Budgeting & Saving

My Plan to Travel the World and Save Half of my Income

I was working on recording a retirement episode of the WealthFast Podcast and stumbled across a pretty neat fact.

The more you save, the earlier you can retire.

The concept is pretty simple; you need about 25-33 times your annual spending rate to retire and if you save 20% of your income, you can replace your income in 37 years; assuming that your savings grow at 5% per year.

That means, in 37 years, you can retire and live comfortably on what you have saved. That seems like a long time to me.

The calculation involves dividing your savings rate by your spending rate.

20% divided by 80% in this case. This calculation gives you an annuity; how much you can add to your retirement fund each year.

Let’s assume that you decide to save half of your income, 50%. Your annual contribution would be 1.

Using a Present Value calculation we plug in the following variables; $0 current balance, 5% interest rate, 1 annual addition, -25 Future value. Solving for N, the number of years, gives us 16.6.

That’s 16.6 years until retirement!

It sure beats working in a cubicle for 40 years before retiring.

Can I Save if I Have Student Loan Debt?

If you’ve seen my recent video on Youtube, then you know that I have a plan to pay off 65k in student loan debt in less than three years. Part of this plan involves saving more money by cutting expenses.

Little did I know that by cutting unnecessary expenses and making more money, I would be able to save much more.

In fact, I would be able to save 50% of my income!
50 percent savings club
That means that each month I deposit an entire paycheck into what I affectionately call my Freedom Fund. Instead of a retirement goal, I have a debt pay down goal and a travel goal.

Is It Really Difficult to Save 50%?

I used to think that radical savers were crazy couponers that clipped and snipped for an extra 30 cents at the grocery store. Now I know that radical savers have made a lifestyle decision. A little over a year ago (84 weeks to be exact) I read this post over at Frugal Portland about how Kathleen planned to save half of her income.
save half income commenter

At the time, I was saving 10% of my pre-tax salary in my company sponsored 401(k) plan. I even commented on that post that I wanted to do the same but only if I could travel as well.

84 weeks later my plan is in place.

How I Plan to Save Half My Income and Travel

I started the blog to document my goal of travelling more. Because I am saving half of my income from my day job to fund my student loan debt payoff, I will fund my travels with half of my income from my side hustle.

Is it really so hard to believe that you can save 50% of your income and still do what you want to do, like travel the world, buy a house or pay for advanced education?

Apparently it is, because after Kathleen published this post on Yahoo about how she and her fiance planned to save half of their combined income, the trolls came out. Similarly an ugly comment was made on my 65k debt payoff video.

I guess it’s radical to save money and pay off debt.

Who knew?

And now the fun stuff. Kathleen and I are starting the “Save 50% Movement” for everyone who is a radical saver. You could be saving to pay down debt, saving to travel, or saving for a house. We’re here to encourage each other to save more. Even if you’re not quite ready to save 50%, join us and as you see how easily others are doing it you will be ready. (Let’s hope it doesn’t take 84 weeks.)

Are you radical? Join us.

How to Join:

  • Commit to saving half of your after-tax income. (If you can save half of your gross income, that’s awesome!)
  • Request to join our Facebook group to stay motivated and encourage others

Optional for bloggers:

  • Write a post declaring your goals and grab the button below to include in your post.
50 Percent Savings Club
<div align="center"><a href="" title="Save Half Club" target="_blank"><img src="" alt="50 Percent Savings Club" style="border:none;" /></a></div>

Originally posted 2014-01-22 14:40:55.

Earn Extra Income

Should I Start a Business or a Side Hustle?

Are you considering starting a business? Not sure if you should jump right in? In today’s video I answer a question from Keon about starting a business.

Start business now

I also show you the moves for starting your own side hustle.

So put on your dancing shoes.

Quiz- Start a Business or Get a Job?

