Friday, December 9, 2022
How London became the dirty money capital of the world
There's no question that London is the dirty money capital of the world. The UK didn't just turn a blind eye to Russian money. We welcomed it. For many decades now London has been rolling out the red carpet to corrupt and criminal individuals from around the world. Britain is a very open financial hub. It's really important that you have really clear well enforced rules. And that's something Britain simply doesn't have. There are key aspects of our legal and financial system that makes the city of London a great place to bring dirty money and launder wealth. The Russians have accounted for about a billion pounds worth of residential property in London. We have now woken up. Dirty money is being seen for what it is, which is a poison to democracy. It's taken the real slipping of Putin's mask, an act of aggression so appalling. The UK appears to have completely lost its moral compass. This is really a tale of two empires, British Empire and the Soviet Empire. And the British Empire as it unravelled retained lots of outposts, British Virgin Islands, Channel Islands. They needed a new purpose. And the purpose they found was as providers of financial secrecy, and shell companies, corporate camouflage, ways for people to move through the globalising economy without leaving their fingerprints on anything. The engine of the multi-trillion dollar offshore industry rife with dirty money. This is how corruption went global. While the British Empire was doing that, the Soviet Empire was collapsing too. The greatest act of corruption the world has probably ever seen, the scramble in a few years in the '90s to grab the wealth of the entire Soviet Empire, create this oligarchy that went then surging out into the world. And where this all meets is London, the place where dirty money comes to party. The origins came with the big bang under Margaret Thatcher when she started liberalising the financial services sector. You book me a client, I will sell you half a million at six, seven, three. And then that carried on under the labour government with a commission on deregulation. David Cameron I think got it. Thank you very much. After he left office, 10 Ideas To Conquer Stocks people simply refused to take on the challenge to eradicate dirty money from London. Over the past two decades, the UK has really welcomed in Russian money of all kinds, law firms, real estate agents, the government. There are statements on the record from Boris Johnson, our prime minister, from when he was the mayor of London, saying that he wanted to make London a hub for Russian money. The Stock Exchange welcomed lots of Russian companies, wanted them to make the UK and London their European base. One of the reasons why Britain has got into this hole is that Britain's ruling elites believe that you should get out of the way of businesses at all costs. So if you're a senior civil servant what you need to demonstrate to ministers is that you won't cause trouble for business. We see it all the time in things like failures of financial regulation before the financial crisis, the failures of building regulation that have been exposed by the Grenfell Tower fire, the golden visa schemes which are introduced in 2008. The golden visas were introduced by the Labour government to attract wealth and capital into London. If you had enough money, you could buy citizenship. In theory, there were checks on this. But in practise, they didn't work. But of course it was abused by oligarchs and kleptocrats who wanted to bring their dirty money into London and use the scheme to establish legitimacy and credibility in what was seen as a trusted jurisdiction. It's quite a remarkable idea that citizenship is for sale at all. It is a scandal that I've been pursuing for many years. And I'm delighted the government has finally abolished the scheme. Peaked in about 2012 when I think around 1,200 golden visas were issued that year. Sixty per cent were actually for either Russians or Chinese. If you've seized power in Kazakhstan, Moscow, or Venezuela, wherever it may be, you are enriching yourself off of the fat of the land. You stick it in London. And what comes with it in London. But this full suite of services for putting a legitimate face on yourself. Let's say you wanted to bring dirty money into the City of London and integrate it into the system, there are basically four key stages, placement, layering, integration, and defence. So let's start with bringing your money from say a Latvian bank account, a Cayman bank account, you want to then move that into a UK shell company. It's possible to spend gigantic amounts of money in the UK economy with a mascot. You're supposed to tell the Companies House registry who the real owners, the beneficial owners, of the companies are. But in practise, it's really easy to evade those rules. And fundamentally, no one goes after companies that just lie. It's essentially a Wild West of information, which is unverified, and in some cases ludicrous. You can put forward any name, hide your identity. There are Adolf Hitler's, and Donald Ducks, and Mickey Mouses. It is so easy to register a company on Companies House, costs £12, you can do it in minutes. And crucially, no one checks the information. Usually, the applications are approved within 24 hours. They don't actually have the statutory power to check the information, to investigate false information, or remove it from the register. Now there are some addresses within the UK that have thousands of companies registered to them. And if you go and knock on the door you won't find staff. They have literally been set up as a shell to hide the true ownership of who really controls and benefits from the money flowing through that company. This is a crucial area that the government says it wants to tighten up. But this is one of those reforms that's been talked about for years and nothing has been done. The next stage you want to layer to move this money around in a series of complicated financial What is the stock market transactions that will distance you from the money and from your source of wealth. That's where the UK banks come in. Some 86 banks have been involved in obtaining, moving corrupt wealth around the world. The cash by the time it has got to London has probably already gone through a couple of British overseas territories like the British Virgin Islands. Step three is you want to integrate your wealth into the UK system. You want to buy assets, including UK property. Lawyers, real estate agents are on hand to help you do that. Once you've got the cash into London you can then basically use it like it's clean. People aren't bringing this money onshore to put it into drug gangs. They're putting it on the shore to buy houses in Kensington. The buying really started with Mr Abramovich. I was showing him various properties, which he eventually bought one in Kensington in excess of £90mn. Their fortunes were enormous. They were a target for estate agents in London. Have you got a Russian type conversation was going around the agents. Typical Russian buyer would be looking for a substantial home, larger than most. Grade one, grade two listed. Location would be Belgravia, Mayfair, Knightsbridge. There wasn't that much stock. But when anything did come available, your thoughts were immediately find one of these oligarchs who wanted to buy one. You can own UK property through a shell company, even an offshore shell company. And if you do own it through an offshore shell company, you don't have to say who really owns that property. And lawyers are on hand to advise on these complicated transactions, which creates an opaque ownership structure of some of our most valuable UK homes. Roughly 84,000 homes here in the UK are owned anonymously. We have identified £6.7bn of UK property that has been bought with suspicious wealth. £1.5bn of that, that's around 150 land titles, have been purchased by Russian individuals who are either accused of corruption or have close links to the Kremlin. We found £830mn worth of UK property owned by Russian individuals through shell companies based in our crown dependencies and overseas territories. And there's been about 10 to 20 important houses sold to oligarchs. They normally had a third party. It could have been a lawyer, it could have been an intermediary. You didn't really have much dialogue with the principal. And a fleet of cars would arrive in all blacked out windows. We subsequently realised there were some very unpleasant situations occurring with people being murdered and falling out of windows. And the recent events in Ukraine have demonstrated that our once earlier thoughts, suspicions are as bad as they could ever possibly be. If those buyers that invested money here was to launder it, then you wish you hadn't had anything to do with it. Finally, you want to defend your wealth and your reputation. And the City of London is the perfect place to come if you want to do that. Our libel laws, which are very claimant friendly, make the high court a perfect place to bring your blockbuster libel claims. And the City of London is home to some of the top law firms in the world who can help you bring them. When questions are asked about oligarchs by investigative journalists, including those at the Financial Times, the lawyers try to shut them up. I've had a bit of experience of doing battle in the High Court with powerful figures from the former Soviet Union. There's an entire industry based in London, the big heavy duty reputation management law firms. They harangue the press and broadcasters. Newspapers are vastly outgunned. There's often vexatious cases that are brought solely to just run up bills, to delay things, to cause problems, to make editors think, oh God. Do we need to do this? So even when we try to expose the wrongdoing, the kleptocrats use their resources to close down the conversation. And the lawyers make a lot of money but support the oligarchs. We were involved with one case. We were owed money and we wanted to settle it. But they said, no. We're not going to pay you. So we had to go to a court. A very large individual came to our door one day and made it clear to us we should drop the case. The man had quite a number of gold teeth and he was built like a gorilla. It was threatening. One of the attractions of being in London is the network of lawyers, accountants, oligarchs, kleptocrats, do deals. English law provides a stamp of legitimacy. We've identified 81 law firms, 86 UK banks, and surprisingly 177 UK education institutions that have accepted or moved dirty money from around the world. Russians own our newspapers, their children are in the elite public schools. Their properties are in Mayfair. We have sold one or two properties where people are now on the sanction list. It does make you think, am I doing the right thing? Look at the House of Lords and the number of fortunes made in the Soviet Union either by nationals from the former Soviet Union or peers who rent out their legitimacy to highly