This is a guest post from the Millionaire Mommy Next Door. At her blog, MMND shares her recipe for success, happiness, and financial freedom. This piece originally appeared on her site in a slightly different format.
When my husband and I married (at age 23), I was working as an office assistant at a veterinary hospital earning $7.50 per hour. Unsatisfied with my low wages, I brainstormed ways to generate extra income.
Going to the Dogs
I had worked as a volunteer dog-trainer for the Humane Society since age 14, so I combined my experience and youthful exuberance into a part-time side business. I offered dog-training classes and taught them in the veterinary hospital’s backyard. It was a win-win situation: my employers had a new service to offer their clients, and I was self-employed, with very low operating expenses.
I soon added home- and pet-sitting to the services I provided. Within about a year, my part-time business was earning more than my full-time wages at the veterinary hospital, so I quit my job. Over the next few years, I expanded my business and hired a few part-time employees. It was at that point that I discovered the joys of working from home in my pajamas.
In the Pipes
Meanwhile, my husband served as a company-employed plumber working for hourly wages, earning $30,000 to $35,000 a year.
At age 30, I sold my dog-training and pet-care business (for about $75,000) and we launched a plumbing and heating business of our own. My husband served as the project estimator and plumber; I was the business manager and bookkeeper.
Our customers quickly spread the word about our new plumbing company. Within our first year, we had generated enough business (via personal referrals) to keep us busy and profitable. Building a business based on personal referrals completely eliminated the need for us to spend a dime on advertising.
Doing the Math
We soon faced an important decision. Should we expand our services by hiring other plumbers? Here are the two options we considered:
Option A: Continue to manage a small in-home business operated by:
1 full-time plumber (my husband; 40 hrs/wk)
1 part-time apprentice (20 hrs/wk)
1 part-time bookkeeper (me; 5-10 hrs/wk)
With this model, we could earn $250,000 annual gross revenue with 50% net profit (low overhead expenses means a higher percentage of revenue remains as profit).
~or~
Option B: Manage a storefront business operated by:
5 full-time plumbers (200 hrs/wk)
2.5 full-time apprentices (100 hrs/wk)
1 full-time bookkeeper (40 hrs/wk)
1 full-time manager (40 hrs/wk)
Under this scenario, we would earn $1,250,000 annual gross revenue (5 times more revenue, with 5 plumbers, than Option A above) with 10% net profit (higher overhead expenses means a lower percentage of revenue remains as profit).
Which business would you rather own? At first glance, most would likely say, “I’ll take the business that makes one-and-a-quarter million dollars each year!”
Whoa now, let’s slow down and do the math:
Option A: Small in-home business brings in $250,000 gross revenue and nets 50% profit = $125,000 annual net profit.
Option B: Larger storefront business brings in $1,250,000 gross revenue and nets 10% profit = $125,000 annual net profit.
Now that you’ve checked the math, which would you choose?
My husband and I chose Option A. Option A comes with fewer expenditures of time, energy and capital, as well as reduced risk. Option A nets the same profit as option B. As a bonus, option A allowed me to continue working at home in my pajamas.
Of course, if we hired 10 plumbers, we might make significantly more income. However, upon evaluating our priorities and values, my husband and I decided that we already made enough. We made the choice to work less rather than grow our business. In other words, a balanced lifestyle was, and still is, more important to us than money.
Learning to Invest
Since our plumbing business required only 5-10 hours/week of my time for bookkeeping tasks, I decided to learn how to invest on my own (without assistance from our broker). I dedicated almost two years to the study of equity investing via books, web sites, and conversations with investors. Once I had acquired the knowledge, confidence and skills necessary to invest successfully on my own, I fired our broker, saving us thousands of dollars in commissions and fees.
Once we reached our crossover point (the average annual return from our investment portfolio exceeded our annual expenses, plus inflation), we scaled back on our business. My husband currently works only two or three days a week. Now, he can be selective in the projects he accepts. For instance, he no longer unplugs toilets, but he still enjoys creative remodeling projects. If he chooses to retire or to do something completely different, we’ll sell our plumbing business.
Achieving Financial Freedom
Before traveling to China to bring our new daughter home, I hired a bookkeeper to replace me so that I could focus my time, energy and attention on parenting and pursuing my hobbies. Additionally, I’ve learned how to effectively manage our investment portfolio in such a way that this task requires just one or two hours per month of my time.
We have truly attained freedom, financial and otherwise. Whether it be work, parenting, or play, we wake eager to spend each new day doing whatever we choose. What a gift!
Recommended reading:
Want to learn my recipe for success, happiness, and a million dollars? Start here: Baby Steps to Financial Freedom.
By Peter Anderson10 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 5, 2018.
When starting to invest one of the first things that you’ll have to decide is how you want to invest.
Will you choose a tax advantaged retirement vehicle like the 401k or Traditional IRA?
Will you use a Roth IRA that is funded with post-tax dollars?
Will you go down the road of taxable investing through a brokerage account?
Will you use something new like peer-to-peer lending?
All of these are things you are important to consider when setting up your retirement accounts, as it can affect many different aspects of your financial picture.
For me I don’t consider myself a super-savvy investor, but I do feel like I’ve got a pretty good hold on what I want to do for our savings and retirement accounts. I want to invest in mostly passive index funds, and invest in the following account types – in this order:
Invest in Roth IRA to max: First, I want to invest in our Roth IRA to the max of $6000 per investor – $6000 each for my wife and I.
Invest in company 401k to max: Next we’ll be investing in my company 401k up until the max. I’m not sure we’ll be meeting that maximum this year because of other expenses that have come up.
Investing in taxable accounts: Next we would be investing in taxable investments, most likely through an account with Betterment, Wealthfront or one of the discount online brokerages.
So why am I starting our investing via a Roth IRA?
Why We’re Investing With A Roth IRA First
There are a few reasons why we’re investing with a Roth IRA first.
Tax advantages: We really like the idea of investing our money in a Roth IRA, letting it sit there, and never having to pay a dime more in taxes on the contributions or earnings as long as we wait until retirement to withdraw it.
Tax diversification: The Roth IRA is a part of our tax diversification plan, where we invest in both pre-tax and post tax investments so as to hedge our bets when it comes to current and future tax rates and which will be higher or more to our advantage. We’re investing a portion in Roth, and a portion in our 401k which will be taxable at withdrawal.
The Roth allows for flexibility: One thing we like about the Roth IRA is the fact that you can take out your contributions at any time without having to pay it back like the 401k. While it isn’t a good idea to be withdrawing your retirement funds, it can be good to know that in a pinch you can withdraw those contributions. (Note: You can’t withdraw earnings without penalty, only contributions).
College savings and home purchase withdrawals: The Roth IRA also allows account holders to withdraw from contributions and earnings to use the funds to pay for their first home, or for college bills. Normal early withdrawal penalties are waived in these cases.
Easy to start, and tons of options: Opening a Roth IRA is super easy and can be done within a half hour to an hour if you want. Plus companies like Vanguard are making it easier to start, reducing their minimum investments in a wide range of funds to only $1000 to start. Most people should be able to scrape together $1000 to start their Roth IRA! In addition, the companies are making a wide range of investments available to account holders, with many more choices than a traditional 401k.
Roth can be passed down to heirs tax free: While it wasn’t one of our main reasons for choosing the account, the fact that your heirs can withdraw the money tax free from the account upon your death is a plus. The withdrawals are tax free, just like for you.
