Category Archives: Investing

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Hedgehogs And Hedge Funds

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Have you ever heard of a hedge fund? If not, I will explain here for you.

A hedge fund is an investment pool with a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.

A simple hedge fund definition is: a hedge fund is an alternative investment that is designed to protect investment portfolios from market uncertainty, while generating positive returns in both up and down markets. Throughout time investors have looked for ways to maximize profits while minimizing risk.

Hedge funds got their name from investors in funds holding both long and short stocks, to make sure they made money despite market fluctuations (called “hedging”).

According to Jim Cramer’s thestreet.com, because of their nature, hedge funds are typically only open to qualified (read: well off) investors, although not exclusively.

Simply put, a hedge fund, like a hedgehog, has a narrow focus and does one thing really well, which is to make money no matter what. However, in life it is usually the person who has much knowledge, as Rory Gilmore of Gilmore Girls would always say, that tends to do better in life.

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Knowing a lot about one thing (like a hedgehog) is great, but knowing a little about a lot of things (like a fox) can be even better.

Truth be told, I just want to collect my compound interest and dividends the same way Sonic the Hedgehog collects those rings.

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Sonic, the protagonist, is an anthropomorphic blue hedgehog with supersonic speed. Typically, Sonic must stop antagonist Doctor Eggman’s plans for world domination, often helped by his friends, such as Tails, Amy, and Knuckles.

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The game was released in 1991 and is still one of my favorite Sega Genesis games. Solving puzzles, saving his fellow animals, and the world is all part of Sonic’s charm.

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The Greek poet Archilochus wrote, “the fox knows many things, but the hedgehog knows one big thing.”  So which are you? Are you the hedgehog or the fox when it comes to investing?

IT ALL COMES DOWN TO RISK How risky are you?

Do you dive right in or do you take calculated risks?

In my experience, you should know your limits and then stop right there. Especially, when it comes to your money.

If you cannot afford to lose more than $100, then that is your risk level. If you cannot lose more than $5, then that is your risk level.

Once you decide to cross that mark, then you are in uncharted territory my friend. You do not have to push yourself to the limits.

Unlike Archer, the world’s greatest spy, you do not have a private detective or any other type of agency that will bankroll or bail you out in case of an emergency.

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You must provide your own safety net by hedging your bets and always having an emergency fund.

SAVING FOR A RAINY DAY OR A MONSOON, WHICHEVER COMES FIRST You must hope for the best, but prepare for the worst.

Remember prince charming or princess moneybags is not coming. You are ON YOUR OWN!

Once I learned this lesson, I took steps to change my financial life. First, I set a goal. Second, I wrote it down. Third, I executed. Lastly, I watched my bank balance go up. As will you, if you follow this plan.

You need to set a goal. Mine is $100,000 USD in savings. Then you must write it down, as a goal that is only in your head is a wish. Then you make a plan and get to action. Mine was setting a savings goal per year and went like this: Year 1: $600 saved Year 2: $1,200 saved Year 3: $3,500 saved Year 4: $13,333 saved Year 5: 14,000 saved Year 6: $15,000 saved Year 7: $17,000 saved Year 8: $18,000 saved Year 9: $20,000 saved Year 10: $25,000 saved

If you add these yearly amounts, you will see that by year 9 I will have saved $102,633.

My goal will have been met after almost a decade of diligent saving. You are no longer living paycheck-to-paycheck and can handle any emergency that comes your way.

SLY AS A FOX BUT THE FOCUS OF A HEDGEHOG I say why not take attributes from both.

Be agile and cunning when it comes to investing and staying away from actively managed funds in favor of passively managed index funds.

Your laser-like focus will be on index funds just as a hedgehog is good at that one thing, you will be at focusing on one index fund: VTSAX.

This fund is all inclusive as it holds the entire stock market in its hands. You will see that over time the price has gone up. Therefore, as an investor, you must play the long game. When stocks go down, you buy. Basically, whenever there is a recession. When they go up, you hold.

This is solid advice. I need you to listen. Please don’t go. DON’T HANG UP!!! WAIT!! BUT…BUT…

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If you want to place your bet on this course of action, I will bet you the same amount as Eddie Murphy and Dan Aykroyd did in Trading Places, $1!!! As that is my risk level, in this instance.

