Tag Archives: debt

Here’s What Saving 1% of Your Paycheck Could Do…

Saving money is difficult. Even saving 1% of your paycheck can be a challenge. However, this percentage can have a huge impact on your ability to retire or become debt-free.

For example, let’s say you are 25 years old, make $40,000 a year today, and never get a pay increase from that salary. 1% of that would be $400 a year / $33.33 a month / $7.69 a week. To save this amount it could mean eating out one less time a week, skipping buying a few articles of clothing a month, skipping one night on the town a month, or many other options.
So, instead of spending that one percent of your paycheck you invest the money in the stock market.
On average the stock market has a return of 8% per year, or 10% if you
reinvest the dividends. Dividends are a sum of money paid regularly (typically quarterly) 1 percent returnby a company to its shareholders out of its profits (or reserves). Assuming you get a 10% return on your investment, by the time you are 65 the 1% you save monthly would be worth roughly $195,000. All from 1% of your paycheck. Continue reading Here’s What Saving 1% of Your Paycheck Could Do…

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How I was able to save 60% of my paycheck (after tax) in a month

I recently set the goal of saving 58% of my paycheck for the month February, and I was able to accomplish that! In fact, 60% of my paycheck stayed after the month ended. It was a pretty great feeling to be able save that much money. I had to change many aspects of my life to accomplish this, but it was not impossible. Continue reading How I was able to save 60% of my paycheck (after tax) in a month

How to Start Investing in the Stock Market

Investing in the stock market is an intimidating thing. Many millennials are told to start investing while they are young – this ensures your investments have time to grow over your lifetime. However, just getting started in investing can be extremely difficult.

There are multiple ways to start investing, such as opening/starting an IRA (individual retirement account), or joining your companies 401k/403b plan, but for the most freedom you will want to open a brokerage account. A brokerage account allows an investor to deposit funds with the brokerage and place investment orders with those funds. Continue reading How to Start Investing in the Stock Market

5 Wise Ways to Use Your Tax Return

Tax return season is upon on, and this is good news for lots of Millennials. It’s great to get a lucrative return, but what to do with this large sum of money is another question. Below are 5 ways to use your tax return wisely.

#1 Pay off existing debt – highest interest first

If you have existing debt this is a good chance to pay off a huge chunk at once. Pay off whatever debt has the highest interest rate first, usually credit card debt would fit this. Paying off debt early will save you lots of money in the long run, as you will be paying mostly principal on the loan, not interest payments. Continue reading 5 Wise Ways to Use Your Tax Return

What Debt Should Millennials pay off first?

Being in debt can be a very scary feeling. Always feeling like you are behind, and never able to get ahead. Student loans, Car payments/repairs, hospital bills, credit card debt, the list only goes on and on. One big question I hear a lot is: what debt should I pay off first? There are a few basic rules I have when it comes to paying off debt.

#1 ) If a debt payment is approaching  being late for 90 days this takes top priority. Continue reading What Debt Should Millennials pay off first?

You’re probably overpaying for your cell phone

No matter how much you cut expenses, there is a 99.9999% chance millennials will have a cell phone. And there is a very good chance you are paying a premium for your cell phone coverage. Verizon, T-Mobile, Sprint, and all the other big companies charge people crazy amounts of money despite their advertisements on how great they are.

An example of this, my girlfriend (prior to dating me) was paying $107.42 a month for her cell phone. She received unlimited texts, calls, and internet (up to 3gb at full speed). This also included a $25 a month charge for her phone. Essentially she was paying $82.42 a month for her phone coverage. Nearly $3 a day! Continue reading You’re probably overpaying for your cell phone

Prioritizing Your Spending

I saw this picture on social media, and it struck a chord with me. In just a few sentences it explains that by prioritizing what you spend your hard earned money on can make the difference between seeing the world, or staying at home.If traveling isn’t your forte, then perhaps between you and the next gadget you desire.

People spend way too much money on many things:

  • Clothes
  • Eating Out
  • Coffee
  • Alcohol
  • Cell Phones
  • Cars
  • the list goes on and on

Continue reading Prioritizing Your Spending