So those are some of the pluses of the Roth IRA, and why we’re choosing to invest in those accounts first. Of course, we’re hoping to also invest in our company 401k after our max Roth contribution has been reached, as well as possibly some other taxable investments later on if we have a good year and can max out both the Roth and 401k (unlikely).
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Roth IRA Rules
If you’re looking to invest in a Roth IRA as well, here are some posts you might find helpful.
So are you investing in a Roth IRA? If so why? If not, why not? Tell us your thoughts on whether the Roth is the best place to start investing in the comments.
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You’ve been investing in your 401k for quite some time and are probably still clueless in where your money is going. (Don’t worry…you’re not alone)
But you’re thankful that they offer these “target date” or “life cycle” funds that make investing in your 401k so easy.
What are target date funds? You know… the funds where all you have to do is choose the year you plan on retiring and voila – you’re all set.
Winner, winner, chicken dinner…..how easy is that?
Here’s the BIG problem. Target date funds, although easy, can sometimes eat away at your returns.
Or stated just a bit more bluntly– They suck!
*You know I hate Target Date Mutual Funds when I take the time to record a video.
Target date funds were created to take away the hassle of having to research the mutual funds in your 401k and build and construct your own portfolio. But in my experience, taking the time to do the research and, essentially, build your own target date funds in your 401k, is a much better option. It’s this “a la carte” approach that can potentially give you much higher returns over your working life.
What Makes Target Date Funds so Bad?
First, let’s understand how they work. Most often these funds are created by a specific mutual fund company. Then that mutual fund company will take 12-18 of their mutual funds and create this diversified portfolio on your behalf. As you age towards your “target date” of retirement, the 12-18 funds will start shifting to something more conservative (movi.ng from less stocks to more bonds)
Sounds like win-win, right? You would think. Here’s the problem….
When you start breaking down the individual mutual fund options inside these target date funds, you start to uncover that there are some or several of these funds that are just plum horrible.
What I’ve Seen With Target Date Funds
Over the years, I’ve seen countless target date mutual funds that my clients have brought in and thus far, I haven’t seen one that I’ve been impressed with.
Recently, I had three different clients bring in their 401(k)’s, all of which having target date funds.
The common theme was…..you guessed it…. they suck.
Show Me Some Examples
Here’s some examples of three clients’ 401(k)’s where we compared the target date portfolio and looked at their ten-year returns, we adjusted that for inflation, and see how that compared with the new portfolio.
Now, keep in mind, the new portfolio consisted of the mutual fund options that were available to them in their 401k.
See, whenever you have a 401k, the target date fund is usually the easiest option, and sometimes your default option, but you typically have the ability to go in and create your own portfolio. Most people don’t because they simply just don’t know and don’t feel comfortable doing it.
I can’t blame people for not feeling comfortable or qualified to do so. I’m hoping by showing you some numbers below that you’ll at least consider it. Let’s take a look…..
Sample Client One
With each client we kept the ratio of stocks and bonds relatively the same. As you can see, the first portfolio netted a 3.61% more return over a 10 year period. 3.61%! Remember, we are just using other mutual funds that are already in the 401k.
Portfolio
10Yr Return
Adjusted for Inflation Assumed(3.4%)
10Yr Beta
Target Date Portfolio
4.22%
.79%
.90
New Portfolio
7.83%
4.28%
.76
Difference
+3.61%
+3.49%
-.14
For the super analytical people, I had to include other factors as beta, standard deviation and alpha. If you don’t know that means, it’s OK. You don’t need to. What you may be more interested in dollars.
Portfolio
10Yr Standard Deviation
10Yr Alpha
Target Date Portfolio
14.83
1.33
New Portfolio
12.80
4.79
Difference
-2.03
+3.46
What does 3.61% really mean over the long term? Well, let’s just say… A LOT. As you can see below, in 5 years on a $100,000 portfolio, it’s over $22,000. Wow! And as you can see it only gets bigger and BIGGER….
Portfolio of $100,000
5YR
10YR
20YR
Target Date Portfolio
$122,958
$151,186
$228,571
New Portfolio
$145,780
$212,518
$451,640
Difference
$22,822
$61,332
$223,0069
Those numbers don’t really reflect what happens in a 401k. If you have a 401k, then most likely you’re adding to it on per paycheck basis.
Using the same returns, I wanted to demonstrate if you were adding $5,000 per year into it. As you can see the 20 year number is a $295,000 difference. Okay, that deserves a special call out……
The 20 year difference is $295,000! Wowzers.
Still think you’re target date fund is good enough for your retirement?
Portfolio of $100,000 with $5,000 per yr contribution
5YR
10YR
20YR
Target Date Portfolio
$150,159
$211,832
$380,907
New Portfolio
$175,014
$284,369
$676,186
Difference
$24,855
$72,537
$295,279
Sample Client Two
You can go through the rest of the examples and see more of the same. What’s the recurring theme? You guessed it. Target date funds suck.
Portfolio
10Yr Return
Adjusted for Inflation Assumed(3.4%)
10Yr Beta
Target Date Portfolio
7.00%
3.48%
.69
New Portfolio
9.80%
6.19%
.72
Difference
+2.80%
+2.71%
+.03
Portfolio
10Yr Standard Deviation
10Yr Alpha
Target Date Portfolio
11.71
4.04
New Portfolio
12.57
6.66
Difference
+.86
+2.62
Portfolio of $100,000
5YR
10YR
20YR
Target Date Portfolio
$140,255
$196,715
$386,968
New Portfolio
$159,592
$254,697
$648,704
Difference
$19,337
$57,982
$261,736
Portfolio of $100,000 with $5,000 per yr contribution
5YR
10YR
20YR
Target Date Portfolio
$169,009
$265,797
$591,945
New Portfolio
$189,996
$333,624
$928,656
Difference
$20,978
$67,827
$336,711
Sample Client Three
Different Client. Different 401k. Different target date mutual funds. Same sucky results….
Portfolio
10Yr Return
Adjusted for Inflation Assumed(3.4%)
10Yr Beta
Target Date Portfolio
5.55%
2.08%
.98
New Portfolio
7.78%
4.26%
.89
Difference
+2.23%
+2.18%
-.09
Portfolio
10Yr Standard Deviation
10Yr Alpha
Target Date Portfolio
15.96
2.59
New Portfolio
14.80
4.72
Difference
-1.16
+2.13
Portfolio of $100,000
5YR
10YR
20YR
Target Date Portfolio
$131,006
$171,626
$294,554
New Portfolio
$145,442
$211,535
$447,470
Difference
$14,436
$39,909
$152,916
Portfolio of $100,000 with $5,000 per yr contribution
5YR
10YR
20YR
Target Date Portfolio
$158,939
$236,153
$469,828
New Portfolio
$174,647
$283,215
$670,779
Difference
$15,708
$47,062
$200,951
Managing Your Own 401k
Now, I understand that most people don’t know what the heck they’re looking at in their 401k, so it’s hard for them to do their own research, but that’s where a financial planner comes into play.
Find an advisor that knows that they’re doing and have them construct you an optimized 401k portfolio. Even if you have to pay that person $1000 to help with your 401k, that $1000 is nothing, especially when you look at the numbers above.
