MORE than Finances

Get your finances in order, and get on with your life!

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cFIREsim Review

9 to 5 till 65, but truth be told odds are you’ll have to work longer than that.

Most people are now working well into their 70’s. Whether that’s for financial reasons or just so they have something to do it is the truth.

The other side of the crowd are those who are retiring in their 30’s and living a life most can only dream of.

Whichever group you fall under the cFIREsim calculator can help you reach your goal. Read More

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5 Ways To Make Extra Money While Working Your 9 To 5

There’s far too much month at the end of your budget. I have felt that more often than I care to admit. But,
there are ways to help you out, side hustles you can do on your off time that can help make your finances that much easier.
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How Much Interest Will I Earn On 1 Million

A few weeks ago we discussed if you could live off a million dollars. Another mental exercise people will do is figure out how much interest will I earn on 1 million dollars? Read More

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I Inherited $30,000, Now What?

best way to invest 30kMany people would like to inherit a million dollars. I don’t need that much, in fact, I need much much less.
However, some people could easily inherit a smaller amount like $30,000. So what should you do if you inherit $30,000? Here are a few ideas.

Start A Business

Running a business, full-time or on the side, can be a great investment. If you start one while working your regular job you have extra money to pay down debt, go on vacation, or grow an emergency fund. On top of that working a job on the side can lead to working it full-time instead of your 9 to 5 giving you more freedom.

Another benefit of owning a business is there really is no limit to the amount of money you can make. You simply put more work in and you’ll get more money out (theoretically). So a $30,000 investment into a business can lead to $30,000 in profit or more depending on the business.

Invest Simply With Index Funds

If running a business is too scary for you or you don’t have the time a simple way to invest is through index funds.

For many, the stock market is a scary place and it feels more like gambling than investing. With index funds like Charles Schwab or Vangaurd offer, you can get invested in the stock market without having to think about it.

Index funds, put simply, own small portions of many stocks. So rather than buying shares of Apple, Microsoft, Best Buy, and others the index fund buys small portions of each of those stocks. As they rise so does the index fund and your risk is lowered.

While some stocks go down, others in the fund go up so the fund itself will go up most days even just a little. Statistically, it is the safest and most reliable way to invest in the stock market. Just look at the history of the S&P and you’ll see what I mean.

Keep A Good Emergency Fund

An emergency fund can be the best investment of your life. Many people in this country are in debt, but if they had an emergency fund in place they would not have gone into debt in the first place.

A good rule of thumb is to have 3 to 6 months of your income in this emergency fund. However depending on your type of job you may want more or less than that. For those of us that work for ourselves full-time, it may be good to have a year’s worth of pay in savings just in case you have a bad year.

Finally, Pay Off Debt

If you have any debt pay that off first, especially credit card debt. Let’s say you have $30,000 in credit card debt. At 15% interest, you will pay $4,500 a year just on interest. If you invested that same $30,000 in an index fund getting 8% back you will only make $2,400.

Do What’s Best For You

It’s going to be different for everyone. Some people don’t have any debt, some don’t have the stomach for business. Look at what your situation is and make the best decision for you.

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Can I Live Off The Interest On A Million Dollars

Can I Live Off The Interest On A Million DollarsPayday is a week away, but you have expenses today. Yet again you’re going to have to make a payment or two late, but you start thinking what you would do with a million dollars. If you won the lottery or whatever and got that money what would you do?

Ways To Invest A Million Dollars

Some say they would buy cars, houses, or go on a huge vacation. But if you wanted to continue to live off that million you’re going to need to invest it.

Savings Account

Considered the “safest” of ways to invest. You simply put money in and gain a little interest every month. Most savings accounts, however, have a small interest rate usually less than 2 percent.

Meaning that on a million dollars you’ll only get around $20,000 a year. Not really enough to live off of, but it would make it so you could work less at your full-time job, maybe even work part time.

Stock Market

This is where the big boys (and girls) play. Instead of just putting money in a savings account, the stock market provides a lot more growth.

The average return for the stock market is about 7% meaning your money will grow by $70,000 a year. If you invest in dividend stocks you’ll receive around 4% or $40,000 without ever selling your stocks. In essence, you’ll be paid $40,000 and your money will be worth $70,000 more so your annual “pay” would be $110,000.

Real Estate

There are many types of real estate investing, but for simplicity, we will focus on just two.

First, we have house flipping. Essentially you buy a house that’s in a good neighbourhood but is run down and as such is selling for cheap. You then either fix it up yourself or hire someone to do it. After the property is up to par with the neighbourhood you now sell it for more than you paid for everything and pocket the profits.

For some, this is their full-time job (just watch HGTV) and you can make a lot of money doing it. But it can also be very stressful.

The second way to make money through real estate is to buy a property and rent it out. This seems straight forward, but buying something and making sure that there is always someone living there to pay the rent can be stressful.

What’s Best For You?

No one but you can know what will work best for you. The no stress way to invest is the savings account, but you’ll also not make much. Dividend investing is great but brings its own stress, and you’ll have to watch your investment go up and down with the market. Real estate involves a lot of money up front before you see anything in return.

Can I Live Off The Interest On A Million Dollars

Yes, you can live off the interest on a million dollars. You may have to cut back on some things if your income is about the national average, but it can be done.