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…

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…

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…

This is quite possibly my favorite gym story that just happens to offer us a valuable lessen in finances as well. So let’s set the scene. My friend and I are just finishing up working out at an LA Fitness in St. Paul, MN. We are just talking to ourselves as we walk into the locker room.  When a guy in his early thirties approaches us. We small talk for a bit and exchange what we do for work, he mentions he works at a hedge fund. Let’s call him Chad. (A fitting name). Basically, for those of you who don’t know, a hedge fund is an actively managed portfolio…

What if I told you that you could fly on Jet Blue (love that leg room) 4 times, round trip from BOS to MSP for free in a 2 month span?? Would you be interested? Yeah me too, so I did it. I can thank all of my friends for getting married as to the why I needed to home that many times in such a short period of time.  So, how did I do it? I did it through travel hacking, or using credit cards safely, to get maximum return on my every day purchases.  And I did it using my favorite credit card for newbie travel hackers or…