So, yeah, about that budget...

The holidays are right around the corner and many are prepping their wallets for large spending months in the near future.

From Market Watch, Americans racked up on average $1,054 in the 2017 holiday season. Half of people could pay off in 3 months. 29% would take more than 5 months. 10% would only be able to make minimum payments on their credit cards.

THIS. IS. BANANAS.

Before we get into some tips and tricks to get the most bang for your buck- let's begin with the trite notion of not living beyond your means.

Warren Buffett stated this in regards to stocks but rings true in daily life. "It is insane to risk what you have and need in order to obtain what you don't need."

If you have lost your job, you don’t need to be spending on family members as if you still have an income. Buying your child the newest pair of Nikes could mean not being able to put food on the table at some point.

It may be a tough conversation but as adults, we have to recognize when you may be in a difficult financial situation and it is necessary not to overextend yourself and end up in financial despair.  

And, of course, I will follow that advice with a photo of a Gulfstream only because it's way prettier than a Delta Airbus 320.

HOLIDAY TRAVEL.

Mix and Match Flights. Sites like Priceline can mix and match airline carriers in order to get you the best deal. Possibly one leg will be on United and another on American. Maybe you will have a connection. Every little saving helps when you will be traveling for possibly both Thanksgiving and Christmas (Hanukkah, Kwanzaa- whatever your jam is.)

Cab It. If you’re flying, maybe Uber to the airport depending on how long you will be gone and how expensive parking is- those tabs can add up.

Skip the Luggage. Try to pack only carry-on’s to save from 1) your luggage being lost at a busy time of year but 2) the bag fees that are going up. Most airlines now charge $30 for your first bag and $50 for the second. Multiply that times two for a round-trip.

Road Trip! Close enough? Skip the flight and drive. Oil has been at record lows due to oversupply making gas prices pretty cheap.

HOLIDAY ENTERTAINING.

You are the host with the most! It is always gracious to host a holiday. A lot of planning is involved and usually a LOT of money. Food, drinks, decor, the little things can really add up.

Have a plan for how much food you will need. Try and buy in bulk to save if you're entertaining groups of people. Also, if people are staying at your home, use the leftovers from the night before to make breakfast the next morning.

Eggs with hams and leftover veggies is not a bad idea. You can also use that leftover champagne for mimosas ;)

HOLIDAY SHOPPING.

Set a Budget. 1st step is to determine how much you can comfortably spend. Look at your upcoming expenses, current credit card statements, bank account and form a plan from there.

Make a List. Begin with a list of items you are buying for friends and family. Write down the item and how much you hope to spend *stick to it!* I will spend $x on the kids, $x on my spouse, etc.

A Deal Isn't Always a Deal. Cool your jets on the “deals” your getting during things like Black Friday. Keep in mind stores use a technique called “anchoring” to make you think you’re getting a crazy deal. Most retailers mark-up items about half. Meaning if they paid $50 for a product, the sales price will be $100 (minimum- lots of stores mark up even more.)

So when you see that glimmering 20% off- know that isn’t REALLY a deal. It’s anchoring. It is telling you the price WAS $100 and now its only $80- when in reality the item is worth $50. Of course its always better to save a bit of money if it’s something you’ve really been hankering.

Just don’t get tied up in thinking you have to buy something because you’re getting some crazy, amazing deal.

Get Creative! Save your bucks and DIY! Head to a craft store and come up with a unique idea. My friend Catherine used her Polaroid camera to snap pics at parties over the holidays and then got inexpensive, cute frames to put them in and gave those as gifts. It’s the thought!

TIPS & TRICKS.

Cash Only. Roll like Migos and Ellen and stick to cash. Hit your bank before the mall and withdraw your chosen an amount, of say $600 to spend on gifts, remove that in cash and don’t touch that card! Using cash makes you more cognizant of what your spending.

Migos keep like $100k on them at all times so maybe do a bit less than that.

Clip the Coupons. For online, look for free shipping and discount codes. For in store, look to see when their sales are starting. Also, check their websites before heading to the physical store as they might have coupons to be used in store.

Prepare for Pop-Ups. Buy a few generic gifts. If someone drops by a present and you feel obligated to give one back- it’s nice to have a couple spare candles or bottles of wine to give in return.

Just remember what the holidays are really all about...ALCOHOL *kidding*- - my family does take it pretty seriously though as you can see above ;)

Overall, don’t get so wrapped up in “stuff.” It is hard work to make money. Throwing it away frivolously on things you don’t really need is just wasteful. Maybe if you all have enough “things” find a charity to donate to. If you want to do good without spending any bucks, go volunteer.
 
