Is the economy slowing what are some ways to make money down – two waters wealth

Something as complex as the global economy can appear pretty what are some ways to make money daunting and overwhelming. No doubt it’s a sophisticated system with lots of moving parts, some more efficient than others. But at its core, the economy is like any other machine. It’s a series of inputs and outputs. When one thing happens, it triggers some sort of reaction. That reaction delivers feedback which helps to determine the next what are some ways to make money input and on and on we go.

A simple example is how your body acts when you’re hungry. Your stomach starts to identify that it’s running out of fuel. That feeling triggers a message to the brain that tells what are some ways to make money it “I’m hungry”. The reaction of the brain is to find food and what are some ways to make money feed the system until your stomach tells your brain, “ok, I’m full”. The feeling of hunger opens the loop, and that loop remains open until you achieve the feeling what are some ways to make money of “being full”. Once you’ve satisfied the hunger, you close that loop. We don’t consciously think about these things, it’s just how the system is wired to function.

To tie this back to the economy, consider your own personal economy. You have a job or some source of income. The income enters your economic system. From there, a series of outputs immediately occur. A percentage of your income immediately goes to the government what are some ways to make money in the form of taxes. An additional percentage goes to paying interest on any debt what are some ways to make money and liabilities you’ve got. Next, you have built-in expenses that cover your basic needs and wants. A portion of your budget goes to your home and what are some ways to make money bills, a portion to food, a portion to satisfying lifestyle, etc. And finally for most, if there’s anything left at the end of the month, that money goes into savings or some sort of investment what are some ways to make money account. Next month, you get another paycheck and the cycle repeats.

On the other hand, if you’re living paycheck to paycheck, you might be struggling to get ahead. As times get tougher, you might be forced to borrow money to keep up. The more debt you take on, the more of your income has to be allocated to what are some ways to make money paying interest on that debt. If the problem persists, you could end up spending more just to keep up what are some ways to make money on your debt than you bring in every month. You’re operating at a deficit, which makes it very difficult to get ahead financially.

As I write this, the U.S. Has amassed over $22 trillion in debt, and 2018 marked the first fiscal year where we experienced what are some ways to make money a trillion dollar deficit, meaning we spend more than a trillion dollars more than what are some ways to make money we brought in in revenue. As a country, we’ve operated at a deficit every year since 2002. Bringing this back to your household economic system, this means you’ve been living off of credit cards to make ends what are some ways to make money meet for 17 straight years. Not exactly ideal, but to make matters worse, we have a demographic tidal wave building as we head what are some ways to make money into the next decade.

This was the first of 78 million baby-boomers who are set to turn 62 between 2008 and what are some ways to make money 2026. As those 78 million baby-boomers hit this benchmark, they shift from working to retirement, claiming both social security and medicare benefits in the process. The problem is made worse by the fact that only what are some ways to make money 30% of these 78 million hit this mark between 2008 and what are some ways to make money 2018, so while debt has more than doubled over the last what are some ways to make money decade, we’ve really only just begun to see the impacts that what are some ways to make money this shift represents. The other 70% of boomers (roughly 55 million people) will turn 62 between now and 2026. This means that 70% of the largest demographic in the united states will simultaneously what are some ways to make money leave their peak spending years, resulting in less tax revenue, and enter their years where they get to begin claiming what are some ways to make money their benefits – resulting in more spending obligation for the government.

While it might feel like you already pay too much what are some ways to make money in taxes, the truth is we’re actually in the lowest tax environment in nearly 100 what are some ways to make money years. From the 1920s through the 1970s the average highest marginal what are some ways to make money tax rate was over 70%. Today, the highest marginal rate sits at 37%. Roughly half of the historical number. Knowing our formula, do you think it’s more likely that our taxes will go up, or go down in the future? You can come to your own conclusion, but simple math tells me it’s almost impossible for taxes to do anything but go what are some ways to make money up in the future – when and how much, who knows? But the facts are the facts. The tax cuts and jobs act that president trump put what are some ways to make money into place in 2018 actually reduced taxes as a whole, but those cuts are set to expire after 2025. What happens then?

