what should your net worth be by age

What Should Your Net Worth Be By Age?

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What should your net worth be by age XX? Good question. This is probably one of the most common inquiries I get, but I’m always hesitant to answer. Mainly because there really is no good answer. A lot of the targets are arbitrary, including the ones in this post. There really is no right number to set as your net worth target. Personal finance is personal, and this is one of the most personal numbers of all. What will be “enough” depends on you and factors your don’t know yet. Some people cannot live on less than $100,000 per year, others struggle to spend as much as $25,000. These people do not need the same net worth at every age milestone. Knowing how much wealth you personally need to accumulate in order to live comfortably is far more important than knowing what everyone else has. For that reason, I would encourage you […]

pay your debt off early

This Is Why You Have To Pay Your Debt Off Early

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One of the hardest parts about paying off your debts ahead of schedule is, until the balances are actually gone, you will not realize any benefits. In fact, in the meantime, it will actually probably be quite painful and annoying. This is exactly why paying off debt on any kind of accelerated schedule is such a huge pain in the ass. How often do you do things that suck, make you feel broke, and stop you from going on vacation for two or three or more years? Probably never. Nobody willingly does that. I’ve recently stumbled upon articles and blog posts by people willingly ignoring their debts. They opt for the minimum payment, because then it gives them more money to put into other investments, like retirement accounts or an emergency fund. If you don’t do any number crunching, this can almost sound like a good strategy — after all, […]

future you are saving for doesn't exist

The Future You Are Saving For Does Not Exist

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When I read personal finance blogs and news sites across the web, I often come across articles with titles like, “Why I will not pay for my children’s college” written by twenty-somethings who aren’t even pregnant yet. Others talk about diligently saving to retire early at age 50, even though they’ve barely started their careers. We talk about our futures and our finances like they are so predictable. They’re not. One of the most dangerous things you can do for your finances (and your happiness) is to plan your life under the assumption that everything will remain as it is. It won’t. I think we intuitively understand this, but you don’t know what you don’t know, and that makes imagining anything different extremely challenging. But these perspectives and biases can hinder us by limiting our flexibility to adapt to an ever-changing world. Most of the resources intended to guide our futures come […]

financial stability through entrepreneurship

Achieving Financial Stability Through Entrepreneurship

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Windsor, Ontario boasts one of the highest unemployment rates in Canada. This city — which is located directly across the Detroit River from Detroit, Michigan — has always been heavily dependent on the automotive industry. As much of the automotive manufacturing industry moved overseas in recent years, thousands of people in Windsor lost their jobs. As a result, the city has one of the highest unemployment rates in the country. As someone currently living in a city in the midst of a severe economic downturn, I understand all too well the realities of large-scale layoffs and unemployment – particularly how they impact your finances. Despite being a generally financially savvy person, even I got a financial literacy education in these circumstances. I also understand how entrepreneurship can be a solution to job insecurity. Before I left traditional employment to run Money After Graduation full-time, I was a consultant to early-stage start-ups. I helped […]

build good credit

5 Easy Steps To Build Good Credit

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I’ve been paying attention to my credit since I graduated from my Bachelors degree. Regularly checking my credit report was the easiest way to ensure my student loans remained in good standing as I repaid them, no credit cards were opened under my name through identity theft, and credit accounts I requested to be closed were actually closed. This might seem like overkill to worry about since I was always making my debt payments on time, but as many of 18% of credit reports contain errors and I’ve been the victim of identify theft before, so my paranoia keeps me watching my numbers. Because bad credit means you can be denied credit when you need it (like to qualify for a mortgage in order to buy a house) or will have to pay higher interest when you borrow, errors on your report aren’t just inconvenient, they can be expensive. Because of the high cost […]