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Tag Archives: lifestyle inflation

Dangers of Earning Extra Money

taxes, lifestyle inflation, and extra time

      When searching for ways to pay of debt, build an emergency fund, or save for a major purchase, anyone will tell you that earning extra money is the fastest way to accomplish those goals. Increasing my income was one of the ways we were able to pay off massive credit card debt a few years ago. While the overall benefits more than outweigh any potential negatives, there are a few dangers to look out for when making extra money. Hopefully you can avoid those  pitfalls to make sure that all extra income is serving its purpose. Taxes Unless you take on a traditional job for extra money, income earned from side hustles is usually paid without any tax withholdings. That means that you’re responsible for Medicare, Social Security, and income taxes. It might be tempting to go ahead and use your new found money right away, but remember that a tax bill is coming up. If you’re new at earning extra income, you should save about 30 percent for taxes. After the first year, if you continue to pull in side income, you’ll need to set up estimated quarterly payments to Uncle Sam and to your state ...

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Why Hiring Help Might Ruin Us Forever

hiring lawn help

We have had an interesting May and early June in Southwest Colorado. With very little spring snow, there was real worry about drought conditions. Without snow, you can almost stump a toe and start a forest fire later in the summer. Some of our anxiety was relieved when we got an unheard of 6+ inches of rain last month with more in the forecast. We will never complain about too much water, but it did present some unusual challenges that could have used some outside help, but I’m afraid hiring help might ruin us forever. Grass Grows Really Fast When It’s Watered Our property is a little over three acres. I wouldn’t have the same house if we were to do it all again, but hindsight is 20/20. We have some grass around our house, but the majority of the land is undeveloped and not irrigated. When spring rolls around, prairie grasses, more commonly known as weeds, grow on the non-yard portion of our property. Jim mows it a couple of times, but unless we get lots of rain, it doesn’t grow that much and usually turns brown by fall. Our riding mower works fine for taking care of it. ...

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The Dangerous Student to Doctor Transformation

financing an expensive luxury car

This post is from fellow optometrist and personal finance blogger, Syed at The Broke Professional. Thanks for helping me out while I navigate the no wifi land of rural Kentucky! When I was in school, nothing else mattered.  Life was all about doing well on the next test, and then doing well on the one after that.  This was true both during undergrad and optometry school, and it seemed like no end was in sight.  Though I knew it would end at some point, it was always “how do I get ready for the next test or practical?” Many of my classmates in optometry school felt the same way.  Professional school is similar to undergrad in that you want to get good grades and do the best you can, but it’s different because you and every other student in your class is there for one reason and one reason alone.  And you attend classes and take board exams with the same group of people for four years.  This can build a lot of camaraderie and produce a sort of “us against the world” mentality over time. A Whole New World But then after four years, it’s finally over.  We dealt ...

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Would Your Life Change If You Became a Millionaire Overnight?

winning a million dollars

I know that I’ve talked about having a million dollars and wondered if that made someone rich or not. I’m not sure it does in every case, but becoming a millionaire is still something most of us dream of, especially if it were to happen instantly. We’ve all heard stories of people winning the lottery, striking oil, or having a rich uncle who left them a fortune. Heck, how many TV shows have been made about that very topic? Well, I had the unique opportunity to meet an overnight millionaire recently, and one of my big questions was if and how her life had changed. It was really interesting  to hear what she had to say. I’ve Won Some Money One of the best things about my job is the vast assortment of people who walk in the door. Just when I think I’ve seen it all, I get surprised again. Last week, I saw a patient who has been one of my regulars for many years. She is one of the sweetest ladies you’ll ever meet but has a whole host of health problems, mostly due to heavy smoking. She is only 66, but easily looks and moves like ...

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Would You Choose The Same Career Again?

would people choose the same career?

Now that I’ve hit the big 4-0, having that birthday has given me a chance to reflect back over the last couple of decades, especially with career and financial choices. Career is topic of conversation with friends around my own age. Recently, I was talking with a teacher friend of mine who has about the same number of years in education as Jim, meaning about half way through to pension eligibility. At this point, it makes no sense to leave her job or move somewhere else, but she is very convinced that if she knew then what she knows now, she would have never gone into education and cannot encourage young people into that career choice. For me and optometry, it depends on the day of the week you ask. Whether you are just starting out or about to finish, it makes sense to continually evaluate your career choice to make sure you’re making the best use of your time. Would you choose the same career again? Why Do People Choose a Certain Career Path? I’m sure there are a ton of variables, but in my opinion I think career choice is due to one of three reasons. 1)Your family ...

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