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

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

Why You Should Use Index Funds in Your Retirement Accounts

When I first started learning about investing and retirement accounts, I struggled to determine where I should invest my money.  Thankfully, several great personal finance web sites (including Motley Fool and Bogleheads) agreed that investing in index funds led to the most benefit for most people.  Index funds are mutual funds that track what is… Continue reading Why You Should Use Index Funds in Your Retirement Accounts

Great Personal Finance Podcasts

One of my favorite things to do on long drives is listen to personal finance podcasts.  There are a handful that I have found (so far) to be better than the rest: My favorite podcast is Afford Anything with host Paula Pant, as she combines an entertaining delivery with great guest speakers.  Paula encourages listeners… Continue reading Great Personal Finance Podcasts

Measuring Progress – Tracking Net Worth

As we budget, save, grow our income, and practice self-control in spending, it’s important to have a method for tracking progress.  After all, if we are indeed working to improve our financial lives, shouldn’t we have a way to measure our improvement (or regression)? I have a coworker who has turned into a terrific friend and… Continue reading Measuring Progress – Tracking Net Worth

Vanguard Admiral Shares

Vanguard investors who have less than $10,000 to invest purchase Vanguard’s entry-level Investor shares .  Vanguard offers investors the ability to “upgrade” their shares by purchasing Admiral shares once investors accumulate a given amount within certain mutual funds.  Admiral shares have lower expense ratios than their Investor shares counterparts, allowing investors to keep more of… Continue reading Vanguard Admiral Shares