Why We Said “No Thanks” to 20 Million Dollars

turned down millions of dollars

We recently turned down millions of dollars…$20 million to be exact. And quite honestly, I think it’s one of the best decisions we’ve ever made. Think we’re nuts? We might be. But after reading this post, I think many of you will agree with us…and you’d give up the $20 million too.

Why We Recently Turned Down Millions of Dollars

“Lately, we’ve been thinking about buying a boat…”

I was impressed. This, coming from my brother-in-law that had invested all of his money either in the stock market or in real estate and spends very little on pleasure. Heck, the guy is probably worth over a million bucks at 36 years old, and he and his wife and young kiddo still cram themselves in a small duplex because they’d rather have an investment than a true home to call their own.

…And then he ended his statement with…

“And you know what? We could charter a dinner cruise with it to earn some income, write off the expenses, and still use it once in a while for our own pleasure!”

I stared at him blankly and mustered up the courage . . . → Read More: Why We Said “No Thanks” to 20 Million Dollars

5 Unique Investment Ideas for First Time Investors

unique investment ideas

There comes a time in every person’s life when they realize that working hard isn’t necessarily synonymous to wealth. And, if something were to happen and they couldn’t keep their job anymore, their financial security could be threatened. They know it’s smart to invest for their future, but the world of stocks and bonds sounds so foreign and frightening, they just can’t pull the trigger on investing. This is where our top five unique investment ideas come in! 🙂

5 Unique Investment Ideas for First Time Investors

Here’s the good news about stock and bond investments: you don’t necessarily have to go there to win with investing.

As a first-time investor, you don’t need to enter the complicated world of Wall Street. In fact, picking out single stocks and bonds could turn out to be a big mistake (the stock market tends to punish lack of experience). For better results, start by investing in something that you love and understand and, in time, you can move on to other forms of investments.

Related: How to Make a Passive Income with Wealthsimple

#1. Collectibles

Sometimes, collecting for fun and profit is . . . → Read More: 5 Unique Investment Ideas for First Time Investors

Visualization: Daydreaming Your Way to Success

reach financial independence

I’ve been to quite a few seminars on success. I purchased the eBooks, watched the videos and joined the webinars too. One thing that always struck me is the word “visualization.” It seemed that so many success coaches were talking about the idea of visualizing your way to success. But what is visualization? Isn’t that just a glorified way of saying daydreaming? How does daydreaming lead to success?

Visualization: Daydreaming Your Way to Success

I was baffled by the concept that if you think it, you can do it. However, I had a turning point in my life after learning about Russell Ruffino. Like many, Russ Ruffino talked quite a bit about visualizing your way to success. He also went into detail about how it leads to success, and after applying his teachings, I’m becoming more successful myself.

What’s Wrong With How Most Visualize Success

If you’ve joined seminars on success, purchased eBooks, joined the webinars, and more, then you know the story. Spending just 15 minutes of the day thinking about what success might be for you can help you find that aforementioned success.

So, after coming across this . . . → Read More: Visualization: Daydreaming Your Way to Success

Is Tiny Living For You? What To Consider Before Buying A Tiny House

before you buy a tiny house

In a time where bigger houses mean better lives, many people are now trying to escape the rat race and go back to simpler living. Tiny living has become a movement in recent years, with more and more people getting rid of high costs of living and city dwelling for more serene and minimal lifestyles. But is tiny living for you? Here’s what to consider before buying a tiny house.

Is Tiny Living For You? What To Consider Before Buying A Tiny House

This post is written by our staff writer, Kimberly Studdard.

Can you even do it?

Before buying a tiny house, the first thing you should consider is if it’s even possible for you to do.

Does your city allow it? Are you willing to move to a new city, or even state, to do so? Are there any limitations that you have in your life that would hinder you from making the switch to tiny living?

While some cities and states are considered tiny living friendly, there are quite a few who prohibit small home dwelling. Some city ordinances say that your home must . . . → Read More: Is Tiny Living For You? What To Consider Before Buying A Tiny House

How Much Should You Invest in Your 401k?

tips for making a budget

“Sooo…how much should you invest in your 401k? 3%? 6%? 15%? More? What’s the best answer for me?” …asks random people at my work from time to time after they discover my blog… 😉

It’s hard enough to meet up with one person and instruct them on exactly how much they should invest into their 401k…and here I am trying to answer the question of the thousands of different people that will read this blog post… But you know what? I’m always up for a good challenge!! So let’s get to it!

How Much Should You Invest in Your 401k?

You might be thinking to yourself, “How much should I invest in your 401k….? Well, the more I invest, the better, right?”

Nope. Not necessarily. And that leads us into point #1…

1) You Should Invest Nothing When…

…You still have consumer debt

If you still have:

credit card debt, car loans, student loans, medical debt, or basically any debt other than a mortgage…

… I would tell you NOT to put any money into your 401k.

Why?

Because of the power of focus.

When people put…

a . . . → Read More: How Much Should You Invest in Your 401k?

