Culinary calendar Wednesday, August 24, 2016

WednesdayDansbury Farmers Market: 8:30 a.m. to 12:30 p.m., 5 S Kistler St., East Stroudsburg. Local vendors showcase their products on the grounds of the Dansbury Depot. Vendors include Vintner's Circle Urban Winery, Gould's Produce, Top Crops Produce, doTerra Wellness and more. For information, call 570-424-7540 or email info@eastburgalliance.com.Free Bread: 6 to 7 p.m., Bethel Pocono Christian Church, 799 Milford Road, East [...]

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Hey Football Fans! We Found 4 Sports Jobs That are Hiring Right Now

It is upon us.

*Cue the dramatic music and the voice of Pat Summerall*

The boisterous cheers — sometimes becoming aggressive bellows. The unwashed lucky jersey. The edge-of-your-seat, nail-biter playbacks. The sweaty men in tight pants. The buffalo chicken dip.

It’s football season, y’all, which means I finally have weekend plans: dates with my Clemson Tigers. (Alabama fans, hush.)

But no matter your team, you can go ahead and cheer for these football-centric job opportunities and turn your fanaticism into extra money.

4 Job Openings For Football Fanatics

If you score one of these gigs, you won’t have to wait until the weekend to get your adrenaline pumping.

You can live and breathe America’s favorite pastime (seriously, it’s not baseball, Kelly!) all week long.

1. For the comedian trying to work sports into a new sketch…

The crowd probably won’t laugh.

But readers of Crooked Scoreboard might appreciate it. Its mission statement made me chuckle a few times and its featured quote did, too:

“Crooked Scoreboard taught me how to shoot.” – Steph Curry (paraphrased)

The sportswriting site is currently hiring a part-time, work-from-home managing editor who should be just as obsessed with grammar as they are with sports. Depending on experience, you could make about $300 a month — a nice tailgating fund, in my opinion.

Apply on Indeed with a short, informal statement (make them laugh, of course). If the joke pans out, you’ll take an editing test.

2. For the fan who can’t stop chatting about the latest score…

Stop for a moment and try to say Tik-A-Tap five times.

This San Francisco-based digital startup is launching in September and compares itself to a Stubhub or Ticketmaster — but for high school sports.

And it’s hiring a customer support advocate. The pay is substantial: $40,000 a year. Another perk? You’ll work full time — and remotely.

You’ll answer questions and educate users about the new service, as well as foster relationships with school administrators and event attendees. And chat about #sports, of course.

The right candidate will have a bachelor’s degree, two years of customer service experience and strong phone and email skills. Experience in high school sports is a plus (think: player, coach, umpire, volunteer waterboy or girl).

Apply to the job via Indeed, and bring your competitive edge — 100 people have already applied.

3. For the player who’s ready to join the big leagues…

If you’re a lover of the game — any game, really — you’ve likely heard of SB Nation. (SB=Sports Blog, by the way)

The Vox Media blog, based out of New York City and Washington D.C., is hiring a remote, full-time sports writer to cover college football.

The description asks that candidates feel comfortable tackling (get it?) live game coverage, Xs and Os (not hugs and kisses), recruiting, data and stats, coaching changes and everything in-between (like school color confusion).

Salary depends on experience. There’s also no college degree or structured training requirement. As long as you have experience covering national college football, can crank out a good, clean story and use social media, go ahead and apply.

You’ll be expected to work Saturdays and Sundays during the season, but I suspect some of your work will involve keeping up with the scoreboard and flipping between games.

The only catch? Your cover letter should only be 140 characters, like a tweet. Check out the job listing for more information and be sure to peruse Vox Media’s other job openings, too.

4. For the one who’s convinced high school football is the NFL…

Ugh, you’re one of those. But I understand if you’re from Texas because, well, Friday Night Lights.

And you’re not the only one in the big state of Texas. TexasHSFootball.com claims to be the fastest growing media company in Texas, with 2 million unique visitors.

And it’s not just about high school — it covers Texas’ college and NFL teams, too.

The website is hiring a work-from-home writer to contribute at least two clean articles a week. You’ll research and develop news articles and coordinate photos, receive press releases and snag interviews. You’ll be trained for it all, too.

If you live in Texas and can start as soon as a QB says “hut, hut, hike,” then apply via Linkedin.

Pssst… The site’s also hiring social media, photography, marketing and videography interns, but those the positions are paid in experience.

Your Turn: Who are you rooting for this football season?

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder and a Clemson alumna. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post Hey Football Fans! We Found 4 Sports Jobs That are Hiring Right Now appeared first on The Penny Hoarder.

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Top 9 Best Online Savings Account Banks – Start Making Interest Today!

I remember a time when the best online savings accounts paid annual yields of 4% to 5%.

Those days are long gone. LONG gone.

Thanks to the low-rate environment, it’s not a surprise that for the past several years my clients have been griping about how their savings accounts are pay next to nothing, even from the best high-interest savings accounts.

Once you factor in fees that some banks charge, it might feel like you are paying the banks just to keep your money with them.

Does this sound familiar?

As painful as the interest situation is, looking for a top savings account to stash away some cash for a future financial goal or an unexpected emergency should be part of your financial strategy. But it can be hard to get excited if you don’t feel like you are earning any interest on your money.

Sure, interest rates are starting to go back up, but slowly. VERY slowly. But before you automatically start grumbling about how useless savings accounts are, hear me out first.

There are still plenty of online banks that offer excellent savings accounts. Don’t let you money sit in a savings account that’s going to be eaten by annual fees. You shouldn’t have to pay to let you money sit in a savings account.

In this article we will explain the importance of a great online savings account, why you need one, the types of savings accounts, and which ones will work best for your situation. Sure, you could spend hours searching for the best account, but why not let us do the work for you

Why you need a savings account

With so many options for storing your money and the low-interest rates, a lot of my clients ask, “why do I even need a savings account?” and honestly, that’s a great question.

The first reason is the obvious one – you get a slightly higher interest rate, and earning a little interest is better than no interest, right? But the interest you earn isn’t the only reason to find a good online savings account.

The other reason is a little more obvious, it forces you to save that money. Federal regulations limit the number of times that you can withdraw money from your account. If you can keep taking money out of the account, it’s going to encourage you to save. There are hundreds of thousands of places that you can open up a savings accounts, but all of them basically break down to three categories, traditional savings account, online savings account, and kids savings account.

Top 9 Banks to find the Best Online Savings Account

All the banks on my list are great places to stash your cash. However, my top savings account pick is is Capital One 360

1. Capital One 360 Savings Account

I’ve had an account with Capital One 360 Savings longer than I have with Ally. That’s because Capital One 360 (formerly ING Direct) was one of the first reputable online banks to exist. Capital One 360 is easy to use, secure, and you can connect your account to your other accounts, including your Capital One Investing account.

