Welcome to the Bitter to Richer 2022 highlights post! It’s been quite a while since I started, and I’ve made a lot of progress, but it still feels like I’m just starting. Hopefully you have enjoyed my content so far, as there is a lot more to come. For all those details you’ll have to stay tuned though. In this article I’ll just be going over some of the best content I produced during 2022!
1. 10 Money Management Tips & Tricks
Everyone has their own personal finance journey, with their own trials and success stories. However, there are tons of money management tips that can help everyone out. Whether you’re young and brand new to managing money, or you’re a seasoned veteran, there are useful tidbits for everyone here! As with everything in personal finance, experiment with what you learn. If a tip is useful to you, then be sure to use it. Some of these tips and tricks also have alternatives. If you like the alternative better, then use that instead. Personal finance is all about finding what works for you and using it to get yourself to wherever you want to be.
Below are the 10 money management tips and tricks I covered in the article!
- Set Goals And Prioritize
- Stick To A Budget
- Prepare For The Unexpected
- Use Retirement Accounts To Mitigate Taxes
- Stay Realistic (To Help With Consistency)
- Set A Day To Pay Off Credit Cards, Bills, And Manage Your Finances
- Don’t Forget To Spoil Yourself
- Invest – On A Schedule
- Augment Your Income With A Side Hustle
- Always Know The Difference Between Your Needs And Your Wants
2. Stealth Wealth: How The Rich Hide In Plain Sight
Stealth wealth is a hot topic. Some people love the idea, and follow it religiously, whereas many others are confused. Some can’t understand why anyone would want to hide their wealth. After all, isn’t the whole point to show it off? The average person may not fully understand what stealth wealth even is. Well, in this article I took the time to break it down for you – what it is, the potential benefits, and how you can actually pull it off.
What Is Stealth Wealth?
Stealth wealth is basically just building up your finances, but not drawing attention to it or making many people aware of it. This involves people thinking you have less than you do. That will happen with stealth wealth because of things like living beneath your means, not sharing details about every purchase you make, and not advertising all the assets you have to your friends and family. Stealth wealth isn’t lying, although you could technically do that. Stealth wealth is just about not drawing attention to it, shoving it in someone’s face, or confirming your financial status.
3. 10 Stages Of Financial Freedom
Most people yearn to achieve financial freedom. Unfortunately, there are a lot of obstacles along the way and not everyone sees a clear path. However, I’ve broken down the path towards financial freedom into 10 stages, to make the process easier to manage!
- Your Income Exceeds Your Expenses
- You’re Able To Build Up Savings
- You Have The Luxury Of Taking Risks
- Being Able To Meet Minimum Retirement Goals
- Being Completely Free Of High-Interest Debt
- Having The Free Time To Build A Side Hustle
- Turning A Side Hustle Into A Full-Time Business That Can Replace Your Job
- Using Your Income To Skyrocket Your Investments
- Being Able To Work Part-Time Or Not At All
- Being Able To Live Off Of Your Investments In Perpetuity
4. How To Tell If Real Estate Investing Is Right For You
Investing in real estate has made many people extraordinarily wealthy. However, it has also financially ruined people who weren’t suited for it and those who didn’t do their research. We’ve discussed the pros and cons of buying a property to live in as it compares to renting tons of times. This was the first time I actually went over the ins and outs of real estate though. It’s a turbulent field, and it’s important to figure out if real estate investing is right for you before you decide to dive in.
There is a lot more to it than some of the other common types of investing, like index funds and ETFs. Here are some highlights from the article.
The Perks Of Real Estate Investing
- First up, there is the obvious perk of being able to make money. Real estate has had some pretty amazing short-term gains in the past, and because of the use of leverage, you can make an incredible return on your investments.
- Second, real estate investing has a lot of potential tax breaks. You’ll need to research the details and stay on top of it, but that can make real estate even more lucrative.
- There are tons of options when it comes to how you invest in real estate. It isn’t a cookie cutter ordeal, so you can approach it however you feel is best.
- Real estate is a real, physical asset. For some, that may not be a perk or a downside at all – it’s just a neutral fact. For many, it being a physical asset makes it easier to understand and manage.
The Harsh Realities Of Real Estate Investing
- Most real estate investing is not passive income at all. You will likely have to do a lot of work to manage properties. In some cases, it may be as much work as a full-time business.
- Historically, over the long run index funds and ETFs tend to perform better one paper. With that said, if you know what you’re doing you can certainly make a lot with real estate and outstrip the “experts” who like to day trade stocks.
- Your money will be tied up. Real estate is one of the harder assets to liquify when you need to, so that is another consideration to make based on your financial goals.
- Usually, real estate requires a lot more knowledge to do successfully than other investments strategies – like diversified ETF holdings. This isn’t the end of the world, but it’s probably the biggest reason why people who get into real estate may end up failing.
