Emergency Fund

Most people have heard of an emergency fund before. Especially if you read the title of this post. An emergency fund is pretty much exactly what it sounds like. It is a fund of money set aside to be used only in the event of an emergency.  There is a ton of advice floating around the internet regarding emergency funds. How much they should be. Where you should keep them. I’m going to add my two cents (which are pretty worthless….) into the conversation.  Let’s dive a little bit deeper into what an emergency fund should be before going into specifics. Around 40% of Americans would not be able to cover an unexpected $400 expense without borrowing money in some way (credit cards, family, etc.). The good news is that that is a smaller percentage than previously. We are at record low levels of unemployment which may explain some of…

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Communication is Key

I’m not a big talker. Ironic for someone who has written a weekly blog for over a year now. For me, a lot of the time, I think it is easier to stay quiet and let problems or miscommunications resolve themselves. Honestly, I don’t recommend it. It’s not the healthiest way to get through life. I think we should all improve our communication skills and be more open with those around us. Today, I want to specifically discuss why communicating with your partner about finances is important and how to do it better. Some people don’t want to talk about finances at all, even with someone that they share finances with. That won’t work. Finances are the number one cause of relationship stress in couples. Why? I believe a lot of it comes down to not being on the same plan when it comes to spending money.  Everyone comes into…

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Home Cooking For the Win

There is a great way to save money and your waistline. It has been around for forever, but more and more people seem to be forgetting about it.  It’s called making all of your meals at home. And yes, this includes lunch for all of you business boys and girls with jobs. I know you’ve all heard this before: eating at home will save you money, but it is so true that I need to say it again. Let’s start with numbers. In 2015, the average household spent $3,000 every year eating away from home, according to the U.S. Bureau of Labor Statistics. Now, what about 2019? Assuming an 8% increase in spending each year, which is what the increase was from 2014 to 2015, the average American household spends $4,000/year eating away from home (including delivery). I wouldn’t be surprised if it is more than that now with the…

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You Can’t Always Get What You Want

Unfortunately, that song from The Rolling Stones feels less and less true every year that passes here in the U.S. But Tyler, why would it be a bad thing if people could get what they want more?  Because they can’t afford it! There are a plethora of ways for people to borrow money these days. Your good old fashioned loan, credit cards, payday loans, pawn shops, and even a “refund advance” on your tax return (it’s a loan people). More and more, people are using these loans to buy the latest gadget. To get the coolest car or to go on the spectacular trip so that you can share it with everyone on Instagram. My friend even told me about his coworker taking a loan on his 401k so that he could get an apple watch and a new Iphone. He sacrificed his retirement to get text messages on his…

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Budget for Beginners

If you are ever going to be comfortable with your finances and prepared for your financial future, you will need to have a budget. I am not sure that there is a better way for someone to become knowledgeable about the entirety of their financial situation. It gives you a great picture of your incoming and outgoing money all at once. Now, having a budget may look completely different for every individual reading this post. If this is your first time creating a budget, it may feel really difficult to even start. Determining reasonable budget numbers for each area in your life may feel impossible. For those who have had a budget for awhile, it may be on autopilot, something that you look at every now and then to stay on track. For some, like Allyson and I, having a budget is more about tracking spending than planning spending, since…

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Free Money!!!

Would you like free money? I am going to assume that the answer is yes. If for some reason you don’t want free money, you can stop reading at this point. And no, this is not one of those signs on the side of the road promising $1000/week investing in real estate or something similar. This is legitimate and about as easy as it comes.  As part 1 of the Intro to Finance series that I am putting together, I’d like to discuss the 401k that most companies offer for salaried employees. To begin, let’s define a 401k. A 401k is an employer sponsored retirement account that allows employees to invest for their retirement on a tax deferred basis. Essentially, you can contribute money before taxes (reducing your taxable income) and then invest that money. Once you reach the age of 59.5 (hopefully well into retirement), you can then withdraw…

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Intro to Finance

Happy Holidays to all. I hope the holiday season has been good to everyone and that it has been a time of relaxation and fun. It’s been pretty great around here. Allyson and I stayed in Denver this year and took it easy, so it’s been a week of sleeping in, opening presents, and getting a lot of house projects done (our favorite). I’ll eventually write up some posts on the projects we finished, like the new floor in the workshop or new towel rack/shelf that Allyson built in our bathroom. First though, I’d like to go through an introductory series on finance.  I’d love feedback as I introduce some key ideas that I think are important for someone just starting out in their first full time job (or someone wanting to make a change from their current financial path). The idea for this series came from my cousin asking…

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