Avoid Living Above One's Means

It's not easy with all the spending temptation that are available nowadays.  However, going into debt live above one's means will have a negative impact on wealth building.

Although it requires discipline, living below one's means is better option to me.  Of course, one should still buy what is definitely needed.   

One strategy that worked for me is to "pay myself first."    By that, I mean put a significant portion of take home salary into savings, starting with 10%, keep increasing and putting raises and bonuses in savings until reaching 20%.  Invest that 20% and avoid using it, if possible, since this should be in addition to emergency funds or saving for large purchases.

Another strategy is to pay off credit card statements completely before or at the due date, to avoid late fees and interest charges.   This keeps one living within one's means.

Finally, if all else fails, live on a cash basis. It forces one to liven within one's means.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial nor wealth building advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Appliances are Great Time Savers

Appliances that can independently do most of the work are the best time savers.  Washing machines, dryers, dishwashers and robotic vacuums are great examples.  One just needs to press the start button and that frees up time to do other activities while the work is being done.

Other appliances involve one's participation but significantly reduces the time and effort.  I include automobiles, lawn mowers and vacuum cleaners in this class.  I still have to spend time and effort but it is much less than if I didn't have an automobile, lawn mower, and vacuum cleaner.

To me, it's worth the cost of the appliance, even if they are expensive, many times over if it either frees me from doing major work or significantly reduces my time and effort.

For more on Ideas You Can Use, check back every Tuesday  for a new segment.

This is not financial nor appliance advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

"Pay Yourself First" Was My Foundation for Wealth Building

Often people save only if there is money left over after expenses and discretionary spending.  This is how I started when I started working.   Here is the spending priority:

1. Necessary expenses - Rent, Utilities, Groceries, Gas, Car Payment
2. Discretionary expenses - Entertainment, Eating out, Vacation
3. Savings - Retirement accounts, Bank Accounts, Investments

Putting Savings first helped me build wealth faster, and building wealth was my top financial priority.  Here's the priority, I switched to later:

1. Savings - Retirement accounts, Bank Accounts, Investments
2. Necessary expenses - Rent, Utilities, Groceries, Gas, Car Payment
3. Discretionary expenses - Entertainment, Eating out, Vacation

After a few years, I began putting my annual raises primarily towards savings.  What I found is the first 10 years of accumulation seem to be very slow growing.   It wasn't until after 20 years, significant growth was evident on a yearly basis.

I have tried to instill "pay yourself first" mentality with my kids.

For more on Strategies and Plans, check back every Monday  for a new segment.

This is not financial, wealth building nor saving advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Multi-Year Tax Strategy in Retirement

When I was working, I earned a paycheck and paid taxes.   Since I had some, but not much, control over my annual income, I just did my tax return with limited planning, such as charitable contributions, and tax loss harvesting, for taxes.  I probably controlled only 10-20% of our taxable income via dividends and interest.  In general, I tried to maximize our income.

In retirement, I have I still have Social Security income which is like a paycheck and I don't have much control.  However, instead of a paycheck being 90+%  of our income, Social Security is about 27%.   Interest and dividend account for about 53%.   By using tax exempt interest options, and staying in the 12% tax bracket, I can reduced our taxable income and therefore, our tax liability significantly. Also, by managing our AGI, I enable us to take some tax credits that are phased out at higher income.  20% is rental income and enables us to take the Qualified Business Income (QBI) deduction.

In the next few years, we have RMDs, both inherited and from our own.  This will be additional paycheck income that we will have less control over.

If we exceed certain income, I will need to pay additional insurance premiums for Medicare, call IRMAA, which I would like to avoid if possible since there is no benefit increase.   In addition, we would lose or phase of the bonus senior deduction.  

As a result, designing and planning an income and tax strategy for at least the next 5 years, and maybe even the next 10 years, will be beneficial to maximizing income we keep by minimizing our tax and IRMAA liability.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, retirement, nor tax advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Major Flukes in my Life

Sometimes seemingly accidental occurrences have great beneficial outcomes.