Music Credits: The Hustle by Van McCoy

Did you like this video? Leave a comment, share it with a friend or tell me on Twitter! You can find me at

Send me an email at LaTisha AT youngfinances DOT com, subject line: What I learned from your videos and tell me ONE thing you learned. I love hearing from you and I read every email.

Do you have a question you’d like to ask me for the next video? Please submit it here.
Thanks for watching and be sure to subscribe!


Click Here to Download the Transcript for Should I Start My Business Now? (PDF)

Originally posted 2013-12-10 06:00:28.

Budgeting & Saving

How to Navigate Your Quarter-Life Crisis

The time in your early to mid-thirties is a time of immense growth and personal change. You may have graduated from college, moved hundreds if not thousands of miles away from friends and family, and you’re likely trying to figure out your career. While not every mid-20-year-old will experience it, the quarter-life crisis is real and affects people in different ways.

If you’ve ever questioned your life, love, or work choices, you’re not alone! As someone who has definitely experienced a quarter-life crisis, here are ways to figure things out from someone who’s been there and survived.

Face Your Quarter-Life Crisis Head On

If you’re unhappy about one or multiple aspects of your life, sit down and list out why, exactly, you’re feeling that way. By creating a list of what’s making you unhappy (or confused, or frustrated, etc.), you can determine if it’s external or internal factors that are making you feel that way.
For example, let’s say you’re feeling overwhelmed by your student debt. Your friends may be able to go out and spend more money, which makes you feel anxious because you know you have to pay rent and your student loan bill. By identifying your personal finance issue, student loan debt, as a point of stress, you can determine it’s an external factor that you can control.
In that case, consider setting yourself up on a budget. You’ll find plenty of resources here. If your student loans are too much to pay, check out student loan relief programs to have your payments lowered. Think about setting up fun, non-expensive nights out with your friends. And remember: your friends may be in just as much debt as you, but they’re living on credit cards. Not everything is as perfect as it seems!

Take Steps to Move Forward

It sounds so simple to say, but you really do have to keep moving forward during your quarter-life crisis. You may not know what you should be moving toward, or how to do it, but challenging yourself will help you grow.
If you’ve ever been scared to do something, like going back to school or starting your own business, now is the time to take some steps to make these things a reality. While we all have to pay the bills, a quarter-life crisis is slightly easier to tackle simply because you don’t have many of the responsibilities someone who is 40 or 50 might.
While you’re still young, take some calculated risks with the knowledge that time is on your side. If you want to go back to school, start taking classes in your field, ask to shadow people whose jobs you admire, or even take some free online classes. Do it now, while you’re young.

Don’t Sweat It

When I was going through my quarter-life crisis (just last year!), I felt paralyzed. I wasn’t happy in my job, so I put out a few resumes, but I didn’t hear back. I kept working while taking some free, fun online courses in social media, but I didn’t feel like I was going anywhere.
Within the span of a year, during which I applied to more jobs and created my own blog, I received a promotion into a new, exciting field, and my side business grew tremendously. If I lost my job tomorrow, I’d be able to pay my bills from my side hustle – which is a very good position to be in.
While you may feel like you’re not moving forward as fast as your other friends are, be patient and don’t worry about what you “should” be doing. You also don’t want to rush into something because you think you “should” or because others are doing it, then regret it later. Regret plus a quarter-life crisis is a recipe for disaster! Remain positive and do things that make you happy. Things will work out.
Remember, you shouldn’t compare your beginning to someone else’s middle. It will be much better for you if you don’t compare your life to your friends, because everyone takes a different path. Some people never go through a quarter-life crisis, but for those who do, every crisis looks different. The only thing you can control is your response to your quarter-life crisis. That is why it’s important determine what’s bothering you, figure out how you can move forward, and ultimately remember time marches on no matter what you do.
Have you gone through a quarter-life crisis? How did you handle it? If you haven’t gone through one, have you known others who have. How did they cope?

Originally posted 2015-12-16 10:00:22.