19 reasons why you owe it to yourself & others to be rich

A lot of people think that if you are rich, you have to have taken from the poor. This is nonsense, because money is fluid; constantly moving. One paper denomination could circulate 10,000 times and as such is not a single exchange where someone gains and someone else loses. Money is simply a universal mechanism of exchange, a way to measure value, a unit of account and a future store of that value. It is not good or bad, right or wrong. If you can learn to leverage money to its full purpose and potential, rather than make it mean what you think it means, or how it makes you feel, then you transcend being a slave to money and you become a money magnet and master.

The most important fundamental of becoming a money master is to accept, believe and then own your right to be rich. It is your birth right. No one was born to be poor. Sure, some people less fortunate can’t help their environment and upbringing, but if you’re reading this you probably can.

Here are 20 great, real reasons why you shouldn’t just be rich, but it is your right and responsibility to be rich:

1. Your increased net worth increases your self worth

Which in turn lifts others up around you. The rising of tides lifts all ships.

2. You help others grow their wealth by growing yours, because:

a. You pay more people more money (because you can afford to)
b. You teach people what you know that helps them make money (which is the greatest gift of all and a more lasting legacy)
c. You inspire people, which creates a positive knock-on, butterfly effect of wealth (well being)

3. The more you make, the more you can give away

Pretty obvious, but many don’t seem to get that the more you earn and own, the more you can share and give. Charity starts at home, commit to wealth and to creating wealth around you.

4. Being broke restricts you from serving, solving & creating

You can’t do much that is creative or inspiring if you lack financial resources. Sure you can be creative, but an artist can do better work with better tools.

5. Being broke consumes resources in society, being wealthy produces them

If you have no money you have to rely on parents, the state and donors to help you get by. If you are wealthy you provide value and resources for others.

6. Being rich leaves a legacy for others to carry on

Money is not the only form of legacy, but it can finance most kinds; schools, libraries, hospitals, foundations and history.

7. It is one of the measures of your progress

Whilst not the only measure, making more money gives you feedback that you are growing, improving and progressing. It’s a useful measure and method of keeping score.

8. You can fund innovation, progress & improvement in important areas

Pretty much all progress is fuelled and financed by money. The cures of disease, the running for election, reaching the moon and Mars; the solving of man’s challenges is accelerated with money.

9. You can fund your passions

Some say that money doesn’t make you happy, but your passions make you happy. Some of those passions are expensive to fund and as such money funds your passion which makes you happy. Use money to fuel and fund your passions, and then share your passion with others to inspire them. Don’t wait until you retire to do what you love.

10. You can start a foundation & even reduce poverty itself

By creating vast wealth you can set up your own charity. A lot of people don’t like the fact that many charities consume most of the donations before they support their cause, so you can change this by starting a foundation, funding education and schools, libraries, hospitals, or simply donating your time to help the causes that matter to you. You can’t do this if you have no money to fund causes or your free time.

11. It will transmute confidence into other areas of your life

When I was skint (temporarily poor) I lost confidence in meeting people, socially, dating and my self employment. It seemed to exaggerate all the worse areas of my life. Conversely as I become more financially secure it increased my confidence in these areas. The rising of tides lift all ships. Money will not change you, but it will exaggerate your existing traits. So use it to do that as a force for good.

12. You will have a statistically better relationship

Half of marriages end in divorce, and most of those divorces are due to money problems. A lack of money will make all your problems worse, because it is the universally agreed mechanism of exchange, which enables us to do anything. Not having to worry about money will relieve stress in your relationships, leaving you to worry about the things that really matter.

13. Money makes you more of what you already are

It is a myth that money will always change you, it mostly makes you more of who you already are. Money will likely exaggerate your great traits (and your bad ones). You can expand your great traits by becoming rich, and use those to help others too.

14. Money gives you security & confidence

If you ever get stuck or get into hardship, you can pay your way out. You know you will always be secure, confident and strong, with a level of wealth behind you for protection. That enables you to get out there and do what you love with more volition. You never have to sell out, you can always follow your dreams.

15. You will attract other wealthy people

Wealth attracts wealth. We are attracted to people like us. The more riches you have. the more likely you are to attract the quality of peer group that lifts you up further. You can forge partnerships, raise more money for ventures and your causes, and meet some of the worlds most interesting people.

16. What you learn by getting rich you can carry into future endeavours

Being rich is a learnable skill, like any other vocation. The lessons you learn are great life lessons that you can carry into many other endeavours. It is also a great gift to pass on to your children, clients and people you care about.

17. You can put your kids through good schools/education

I don’t know a parent who doesn’t the best education for their kids. Private schools aren’t necessarily the best by default, but you can afford the best possible public, private or self education for your kids the more money you have.

