Setting goals is an important step in financial planning. If you don’t map out specific goals, it can be hard to make significant progress in your financial life. Writing out example goals can give you a framework upon which you can set budgets, set savings schedules, make decisions and more. Without it, you’re flying blind a bit. It’s important to establish financial goals of different types and of different time frames. For example, a super long-term financial goal might be to retire in 35 years with $5 million in the bank. A super short-term financial goal might be to pay off the remaining $1000 on your credit card by the end of the month. And of course there are annual goals, five year goals, etc. Before you make your goals, you
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How to calculate real GDP with the real GDP formula
The gross domestic product (GDP) is one of the most commonly cited economic indicators of economists, investors and policymakers. Real GDP is an offshoot of the standard GDP metric that provides clarity on the economic health of a nation while factoring in inflation and prices. As such, knowing how to calculate real GDP is extremely important. To fully understand real GDP, we need to first understand GDP. GDP along with unemployment rate is probably the most commonly cited economic health indicator of a nation. If you watch CNBC or read stock market or even political analysis, GDP will get mentioned quite frequently. GDP reflects the economic health of the nation, and therefore, it can affect a politician’s reelection chances, it can
How to retire at 50: A complete guide to retiring early
Retiring early is a dream for many individuals, but knowing how to retire at 50 escapes many. To be able to take a step back either partially or fully from traditional employment or a job and enjoy these years of your life is obviously something most desire. Unfortunately for many, by the time they have enough money to retire (or don’t have enough money, but just have reached social security age), they are more advanced in age and some of the lifestyle things that they could have enjoyed in their 50s aren’t as easy in their late 60’s and 70’s. So, it’s no surprise that the discussion around how to retire at 50 is a popular one. While the FIRE movement revolves mostly around younger people trying to find ways to travel and skate past
Hurricane Gustav: Timeline, facts, damage caused
Hurricane Gustav was a disastrous storm that hit the coast of Louisiana in 2008. It caused billions in damage and significant loss of life. Gustav caused damage and casualties in Haiti, Jamaica, the Dominican Republic, Cuba and more. It's estimated that damages caused by hurricane Gustav total more than $8 billion. Hurricane Gustav formed in late August 2008 a few hundred miles southeast of Haiti. The storm progressed quickly into a tropical storm and then a hurricane by August 26. Soon after, the storm hit Haiti before progressing on to the Gulf of Mexico and hitting the United States. The following image was provided by NASA of Hurricane Gustav over Haiti on August 26. It is reported that the storm had sustained winds of 90 miles
How to calculate how much you make an hour
Determining how much you make an hour is an important consideration when you're employed via salary. It's useful for a number of reasons. First, you may need to compare the hourly wage of your new salaried position against a previous job held in which you were paid hourly. Secondly, you may need to know your hourly wage of a salaried position to calculate some sort of overtime wage. Lastly, you might just want to know because you're curious! Also, some jobs have different time commitments even without overtime compensation. You may be working a 40-hour work week making $100,000 and are curious how that compares to earning $120,000 but working 75 hours every week. Calculating how much you make an hour is a way to do a true comparison
How to go from 0 to 1,000 users a month on your blog
When launching a new website or blog, getting traffic growth going is the hardest part. Going from 0 to 1, so to speak, is difficult. This is the subject of this article. How to go from 0 to 1,000 users a month on a new website or blog. Before we do that, let's take a brief step back and talk about why we're even approaching this subject on this site. Why are we talking about getting traffic to a new website? Isn't this site about finance? Yep. I'm a firm believer in building income streams, and I'm really dissatisfied with how this topic is covered on most sites that attempt to talk about things such as "how to make money online" or "how to start a blog" or "how to make money online." The reasoning behind the advice is sound. It's true
Cyclical Unemployment Explained: Definition, Causes and Examples
Cyclical unemployment is the component of unemployment typically associated with economic upturns and downturns. Naturally, unemployment increases during recessions or economic downturns and decreases during periods of strong economic growth. Cyclical unemployment along with other forms of unemployment such as structural unemployment, seasonal unemployment and others make up the general measurement of unemployment in the economy. Cyclical unemployment is very sensitive to the ebbs and flows of economic growth. This is in contrast to things such as structural unemployment which is caused by more secular trends or fundamental shifts in the makeup of the economy. For instance, if you were a worker who developed film from cameras taken by
CPI Formula: How to calculate the Consumer Price Index
