Free Money Finance

Top 10 Free Money Finance Excerpts of 2012

I run quite a few book excerpts here at Free Money Finance. I like them because they are basically well-written guest posts. I work with authors and/or publishers to select pieces I think FMF readers will like, share what they have to say, and then you all decide whether or not you want to buy the book or pick it up at the library. While I've had tons of great pieces to choose from this year, here are my top 10 in countdown order, along with key quotes from each:

#10 - Making a Great Resume, Writing Powerful Accomplishments - "Describe each accomplishment in a simple, powerful action statement that emphasizes results that benefited your employer."

#9 - Case Studies Of People Who Have Successfully Quit - "Two examples of people who have successfully quit their jobs with a severance package."

#8 - How Much Income Do I Need For Retirement? - "So will you spend more or less in retirement than you do today? That is a judgment call that only you can answer. Here are some useful guidelines."

#7 - The Importance of Accomplishments - "The resume is not a story about your responsibilities or duties. It is not just a job description. It is about the facts: What did you do? What did you accomplish? In today’s job market competencies supported by accomplishments are the focus. Simply listing a bunch of competencies on a resume without any supporting accomplishments just does not cut it."

#6 - LinkedIn Best Practices - "LinkedIn is to business networking what Google is to Internet search. If your profile is not on LinkedIn, then you do not exist as a professional." 

#5 - Answer These Six Essential Questions To Determine Your Retirement Number - "The first step in determining how much money you will need to save for retirement is to answer a few basic questions about your future. If you can answer these six questions accurately then your retirement savings number will also be accurate."

#4 - Spend Like You Want to Grow Rich - "If we’re interested in building wealth, perhaps we should all make a pledge to ourselves much like a doctor’s Hippocratic oath: above all, DO NO HARM. We’re living in an era of instant gratification. If we want to communicate with someone half a world away, we can do that immediately with a text message or a phone call. If we want to purchase something and have it delivered to our door, it’s possible to do that with a mobile phone and a credit-card number— even if we don’t have the money to pay for it."

#3 - Make the Best of Your Investment in College - "College should prepare you for finding a good job and a rewarding career. Your college years can be a training period in which you develop your general skills in order both to get a great job right out of college or graduate school and to succeed in the workplace. By taking advantage of the opportunities that college offers, you can build the base of skills you need not only to land your first job but also to excel at it. Once that happens, you will be on your way to a lifetime of rewarding work."

#2 - “Do What You Love” Is Bad Advice - "We all get told at some point (if not over and over again), 'Do what you love and the money will follow,' and it’s just plain bad advice. The number of people who make a lot of money doing what they love is so insignificantly small that it’s an unrealistic and useless thing to model. The most unfortunate thing about this is that it makes people feel like they are failing when they don’t achieve it."

#1 - Creative Life Planning Solutions For Retirement - "You want to focus your retirement planning energy on what really matters: your assumptions."

Enjoy!

Top 10 Free Money Finance Guest Posts of 2012

As regular readers know, I feature a lot of guest posts throughout a year (though not as many this year as in past years). I like to get a variety of perspectives on money issues, hear from others in different life stages than I'm in, and let readers get money thoughts from someone other than me. Each year I highlight what I consider to be the top 10 guest posts from the previous year, and here they are for 2012:

#10 - Why You Don’t Need Long Term Care Insurance - We debated this back and forth all year. Does a person need LTC insurance or not? This CFP says "no."

#9 - How to Save Money While Getting Fit - Two things I love: saving money and keeping fit!

#8 - Fund a Teenager's Million-Dollar Retirement - We have Roth IRAs for our kids that should be worth about $20k or so by the time they leave college.

#7 - Real-Life Stories of How People are Making Side Incomes - Who doesn't like to hear ways of making extra money from people who are actually doing it?

#6 - Some Side Hustles to Ramp up Your Retirement Savings - More money making ideas!

#5 - Squirrel Away Money While You Can - A good, basic "save as much as you can as soon as you can" post.

#4 - What the Heck is Early Semi Retirement? - I love the concept of early semi-retirement and this post, written by someone who's done it, gives details on it.

#3 - Active Investing Success is Rare - This isn't a guest post, but I included it since the majority of the content comes from someone else. And how could I exclude a post featuring Old Limey's wisdom from my list? :)

#2 - FMF Reader Profiles - Not a true guest post, but that's essentially what these articles are -- a guest post written by a reader answering questions. The series has been so popular that I had to include it in this list.

#1 - Real Estate 101 - The winner hands down. This series by Apex has been awesome! I know I have appreciated the time and effort he put into it and I am sure FMF readers have as well.

Enjoy!

Top 15 Free Money Finance Posts of 2012

Each year I list what I think were my best posts from the previous year (posts written by me -- not guest posts or excerpts). Here's this year's summary of what I consider the "best" of FMF out of the 700+ posts here last year:

#15 - A Simple Way to Calculate Your Retirement Number - Figuring out how much to save for retirement is a tricky and complicated process. This post provides a simple way to get close to your retirement number without having to spend three days of calculations in the effort.

#14 - Combining Multiple Savings Offers to Maximize Savings - The theme of saving money by stacking various discounts on top of each other was clear not only in this post but also in Stacking Multiple Discounts to Rack Up Big Savings, Real-Life Examples of How I Score at Outlet Malls, and How to Get Great Deals on Outlet Purchases. I hope to do more of this type of saving in the years to come. :)

#13 - Income to Wealth to Income - Money flows in different ways during different times in our lives, and this post highlights the changes from one period to the next.

#12 - FMF Cruise Review - We took our first cruise last January and this multi-part series detailed what we did and how much it cost. It also has some great pictures of our time in the sun. I also like Our Trip to DC (And a Few Ways to Save) for the same reasons.

#11 - Small Choices Can Lead to Big Gains - This has been a big theme here at FMF from day 1 -- that little things matter, so pay attention to them.

#10 - Spend Less than You Earn - Details the fact that there are two sides to this coin -- spending less and earning more. It goes well with my post titled Making More Versus Spending Less.

#9 - Moderate and Selective Frugality - We can't save all the time, right? We have to have some fun things to spend money on or what is life worth? That's why I practice what I call moderate and selective frugality.

#8 - The Two Ways To Track Financial Success - How much cash you free up and how you turn it into wealth are two key measures that tell you how you are doing financially.

#7 - My Road to Becoming a Landlord - The biggest change in my finances this year is that I've entered the rental real estate market. This post was my announcement of these efforts.

#6 - The 52 Best Money Saving Tips - I have thousands of money saving tips hare at FMF, but too many choices are too overwhelming for people. That's why I write this series -- to focus on the handful of ideas that can save the most people the most money.

#5 - What Are You Doing to Make Millions More? - A key thought for 2012: that your career is your biggest financial asset and what you do to grow it can have HUGE implications over your lifetime. This post goes well with Make Millions More: The Difference 1% Can Make and The Power of 1% All the Way Around.

#4 - Becoming Wealthy May Be Simple, But It’s Not Easy - There's a difference between "simple" and "easy" and it's the reason some can accumulate wealth and others can't.

#3 - The Safest Retirement - What I hope to achieve -- a retirement where I don't have to spend any principal from my savings, I can just live off the earnings my assets generate.

#2 - 80-20 Your Finances - I like to get the most bang for my buck whether that involves money, time, effort, or whatever. That's why I like this piece -- it gives me 80% of the results for 20% of the effort. It goes well with 80-20 Your Career and 80-20 Your Investments.

#1 - 30 Steps to Great Finances - If you want to get your finances in the best shape possible, these 30 steps will get you there. They are designed to take you from knowing very little about personal finances to being a master in just a few, simple steps!

Enjoy!!

Top 10 Free Money Finance Guest Posts of 2011

As regular readers know, I feature a lot of guest posts throughout a year (though not as many this year as in past years). I like to get a variety of perspectives on money issues, hear from others in different life stages than I'm in, and let readers get money thoughts from someone other than me. In fact, I have so many guest posts that I even have my own policy for them. So I thought it would be fun for me to highlight what I consider to be the top 10 guest posts here from 2011 (FYI, here are the top ones from 2009 and 2010). Here they are in countdown order, along with key quotes from each:

#10 - Ten Questions to Ask a Financial Advisor - "Someone asked me what disclosures I would require for financial advisors. I've written these principles in a yes-or-no format and reworded the questions. "Yes" is the best answer and "no" means you should seek more information or not consider that advisor at all. Although answering affirmatively to all 10 questions would be my first screen in selecting a financial advisor, it still does not guarantee the person has the competence necessary to offer comprehensive wealth management."

#9 - Making a Million Bucks is So Simple – But Why Can Most Only Dream About It? - "Making a million bucks is not that complicated of a task. And the bottom line is that your piece of the pie is out there if you want to go grab it.  But can you?  Do you want to? What is preventing you?"

#8 - How to Run a Successful Reselling Business - "A few years ago, I decided to sell some of my wife's old college textbooks on Amazon. Later, I found several unused items around my house that I also sold for a decent profit. With a little luck and a lot of hard work, I eventually developed my own reselling business. I made quite a few mistakes along the way, but I learned a lot and quickly realized I could do this as a side business and make decent extra income. There are a number of things you should do (and things you should avoid) when starting, developing, and maintaining your reselling business."