questionable oligarchs to sit on the boards of their companies. Look at the political donors who buy access to our most senior elected officials from the prime minister down. I'm often asked to address political representatives from the Commonwealth on how to ensure proper accountability. I now do it with shame. And I feel phony not just because of the way we've allowed dirty money to come into the country, but because of the way that dirty money has infected the public domain and then infected our politics. Go back to the way we responded to the Covid pandemic. We talked about a chumocracy, matey contracts. Look at, say, Lord Lebedev. Does it matter that he's the son of a former KGB officer? Does it matter that his fortune was earned in a place run on kleptocratic rules? Does it matter that Tory donors have roots in the Russian kleptocracy? People will of course insist that they are just legitimate business people. But the source of their wealth is an ultra-corrupt system. They are connected at every level. We have City grandees, lords, former ministers sitting on their boards. The integration of Russian business with London's political and business elite is complete. You can buy a bit of a university and name a wing of an art gallery after you. And suddenly, you're either an entrepreneur or a statesman as opposed to being a thief or a despot. Britain as a very open financial hub would always be vulnerable to dirty money coming into the country. And it's really important in that situation that you have really clear, well enforced rules. And that's something Britain simply doesn't have. There have been huge questions asked for years about the UK's record on enforcement. Often, UK law enforcement agencies are simply outgunned by the big lawyers that worked for corrupt and criminal individuals. The Serious Fraud Office for example, has a budget of £50mn a year. Any self-respecting oligarch makes that amount of money in less than a week. I really hope that the UK government will make sure the National Crime Agency, the Serious Fraud Office, and others have teeth that can bite. We had to have a war to bring this all to a head. And it's a shame that so many people have died as a consequence of it. The crisis in Ukraine has marked a real turning point. We are waking up now because a kleptocrat has sent troops into a neighbouring democracy to the fact that this dirty money is a weapon. The kleptocrats are at war with democracy. There are a series of legislative changes that have been talked about for a really long time. And the government has delayed and failed to implement those things over a really long period. And that's how we've got to where we are now. David Cameron promised me in 2015, 2016 that he would bring in a bill, enable us to have a public register of the beneficial ownership of properties that had been acquired through foreign entities. The Economic Crime Bill that the government has recently passed is landmark legislation that brings forward the long promised and delayed property register. Overseas companies that purchase a UK property have to tell the Land Registry who really owns and controls those companies. One hopes that that is the beginning of the end of people hiding behind offshore vehicles. Everybody will have to account for being the beneficial owner of anything, whether it's an aeroplane, a yacht, or a home. The Economic Crime Bill makes sanctions easier to impose, unexplained wealth orders easier to pursue. Unexplained wealth orders were a new investigative tool given to law enforcement agencies in 2018. It's a type of court order that compels someone with assets of over £50,000 to explain how they could afford them if it doesn't seem to make sense. There have only been four cases where they've been successfully used. And the amount seized is tiny. Part of the problem is the costs of being unsuccessful in bringing them. The new Economic Crime Bill basically caps the amount of liability that police forces can have if they're ordered to pay costs. We are going to get an Economic Crime Bill 2.0 in a few months' time. I really hope that the next Economic Crime Bill really gets a handle on some of the loopholes that still remain. Kleptocracy spreads like a virus. And it starts to change how people treat power. With all this dirty money that's arrived in the UK, with all these fortunes made in kleptocracies, you've got to start to wonder, is our political system becoming more corrupt as a result? To bring an end to Londongrad, London could become much less open. We can take serious steps to limit the capacity of some types of people to come here. The political consensus is around if you like the second option, which is keeping London that is this very open rules-based place, but by trying to introduce new rules into the system to make it harder for people who are really bad actors to disguise their money. The government's approach to sanction has been far too little far too late. It's a knee-jerk response to a horrendous act of kleptocratic aggression by one of history's great kleptocrats. We have shown an amazing tolerance up to this point to people we consider to be so plugged into Putin's regime that if we confiscate some of their wealth, that will make this man change course. I first raised the issue of Abramovich over a year ago when the leader of the opposition in Russian, Navalny, was imprisoned by Vladimir Putin. Navalny said there that if the West really wanted to support democracy, we ought to take action by sanctioning Putin's cronies around him. At the time, the government took no action. It's important to remember that this is a much bigger problem. It may be called Londongrad, but actually this is not just about Russia. Our response seems to be we want to try to pressure one kleptocrat. We need to dismantle our complicity in kleptocracy wherever it comes from. Clamp down massively on secrecy in the economy and provision of secrecy by large parts of the former British Empire. The UK is in a uniquely strong position to crack down on kleptocrats because of our position as the so-called capital of money laundering. Fawning service to this dirty money over all these years has now ironically put us in the position to land the biggest blow. There aren't going to be clear costs to the measures that the UK has taken, exodus of businesses from Russia. We have also seen from the professional services and law firms that are based in the UK announcements that they are going to refuse to do any more work for Russian clients. There will be a financial cost to that. Dirty money has benefited certain sectors in the UK. There are professionals who have benefited in monetary terms from the dirty money flowing Annuities Meaning to the UK from the services we offer. But there are many people in the UK who have not have been economically enriched. What sort of society do we want? I will believe it's the end of Londongrad when I see it. There is a huge gulf between talking tough on things like sanctions, dirty money, and economic crime, and doing something about it. The UK is guilty of laundering the world's dirty money. We help facilitate global corruption. We in the West decided that we would march into Russia, bankers, consultants, entrepreneurs, lawyers, and remake this collapsing communist empire in our own image. But we weren't remaking the former Soviet Union in our image. The new kleptocratic order was remaking us in their image. This dirty money is poisoning our democratic institutions, suborning politicians to serve the interests of this international tiny oligarchy. It's undermining the free press. These are the only things that separate us from these authoritarian regimes. These institutions and this dirty money is corroding them.
##Save Money 1
8 Easy Ways to Save Money
Sometimes the hardest thing about saving money is getting started. This guide to saving money can help you step-by-step to develop a simple and realistic strategy so that you can save for all of your short-term and long-term savings goals.
Record your expenses
The first step in starting to save money is determining how much you spend. Keep track of all your expenses; That means every cup of coffee, household item, and cash tip. nce you have the information, organize the numbers by categories, such as gasoline, grocery shopping, and mortgage, and get the total for each. Use your bank and credit card statements to make sure everything is correct and that you didn't forget anything.Tip: Get a free spending monitor to help you get started. Choosing a digital program or app can help automate part of this task. Bank of America customers can use the Spending and Budgeting tool, which automatically categorizes their transactions to make budgeting easier, on the mobile app or online.
Budget for savings
Once you have an idea of how much you spend in a month, you can start to organize the expenses you recorded and establish a budget that you can live with . Your budget should give you an idea of how your expenses compare to your income so that you can plan for your expenses and limit overspending. Be sure to take into account expenses that occur regularly, but not every month, such as car maintenance.
Tip: Include a savings category, and try to save 10 to 15 percent of your income.
Find ways to cut your expenses
If your expenses are so high that you can't save as you'd like, it may be time to cut back. Identify nonessential categories that you can spend less on, like entertainment and eating out. Find ways to save on your monthly fixed expenses like television and cell phone expenses, too.
Here are some ideas to cut down on everyday expenses:
Use resources such as community event listings to find free or low-cost events to reduce entertainment expenses.
Cancel unused subscriptions and memberships, especially ones that renew automatically.
Aim to eat out only once a month and go to places that are in the category of "cheap meals".
Give yourself some "time to reflect" - When you're tempted to make a nonessential purchase, wait a few days. Will you be glad you didn't, or be ready to save up to do it.
Set savings goals
One of the best ways to save money is to set a goal. Start by thinking about what you might want to save for, maybe you're getting married, planning a vacation, or saving for retirement. Then decide how much money you will need and how long it can take to save it.
Here are some examples of short-term and long-term goals:
Short term (1 to 3 years)
- Emergency fund (3-9 months to pay for daily living expenses, just in case)
- Holidays
- Down payment for a car
Long term (4+ years)
- Down payment to buy a home or remodeling project
- Your children's education
- Retirement
If you are saving for retirement or your children's education, consider putting that money in an investment account, such as an Individual Retirement Account (IRA) or a 529 plan. Although investments come with risks and can lose money, too They present the opportunity to grow when the market grows, and could be convenient if you plan for an event well in advance. See step no. 6 for details.
