#5 — The 10% Rule
#2 — The 5% Rule
Possibly the biggest cultural trend in personal finance over the past decade has been the rise of the Financial Independence, Retire Early (FIRE) movement.
FIRE followers aim to save and invest a high proportion of their income so that they can build enough wealth to finance their lifestyle independent of their paycheck. At which point they are considered “Financially Independent” (FI) and may choose to “Retire Early.”
In this article, I dive…
Medium product request: Reddit style discussion threads for publications
I’ve been told that the powers that be at Medium are pretty good at reading and responding to what changes writers and readers want to see on the platform.
So, here goes, Medium team; if you are reading this, I think it’s time that Medium take the next step in making this a platform where people really live by providing publications a way to easily create discussion threads/forums.
At Making of a Millionaire, I’ve been considering creating discussion forums on a 3rd party app, but most of my readers are on Medium, so I would really like to be able to host it here on this platform.
Medium, I want to increase reader engagement with the platform; please help me do it!
If you agree, let me know in the comments, and let’s put this on Medium’s radar.
How I am spending my “Medium Stimulus Check.”
You may have heard that Medium gave out $500 as a monthly bonus to a bunch of writers yesterday. I am coining a new phrase and calling this the “Medium stimulus check.”
Within 10 seconds of my funds hitting my account, it will be swiftly transferred to my investing account. Because writing is my “side-hustle” and I save 100% of my side hustle money, which as I explain here, helps me save 83% of my income.
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Written by: Rocco Pendola
Had I “played my cards right,” I could have amassed $500,000 — probably more — by age 38.
But, for a whole host of reasons, including a handful of money mistakes and poor spending decisions, I didn’t.
Most people can’t wait to get rid of their mortgage. If you follow the bumper-sticker advice that “all debt is bad” and must be eliminated ASAP, then paying off your mortgage might be your top financial goal.
One of the age-old personal finance questions of what to do with extra cash is “should I pay off my mortgage or invest?” If you follow bumper-sticker advice, this isn't even a question; “of course, you should pay off the mortgage before you start investing!”
Sorry, but there’s a lot more to it than that. This type of decision is far too important…
My only financial regret of 2020 was that the stock market recovered too quickly.
During a three-week stretch from late February to mid-March 2020, the U.S stock market lost about 33% of its value. Then it came roaring back with a vengeance.
At the time I write this, the market is up:
It’s rightfully stated that a market crash is a great “buying opportunity.” In fact, that is exactly what I wrote during the rapid sell-off in early March last year.
To quote myself:
I just set a timer to write this article in 40 minutes.
Because in 2021, that is all the time I have to dedicate to my passion project of writing on a Sunday afternoon. Like millions of other people around the world, the number of responsibilities that have been placed on my shoulders has increased. At the same time, the line between these separate responsibilities has been blurred.
This article is a personal essay describing the feeling of burnout we all have felt since the onset of the pandemic, how I chose to cope with it and why my only…
The holy grail in personal finance is generating enough passive income to cover your living expenses.
If you can reach that point, you can literally choose whatever you want to do with your life without worrying about paying the bills. If you can find a more appealing financial goal, I’d like to hear it.
One type of investment that has built up a cult-like following online is dividend-paying stocks. These are companies that pay out passive income in the form of cash dividends to investors.
Dividend investing feels great. After all, who wouldn’t want to get paid for doing nothing…
Here are the most thoughtful comments I read from Making of Millionaire articles this week.
The hardest thing about investing/trading is going against your emotions. What you feel is almost always wrong. Just when you push the button to get out, the market reverses and moves higher.
As humans we feel much more pain when we lose than we feel pleasure when we win. That kept us alive for the past million years or so but doesn’t work in counter-intuitive activities like trading.
Fear, Uncertainty, and Doubt (FUD) are great marketing tools for this reason. Gold bugs, perpetual bears, and…
Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire