Taxes are a big cost, but takes priority after getting your spending in control and learning about index funds. You want to pay all the taxes that you owe, but you need to take advantage of all tax advantaged accounts. 401k and 401k equivalents delay paying taxes which allows your full amount of money earned…

An index is a list. An index fund is a list of companies that the fund buys blindly. Index funds are the easiest and best investment for several reasons. First, index funds are extremely low cost. An index fund may have an expense ratio as low as .03%. Some Fidelity funds are free. Unlike most…

Everyone knows the story of Goldilocks. She wants the porridge that is not too hot and not too cold, but just right. Similar can be said for buying a house. Buying too small of a house is the lesser of two evils. However some financial gurus go to the extreme by trying to live in…

The acronym IRA sounds complex, but they are extremely powerful and relatively simple. IRA is short for individual retirement account. Instead of an employer providing this account; you can make your own. Opening one at Fidelity, Charles Schwab, or Vanguard will take you about 10 minutes at most. Currently in 2023, you can contribute up…

In my last post, we learned about compounding and in my hypothetical example Mary worked from 25 to 67 and saved an impressive 1.5 million by only saving $200 a month during that duration. We are going to have another hypothetical person, Emma. Emma is born and her parents want to make her a multi-millionaire…

Einstein is attributed with the saying “”Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Using my example of Mary who is able to save $200 a month from age 25 until age 67 earning 10% annually. She will have more than $1,548,000 after ten…

Substancial wealth is not made overnight or doesn’t even require an extremely high income. In the book, “The Millionaire Next Door” the primary premise is that many millionaires just saved a large percentage of their income and spent very little. Ironically, the people flashing Rolexes and driving fancy depreciating assets / cars have spent their…

The word millionaire evokes images of suited CEOs and executives sitting around a table in a high-rise in NYC, NY. However according to the largest study on millionaires performed by Ramsey Solutions the third most profession of millionaires was a teacher. This should be surprising. I was initially surprised when I heard it. As Americans…

Geo-Arbitrage has become a popular term in the post Covid world. In its simplest form it is living in a low cost of living area while having the benefit of a higher cost of living job. With the rise of remote work this generally means remote work. However, I have been benefiting from geo-arbitrage in…

I am sitting here with less than a week left of my 12 weeks of parental leave from working as a federal librarian. My newborn daughter is in her automatic swing sleeping in front of me, while my three dogs sleep around my small house located in rural middle America. My job is very comfortable…