The One Dollar Bet - Trading Places (8/10) Movie CLIP (1983) HD Trading places 02l101,0f7hc,amg,50678,02l0xc,movieclipsdotcom,comedy GIF
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Good luck out here in these investing streets.

Price – VTSAX

Current prices

Price as of 06/25/2019$72.22
Change-$0.68 -0.93%
30 day SEC yield
as of 05/31/2019		1.96%B
52-week high 09/20/2018$73.65
52-week low 12/24/2018$58.19
Range$15.4626.57%
Budgeting, Investing, Saving, Wealth

GBM VS DEBT

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Debt, Coins, Euro, Money, Exchange, Bank

“Simply put, unsustainable debt is helping to keep too many poor countries and poor people in poverty.” -Bill Clinton

Tip Jar, Coffeeshop, Tips, Student Debt

I can’t stand debt. In any way, shape, or form.

Debt, Money, Pound, Finance, Financial
Credit-Card, Scissors, Cutting

It robs you (and your future self) of prosperity.

Every time I think of buying an item, I always think what would the future lost investment gains be.

For instance, buying a $40,000 car could end up costing you over $400,000 in future wealth! Pray tell. How can this be? It’s simple math.

Basically, if you invest that same amount and not a penny more, you could grow your wealth over 30 years to $402,506.28 with an 8 percent rate of return. Crazy right? Giving up mediocre present pleasures for incredible future comfort warrants astounding things.

Harry Houdini himself couldn’t concoct a magic trick so ingenious as the magic of compound interest.

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Speaking of magic, let’s look at saving money as a magic trick the same way a magician would. Marvelous to behold, but truly done by meticulous planning and practice because as we know practice makes perfect. Isn’t that right Mr. Potter? 😂

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MONEY SAVING MAGIC TRICK #1: SPEND LESS

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By no means is it rocket science. Much unlike that hilarious scene in Robocop 3 when that guy walks in a donut shop and tries to rob it even though the donut shop is within 7 blocks of a police department. And then the guy behind the counter asks him this, Donut Jerk: “What’s it like being a rocket scientist?” 🤣

Get serious. A donut shop that close to a precinct has to be one of the safest places in America. It might even have double-duty; 1) as a donut shop by day and 2) as a safe house by night.

Who tries holding up a donut shop full of cops?

That is the same way I want you to feel every time you whip out your credit card. Who wants to pay interest on a pair of jeans or table from IKEA for the next 10 years?! Nobody wants that! You must find ways to spend less.

See my posts American Homes Are Now $1,100 Per Month Storage Units and America Is The Land Of Subscriptions

MONEY SAVING MAGIC TRICK #2: SAVE MORE

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The three biggest expenses for families are: food, transportation and housing. The first trick is to cook more and eat out less.

However, if you can get invited to more dinner invitations, wine tastings, restaurant openings, annual stock meetings, cookouts and other shindigs; well then, you can take doggie bags and stockpile Tupperware with food for days.

Too good for Tupperware and leftovers?

Then please pick a career as a hedge fund manager or petroleum engineer or rocket scientist *cough cough* and start earning $200,000 a year and hire a chef or eat out, as you can afford it.

Need a car to get around? Look for a used $4,000 Ford Focus to pay cash for and then be on your way.

Too good to drive a Ford Focus?

Please reread the top of this article and rethink your priorities.

See my post Beamers, Benz, And Bentleys Or A GMC Truck

If you can Airbnb your way to a fortune, good for you. Otherwise, you will need to find a home in a place whose zip code has not been featured as the title of a television show.

That’s right. Does your dream zip code end in 90210? You can’t live there. Why not? When your neighbors are parked cars and moving vans filled with Facebook and Uber engineers, then you may want to really think about where you lay your hat.

If engineers making $175,00-$250,000 a year can’t find affordable housing, then that is a red flag that this neighborhood is probably not for you.

Remember this, if you want to build wealth, find the cheapest and safest place you can to live and save a fortune. Cause you know, it’s all about location, location, location.

Also, no long term house guests that are not paying! Why you ask? Did you ever see that movie Madhouse. Here’s the premise: The luxurious villa of Mark and Jessie Bannister, a yuppie couple, is overrun by loads of uninvited guests who turn the house up side down.

Even if it is a family member or friend, they should pay something.

