Many people think that the primary way to become financially independent is by increasing your income so that you can quickly build up a nest egg. Others think that your savings rate is the most important. The truth is there are pros and cons to both approaches, and the fastest way to FI is by … Continue reading Which Is More Important For Reaching Financial Independence: Increasing Income or Increasing Savings Rate?
2020 was a good year for us savings-wise. We managed to save 30% of our income, which is significantly better than the national average for 2020 of 16%. This is even more impressive considering our income is rather mediocre. According to the 2019 Consumer Expenditure Survey by the U.S. Bureau of Labor Statistics, the average … Continue reading Despite Earning Below Average Income, We Saved 30% Last Year. Here’s How
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
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?
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?
As interest rates drop, it's dispiriting to watch the annual percentage yields (APYs) of your savings accounts dry up. Currently, your money is actually losing value by sitting around in a savings account. While the best APY you can find at the moment for a savings account is between 0.50% and 0.66% percent, the current … Continue reading Are Worthy Bonds A Worthy Investment?