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Buying cars, Diet Foods, Down payments, Disability Insurance and More @ the
2008-05-04 19:57:00 This RoundUp includes what are, in my opinion, some of the best personal finance articles from the past week.The carnival of perosnal finance was hosted by Lazy Man Money. Here are my picks from the carnival:Prepare For A Recession Or Job Loss With 2 Budgets @ Harvesting DollarsOur Car Buying Experience - Part Three: 5 Lessons Learned to Reduce Stress and Cost @ Chief Family OfficerVanguard Global Stock Index Fund And Why I Won?t Be Buying It @ Amateur Asset AllocatorLies We Tell Ourselves While Spending Money @ Think Your Way to WealthThe Festival of Frugality was hosted by Sound Money Matters. These are the articles I've found most valuable:The Problem with Diet Foods @ Cheap Healthy GoodOne Great Potential Benefit Of Higher Gas Prices - Less Traffic @ Money Blue BookThe Money Hacks Carnival was hosted by Money Hacks. My picks are:With the Price of Everything Going Up, How Do You Budget? @ I've paid for this twice alreadyDiversification of Income @ My Dollar PlanMore great posts... More About: Cars , Insurance , Disability
Buying cars, Diet Foods, Down payments, Disability Insurance and More @ the
2008-05-04 19:57:00 This RoundUp includes what are, in my opinion, some of the best personal finance articles from the past week.The carnival of perosnal finance was hosted by Lazy Man Money. Here are my picks from the carnival:Prepare For A Recession Or Job Loss With 2 Budgets @ Harvesting DollarsOur Car Buying Experience - Part Three: 5 Lessons Learned to Reduce Stress and Cost @ Chief Family OfficerVanguard Global Stock Index Fund And Why I Won?t Be Buying It @ Amateur Asset AllocatorLies We Tell Ourselves While Spending Money @ Think Your Way to WealthThe Festival of Frugality was hosted by Sound Money Matters. These are the articles I've found most valuable:The Problem with Diet Foods @ Cheap Healthy GoodOne Great Potential Benefit Of Higher Gas Prices - Less Traffic @ Money Blue BookThe Money Hacks Carnival was hosted by Money Hacks. My picks are:With the Price of Everything Going Up, How Do You Budget? @ I've paid for this twice alreadyDiversification of Income @ My Dollar PlanMore great posts... More About: Cars , Insurance , Disability
How to Save by Making Credit Card Payments More Real and Tangible: 5 Practi
2008-05-03 13:34:00 A higher tangibly of credit card payments will ensure spending lessMaking credit card payments more tangible is very important as the tangibility of the payment determines how easy (or hard) it would be to make it.Credit card payments, which are easier and less tangible then cash payments, will often result in higher spending as they are simply easier to make. Paying cash will reduce expenses since parting with your bills and coins is harder.However, credit card payments are very convenient and as described in a previous post provide us with a lot of data for later analysis and for budget planning and review as discussed in this previous post about the tradeoff between cash and credit cards.Making credit card payments more tangible would allow us to benefit from both worlds: spending less and enjoying the convenience of credit card payments and the data they provide.How do we make credit card payments more tangible?#1 Take regular peeks at your on line statementBack when I first sta... More About: Credit Cards , Card , Credit Card , Real
How to Save by Making Credit Card Payments More Real and Tangible: 5 Practi
2008-05-03 13:34:00 A higher tangibly of credit card payments will ensure spending lessMaking credit card payments more tangible is very important as the tangibility of the payment determines how easy (or hard) it would be to make it.Credit card payments, which are easier and less tangible then cash payments, will often result in higher spending as they are simply easier to make. Paying cash will reduce expenses since parting with your bills and coins is harder.However, credit card payments are very convenient and as described in a previous post provide us with a lot of data for later analysis and for budget planning and review as discussed in this previous post about the tradeoff between cash and credit cards.Making credit card payments more tangible would allow us to benefit from both worlds: spending less and enjoying the convenience of credit card payments and the data they provide.How do we make credit card payments more tangible?#1 Take regular peeks at your on line statementBack when I first sta... More About: Credit Cards , Card , Credit Card , Real