Tip: Set a small, achievable, short-term goal for something fun, and big enough that you won't have the cash to pay for, like a new smartphone or holiday gifts. Reaching smaller goals, and enjoying the nice reward you've saved for, can give you a psychological boost that makes the rewarding feeling of saving more immediate and strengthens the habit.
Decide what your priorities are
After your expenses and income, your goals are likely to have the biggest impact on how you distribute your savings. Make sure you have long-term goals in mind; It is important that planning for retirement does not take a back seat after short-term needs.
Tip: Learn how to prioritize your savings goals so you have a clear idea of where to start saving. For example, if you know that you will need to replace your car in the near future, this would be a goal that you can start saving for now.
Choose the right tools
If you're saving for short-term goals, consider using these FDIC-insured deposit accounts:
- Savings account
- Certificate of Deposit (CD) , which freezes your money for a fixed period of time at a rate that is generally higher than savings accounts.
For long-term goals consider:
FDIC-insured Individual Retirement Accounts (IRAs), which are tax-efficient savings accounts
Securities, such as stocks or mutual funds. These investment products are available through investment accounts with a broker dealer. Remember that securities are not FDIC insured, are not deposits or other obligations of a bank, and are not guaranteed by a bank. They are subject to investment risks, including the possible loss of your capital.
Tip: You don't have to choose just one account. Take a careful look at all of your options and consider things like minimum balances, fees, and interest rates, so you can choose the products that will best help you save for your goals.
Make automatic savings
Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money, and even split your direct deposit so that a portion of each paycheck goes directly to your savings account.
Tip: Splitting your direct deposit and setting up automated transfers are easy ways to save money, since you don't have to think about it and generally reduce the temptation to spend the money instead of saving it. With Mobile Banking and Online Banking, Bank of America customers can easily establish automatic transfers between accounts.
Watch your savings grow
Review your budget and see your progress each month. Not only will this help you stick to your personal savings plan, it will also help you quickly identify and correct any problems. Knowing how to save money can even motivate you to find more ways to save and reach your goals faster.
8 Tips to Save Energy in the Summer
When we think of saving energy, we mainly think of winter. But you can also save energy in the summer. These summer tips will help you with that.
Keep the house cool
It is best to keep the sun out of your home as much as possible. It may seem uninviting, but by leaving the sun protection (shades or curtains) down during the day, your house will heat up much less. Close your windows and doors during the day and only open them when it is cooler outside than inside.
Use nature or a fan, but no air conditioning
It is often cooler in the evening, at night and early in the morning, so feel free to open a number of windows or doors against each other.
Do you still need extra cooling at home? Then opt for a fan instead of air conditioning. The use of an air conditioner is considerably more expensive than a fan and that easily saves a few tens per year.
Dry your laundry outside
You may use a clothes dryer in the winter. But in the summer you can also use the natural drying sources: the wind and the sun. A rotary dryer in the garden or a clothes rack on the balcony is a free clothes dryer.
Spray the garden with rainwater
Every year we water our garden with hundreds of liters of drinking water. Of course, your garden needs water in the summer. How do you prevent a dried out garden, but do you water as budget-friendly as possible? Use a rain barrel to collect rainwater!
A rain barrel can save hundreds of liters of water every year. In the Netherlands, 1 out of 6 garden owners already collects garden water from the rain barrel (source: Milieu Centraal ). Is there a swimming pool in the garden for your (grand)children? Then you can also reuse that water to water the lawn.
Get rid of the (possible) extra fridge
Some families have an old refrigerator in the shed for ice cream, beer or frozen products. However, that second refrigerator is often an old creature and consumes a lot of energy unnecessarily. On average, a second refrigerator consumes tens of euros of electricity per year, but if the refrigerator is older and less efficient, that amount quickly increases.
Use solar garden lighting
Cozy in the garden in the evening, but not sitting in the dark? Use solar powered garden lighting. The lamps can soak up the sun all day, so you can sit in a lit garden in the evening. This also saves you having to extend power cables to the garden.
Turn your heating off or on summer mode
With the thermostat set to summer mode, you prevent the heating from starting at times when it is slightly cooler in the house, for example if you open the windows and doors in the morning or in the evening. A shame if the thermostat sees that as a signal to start heating – especially in the summer!
Turn off devices
Devices that are continuously on give off heat in the house. For example, think of laptops, lamps and (game) computers. Cooking also makes the house warmer, so opt for a fresh salad instead of a hot meal in hot weather.
15 Things You Should Never Buy at Gas Stations
Many of us spend thousands of dollars every year at gas stations… and not just on gas! Get better value for your money the next time you stop to refuel by avoiding buying these items.
Magazines
While you're lining up to pay, a magazine's headlines and cover page grab your attention… Don't give in to buying this copy of the latest gossip magazine. Gas stations and grocery stores place these kinds of items (magazines, treats and gadgets) in strategic places near the cash register, to grab your attention. And when it does, they cash in on your impulse buys.
Sandwiches and wraps
A 2016 survey by HuffPost reveals these findings from a food safety inspector: Many gas stations were not storing food properly. Normally, perishable products like sandwiches and wraps should be kept at a temperature of 4 ° C or less. Beyond this temperature, they become places conducive to the proliferation of bacteria and viruses that can make you sick. So, before you indulge in this turkey wrap, make sure the refrigerator thermometer isn't reading over 4 ° C. HuffPost also recommends choosing products near the cooling element and avoiding foods at the top of the stack.
Soft drinks
Each year, the 7-Eleven convenience store in the United States sells 45 million gallons of fountain soft drinks. According to this chain, that's enough liquid to fill 68 Olympic swimming pools. However, it's best to think twice before filling your glass: Due to the moisture that builds up inside the machine, soft drink dispensers are an ideal environment for mold growth. Ban Coke and 7-up , and opt for water in your bottle instead. When you think about the costs of these drinks and their negative health effects, your wallet and waistline will thank you!
Hot dogs
If the sodium and fat content of hot dogs doesn't stop you, think about how they were stored. Hot foods should be stored at 135-140 ° F to prevent bacteria growth. The storage of hot food at gas stations is rarely within standards - always according to HuffPost. We suggest that you avoid hot dogs at the bottom of the heating rack, especially if they have a "glassy" appearance. There is a good chance that these sausages have been stagnant on their shelf, at low temperature, for too long.
Bag of chips
A small (28g) packet of Lay's Potato Chips contains 146 calories, which at first seems harmless… until you find out that more than half of those calories are from fat. And that's without counting its sodium content. Additionally, you should always check the product's expiration date before purchasing it - especially at a gas station. The HuffPost investigation found that expired food was one of the most common food safety violations at gas stations.
Memories
From key chains to decorative napkins: anything with the name of a city or province is not worth the money you spend to buy it. Not only will you pay a premium price for a cheap item, but souvenirs bought at gas stations are designed to entice you to spend more while you stop. Take photos of your trip, they will be much better memories (and much more economical!).
Coffee drink
Stay away from mokas and slats as well. Between the milk, syrup, and all the other added ingredients, the calories in this drink can add up quickly. An average mocha with 2% fat milk and chocolate sauce, for example, could have up to 660 calories and 8g of fat. Worse, swallowing a Starbucks Vanilla Bottled Frappuccino is like eating 32 Nilla Cookies.
Energy drinks
Sometimes when you need a little “boost” on the road, a large energy drink might seem like a good choice. The contents of this kind of drink can give you a boost, but research shows that it can also lead to heart problems, anxiety and insomnia. With about 62 grams of added sugar per 16-ounce packet (that's the equivalent of six Krispy Kreme donuts!), You'll be consuming far more than your recommended daily intake of sugar.
Cupcakes
Beware: Cream-filled cupcakes can contain around 35g of sugar and 16g of fat - and almost 50% of the recommended daily intake of saturated fat. On the other hand, chocolate chip cream pies can contain 33 g of sugar.
If you're in the mood for something sweet, opt for trail mix or dried fruit instead.
Beer and wine
Unless your favorite beer is on special at the gas station, you'll find the same brands in the grocery store, for much less. For wine, avoid these kinds of places at all costs: it's not a question of price, but a question of taste!
Nachos
It's no secret that nachos are NOT a healthy option. But it turns out that they can also be fatal. In 2017, one person died and several others were hospitalized after eating contaminated nacho sauce at a gas station in California.While these kinds of cases are rare, gas stations try to do multiple things at once, which can cause them to slow down food security, HuffPost says. The safest choice is to snack on a granola bar or some nuts until you can stop by a restaurant for a balanced meal.
