Browse by Tags
-
Posted
Sep 24 2008, 03:54 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. Are you on your way to becoming a millionaire? For some, the thought of having a million bucks seems ridiculous. But the fact is that becoming a millionaire is simple, even on a modest income. If you have the discipline, building your net worth to $1 million or more takes nothing more than time. If you do not have the discipline, then even a $100,000 job will not help you reach a seven-figure goal. You've probably seen the show "Who Wants to Be a Millionaire?" Believe it or not, it is easier to become a millionaire in real life than it is on TV.
Read More...
-
Posted
Sep 09 2008, 09:34 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. Successfully managing your money comes down to one thing -- control. For all the things we talk about here at The Dough Roller -- from retirement to investing and taxes to credit cards -- financial freedom and sound money management come down to whether you control your money, or whether it controls you. The good news is that sound, wealth-building money management is simple. The reality check, however, is that managing your money, while simple, is not always so easy.
Read More...
-
Posted
Aug 27 2008, 05:06 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. You've decided to invest in your future. You've picked the perfect mutual fund. You're ready to go. Now what? How do you actually go about buying shares of a mutual fund? The good news is that buying shares is quick and easy. If you've never invested in a mutual fund outside of your employer's 401(k), the process can seem overwhelming. But the truth is that for DIY investors there are only two options to consider, and both options are inexpensive. I'll cover them both in this article.
Read More...
-
Posted
Mar 19 2008, 05:59 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. A mind is a terrible thing to waste. So let's not waste ours today. Here are four useful financial calculations that you can perform in your head: What am I giving up in retirement savings when I spend money today? This is an easy one: Add a zero to the price tag. Assuming you have 30 years until retirement and earn 8% annually on your investments, that $3,000 watch would have been worth $30,000 in retirement if you had invested the money instead. Coming down to earth a bit, the $4 latte (it's always the latte) purchased five days a week costs about $1,040 a year, or $10,040 in your retirement account 30 years later. How much do I need to earn before taxes to buy stuff that I want? Assuming you're in the 28% federal tax bracket, multiply the cost by 1.4. That means a $20,000 car costs $28,000 before taxes. Yikes! Of course, this doesn't account for state tax and Social Security and Medicare taxes, all of which would make the multiplier even higher.
Read More...
-
Posted
Mar 12 2008, 06:30 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. As Roth IRA and Roth 401(k) retirement plans gain in popularity, unsuspecting investors may fall prey to a potentially expensive mistake. Money in a Roth 401(k) or Roth IRA account can be withdrawn tax-free, assuming the withdrawal meets IRS requirements. In contrast, withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income when you take the money out. As a result, a dollar in a Roth account is worth a dollar at retirement, but a dollar in a traditional retirement account is worth a dollar minus the taxes you'll pay when you withdraw the money. What's the potential gremlin lurking in your 401(k)? It's treating Roth retirement savings the same as traditional retirement savings when making your investment decisions. Let's look at an example to see how this mistake could impact your investments.
Read More...
-
Posted
Feb 20 2008, 05:50 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. "We are what we repeatedly do. Excellence then, is not an act, but a habit." -- Aristotle So often we define our lives by the big events. Graduation, marriage, children, a big promotion and retirement are some of the milestones that many of us remember -- or will remember -- as defining moments in our lives. What often gets neglected, however, are the little things we do each and every day that make the big events possible. As Aristotle said, it's what we "repeatedly do" that produces excellence. So when it comes to money and wealth, what do you repeatedly do? Financial security cannot be reduced to a simple formula. But, like excellence, it is the result of our daily habits. This can perhaps best be seen in the high-income individual who, due to daily habits, fails to achieve financial security. It also can be seen in the individual who, with relatively low income, achieves financial freedom. So what are the seven habits of wealth?
Read More...
-
Posted
Jan 17 2008, 07:04 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. The best thing about being 40 is having survived your 20s and 30s. And at 40, I'm considered an old-timer in the personal-finance blogging community. Reflecting back on the past 20 years, I realize that I've learned a thing or two that I wish (oh, how I wish) I had known when I was 20. Here they are, in no particular order: School loans are like a bad date -- easy to get, but hard to get rid of. At 40, I still have more than $20,000 in school loans. Education is important, but I spent far more money during school than I needed to spend. Compounding, like the 1970s Big Red Machine, is pure magic. Assuming you retire at 65 and earn a 10% return on your investments, $1 invested when you're 20 will be worth 2.5 times more than $1 invested when you're 30, 6.5 times more than $1 invested when you're 40, and 18 times more than $1 invested when you're 50.
Read More...
-
Posted
Jan 09 2008, 06:00 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. ![clip_image002[6]](http://blogs.moneycentral.msn.com/images/smartspending/WindowsLiveWriter/ThinklikeMr.SpockbutactlikeCaptainKirk_104EF/clip_image002%5B6%5D_thumb.jpg)
Sound personal-finance and investing decisions flow from two things -- knowing the numbers and knowing ourselves. If we know the numbers but not ourselves, our decisions will look good on a spreadsheet, until our real-world decisions deviate from the plan. If we know ourselves but not the numbers, our decisions may feel right, but will lead us down the wrong path. What's the answer? We need to think like Mr. Spock, but act like Captain Kirk. Allow me to explain.
Read More...
-
Posted
Jan 02 2008, 05:08 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller. The simple truths in life are the most profound. Take Warren Buffett, for example. He can summarize all the investing advice anybody would ever need in a single sentence: "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." And in case you haven't noticed, Wall Street is fearful right now. Buffett isn't the only smart guy around. It turns out that famed Yankee catcher Lawrence Peter "Yogi" Berra is pretty smart, too. Let's see what seven secrets he can teach us about money and investing. "I knew I was going to take the wrong train, so I left early." You will make mistakes when you're investing. Even Buffett has made mistakes, including (as he acknowledges) his 1993 purchase of Dexter Shoe. I've certainly made mistakes, including the purchase of my first mutual fund, which came with a 5.75% front load and hefty yearly expenses. Ouch! But just like Yogi, get on the investing train early, and you can still reach your destination on time.
Read More...
|
