Like most things in life, we usually make snap decisions about buying a car. We go to a dealership to “look at cars”, and two hours later we are excited to discover we are driving our shiny new car home. Has this happened to you? It has to me.
Unfortunately, this is the worst possible way to buy a car. $250 per month may sound affordable, but nothing could be further from the truth. $250 per month does not come close to the cost of owning and using a car.
It seems like a pretty simple question, but most people I talk to have never even thought about it. People just seem to go to work, come home, crack open a cold one, and watch TV until it is time to go to sleep. I guess people don’t like to think about this question because the answer is “a lot more than I have right now”.
After reading this article on Yahoo, I started thinking about it some more. If people had a concrete number, would that make it easier to achieve? In my personal experience, having a goal accelerated the process in a huge way. Even if when I set the goal it seemed like it would take forever.
I think part of the problem is that people don’t really think about spending money. They just buy what they want, and randomly say, “I can’t afford it” at other times. It seems that at the most important times, like when buying a house or a car, we do spend the money.
One of the goals of our company is to allow anyone to retire within a few years, instead of wasting away in a terrible job for 40 years. Yet that begs an interesting question,.
What would you do with all your time?
Each person gets to answer that for themselves. Perhaps they could peruse their artistic dreams, like the Morphs.
Well, maybe this sort of art is not such a great idea…but the video is so funny I had to share it with you!
After reading this great post at Early Retirement Extreme, I was reminded about the low quality of financial advice that most people accept. Not only do they accept it, but they actually pay for it!
Mutual fund companies make billions of dollars from unsophisticated and naive investors who buy mutual funds and hold them. What most of these would-be investors don’t realize is that each year the mutual fund managers take some of the money for themselves. It seems like a small amount, only about one percent.
Unemployment is high, the economy might be about to fall off a cliff, and the government debt is increasing exponentially. But those facts aren’t really that important. What is important is buying the new iPhone!
As I have mentioned in previous posts, one thing that remains constant over time (so far!) is human nature. We are a country of consumers, and nothing short of massive financial chaos à la the Great Depression will change it.
After reading this post over at Monevator, I considered buying shares myself. I don’t really think the time is right for me, but there were several interesting points I got from the post.
The first point is that often when everyone else is selling, it might be a good time to buy. Just looking at the US markets after the massive selloff at the end of 2008 makes me wish I had bough stock then. Although there is no guarantee that the market will recover right away, there is a good chance that it will if the problem that caused the selloff is short lived.
As you probably know, there was quite a bit of excitement on Wall Street yesterday. Apparently a panic was caused by images of rioters in Greece. And then it was announced that there was some kind of trading errors that caused or perhaps exacerbated the selloff. Was this really what happened, or is it just a way of trying to calm the markets?
I thought it was an interesting question because it shows the difference between what people expect and what people don’t expect. Events like the Asian Financial Crisis and the Russian default in the 90’s were largely unexpected, and these were termed Black Swans. They had massive effects on the economies and markets of the world, and caused the largest Hedge Fund collapse in history.
Technology will touch everything. And it will change everything. Personal finance is no exception.
Your 401(k) plan isn’t immune from the reach of technology, either. Companies probably thought they could offer their plans and it would be a secret between the company and the employee.
Most 401k plan participants can easily find out what kind of fees that plan charges, or even what types of investments their plan holds.
But a new technology is changing that.
BrightScope quantitatively ranks 401(k) plans–and participants, advisors, and companies all could be better for it.
Depending on which researchers you talk to, about half to two-thirds of all Americans aren’t saving enough for retirement.
There’s a variety of reasons for not saving for retirement. You might think you don’t have the spare money. You might think that saving money for retirement can be started “later.” Or, you’re one of those James-Dean-live-fast-die-young type of people who figure they won’t be around long enough to enjoy the delayed fruits of their labors.
Worse, some people might think they can rely on Social Ponzicurity to take care of them in their golden age.
The truth is, a lot of factors can affect your retirement. So, if you’ve calculated your retirement savings, or you’re going to–you might want to consider the following six factors that can influence your retirement:
The original idea for Online Investing AI is to help everyone retire exponentially earlier than current investment systems that are available. (See, I was nice and said “systems,” not schemes.)
Is that so wrong?
Actually, it might. Or, at the very least, that goal and our own conception of retirement may need refinement based on an article from the Amen Clinics.
The Singularity is Near by Ray Kurzweil is the book that started it all. If you want to know about the future, it is the best book I've found. Absolutely fascinating.
Rich Dad Poor Dad by Robert Kiyosaki. This is one of the most popular personal finance books of all time. A must read for anyone who wants to become financially successful.
The Millionaire's Secrets is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
The One Minute Millionaire is a great book about how to become a millionaire. Written by Mark Victor Hansen and Robert G. Allen, this book combines an inspirational story with practical everyday skills.
The Art of Learning is the fascinating story of Josh Waitzkin, the world champion in both chess and Pushing Hands. His style is mesmerizing, and the strategies for learning are priceless.
The Alchemist is one of the best-selling and most inspirational books of all time. Anyone who has ever had a dream in life needs to read it. Perhaps my favorite book of all time.
Love is the Killer App is a powerful, step-by-step book about how to have a wonderful experience and spread love in any working environment. Think the office has to be a source of bad energy? Think again.
The 4-Hour Workweek is a powerful book full of strategies about how to get more done in less time. For anyone who is looking for leverage or wants to achieve success quickly, this book is absolutely invaluable.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