Slush
The Slushs and "Slurpees" may have been the highlight of your childhood road trips, but know they can have a huge impact on your waistline. A 44-ounce Dr. Pepper Slurpee contains approximately 825 calories, most of which come from sugar. And as with soft drink dispensers, Slurpee machines harbor mold and pathogenic bacteria. Forget the nostalgia and go for healthier alternatives.
Donuts
Like many things at a gas station, donuts are far from low in calories. In fact, you would need to ride a bike for over 30 minutes to burn a pack of four mini donuts. Say no to glazed donuts too. Even if they are delivered fresh to the gas station every morning, they will likely be stale after just a few hours. Instead, opt for a banana or an apple to satisfy your sugar craving.
Breakfast sandwich
Although breakfast is an important meal - one that should never be skipped - it should not be swallowed up. An English muffin with sausage at your local gas station is about 500 calories and 1030 mg of sodium.
Beef sticks
Make a “protein” stop on the road? Avoid prepackaged beef sticks. A single stick can contain over 550 mg of sodium - almost a quarter of what you should eat in a single day. In addition, this type of product contains a lot of preservatives.
see also finance and business knowledge
17 Easy Budget Tips to Save Money
Are you often short on cash and do you not know how you can save more money? Then read the 17 easy budget tips below and make sure you don't have to worry about saving even more money.
1. Get a bottle of cleaning vinegar at home. Vinegar is good against limescale, foul odors and it also seems to help against athlete's foot.
2. Swap one or more scents with your friends. If you've been using one scent for some time, you'll want to use another scent. By exchanging a scent, you don't have to spend money on expensive scents and you smell nice and different. Nice swap deal, right?
3. Get your fruits and vegetables on the market. Market prices are significantly lower than supermarket prices.
4. Compare items you want to buy online. If you have seen an (expensive) product in the store, first look on the internet to see if you can buy it cheaper.
5. Set savings goals. In this way you provide some extra reserves and you can spend this money on unforeseen expenses or a nice holiday of course. Earlier we wrote how to set savings goals.
6. Cancel newspaper and magazine subscriptions. It is much cheaper (and even free) to check the news online.
7. Make sure you know what your fixed costs are. This way you have a good and clear overview of your finances. Via my free fixed costs Excel file you will find out in one go what your fixed costs are, all in a handy overview.
8. Take a snack with you when you go into the city , so that you can not be tempted by all kinds of tasty snacks.
9. Have a fleece blanket or blanket in the house. Take this in the evening when it gets a bit cooler and leave the heating off as long as possible.
10. Pick up mainly the house brands in a supermarket, both at the AH and at other supermarkets there are plenty of cheaper and tasty products to be found than those expensive A-brands.
11. Know your income and expenses. Enter your fixed expenses and income in our free Excel sheet and see how much money you can save or lack.
12. Do your shopping less often during the week and limit getting your groceries to 1 or 2 times a week. This ensures that you have fewer snacks and other tasty snacks at home. Another good budget tip: make a weekly menu to save a lot of money on groceries.
13. Buy your winter clothes a little later in the year. The later you buy your winter clothes, the greater the chance that that nice coat is on sale. This also applies to buying your summer clothes, the closer to summer you buy your summer clothes the cheaper it gets. Clothing is also cheaper to get by looking at discount codes.
14. Halve the meat and double the vegetables with the meal.
15. Drive 80 kilometers in fifth gear. By driving less fast on the highway, you save about 10 to 15% in fuel costs if you drive according to the new way of driving.
16. Do you still buy expensive detergent bottles? Then easily make your own detergent yourself and save many tens of euros per person per year.
17. Use a shower coach. This ensures that you, your partner and your children are not in the shower for too long. Earlier we wrote an article about how to make your children shower shorter.
17 Tips to Help You Save Money Fast
These 17 tips for saving money fast could just help you reach your savings goals in record time.
While it might seem odd to save money during a pandemic, having a goal set during a time of uncertainty can be a source of stability - to an extent. It can also allow you to project yourself into a brighter future, which should improve your overall well-being! So if you are wondering how to save money fast, check out these 17 tips to increase your savings fast.
How to save money fast
Before you can start saving money each month, you need to have a clear overview of your cash flow. This means that you need to factor in all of your incoming and outgoing money flows, including your possible debt repayments, your monthly bills, and how much you save each month. Let's break this process down into several steps.
1. Learn to manage your budget and understand your finances
The most important thing in saving money fast is learning to manage your budget. If you control your budget, you control your finances. Becoming financially independent is critical if you want to achieve your short and long term savings goals. Here's how to create a budget so you can start saving quickly:
- Track your finances over a 30 day period. This includes all of your income and expenses.
- Compare your monthly income to your expenses to estimate how much you are currently saving, or how much you are overspending each month.
- Classify your expenses into fixed and variable costs. Your fixed costs include expenses that are usually difficult to adjust, such as rent or utilities. Your variable costs include expenses such as shopping, entertainment, and memberships.
- Identify all the variable costs you can save on in order to increase the amount to be saved each month.
- Evaluate your progress regularly and make adjustments if necessary. If you're feeling a little overwhelmed, there are plenty of business apps available to help you keep tabs on your budget.
2. Pay off your debts (if you have any)
Before you start saving, you'll need to pay off your debts. Because interest accumulates over time, the longer you wait to pay off a debt, the more it will grow. Pay off your debts as a priority before focusing on your other savings goals.
To do this, consider adopting the 50/30/20 rule . Created by US Senator Elizabeth Warren while she was a Harvard bankruptcy specialist, the 50/30/20 rule is a simple way to manage your budget and therefore pay off debt. It works as follows:
- Use 50% of your income for your needs i.e. fixed costs such as rent and utilities.
- Use 30% of your income for your cravings, that is, variable costs such as dining out and subscriptions.
- Use 20% of your income for your savings. If you earn € 2,500 per month after tax, that means you can set aside € 500. In just one year, you will have paid off € 6,000 in debt.
3. Open a dedicated savings account
In order to save money quickly, you will need to separate the money you use for your daily needs from the money you intend to save. For this, it is necessary to open a dedicated savings account. Thus, you minimize the risk of digging into your savings funds to cover your daily expenses. This will encourage you to follow your daily budget while keeping your savings safe.
4. Program your savings
If you have a fixed monthly income, remember to schedule your savings each month: you can schedule an automatic permanent transfer from your current account to your savings account each month. Thus, you reduce the risk of using these funds to cover your daily expenses.
5. Schedule the payment of your invoices
Note that you can also schedule the payment of your bills. Businesses often charge late fees if you don't pay them on time, so paying your bills before the deadline will help you avoid any extra charges.
6. Set the spending limit for your card
Want a great way to save money fast? Set a spending limit on your credit or debit cards. This will keep you from overspending and encourage you to evaluate your daily purchases in advance. Many banks offer this service. At N26 for example, you can set daily spending limits and choose whether or not to authorize ATM withdrawals in seconds from your N26 app.
7. Use the envelope management system
Another possibility to help you save money fast is to use Dave Ramsey's Envelope Management System. This system involves withdrawing your monthly cash income from the bank (yes, in full) at the start of each month and dividing it into different envelopes based on your management goals.
This will provide you with envelopes for your fixed costs (eg, rent, utilities) and for your variable costs (eg, clothing purchases, dining out, groceries). By paying everything in cash, it is practically impossible to break your budget! But we grant you, it is probably not the most practical in 2021!
8. Save on your rent
Saving on rent is one of the fastest ways to save a certain amount of money each month. If you live alone, one of the easiest ways to do this is to share a flat with you. This will immediately cut your rent in half, and if you choose to live with two roommates, you'll pay about a third of your current rent.
So if you are currently paying € 1,300 per month for a three-room apartment and find a roommate, you will save € 650 per month.
If you already live in a shared flat, you can move into a smaller room. The rents are generally calculated according to the room which is to be rented. So you can make big savings every month. In addition, it would encourage you to resell some of your furniture, and allow you to earn some money.
Of course, the ways to reduce your rent depend on the configuration of your home, your needs and where you live ...
9. Reduce your costs
Another tip for saving money fast is to reduce your expenses. Your electricity and gas bills represent the bulk of your fixed costs. If you can manage to reduce them, you will end up with a certain amount more each month. Here's how to do it:
- Change your energy supplier. By making sure you've purchased the best deal on the market, you can save several hundred dollars each month.
- Replace your light bulbs with LEDs. Not only do they consume 75% to 85% less energy than traditional light bulbs, but their lifespan is 15 to 25 times longer.