Here’s what you get with Capital One 360:

• Extremely competitive interest rate. The difference in rates between Capital One 360 and other banks is so small most people wouldn’t notice. If you aren’t seeking absolute best interest and are looking at the bigger picture, keep reading.
• No minimums. Like Ally, you won’t be hit with any minimum balance fees nor will you have to send a ton of money to open an account. You can open an account with as little as $1.
• Easy deposit options. Opening an account is easy — you just link a checking account from another institution like you would with any other bank. Then you transfer your funds over. You can also set up an automatic transfer. This is a great way to save up for your short-term goals. If you know you need to save $1,000 for a trip, you can set up your Capital One 360 Savings Account to withdraw $200 each month from your checking account for the next five months.
• Easy access and management. Capital One 360’s user interface is one of the best around. One of the unique things Capital One 360 offers is “sub-accounts” where you can open up mini-accounts to hold your saving goal money. So you can have a main Savings Account, but have mini-accounts for Vacation Fund, Emergency Fund, and so on.
• Other account options. You can start with a savings account and grow your finances with ING. They offer a robust set of accounts ranging from checking to savings to CDs, mortgages, and investing.

If you compare Ally and Capital One 360 you won’t find much difference in interest rates. Capital One 360 has been around longer from an online banking standpoint, and they are definitely trustworthy. Open an account with Capital One 360 today.

2. Chase Bank – Best Signup Bonus

Chase Bank is not as competitive on the interest rates, but they do have the best signup bonuses of any bank in the country.  You have to jump through a couple of hoops to get the full $250.  You get a $150 bonus for setting up a Chase Total Checking® account and setting up direct deposit.  You then get an additional $100 bonus for setting up a Chase Savings(SM) account and depositing $10,000 or more.  If you already have a sizeable emergency fund this might be a good way to net an extra $250 in your favor.  The details of the offer are:

• Get up to $250 when you open a new Chase Total Checking® account with Direct Deposit and/or open a new Chase Savings(SM) account, deposit $10,000 or more in new money and maintain a $10,000 balance for 90 days
• Get a $150 bonus when you open a new Chase Total Checking® account and set up direct deposit
• Get a $100 bonus when you open a new Chase Savings(SM) account, deposit a total of $10,000 or more in new money within 10 days, and maintain a $10,000 balance for 90 days
• Access to over 15,500 Chase ATMs and 5,300 branches
• Chase QuickDeposit(SM) lets you deposit checks almost anytime, anywhere with the ease of taking a picture. Just point, snap, and deposit.

Chase is also a big bank for physical locations with thousands of branches and ATMs across the country. Open an account with Chase today.

3. Compass Bank BBVA

Compass isn’t the most popular bank on our list, but it’s one you should know about. BBVA Compass is one of the top largest U.S. commercial banks based on deposit market share. They offer a wide variety of products and services, everything from small business loans to online savings accounts (because that’s why you are here right?)

• Interest rate. BBVA Compass offers tiered interest rates that compound to make your money grow faster.
• Low initial deposit. While you are required to make an initial deposit, it’s a minuscule $25.
• Account options. You’ll have the freedom to choose between several different account types: Everyday Savings, Money Market, or CD account.
• Beware of fees. One of the few negatives of BBVA is their monthly service fees that come along with their accounts. It’s only $15 a month, but it’s something that should be noted when opening up an account.

If you haven’t heard of Compass Bank BBVA, you should take the time to familiarize yourself with the organization, their online savings account will make it worth your time.

4. Discover Bank

Discover moved into the banking business a few years ago. Their rates are competitive with other online products, so it is definitely a firm to include in your search for a top savings account.

The product offerings are similar with Discover, but I really like Discover’s online CD. The rates on the CDs are very nice compared to some other players in the industry.

Here’s what you get with Discover Bank’s Online Savings account:

• Great interest. To attract customers, Discover often has some of the highest interest rates available.
• Several account options. You can start with a savings account and expand to an online certificate of deposit, IRA CDs, or a money market account.
• Low minimums. This is the only place that you might downgrade Discover on a bit. The other institutions on this page require no minimum or a super low deposit to open an account. Discover requires a $500 minimum deposit. However, there are still no minimum balance requirements or fees for going below $500, so it isn’t much to worry about once you get your account open.

If you are interested in creating a CD ladder to reach a goal or as part of your emergency savings strategy, Discover is a great place to start.

5. USAA – Best for Military

*Be aware that you must have a family member this is serving/has served in a branch of the military to open an account with USAA.

Aside from being an exceptionally reputable organization, as an online savings account, USAA offers several unique benefits that the other banks on this list don’t. You can get a HUGE variety of different products with USAA. They offer just about any financial or insurance product you could ever need, and having all of your account and product in one place is an impressive advantage.

What you’ll get with USAA

• Use just about any ATM. If you ever need to get money out of your online savings account at an ATM, you don’t have to worry about those ATM fees. You will be able to use more than 60,000 “USAA-preferred” ATMs for free. They will also refund you the fees of any ATM that isn’t one of the preferred machines.
• Low initial deposit. Similar to some of the other accounts, USAA does require an initial deposit, but it’s only $25.
• No fees. With a USAA savings account, you will not have to may any service fees or any fees if you transfer money to another bank.

If you have a family member that has ever served in the military, it’s worth checking out an online savings account with USAA.

6. Ally Bank

Ally Bank is one of my favorite banking institutions. (Yes, we bloggers are a weird bunch and have favorite banking institutions while the rest of the world goes about their normal lives.)

Why do I love Ally so much? Let me quote myself from an article earlier this year, Best Online Checking Accounts:

Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service.

I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time. In the linked article above I told you how great Ally’s checking accounts were, but the saving options are great, too.

Here’s what you get with Ally:

• High yield interest rate. You won’t earn more interest with a reputable online bank.
• No minimums. At all. That means no minimum deposit, no minimum balance requirement. No minimum balance fees. In fact, you can open an account with as little as $1.
• Easy deposit options. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, wire transfer, or simply scanning in your deposit.
• Easy access and management. The user interface is top-notch and you’ll be able to transfer funds to and from your other bank easily.
• Other account options. You can start with a savings account and grow your finances with Ally. They offer a robust set of accounts ranging from checking to savings to CDs and IRAs.

Ally is built on not gouging customers for every penny they’ve got. That’s a great bank, and one of the reasons I use this bank in addition to Capital One 360. Open an account with Ally Bank today.

7. Synchrony Bank

Synchrony has gotten very competitive in offering the some of the highest interest rates for deposits. They do not offer as many products as many of the other online banks, but they put their focus on what they are good at — vehicles for saving.

Here’s what you get with a Synchrony online savings account:

• High Interest – Synchrony is dedicated to being competitive on interest rates to attract new clients.
• Low minimum – It only requires $30 to open an account and you avoid a $5 monthly fee by maintaining a balance of $30 or higher.
• Easy Access – Many of the online banks only let you do transfers. Synchrony also has a debit card option to make accessing your cash easier.
• No Balance Dependence – Some banks increase your interest rates the more money you put in. Synchrony gives you the same interest rate no matter how much or how little you put in.

8. American Express High-Yield Savings Account

Just like Discover, American Express, the credit card company that offers fantastic cash back now has a banking arm that offers great interest on your account.

Rates are currently very competitive with some of the larger, well known online banks. Account access is not as sophisticated as you see with other banks, but you don’t need that sophistication if you are just looking for a solid place to keep some of your cash. If American Express Savings offered a full suite of financial products like mortgages and checking accounts on top of the savings account and CD, I would be more concerned about the website. But this is a pretty basic product: deposit money, earn interest, watch it grow.

