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Financial fundamentals all successful people follow

(FINANCE NEWS) There are a few financial fundamentals out there that all successful people follow which helps put funds back in their accounts.

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Find your funds in fundamentals

Personal finance is full of good, bad, and just plain weird advice. Most people are looking for the simplest advice they can implement. Thing is though, money is a deeply emotional and personal thing. Although there are over 17,652 personal finance blogs, with lots of good advice, everyone has a personal take.

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That being said, there are some universal truths to personal finance that can’t be ignored. Successful people pay attention to the fundamentals of personal finance because it empowers them to maximize your existing income to its potential.

BUDGEt

Can’t repeat this enough. Budgeting is the most fundamental skill.

Budget in a way that works and feels comfortable enough for you.

Have a plan on where you money goes every month and track those expenses. Whether it’s a paper log, an app like Mint.com, Quicken, or just tools built into online banking, or heck, even simple envelopes, budgeting is the single most important skill that successful people do.

AUTOMATE

Take advantage of automatic bill pay, transfers, separate accounts, payroll deduction, etc. This not only helps remove the human error, but you’ll save money on late fees. Also, you’ll get time, and nothing helps you be successful like more time.

DILIGENCE

Make sure you read contracts, research products, and are actively engaged in planning for your future. Planning ahead of time saves time and of course, money, by preventing you from making costly mistakes.

AUDIT

Check for mistakes on your credit report or your accounts statements. Check for charges for that monthly subscription box that you forget to cancel, or thought you canceled.

SIMPLIFY

This means asking yourself if every splurge is worth it. Do you spend too much on a service you don’t use? Do you have too many shoes? Do you pay for things you don’t even like? Less can be more, in that if you take out the waste and focus on things that make you happy.

And that less saves you money.

Also, don’t try and deny yourself all the luxury and small pleasures – it doesn’t work, it’s demotivating, and you shouldn’t be miserable.

SAVE

No matter how you save, make sure you do it. “Paying Yourself First” is a great thing you can remember, not just because of interest rates on debt, or being prepared for an emergency, (smart things!) but because as a philosophy it reminds you that your money is supposed to work for you.

NOTE: No financial plan will work for you unless it puts your needs front and center. Remember that. Saving isn’t just pocketing money for later, it’s investing in you.

Success is out there

These are just six little truths – we could come up with ten or a hundred and get into detail. If you like that kind of thing, there are TON’s of blogs (PS: AAA CreditGuide has a great list if you are interested.), books, and classes about personal finance.

Key thing here is about finding success for you: money that is meeting your needs and helping you live the best life. You need a good relationship with money, so you can focus on all the other things that matter.

#FindFundamentalsFindSuccess

Kam has a Master's degree in Industrial/Organizational Psychology, and is an HR professional. Obsessed with food, but writing about virtually anything, he has a passion for LGBT issues, business, technology, and cats.

Business Finance

Credit card companies crap on cryptocurrencies

(FINANCE NEWS) Credit card companies are now trying to make customers slow their roll when purchasing crypto – and it’s kind of shady.

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Visa and Mastercard and now making it more difficult for their customers to purchase cryptocurrency by slapping additional fees on transactions. This month, Bitcoin investors using Coinbase noticed additional fees on bank statements and were like, wait what?

Turns out, the credit card companies decided to reclassify cryptocurrency transaction type from “purchase” to “cash advance.”

Coinbase confirmed the change in an email to its customers, noting “the MCC code for digital currency purchases was changed by a number of the major credit card networks.”

A Mastercard spokesperson claimed the change “provides a consistent view of such purchases for both merchants and issuers.”

This means an additional five percent fee is slapped on to every transaction from the credit card company in addition to the four percent credit card processing fee Coinbase already passes on to its users.

Right now, if you want to buy Bitcoin or other cryptocurrencies instantly, your only option is using a credit or debit card. Transferring funds from your bank can take days, and since crypto prices can change in an instant, this isn’t a great option. Although there are lower fees for transferring funds via ACH, investors may get stung by fluctuating prices.

So basically, you’re going to use a credit or debit card for efficiency, but Visa and Mastercard want to make this harder on you. Unlike purchases, transactions labeled as “cash advances” don’t fall under an interest-free grace period. As soon as the purchase goes through, it accrues and compounds daily, so that’s pretty neat.

In addition to the new fee, cash advances carry higher interest rates as well.

Adding insult to injury, using a card for crypto purchases does not earn credit card points.

The card companies are equivocating bitcoin to withdrawing money from an ATM. This conflicts with the IRS’s stance that bitcoin is not currency, but rather taxable property.

Until everyone gets their stories straight, investors get stuck in the middle with more barriers to purchasing crypto, and conflicting regulation and processes.

