A dose of reality as opposed to whatever pipedream is being sold by whomever for their own reasons is never unwarranted. in other words, check out any kneejerk assumptions you may have - so that reality doesn't smack you right up against the WALL.
In England they used to have a saying "Shirtsleeves to Shirtsleeves in 3 generations" meaning that there was an inevitable rise and fall of (at least) the self-made man. Shall I say those who are ignorant of history are bound to repeat it?
Especially in this time of unprecedented social change, one needs to keep an eye on the reality ball to make sure that you can more or less do well at the game of life. I peruse the business section of the L.A. Times - because here and there I find revelatory comments - ditto the back pages of my daily paper!
Keep a lookout for the anomaly - that "black swan" which could floor you! Not every swan is white, you know.
Roth IRA is the way to go if you're a work at home parent. Also, don't forget that the retirement plan, 401k, or savings of your spouse should be a family retirement fund. Try and having the working spouse contribute as much as possible so that they maximize any employer contributions. It's free money :)
I bought my 1st house in 1985 for $76K (mortgage interest rates were 11-13%). After marrying in '88, we stayed in that house and refinanced a couple of times to 15 year loans. We had one child and moved to our current house in 2006. I paid the mortgage off on the 1st house in 2001 and we have been mortgage free for 8 years. I set a goal in 1996 to pay the mortgage off in 5 years and not move until the goal was met. As a commissioned sales person with a good salary, I was able to pay off the mortgage early plus max out my 401K, Roth IRA, Health Savings Account and 529 contributions. That is how we really accumulated assets. Since my 401K was invested in domestic and international stocks and my lump sum pension was invested in Treasury bills, owning our home was another way to diversity our assets. With a degree in finance, I've always made decisions that made sense for our financial situation not what some financial columnist wrote. Having a good salary and living well below our means was the key to our financial success. I retired last year at age 51.
What you say about Friedman is both funny and true. He's trying to be Malcolm Gladwell or Nicholas Taleb, writing books whose titles stand for a new idea, and then repeated that title ad naseum to promote both the idea and his latest book. He's a good guy though, and I'm glad to see his speaking engagement carreer is taking wing.
About socialism – classic Socialism really was about overthrowing the "Tyranny of Old Ideas" and the Russians, Chinese, Kmer Rouge, the North Koreans, and the Burmese Junta killed more people and destroyed more buildings and artifacts than Hitler and all other wars in the 20th century. Communism = Mass Murder by revolutionaries in red berets. Double Plus Ungood.
Strange how people nowadays who hang on Richard Dawkins' every word conveniently forget how many people died in the 20th century at the hands of "atheist" communist states. But you're right, that doesn't mean much about this book, which might say something else. Good article.
I think doing the same than David Thorne (sending a .gif to a creditor), would be a great way to collectively and massively make a point to credit cards in protest to their recent self ruining greed.
I am willing to send .gifs instead of payments to my credit cards because they have been getting too greedy lately by cutting credit lines, closing accounts and increasing percentage rates.
My case:
My credit score was ruined by one card then all the other ones. I feel this was due to their greed. Greed that will ultimately ruin them because as they'll finf out alot of people can't afford the credit card comapny's greed. In my case, I can't.
My scor used to be 750, but I only made minimum payments for a couple of months and now my score is 650.
First, one card that I had used to about 40% my limit was cut to the point that it was like 95% full. That reflected on my credit score, and then the same card said increased the %. Then that reflected even worst in my score and that must have scared other cards so they all increased their %.
Now I'm almost to the point that I can't make the minimums or can't make payments on time.
My call to the world:
Lets send a .gif as payment to every credit card that has pushed us to the limit of not being able to pay.
Statistically you spend more money on credit than you do if it was a debit card.
Before we got married, my wife had the same theory: charge everything to the credit card and just pay it off at the end of the month. She would get all sorts of meaningless crap. She would pay it off though.
Fast forward to today and now we're trying to pay off $20,000 in credit card debt because we "thought we could pay it off each month." All because we could pay it off.
Sometimes, the best way to solve a problem is to not even approach the problem to begin with.
I am intrigued! I find it interesting to contrast and compare siblings raised together. Being all that Robert Kyosaki is and has to offer, this will be an enjoyable read.