AMEX also has a 36-month CD that you can drop your money into to earn a slightly higher rate of return. However, the difference is so small that I can’t recommend locking your funds up for 3 years. (If you elect to close a CD before its maturity date you pay back 3 months of interest. That’s dumb.)

Here’s what you get with AMEX’s High Yield Savings Account:

• Great interest. To attract customers, American Express often has some of the highest interest rates available.
• Simple options. You have two account options: high-yield savings and certificate of deposit. Two simple choices rather than an array of confusing options.
• No minimums. You don’t have a minimum balance requirement, and you don’t get hit with a fee for letting your balance get too low.

Whichever way you go, you’ll end up with American Express’ renowned customer service to back you up. You probably won’t need it, but it is always nice to know it is there.

9. CIT Bank Savings

If you are looking for a bank to just store some of your cash in for a rainy day, CIT Bank is a great choice. CIT Bank focuses on CDs and savings account, and also IRA options.

You might think, “Why would I go with a bank that just does that instead of one with more options like online checking?”

That’s an understandable question. CIT Bank is in the upper tier of interest rates for all of these institutions, and in some cases comes out ahead of everyone else. On top of their high interest rate they also offer a bonus rate tier for customers that have more than $25,000 saved with them. Essentially, it is a loyalty bonus. Not many banks reward you for being extra loyal.

Aside from the great interest, I think it is sometimes a good thing to limit your account options at a bank. If you open up an account with checking, savings, CDs, investment, and so on it can get tempted to pull money out of the savings or CD to refill your checking account quickly. Having them separated requires more financial discipline at the cost of a little bit of convenience. I think the extra interest you are earning is worth it.

Here’s what you get with CIT Bank:

• Upper tier high yield interest rate with high deposit bonus tier. If you deposit a lot of money with CIT, you won’t find a better interest rate anywhere else online.
• Low minimums. CIT does have a minimum of $100. That’s measly. And honestly, with any of the banks on this page if you saved just $100 you’re going to earn a whopping $1 interest max in the first year. You need to save more money, but CIT requires $100 to get started.
• Easy deposit options. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, or wire transfer.
• Easy access and management. The user interface is easy to use. You’ll be able to transfer funds to and from your other bank easily.

If you are looking for a place to store some cash for a rainy day and want to earn a great interest rate in the meantime, definitely take a look at CIT Bank.

A New Option: Digit.co

Another interesting savings option is Digit.co. This is a bank that uses an algorithm to determine how much money to transfer from your checking account into savings every few days. By tracking your income and spending habits, Digit.co can determine how much extra money should be going into savings. Digit promises that it’s automatic transfers won’t overdraw your account. The interest paid is very small, but it does exist. This is an account for people who want to save without needing to think about it.

Getting access to your money is easy; it’s all done through text. You text simple commands to change how much you save, to check your balance, and to withdraw to your own account. Most of the time, once you text that you want to withdraw, the money is there in the next day or two. This is a great account for saving up for a night out each month, or for other entertainment.

Consider your savings account needs, and do your research. With the right approach, you can get the most efficient use out of your money.

What to Look for in a Top Savings Account

There’s no need to let your money sit in an account that doesn’t pay any interest at all. That’s one of the worst things you can do with your money because the value of your money will slowly go down due to inflation. You need to generate some interest to combat inflation just to maintain the spending power of the money you have. However, even the highest yield savings account is unlikely to beat inflation.

Then again interest isn’t everything. There are other considerations as well when choosing from among the top savings accounts.

Interest – High Yield

For me, interest comes first. Generating interest helps protect your money from inflation. Even if inflation is really low, getting some small interest on the side will help you bolster your account over time. Interest isn’t the only important factor, but it never hurts to have someone paying you to store your cash with them.

Don’t get too caught up in chasing yields, however. Most of the time, the difference between accounts isn’t enough to prompt you to move your money every time a bank comes out with a newer, higher yield.

Customer Service

Having great customer service is another key aspect of a great savings account. If you earn a little bit more interest at one bank but the customer service is awful you will probably regret it. I like to stick to firms that have solid reputations or that I’ve had previous experience with.

The accounts on this list all offer good customer service and a good user experience.

Access

You want easy access to your funds. If you have to jump through a lot of hoops to pull money out of your emergency fund during an unexpected setback, it defeats the purpose. Other considerations when you look at savings account access:

Do you have to go to a physical branch? Or can you transfer funds online using your smartphone? What about ATM access? Can you withdraw money at ATMs across the country for free, or at least get reimbursed for the fees you do pay? Access can be a tiebreaker when you are comparing two very similar banks.

Understand the Purpose of Your Savings Account

Saving for future purchases and expenses is one of the best things you can do to stabilize your financial situation. Rather than using credit spending (and winding up in debt if you don’t pay off the balance each month), identifying your spending goals and saving up can help you buy the things you want — without ruining your financial future.

You should also understand that keeping an emergency fund available for a rainy day can be a good idea. What happens when the car needs repairs or you need to replace the dryer? An emergency fund can protect you from the need to borrow in order to meet these unexpected expenses.

While a high-yield account would be nice, it’s important to recognize that your savings account isn’t meant to help you build wealth so you can fund your retirement (learn more about investing for retirement through a Roth IRA). Rather than expecting high yields from your savings account, here’s how to think about it:

Liquidity: One of the biggest advantages of a savings account is the liquidity. Because it’s cash, it’s instantly available for you to use. You don’t have to sell shares and what for the proceeds of the sale, or jump through hoops to get your money. It’s available immediately.

This is what makes a savings account ideal for an emergency fund. You know you can get to the money immediately if you need it. The liquidity also makes it great for access your money for a short-term savings goal. You know that you will be able to pay with your savings account when you need to, or you can use the money to instantly pay off your credit card after you’ve used it to book your vacation (and earn the points).

Safety: The other reason to incorporate a savings account into your financial strategy is so that you can keep the money safe. You don’t have to worry about losing your vacation money in the stock market when you keep it in a savings account. You know the money is there when you need it for an emergency with your savings account. Plus, if your account is with a federally insured institution, you don’t have to worry about losing your money if the bank fails.

Stop thinking of your savings account as a place to help you grow your wealth, and instead think of it as a way for you to protect your assets and keep your long-term financial situation from deteriorating due to debt. You can also think of your savings account as a way to help you save for short-term goals. As long as you incorporate a savings strategy along with an investing strategy that allows you to build wealth over time, you should have a balanced approach to your overall financial plan.

Whether you are saving up an emergency fund or just preparing to spend money on a nice vacation next year, you need a great savings account to hold your money. Here are my favorite places to wring as much yield as possible out of your savings account.

Types of savings accounts

There are a few different types of savings accounts, but don’t worry, the main idea is still the same.

Bank Savings Accounts

This is the traditional idea of a savings account at a physical bank. You can walk into any local branch of a bank and open up one of these savings accounts. Normally, these accounts have maintenance fees and low-interest rates.

Online Savings Accounts

These accounts work almost identical to a traditional savings account except you manage the whole account strictly online. In most cases online savings accounts offer slightly better interest rates because they have lower overhead costs.

