When Compound Interest Empties Your Wallet

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“Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” – Albert Einstein Compound interest is a financial concept I really, really wish was emphasized more in the United States’ education system.  Of the many subjects taught in school, all of them with some value… Continue reading When Compound Interest Empties Your Wallet

Personal Finance Foundation – Part 4 – Invest, Invest, Invest

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Having examined how you can grow net worth by reducing spending and growing income, we now come to the most powerful tool for growing net worth: Investing. Reducing spending produces quick wins in growing net worth, but there’s only so much cost cutting you can do until you are living on a bare bones budget.… Continue reading Personal Finance Foundation – Part 4 – Invest, Invest, Invest

Personal Finance Foundation – Part 1 – A Starting Place (Calculating Net Worth)

So you’re on the journey to get your financial house in order.  You first need to know where you’re starting.  You do this by measuring your net worth.  Net worth is calculated by adding up your assets and then subtracting your liabilities.  A very, very simple example: You have a savings account balance of $10,000… Continue reading Personal Finance Foundation – Part 1 – A Starting Place (Calculating Net Worth)

What Can You Learn from the Subprime Mortgage Crisis?

It’s hard to believe time has passed so quickly.  Ten years ago the subprime mortgage crisis led the U.S. economy into a severe recession and carnage ensued.   Many people lost their homes along with huge portions of their retirement savings.  Credit markets froze and taxpayer money was used to purchase toxic assets from the… Continue reading What Can You Learn from the Subprime Mortgage Crisis?

Is College Worth It?

The cost of a college education and the associated debt that often accompany a college degree were both hot topics during the recent presidential election cycle.  The price of college tuition has soared and greatly outpaced both incomes and inflation.  One fringe presidential candidate even campaigned on promises of “free” college education for all (rant:  We’ll… Continue reading Is College Worth It?

Three Lessons from The Millionaire Next Door

The Millionaire Next Door is my favorite personal finance book because of three life-changing lessons it imparts, all supported by mountains of research data gathered and analyzed by two professors, Thomas Stanley and William Danko.  These lessons provided me with a financial enlightenment when I was first learning the basics of personal finance, and I suspect… Continue reading Three Lessons from The Millionaire Next Door

Psychology and Fear in Personal Finance

Be fearful when others are greedy.  Be greedy when others are fearful. -Warren Buffet Warren Buffet is one of the most successful investors of recent times and provided this great quote in 2008 during the height of the subprime mortgage crisis.  During the 2007-2009 bear market, the S&P 500 lost over 50% of its value… Continue reading Psychology and Fear in Personal Finance

Investment+Savings Challenge

One of my personal financial goals is to become financially independent.  For those unfamiliar with the term, I define financial independence as follows:  A state in which financial assets generate sufficient income to pay for a chosen lifestyle.  In layman’s terms:  More assets = good, combined with fewer expenses = better. Financial Independence = Passive… Continue reading Investment+Savings Challenge

Considerations for Investing as a Catholic, Part 2

In my previous post regarding things Catholics should consider when investing, I spoke about one mutual fund family (Ave Maria Mutual Funds) as an example of a fund family that offers investments that abide by United States Council of Catholic Bishops (USCCB) guidelines.  There are certainly other fund families that abide by USCCB guidelines and… Continue reading Considerations for Investing as a Catholic, Part 2

Considerations for Investing as a Catholic

In a previous post I recommended investing in index funds in order to minimize expenses and better increase your nest egg.  Unfortunately, though, many of the companies contained within a standard index fund conduct activities that are in opposition to Catholic teaching.  For example, the owner of Rick’s Cabaret strip clubs, RCI Hospitality Holdings (RICK stock… Continue reading Considerations for Investing as a Catholic