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If you’re a parent and have your own financial situation in order, this is a great way to make future millionaire out of your child. Here’s the details of how it works:⁣‎‎ ⁣‎‎ Custodial Roth IRA: It’s just like a regular Roth IRA, but since those under 18 can’t open investment accounts in their own […]

This simple graphic pinpoints what it takes to build wealth. Broke people do the top half. Wealthy people do the bottom half. You simply cannot get ahead if you’re resetting yourself back to zero by spending every dollar you make. I recognize there are endless examples of systemic inequality in our world, and many people […]

As I predicted, tax day is moving again this year! Last year (due to COVID) tax day was moved to July 15th. Today it’s not moving as much, but the IRS just announced tax day is May 17th this year. That means you have until that date to contribute to your 2020 IRA and file […]

Where you live and what you drive are likely the two biggest decisions you’ll make regarding the impact they have on your finances. And frugality in these areas has a doubly effective impact. Cheaper stuff is generally cheaper to maintain.‎ ‎ A few years ago I lived in this tiny one bedroom apartment. Maybe 500 […]

When I’m out in public I often get this question from fans who recognize me. It usually goes something like this: “So I’ve heard Roth IRAs are good and index funds are good, but which is better?” And my answer to them is always the same: “How dare you speak to me.”‎ ‎ But seriously, […]

As with most things in life, the devil is in the details on this one. But the basic idea is solid. If instead of spending ALL your money on a car (or worse yet BORROWING money for a car, and magnifying the devastating impact of interest and depreciation) you spend HALF your money on a […]

Most of my Instagram talks about living below your means and investing early and often to build wealth. And sometimes someone blows me up in the comments saying something like “Why are you being such a liar, you never talk about how YOU actually got rich”. To them I have two things to say.‎ ‎ […]

The cool thing about measuring your time until financial independence based on your savings rate is that it works no matter your income level. Spend half of what you make, and in 15 years your investments will grow large enough to provide for that level of spending forever! Spend all of what you make… well, […]

Over the last 40 years in the US inflation has averaged about 2.9% per year. That means every year, your dollar buys 2.9% less stuff then it did the previous year. Over 24 years, that means your dollar only buys HALF as much stuff. Under the mattress isn’t a good place for cash. Even if […]

I heard this clever quip the other day about how rent is the most you’ll pay whereas a mortgage is the least you’ll pay. I think new homeowners often forget that. We get tempted by the idea of owning our own home, building equity, gaining value. And hey, the mortgage is the same as the […]