Are you using the power of compound interest to your advantage? Have you ever wondered how compound interest works? Or better yet, why compound interest can make you so INCREDIBLY RICH over time? Albert Einstein has often been credited as famously stating "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." Great quote! But it just barely begins to describe shear potential behind this wonderful financial phenomenon. When used correctly, compounding interest is what can take your modest, periodic savings and turn it … [Read more...]
ETF vs Mutual Fund – Why My Money is with Mutual Funds
When it comes to planning for retirement and diversifying your investments, these days your choices pretty much fall between one of two major options – the ETF vs mutual fund. Recently while rolling over my old 401(k) to an IRA with Vanguard, I had to make a very big decision as to which way I wanted to go. I could stick with their low cost mutual funds which I was very familiar with. Or I had the option to pick commission free ETF’s. Having six figures of retirement savings, this was in no way a decision to be taken lightly! Choosing the right type of funds could mean saving myself … [Read more...]
10 Steps to Retire Early – What You Should Be Doing Right Now!
After reading enough personal finance blogs, this whole financial independence thing starts to sound pretty good! But what exactly are the steps to retire early? How does someone acquire enough money to never have to work again (if they choose)? What was the path that got them there? And more importantly, what are the habits and routines in our daily lives that we can adopt that will help make early retirement an option? You might be surprised to learn that much of achieving financial independence has less to do with earning a lot of money and more to do with how you go about … [Read more...]
The Top 7 Money Excuses That Hold You Back From Financial Independence
One of the greatest obstacles we have to truly achieving financial independence are the money excuses we make for ourselves. I love to talk to people about money! Yet I can’t help but notice how many times a conversation ends in “I could never do” or “why that will never work for me”. These excuses are the lies we tell ourselves to make it seem better when we’re not where we want to be with our money. It’s no secret why we do it. Excuses are easy! They’re a convenient place to run and hide when there’s real work to be done. But as the expression goes, “time is money”. And the … [Read more...]
How I Got My Property Taxes Lowered (And You Can Too!)
I'm all about challenging your bills and saving some money on your everyday expenses like your phone, cable, and insurance. But have you ever considered that learning how to get your property taxes lowered might be the mother-load in savings? That's what I did. And in one sweeping move, I was able to save $1,084! That's right! By protesting my county tax assessment, I was able to change the opinion of the value of the dirt beneath my feet and won! Here's how I was able to do this successfully, and how you can , and hopefully how you can too! The Back-Story: About 8 months after … [Read more...]
How to Become a Millionaire – The Simple Way to Save $1,000,000
Admit it – you’ve probably asked yourself “How do I become a millionaire?” more than once in your life. Don’t be shy! With all the images of happiness and security we see associated with wealth, how could you (or most anyone) not. Regardless of what your actual financial goals are, the act of having a net worth of one million dollars or more is still heavily regarded as quite an accomplishment! In fact, in a survey conducted by investment service Charles Schwab, less than 10% of Americans had accumulated a net worth of $1 to $5 million. So while 10% may sound like a small sliver of … [Read more...]
How This Couple Was Able to Retire Early After Just 15 Years of Saving
Do you think you need 30 years of saving to make your retirement happen? Do you think you need to make a lot of money? Or know what the best stocks are to invest in each year? Of course not! I’m a huge fan of early retirement stories of the everyday-man; stories that prove that good-ole fashioned saving, simple investing, and living within your means CAN and WILL provide you with not just the means to enjoy a healthy retirement, but (when used correctly) the opportunity to retire 20 years ahead of the typical schedule! One incredible example of this has been captured in the … [Read more...]
How Much Passive Income Will a Dollar Saved Today Buy Me in the Future?
Can you “buy” passive income? Of course you can! Essentially this is the whole point of saving your money and stashing it away for financial freedom (or retirement). "A dollar saved is a dollar earned" ... or so the old saying goes. But is this really true? How much is a dollar saved really worth in 10, 20, or even 30 years? Or to be even more practical, how much financial freedom can this dollar actually produce for me every year in retirement? In this post, we’re going to go through an analysis of the savings process and see just exactly how much each dollar translates … [Read more...]