Some retailers ship so quickly that the extra cost for fast shipping isn't worth it. In my experience Amazon, NewEgg, and Crucial have been excellent in terms of order fulfillment and shipping.
Many e-retailers offer free shipping from time to time, and it pays to take advantage of these offers if you can.
Amazon offers Super Saver Shipping for free on qualifying purchases >= $25.00. I always receive my purchases well in advance of the estimated time. Unfortunately this option is not available for third-party sellers.
I find your article very interesting Fred. You have simple tips that everyone can actually follow. I agree, exercise can really help beat those blues! It would keep you fit and healthy; and improve your life as well!
This sounds like a great book and a perfect choice for my book club. I love the idea of challenging underlying assumptions or at least understanding what the givens are and when those change making sure your policies, decisions, actions, etc. are adjusted or, again, at least, reconsidering them. And, I was just having the physician vs. banker discussion with my sister a few weeks ago based on the economic climate in Charlotte (home of former First Union turned Wachovia soon to become Wells Fargo and home of Bank of America, where, foreclosure rates are greater than the national average now that it's not as easy to hold on to the $300K per year bank job).
I've found that the best way for me to eat (as well as the most economical) is to make sure that the food I eat has some nutritional value that my body can use. To take the instance of the hamburger - no one can deny that it's cheap. To make it a worthwhile meal, I throw away the bun. The bun is just a bunch of processed sugar and junk, and since that stuff makes your blood sugar and insulin levels skyrocket, it will just make you hungrier and fatter. You're left with veggies and a burger patty. The veggies are good for you, and while the burger isn't the most desirable form of meat, it has protein to feed your cells and some fat to keep you sated. Another interesting tidbit - a lot of the fat in a hamburger is in the bun, since it soaks up all the grease.
No more late night calls to my daughters-"Help, my computer is frozen" or "what the hell happened to my 3 page letter-it's GONE"!.
This 53 Yeal Old Mom really wants to be a "Geek Goddess".
From point one "If you were formally in the know about all things business related" - that should probably read 'formerly'. The former does make sense, but I doubt it's the meaning you were intending.
Depending on how cold it is, hot water may not be a good idea. The glass may actually crack from the quick temperature change! I have used hot water myself. Someone told me about the this and I have not used it since.
There is lots of hardware available for a very low cost. It may not be always on the leading edge technologically, but it does the job. Craiglist and EBay are probably excellent sources for used gear. I've even seen stuff that's worth picking up from local garage sales in the neigborhood.
I have to agree with you. This is a rather sad post.
I save thousands of dollars every year by couponing. Every non food item I buy - every one - I've either used a coupon or purchased using CVS's ECB program.
My grocery budget - the money I spend each week on food and non food items - went from $175 a week to less than $90 once I started actively couponing - and I also make sure to patronize stores when it is triple coupon time.
If you looked under my bathroom sink, you'd see the 10 packages of razors I've gotten for free because of couponing. Under my kitchen sink is multiple bottles of dish soap - again, all free.
Last week, Harris Teeter had the snowflake toilet paper on clearance sale for .99 for a 4 pack. I had a .50 coupon doubled to $1.00.
I have enough TP that I'll be using snowflake design TP well into July.
I disagree with the original post. Coupons ARE worth it, if you just use some common sense.
After the switch you will not be able to use your vcr's tuner. Instead, you will be using the tuner of your hdtv and sending the output of the tv to your vcr to record.
The biggest problem with this setup is that your tuner needs to be set on the channel you want to record as the vcr will no longer have the ability the change the channel.
Interesting hidden cost that I hadn't thought of before!
Being rich is having choices. This could mean you have millions of dollars and choices or $10 and choices. There are many people in this world that have worldly riches but very few choices - or - are so cosumed by riches that they won't make choices. It's sad really....
A dose of reality as opposed to whatever pipedream is being sold by whomever for their own reasons is never unwarranted. in other words, check out any kneejerk assumptions you may have - so that reality doesn't smack you right up against the WALL.
In England they used to have a saying "Shirtsleeves to Shirtsleeves in 3 generations" meaning that there was an inevitable rise and fall of (at least) the self-made man. Shall I say those who are ignorant of history are bound to repeat it?
