No, this isn’t an unfinished post, accidently published. Instead, it’s a reminder that our financial lives always are a work in progress as we earn, spend, and save to maximize our happiness.
Our every-day decisions involve balancing current desires with the future rewards that come from delayed gratification. But at what point does trading our time [...]
Have you heard that advertising campaign about people almost helping their neighbors? It’s a powerful message. Sometimes we think about doing good, but we fail to follow through.
The thought is either pushed aside or we fool ourselves into thinking that it’s the thought that counts. We’ll just do that later.
With investing, like doing good, the [...]
Do you remember the Choose Your Own Adventure books that let readers direct the story at key decision points?
One reason these stories are fun is that mistakes are not permanent. Just flip back and pick the better decision.
Unfortunately, this flexibility isn’t possible in real life, although many of us live like it is. And unlike [...]
Like all new year’s resolutions, the sooner we change, the more we benefit. And much like our health, the consequences of poor financial decisions can take years to appear. Fortunately, it is possible to restore our financial health later in life.
Just like exercise, but different
But just like exercise, the longer you delay saving, the harder [...]
While we’ve experienced unparalleled growth and prosperity around the globe, history teaches us that everything comes to an end.
Alexander the Great carved out an empire over 13 years, but died one month shy of his 33rd birthday. His empire didn’t last. The Roman empire lasted for 1,480 years in one form or another. China was united and [...]
We all make financial decisions, every day in fact. It’s only natural that some of our decisions could have been better. However, when bad decisions persist they cease to be simply bad decisions (or lessons if you like) and become major obstacles to financial success.
Here’s four potentially disastrous actions.
Delaying
We’re all tempted to delay saving for [...]
People often set money aside for retirement, but underestimate how much they need to save. Fortunately, figuring out how much to save isn’t too difficult.
How much will I need at retirement?
Experts generally agree that you can safely spend 2-3% annually of your nest egg. Anymore, and you significantly increase the risk of outliving your savings. [...]
This step is essential; it is hands down the most important, for this reason:
For every decade delayed, one must save twice as much.
This means if $1,000/month was enough in your twenties, you’ll need $2,000 monthly if you’re in your thirties. For those of you starting in your forties, $4,000 might be in order.
Once you pick [...]
