Fri 20 Apr 2007
Welcome to the April 20, 2007 edition of festival of under 30 finances. There were a number of high quality entries and I did my best to pick out the articles that I best thought fit the spirit of the carnival. I had to exclude a few articles due to them having nothing even remotely close to finances for people under 30 and did have a couple duplicate submissions where I just picked the article I liked better.
For this Festival I asked the question
At what age do you want/plan to be financially independent (IE you donâ€™t have to work full-time if you donâ€™t want to) and what is your plan to get there.
A couple people answered the question and I will highlight the responses here.
- John at Broke Now Rich Later wrote ” I want to be financially independent at 42. I’d like to have over $1mm saved in retirement funds, my house paid off and my kids’ college paid for. At that point, I no longer need life insurance and my income needs go way down. By 46 or so, I should only “need” an income of $30k or so. That leaves me wide open with options. More realistically, I might just stay in my career. By 55, I’d like to be able to retire and travel and be with grandkids. My goal for then is having $2000 a week in after tax income in 2007 dollars. That should fund just about anything I would want to do.”
- The Finance Journey wrote an entire article on the subject – “Ideally I would like to have enough money to sustain me without taking away from principal with reinvesting for inflation….I think I will probably be able to think about retiring around 52 which is 26 years from now. By this time with inflation i will need about $4 million dollars for this plan…I donâ€™t really have any magical plans to make this happen. Currently I am contributing the maximum amount to my 401k and ROTH IRAs”
- Wanda at Well-Heeled wrote – I honestly don’t know how to define “financial independence.” And I can’t forsee myself leaving the workforce for extended periods of time, much less retire early, unless I win the lottery or something equally unlikely happens. But just to grab a figure that seems good to me, if I have $10 million (inflation-adjusted) by the time I’m in my 50s, I might become an independent consultant or work on non-profits.
- Mr. Credit card answered – I plan to be financially free when I am 40 (or early forties). That means having a passive income of at least $20,000 a month. I plan to achieve that through a few businesses that will generate income for me.
- I also wrote an article on this topic which can be found here. “Ideally I think I would like to retire in my early 40s. Now when I say â€œretireâ€ I mean donâ€™t necessarily have to chase the highest paying job and can do something that gives me the flexibility I want to really spend time with my family…….”
- Finally WenchyPoo had the best answer – “Answer to question: already financially independent.”
Thanks to everyone who answered the question and now onto the Festival
Priya Jestin tells about the 10 Biggest Mistakes Made by Poor People That Will Keep Them Poor posted at 1031 Exchange Lowdown. – probably applicable to more than just “poor” people, but in my opinion he hit the nail on the head with many of them
ISPF explains Hereâ€™s Why I Like My Relatively-Frugal Lifestyle posted at Grad Money Matters. - in my opinion being frugal is more fun than spending on whatever you want. It’s also a great stress reliever and simplifies your life so that you can concentrate on what is really important to you.
Silicon Valley Blogger writes A Job Quitterâ€™s Primer: 15 Ways To Resign posted at The Digerati Life. - probably something that many of us 20 year olds will have to do a couple of times. Great advice on how to do it properly.
And here are the rest of the articles
Wanda explains why I am NEVER paying back my student loans (early) posted at Wanda - Even though I don’t have as good of deal as Wanda I share her sentiment. My loans are locked in at about 2.5% and I am stretching out my repayment plan as long as they will let me. You’d be nuts to pay back money that is free or close to it.
The Frugalist writes Why Live Frugally? 15 Ways Frugality Makes You Happier, Healthier, and Sexier posted at Frugalist. - I love frugal articles
Ted Reimers presents 10 Tips on How to get a College Scholarship posted at CampusGrotto, saying, “Student Loans are a major cause of financial debt. Here are 10 tips to getting scholarships to fund your education.” - So often I think of under 30 as 20 year olds, but for you high schoolers this is a great list of tips on how to get additional scholarship money.
Sagar Satapathy wrote The Shopaholicâ€™s Guide to Getting your Expenses under Control posted at Debt Consolidation Lowdown. - Kick that nasty habit and gain back control over your finances.
pfodyssey presents Pareto?s Principle (80/20 Rule) of Personal Finance posted at My Personal Finance Odyssey. - Great list of steps on how to get your financial life in order.
Mr Credit Card presents Roadmap of Career Paths and Financial Freedom (Ask Mr Credit Card’s Blog) posted at Ask Mr Credit Card’s Blog
Henry presents Lower Your Student Loan Interest With Automatic Payments posted at Binary Dollar!.
Pushpa Sathish presents 15 Financial Lessons from the Demise of Anna Nicole Smith (Yes, Iâ€™m Serious) posted at Credit Card Lowdown.
Wanda Grindstaff presents Plant Your Flag and Claim Your Success posted at Creating Abundant Lifestyles Begin With Abundance Mindset
Wenchypoo presents Dollar Stretcher TNG–The Next Generation (L-O-N-G) posted at Wisdom From Wenchypoo’s Mental Wastebasket
Amy Pedersen presents Fair Isaac Corporation, What a Wacky Bunch of Statisticians Dedicated to Credit posted at Your Credit Score Secrets
FIRE Getters presents Automatic Enrollment In 401k Retirement Plan – A Revolution? posted at FIRE Finance.
David presents Becoming a Millionaire Investing $5,000 â€“ Reality of Fantasy? posted at Worldwide Success.