Especially in this time of unprecedented social change, one needs to keep an eye on the reality ball to make sure that you can more or less do well at the game of life. I peruse the business section of the L.A. Times - because here and there I find revelatory comments - ditto the back pages of my daily paper!
Keep a lookout for the anomaly - that "black swan" which could floor you! Not every swan is white, you know.
for my blog see www.myfrugallife.com/blog_pamphyila.html
Roth IRA is the way to go if you're a work at home parent. Also, don't forget that the retirement plan, 401k, or savings of your spouse should be a family retirement fund. Try and having the working spouse contribute as much as possible so that they maximize any employer contributions. It's free money :)
I bought my 1st house in 1985 for $76K (mortgage interest rates were 11-13%). After marrying in '88, we stayed in that house and refinanced a couple of times to 15 year loans. We had one child and moved to our current house in 2006. I paid the mortgage off on the 1st house in 2001 and we have been mortgage free for 8 years. I set a goal in 1996 to pay the mortgage off in 5 years and not move until the goal was met. As a commissioned sales person with a good salary, I was able to pay off the mortgage early plus max out my 401K, Roth IRA, Health Savings Account and 529 contributions. That is how we really accumulated assets. Since my 401K was invested in domestic and international stocks and my lump sum pension was invested in Treasury bills, owning our home was another way to diversity our assets. With a degree in finance, I've always made decisions that made sense for our financial situation not what some financial columnist wrote. Having a good salary and living well below our means was the key to our financial success. I retired last year at age 51.
What you say about Friedman is both funny and true. He's trying to be Malcolm Gladwell or Nicholas Taleb, writing books whose titles stand for a new idea, and then repeated that title ad naseum to promote both the idea and his latest book. He's a good guy though, and I'm glad to see his speaking engagement carreer is taking wing.
About socialism – classic Socialism really was about overthrowing the "Tyranny of Old Ideas" and the Russians, Chinese, Kmer Rouge, the North Koreans, and the Burmese Junta killed more people and destroyed more buildings and artifacts than Hitler and all other wars in the 20th century. Communism = Mass Murder by revolutionaries in red berets. Double Plus Ungood.
Strange how people nowadays who hang on Richard Dawkins' every word conveniently forget how many people died in the 20th century at the hands of "atheist" communist states. But you're right, that doesn't mean much about this book, which might say something else. Good article.
I think doing the same than David Thorne (sending a .gif to a creditor), would be a great way to collectively and massively make a point to credit cards in protest to their recent self ruining greed.
I am willing to send .gifs instead of payments to my credit cards because they have been getting too greedy lately by cutting credit lines, closing accounts and increasing percentage rates.
My case:
My credit score was ruined by one card then all the other ones. I feel this was due to their greed. Greed that will ultimately ruin them because as they'll finf out alot of people can't afford the credit card comapny's greed. In my case, I can't.
My scor used to be 750, but I only made minimum payments for a couple of months and now my score is 650.
First, one card that I had used to about 40% my limit was cut to the point that it was like 95% full. That reflected on my credit score, and then the same card said increased the %. Then that reflected even worst in my score and that must have scared other cards so they all increased their %.
Now I'm almost to the point that I can't make the minimums or can't make payments on time.
My call to the world:
Lets send a .gif as payment to every credit card that has pushed us to the limit of not being able to pay.
Statistically you spend more money on credit than you do if it was a debit card.
Before we got married, my wife had the same theory: charge everything to the credit card and just pay it off at the end of the month. She would get all sorts of meaningless crap. She would pay it off though.
Fast forward to today and now we're trying to pay off $20,000 in credit card debt because we "thought we could pay it off each month." All because we could pay it off.
Sometimes, the best way to solve a problem is to not even approach the problem to begin with.
Matthew09
I am intrigued! I find it interesting to contrast and compare siblings raised together. Being all that Robert Kyosaki is and has to offer, this will be an enjoyable read.
Some retailers ship so quickly that the extra cost for fast shipping isn't worth it. In my experience Amazon, NewEgg, and Crucial have been excellent in terms of order fulfillment and shipping.