- Invest in a smart thermostat. This will allow you to adjust your central heating intelligently and potentially save you some money.
- Plug all air leaks. Air leaks around your windows and doors can increase electricity bills because your radiators will have to run longer to heat the room. Instead, plug those leaks with compressible thermal sealing strips to keep the air warm.
- If you own your home, consider doing energy renovations. There are many public aids to make your home a well insulated cocoon that will reduce your carbon footprint.
10. Carry out an additional professional activity
If you want to dramatically increase your monthly savings, you can try finding some extra activity. It could be working a few evenings in a bar or restaurant after your job, finding a few freelance contracts, becoming a virtual assistant, or maybe babysitting.
If you can afford it, it can be very motivating to transfer all of the income generated from these additional activities directly into your savings account. But it is important to be vigilant to the risk of burnout.
11. Cancel your unused subscriptions
Subscriptions are incredibly lucrative for many businesses because once customers sign up for their service, they're less likely to cancel their subscription, even if they rarely use it.
This is largely due to the sunk cost bias. If applied to a subscription, the sunk cost bias means that it is difficult to cancel a subscription that is rarely used because you have already invested a huge amount of money. Thus, canceling the subscription would be accepting that the money spent so far has been wasted. Postponing the termination of the subscription maintains the illusion that this subscription can still be used. In general, very few of us fully use our subscriptions. That's why it's more beneficial to cancel unused subscriptions now than to keep them in the event that you use them later.
How to save quickly for a car?
There are several options available to you if you want to quickly save money for a car. It should be a little easier to save for a car, as you usually don't need to save as much as you do for the down payment for a new home. However, it will still be necessary to be tactful in managing your money if you want to get behind the wheel of your car quickly. Besides, even if it means changing your car, why not opt for an electric vehicle? Many conversion bonuses have been put in place to lower the bill and guarantee a greener future.
12. Make small daily repairs yourself
Trying to fix what you've broken yourself is a great way to save real money - we're talking about small repairs, of course. Thanks to YouTube and the Internet in general, it is easy to find online how to repair many everyday items. From leaky bathroom pipes, to changing the belt on your washing machine, to fixing the zipper on your jeans, it is always better to fix these things yourself rather than paying someone. 'one to take care of them, or replace them completely.
13. Think before you buy
Giving in to temptation is the biggest problem when trying to save money fast. Before you make a big expense, whether it's a compulsive purchase or not, give yourself at least three to four days to think about it. This will prevent the impulsive part of your brain, looking for a dose of serotonin after a purchase, to gain the upper hand.
If you really want to test yourself, try not to make a big expense until after 30 days of thinking. It's a sure-fire way to keep your impulse buying under control and give yourself plenty of time to make sure there isn't a better deal.
14. Buy a car at the end of the financial quarter
If you want to get a good deal on a car, the best time to buy is usually at the end of March, June, September, and December. Why ? Because most dealers have specific sales targets to meet in order to claim their financial bonus. While these sales targets are set on a weekly and monthly basis, the big bonuses are given out quarterly. This means that you are likely to get a better deal on a car at the end of each financial quarter because the car dealership will be keen to meet their quarterly sales target.
15. Reduce your shopping expenses
If you manage to cut back on your spending on groceries each week, you'll be amazed at how much you can save in just a few months. One of the best ways to do this is to plan all of your meals in advance. This means you can accurately calculate how much you're going to spend before you shop and reduce your chances of going over budget.
Another tip would be to consider not consuming meat once a week. Because meat is generally more expensive than vegetables and vegetable products, it can pay off to go without one day a week. These little weekly savings will add up over time.
On top of that, be sure to look at the products sold at the bottom of the shelves. Supermarkets often put their more expensive products at eye level, to encourage you to spend more, and the cheapest products closer to the ground, making them harder to spot.
16. Set one free day per month
To get used to saving money, decide on one day per month that you spend absolutely nothing except fixed costs. You can prepare all your meals from the ingredients you have at home, choose to socialize at the park or at home, and spend a relaxing evening reading or watching TV. Once you get used to it, you can do this two days a month, and maybe even one day a week to really increase your monthly savings amount.
17. Sell your unused items
If you want to quickly start saving money for your vacation, it's worth making a list of all your unused items and selling them on an online shopping site like Le Bon Coin, for example. This not only helps to declutter your home, but also saves you small amounts of money that you can save for your next vacation. Conversely, you can also start buying second-hand items more frequently, in order to save a lot of money and avoid over-consuming.
25 Tips to Save on Groceries
Do you want to find out more tips to help you save money when you go to the supermarket? Here are 25 as simple as they are effective!
1. Budget
Making a monthly budget and trying not to deviate from it is the first way to avoid spending too much. Do you have trouble respecting it? To motivate yourself, put aside the money you would have spent on unnecessary purchases. The amount raised at the end of the year can be invested in a trip or in a project that is dear to you.
2. Buy in Bulk
When shopping for ground meat, chicken drumsticks or pork chops, for example, get family size packages. In general, these cost less. Always check the price per kilogram to make sure you are getting a good deal. Don't you need that much? Pack the excess and freeze it for later use!
3. Opt for the
President's Choice, No Name, Compliments, Selection house brands … at regular prices, private label products are generally more affordable than those of the big brands. According to Agriculture and Agri-Food Canada, they are 20 to 30% cheaper. On the quality side, it is often difficult to tell the difference, especially when it comes to basic products such as sugar, flour, salt, oil or spices! So why pay more for the same product?
4. Cooking
Making your own chicken broth, tomato sauce (or bolognese) and pâtés (meat, chicken, salmon) is a good way to save money. To avoid it being a chore, we put a few Sundays “meals with friends” on our calendar. Thus, we can cook large quantities that we share at the end of the day. The art of combining business with pleasure!
5. Don't go to the supermarket on an empty stomach
Nothing worse than going to the supermarket when you are hungry! At these times, we tend to overfill our basket and buy foods that are not always very good for your health. If you go shopping a bit before mealtime, consider eating a snack!
6. Growing our herbs
Dill for the fish, basil for the pasta, cilantro and mint for the spring rolls… Fresh herbs can add to the price of our grocery bill in amazing ways, especially during the winter. ! To save, grow them! Take advantage of the beautiful season to grow them outdoors and bring them indoors around mid-August.
7. Stick to our list
Write down all the meals you want to put on the menu during the week and make a list of ingredients to buy in order to prepare them. Once at the supermarket, just rely on this list. By avoiding buying superfluous products or unnecessary food, it will prevent you from wasting money ... and maybe even putting on a few pounds!
8. Buy in bulk
By opting for bulk products, you won't be paying for packaging. Think about it! Flour, sugar, nuts, peanuts… several products are sold in this way. Some grocery stores even make it their specialty! To avoid having a mess of bags in your pantry, get pretty containers from a “dollar store”.
9. Make your menu based on discounts
Consult the flyers of grocery stores near you and plan your meals for the week based on discounts. For example, if chicken thighs are on sale, put them on the menu! You can even buy more for freezing. However, since the discounts return cyclically every three or four weeks, there is no need to stock up on them too much.
10. Couponing Couponing
consists of using a discount coupon to buy a product already on sale in order to obtain it at a very reduced price… or even for free. Although it is not as profitable to do couponing in Quebec as in the United States, it can still save us a lot of money after a year! How to get these coupons? On the Web (websaver.ca, quebeccoupon.com, gocoupons.ca), in newspapers, in stores or by mail. The Quebec couponing community onmagasine.ca can also help you get more for your money! Go take a look!
11. Say no to processed products
Ready-to-eat meals, marinated meats, precooked and seasoned rice ... in addition to unnecessarily increasing our grocery bill, these products are often less healthy and less tasty than the small dishes that we concoct ourselves from ingredients that we have selected. Also note that ready-to-eat meals are taxable: one more reason to avoid them!
12. Buy according to the season
Choose seasonal fruits and vegetables as much as possible. Favor berries (strawberries, raspberries, blueberries and blackberries) in summer, apples in fall and citrus in winter. Do the same with vegetables, favoring those that grow in abundance in Quebec during the summer. It is also a good way to encourage the local economy!
13. Avoid Individually
Wrapped Say no to individually wrapped juices and yogurts. Instead, prefer large containers that offer you more at a lower price. For lunches, get reusable plastic bottles and containers. A solution that is both economical and ecological!