These holidays tend to be about excess and when you’re done it can be pretty exhausting and depressing if you’re going to return to a bank account with 23 pending charges. Be smart. Your friends and family will love you no matter how big or small the gift is. Sometimes the gift of just all being together is enough.

Happy holidays to all of you and your families!

xx,
SH

You can still register to vote (*note originally published in September). In most states, papers and voter information must be done 15-30 days before an election so don't wait too long. Summer is already over and November will be here before we know it. Check out the Voter Registration website to learn more and check when your states requires you to be registered here.

Also, Refinery29 put together a guide of what you need to vote and other election day information.

Finally, there's a lot of "fake news" out there. A good go-to guide is 270ToWin where I got a lot of the information in this post.

Hope this provided a brief breakdown of what to expect in the coming weeks. Always remember how lucky we are to live in a Democracy where our voices are able to be heard. Not everyone in the world has this privilege.

xx

School is back in session! Now, guaranteed, college kiddos are far more concerned with Animal House like ragers at KA than which credit cards are going to help them down the road.

But let's put these Natty Light and chicken-on-a-stick purchases to good use, shall we?!

There was a great piece in the WSJ today titled Year-by-Year College Education in Credit Scores.

How can students use their four years at school to build a good credit rating and put themselves in a better position post graduation.

Let's start with the stats above. A 22-year-old has a FICO credit score of 651 (the range is 300-850) on average and $2,012 in credit card debt.

Generally as students get older and graduate, they open more credit cards and then rack up more debt as their lifestyles become more expensive and "adulting" begins.

So, let's break this down year-by-year with some tips on how to multi-task your partying, I mean studying, with building for your future.

Freshman Year. Baby steps- parents can add their child as an authorized user on one of their credit cards. Warning to only do this if the parent themselves has a good credit score. If the parent doesn't, this could end up hurting your student from the start. Also, maybe have the talk of what justifies an "emergency" or else you could get some mass bar-tabs from Thirty Thursday. Oh wait, the drinking age is 21- never-mind! ;)

The 2nd option which distances parent from child is a secured credit card. This card works essentially as a debit card as it is funded by depositing cash. The student would spend his/her money each month and then replenish it after paying the bill.

18 is the age at which students are able to begin requesting their credit score information. Using Experian or a similar credit bureau can help them understand how credit is built and why it is important.

Sophomore Year. Headed back for year 2! At this point- some kiddos might have a car by now- maybe not a Porsche like Elle Woods but making car payments on anything getting them across campus to that astronomy lab. Parents may be making the car payments while students pony up for gas- better for their credit score- flip this arrangement! If the student cosigns and makes said payments, it will help them down the road. However, most kids are focused on school and maybe don't have a part-time job so this burden could be too heavy. Evaluate your families personal situation and go from there!

Paying cell phone or utility bills formerly haven't helped credit scores. However, students living off campus can now use Rental Kharma or ClearNow to have those payments reported to bureaus (albeit, make sure they are being paid in full and on time.)

First unsecured credit card- try and gas or retail credit card the author says! Keep the balance low- never more than 30% of your credit line even if you're able to pay off more.

Junior Year. Classes getting a bit harder now, eh?! At this point- if students can make a small dent in that student debt, they will be money ahead. Even if more loans are going to be needed, any payments will be reported and can help credit scores.

Keep trying to move forward with your credit cards as well. If you haven't graduated from your parents CC, try a secured CC, if you have a secured CC, try a retail or gas card. Retail or gas card? Try a full credit card from your bank.

Senior Year. Almost there! If you don't have a credit card at this point- definitely apply based upon your personal situation. Underwriting standards make it easier to get a card albeit the limit may be lower.

If you have a card, try and negotiate for lower annual fees or APR. Although having a lower APR will save you money, the best way to save money is simple: be able to pay your bills every moth. It's not always possible for everyone and we recognize that. But life will be much easier if you don't start off with student loans AND credit card debt. Loans may be inevitable but daily spending is up to you.

The road after this is an exciting one. There will be peaks and valley's and sometimes being an adult is going to hit you hard but everyone has to grow up! There are ways to make your life easier or harder and keeping a level-head on your spending will surely ease your anxiety for the years to come.

Living in debt because of irresponsible spending or simply just not making cognizant efforts to stay in good financial standing will hurt your ability to provide for your family in the future.

Everyone has a different situation and some are much more difficult than others. But really, don't make your life harder than it needs to be. Make a concerted effort to control your spending, borrow wisely all while enhancing your credit score will lead to a much nicer life.

xx

Fan of the president- not a fan of the president. Doesn't matter. But there are certain things we Americans cannot deny.