The consumer price index (CPI) measures the average level of prices of goods and services in the economy. The CPI formula is used to measure the change in prices by consumers for a representative basket of goods and services during a defined time period. CPI is a widely followed measure of inflation which is used by economists, policy makers, investors to guide economic policy, forecasting and investment decisions. What is the CPI Formula? CPI = ( Cost of market basket in a given year / Cost of market basket in base year ) x 100 The CPI formula requires what is called a market basket of goods and services, then the formula utilizes the estimated costs of such a basket to calculate the index value that we know as CPI. Let’s look
How to evaluate a stock
As investors, learning how to evaluate a stock is extremely important. Proper evaluation of a stock means attempting to value its current and future earnings, examine its place in its industry, the competitive environment around the company and also external stock market conditions. When evaluating an investment, it really comes down to analyzing the future cash flows of the investment. With stocks, this typically takes the form of dividends paid to shareholders and potentially selling the stock for a higher price. When considering how to evaluate a stock, most seasoned investors don’t factor in future share price gains, they simply look at the business, its cash flows and whether today’s share price warrants a situation where the
Netflix content spend, explained
For the investing community, the Netflix content spend is one of the most talked about items with respect to the bull case and bear case for investing in Netflix stock (NFLX). But few truly understand the Netflix content spend, why it's important for the business, and what elements of the spend we should be truly monitoring. Let's try to fully breakdown the Netflix content spend here and explain why it's important. How much does Netflix spend on content? There are typically two ways you can look at with respect to how much Netflix is spending on content. First, Netflix quantifies an amortization amount each quarter and year which identifies essentially how much of its content assets Netflix is writing off each period. The more closely
5 keys to Disney’s streaming strategy
Disney's streaming strategy is perhaps one of the most talked about pivots and moves in recent years of all large American companies. There are many reasons for this. First, Disney is a beloved brand and owns many other beloved brands that touch consumers in many ways. Second, with the rise of Netflix and the decline of pay TV, Disney's response and strategy changes are extraordinarily important and interesting when analyzing the industry. While perhaps caught off guard initially, Disney CEO Bob Iger has made bold moves in recent years to position the company to succeed in the next era of media and entertainment. Disney's streaming strategy has come more into focus, and we now know that the company will have a three-pronged approach
Cryptocosm explained: What it is and why it matters
Cryptocosm refers to the network of organizations, systems, companies and individuals powered by blockchain technologies in which security and decentralization are primary features. The term cryptocosm was coined by technologist, futurist, author George Gilder from his book Life After Google: The Fall of Big Data and the Rise of the Blockchain Economy. He’s also used the phrase in some of his interviews and talks. As Gilder explains in his excellent book, “Some thousands of companies you’ve never heard of are investing billions right now in that effort. Collectively they will give birth to a new network whose most powerful architectural imperative will be security of transactions as a property of the system rather than an afterthought.
AT&T faces many challenges ahead of its launch into streaming
As AT&T plans to launch its streaming service in 2020, the New York Times is reporting that the potential price of the service is proving to be quite a snag as the company attempts to put the details into place for its service. The source of the problem is HBO, which has seven million online customers. The premium cable network costs $15 a month — a price that’s practically locked in because of contracts with distributors like Comcast and Dish.That price is higher than the amounts charged by any of AT&T’s future streaming rivals, which has frustrated executives as they try to set a competitive price, according to three people familiar with the company’s digital strategy.Netflix’s standard plan costs $13, Hulu’s commercial-free
The Mega Backdoor Roth IRA explained
For years, the Mega Backdoor Roth IRA was a rarely used tool applicable only to a select number of people and truly understood by even fewer people. With the rise of the gig economy and more and more people have second and third income streams, the Mega Backdoor Roth IRA is more relevant than ever. While a bit more complex than something like a standard 401(k), putting the time into understanding this tool can be quite lucrative. Depending on your situation, the Mega Backdoor Roth IRA can help you contribute tens of thousands of dollars into a Roth IRA account on an annual basis on top of typical retirement account contributions. This guide to the Mega Backdoor Roth IRA will aim to fully explain how the Mega Backdoor Roth IRA works, how to
5 stock market indicators you should be following
If you turn on CNBC, typically within a few minutes you’ll hear something along the lines of “The Dow is up 100.” But is what the Dow did today really one of the main stock market indicators that you should be monitoring if you want to be a successful investor? Also, recent history shows us that stock markets can be performing very well right before a major market move lower. This proves that just following what the market did on a given day doesn’t really tell us much about the health of the stock market itself. Or, whether or not we should be making any tactical adjustments to our portfolios. We need better stock market indicators. Ideally we need stock market indicators that give us context to the overall market moves. Is the
Is Roku’s business model ideal in the next era of streaming wars?
