Hedge Your Nest Egg Against the Uncertainty of Inflation

Inflation in America has reached a five-year high. January 2017, saw monthly inflation of 0.6% according to the the U.S. Consumer Price Index. That may not sound like much, but if we had 11 more months like it we would have 7.2% annual inflation. While that is not likely, January’s increase has made the annual inflation rate jump to 2.5 percent, the highest since the FED’s massive money flood called QE2 (Quantitative Easing) in 2011.

hedge inflationPrice inflation, in economic terms, means that prices of goods and services are rising. For example, suppose a bottle of shampoo costs you a dollar today and $1.25 a year from now, that would mean that inflation has risen by 25%.

For most households inflation means higher expenses. If the family’s income remains the same while other prices go up, the rising inflation will put a strain on your family’s  budget. You will be able to buy less for the same amount of money you make. Unfortunately, long-term inflation also takes a toll on the value of your nest egg (i.e. any savings and retirement funds you have). Therefore, it’s important to anticipate inflationary periods and take the necessary steps to protect both your long-term and short-term family finances. Here is a list of some of the steps you can take: [Continue reading]

How Expensive is Full-Time Travel?

Everyone wants to travel more but how much does it really cost? Well, perhaps it is actually cheaper than you might expect. The problem of course is that you still have all your “fixed costs” at home i.e. taxes, mortgage (or rent), insurance, utilities, etc. But what if you sell your house first? That is exactly what we did and here is how much our first month of travel cost us.

The Adventure Begins

We sold our house in mid-December and after spending the Holidays with family we left Richmond, VA for Florida intending to scout out the northern half of Florida for a potential new home. So after packing the car we set out on I-95 South. This 600 mile trek according to MapQuest is supposed to take just under 9 hours of driving time. Unfortunately, as we entered Brunswick, GA we decided to stop for a bite to eat and while changing lanes to enter the Cracker Barrel something in the roadway cut a 3 inch gash in our tire sidewall. [Continue reading]

1st Time Investor’s Guide Infographic

Investing may seem scary at first but it can be one of the easiest ways to build your net worth. The following infographic from Personal Capital outlines how you can start putting your money to work for you. Step #1 Assess Your Current Financial … [Continue reading]

The Personal Finance Perks of Aging: 15 Tax Breaks You Enjoy After 50

One of the perks of growing older is more tax breaks, especially after the ages of 50 and 65. By making the most of available tax deductions for seniors and retirees, you can drastically reduce your income taxes and boost your retirement … [Continue reading]

Financial Lessons from Experts like Buffett, Rohn and Schwarzenegger

You're the average

Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.~ Arnold Schwarzenegger One major struggle many families have is money. Somehow, no matter how … [Continue reading]

How To Save Money On Home Energy

Utility costs have started to rise once again after giving us a bit of a break over the last year. And so this year you may find that you are spending more on electricity and natural gas once again. Instead of shivering in the winter and sweating it … [Continue reading]

Building Your Credit While Avoiding the 5 Top Financial Mistakes

Little mistakes often "snowball" into an avalanche when it comes to your personal finances. The financial decisions you make today could easily affect your life for many years to come. Here is a closer look at some of the most common financial … [Continue reading]

Retirement Tips You May Not Have Considered

As more people live well into their 80's and 90's, the concern over retirement funds continues to grow. Several decades of income need to be saved, and many people don't know how to achieve their ultimate financial goals. Take a close look at these … [Continue reading]