Savings Account for the Kids

Maybe you want to open up a savings account for your kids, that’s a very good idea! Some banks have savings accounts specifically designed for kids, but don’t’ worry, you’ll have control over the account. It’s a great way to teach your children about managing money.

***Please note that some of the links above are affiliate links which means I get paid a small commission if sign up through my link.

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How This 30 Year-Old Made a Foolish $647,365.90 Investment Mistake

He was supposed to be my success story.

I talked to so many young people about investing, but the lessons never “clicked” for the majority of them.

I’m not sure why it was different this time, but it was.

It was over 12 years ago and I had just spoken to some local high school seniors gearing up for graduation. I talked at length about investing, mutual funds, compounding interest, and the Roth IRA.

This wasn’t the first time I had spoken at our local high school, so unfortunately I knew what to expect.

I expected to see blank stares, kids whispering to their friends, and a whole lot of indifference.

But for this young kid, it was different. He was paying attention. He was actually listening.

At the end of my talk, this smart young man approached me and asked for my business card. He said he was excited about the idea of investing and wanted to start putting in $50 a month. There was no way that I was going to badger him and make him invest, so I gave him my business card and put it on him to contact me.

Low and behold, he did. And unlike other kids his age, he was working part-time at a local cellphone provider and could actually afford to invest $50 a month. When I ran the numbers for him and showed him what $50 a month could grow to over the next 30 and 40 years, we both became excited for his future.

Fast forward six to nine months and it got even more exciting. Why? Because he started to increase the amount of cash he was investing every month. Starting out, he increased it to a $100 investment per month. After that, he boosted it up to $150, then $200. At that point, a combination of things happened.

First of all, he bounced around with a few different jobs after college and struggled to decide on a career. Worse, he got scared. Even though we talked in great detail about how he didn’t need this money right now, he was still freaked out when the market began to drop.

So, instead of sticking with his monthly contributions to his Roth IRA, my prize student quit. He went cold turkey. Even though I drove the idea of what he could potentially have decades down the line home, he didn’t have the same fire in his eyes like he did when we first met.

That 18-year-old kid is now a 30-year-old man. And when you look at where he should be in his Roth IRA, you can tell he’s not even close. Worse, he’s taken some distributions over the years. The last time I checked, he had just under $3000 – a far cry from where he should be at.

I’m not sure what made me think of this young man again, but it got me curious to think where he would be if he kept at it.

Using one of our mutual fund databases, I was able to go back and input what it would look like had he invested the $50 a month until now.

Here are a few examples. Before we look at these examples, here is a snapshot of the mutual fund he initially started with. This mutual fund at the time was one of the top in its category. As you can see now, it has performed below average these last few years.

The Numbers

In this first example, we’re assuming this young investor was putting in $50 a month and continued to do so until his 30th birthday. By investing just $50 a month by the time he was age 30, he would’ve accumulated $12,325. That’s not bad for a price that’s the equivalent of a gym membership every month.

In the next example, I tried to mimic what it might look like if he continued down the path he was on. If you recall, he started off at $50 a month but was able to increase that for the first couple of years.

In this example, I’m assuming that he started at $50 a month and then increased that by $50 a month each year. So, by the time he was thirty-years-old, he was putting in $7,150 per year.

Note:  I know I mentioned the last time that this was in a Roth IRA and I know that exceeds Roth IRA limits, but just work with me on this one.

So in this example, his investment would’ve grown to $73,181. This represents 24 times more than what he currently has, just if he would’ve stayed the course.

So in the first example, had he continued with the $50 a month all the way to age 30 and then up to age 60, his ending value would be $159,350.47. Not bad.

Still, I had some difficulty trying to show what would happen if he increased it $50 a month every year for the next 30 years. For the sake of simplicity, for the next calculation, we’re going to extend the second calculation of him increasing $50 a month every year up until the age of 30, then make it a flat $50 a month for the next 30 years. Even at that amount, and with a 7% return on his money, his final balance at age 60 would have been $647,365.90.

Wow.

$647,365.90.

Can you believe it?

There are so many lessons to be learned here. Let’s dive in.

5 Lessons from a $647,365.90 Investing Mistake

First of all, I’m not trying to shame my friend here. Like many would-be investors, he started out with the right idea. Then life happened, just like it does for the rest of us. Even though he made some mistakes, he was likely just rolling with the punches like anyone else would do.

Another positive for my former student is that he is still only thirty-years-old. Even though he missed out on some serious growth until now, he still has time – time to start over, time to reignite his passion for investing, and time to turn things around.

But, what can you learn from this? Trust me, there are a slew of lessons here that anyone can apply. Let’s start at the beginning.

Lesson #1: Compound interest is magic.

There’s a reason compound interest is referred to as the “eighth wonder of the world.” With enough time, and with compounding, even small amounts of money can help you grow fabulously rich! To get compounding on your side, however, you need to start investing early – real early.

The example I shared in this story illustrates the magic of compound interest perfectly. With compounding, money grows on its own and compounds continually without your help. And when you keep investing month after month, the value of your investments can grow and expand in ways you wouldn’t believe.

Remember, the numbers do not lie. 

If you want to see how compound interest could work in your favor, play around with a compound interest calculator on your own. What you find might astound you.

Lesson #2: You have to invest for the long-term!

Here’s another important lesson you can gain from this story: If you want to grow wealthy, you have to invest for the long-term. My prize student allowed himself to become “spooked” by a fluctuating stock market. Worse, he took distributions from his Roth IRA  along the way.

No matter what, you can’t let the markets get you down. To grow your wealth and net worth, you have to keep investing every month no matter what – even if the market drops, or if you don’t feel like it, or when you’re scared. If you let fear and life get in the way, you’ll miss out on years of growth that could help you grow rich.

Lesson #3: Even a sub-par investment choice can help you grow rich when time is on your side.

One really amazing thing about the story I shared above is that my former student’s Mutual Fund wasn’t even doing that great. Like I mentioned already, its performance was only so-so.

This just goes to show how taking a long-term approach can help you grow wealthy regardless of whether you make the optimal choice. Every time, investing in something will leave you better off than if you had investing in nothing at all.

Because so many people fear investing and making the wrong choices, this lesson is important. Remember, when you’re investing for the long haul, the worst mistake you can make is sitting on the sidelines. 

Lesson #4: Investing in a Roth IRA means tax-free money later.

Remember how my student invested the bulk of his funds in a Roth IRA account at first? Because investments made into a Roth IRA are after-tax, your money grows tax-free. Even better, you don’t have to pay income taxes on distributions from a Roth IRA once you reach retirement age. Does it get any better than that?

If my friend had continued throwing money into his Roth IRA, he would have a huge nest egg of tax-free money to draw from in retirement. Can you imagine how freeing that would feel? Can you imagine the sense of security that would bring?

If you think your “future self” might want some tax-free cash, the time to get started is now. As long as you qualify, you can open a Roth IRA and start investing right away.

Lesson #5: Automate your finances, then leave them alone.

The final lesson is another big one. Consider the same scenario above, but imagine my student had automated everything. Instead of manually investing his money each month, let’s say he set up automatic deposits into his investment account. And because his investments were automatic, let’s pretend he forgot about them and left them alone.

