Defining Financial Independence

by Michael on Mar 20, 2014

If you prowl around the internet a bit, it won’t take you long to find someone chronicling their journey toward “early retirement.” Of course, what these individuals are seeking isn’t really early retirement, but rather financial independence. In other words, they’re trying to reach the point at which they no […]

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Would Financial Warning Labels Help?

by Michael on Jan 6, 2014

Have you ever been to a restaurant where the menus are labeled with the calorie contents of each dish? They don’t label menus around here, but I often see it when I travel. And, though such labels may have little effect on the average diner, seeing those numbers always makes […]

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In response to my recent post about estimating the true cost of ongoing spending, a reader (and blogger) named Edward said: On the flip side, I’m on track to have a fully funded retirement when I am ready to retire. Why forgo a pleasure now to have more money than […]

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Today I want to share a rule of thumb to help you quickly estimate the long-term impact of your ongoing spending decisions. If you’re having trouble keeping your spending in check, this tip will hopefully motivate you to plug some of the holes in your budget. And it may help […]

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Net worth is a common measure of wealth. At the same time, different people tend to define it in different ways. In its purest form, net worth is calculated as assets minus liabilities. Essentially, the amount of money you’d have if you sold everything that you own and paid off […]

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How Much Money to Be Wealthy?

by Michael on Aug 2, 2013 · 3 comments

According to a recent survey of affluent investors by UBS, a full 70% of those with assets (excluding the house) worth $1M or more don’t consider themselves to be wealthy. At what point do people start to feel wealthy? Well, it seems that it’s not so much about having a […]

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Spend Less Than You Earn

by Michael on Jun 17, 2013 · 2 comments

Perhaps the best known bit of financial advice out there is that you should “spend less than you earn.” You’ve probably heard it over and over (and over!). And for good reason. This is a bulletproof solution to whatever financial woes you might face. And yet… So many people seem […]

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How to Handle a Windfall

by Michael on Jun 3, 2013 · 12 comments

A couple of weeks ago, someone won a nearly $600M jackpot — though it was “only” $380M if they took the lump sum cash option. And then, a few days later, the news broke that Yahoo! was buying Tumblr for cool $1.1B, making their founder fantastically wealthy. Time and again, […]

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