Today I want to discuss IRAs. If you have not heard of them, they are an awesome retirement option for Millennials to utilize.
An IRA is an individual retirement account. Individually, you can put $5,500 per year into a Roth or Traditional IRA. With a Roth IRA, you contribute money after you’ve paid taxes on it and then your money grows tax-free. That’s actually a really awesome deal and usually the best investment option for Millennials. In a Traditional IRA, you put money in before you pay taxes on it. In addition, you can usually deduct this contribution from your taxes if you don’t already have a retirement plan at work or if you make less than $71,000 a year.
If you make under $133,000 (for 2017), you should invest in a Roth IRA. If you make over $133,000 (as an individual or head of household), you can invest in a Traditional IRA and then later convert it to a Roth IRA, to take advantage of the tax-free growth. It’s usually pretty simple and easy to do a conversion.
I find it’s easier to accomplish goals if I write them down. It acts as a reminder and makes me more accountable as well. So, I am going to start listing my goals for this year (and every year) here, so that you all can also keep me accountable and on track.
I will also do periodic updates throughout the year, so you can keep track of my progress.
When most Millennials rent, I decided to buy a house at the age of 28.
I actually bought a 2-bed, 2-bath condo in September of 2015. I decided a condo was much more practical to own than a traditional single-family house. I have a HOA that takes care of all lawn maintenance and snow removal. So, my days off aren’t wastedspent mowing a lawn, pulling weeds or shoveling a large driveway of 10 inches of snow (I live in Colorado, and I love snow but hate shoveling it).
I am not the typical millennial in this case. Most millennials rent and have no plans to buy a home any time soon. Mostly, because they cannot afford to break into the housing market.
“Homeownership rates among Americans under age 35 are barely more than half the national number, at just 34.1 percent” according to The Washington Post (link). However, even though most millennials ages 24-35 years are renting or still living at home, most are still in pursuit of the “American Dream” – homeownership. Millennials still want to buy and own their own homes just as the generations before us have.
Good Morning everyone! I want to talk about finanical independence and how to get ther today. It’s actually quite simple.
The definition of financial independence is: the state of having sufficient personal wealth to live, without having to actively work for basic necessities. The goal for financially independent people, is that their assets generate enough income and cash flow to cover their expenses. This is typically also the mindset of retirement, but you can reach FI before the average the age of retirement.
So, this is your path to financial independence! This simple equation will get you there:
y = (Your Money x (1 + i)^n).
Now, don’t freak out of me, yet! I will explain further. This equation only has 3 variables: how much money you invest (your money), the rate of return on your investments (i), and how many years your money is invested (n).
This is compounding interest. Albert Einstein stated that this equation was the “greatest mathematical discovery of all time”. And, it really is! Let’s put this formula to the test.
I have a very expensive hobby/passion. It’s probably not what most would consider as an expensive hobby, but it can be.
I love to read! There’s nothing quite like relaxing after a long, hard day at work with a book in hand (or, in my case, a Kindle Fire). I end up reading several books a month. If, I paid full-price for all these books, I would be spending thousands of dollars each year!
So, I had to come up with ways to save money, while also not depriving myself of the wondrous, reality-escape books can provide.
So, here are several ways to save money on books (for both eBooks and paperback/hardcover):