We have all heard that compound interest can help us become wealthy. Even Albert Einstein knew this when he famously said: "Compound interest is the 8th wonder of the world. He who understands it, earns it . . . he who doesn't . . . pays it." But unless you remember the lessons from your high school Algebra classes, you may not really understand how compound interest works. Don't worry, I'm here for you! Not only will this article help you to understand exactly how compound interest works, but it will also show you the power of compound interest by using a few examples.
-
-
30 Ways to Build Wealth in Your 30s
Your 30s can be one of your best decades ever for building wealth. You may finally have a job that you want to base your career around and you may have started to build some wealth. But your 30s can also be very difficult financially, as you may be starting a family, preparing for your kids to go to college, thinking about saving for retirement, and even trying to keep up with the Joneses. Fortunately, there are some great moves that you can make with money in your 30s to put you on the right path financially. Here are 30 things that you can do to build wealth in your…
-
How to Retire at Age 50
As a teacher, I really enjoy my job. It allows me to help shape the lives of countless teenagers. It also helps to keep me young as I learn about the thoughts, hopes, and dreams of teenagers. Although I enjoy my job, I don't want to be forced to work forever. In other words, I want to have the option of retiring early. Perhaps this means that I do part time work or maybe I'll actually stop working completely. Maybe I´ll even continue to work full time. But no matter what, I want to have the option of leaving full time employment by the time I am 50 years old.…
-
How to Use Balance Transfers to Pay Off Debt
Guess what? If you want to pay off debt, I have a really great guide that will help you. In this guide, it will tell you that getting out of debt involves a ton of hard work. There is no magic pill that will automatically get you out of debt. Balance transfers are NOT a magic pill that will get you out of debt automatically. However ... if you have high interest credit card debt, balance transfers can be a great way to help get out of debt. I've even used them to make sure that I was paying low interest rates as I got rid of over $400,000 in…
-
The Ultimate Guide to Getting Out of Debt
Being in debt to a bank, credit union, or another person is one of the main things that holds so many people back financially. Instead of working for ourselves, we spend hundreds of hours every year working to make someone else wealthy. How demoralizing is that? Instead of making money that will help us live a comfortable life, we are making money that we have to instantly give to a bank. Have you ever noticed that banks have the nicest real estate in every major city? They are able to buy those fancy buildings because of all the interest that you and I have paid to them over the years.…
-
Be Smart Now and Rich Later: How Teens Can Win with Money
As a high school teacher who talks openly about money and investments with my students, I am often asked about money. Even for the student who doesn’t want to pay attention in math class, they often get excited when we start talking about money. However, even though every one of my students wants to have money when they are older, many of them feel that investing takes too long. Many of them want to become rich now … not when they are in their 40s, 50s, or even 60s. And every single one of my students doesn’t want to hear about things that they can do when they turn 30.…
-
How Women Can Manage Money and Save for Retirement to Enjoy a Secure Life
This is a guest post written by Nelly, who writes at My Way of Viewing about topics that deal with personal finance. Thanks, Nelly, for sharing this topic with us! To get in touch with her, please visit her blog. It is a proven fact that women are still lagging behind on saving for retirement and a secure financial life. The average retirement savings of women are much lower than that of men. As per a report published in “Workplace Benefits Report”, more than 70% of women are worried about their retirement savings, whereas only about 58% of men are worried about their retirement. Let us discuss how women should…
-
Should You Pay Off Your Mortgage Early?
Many things in personal finance are pretty easy to figure out. However, some topics are a bit more difficult to figure out. For instance, I love reward credit cards because I have saved over $30,000 in travel by using them. I've received a free trip to New York City with my wife, saved a lot of money on a Disney World trip with my family, and went on many other free or almost free vacations. But many reasonable people disagree with me. They may not like credit cards because they may enable us to go into debt and spend beyond our means.
-
Stay Out of Debt FOREVER by Planning for Huge Expenses
If you’ve read part of my story on this blog, you probably know that I like used cars, hate debt, and absolutely love to travel. To me, these three items all build on each other. For instance, ever since we got married, my wife and I have always paid for our used cars with cash. This has helped us to get rid of all of our consumer debt and most of our mortgage debt. It has also allowed us to travel more than we would have if we were in a lot of debt. This has created a perpetuating cycle. Buying used cars helps us to get out of debt.…
-
4 Non-Sophisticated Things That You Should Do With Money
There are many sophisticated things that we could do with our money. We could: Create a CD ladder for money that we want to save. Use tax-loss harvesting to save on taxes when we invest. Convert our IRA to a Roth IRA by using a backdoor Roth conversion. Each of these sophisticated financial techniques could save us anywhere from hundreds to tens of thousands of dollars throughout our lives. Because they are so valuable, I definitely encourage you to become educated about each of them and see if you can use them either now or in the future. While each of these are very valuable techniques to save money, they…
