A Personal Finance and Money Saving Blog in Alaska

Friday Inspiration: Share With Us

On September 9, 2016

Hello Friends. As you know, on Fridays, I usually share an inspirational quote or a Roth IRA Challenge. Today, I’d like to hear from YOU!

If you are on the list for my weekly emails (if not, sign up on the sidebar!), you’ll know that I share interesting links every single week. The problem with being such a big reader is that I want to read ALL THE THINGS. I want you to share interesting or inspirational links (no, they don’t have to be PF related… some of my favorites involve British Museums planting fake art or the implications of talking products.

In the comments, share links to anything that answers this question: What is the most interesting/enlightening article you’ve read lately?

I’ll share all the links here, so you can all come back later and learn like I do! I’m excited!

Problems with Pareto Principle and Outsourcing

Problems with the Pareto Principle and Outsourcing

By MaggieBanks

On September 7, 2016

In The Ride

If you’ve read enough about how to become rich, you’ve probably encountered two concepts:

Pareto Principle – 20% of the input is responsible for 80% of the output. In personal finance, people tout focusing on only doing that 20% responsible for the most return. That leads to principle number 2:
Outsourcing – For the parts of the 80% of the job that are still necessary, you outsource them.

Let me start by stating that I agree that the Pareto Principle is real and outsourcing can be useful in some regards. Let me also state that I agree that while frugality has limits, income potential does not. I agree that everyone is capable of earning more and the amount is potentially limitless.

August 2016 Plan Update

By MaggieBanks

On September 5, 2016

In Plan Updates

August was fascinating around here. It rained for the entire month except this last week which has been absolutely gorgeous and perfect with record-breaking temperatures. Hilariously, my college roommate came to visit just when it got perfect and she had the PERFECT Alaskan trip. I mean, I really couldn’t have planned for it to be better. Denali came out for her to see, the belugas were migrating through, we hiked a glacier, we went on a boat ride and saw a humpback whale flap its tail for us (many, many times!), and then the northern lights came out as I was loading her suitcase in the car to head to the airport. It was fabulous. It’s weeks like this one where I think: “There is no better place on this planet!” Sorry, folks. But it would be hard to beat all that! Alaska is the greatest.

Northern Expressions: Manage Your Lifestyle

By MaggieBanks

On September 2, 2016

In Northern Expressions

Happy Friday, friends. Today’s Northern Expression comes from the one and only J.D. Roth. If you haven’t read it yet, go check out the awesome (and free!) The Money Boss Manual. Simple advice, but so wise and true. As you celebrate your holiday weekend (Labor Day for our overseas visitors), just ask yourself what makes you truly happy. These questions might help. Life is meant to be enjoyed, but you have to find balance with your current self and your future self.

Plan updates coming Monday, so get excited! I look forward to checking in with you after the weekend to tell you all about our exciting month. Until then, go and be joyful!

Love, Maggie

PS – Another weekly newsletter of interesting links from the interwebs goes out tomorrow morning. Sign up on the sidebar. Tomorrow’s email features a study about the population of people that watch trash films (think: Sharknado). I love studies on random things!

The Process is PART of the Product

By MaggieBanks

On August 31, 2016

In Personal Finance

There is a constant battle between the process and the product in early retirement talk. Mr. T and I lean toward a calmer, more comfortable process leading to a delayed product of early retirement. Others choose to give up a lot more than we do in the process for a sooner product.

Balance is important. If you ruin your health, happiness, or relationships along the way, you’ll find yourself retired early and alone and sick. But you are the only one that can determine what that balance looks like for you.

It’s important to take another factor into consideration as well: Pride – The good kind. The kind where you roll up your sleeves, grab a cup of lemonade and just sit and stare thinking nothing but “I did that!” It’s a great feeling, right?

Being Frugal is Overrated

By MaggieBanks

On August 29, 2016

In Saving Money

When I started this blog, I thought “yes! We aren’t big spenders! We can jump in and discuss how frugal we really are.” Ironically, after over a year of blogging, I’ve realized that being frugal isn’t the answer.

