Most people track net worth wrong. They add up their 401(k), their house equity, their car value, subtract credit card debt and student loans, and stare at a single number like it’s a report card for their life. That number, on its own, is almost useless. Here’s why: a net worth of $50,000 means very …
When Enron collapsed in late 2001, employees didn’t just lose their jobs. They lost their retirement savings too. The average 401(k) at Enron held 62% company stock — and when shares fell from $90 to under $1 in a single year, thousands of workers discovered they had no financial floor left. That was 25 years …
Most people who discover zero-commission brokers think they’ve cracked the code on free trading. They haven’t. Every single trade carries a built-in cost called the bid-ask spread — and on certain securities, it dwarfs what anyone paid in commissions years ago. Understanding this one concept separates investors who know their real costs from those who …
Fresh off of a second huge stock market rally from a frightening decline in the past year, I thought it would be timely to do a bit of reflecting. For those with very short memories (or news avoiders), the stock market took an absolute nosedive in January through early February as oil prices bottomed out …
I did the math last January. My grocery receipts from the previous year added up to $7,800. That’s $650 a month for one person. Embarrassing. Most of that was meat — grass-fed beef at $12/lb, organic chicken thighs at $8/lb, salmon fillets at $15/lb. I was spending more on animal protein than on my rent. …
You stand in the grocery aisle, a $5.99 carton of organic strawberries in one hand and a $3.49 conventional carton in the other. Your budget says pick the cheaper one. Your health anxiety says spend the extra $2.50. Your friend from yoga class told you organic is a scam. Your sister said it’s the only …
Most of us pay too damn much for insurance. Let me clarify… I’m not talking about how we shop for insurance, policy discounts we might be missing out on, or which providers we buy from (although all of those certainly can have an impact on insurance premiums). Rather, I’m talking about the level of insurance …
One of my very favorite personal finance metrics to calculate, monitor, and compete against is my personal inflation rate (as one half of a married couple, it could more rightfully be referred to as “household inflation rate” since my wife and I share all costs). Whatever you want to call it, I’d put it second …
If you’ve spent any amount of time reading personal finance advice, you’ve surely come across gurus or opinionated individuals with an unwavering faith in the power of income to cure all financial ills. “Don’t worry about the little things – just focus on boosting your income and that will cure everything”, they say. They say …
I think we can all agree that having time, money, and energy are good things to have (and the more, the better). Well, there’s a wise old adage about the 3 stages of life as it relates to time, energy, and money that is just as telling now as ever: 1.In your child/teen-age (pre-work) years: …