Even if it is just groceries. Everyone has got to chip in and foot the bill. There is no free lunch or rent! This is my motto: If you can’t pay to stay, then you need to find another place to lay your head cause it’s not going to be on my pillow!

MONEY SAVING MAGIC TRICK #3 THE HAT TRICK: MAX OUT A ROTH IRA

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You must invest if you want to one day retire. You do not want to end up a bankruptcy court candidate due to lack of planning and saving.

See my post Catwalking To Get Paid: Modeling Is Rick Business

The easiest way to ensure this is to do the following: 1) Invest enough to get the company match in your 401(k), 2) Then fund a Roth IRA to the Max. And that’s about it.

But wait…there’s one more thing.

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You must also invest that money somewhere. You can invest in a 500 index fund with your brokerage.

For example, the S&P 500 index or VFIAX with Vanguard. In addition, if you are looking for total stock market exposure, then you can go for the VTSAX with Vanguard.

Thank you for your time.

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After all of that writing and helping the masses, I am exhausted. Please pass me (this non-rocket scientist) a donut.

Budgeting, Financial Independence, Investing

3 Financial Lessons From Eating Ketchup

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3 Financial Lessons From Eating Ketchup

Full Disclosure: This post is hot off the presses and written by fellow blogger Dr. Breathe Easy Finance This is Part 1 of a 2-part collaborative post with yours truly 😉

This post is on a lighter note but don’t skim over it, I put my heart and soul into it. Kidding. But I tried to make it exciting.

Origin of this post – My beef against ketchup and fries

The human habit and interest never ceased to amaze me. I posted an article that I thought would be very helpful for people on how to budget their money to live the life they want.

It was a well-researched post with multiple points and topics covered. We covered a lot of ground in that one article  – 10 reasons to budget, 8 steps to create a successful budget, 5 risks of not managing your money, 4 tools to manage your money including our free budget template and to cap it off, we discussed the money habits of millionaires.

I tweeted the post, what happened?  Crickets. 2 likes after 24 hours.

That same day, I saw a post about fries and ketchup. Literally, some guy eating few fries with a huge amount of ketchup.

What happened? 23,000 retweets (well including me), not even counting the likes and comments.

Well I retweeted to point out that entertainment sells much more than finance tips that actually helps people.

But then, my own tweet took a life of its own and got lots of comments and retweets. So I gave up.

Not really, my friend Miriam (from Greenbacks Magnet) and I decided to write a blog post about ketchup and fries. She picked fries, I picked ketchup.

I think a simple approach to life is best. If ketchup and fries is what people want to see, we will give it to them.

To better prepare you for this post, check out this very scientific video about why ketchup is so hard to pour. 

Seriously though, the ketchup bottle has bested even the strongest men and women of this world.

Literally, 1.7 million views on this 3 minutes video. See what I am saying?

I originally promised a 12 financial lessons from eating ketchup, but I decreased it to 3 just for you my readers, to spare you the agony. You came here for the ketchup anyways, not financial advice right. 

3 Financial Lessons From Eating Ketchup

1. There is a sweet spot for everyone in personal finance – Find yours

Based on your goal in life and your philosophy, there is a sweet spot that you are comfortable with. Stick to it and don’t let people try to knock you off your financial mission statement.

If you feel like 30% bonds is where you are comfortable with and you have done your due diligence and researched, then stick to it.

Since I don’t do half jobs, I dived deep into every article I write. I came across an article about the Heinz ketchup bottle and how it could be a nightmare getting the ketchup out when it gets clogged.

I am not much of a ketchup guy, so this was news to me. You do not understand how many forums are discussing this and how frustrated people get.

Don’t even bother asking how many curse words and punching, kicking has occurred because of this phenomenon.

Finally, a spokesman from Heinz revealed the secret. It was almost like Heinz intentionally made people struggle first and after a few years, they felt bad about it and finally said – you have been doing it wrong for years. Imagine that!

A Heinz spokesman said: “To release ketchup faster from a glass bottle, here is a little secret from Heinz.

“The sweet spot to tap on the Heinz bottle is the 57 on the neck. All you need to do is apply a firm tap where the bottle narrows, and the ketchup will come out easier.”