401k Review Service
Since I realize people need help with their 401k, it only made sense to include that as a part of my practice. Don’t worry, it’s not $1000. 🙂 If you need help with your 401k, check out my 401k review service.
Need help with your 401k?
If you’re struggling to make sense with your 401k, stop going at it alone. Read more about my 401k review service to get your retirement on track. Click here to learn more.
By Peter AndersonLeave a Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 28, 2009.
Be still, and know that I am God; I will be exalted among the nations, I will be exalted in the earth. Psalm 46:10
Sometimes we let our minds get too active, and the troubles and worries of everyday living can start to take over. Money troubles, relationship issues, problems at work. The list can be endless. Its important that we always set apart time in our lives to just “Be still” and have that quiet time with God. Without taking that time to reconnect ourselves to the source, Jesus Christ, our circumstances can quickly overwhelm us. Has there ever been a time when you have forgotten to reconnect, and suffered as a result?
When I picked up The 4-Hour Workweek, I was worried it was some sort of “get rich quick” book. The first few pages didn’t do much to change my mind. The author, Timothy Ferriss, makes a lot of bold claims, such as: “How do you create a hands-off business that generates $80,000 per month with no management? It’s all here.”
But something happened during the first few chapters. When I read a book, I use small sticky notes to mark interesting passages. After the first 100 pages of The 4-Hour Workweek, the book was thick with stickies. By the time I was finished, I had used an entire pad!
Ferriss does make a lot of bold promises, and some of the details along the way do read like the confessions of a get-rich-quick scammer. But I believe that an intelligent reader can easily extract a wealth of useful ideas from the book. For me, it’s a keeper. I’ve read it three times already, and will probably read it again before the end of the year.
Let’s Make a Deal
After college, Ferriss took a soul-sucking sales job at a tech firm. He left to start a soul-sucking business of his own. He went from working 40 hours a week for somebody else to working 80 hours a week for himself. He hated it. The pay was good, but the business left him drained.
After learning about the Pareto Principle (more commonly known as the 80-20 Principle), Ferriss had a revelation: he streamlined his business, eliminating distractions and automating systems until it was not only more profitable, but also took less of his time. Much less. He took a “mini-retirement,” and then decided to write a book about “lifestyle design,” about creating a life that balances work and play, maximizing the positives of both.
The 4-Hour Workweek is divided into four sections, each of which explores one of the components to lifestyle design:
Define your objectives. Decide what’s important. Set goals. Ask yourself, “What do I really want?”
Eliminate distractions to free up time. Learn to be effective, not efficient. Focus on the 20% of stuff that’s important and ignore the 80% that isn’t. Put yourself on a low-information diet. Learn to shunt aside interruptions, and learn to say “no.”
Automate your cash flow to increase income. Outsource your life — hire a virtual assistant to handle menial tasks. Develop a business that can run on auto-pilot. (This is the weakest section of the book.)
Liberate yourself from traditional expectations. Design your job to increase mobility. This could mean working from home, or it could mean using geographic arbitrage to take mini-retirements in countries with favorable exchange rates.
The 4-Hour Workweek describes the specific actions Ferriss took to implement these steps. Sometimes these specifics aren’t particularly useful. However, I think it’s a mistake to let the details get in the way of his broader message. If you’re able to look past the details, to look at their meaning, you may discover principles that can change your life. For example, I don’t like much of what Ferriss has to say about automation. I question the virtue of virtual assistants, and I think that his business model works for his business, but probably isn’t applicable to most others.
However, it was while re-reading this section the other night that I began to think about automating my personal finances, about making them paperless. By absorbing Ferriss’ ideas and not his specific details, I was able to apply this to my life.
A Kick in the Head
Most of the time, The 4-Hour Workweek is like a kick in the head. The flow of ideas is relentless. Here’s one of my favorites:
Emphasize strengths, don’t fix weaknesses. Most people are good at a handful of things and utterly miserable at most. […] It is far more lucrative and fun to leverage your strengths instead of attempting to fix all the chinks in your armor. The choice is between multiplication of results using strengths or incremental improvement fixing weaknesses that will, at best, become mediocre. Focus on better use of your best weapons instead of constant repair.
Maybe this is obvious to most of you, but it’s a revelation to me. I spend a lot of time worrying about my weaknesses. Yet when I look at my life, it’s clear that everything rewarding and profitable comes from enhancing my strengths. Here’s another example:
Relative income is more important than absolute income. Absolute income is measured using one holy and inalterable variable: the raw and almighty dollar. Jane Doe makes $100,000 per year and is thus twice as rich as John Doe, who makes $50,000 per year.
Relative income uses two variables: the dollar and time, usually hours. The whole “per year” concept is arbitrary and makes it easy to trick yourself. Let’s look at the real trade. Jane Doe makes $100,000 per year, $2,000 for each of 50 weeks per year, and works 80 hours per week. Jane Doe thus makes $25 per hour. John Doe makes $50,000 per year, $1,000 for each of 50 weeks per year, but works 10 hours per week and hence makes $100 per hour. In relative income, John is four times richer.
Of course, relative income has to add up to the minimum amount necessary to actualize your goals…
I want to believe that if I had to choose between $70,000 per year earned with 70 hard hours per week, or $42,000 per year earned with 37 easy hours per week, I’d choose the latter. I’m not there yet.
A Garden of Tips
I don’t buy into everything that Ferriss writes, but I love how he shatters conventional wisdom. I love that he makes me think. Even if you reject his central thesis, there are dozens of tips and tricks here that can be extracted and used to optimize your life. Here are a few:
Ask yourself, “If this is the only thing I accomplish today, will I be satisfied with my day?”
How to double your reading speed in ten minutes.
Why it’s more productive to carry around a written to-do list than to keep one on your computer.
Learn the art of non-finishing. This is all about the sunk cost fallacy: just because you paid $10 to see Pirates of the Caribbean 3 doesn’t mean it’s a good idea to watch the entire thing.
How to be more efficient with e-mail.
How to reduce clutter from your life.
If you can’t define it or act upon it, forget it.
Life exists to be enjoyed — the most important thing is to feel good about yourself.
Why geographic arbitrage is a great way to enhance your relative income.
The value of a virtual assistant.
Related >> Why Smart People Make Big Money Mistakes — And How to Correct Them
My Recommendation
Despite its flaws, The 4-Hour Workweek is a great book. I think that most people can draw something useful from it. Borrow it from your public library. If you like it and think you’ll re-read it, then wait for it to come out in paperback. I’ve already read my copy three times, but that’s because it’s perfect for when I am in life; I’m not convinced that others will extract the same value.
A final note: perhaps best of all, this book has a 10-page index. Why don’t more books do this?
Whether you’re after the warm sunshine, the dry climate or the delicious food, Tucson, Arizona, has something to offer tourists and residents alike. This Southwestern city is home to the University of Arizona, but it’s so much more than a college town – it’s a cultural haven for art lovers, a destination for outdoor thrill seekers and a scenic wonderland for anyone who loves blue skies and the prickly spires of a Saguaro cactus.
With a population of nearly a million, Tucson is the second most populous city in Arizona. There are plenty of reasons to look for an apartment here, but which neighborhood will be right for you? Apartment Guide ranks the most-searched neighborhoods on the site within Tucson from Jan. 1 through June 20, 2014. Which of these is your favorite place to enjoy a margarita and soak up the sun?
