Compound Interest Changed My Financial Trajectory

compound interest einstein

Compound interest is known as the “8th wonder of the world”.  This quote has been attributed to Albert Einstein, but never confirmed. If you understand how it is calculated, it’s an amazing mathematical truth that can work for you, or against you. It can work against you if you carry debt and barely pay the minimum payment.  Interest is compounded and you end up digging a hole so deep, it is difficult to climb out. On the other hand, it can work for you, if you are able to have assets that appreciate or pay divdidends over time. The Moment

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It’s Not What You Earn, It’s What You Keep

Keep more money pay less taxes

You make money.  You spend money.  That’s the cycle.  Financial independence comes from doing the following 3 steps: Earning more Spending less, and Investing the difference It is really that simple. Today I want to focus on Step 2: Spending Less. Spending comes in all forms.  You buy things you need like food, clothes, shelter. You buy things you want like iPhones, high-end clothes, big-screen TVs, etc. And some things are skimmed off the top before your paycheck reaches your hand.  In other words…..taxes. A Brief History of The Income Tax Believe it or not, the United States didn’t always

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Our Emergency Fund Worked

Our emergency fund worked

My wife and I have stable jobs in the healthcare field.  We live off 1 income.  Theoretically, we don’t need an emergency fund because the chances that both of us will be out of jobs at the same time is very small.  That said, I am very cautious by nature, so we have an emergency fund. What Is An Emergency Fund An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. Some of the top emergencies people face primarily a job loss, but

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Creating the Most Time-Efficient Personal Finance Plan

Creating a time-efficient personal finance plan

In my early years, I used to focus A LOT on frugality.  When we got married in 2005, my wife was still in school and I was just starting my career.  My frugal efforts included clipping coupons.  I would spend hours online or driving around shopping for the best deals.  I would get at least 5-6 different quotes for service jobs/handywork.  I would spend hours a week grocery shopping.  My wife and I would spend a few hours a month cleaning our home.  I would spend 1 hour every week cutting my lawn.  I would drive miles for a deal

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My Experience With Angel Investing

My experience with angel investing

Before I get backlash for angel investing in start-ups, you should know that 99% of my invest-able assets are in low-cost, index funds or real-estate.  That said, I’ve always been intrigued with alternative investments. I watch a lot of shark tank. It’s nice to watch business owners present a good business model and get funded, but I’m more intrigued with the sharks. Wouldn’t it be nice to be the next Mark Cuban or Mr. Wonderful? Angel investing is a way to invest in small start up companies that have high growth potential.  It’s an area that I’m still experimenting. What

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FFtF Passive Income Report – May 2018

I hope you will enjoy this passive income report. If you want more details including my exclusive income and net worth report, please join below.  Enjoy the post! Welcome to the first monthly passive income report.  To be honest, I’m more focused on growing our net worth, so my passive income isn’t very high. A practical example of trading passive income for growth is buying growth stock (think Facebook or Netflix) versus buying a value stock (think Coke or GM).  Growth stock has the potential to grow my net worth while value stock dishes out a passive dividend every quarter.

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