Like the fact our economy is thriving.

Whether or not you think President Trump is responsible for this is beside the point. I think it is vital to understand what is going on fiscally in our country as social issues tend to take over the headlines and the state of our country can seem a bit, well, depressing.

Fiscal stories are what some, well, maybe lots would deem boring. Here is brief (hopefully not confusing) synopsis of how the American economy is doing:

Today, Gross Domestic Product (GDP) numbers were released for the 2nd quarter of 2018. GDP is released for each of the 4 quarters of the year (similar to companies- although corporations fiscal years may not begin in January.)

1st quarter = January 1st -March 30th. 2nd quarter = April 1st - June 30th...you get the idea.

GDP is detailed in Barneys, Bergdorfs & Bill$, but basically it is the best way to measure a country's economy. It is the total value of everything produced by all the people and companies in the country- if they are located within a country's boundaries, the government counts that production into GDP.

Gross Domestic Product = Personal Consumption Expenditures (how much Americans spend on goods) + Business Investment + Government Spending + (Exports - Imports)- - hang in there, this gets simpler.

Nominal vs. Real GDP: real values are adjusted for inflation, nominal values are not- with this, nominal GDP values will appears higher.

Inflation: the rate at which the general level of prices for goods and services are rising. When inflation rises, the power of your currency (our dollar)- falls.

Don't let the words confuse you- it may seem complicated but the principle is simple.

Understand inflation is why people invest their money. They invest to make a return. While it may seem more safe to stash your cash in your bank account- due to inflation, your money is devaluing. The goal is "price stability." Not too much inflation, not too little.

So what did today's report say and what does that say about our economy?

First half of 2018 results:

• GDP grew at a rate of 4.1% in Q2. That is the 2nd best pace for a second quarter result since 2014 (that would be President Obama era- republican or democrat, you cannot deny numbers!)
  • The main causes: increase in consumer spending & business investment. Increases in the latter can be attributed to the fact we have an environment not vilifying business. There have been significant rollbacks in financial compliance laws that were an immense burden to companies in both a time and monetary sense.
    • White House Budget Director, Mick Mulvaney said, as discussed above, deregulation has likely had the most impact as companies feel comfortable committing capital.
  • Tax cuts. The tax cuts for individuals and corporations are without a doubt an influence of the increase in consumer spending and business investment.
  • Overall, we have a very business friendly environment in America currently and these numbers reflect that fact.
• Estimates from Q1 readings were revised up from 2% to 2.2%. Basically, more information can trickle in over time to give a better picture of quarters past.
  • Above is a chart showing GDP results from the past 6 quarters.

What else?

• Back to our calculation of GDP, government spending and an increase in exports led to the rise in GDP.
  
  • Government spending- investments in our infrastructure, road, railways, sewer systems.
    
  • Exports- the goods we produce in the U.S. and sell to countries abroad. It is ideal when exports outweigh imports (we are selling more than we are buying.)
    
    • A caveat to this is the China soybean industry. There will be tariffs imposed in the coming weeks, therefore this was an attempt to get this done before.
      

Tariffs. You have no doubt heard the conversation revolving around tariffs, most notably, the battle with China.

So what's the skinny and how does this factor into our economy?

• Tariffs on foreign goods and retaliatory tariffs by other countries actually help the cause. It may seem counterintuitive, but foreign buyers bought more U.S. goods before tariffs kicked in (back to the increase in exports this quarter.) This led to higher revenue and in turn, higher GDP.
  
• Sometimes companies will stockpile goods when they know tariffs are coming. You might question- well, won't this just all revert once the tariffs are imposed? Maybe- we still don't know what the tariff picture will look like yet.

In a nutshell:

• Fastest pace for a Q2 GDP rise since 2014 to 4.1%.
• Record consumer spending, some question if this is sustainable.
• Business investment exceptionally high due to tax cuts and deregulation.
  • Federal government revenue significantly declined because of said tax cuts. While this benefits individuals and corporations, the downside is our deficit is ballooning. The U.S. debt clock sits at $21 trillion.
    
• Government spending on the rise with infrastructure.
  
  • Same issue as above- we are taking in less (federal tax revenue) but still spending the same. It would be like losing your job yet still spending the same amount of money as when you were employed.
    
• Large amount of exports due to impending tariffs.
• Inflation is tepid but potentially rising depending on tariffs.
  