Obviously, my student would be much better off if that were the case. If he had automated his finances and left them alone, he would be so much better off.

If you’re worried about stressing over the markets or getting off track for any reason, automating your finances can help. Once you choose long-term investments and set up automatic deposits, you can move on with your life and let your investments and compound interest do the rest.

Final Thoughts

It’s fairly common to hear about investing mistakes. On the evening news or among friends, you might hear stories of people who lost huge amounts of cash in real estate or business deals, or by betting on a single stock.

Those stories are definitely worth hearing, but they don’t go far enough. In reality, the biggest investing mistake you can make is not investing at all.

No matter what you do, you have to stick with it for the long haul and get out of your own way. And if you ever need a reminder, all you need to do is run the numbers. As illustrated above, the numbers don’t lie.

This post originally appeared on Forbes.

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9 Companies Now Hiring Seasonal Workers — Including Work-From-Home Jobs

I know: We prepare for the holidays way too early.

I cringed as I walked through HomeGoods this weekend and saw Halloween pumpkins.

It’s August, people.

But as stores flood with decorations and flavored essentials (peppermint Hershey’s Kisses are my fav), companies are simultaneously increasing their staffing to help meet demand and avoid holiday disasters.

That’s right. Premature — and last-minute — shopping could be your new source of income, just in time to start your own holiday shopping.

These Companies are Hiring Seasonal Workers for the Holidays

Because no one likes to get lost in the job search, we found several companies hiring seasonal workers.

And remember: It’s August, so keep checking back to find companies with new job postings. In the meantime, start shopping — I mean looking — for your next job.

1. Amazon

Amazon is hiring work-from-home customer service associates to “swiftly respond to spikes in customer needs.”

The catch? You have to live in one of these states:  Arizona, Colorado, Delaware, Florida, Georgia, Kansas, Kentucky, Michigan, Minnesota, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Washington, West Virginia, Wisconsin or Virginia.

See your state listed above? Great. Keep reading.

Other requirements include a high school diploma or equivalent; basic typing, phone and computer skills; the ability to participate in paid training; be able to complete I-9 paperwork in person; be able to take on any shift from 3 a.m. to midnight (Pacific time) any day of the week.

You should also be able to meet all computer requirements, but Amazon will ship you a headset for your customer service ease.

2. Best Buy

Because who doesn’t need more technology in their lives?!

Best Buy is hiring a number of entry-level warehouse workers and equipment operators. The qualifications are straightforward: Be able to carry, lift, push and/or pull at least 40 pounds. A high school diploma is preferred but not required.

Equipment operators also need to be able to lift and be certified to operate certain machinery. Pay is solid: $15.90 per hour.

And if you’re like me and can barely lift a 10-pound weight? The company is also hiring Geek Squad consultation agents and sales associates. (The Elk Grove, California, location is hiring someone to handle the gaming section, too. Score!)

Stay tuned for other openings across the country as the busy season nears and the Black Friday lines start to form.

3. JCPenney

JCPenney is going all out, posting nearly 2,300 seasonal job openings in late August. Many of these positions are for operation and sales associates — no prior experience required.

The job description for the operations association actually got me pumped: “Do you like working with your hands and staying active? Do the words “order” and “process” get you excited? Do you enjoy making things happen behind the scenes and seeing your work flourish on stage?”

As a member of the operations team, you’ll work primarily in the backroom — away from frantic shoppers — and handle orders and merchandise.

If you’re a people-person, you might enjoy the sales position better. You’ll say things like, “Hi, can I help you find anything today?” and answer questions. You should keep up with displays and keep the floor tidy.

Some of the positions are more niche — like in the jewelry department — so keep an eye for those gems.

Go to JCPenney’s career page to peruse thousands of listings — or just search for your place of residence.

4. Kohl’s

This go-to retail chain is hiring seasonal distribution center associates and customer service representatives.

As a distribution associate, your job includes a lot of verbs — even some made-up ones — including “picking, packing, replenishment, shipping, receiving, inventorying and re-warehousing” materials. You’ll need some muscle and endurance to work 8- and 12-hour shifts.

If you can’t lift, look into the customer service representative jobs. These start Sept. 12 with a three-week, 9 a.m. to 6 p.m. training schedule in Dallas. Here, you’ll assist online shoppers with any issues they may run into.

Pay for both of these full-time jobs is hourly, but not stated on the company’s site. Glassdoor reports customer service associates make an average $8.76 per hour.

For more information, or to check in on any recently posted seasonal jobs, visit Kohl’s career page.

5. Macy’s

I don’t even shop at Macy’s, but I love the feeling the brand gives me — the nostalgic Thanksgiving parade and those star-studded, heart-warming commercials.

And apparently I’m not the only one who gets dragged in; Macy’s has nearly 2,000 seasonal positions available to meet its high demand.

Positions include retail merchandising and receiving, fitting room associates and even costume characters. Minneapolis needs a Mrs. Claus and elves!

Most listings don’t call for any education accomplishments. The biggest thing is that you’re flexible with scheduling. (Hint: Black Friday.)

Search Macy’s career page to see what your location is offering.

6. Target

This retail black hole (as in I could spend hours and substantial dollars in this place) is hiring a slew of seasonal workers across the country — from packers and warehouse workers to operational team members and sales floor team members. (You’ll catch me over in the candle aisle.)

I recommend checking out Target’s jobs website and searching “seasonal.” Be careful to note the date of the job posting; don’t waste your time on any outdated ones (i.e. last January).

You can also sign up for emails, so new job openings will pop straight into your inbox.

7. Toys R Us

Confession: As a kid, my favorite Toys R Us purchases were those troll dolls, which I can now apparently sell on eBay.

But if you’re not lucky enough to get bids on your creepy taste in toys, consider snagging a seasonal gig at the store — after all, Santa can’t possibly hand-make all those toys.

Toys R Us is hiring a number of positions across the U.S., including warehouse operations team members in Flanders, New Jersey; Stockton, California; Midlothian, Texas, and McDonough, Georgia.

Your main responsibility is loading and unloading all cartons and pallets of trolls — and other toys, which can weigh up to 50 pounds.

You also shouldn’t be scared of heights, as you’ll sometimes work on 40-foot catwalks. Long arms will help, too, as you’ll need to shrink-wrap large, bulky items.

Not feeling the physical work? Me neither. Check out the other open positions on Toys R Us’ career page.

8. Skullcandy

Skullcandy is hiring a work-from-home brand ambassador — fancy talk for a customer service representative.

The popular audio brand known for colorful, candy-like earbuds and gaming headphones, needs someone to answer customer phone calls and emails for $10-11 per hour.

Before you continue: You must live in Arizona, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Maryland, Nevada, New Jersey, New York, Ohio, Texas, Utah or Virginia.

Outside of the geographic restraints, the perfect candidate is passionate about music, sports and gadgets. Owning a pair of Skullcandy buds is also a plus.

To qualify, you need a home office stocked with the necessary equipment (think: a locking door, internet, headset and anti-virus software). Some college is preferred, but you should at least have a high school diploma or equivalent, plus six or more months of customer sales experience and two or more months of customer service experience.

