, and also their great grandchildren. What would happen if all of us were looking at money from a multigenerational perspective? Could we keep more money in the family, instead of making the landlord rich? A mortgage interest rate that’s under 4% is an asset. However, that valuable holding could be at risk if it is attached to a home that someone can no longer afford. Can we keep both with a multigenerational family plan, where everyone wins? If we add up all the lodging costs of everyone in our immediate family (three generations), the total could easily be in the hundreds of thousands every year – money that is flying out the window to make other people rich. (Four people paying $2,000/month equals $96,000/annually.) When we think bigger and partner up with family members, friends, or natural alliances, we can secure more space, a better neighborhood, and save up to half of our housing costs. Many two-bedroom apartments cost only a few hundred dollars more per month than a one-bedroom. Grandparents are ready to downsize at the time that their grandchildren need a bigger home and a better neighborhood for school. Adding an ADU* to the backyard could be an affordable and advantageous housing option, particularly as the aging process reduces mobility and other functions for elders. Some states offer grants for ADUs, while cities often fast-track permitting. *Accessory Dwelling Unit (granny flat) Single moms who team up together can save up to $19,000 per year (per family) and have substantial more personal time each week. That is according to research done by CoAbode.com. Check out my interview with the CoAbode.com founder and CEO Carmel Boss at YouTube.com/NataliePace. When we reduce our housing costs by a third or more, we can save up to buy our own home, or perhaps even save our family home, if our parents are in need of downsizing. Be Careful of Buying High When we get married or start a family, it’s quite natural to think of owning our own home. However, real estate prices are at an all-time high. Buying high in real estate, especially if we’re stretching our budget in order to do so, can be one of the most devastating financial choices we ever make. During and after the Great Recession, over 20 million people lost their homes. All those families experienced a period of 5-10 years (or longer) of grave financial hardship. For some, the stress cost them their health, while others couldn’t save their relationship from the fallout (in addition to losing their home). Real estate is an illiquid investment. Once you own it, it can be difficult to unload it. So, it’s important to have all the facts in front of us before we decide whether buying a home right now is the best option. We should cast our vision out at least ten years to determine whether this particular area and dwelling is going to be right for us as our family ages. Simple Math Can Be Very Deceiving Up to 82% of people surveyed over the last two years have buyer’s remorse, according to a Clever Real Estate survey in May of this year. Over 40% are struggling to pay their mortgage and have taken on debt since the home purchase. There is a lot of simple math going. People are being told that they could own a home for less than they are renting because rental costs are so high. However, that rudimentary equation, which is really a sales tactic, is often missing the remodeling costs, property taxes, closing fees and commissions, escalating insurance costs, climate change, and other terrifying surprises that can happen when the deed transfers to our name. There is a 10-point checklist in the Real Estate section of the 6th edition of The ABCs of Money that is essential to go through before buying or selling your home. If you’re thinking of selling, be sure that you are thinking of future generations. Don’t do the simple math and think, “If I sell it, I’ll make a boatload of money.” With inflation and high interest rates, money buys a lot less these days. With high home prices and interest rates we might be purchasing less home for a higher price. Additionally, banks were failing in 2023 (with another one down in 2024), bonds lost more than stocks in 2022 (-26%), and stocks fall hard and fast in recessions. There are a lot of ways that we can get separated from our pot of gold. If you’re ready to purchase, is it possible that the best purchasing plan could be right under your nose by teaming up with a family member who is in need of downsizing and could use the steady fixed income? Rampant Fraud & Deception When You Search for a New Mortgage On October 3, 2024, Bob Broeksmit, the Mortgage Bankers Association President and CEO, issued a warning. Online searches for mortgages have been triggering a barrage of unwanted emails, texts and phone solicitations, some of which have resulted in fraud. The scam artists often pretend to be from the bank that has approved the loan. I encourage you to read this important alert from the MBA, and to always be on alert of just how sophisticated these ruses have become. How Low Will Interest Rates Go? I recently had a coaching session with a client who is chomping at the bit to refinance, who wondered just how low rates can go. So, what are the FOMC members projecting? According to the Summary of Economic Projections that was released on September 18, 2024, the Fed Fund Rate is predicted to land at 4.4% in 2024, 3.4% in 2025, 2.9% in 2026 and 2027, and have a longer run rate of 2.9%. 