Wanna Retire Early? Do this...

Yahoo! Finance had an article recently about 6 Secrets of Early Retirees. In this article stastics show the difference between people who are able to retire early (or at all) vs those who wait to save for retirement.



The best time to start thinking about retirement is now, while we are still young. Remember compound interest is our best friend in this high stakes game of retirement russian roulett. The longer and more ways our money can grow the sooner we can retire and hopefully live as we choose.

I talk a lot about savings; savings for short term, medium, and long range goals. Of course this would be a long term goal, to retire...one day. The typical retirement age is 65, I don't know about you but I don't want to be sitting at someone else's desk, doing someone else's work at 55, 60, or 65.

When I first got into personal finance, I spent a lot of time thinking about retirement. At first, "experts" were saying a million would get you by in retirement. I don't even know how many millions "they" say now. But all I know is to be able to retire, I have a long way to go - not just in terms of years, but money. I know I am not using my resources as I should be, but the first steps in saving for retirement is to pay off/down debt. Once you have this "extra" money from the debts, you can funnel it into retirement accounts.

If your company offers a 401(k) match try to at least meet that, even if you are paying down debt. It's like free money. Then once you are able you can open a Roth IRA to personally fund your retirement. The key is to be able to put away as much as possible, as early as possible. Remember, compund interest...



The Yahoo! article found that people who are able to successfully retire early (or at all) have these charaistics:

1. Save for retirement outside of just their workplace plan: 69% of early retirees do this vs. 60% of those who plan to retire after 65 and 49% of those who say they'll never retire.

2. Defer a high percentage of their salary into a retirement plan: Early retirees defer a median of 10% vs. 6% for those who plan to retire after 65 or don't plan to retire.

3. Start saving at a younger age: The median age early retirees begin saving is 25 vs. 30 for those who will retire after 65 and 31 for those who never plan to retire.

4. Have a thought-out retirement savings strategy: 71% of early retirees have either a written plan (16%) or a non-written plan (55%), while just over half of those who plan to retire after 65 do and just one-third of those who will never retire do.

5. Be very involved in managing and monitoring their retirement accounts: 71% of early retirees say they are very involved vs. 58% of those who will retire after 65 and just 45% of those who say they will never retire.

6. Have saved the same amount or more since the recession began: 71% of early retirees are doing this compared to 61% of those who will retire after 65 and just over half of those who never plan to retire.



What are you doing now for retirement, later?

20 Money Lessons for 20 Somethings

We all wish we could have gotten GOOD money advice before we got into the habit of BAD money moves. Well, over at Personal Dividends, they gave 20 Money Lessons for 20 Somethings...



- Overdrafting is expensive: When you spend more money than you have in the bank, it’s going to cost more than just putting that money back. Overdraft fees can add up and get very costly. Don’t throw money away; keep up with your balance and keep your spending within it.

- A budget is necessary: Budgets sound boring but we do so much better when we’re disciplined. Set up a budget and stick with it so you have enough money for your needs and maybe even your wants.

- Credit cards aren’t evil if you know how to use them properly: While some may tell you not to get a credit card, or why you don’t need one, that doesn’t mean credit cards are the root of all evil. It’s all about using credit cards properly: buy something with the card and pay it off in full every due date.

- Your credit will follow you: Just when you thought you got away with not paying that bill a few years ago, it will come back to haunt you. Late payments stay on your credit for 7 years, and by that time, you’ll probably be ready for a new job, a new home, or new credit, and late payments may prevent that from happening.

- An emergency fund will come in handy: You may have heard that shit happens because it does. You’re not immune from emergencies. Have an emergency fund for when you have your moment of need.

- You can start a successful business: You don’t need a lot of money to start a successful business. If you have the motivation and an idea, you can get it done. Don’t procrastinate; start your business today.

- Don’t get stuck in the rat race: You may have heard that a desk job is for you and moving up the corporate ladder is the way of life, but that’s not the case. If you’re not feeling it, it may not be for you. Explore other options!

- Insurance is another emergency fund: I once heard in a Chris Rock movie that insurance is “in case shit happens”. Sounds like an emergency fund, doesn’t it? You should be insured for your health, your car, and your home at the very least. Better safe than sorry.

- Invest in what you want to invest in: If you want to invest, don’t let someone else make decisions for you unless that’s what you want. If you have an idea of what you want to invest in, go for it. You’re young enough to be more adventurous in your investments.

