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Tag Archives: cutting expenses

It’s Never Too Late to Invest for Retirement

get started on investing for retirement

While we’ve made our share of financial mistakes, I’m always amazed when I run across someone my age or older who has nothing saved for retirement. Considering that a third of workers have less than $1,000 saved for the future, I guess it shouldn’t be that surprising. The good news is that it’s never too late to invest for retirement. Even if you might never be a millionaire, that doesn’t mean all hope of a decent retirement is out of reach. Figure Our How Much You Need to Live On Determining how much money you need to retire is certainly a million dollar question. Most retirement calculators assume  you’ll need 70-80 percent of your current income and won’t let you add savings rates greater than 20-25 percent. My favorite retirement calculator is the one from Personal Capital. At least it lets you add and subtract variables more easily than the rest I’ve tried. You can actually get a ballpark on your own by determining how much you spend per year now and apply that to retirement years. Some costs like health care will likely increase while others, like clothing and transportation, should decrease. If you have kids, hopefully those expenses ...

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Could You Survive Financially If You Lost a Job?

Some recent posts from Cash Rebel and Reach Financial Independence have really gotten me thinking about how much money we should be keeping in emergency savings and how fast we could go into survival mode if we had a sudden loss of income. Now that we have paid off all of our debt other than mortgages, I’m curious to see if we could get by on passive income alone. After all, isn’t that the ultimate goal of financial independence? Ultimate Goals Our ultimate goal would be to make enough passive income, mostly from rentals, to pay our necessary expenses. Anything we earned from salary or other endeavors would go into investments or retirement. While the timeline fluctuates based on the mood of the day, I think it’s reasonable to say we will have our mortgages paid off within the next 10 years. At that point, we can get by on very little. Because I sadistically like to look at worst case scenarios, what if we were suddenly faced with no salary income? Could we make it without resorting to panhandling?

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Paycheck to Paycheck is No Way to Live

If you are one of the millions of people who lives paycheck to paycheck, you might find yourself in the situation of having more days than dollars in the month.  That can be a very scary feeling when you know that your bank account is empty, and there are still several days until you get paid. While panic might set in, if you take a minute to analyze the situation, it might not be as bad as you think. With some planning, I believe anyone can avoid the problem of running out of money at the end of the month. If you know that you are completely broke and have more than a day until payday, organize what you need to buy. I like lists, so I would write down what you think will need money until the next payday. If the list includes food, gas to get to work, or rent/mortgage or bill payments, those are necessities. If the list includes a birthday gift, a promised dinner out with a friend, or some sort of apparel, those can be postponed or avoided. It might not be the most popular thing to do, but if your friend is truly a ...

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