I was the starting fullback on my high school football team for four years, that included being State runner ups my junior year and State Champions my senior.  I was a good but not great athlete. In fact, I played running back one season in my previous five years in little league football.  I was a lineman most of those years.  However, my high school coach, who just moved from the local university to our high school my freshman year,  was exceptional at putting average players in positions that allowed them to be stars.  I was one of those players. I was outstanding because of my coach.  He put me where I could excel and make a difference.

I had a ruptured appendix just before senior year of high school. It took me all summer to recuperate.  Still I was determined to go out for football.   No one expected me to play, not the coach, not my teammates and especially not my parents.   The coach allowed me to join the team, but only had me be a backup for the first couple games.   By the third game, I was starting at fullback again.   I went on to have my best season ever, rushing for almost 1000 yards and winning the State Championship.   While I was a good student, I think overcoming the life difficulty helped get admitted to all the colleges to which I applied, including 2 Ivy Leagues schools.

When I was in college, I signed up for job interviews with visiting companies for summer internships.    I would usually check back the day before and make sure the appointment was still happening.  One time, I couldn't find the company I signed up for on the schedule.  I asked Career Services and they answered they are no longer coming.  The next day, I happen to be in my dorm room when the he phone rang.  (This was in the time of landline phones.)   It was the interviewer from the company I signed up for.   He said, "I'm supposed to interviewing you right now."  I said I was told you had cancelled.  He asked if I could come in the next few minutes. I answered, "Yes," and threw on my sport jacket, grabbed my resume and ran up to the interview.  He only had enough time to give an overview of the company.  I was impressed and it was obvious I had not researched the company.  After 15 minutes, he said, "My next interview starts in a couple minutes.  Do you have a resume?"  I said, "Yes," and gave him my resume.   I assumed that would be the last I would hear from him.   One week later, the interviewer called back and offered me a summer job.  I took it, ended up working their permanently for 27 years before retiring before retiring with full benefits in my forties. 

Early on, when I was working, I was an average employee.  My bosses boss asked me to take on an assignment that, truthfully, was undesirable.  However, our general manager wanted it staffed.  The position was a great match for me.  I was able to make the work important to both the general manager and the business.   As a result, I was promoted two levels, to the level of my boss's boss, in five years and offered an international assigned, which I declined at first for personal reasons, but later accepted.

While in college, I learned to play rugby in the offseason from football, which was my main sport.   I joined the local rugby team when I started working.  I met my future spouse through teammates on my rugby team since she lived in the same apartment complex.  We've been married over 30 years.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Stock Trading Entertainment

In my younger days before being married, I used to get some entertainment from sports, regularly social meetups with friends and being engaged with colleagues in work projects.    These still give me some joy, but I have less or very little to no opportunity to experience these events very often anymore.  This is one of the downsides of being retired and older.

My entertainment is mostly with family and the kids' activities.  Kids' sports, extracurricular activities, and vacations.   However, kids want to be with their friends more than with family as they get older.  So I am  expanding my entertainment options.

My father was a stock investor.  I've always liked investing in and trading stocks.  However, based on experience,  I've decided that investing in market index is a much better strategy than picking individual stocks, at least for me.  It's exciting when I make a good pick. 

I will continue to make "bets" on a few individual stock occasionally, just for entertainment. Much better than going to a casino, which I see many older people at when I go to play craps every few years.

For more on Reaping the Rewards, check back every Friday  for a new segment.

This is not financial, stock trading nor gambling advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Not Buying Any More Stocks ...Yet

Based on my experience when I was younger, the stock market has the look and feel of likely falling further. It seems like buying now is like catching a falling knife.  I'm going to hold what I've already purchased, but I'm going to wait for stocks to drop further before buying.   

If I'm wrong and it has already bottomed, I have enough holdings to benefit.  If it does fall further, waiting to buy will turn out to be a right decision.

For more on Crossing Generations , check back every Thursday for a new segment.