Right in the heart of Tucson, the Downtown area is the city’s most-searched neighborhood on Apartment Guide – and it’s not hard to see why. With colorful buildings, blue skies, scenic mountains in the distance and giant cacti dotting the landscape, Downtown Tucson is where Southwestern culture meets modern amenities.
Downtown Tucson is a perfect neighborhood for the culture vulture – music, museums, restaurants and shops are everywhere you look. The area is an amazing mix of old and new; modern attractions sit alongside remnants of Tucson’s history. Get a taste of what life in Tucson was like prior to the 20th century at the Presidio San Agustin del Tucson, a former Spanish fort that’s now a hands-on interpretive center. Take a walk down Congress and you can’t miss the historic Hotel Congress, where infamous bank robber John Dillinger was arrested.
History buffs can get a break from the sun at the Southern Pacific Railroad Station, built in 1907, while families can enjoy the Carnegie Library, which is now the home of the Tucson Children’s Museum. And if you don’t feel like walking, hitch a ride on the new streetcar! The four-mile route is a green way to get around the Downtown neighborhood.
Just to the north of Downtown is Central Tucson, one of the oldest and largest neighborhoods in the city. Encompassing the Broadway Village shopping center and the University of Arizona, Central Tucson is known for being especially bike-friendly. If you enjoy getting around on two wheels, the tremendously popular Third Street/University Bicycle Boulevard provides a safe way for cyclists of all ages to get to Tucson’s best restaurants, shops, and other attractions. It’s bike-only except for light local traffic.
You’ll also find plenty of museums and art galleries in the neighborhood, which is why it’s home to the Central Tucson Gallery Association. During the summer, on the first Saturday of each month, the galleries stay open late so people can stop in for some culture and refreshments.
Northwest Tucson is an ideal spot for families and anyone who enjoys a good mix of outdoor and indoor activities. It encompasses Mansfield Park, which includes plenty of water to cool off in during a hot summer day. This three-pool complex has a diving bay with 1- and 3-meter boards; a wading pool; a 25-meter lap pool and even a water slide.
Located just north of Tucson, Catalina Foothills is one of the most affluent areas in Arizona. Popular for tourists and residents alike, it’s near several popular outdoor recreation areas: Sabino Canyon, Bear Canyon, Pima Canyon, and Ventana Canyon. The neighborhood is also known for its resorts, as well as the DeGrazia Gallery in the Sun, which is on the National Register of Historic Places.
Choose from dozens of well-reviewed restaurants, ranging in cuisine from Mexican to Japanese and nearly everything in between. When it’s time for a stroll through town, stop at any of the upscale shops or galleries that dot the streets. Catalina Foothills is the perfect place for a renter who enjoys the finer things in life.
Eastside is a small neighborhood of Tucson that includes Case Park. Bordered by E Broadway Boulevard to the north, E 22nd Street to the south, S Houghton Road to the east and S Harrison Road to the west, Eastside is an ideal place for lovers of the outdoors. Case Park includes hiking trails, large grass fields, picnic tables, a playground, and even a butterfly/hummingbird garden.
Eastside is also known for its giving spirit. The Eastside Neighbors Volunteer Program is a popular local nonprofit to help senior citizens in the area.
Go Wildcats! Home to about 40,000 students, the University of Arizona is best known for its College of Medicine, College of Law and its top-ranked geology program, according to U.S. News & World Report. UA’s degree programs in pharmacy, analytical chemistry, photography, and philosophy are also very popular.
The neighborhood surrounding the University of Arizona is full of apartments for college students who don’t want the dorm life. E University Boulevard is one of the busiest streets in town, full of hotspots for students to meet up and have fun. When it’s time for some quieter entertainment, there are plenty of museums and galleries in the neighborhood to visit.
With a median age of 18, the University of Arizona Campus neighborhood is perfect for students who want easy access to the university and local amenities.
Just across the Rillito River from the Catalina Foothills is Winter Haven, an apt name for a place where so many people come to enjoy mild temperatures while the rest of the country is snowy and cold. But that doesn’t mean the holiday spirit isn’t present – just the opposite! Winter Haven is famous for its annual Festival of Lights during the holiday season, which always benefits a local food bank. People can drive through the neighborhood to take in the lights, or take a hayride or trolley ride instead.
Another hotspot for cyclists, Starr Pass is known for its road and mountain bike paths. Located just east of the Tucson Mountain Park, which adjoins Saguaro National Park, Starr Pass is home to several golf courses, the popular JW Marriott Resort & Spa, as well as stunning views of the Southwestern landscape.
Plenty of tourists come to Starr Pass to saddle up their two-wheeled steeds and bike among the cacti, and when they return after a long day on the trails – perhaps after visiting the Arizona-Sonora Desert Museum or the International Wildlife Museum — they can relax at any number of bars and restaurants in the neighborhood.
Right near the center of town is the Broadway/Pantano East neighborhood, a residential area that touches the banks of the Pantano Wash. The neighborhood gets its name from its boundaries – E Broadway Boulevard is to the north and S Pantano Road is to the west.
Jesse Owens Park is a great place for a game of catch or to let the kids run around before they return to school at Harold Steele Elementary. You can also stock up on delicious local produce at the Jesse Owens Park Farmer’s Market, where neighbors meet every Friday to catch up and peruse the vendors’ booths.
Although it’s technically its own city, South Tucson is surrounded by the city of Tucson. It’s just one square mile but packed into that square mile are many Mexican restaurants, colorful buildings, and outdoor murals. Its population is mostly made up of Mexican-Americans and Native Americans.
Santa Rosa Park and Santa Rita Park are both great places to soak up some afternoon sun. The Children’s Museum of Tucson is near the northern border of the neighborhood. Hwy 10 – one of Tucson’s main arteries – is just to the west, making it easy to get just about anywhere else in the city.
That’s our take on Tucson! What’s your favorite thing about this vibrant Southwestern city?
Today we’ll check out “Filo Mortgage,” a newish mortgage company that says it specializes in amazingly low interest rates, world class service, and industry-leading technology.
Those are basically the three big things most borrowers are looking for in a mortgage lender, and if they can deliver on those promises, they could be a good option for both a new home buyer or an existing homeowner looking to refinance.
They also back up their pricing with a Low-Rate Guarantee and say they can close loans super-fast, often in just a few week’s time.
It all sounds pretty good so let’s take a moment to learn more about them.
Filo Mortgage Fast Facts
Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2019, headquartered in Fort Washington, PA
Currently licensed to do business in 22 states
Say they don’t charge lender fees ever
Aim to close most loans in as little as 3 weeks
Offers a $1,000 Low-Rate Guarantee
Filo Mortgage is a direct-to-consumer mortgage lender that offers home purchase loans and refinance loans.
The company only got its start back in 2019, so they’re relatively young but looking to grow quickly, with some 70+ loan originators already employed.
They essentially operate a call center and operations center, meaning borrowers will work remotely to get their loan closed, as opposed to visiting a physical branch location.
At the moment, they’re licensed in 22 states, including Alabama, Arizona, California, Connecticut, Colorado, Florida, Illinois, Georgia, Louisiana, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.
The company is big on transparency, and to that end says its loans never have any points or lender fees, ever!
Their staff is also available 7 days a week, 365 days a year to ensure they offer a first-class experience and quick loan closings, often in just three weeks.
