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Higher Paying States Do Not Make Up for Higher Costs
The Business Insider lists the best and worst states to make a living. The summary of their findings:
Not all states are created equal when it comes to making a living. While your income might be greater in places like New York or California, high tax rates and cost of living can greatly affect your lifestyle.
Of the top ten best states, all but three have costs of living below the national average. Of the ten worst states, nine have costs above the average -- most with costs FAR above average.
It's been an on-going debate about whether or not higher-paying cities/states cover the higher costs often associated with living in those states. The data is mixed for sure but more often than not the facts fall into the lower cost markets being a better option financially.
For more on this issue, see these posts:
Three Steps to Building Wealth
Investopedia lists three simple steps to building wealth as follows:
- You need to make it. This means that before you can begin to save or invest, you need to have a long-term source of income that's sufficient enough to have some left over after you've covered your necessities.
- You need to save it. Once you have an income that's enough to cover your basics, you need to develop a proactive savings plan.
- You need to invest it. Once you've set aside a monthly savings goal, you need to invest it prudently.
Hmmmm. These three sound familiar.
The site ESI Money has these three steps listed as the key parts of his site. In fact, they are even in the name. ESI stands for:
How to Practice Interviews
Fast Company lists seven steps you need for your next interview. They suggest you practice your interviews in advance and even video tape them. The details:
There’s no better way to practice an interview than actually doing an interview, so get a friend or family member to help you. Provide them with the details you dug up on the company, the job description for your position, your resume, and cover letter. Take the list of tough interview questions from here and provide them to your helper. (Also take a bottle of wine to thank the person—and maybe another if you actually get the job.)
Caroselli recommends you film your mock interview, if possible. (If video isn’t a possibility, record the audio.) "Study your body language to see if it reveals confidence, poise, and enthusiasm," she says.
Thoughts from a Millionaire Couple
Dave Ramsey shares the story of a millionaire couple. Here are the highlights:
Jeff and Dee of Atlanta have a net worth of $2.8 million. But they didn’t win the lottery. They became wealthy after decades of smart saving and sensible spending.
When he began working as a computer technician decades ago, Jeff’s salary was just $13,000. So when the opportunity came to work extra hours, he jumped at it. His workweek went from 40 hours to 80 hours—and his income doubled in the process.
These days, the couple saves upwards of 25-30% of their household income for retirement. How? They don’t hoard money, but they also don’t waste it. They still shop at Walmart and buy $20 shoes. They’re just normal folks.
Star Money Articles for the Week of November 21
Welcome to this week's edition of Star Money Articles.
How to Prepare Interview Answers
Fast company lists seven steps you need for your next interview. Here's what they say about preparing your interview answers:
Remember, your goal in the job interview is to show how you can make a positive impact on the company. Your interview answers should reiterate your unique selling points, Bumgarner says.
To practice, review some likely interview questions and make notes about the strengths you can highlight.
"For every answer, you should be able to say, ‘For example,’ and tell a story about a time when you demonstrated the things you are saying you are good at," Bumgarner says. "Never answer in generalities." Specific, real-world examples are what will get you hired.
A few thoughts:
Turns Out a Car Wash is Not So Hands-Off
Not too long ago I posted 5 Part-Time Jobs That Are Perfect for Retirees.
One job listed was "business owner" to which I commented:
I've considered buying a "hands off" business like a car wash or vending machine company (and let my son run it). Not sure if that's in the cards yet.
An FMF reader sent me this email soon thereafter:
We owned a self-service carwash for 14 years (it actually owned us). There is a gross misperception that you just go there and empty the money. Definitely NOT a hands-off business.
We would have to go there 1-2 times daily due to electrical/plumbing/general maintenance issues. If you do not know how to do this yourself you will be out of business very quickly. Repair people are hard to find and charge a fortune!
Five Signs You're Spending Too Much in Retirement
Investopedia lists five signs you're spending too much in retirement as follows:
1. You don’t know how much you should be spending.
2. You're spending more than 6% of your savings per year.
3. You're paying too much to service your debts.
4. You're displaying evidence of a “cut loose” mindset.
5. You aren't supporting your excess spending with a side job.
If any of these apply to you, you're probably financially not ready to retire.
With that said, here's my take on the above:
Star Money Articles for the Week of November 14
Welcome to this week's edition of Star Money Articles.
ESI Money details retirement math.
Money Mini Blog shares the power of two days in a row.
Financial Panther gets paid to bike around town.
Enemy of Debt asks when is bankruptcy necessary.
Ten Factorial Rocks says to stop the fear.
Patient Wealth covers extreme investing.
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