How to Fortify Your Job: 10 valuable (and challenging) Tips
2008-05-01 20:07:00 10 invaluable skills which are even more crucial todayWith each month bringing more news on additional job cuts it seems more focus should be placed on fortifying our careers and jobs in this economic slowdown, recession or whatever you'd like to call it.Fortifying our jobs, careers and place in an organization is necessary and just might make the difference between successfully navigating the current slowdown or struggling through it. Taking the right steps is a wise pre-emptive step which just might save us significant trouble and potential hardships in times to come.I believe there are some invaluable skills and characteristics every employee should adopt which will make him virtually indispensible. These are true for prosperity as well but play a more crucial role in a recession.I must say I doubt each person has the ability or capacity required to adopt all of these but we must to our best with what we've got. We all have at least one or two strengths where we can really stan... More About: Tips , Career
How to Fortify Your Job: 10 valuable (and challenging) Tips
2008-05-01 20:07:00 10 invaluable skills which are even more crucial todayWith each month bringing more news on additional job cuts it seems more focus should be placed on fortifying our careers and jobs in this economic slowdown, recession or whatever you'd like to call it.Fortifying our jobs, careers and place in an organization is necessary and just might make the difference between successfully navigating the current slowdown or struggling through it. Taking the right steps is a wise pre-emptive step which just might save us significant trouble and potential hardships in times to come.I believe there are some invaluable skills and characteristics every employee should adopt which will make him virtually indispensible. These are true for prosperity as well but play a more crucial role in a recession.I must say I doubt each person has the ability or capacity required to adopt all of these but we must to our best with what we've got. We all have at least one or two strengths where we can really stan... More About: Tips , Career
Credit Cards or Cash: A Costly Tradeoff
2008-04-29 21:58:00 Where do you stand in the tradeoff between cash and credit cards?There?s an ongoing debate on the preferred and recommended method of payment for routine, everyday expenses and purchases. Is paying cash better, and more financially sound, than paying with credit cards? Maybe it should be the other way around with credit cards being a more convenient method of payment?The trade off between cash and credit cards ? It doesn?t end with convenienceMany people recommend handling a monthly expense budget on a cash-basis. This recommendation is sound as it essentially contains two important principles:1. Increasing the tangibility of money ? Cash spending is the most tangible form of spending. When we pay cash we see the money literally leaving our wallet and hand and watch it slowly moving away from us and into the seller?s register making harder to spend.2. Following budget constraints ? Cash just runs out. Credit doesn?t. When the cash we allowed for this month is over it?s over (forcing... More About: Credit Cards , Cards , Budgeting
Credit Cards or Cash: A Costly Tradeoff
2008-04-29 21:58:00 Where do you stand in the tradeoff between cash and credit cards?There?s an ongoing debate on the preferred and recommended method of payment for routine, everyday expenses and purchases. Is paying cash better, and more financially sound, than paying with credit cards? Maybe it should be the other way around with credit cards being a more convenient method of payment?The trade off between cash and credit cards ? It doesn?t end with convenienceMany people recommend handling a monthly expense budget on a cash-basis. This recommendation is sound as it essentially contains two important principles:1. Increasing the tangibility of money ? Cash spending is the most tangible form of spending. When we pay cash we see the money literally leaving our wallet and hand and watch it slowly moving away from us and into the seller?s register making harder to spend.2. Following budget constraints ? Cash just runs out. Credit doesn?t. When the cash we allowed for this month is over it?s over (forcing... More About: Credit Cards , Cards , Budgeting
How to Break the Vicious Circle of Negative Cash Flow and Growing Debt