- Because you’re usually holding onto a real, physical asset, there may be a lot of maintenance involved. Lawns have to be maintained, AC has to be kept working, and the house can’t fall into disarray.
- You will require a lot more money to get started in real estate. Down payments are a thing, and they can require a hefty amount of upfront cash.
5. How Much Should You Invest
We’ve covered a lot of financial topics, and I’ve done my best to go over the common questions that I get asked. In this article I went over another one of the most common questions people send my way, and it’s one that is hard to answer. How much you should invest is a very personal matter, so it varies. In this article I did my best to break down how much you should invest as a general rule of thumb. On top of that, I went over some of the ups and downs of investing more or less than what I suggest.
Do A Percentage, Not A Flat Amount
This is just my personal opinion, but when setting investment goals I think it is best to invest a percentage of your income. Obviously that will be a fairly consistent amount, but the purpose is to make sure the amount you invest increases with your income. So, every year or so I recommend looking at your current income and adjusting how much you invest based on that. This way you can avoid lifestyle creep, to a certain extent.
Pre-Tax Vs Post-Tax
Now, whether you invest a percentage based on your post-tax or pre-tax income is up for debate. Personally, I like to use my post-tax income to set my investment goals. Unfortunately using your pre-tax income can make it a bit more complicated, but if you want to use pre-tax income that is perfectly fine. The only caveat with using your post-tax income is to remember that your 401k contributions are based on pre-tax income.
Of course, all of that sounds complicated, and if it is confusing you then don’t worry about it. Just calculate how much money you’re netting each month after taxes, then invest based on that amount.
10% Of Your Income
Investing 10% of your income should be an absolute bare minimum. Investing this much will get you on the right track, and if you make an average income or more then this shouldn’t be a difficult goal. You’ll have a decent chunk of money due to compound interest eventually, but it may not be enough. Depending on how long you plan on working, and how much money you need in retirement, you could (and probably will) fall far short of what you need.
Consider 10% a baseline. It’s a good place to start, and be proud of yourself for taking the effort to save this much. However, if this is where you’re at be sure to increase how much you invest to match where you want to be in the long run.
15% Of Your Income
Investing 15% of your income puts you at a much nicer spot. I still wouldn’t say it’s ideal, but it’s much more realistic to meet your retirement goals with this amount. If you are several decades from retirement, and you plan on living off a smaller amount once you retire, then this could be enough. With that being said, for most people 15% won’t quite cut it. However, 15% puts you in a good spot, and even if it isn’t where you need to be, it shouldn’t be too hard to catch up a bit.
It’s also worth noting, if you’re investing 15% of your pre-tax income, you should start feeling a lot more secure.
20% Of Your Income
20% is the ideal spot in my opinion. I still recommend investing more if you can, but once you’re saving 20% of your post-tax income, you’re usually in a decent position. If you started investing somewhat early in your career, and you plan on retiring at a normal age, then 20% can be enough to meet your goals in a lot of situations.
If you aren’t investing 20% of your income already, make that a priority. Follow good budgeting tactics, increase your salary, and do what you need to get there. Once you’re at 20%, invest more as you’re able, but don’t forget to avoid lifestyle creep. As your income increases, simply invest more. Do NOT increase your expenses simply because your income is increasing. Your expenses generally shouldn’t increase except after major life events like marriage or having a kid.
50% Of Your Income
To be fair, I’m well aware that investing 50% of your income isn’t feasible for most households. With that being said, once you start investing more than 20% of your income, you’ll start seeing absolutely astounding returns. If you’re able to invest 50% of your income, then you’re actually well on your way to retiring early! This puts you far ahead of schedule and gives you a lot more flexibility with what you want to do with your future. Again, I know this isn’t feasible for everyone, but it’s a worthwhile goal to try to achieve, especially if you want to retire early.
6. The DIY Guide: How To Save Money & Ideas To Help You Start
I’m sure all of us have tried our hand at DIY projects before, especially those who own their own house (or rental properties). While DIY projects aren’t for everyone, they can certainly be useful – and save you a lot of money. Even if you don’t consider yourself good with your hands, many projects require little or no background knowledge. So, for those of you with a frugal mindset, it’s time to roll up your sleeves and try some ideas out! This article is a great little DIY guide to get you started, where I showed the basics and gave you some ideas to help you start out.
The Benefits
Let’s go over the ins and outs of the benefits! You might be surprised by a few of them.
You Learn Something New
With every DIY project, you’re bound to learn something new. Some of you may appreciate it for that alone. If you think it will only be niche information, I encourage you to reconsider your stance. With time, and several DIY projects under your belt, you’ll save up a huge repertoire of information and skills. That information, and skillset, can help you with maintenance, future projects, and helping out friends or family.
