Brace Yourself for the Next Recession

There has been a lot of talk of recession lately.

Based on historical trends, we are overdue for a recession. Add in the fact that the President of the United States is considering starting trade wars over his advisers’ objections, and it becomes even more likely, according to economists. Continue reading “Brace Yourself for the Next Recession”

Is It Worth It? (Why I Save So Much, Part 4)

Over the last couple weeks I’ve run through a lot of my philosophy behind saving and investing. I discussed that I invest at least as much as I spend every month because I want to buy options for my life, because I see the value of labor declining over time, and because I don’t want to need to start a new career path if mine gets automated out of existence.

The big question for most people at this point is: “Is it worth it?” Continue reading “Is It Worth It? (Why I Save So Much, Part 4)”

The Onslaught of Automation (Why I Save So Much, Part 3)

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Is this guy coming for your job?

Today we’re back talking about why I save such a high percentage of my income.

Last week we talked about buying options and how hard work is paying less and less over time.

One of the reasons that we are being paid less for our labor is the increasing reliance by companies on automation. This increased automation is a serious enough concern that it gets its own article today. Continue reading “The Onslaught of Automation (Why I Save So Much, Part 3)”

Hard Work Doesn’t Pay (Why I Save So Much, Part 2)

On Tuesday I started trying to explain why I save and invest such a high percentage of my income at such a (relatively) young age.

In that post, we spent some time exploring how a high savings rate can buy you options and can free up how you spend your time in the future. It was an optimistic and positive pitch for saving.

Today will be a bit less optimistic. And less positive. It will be about a sad truth of our modern economy.

Hard work doesn’t pay.

At least, not as much as it used to. Continue reading “Hard Work Doesn’t Pay (Why I Save So Much, Part 2)”

Why I Save So Much

I save and invest a lot. I track my spending and investing and have a goal of investing (between retirement accounts, health savings accounts, and taxable accounts) more each month than I spend. I have successfully hit this goal every month for the last three and a half years.

I recognize that this is unusual.

I have spent a good deal of time preparing taxes for folks in a pretty well-off area, and I am aware that most people don’t save like this. It is especially unusual for young people. Continue reading “Why I Save So Much”

How to Triple Your Investment Returns

I fully anticipate a steep drop in the stock market in the near future. If I were to guess, I would say it will come in 2017, but maybe it will be next year.

We’re overdue for a recession. Since World War 2, we’ve had a recession about every five years on average. The last one was in 2008. I’ll let you do the math on that.

We also have a president who has campaigned on threats of trade wars and a Congress who is looking to pass an import tax this year.

So what am I doing to prepare for the upcoming dip? Continue reading “How to Triple Your Investment Returns”

One Tax Season Tip to Save $9,000

I spend a good deal of time preparing taxes this time of year.

My own, sure, but also lots of other people’s. I prepare taxes as a side hustle.

As far as side hustles go, it’s pretty good. The money is solid for a side gig. I can work as much or as little as I want. I get to work with numbers, which is something that I miss in my current day job.

And yes, I recognize that that last line may not be a selling point for most people.

I have learned a lot through this job, but there is one lesson in particular that I want to talk about today.

Nobody is putting enough money in their 401(k)! Continue reading “One Tax Season Tip to Save $9,000”

The Ostrich Effect

You may be familiar with the term “burying your head in the sand.”

The image comes from the myth that ostriches avoid danger by sticking their heads in the sand and pretending it doesn’t exist.

When we are accused of burying our heads in the sand, it means that we are ignoring bad things in the hopes that they will go away. This is usually not a useful strategy. Continue reading “The Ostrich Effect”

Why We Have Trouble Making a Change

When faced with a tough decision, most people choose to do nothing.

This is the basis of the Status Quo Bias, first proven in a series of experiments in 1988 out of Harvard. The general idea is that people are emotionally attached to the current state of affairs and are skeptical of any change from that baseline.

This means that we tend to need overwhelming proof to make a change, even when that change would be the better option. Continue reading “Why We Have Trouble Making a Change”