#7 - Pay Yourself First - "The greatest engine to generate real wealth is saving and investing. And the best way to ensure that your default is saving and investing is to automate the process. Pay yourself first, and your savings will grow exponentially. Wealth management is based on the idea that very small changes can yield enormous gains in your family's finances. This process, both easy and simple, is worth millions. Unfortunately, only a tiny percentage of American families take advantage of the tools available to implement this automated technique."

#6 - Compute Your Net Worth Once a Year - "Net worth gives you a snapshot of how much money would be left if you converted everything you owned into cash and paid off all your debts. Compute your net worth by creating four lists."

#5 - Launching the Career of Your Dreams: How I Achieved My Dream Career Within 4 Years of College Graduation - "The idea that the hunt for a career to step into begins after you graduate from college (or high school, trade school, etc.) is completely outdated. In fact, the preparation time suggested by the title of this section (1 Year) might not even be aggressive enough given the employment environment that we are in currently, including an unemployment rate in excess of 9% (which some would argue is, in fact, much higher). But at the bare minimum, one year before you are set to enter the workforce, your preparation better be kicked into high gear."

#4 - The Case for the Mileage Based Credit Card - "The point is that there are some circumstances where mileage based credit cards are better, and you'll want to properly evaluate your situation so you can make the right decision."

#3 - Five Retirement Surprises - "Although I found a lot of material on planning and preparing for retirement, I didn't find much on actually being in retirement.   To help all of you future retiree's out there, here are 5 surprises I have found in retirement and some suggestions for you on each."

#2 - FMF Reader Profiles - Not a true guest post, but that's essentially what these articles are -- a guest post written by a reader by answering questions. The series has been so popular that I had to include it in this list.

#1 - The Complete Guide To Building Wealth In Two Sentences - "The truth behind wealth building is public domain knowledge, simple to understand, and nobody is going to get rich selling it you."

Enjoy!

Top 10 Free Money Finance Excerpts of 2011

I run quite a few book excerpts here at Free Money Finance. I like them because they are basically well-written guest posts. I work with authors and/or publishers to select pieces I think FMF readers will like, share what they have to say, and then you all decide whether or not you want to buy the book or pick it up at the library.

While I've had tons of great pieces to choose from this year, here are my top 10 in countdown order, along with key quotes from each (FYI, here's my list for 2010):

#10 - Measure What Matters - "How do you know you’re doing a good job in your job search? Raw activity is not enough. You can be really busy in a job search while nothing is really happening. If your computer talks to some corporation’s computer, that’s nothing. That counts for nothing. The most important thing to measure is actual interviews for jobs. Everything else is secondary. If you get interviews, you’ll get a job. If you don’t, you won’t. It’s that simple."

#9 - Finding the Life Insurance That Is Best for You - "Despite the seeming complexity, there are major similarities between certain types of life insurance contracts: term insurance typically works the same from company to company, and so do different types of permanent or cash value policies. However, the devil is in the fine print/details. And here’s the bottom line: all life insurance policies promise to pay an agreed-upon sum of money should you die while your policy is in-force (that is, while you’re paying your premiums on time and while you’re still operating within the terms of your contract). That’s essentially what life insurance is all about." 

#8 - Dust Off Your Network - "If you think you might find yourself on the job market in the next six months, you should have the foresight to start by dusting off your network."

#7 - Rebalancing—Your Best Friend - "Overall, it seems there’s a middle ground for rebalancing. Quarterly rebalancing of a portfolio, assuming a five percent deviation from your targeted allocation (say, 60 percent equities, 40 percent bonds), gives you a disciplined schedule to work from, but doesn’t incur unnecessary trading if your assets haven’t returned enough to warrant the rebalancing. From 1960 to 2003, quarterly rebalancing produced a return of 9.669 percent annually, slightly better than monthly or annual rebalancing, according to Vanguard. Such portfolios were also a bit less volatile than those rebalanced just one time a year, and produced better returns than the monthly rebalancing schedule."

#6 - How to Impress with Your References - "A very strong reference can make the difference between receiving an offer that you will absolutely accept and not receiving an offer. Enlightened companies and hiring managers understand the importance of an effective reference check."

#5 - The “Experts” Fallacy - "Many of you have probably at one point or another allocated some of your money to funds that were expected to do well because they were highly rated by fund ratings company Morningstar or because of past results. But it doesn’t take much for an investor to destroy all of the previous gains he had worked to accumulate over previous years."

#4 - Why You Should Reject Counter Offers - "Do you really believe them when they say they are happy you decided to stay? Are they happy for you, or happy for themselves? Now they have Old Reliable still in the seat and don’t have to spend time and money to recruit a replacement."

#3 - Index Funds: Not All Equal - "Vanguard’s Index 500 fund has mustered returns that have outpaced about 85 percent of the mutual funds in the last few decades. And that is, again, without doing anything but passive investing. That does not mean, however, that index funds are a monolith. There are nearly 200 index funds and exchange-traded funds tracking the S&P 500, and their performance does vary due to differing expenses underlying each of these funds. Some of the funds in question have surprisingly high expense ratios."

#2 - Listing and Quantifying Achievements - "With the exception of government and nonprofit entities, all organizations are concerned with two things: problems and profits. To that end, you need to show what you have done for past employers to solve their specific problems or increase their profits. Make a list of what your resume might say to demonstrate your past achievements. Here are some things to think about."

#1 - The Need to Save Money is Life or Death - "It is so important that you not let yourself be included in this vulnerable, exposed group, that it's impossible to overstate the seriousness of the matter. YOU MUST HAVE SAVINGS."

Enjoy!

Top 10 Free Money Finance Posts of 2011

Last year I listed what I thought were my best posts of 2010 (here are the ones from 2008 and 2009 if you are interested.) I'm continuing that tradition now with what I feel were my top 10 posts of 2011 (listed in  countdown order) out of the almost 900 posts here last year. If you want a summary of what I consider the "best" at FMF last year, here it is:

#10 - Personal Finance Insights from HGTV - You can learn personal finance principles in many places, but there aren't many that are more fun than by watching HGTV. ;-)

#9 - Is $250,000 Really Not Enough to Live On? - I like this one because it's controversial and generated a lot of discussion.

#8 - Soccer Referee Earnings Review and Update - I love the whole "turn your hobby into an income" line of thinking and this post demonstrates that I've been able to practice what I preach in this area.

#7 - Your Insurance May Cover More than You Think It Does - I like this one because it shares a simple, unique but effective tip that can save you a good amount of money. Similar ideas include Why You May Want to Spread Out 401k Contributions and Always Ask for a Raincheck. 

#6 - Valuing Time in Home Repairs - More and more I find myself adding in the cost of time into financial calculations. For instance, is it "cheaper" to buy an item at a store I'm at for $30 or to drive 15 minutes to get it for $25. I used to drive the extra miles. Now it depends. If I'm going that way anyway any time soon, I'll wait. But if I'm not and really want the item, I'll get it for $30 now. Time IS money, after all.

#5 - My New Credit Card Strategy - I spent a lot of time talking about credit cards this year as I moved from a single-card to multi-card strategy (forced primarily by the closing of the Schwab/FIA Services 2% cash back card.) I'm happy with the balance I've struck between maximizing rewards but not making the system too complicated to follow.

#4 - Don't Pre-Buy at Best Buy Unless You Want to Risk ID Theft - Best Buy makes the list as my most-hated company this year, followed closely by Comcast and Sears.

#3 - FMF $5k Red Kettle Challenge - I'm very proud of how the FMF family gave so sacrificially at the end of last year so that those less fortunate could eat, have shelter, and be warm.

#2 - Saving More Beats a Higher Yield - A key point of investing that I think most people are oblivious to (or at least don't give as much weight to as return rate.)

#1 - How to Maximize Your Lifetime Earnings - If you read and apply nothing else from all of last year, please at least read and apply what's in this piece. If you do, your financial life will be dramatically changed for the better.

Enjoy!!

