What Are the Effects of Closing a Credit Card?

June 1, 2020

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Kevin Kinard

Kevin Kinard

Financial Professional

232 Trowbridge St.

Allegan, MI 49010

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March 16, 2020

Can You Buy Happiness?

Can You Buy Happiness?

Let’s face it: There’s a relationship between money and happiness.

Anyone who’s looked at their savings account during a market correction or has lived paycheck to paycheck knows that not having enough money can be incredibly stressful. But there’s also a fair chance that you know of someone who’s wealthy (i.e., seems to have plenty of money) but is often miserable. So what exactly is the relationship between money and happiness? Let’s start by looking a little closer at happiness.

Happiness is really complicated
There is no single key to happiness. Close relationships, exercise, and stress management all may play a role in increasing emotional well-being. Little things like journaling, going on a walk, and listening to upbeat music can also help lift your mood. But none of those factors alone makes you happy—most of them actually turn out to be interrelated. It’s hard to maintain strong personal relationships if you take out your work stress on your friends! Assuming that money alone will outweigh a bad relationship, high stress, and an unhealthy lifestyle is a skewed mindset.

Money contributes to happiness
That being said, money can certainly contribute to happiness. For one, It’s a metric we use to figure out how much we’ve accomplished in our lives. It helps to boost confidence in our achievements if we’ve been handsomely rewarded. But more importantly, the absence of money can be a huge cause of dismay. It’s easy to see why; constantly wondering if you can pay your bills, fending off debt collectors, and worrying about retirement can take a serious emotional toll. In fact, having more money essentially only supports greater emotional well-being until you reach an income of about $75,000 (1). People felt better about how much they had accomplished past that point, but their day-to-day emotional lives pretty much stayed the same.

What’s the takeaway?
In short, you can’t technically buy happiness. However, taking control of your financial life definitely has emotional benefits. You may increase your feeling of wellbeing if your income gets boosted to a point, but it’s not a silver bullet that will solve all of your problems. Instead, try to think of your finances as one of the many factors in your life that has to be balanced with things like friendship, adventure, and generosity.

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February 17, 2020

Habits of Successful People

Habits of Successful People

Successful people come from all types of backgrounds.

But did you know there are certain habits they tend to have in common? What’s better yet, they’re mostly practices that don’t require a huge budget to start doing. Here are three concrete ways that you can imitate the wealthy—starting today!

Wake up early (but also get enough sleep)
Let’s establish right away that most people shouldn’t wake up at four in the morning if you’re going to bed at midnight. Lack of sleep can exacerbate or cause dozens of health and mental issues ranging from obesity to depression (1). That’s the exact opposite of what rising with the sun is supposed to do!

The primary perk of going to bed early and waking up early is that it helps give you control of your day. You’re not simply rolling out of bed forty-five minutes before work and coming home too tired to do anything useful. Instead, you get to devote your most productive hours to something that you care about, whether that’s meditating, working on a passion project, or exercising. Speaking of which…

Exercise
Exercise is something that the successful tend to prioritize. One survey found that 76 percent of the wealthy devoted 30 minutes or more a day to some kind of aerobic exercise (2). It seems obvious, but working out doesn’t just improve physical health; it can help ward off depression and increase mental sharpness (3). It’s no wonder so many successful people make time to exercise.

Read
Almost 9 out of 10 wealthy people surveyed said they devote thirty minutes a day to reading. Why? It turns out that it can improve mental awareness and helps keep your brain fine-tuned (4). But reading can also be a valuable way of expanding your perspective, learning new ideas, and drawing inspiration from unexpected places.

Some of these habits might seem intimidating. Switching your bedtime back three hours so you can wake up before sunrise is a big commitment, as is working out consistently or reading books if you’re just used to scanning social media. Try starting off small. Get out of bed thirty minutes earlier than usual for a week and see if that makes a difference. One day a week at the gym is much better than zero, and reading a worthwhile article (like this one!) might pique your appetite for more. Whatever your baby step is, keep expanding on it until you’re an early rising, iron-pumping, and well-read machine!

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September 17, 2018

Generation X: What They Do Right And What They Can Do Better

Generation X: What They Do Right And What They Can Do Better

There’s a lot of discussion about how Americans aren’t prepared for retirement, and Generation X is no exception.

In fact, Generation X may have even less retirement savings than the Baby Boomer and Millennial generations.

A study by TD Ameritrade[i] highlights the problem many GenXers deal with:

  • 37 percent say they would like to retire someday, but won’t be able to afford it
  • 43 percent are behind in their savings
  • 49 percent are worried about running out of money during retirement
  • Almost two out of 10 aren’t saving or investing

The shortfall of savings isn’t without reason. In their financial lives so far, Generation X has taken some hard knocks. They have faced two recessions, disappearing pensions, the rise of the 401(k), and dwindling social security benefits.

What Generation X Does Right with Their Savings
With all those financial forces against them and a decidedly laid-back approach to savings, is there anything Generation X has going for them? Turns out, there is – 401(k) investments and a strong recovery from the 2008 recession.

The 401(k) Generation: Generation X was the first generation to enroll in 401(k) savings plans en masse. 80 percent are invested in a 401(k) plan or something similar.[ii] The fact that almost all of Generation X has embraced the 401(k) retirement savings plan is a revelation.

Rebound: If every generation receives a financial gift, for Generation X, it is their solid rebound after the Great Recession. According to a study by the Pew Research Center,[iii] the net worth of a GenX household has surpassed what it was in 2007. Meanwhile, the net worth of households headed by Baby Boomers and the Silent Generation remains below their 2007 levels.

What Generation X Can do Better When it Comes to Savings
There’s always room for improvement when it comes to financial planning. For Generation X, those improvements are best focused on saving and getting out of debt. Here are a few pointers: Ramp up your savings: Commit to socking away at least $50 a month to start and increase that amount over time. Make sure savings is factored in to your monthly budget. Pay off credit card debt: Credit card debt is expensive debt. Commit to getting serious and paying it off. If you need help, consider consolidating, balance transfers, or getting a personal loan at a lower rate.

A Mixed Financial Picture
Like other generations, the savings snapshot of Generation X is a mixed picture. They have some great financial tools in place with 401(k) plans and a growing net worth.

If you’re a GenXer and if you’re serious about financial health, it’s not too late to commit to a savings plan, get out of credit card debt, and seek to improve your long-term outlook!

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