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...]
The One Thing You Need to Do to Work Less and Make More Money
I’m very sure that just about everyone has thought about how they can work less and make more money at some point in their professional career. And why not. The U.S. is one of the most over-worked developed countries in the world. Our mantra for generations has been to simply put more hours in when we want a bigger paycheck. Yet … we all know there are outliers. I’m sure you can think of one. Everyone has that one guy or girl in the office that seems to never be there or be very busy. But then they (appear to) make way more money than the rest of us. Maybe you know of a friend or … [Read more...]
How Much Do I Need to Save for Retirement? The Incredibly Simple Answer
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...]