Saving Money is an Insurance Policy

insurance policyAn Insurance policy can save you during the bad times as you contribute to it during the (hopefully) good times. You contribute to it in case you do need it. It’s like putting in the work and preparing for the next presentation or job interview.  Preparation isn’t needed but if the spotlight suddenly turns to you, you’re prepared to capitalize and pounce on the opportunity. Without preparation or practice, there may not be a guarantee of success but there will be a guarantee of failure. Saving puts you up to succeed in the down times.

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Increasing Credit Score Means More Money

credit-scoreIn November 2014, I wanted to start building credit. I got tired of spending money with cash and not getting credit for it. It doesn’t take any more effort to use a credit card rather than to use cash. In fact, it actually takes less effort because I don’t have to plan out my purchases in advance, unlike when I’m buying things with cash. Back then, I opened my first credit card and didn’t start with any credit score. Fast forward, I’m now increasing my credit score (I’m at 743 now) and will share tips on how to increase it.




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Get Out of Debt or Invest? Don’t Take On Bad Risk

get out of debtA common question is whether to use leftover money to get out of debt or invest. The idea is that if the return you get in the stock market is greater than the debt’s interest payment, you should do it. I am here to tell you, DON’T DO IT. I will go over reasons why paying off debt is better than investing. I’m a big fan of using debt to your advantage if it makes sense. However, this isn’t one of those times where it makes sense. If you’re in a significant amount of debt, it means that you’re in a hole. Doing something that gets you out of the hole is the necessary action you need to take. Investing can put you in a bigger hole.

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Spending Money can Be Expensive

spending moneyI’ve wrote about how saving a significant amount of income paves the road for financial independence. It may not happen overnight and sometimes I have a hard time grasping that. I want to get there fast, but cutting corners could set me back along the way. Therefore, I look for ways to be patient and let things run its course. Saving consistently over time is an inevitable way to reach financial freedom. However, on the other side of savings rate is looking at what you’re spending money on. Monitoring your expenses and spending is just as important as monitoring your savings rate.

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Make the Most of Time and Achieve More

Most of TimeTime is finite. Yet for some people, like Jack Dorsey who runs 2 multi billion companies, it almost feels like they are breaking the 168 hour limit that’s set for everyone. He fully takes advantage of the seconds and minutes he’s given. It’s the biggest kind of waste when you don’t take full advantage of the time you have. Making the most of time that you are given is important to reaching financial independence.

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Making a Difference (MAD) Series

Canadian Budget Binder, a personal finance blog, featured Solving Finance in a series he calls Making a Difference (MAD). Come find out a little more about myself and why and how I want to make a difference with my blog that I have. Head on over to check it out!

CBB has a lot of great content packed into one post every Saturday. Today he’s comparing a life of a tooth fairy to being rich. A different approach and idea to achieving financial goals. 


Be Brutally Honest With Yourself

Brutally HonestHonesty is the best policy, they say. What’s even better is being brutally honest. As humans, we have a tendency to think of ourselves to be better than we actually are. If you take a poll with a large sample size to judge a skill they have, the majority of them will say that they are better than average. Whether they say that because they actually are or because they think they are are two different things. This is called the overconfidence bias. 

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Understand How to Buy Just as Much as How to Save

How to BuyThe key to having a lot of money is to save a lot of money. Having a 20-50% savings rate consistently over the long term will let you keep money. However, a lot of others tell you how to save, but not a lot tells you how to buy. Spending money on things that are lower cost to save money could be detrimental over the long term. Warren Buffett famously said,


Price is what you pay, value is what you get.

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Only Get Debt That Give More Value Than the Cost

DebtAmerica is addicted to debt. There’s $12.29 trillion in household debt just through till the second quarter of 2016. I can’t imagine what the amount is now. It’s not just the consumers who are in debt, the government is too, with an estimated $19 trillion in debt by the end of FY 2016. The government’s Federal Tax revenue is an estimated $3.3T. An almost 6x income to debt ratio is not sustainable and who knows what will happen when a recession happens. The government is living on the edge of a cliff and it only takes a small blow of wind that will push it over and wipe out everything.

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Define How You Get Motivated

Get MotivatedThere are tons of ways to get motivated. It’s what you need before you decide that you want to do something. Whether you want to earn a little extra cash, work harder to get that job promotion, or get out of bed, motivation is the first step before you make a decision. You may want to reach financial independence faster, get out of bed for food, or have more financial security. These are great end results, and the first thing to get motivated is to define what drives you.

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