• Unemployment claims dropped to 208,00 during the week of July 14- the lowest reading since December of 1969.
  • While unemployment is at historical lows, wage rates are not keeping up.
    

And as you can see above, not everything is hunky dory but overall, fiscally, things are going well.

It is easy to be consumed by the "gloom and doom" on newspaper headlines and mainstream news.

These stories sell, and don't get me wrong, obviously not everything in this country is going swimmingly, but these figures released today are something Americans should be proud of.

You can credit whomever you like with these successes. I tend to agree with the idea that if things are going well, Presidents may get too much praise. If things are going poorly, Presidents may obtain too much flack.

A lot of what goes on is not necessarily a direct result of their actions but a combination of many elements and potentially have been years in the making.

The soon to be retiring CEO of Goldman Sachs, Lloyd Blankfein, said this at the World Economic Forum in Davos, Switzerland this past January and I think he nailed it:

I like a lot more stuff than I don't. The stuff I don't like is not as substantive. Some of it is, and some of it is social aspects. I've said this, but I don't want to be hypocritical either.

I've really liked what he (President Trump) has done for the economy and I think he's gone out of his way to be very, very supportive of the system.

Frankly, I want to honor that.

We are America.

I'm not a huge TV person. I'll engage in a couple guilty pleasures- Real Housewives, I'm shamelessly a sucker.

But I tend to stick with financial news on CNBC. As far as shows go, I migrate towards anything having to do with business. Succession on HBO is a newbie but, in my mind, there is absolutely nothing that touches my absolute obsession.

Billions on Showtime.

The main character, Bobby Axelrod is the hedge fund magnate behind Axe Capital. It is hard not to desire and be in awe of this Metallica blasting, sports car driving, multi billionaire alpha male.

A crash-pad with sweeping views of Manhattan to his Greenwich home base to a palatial pad in Southampton on Meadow Lane, he makes what he coins "F you money."

Many draw parallels to former SAC Capital boss, Steve Cohen. SAC Capital was fairly synonymous with insider trading. In 2010, the SEC opened a case. By 2013, the firm had plead guilty to the charges and many indicted. If you are familiar with the case and enjoy the show check out, Black Edge.

So is he corrupt? Yes. This is the entire premise of the show. How close to the law can you skirt before you get caught. How manipulative can you be to make an immense amount of money while keeping the SEC off your scent.

As narcissistic as he seems, he is a fairly likeable character many would say. He is the face of capitalism. Coming from nothing, he worked until he made it. Caddying for arrogant businessmen who now ask him for money.

The show has celebrity cameos from real life business tycoons- the likes of Sara Blakley of Spanx to hotelier Jonathan Tisch to Avenue Cap boss Marc Lasry.

The show is complicated with life, business and the insatiable desire to live on the edge. Incredibly accurate & well written, the Showtime original is directed by a slew of people familiar with financial markets, of which include Andrew Ross Sorkin of CNBC's Squawk Box.

This show is riddled with pithy one-liners that serve as major business motivation (the legal way, let me clarify.) Here are a couple quotes that embody the power, drive and lust for more that have shaped the first 3 seasons.

"You don't have to outswim the shark. You just have to outswim the guy you're scuba diving with."

"No one quits while they're ahead. This isn't France. It's America."

"Calculation is not something to be scoffed at. It's a tool. A tactic. And I use it proudly and often."

"I like nightmares. When I wake up, they leave me deeply valuing my reality."

"You know your shopper isn't your friend. Your personal trainer doesn't actually think you're making progress and all the charities you give money to don't actually honor you when they honor you."

"The fact you can't fully understand that doesn't mean he's wrong. It just means you haven't gone beyond your own limits."

"Foolishness is right next door to strength."

"A lot of guys watch Bruce Lee movies. Doesn't mean they can do karate."

And the grand finale:

"What's the point of having f*** you money, if you never say f*** you?"

"The moral of the story is, you get one life, so do it all." 

The old adage of two brains being better than one still rings true. I mean, look at these two fellas. Bill Gates has long championed Warren Buffet as being his mentor. Not a bad choice.

Some have one mentor. Some have two, ten... No matter the number, one way to think of these mentors or people of admiration is your "personal board of directors" (P.B.O.D.)

Every company, public or private, must have a least one director. The mandate of said director, or directors as per Investopedia, is to establish policies for corporate management and oversight, making decisions on major company issues. Within public companies, the B.O.D. represents the shareholders.

But that's for the company. What about for you?

In this weekend's Wall Street Journal, Microsoft Executive Vice President of Business Development, Peggy Johnson, lent her insight into the people she leans on as her system of checks and balances. "She largely relies on her gut when making big decisions but then 'validates her intuition' by checking in with valued former colleagues, mentors and family as independent advisors."

