How to Get Rich Quick!

Jan 18, 2017 by

What’s the secret to getting rich quick?  Drum roll please…   You don’t : (   Getting rich slowly  is the secret to financial freedom.  The secret to reaching financial freedom is doing the little things day in and day out.  This includes spending less than you make, avoiding fees as much as possible, and saving with a plan.  These are of course only a few of the things you should do, but by doing the basic fundamentals of personal finance, you will over time achieve financial freedom. Don’t be distracted by the people or companies that tell you that getting rich quick is easy.  Anyone that tells you otherwise most likely does not have your interests in mind.  If you don’t believe me, consider the words of Warren buffet in this article.  ...

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New Year, New Goals!

Jan 1, 2017 by

2017 is upon us! Whether last year was a good one or not, we should create a new set of goals for the new year.  This is one of the most crucial steps in reaching financial freedom.  How can we reach freedom if we don’t know where we are going? Some of you may have never set a financial goal before. So, where do we start?  I’ve compiled a list of some ideas below to help get some ideas for your own goals: 1. Max out your 401(k) – take advantage of the tax advantaged investing accounts! 2.Create an emergency fund – you always want to be prepared for the unexpected expenses.   3.Payoff debt/loans – create a plan to eliminate (or reduce as much as possible) your personal debt 4.Re-evaluate your insurance – make sure...

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How much does that Pumpkin Spice Latte actually cost?...

Oct 12, 2016 by

True cost of  the daily coffee It’s fall again and time for everyone’s favorite pumpkin specialty drink, the pumpkin spice latte.  Last time I checked, this fall delicacy will run you about $5 at the corner coffee shop.  $5 doesn’t seem like much, but how much does that actually cost?  For those of us who are trying to save money or invest for the future, cutting out the daily coffee could be just the financial boost we need.     To Latte or not to Latte? Let’s do the math!  For our hypothetical situation, we are going to take the example of a huge coffee fan who drinks their $5 coffee every day.  If that person buys their coffee every day, it would cost them $35 dollars a week.  That corresponds to about $140 a month,...

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When to Start Saving for Retirement?...

Apr 26, 2016 by

When should you start saving for retirement? Now! Time is a major factor when it comes to investing.  The sooner you start, the better off you will be in the long run. Take this scenario for example: Steve is 25 years old and contributes $6,000 a year to a retirement account until he retires at age 60.  Assuming a standard 7% average return on investment over this time, Steve will have $887,480 when he reaches retirement. Not bad, huh? Cindy is 40 years old and also wants to retire at age 60. However in order for Cindy to retire with the same amount as Steve, she will have to invest over $20,000 each year just to catch up! These numbers are astounding! The reason for this difference is something called compound interest.  Essentially compound interest is your...

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Where to keep an emergency fund?...

Apr 20, 2016 by

The point of an emergency fund is to keep money safely set a side so that it’s there when you need it.  Although it may be tempting to invest your emergency money when the stock market is rising, try and resist! If you ended up needing your emergency money when the stock market is down, you will either not have enough money available or have to take money out when the market is down (smh).  The essence of an emergency fund is not to get high returns, but to money set aside in a safe location. A safe bet is to place your emergency fund in a high yield savings account. These tend to be in online banks, since they can offer higher rates (as they have no local branches). Here is a handy site to...

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The Rainy Day Fund

Apr 18, 2016 by

If you lost your job tomorrow, how long could you make it financially? Could you handle an unexpected $2,000 medical bill, and still stay afloat?   You never know what life will throw your way, so it is important to have some cash saved up for the unexpected. Having an emergency fund gives you a safety blanket to help cover life’s unexpected events, and also gives you the added benefit of the piece of mind knowing that you are covered.  This is, in my opinion, one of the first goals a person should save for. The amount you chose to set aside for emergencies is a matter of personal preference and financial status. Some people would say one should save 3 months pay, or even 6 months pay for emergencies.  However, I prefer to base...

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