- Children aren’t cheap but they don’t have to break the bank: So many people rant about how expensive kids are, calculating the costs for 18 years to be almost a quarter million dollars. If you are frugal and spend your money in a smart way, they won’t break the bank and you won’t be broke raising a child.

- Don’t get too comfortable with loans: Loans aren’t free money and you have to realize that with every loan comes an interest rate. Don’t get comfortable taking out numerous loans because you’ll have to pay them back and some.

- Retirement is closer than you think: You may be in your 20s and think you have years to think about retirement, but it’s closer than you think it is. If you start saving now, you’ll pat yourself on the back later. Even if it’s $20/month. Put it in an interest bearing account and watch your money grow for 30 years.

- Save for a goal instead of just splurging: When you have some extra pocket money, it may be burning your pocket to be spent. Instead, have a savings goal and once you meet it, then cash in and spend your money.

- The IRS is watching: If the IRS sends celebrities to jail for tax evasion, they will do the same to you. Do your taxes every year.

- You aren’t getting social security: That’s a monster within itself. Your grandparents may be getting it but don’t hold your breath. Look into 401(K)s and IRA accounts.

- Don’t forget your will: Unfortunately, we’re not immortal and we don’t know when we’re going to go. Think about who and what you want included in your will.

- Your finances will combine when you get married: Even if your spouse and yourself decide to keep your finances separate, you’ll still be tied if you share things like a home, a car, a business, or children.

- Divorces are expensive: Don’t get married just to get married. Divorces are expensive. Try to choose your partner wisely before jumping the broom.

- Renting is not throwing your money away: You may have heard that renting is throwing money away but that’s not the case. You’ll have a place to live, hopefully you remembered to get renter’s insurance, and you’re still paying for the same things you’d pay for in a bought house.

- You need a lot less than you think: We live in a culture where over consumption is expected. Not saying you need to be a minimalist, but it’s wise to think about living with the bare necessities.

Those are some great tips and give great prespective to your financial life and will make your overall life even more simple. Take these lessons and learn from them....

Go forth and use what you now know!!

Ponder This....You Will Quit Before I Quit, You will Give Up Before I Give Up

ET the Hip Hop Preacher is an amazingly motivational man! He does weekly Videos on his YouTube Channel every Monday.
Visit ET at his official website http://etthehiphoppreacher.com/ Also connect with Eric on his official Facebook fanpage at http://www.facebook.com/ETTHEHIPHOPPREACHER Follow Eric on Twitter http://twitter.com/#!/Ericthomasbtc


In this video, ET talks about not giving up and seeing things through. Fighting to the end, even if the end is overtime or extra innings. DO NOT QUIT!



Success might not come when you want or expect it, but don't give up and it will come!

Make the Rest of Your Life, the Best of Your Life!

It's Not just Financial, It's Personal Too: 6 Tip to Become More Productive

Most of us really don't know how to be our most productive selves. We think we do, but really we start a lot of stuff and never finish or don't use the time we do have correctly. I am very guilty of this!

I work and work and work and feel like nothing ever gets accomplished. I don't use my time effectively. I thought I had time management on lock because growing up I played sports, was in the band, and was in honors classes. Ha! Boy have I been proven wrong lately!

Here are some tips to help US ALL be more productive...



1. Embrace simplicity

Simplicity drives true productivity. Think about the small, relatively inconsequential tasks that compete for your attention every day. What can be eliminated, automated, delegated or relegated to the back-burner? Productive individuals ruthlessly root out those tasks that compete for their time and sap their resources.

2. Manage distractions

The forces of our hyper-connected, 24/7 world offers us amazing opportunities to engage—and even more opportunities to become distracted. The truly productive understand the threat of distraction in all its forms and create clear boundaries between the task-at-hand and the host of diversions that vie for their attention. Whether the distractions are work or play, establishing a “sacred space” for what you’re doing is key in becoming more productive.



3. Bend activities around inspiration

No strategy can match the motivation that comes from being inspired. Productive individuals understand this and leave their schedules flexible enough to identify and respond to inspiration. Though inspiration doesn’t always come and we often have to force ourselves to complete some tasks, knowing how to leverage those motivated moments can transform our work experience, cut the time investment and improve the quality of what’s produced.