It turns out that all the years of frustration that people experienced, banging the bottom of the bottle, cursing, yelling, throwing the bottle across the room, punching and kicking the bottle and getting nowhere – the answer was simple and it’s been there in front of us all this time. New York Post even wrote about it.

You already have your financial mission statement, why don’t you reread it and reassure yourself. Stick to your sweet spot, it will save you a lot of head banging, kicking and screaming. 

2. Ketchup cannot make up its mind whether its solid or liquid – Keep your finances simple.

This one is even more fun. Who knew lots of scientist’s study ketchup.  I mean, I would not be surprised if ketchup is being researched more than some diseases. Osler–Weber–Rendu syndrome for example.

Keep your finances simple. This is what I do. Instead of using 72 different funds in my portfolio, I started with the 3 funds portfolio.  Also that’s why I wrote about my 12 toddler steps to personal finance. I agree, it’s not perfect, but it gives me the general guideline to follow.

Throughout my fellowship training and first 6 months of my real job, I focused mainly on paying off my loans. Simple enough, that I paid the loan off faster than I expected.

There is an Australian researcher, Anthony Stickland, who made it his life mission to solve the ketchup flow problem.

Dr. Stickland, a senior lecturer at the department of chemical and biomolecular engineering at the University of Melbourne in Australia, literally developed step-by-step instructions that should help your ketchup flow much nicely.  In that instruction, there are lots of physics theories involved.

3. Don’t just jump into investments because an authority figure recommends it – The ketchup cure

I learned this from my short encounter with cryptocurrency investing. So I watched some YouTube video and also followed some big names on twitter at the time.

Many times, they promote a coin for people to buy – for example, John McAfee will tweet about coins, and then people rush to buy it, artificially inflate the price of the coin.

Then a pattern started to emerge, few hours after, there would be a huge dump in the coin. It turned out he got paid to promote those coins. I also believed he bought the coin right before, then dump the coin after people buy up and he would benefit from the promotion.

This might not apply to other investments as bitcoin and other cryptocurrencies are not regulated.  However, you get the point. 

Ok as promised, the story of the ketchup cure –

Apparently, ketchup used to be a medicine around 1835 and it was sold as tomato pills. A genius doctor at the time spearheaded the project. Dr. John Cook Bennett, the medical department president at Willoughby University in Ohio.  The pill was sold as cure for illness ranging from diarrhea, jaundice, indigestion to rheumatism.

Conclusion 

While this might have been a funny or unfunny version of my venting, there are some things I felt need to be addressed.

  1. Human nature loves entertainment than something serious, even if it will improve our lives. 
  2. You can relate finance to anything, just gotta be creative
  3. There is a sweet spot for everyone in finance – just like the 57 spots for ketchup bottle
  4. Keep your finance simple – don’t be hot or cold. Pick a strategy and stay the course
  5. Don’t jump into any investment without doing your due diligence – Ketchup cure did not work – no magic formula for investing. 

Part 2 will be released later today by Miriam. Will be adding it later.

Budgeting, Financial Independence, Investing

Financial Lessons from asking, Do You Want Fries With That?

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Fast Food, Food, French Fries, Fries

Full Disclosure: This is Part 2 in a 2-part collaborative post with fellow blogger Dr. Breathe Easy Finance This Part 2 is written by yours truly 😉

All artists collaborate sometimes.

I’ll give you some examples.

Drake and Lil Wayne.

Marvel Comics The Avengers. It destroyed the box office this past weekend. It just made 1.2 billion at the global box office. So you see, amazing things happen when people collaborate.

Linkin Park and Jay Z.

Jay Z and Beyoncé .

See my post on How Beyoncé And Jay Z Became A $1 billion couple

Well guess what?

Personal Finance Bloggers collaborate too!

Your girl Greenbacks Magnet and Dr. Breathe Easy Finance are tag teaming it!

You read his post on 3 Financial Financial Lessons From Eating Ketchup.

Now he has passed the baton over to me and I gladly accept like we are team USA . Like Usain Bolt just handed over the baton. I hear the shouts coming from the stands. Screaming U.S.A..U.S.A!!!! 🤣

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We are Personal Finance Bloggers. We will not be overshadowed by some french fires and ketchup! You know why? Because financial literacy is too important. The cream not ketchup rises to the top! Like those bullies said in Race For Your Life Charlie Brown, We’re #1!!!! We are out here to help people improve the quality of their financial lives. See my post of Life Lessons From Race For Your Life Charlie Brown

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Image result for macho man randy savage gif

So we got together and decided to tag team it like Macho Man Randy Savage and The Ultimate Warrior.

