Advantages of Living in a Small Home

Here I am again with another personal story. This is about our small 2 BHK apartment. Over the last couple of months an urge to buy our first home started to develop in me. All my friends, even the ones who came to this country from India are now home owners. Even my sister-in-law is a home owner too, in Houston. Lately were questioned by many about it. They even started making guesses about our financial situation, or the lack of money.

Cramped Room

This is a strange situation to be in. It becomes very difficult to explain people who ask the same question multiple times. They simply think paying rent is waste of money. Some even calculated the amount of rent we paid in last 8 years and thus the money we wasted. Yes, we paid rent without building equity on a property of our own. but we did save on things we would otherwise would have spent money on.

“Tax” – Helps us Relax

Taxes. *yawn*. What an absolute bore, right? How many of us wait till the very last minute to pay them? I see a lot of hands raised. April 15th—that dreadful day. You think I was any different? My hand was raised too! You don’t have to be ashamed because there are a lot of us out there. Did you know that more than half the population does not pay taxes?  Yep. I was one of them too. I hated doing my taxes, fretted every second while doing them and when finally, I did manage at the very last minute, I put it off till the last minute again. Rinse and repeat. It was a never ending cycle! Paying taxes makes a lot of people very, very nervous (like me!).

Tax

But you know what? It doesn’t have to be like that. Instead of worrying about taxes, you should be happy to be paying them because of the plethora of advantages that you get. I had a long chat with a couple of my “responsible” friends and they shared their wisdom with me. I’m going to tell you what they told me.

Reduce Your Debt in 3 Steps

If you have insurmountable debt, you’re not alone – the level of household debt is increasing in America, rising at an average rate of nearly $3200 a year between 2001 and 2011. Even more worryingly, high interest debt – such as credit cards and unsecured loans – rose by more than 30% over the same period. When you consider how much extra it costs to pay just the interest on this extra debt, it’s no wonder that many American families are experiencing financial difficulties – and the stress that goes along with it.

We are Debt Free

In September I published a guest post containing a real life story on getting out of debt. Slightly more than a year I listed as much as 51 ways to get out of debt. I sometimes feel that finding 51 ways to get out of debt is little overwhelming. Here’s a simple approach to discuss debt problem. Just consider a simple solution which has only three steps.

Successful Retirement Planning is about Starting Early

Keep in mind when a saving plan is started early, retirement planning is almost always successful. But, the converse is not true most of the time. People even when started late, piled up adequate retirement saving portfolio. A prime example could be us, we started saving for retirement when I was in my thirties but since we could save 50% of our income, we are progressing well. Enjoy this guest post from Rick!

Early saving

The whole essence of successful retirement planning is to start as early as possible, but unfortunately by the time many people realize its importance, it is generally too late.

Frugal Isn’t Cheap – A Book review

Agent of the writer Clare Levinson contacted me to review the book “Frugal Isn’t Cheap“. It was long since I went through a complete paper book. Sensing a chance, I accepted, glad I did. The book almost read like it’s written by me! Clare and I share a similar mentality as far as frugality goes.

This is my first book review and I am happy to read and write about a book whose concepts are so mine! I have been telling this to people around me including my better half, that frugal isn’t cheap, frugality is a habit, not compulsion, frugality is the new style statement.

The book contains one formula that pretty much sums up all my posts that I had written over two and half years