4. Seize small blocks of time

What would get done if you waited until you had enough time? Productive people understand that small blocks of time used wisely can whittle away at projects large and small. Whether it’s 15 minutes before work or an hour during a commute, being ready (read: organized) to seize the moment can make all the difference.

5. Make lists and set goal paths

Highly productive individuals understand that every goal, no matter how small is driven by smaller supporting goals. Dissecting this dependency and flow is essential to creating sound goal paths.



If you want to change careers, that goal may be driven by several smaller goals like going back to school, improving your networking skills, updating your resume or getting a new certification. And each of these smaller goals is supported by even more granular sub-goals. Creating daily “to-do” lists is perhaps the most common way we identify each of these mini goals and understand how they fit into the bigger picture. Productive people tend to be ardent list-makers and are motivated by accomplishing the small daily tasks that, over time, drive larger achievement.

6. Multitask…sometimes

Multitasking gets a lot of good press in modern corporate culture. The willingness and ability to juggle five or 10 tasks simultaneously is almost assumed, and most employees are trained to be circus performers early on. But what subtleties of concentration, recall and quality are lost as we indiscriminately multitask?

The truly productive realize that multitasking can be useful at times and utterly ineffective at others. Choose your occasion carefully. For those jobs that don’t require creative problem solving, interpersonal communication, attention to detail, or quick response times, multitasking works great (but what exactly are those jobs?). The rest of the time, embrace the long-forgotten “mono-tasking”—it’ll boost the quality of your work, reduce your stress, help your communication skills and ultimately, make you more productive.

In the end, productivity is one part old-fashioned discipline and one part smart strategy. Organizing our lives so that we optimize our chances of being productive is half the battle. Once we see results and start to build traction, the strategies become habit and we open ourselves up to a life that’s powered by smarter time management, more focused work, and greater personal and professional achievement.

Now, go be productive!

Quarter-Life Crisis? Responsiblities? What the...

I don't know how long this Quarter-Life crisis thing is suppose to last, but I'm over it. For those who don't know a Quarter-life crisis is Wikipedia defines it as "a period of life following the major changes of adolescence, usually ranging from the late teens to the early thirties, in which a person begins to feel doubtful about their own lives, brought on by the stress of becoming an adult. The term was coined by analogy with mid-life crisis."

After I graduated from Grad School, I learned just how real the Quarter-Life Crisis is. I had little work experience, a lot of student loan debt, and little employment opportunities. It was a very stress full couple of months but I did finally find a job and began living a grown up life full of bills and obligations. I took the position because I needed a job, but it has nothing to do with the subject I spent 6 years and way too much money studying.

So, here I was truely on my own in the real world. I was financially on my own in undergrad but thats awhole different set of priorities... Anyway, I now have a grown up job and grown up bills, but no idea what I wanted to do with my life! All my friends from high school and college were getting married and having kids and me....I'm living with roommates, hours from any family members, and trying to figure this adult thing out on my own.

I have been at the same job since March 2007, still not doing what I went to school for and still paying those crazy student loans I took out. I have my own place, a vehicle, a puppy, and a growing business. I think I finally found something I want to do with myself. Still I look around and people from high school and college are still getting married, living the family life, and having babies. I guess my crisis is that I want 2 different lives: the family life and the single life, I want to experience life but I want to settle down.



I know I'm not the only one experiencing this and I don't have the answers to avoid or end it but I do have some tips for managing it...

Step # 1 – Don’t Fight It
Everything isn’t OK. If all your brain can focus on is changing your current situation, listen to it. Just recognize that the crazy ideas that it’s generating may not be the solution.

Step # 2 – Try Something New
Your current level of happiness is complication of your past experiences. Therefore, if you’re suffering from a lack of happiness, you need to create new experiences.

Sometimes this could mean taking a drastic step and quitting your job. However, don’t count out the small experiences such as finding a new hobby, learning something new, etc…

Step # 3 - Think before you act.
Just because you impulsively want a change in life, remember you have responsiblities now. We would all like to quit our job and pursue other things but that may not always be the best thing at the moment. Make a plan A, B, C...to keep yourself from making a mistake that could take years to recover from.

Becoming an adult isn't easy and I'm sure if I would have listened to all those lectures I got growing up, things would be easier now but I didn't. Finding my own way has been challenging but fun, too (and stressfull). It's a bumpy ride; strap in and enjoy the ride!

Remember...

Life isn't about the destination - it's about the journey!