Top 10 FMF Topics of 2010

As I wrap up my "top 10" lists for 2010, here are the top 10 categories I posted in (in countdown order) along with the number of posts in each category as well as a "highlight" post (not necessarily the "best" post in that category.) FYI, I had over 900 posts in 2010. Here's the list:

#10 -- Debt (37) - This one surprised me since I don't remember writing much about this topic. Then again, I said that last year when "debt" was #9. Dealing with debt isn't a financial issue I'm facing (and haven't for quite some time), but I know others do so I expect to keep covering it now and then. Highlight: Seven Steps to Get Out of Debt  

#9 -- Making Money (39) - This topic was #4 last year, so it fell quite a ways. I focused on it in previous years, so I guess I moved away a bit in 2010. Perhaps I'll cover it more in 2011. Anyone interested in that? Highlight: This Money Making Idea is Going to the Dogs  

#8 -- College (42) - Not on the list last year, this category makes a big move up mostly behind my coverage of the book Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents, which made my list of "best books". Highlight: Thoughts on the "New" Way to Go to College  

#7 -- The Bible and Money (48) - Thought I covered this once a week. Guess I missed a few weeks in 2010. ;-) Highlight: Principles of Biblical Finance  

#6 -- Retirement (55) - Up from #8 last year, this topic was driven in part by my coverage of early semi-retirement, a concept I'm fascinated with. Highlight: Eight Steps to Early Semi-Retirement 

#5 -- Investing (65) - Always a staple here at FMF. I don't expect things to change in 2011. Highlight: Time, Time, Time  

#4 -- Career (70) - This was the #1 topic last year, so it was due for a bit of a letdown in 2010. Still, the topic averaged well more than once-a-week coverage and will always be a regular feature here. Highlight: Career Insurance: Insuring Your Most Valuable Asset  

#3 -- Financial Planning (75) - This is a catch-all category for posts that really don't have a home elsewhere. Highlight: The Ten Worst Money Mistakes Anyone Can Make  

#2 -- Help a Reader (84) - This is always one of my favorite categories for two reasons: 1. It helps people with real needs -- something FMF has always been about and 2. The answers come from the readers, not me. You all have so much wisdom that I LOVE reading the comments to these posts! Highlight: Help a Reader: Saving versus Mortgage (88 comments!!!)

#1 -- Saving Money (86) - After finishing last year at #2, the "king" of categories here at FMF takes his rightful place as the #1 category covered (it has been #1 for most years this blog has been published.) Highlight: A Good Money Saving Tip or Unethical Way to Save Money?  

Top 10 Free Money Finance Excerpts of 2010

I run quite a few book excerpts here at Free Money Finance. I like them because they are basically well-written guest posts. I work with authors and/or publishers to select pieces I think FMF readers will like, share what they have to say, and then you all decide whether or not you want to buy the book or pick it up at the library.

While I've had tons of great pieces to choose from this year, here are my top 10 in countdown order, along with key quotes from each:

#10 - Nine Roth IRA Conversion Mistakes - "To properly judge whether to commit to a Roth IRA conversion, you must make the Roth conversion(s) first and wait until near the end of the recharacterization deadline to decide."

#9 - Three Common Questions about Getting Financially Naked - "Here are some classic signs: Your partner wants to spend more and you are borrowing money from your family to support this lifestyle. You look at how your partner’s family lives and it doesn’t seem to add up, which may be a red flag that your partner has been trained to live beyond his or her means. You start wondering about your household financial facts and you encounter resistance. For example, your partner says everything will be okay and there’s no need to worry about it. There are many more signs, but here are three that indicate it’s time to make talking money with your mate a top priority."

#8 - Principles of Biblical Finance - "When we spend, save, invest, give, and borrow with the same ratios, purpose, and priority as the self-centered, unbelieving world around us, we have no grounds to speak of Christ’s impact on our lives."

#7 - Five Tax Myths - "we will address the most common myths in personal financial planning regarding taxes and also share the tax strategies of which you should be taking advantage."

#6 - Information is Not Enough - "The basics of financial health aren’t complicated, and they’re pretty much the same, no matter who you are or your level of wealth. They are even the same whether you’re talking about a person, a family, a company, or a country: Save now and invest for the future. Spend reasonable amounts of money to enjoy life and accomplish your goals, but spend less than you earn. Beware of an investment that looks too good to be true, because it probably is. Pretty simple, right? So why is it that so many of us can’t seem to make those rules work for ourselves?"

#5 - How to Prepare for a Performance Review - "If you’re an employee whose supervisor doesn’t often open the door, take the initiative yourself and make an appointment to talk to him or her periodically. Angst comes when the performance review is the single time, or just one of few times, that supervisors and employees sit down together during the year."

#4 - Toileting and Retirement, Should I Purchase Long-Term Care Insurance? - "As you age and your health deteriorates, you may need help with many of the things you take for granted today. If you do need assistance performing the basic activities of everyday living, who is going to provide it for you? Not being prepared for this possibility carries some devastating consequences, such as prematurely depleting your assets, receiving substandard long-term care, or becoming a burden to your family."

#3 - Money-Making Hobbies - "Even if you're not interested in owning a business that you work at full time, a small-scale venture might be right for you. Why not build a business around one of your hobbies? You won't get rich by playing your violin at weddings or weaving baskets, but it never hurts to earn a little extra cash from things you'd do anyhow. This section suggests some key ways to make money from your hobbies."

#2 - What Your Boss Wants You to Do - " We asked 1,800 business leaders—primarily in the United States and Canada—how advantageous the core behaviors discussed herein would be if they were exhibited by workers who were being considered for layoffs. Would these behaviors work in favor of employees (keep their jobs), or would they be of no advantage (get laid off)? You probably want to know the outcome of the study before you invest a lot of time becoming skillful in these areas, right? Here’s what we found."

#1 - 14 Great Money Principles - "Based on my research—and my experiences with what does and doesn't work—I've developed a list of 14 guidelines that form the basis of my financial philosophy."

Top 10 Free Money Finance Guest Posts of 2010

As regular readers know, I feature a lot of guest posts throughout a year. I like to get a variety of perspectives on money issues, hear from others in different life stages than I'm in, and let readers get money thoughts from someone other than me. In fact, I have so many guest posts that I even have my own policy for them (let me know if you're interested in writing a guest post -- I could use some coming up). So I thought it would be fun for me to highlight what I consider to be the top 10 guest posts here from 2010 (FYI, here are the top ones from 2009). Here they are in countdown order, along with key quotes from each:

#10 - The Eight Biggest Mistakes Investors Make - "#1. Investing in style instead of substance."

#9 - 11 Smart Ways to Help Get Out of Debt - "Here is a list of tips that I hope will help to save you some money, ease your financial burden and bring the light at the end of the tunnel (becoming totally debt-free) within sight."

#8 - Eight Great Frugal Date Ideas - "So how do you make sure you and your girlfriend/boyfriend or husband/wife have an awesome date night without breaking the bank? Here are my eight favorite frugal date ideas."

#7 - Why I Report My Daughter's Babysitting Income to the IRS - "Consider filing a tax return for your teenager to report her babysitting income and then open a Roth IRA for her."

#6 - Deadly Mistakes on the FAFSA Could Cost You Thousands of Dollars in Financial Aid - "If you are doing your financial aid forms, there is only one goal -- reducing 'included' assets."

#5 - Warren Buffett on the Best Investment You Can Make - "The most important investment you can make is in yourself. Very few people get anything like their potential horsepower translated into the actual horsepower of their output in life. Potential exceeds realization for many people…The best asset is your own self. You can become to an enormous degree the person you want to be."

#4 - Two Mind Hacks to Lower Your Expenses - "This article is about looking at money in a different way then you're used to - about transforming how you value each expense. More specifically, about using two mind hacks, that will make you look at money differently from this day forward."

#3 - Make Money Buying and Reselling Things You Know About! - "I wanted to share some powerful insights with you today about how you can make serious money buying and reselling almost anything for an exceptional profit!  How in the world is that possible you ask?  It’s actually quite a simple transaction that takes a good bit of patience and practice to master.  Once you have learned how to do it, you can make some extra money to pay down debt, save, give or buy something else you really want!"

#2 - Three Myths About Earning More Money - "If you want to be different and really start earning more money, you'll need to be able to identify and overcome three big myths of entrepreneurship."

#1 - Leaving Money on the Table, or Not, when Negotiating - "I’ve worked on all three sides of the comp (aka compensation) question: as an employer, as a consultant on compensation systems with a large firm, and primarily as an executive coach, leading professionals to desired conclusions in their own career and compensation discussions. I see money being left on the table constantly by employees in most salary negotiations because you hate to ask for it, and you’ll never know that the money is there if you don’t, especially when you’re first being hired by a company. Here’s the most amazing part: you can actually hurt your reputation by not asking for a higher salary."

Top 10 Free Money Finance Posts of 2010

Last year I listed what I thought were my best posts of 2009 (and here are the ones from 2008 if you are interested.) I'm continuing that tradition now with what I feel were my top 10 posts of 2010 (listed in countdown order) out of the over 900 posts here last year. If you want a summary of what I consider the "best" at FMF last year, here it is:

#10 - Real-Life Case Study: How to Take Early Semi-Retirement - I was introduced to the concept of early semi-retirement this year and it intrigues me. In addition, I LOVE real-life stories of how people have accomplished a financial task that many of us simply discuss. As such, this post makes it into the top 10.

#9 - How to Buy and Sell Physical Gold and Silver - A three-part interview that was very enlightening for me -- not because it made me want to buy physical gold and/or silver, but because it uncovered many of what I see as "mysteries" associated with doing so.

#8 - Seven Steps to Get Out of Debt - A basic, "down and dirty", how-to post. One that can be read and used for years to come.

#7 - Three Easiest Ways to Earn More Money - Everyone loves "easy" and everyone loves "earning more money", so this post is bound to be a winner. ;-)

#6 - How to Ask for a Raise - A key to making the most of your #1 financial asset (your career) is to ask for raises when the situation is appropriate. This post tells how to do it successfully.

#5 - The Two Financial Measures that Determine the Health of Your Finances (AKA Two Financial Measures to Track Your Finances) - You need to regularly monitor your net worth and your cash flow to keep track of how you're doing financially. This post tells why.

