STOP THE SWIPE Tips for a Money Mindset Makeover
If you’re still feeling the financial sting of the recent holiday shopping season or struggle to pay off your credit card throughout the year, it may be time to rethink your spending routine. Most of us are guilty of impulsive shopping from time to time, but an occasional indulgence can become a dangerous habit if we’re not careful, especially with technology making it easier than ever to overspend. Here are three ways to curb the urge to splurge. Wipe your card info clean. There’s a reason why many apps and websites enable you to save your credit card information; it makes it easier for you to spend money! If you’re looking
to reduce how often you experience the rush of an instant purchase, enter your payment manually every time you go to check out. The extra time it takes to do so may be enough to help you realize whatever you wanted a moment ago isn’t as necessary as you thought. Choose paper over plastic. In addition to detaching your credit card information from your phone or computer, consider separating your card from yourself when you leave to go shopping. Carrying cash instead of card is a helpful way to slow spending. For one thing, it helps you maintain a set amount to shell out, which you’re reminded of as the dollars disappear. Second, cash doesn’t carry an interest rate. When you spend $4
on that cup of coffee you can’t resist, you’ll be out $4, not $4.80 when using a card that charges an additional 20%. Delay, don’t dive. There will always be purchases, such as tickets for a concert that sell out within minutes or a future flight that becomes pricier as your departure date approaches, that will require you to reach for your credit card as soon as possible. That said, there are infinitely more things that you simply don’t need … at least not right away. When you encounter something online or in a store that you must have now despite it not being a scarce item, give it at least a day (or, even better, a week) before making your final decision.
Selling a Family Business MORE THAN JUST A PRICE TAG
Selling a family business is about more than money; it’s about values, identity, and legacy. Many owners delay planning their exit because selling involves legal and financial complexity, and they’re focused on daily operations. For some, stepping away feels unimaginable. “People who have their own business, oftentimes it is their personal identity,” says Denise Rothermel, a financial planner and business valuation specialist at CAPTRUST. Among owners ages 55 and older, only 17 percent plan to sell or transfer ownership within the next five years, according to Gallup. [1] Without a plan, a business risks losing value or closing if the owner becomes incapacitated or the market shifts. “Selling a family business isn’t just a financial transaction,” says Rothermel. “It can be a deeply emotional one.” She recalls advising a couple who built a yacht restoration company. When a sizable offer came unexpectedly, they wondered: Could they get more? Were they ready for retirement? What about their employees? Before pursuing a sale, Rothermel urges owners to clarify priorities and legacy goals. “My job is to quarterback them through all of that,” she says. “Most people just think about the market valuation
of their business, but it’s not that simple.” Intangibles, such as keeping the business in the family or supporting a cause, shape timing, price, and structure. “It’s a balance of tangibles and intangibles.”
After reviewing the offer, Rothermel told the couple, “Yes, your company is likely worth more than that. But [the offer] gives you more money than you will need to live off of in retirement.” Optimizing for a higher price could take years with no guarantee. “Meanwhile, what if the economy changes?” A successful exit isn’t always about getting the highest price. Planning one to three years ahead allows owners to align goals with tax strategies and deal structures. Options include installment sales to family, trusts to minimize taxes, or employee stock ownership plans (ESOPs). “You might do a stock redemption and let your management team acquire it,” says Rothermel. Ultimately, the couple accepted the offer. “It gave them two to five more years of doing what they want,” shares Rothermel.
1. https://news.gallup.com/poll/657362/small-business-owners-lack-succession-plan.aspx
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