It may seem like there is a lot to personal finance. And in one sense there is. There are thousands of different approaches to personal finance. And this can get overwhelming. It may seem so overwhelming that you feel paralyzed at square one. But it doesn't have to be. There are a handful of things that are critical in personal finance. All the rest is splitting hairs. So go through each of these items one at a time and make an improvement in each area. . . .
For many, financial independence is the holy grail of personal finance. Although financial independence is a little different for everyone, basically you can consider yourself financially independent when you’re not dependent on any employment income to meet your needs. Some go a little further and define it as meeting all your needs strictly with passive income- or income that you don’t have to . . .
When most people classify their assets and liabilities, they include all their possessions in their asset category and any debts in their liabilities. This might technically be correct from an accounting standpoint. However, unless you are planning on selling everything you have tomorrow, I don't think this is helpful from a personal finance perspective. Many of your possessions are a weight on . . .
Today I've got a guest post by Drew Cloud from The Student Loan Report. Drew Cloud is a journalist who typically writes about student loans, personal finance, and education. If only applying to colleges was where the time and effort of getting to your dream school ended. In truth, once you’ve passed the first hurdle—college acceptance—most students have a second one waiting just after it. . . .
Benjamin Franklin allegedly said that a penny saved is a penny earned. In other words, saving money on an expense frees up just as much purchasing power as earning the same amount of money. Makes sense, right? However, Benjamin Franklin also allegedly said that nothing is certain but death and taxes. Which seems to be true. But this is where he contradicts himself. Because of taxes, a penny . . .
Creating a passive income is one of the best things you can do for your long term finances. Passive income helps you absorb sudden life changes, and help you pursue your passions and dreams. One of the most reliable truly passive income streams can be from a group of solid dividend paying companies. Dividends are regular cash payments that a company will make to investors just for holding . . .
Today I've got a guest post by Troy from MarketHistory.org. Troy is a hedge fund manager whose fund is closed to outside investors. In his spare time he surfs around Sydney and blogs at http://markethistory.org/blog. Thanks for reading! As the years go by, certain investment rules become outdated. For example, diversification among stocks for the sake of capital gains is semi-irrelevant . . .
Marriage is life changing. Since a marriage is completely merging two lives, it affects every area of life, including finances. To be clear, I'm not advocating marrying for the money, but you may want to consider how marriage might affect your finances. To paraphrase Kanye West, I ain't sayin you're a gold digger, you just ain't marryin with no broke honeys. In an ideal world, both spouses . . .
You should be investing a good chunk of your long-term savings in the stock market. The stock market simply has a record of better returns than almost any other investment available to the average investor. There are, however, people who say that investing in the stock market at all is for fools. But Is The Stock Market Grounded in Reality? One of the main arguments against investing in the . . .
Graduation is just around the corner, and another crop of high school (and college) seniors that are ready to seize their independence and move into the real world. Although parents can do a lot to help prepare their kids for the real world, this is where the rubber hits the road. When you move out on your own, the stakes are higher and your money decisions really start mattering. Gone are the . . .
This time of year, a lot of soon-to-be grads are probably thinking about moving out on their own. This is going to mean taking responsibility of your own finances- all the expenses, budgeting and saving. It also means securing an income. But how much money does it actually take to live on your own? Of course, anyone can easily blow through $100,000 in a year. But what's a reasonable minimum for a . . .