So without further ado. Here it is for your reading pleasure. I give you Financial Lessons from asking, Do You Want Fries With That?!!

I know what you’re thinking? What type of article title is this? But just stay with me.

Another personal finance blogger, like myself, saw a post online of a video of someone eating a French fry. It got 23,000 views. He shared his thoughts about it on Twitter.

He said in the finance community we get nowhere near as many views. His response to that, was that his next post would be titled, “12 Financial Lessons from Eating Ketchup.”

I replied to that tweet, in response to his, that I would complement his post and call mine “Financial Lessons from asking, Do You Want Fries With That?

He thought I was joking. Surely, you jest!

I was oh so serious. As you see, when it comes to money, I don’t joke.

In the illustrious words of Miss Piggy, “Moi,” that’s (“me”) in French, Moi means business. Sorry, had to throw in a French word since we are talking about French fries.

Miss Piggy @MissPiggy New Year New Moi? HA!! As if. If it aint broke dont fix it sweetie

You see that, I just gave you an origin story. Similar to how Marvel Studios gave you X-Men Origins Wolverine.

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I will be slicing through the mysteries of money faster than the Wolverine can bring out those claws and the same way Michonne uses that Ninja sword on the Walking Dead.

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This blog talks money, but we also like to have fun. We about to have as much fun up in here as if we were going to a U2 concert!

Now that you know how this post got its origins, let’s dive right in!

Financial Lesson One: Hard work builds character

You will find no arrogance here.

I like to live a simple life. More Tom Welling in Smallville less Paris Hilton in The Simple Life.

Fun Fact: I got to meet and take a selfie with Tom Welling at Awesome Con in DC. He was a down-to-earth guy. More on my adventures at Awesome Con to come later in another post 😉

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I am no better than anyone else, but I am always just as good.

I have said before in various blog posts, that I am not too good for anything. I am always willing to work. I’ve been a cashier, waitress, and an operator. I prefer to work two jobs if I can. I would spend and live off of one and bank the other. See my post Lipstick Confessions: Confessions Of A Teenage Waitress

Which one should you bank?

The larger paycheck of course.

See my posts

Money Lessons I Learned From Jay Leno

Money Advice I Got From John Legend

Your work ethic and habits determines your financial fate more than just about anything else.

My habit of saving allowed me to stop living paycheck-to-paycheck.

Within one year’s time, I went from saving $3500 a year to $13,333 a year.

See my post on Why Halle Berry And I Continue To Save So Much

Habits can make you RICH!

Financial Lesson Two: There is a psychology to dealing with people

People require FINESSE!

If you work in a field where you have to have constant direct contact with customers, you have to mentally prepare yourself.

Clean uniform. Check. Good attitude. Check. Smile on my face. Check.

Serving food is a hard job. Very stressful. I had to find ways to decompress.

It really helped counting my tips at the end of the night.

Read books, practice gratitude, exercise, or meditate.

You do whatever you have to do to make it through your day and SAVE MONEY!!!

Financial Lesson Three: Have an exit strategy

If you do not want to be slinging hash all day as your career, then you need to have an end game in mind.

While I was working as a food server, I was still applying to other jobs. I kept an up-to-date resume at all times!

I even had a date that I planned to leave. BE SPECIFIC. And write it down.

You tend to achieve goals when you put it on paper.

My biggest lesson from asking, Do You Want Fries With That? The same lesson they teach you on day one when becoming a waitress: WRITE. IT. DOWN.

Budgeting, Financial Freedom, Financial Independence, Investing, Retirement, Saving, Self-Made Millionaires, Wealth

The Skeleton Key Of Personal Finance

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Time, Watch, Key, Old, Antique

To follow, without halt, one aim: There’s the secret of success. – Anna Pavlova

To save, without stopping, one goal: There’s the secret of building wealth. – Miriam Joy, Founder of Greenbacks Magnet

You are about to receive a gift.

From me to you.

I am going to give you the secret to untold riches beyond your wildest dreams and I will give it to you for free.