Available part-time shifts are Monday-Friday, 9 a.m. to 4 p.m. and 4 p.m. to 9 p.m. Mandatory training sessions begin Sept. 30 and run until Oct. 14, so apply today.

9. Williams-Sonoma, Inc.

I love walking around these stores and ogling at the shiny pots and pans and other fancy cookware I’ll never use. (Hello, beautiful waffle maker.)

Lucky for job seekers, some people really do use this kitchen equipment and love gifting the goods to their favorite foodie friends.

That’s why Williams-Sonoma is hiring seasonal work-from-home customer service representatives to process customer orders and answer any questions.

But there’s a catch: In order to snag the job, you must be able to attend training classes — located in Oklahoma City, Oklahoma. These run Sept. 2 through Oct. 2, 6 a.m. to 2:30 p.m. Tuesday-Saturday.

So if you live in the area or are willing to venture to Oklahoma City, keep reading. Qualified candidates have a high school diploma or GED and two years of sales and/or customer service experience.

To work from home, you should be able to meet all requirements listed on the job post.

If you can meet these requirements with ease, it seems worth the $11 per hour.

Your Turn: Have you had a seasonal job? Where was it?

Disclosure: Here’s a toast to the affiliate links in this post. May we all be just a little richer today.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

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How I Earned $20 an Hour By Getting Naked — Without Getting Arrested

So, time to bare all about my past: In college, I used my naked body to earn money.

The good thing: It was legal — and it paid $20 per hour.

How’d I do it? I worked as an art model.

If you’re looking for a side gig you can do no matter where you live, keep reading…

What is Art Modeling?

Drawing the human form is one of the most basic — yet difficult — artistic expressions.

And the best way to get good at it is practicing with a real, live human. (Remember Titanic?)

So, art teachers are often on the hunt for people willing to work as models. Since it’d be a bit strange for students to see a fellow classmate naked, they usually outsource this task.

Which is where you come in…

Do You Really Have to Get Naked?

In my experience, it depends.

Though the instructor would’ve preferred I get totally naked, I wore a small nude thong. It allowed me to feel comfortable, and didn’t really interfere with the artists’ ability to see my body.

I’ve seen some job listings that require full nudity, while others state you can remain clothed.

Once you’re naked (or close to it), it’s time to pose.

The instructor may ask you to sit or stand a certain way, but usually you’ll have the freedom to choose your own position. Get comfortable, because you’ll have to hold your pose for at least 20-30 minutes.

Being naked and on display can be weird, especially at first. But if you’re posing for a legitimate art class, you’ll quickly realize the students are there to draw — not ogle — you.

Oh, and don’t worry if you don’t have a “model body.”

This isn’t a swimsuit catalog; it’s art. And most students are happy to practice drawing the human body in its various shapes and sizes.

How to Find Art Modeling Gigs

I found my first art modeling gig on Craigslist, but that was several years ago — but that wouldn’t be the first place I’d look now.

With the explosion of Craigslist ads and online scams, your best and safest bet is to reach out to local schools.

In addition to many other resources, ArtModelTips.com has a fantastic list of places that hire art models.

If you don’t see one in your area, look up local art schools, community colleges, universities and continuing education programs. You could also contact local art galleries and studios that offer drawing classes.

While some schools create online job listings for art models, it’s always a good idea to call and ask. Sometimes, there’s a single person (such as the head of the art department) who’s in charge of finding models. Other times, you might have to approach each instructor individually.

Once you’ve found a gig, be sure to ask questions like:

• How many students will be in the class?

• How long will I have to hold each pose?

• Will I receive breaks between poses?  

• How much will I be paid, and when?

Knowing some of the details beforehand should make your first art modeling experience go smoothly. If it works out, you might get asked back, or referred to other teachers and artists.

The great thing about art modeling? It only gets easier.

And, since there are art classes everywhere, this side gig can follow you wherever you go!

Your Turn: Would you be willing to pose nude for some extra cash? Or would you be too shy?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

 

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14 Times the Internet Was On Point About How Expensive College Is

Go to college, they said.

It’ll be fun, they said.

OK — it is fun sometimes. And we’re all grateful for the opportunity to further our education…

…but someone could’ve at least warned us how expensive toilet paper is. We had no idea we’d soon be “borrowing” industrial rolls from public restrooms.

Or they could’ve mentioned how many times we’d wipe our tears with our student loan bills — and parking tickets.

Fellow college students, the struggle is real. But the good thing is, we’re all in this together.

Here are 14 times we felt each other’s pain about the cost of college.

1. When you start thinking about where you want to spend the next four years of your life and then wonder how you’re expected to pay for it.

College costs $30,493 and I only have $20.27

— Relateable. (@tbhreIateable) June 12, 2016

ME LOOKING AT HOW MUCH STUFF IN COLLEGE COSTS https://t.co/WjNk58TEXl — Maddi (@MaddiSeyfarth) June 12, 2016

You meant $30, right? Not $30,000?

2. Once you get your FAFSA back, you wonder why you even wasted your time filling it out.

 

FAFSA be like….”Have fun at college” http://pic.twitter.com/sexLu8V07M — College Life (@8_Semesters) June 22, 2016

Thanks. I’ll just go buy a pencil from the bookstore.

3. So you start filling out scholarship applications, but aren’t really sure how to convince random strangers to give you thousands of dollars.

Today’s kids be applying for scholarships like … http://pic.twitter.com/RYtRLoqMss — Talkative Rocker (@beewol) August 9, 2015

Help me, I’m poor. (Here are 100 scholarships and 100 weird scholarships to get you started.)

4. And then you get your bill before the semester starts.

 

Lmao, college in a nutshell http://pic.twitter.com/1dwcp068lt — ϟAdisϟ (@machine_gun_kid) March 5, 2015

So that’s what “miscellaneous fees” are.

5. Then you start shopping for used books, hoping to save some money, but honestly they’re crazy expensive too…

College books be like http://pic.twitter.com/KEpsneEa7t — El Nefe (@Neffcessity) August 15, 2015

At least sell them back afterward.

6. …but then a kind upperclassman tells you about textbook PDFs.

 

As a broke college student, THANK YOU.

(We don’t actually encourage this, but just know… it’s a thing.)

7. You have to remind yourself that 8 a.m. class you can’t stay awake through costs more than your car.

Caffeinate yourself. Glue your eyelids open. Do something. ANYTHING.

8. When that reimbursement hits and you forget about the peasantry you experienced 24 hours earlier.

 

When that direct deposit hit and you act bougie like you didn’t just have only $4.58 in your account yesterday http://pic.twitter.com/xJXwyDhzgZ — College Student (@ColIegeStudent) June 14, 2016

Yeah, I know guac costs extra. It’s fine.

9. …but then it’s gone faster than it came.

when my parents ask me why I only have two dollars in my bank account http://pic.twitter.com/KrLfI7g0HZ — Relateable. (@tbhreIateable) June 14, 2016

WHY DID I GET EXTRA GUAC?!?! WHY?!

10. Suddenly every single thing you do becomes a monumental financial decision that will affect you for the rest of your life.

 

MRW I’m a broke firefighter/college student.

If I can’t pay with loose change, I’m not going.