#4 - Two Simple Equations that Lead to Financial Success - Gives the keys to financial success -- having surplus income (savings) for many years leads to wealth. Simple, yet powerful.

#3 - Making the Most of Your Most Valuable Financial Asset - An on-going, foundational topic here at Free Money Finance. Most people have their careers on auto-pilot (letting what will happen to them by fortune, luck, etc.) simply happen, and that's a big financial mistake. This post tells why and what to do instead.

#2 - The Ten Worst Money Mistakes Anyone Can Make - In addition to making the right moves to become wealthy, you need to avoid these ten. If you don't, they can derail all your efforts to grow your net worth.

#1 - Career Insurance: Insuring Your Most Valuable Asset - If your career is your most valuable financial asset (which it is), then you need to protect it. This post tells how to do so. In addition, I like it because it represents "new thinking" -- a concept that I haven't seen elsewhere previously.

In addition to the posts above, there were some other posts that I felt were worth mentioning again, but just missed cracking the top ten. They are:

 

• Make and Save Money by Getting Rid of Your Junk - It regualrly amazes me how much "stuff" Americans have. If we sell just the things we don't use, we can make a good amount of extra income and de-clutter our lives at the same time.  

 

 

• How to Become Wealthy - Many readers got hung up on the example and missed the point of this post -- the road to becoming wealthy is one that almost anyone can travel, if they follow the right map.   

 

 

• Five Financial No-Brainers - A simple post that lays it right out there -- if you aren't doing all of these five, you're missing something financially.  

 

Enjoy!!

Best of FMF

For what I'm guessing is also the case for most of America, I'm on vacation today -- still celebrating Independence Day. As such, blogging will be light (translation: this is the only post for the day.) For those of you who simply HAVE TO have some personal finance content, even on a holiday, here are some great FMF articles (at least I like them) from the past few months for you to enjoy:

• The Two Financial Measures that Determine the Health of Your Finances 
• Two Simple Equations that Lead to Financial Success 
• Three Easiest Ways to Earn More Money 
• Five Steps to Six Figures in Seven Years 
• Making the Most of Your Most Valuable Financial Asset 
• Five Financial No-Brainers
• Seven Steps to Get Out of Debt 
• Make and Save Money by Getting Rid of Your Junk 
• How to Ask for a Raise
• The Ten Worst Money Mistakes Anyone Can Make

Top 10 FMF Guest Posts of 2009

As regular readers know, I feature a lot of guest posts throughout a year. I like to get a variety of perspectives on money issues, hear from others in different life stages than I'm in, and let readers get money thoughts from someone other than me. In fact, I have so many guest posts that I even have my own policy for them (let me know if you're interested in writing a guest post -- I could use some coming up). So I thought it would be fun for me to highlight what I consider to be the top 10 guest posts here from 2009. Here they are in countdown order, along with key quotes from each:

#10 - Best Ways to Access Your Cash Out of the Country - "While you cannot control the value of the US dollar, you can minimize the damage by finding the best ways to access your cash out of the country."

#9 - Simplicity Can Streamline Your Budget - "Remember that keeping your budget as simple and accessible as possible will benefit your financial health in the long run."

#8 - Life Insurance Reality Check – Do you have enough? - "Among those who already have life insurance, a vast majority does not have enough coverage. Could you be one of them?"

#7 - The 5 Stages of Investing Enlightenment - "Have you experienced the stages to becoming an ideal investor? It is not difficult to learn the tricks of the trade if you put forth diligent effort. For many people, it follows a common pattern of 5 stages."

#6 - Who Are Kid's Gifts Really For? - "Your daughter is two-years old and does not have the capacity to decide what she would like to do with her gifts, at least the ones with monetary value. She will most likely figure out what to do with the toys and clothes! So you have a few options."

#5 - 2010 Roth Conversion: Factors to Consider Before Making a Decision - "As of January 1, 2010, all investors will be eligible to convert funds from a traditional IRA or 401(k) to a Roth IRA, regardless of income level. While this change will present some attractive options for certain investors, people should weigh the costs and the benefits unique to their own specific financial plans and tax situation before deciding if a Roth IRA conversion is right for them."

#4 - 12 Critical Things Your Family Needs to Know - "So how do you make sure that if something happens to you, loved ones left behind won't have to spend hour after hour searching for critical documents or information while agonizing or fighting over what your wishes might have been?"

#3 - Life or Debt? 41 Financial Calculators for Major Life Decisions - "Making major life changes before you're financially ready can set you back dramatically on other goals you may have, or even make them unreachable. Use the calculators below to check your financial preparedness for major life decisions and events."

#2 - Trying to Earn More Money? Stop Wasting Your Time - "Some simple techniques that Nicole and I came up with to focus her on earning more money."

#1 - Nine Tips on How to Advance in Your Career - "Some tips on how to advance your career based on my personal experience."

Top 10 FMF Topics of 2009

I've already listed my top posts of 2009, and now I thought it would be fun to look at the top ten categories I posted in last year.

Here they are in countdown order along with the number of times I posted on them in 2009 (FYI, I had over 1,254 posts last year):

#10 -- Spend Less than You Earn (34 posts) - This category is always a favorite of mine. In 2009, posts in this area were mostly spent on highlighting those making a ton of money but going broke as well as those making very little who are doing pretty well.

#9 -- Debt (36 posts) - I was surprised to see this category on the list since I don't recall writing much about debt. It's not an on-going issue in my life (I've been debt free for over a decade now), so the subject doesn't come up all that much.

#8 -- Retirement (38 posts) - Another surprise since I don't think I talk much about this subject either. Highlights were what I plan to do during retirement and a calculation of how long it will be before I retire.

#7 -- The Bible and Money (52 posts) - Every single Sunday I write on this topic (or have a guest post on it.) It's still one of my favorites after all these years.

#6 -- Consumer News (53 posts) - This is my general "be on the lookout as a consumer" sort of category. There was a lot of activity of this type in 2009 including issues related to extended warranties, buying a new furnace and air conditioner, and you don't always get what you pay for. Included in this category are my personal habits as a consumer. In 2009 this meant that I detailed the fact that we had developed a big shopping list and actually got cable TV and a new television.

#5 -- Investing (59 posts) - This topic will probably always be a big part of Free Money Finance since it's such an ever-present subject in my finances. I especially liked my post on the one variable that most impacts your investment returns. I'm also thankful that I stayed in the market this year and kept on investing during the tough times.

#4 -- Making Money (61 posts) - I started 2009 off with a bang by listing 20 ways to make more money. But my favorite post in this category was How to Make Money as a Soccer Referee (FYI, I'm now studying for my next test to be upgraded as a ref -- and earn twice as much per game!)

#3 -- Help a Reader (91 posts) - This is always one of my favorite categories for two reasons: 1. It helps people with real needs -- something FMF has always been about and 2. The answers come from the readers, not me. You all have so much wisdom that I LOVE reading the comments to these posts!

#2 -- Saving Money (114 posts) - The king is dead! After almost five years of blogging, "saving money" finally was not the most posted about category here at FMF. I guess it's because once you share a couple thousand ways to save money, you've pretty much exhausted the list. :-) That said, the topic was still #2.

#1 -- Career (147 posts) - I spent a lot of time this year talking about your biggest financial asset (your career) and how to make the most of it. I guess the recession has made careers more top-of-mind -- that's probably why I wrote so much about them. In addition, I shared the details of all the jobs I've ever had in a series that I loved to write and had great comments on.

In case you're interested, I had 1,700 posts in 2008 (so I was down substantially in 2009 -- but I still churned out over three posts per day) and the top post categories for 2008 were:

#10 --Taxes (70 posts)
#9 -- Giveaway (73 posts)
#8 -- Consumer News (75 posts)
#7 -- Making Money (80 posts)
#6 -- Real Estate (83 posts)
#5 -- Spend Less than You Earn (88 posts)
#4 -- Investing (104 posts)
#3 -- Help a Reader (122 posts)
#2 -- Career (133 posts)
#1 -- Saving Money (240 posts)

BTW, I eliminated the giveaway category from this year's competition since it's mostly for announcement of winners. My major giveaways have been through my giveaway e-newsletter.

Top 10 Free Money Finance Posts of 2009

Last year I listed what I thought were my best posts of 2008. I'm continuing that tradition now with what I feel were my top 10 posts of 2009 (listed in countdown order) out of the over 1,100 posts here last year:

#10 - How to Make Money as a Soccer Referee - I love sharing unusual ideas for making money, I love telling personal stories, and I love soccer. This post contains all three of these, so how could I not rank it high?

#9 - How to Buy a New Furnace and Air Conditioner - Good, practical story of how to buy and save on a new furnace and air conditioner.

#8 - How to Make the Most of a College Degree - Your biggest financial asset is your career and most of our careers get kicked off by attending college. This post tells how to get a head start by paying less and getting more from your college degree.

#7 - What to Do When You Don't Get a Job Offer - When you're turned down for a job you really wanted, this post tells how you should respond. Apply these principles, and you may get hired anyway.

#6 - Interview Lessons from a Video Contest - Visual evidence and commentary on what does and doesn't work in an interview.

