Master Your Money. Expand Your Horizons. Pursue Your Dreams. Those words serve as both the tagline of this site and the epitome of financial freedom.
That term invariably means different things to different people. Some simply desire more breathing room in their monthly budget. Others long to become debt-free. Yet others won’t be satisfied until they no longer need to trade their time for money at a job they despise.
But no matter what your personal definition of financial freedom, the path leading to it remains the same. Are you ready to take the next leg further up and further in?
The hotel breakfast room was quiet and empty at this early hour. The only sound was the local early-bird news playing on a lone TV in the corner.
Bleary-eyed from a long day spent hiking Wyoming’s Devil’s Tower the day before, Mrs. FFP and I silently shuffled along the buffet and filled our plates with continental fare.
As we later packed our bags and loaded up the car for the 5th time in as many days, the first rays of the sun were just peeking over the horizon. And while the first birds started to chirp cheerfully, my wife was noticeably quiet.
I could tell she was nervous. Over the next two days, our itinerary involved traversing two different mountain ranges – and she had a serious fearof heights. Continue Reading
Strike It Rich By Mining Your Debt: There’s Gold In Them Thar Loans!
The topic of debt usually gets pretty rough treatment in the personal finance blogging community. And for good reason – if not handled with care, it can be as dangerous as a short-fused stick o’ dynamite.
But if you’re already in debt and your money situation feels as cramped as a claustrophobic miner trapped deep underground, you’re already acutely aware of how dangerous debt can be. So let’s pivot and instead explore a far more encouraging aspect of debt – it’s hidden wealth potential.
Yep, you read that right. If you’re in debt you are sitting on a potential mother lode of riches. So without further ado, let’s stake out your debt claim and discover how you can strike it rich by mining your debt. Continue Reading
Gimme Hands: The Power Of Being Selfish… With Yourself
Selfishness is typically not a trait to be pursued, developed, or cultivated. But when it comes to your financial freedom, all of that conventional moral wisdom goes right out the window.
Now don’t throw the baby out with the bath water – I’m not talking about being selfish when it comes to the way you treat OTHERS. I’m referring only to the importance of cultivating selfishness in your futureselfwhen it comes to its dealings with your currentself.
If you are still aghast that I would suggest such a thing, it may help for you to think of this concept in the much more palatable light of delayed gratification. Continue Reading
The Money Map: Identifying Your Financial Starting Point
If you’ve ever attempted to follow a map to a given destination while unaware of your exact location, you know how frustrating and fruitless of an endeavor this can be.
Whether as a tourist, road-tripper, or mall-shopper, most of us have found ourselves in this situation at least once before. We all know the uncomfortable feeling of uncertainty that ensues – the second-guessing, the traveling in circles, the lost time and frustration.
It’s no mere accident that standard navigation software such as Google Maps, Apple Maps, and MapQuest require users to either input a starting location or enable the automatic tracking of their current location prior to providing directions to the selected destination. Continue Reading
Compound Interest, Part 5: Benjamin Franklin’s 200-Year Experiment
This is the fifth and final installment of a series on compound interest and the impact it can have to both speed and sabotage your journey to financial freedom.
In part four of this series, we reviewed how the power of compound interest creates a hidden, deadly cost of debt in the form of opportunity cost, which can effectively double the interest you pay on your credit card and easily triple the original cost of a mortgage. Continue Reading
Compound Interest, Part 4: The Hidden Opportunity Cost Of Debt
By now you should be familiar with how to calculate the total amount of interest incurred over the life of a loan when you purchase something on credit, whether that be in the form of a credit card, auto loan, student loan, or a mortgage. Continue Reading
Compound Interest, Part 3: History’s Best Double Agent
This is the third installment of a 5-part series examining the massive impact compound interest can have on your journey to financial freedom.
In part two of this series we reviewed how the power of compounding accelerates over time and can serve as your rocket to riches, making it possible to break the sound millionaire barrier by simply saving and investing $46.00/week over a period of 50 years.
In today’s article we’ll be detailing how compound interest can actually work AGAINST you by going undercover and acting as a double agent to thwart your financial goals.
You may view the concept of compound interest as simply a boring financial term that you (fortunately) only have to deal with a few times in your life, such as while applying for a credit card or slogging through mortgage origination paperwork.
But if you’re reading this article, it’s probably safe to assume that you’re interested in either ending the stranglehold your finances have you in, increasing your bottom line, or becoming independent of a paycheck. Maybe even all three.
If that’s the case, we need to revisit this concept of compound interest. It is one of the most powerful forces in the universe, and it has the potential to change your life. Continue Reading
Financial Intentionality: The 9th Wonder Of The World
We also learned that nearly half of all Americans already meet this criteria and that the average adult is only $1,301/year ($.63/hour at 40 hours/wk, for those counting) from doing the same. Lastly, we reviewed some troublesome statistics regarding the money situation of everyday Americans:
Up to 78% report living paycheck-to-paycheck
As many as 72% identify as being stressed by money
57% have less than $1,000 in savings
39% have no savings at all
The obvious question remains: why this stark discrepancy between high average income and extremely low levels of personal prosperity? Continue Reading
The Average American Income Is Only $1,301 From World’s Top 1%
Does your income rank in the top 1% of the entire world? Before you roll off your couch in a fit of cynical laughter, you should know that the answer to that question might just surprise you.
A recent study found that the level of annual income required for someone to be within the top 1% of earners in the world is a mere $32,400. This translates to an hourly wage of just $15.58, assuming a standard 40 hour workweek and full-time employment.
Yes, that’s right – make $15.58/hour or more on a full-time basis and you’re part of the global 1%, based on income.