Personal Finance

Curb Emotional Spending with These 6 Mindful Money Tips

It’s common to treat yourself to something sweet when you’re feeling down, or celebrate achievements over dinner. However, little “treats” may be emotional spending in disguise. If you’re frequently feeling guilty for buying things you never use, you may be an emotional spender, and this budget-breaker may be more common than you think.

In a recent study, over 49 percent of Americans have purchased products in an attempt to spark happiness, and 30 percent of those regretted it. With the holidays coming up, stress, family issues, or holiday excitement may heighten your emotions. To curb holiday emotional spending, read our tips below or skip to our infographic.

What Is Emotional Spending?

Emotional spending is when you buy something you may not need to ease your emotions. These emotions could range from stress and sadness to happiness and celebration. Emotional spending can also be categorized as impulse spending — these purchases are in-the-moment decisions to buy something unneeded or out of budget. An example of an impulse purchase may be buying a new set of headphones when you went to the store for coffee creamer.

If you have a tendency of making last-minute emotional purchases, you’re not the only one. As roughly half of consumers admitted to buying products to boost their mood. And, each emotional purchase costs, on average,

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3 Reasons to Set Up a Donor-Advised Fund to Maximize Your Charitable Tax Deductions

Using donor-advised funds is a more advanced tax strategy that has gotten more popular recently with the introduction of the Tax Cuts and Jobs Act (TCJA) in February 2020. The TCJA nearly doubled the amount of the standard deduction, which makes it less advantageous to itemize deductions such as charitable contributions. For people with a lot of charitable contributions, donor-advised funds are one option to still get a deduction for charitable contributions.

What is a donor-advised fund?

A donor-advised fund (DAF) is a registered 501(c)(3) charitable organization that accepts contributions and generally funds other charitable organizations. While the concept of a donor-advised fund has been around for nearly 100 years, they were typically only used by the ultra-wealthy. And while it is true that donor-advised funds are still not going to be useful for the vast majority of people, recent tax law changes have made their use more prevalent.

You can set up a donor-advised fund with most brokerages, including Fidelity, Vanguard, and Bank of America. You can donate cash, securities, or other types of assets to the DAF. The exact list of assets eligible for donation depends on the brokerage. After you have contributed, you can then make charitable contributions from the balance of your account.

You can maximize your charitable tax deductions in one year

One common

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Why UGMA/UTMA Accounts Are the Perfect Holiday Gift

If you have a special child in your life, you may be wondering what to put under the tree this year. One long-lasting and truly meaningful way to show the child in your life that you care is by taking a few minutes to set up a UGMA/UTMA account and give them a leg up in life.

The earlier you open a UGMA or UTMA account for a child, the longer your initial gift has to grow, thanks to the magic of compound interest. For example, investing just $5 a day from birth at an 8% return could make that child a millionaire by the age of 50. By setting up a UGMA/UTMA account, you’re really giving your beneficiary a present that grows all year round. Now, that’s a gift they’re sure to remember!

What is a UGMA/UTMA account?

UGMA is an abbreviation for the Uniform Gifts to Minors Act. And UTMA stands for Uniform Transfers to Minors Act. Both UGMA and UTMA accounts are custodial accounts created for the benefit of a minor (or beneficiary).

The money in a UGMA/UTMA account can be used for educational expenses (like college tuition), along with anything that benefits the child – including housing, transportation, technology, and more. On the other hand, 529 plans can only be used for qualified educational expenses,

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What is Passive Income? (12 Best Passive Income Streams)

Try a quick Google search like, “how many millennials are broke?” and you’ll probably find a concerning list of headlines: “Are Millennials the Brokest or Richest Generation?”, “Millennials Aren’t Breaking Traditions. They’re Just Broke”, “Further Proof That Millennials are the Brokest Generation,” to name a few.

To say making ends meet as a millennial is challenging is an understatement. The good news is that there are plenty of ways you can supplement your income without having to work extra on the weekend. It’s called passive income. From making investments on the stock market to becoming an influencer, odds are, you can find a profitable path that works for you. In fact, earning passive income has become quite popular. Deloitte recently reported that 8 in 10 millennials said they’d consider taking a job in the gig economy (which can include passive options like Airbnb), instead of or in addition to their full-time job.

If you’re curious about making some extra cash with minimal effort, this post is definitely worth a read. To skip ahead, simply click on the links below — or read all the way through for an extensive overview of the best passive income opportunities.

What is Passive Income?

Passive income is a source of income that requires minimal effort to achieve. Income from a rental property,

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6 Ways to Instill a Positive Money Mindset

Many of us know what we’re supposed to do when it comes to basic money management – spend less than you earn, save an emergency fund, and invest for retirement. However, establishing good habits is always easier said than done.

Money management, like many important things in life, requires discipline. And discipline isn’t a natural mental state for everydiv. Add to that the guilt and shame that some of us carry when it comes to finances, and you have a recipe for money management misery. Or, at least, a sense of why the “ostrich approach” can seem more appealing than tackling underlying issues.

But, as appealing as it may seem, there is not a single financial guru advocating the ostrich approach as a means to achieving financial fitness! In fact, going that route will only serve up more guilt and shame in the long run.

Fortunately, there are some relatively simple steps you can take to move from negative feelings and lack of discipline to a positive money mindset and great habits.

So, let’s go!

1. Forgive Yourself for Your Financial Mistakes

There are likely few people who can claim that they have NEVER missed a credit card or bill payment, never gone on an impromptu over-spending session, and never raided their savings for no good reason. If you are

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10 Tips for Making Money by Selling Websites

Building profitable websites has never been easier.

One of the distinct advantages is that these websites can be created with just a bit of knowledge and very little start-up capital. In most cases, all that’s needed is a domain name and hosting account, which can be purchased from any of the major providers for around $100 per year.

The lack of any major barriers-to-entry has made this an attractive model for those with little cash and plenty of time. With the right niche topic, a built-from-scratch website can go from nothing to earning $1,000, $2,000, or even $5,000 per month in as little as 12 to 18 months.

A lesser-known business model that’s been gaining traction is the building and selling of these websites to portfolio investors. Usually priced at a multiple of the site’s monthly earnings, a $1,000-per-month website could sell anywhere from $15K to $25K in upfront cash. Many website builders prefer to sell their sites and use that cash injection to build out teams to repeat the process many times over.

If this model interests you, here are ten tips to help you get started:

1. Niche selection (and keyword research) is key.

Don’t bother targeting an industry. Instead, target a subset of that industry or a “niche.” Smart Passive Income and Dumb Passive Income have a

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