#5 - How to Market Yourself into a Job - If you want a job, you need to market the product (you/your skills) in a way that delivers the employer wants. In this post, I list the two things most employers want and how to market yourself accordingly.

#4 - 20 Ways to Make More Money - Last February I listed 20 ways to make more money (one every weekday) and this is the summary post. I like it because it offers several ideas for doing something we all like -- making more money!!!

#3 - My Jobs, The Summary - This is a summary post of a series I really, really loved. It detailed every job I've ever held, what happened in that job, and what I learned from it. It also was very personal and had lots of great stories (I can't believe I've been through all of that!) Good stuff all the way around!

#2 - Five Steps to Six Figures in Seven Years - A tried-and-true approach to reaching the upper-echelon of earners in a relatively short period of time.

#1 - The Best Way to Maximize Your Investment Return - This post compares the three factors that impact the performance of an investment -- amount saved, return rate, and time -- and details which one is surprisingly the most important.

There were some other posts that I felt were worth mentioning again, but just missed cracking the top ten. They are:

• How to Respond to Every Job Offer You Receive - Lists and explains the five steps you should take after receiving ANY job offer.

• What It Means to Be Self-Insured - I've mentioned before that once I get a high enough net worth I will be self-insured. Some readers asked what that meant and this post is the answer.

• How You Grow Your Income by 10% or More a Year - Income gains are often erratic and this post illustrates that fact.

• Personal Finance Success is Rather Simple, but Not Easy - A fact we see illustrated again and again. It's why the basics of growing your net worth are simple to understand and yet most people are not making decent financial progress (lack of willpower).

• Extreme Saving Tips for Sample Eating at Costco - Ha! I HAD to include this one simply because it irked so many people. ;-)

• Five Key Questions You'll Want Answered Before You Take a Job - Do NOT take a job without having these five questions answered to your satisfaction.

Classic FMF, Bible Edition

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

I'm on my last day of vacation today, and FMF is taking a break with me. I've been highlighting my most-often-referred-to posts once each day while I'm gone as a refresher before we get back to our regular programming next week. Here is today's group -- with a "Bible" feel since it's Sunday:

• Five Biblical Principles about Borrowing and Debt - My first-ever post on "The Bible and Money" is still a good one IMO. Looking at Scripture, I don't think the Bible prohibits debt, but it certainly warns against it. This post tells why.

• The Proper Perspective - Covers the two keys to Biblical finances: 1. God owns everything and 2. Though God owns it all, He entrusts each of us with part of it.  We are to manage our portion for Him and will be held accountable for our actions.

• The Gift is Acceptable According to What One Has - So many times people think, "My gift is meaningless because it isn't very much." According to the Bible, this is not true and this post tells why.

That's it for today. Hope you enjoyed looking back at some FMF Bible classics. I'll be back from vacation tomorrow with a whole host of new posts.

Classic FMF, Part 3

I'm on my last vacation of the summer over the next few days and FMF will be taking a break with me. However, I thought I would highlight my most-often-referred-to posts, "classic Free Money Finance" if you prefer, once each day while I'm gone as a refresher before we get back to our regular programming next week. Here is today's group:

• Why I Use a CPA to Do My Taxes - I'm an advocate of DIY personal finances, but even I call in the "experts" when I'm over my head financially. Case in point: I use a CPA to do my taxes. The reasons why are detailed in this post.

• Experience versus Education: Which Counts More in Career Success? - A key question in managing your greatest asset (your career) that a lot of people get wrong (IMO.) Check it out and see if you agree.

• The 10 Most-Hated Money Saving Tips - Two things are sure with this post: 1. You'll probably hate many, if not all, of the tips and 2. if you apply them, they'll save you a boatload of money.

That's it for today. Hope you enjoyed looking back at some FMF classics.

Classic FMF, Part 2

I'm on my last vacation of the summer over the next few days and FMF will be taking a break with me. However, I thought I would highlight my most-often-referred-to posts, "classic Free Money Finance" if you prefer, once each day while I'm gone as a refresher before we get back to our regular programming next week. Here is today's group:

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 1, Start Thy Purse to Fattening - From one of the best personal financial books ever published (IMO), this seven part-series is full of simple and practical tips for growing your net worth.

• The 10 Best Money Moves You Can Make - For those of you who simply want to know the top personal finance "to-dos", this post delivers.

• Why I Like Index Funds, Part 3 - Those of your who have been here for more than 10 seconds know that I invest using index funds. This post is my most recent piece on why I like them so much (I think I'm due for an update.)

That's it for today. Come back tomorrow and see three more classics.

Classic FMF, Part 1

I'm on my last vacation of the summer over the next few days and FMF will be taking a break with me. However, I thought I would highlight my most-often-referred to posts, "classic Free Money Finance" if you prefer, once each day while I'm gone as a refresher before we get back to our regular programming next week. Here is today's group:

• How to Get Rich in Three Easy Steps - When it's boiled down, success in personal finance is pretty easy. If you take a few, simple steps, you'll have a net worth far higher than that of most people. That's what I love about this post -- it's short, simple, and very effective at growing your net worth.

• Maximizing Your Greatest Asset: Why Your Career is So Important - I've said about a ba-zillion times that your career is your most important asset. Managing it for maximum income is one of the foundational pieces of good personal finance management IMO. As such, this piece (and all the others like it here at FMF) are key to success in growing your net worth.

• My Best Financial Advice: Spend Less than You Earn - Many people hate this post or line of thinking because they say it's too simplistic or obvious. Maybe, but something can be both simple and obvious and still be important. In addition, we've seen time and again that a higher income alone is not the answer -- that any amount of income can be spent completely if you don't spend less than you earn. That's why I stick with this piece of advice as my best tip over all the others.

That's it for today. Come back tomorrow and see three more classics.

Top 2008 FMF Posts in One Spot

For those of you interested, here's a list of my top posts for 2008 in one spot:

• Top Posts in 2008, Posts 1-5

• Top Posts in 2008, Posts 6-10

• Top Posts in 2008, Posts 11-17 

Top Posts in 2008, Posts 1-5

Here is the last set in my series of Free Money Finance's top posts for 2008. This time it's posts #1 through #5, in countdown format, along with my reasons for including each post. Enjoy!

• #5 -- How to Ask for a Raise -- A key part of financial success is making a good income. And one way to make sure your income is as high as possible is to ask for a raise when the conditions call for it. This post tells how to do this.

• #4 -- Six Times It's Easy to Ask for a Discount -- Most people want to save money and they want it to be easy to do so. This post combines those two wishes.

• #3 -- How to Make Money and Save Money -- Yeah, it's hard to rank a compilation post this high, but as a resource for how to make and save more, it's hard to beat this piece.

• #2 -- How to Demonstrate that You Deserve a Raise -- This is KEY to actually getting a raise. Most people want a raise but haven't demonstrated that they deserve one. It doesn't work that way -- you first have to show why you should get a raise and then you get one. This post tells how.

• #1 -- 11 Great Ways to Earn More Money -- Who doesn't want to earn more money? That's why this post is #1 for the year -- it's one that everyone likes and can use. It also "gave birth" to a follow-up post: 11 More Great Ways to Earn More Money. Also to note, one of the suggested ways to earn more is to turn your hobby into an income. This year I posted several examples of people who have done this, and I thought you'd like to see them as well. For details, visit An Example of How to Turn a Hobby into an Income, How to Make Money Tutoring: Real-Life Story, How to Turn a Photography Hobby into a Business, and An Example of How a Hobby Can Turn into a Big Income. 

That's it for my top posts of 2008! Hope you enjoyed them.

Top 10 FMF Topics of 2008

I've already listed my top posts of 2008, and now I thought it would be fun to look at the top ten categories I posted in last year. Here they are in countdown order along with the number of times I posted on them in 2008 (FYI, I had over 1,700 posts last year):

• #10 --Taxes (70 posts) -- One of the biggest expenses we all have, taxes was again a frequently discussed topic here at FMF (spurred on by the presidential election.) My favorite post in this category is When to Hire a Tax Professional.

• #9 -- Giveaway (73 posts) -- Lots of stuff given away here last year. I always like to give away free stuff to readers, and 2009 should be no different. Stay tuned for lots of giveaways this year.

• #8 -- Consumer News (75 posts) -- This is kind of a catch-all category for "I found this today on the web and it doesn't fit anywhere else so I'm putting it in this category." For example, my series of posts on the foreclosures/problems with Extreme Makeover homes usually go here.

• #7 -- Making Money (80 posts) -- Everyone likes to make money, right? So it's no wonder I wrote about this topic quite often. My favorite post in this category is 11 Great Ways to Earn More Money.

• #6 -- Real Estate (83 posts) -- This category saw so much action because I was very close to buying a home this year. Since we're still looking, 2009 will probably see a lot of action in this category.

• #5 -- Spend Less than You Earn (88 posts) -- Always a favorite topic of mine since it's my best piece of financial advice. I'm especially fond of All You Need To Make Ends Meet: Just a Little More since it sums up the problems so many people have with money.