You will learn how to amass a fortune so great that no man can measure its vastness.

I’ve got a secret. Shhh. But I’ll tell you. Come closer.

I’ll give you the secret to how I became a savings wildcat.

I pick a number, say $10k, divide it by 12, and save that amount monthly.

How you ask? I automate it.

The End.

Smooches 💋

What will this secret cost you? Nothing. Therefore, you will not have to sell your soul to get access to it.

What am I talking about? Saving money.

That is the Skelton key of building wealth. You save a portion of every dollar you earn. Then you invest it.

Investing is the equivalent of being paid royalties as an actor, musician, or author.

HERE. WE. GO.

WHAT IS A SKELTON KEY?

Skeleton Key, Antique, Old World, Wood

A skeleton key is a type of master key in which it is designed in a way so that it can fit and open numerous locks.

The term derives from the fact that the key has been reduced to its essential parts.

Saving money unlocks all the doors to everything you have ever wanted.

Have you ever wanted anything, but could not find a way to get it?

Saving money will solve that problem for you.

See my post How Millennial Money Inspired Me To Start Saving $13,333.06 A Year

My recommendation is this:

Women save $0.50 of every dollar you earn.

Men save $0.40 of every dollar you earn.

Why the difference? Because women earn on average $0.80 for every dollar a man earns.

Therefore, men have to save less and women have to save more in order to reach the same goal of fill in the blank $ dollar amount here.

WHY IS SAVING SO CRUCIAL?

No one can arrive from being talented alone, work transforms talent into genius. – Anna Pavlov

All wealth building starts with saving.

Don’t let anyone tell you any different.

Sure you may have to invest and diversify your money such as investing in stocks, real estate, and bonds, but you have to save money FIRST before you can buy or invest in anything.

If you have ever read a Jane Austen or Charles Dickens novel, then you know the theme always comes around to money.

See my post A Christmas Carol: Lessons In Finance, Business, And Life

Considering that Jane Austen never married and Charles Dickens grew up in a poor house, it is not surprising that the authors chose to hone in on this topic.

The sorted topic of coin. Both authors are British and in that society they have a class system.

You are either born into wealth and inherit it or you must work for many years and earn your fortune.

Many of the landed gentry lived off of their land. Profits that were made from owning land was how they made a living.

That monthly sum could be the difference between prosperity and being locked away in poor houses, which were a form of jail for the poor.

Here in America, we do not have a class system of royalty, nobility, tradesmen, shop keepers and owners, or farmers.

However, we do have a social ranking and social class. Those are the haves and the have nots.

If you want to find yourself in the realm of having, then you best start saving money for your future today.

Many years ago, I was laughed at for my paltry savings amount of 9% per year.

Now I am saving over 40% of my income.

No one laughs at me now.  

HOW SAVING MONEY CAN MAKE YOU HEALTHIER

They say wealth equals health. And that is an understatement if I ever heard one.

Having money allows you to pay for all of your needs.

This includes doctor visits, healthy food, and medicine.

See my post Why America Doesn’t Have Free Universal Healthcare And A Look At Those Who Do

Even something so simple as reading glasses can get pricey. I once saw a pair of Oakley glasses for $300.

You want organic fruit and meat? Well that costs.

Eating well not only affects your waistline, but also your brain functions.

It is said that children that do not get the proper rest, nutrition or eat breakfast before school perform lower on tests and have harder times concentrating.

See my posts Wealth Really Does Equal Health

HOW SAVING MONEY CAN MAKE YOU HAPPIER

Success depends in a very large measure upon individual initiative and exertion, and cannot be achieved except by a dint of hard work. – Anna Pavlov, Prima Ballerina

When you have the means to pay your bills, eat, and work in good health; then you are fortunate indeed to be able to pay your own way.

Being able to afford your monthly nut just makes you happier overall.

You are protected from the pitfalls of many of life’s hiccups.

Money offers protection.

See my posts

Dwayne Johnson: The Rock Solid Way And The Fast And The Furious Way To Make Millions

5 Wealthy Nuggets Of Wisdom From The Count Of Monte Cristo

Halle Berry On Success And Failure: Why She And I Continue To Save So Much

The One-Tweet Financial Plan  

Money Lessons I Learned From Jay Leno

Money Advice I Got From John Legend

Money And Greek Myths: Lessons From Clash of The Titans

You can get just as much pleasure saving as you can from spending.

