New to personal finance and money management? Start here to learn about the basics like paying off debt, saving more, spending less, and budgeting.
What’s the purpose of money? That’s not a rhetorical question. I’m inviting you to sit with this question for a moment. Ponder it. Pray / meditate / reflect on it. Why do you want to create wealth on your life? What’s the ultimate purpose? I’ve thought about this on a near-daily basis for the past…
Ready to rumble? There’s a fight brewing. Two contenders have climbed into the ring. Both are clawing for victory. Only one will survive. In one corner: Crush Your Mortgage, and his team of anti-debt advocates. In the other corner: Keep Your Mortgage, and his cheering crowd of leveraged investors. Who will take home the title?
Finance nerds have strange habits. Here’s one of mine: Once a year, I lock myself in a room with nothing but a laptop, spreadsheet, and boatloads of determination. The mission: Decipher my savings rate. Am I saving 30 percent of my income? 40 percent? 60 percent? As longtime readers might recall, my then-partner (now ex)…
Finish the following sentence: “My dream is _____.” Maybe you want to buy a house, or backpack Europe, or retire early. No matter what you want, having a Big Ol’ Heap of Savings makes each these goals a million times easier. “Gee, thanks Captain Obvious,” you’re probably thinking. “Easier said than done.” Do you think…
How often have you heard people defend flagrant spending with the following words: “Ah, c’mon. It’s only $25!” Hogwash. That’s the wrong way to think. The better mental shift is to think: “That cost one hour of my life.” **** Unless you’re magical, $25 doesn’t appear out of thin air. You get that money in…
Let’s see a show of hands: how many of you actually make a budget? (Silence. Crickets chirping.) Yeah, I thought so. One of the most overplayed pieces of financial advice is “make a budget.” There are a small handful of nerds who jive with this idea. You dig data. You love crunching numbers. Good for…
Imagine that you bought a $100 ticket to a ski resort in Michigan. A few days later, you find a $50 deal for a ski resort in Wisconsin. The $50 Wisconsin deal promises better ski slopes, nicer snow, and an all-around more fun experience. On impulse, you buy that ticket, too. Then you learn that the two…
This was originally published in 2012 as a series of separate blog posts. For the sake of simplification, we have consolidated these blog posts onto this one page that you’re reading. Unless otherwise noted, the information has not been updated, so all numbers and information reflect 2012. I’m changing careers. Well, sort of. About two…
Today’s letter comes from a 25-year-old reader named Chris, who asks: “Invest for retirement or pay down debt? This may be more of a personal choice than anything, but I have been subscribed to the ‘pay down your debt before you invest’ camp for about a year now. I should have my debt paid off by…
“Hey Dad, you can change your own oil and save $20 bucks!” “Honey, that’s not worth my time.” My Dad and I had this conversation in high school, and at the time, I had no idea what he meant. How could saving money be a waste of time? Now I get it. Traditional finance advice…