• #4 -- Investing (104 posts) -- I was a bit surprised by this one since I didn't think I talked that much about investing this year. Then again, I posted a ton about index funds and the stock market meltdown, and those two issues alone probably accounted for 50 posts at least.

• #3 -- Help a Reader (122 posts) -- This is the category I'm most proud of because 1) it helps people (a key goal of Free Money Finance) and 2) it demonstrates the great knowledge that FMF readers possess. I rarely add my own comments on these posts, preferring instead to let readers help. And boy did you! Thanks so much to those who took the time and effort to help out strangers in need by leaving solid advice.

• #2 -- Career (133 posts) -- Making money is a key to growing your net worth and there's no better way to make more money than by managing your career. No wonder I wrote about it so much in 2008. I especially like How to Demonstrate that You Deserve a Raise because I think it's solid, practical advice (it's certainly helped out my career/earning potential.)

• #1 -- Saving Money (240 posts) -- Anyone surprised by this one? Not me. Saving money is a vital (and often easy) part of growing your net worth, so it's not a shocker that I talk about it so much. What was a bit of a surprise is how much I did post on this versus the other topics. I wrote almost twice as much about this category as I did category #2 and I almost posted as much on this category as I did in categories #7 through #10 combined! ;-)

Top Posts in 2008, Posts 6-10

Here is the next set in my series of Free Money Finance's top posts for 2008. This time it's posts #6 through #10, in countdown format, along with may reasons for including each post. Enjoy!

• #10 -- Small Cities Better at Growing Net Worth -- I know many people don't like it when I bring up the fact that some places are cheaper to live in than others, but I think it's a critical personal finance issue which should be considered. As such, this post cracks the top ten.

• #9 -- What I Learned from Almost Buying a House -- I was so very close to buying a new home this year. We ended up calling it off, but we did learn a lot in the process.

• #8 -- I Apply My Own Advice -- I think it's important for FMF readers to know that I actually do what I say I'm doing and that it's been successful for me so far (based on my net worth versus the stated averages.) I'm telling you what's worked for me based on 20 years of managing my personal finances -- not dishing out advice that I hope will work as I figure out what personal finances are all about.

• #7 -- How to Have Half a Million Dollars at Retirement by Controlling Wedding Costs -- A very provocative piece. With so much being spent on weddings these days, imagine how much better off people would be if they pocketed most of that money instead.

• #6 -- All You Need To Make Ends Meet: Just a Little More -- Unfortunately, most people think all they need to balance their budget is to earn a bit more. In reality, the more they earn, the more they spend. What they really need is a bit of discipline.

That's it for today. Come back in a few days to see the top five posts of 2008.

Top Posts in 2008, Posts 11-17

Well, 2008 is over. I posted over 1,700 pieces last year and I thought it would be fun to look at what I consider to be the best of the best. These aren't the posts that necessarily got the most traffic, comments, etc., but they are the articles that I feel were my best for the year (because of their topics, insight, quality of the comments, and various other factors.) I had started by wanting to list the "top 10" posts, but after reviewing all 1,700+ posts, I found 17 pieces that I felt were excellent and worthy of review. I'll list them in countdown order over three different posts, including a bit of explanation from me on why I think they deserve being in the top posts for 2008. Hope you enjoy them.

• #17 -- How I Easily Improved My Investment Returns Using Vanguard Admiral Shares -- A simple tip, but one that can earn you a bundle if applied over a 30 to 40-year investment horizon.

• #16 -- Tricks of the Trade: An Insider's Look at Saving Money at Grocery Stores -- I'm a sucker for "insider tips" and this is the first of three such posts in this section. Good stuff!

• #15 -- How I've Grown My Income -- I think it's important for FMF readers to know that I practice what I preach, and this article shows I've done so on the "earning" side of my finances.

• #14 -- When to Hire a Tax Professional -- Good, solid, basic advice.

• #13 -- Why You Should Take Practice Interviews -- Practicing interview questions before you have an interview is VITAL to your success -- as highlighted in this post.

• #12 -- A Salesman Tells How to Negotiate for the Best Price on Electronics -- Another insider piece. Hopefully I can use it this year as I buy a new TV.

• #11 -- A Real-Life Example of How to Save $1,300 in Less than Two Hours by Shopping Around for Car Insurance -- Final insider piece. It ranks as the best because 1) everyone can take advantage of it, 2) the savings can be huge, and 3) it doesn't take a lot of time and effort to do.

That's it for today. Come back in a few days to see posts #6 through #10.

Best of Free Money Finance: The College Pay-Off

I particularly like This Year's Graduate's Destined to Earn Millions in Their Lifetimes; Average Graduate Can Earn $25 Million if Career is Managed Correctly because it shows the impact a college education can have on a person's finances. We've all read stories about how expensive college is and how much debt people are racking up because of it, yet this piece gives the numbers on how much more people are making because of college. And the numbers are HUGE! That's why I think it's among the best here at Free Money Finance.

Vacation

I'll be back from vacation tomorrow and going full speed ahead as usual then. For today, please enjoy these posts. All of them have been labeled as among the best of Free Money Finance:

• My Best Financial Advice

• Why I Use a CPA to Do My Taxes

• Why I Like Index Funds, Part 3

• How to Get Rich in Three Easy Steps

• Poverty to Prosperity

Best of Free Money Finance: The 10 Best Money Moves You Can Make

My post titled The 10 Best Money Moves You Can Make is one of the best I've written, IMO. It's really a simple summary of most of my personal finance thoughts, suggestions, etc. encapsulated into one post. That's why I love it! ;-)

Best of Free Money Finance: Maximizing Your Greatest Asset: Why Your Career is So Important

I think Maximizing Your Greatest Asset: Why Your Career is So Important is one of my best posts ever because it highlights the enormous impact your career can have on your personal finances. Using simple calculations, I show how maximizing your career income can mean millions and millions of dollars to you throughout a career -- much more than if you simply put it on auto-pilot and hope for the best. It's one of the top few fundamental issues that can make a gigantic impact on whether you're rich or just barely getting by.

Best of Free Money Finance: Why I Use a CPA to Do My Taxes

I think Why I Use a CPA to Do My Taxes is one of my best posts ever because it lays out the specific reasons some people should get expert tax advice. I'm usually more of a do-it-yourselfer when it comes to personal finances, but this is one area where I leave it to professionals, and this post tells why. It's often one of my most referred-to posts -- especially during tax time.

Best of Free Money Finance: Why I Like Index Funds, Part 3

Though this post isn't very old, Why I Like Index Funds, Part 3 is already one of my favorites here. Why? Because it's a solid compilation of all the reasons index funds are great investments. Sure, it's likely that there will be part 4, part 5, and so on, but for now this is the king of the hill for me when it comes to my thoughts on "how to invest."

Best of Free Money Finance: How to Get Rich in Three Easy Steps

I think How to Get Rich in Three Easy Steps is one of the best posts I've ever written here at Free Money Finance. Why? It's simple, easy to implement, and lists steps that anyone can take to significantly improve their net worth. That's it -- not much glamour, but very effective. That's why I like How to Get Rich in Three Easy Steps and think it's one of my best.

Best of Free Money Finance: Move, Save Money, Become a Multiple Millionaire -- All in One Step

Many people hate my post Move, Save Money, Become a Multiple Millionaire -- All in One Step, but I think it's one of the best I've written here. People dislike it because they don't want to move away from family, friends, a job, and the like -- something I can certainly understand. And, after all, it's their choice how to spend their money. That said, there is a definite financial impact associated with where you live and it can be very, very meaningful to your net worth. Move, Save Money, Become a Multiple Millionaire -- All in One Step points this out (along with numbers) and shows how much where you live impacts your financial well-being. That's why I think it's one of my best posts.

Best of Free Money Finance: My Best Financial Advice

My Best Financial Advice: Spend Less than You Earn is one of my favorite posts of all time for a couple of reasons.

First of all, I like it because it gets to the heart of what I believe leads to financial success. Spending less than you earn is the foundation of growing your net worth. If you can do it, you'll be wealthy (as long as you're disciplined in other areas too). If you can't do it, you're doomed to financial failure.

Second, I like it because it's a creative post -- each letter in "spend less than you earn" is a link to a different post on the subject. Cute, huh? ;-)

Best of Free Money Finance: What Do You Splurge On?

What Do You Splurge On? is one of my favorite posts of all time because it reverses the normal flow of conversation here. Instead of dealing with SAVING money, we're talking about SPENDING money. Now who can't have fun with that???!!!!! ;-)

I'm working on a very big splurge that I'll be sharing with all of you if and when it comes about (anyone want to guess what I'm planning?) but until then, check out What Do You Splurge On? -- it's one of my favorites here.

Best of Free Money Finance: Poverty to Prosperity

I simply love the piece Poverty to Prosperity because it includes two key points I've come to believe about personal finances:

1. It doesn't matter where you start out financially...

2. ...if you apply good principles and take it step by step, you will end up well-off. You may not be as wealthy as Bill Gates, but you'll be much, much better off than you would have been if you'd done nothing.

That's why I think it's one of the best pieces I've ever written. For those of you who haven't read it, stop by, check it out, and let me know what you think.