It’s critical to get your arms around these dynamics because what are some ways to make money as our debt crisis has skyrocketed, the stock market and economy as a whole is still what are some ways to make money experiencing a 10+ year run that’s nearly unprecedented. It feels like the economy has been thriving, and hopefully, you’ve personally benefited from it, but the only certain thing about the economy is that what are some ways to make money we’ll always experience relative uncertainty. But this prosperity can lull us into a sense of what are some ways to make money false security too.

Since 1945, the year that marked the end of world war II, until today, there have been 12 recessions, and these recessions have happened within every 7 to 10 what are some ways to make money years consistently. In all, there have been about 47 recessions in the history of what are some ways to make money the united states. These defined chains of economic ups and downs are natural what are some ways to make money and inevitable, and as much as many people love to heap the what are some ways to make money blame of economic downturns on political and external forces, it is an established fact that recessions have nothing really what are some ways to make money to do with who was in a position of power what are some ways to make money when the event occurred. If the economy has peaked and needs to rebalance, nothing can stop it from running its course.

If you’ve accumulated a lot of debt, the first thing to do is get your debt under what are some ways to make money control. Bad debt is the cholesterol of your financial plan. It clogs the arteries and robs you of cash flow. And cash flow is the saving grace when the economy what are some ways to make money goes south. If you know you have positive dependable cash flow regardless what are some ways to make money of economic condition, not only will you maintain a lot more confidence and what are some ways to make money peace of mind in your financial plan, you’ll reduce anxiety, and position yourself to actually benefit from a possible pullback.

Next, automate your savings and investing by paying yourself first. If saving and investing is a manual or incidental process what are some ways to make money for you at the moment, it’s time to rethink your strategy. We teach and encourage our clients to pay themselves first. For most americans, saving money happens almost like a happy accident. If they happen to have a windfall or disposable income what are some ways to make money one month, maybe that money goes into savings, or maybe it’s just an extra indulgence they get to enjoy. Don’t let this be you.

Set up a “wealth capture” account that you automatically sweep a percentage of your income what are some ways to make money into every month, even before any bills are paid. Start with whatever is doable for you. Five to ten percent is a good start, but work up to 18-20%. When you automate the process of paying yourself first, you’ll be amazed at how much more resourceful you can what are some ways to make money become.

Once you’ve started the process of automating your savings, establish a clear target of what you want to set what are some ways to make money aside in a liquid account. We like to say cash flow is king, but cash is queen, so maintaining adequate savings that you can immediately access is what are some ways to make money critical. Build to a point where you have at least 6-12 months worth of expenses set aside in a liquid what are some ways to make money bank account that you can get access to within 24-48 hours if you had to. This is the next layer of peace of mind that what are some ways to make money affords opportunities to prosper when times get tough.

Once you’ve achieved your liquidity goals, the next step is to build up capital reserves that what are some ways to make money represent investment opportunities. Recessions can destroy wealth for people who are unprepared, but they’re also where the most wealth is created for those what are some ways to make money who are well positioned and prepared. They create opportunities to buy great assets on sale, only if you’ve established capital reserves to help you take advantage.

There are creative strategies that the wealthiest individuals, banks, and organizations use to put their liquid capital to work what are some ways to make money for them outside of the bank, without taking unnecessary risk. We work with our clients to take advantage of these what are some ways to make money opportunities to create savings vehicles that can return 3-6% long term tax-free interest on your money while creating opportunities to use what are some ways to make money your capital twice at the same time.

Second, we offer a complimentary strategy call with one of our what are some ways to make money team members. Our strategy calls are designed to serve you. We’ll work with you to clarify how you want your what are some ways to make money money to serve you, how it’s currently positioned to help you accomplish that, and what opportunities exist to help you accelerate your progress. You can request your complimentary strategy call by viewing our what are some ways to make money calendar here.

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