Frugality is all about cutting costs, but sometimes that’s not the best financial action plan. We still maintain some level of frugality, but it has shifted from counting costs to living mindfully.

FRUGALITY FAILS:

Northern Expressions: Don’t be an Ironing Board

By MaggieBanks

On August 26, 2016

In Northern Expressions

Full Disclosure: I ripped this off Facebook. If you created this image, please let me know and I will give you credit!

Today’s inspirational quote comes from… RANDOM GUY ON FACEBOOK. That’s right. I stole it from Facebook.* But it really resonated. I mean, look at it! That poor surf board all tied down. It’s so practical now. We’re on a path toward impracticality, but the best path toward being a surf board for longer is being an ironing board first. Boring jobs get you to the ocean, so they’re not all bad! We are equating what we are doing more to extreme ironing. Iron like it’s hot. Iron like you’re skydiving. And when you’re done with the ironing, turn it into a surfboard.**

This week, take a look at what your surfboard life would look like. Where’s your ocean? And start making calculations to see how soon you can leave your ironing board lifestyle behind! Some days, I calculate and am all: “We can actually retire in 2022 for reals” (which means more than our goal of $500,000) and other days I’m all “we’ll be lucky to hit $500,000 by then!” This week, I’m feeling good about our prospects. From the experiences of others, people always seem to gain momentum quickly in the process and hit their goals on or before their deadlines.

The future is uncertain, but looking at the ironing board, we see it’s potential! Be the surfboard, friends!

Love, Maggie

*Also, Mr. T is out of town with Lui for his Grandmother’s funeral, so I’m on my own on images this week. 🙂

**Unplug the iron first, or you’ll die of electrocution on your first day!

An Update on 2016 Goals

By MaggieBanks

On August 24, 2016

In Plan Updates

Usually people catch up with a mid-year review in June or July… you know, mid-year!? But here we are, mid-August, and I think it’s time for a check-in. School started Monday for the kiddos, so it feels like a good time to re-evaluate and figure out what needs to happen in the next 4 months.

As I’ve mentioned in the past two plan updates, the financial goals may come up a bit shy. I talk extensively about that monthly, so today’s focus is on the non-financial goals I set in January:

Don’t Make Dumb Money Mistakes!

By MaggieBanks

On August 22, 2016

In Personal Finance

When I was little, I remember being at my cousins’ house and we were having some sort of pinching fight(?) and laughing and crying and screaming. My aunt came in and yelled: “Don’t do dumb things!” and we all laughed and laughed. But the message stuck and I hear that in my mind so much that I’ve yelled it to my own children a number of times!

So what got me riled this time? The Ryan Lochte situation. I won’t go into it as I’m sick of hearing about it (though I do have to say my favorite headline has been the “Lochte Mess Monster” and his apology for his “immature tantics” made me laugh). The lesson for kids: Even if you’re hanging out with the dumb people, you’re still doing dumb things and may find yourself with your passport confiscated or with a fine for $11,000. Don’t do dumb things.

This statement applies to so many situations!

Reverse Roth IRA Challenge: The Self Employed Movement

By MaggieBanks

On August 19, 2016

In Roth IRA Challenge

Today, I get to feature Marc from The Self Employed Movement. As aspiring (more like wannabe) entrepreneurs, Marc’s blog attracted me pretty early on. Since Marc began the blog, he’s had a very dramatic journey. When I approached him about writing a spin on the Roth IRA Challenge, he hesitated about writing it because he didn’t fit the “criteria” (for the record, there really isn’t a criteria. It’s more of a prompt, so let me know if you want to participate!). I told him to tell his story about GIVING UP money and why that was the better choice. Here’s Marc with his story:

This isn’t your traditional “IRA Challenge” post, which are all awesome in their own regards. Rather, it’s a cautionary tale of what could happen when you put money in front of your health.

I was a couple of years into my career in the Finance industry. It was nothing that I was ever passionate about; I kind of just fell into it. It was at a point in my life where I didn’t know what I wanted. I just knew that I wanted to not smell like tacos when I came home every night. (I worked at a Mexican restaurant at the time.)