Best of Free Money Finance: Even a Small Leak Can Empty Your Money Bucket Quickly

Here's another article pulled out of the archives that I consider one of my best. It's titled Even a Small Leak Can Empty Your Money Bucket Quickly and the reason I like it is that it illustrates a simple but true principle -- if you don't control your spending and watch where your money goes, a little bit lost here, a little lost there and so on can add up to big, big money.

This piece highlights ATM fees -- which seem ridiculous to me (people paying to get their own money) -- but the example holds true with any sort of spending that is out of control. It could be entertainment expenses, eating out, picking up a little something here and there, whatever. If you have a consistent, leak in your finances, no matter how small, you need to plug it up or it can really cause you trouble down the road.

That's the message of Even a Small Leak Can Empty Your Money Bucket Quickly and the reason I like it so much.

Best of Free Money Finance: The Richest Man in Babylon: Seven Cures for a Lean Purse

Here's a series that's definitely worth reviewing again and certainly worth being named one of the Best of Free Money Finance.

I ran this seven-part series last April and May. It's from the great book The Richest Man in Babylon and is just full of simple and practical but powerful thoughts on how to make the most of your money. Here are the links to each of the posts:

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 1, Start Thy Purse to Fattening

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 2, Control Thy Expenditures

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 3, Make Thy Gold Multiply

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 4, Guard Thy Treasures from Loss

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 5, Make of Thy Dwelling a Profitable Investment

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 6, Insure a Future Income

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 7, Increase Thy Ability to Earn

Top Five 2006 Money Topics on Free Money Finance

Last year I did a countdown of my top money tips of 2005. I was going to skip doing one for 2006, but was then enticed by ProBlogger's latest group writing project. As such, I give you the top five topics discussed here on Free Money Finance in 2006 (in countdown order):

#5 The Bible and Money

This was my first full year of writing on this subject (every Sunday) and it has developed quite a following. As you can imagine, the issue of religion and money is a "hot" one, and my post on this subject each week is one of my most commented on every single week. A few posts from this past year that I especially like are:

• Pay Yourself Second

• Does God Want You To Be Rich?

• Tithe or Pay Off Debt -- Which One Should You Do First?

#4 Investing

I write about this topic every week, though it's not about what most people imagine. I tend to focus on simple, easy-to-understand and apply methods of investing that earn good results -- like investing in index funds. I certainly don't cover "hot stock tips" and the like. A few of my favorites this past year:

• Why I Like Index Funds (Updated)

• Costs Matter If You Want to Maximize Investment Returns

• Some People Think a 100% Return on Your Investment Isn't Enough

#3 Career

This was a hot topic for the first few months of 2006 where I wrote about it almost every day. Since then, I hit it once a week or so, but it's still extremely important. As I always say: "Your career is your most valuable financial asset, offering you many financial benefits. You can make the most of it by getting a college degree and managing your career to its full potential. Doing this well can earn you millions of dollars in extra income throughout your lifetime." A few of my favorite posts from this category include:

• More Education Equals More Pay

• What is a Job You Love Worth?

• How to Know When It's Time to Quit Your Job

#2 Spend Less Than You Earn

Probably my favorite topic of all time (certainly the best piece of advice I could give anyone), this category will likely always be in my top five as long as I'm writing Free Money Finance. A few top posts of note:

• Spending Less Versus Earning More: Which is More Important to Financial Success?

• Secrets of the Wealthy: Five Lessons from the Rich

• It's Not What You Make, It's What You Spend, Part 437

#1 Saving Money

Even I didn't realize how many posts I'd written on saving money until I complied them all for 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money, so there's no doubt that it's been my "topic of the year." Some saving money posts from 2006 for your review:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Save 30% or More on Antiques and Collectibles at Estate Sales

• Smoking is Costing You a Fortune

Best of Free Money Finance

A few months ago I wrote several posts that listed what I considered to be my best posts on certain topics up to that time. I listed the topics/posts individually, but never did one big, collective post on them all, so here they are, finally, all together:

• Best of Free Money Finance: Investment Posts

• Best of Free Money Finance: Retirement Posts

• Best of Free Money Finance: Debt Posts

• Best of Free Money Finance: Credit Card Posts

• Best of Free Money Finance: Career Posts

• Best of Free Money Finance: College and Education Posts

• Best of Free Money Finance: Real Estate Posts

• Best of Free Money Finance: Tax Posts

• Best of Free Money Finance: Insurance Posts

The Best Place to Manage Your Retirement Income

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best place to manage your retirement income:

The Best Place to Manage Your Retirement Income: Fidelity

Whatever your age, start with Fidelity's Retirement Income Planner to estimate your retirement income and expenses and to plan your investment strategy. It's free to anyone by phone (800-343-3548) or in person, and it's available to Fidelity customers online. Once you are retired, open a Fidelity Income Management Account to handle your cash flow. You can consolidate your sources of income, get investment advice and create a regular "paycheck."

"Hello? Is this Kiplinger's? Yes, I'm from Fidelity and I'd like to place an ad for my retirement services, but I'd like to disguise it as a recommendation from you. Can you make this happen? Oh, yeah, and can you call us 'the best'?"

I'm not buying this one. I've had two retirement plans with Fidelity in my work career (I have one now -- my 401k) and I've also had several accounts with Vanguard. Without any reservations I can say that I prefer Vanguard because of their low costs and great customer service.

And no, Vanguard didn't pay me to do a commercial for them, though I wouldn't mind having them as an advertiser here. It would be one company I could recommend whole-heartedly.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Most Tax-Friendly State for Retirees

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the most tax-friendly state for retirees:

The Most Tax-Friendly State for Retirees: Delaware

People tend to focus on states with no income tax, such as Florida, Texas and Nevada. But for many retirees the biggest burden is property taxes and sales tax. That's why Delaware is a first-class bargain. There's no state sales tax, property taxes are relatively low, and homeowners 65 and older qualify for a tax credit on half of their school taxes, up to $500. Delaware does have a maximum state income tax of 5.95%, but Social Security benefits are exempt, and so is up to $12,500 of investment and pension income for residents 60 and older.

Yeah, but you have to live in Delaware. ;-)

Ok, all of you readers who live in Delaware -- don't write me. I was only kidding.

If you want to see where your state compares, check out this map that lists tax burdens across the U.S. Some (warmer) places with low tax burdens: Tennessee, Alabama, and South Carolina.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

Free Money Finance Top 10 Most Hated Posts/Themes: #1 The Cost of Pets

Here's my most-hated theme of all time: the cost of pets.

As many of you know, I have a whole category devoted to the cost of pets. Some of the posts that make this category a loser in most people's minds are as follows:

• How Much Would You be Willing to Spend to Save Your Pet's Life?

• Calculating the True Cost of a Pet

• Comments: Sell Your House to Save Your Pet's Life

• Annual Pet Costs and A Money Saving Tip (Get a Cat)

• Annual Pet Costs and A Money Saving Tip (Get a Bird)

• Cost of Pets According to the SPCA

• Annual Costs of Pets

• Are Pets Really that Expensive?

• The True Cost of a Pet Dog

• Cost of a Dog = Cost of a Car

• You Choose -- Pets or College for the Kids

I think the reason that people don't like this topic is that most pet owners consider their pets part of the family (similar to a child) and to try and put a monetary value on the pet seems reprehensible to them. I can sympathize with this position a bit. Others try to argue that pets aren't really that expensive -- despite facts from pro-pet organizations like the SPCA. I think these people are simply in denial.

Of course it's your money and you can spend it on whatever you like. But here are a few thoughts you should consider as you think about this issue:

1. Pets are an expense. My best guess is that a medium-sized dog costs $1,000 per year on average. That's a good chunk of change you're committing to over 10-15 years when you pick up a puppy.

2. Considering the issue of the cost of pets isn't a slam on Rover and Fluffy -- it's simply a recognition that there are expenses that go along with them.

3. I've had pets all my life and I love them. So don't get mad at me when I bring up the issue -- I'm just the messenger. ;-)

Free Money Finance Top 10 Most Hated Posts/Themes: #2 Moving to Save Money

Now we're getting to the topics people REALLY hate! ;-)

Virtually no one likes my advice regarding saving money by moving. For examples of what I mean, see these posts:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Yes, Moving to a Cheaper Cost-of-Living City Can Make You Rich

• How Moving to a Cheaper Cost-of-Living City Can Make You Rich

• 8 Cheap Places You'd Want to Live (And How to Find More)

• Top Jobs: Where the 6-Figure Jobs Are

Now let me make a few comments that will hopefully make my position a bit clearer as well as make this topic a bit less hated:

1. It's your life and your money. If you want to spend it living in an expensive city, that's your choice.

2. It's a LOT more expensive to live in some cities than others -- there's no way to argue with the math. And, yes, the salaries may be higher in these cities, but they are no where near being high enough to make up for the big cost-of-living differences. (If you don't believe me, read through my posts listed above.)

3. There are other, non-financial reasons to live in one city rather than another. Maybe you want to be able to buy a cheeseburger at 3 am. Maybe you like the "culture." Maybe your family lives there. These all may be worth something that you can put a dollar amount on. And whether or not you've thought about it, that's what you're doing -- saying it's worth paying more to get these benefits of living in a certain city.

