Links for May 2017

Links for May 2017

-It's wise to create multiple sources of income, so that you're not held hostage by a single source: http://rockstarfinance.com/rich-habit-20-creating-multiple-streams-of-income/  Side hustles are great!

-Bridget from MoneyAfterGrad makes a few insightful points here:  http://www.moneyaftergraduation.com/2016/05/03/the-future-youre-saving-for-does-not-exist/

      Important takeaways from Bridget's article:

1. Aim for flexibility, rather than specific goals in the distant future. Everything could change between now and then!
2. Too many people are going to college, diluting the value of a Bachelor's degree (which is getting more and more expensive). This pattern is unsustainable in the long-term. I've been thinking this very thing for a while, and I wrote about it in 2014 here and here, and again in 2015 here. I also have a post that I composed in 2015 and forgot about, so I finally published it here. 
3. There's a big movement toward entrepreneurship among young people today. There's obviously a ceiling to how many people can be self-employed, but it's an interesting trend that will change how the economy works, even if the percentages don't increase anymore. 

-An interesting take that I think is worth sharing: http://stockstreetblog.com/2017/04/11/millennials-shouldnt-care-about-dividend-stock-investing/

• I agree in principle, but with caveats. It's accurate that there's more to gain from reinvesting profits to grow a business than to pay it in the form of dividends, but there's a point at which companies hit a ceiling on how much more they can grow: once they reach that point, they pay dividends to their investors. In that case, distributing that income to investors is a reasonable strategy; investors can then use those dividend payments to invest in growing companies, so that investors can have their cake and eat it too. 

-Throwing more money at a problem doesn't usually fix it: http://www.savethebills.com/will-spending-fix-americas-education-problem/

-Speaking of education, how about these tips for recent high school graduates?  http://penniesanddollars.com/money-lessons-for-high-school-grads/

-I don't agree with all of these, but it's worth a read due at least to the fact that FCTR really hit the nail on the head when describing the 'rat race' and how corporations use that to pay you less than you're worth: http://www.fromcentstoretirement.com/the-economy-10-years-now/

-Should debt payments count as "savings?" A good question, explored by Finance Yo'self here: http://financeyoself.com/debt-payments-count-savings/

-A 401(k) isn't the only way to invest for retirement! Here are a couple other options: http://moneyjourney.today/save-retirement-without-401k/  I'm particularly a fan of the Roth IRA, though I'm not a fan of the contribution limits.

-It's usually unwise to invest a sizable sum of money in your employer's stock! Here's a good explanation of why: https://avgjoefinance.com/stay-away-company-stock/
     -Diversify, diversify, diversify!

-If you're not a Boglehead like me and you think you can beat passive index investing, Troy from MarketHistory shares some tips: http://www.youraveragedough.com/guest-post-how-to-beat-passive-dividend-investing/

-A range of arguments on how to allocate your investment dollars: http://www.marketwatch.com/story/how-much-stock-should-you-have-in-your-retirement-accounts-2016-05-07

-Taxes are awful. They're even more awful when you have a surprise 5-figure tax bill! Without further ado: http://www.mikedupblog.com/irs-bill/

-Ambulances are hideously expensive: http://thefinancialdiet.com/financial-confessions-night-sex-cost-4000/

-I appreciate conciseness: https://esimoney.com/become-wealthy-described-one-sentence/

-You may or may not be a Christian, but there are a couple gems of lines in this article by Wealth Well Done that are applicable to all people, regardless of religious beliefs:
     -"I am extremely blessed that my self-worth is no longer found in my career, bank account, or in the expensive things that I own" and 
     -"Money can only help you fund your journey to find your purpose in life.  Money can never create the journey for you."

-And finally, one from myself. Check out this new approach to paying down debt:  http://froogalstoodent.blogspot.com/2017/03/trick-yourself-out-of-debt.html

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