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 into the future. My goal: After reading this post, I want you to be able to associate some known value to each dollar saved. But first, let's see how … [Read more...] about How Much Passive Income Will a Dollar Saved Today Buy Me in the Future?
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 family member that works fewer hours than you do, but they seem to be doing very well financially. Are we jealous? Of course! Who wouldn’t want … [Read more...] about The One Thing You Need to Do to Work Less and Make More Money
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 calculator with one hundred different inputs if you'd like. But more than likely whatever that fancy gadget tells you will be no more … [Read more...] about How Much Do I Need to Save for Retirement? The Incredibly Simple Answer
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 women 79.4 percent versus men 74.1 percent). So why is this? Is it natural to hate other people's success? Could it be because we suddenly feel … [Read more...] about Overcoming Envy – Why Do We Hate Other People’s Success?
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 the most popular money-excuses "I don't make enough money to ever retire". You might think that the dream of financial freedom is … [Read more...] about How to Retire By 55 (or Sooner) on a Salary of $50,000 or Less
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 first. That means tackling your high-interest debt like credit cards and student loans. But what about our auto loans and mortgages? When it … [Read more...] about Should I Pay Off My Car Loan Early or My Mortgage?
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 extremely useful. But it’s also a strategy that comes with a few obstacles. First, let’s understand what after-tax 401(k) contributions are. Then … [Read more...] about How After-Tax 401(k) Contributions Can Take Your Retirement Savings Even Further
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 American adult watches 5 hours and 4 minutes of TV per day!) We’ve enjoyed other services like Netflix and Amazon over the years for movies and some … [Read more...] about How We Watch TV Without Cable and Save $1,140 Per Year
