One of the more interesting aspects of American history was the practice of indentured servitude. This was a way for people who wanted to come to America to afford the journey and also to provide a stable job situation once they arrived. No one wanted to come over and starve to death due to not having a situation where they had lodging and a way to earn their keep.
There were major downsides to being an indentured servant. You were basically a slave for many years. The term of service was usually a five year commitment. Sometimes the indentured servants were abused or tricked into longer periods of service. Other times the situation was a lot less favorable than advertised. Indenture contracts were sometimes transferred or sold and the total time commitment was not honored by the owner. It was really a desperate situation.
In fact some masters even beat their servants. If an indentured servant complained or tried to escape, the courts generally upheld the contract in favor of the owner. It seems like a horrible situation, but for many people this was better than the alternative in their home country.
Continue reading “The Price of Financial Freedom”
I was reading an interesting post about having a financial epiphany and realized there were some very interesting comments from some heavy hitters in the personal finance blogging community and some who have newer blogs. Financial Samurai, Mr. Tako, Financially Alert, and others were talking about various inflection points in their financial independence journey. All of these bloggers are financially independent and have written extensively about their personal journey and their philosophy of investing and creating passive income (among other things). As I’ve mentioned before, getting to read about how other people progress to their net worth goal can be very exciting and instructive. It’s like having multiple successful mentors who will share with you the lessons they’ve learned in becoming financially free.
Continue reading “What is the Best Financial Decision You Have Made?”
What is the largest amount of money you have given to charity? What is the most important nonprofit organization that you support? What are the biggest issues that you care about? These are some god questions to consider as you work towards your financial goals. These are very personal questions, but I think everyone should be thinking about them.
Giving as Part of the Goal
I recently reported my net worth goal in this post. In summary, I didn’t reveal my current net worth or my final goal but rather introduced an index to represent my current net worth. My overall goal is to increase my net worth by ten times in ten years. My interim goal is to increase my net worth by three times in the next five years. I am really excited about these goals and will be writing about various strategies I plan to use. Five years seems like a long time now but I know it will go by faster than I expect.
Continue reading “Planned Giving”
Right now I am in North Topsail Beach on Topsail Island. Check out the picture farther below. This place is beautiful.
One of the things that I’ve noticed while running this morning and this afternoon (this place is great for running) is that there are several beach houses for sale as well as lots. Some of the buildings for sale contain three or four houses and the whole building is being offered. It makes me wonder if there is a problem with this part of the Island or if there is just frequent turnover? I can’t imagine anything wrong with living here as the weather has been beautiful and the beach is absolutely pristine. It could be that sellers list their houses in the spring before the summer rental season. Continue reading “Vacation Rental Property”
It is impossible not to notice that within the personal finance blogging community there is a practice of reporting Net Worth periodically. I find these posts incredibly interesting. It’s like tagging along with a professional athlete, seeing their daily eating schedule and workout routine, and then following their reports of performance improvements.
It’s also like getting the benefits of a mentor who shares their current progress and the reasoning behind their choices. What’s better is that you can get the benefit of multiple mentors at different Net Worth levels. Some people are out there tracking a few thousand dollars each month while others are showing increases in the tens of thousands! It’s really exciting to see how things progress over time for various people and their various strategies. Continue reading “Net Worth Goal Revealed: Increase 10X In 10 Years”
I’ve been thinking about this topic a lot recently. Asking for money. Private Funding for real estate is what I am interested in. I’ve done some reading about the topic and it sounds like a really good way to get financing without the drawbacks and absurdities of using a bank.
The great thing about this option for me is that I do happen to have some connections who may be interested in lending me money for real estate purchases.
I wanted to lay out some thoughts on what are some of the best ways to basically approach someone and ask, “hey, would you be interested in lending me $100,000 or so?”
Continue reading “Asking for Money”
I just read a really interesting article about preferred shares. These are very unique vehicles to invest in a company and earn a great return. However, they aren’t exactly stocks and they aren’t exactly bonds. So what are they?
Preferred stock is basically a stock that pays a dividend which gets paid before the dividends on the common stock. So it is called “preferred” because preference is given to paying the dividend before payments are made to common stockholders. Preferred sounds so much more sophisticated as well! You don’t want to just be a common investor – be preferred.
It is kind of like when you have a mortgage on your house and then you take a second mortgage. When this happens the bank that loaned you the money first has priority and is preferred. If you were to go bankrupt and your assets were liquidated to pay your debts, the preferred debt holder is paid first. In this example it is the loan with the first bank that will be paid off first. If any proceeds are left then the second mortgage would be paid. This is similar to how preferred stocks work when compared to common stocks. The dividend will first be paid to preferred stockholders and will then be paid to the common stockholders.
Keep in mind that those who own bonds will be paid first before preferred stockholders and common stockholders. The lower risk is the primary reason that bond returns are lower than preferred stock returns.
Continue reading “Investing in Preferred Stock”
One of the most important things you can do to get your finances on-track is to give to charity. This isn’t usually something you would naturally think of when considering how to clean up your financial act. But it is actually one of the best things you can do! The benefits you will gain are not only financial for sure. The greatest benefits you will get are much deeper than what you can obtain from good financial practices.
But you will forgive me if, on this personal finance blog, I go ahead and highlight some of the financial benefits.
Continue reading “Why You Should Give to Charity”