Making almost all of the right financial decisions are quite simple when you know what they are. It's just getting people to do them, like eating vegetables, that can be the hard part. So in case you just lack the knowledge and you're not a whiny little bitch because you hate spinach. Here are the financial keys to financial freedom.
Here is what the index card says in case you can't read Crass Cash's hand writing...
1. Save 20% of your income.
2. Pay off all debt in this order: Credit Card, Auto, Student loans, Mortgage.
3. Max out your 401(k) and IRA.
4. Invest that money into low cost index funds on a regular interval that are diversified into USA and International stocks.
5. When you reach 50 years, start putting everything into bond funds.
6. Always have health, auto, liability, and life insurance (only life if you have dependents).
7. Buy term instead of whole life insurance.
8. When all else is done, setup a 529 plan for your kid's college education.
9. Create a will in the event that you die too early.
Print this out and post it on your frig or put it in your wallet. Just make sure it's some place you'll see it every day to pressure you so that you're working on it, rather than ignoring it.
-CC
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If you'd like to donate some stocks and bonds to charity. Follow these simple rules. 1. The charity must be qualifed so that you receive a tax deduction. 2. You get full market value of the donation without having to pay the capital gains. 3. If the assets have depreciated in value. Sell the items first, take the loss against your taxes, then donate the cash to the charity. The end of the year is coming up so check with your CPA to see if this would be a good tax move for you this year or next year. -CC If you want be healthier and eat for less, than eat like the poor. No I'm not talking about American poor, the great unwashed masses of obesity. I'm talking about the truly poor. What is the common diet of Bolivians? How about India? What do they eat in SE Asia? Rural Chinese cuisine anyone? It should also be noted that these are some of the healthiest people on the planet. The problem is their longevity is skewed due to diseases that have been eradicated in Western societies for a few generations now. In order to not breed ignorance you should read these three books: THE BLUE ZONES, HEALTHY AT 100, and THE CHINA STUDY. They look at pockets of societies where people live very long and just so happen to be quite poor. Coincidence? Their diets revolve around these staples: fruits, veggies, nuts, rice, spices, small amounts of lean meat (usually fish), beans, and eggs. Most of these items are eatin raw (heat costs money) except for obviously rice, beans, and the meat. However, the rice and beans can actually be "cooked" using no heat via soaking. Google it, it's also healthier. On top of this, mimic the poors physical activity. THEY WALK EVERYWHERE! Not because they like it, but because it's free. Walk to the grocery store. Walk to the farmer's market. And if you're going to eat crap fast food at least walk there as well. A simple rule is that if you're going to eat, then you have to expel some calories in order to get it, just like the cavemen. The USA is the only place I've seen where there are obese homeless people. This would lead one to think that food here is cheap. Food here is cheap, but relative to what you can get at the grocery store processed fast food is still quite expensive. I haven't explored the dietary rituals of the homeless, but I would suspect that for their own safety they're eating out of McDonald's dumpsters and not the raw organic coop. Processed food kills you one bite at a time. And your wallet one dollar a purchase. -Crass Cash |
AuthorThis website was created due to the atrociously misguided financial advice that I've heard over the decades. Financial freedom is not intellectually strenuous, but it takes discipline. Categories
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October 2017
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