From a former colleague at Qualcomm, to the CEO of Ulta Beauty to the President of Liberty Media who helped her adjust when she was appointed to her first board seat, Peggy has stacked her roster full of people who have supported her & whose opinions she deeply values.

You only know where you've been, therefore it is vital to tap into and develop genuine relationships with those that may not always know MORE than you, but have had different experiences than you, or have been around the block a few more times.

Check out some famous duos below and their testaments to the value of a P.B.O.D.'s.

Sir Richard Branson. Founder, the Virgin Group.
Mentor: Sir Freddie Laker. Founder, Laker Airways.

• "It’s always good to have a helping hand at the start. I wouldn’t have got anywhere in the airline industry without the mentorship of Sir Freddie Laker...If you ask any successful business person, they will have had a great mentor somewhere along the road.”

Oprah Winfrey. Chairwoman and CEO, HARPO and the Oprah Winfrey Network.
Mentor: Maya Angelou. American poet, Civil Rights activist.

• “She was there for me always, guiding me through some of the most important years of my life...Mentors are important and I don’t think anybody makes it in the world without some form of mentorship.”

Tim Cook. CEO of Apple.
Mentor: Steve Jobs. Former CEO and Founder of Apple.

• "The Steve I knew was the guy pestering me to have a social life, not because he was being a pest, but because he knew how important family was in his life, and he wanted it for me, too...There are lots of these things where you saw the very soft or caring or feeling or whatever you want to call it side of him. He had that gene. Someone who's viewing life only as a transactional relationship with people...Steve didn't do that."
  

Tony Bennett. Jazz musician.
Mentor: Frank Sinatra. Jazz musician.

• "I was his favorite and he was my favorite, and I couldn't get over it. He was a phenomenal artist, a great singer and a wonderful person...I felt nervous about an audience. He taught me an audience are your friends, they've come to see you. He changed my whole psychology about performing."

The lessons learned from mentors are endless. Configuring a personal board of directors will pay major dividends down the road. Who knows, you might even succeed them one day (David Solomon will take the reins after Lloyd Blankfein's retirement.) Mentors come in all forms:

• The Challenger. The member who will question you. Why do you think this is the best decision? Where do you think this will lead down the road? The items posed are never easy to answer and that is the mark of a great personal board member.
  
• The Connector. The rarest of members. Connectors are outward-facing people whose very satisfaction comes from helping people meet each other. They have a wide and very deep network of people who all respect them and they often "get things done."
  
• The Cheerleader. The member who boosts your self-esteem. Never superficially but always with the intention of training your wings to be strong enough to fly on your own.
• The Coach. The member who is the wise veteran. Not always in terms of age, but someone who has faced adversity, struggles or successes you may find down the road. How to react, capitalize and pivot to create your best life.

It is important to discover the people whose personalities, integrity and work ethic you admire and then place them on your team. It doesn't always have to be an explicit "will you be my mentor"/"will you be on my personal board."

They know, and you know. Personal relationships are incredibly sacred and given constant effort to maintain & grow, can be incredibly valuable.

Swimming, hiking, campfire songs and pitching tents are SO old school when it comes to summer camps.

Meet the new era of summertime recreational activity for your kiddos: Stocks, Entrepreneurial Skills and Personal Finance camp.

"With names like Camp Millionaire, MoolahU, Future Investors Club of America and WhizBizKids, these camps are designed to appeal to parents who want to teach their children the basics of money management, or support budding Warren Buffetts and Steve Jobses who show an interest in business"- WSJ.

One would assume, the kids going to these camps are quite exceptional children. Ages vary as does the curriculum. From active and passive income, to building investing skills to lending tools to children who one day hope to begin their own start-up...these kids will have a leg up in the future.

It only makes sense lots of these camps are popping up around the start-up capital of the United States, Austin, Texas.

Spurred by necessity, camp founders realize the lack of financial education children receive while in school. Per the WSJ article linked above, only 16 states require any economics work during K-12. Only 7 states require personal finance curriculum.

An independent program, Junior Achievement, has been offered in schools for sometime now. The non-profit relies on business men and women from surrounding communities to donate their time to speak and lend business insights to classrooms.

I have fond memories of my father being the instructor for my 5th grade class. The kids enjoy being treated like adults. Gaining knowledge on topics usually left for the "grown-ups" may be confusing at times, but empowers young minds.

As far as formal curriculum implementation, some parents are not going to wait for schools to make the first move.

