Money Tips Network

Financial Freedom and Comfort

Which option is better: is it better to have maximum freedom over how one uses their time, or is it better to give up some of that freedom in order to have more life comforts?

Or, to put that question in a more tangible form, would you rather not have to work for a living (but you can if you choose to, and you can freely quit whenever you like) but have a worn-down car and a fixer-upper house, or would you rather have to work for a living but have a nice car and a nice house?

I think that my financial journey really involved a change in my answer to that question. Right now, I’d prefer maximum freedom over my time; at an earlier stage in my life, I would have preferred the nice home and nice car. At some point around a decade ago, my answer switched, and that change in that answer triggered a very different approach to finances.

The stories we tell ourselves

I had lunch with Sabino yesterday. He’s my accountant — but he’s also my friend (and a loyal Get Rich Slowly reader).

I told Sabino about how our house has been a money pit over the nine months since we bought it. I told him how much fun I’ve been having with Get Rich Slowly since I bought it back, and about how much work it has turned out to be to get the site renovated.

Sabino told me about his businesses (he doesn’t just own the accounting firm, but bits and pieces of several other companies too) and about his kids (who, to the surprise of both of us, are all teenagers now). He’s worked hard all of his life to give his family a solid future, and now — at age 48 — all of his dreams seem to be coming true.

I’ve shared Sabino’s story several times in the past. But for those who are unfamiliar, here’s a synopsis.

10 Things We Used to Pay a Lot Less for (and Still Could)

With few exceptions, goods and services cost more than they used to. But they don’t always have to.

One of the most stereotyped marks of aging is repeated complaints about things costing more than they once did. Unfortunately, it’s impossible to stop the march of time and it’s similarly difficult to halt inflation. According to the Bureau of Labor Statistics, it would take $7.28 to purchase what you could with a dollar in 1968. Meanwhile, it would require more than twice as much money — an extra $22.93 — to buy what you could purchase with just $20 in 1988.

7 Types of People Who Will Help Grow Your Career

The people you meet before, and during, your career can shape what kind of professional future you will have. If you meet the right people, it could lead to success after success, and a life filled with opportunity and growth.

But who are these motivational figures? Where do you find them?

Financial Experts Share Their Biggest Credit Mistakes

Credit mistakes don't have to leave you with poor credit for the rest of your life. Other people have overcome their credit problems, and so have I.

How to Benefit From Rising Interest Rates

Interest rates went up three times in 2017, and they are under consideration to be increased yet again within the next couple of months.

How to Use Bucket Budgeting to Overhaul Your Finances

You know the drill: You're supposed to save up at least three to six months' worth of expenses in an emergency fund. That way, you're covered in case of a job loss, an expensive car repair, or another "life happens" moment.

How Getting More Sleep Helps Your Finances

The American Academy of Sleep Medicine (AASM) recommends that adults ages 18-60 get at least seven hours of sleep every night, but a third of the population isn't meeting that minimum level of sleep.

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Some Thoughts on Parenting and Personal Finance Success from an Experienced Parent

Sarah and I welcomed our first child into the world in 2005, not too long before the launch of The Simple Dollar. Since then, we’ve been on this shared journey called “parenting,” and as our firstborn has grown older and we’ve added two more children to the mix, the challenges have grown and changed.

In the past, I’ve written a lot about how to be an effective parent in terms of teaching financial lessons and setting the stage for financial success for your kids, but today I want to write about something a little different. Rather than looking at the kids, I want to look at the parents.

Cashing in on the American Dream: How to retire at 35

All his life, Paul Terhorst wanted to be rich. Even in grade school, he looked forward to having a corporate job, to joining the world of big business. “I didn’t just dream about money and power and expense account living — I planned for it.” He grew up and made it happen.

He got his MBA from Stanford. He became a certified public accountant and joined a large accounting firm. At age 30, he became a partner in the company. He had “a huge office, a leather chair, and a view of a polluted river”. He’d achieved everything he’d always dreamed about.

But at age 33, while on a business trip to Europe, he overhead two guys talking about a friend who had retired early. Terhorst was intrigued. “I began toying with the notion that if I could come up with a way to live off what I already had, I’d never have to work again.”

Why You Should Work on Your Credit (Even if You Never Plan to Buy a House)

While home ownership used to be a mainstay of the “American Dream,” rising housing prices and changing priorities mean not everyone wants to own a home these days. Many people prefer to have flexibility to move when they want, and just as many would prefer to let their landlord handle pricey upgrades and repairs.

Plus, housing in some areas has become prohibitively expensive— especially in coastal regions and the nation’s big cities. And, if you don’t like the idea of going broke to buy a home or saving up for a down payment for the next five to 10 years, then renting may seem like a much better deal.

6 Investment Truths to Remember When the Stock Market Is Down

Forget Halloween — February 5, 2018 stands as the new scariest day. On that day, the Dow Jones industrial average (DJIA) plunged almost 1,600 points, marking its biggest point decline in history during a trading day.

5 Overwater Bungalows You Can Book With Rewards Points

Nothing says luxury travel quite like an overwater bungalow. These freestanding hotel rooms, which often sit just feet above some of the clearest waters in the world, are one of the most sought-after lodging options available.

These are no ordinary thatched roof huts.

10 Affordable Ways to Make Spring Break All About Self-Care

The concept of self-care is growing in popularity, and for good reason. In an increasingly fast-paced world, it can be challenging to make time for yourself.

On one hand, practicing self-care can get expensive very quickly.

9 Ways an Annual Self Review Can Boost Your Career

There are formal performance reviews, and informal performance reviews. There are also self-reviews, and many of us don't take the time to sit down and do one.

It's crucial to spend some quality time reviewing the last 12 months of your time on the job.

Ask the Readers: Have You Ever Done a Spending Freeze?

A spending freeze is a commitment to not spend money on anything that isn't necessary to your survival for a predetermined amount of time — usually a day, a week, or a month.

5 Ways to Boost Your Financial Resilience

The ability to bounce back after being financially sucker punched is a necessity in today's volatile financial climate. It's safe to say that at some point in your life, you are going to face a financial crisis.