Many e-retailers offer free shipping from time to time, and it pays to take advantage of these offers if you can.
Amazon offers Super Saver Shipping for free on qualifying purchases >= $25.00. I always receive my purchases well in advance of the estimated time. Unfortunately this option is not available for third-party sellers.
This book sounds really interesting - I would love to read it. Thanks for the chance!
I find your article very interesting Fred. You have simple tips that everyone can actually follow. I agree, exercise can really help beat those blues! It would keep you fit and healthy; and improve your life as well!
This sounds like a great book and a perfect choice for my book club. I love the idea of challenging underlying assumptions or at least understanding what the givens are and when those change making sure your policies, decisions, actions, etc. are adjusted or, again, at least, reconsidering them. And, I was just having the physician vs. banker discussion with my sister a few weeks ago based on the economic climate in Charlotte (home of former First Union turned Wachovia soon to become Wells Fargo and home of Bank of America, where, foreclosure rates are greater than the national average now that it's not as easy to hold on to the $300K per year bank job).
I cant believe that this deal is sooo good!
I've found that the best way for me to eat (as well as the most economical) is to make sure that the food I eat has some nutritional value that my body can use. To take the instance of the hamburger - no one can deny that it's cheap. To make it a worthwhile meal, I throw away the bun. The bun is just a bunch of processed sugar and junk, and since that stuff makes your blood sugar and insulin levels skyrocket, it will just make you hungrier and fatter. You're left with veggies and a burger patty. The veggies are good for you, and while the burger isn't the most desirable form of meat, it has protein to feed your cells and some fat to keep you sated. Another interesting tidbit - a lot of the fat in a hamburger is in the bun, since it soaks up all the grease.
No more late night calls to my daughters-"Help, my computer is frozen" or "what the hell happened to my 3 page letter-it's GONE"!.
This 53 Yeal Old Mom really wants to be a "Geek Goddess".
From point one "If you were formally in the know about all things business related" - that should probably read 'formerly'. The former does make sense, but I doubt it's the meaning you were intending.
@ bucky
Depending on how cold it is, hot water may not be a good idea. The glass may actually crack from the quick temperature change! I have used hot water myself. Someone told me about the this and I have not used it since.
Hey, I love your posts. I generally love philately. That's why I'm aking you to keep posting cool posts!
Greeting! :)
It is really interesting to learn so many uses of toothpaste. I liked especially the idea of cleaning stained clothes with toothpaste.
Does it work for ebay UK as well?
There is lots of hardware available for a very low cost. It may not be always on the leading edge technologically, but it does the job. Craiglist and EBay are probably excellent sources for used gear. I've even seen stuff that's worth picking up from local garage sales in the neigborhood.
I have Rich Dad, Poor Dad waiting for me. Rich Brother, Rich Sister would make a great addition. Thank you in advance. F
The way I was raised, we'd call this *cheating* - and that is exactly what it is.
I have to agree with you. This is a rather sad post.
I save thousands of dollars every year by couponing. Every non food item I buy - every one - I've either used a coupon or purchased using CVS's ECB program.
My grocery budget - the money I spend each week on food and non food items - went from $175 a week to less than $90 once I started actively couponing - and I also make sure to patronize stores when it is triple coupon time.
If you looked under my bathroom sink, you'd see the 10 packages of razors I've gotten for free because of couponing. Under my kitchen sink is multiple bottles of dish soap - again, all free.
Last week, Harris Teeter had the snowflake toilet paper on clearance sale for .99 for a 4 pack. I had a .50 coupon doubled to $1.00.
I have enough TP that I'll be using snowflake design TP well into July.
I disagree with the original post. Coupons ARE worth it, if you just use some common sense.
After the switch you will not be able to use your vcr's tuner. Instead, you will be using the tuner of your hdtv and sending the output of the tv to your vcr to record.
The biggest problem with this setup is that your tuner needs to be set on the channel you want to record as the vcr will no longer have the ability the change the channel.
Interesting hidden cost that I hadn't thought of before!
Being rich is having choices. This could mean you have millions of dollars and choices or $10 and choices. There are many people in this world that have worldly riches but very few choices - or - are so cosumed by riches that they won't make choices. It's sad really....