Family demographics of kids attending these camps show they come from two types of parents. Wealthy couples who don't feel as if they can alone teach their children about the value of a dollar. The second are parents who wish they themselves could have been more financially successful and yearn to provide those opportunities for their offspring.

An important highlight of these camps however - lots of times it is not the parents idea. It is the kids.

15 year old entrepreneur, Ben Aubin, has attended a financial literacy summer camp since he was 8. Since then he has started miscellaneous small companies and has created 3 apps...at 15!

These camps mean business. No cargo shorts, backpacks and tennis shoes. Many require kids come suited up as they would for a job interview. They learn to work in teams as we all do in formal business environments. Developing business plans in which they present at the end of their program, these kids get a small sample of the "real world" before heading back to school in the fall.

Kids earn "pay checks" during camp and then learn to pay taxes from their earnings, balance a budget and delve into how debt works on a basic scale.

Stocks and bonds are topics many camp-goers find deeply interesting. Post camp, parents will help their children set up small brokerage accounts funded with summer earnings from their own small businesses or savings from birthdays, etc.

What about letting kids be kids opponents argue?! The majority of these kids LOVE this stuff!

Their interests differ from others their age. These camps are only for a couple weeks during the summer which leaves plenty of time for running around the park with friends.

Kids leaving these camps and have set off to start their own small businesses for the rest of the summer, empowered by what they have learned and the freedom their parents have bestowed upon them.

As the article alluded, these kids could be the next Buffett, Gates or Jobs. Or simply just financially literate, hard-working people trying to achieve the American Dream.

No matter the long term outcome, I believe it is wonderful people are championing these programs that are deeply needed.

No matter your occupation, we all have bills. Learning these skills while you're young instead of once you're thrust into adult life will pay dividends down the road. 

Dimon 2024! I can see it now...well...maybe not. Our friends at CNBC estimate a 20% likelihood that the chairman and CEO of JPMorgan Chase stages a run for president. Couldn't be in 2020 because he has vowed to stay on board at JPM for at least the next few years.

We can dream!

Each year, like most CEO's, Mr. Dimon releases a letter to shareholders. His is more anticipated than most (Larry Fink of BlackRock generates pretty equivalent hype.)

Jamie's 47-page letter was released today. So why does the Street, politicians and business people worldwide value his opinion so much?

Remember that little recession in 2008? When the U.S. was teetering on the edge of financial collapse, 9 CEO's of the worlds largest banks were summoned by the U.S. and New York Fed Chair's, the Treasury Secretary and the head of the FDIC (Federal Deposit Insurance Corporation.)

Gathered in downtown Manhattan, these 9 men collectively controlled $9T in assets, or 70% of the U.S. financial system.

If you have seen the movie Too Big To Fail, this was that ominous scene in the large conference room. As part of many negotiations and mass lending's, the Fed teed up a deal for JPM to acquire failing Bear Stearns.

$700B later, of the 9 CEO's, only 2 survived and continued to lead their firms- Goldman Sach's Lloyd Blankfein and, of course, Jamie Dimon.

One can assume this guy "just gets it."

He is not without his controversies. From the memorable 2017 Delivering Alpha appearance where he declared Bitcoin a "fraud." To being the poster child for inflated executive compensation as he harbors a net worth of over a billion dollars. Above is his family Christmas card that raised eyebrows citing opulence. Isn't a Christmas card supposed to be fun?!

As Bobby Axelrod on Billions said: "When did it become a crime to succeed in this country? America used to salute the guy in the limousine. They wanted to be the guy in the limousine. They still want to. But now they throw eggs at it."

Whether you think he is overpaid, overrated or one of the greatest business leaders of our time, Mr. Dimon does not mince words. No one can accuse him of being anything but a staunch capitalist. Dimon has a great pulse on the economy as a whole and has provided immense value for JPM for the past 12 years.

Below is a summary of said letter. Small government, less regulations & praise for POTUS.

On JPMorgan's Initiatives:

Use of Capital. "We much prefer to use our capital to grow than to buy back stock...We currently have excess capital, but due to recent tax reform and a more constructive regulatory environment, we hope to use funds to grow our businesses, expand into new markets and support employees."

Risk Management. "When people talk about banks, it sounds like we are taking big bets...This is the complete opposite. Every loan we extend is a proprietary risk. Every new facility we build is a risk...We perform extensive analytics and stress testing to challenge our assumptions...We try to manage the company such that all possibilities including the worst case-scenarios cannot hurt the company."