14. Look everywhere
The most expensive products are often placed on the shelf at eye level. Outsmart this marketing technique by looking a little higher and a little lower. You could find great deals there!
15. Be vigilant
Beware, because some products are showcased on shelves as if they are on sale when they are not. In addition, just because it is written “special” in red does not mean that it is necessarily a godsend! Always look at the price per unit (or per 100ml or 100g increments): this will let you know which product is the most advantageous to buy.
16. Buy as much as you need
Are canned tomatoes on sale at three for $ 5? Note that unless otherwise indicated, you will benefit from the discount even if you buy only one (in this case, the unit price of a box would be $ 1.66). For products that have a long shelf life, it may be beneficial to buy three if the promotion is worth it. However, for perishable foods, you just buy the amount you need. Thus, we avoid paying unnecessarily for food that we risk wasting.
17. Grocery shopping without the kids
"Mum, I want this, daddy, I want that!" Children create a multitude of needs when they are in the supermarket and sometimes they know how to be so insistent that it is difficult to say no to them. For this reason, it is more economical to shop without them. If that is not possible, let them know that you will not buy anything that is not on your list… and be consistent!
18. Stock up on vegetables at the end of summer
We take advantage of harvest time to visit the fruit and vegetable markets and to stock up! Peppers, beans, tomatoes, leeks… so many vegetables that you can buy in large quantities for freezing or canning. It is also an opportunity to get apples that can be transformed into compote, jelly or pie. Much less expensive than buying these products at the supermarket… and how much tastier!
19. Cut and grate yourself
Cheese and carrots cost much more when sold grated. The same goes for mushrooms and other vegetables that are offered sliced or ready to eat. When we think of the savings we can make, preparing our food is not that tedious! Psst! When there is a considerable special on brick cheese (cheddar, mozzarella, gouda), take the opportunity to stock up! Grated and packaged in an airtight container, cheese will keep in the freezer for up to six months.
20. Playing butchers
Rather than buying your chicken cutlets, cubes or strips, slice it yourself! Since the price per kilo is higher when the meat is sold cut, it will save you a lot in the end. Do the same with beef, pork and lamb, and take advantage of discounts to stock up!
21. Eat less meat
Animal protein is much more expensive than vegetable protein, which is found in legumes and tofu, for example. By replacing a few meals of meat and fish with protein-rich vegetarian meals, you save money by enjoying an equally complete diet.
22. Shun bottled water
Is your tap water of good quality and tastes good? No need to spend on bottled water! To keep it fresh at all times, fill a pitcher and keep it in the fridge. Do you doubt its quality? Get a water filter and a gourd. With just one filter, you will get the equivalent of 300 500ml bottles of purified water. Greatly beneficial for the health of our wallet… and that of our planet!
23. Avoid waste
We try to get fruits at different stages of maturity. If a few have withered away before they can be eaten fresh, they are given a second life by using them to make muffins, compote or fruit salad. As for wilted vegetables, they can be used in a soup or in a stir-fry. Every time you throw away a food, imagine that it is your money that you put in the trash.
24. Having a loyalty card
Some loyalty programs allow you to accumulate points that give entitlement to discounts or free items . It can also be interesting to be part of a co-op, since a percentage of the annual profits is redistributed to the members in the form of dividends. Think about it!
25. Becoming a member of a “club”
type store This type of store can allow us to save a lot of money… on the condition of respecting our shopping list! Once there, it's so easy to be drawn to items that we don't really need. This is the trap to be wary of!
35 Tips to Save Money and Optimize Your Budget
Has your financial situation changed? Has your income declined? Do you want to save for a project that is important to you? Now is the perfect time to review your budget, even if it means adopting new habits to save money. Here are 35 tips to reduce your expenses, without suffering too much, and have extra dollars in your pocket.
Save on a daily basis
1. Avoid impulse buying by taking the time to think. Wait 24 hours or even a week before buying. This will help you put your needs into perspective. For example, you can allow 24 hours or even a week to pass before making your purchase to put your needs into perspective and consume responsibly.
2. Reduce your electricity bill by applying the good habits of Hydro-Québec. For example, did you know that washing your clothes in hot water can cost up to 18 times more than washing them in cold water?
3. Buy private labels, they are cheaper than the big brands and often of just as good quality.
4. For your home improvement projects, rent tools that you won't use often. It's more economical and you won't clutter up your space unnecessarily.
5. Your morning coffee is now taken at home? You save without even realizing it. Set aside the amount spent weekly at the café to complete a project.
Save at the grocery store
6. Shop for groceries after a meal or grab a snack right before. Going on an empty stomach would encourage spending more. And prepare a list to avoid impulse buying.
7. Plan a budget and a shopping list by checking online flyers to spot deals. You can even use apps like Flipp or Reebee.
8. Look at the top and bottom shelves of the shelves in the grocery store. The cheapest products are often placed there.
9. To find the most economical size, compare prices by quantity by looking at the labels on the shelves.
10. Prepare your own fruits and vegetables. Already assembled snacks can cost double the price of unprepared foods.
11. Cut down on your meat consumption to save on your grocery bill. Why not start with one or two meatless meals a week?
Save on transport
12. Get around by bike. This is a convenient way to save on gasoline costs while playing sports. Let your insurer know that you use your car less often and you could save money.
13. You can not do without a vehicle for your trips? Bet on a used car and you will avoid depreciation. If not, have you thought about a hybrid vehicle? You will save on gasoline.
14. Before buying a car, use the CAA calculator to find a cheaper vehicle.
15. To reduce your gas bill, take a step back. Driving at 100 km/h on the highway, instead of 120 km/h, reduces fuel consumption by 20%, according to the CAA.
Save on the Internet, TV and cellphones
16. Analyze your usage patterns to see if you are paying for the superfluous. Do you spend more time at home? Chances are, you're spending less on cellular data. You could change your mobile plan to better suit your new daily life.
17. Consider renegotiating your package. Competition is so fierce in telecommunications that sometimes it is enough to ask for a discount on your plans to be granted. Shop the plans according to your actual usage patterns, think about discounted providers, or get a second-hand device.
18. Consolidate your Internet, telephone and television services. This will allow you to save money.
Save on expenses for children
19. Limit the number of gifts to birthdays and holidays. Give homemade gifts or second hand items. It's good for the wallet and for the planet.
20. Buy your children's clothes from thrift stores. Several second-hand shops are accessible online. You will find durable parts here at a fraction of the cost.
21. Buying used hockey or ski equipment will save you big money. Some specialty stores even offer credit for your undersized sporting goods.
22. By contributing to a Registered Education Savings Plan (RESP), you could get up to $ 10,800 in government grants for your child's future education.
23. Several CEGEPs and universities organize used book sales at the start of the semester. It is possible to get between 25% and 50% off the base price. Finds can also be found on social media or in school discussion forums. It is a good way to save on student expenses.
Save on travel
24. Rather than flying across the Atlantic and spending on lodging, you could encourage local tourism and go on an adventure in your own province.
25. You might find free accommodation for your next vacation. Visit sites like Trocmaison.com or Home for Exchange to follow the latest developments.
26. If you are visiting another province or country, see if you should change your phone plan to avoid receiving a hefty bill when you return.
27. Shopping for your vacation? Being flexible with your travel dates could save you money. Analyze different dates for your accommodation. Leaving a few days before or after the anticipated date could prove to be less expensive.
Save on outings
28. Several cities offer free cultural activities, such as conferences, shows and museum visits… online. A great way to have fun at a fraction of the cost.
29. Host picnics at the park rather than ordering food online. It's much nicer and it's a great way to enjoy the summer. In addition, you will avoid food waste.
Save on financial services and taxes
30. Are you starting to have good savings habits? An accelerated mortgage payment could save you tens of thousands of dollars. For example, by making an additional payment of $ 2,000 per year on a mortgage of $ 300,000, at a fixed rate of 5% amortized over 25 years, you will pay a total of $ 41,252 less in interest and you pay off your mortgage sooner than expected.
31. Try to pay off the full balance of your credit cards each month. Otherwise, watch out for interest : a purchase of $ 2,000 at 20% is $ 4,240 if you only make the minimum monthly payment due.
32. Give preference to your bank's automatic teller machines by planning your withdrawals to avoid fees for each transaction.
33. Whether you really need to spend on insurance policies, the answer is yes. Auto, home and civil liability protections are often necessary to avoid many worries. On the other hand, nothing prevents you from shopping for your auto and home insurance with each renewal. Premiums vary a lot from one insurer to another. In some cases, you could reduce your premium by consolidating all your insurance with the same insurer.