18. You create many jobs

Wealth and riches create employment and opportunities. If you have a company it creates economy and increased local GDP by helping people fund their careers (and passions), and pay their overheads. The private sector funds most of the public sector too, so in creating jobs you have a cascading effect of money circulation.

19. You pay vast taxes

Despite some big companies reducing their corporation tax bill, they still pay vast taxes in business rates, VAT, employers AND employees national insurance, pension contributions, fuel duty, regulatory and accountancy, income tax and more. You are funding many of the public sector services by generating wealth, and that is good for the local, national and global economy.

There are so many reasons to be rich that transcend greed and power. Wealth contributes too, not just for your lifestyle, but those around you too. Let’s be honest, money does make you happy, or at least what good you can do with it makes you happy. Don’t be a martyr, stop worrying about how people will judge you, and go and create the wealth you deserve and do great things with it.

Source: https://robmoore.com/blog/19-reasons-why-you-owe-it-to-yourself-others-to-be-rich/

With a crisis in social care funding looming, here’s how you can plan to pay for yours

The combination of improving longevity and an ageing population means growing numbers will need some form of care in old age. Already, around 140,000 elderly people enter care homes each year in the UK, according to the government, and that number is set to rise as the baby boomer cohort ages.

However, while many elderly people rely for years on informal support from family or neighbours, formalised social care is expensive. Average annual care home costs run at between £30,000 and £50,000, depending primarily on whether nursing care as well as residential care is needed. Given that the average stay in a care home runs to around four years, total costs could easily top the six-figure mark.

• Benefits you're entitled to: the over-60s

Care in the home is harder to price because it depends what is needed, but bills ‘can easily run to several hundred pounds a week if an older person needs several care visits a day,’ according to Age UK.

Most families fail to prepare

At present, the state funding system requires people to fund their own care entirely if they have more than £23,250 in savings. Around half of those going into care each year do not qualify for state support and are required to fund at least part of their care costs; but as Stephen Lowe, communications director at Just Group, observes: ‘The level of awareness regarding funding care is almost nil’, and so most families do not have a financial plan in place.

So how can people meet these costs when they arise? One starting point is to seek out a financial adviser specialising in the complexities of later life and the care system. Jane Finnerty, director of the Society of Later Life Advisers, which on its website lists financial advisers who have gained the ‘later life adviser’ accreditation, adds: ‘specialist advice can demystify the situation.’

• One in four have ‘no idea’ how to fund the cost of care

In terms of funding, there are of course more choices open to wealthier people. Those with sufficient assets could ringfence part of their pension, which has the advantage that any funds not needed for care can be passed on to the family free of inheritance tax. However, the trouble with this solution is that it is impossible to predict what the final bill may amount to. For example, you might ringfence £100,000 within your pension, but that would only see you through three years of care.

Payment options

A care or immediate need annuity offers a solution. This works in the same way as other annuities, with the cost basically dependent on life expectancy; it can be arranged for a fixed term or for life. With annuity rates at continuing historic lows, it’s an expensive option, typically requiring £100,000 plus; but as Neil Adams, head of pension planning at Drewberry Wealth, explains: ‘If the income from the annuity goes directly to the care home it’s tax-free, so this might be a worthwhile consideration for those with larger estates.’

The benefit is basically peace of mind: first, there’s no need to worry about the risk of the money running out, which could force a move to a cheaper care home; and secondly, the rest of the estate can be safely allocated to the children and grandchildren. It avoids ‘catastrophic loss of assets’, comments Lowe.

• Best annuity rates this month

What about insurance? There are no specific care products that can be bought to protect yourself in future years, Lowe says. ‘The government would love the insurance industry to design one but it’s too hard to price, and also would require a large market – and that would mean much greater public awareness.’

Adams suggests a whole of life critical illness policy including total permanent disability cover might work. ‘In principle, this would pay out if serious health conditions arose and the payout could be used to fund care costs,’ he says. AIG is one of the few providers offering such a policy; for someone born in 1944, a £100,000 policy would cost around £420 per month.

Those without the wherewithal to pre-fund a care plan will probably have to fall back on the equity in their home. Equity release is an option, but Lowe warns it will only work for care at home; if you need residential care (and don’t have a partner still living at home), your property will be sold and the loan repaid.

• New inheritance tax allowance: five things you didn't know

‘Most people will need to accept that they either make plans to reallocate their property wealth when they are still in good health, or they effectively roll the dice and hope that their family home doesn’t end up under the hammer when any opportunity to protect its value will have passed,’ says Adams.

How to reduce a potential IHT bill

• Put a lasting power of attorney in place, to enable someone you trust to make decisions on your behalf if you are no longer able to do so.
• If you gift your home to a family member but continue to live in it, you will need to pay a market rent or the property may be liable to inheritance tax on your death.
• There is also a risk that the local authority will view the gift as ‘deliberate deprivation of assets’ to avoid care costs, and will tax the estate as though you had not given the property away. Specialist advice is crucial.