Employee Opportunities. "The path to opportunity begins at a young age, but too many young people, particularly from disadvantaged backgrounds do not get a fair shot." JPMorgan is investing $350MM to support demand-driven skills training along with re-entry programs for individuals that have been out of the workforce or incarcerated.

Diversity. "I believe the door to diversity opens when you run a great company where everyone feels they are treated fairly and with respect."

On Business as a Whole:

Brexit. "We are prepared for it to be a hard Brexit. It essentially means moving 300-400 jobs around Europe. The worst outcome would be much of London's financial center moving to the Continent over time."

Employment. "It may well drop to 3.5% this year, and there are more signals that businesses will improve CAPEX and raise payrolls. Wages, jobs and household formation are increasing."

Regulation. "Excessive regulations for both large and small companies reduced growth and business formation. Ease of starting a business worsened with small business formation dropping to the lowest rate in 30 years."

Trade. "It is not unreasonable for the U.S. to seek more equitable terms."

Corporate Taxation. "We had a hugely and increasingly uncompetitive tax system driving companies capital and brainpower overseas...the article (below- 'A Politician's Dream is a Businessman's Nightmare') provides excellent advise for our legislators and regulators...The current administration is taking steps to reduce unnecessary regulation by insisting congressional rules around cost-benefit analysis be properly applied."

On Markets, the Fed & Economy as a Whole:

Volatility (Commodities/Tariffs) "I am a little perplexed when people are surprised by large market moves. Oftentimes it only takes a an unexpected supply/demand imbalance of a few percent and changing sentiment to drastically move markets...Oil, cotton, corn, aluminum...each industry or commodity has continuously changing supply and demand."

The VIX. "Same for stocks, bonds, interest rates and currencies. Changing expectations whether around inflation, growth or recession, supply and demand, sentiment and other factors can cause drastic volatility."

Economic Growth. "We have had subpar economic growth over the last 8 years. Our growth cumulatively in this expansion has been about 20%. A more normal recovery would be 40% by now."

Quantitative Easing (QE). "As long as rates are rising because the economy is strengthening and inflation is contained, it is reasonable to expect the reversal of QE will not be painful...QE has never been done on this scale before so the effect on asset prices, confidence, CAPEX, and other factors cannot possibly be known."

Rate Hikes. "We have to deal with the possibility that the Fed and other central banks will need to take more drastic action...People underestimate the possibility of higher inflation and wages, which means they might be underestimating the chance the Fed will have to raise rates faster."

We have an incredible country but, as seen above, we are not without our flaws.

Jamie Dimon's perspective lends to the idea of more rational and comprehensive moves from our government.

More ways to make America competitive. Stop practices that are hindering us and start enacting change to grow our country for years to come.

Not all credit cards are created equal. In fact, not all credit cards are credit cards. Some are what is known as "charge cards."

Charge cards are different from a credit card and different than a debit card.

A debit card is essentially a direct withdrawl from your bank account. Swipe your debit card and automatically this money is deducted. A debit card is used at ATM's etc. There is a bit of a risk to using a debit card for all of your purchases.

Think about it. If someone obtains this number, they essentially have direct access to your bank account. Although banks have safeguards and would usually alert you in the event of someone withdrawing large amounts of money.

If you bank with Wells Fargo, for example, your debit card will be with Wells Fargo.

Your charge and credit cards will be linked to your bank account but when you swipe either of these, the money is not automatically withdrawn.

So something I have experienced first hand (I like to share my poor choices with you all so you don't make the same!) is I am severely lacking in proving my creditworthiness for a few reasons.

Post college I was fortunate to have no student loans. No home (AKA no mortgage). No car note, etc. Basically, this just means I have no debts or money borrowed in which I have to repay. Which is DEFINITELY good in many ways.

One way it is bad, is that if I were trying to purchase a home, rent an apartment, lease a car, I have nothing to show that I am a good risk and that a bank should lend money to me.

I knew I needed to start building credit, so fresh out of college I applied for a credit card.

SYDNEY CORRECTION. I applied for a charge card.

Thinking I had done sufficient research, I sprung for the American Express Gold card. This card came with massive reward travel points therefore it was a no-brainer.

Now, American Express cards are NOT credit cards. They are charge cards. What's the difference?

A charge card MUST be paid in full every month. This was not an issue for me as I was only ever spending what I had in my bank account. You cannot roll your balance month to month as you can with a credit card.

This card forces you to watch your spending. If you can't pay, then you face a penalty. The benefit is that you never have to worry about paying interest on your balance.