My Name Is Derek…I’m a PF Blogger, and I Hate Investing…

hate investing

“Let’s do it!” I told my friend almost immediately. His proposal? We’d both set up a fake investment portfolio, track it once a week, and see who ended up “earning more money” in the end. That was about the last time I was really interested in investing…and that was 13 years ago. In fact, even now as I’m a decently well-known financial blogger, I can honestly say that I hate investing. It’s even challenging for me to write this article because I know I’m going to have to talk about stocks and bonds and blah blah blah…!!

…Seriously, I just had to step away from my computer and go for a coffee break…

Alright…let’s dig in…if we must.

My Name is Derek…I’m a PF Blogger, and I Hate Investing

Creating that mock investment account sounded awesome. Want to know why? Because I just knew all of my picks were going to skyrocket and I was going to kick my friend’s butt.

I was 20 years old and extremely confident in my ability to predict the financial future (…at that point, all of my education had been in engineering…so that made . . . → Read More: My Name Is Derek…I’m a PF Blogger, and I Hate Investing…

My Worst Investment Decision To Date…

my worst investment decision to date - double top

I made a mistake. I was hoping I wouldn’t have to admit it, but after two years and a continued drain on my wallet, I think it’s safe to say that I’ve made my worst investment decision to date…

My Worst Investment Decision to Date

It was June 2016. Liz and I had our first rental property humming and we were starting to save aggressively for the next one (with cash of course – we figured it would take about 2 years). At the time, the Dow was at $17,400 (the highest it had ever been) and the stock market had already been flailing for an entire year. And that’s when I saw it. The double top…!!

The Double Top? What the Heck Am I Talking About??

Back in my college years, I was way more interested in stock investing than I am today (these days I’m all about investing passively in index funds). From those early years, I remembered specifically hearing about double tops – a technical investment term that I was hoping was about to make me rich!

Alright, so what exactly are we talking about here…? . . . → Read More: My Worst Investment Decision To Date…

Can You Be Worth More Than You Earn in Your Lifetime?

could you be worth more than your lifetime earnings

Have you ever thought about how much you’ll earn over the course of your life? If you average $50,000 a year for 40 years, that’s $2 million bucks! So, with those millions of dollars, what will you be left with? $100,000? $500,000? $1,000,000? Or…is it possible to be worth more than you earn in your lifetime???

Can You Be Worth More Than You Earn in Your Lifetime?

If you make $2,000,000 in your lifetime and have expenses like food, cars, your house, healthcare, insurance, etc. etc. etc….how on earth would it be possible for you to be worth more than you earn in your lifetime? Seems impossible, right?

Well long story short…It’s not.

As it turns out, Joe Udo from Retire by 40, J$ from Budgets are Sexy, and J.D. Roth from Get Rich Slowly have already explored this phenomenon. And they use a measure called, “The Lifetime Wealth Ratio.

Lifetime Wealth Ratio = (Total Net Worth)/(Total Lifetime Earnings)

If your net worth is greater than your total lifetime earnings, then you’re killing it!

In fact, here’s the official rankings by J$:

0%-10% – Meh 10%-25% – Now . . . → Read More: Can You Be Worth More Than You Earn in Your Lifetime?

10 Things That Will Absolutely Kill Your Net Worth

manage your home finances

Your net worth – simply described as what you own minus what you owe – is hands-down the most popular gauge for wealth. There are people in this world that have never earned more than $50,000 in a given year, but they’re worth millions. And then there’s a whole other class of people that earn $200k+ a year and are worth absolutely nothing. Whether you earn hardly anything or you make a ton, there are 10 things that will absolutely kill your net worth and I strongly urge that you watch out for them, avoid them, and prosper heavily because of it.

10 Things That Will Absolutely Kill Your Net Worth

When I was 23 years old and living on my own, I made a profound realization that changed the course of my life forever.

The bums living near my neighborhood earned very little, they owned practically nothing, and I assume most of them had very little debt. Their net worth was basically zero. Then, there were couples in their late-30’s that lived in my development that owned a nice house, had a couple of nice cars, and often took . . . → Read More: 10 Things That Will Absolutely Kill Your Net Worth

Choosing Investments that Work

tips for making a budget

Investing is a challenging business, especially when you’re still learning the ropes. There are all sorts of people out there who will offer you easy routes to success if you only pay to take their classes or buy their books, but the truth is that none of them have anything worthwhile to sell, and if you’ve tried a few of these schemes, then you’re likely to be left feeling even more frustrated. Can’t you find something that just works? Actually, you can – but it might not be what you expected.

Choosing Investments That Work

It’s time to find what works for you. Are you more of a controlling, hands-on investor? Or maybe you’re totally the opposite and love the hands-off approach. Whatever the case may be, you need to find investments that energize you about the past, present and future.

What works for you

First of all, let’s tackle this notion of the perfect investment.

If you asked ten of your friends what the perfect investment looks like, then the chances are that they’d all say different things. Yes, they might all like the idea of something that makes . . . → Read More: Choosing Investments that Work