The Financial Independent One

When we finally decide to manage our financial situation  and get out of debt we often feel lost, or how to get started. There are so many things to consider. Most of us cannot tackle them all simultaneously. Many end up putting it off and never actually get started.  Just like walking, one foot in front of the other. You can accomplish your goals by attacking one task at a time.   Erasing credit card debt, paying off your car early, taking on a 15 year mortgage instead of paying it off in 30 are not easy tasks and may even seem unachievable, but paying off one credit card or adding an extra $50 into your savings account this month are achievable goals. Create a budget. This is your starting point whether your goal is to achieve financial freedom, saving for the down-payment on a house, funding your retirement or simply becoming debt free. This is accomplished by listing all your income. Take into account every dollar that comes in. Then list all your expenses. Do n...

                          Happens every year, tax time arrives and many go “crazy”.  Some will have to pay out some more. That is a good move if you planned it this way and have the funds to cover the expense and incur in no penalties.  Others receive a nice chunk of change in the form of a tax refund. Most see it as a bonus, or a gift. Always nice to receive a refund, but it is just that: a refund; not more money.   I know, you may think that it is like finding a $20 bill on the sidewalk; who does not like that?  Wait...do not get all excited; nothing like that really. This was your money all along. You did not win the lottery. Make no mistake extra money it is not. I don’t understand why people look forward to them or even think of them in this manner. The government is returning money that you had previously "overpaid".   Your money! The worst part of it is that it all amounts...

One day at work, some of us were discussing our upcoming family vacation plans. A comment from one of my co-workers intrigued me; not where they were going, but how he was paying for it. His tax-refund would pay for most of their trip.  I am not a fan of the tax-refund, and would rather avoid getting one if at all possible. They were not going around the world but airfare, a nice hotel stay a plenty of meal-money were included.  I wondered how he managed to pull it off, and cornered him into telling me how he pulled it off.  He went on to tell me about the "new" saving for retirement tool he found at work, the 401K.  He meant new to him as he started contributing early that year. His tax burden the previous years had always been huge.  The reason for his large refund was that he never adjusted the withholding  while his taxable income dropped. These tax benefits were designed to incentivize and encourage us to save for retirement. You will have ...

For a very long time money was the driving force leading me to work an absurd amount of overtime.  Much of it was going where it should; retirement savings in the form of a 401k and an IRA, the must haves like housing and food and of course the much-needed vacations. One day I woke up to the realization that my time could be best used elsewhere.  I began to place a higher value on free time instead of making more money. Spending quality time with my sons, one is a black belt in Tae Kwon Do, while the younger played baseball for a few years and then moved on to soccer, was important. I did not want to miss anymore of their achievements! I also wanted to be present to cheer them on, celebrate a win, and be supportive when that heart-breaking loss came about.   I started looking around and found that I could earn passive income and thought to myself "I could do that" and make some extra money.  Boy, was I disappointed when I dug in....