As for their name’s meaning, my guess is it’s a combination of the words finance and low, not the delicious dough used to make pastries.
How to Apply with Filo Mortgage
Fill out a rate quote request form on their website or call them directly
If you like what you hear, you can apply over the phone or online in just minutes via a digital application
Borrowers are able to eSign disclosures and upload necessary paperwork to generate a conditional approval
They offer one intuitive place to manage and upload all your mortgage information
To begin, you can either call them directly or fill out a short rate quote request on their website.
They also offer the ability to schedule a call at a time that is convenient for you.
At that point a representative, presumably a loan officer, will help you decide on a loan program, discuss interest rates, and determine eligibility.
If you like what you hear, you can proceed to fill out their digital loan application, which apparently only takes seven minutes to complete on average.
Most tasks can be performed electronically, whether it’s linking your bank account or employment information, eSigning disclosures, or uploading paperwork.
It then only takes one day to get a loan commitment from Filo Mortgage, and perhaps better yet, the average number of days to close a loan is just 22.
And you’ll be able to track the entire loan process via their online borrower portal to ensure you never miss a thing.
Filo says it leverages user-friendly technology to keep their expenses low and make the entire process easy.
Loan Programs Offered by Filo Mortgage
Home purchase loans
Refinance loans: rate and term and cash out
Conforming loans
FHA Loans
VA loans
Fixed-rate mortgages: loan terms from 10 to 30 years available
Adjustable-rate mortgages: 5, 7, and 10/1 ARMs available
Filo Mortgage offers home purchase financing to buyers and mortgage refinancing to existing homeowners, including cash out refinances.
You can get a conventional loan backed by Fannie Mae or Freddie Mac, or a government-backed loan like a FHA loan or VA loan.
They don’t appear to offer USDA loans, and it’s unclear if jumbo loans are available.
But they lend on all residential properties from 1-4 units, including single-family homes, townhomes/condos, investment properties, and PUDs.
You can get either a fixed-rate mortgage from a 10-year fixed to a 30-year fixed, or an adjustable-rate mortgage, including a 5/1, 7/1, or 10/1 ARM.
At the moment, they do not offer second mortgages, such as HELOCs.
Filo Mortgage Rates
One nice thing about Filo Mortgage is you’ll find their mortgage rates right on their homepage.
No need to log in or provide your contact info first. Simply visit their website and click on today’s rates from the top menu to see their mortgage rates.
They list a 15-year, 20-year, and 30-year fixed mortgage rate, along with the points/fees required for said rate.
From what I saw, they offered very competitive interest rates and they were listed with $0 lender fees and no points, which seems to be their preferred setup.
In other words, the rate and APR should be the same, and they’re basically no cost loans that don’t require any lender fees or mortgage points, which is a big plus if you don’t want to pay attention out-of-pocket.
As noted, they don’t charge lender fees, though you can elect to pay discount points if you want an even lower rate.
The company also offers its so-called “Filo Mortgage Low-Rate Guarantee” that will put $1,000 in your pocket if another lender is offering a more competitive price.
Specifically, they’ll match the other lender’s pricing and credit you $1,000 at closing, which sounds like a pretty good deal and a testament to their low rates.
To qualify, simply find a lender with lower total lender costs (interest rate, points and fees) for the same conforming, conventional mortgage program on a primary home, whether it’s for a refinance or a home purchase loan.
Then send that Loan Estimate (LE) to Filo Mortgage so they can verify the pricing and terms – it must be received within one calendar day from the date Filo issues its initial locked LE.
All the more reason to put in the time to shop around with other lenders in case you do come across a better deal.
Filo Mortgage Reviews
At LendingTree, the company has a stellar 4.9 out of 5 rating from more than 600 reviews, with a 97% recommended score.
On Zillow, Filo Mortgage has a nearly perfect 4.96-star rating out of 5 from over 100 customer reviews, many of which say the interest rate and/or closing costs were lower than expected.
On Google, they have a 4.7-star rating from about 500 customer reviews, which shows how consistent they’ve been to date.
Lastly, they have a 4.7/5 rating on the Better Business Bureau website, a really strong score given it being a place customers typically go just to complain.
And they are an accredited business with the BBB (since early 2020), and currently hold an ‘A-‘ score based on complaint history.
In summary, Filo Mortgage appears to offer the latest technology, excellent customer service, and low mortgage rates with no lender fees, making them a suitable choice for both a home buyer or existing owner looking to refi.
They also have their Low-Rate Guarantee in place if you happen to find better pricing elsewhere while rate shopping.
The only real downsides are that they don’t lend in all states and may not offer every available loan program.
Filo Mortgage Pros and Cons
The Pros
They openly advertise their mortgage rates
Do not charge lender fees
Offer a low-rate guarantee if you find a better price
Can apply online via a digital mortgage application
By Peter Anderson8 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 20, 2017.
A couple of weeks ago I did a review of Betterment, a cool new super-simple investing platform that I had discovered. I have since signed up for an account, and am now investing a portion of my money with them. What I like about them is that they keep everything extremely simple for newer investors or average Joes, giving just a few options to choose from when investing. You just choose your stock/bond allocation, link your account, and start investing. You can even make it automatic every month – and they’ll re-balance your portfolio on a regular basis. Simple, and very accessible to new investors.
It seems like a lot of companies are realizing that new investors want to be able to invest, but sometimes they’re just intimidated by the number of options available to them when they sign up for a brokerage account, and they want things simplified. Because of that there has been a trend towards simplifying the process for people through sites like Betterment, and now through one of my favorite banks and brokers – ING Direct.
This week ING Direct announced that they would be renamed from ING Sharebuilder to ING Direct Investing. While the name change isn’t that big of a deal, there are also some significant changes in the works for their site as well that aim to make the site even simpler and less time consuming for self directed investors.
ING Direct ShareBuilder Renamed To ING Direct Investing
So first things first – ING Direct ShareBuilder is being re-branded as ING Direct Investing, Inc. Why the change? I reached out to Jeff at Sharebuilder:
Over the past ten years, ING DIRECT has become synonymous with simplifying savings. The thought behind ShareBuilder’s new site was to make investing as simple as possible, without all the unnecessary information that you’ll find elsewhere. The name change (ShareBuilder will always be ShareBuilder, now it’s just located under the ING DIRECT Investing umbrella) is just one aspect of trying to bring our customers a simplified investing platform.
So basically they wanted everything to start out fresh with their new website and platform that they’re launching this month. Start everything off with a clean slate. The new name is certainly direct and to the point. ING Direct Investing. Who they are and what they do right in the title. Simple.
ShareBuilder Background
From Wikipedia:
ShareBuilder Corporation, is a United States based online stock brokerage firm founded in 1996 (as NetStock Direct). It encourages recurring, automatic purchases of shares of stock, ING Mutual Funds (Class O) and exchange-traded funds. All transactions occur online and are entirely at the discretion of the account holder, thus it is an execution-only service. The company does not have brokerage sales representatives or advisors.
Account holders can use ShareBuilder’s online research tools to investigate stocks, similar to other online brokerages such as Scottrade, TD Ameritrade and Fidelity. In 2005, ShareBuilder began offering 401(k) plans to small businesses. On November 19, 2007, ShareBuilder Corporation was purchased by ING Direct, a subsidiary of ING Group for USD 220 million. In June of 2009, ShareBuilder moved its headquarters from Bellevue, Washington to 83 King Street, in the Pioneer Square district of Seattle, Washington.