I seem just as happy being able to have the ability to afford items than am to actually purchase them.

It is a great feeling to payoff debt. Every check you write frees you from obligation to lenders. Then your money can stop serving THEM and start serving YOU.

Make a goal to write down evet single bill you have and person you owe.

I started doing this and tackling every debt I had one by one.

Once I paid of my car, I owed $30,000 and my personal loan, I owed $20,000, then things started really taking off from there.

I was able to take these monthly payments, $450 and $333 respectively, and start investing that money. Now that money works for me in the stock market.

Here is one stock I recommend: VFINX or VFIAX. (You can also invest in the VTSAX or any equivalent)

Portfolio composition of VFIAX

Month-end 10 largest holdings
(22.40% of total net assets) as of 03/31/2019 

1Microsoft Corp.
2Apple Inc.
3Amazon.com Inc.
4Alphabet Inc.
5Facebook Inc.
6Berkshire Hathaway Inc.
7Johnson & Johnson
8Exxon Mobil Corp.
9JPMorgan Chase & Co.
10Visa Inc.

Whatever you do just make sure you not just SPEND money but SAVE money.

College, Financial Independence, Investing

What Is Your Degree Worth

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College is a reward for surviving high school. – Judd Apatow

Let’s face the facts. A college degree is not as valuable as it used to be.

Many folks are landing starting salaries well below what it cost them to get that required degree before starting that job that pays less than what it cost to go to school to qualify for the job in the first place.  

According to PayScale, the typical college graduate with zero to five years of experience is raking in $48,400.

The National Association of Colleges and Employers (NACE) states that average starting salary for graduates is about $50,004. So what does that say about paying $100,000 for that creative writing degree? That it is overpriced.

Let’s get down to brace tacks.

HOW MUCH MORE IS COLLEGE TODAY?

The price of college has now outpaced inflation.

college-education.procon.org

The average yearly cost of 4-year public college cost from 1971-2016:

2016: $20,967

1971: 8,734

140.1% increase in college costs

During that same period of time wages decreased by 5.4% over those 45 years.

You read that right. Wages actually went DOWN instead of UP with a college degree in your hand.

See my post College Alternatives that could save you $100,000

WHAT IS THE PRICE OF COLLEGE VS THE VALUE OF YOUR EDUCATION?

After you get that degree, then you have go out and get that coveted job. You want a great starting salary, but most employers will tell you they cannot quantify your knowledge but so much.

Really?

Cause college are sure about to slap a price tag on getting that knowledge.

Why not offer the same salary as the cost of the degree?

For instance, if you pay $45,000 for your sociology degree, then that would be your starting salary.

Let’s think about that for a second.

What if colleges and employers printed the cost of degree and payment for that degree? Then you would see something like this:

Petroleum/Mechanical Engineering: Degree cost and starting salary $90,000.

Psychology: Degree cost and starting salary $47,000.

That would alleviate a lot of stress and salary negotiations right there.

THE MOST EXPENSIVE DEGREES ON THE PLANET

“A university is just a group of buildings gathered around a library.” ― Shelby Foote

Education is an asset. And investing a great deal of money in a degree doesn’t necessarily guarantee a first-class education. However, it can alter the trajectory of your life if you are able to parlay all those late nights writing papers into some serious coin.

As of 2019, Harvey Mudd College has taken the crown for the most expensive college in the world costing students approximately $57,401 for the upcoming 2019/2020 academic school year.

If we time that by four, which is being nice considering the average college kid is graduation in 5-6 years, then we get a mind-blowing $229,604!

For some perspective, if we invest that money instead over four years and let it ride, then after 30 years with an 8% return you would have $2,310,426.27! Yes, those four years cost you over $2 MILLION!

You literally could have used your college savings and invested every penny in the stock market and gotten a higher return than what many will get after 10 years of drudgery repaying that $200,000.

It gets even more expensive if your kid starts in at the top and goes to a private school from K-12. This could cost you even more and the losses start to really pile up!

Say those adolescent years are spent in some swanky private school at $50,000 a year. Over the course of 13 years, you would have paid $650,000! Add that $229,604 and you are staring at education bills of almost $900,000!

