Personal Economics 101

1. Obstacles are opportunities Marcus mastered the art of turning every obstacle into an opportunity. Nothing was universally negative in his mind. In this vein, every hardship has at least one positive aspect. 2. Don't spend time worrying about what people think of you "Your energy and time are both limited, so don't waste them on what those inconsequential to your life are doing thinking and saying." 3. Focus on the present "Each of us lives only now, this brief instant. The rest has been lived already, or it impossible to see." 4. You are the architect of your perceptions "You have the power over your mind -- not outside events. Realize this and you will find strength." 5. Value the right things in life and your life will have value “A person’s worth is measured by the worth of what he values.” 6. No goal is out of reach “Because a thing seems difficult for you, do not think it impossible for anyone to accomplish.” 7. Be grateful for what you h...

The Richest Man in Babylon  is an absolute gem of a book that imparts timeless financial wisdom in a captivating and relatable manner. George S. Clason's storytelling takes you on a journey to the ancient city of Babylon, where simple yet profound financial principles come to life. This book is a masterpiece in teaching the art of managing money, showcasing principles like saving a portion of your income, investing wisely, and living within your means. Through relatable parables and anecdotes, Clason delivers valuable lessons that remain as relevant today as they were when the book was written. What sets this book apart is its ability to simplify complex financial concepts. The storytelling format makes it engaging and easy to understand, even for those who are new to financial literacy. As you follow the characters' journeys to financial success, you'll find yourself not only entertained but also inspired to apply the lessons to your own life. "The Richest Man in Baby...

You'll find these concepts of Stoicism in Meditations  by Marcus Aurelias , a Roman emperor from 161 to 180 AD and a Stoic philosopher.

  A client called one afternoon and said, “I need $50,000 out of my IRA account.” “Uh, ok. Why?” I responded. “To pay off my credit cards. The interest is killing me.” “Yeah, I get that. Why are your credit card debts so high?” “Well, I just don’t make enough money to pay for the things I need.” “Ever thought about getting another job or moving to a less expensive house?” “Nah, I like my job and house.” I fulfilled her request and a year later it repeated. Eventually, her nest egg was, well like Humpty Dumpty. Not exactly sure what she did after that. She never calls. I kind of feel lonely. Now, my wife and I use credit cards. She has a wallet full of them. Different ones for major companies we buy from. They give us discounts or we build points. But every month we pay off the balances. No carryover and no interest. Just convenience and rewards. The credit card companies have a name for people like us: “deadbeats”. No kidding. My wife was talking with a credit card service person r...

From " Outliers: The Story of Success " by Malcolm Gladwell.  Genius is not everything—emotional and practical intelligence are also critical to success The man who invented the Intelligence Quotient (IQ) test was Lewis Terman, a professor of psychology at Stanford. His area of expertise was quantifying intelligence. In the early 1920s, he decided to dedicate his life to the study of singularly gifted kids. After a thorough vetting process through several rounds of tests given to elementary students in California, Terman selected a group of 1,470 children who had done brilliantly on the tests. The average IQ among the children was 140, and some had IQs as high as 200. He affectionately referred to these children as the “Termites,” and he dedicated his life to tracking their progress and life events. IQ matters, clearly, but only up to a point. An IQ of 100 is average and above 145 is considered genius, but an adult with an IQ of 180 is not more or less likely to win a Nobel P...

 I got this question on Quora today. It's a common question. The answer I provided is below.  I got into debt young as I didn’t realize how important it was to have a good credit score. How can I get myself out of this mess? I’m worried it’s going to affect future relationships. You really must to want to be debt-free. There is no other way. It’s a process, of both knowledge of personal finance, and modifying your financial behavior. But it is something you can achieve, if you create a plan and follow the steps of sound financial planning. I’m going to tell you up front that it will take quit a bit of work and effort on your part, depending on how much debt you have, and what you are willing to do. We had a saying in the military about what needed to be done do accomplish our mission: “Whatever is necessary.” This will be the same kind of thing. So you have to develop the same mindset. Be hungry. Personal finance is 20 percent knowledge, and 80 percent behavior. When I starte...

