This is also true in assessing whether a recession is coming.
Based on historical trends, we are overdue for a recession. On top of that, we’re in the midst of a trade war that some economists think could push us into a recession.
Whether you agree with that assessment or not, it is important to make sure that you are prepared for a recession so that if and when one does hit, you don’t lose your financial footing. Continue reading “Recession-Proof Yourself”
For 2018 I am spending each month working on improving a different area of my life and discussing it with all of you. January was life planning month and we’ve spent February exploring the basics of personal finance.
In the personal finance space, we tend to treat the concept of financial independence as a more advanced money topic. We view it as something to move on to after you’ve mastered the basics.
I don’t think this is the right approach.
I think we need to teach financial independence as an introductory personal finance topic. It should be a basic of learning about money.
A lot of people in the personal finance space tune out politics and recommend that their readers do the same. I don’t agree with this approach. I follow politics closely and stay up to date on policy proposals and all sorts of nerdy wonkery.
That said, when approaching topics for this blog, I make sure that every article has a takeaway that you can use to directly improve your life. That rule helps me stay focused on helping people with my writing rather than just writing about areas of my own interest. This also means I usually don’t discuss policy proposals making their way through Congress.
Every conversation that I have had discussing the benefits of buying versus renting has eventually turned to the Mortgage Interest Deduction.
(What? Doesn’t everyone have those conversations? Just me?)
If you itemize deductions on your tax return, the Mortgage Interest Deduction allows you to deduct the interest that you pay on your mortgage from your income. This ultimately lowers your taxes and, in turn, your cost of home ownership.
This perk is often mentioned to me as a key reason for buying a home rather than renting.
There are a number of reasons why I disagree with this approach, but today I want to explore one in particular.
The Mortgage Interest Deduction could be gone soon.
Everybody is always looking for ways to make more money.
The Internet abounds with articles about side hustles and negotiating raises. There are entire television channels devoted to following stock market investments. Being a co-host of a show about angel investing can help catapult you into consideration to be a vice presidential candidate.
But from what I’ve seen and read, it looks like most people are taking a scattershot approach to making more money.
People try a little bit of this and a little bit of that. They jump into a side hustle and then when that doesn’t work they try another.
Like most other things that I talk about, I think it makes sense to look at earning money in a more systematic way. If we really want to make more money, we should understand the landscape.Continue reading “How to Earn More Money”