Thick as a Brick Award – June 2018

I first introduced this idea back when I saw someone whose work I admire, Dave Ramsey, tout some rather uninformed financial advice on “buy term insurance and invest the rest” to his huddled masses.  This time I take a look at a long list of shallow financial advice published for the sole purpose of “looking useful”, rather than being effective.  On the surface the suggestions might sound good to the casual reader, but without discussing related information and situations, can be misleading and financially riddled with hazard.  So, let’s dispel some poor financial advice. Continue reading “Thick as a Brick Award – June 2018”

Guilt-Free Spending (part 2)

Part II

When you keep a budget, you should know where your money is, where it went, what it’s being used for, and how much you have reserved for your personal use.  The reason that many people don’t have money is that they don’t plan to have money.  Really, that’s not a flippant statement.  People who have money have made a plan to have money; meaning they’ve made a decision and a plan to not spend everything they makeContinue reading “Guilt-Free Spending (part 2)”

Guilt-Free Spending (part 1)

 

Part I

‘Why do I feel guilty spending my own money?’ is a question that many people struggle with.

The seeds of this article stem from that question I saw posted in an online forum that I really had the desire to address.  When I tried to access the answer page to submit an answer, the user had retracted their question, likely thinking that it wasn’t a valid concern.  I thought it was a very valid concern and I had thought, “I know exactly why she feels guilty” and wanted to help.  So, since I didn’t get to answer the girl’s question, I’ll address it here and hope that she and others who have that same very common concern find it someday. Continue reading “Guilt-Free Spending (part 1)”

Young Single Professional Woman, age 26

The account with which we matched this young professional woman provided the ability to leverage a large sum of tax-free money available to her while allowing her to build wealth away from the market downturn exposure of Wall Street and at much better rates than those available from the banking industry.    Both capital and earnings of such an account could be made available to her without it being classified as “earned income” and would therefore not be taxable.This young woman took a job with a doctor’s office as receptionist while in high school and advanced her training while working to become a medical assistant.  Being single and having a good relationship with her family, she continued to live at home with her parents despite making good money over nearly 10 years.  Maintaining low living expenses freed up considerable funds while she was yet young to begin building wealth that could grow over a number of decades prior to retirement. Continue reading “Young Single Professional Woman, age 26”

The Game You Write Your Own Rules For…

Empowered to do what you’d like to do and to be who you’d like to be.  All too often these days people, organizations, and ‘authorities’ are making all too many decisions ‘for your own good’.  If you’d like to retain or recover more of the ability to make your decisions based on your own values, you might want to ‘empower yourself’.  And you don’t need anyone’s permission to do it. Continue reading “The Game You Write Your Own Rules For…”

Wealthy And Rich Are Not The Same! Part 1

Wealth as defined by Robert Kiyosaki in Cashflow Quadrant is measured in time, or the ability to buy back time.  I both like and readily identify with this definition because I have had some experience with it.  I see wealth as “more money than you need for your basic needs today”.  If I can feed myself, keep the electricity on, keep the payment up on the car, insurance, gasoline; and go about my life without impacting my lifestyle through lack of money, I’ve met my needs.  If I then have enough money to also meet my needs for tomorrow while maintaining my lifestyle, then I have collected wealth; more than what I need today.  By that definition many people in modern society have some degree of wealth, but we’re not taught to think about money in those terms.  In fact, if you were educated by the public school system in the US, you aren’t taught much about money, budgeting, or building wealth at all in the mainstream curriculum! Continue reading “Wealthy And Rich Are Not The Same! Part 1”

USAA and Fox’s Sean Hannity

USAA recently pulled its advertising from the Sean Hannity show on FOX’s news network due to the political content and thousands of clients are dropping their accounts!

While it’s a good thing to recognize market extortion when you see it, and even more impressive to take a stand and react to it actively, many people make decisions like this emotionally without considering related consequences.  Moving your business from a company with whom it offends you to continue doing business is a positive reaction, but doing it properly with a little forethought for how it affects you can either hit or protect your wallet. Continue reading “USAA and Fox’s Sean Hannity”

Simple, But Easy?

I can relate to hesitation about a belief in financial success. When I was younger I chose two careers that interested me greatly, but didn’t pay particularly well; music and photography. I enjoyed them both, and I was good enough at each to scratch a living from them, but financial success or excess was not within my reach at the time I was pursuing these careers. I have been deeply in debt, and I have been unemployed. Those problems have solutions. I have solved each of those problems more than once in my own life.

This article is written to offer you encouragement that whatever your financial situation, you can improve it. My mission with the MoneySmart Solutions book, davidpandone.com, and my Wealth Strategies activity is not to make you rich, though you can certainly achieve that with the skills I can teach you. More work with the same skill set that solves a debt problem can produce an excess that will generate more money than you need. That is what creates wealth: simple skills and proper habits. That’s what the skills learned in the MoneySmart book and information at davidpandone.com can help you learn. At that point you’ll have another problem: ‘how do I protect what I’ve created from those that will gladly take it from me?’ That’s where I can help you with my Wealth Strategies activity. On both sides, both broke and wealthy, there are issues to deal with. Continue reading “Simple, But Easy?”