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, seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent from the previous year.If you … [Read more...] about How to Stop Worrying About Money – 5 Effective Strategies for Better Money Habits
Do you know about flexible spending accounts (FSA’s)? You may have heard of them from your HR department and wondered: “How would this benefit me?” or “How does an FSA work exactly?”Believe me - These were the same types of questions my wife and I had when we were first getting started in our jobs years ago and looking for every angle we could to save a little bit of cash.At first glance, an FSA seems like just another thing taking money out of your paycheck. For most of us, that’s a deal-breaker. Between taxes, social security, and our retirement contributions, … [Read more...] about What Is a Flexible Spending Account? How Does an FSA Work?
What to do with $1,000? What a great problem to have!According to a survey reported by Fox Business, the majority of people receiving their tax refunds (one of the most common ways we find ourselves with $1,000 or more) plan to use it to pay down their debt (27%).While paying off your debt is certainly a smart use your windfall, it’s by no means the only way or (in some circumstances) always the best way to invest $1,000. There are lots of other choices to consider that could have just as important financial benefits.Whether you’ve managed to come in … [Read more...] about What Are the Smartest Things You Can Do With $1,000 Right Now?
Did you know that you can use a 72t distribution to get early access to your 401(k) or most any other retirement account before age 59-1/2 ... WITHOUT having to pay a penalty?One of the biggest obstacles we face when we're saving for retirement is the rule that we have to wait so long in order to finally use it.For years, I had a goal to retire early (long before age 60).But I was completely stumped by how I was actually going to be able to take money out of it.I remember being in my young 20's and thinking "what good is using a 401(k) if I have to wait almost 40 years to get … [Read more...] about How to Use a 72t Distribution to Get Money Out of Your 401(k) and Retire Early!
If you’re looking to retire in your mid 50’s and want to be able access your retirement nest egg, then I’ve got some good news for you: The 401(k) Age 55 Rule might allow you to accomplish your goal of early retirement!As most people in the U.S. know, when it comes to retirement planning, the IRS says you have to wait until at least age 59-1/2 to start withdrawing funds from any tax-deferred retirement accounts such as your 401(k) or IRA. Otherwise, you’ll have to pay a pesky 10% penalty along with any applicable taxes.If you’re an early retirement seeker like, then this … [Read more...] about The 401(k) Age 55 Rule for Early Retirement Income
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
When it comes to retirement accounts, there's one debate that almost everyone must consider: A Roth IRA vs. Traditional IRA - Which one is better? What are the differences, and how do I know which one is the right one for me?As someone who has both a Roth and a Traditional account, let me tell you: Each one has traits that can be very valuable to you in their own way!In general, no matter which one you choose, you’re doing a great thing by taking advantage of a unique opportunity from the IRS to save and grow your money without having to pay taxes right away (or in some cases, … [Read more...] about Roth IRA vs. Traditional IRA – Which One Is Better for You?
Have you ever wondered when to drop collision and comprehensive coverage from your auto insurance policy?Without a doubt, auto insurance is a must-have when your vehicle is relatively new, higher in value, and you need the financial protection.But what happens as time goes on and our vehicles begin to decrease in value? What about when you've racked up hundreds of thousands of miles, and you know the trade-in value of your car will be next to nothing? Is there a point where full coverage simply doesn't make good financial sense any longer?This is a question I struggle with every … [Read more...] about How Do You Know When to Drop Collision and Comprehensive Coverage?
Have you ever thought to yourself: What's the least amount or minimum retirement savings I could get away with?Don't be bashful about asking it. It's a perfectly valid question to consider; especially when you think how little retirement savings most people actually have.(In case you're wondering, its $107,000 for Americans between the ages of 55 and 64 according to data from the Government Accountability Office (GAO).)While the major media outlets would have you believe that you need somewhere between $2 and $3 million dollars, you might be pleasantly surprised to learn that … [Read more...] about What is the Minimum Retirement Savings You Could Comfortably Live On?
As humans, we tend to value a lot of different qualities and abilities in ourselves. But when it comes to appreciating the value of knowledge, this is one asset we tend to underestimate.Consider this: Would you say you're an "expert" at something?Don't be too humble. According to the author Malcolm Gladwell, author of the incredible book "Outliers", it takes at least 10,000 hours to become a master at something. While that might sound like a crazy amount of time to invest into something, chances are that you may have already put that much time into your favorite hobby or … [Read more...] about Never Underestimate the Value of Knowledge