Category: Money Management

So I Bought a New F-150…

So I Bought a New F-150…

I take pride in my frugal habits, especially house hacking (basically living in a 2,300sq ft luxury home for free).  When it came time to buy a car, shouldn’t it have been small and gas-efficient?  After all, a truck is a very non-mustachian vehicle.  To all my mustachian friends, I must simply say that I had different priorities than the money alone.  However, I was honest with myself about the true cost of ownership and had firmly evaluated the decision before pulling the trigger.  In sharing my reasons, I’m not advocating the purchase of a truck.  Instead, I’m trying to paint a clear picture of my approach to this large purchase.  I’ve now owned my truck for a year, and it was definitely the right choice for me.

Read More Read More

Optimize with a Good CPA

Optimize with a Good CPA

I’ve already started organizing for tax time, but it only means gathering my receipts and organizing my bills.  I have a great Certified Public Accountant (CPA) on my team who will be doing the actual preparation and filing for me, which means a little less work on my end.  I consider my CPA to be an MVP on my team, but not just because he will be preparing and filing my taxes.  No no no, he will be busy optimizing my return now that we’ve strategized all year

Read More Read More

Parents: Open a Roth IRA for Your Child

Parents: Open a Roth IRA for Your Child

Opening a Roth IRA is the biggest thing you can do to give your child (or your grandchild) a head start on their path to financial independence.  The money deposited today has the potential for 50-60 years of tax-free growth. You can open the Roth IRA for them at Fidelity. As the adult, you control the account until age 18, even if it’s in the child’s name.  (It does have to be registered with their social security number.)  At age 18, the account is theirs, so don’t tell them about the account until later if they are not good with money.  Just think of that extra 18 years of compounding before they even reach adulthood!

Read More Read More

Meet Your Friend, the Roth IRA

Meet Your Friend, the Roth IRA

I’ve been investing in my Roth IRA since I was 17.  I had landed my first job as a bagger at a grocery store and held multiple other jobs through college.  Each year, I diligently tucked away money that will be able to grow until age 60, which is over 40 years.  At certain points, my effective tax rate was essentially 0%, which is the ideal time to contribute.  Every penny withdrawn will be tax free, and $5,500 with 40 years to grow will be worth over $100,000* tax-free dollars without adding a penny more!  If you’re still young and paying minimal taxes, open a Roth IRA.

Read More Read More

How to Become a Millionaire

How to Become a Millionaire

The house, the cars, the corner desk and executive title, fancy vacations, private schools, private yachts, private jets, the glamour, the luxury, it all can become yours if you want it.  But is all that stuff really what you want out of your life?  Or is the thing you want actually the intangible quality that a millionaire has of simply not worrying about money because they have more than they need?  You don’t have to have a million dollars to be a millionaire.

Read More Read More

Hacking My Half-Million Dollar House

Hacking My Half-Million Dollar House

Living in a house has always been my preferred lifestyle choice, and getting paid to live in my house is even better.  When I moved down from Michigan, I had already been researching my area for 8 months.  The houses were extremely expensive, so I intended to get roommates to help with the cost initially and figured a partner could split the cost with me later.  The roommates turned out to be a disaster, and only brought in $1200/month anyway, so I decided a change was needed.  I tried hosting in my house for AirBnB in June, and found that it was far preferable to roommates, so I invested in the necessities to turn it into a solid business.

Read More Read More

Amazon Prime Perks You Might Be Missing Out On

Amazon Prime Perks You Might Be Missing Out On

I have a subscription for Amazon Prime, and I find it extremely valuable for more than just free two day shipping.  I end up saving more than the annual fee just from the extra services, so it’s worth it for me.  You still should always shop around when making purchases, and you can use CamelCamelCamel.com to check the historical price of your Amazon purchases.  If you won’t use any of the other perks, I still recommend just using free standard shipping for Amazon purchases over $25.

Read More Read More

I Finally Paid Off My 401k Loan!

I Finally Paid Off My 401k Loan!

Before closing on my second house, I would balk at even the idea of a 401k loan.  That money is earmarked for retirement, and is supposed to be growing tax free.  The loan is almost always a slippery slope that leads to less savings, especially since it’s mentally easier to take a second loan after the first.  The momentum from compounding/investing is lost when the money is taken out of the account.  There were small fees for my administrator.  I didn’t mind paying myself interest, but still.  Additionally, if I wanted to quit or was laid off from my job, I would have to repay the loan in full.  With great trepidation, I decided to take out the loan anyway so that I could purchase my house.

Read More Read More

Follow me on Twitter

Liked what you read?

Get new posts delivered directly to your inbox every Monday!

Join 239 other subscribers