And for Visa and Mastercard, that’s kind of the point. Their aim is to slow the rush of investment, even at the risk of losing potential millions in additional revenue. Assuming Bitcoin and other cryptocurrency don’t total crash and burn, eventually financial middlemen like credit card companies will be cut out of the picture.

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Business Finance

Don’t mess with Texas – especially when it comes to crypto

(FINANCE NEWS) The State of Texas is cracking down on crypto companies, and this won’t be the last cease and desist issued.

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After a one month undercover sting of crypto-currency startup DavorCoin, the Texas State Securities Board (TSSB) issued another cease-and-desist letter, ordering the cryptocurrency company to stop all operations in the state immediately; this is the state’s fourth emergency cease-and-desist in just one month regulating cryptocurrency companies.

Jason Rotunda, director of enforcement division at the TSSB told CNBC, “We confirmed our suspicion that they were being marketed toward retirees. [DavorCoin] was not disclosing the information that needs to be disclosed to an investor.”

Other cryptocurrencies being issued cease-and-desists include companies r2b coin, BitConnect, and USI-Tech Limited. All of these companies either were promising implausible or impossible returns on investment, low risk investments coming from Bitcoin mining–without the evidence to back it up, or not disclosing information required by state law.

After the TSSB pulled the plug on BitConnect, they started their investigation of DavorCoin for promising extremely similar ROI. DavorCoin also has another strike against it, a potentially more serious one: Investment fraud. DavorCoin, according to CoinDesk, has “intentionally hidden material information of its business–including its principles and business location, as well as how it plans to realize investment promises for investors.”

The lack of transparency on not just the basic information regarding the business itself, but also an investor disbursement plan violates sections of the Texas Securities Act.

Texas currently is leading the way regarding the regulation of cryptocurrenty investment opportunities, in which other states as well as the federal government are following suit. Other states filing formal complaints against cryptocurrency companies include Florida, North Carolina, Massachusetts, and Kansas.

The U.S. Securities and Exchange Commission, as well as the U.S. Commodity Futures Trading Commission, is taking note of the heightened amount of activity surrounding cryptocurrencies as well. Rotunda, also in his role as the vice chair of North American Securities Administrators Association, is trying to encourage regulatory agencies to adapt to this new way of doing business and investing.

“In both of those roles we’ve been monitoring cryptocurrencies quite a bit,” said Rotunda. “I think what we’re doing right now is we’re adapting to a new way of selling securities.”

The old adage is, after all, “don’t mess with Texas.” Especially when it comes to potentially defrauding investors through cryptocurrencies — but that’s kind of a mouthful.

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Business Finance

Fake crypto scam sends ransomware, then malware once you pay

(FINANCE) Buying unheard of ICOs just got much riskier as scammers find new ways to scam people out of their crypto investments while stealing their identities. Great.

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Cryptocurrency is hot right now. And while cryptocurrencies like Bitcoin are supposedly more secure than regular currency, that doesn’t mean that hackers aren’t looking for ways to take advantage of the trend.

A newly discovered ransomware scam banks on people’s desire to get rich quick by buying cryptocurrencies. The scam advertises a new cryptocurrency called SpriteCoin.

SpriteCoin isn’t a real currency; it’s just a ruse to get people to install ransomware. Often, SpriteCoin ads appear on forums where people learn about and discuss other cryptocurrencies, making SpriteCoin seem like the real deal (hence why social media sites are opting to nix all ads about cyrpto).

The ransomware is disguised as a wallet containing SpriteCoin. While your computer appears to be downloading the blockchain for your SpriteCoin, it is actually encrypting all of your files, while also raiding Chrome and Firefox for your stored passwords. Next, you receive a ransom note demanding that you pay up in order to get a decryption key, or else your files will be locked forever.

The ransom note demands payment in Monero, a cryptocurrency, to the tune of about $100. The note claims that “only we can decrypt your files. Don’t worry, we’ll give you your files back if you pay.”

To add insult to injury, once the Monero ransom has been paid, the hackers install additional malware that harvests personal data and gives hackers the power activate your webcam.

This ransomware scam was discovered by cyber security company Fortinet. Fortinet’s experts think that this scam, which is demanding a (relatively) inexpensive ransom, could be a pilot program for hackers to test out new delivery mechanisms for ransomware and malware. They want to see how many people will fall for the scam before scaling up.

Fortinet also explains that Monero is becoming the new cryptocurrency of choice amongst thieves using ransomware, because Bitcoin transaction fees have gone up and there is typically a delay on payments.

Cryptocurrencies could be a good investment – but make sure you do your research and only buy legit cryptocurrencies, lest you fall victim to such a vicious and repetitive scam.

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