Your Life is Designed to Be Unhealthy

Do you currently feel healthy? Do you feel like it is difficult to remain healthy? Are unhealthy habits and temptations continually challenging your self control and motivation? Almost everyone I know wants to live a healthy life. We all want to eat well, exercise, sleep well, minimize stress, and have healthy relationships. But is it even realistic? You may know someone who seems to live a healthy life with ease. Without effort, they seem to eat well, workout at 5:00am and live stress-free. In comparison, we often contrast our ideal with the realities of working late, demanding children, rushed meal choices and relationship pressure. Is our life designed to be unhealthy?

unhealthyDesigning a healthy life happens when we understand, prioritize, and automate the important. We don’t accidentally become healthier. It doesn’t come naturally. In fact, society actually pushes us in the exact opposite direction. We have consistent pressure to complicate our lives. Do more. Make more. Spend more. Life moves health to the bottom of our priority list- often until we reach a crisis. If you have the right tool, the project is easy. However, without the right equipment (physical or mental), trying to make progress is an uphill battle. We never get traction. So, until we realize popular society (and the marketing power they exhibit) does not have our best interest in mind, we will be stuck with the mentally exhausting task of trying to live a healthy life. The solution is actually pretty simple. It involves a little planning; but all we really need to do is make healthy choices easier than unhealthy ones. That is when progress actually happens. Continue reading Your Life is Designed to Be Unhealthy

How to Start a Financial Blog

Personal finance is just that- Personal. There are many different paths that lead to the end goal of true financial freedom. I’ve certainly learned a lot from countless other bloggers who have shared their struggles and victories learning firsthand how to effectively use our money wisely. Everyone has a personal finance story to tell.

cash flowHow do you start a blog? Why start? How do you make money from blogging? I’ve been asked repeatedly about the steps to creating a successful blog. I’ve also been asked about the unique aspects about writing in the space of personal finance. Although Simple Economist covers many different topics, the underlying principles are all based on helping individuals achieve efficiency in the decisions we make. Personal finance is certainly one of the areas where we have plenty of room to grow even after reading and studying the topic for years. Continue reading How to Start a Financial Blog

(Early) Retirement Planning in One Picture

Can I retire when I’m 40? 50? Never? How much do I actually need to be saving? Retirement planning can get really complicated. In fact, it is often complicated enough that people tend to put it off or not do it at all. Is there a simple way to get an idea if we are on track? There are hundreds of complicated formulas that can be used to answer these questions. In actuality, it is pretty easy to get a quick idea of where you stand financially.

Financial planning has become a complex industry. Comprehensive planning takes into account plenty of different variables such as longevity, taxes, distributions, government programs and estate issues. Inevitably, when we try to predict the future we are required to make lots of different assumptions. However, sometimes it is nice to take a step back and look at the basics to see if we are really on track.

Retirment in One PictureThe Snapshot
So, what can you fit into a simple graphic that will give people the information they need to know if they are moving toward financial independence? A simple graph that illustrates the time it takes to reach financial independence based on your saving and spending rates. The chart above explains the amount of time it takes to retire (or become financially independent) at different savings rates. Simply find the amount you currently save and see how many years you need to work until you can retire. Or, find when you want to retire and see how many more years it will take of work to reach that goal. If you already have substantial savings, subtract out the number of years you can already cover with the amount you have saved.

Continue reading (Early) Retirement Planning in One Picture

10 Financial Assumptions That Need To Be Challenged

My goal is to challenge assumptions. If there is one persistent theme of Simple Economist, it would be that we need to challenge ourselves and constantly question the status quo. This post is certainly full of references that contain detailed explanations for many of the individual topics. The article will help bring together many different ways we need to challenge the financial assumptions that we are exposed to on a consistent basis.

debtI’m sure you have had it happen. I’m sure there has been a time where you cringed after hearing a comment, news report, or had a family member or friend make a statement based on a faulty assumption. The misinformed (or toxic way of thinking) that is used for rationalizing or marginalizing unwise choices can be tough to be around. I honestly think that is what drives me to write and publish my thoughts each week. I just see so much (often in myself) inefficiency, misinformation, and faulty assumption, that it motivates my need to organize my thoughts and put them down on paper. Do you ever question popular financial assumptions? Continue reading 10 Financial Assumptions That Need To Be Challenged