11. Including when you finally ask that hottie in your hall for a date…

“@Deadcollision: When bae wants to go out to eat but you on a budget http://pic.twitter.com/yFw7N0bbHN“College Life in a nutshell

— …. (@gorgeousReedz) February 16, 2015

Oh, don’t worry, it’s on me tonight.

12. …and then you two go out for a drink afterwards…

 

Life of a college student

I’ll have a vodka soda. Hold the soda.

13. …but then decide that it would be more cost-efficient to drink at home.

As a broke college student this is a great deal. Try not to notice the Fedloan letter on the ground…

Listen, if you chug it, it doesn’t taste so bad.

14. And, when you finally graduate, you face the impending doom of all of those student loans just waiting to gather interest within the coming years.

 

              Thank You Student Loans

We know how to conquer these things. Check out our easy ways to pay off student loans.

Your Turn: How did you manage to deal with how expensive college was? Tell us in the comments below!

Kelly Smith is an editorial intern at The Penny Hoarder and a senior at The University of Tampa. She goes to her mom’s house on the weekends and steals all of her food.

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Financial Mistakes You Must Avoid in Your 20s? Why You Need to Be Careful with Online Financial Advice

In the last few days, several readers have shared a video with me that’s been floating around on Facebook. The video is titled Financial Mistakes You Must Avoid in Your 20s and it features “entrepreneur and author” Grant Cardone discussing a bunch of what he considers to be financial mistakes that people make early in life.

I watched the video, hoping for the best. Instead, I found a bunch of outright nonsense mixed in with some “kinda true” things, baked together into a pie that would make for financial disaster.

Here’s the reality of personal finance, folks. It’s actually really simple. Spend less than you earn. Do something worthwhile with the difference. If you invest early and diversify, it’s hard to mess up because compound interest does all the work for you. That’s really the recipe for success. Everything else is just details.

This video tries to turn all of that on its ear in an effort to stand out from the crowd, but it simply misses the target over and over again in just a minute and a half of video.

Below, I’m going to walk through some of Grant’s points with direct quotes from the video and discuss how they’re either a misleading truth or outright nonsense.

Borrowing Money to Go To College?

From the video:

Number one is borrowing money to go to college. [...] The idea that you would borrow money to go someplace for four or five years and not make money is ludicrous when you put it down on a piece of paper.

To an extent, I agree with Grant here. If you’re just borrowing money to go to college for five years without any sort of gameplan or mission while there, it’s probably not the best idea. You’re not earning any money while you’re there and you’re building up debt in the process. If you’re going to college without a purpose, then you’re probably making a financial mistake.

The problem is that Grant goes far beyond this, taking the point to a ludicrous conclusion. His argument is that borrowing money for college is never a good idea.

I completely disagree with that. If you approach college knowing what you want to study and approach it with seriousness and intent to get as much value out of the experience as possible, college is very much worth it.

A bachelors degree is worth about $750,000 in additional lifetime earnings compared to a high school diploma, according to this US News and World Report article. That article doesn’t account for additional earnings benefits beyond that from people who approach college with the intent of building professional relationships along the way, using the resources there to build a professional portfolio, and so on. If you use the college experience to its full benefit, it can easily be worth a million or more in lifetime earnings.

Again, college is probably not worth it if you’re just trying to “find yourself” or if you have no idea what you want to study, but if you approach college with direction and intent and a work ethic, it’s a great investment.

Save Money?

Here’s a second quote from the video:

“The second thing is the idea that you would try to save money. Save for emergencies? Save for a rainy day? Save for the future? Save for retirement? You don’t want to save for any of those reasons!”

Right here, things go way off the rails. I can’t agree with anything that’s said right here.

Here’s the reason. Your future is unknown. You don’t know what’s going to happen to you in the next year or the next 10 years or the next 20 years. You might have every career option go perfectly for you and you’re making a mint… or not. You might be married… or not. Your health is wonderful… or not.

You simply don’t know what’s coming. However, you do know a few things.

You know that, over time, your health is going to gradually, slowly decline. That’s part of getting older.

You know that, given a significant period of time, there are going to be some good events and some bad events. It’s extremely unlikely it’s all going to be good… and it also is extremely unlikely that it’s all going to be bad.

Given those things, it makes a lot of sense to save right now for the future. Right now, you’re likely in better health than you will be down the road. There’s also a very likely chance that some additional undesired events are going to occur between now and then.

An emergency fund helps you deal with those negative events. Retirement savings helps you deal with getting older, so that you don’t have to keep earning as much when your energy level and physical health decline even a little bit – you can just retire or move on to a lower paying job. (Remember, “retirement” doesn’t have to start at age 65 or 70 – it can start earlier than that if you plan for it.)

The only way that the advice from this video works is if literally nothing goes wrong in your life. If every single career move you make is golden, every single investment move you make is golden, you never have any major accidents or crises, you never have any health problems or accidents, and neither does anyone in your family, then you don’t need an emergency fund or a retirement fund because you’ll be rolling in the dough. (You also might have “The First National Bank of Mom and Dad” backing you up, but that’s another situation entirely.)

You’ll also be extremely rare, because life simply doesn’t work like that. Bad things are going to happen, and even if they don’t, you’re going to naturally decline. If you don’t prepare for them, those events are going to smash into your life like a freight train. You’ve got to prepare for the future!

• Related: If You Have Savings In Your 20s, You’re Doing Something Right

Make a ‘Play’?

So what does this video propose that you do instead? From the video, once again:

“What you want to save for is the opportunity to one day make a play. When you make that play, you want to NOT diversify. You want to go all in on one thing, and you want that one thing to be a sure thing. I’m looking for sure thing investments that will multiply over time, and I want to be guaranteed that when I go to sleep that in three months, six months, nine months that the product or thing I’m invested in will still be there in the future.”

Instead of actually saving for the future, protecting yourself against unexpected events, and planning for a situation after your career is over, this guy’s recommendation is to invest everything you have on one thing you happen to be sure of, some mythical investment that’s going to multiply in value over time but is also something that’s such a sure thing that you don’t even really worry about it.

Those investments don’t exist in reality.

No one in their right mind puts all of their money into one investment. All it takes is one corrupt businessperson to wipe your entire life’s savings out very quickly. All it takes is one supposedly hot market to suddenly turn cold for you to lose most of your money. All it takes is one R&D project to fail for your entire future to deflate.

At this point, you’re essentially buying a lottery ticket, because that’s what it amounts to. The odds are somewhat better than the lottery, but the odds of a big win are still pretty slim. You’re also betting your entire life’s savings on it.

No rational investor would suggest this. I understand the logic of betting big on a single thing, but even large-scale investors, the ones with lots of money and resources, don’t put all of their eggs in one basket. They might bet big on a single company, but they usually bet big on several companies at once and spend much of their waking time really understanding those businesses. This guy expects you to save up your money, then “make a play” in your spare time with all of your savings into a single company? That’s just… bizarre.

The best thing a part-time investor can do – meaning someone who isn’t investing as their main employment – is to widely diversify as inexpensively as possible and try to ride the market, so that the failure of an individual company doesn’t drown you and you’ll get very solid returns over time. The easiest way to do that is through index funds.

Don’t Invest Early?

Another key quote:

“Don’t invest early, like all of the financial magazines tell you.”