ING Direct New Website And Tools
So why did they decide to simplify the website, and hopefully make it more accessible? Their press release says it loud and clear – they’ve been doing market research and found that people found doing research and investing was too complicated and confusing.
A new online survey among 1,009 investors conducted by Harris Interactive on behalf of ING DIRECT Investing shows that information overload is not helping investors make better financial decisions. More than four in ten investors (44 percent) say the amount of research available to consult — graphs, charts, financial news, social media — is “complicated,” “confusing” or “overwhelming,” according to the survey. Just 18 percent of investors say the available information is easy to understand.
“Brokerages have created a perception that investing in the stock market is complicated and incredibly onerous,” said Arkadi Kuhlmann, President and CEO of ING DIRECT. “We’re challenging these notions and offering an alternative approach that won’t force investors to be a slave to their portfolio. ING DIRECT Investing solves the issue of complexity and confusion by eliminating unnecessary bells and whistles and investing jargon.”
So 44 percent of investors find the amount of research available overwhelming and hard to understand. It’s no wonder they decided to take some steps towards simplifying.
So What Has Changed At ING Direct Investing?
So there’s a lot of talk of simplifying and making it easier to investors to invest – and not get bogged down in un-necessary details. So what specifically is changing?
Simpler, wider design: They’ve taken the site’s design and made it wider, removed un-necessary components and cut out un-needed and technical investing jargon.
More focused research: Less of the information you probably don’t need, and more focused research from Standard & Poor’s, TheStreet.com and Sabrient.
Important information where you need it: A new floating quote toolbar lets investors see important information from their account at a glance. Searches are also tailored towards users historic interests.
Portfolio management tools improvements: Their new tools will allow investors to see investments by sector, region, assets and market cap as well as by performance ratios, returns, historical pricing and more.
Better integration with ING Direct Bank accounts: You can now automatically connect your ING Direct Savings or ING Direct Checking account directly to ING Direct Investing – and set up automatic investing.
ShareBuilder Fees, Commissions And Minimums
For the most part ING Direct’s fees, commissions and minimums remain the same.
Stock Trades Cost
$9.95 stock trades
Automatic investment trades for only $4
Options Trades Cost
$9.95 per online trade, + $1.25 per contract
$7.95 per online trade, + $0.75 per contract if you’re on the advantage plan
Fees And Minimums For An Account
ING Direct Investing currently has no account maintenance fees, monthly minimums or inactivity fees. All prices are charged on a flat rate, and what you see is what you pay.
Conclusion
Personally I think that the trend towards simplified investing is a good thing as it makes investing accessible to a whole lot more people than it has been in the past – simply because they were scared off by the complexity of things. Whether ING’s changes will actually result in making it easier remains to be seen. To check it out for yourself, sign up for a free account through the link below.
Sign Up For The New Simpler ING Direct Investing
Tell us what you think of the new ING Direct Investing name, along with their redesigned site in the comments!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
52k salary is a solid hourly wage when you think about it.
When you get your first job and you are making just above minimum wage making over $52,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 52,000 per year in today’s society since it is barely above the average income and yet still below household incomes. The question you want to ask all of your friends is $52000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $52000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $52k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$52000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 52k a year hourly. That way you can decide whether or not the job is worthwhile for you.
For our calculations to figure out how much is 52K salary hourly, we used the average five working days of 40 hours a week.
52000 salary / 2080 hours = $25.00 per hour
$52000 a year is $25.00 per hour
Let’s breakdown how that 52000 salary to hourly number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $52000 by 2,080 working hours and the result is $25.00 per hour.
Exactly $25 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $3K, it would increase your hourly wage to over $26 an hour – a difference of $1.44 per hour.
To break it down – 55k a year is how much an hour = $26.44
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $52K salary Per Month?
On average, the monthly amount would be $4,333.
Annual Salary of $52,000 ÷ 12 months = $4333.33 per month
This is how much you make a month if you get paid 52000 a year.
$52k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $52k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$52000/52 weeks = $1000 per week.
$52000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1000 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$52000 / 260 working days = $200 per day
If you work a 10 hour day on 208 days throughout the year, you make $250 per day.
$52000 Salary is…
$52000 – Full Time
Total Income
Yearly Salary (52 weeks)
$52,000
Monthly Wage
$4333
Weekly Salary(40 Hours)
$1000
Bi-Weekly Wage (80 Hours)
$2000
Daily Wage (8 Hours)
$200
Daily Wage (10 Hours)
$250
Hourly Wage
$25.00
Net Estimated Monthly Income
$3308.50
Net Estimated Hourly Income
$19.09
**These are assumptions based on simple scenarios.
52k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 52000 a year after taxes?
Gross Annual Salary: $52,000
Federal Taxes of 12%: $6,240
State Taxes of 4%: $2,080
Social Security and Medicare of 7.65%: $3,978
$52k Per Year After Taxes is $39702
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$39702 ÷ 2,080 hours = $19.09 per hour
After estimated taxes and FICA, you are netting $39,702 per year, which is $12,298 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based on Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $52000 income can range from $35,542 to $41,782 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $52,000 income.
My 52k Salary Hourly Calculator
More than likely, your salary is not a flat 52k, here is a tool to convert salary to hourly calculator.
Many of the starting freight broker salaries are in this range (and before commission)!
Many teachers are hovering in this range, which may make you wonder do teachers get paid in the summer?
52k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $52000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
For many, this is when they are looking at upgrading their car to something nicer, but you must be aware of is a car an asset or liability.
As we noted earlier in the post, $52,000 a year is slightly below the average income that you would find in the United States. Thus, you still have to be wise with how you spend your money.
What a $52000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL and even MCOL city.
You should be able to meet your expenses each and every month.
Ability to make sure that saving money is a priority, and very possibly save $5000 in 52 weeks.
When A $52000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 52k a year will be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
Not using one of the millionaire quotes for motivation.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
Find low-stress jobs that pay well without a degree now.
$52K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
This is how zero based budgeting works.
If you want to know how to manage 52k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $52000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$202
Savings
15-25%
$780
Housing
20-30%
$1190
Utilities
4-7%
$152
Groceries
5-12%
$325
Clothing
1-4%
$26
Transportation
4-10%
$173
Medical
5-12%
$217
Life Insurance
1%
$11
Education
1-4%
$11
Personal
2-7%
$35
Recreation / Entertainment
3-8%
$87
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$1025
Total Gross Monthly Income
$4333
**In this budget, prioritization was given to basic expenses and no debt.
Is $52k a year a Good Salary?
As we stated earlier if you are able to make $52000 a year, that is a decent salary. You are making more money than the minimum wage and almost double in many cities.
While 52000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $52k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 52k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities 52,000 a year will not be a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 52,000 per year.
If you are looking for a career change, you want to find jobs paying at least $60000 a year.
Is 52k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $52000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Deep Dive: What Is A Good Salary For A Single Person in Today’s Society?
Is 52k a good salary for a family?
Many of the same principles apply above on whether $52000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains can you provide a good life for your family making $52,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 52,000 per year, then the combined income for the household would be $104,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $52000 Per Year?
