James C. Molet's Blog, page 74

Living Frugally: Give Blood, Save Lives, and Get Out of Debt

When someone asks me how they are supposed to get out of debt or get ahead financially, I give them several helpful tips including one that I think is underrated and often forgotten…Give Blood/Plasma. I live about eight miles from a facility that pays around $25 every time I donate blood. Following the rules and regulations I can give blood twice a week without posing any danger to myself. (Side Note: It is very important not to give blood too often because you can do serious damage to your body Read the Full Story

Making Informed Investment Decisions

Website: Investor.org. A product of the Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy, Investor.gov is an online resource that strives to serve individuals by helping them invest more wisely and assist in avoiding fraud. On the Investing Basics page – a good place to start for novice investors – it is noted that “Knowing how to secure your financial well-being is one of the most important things you’ll ever need in life. You don’t have to be a genius to do it. You just need to Read the Full Story

Understanding Compound Interest

Simple Interest is calculated one time solely as a percentage of the principal sum. As an example, if the principle is $100, and the interest rate is 4%, the value at the end of the interest period (e.g. monthly, quarterly, semi-annually, annually) would be $104 (100 x 1.04). Conversely, Compound Interest is calculated not only on the initial principal but also the accumulated interest of prior periods. Using the prior example, the value at the end of the first period is $104, which now becomes the principal at the beginning of the second period. Therefore, at Read the Full Story

Avoid the Retirement Blues

This blog post was submitted by guest contributor, Audric Stevens.  Audric is a financial blogger and a contemporary writer. He is involved in various online activities through which he imparts financial lessons to people with diverse needs. Even as you enter your retirement years, your financial planning shouldn’t stop.  Having financial foresight and leading a frugal life can help you ensure a comfortable life and following certain simple tips will help you maintain the stability for the years ahead.  Two of the most common mistakes that people make as they Read the Full Story

Living Frugally: Your Doctor Could Be Wrong

I have three slipped disks in my lower back. For those with medical knowledge, they are L4, L5 & S1. For those that are not, they are just above my tail bone. I also have scoliosis in between my shoulder blades. Needless to say this is a painful situation, especially on days when both conditions hurt at the same time. At age 39, I find it difficult to do certain things I really enjoy like teaching hip hop dance/choreography, 110 meter hurdles, martial arts tournaments, and even stuff I don’t Read the Full Story

Multiply Your Streams of Income

In days of yore, many Americans typically relied on a defined benefit plan (commonly referred to as simply a pension) as the anchor of their finances in retirement. A quick refresher, defined benefit plans promise a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $1,000 per month, once the employee has met the requirement(s) (e.g. length of employment) at retirement. More commonly however, retirement benefits are calculated through a plan formula that considers such factors as salary and years Read the Full Story

A SavvyInterview – Jack

I first met Jack through social media and liked what he had written in the “About” section on his blog. He notes that he is a crazy thirty-something who thinks that working for a living is for suckers, and that there must be something more to life than shopping malls, TV, professional sports and a job you may not love with people you may barely be able to tolerate, sucking the majority of your energy such that you have nothing left at the end of the day for your personal pursuits. I’m pleased Read the Full Story

Living Frugally: Quality and Consistency

Unfortunately, practicing frugality is too often translated as buying the least expensive products or services. Particularly in difficult economic times, there may be a tendency to make every effort to spend less no matter what. Blindly spending less is not frugal…it’s cheap. Being frugal means spending money wisely in an attempt to get as much value from selected products and services as possible. There is no doubt that discount stores and other low-cost options can be attractive; however, you have to be mindful of the fact that you often get Read the Full Story

Guidance for Long-Term Successful Investing

The following recommendations are from the Intelligent Investing with Steve Forbes series.  Video: Expert Investors on Saving for Retirement (2011). Steve Forbes sits down with six well known, successful investors and picks their brains with regards to investing for an increasingly long retirement period. The finance gurus sharing their wisdom include Ken Kamen (Mercadien Asset Managment), Jack Bogle (Vanguard Group), Ken Fisher (Fisher Investments), Todd Morgan (Bel Air Investment Advisors), Jim Reynolds (Loop Capital) and Michael Mauboussin (Legg Mason). Ensure you listen closely to Jack Bogle’s comments regarding financial advisors Read the Full Story

The Scourge of Student Debt

Brief: At What Cost? (2013).  As with his earlier brief, “Has the 401(k) Been a Failure?”  (a previous SavvyRecommendation), Robert Hiltonsmith of Demos asks a provocative question. In short, what is the long-term financial cost for a student that incurs debt in the pursuit of higher education? Mr. Hiltonsmith notes that student debt has skyrocketed over the past decade, quadrupling from just $240 billion in 2003 to more than $1 trillion today. Moreover, if current borrowing patterns continue, student debt levels will reach $2 trillion in 2025. The brief attempts Read the Full Story