2008-04-28 16:48:00 Understanding the vicious circle is the first step out of itChronic overdraft and debt is a widely spread illness. Chances are many of the household who suffer from it are caught in a vicious circle of negative cash flow and debt. Even more likely is the fact that they are unaware of their situation and of the behavioral pattern responsible for it.The vicious circle A vicious circle is comprised of an interlinked series of events or behaviors which constantly reinforce themselves through feedback towards greater instability. In household finances the classic vicious circle would like this:The total negative cash flow of the household keeps getting bigger and bigger. The end is obviously and painfully clear.Getting caught in such a vicious circle is terribly easy. Express loans, credit and other magical solutions are handy and available to everyone. These magical solutions obviously carry some of the highest interest rates known to man (other than loan sharks I guess) which bury us f... More About: Break , Debt , Cash , Growing , Circle
How to Break the Vicious Circle of Negative Cash Flow and Growing Debt
2008-04-28 16:48:00 Understanding the vicious circle is the first step out of itChronic overdraft and debt is a widely spread illness. Chances are many of the household who suffer from it are caught in a vicious circle of negative cash flow and debt. Even more likely is the fact that they are unaware of their situation and of the behavioral pattern responsible for it.The vicious circle A vicious circle is comprised of an interlinked series of events or behaviors which constantly reinforce themselves through feedback towards greater instability. In household finances the classic vicious circle would like this:The total negative cash flow of the household keeps getting bigger and bigger. The end is obviously and painfully clear.Getting caught in such a vicious circle is terribly easy. Express loans, credit and other magical solutions are handy and available to everyone. These magical solutions obviously carry some of the highest interest rates known to man (other than loan sharks I guess) which bury us f... More About: Break , Debt , Cash , Growing , Circle
Overspending, Sleeping, Eating (healthy) and Equal pay @ The Round Up
2008-04-26 15:06:00 It?s been a good week for me at The Personal Financier. I?ve had some spare time and I think I?ve put it to good use writing a few posts that I?ve planning on for some time now. I hope I?ll be able to keep up this pace in the future though I doubt it. My goal is to publish a new, quality, post at least every other day. If I can keep that up I?ll be glad.I?ve received a lot of visits from fellow bloggers hosting the better known personal finance carnivals lately and would like to return the favors by choosing my own picks, as customary.On another note the investment basics carnival I was planning on didn?t turn up as well as I?d expected with most content barely useable. I?ve decided on expanding this round-up instead with some better article from around the personal finance blogosphere.I?ll start with the carnival of personal finance (#149 ? Chasing dreams edition) hosted by The Happy Rock. The carnival hosts over 100 articles each week with the best of personal finance blogging. He... More About: Sleeping , Round Up , Equal , Healthy , Round
Overspending, Sleeping, Eating (healthy) and Equal pay @ The Round Up
2008-04-26 15:06:00 It?s been a good week for me at The Personal Financier. I?ve had some spare time and I think I?ve put it to good use writing a few posts that I?ve planning on for some time now. I hope I?ll be able to keep up this pace in the future though I doubt it. My goal is to publish a new, quality, post at least every other day. If I can keep that up I?ll be glad.I?ve received a lot of visits from fellow bloggers hosting the better known personal finance carnivals lately and would like to return the favors by choosing my own picks, as customary.On another note the investment basics carnival I was planning on didn?t turn up as well as I?d expected with most content barely useable. I?ve decided on expanding this round-up instead with some better article from around the personal finance blogosphere.I?ll start with the carnival of personal finance (#149 ? Chasing dreams edition) hosted by The Happy Rock. The carnival hosts over 100 articles each week with the best of personal finance blogging. He... More About: Sleeping , Round Up , Equal , Healthy , Round
Investing in Your Pantry and Bargain Antiques @ CNN Money and Yahoo! Financ
