Browse Month: March 2019

ROMT’s “FIRE Prowess” Scores for 2001 to 2018

Image by David Mark from Pixabay

Two years ago, blogger The Green Swan introduced a metric called the FIRE Prowess Score.

“FIRE Prowess” went viral among those seeking financial independence and early retirement in 2017. Many financial bloggers, including yours truly, wrote about our FIRE Prowess Scores back then.

Since I’m finishing up my taxes, I’ve pulled together the information needed to determine my score for last year. I’ve been keeping thorough financial records for years, and enjoy tracking how my “FIRE Prowess” has changed over time.

I’m disappointed The Green Swan blog is no longer active, but their work lives on with this update!

Continue Reading

Dumb Financial Decisions: The Wrong Way to “Pay Yourself First”

Image by Goumbik on Pixabay

Many personal finance experts stress the importance of “paying yourself first.”

According to Investopedia, paying yourself first means automatically saving a portion of each paycheck. Money is routed from your paycheck directly into a savings or investment account. Before you begin paying monthly living expenses or making other purchases, you’ve already put some money into savings.

One of the simplest ways to pay yourself first is routing a portion of your paycheck into your employer’s 401(k) plan. I’ve done this ever since I started working. The savings I have built up in my 401(k) are a major reason we may have a chance to pursue early retirement! As an added benefit, many employers match a portion of your 401(k) contributions.

Continue Reading