What brings you joy? For Marie Kondo, it's not an existential question. In The Life Changing Magic of Tidying: A Simple, Effective Way to Banish Clutter Forever, joy is a principle that enables you to refine and create a life that's filled with the things you love.
While tidying up does take work (okay, a lot), it's rewarding and encourages you to question the things surrounding you. Since its release, the book has sold millions of copies and sparked entire internet communities on YouTube and the blogosphere to document their journey through the book's decluttering stage.
It's no secret that Americans like to shop and the popularity of the KonMari method and minimalism, a lifestyle practice that advocates for living with less, provides an alternative to impulsive shopping and consumerism. Many practitioners of KonMari and minimalism attest that simplifying their possessions has dramatically affected their happiness and productivity.
Because KonMari requires you to physically touch your belongings and ask if they spark joy, it's hard to make excuses for keeping the items you don't really need or love. One of the most liberating parts of KonMari is that empowers you to toss (or donate) that hideous sweater someone gifted you years ago. With Kondo, there's no reason to hold onto something you don't love. Through saying goodbye to items we don't love we help them find their way to someone that will.
If the things we own are an expression of how we live and the things we buy are an expression of how want to live, there is no better question to ask of ourselves than "Does this bring me joy?" No, we can't get rid of every responsibility (dishes, we're looking at you), but we can decide where we invest our time, money, and energy. The bare necessity doesn't have to mean the bare minimum, and the KonMari method inspires readers to pursue a life filled with the things and feelings that are irreplaceable.
The Federal Reserve sets the guardrails for the federal funds rate, and through that helps control the money supply for the nation.
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
diy gifts
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.