As we outlined earlier in the post, $52,000 a year:
$25.00 Per Hour
$200-250 Per Day (depending on length of day worked)
$1000 Per Week
$1000 Per Biweekly
$4333 Per Month
Next up is making $55000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than in Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 43,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making under $45K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
In fact, this might be a good time to learn how to trade stocks with the best Travel and Travel course.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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Inside: The top 10 excuses to miss work. Here are some good excuses to use as cover stories for your absence.
Do you have a legitimate excuse to miss work?
There are many reasons why you may have to miss work. If you’re tired, hurt, sick, or otherwise unable to make it in on time, here are some good excuses to call off work that will help cover for your absence.
Your boss is crazy and your co-workers are pushing you to your limit. In reality, they really just want someone else to shoulder the workload while everyone else takes an easier workload.
If so, do not fear. There are plenty of excuses that can be used by people who really want to take sick days or vacation days off from their jobs.
So, on those days when nothing more than staying in bed sounds appealing, then read through these work excuses for a good time! Some may have believable excuses for missing work and have some fun with them!
Not only do these excuses help cover up the real reason why people are absent at work. We all know the Great Resignation is real and people are tired of working. Do really need reasons to call out of work?
Here are the best excuses for missing work…
What is the best excuse to miss work?
Well, honestly, that is the excuse that won’t get you fired.
Below is a plethora of excuses to use to miss work.
Bulletproof excuses to get out of work
The reality is that most people can’t fully enjoy their life without a job. That’s why many jobs are considered essential, like those at hospitals, fire stations, and police departments. Still others, like working at a coffee shop, are just fun.
But what happens when you have to miss work? The next time your boss is looking for someone to cover and you can’t get out of bed, you’ve got to come up with a good excuse.
If your job is anything like mine, there’s always something that needs to be done. And when I say “needs to be done,” I mean that your boss is probably standing over you while you’re doing it. So when you find yourself in a situation where you have to miss work, the last thing you want to do is give your boss a lame excuse.
So when you ever find yourself in a situation where you need to give an excuse for why you don’t want to go to work, this article will help show some good ways to come up with believable and convincing reasons for why you couldn’t make it to the office.
The top 2 best bulletproof excuses to get out of work are…
Specifically… good excuses to call off work last minute examples…
Excuse #1 – I’m sick.
If you’re not calling in sick very often, try to use other excuses like stomach issues or a high fever. It might be more believable since those are common illnesses.
Excuse #2 – I have a doctor’s appointment.
I have a doctor’s appointment and I don’t need to make up any excuses.
Simply put… there isn’t much you can do in this situation. While your employer would prefer if you schedule the appointment on a non-work day, that always isn’t practical.
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Other Good excuses to miss work
One should never be left without an excuse as there are many different reasons why you may want to miss work.
Excuse #3 – Pet emergency
Here is the soft spot for 95% of managers…their pets.
If you have a pet emergency and can’t get to the office, send your boss a message that your pet’s condition is worsening and they need to see the vet right away.
Some workplaces won’t mind if you use personal time for routine checkups on pets. A good excuse to leave work early could be just the thing you need.
Excuse # 4 – My car needs repairs
This is one of the easiest excuses to use, with or without a car. If you’re unable to get your car to the shop for repairs, let your boss know ahead of time and give them an estimate as to how long you’ll be out of work.
This will help ensure that your absence doesn’t cause too much disruption in the office.
For many driving a beater car is the norm, so repairs can continually happen.
Excuse # 5- I need to stay home with my kids because their school is closed
Honestly, this has been more true than ever since 2020!
Parents have experienced swift closures of schools for various reasons. If the kids’ school is closed and you need to stay home with them, that’s a valid excuse to miss work.
In fact, many bosses would understand if you needed to take care of your kids during a natural disaster or another emergency. Just be sure to communicate with your boss in advance if possible, and make up the time later on.
Learn specific good excuses to miss school.
Excuse #6 – I need to stay home with my kids because there is no one to watch them.
While this happens, it is also a warning flag for poor planning to make sure you have secured child care in advance.
While there are certainly valid reasons for wanting to stay home with your kids, please do not use any excuses related to your children if you don’t actually have any. This is dishonest and could lead to negative consequences.
Excuse # 7 – Wifi / Internet Issues
Computer-related issues and wifi problems are the top two reasons to call off work. In fact, according to a survey of 2,000 employees, 60% of professionals identify slow wifi or internet connection speeds as one of their greatest problems.
Workflow is impeded by these types of issues, making it difficult for people to get their jobs done. In some cases, employees have no choice but to take the day off.
This has happened in our household when a city contractor cut our fiber internet line.
Excuse #8 – A family member is in the hospital and I need to be by their side
If you find yourself in a situation where you have to take time off from work to be with a family member who is hospitalized, it’s important to communicate with your boss as soon as possible.
Make sure you know what the company policy is for taking time off and be prepared to provide documentation if needed. Let them know how long you anticipate being out of the office and try to keep them updated on the situation.
While family emergencies happen, be wary if this becomes a common occurrence with different members of your family each week.
Learn more about family emergency excuses.
Excuse #9 – There was a major traffic accident on my route to work and it will take hours to clear the roadways.
If you’re looking for a great excuse to miss work, “traffic” is always a good one.
Whether there was a major accident on your route or the roads are just backed up, it’s easy to say that you couldn’t make it in today.
However, with the availability of news and navigation apps, you better make sure this major traffic accident impedes you from getting to work and there are no other routes possible.
Also, be prepared to work remotely.
Excuse # 10 – Court date
Missing your court date isn’t something you want to do. In fact, this is something you should have planned for in advance by taking time off work.
“Contempt” is a charge for not attending court, and it is punishable by law. So, your court date is more pressing at the time.
You should always try to contact your employer as soon as possible to inform them of the situation.
Excuse #11 – Home Emergency
If you own your home, there are always unexpected issues to take care of. Plumbing leaks, broken windows, and faulty wiring can all turn into emergencies if not taken care of right away.
This is one the good excuses to miss work on short notice.
That’s why it’s important to have a plan for when these things happen. Make sure you have a list of contacts for emergency repairs and keep some money saved up in case you need to pay for them out-of-pocket.
Your boss will understand if you have to miss work to take care of an emergency at home – just be sure to mention the emergency problem when you call in sick.
Excuse #12 – Religious holidays
The holidays we celebrate are a reminder of the holidays and traditions of countries all around the world. The holidays that are recognized are usually the common holidays in the country where you are working.
However, if you are from a different country, you may want to recognize a religious holiday that is sacred to you.
This is a protected excuse to miss work. Just say, “I am observing a religious holiday that does not fall on a recognized national holiday.”
Excuse #13 – Mental Health Day
Mental health days are a great way to take a break from work and relax. Sometimes, we all need a day to just forget about our responsibilities and stressors.
If you’re feeling overwhelmed or stressed, taking a mental health day can be incredibly beneficial for your well-being.
This is a great way to take advantage of your sick time.
Bad excuses to miss work
There are a number of reasons why you might not be feeling like coming in to work.
However, it is important to be aware that some excuses may be less convincing than others. Thus, why below are bad excuses to miss work – these should not be used under any circumstance.
Employers may be less understanding if employees give excuses such as “I don’t feel well” or “I don’t have anything to wear.” Also, employers sense when you don’t feel like coming to work, so they might ask for more of a reason.
Poor excuses will make your manager tired of your absenteeism and might end up asking “What’s your excuse this time?”
