Whenever I first get talking to someone about personal finances, one of the first questions they have is: How much do I need to save for retirement? It's a heavy question, I know! Save too little and you might end up having to go back to work when you don't want to. But set your target too high, and you might end up working harder and saving longer than you really need to. Believe it or not, the math behind figuring out how much you need to save to retire is actually amazing simple! ... As in just one calculation ... That's right. You can go online and find some complex … [Read more...]
Overcoming Envy – Why Do We Hate Other People’s Success?
We all want the best. We want it for ourselves, our families, friends, children, loved ones, etc. No one in their right mind ever wishes ill-will upon another, right? So why do we sometimes feel such a contradiction of emotions when someone we know has a good fortune? Why is it that we suddenly feel consumed by feelings of envy and disdain? According to a paper from the University of California, San Diego, feelings of envy are much, much more common than you might guess. More than three fourths of all study participants reported experiencing envy over the past year (more so with … [Read more...]
How to Retire By 55 (or Sooner) on a Salary of $50,000 or Less
If you’ve got dreams of retiring early by age 55 or sooner, then you’ll be very delighted to know: This is a goal that is definitely well within your reach! Believe it or not, our ability to reach financial independence is something that is completely dependent upon our own decisions. It doesn't matter if you're in your 30's, 40's, or any age. If you want to make working optional and retire by age 55, then you just have to be willing to stick to a strategy that will get you there. Forget about the things you think are holding you back. In no place do we see this more than in one of … [Read more...]
What Happens to Your 401(k) When You Quit Your Job?
Question: What happens to your 401(k) when you quit your job or switch to a new one? Your retirement security used to be a BIG consideration when it came to changing employers. In the old days of pension plans, if someone were to quit their job early, they could be potentially giving up life-long future monthly checks worth thousands of dollars! But that was then, and this is now. According to the website The Balance, the average person changes jobs 10-15 times during their career. What changed? A lot. But in terms of the future of your retirement savings, a big influence was … [Read more...]
Should I Pay Off My Car Loan Early or My Mortgage?
Question: If I've got a little extra money that I'd like to use responsibly to pay off one of my debts, which is the better one to put it towards: Should I pay off my car loan early or my mortgage? Ahhh … the old “which of my debts do I pay down first” debate … We tend to carry a lot of them in our society. According to a 2017 report from GoBankingRates, the top three forms of debt for most people are their mortgage (65%), credit cards (50%), and auto loans (32%). Usually questions like this are a no-brainer. Simply look to your loans with the highest interest rate and pay those off … [Read more...]
How to Stop Worrying About Money – 5 Effective Strategies That Will Improve Your Finances
It’s payday. You’re happy. But your joy doesn’t seem to last for long. You start to pay your bills one by one, and quickly the money leaves your checking account just as soon as it got there. In the blink of an eye, you’re pretty much right back to where you started … You’re living paycheck to paycheck, and you can’t stop worrying about money. And unfortunately, your story is not unique. According to a report from CareerBuilder in 2017, seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent from the previous year. If you think that … [Read more...]
How After-Tax 401(k) Contributions Can Take Your Retirement Savings Even Further
If you’re already contributing the IRS maximum amount to your 401(k) and would like to keep reaping the tax benefits, then I have good news for you: After-tax 401(k) contributions may be your ticket to the next level! It’s not very well known, but what most of us think of as the IRS max is actually just one piece of the puzzle. The actual total amount of money that the IRS will allow both you and your employer to contribute to your 401(k) plan is actually quite a bit higher: $55,000 (for 2018). For high-percentage savers and early retirement seekers, this information can be … [Read more...]
How We Watch TV Without Cable and Save $1,140 Per Year
Have you been looking for ways to cut your TV cable cord, but can’t quite find a service that will be comparable? If so, then I have good news for you: There are now plenty of good ways to watch TV without cable. And they’re reasonably cheap! Believe me. Finding good alternatives to cable TV was something we’ve been struggling with for years. As part of my quest to save more money and do more with less, we’ve been looking for a way to drop this $180 anchor. We like our screen-time just like anyone else. (Apparently, most of us do. According to the NY Times, the average … [Read more...]