Personal Finance

According to Oxfam report, just 62 people own about the poorest half of the entire world population – or 3.6 billion people. Back in 2010 it took 388 rich people. But as the global inequality has reached levels not seen in over a century, the richest 1 percent own more than the other 99 percent put together. To put that into perspective, the wealth of the poorest half of the world’s population – that’s 3.6 billion people – has fallen by a trillion dollars since 2010 while the wealth of the richest 62 has increased by more than half a trillion dollars.

According to USDA Report, the total cost to raise a child for food, housing, childcare and education, and other child-rearing expenses up to age 18 is $245,340. That report does not included the costs associated with pregnancy. Holly Johnson of the Simple Dollar put into details the total cost to have a baby by include the medical costs, the impact of maternity leave, and the ongoing costs of caring for a newborn. While the true cost of having a baby depends on one’s health insurance and place of residence, the new parents can expect to pay up to $6,500 for out-of-pocket expense out of the average cost of $10,000 for delivery and a hospital stay. The cost adds up when the yearly $6,960 premium for health insurance is included along with associated costs. Overall, the bundle of joy also comes with extra financial responsibility.

Saving money doesn’t require one to sacrifice to the extreme. FrugalTrader from Million Dollar Journey gives some real life examples on how to save more money with less effort. It’s hard to find way to cut costs and to save money as most of us are influenced by friends, neighbors and co-workers. The trick to save money is to focus on the largest expenses such as mortgage, car payment, groceries, etc. By refinancing debts or eating out less often, one can quickly and easily save more money every month.

If you are undecided between term life insurance and whole life insurance, Ben Edwards at Money Smart Life has some advice about this insurance debate. He points out that almost in all cases, term life insurance is your best choice. The reasons are that it costs a lot less than whole life insurance and that you can buy a lot more term life insurance compared to whole life insurance while leaving you with more money to invest. Those are very good recommendations. Don’t confuse between insurance and investment. Term life insurance is pure life insurance. So if you are going to get a life insurance, term life insurance is better than whole life insurance.

Jeff Rose shows how to master your money to to become a financial Jedi Master. He gives out simple tips to join the Jedi rank. To master your finance you must tap into the light side of the Force by thinking honestly about your finances and don’t become another Darth Vader by letting money and power to corrupt you.

Grocery is a part of every household’s living expenses. According to United States Department of Agriculture, the cost of food at home for a family of four is around $1000 per month. Mr. Money Mustache shows how to dramatically cut this $1000 grocery bill by over 60%. First you have to nail down how much you want to spend on food per month. Mr. Money Mustache gives us an example of a family of four spending $365 per month or around $1 per day for a family member. The key part is you have to cook at home for your day-to-day foods. By shopping at places like Costco, instead of Whole Foods, you can get the needed ingredients for all your meals. By mixing the expensive foods with cheaper ones, you can make very good meals that average out to $1 per person. Thus you can greatly reduce your grocery bill.

A recent article on Vanguard has five great advises for young investors. Here are the five things you can should do to save for retirement:

1. Take advantage of time by invest early as your original investment compounds and grows over time
2. Always take advantage of employer matches
3. Save $15 day to be a millionaire by reducing some daily expenses
4. Pay debts off, starting with the highest interest rates
5. Contribute to your Roth IRA since time is on your side

Sometimes owning a home makes perfect sense. However, in certain case, renting is a better decision. Here are three reasons you should consider renting written by Miranda Marquit. Renting is a better move (1) if you value flexibility, (2) if you prefer to have someone else taken care of things and (3) the market conditions make renting cheaper.

What with all the “What do I do now?” questions, here is one real life example. Dave Roberts, 72, a retired teacher and software engineer, is on a mission to hike the United States by foot, by bike, even by kayak. “Hotels and lodges are out of the question; he camps out at night and lugs 25 pounds of equipment.” His plan is to travel part of the America’s hiking Triple Crown: Pacific Coast, Continental Divide Trail, and Appalachian Trail. For anyone that has a major hike on their bucket list, this article by the New York Times could be a great motivator for early retirement.

According to Consumerist, ESPN is the most expensive single channel for most people. With the price so high Disney does not want cable subcribers to know how much ESPN costs per year. Most consumers are not avid sports fan. As cable companies let consumers choose which bundles to add to their services, more consumers are willing to part ways with ESPN and ESPN2 to save $8 per month on their cable bill. If you have a choice, would you ditch ESPN to save $8 per month?