This is not financial nor stock investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Learn to Make Minor Repairs

My dad was a DIYer fixit guy.   He was an engineer and could repair/maintain many mechanical items.  I was always amazed at what he could fix.  I picked up some skill from watching him when I was a child.   Being able to repair and maintain items also can save lots of money versus have a professional repair person.

Here are some examples:

• Car maintenance - My dad used to change oil, adjust the timing belt, add water to the battery, change spark plugs and other minor repairs.  I started by changing oil, but the dealers started doing it cheaper than I could buy the materials, so I let the dealer do it.  I do change headlight, taillight, and signal bulbs, which save about $30 in labor.  I also will change cabin filters, engine filters and wipers, which again saves the labor costs.
  
  
• Outdoor painting -  Our house was a split level that was mostly brick.  He would paint the shutters, trim and siding periodically.   I do some touch up outdoor painting, but leave the major paint to others since we have a 2-1/2 story exterior.
  
  
• Bike repair and maintenance -  Tire and chain repair and maintenance.  One time a vandal bent my front wheel rim.  My dad used a spoke tightener and straightened it out.  I do minor repair and adjustments on my kids bikes.
  
  
• Appliance and plumbing maintenance/repairs -  I don't recall my dad doing specifics in this area. I've become adept at doing minor repairs to our dishwasher and keeping our drains clear.   I do hire repair or plumbers for the major work such as changing out piping.
  
  
• Electrical work -  I don't recall my dad ever doing electrical work.  I took a vocational electrician course when I retired.   I can change out switches and outlets.  Also I can change out chandelier lighting.  I've also learned that the previous owner did not install some things to code, but fortunately were not dangerous.

Doing minor repairs saves money but also give me an understanding of how things work, which I enjoy since I am an engineer.  The only downside is sometimes it takes me much longer to do the work that if I hired someone, which is the tradeoff right now.  As I get older I may choose to outsource some or all of the minor repair work.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial or do-it-yourself advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Pay Bills On Time

I always pay my bills on time.  

First, paying on time avoids penalties and interest which can add up quickly because it compounds.  In the worst case, these may exceed the initial bill over enough time. Penalties and interest on late or delayed payments is a death spiral I want to avoid.

Paying one's bills on time helps prevent living above one's means, which can be very detrimental to being successful at managing one's personal finances.  Right after college with a degree in chemical engineering, I worked for a Fortune 10 company.  I always paid my bills on time, even when I ran out of funds the first month working.  I had a friend who believed in maxing out her credit cards and paying only the minimum each month since she would have a higher standard of living.   Before long, her bills exceeded her take home pay and she took a second job as a in order to make ends meet.  Sheesh.

Doing so builds one's credit score and credibility with lenders, which is valuable.   My credit score typically is in the 800s.   As a result, I qualify for lower interest on loans, including  mortgages and car loans.  

Credibility may allow lenders to waive let fees for an abnormal missed payment by the deadline.  There have been a couple times I have been late.  One time, I mistyped the electronic payment and was off by a few dollars.  The credit card company charged me interest on the full amount even though I paid over 95% of the amount due.  I called in immediately and explained I had made a transposing error on the last two digits.   Also, I told them my record should show I always paid way before the due date.  The customer service rep did a one time waive of the interest charge based on my past performance.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial nor credit card advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Asset Class Returns - 2011 to 2025

I see this color map periodically.  In the past, I thought it was interesting, but hard to act on since the map typically is used to support the value of diversification. To me now, the value is seeing which one asset class is the best to invest in.  

My choice the Large Capitalization Stock asset class.  Over this time period, it was in the top three positions 11 out of the 15 years.   I'll go with a 73% probability of being one of the top three.  For my kids, I putting them in S&P 500 index ETF or mutual fund for the long term.

Credit: Keating Financial Services.

Disclosure:  I was not compensated by Keating Financial Services for this post.

For more on Ideas You Can Use , check back every Tuesday for a new segment.

This is not financial, stock picking, nor stock investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC