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• Rediscovering the art of frugal living

  Posted Jul 28 2008, 04:37 AM by Karen Datko
  Filed under: Retirement, Spending, Saving, Get Rich Slowly
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  This post comes from J.D. Roth at partner blog Get Rich Slowly.

  A reader recently pointed me to a National Public Radio story about the frugal artists of New York City. Columbia University released a study of 213 visual artists over the age of 61. Their average income? About $30,000 a year.

  According to the NPR story:

  Most of them said they were satisfied with their lives. However, many reported that they also have had to make daily economic compromises. They don't eat out, buy clothes at flea markets and rarely travel.

  Many of these artists manage to make it in New York through frugal living. All they seem to need is some food, a roof overhead and the time and opportunity to practice their art.

  This is a nice story, with some lovely bits in the interviews with individual artists. More than that, it was just the shot in the arm I needed.   Read More...

  Discuss ( 17 comments) 9,155 Views Digg this | Email this | Link to this

• Why it pays to ignore the financial news

  Posted Jun 23 2008, 05:44 AM by Karen Datko
  Filed under: Investing, Retirement, Saving, Get Rich Slowly

  This post comes from J.D. Roth at partner blog Get Rich Slowly.

  Financial news can be dangerous to the health of your investment portfolio.

  I spent some time recently reading articles about the stock market. What I found was mostly hysterical hype ("Gasp! Dow Jones Industrials tumble 400 points!"). All the financial stories seemed to be written as if our investment horizons were days, not years. No wonder people panic when the stock market hits a rocky patch.

  But do daily market movements -- even 400-point drops -- really matter? How important is up-to-date financial news to the average investor?   Read More...

  Discuss ( 4 comments) 2,074 Views Digg this | Email this | Link to this

• What if you didn't start saving early?

  Posted May 05 2008, 04:08 AM by Karen Datko
  Filed under: Investing, Retirement, Saving, Get Rich Slowly
  Rating:

  This post comes from J.D. Roth at partner blog Get Rich Slowly.

  "Saving is the key to wealth," I wrote recently while trumpeting the extraordinary power of compound interest. "If you do not spend less than you earn, and if you do not save the difference, you cannot build the wealth you desire." The younger you are when you begin saving, the more time compounding has to work in your favor, and the wealthier you can become.

  "The next best thing to starting early," I wrote, "is starting now."

  Other options

  A few readers noted that while the mathematics of compounding makes sense, it's not motivational for those too old to take advantage of its full force. "This is pretty depressing for those of us who spent our 20s with practically no income thanks to universities," wrote one reader. Her sentiments were echoed by several others.   Read More...

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• Setting and achieving financial goals

  Posted Dec 31 2007, 04:21 AM by Karen Datko
  Filed under: Retirement, Taxes, Saving, Get Rich Slowly

  This post comes from J.D. Roth at partner blog Get Rich Slowly.

  For three years a single goal directed my actions: I wanted to get out of debt. Now that my consumer debt is gone, I've spent a lot of time wondering what to do next. I was worried that I'd lose focus, lose direction. That's not going to be the case. I've set three major financial goals for 2008. I intend to:

  • Max out my retirement plan for 2007 and 2008.

  • Pay taxes.

  • Bolster my savings.

  These goals are ambitious, but I think I can achieve them. In fact, I hope to do even more.

  Retirement. I got a late start on my retirement savings. My employer has been setting aside a pension for me, but I began my self-directed retirement savings only last year. I managed to make the full contribution to my 2006 Roth IRA. I've contributed $2,000 so far this year, and intend to max out my plan in the next couple weeks. For 2008, the contribution limit on Roth IRAs increases to $5,000 a year. I hope to invest this amount.   Read More...

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