34. Consider participating in the pension plan for which your employer pays an additional amount. You will contribute more and this is usually very beneficial.
35. If you are in a relationship and one of you is retired, you may be able to split your pension income to pay less tax. This tax operation consists of transferring (on paper) part of the retirement income of the spouse with the highest income to the other spouse. If the more affluent person moves to a lower tax bracket, your couple will pay less tax.
Monday, December 5, 2022
Grantham Predicts MAYHEM Next Week
I do think we're in a bubble but I also think it's unlike any other book The Great bubbles of History whether it's sassy bubble or 1929 or the tech model you take a very good economic situation and you merely extrapolate it into the future and if you do that and it actually occurred the market would be worth very high multiples of book and earnings and so on it's a very simple game believe in today's perfect conditions and assume unrealistically as it turns out that it will go on forever if you did that today and you extrapolated today's conditions which are miserable you would of course have the very opposite of the bubble so that makes it unique we're in the highest five percent of pe's and we're in the lowest five percent of economic conditions today so there's never been anything like that in history and why has it happened we know the trouble is of course covered and we know the push on stock prices is a combination of central banks Federal Reserve and fiscal spending and it's Global so we have never had such a global agreement that every government is looking to spend and every government is looking for their Central Bank to accommodate this is an enormous push and what we discovered long ago is how effective that is at moving stock prices it's as if every dollar that is not absorbed by the real world flows through line of least resistance flows through into asset pricing that is what is happening it's a very impressive struggle between the real world of productivity and employment and GDP and the paper world of PE ratios and house prices pushed by easy credit low interest rates of course being key and just plentiful supplies of money flapping around to those people who are likely to buy houses and stocks it is not necessarily the case at the small business level at all so this is not necessarily terrific for the real broad economy but it is clearly terrific for the stock market and the question is does the real world eventually catch up and since this is novel economy just like the novel virus you can't be quite as certain as you could in Prior bubbles I described our confidence in Prior Bubbles as near sir all of those things of course occurred and you can't be that certain this time because the forces are unique it's going to make life more intellectually interesting however my bet would be of course that reality will catch up with the ipes when you buy overpriced assets you get a guarantee of a low return what you don't get is the guarantee of being wiped out next week my belief is that if you're trying to time the breaking of a bubble the value is not that important all of them are overpriced and whether they're overpriced at 25 times earnings or 35 times earnings or in Japan at 65 times earnings it's very difficult to work out in any sort of academic way since you're dealing with craziness where it's going to Peak I much prefer to look for signs of truly crazy behavior because every bubble that really crashed and broke in a spectacular way which most of them did was preceded by craziness by legendary stories this was notably lacking as I wrote and talked about over the years of the 10-year bull market it has not been lacking really in this Valley of the covet low we have seen not only a terrific rate of acceleration in the price rise double the normal bull market which is characteristic that acceleration is characteristic at the late stage bubble but we've also seen wonderful craziness the Sparks which are a promise to use your money give me your money and trust me I'll do something useful with it there's a real Echo of the south sea bubble where we have such a spectacular opportunity we can't reveal what the purpose of your money is yet and they got lots of money and ran off with it I'm not saying the spikes will run up with your money and I am saying it's a real testimonial to the speculative nature buying hurts a bankrupt company and having it go up four or five six times in a real hurry and so on and so on you read about your own having a Tesla quadruple interview I own a Tesla It's a Wonderful car I think they're spectacularly interesting company but are they four times the company they were before covered I don't think so these stories are everywhere and they're what you need before a bubble breaks and we saw them in early 2000 and late 99 and we saw them in late 1929 before the crash we saw them in Japan and here we are again so I think this is an indicator not a certainty but a strong possibility that we are quite close to the bubble breaking in terms of psychology perhaps a matter of weeks or months not years and I am sympathetic to the argument what am I supposed to do the yields are so low but the market doesn't care that you don't have easy safe Investments to make and your desperation is your own math and what it does is focus on the difference between short-term and long-term on the short term you can say I'm offered Nothing by fixed income I get something out of stocks even though it's half what it seemed to be in the yield it's still better than nothing therefore I'll do it and the price is right and that is a logic that you hear one way or the other all over the place and then there's the argument in the long term which is in the end all assets equal replacement costs house prices go up but if you can build one at Half Price you put a ceiling on it if you can create a new company at half price I am a great fan of venture capital for this reason I've spent my entire life fighting the FED frankly what I will say is this that typically the FED wins many more rounds than we have but in the end we've had a knockout In the End the Fed has not been able to keep the tech bubble going indefinitely it sent it over the 21 times earnings of 1929 and sent it up to 35 but it couldn't go on in definitely even Japan that went to 65 the price they paid when you finally knocked it out was here we are 31 years later not even faintly close to the high of 1989. if you go into their real estate market which was an even bigger bubble I think the biggest bubble including the sassy bubble ever for tulips they went down for 30 years and now they're bottoming out maybe but they're bottoming out in Central City prices at a quarter of where they came from the land under the Emperor's Palace in 1989-90 was indeed worth the state of California to give you some idea we spent a day or two checking it out it really was true and the price you pay for that is you could be 50 years later and still not back to that level again I would say don't fight the FED if you're a short-term player but if you're a long-term player you have to be prepared to fight the FED on occasions as long as inflation is not really Gathering State when you find yourself facing a slowing global economy you have to kick it and it needs massive government stimulus on a sustained basis a few years ago I debated Jim Grant who called me an apostate amongst Valley managers or hedging about this time is different I maintain that the former dangerous words this time is different should be replaced by the five most dangerous Words which is this time is never different that is a very dangerous idea to think that you can never have important permanent changes and I think almost everything has changed since 2000 so the certainties that we used to have no longer exist but that was five years ago that was before the most massive move against value on any way you can measure it now we are off the scale so I don't think a value is as dependable and useful a weapon as it was for 70 years prior to 2000 but I think it's a very handy weapon when you push the parameters so far that it hits historical lows against gross cells so we may not snap back the 120 I would have calculated 20 years ago but we are going to have a very big reversal in favor of value stock sooner or later I think we can be pretty safe about that and one of the things comes down to the nature of the facts I don't recommend necessarily going short but I do recommend owning as few U.S equities as you can face emerging equities merging markets are not only at an unprecedented low relative but they are actually quite cheap absolutely compared to the US on their own and who are they they're China who is going to represent according to the World Bank over 30 percent of the entire world's growth over the next 20 years and India which is going to be an increasingly important player and then you have the Brazil and so on collectively they are much the bigger part now of the global GDP these things move very fast I think about on Emerging Markets is really betting the future against past and the only thing that makes life interesting outside emerging are the Fangs intellectually interesting but when they've gone up 10 times in a hurry you have to say it's intellectually more interesting than it is financially interesting and the reason I recommend not going short shorting is a desperately difficult game you can never be certain that they don't the fangs and the growth stocks put in one last push that will shake you loose you simply will not be able to take the pain as a short sale government spending done correctly very good for the economy very good for workers which in the U.S have not had a real increase per hour work since the mid-1970s can you believe where even Dopey Europe has more than doubled in China and Vietnam has more than 10 people and so on it is a bit of a pickle my advice really quite simple you emphasize Emerging Markets you de-emphasize the us if you have to own the U.S you go for deep value I did not say that three years ago five years ago but if I had to choose between doing that and avoiding the US entirely I would do the latter you only need one big asset Box by the way to get rich Emerging Markets as I said is way over half of the global GDP it is growing far faster and because of the size of China it's guaranteed to do that it's going to have a much better growth rate this year under stress much better than the GDP growth of the development and it's got 26 countries it covers every industry you would want why would you be moaning and groaning when you have such a good opportunity it's 10 times learning it's cheap it's a great opportunity by and large in most of the things that matter to me I have to make the sick joke that yes America is exceptional it's become exceptionally bad in that we have the worst life expectancy the worst morbidities the worst social measures of almost anything children to 16 year olds number of people in prison number of people who get shot on and on and on it's quite distressing however the old rates of 15 maybe will never come back again let me just point out that debt is simply Double Entry bookkeeping for every dollar of debt there is someone who is owed a dollar why I care if every other Japanese owns every other Japanese tons of money so that in total the debt looks intimidating by historical standards yet from a U.S point of view looking at internal debt it's totally irrelevant and has proved to be by the way they have been moaning about Japanese debt levels for my entire career and it has never had material consequences that I can see they have plenty of things going wrong from time to time but none of them have really come down to Leverage
