I need this and I want this are two drastically different mentalities. It can mean the difference between broke or living paycheck to paycheck and having investments, retirement funds, and savings. Things you need are the things you have to have to survive or get by. Things you want are the things that are nice to have for your enjoyment, for your convenience, to satisfy a craving, or a pleasure. It’s the need vs want battle. Knowing what you need…
I always wanted to know if there was a term that describes the more money you make the more you spend. I recently found out that term is called lifestyle inflation. According to Investopedia, “lifestyle inflation refers to an increase in spending when an individual’s income goes up. Lifestyle inflation tends to become greater every time an individual gets a raise and can make it difficult to get out of debt, save for retirement, or meet other big-picture financial goals. Lifestyle…
One day, my daughter asked “What does living paycheck to paycheck mean?” My wife and I talk about finances all the time. She’s an accountant by heart and I always talk about early retirement so we’re always talking about finances and our children overhear us. My response as usual is to answer her question with a question. So I asked her what she thought it meant. I’m glad my wife and I have these open discussions because I know the…
I love to travel! But I love it even more when my travels are free or drastically cheaper. My friend introduced me to travel hacking and now I’m always on the lookout for the next best hack. As the Covid-19 restrictions are slowly being eased, traveling is going to be huge as we all want to get out of the house or go somewhere for vacation. Whether it’s a road trip, overnight trip, flying, or any other trip, getting the…
Inflation is something you might be hearing these days. What is inflation? According to Wikipedia, inflation is a general rise in the price level of an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. Should we be concerned of inflation? So what this…
If only I can go back in time, I’d do it differently. A common saying you may have heard or even thought about. Every time I think about the future and past, it always reminds me of the movie series “Back to the Future.” Time travel and the ability to change the past or the future. We all know that time travel isn’t real…or is it? If you ever had the chance to talk to your future self, what do…
The day finally came. My daughter opened her first checking and savings account. She was so excited for this day; as excited as opening presents on Christmas Day. She took all the cash she had from gifts and chores and deposited into her new account. She even created her own login to monitor her bank account. I was glad to see that she wanted to put more of her money into savings and a small amount in her checking. It…
I was listening to a podcast (I believe it was Choose FI) and the podcast hosts asked their followers who’ve retired or retired early, what advice would you give to those about to retire or planning to retire. It was great to hear the amount of advice people gave from topics about health care and taxes to mentally transitioning from an active work lifestyle to a retired lifestyle. Learn from those who’ve done it already. When I was much younger,…
An emergency fund is just what it says…funds used for emergencies. How well prepared will you be when life throws curveballs at you and you need additional money right away? I’m sure everyone will experience a curveball emergency at least once in their life and it will require money to get through it. Typically, these are unexpected which makes them an emergency. What kind of curveballs are emergencies? Death in the family, being laid off, medical procedure that keeps you…
Insurance is one of those things you know is there when you need it. It’s not like insurance will give you your money back if you never used it. Take auto insurance as an example. If you drive a car, you need auto insurance. What for? Well, it’s the law to have it in most states and the “just in case” factor. That’s what insurance is…just in case something happens. You get into a car accident, your car insurance will…