One of the most rapidly growing trends across today’s consumer landscape is the growth of streaming video, and the Roku business model might be uniquely positioned to continue to take advantage of this trend. The number of people ditching traditional cable and other Pay TV services for streaming services is at all-time highs and compounding. A report on the cord cutting trend released in February of this year noted that the number of Pay TV subscribers dropped 4.1% in the calendar year 2018, its highest rate of decline since 2010. Companies in the streaming industry are luring in customers with an experience characterized by an easy to navigate platform at a significantly lower price than Pay TV providers. But how do all of these
ESPN remains quite profitable for Disney
Perhaps no media brand has been beaten up by the press and by consumers in recent years more than ESPN. The poster child of the pay-TV model, ESPN has reaped massive carriage fees and delivered incredible profits to Disney in recent decades. Since, ESPN was the model for pay TV profit extraction, it also was a prime example of declining subscribers (and potentially revenues) as the cord-cutting trend went mainstream. While Disney and ESPN execs were indeed caught flat footed by the acceleration in cord cutting, much of the criticism of the network is likely overblown. The politicization of everything - of which ESPN was a major part - made the ESPN story seem more dire than perhaps it was. Perhaps more interesting, however, is that
CBS eyes Starz as media consolidation continues
With tech behemoths like Amazon, Apple and Netflix investing billions into direct-to-consumer media businesses, the landscape for traditional media companies continues to shift at an ever-increasing pace. M&A activity (e.g. Disney/Fox, AT&T/Time Warner) continues to mark an industry facing major disruption by well funded, powerful new entrants. As reports surface of CBS eyeing an acquisition of Starz from Lionsgate, it's obvious that this trend will continue. Media companies are fighting for two things namely. First, scale. And second, more opportunities to beef up direct-to-consumer offerings. With respect to CBS, here's Cynthia Littleton from Variety: But Starz is a purely subscription business, something that appeals to CBS
Best investments for kids: How to secure your child’s financial future
Parents can guarantee incredible financial gains for their children by beginning the investment process now. While understanding what the best investments for kids are, it’s a broader topic in the sense that there are many important facets to the discussion. Things like when you should begin investing for your kids, what types of accounts are appropriate for kids and what are the tax ramifications of various investment strategies. When it comes to investing on behalf of your children and making strides towards their very bright financial future, all of these things can be important elements. When we consider investing for our kids, most of the discussion revolves around college savings, and this is absolutely a relevant component. But,
Income statement formula explained
What is the income statement formula? What is the income statement formula? Let's first take a quick step back. Income statement is one of the three primary financial statements that describe the financial performance of a business or a company. The income statement, the balance sheet and the cash flow statement are the three primary financial statements. The income statement is essentially a report of the earnings or profit of a company. Some refer to it as a profit-and-loss (P&L) statement. At a high level, the income statement formula can be as simple as: NET INCOME = REVENUE - EXPENSES. For many businesses, however, the income statement formula is slightly more complex. For example, first, gross profit is
How to void a check
When setting up automatic payments for a utility company, direct deposit or other automated services involving your checking account, you can often be asked to provide a voided check with your paperwork. Knowing how to void a check correctly is important so that you can ensure you provide the appropriate information, but also keep your bank account and information secure. Thankfully, voiding a check is simple and straightforward. Why do other companies ask for a voided check? Typically it’s when setting up direct deposit, automatic payments or other items. To do so, they need your account number and the routing number (which identifies the bank). By providing a voided check, they’re able to confirm that the account number and routing
Investing 101 Book: The top 10 books for learning how to invest
Looking for an investing 101 book? We've got several recommendations for you if you're looking to read up on how to invest. Ten Investing 101 Books to Consider The Bogleheads' Guide to the Three-Fund Portfolio This is a must-read investing 101 book for investors looking to understand how to build an efficient and simple portfolio themselves in the midst of an over-complicated and diverse world of financial instruments. If you're brand new to investing, this is a must read just to get up to speed on funds, what kind of performance you can expect. Investors who already have a familiarity with the basics will still find this book interesting by reading about tax efficiency and other advanced topics. All investors can find suggestions
How to grocery shop on a budget
Food is one of the largest budget items for just about everyone. When it comes to discretionary purchases, it’s pretty much always the largest. While large families will often complain about spending large amounts on groceries (for good reason), singles or smaller families have to deal with other issues that make budgeting challenging. So, learning how to grocery shop on a budget is important for all individuals and all families. Before we get into some specific strategies, there are a few “low hanging fruit” things to consider. The first is the simple question of whether or not you’re even tracking your grocery spend. If you’re not, you need to start. Nothing else really matters until you start tracking this spending category to a
Taxable accounts in retirement: Why they’re more important than you think
The backbone of most people's retirement funding are the tax sheltered accounts such as IRAs and 401(k)s. These accounts are fantastic, and rightly should make up the bulk of your retirement saving. Maximizing contributions to these accounts is a must and should be at the top of your personal finance priority list each year. But depending on your situation, contributing over and above these accounts into taxable savings and brokerages accounts can be an extremely beneficial strategy and an impactful part of your future retirement. Saving additional money in taxable accounts can be impactful later during your retirement years. For instance, pulling money out of taxable accounts can have tax benefits during retirement as this money is
Market Brief (Apr. 3, 2019): The Fed vs. the market
We live in unprecedented times. At least it seems so considering how short our memories are. It seems unprecedented how quickly the Fed has turned dovish from hawkish in just a matter of weeks. After hiking rates in December, the Fed has gone increasingly dovish in order to either satisfy the markets, President Trump or the slowing economy. Perhaps a combination of the three. Regardless, the Fed only got 2.5% before it's essentially signaled that it's done. Typically (what's typical anymore?) the Fed would like to get rates higher before heading into another recession so that it has more ammunition to fire at an oncoming recession. Welp, 2.5% will have to do it seems. And you've got Trump himself and Trump's inner circles making