4. You may "like" living in one area of the country or one city and think you won't like living elsewhere. Then again, maybe you will like it elsewhere. I've lived in rural Iowa, Indianapolis, Cincinnati, Washington DC, Pittsburgh, Nashville, and Grand Rapids.  They've all been different, but I've liked living in each one (for different reasons.) I think when people say they couldn't live outside a certain city that the real story (for most people at least) is that they really just haven't tried very many alternatives.

5. In the end, it's just an idea -- just like all my other posts. You can take it or leave it. However, if you do open your mind a bit to the possibility and if you run the numbers, you'll see how much you can truly save by moving to a less expensive city.

The Best Place for IRA Rollovers

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best place for IRA rollovers:

The Best Place for IRA Rollovers: T. Rowe Price

Whether you have decades to go before retirement or just a few years, T. Rowe Price's Advisory Planning Services will provide personalized financial advice if you roll over money from a 401(k) or from another IRA. The new service charges a one-time fee of $250, which includes annual reviews. The fee is reimbursed if you roll over at least $100,000.

I'm going to have to disagree with them on this one. First of all, many readers of this blog won't need (and won't want to pay for) the Advisory Planning Services that seem to be the key to their recommendation here. It sounds as if T. Rowe Price paid Kiplinger's for this mini-commercial. Strange. Second, I prefer Vanguard because of their low costs and great customer service. I've rolled over a few IRAs with them and they are great to work with.

And no, Vanguard didn't pay me to do a commercial for them. ;-)

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

Free Money Finance Top 10 Most Hated Posts/Themes: #3 MND Formula for Net Worth

My #3 most hated theme here at Free Money Finance is the net worth formula from the Millionaire Next Door that determines whether or not your net worth is as high as it should be. Here are a few of the select comments about this lovely post:

I have read this book, I'm wondering if the formula must be adjusted, however for the earlier years in your life... For example, mid to early 20's. Most people in their twenties still have no positive net worth, when factoring in a car payment, student loans, and especially the newly found MORTGAGE on the house they buy. I, for example, have a negative net worth of around 180,000 - yet I am supposed to have a net worth positive of around 100,000. I don't think I've even made 100,000 total in my entire life yet!... There should be a way to adjust the formula for the younger years in life, when debt accumulation happens due to schooling and purchasing a home!

And as if that weren't enough:

I have to agree that this "rule of thumb" is more offbase than most "rules of thumb," especially for those towards the beginning or end of their careers...

And more:

I have to agree with the folks who question the validity of the rule of thumb for people early in their careers. It's especially problematic for young professionals. Take a young lawyer, for example. Three years out of law school, she might make $150K/year, at around age 30. Because she spent time in law school, she probably had no net worth built up when she started her job. But according to the rule of thumb, her net worth should be $450,000, or three times her current salary. That's just not realistic. The rule of thumb may only work once you've hit 35, or been working for some number of years (like 7-10).

And more:

The book formula is a poor rule--unless it was designed to use a biased rule to 'shock' people into saving.

Using misleading information to cause (scare) people into behavioral changes because one thinks s/he knows what is best for all people is risky as one solution does not fit everyone's unique circumstances. Even if that behavior is considered most reasonably to be a "good" one.

Makes me wonder what else from the book is misleading.

And on and on. Apparently, it's not a favorite of most people. ;-)

However, there is good news on the net worth calculation front. I've recently posted How to Compute Your Net Worth and Check Your Financial Progress and How to Compute Your Net Worth, How High Your Net Worth Should Be, and Be Sure to Do It Once A Year which have both received positive comments on the net worth formulas they include.

The Best Low-Cost IRA

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best low-cost IRA:

The Best Low-Cost IRA: Scottrade

With one of the lowest minimum investments around -- $500 -- and no set-up fees or annual maintenance fee, Scottrade is a great place to open an IRA for yourself or a custodial IRA for your child. As long as children have earned income -- from flipping hamburgers, mowing lawns or babysitting -- they can contribute up to $4,000 a year or up to their total earnings, whichever is less.

A few thoughts on this:

1. I've never used Scottrade, but I've heard good things about them.

2. I prefer Vanguard, but I believe their minimums are a bit higher, so that's probably why Kiplinger's goes with Scottrade.

3. It's a great idea to set up an IRA for your child as early as possible -- doing so could make them wealthy when they retire.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Best Charity-Rating Site

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best charity-rating site:

The Best Charity-Rating Site: Charity Navigator

Look up one of the more than 5,000 charities on this site and you'll find a breakdown by percentage of how much an organization spends on program costs, administrative expenses and fund-raising. Charities that spend less than one-third of their total budget to carry out their mission get a zero for efficiency. Charity Navigator also rates an organization's donor privacy policy, compares the charity's overall efficiency rating with its peers, and gives an example of an executive-level salary.

I LOVE Charity Navigator and use it quite frequently to do research on various charities I'm thinking of giving to. Here are some of my favorite four-star charities:

• Samaritan's Purse

• Compassion International

• World Vision

The Best All-Around Retirement Account

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best all-around retirement account:

The Best All-Around Retirement Account: Roth IRA

A Roth IRA lets you stockpile tax-free savings for retirement with plenty of escape hatches for other financial goals, such as paying for college or buying a first home. You can contribute up to $4,000 in 2006 ($5,000 if you're 50 or older) as long as your income doesn't exceed $110,000 if you're single or $160,000 if you're married. And you can withdraw your contributions (but not your earnings) tax- and penalty-free at any time.

Ok, I'm going to get a lot of flack for this, but I wouldn't rate the Roth as #1 for people who have access to a 401k, especially for those who have a 401k where the employer matches part of the employee's contribution. The 401k gives you a tax deduction this year (in that it lowers your taxable earnings), gives you an instant, strong return on your investment (when the employer matches), allows you to save much more than the Roth IRA, and isn't subject to the income limits that the Roth IRA is. Yes, the Roth allows for tax-free withdrawals, but I don't think that outweighs the 401k's benefits. As such, I'd rate the 401k the best all-around retirement account.

That said, my recommended strategy for people who have a 401k and can contribute to a Roth IRA is as follows:

1. Contribute to the 401k to get the full employer match.

2. Contribute to the Roth IRA as much as you have left over -- to the limit, if possible.

3. Contribute any remaining retirement savings funds to the 401k (without the employer match at this point.)

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Best 401k Plan

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best 401k plan:

The Best 401k Plan: It could be yours.

There's a good chance your plan will get better as a result of a new law that allows plan providers to give one-on-one investment advice. Or you may be able to participate in a managed 401(k) account, in which financial professionals make investment decisions for you for a flat fee. More 401(k) plans are expected to adopt target-date retirement funds -- which invest in a mix of mutual funds that grow more conservative as you near retirement -- as their default investment.

I am a huge fan of 401k's -- especially when the employer matches a portion of your contribution. There's nothing better than FREE MONEY, huh?

My employer matches the first 3% of my contribution dollar-for-dollar. That's a 100% return on 3% of my salary even before the money gets invested into a mutual fund (where it will earn even more.) I don't know about you, but anything that gives me a 100% return is a good thing!

I think 401k's should be used in conjunction with Roth IRAs to maximize your retirement savings. To see my thoughts on this issue as well as a whole host of information on retirement, review Best of Free Money Finance: Retirement Posts.

The Best Site for Auto Insurance Quotes

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best site for auto insurance quotes:

The Best Site for Auto Insurance Quotes: InsWeb

InsWeb provides instant quotes from up to six companies (the number varies by state), including big names such as AIG and Liberty Mutual, plus quotes by phone or e-mail from American Family, Nationwide and MetLife. (For rates from other major insurers, including Progressive, Geico and Esurance, you'll have to go directly to the companies' sites.) To get an accurate price, you'll need to provide your Social Security number and let the insurer look up your driving record and credit history.

I've written before that a great way to save on car insurance is to shop around for it (FYI, see Money Saving Tips: Save on Car Insurance, Again for more car insurance saving tips) and this site is one way to do that. In the past, we've simply done it the old-fashioned way -- we've called several places and asked for a quote -- but this would make it a whole lot easier. The Social Security number requirement is a bit concerning though as I don't like to give out my number (you never know who is seeing it.)

Free Money Finance Top 10 Most Hated Posts/Themes: #4 Evil House Loans

My #4 most hated theme here at Free Money Finance is evil house loans.

Ok, so what do I mean by evil house loans? Here are some examples:

• 50-Year Mortgages

• Interest-Only Mortgages

• No Money Down Mortgages

• Other risky loans

But no matter how much I show that these are dangerous (as well as not financially sound) ways to buy a house for the vast majority of people (even though a large percentage of people use them), people still give examples of how great these loans are for them, how they've made so much on their house using them (paper gains, not actual gains), how they couldn't have afforded a home without one of these (which is exactly my point, by the way, they can't afford that home), etc. Why is this? Are people just in denial? Or maybe I'm missing it somehow? I just don't see it.

Yet there is a light at the end of the tunnel for me on this issue. My guess is that with the current state of the real estate market, a lot fewer people will be hassling me about these posts. ;-)