Robert Kiyosaki Wants You To Be Prepared
There's a lot of people who may or may not know they're in big financial trouble and my concern is today is a lot of people maybe they're not rich but they're going to go broke but let me give you my background on this whole thing about why we're in this crisis 1974 I was just getting out of the Marine Corps station in Hawaii Kaneohe Bay Marine career station and I was looking for a job so I went and I got a job with the Xerox Corporation not because I love Xerox machines but I had to learn how to sell and that was the main reason so I interviewed two companies IBM and Xerox I took Xerox at the same time there was this new thing called erisa which I really wasn't paying much attention to but because I was interviewing with people I keep hearing things called erisa and the Orissa stands for employee retirement income Security Act and every time they say that governments tell you they're going to secure your retirement you know it's toast I don't trust my government as far as I can throw and you can't throw it anywhere so erisa then let to this thing called the 401K
so over the next couple of years like say 784 to like 78 I saw this Exodus of school teachers leaving the profession and it goes my whole family of school teachers and they were becoming financial planners it was it sounded good like they were experts in all this and all I was saying to my sick and not so politically correct Dark Side this is the poor leading the foolish and I said we're going to have a disaster coming so you have these guys know nothing about money School teachers or all these other people who are just quitting their jobs to have a profession called a financial planner and then they were advising people who knew nothing about money about their financial future I said man there's going to be a train wreck in the future well this is the show the SOS is here so if you are an old guy like me a baby boomer who's had a 401k or an IRA what I call defined contribution DC pension plans this is your show and if you're a young person with a 401k you know I'll take laps around the rosary beads for you tonight because you're an idiot so this is what this show is about because you might be in financial trouble your parents or your grandparents might be in severe financial trouble today because that 1974 act the arrest act which led to a 401k in these IRAs and Roth IRAs were specifically designed for people who want to be told what to do go to school get a job you know Dave Rams is a friend of mine he says live debt free and truthfully most people should do that but I would never do that debt is money so I come from the other side of the coin it's all coins of three sides heads tails and the edge so on the other side of the coin is Dave Ramsey saying live debt free and most people should because they don't know how to handle debt on the other side of the coin is I went to school to learn how to handle debt how to raise Capital using other people's money and when you've lost somebody's money it's pretty frightening and so that's why I don't do this stuff because that's the problem you got conditioned to be led by foolish people who tell you what to do with your money and I meet some of the young people oh I got a great job it's got a 401k you know I dropped to my knees take laps around the rosary pieces so this person's in severe trouble down the road so with that as you know the markets are crashing our debt to GDP ratios are now like 125 percent it's never been this High we're the biggest debtor nation in the world and um people are in trouble I don't really know what's going to happen but something has to give we users cannot keep printing money to solve financial problems but if you awaken your financial genius you know greed is good I mean getting rich is fun it's the most fun game I play and the reason I like it is because markets go up and markets go down you know it's like life and it's just real life but most people so awaken your financial genius and take control of your actual future so that's what happened for me was that when having a rich dad and a Poor Dad I saw my poor dad a PhD from Stanford in Chicago and University of the Northwest and he was just so content to have a PhD and a job in a government pension government pension is kind of a defined benefit plan where you guaranteed a paycheck for life that's defined benefit and that's why so many people are government employees which is why our government is going broke and all these people who get a government job for the defined benefit management plan we all know that we know all your cowards and you know you just want to be told what to do and have somebody take care of you give you a bottle of milk which is no baby formula in it unfortunately but you're sucking on the nipple of the government and the government's broke that's a defined benefit pension plan and then in 1974 they shuffled off to Buffalo all the Baby Boomers into defined contribution which meant you had to contribute to it and if it was there when you retired good luck you know I mean you're lucky but if it's not there and that's what we're saying with this SOS show it might not be there our education system is so corrupt broken and woke right now but most academics have this point of view I'm not interested in money you know there's a self-righteous stupid underlying attitude because I grew up with them I'm not interested in money I'm just impo I'm just going to do a good job for the kids because my whole life is dedicated to the kids well why don't you educate them about money well because I'm not interested in money and there's this underlying Mantra I've seen I heard and so many people who are government employees I'm just not interested in money it's the biggest bunch of crap I've ever heard because they're the first guys that fight when you take their paycheck away and they'll sell their soul for their paycheck but given the state of the economy the stock market or brilliant leadership under Biden and Kamala the Border Harris um Czar oh jeez I war in Ukraine and inflation going through the roof and Elon Musk laying off 10 of his Workforce we're talking about what you can do now given the state of the economy and if you're by holding praying for your retirement they'll say you're 65 you might be in serious trouble I think in a baby boom generation they're out of time there's a very big difference with time is a big factor in this whole thing so it's good the crypto guys are learning it early but the problem with our generation my generation was We Came of age around let's say 1970. Nixon took the dollar off the gold standard and all we knew was a boom economy even right after 2008 they just printed more money and kept booming but that's why I said our debt to GDP is now 125 percent it means for every dollar we bring in we're spending we can't cover our tax dollars can't cover it so they keep borrowing more money not really borrowing more money but cannot probably in the market up and now we're at the end of the line but after you kind of realize what was going on in the stock market all markets boom and all markets bust but this could be the biggest bust in world history it's a global bust it might be of a global depression again you know I grew up in a fan family of government employees and their whole thing is a self-righteous attitude I'm not interested in money
I just want to do a good job for the community biggest law I ever heard you try to take their paycheck away they fight like dogs they'll bite you in the hand you know I mean it's the biggest lie and so many people sell their soul now they'll do anything to keep that job but they're not interested in money because money is the root of all evil you know and that's what I hear going on all the time so anyway let's try this whole thing off is when financial planners became to fad a new profession you know every school teacher not every but you know they were just leaving in droves poor leading the blind it's just shocking what's happened our problem is education I mean so hardcore Marxist right now that is the Communist game plan it has always been to invade higher education so in 1930 the Frankfurt School sent teachers to Columbia University in New York and that's when the student protests began and they began America became communist through our education system I mean making more money than ever before today but because I am a proactive investor I was just saying to John I just sold two properties that we made quite a bit of money on and so where do you put your money well you put it in cash I bought wagyu Bulls you know breeding Bulls this is a Japanese breeding Bowl which I always wanted to be but never got there but I'm in the food business now and I'm into Oil Business I'm not stock business I don't trust stocks or bonds I never have I don't have any well I do have some but they're companies I took public but I am proactive and most people like you say want to be told what to do so I write about what I do in all my books there's a difference there so I just said just recently I sold two pieces of land I made four hundred thousand dollars and I'm putting it into wagyu cattle and cows and next may they drop more cattle so it's called Cash Flow you know it's not that hard to do but you have to kind of know what you're doing so my whole strategy being a marine and a c student and never been bright in school I always ask people who are doing what I wanted to do so my friend who is investing in the Bulls that's what he does he invests in Bulls and this bowl is a half million bucks and he braids you know probably several hundred cows a year and think of all the calves that dropped from that that's leverage you know I just kind of like the whole formula and I like to eat now if you don't like to eat beef chew on some celery you know I don't really care but you get your little personal dignity up there and you miss the whole point here invest in what people need people need oil I invest in it people need housing I invest in it people need food I invest in it there's a very big difference but I invest with people who are doing what we invest in there's a certain female that's famous on television especially PBS she uses cut up your credit cards and live below your means and diversify diversify
I called diversify you know just diversify your account so this person was charged or something right now we won't mention her name I think it was a debit card fraud amongst other things I sit there and watch all this Horror Show going in front of us and then so many people have been trained because I go to school tell me what to do it's why 78 of people working adults these aren't homeless people are living paycheck to paycheck that's why tell me what to do so let me give you an example you know Dave Ramsey is a friend of mine his advice is solid it'll live debt free but the other side of the coin is somebody like me and what I studied was how do I use debt as Monica's death became money in 1971. you know so I learned how to borrow money because debt is tax-free then I invest in property and then I get my income tax free because of appreciation depreciated amortization he's a tax loss but they take study you don't just do it overnight but you gotta study if you want to be told what to do just listen to the TVs and pray I mean that buy hold and pray I call it during a crash is when you make most of your money when Kim and I started off on how many years ago now it was miserable problems break down this that painting costs go above your rents and you learn management so quickly
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