Posted on 03/29/2015 8:27:28 AM PDT by TurboZamboni
Where should we learn how to handle money? School. But we dont. Instead, what you know or dont know about finances stems from a number of factors: how you were raised and what you learned from friends, financial advisors, a spouse, random Internet searches, and so on. Which leads to money habits that arent ideal. So we talked to the pros to find out what you should have learned in school. Heres what they said.
(Excerpt) Read more at dailyworth.com ...
Live below your means.
Exec who mocked Chick-Fil-A now on food stamps
http://www.freerepublic.com/focus/f-bloggers/3273180/posts
especially if you’re dumb.
10. Go to work, work hard, earn/make money every chance you get.
9. Spend as little as you can, Save and invest
8. Don’t borrow money
7. Have good insurance for large losses
6. Eat frugally, don’t eat out at restaurants often
5. Marry a frugal and penny wise person with the same goals as you
4. Don’t drive new cars ever, buy slightly used and pay cash
3. Take care of your health, it is expensive if you don’t
2. Have a fund for emergencies so you won’t need a credit card ever
1. Vote for Fiscal Conservatives, they aren’t trying to take your money to pay for someone else to not follow the above.
OK I hate this. It teaches us nothing. Take, “live within your means”. That can also be restated as spend all you have. A better way to think of it is, what do I really need? And is there money leaking out somewhere, spending I did not intent.
If you invest, invest in something that grows and does not take away 1% in fees. 1% is about 10% to 33% of the growth. That is if you think your investment is growing at 3% to 10% a year. And normally that 1% is just the fee at the top. Underneath are other fees. So if your money handler takes 1% and he puts you in a fund like a mutual fund or bond fund, they are taking another 1%. So now you are giving away 20% to 66% of your growth.
Talk yourself out of wanting to acquire more stuff. Its just more hassle. And don’t buy to impress. Your friends don’t really care too much. Stay simple. And hang with people who are simple and real. They are normally nicer to be around anyway.
Don’t buy new as long as the old still works. Remember you are paying the government every time you upgrade. If you can put off a new car or TV another year, the new ones are even better. And the government loses some tax money. A win win.
One good piece from the article...
Talk about money issues. In advance. It’s shouldn’t be taboo to discuss money with your spouse, kids, parents, etc.
=-FV(8%/365,365*40,10)
“The path to wealth is through industry and frugality”
Adam Smith.
Blame someone else for your problems.
Raise palms and demand gimmedats at welfare offices.
Live comfortably for the next 60 years.
Don’t be a cheapskate either.
I think what you are seeing is bad editing.
That section actually begins, "To really live at a level you can afford, you have to modify your lifestyle slightly and live below your means. "
Kids today have very little, if any, understanding of history. They have no concept of just how bad things can get and how long they can stay that way. They have been raised in one of the most affluent societies that ever existed but are taught that things are terrible and that we must rely on "hope and change" to build a future, instead of "work and responsibility".
Also, I would never again buy a new car. My last purchase was a two year old car with 30k miles on it which cost about 60% of the new price.
It's a very open system and it's great. I've learned a ton simply by looking at the older guys' paychecks and asking them what they're doing differently than others.
First two lessons are psycho-zen, feely-talky.
Live within your means, but what that means is . . .? Prioritizing sounds good, but that requires a little deeper philosophy and theology, right? After all, what principle of priority are they suggesting: "If you feel like you're not spending your hard-earned cash in a way that's making you happy. Heck, spending makes the unschooled happy.
Saving with objective To spend? The most sought for savings are to generate additional wealth.
401K is OK when your employer contributes.
For tracking, use Excel for starters.
Very good. I hear that financial problems fester behind most divorces.
Can you talk a little more about #5? Do you start off with the S&P 500 index fund and then transition over to the bond index fund as you get older? If so, on what schedule do you make the transition? Should you have investments outside of these funds for diversity? How do you feel about mutual funds?
My Dad,a child of the Depression,was fantastically successful in his life when you consider that he was the youngest of 8 who grew up in the filthy slums of South Boston thanks to his father having been badly disabled by tuberculosis.
Although he could have afforded much,*much* better after he achieved his success he always drove Oldsmobiles and wore Timex watches.In fact,the one memento of his that I wanted after his death was his Timex watch and my siblings said that was OK with them.
Of all the valuable lessons he taught me,living below your means was just about the best.
Your advise is much better than the what is in the article.
Kitchen appliances should be your friend, not your enemy. Learning the basics of cooking will not only result in healthier eating, but also saves a HUGE amount of money by not having to eat out so often. And if you know the basics, you can use them to learn more sophisticated cooking skills to make amazing meals that impresses everyone but professional cooks.
The nuts and bolts of it.
Track Your Money: Saving Advice From Rockefeller
The Advice
Now let me leave this little word of counsel for you. Keep a little ledger, as I did. Write down in it what you receive, and do not be ashamed to write down what you pay away. See that you pay it away in such a manner that your father or mother may look over your book and see just what you did with your money. It will help you to save money, and that you ought to do.
There you go, parents. Delegate. And if your piglets won’t cook, let ‘em squeal ; 0
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