2.9% is low, but considerably higher than the zero percent interest rates that investors enjoyed (for the most part) between 2009 and early 2022. Of course, projections can change. However, knowing the trend is expected to be down over the next two years gives would-be home buyers and refinancers a timeline to keep in mind. Incidentally, lower interest rates punish savers and fixed-income retirees. In a highly leveraged Debt World with falling yields, how will we earn income without putting our principal at risk? That is one of the reasons why we are hosting a Bonds & What’s Safe Masterclass on Oct. 26, 2024 to offer resources, strategies, tips and perspectives for keeping our money safe, while earning some income. Bottom Line Housing costs are unaffordable, and life is too expensive. We can drown in debt waiting for the politicians to fix things. (Debt is at an all-time high for consumers, corporations and the country.) This situation has been building up for over a decade – even before the pandemic. The perfect time to purchase a home would have been in 2011, when real estate prices were at rock bottom. However, when twenty million people are struggling to figure out how to sell their home, no one is in a position to buy. Most of us don’t buy low because we can’t. We don’t have any money and might be having a fire sale ourselves to try and stay afloat. That is why it is very important for us to develop and employ a big-picture, long-range plan with regard to our retirement accounts, checking, savings, investments, trading, housing, and strategic bill paying. When we stop making the tax man, the landlord, the gasoline station, the insurance salesman, the utility company, and other billionaire corporations rich at our own expense, we can live a much richer life. The solutions require outside-the-box thinking and are not found in the mainstream media. Our team has been saving homes and nest eggs, while transforming lives on Main Street, since 1999, with time-proven 21st Century strategies. Email [email protected] if you would like access to a free video coaching series on debt reduction and budgeting. We also have 21 days of prosperity and abundance video coaching to promote a healthier, wealthier, more beautiful you. Join us at our online Oct. 18-20, 2024 Financial Freedom Retreat and our Bond/What's Safe Master Class Oct. 26, 2024. Learn how to: * Invest in hot industries, such as Nvidia and artificial intelligence, * Hedge against a weaker dollar, * Invest and compound your gains, * Green your retirement plan, * Easy and efficacious nest egg strategies, * Get hot and diversified (including in artificial intelligence and EVs), * Evaluate stocks, * Keep an age-appropriate amount safe, and, * Know what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. Register with friends and family to receive the best price. "Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information. Join us for our Online Oct. 18-20, 2024 Financial Freedom Retreat. Email [email protected] or call 310-430-2397 to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. Join us for our Restormel Royal Immersive Adventure Retreat. March 7-14, 2025. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. There is very limited availability. Register now to ensure that you get the exact room you want. (There may not be an opportunity to register after Sept. 15, 2024.) This retreat includes an all-access pass to all of our online training for a full year for two, and three 50-minute private, prosperity coaching sessions. Much more affordable than you might think. Email [email protected] to learn more. Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is are the most recent releases of these books. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack podcast on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Will Boeing Be Booted Out of the Dow Jones Industrial Average? Arkansas Sues Temu for Data Theft. We Must Be the Boss of Our Money. Why? Oil Prices Tumble. Why? Sweepstakes for the Release of The ABCs of Money. 6th Edition. Should You Go Conservative or Aggressive? 5% Yield without those Pesky Paper Losses. The Dow Drops 1400 Points. Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps. Can Crowdstrike Recover from its Colossal Catastrophe? Featuring a Cybersecurity Overview. Fintechs and Brokerages that Fail are Not FDIC-Insured. Stocks Keep Hitting New Highs. Are You Thinking "Capture Gains?" Nvidia Volatility. Salesforce Drops. Election Years With Negative Yield Curves = ?. 5 Green Tips for Clean Beaches Week. Nio Sales Expected to More Than Double in 2Q 2024. So, You Think You Want to Be a B&B Owner... Artificial Intelligence and Crypto Scam Alert by the SEC. Netflix Evicts Unpaid Viewers. Empty Theaters. Retiring Soon? Start Planning Now. 2024 Rebalancing IQ Test. Answers to the 2024 Rebalancing IQ Test. May is National Bike Month. Paris and Amsterdam are the Stars. AI, Gold & Copper are on Fire. Sunpower Doubled. Sell in May and Go Away? What About the Election? Vacations that Color Our World Forever. The Magnificent 7 Drop to the Fantastic 5 9 Inflation, Budgeting, Debt Reduction and Investing Solutions. China & Russia Double Their Gold Holdings. 2024 Investment of the Year? The Reddit IPO. Meme Stock or Snap Land? Tesla's Factory in Germany Taken Offline by Activists. Bitcoin Sets a New Record High. The Importance of Rebalancing. Beyond Meat's Shares Surge. Quaker Oats' Pesticide Problem. Stocks are Flying High. Why Aren't Mine? Cut Your Tax Bill in Half. 9 Tips. Celebrity Jet CO2. Green Washing. The Facts. Some Solutions. Copper: Essential to the Clean Energy Transition. Uh. Oh. More Bank Trouble. Are Amazon, Square and Other Tech Companies Ripping Us Off? Housing. Unaffordable. What Works? Case studies and creative solutions. Don't Reach for Yield. Closed-End Funds. 2024 Investor IQ Test. Answers to the 2024 Investor IQ Test. Apple's Woes Drag Down the Dow. The Winners & Losers of 2023. Ozempic, Magnificent 7 & Beyond. 2024 Crystal Ball. The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals. A Spectacular Year for 3 of the Magnificent 7. The Best ROI* (Almost 40%!) & 7 Life Hacks That Save Thousands. Portugal Eliminates Tax Advantages for Ex-Pats. Earn $50,000 or More in Interest. Safely. Finally. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) Lithium. Essential to EV Life. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Why We Are Underweighting Banks and the Financial Industry. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
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AuthorNatalie Pace is the co-creator of the Earth Gratitude Project and the author of The Power of 8 Billion: It's Up to Us, The ABCs of Money, The ABCs of Money for College, The Gratitude Game and Put Your Money Where Your Heart Is. She is a repeat guest & speaker on national news shows and stages. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999. Archives
October 2024
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