I would take a check for $900,000 at the age of 22 any day of the week over going to fancy private schools for 17 years!

And just in case you were wondering.

If you invest that $50,000 private school money over 13 years in the stock market, you would have $1,160,746.02 with an 8% return. And add in four years of college, that would net you $1,822,512.19.

Going to public school isn’t looking so bad now is it?

Here are some of the most expensive colleges in the United States and the world.

These 12 colleges are currently the most expensive in the United States:

12. Duke University (18)
2018-19 Tuition & Fees: $55,960

11. Bucknell University
2018-19 Tuition & Fees: $56,092

10. University of Southern California
2018-19 Tuition & Fees: $56,225

9. Tufts University
2018-19 Tuition & Fees: $56,382

8. Amherst College
2018-19 Tuition & Fees: $56,426

7. Franklin and Marshall College
2018-19 Tuition & Fees: $56,550

6. Landmark College
2018-19 Tuition & Fees: $56,800

5. Harvey Mudd College
2018-19 Tuition & Fees: $56,876

4. Trinity College
2018-19 Tuition & Fees: $56,910

3. Vassar College
2018-19 Tuition & Fees: $56,960

2. University of Chicago
2018-19 Tuition & Fees: $57,006

1. Columbia University
2018-19 Tuition & Fees: $59, 430

These 11 colleges are currently the most expensive in the world:

11. Yale University
2018-19 Tuition & Fees: $49,480

10. UCL (University College London)
2018-19 Tuition & Fees: £9,250 or $12,080 USD

9. ETH Zurich (Switzerland)
2018-19 Tuition & Fees: CHF 1,298 (~US$1,310)

8. University of Chicago
2018-19 Tuition & Fees: $57,006

7. Princeton University
2018-19 Tuition & Fees: $43,450

6. California Institute of Technology
2018-19 Tuition & Fees: $45,390

5. University of Oxford
2018-19 Tuition & Fees: £9,250 or $12,080 USD

4. Harvard University
2018-19 Tuition & Fees: $46,340

3. University of Cambridge UK (United Kingdom)
2018-19 Tuition & Fees: £9,250 or $12,080 USD

2. Stanford University
2018-19 Tuition & Fees: $46,320

1. Massachusetts Institute of Technology
2018-19 Tuition & Fees: $47,704

Those are expensive colleges.

Did you know you could go to university cheaper abroad?

Image result for university of st andrews tuition

For some perspective on exactly how expensive colleges are in the United States, as an international student you could go to the same college as Prince William and Duchess Kate Middleton for less than it costs to go to Harvard, Yale, or Princeton! The cost is £20,770 or $27,125 USD. That is what it would cost annually to attend the University of St Andrews.

NOT ALL DEGREES ARE CREATED EQUAL

Education is not an equalizer. If you go to the same college as a science nerd majoring in Math, while you are majoring in philosophy, you both are not on equal footing by a long shot.

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In light of the recent college bribery scandal, let’s talk top-tier universities.

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If you were to get an acceptance into Yale or Duke University, congrats to you, as you are among the college elite. However, don’t break out the celebratory champagne just yet.

Although you and another student may be paying the same amount to go Duke, if you major in a different field, then that degree can easily eclipse yours.

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Image result for lowest paying college majors

Put it this way. You and another student both pay $48,000 a year over four years. That is $192,000. You become an engineer raking in big bucks right after grad by getting a starting salary of $95,000. Your friend on the other hand, let’s call him Joe, majored in piano or violin and is only able to get a starting salary as a backing musician for $38,000.  

That is a difference of $57,000 a year.

You ask how is that so? We went to the same university. We paid the same amount.

Yes, but your degree is in higher demand than Joe’s.

Then you may ask yourself: Well why didn’t Joe pick a more in demand degree? And therein lies the rub.

Joe is a skilled musician. That is where his passion and interest lie. Even if he would have seen a brochure, which there aren’t any in wide circulation on any college campuses that I have ever been to, showing the starting salaries of majors he still would have chosen music.

The playing field of majors is not level. Therefore, you need to decide before you even step foot on a college campus what you want to be.

This is a small list of what employers are paying for college majors.

My suggestion is that you do a search on what it costs and what it pays to be a lawyer, accountant, doctor, or violinist. When you know what your options are, then you can at least make an informed decision.