Opportunity Cost: What is it? Throughout the creation of this website, we have talked a lot about opportunity cost without taking the appropriate time to really define what it is and how it relates to financial independence. So what is it? The dictionary definition is “the loss of potential gain from other alternatives when one alternative is chosen”. I think a more working definition is that opportunity cost simply represents a sacrifice that must be made when one choice is made instead of an alternative one. For every decision or action that we take, something needs to be sacrificed for that decision whether it be time, money, or other resources. And because these resources can always be…
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Is College the Only Path to Financial Independence?
As graduations are occurring across the country and many 18 year olds are starting their adult paths, I felt this was a very fitting post for this week. It was actually one of my friends (a teacher, see below) who suggested the idea to me. He works with these students daily. Many of whom will be going to college soon, and far too many of this college bound group are likely going without a plan. Why go to college then, you may ask? Because that’s what you are suppose to do…Their parents, friends, teachers, and coaches have told them this was the correct/only path for the entirety of their lives. Why…
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How Far Away Do I Need to Work from My Tax Home to Still Receive My Tax Free Stipends?
Most new travelers, and many seasoned travelers will tell you about the “50 mile” rule in regards to this question. This is the rule stating that in order to qualify for your tax free stipends, the IRS requires that your assignment needs to be 50 miles away from your tax home. However, this is actually false. The IRS considers you to be traveling away from home if “your duties require you to be away from the general area of your tax home substantially longer than an ordinary day’s work” AND “you need to sleep or rest to meet the demands of your work while away from home.” These are loose terms…
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Travel Assignment #4: Minnesota, a Family Emergency
My fourth Assignment! I can’t believe I was already on assignment number four! But let’s back track a bit. As you recall, I was out in Boston, MA exploring the East coast all summer long prior to starting this assignment. During this time in Boston, my step dad was diagnosed with an advanced/aggressive cancer that metastasized to his brain. I knew I needed to finish my current assignment, but I also knew that I needed to get home as soon as possible. This was not in my plan and I expected to continue to travel the United States but this became my priority. I finished my assignment on a Friday, slept, and…
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Health Savings Accounts: Why They’re the Best Investment Vehicles
A health savings account or an HSA for short, is the best tool for investing that none of us are using. But why is that? Most of us understand our 401ks, and realize we at least are suppose to contribute up to our employer match. And if you aren’t doing that, stop what you are doing, and immediately make that change. Because you are leaving free money on the table, and we like free money. Anyways… Most of us even have some understanding of IRA accounts. Maybe we don’t understand whether a traditional or Roth IRA is better given our own situation, but we at least understand we should be…
