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What is Debt?

This is the piece I wrote on debt and I wanted to share a different aspect in describing debt to all of you today. Debt is really bad as all of you already know, and possibly you’ve read some debt articles in countless past publications. But what people don’t share on the vast web portals and pages, is that debt doesn’t define you in any way. The personal finance community has a fair share of indebted folks, and they are all truly supportive in helping anyone who really wants to be free of debt, find ways to eliminate the debt monster. What is Debt? Well it is an obligation to pay for something in the future you purchased in the past.

One thing that I continuously hear is can people actually live life debt free. I believe you can, and I am 1 step closer to it every day. The freeing feeling you will realize is the prize, and the gift you give yourself by tackling the immense debt freedom journey until you reach a new financial platform. Many people take the journey for granted but it is that journey that will lay the foundation to help you avoid getting back into debt in the future. I will now do my best to define debt in another financial poem below. Have fun with it and let me know your thoughts.

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Don’t Keep Coins in a Piggy Bank for Long

What is the basic fundamental thing we all want for our money? For it to grow I suppose is the primary reason why we invest it, right. Recently I used to keep my coins in a wooden jar aka old dude piggy bank, and cash them in once a year. But now something changed, as my current bank got rid of the free coin exchange machine. I’m assuming they want to avoid operational fees or are attempting to bypass legal issues of some sort. I was always a bit skeptical at the coin counting abilities of said machines, and the likelihood of it not doing that job accurately. Even though I had my doubts I would still exchange coins and make a huge deposit of around $50-100 dollars in coins every year. But because now my banking institution decided to take away another perk (Way to go Banks), now I don’t keep coins in a piggy bank for long.

I woke up the next day after hearing this news and decided to make a financial habit change. I will now take a small amount of coins to the bank with every deposit I need to make. (Yes I still walk into a branch- I’m Old School) I will do this to save time, and to compound my money at a faster pace. This habit change will keep the coins in my home at a minimum, and put them in hustle mode. Because If I take the coins from the piggy bank and invest it into a financial account, it will elevate the compounding effect. Now those quarters will not collect dust at home. Why wouldn’t you want to put the loose currency to work in the markets as early as possible?

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Is Becoming a Landlord Right for You?

It’s no secret that the cost of renting a home is on the rise all over the country. When you hear news like this, the thought of becoming a landlord yourself can seem like an easy way to make a consistent income on the side. Here are some of the pros and cons of the situation, so you can figure out if this is the right business venture for you.

Can You Spare the Time

While being a landlord may seem like a great way to make passive income on the side, it’s not without its share of downsides. Not only can the additional tax issues take their toll, simply finding a property in a suitable location can also be extremely time-consuming. Likewise, it’s worth spending the extra time necessary to properly vet any potential tenants. You need to ensure you find people who’ll treat the property as they would their own home.

Of course, in the vast majority of cases, you’ll be able to hire a third-party to take care of any issues. This could end up eating a significant portion of your profits, though, so you should consider early on how much time you’ll be able to devote to this new project. You may even enjoy the extra responsibilities the job demands, whether it’s fixing a leaking faucet or putting the finishing touches on any outstanding contracts.
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What is Your Personal Savings Rate?

Did you know the recent savings rate was released by the government agency in charge of tracking this vital information, and I bet you already knew it is pretty low. How low do you ask, my financial smart friends? It is a pleasantly never reaching retirement figure of 5 percent. What is your personal savings rate?

What can you do with 5% in the future? It might cover the cost of gas, cable, and food but then that’s it. Who or what will help you pay for shelter, entertainment and any other fabulous budget categories we all cannot live without? If you say Social Security, I say bite your tongue right now.

Did you know that the earlier you start saving the sooner you will be done, and the sooner it will grow, and the less you will ultimately need? But you already knew this right?

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Finding Time in Today’s World

So lately I keep hearing the term I need to find more time in random conversations, and I must admit I believe I’ve used the phrase on occasion as well. But I will say it is a bit of excuse to use that expression, as we all can realize as much time as we want. The secret to finding time in today’s world is literally to just take it. If you focus on the time you have to get things done and not waste it, you will always have time. The thing with time many people can’t grasp is, that a simple choice makes all the difference.

By assuming action and not procrastinating you will realize that time is there for the taking. Time is a virtue for anyone who is virtuous enough to say, “I can make time”. I know some of you are tired of the philosophical twist to this post, and want me to get to the point. OK the point is, finding time in today’s world is an excuse we can and should not use, because time is now and we have plenty of it.

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Over Consuming Usually Leads to Financial Failure

Let’s discuss a major problem that is taking residence everywhere in the US. Over consuming in general is a problem for millions of people and these people actually think that no real issue exists with the behavor. When you take money, primarily income and you use all of it by spending it on consumables, you fail to use it towards imperative financial goals.Thus you might be headed down the wrong path because over consuming usually leads to Financial Failure.

The little squirrel in the picture is actually showing you an example of what happens in today’s modern day spendthrift society, we earn, we spend, and then we spend some more. If all your income is headed towards, living expenses, food, transportation, stuff, services, utilities, gifts, and more things something is fundamentally off. As you are a very astute person to see, that several important categories are missing to complete the big picture in a simple budget, and they are Saving, investing, and Donating. The trick is never ever remove saving or investing from an efficiently established personal finance budget.

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Don’t Forget to Take Advantage of These Tax Deductions

When it comes time to file your taxes, you may forget about some of the tax deductions that you can take. In fact, there are many different deductions that you may qualify for and many people do not even know they qualify for some. If you visit a CPA or tax preparer, you will find that the person guides you and helps you claim all deductions you can. But, if you file your taxes yourself, you may be leaving a lot of money on the table. A new study conducted by Harris Polls showed that Millennials fear taxes. But taxes don’t have to be so bad.

Below, we will go over some tax deductions that you need to keep in mind and of course, claim them if you can.

Lifetime Learning Credit

The lifetime learning credit is one that is often overlooked, but it can offer students an opportunity to earn some money back. Students who qualify to claim this credit will need to make less than $60,000, if they are single and less than $120,000, if they are married. You can claim up to $2,000 in education expenses, which includes things such as books, laptops, and any other products or supplies you purchased to be used at school.

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Always Aim to Be As Efficient As Possible

Hey guys do you wake up in the morning and think I will be wasteful today. I hope not and if your like me you will always aim to be as efficient as possible. Like a brand new Prius car eking out the last ounce of gas to get you every last efficient mile during a road trip. Think of your action and movements in life as if your a Prius car, and become an efficiency machine.

Lets dissect the real meaning of efficiency courtesy of good ol’ wikipedia :

Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste.

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