I am taking a few days off to refresh myself and to spend some time with family. I hope you do the same and stay safe this holiday season. I will leave you with a few post links so that you can get your financial read on when you have some time. Talk to you Soon!
Holiday Break Entertainment:
How Young Adults can build Wealth
The Best PF Finance Tips-one of my favorite Posts
Buying a House at 20 years old
Thank you for being a valued reader,
Merry Christmas and Happy Holidays
RichUncle EL
Hey guys I hope by now you are more informed of what tools you need to defeat personal finance issues you may be having. Simple fixes now can pay off tremendously later, for example starting early with investing, paying yourself first, and having a sizeable emergency fund. All of these things should be a natural component of our personal finance world, but an important factor some of us forget to do on the journey is to spend the money in the right places. For example imagine you could spend money to make money, would you do it? Of course you would.
This is what I am currently spending a month to access the internet now a days. It consists of two cell phones with data and home based internet usage. This gives me access to surf the web on my cell phones whenever I desire too, and at home on my computer.
The question I am proposing is, is it worth it to spend 90 dollars a month for internet?
Continue reading Is it worth it to spend 90 dollars a month for Internet
I wanted to share with you all the random personal finance facts that I have found by reading books, articles, and blogs in this past year. Some of the data is from the year 2010, but all other facts are as current as 2012. I want this list to consist of both positive and negative personal finance facts. See below and let me know which one of these actually shocked you to react in a positive way towards your finances.
I like giving my readers the tools they need to live life debt free. I feel that you can really put to use some of the tips I mentioned below as a way to get ahead with your financial goals. It all comes down to the choices you make in life. Would you be willing to pass on your goals because you just had to upgrade your PC to the new Mac Book laptop. Granted that new Mac book might only cost you $60 dollars a month with interest free financing.
But that $60 dollars could have gottten you one step closer to realizing a financial goal you keep postponing month after month and year after year. Why is that we always need or want something? Why is it that those things have to be purchased on credit? Well if you keep reading you will enjoy another great post on how you can avoid debt.
Have you ever wondered what personality traits make up personal finance bloggers? Well I will mention 4 below and maybe you can let me know if you feel the same or if you have other traits I didn’t mention that you want to share with all of us. See below for the traits I have uncovered in the personal finance world. Continue reading What Personalities make up a PF Blogger
Hey today we have a light-hearted post for you guys. I am going to share the Top ten reasons why you should not save money ever. If you agree then you are facing one of these things below or thinking about one of these ten reasons, but if you disagree then you are a fan of the savings mantra. I think from time to time it is fun to joke around a bit.
Most of you all already know that you can earn income from many different ways. But maybe you didn’t know the actual categories each income source belongs too. I wanted to share with all of you these income sources and give you a brief description and hopefully you can understand how you earn your money better. Personal finance is hard to figure out for many people, but this post will get you one step closer to understanding how one income source favors the other.
Income Sources:
Earned
Portfolio
Passive
Brief Descriptions of each Source:
Earned – Income derived from working for someone else or from a business you own or are a part of. This type of income is taxed the highest out of all the other incomes. It is also the biggest chunk of tax the government makes off individuals for GDP Revenue. In certain situations this type of income can be taxed at and up to 50% of the gross amount you make. The reason being that in this income type you have to pay Social security and medicare taxes.
Portfolio – Income derived from investments including dividends, interest, royalties, and capital gains. When you put your money in a savings account and the bank pays you for having it there that is considered portfolio income. If you write a book, then the royalties of the book sales are considered portfolio income. The tax implications from these types of incomes can be confusing, but dividends and capital gains taxes usually are up to a max of 20% and royalties can be taxed like self-employment ordinary income.
Passive – Income made of work in which you do not actively participate in. Examples include Rental real estate and silent business arraignments. This type of income is what people call gravy because you do not have to put your blood, sweat, and tears into it. Building a rental real estate empire is considered passive income for tax purposes, but believe me when I tell you managing something like a rental empire does take a lot of participation unless you hire a management company and reduce your time commitment.
In the United States people make the mistake to think that income from dividends are considered passive income and this is a mistake, the IRS clearly defines that type of income as portfolio. In my opinion I believe it is mandatory to try to build income from all three sources and then to begin to eliminate earned income and focus on growing the portfolio and passive income sources. If you can eventually grow your portfolio and passive income to cover all expenses then you are finally considered financially free.
Comment to let me know what are your thoughts to the three types of income sources listed above.
Always consult with a tax professional if you have a tax related question or if you are receiving income from different sources as mentioned above. If your taxes are complicated always consult with a certified CPA professional.
RichUncle EL