It Can Help You Stay Sharp And Handy
You may not realize it, but staying active and working with your hands is a great way to stay sharp and exercise your hand-eye coordination. On top of that, with everything you’ll learn in the process, you can keep your mind active too!
It Saves Money
It doesn’t always save money, but most good DIY projects will ultimately save you a boatload. The exception to that is when you need a specialized tool for a job that costs more than hiring someone would. Even then, it’s only not worth it if you don’t intend on using that tool much or ever again. So, it pays to do some quick mental math on that one, but usually doing a project yourself will save you money.
DIY Projects Can Bring A Sense Of Satisfaction
As I said earlier, working with your hands brings a lot of people a sense of satisfaction. Beyond that, a lot of people love the feeling of being productive – which this will give you in spades. Now, it’s important to have a good amount of downtime, but if you’re idle and searching for something to do…start up some projects!
These Projects Can Help You Stay Active
Many DIY projects can help you lead a more active lifestyle. I’m not keen on saying it should replace your workout, but if your day job is somewhat sedentary then it could be a nice boost to that. Staying active also has mental benefits, as well as physical.
It Can Be A Family Endeavor
Many projects can also be done as a family, depending on the age of your children. Every benefit I’ve mentioned so far is one that you can also share with your kids! On top of that, it’s a nice bonding experience. Besides, when your children inevitably move out, you’ll want them to have the skills they need in order to be independent.
7. 20 Tips To Go From Bitter To Richer
This article was a long time coming. After all, covering the strategies that get people from a bitter place to a richer one is part of why I started this blog! If you take away only one thing from this I want it to be that you know you can always work on something to get yourself to a better place than you’re in now – no matter what your current circumstances are. That’s why I came up with 20 tips that will help you go from bitter to richer.
Even if you’re on top of things, there is always room for improvement. However, if you have found yourself down on your luck, like many people, there are always opportunities for you to have a better life.
8. The Ultimate Personal Finance Roadmap
We all have our own unique personal finance journeys. However, no matter where you want to end up, there are a lot of things you will have to do. Some of this will be unique to your plans, but everyone has a surprising amount of overlap. Once you build the foundations to your personal finance journey, it is much easier to tweak it as you need or want to. Check out the personal finance roadmap for everyone!
9. 12 Tips For Vacationing On A Budget
With inflation at a high and gas prices still recovering from their surge, it can seem harder than ever to enjoy a vacation while sticking to a tight budget. While certain things have definitely gotten more expensive, not everything has skyrocketed in price. There are many great deals to be had while traveling, and regardless of what you want to do there are ways to make your money go a little further. Whether you’re staying local or traveling abroad, there are 12 major tips I have for vacationing on a budget – while still being able to relax and have a good time!
Consider A Staycation
When thinking about a vacation, most people instantly assume there will be a lot of travel. That doesn’t need to be the case. Instead of a lavish trip to some distant destination, consider staying home for your vacation. It can still give you a reprieve from work, since you’ll be making use of your time off, but it comes without as many of the costs associated with vacationing. Obviously you can still have fun – and I’d encourage you to do things you don’t normally get to do.
If you want at least some change in scenery, you could always take a short day trip to wherever you want to go. Think about it! Is there anywhere near your home (within a few hours), that you rarely visit and would like to? Maybe it’s a shopping center, an event, or even the beach. Whatever you’re interested in, if it’s closer to your home it will let you save a ton on travel expenses.
Keep The Travel To A Minimum
As I just said, minimizing your travel expenses can save you a ton. If a staycation isn’t right for you, you can still keep the travel light and go somewhere within a day’s drive. Whether you realize it or not, there are probably ton of great tourist spots in surrounding regions. Travel to an adjacent state, see their sights and what they have to offer. Enjoy the reprieve, while keeping the travel on the lighter side of things.
See the rest in the full article, if you’re curious about all of the other tips for vacationing on a budget!
10. Budgeting: The Complete Guide
I’ve talked about budgeting before, especially for beginners. However, I thought it was about time I made a complete guide on budgeting for everyone to make use of. After all, almost all of us are budgeting, but a lot of us have different needs for our budgets. This time around I covered just about everything I can when it comes to following a strong budget.
Free Budget Template
Below you can see a picture of my free budget template! It has everything you need in order to get started. All you have to decide is how much you want to allocate to different categories each month. Of course, I highly recommend you use it, but you should also tweak it to perfectly meet your needs. To get a free copy, sign up for my newsletter and we’ll send out the budget template and a financial goals worksheet for free!
Conclusion
There we have it – 10 of my most popular posts from 2022. It was a good year full of great content, but 2023 is already proving to be so much better. If you have any topics you want to read more about, let me know in the comments!