This is the one quote in the video that blew my mind more than any other.

The advantage of investing early is obvious to anyone who can do a bit of back-of-the-envelope math. Let’s say you can invest in something that returns a steady 7% a year. (The stock market in the United States on the whole isn’t purely steady, but it has roughly a 7% long-term average.)

If you invest in that with $1,000 and let it sit for 10 years, letting the returns just stay there, you’re going to wind up with $1,967 after 10 years. Not bad.

If you make it 20 years instead, you wind up with $3,870.

If you make it 30 years instead, you wind up with $7,612.

Make it 40 years, and you wind up with $14,974.

Now, imagine that’s your retirement account and you want to tap it at age 65. The first example – $1,967 – is what you’d get if you put in that initial $1,000 at age 55. $3,870 is what you have if you put in that initial $1,000 at age 45. $7,612? That’s starting at age 35. $14,974? You get that much cash if you put in $1,000 at age 25 and just never touch it until retirement.

Your returns are far bigger if you start as young as possible, because the more years you allow your investment to grow, the more time you allow your returns to build on themselves. Your interest earns interest, then the interest on your interest earns interest, and so on. The more years you give it, the bigger and faster and more powerful it all becomes.

That’s the power of starting young. This person just discards all of that because it’s inconvenient and acting as if you don’t have to save when you’re young is probably flashy and attractive to people in their twenties who don’t actually want to save.

Don’t Use a 401(k)?

Let’s hear another key quote!

“Don’t do the 401(k). It’s a trap! You can’t even get the money! You have no control, but you want control, you want your money now.”

First of all, saying “you can’t even get the money” in your 401(k) is a lie. At age 60, you can start withdrawing it pretty much as you like – it comes to you like a paycheck. Before age 60, you can take withdrawals provided you can demonstrate that you’re retired, you can sometimes borrow against it, and you can take withdrawals for any reason provided you’re willing to pay a 10% penalty.

Second of all, if you want your money now, you’re not going to use a 401(k) anyway. The point of a 401(k) is to throw your money in a figurative lockbox so that you’re disincentivized to touch it until you’re of retirement age. During those years, it grows for you using the power of compound interest described above. It does exactly what it’s supposed to do – it preserves money for you for retirement.

Third, most 401(k) plans offer a lot of investment options. Admittedly, they’re sometimes a mixed bag of options, but there’s virtually always at least a few decent options in there.

Fourth – and this is a big one – many 401(k) plans come with employer matching, meaning if you contribute some money, your employer will match it as an addition to your salary. Not taking advantage of that is equivalent to saying that you don’t actually want part of your salary and that your employer can keep it.

Finally, contributions to a 401(k) right now reduce your tax bill next April because the money is contributed before taxes. 401(k) contributions reduce the amount of taxes you pay, which means that every dollar contributed is less than a dollar in terms of your take home pay.

To just discard 401(k)s as a scam or something is absolutely ludicrous. They’re a very useful financial tool for anyone who isn’t highly wealthy and isn’t willing to take on high levels of individual risk.

• Related: What to Do If Your 401(k) Stinks

Don’t Invest Until You Have a Lot of Cash?

Let’s keep going!

“Don’t invest one penny in one stock until you have at least $100,000 in the bank and until then I would invest only in myself. That should be the first investment, because that’s a sure thing. You know you.”

So, wait, let’s back this train up.

The number one place you should invest is in yourself, but going to college with any loan money is a terrible idea?

You shouldn’t save for emergencies or retirement at all, but you shouldn’t invest for any reason until you’ve saved up $100,000 in cash?

Look, I’m a huge advocate for investing in yourself. You should work hard to make yourself as prepared for the next step in your desired career as you can. One big part of that is a well-considered college education, whether for a bachelors or a masters degree or even a doctorate. That’s investing in yourself and it’s just bizarre to act like it isn’t. A well-planned college education where you’re focused on a degree that you’re going to use and you put your nose to the grindstone while there is worth borrowing money for.

However, much of what you can do to invest in yourself requires time, not money. It takes time to get in good physical shape, not money. It takes time to build a strong professional network, not money. It takes time to build a nice portfolio, not money. It takes time to be involved in projects and prove yourself in leadership positions, not money. Investing in yourself is usually an investment of time and energy above all else.

Onto another part of that quote: it’s absurd to think that you shouldn’t invest in any way unless you have $100,000 in the bank. If you get a new job with a great 401(k) plan that matches your contributions dollar for dollar and you say, “Nope, not doing that until I have $100,000 in the bank,” you’re intentionally losing money. You’re leaving it on the table for no real reason.

Not only that, the $100,000 amount is completely arbitrary. I understand what his intent is – he thinks you need at least $100,000 to make one of his patented “big plays” that he talked about earlier – but there’s a big problem here. The average American makes about $60,000 in household income a year and brings home a hair under $50,000. This guy is suggesting that the average American has more than two years of annual take-home income in their savings account before making any other financial moves. That simply doesn’t make any sense.

First of all, save a little bit. Save up until you have an emergency fund – maybe a month or two of living expenses. Then get rid of any personal debts you might have, because those things are just a weight around your neck. Get rid of the credit cards first.

After that, ask yourself what you want your life to be like in, say, five years or 10 years and start working toward that in the smartest way possible. Do your homework on that big goal and start doing what you need to do every day to make that happen. Spend as little as you can and don’t spend any more than you have to on the things that you don’t really care about. Contribute to your 401(k) at work, especially if it offers any matching money, and if you don’t have one, open up a Roth IRA on your own (it’s not hard). Try to contribute 10% of your income – 10% of your take-home pay if it’s a Roth IRA – and shoot for a little more if you’re over 35 and haven’t saved anything yet.

That’s the real recipe for success in your 20s – and 30s – and beyond. With this recipe, if the wheels fall off and things don’t go as planned, you won’t find yourself on the street, but if things go reasonably well, you’ll find yourself being able to retire comfortably with a lot of healthy years of life ahead of you to do whatever you please.

Final Thoughts

The real story here is that there are a lot of people out there sharing nonsensical advice online. The stuff in this video doesn’t stand up to any sort of closer look, but the guy in the video sells it well enough that it can seem like a great idea. He’s effectively selling a lottery ticket and telling people to invest all of their life’s income into that lottery ticket, but you wouldn’t know that from how he pitches it.

You have to look closer at everything. Personal finance isn’t complex, but the key principles it’s based on make sense from the ground up. Spend less than you earn. Cut back on the areas of spending that are less important to you. Eliminate personal debt, sooner rather than later. Save for your long-term goals starting as soon as possible so that you can minimize the risk and let the power of compound interest do the work for you.

It’s not rocket science, but it’s hard because it requires us to make lots of good principled choices over time. It’s made even harder when people share nonsensical advice like this guy does.

Good luck!

Related Articles:

• 10 Money Mistakes Most 20‑Somethings Make
• The Secret Behind Financial and Entrepreneurial Classes and Seminars
• 12 Common Money Mistakes New College Graduates Make
• Seven Reasons You Need to Start Investing Right Now

The post Financial Mistakes You Must Avoid in Your 20s? Why You Need to Be Careful with Online Financial Advice appeared first on The Simple Dollar.

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