Bad idea #1 – Feeling tired
There are many reasons why you may feel tired. Some of these reasons may be valid excuses to miss work, while others will not hold up in a court of law.
If you have been feeling tired and are not well-rested, it is best to explain the circumstances to your manager. This will help them understand why you may not be able to come to work.
If you have reasons to believe that your tiredness is a result of burnout or overwork, you may need to make a plan on how to discuss this with your employer.
Bad idea #2 – I just don’t feel like going in today for any reason.
Instead of saying you don’t feel like going in today, try explaining the situation to your boss and see if they will allow you to use a vacation or personal day instead.
Your boss may require a discussion about why you are feeling overwhelmed or what needs to change at work before granting such permission.
This will lead to longer job satisfaction rather than I hate my job.
Bad idea #3 – Unhappy in your job
If you are unhappy in your job, the first step is to schedule a time to talk to your manager about the issues. You may be surprised at how understanding they can be.
There are many reasons that employees may want to get out of work, but those reasons are inappropriate and could lead to disciplinary action such as termination.
If you have already made up your mind about leaving your job, do not use this as a reason for missing work if you are interviewing for another job. If you are granted an interview for another position, use a vacation or personal day.
Bad idea #4 – I overslept and can’t make it to work on time
There are a lot of excuses people use to miss work, but some are better than others. “I overslept and can’t make it to work on time” is not a good excuse.
And at the very least, buy this alarm clock and admit you messed up.
If you struggle waking up in the morning, then try some of these billionaire morning routines.
Bad idea #5 – I had a fight with my spouse or partner and don’t want to be around people
This is one of the most common excuses for missing work. It’s less documented than other reasons for calling out. Your boss should be understanding because this can happen to anyone.
More often than not, these are the times you need the most support even if it is from your co-workers. Going to work will actually be better for your mindset than staying at home.
However, you should not make up excuses to skip work. You will likely be fired if you use these excuses.
Bad idea #6 – Poor planning
It’s not always the case that an employee has missed work because of a one-time mistake. Sometimes, employees take advantage of sick days or vacation time without having a legitimate excuse. This can be damaging to their career and may lead to disciplinary action.
There are many valid reasons to call out of work, not just personal life. Employees should try to plan their absences in advance when possible, so as not to inconvenience their team or boss.
If there is an emergency situation arises, they should contact their supervisor as soon as possible.
Check the most popular planners to stay organized.
Bad Idea #7 – It’s my birthday and I’m celebrating
“It’s my birthday and I’m celebrating! I hope you don’t mind that I’m taking the day off to spend time with my family.”
This may not go over very well if you didn’t plan to take the time off in advance.
While we all what to be treated like a princess on our birthdays, we still have obligations.
This poor excuse should not be used in order to call in with no advance planned day off. Using bad excuses makes it seem like you’re not taking your job seriously and could lead to negative consequences.
Bad idea #8 – I had an unexpected issue arise at my other job or side hustle
While in reality, this may be true, don’t expect to keep the job you are calling into miss work.
There are always going to be unexpected issues that come up when you’re working two jobs or your side hustle. But, there is a reason you are hustling to make more money fast, so you want to keep both opportunities.
If something unexpected comes up and you can’t make it to work, offer to make up the day. By making a proactive solution to the problem, you are less likely to get in trouble and keep both jobs.
Bad idea # 9 – Have Another Job Interview
There is absolutely no reason to tell your current employer that you are looking and interviewing for another job.
That isn’t their business.
It is important not to tell your manager upfront that you are interviewing for another job. Telling your manager you are feeling tired is generally not considered a good excuse to get out of work.
Bad idea #10 – I had the wrong schedule
Forgetting you are scheduled for work is not an excuse to miss work.
Always call in if you are going to miss work, even if it’s just a teen first-time worker.
Nowadays, companies make it very easy to access your schedule and with everything computerized, this bad excuse won’t work anymore.
Bad idea #11 – I don’t like you
If you are having issues with management, take it up with the HR head of the department or speak with an employment lawyer before taking any action.
Dissatisfaction or arguments at work is unfortunately not a valid reason to take time off from work (unless it’s an emergency).
You must follow the company’s procedures when working with a difficult boss.
What to Say If You Miss Work and Don’t Call
Missing work can be a difficult decision to make, but it’s important to know what to say if you need to take that step.
If you don’t call in, you aren’t making things easy on yourself. You’ll have to answer questions about:
why you didn’t show up for work?
how do you plan to make up the lost hours?
how this keeps happening?
If you’re unable to show up for work and don’t want to call in, there are a few things you should keep in mind.
Employers are Desperate
First of all, employers are much more understanding than they have been in the past.
With the current economy, companies are desperate for employees and will tolerate more excuses than they would have in previous years. However, if your employer has higher standards, then these are suggestions for you to follow if you need to miss work without calling.
This is especially true for part-time jobs and jobs making around $15 an hour.
Apologize
Second of all, it’s always a good idea to apologize when missing work–even if it’s not your fault.
A sincere apology is a rarity in our society and may even help your situation.
Also, showing up for extra work when you missed it is a nice thing to do and can help smooth things over with your boss or coworkers.
Be Honest
Finally, if you are going to miss work and not call, be honest about what happened and how your behavior may have impacted the people around you.
Take the high road and call your employer as soon as possible (preferably before the start of your shift) to tell them what happened. Make sure to tell them and ensure that doesn’t happen again in the future.
Employers are desperate for good workers, so they’re more likely to tolerate poor behavior.
Most Common Reasons for Missing Work
There are many reasons why people might miss work, but some of the most common reasons include traffic, oversleeping, bad weather, and feeling too tired.
Other potential reasons for missing work include forgetting something important, being sick or injured, and having a conflict with your boss.
Whatever the reason may be, it’s important to document it properly so that you don’t get in trouble with your employer. If you have to miss work frequently, talk to your boss about setting up a plan for making up the missed time.
How do I get out of work ASAP?
First and foremost, try to avoid writing long stories or emails when trying to get out of work. This will only prolong the process and may raise suspicion. Keep it short and sweet, and be direct with your boss.
Second, make sure that you have a good excuse.
What If I Need to Take Off in Advance
Times have changed and with the new generation, employers are more flexible when it comes to taking time off from work.
In fact, many employers will now allow employees to take a day off without giving any notice at all! This is a great policy because it recognizes that people sometimes need to take care of personal or family matters that come up unexpectedly.
Of course, there are still some employers who require employees to give advanced notice before taking time off. If this is the case for you, don’t worry–there are plenty of ways to get out of work without getting caught!
Simply contact your boss and follow the procedures to take a sick day, vacation day, or just a non-paid day off.
Which of these Believable excuses for missing work will you use?
Missing work can be a difficult decision, but sometimes it is necessary. If you are feeling sick, please stay home. If you have an emergency, please take the time off to deal with it.
When you must miss work, try to provide a valid excuse that is related to your job.
There are all sorts of excuses for missing work, but some are more believable than others.
The list above includes some bad excuses for missing work that are not considered valid reasons.
Your employer will see you as unreliable if you always find yourself with an alarm clock, car, or babysitter emergencies. If your workplace is too challenging and it’s not worth the health risks associated with being sick while working, it may be time to consider looking for a new job.
Are you going to try one of these work excuses?
Know someone else that needs this, too? Then, please share!!