2008-04-25 22:06:00 At a great timing Brett Arends wrote a great article for the Wall Street Journal which was featured on Yahoo ! Finance titled "Load Up the Pantry".She argues that as flour, rice, milk, eggs and more basic food prices sore investing your money in a stocked pantry is wiser than just letting it rot in a bank account maxing at 4%.The article provides additional background and some future predictions (in continuance to my post on the commodity and food prices) and makes for a very interesting and recommended read in my opinion.Another article with real added value was published at CNN Money and reveals "The best kept secrets of antique shoppers". This is a great post on a tightly closed, less familiar market. Apparently there are real bargains out there.This weekend The Personal Financier will feature the "Carnival of Investment Basics" and a weekly round-up as usual. Next week I'm planning on posting two great posts about fortifying our careers and on breaking the vicious circles of deb... More About: Investing , Bargain , Antiques
Investing in Your Pantry and Bargain Antiques @ CNN Money and Yahoo! Financ
2008-04-25 22:06:00 At a great timing Brett Arends wrote a great article for the Wall Street Journal which was featured on Yahoo ! Finance titled "Load Up the Pantry".She argues that as flour, rice, milk, eggs and more basic food prices sore investing your money in a stocked pantry is wiser than just letting it rot in a bank account maxing at 4%.The article provides additional background and some future predictions (in continuance to my post on the commodity and food prices) and makes for a very interesting and recommended read in my opinion.Another article with real added value was published at CNN Money and reveals "The best kept secrets of antique shoppers". This is a great post on a tightly closed, less familiar market. Apparently there are real bargains out there.This weekend The Personal Financier will feature the "Carnival of Investment Basics" and a weekly round-up as usual. Next week I'm planning on posting two great posts about fortifying our careers and on breaking the vicious circles of deb... More About: Investing , Bargain , Antiques
Maybe Money Does Buy Happiness After All @ The New York Times
2008-04-24 18:18:00 New research points to high correlation between wealth and satisfactionWe like to think money doesn?t really make that much of a difference. The intuitive truth is that it does, but we must be careful not to jump to early conclusions.In an article by David Leonhardt for the NY times titled ?Maybe Money Does Buy Happiness After All? a new research by two economists from the University of Pensilvenya is discussed. I urge you to take the time and read the complete article but for the ones of you who are more pressed here are the main points of the research:The contrast between wealth and low satisfaction (demonstrated in post war Japan) was research by Richard Easterlin in 1974 and became known as the Easterlin Paradox.Mr. Easterlin also claimed relative income mattered far more than absolute income.The paradox became a social science classic for obvious reasons. We all like to believe we all have the same chance at happiness (I believe we do).In a new research, economists Betsey Steve... More About: Economics , New York , York
Maybe Money Does Buy Happiness After All @ The New York Times
2008-04-24 18:18:00 New research points to high correlation between wealth and satisfactionWe like to think money doesn?t really make that much of a difference. The intuitive truth is that it does, but we must be careful not to jump to early conclusions.In an article by David Leonhardt for the NY times titled ?Maybe Money Does Buy Happiness After All? a new research by two economists from the University of Pensilvenya is discussed. I urge you to take the time and read the complete article but for the ones of you who are more pressed here are the main points of the research:The contrast between wealth and low satisfaction (demonstrated in post war Japan) was research by Richard Easterlin in 1974 and became known as the Easterlin Paradox.Mr. Easterlin also claimed relative income mattered far more than absolute income.The paradox became a social science classic for obvious reasons. We all like to believe we all have the same chance at happiness (I believe we do).In a new research, economists Betsey Steve... More About: Economics , New York , York
Spontaneous Observations on Commodity Prices - Will Prices Remain so High?
