Financial Independence (aka early retirement)

by Madison

The article I read on this topic was called The Basics of FIRE (Financial Independence and Early Retirement) FIRE is having the freedom to decide whether or not you’d like to continue working. This focuses less on the actual early retirement part of things and more on the financial independence. To achieve financial independence it takes a lot of time and dedication.

“Early retirement is less for people who hate their jobs and more for those who have a clear idea of a different lifestyle or goal they may like to pursue.” The article also said if you’re doing this because you hate your job than you’re more likely to be bored at home during your retirement. “A good reason to retire early is that you have an alternative vision for your life that you are eager to pursue but you can’t pursue while employed full time”

Now, how do you accomplish financial independence you might ask? The article talks about how you must cut back on spending (of course) but for this to work it is also necessary that you have a decent income. Spend less than you earn and save the difference in an investment fund.

https://twocents.lifehacker.com/the-basics-of-fire-financial-independence-and-early-re-1820129768

Spaving’s account

by Madison

Spaving, from my understanding, is having an account and keeping track of any money you were planning to spend, but didn’t or any coupons or deals and putting the money you saved into a spaving’s account. For example, if I were planning to get 2 new bathing suits, $12.95 each and then I decided to only get one of them, I’d have $12.95 spaved because of the money I changed my mind on spending!

The goal of the account is to encourage you to save so your account can continue to grow. If you know that there’s an account for every time you don’t spend money, you’ll avoid spending it so that account can grow.

The person that wrote the article on this had $35.68 in their account after two weeks from things like, getting a dollar off their coffee, buying the cheaper product of two, changing their mind on buying things, etc.

I’m considering opening my own spaving’s account and it seems like it may be a good idea for others to try as well

http://www.budgetsaresexy.com/spavings-savings-account/

Mortgages- what can you afford to buy?

by Madison

If you type the title of this into google you will get multiple calculators to help you calculate what house you can afford. These calculators will ask you things like, where you’re wanting to live, what kind of home you’re looking for (house or condo, on the TD calculator) your annual income, how much you have for a down payment, what monthly expenses you have (groceries, transportation, insurance, shopping or media), and any monthly payments for loans or any other monthly payments. With all of the calculations being made, be sure that you’re adding in the costs for another person if you’re buying a house with someone.

https://tools.td.com/mortgage-affordability-calculator/

Can money buy happiness?

by Madison

Can money buy happiness? The famous question that I’ve heard asked hundreds of times. I personally believe that if you spend your money correctly, money can buy happiness. If you’re buying things that make you happy then of course you will be happier in general.

                At the bottom of an article from CBS News it said, “’even spending as little as $40 to buy ourselves out of a negative experience like cooking or cleaning can have significant benefits on peoples happiness,” Whillan’s said. “Participants who bought themselves time reported more joy, and less negative emotions.” “So, money in fact can buy happiness if you spend it the right way!” said Susan Spencer.”

                Another website also agreed that money can buy happiness if spent the right way. They suggest spending it on extra time, hire yourself a maid so you have extra time for yourself. Spend it on a great experience, something that will make life lasting memories. Spend it with someone you care about, go out to dinner or to your favourite concert with a loved one. Finally, spend it on someone else, it feels good to make others feel good.

                In conclusion, I think money can buy happiness as long as you’re doing the right things with it.

https://www.cbsnews.com/news/can-money-buy-happiness-2018/


https://money.usnews.com/investing/articles/2016-02-26/4-ways-money-can-buy-happiness