A Graphical Representation Of Why Your Retirement Withdrawal Rate Matters

Saving up for retirement is hard work. It can take a lifetime to accumulate a large enough nest egg to live on (see How Much Money Do You Need To Retire), and once you finally do retire, you want to make sure your money never runs out before you pass away. What happens to your … Continue reading A Graphical Representation Of Why Your Retirement Withdrawal Rate Matters

What Does It Mean To Be Financially Independent?

Many of you have likely heard of the FIRE movement, which stands for Financial Independence, Retire Early. However, do you know what financial independence means? I previously published an article about what it means to be financially comfortable, but financially independent takes it a step further. In simple terms, it means that you are no … Continue reading What Does It Mean To Be Financially Independent?

How Much Money Do You Need To Retire?

We spend years saving and growing our nest egg to one day eventually retire, but do you have any idea how much money you'll need to make that dream a reality? Experts toss around various numbers ($1 million, $2 million), but in truth, everyone's situation is different. It can seem overwhelming to make this calculation, … Continue reading How Much Money Do You Need To Retire?

Five Money Mistakes to Avoid in Your 20s

My childhood aspiration for adulthood was almost immediately dashed as soon as I reached adulthood. Being an adult is so hard! On top of forging a successful career and handling real-life responsibilities such as taking out the trash and folding laundry, I had to learn the ins and outs of managing my own finances, making … Continue reading Five Money Mistakes to Avoid in Your 20s

What Is The Average Change In Net Worth Per Year?

Everyone wants their net worth to grow, but it's nice to have a benchmark to compare your growth to in order to see how you are doing. Unfortunately, it's not easy to find the average annual change in net worth. It is possible to find annual net growth targets, as in this Financial Samurai article, … Continue reading What Is The Average Change In Net Worth Per Year?

What Does It Mean To Be Financially Comfortable?

Every year since 2017 (and twice in 2020), Charles Schwab's Modern Wealth Index Survey has asked 1,000 Americans about what net worth they would need to be financially comfortable and what net worth they would need to be wealthy. You can see how their answers have changed over time in the graph below. https://anchor.fm/cozy-nest-egg/episodes/What-Does-It-Mean-To-Be-Financially-Comfortable-e11rt98 The … Continue reading What Does It Mean To Be Financially Comfortable?

Infographic: Relationship Between Net Worth and Income

Common sense would tell us that net worth increases as income increases. However, it's not as simple as that, as you can see in the infographic I created using data from the 2019 Survey of Consumer Finances. https://anchor.fm/cozy-nest-egg/episodes/Net-Worth-And-Income-e120qmq Net worth increases exponentially relative to income The first observation we can make based on the infographic … Continue reading Infographic: Relationship Between Net Worth and Income

Why You Should Start Investing in the Stock Market in Your Twenties

When I was in my early 20s, I thought the stock market was out of reach for me. I heard news anchors announcing the Dow and Nasdaq indexes on the radio day in and day out, but never had it occurred to me that I should invest in it myself. I was a graduate student … Continue reading Why You Should Start Investing in the Stock Market in Your Twenties