“I Will Teach You to Be Rich” convinced me that I needed a new financial strategy and a new bank
- My New Year’s resolution is to read all the books on my shelf, and “I Will Teach You To Be Rich” was the first.
- However, I took away three fantastic methods that I want to use in 2022.
- I’m cutting ties with my bank and putting my money in index funds instead.
Reading every book on my bookshelves by the year 2022 is a personal ambition for that year. More than half of the books I possess are second-hand paperbacks or gifts from friends I have never opened. Each book would get some attention before deciding whether to retain or give it away.
Bankruptcy as a Strategy and Not a Sign of Defeat
The COVID-19 epidemic continues to cause financial stress on both individuals and businesses across the globe, it’s more crucial than ever to be aware of what options you have and what strategies can give you the most effective options. Although bankruptcy is often associated with an unfavourable image that can cause it to be perceived as an indication of failure as a failure or failure could be a powerful method to help business and individuals to recover and move forward.
Types of Bankruptcy
There are three kinds of bankruptcy Three types of bankruptcy are Chapter 11, Chapter 7, and Chapter 13. 11 7 and Chapter 11. 7 as well as Chapter 13.
There is a good chance that you have heard of major companies like Macy’s and Kmart applying to file Chapter 11 bankruptcy and been confused as to why they are still operating. Chapter 11 is a reorganizational type of bankruptcy that permits you to remain open to restructuring the debt.
Chapter 11 has many strategic advantages. For instance, you’re still fully in control of all your assets as well as running the business. If you’re in the process of settling any lawsuits or are being confronted by landlords or lenders the entire process are put on hold as you work to gather. This usually means creating a new repayment plan with a schedule. Sometimes , debt that is unsecured can be paid at a rate of one percent for every dollar owed. and debts may be paid using corporate stock or portions of the company could be taken off the market. The end goal is Chapter 11 is designed to allow businesses to have more flexibility and flexibility to get their finances in order.
The Chapter 11 law is subject to variety of rules. Any modifications will require approved by the court, which means you’ll require an attorney to help navigate the legal process. Additionally, you’ll be required to provide a variety of statements about your finances as well as business practices, which could be uncomfortable.
By filing for Chapter 7, you’re opting to shut down your business and clean your hands of any business. The liquidation of all assets is done by trustees, who are responsible for and decides who will be the money and what amount they’ll receive.
Chapter 13 is like Chapter 11, but on the smaller scale. This option is restricted to those who have the amount of $1.1 million of secured debt, and $389,000 in secured debt. The borrower must also have at least a certain amount of income in order to qualify.
Although you may not be contemplating filing for bankruptcy in the near future but it is crucial to speak with your lawyer to make sure you are aware of your rights and responsibilities to prepare. The guidelines for all kinds of bankruptcy to BKHQ are extremely specific and putting some effort into planning can affect the way you manage your cash today, therefore you’ll need all the details you can get. In some cases, filing for bankruptcy could be an option to help their company survive the financial burden of COVID-19.
On the first day of the new year, I am determined to take action on my aim. I grabbed a book off the shelf and closed my eyes. “I Will Teach You to Be Rich,” by Ramit Sethi, was the book I decided to buy. It was given to me by my spouse, but I never finished reading it.
Despite the title, I was surprised to find that the advice in this book was not hazardous or unorthodox at all. If you’re just starting with your finances, you’ll find a lot of helpful information here, such as how to better understand your credit score or what a savings account is.
After reading this, I scribbled down notes and concrete insights that condensed some following financial actions that I need to execute immediately. After reading “I Will Teach You to Be Rich,” I came away with three key lessons.
1. Set up an automatic money transfer.
Much work has been spent planning and constructing a reasonable budget, but I haven’t automated a monthly money strategy. It is manual for me to transfer money between banks, put funds into my retirement fund, and pay my credit card payments. One hour a week is spent on my money, even if I don’t need to.
It is possible to set up an automated money flow so that your paycheck is automatically divided and transferred into numerous accounts.
It works like this: You may choose a percentage of each paycheck to go into an employer-sponsored 401(k), and the balance can be put into your bank account. To pay off credit cards and other debt, you may set up automatic transfers from your checking account to your savings account, other retirement accounts (such as a Roth IRA), and any additional bills.
Even though my structure will depend on my aims, implementing an automatic flow simplifies my financial management.
2. Individual stocks should be avoided at all costs.
When I first began investing in the stock market a few years ago, all I had was an idea of which firms I liked and supported. With so many separate stocks, I had no idea what to do with them or when I should sell them.
This scheme is defective, and I’ve known about it for a long time. I gained a better reading of the book of knowledge of the advantages of index funds versus individual equities after reading the program that manages stock portfolios to mimic the market’s overall index. To be more hands-off and not burdened with keeping track of 30 or more companies whose stock I hold, I prefer index funds to individual equities.
3. Terminate your relationship with your financial institution.
If you’ve been with the same bank for a long time, you may be reluctant to leave since you feel like you’ve “been a part of the family.” That commitment does not lead to benefits and may instead harm your financial well-being in the long term.
I’m still a customer of the bank I established my initial checking and savings accounts with. Even though I’ve transferred the majority of the funds in these accounts to a bank with lower fees and a greater interest rate, I still can’t bring myself to transfer the remaining funds and permanently shut the accounts.
Put another way, I’m missing out on the opportunity to earn more income since my funds are now languishing in a checking account, making just 0.01 percent of what they would at my new bank.
My business account with this bank also charges me monthly fees since my balance falls below the minimum amount necessary for that kind of account. I might be able to avoid such fees if I switched banks because of my company’s history.
Breaking up with my long-term bank and finding a new one that treats my money better is at the top of my list of things to accomplish in 2022.