I have some crazy stuff happening in life right now. A lot of which will be incorporated into upcoming posts. This weeks articles are again wide in their topical coverage. Some investing, retirement, home-ownership, valentines day advice, car buying advice, and a couple other oddballs! I look forward to upcoming posts for you guys as I’ve gotten a significant increase in time I can devote to posts for the next few weeks. I’ll be detailing my plans in my Friday post, so stay tuned! In the meantime, enjoy these articles and let me know what you think of them.
This is just crazy to think about! How Michelle and Making Sense of Cents is doing, and how insane it must be to have that much disposable income to throw into investments…each month!
Mrs. Frugalwoods’ Valentines Day advice: Mrs. Frugalwoods coming in for another solid win! I think it is incredibly valuable to recognize that you might not actually know the answers to some of her questions, even after years of marriage.
Homes are hitting record highs: Just what any prospective buyer wants to hear, haha! This is a very painful thing to hear when you are searching for your first home with a financially acceptable mortgage payment. Though it obviously explains why it seems like only 5% of the local houses appear to be in our budget.
401k Millionaires: This short bit of positive news from Time seems to be a positive thing, especially for the roughly 1% of 401k owners, but what about the other 99%? Did you know that most young workers either don’t realize they have access to a 401k, or if they do, they only opt for the “default” percentage for contributions. This typically doesn’t even exceed 3% of their income! It would be more newsworthy if maybe 10% of account holders had a cool million dollars, or even more reassuring if the average savings rate was larger than a meager 8.6%. I got called out at my job as being the one who contributes the highest percent of their income, and this is within the first year at this job! Plus, I’m not even maxing it out! I’m currently only contributing 20%, but here shortly, I will have enough stability to maximize contributions.
Why Millenials should be stoked for a bull market: With a title like that, I wouldn’t be surprised if a few of you either laugh or have a look of disgust on your face! But seriously, those of us who have time on our side should be essentially cheering for a bull market as soon as possible. Everyone, perhaps with the exception of those nearing retirement, should still be actively saving and investing money in the markets. Don’t freak out and sell everything, ride out the craziness, keep actively investing and in a few years you should reap the benefits! Think I’m wrong? Look at the history of those who started investing right as a bull-market became reality. They likely have a greater fortune now than their peers who bailed on the market.
3 Questions when considering buying a car: Not many of you know this, but the singular event that I believe truly turned me from a mindless consumer into a dedicated saver and cautious consumer is the purchase of my first brand new car. It opened my eyes to how financially devastating life could be if I somehow lost access to income. Sure, that might not be a life-altering realization for most, but I looked down the road and saw myself doing this over and over again and regretting it every time. Instead, I committed to changing how I spend money, and specifically told myself that cars need only get us from point A to point B. They don’t need to have the perfect paint job, fancy rims, powerful engines, or luxurious features. It was this point that I committed to avoiding a new car purchase and instead only buy used cars in the future, so long as they were reliable and could still meet the demands of the lifestyle that I desire while also not detracting from my ability to fund those lifestyle choices.
Are your money mistakes too scary to admit to?: Some recent conversations I’ve been a part of have included discussions on balancing vulnerability, courage, and improvements. The consensus seems to be that we all need to experience a certain level of vulnerability to benefit from many of the great things in life. This includes sometimes admitting that you aren’t perfect, and that you make mistakes. After all, it would be worse to never admit to a mistake than to admit to it, learn from the mistake, and take corrective action! In other words, the only stupid questions are the ones you won’t ask. Don’t be afraid to own up to your mistakes, it’s highly likely you weren’t the first one to make any mistake, and probably not the last either. But, maybe you could fix the mistake and even help others avoid the same pitfall you took. This is one of the reasons this blog even exists! I would be happy and fully satisfied if I even heard of one reader who was able to avoid a significant financial or otherwise unfortunate mistake after hearing of my experience making that mistake.
Good states to own a home right now: Even with a potential bull-market in our near future (no I’m not promising this!), a handful of states appear to be GREAT for new homeowners! I’m pretty sure my state is on the opposite end of this spectrum.