I always suspected that living paycheck to paycheck did not involve your income, but was influenced by bad behavior and outright ignorance of how to handle your personal finances. And throw in some vanity, and you've got a recipe for eating cat food in retirement. Or maybe you'd prefer dog food.  Been there, done that, so I'll include myself in this category, until I shook off the insanity and put things right. I'm on a ribeye diet, nicely retired, thank you. Here are some facts, as reported by Business Insider. In a survey this June, 60% of millennials earning over $100,000 said they live paycheck to paycheck. Some of these millennials - known as HENRYs - prefer a comfortable, expensive lifestyle. In today's economy, $100,000 is considered middle class in the US. High-earning millennials feel broke. Sixty percent of millennials raking in over $100,000 a year said they're living paycheck to paycheck, found a survey this June by PYMNTS and LendingClub, which ana...

This is a question I get asked a lot on Quora. "What are the best ways to get out of debt?" Here's my most recent answer: You really must to want to be debt-free. There is no other way. It’s a process, of both knowledge of personal finance, and modifying your financial behavior. But it is something you can achieve, if you create a plan and follow the steps of sound financial planning. I’m going to tell you up front that it will take quit a bit of work and effort on your part, depending on how much debt you have, and what you are willing to do. We had a saying in the military about what needed to be done do accomplish our mission: “Whatever is necessary.” This will be the same kind of thing. So you have to develop the same mindset. Be hungry. Personal finance is 20 percent knowledge, and 80 percent behavior. When I started I had more than $50,000 in credit card debt, had two mortgages (one on a rental house that was actually costing me more than I made in rents), and a cou...

Key insights from Happiness is a Choice You Make: Lessons from a Year Among the Oldest Old By John Leland What you'll learn This book began as a series of in-depth interviews that New York Times reporter John Leland conducted called "85 and Up." The book's title is...

Right now, people are feeling like there is a lot of pressure to buy a home. After all, mortgage rates have been insanely low. So, for many who have been saving up to buy their first home, now feels like a good time. But, while the nationwide real estate market is booming, you probably aren’t looking for an average home just anywhere. And local markets can see vastly different stories playing out that you don’t hear about when you’re taking a look at the real estate market as a whole. So, how can you look at specific data that applies to your specific situation and still make an informed decision? While there are benefits to buying, let's look at some top reasons not to buy a house. First, the original article where this material came from stated that you shouldn't buy if you're nearing retirement. I couldn't disagree more. If the other criteria, such as income, debt, etc., are in line, buying can be a good choice, as it tends to lock in your housing costs. This has be...

There is nothing that will derail your goals of becoming financially independent, or financially solvent, or debt-free, or on track for a great retirement, than not having an emergency fund.  As the name suggests, an emergency fund is a stash of money set aside to cover living expenses in case of an emergency like a job loss, unexpected medical need or last-minute car repair. But how much money you should have in that fund depends on your income and your financial obligations, especially basics such as rent, utilities and food. Your emergency fund should be used only as a last resort for real emergencies, once other strategies such as reducing your expenses have been exhausted. Making that commitment will mean you'll have access to this money when you truly need it, something you'll be grateful for. Your emergency fund should be separate from your regular checking and savings accounts, and it should be filled with money only for emergencies. It's best to put your emergency ...

https://youtu.be/cbjyMfwRCPA

I slept and dreamed that life was beauty. I woke and found that life was duty. 

1. Not having an emergency fund. The goal should be six months expenses, but start with $1,000 as a minimum. 2. Not having an automated savings system. Don't save what's left over. That rarely works. Pay yourself first, with an automated system. 3. Not having health insurance. While it looks like an unnecessary expense, you must have some type of catastrophic coverage.  Consider an HSA as a minimum. 4. Buying things to impress other people. Don't do this. Develop an attitude that doesn't wrap your self-worth in material things. 5. Not having an investing education. This should be a continuous, life-long learning process. https://youtu.be/s8mgyuUPRZY

It takes time and discipline to become money smart. It doesn't happen overnight. Some people go through life never saving and living paycheck to paycheck. Learning how to be able to handle your money at an early age may not seem sexy, but it will certainly put you down the right path. But if you think you have enough time to become serious about your finances, think again. You may still feel young and invincible even when you hit your 30s, but the scary truth is that you are halfway to retirement. It is time to put the financial foolhardiness of your 20s behind you and become more frugal with your cash by mastering these top financial habits. 1. Actually Stick to a Budget Most 20-somethings have played around with the idea of a budget, have used a budgeting app, and have even read an article or two about the importance of creating a budget. However, very few individuals actually stick to that budget, or any budget at all. Once you turn 30, it's time to ditch the wishy-wash...