2008-04-23 22:25:00 A multitude of reasons suggest commodity prices might not remain this high for long (oil just might)My post on ?The financials of 2008 ? What will we talk about? has proven itself so far (to my great surprise). True, I didn?t think the credit crisis would prove to be so deep but my thoughts on inflation, commodity prices and the Chinese market were pretty accurate. In this post I?ll be sharing my observations on commodity prices. Naturally, this is my personal opinion and should not be used to make investment decisions.Commodity prices have continued their unprecedented rise. Corn, wheat, rice, oil and many other commodity prices have all skyrocketed. The rise in basic food products? prices have caused riots to erupt in developing countries such as Egypt, Cameroon and Burkina Faso. Other countries such as Vietnam, India and Pakistan have banned grain export as farmers and traders hold on to stock and await more price increases.The whole word is anxiously watching food prices rise li... More About: Economics , Investing , Observations , High , Spontaneous
Spontaneous Observations on Commodity Prices - Will Prices Remain so High?
2008-04-23 22:25:00 A multitude of reasons suggest commodity prices might not remain this high for long (oil just might)My post on ?The financials of 2008 ? What will we talk about? has proven itself so far (to my great surprise). True, I didn?t think the credit crisis would prove to be so deep but my thoughts on inflation, commodity prices and the Chinese market were pretty accurate. In this post I?ll be sharing my observations on commodity prices. Naturally, this is my personal opinion and should not be used to make investment decisions.Commodity prices have continued their unprecedented rise. Corn, wheat, rice, oil and many other commodity prices have all skyrocketed. The rise in basic food products? prices have caused riots to erupt in developing countries such as Egypt, Cameroon and Burkina Faso. Other countries such as Vietnam, India and Pakistan have banned grain export as farmers and traders hold on to stock and await more price increases.The whole word is anxiously watching food prices rise li... More About: Economics , Investing , Observations , High , Spontaneous
Do you understand investment risk?
2008-04-22 13:17:00 Talk of investment risk is abundant but what is investment risk really?Stock investments are risky; Investing in corporate bonds is less risky but still carries some risk; Investing in government bonds is risk free; we each have our own risk preferences and should invest accordingly, and so on and so forth.We all know and recite these market truths by heart. But do we understand investment risk for what it is?Investment risk is often defined as ?The volatility of returns. Generally, the higher the potential return over time, the higher the level of risk involved? (BT financial group).Essentially, a riskier asset means the asset?s returns are more variable. The economic risks which are responsible for this volatility make good subjects for a series of different posts. Suffice to mention the following as sources for varying volatility of returns in different financial assets: Operational risk, financial risk, credit risk, market risks, geographical risks and more (endlessly more). Wha... More About: Risk Management , Risk , Understand
Do you understand investment risk?
2008-04-22 13:17:00 Talk of investment risk is abundant but what is investment risk really?Stock investments are risky; Investing in corporate bonds is less risky but still carries some risk; Investing in government bonds is risk free; we each have our own risk preferences and should invest accordingly, and so on and so forth.We all know and recite these market truths by heart. But do we understand investment risk for what it is?Investment risk is often defined as ?The volatility of returns. Generally, the higher the potential return over time, the higher the level of risk involved? (BT financial group).Essentially, a riskier asset means the asset?s returns are more variable. The economic risks which are responsible for this volatility make good subjects for a series of different posts. Suffice to mention the following as sources for varying volatility of returns in different financial assets: Operational risk, financial risk, credit risk, market risks, geographical risks and more (endlessly more). Wha... More About: Risk Management , Risk , Understand
Why Bulls and Bears?
2008-04-20 19:29:00 Stock market etymology for the curiosThe famous New York Stock Exchange Bull sculpture is a beautiful work of art. The bull, seemingly moving, is radiating raw, yet restrained power, with surprisingly gentle grace as it prepares to storm up Manhattan.The statue, created by artist Arturo Di Modica in 1989, was apparently placed illegally in front of the NYSE. It was created by Modica to symbolize the strength and power of the American people after the market crash “Black Monday” in October 1987. Public protest was strong enough to keep it in place after it was seized by police.For those of us who are less familiar with stock market lingo a Bull market is a market characterized by an uptrend in stock prices and increased investor confidence while a Bear market is characterized by pessimism and downtrend in stock prices. But why bulls and bears?Etymology can be very surprising sometimes. I enjoy learning about the origin of words and phrases we use daily with little knowledge of wh... More About: Bears , Bulls
Why Bulls and Bears?
