Do you pay taxes on the money you earn from your side hustle? If so, then he's a hack you'll want to know: Contributing to a SEP IRA can help lower your taxes as well as allow you to stash away more money for retirement! For years I’ve enjoyed making money on the side from blogging. But in the eyes of the government, that money is “business income”, and therefore taxable. So while it was fun to earn several thousand dollars per year, it wasn’t so great having to pay roughly a quarter of that money back into taxes every year. Just like all the steps I’ve taken to reduce my … [Read more...] about How We’ve Saved $1,000’s in Taxes By Contributing to Our SEP IRA
We all know that budgeting is the key to managing our money. But have you ever considered how an annual budget might work better than a monthly budget? Tell me if this is how budgeting usually goes for you … You take your annual income, divide it by 12, and then make a goal to not spend over that amount each month. Things might go well for a little while. But then you find that you’ve over-spent by $500 because of a bill you weren’t expecting. Then the next month its $1,000 more than you anticipated. Perhaps you’d like to buy a new car, but you’re unsure of how … [Read more...] about Monthly Budget Not Working? Why An Annual Budget Is Better
Admit it ... You’ve probably asked yourself “How do I become a millionaire?” more than once in your life. Don’t be shy! I can certainly tell you that I have. With all the images of happiness and security we see associated with wealth, how could you (or most anyone) not wonder about such a thing. 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 … [Read more...] about How to Become a Millionaire – The Simple Way to Save $1,000,000
It's pretty safe to say that if you want to do a better job managing your money, one of the first changes you're going to need to embrace is how to live frugally. I know, I know ... The word frugal makes most people want to cringe! Why? Because they associate it with another word that brings about unpleasant thoughts: Cheap! I think we can all agree - no one wants to be thought of as "cheap". And for good reason. The idea of people being cheap implies that they are being stingy with their money. It means you hold yourself back from buying the things you want or even need, and for no … [Read more...] about How To Live Frugally Without Being Cheap
If you’ve got questions about how 401(k) matching works, there’s only one phrase you need to remember: Don’t leave free money on the table! 401(k) employer matching contributions are one of the biggest reasons why American workers should utilize their 401(k) plans. Simply put, they are an opportunity to earn more money from your employer without any extra effort. When some generous employers match their employees’ 401(k) plans dollar for dollar, this is effectively the same thing as getting a 100% return on your investment! When was the last time you found an investment … [Read more...] about How 401(k) Matching Works – Don’t Leave Free Money on the Table!
Whenever someone asks “What should I be investing in?”, they’re usually looking for some kind of magic stock or once in a lifetime opportunity that will make them rich. But in reality, there is something far greater that everyone could invest in that will pay them back over and over again for the rest of their lives. It’s called their “financial education”. A financial education is one of the single greatest assets a person can have. Yet, for too many, it often gets ignored or even neglected altogether. Take, for example, the topic of saving for retirement. … [Read more...] about How a Financial Education Can Bring You Success With Money
Are you wondering about the benefits of starting a revocable living trust vs just a will? For years, my wife and I put off what we know we have to do as responsible adults and parents, and create a will. Without a will, the courts decide what happens to everything you leave behind: Your kids, your money, the house, the family dog, … everything! Ask yourself this simple question: If my spouse and I were to get hit by a car tonight, is there anything in place to protect all of those things I just mentioned? If the answer is “no”, then you absolutely need to sit down and do a little … [Read more...] about Why We Started a Living Trust Instead of Just a Will
Question: Is it possible to retire on $500K (i.e. $500,000) in your 50’s and 60’s? Unfortunately, not all of us are great savers. Most financial articles will recommend that you’ll need at least $1 to $2 million dollars in savings before you can even consider retirement. But the reality for a large segment of the population is anything from that. To give you an idea, a study from the Government Accountability Office found that those savers between the ages of 55 to 64 have an average of just $104,000 in their retirement accounts. This is not surprising at all. With the … [Read more...] about How to Retire on $500,000 In Your 50’s or 60’s
The foundation of any solid financial freedom plan is in knowing the best ways to budget your money and save effectively. It’s absolutely fundamental to preserving your wealth. Have you ever wondered why so many lottery winners end up going broke a short while after winning? Fortune reports that nearly a third declares bankruptcy within 5 years. You’d think that all those millions of dollars would solve their financial problems. But as it turns out: If you don’t know how to budget your money normally, than more money isn’t going to make a difference. But “budgeting” … [Read more...] about The 10 Best Practical Ways to Budget Your Money and Save More
Saving your money into a 401(k) or IRA can have some very powerful wealth-building benefits. But clearly one of the biggest drawbacks is that you’re not allowed to access your money for years or even decades. If you try to take it out sooner, than you'll have to pay a penalty! So what happens if you need the money now? What if life becomes difficult and you need to pull the money out for some kind of emergency? Or what if you have done an excellent job of managing your finances and would like to retire early? How can you work around this problem and gain early access … [Read more...] about When Can You Withdraw From Your 401(k), IRA, and Other Retirement Savings?