The card above, the Chase Sapphire Reserve is a CREDIT card. Credit cards only require you pay some set minimum amount each month. As long as you make the minimum payment, you are able to rack up charges and carry them month to month.

This is beneficial if you are in a situation where you cannot pay your bills each month. You are buying on CREDIT; essentially being given a loan.

But this is not free. You are charged an Annual Percentage Rate (APR) on your outstanding balance.

Generally, if your credit score is lower, you will pay a higher APR as a penalty.

Quick recap on credit score. The FICO credit score scale goes from very poor at 300 to perfect at 850.

Your credit score is something you consistently need to work on because having a better credit score saves you money. A higher credit score shows you are a responsible borrower, therefore you will be charged a lower APR, insurance will be cheaper, etc.

So how did I find out my credit score is v mediocre?

So, this is also a note for people who live in large cities like myself who might not have a vehicle. I am no longer covered under my parents insurance. I had rental insurance on my condo and that was it.

Even though I don't have a car, I will occasionally drive my friends or families cars. Guess what? I wasn't covered. Long story short, if you live in a city and don't have a car you obviously don't need auto insurance because there is no car to insure. Be sure to look into an umbrella policy for liability suits and/or a non-owned policy (besides the point, just food for thought.)

Anyways, trying to purchase this insurance, I realized my credit score was extremely low. How? I pay my bill on the dot every month.

However, I have never been BORROWING any money. I have been using a charge card, my AMEX. Therefore even though it is borrowing in a sense, it is not figuring into my credit utilization rate.

I know, Mafee. It's confusing. Credit (or debt) Utilization Rate is what portion of your credit limit you are using to borrow (charge cards don't have credit limits.) If you have a $10,000 credit limit on your CREDIT card and have a balance of $1,000, your CUR is 10%. Lower is better. Spending less is better. Showing you are a controlled spender is key.

Having a charge card (as long as you pay it off,) doesn't hurt your credit score. It just doesn't help as much as a credit card. Credit limits are the main things reported to credit bureaus, hence the main way your credit score is calculated.

As it makes sense, getting a CHARGE card is more difficult than a CREDIT card. Being required to pay off your debts each month makes it necessary to have credit score of at least 700 in order to qualify.

"They were practically GIVING it away." "I couldn't afford NOT to buy it!"

Sound familiar? I have definitely said both of these things before...OK...maybe more than once. Although, sometimes it might be said in jest...see below Birkin "sale".

WOW...a whole dollar! Makes a $13,500 purse look like a steal (kidding!)

The principle is true, however. When you see the word "sale" or "clearance," shoppers are more likely to buy said product because they feel like they are getting a deal. Bartering without the hassle of actually negotiating.

Our brains are manipulated into thinking we are getting a good deal by a thing called "anchoring." Behavioral economist, Dan Ariely, asked a class of MBA students to write down the last 2 digits of their social security number. They then held a mock auction. Students with a high number bid 346% more than students with a low number. A completely random number manipulated what they were willing to spend.

Now think back to the last time you were in a department store. One pair of shoes were $400, full price. Another were $2,500 but had been marked down to $999...which do you choose? The cheaper pair or the pair where you feel you're getting a deal?

Just like in the movie, Confessions of a Shopaholic (can anyone believe it didn't win an Academy Award?) Isla Fisher and the crowd of women above, flock to a sample sale where things are supposedly, massively discounted.

Whereas if you were at a department store, you might take a step back and think about the item. If you are led to believe everything is an incredible deal, you are much more apt to throw down your card immediately.

This is true for designer goods, TV's, cars etc. The MSRP (Manufacturer's Suggested Retail Price) is just that...suggested. $87,350 is the MSRP for the above Range Rover. If the dealer was willing to sell it to you for $7,000 less than the sticker at $80,000, would you think it was a deal? What makes you believe this ride is truly worth that amount? Because the company said so? Because celebrities push them around L.A.?

A lot of this has to do with comparisons. An article by USA Today discusses how comparisons make us feel superior. Having a nicer car than friends, living in a nicer house than our neighbors, carrying more expensive bags, etc. Call it human nature and human flaws!

Money does not buy happiness, but it sure buys everything else. However, living beyond your means or constantly buying, solely to "Keep Up With The Joneses", will probably lead to an unhappy life and an empty wallet.

Remember these "anchors" next time you're in the market for anything, big or small.

Original Piece: Jeff Stibel, author of "Breakpoint" and "Wired for Thought"
https://www.usatoday.com/story/money/columnist/2018/03/13/learn-trick-and-youll-spend-less/412610002/?utm_source=dlvr.it&utm_medium=twitter
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