2008-04-20 19:29:00 Stock market etymology for the curiosThe famous New York Stock Exchange Bull sculpture is a beautiful work of art. The bull, seemingly moving, is radiating raw, yet restrained power, with surprisingly gentle grace as it prepares to storm up Manhattan.The statue, created by artist Arturo Di Modica in 1989, was apparently placed illegally in front of the NYSE. It was created by Modica to symbolize the strength and power of the American people after the market crash ?Black Monday? in October 1987. Public protest was strong enough to keep it in place after it was seized by police.For those of us who are less familiar with stock market lingo a Bull market is a market characterized by an uptrend in stock prices and increased investor confidence while a Bear market is characterized by pessimism and downtrend in stock prices. But why bulls and bears?Etymology can be very surprising sometimes. I enjoy learning about the origin of words and phrases we use daily with little knowledge of where ... More About: Economics , Investing , Bears , Bulls
Excess Frugality, Practical Tips and Gas Prices @ The Round-Up
2008-04-20 17:41:00 The American Economics Blog Carnival hosted my article ?Is Present Value - Value in the Present? The Economic sense behind Net Present Value" and featured some interesting posts. I especially liked:Fuels Costs, High Gas Prices and the Real Estate Investor @ BiggerPocketsThis article discusses some interesting effects high gas prices might have on real estate investors. An interesting point made is that increased fuel costs will also affect the selection process of the average home buyer as longer commutes to work become more costly. I believe low gas prices have created an inherent inefficiency in real estate and urban planning. I find suburbs to be one of the main problems created by this inefficiency resulting in commuters jamming highways and roads, pollution and waste of resources an time.I personally believe that with increased gas costs and environmental awareness the suburbs will cease to exist as we know them now and will slowly transform to more densely populated, self serv... More About: Tips , Round Up , Frugality , Round
Excess Frugality, Practical Tips and Gas Prices @ The Round-Up
2008-04-20 17:41:00 The American Economics Blog Carnival hosted my article ?Is Present Value - Value in the Present? The Economic sense behind Net Present Value" and featured some interesting posts. I especially liked:Fuels Costs, High Gas Prices and the Real Estate Investor @ BiggerPocketsThis article discusses some interesting effects high gas prices might have on real estate investors. An interesting point made is that increased fuel costs will also affect the selection process of the average home buyer as longer commutes to work become more costly. I believe low gas prices have created an inherent inefficiency in real estate and urban planning. I find suburbs to be one of the main problems created by this inefficiency resulting in commuters jamming highways and roads, pollution and waste of resources an time.I personally believe that with increased gas costs and environmental awareness the suburbs will cease to exist as we know them now and will slowly transform to more densely populated, self serv... More About: Tips , Round Up , Frugality , Round
How to Save Money by Analyzing Your Budget: 4 Basic Tools
2008-04-18 22:28:00 Can?t see the forest for the trees? Budget ing is an essential part of managing our personal finances. The story doesn?t end there though. We can and should learn to leverage our budget and the historical and future data it holds. By analyzing this data we can spot trends, problems and opportunities and increase our financial efficiency.Basic budgeting will help you keep a positive or zero cash flow, as opposed to a negative cash flow which leads to never ending debt. The next step would be analyzing a budget using basic statistical and analytical tools and trying to identify which expenditures are problematic, abnormal and hold the greatest potential for increasing savings.#1 ?I spend how much on eating out!?? or AverageThe most basic tool in budgeting is arithmetical average. Since our lives are cyclical and routine by nature using average costs will work 80% of the time. Averages can be put to good use in one of two ways:a. Analyzing average historical expenditures ? Averaging his... More About: Tools , Money , Save Money
How to Save Money by Analyzing Your Budget: 4 Basic Tools
2008-04-18 22:28:00 Can?t see the forest for the trees? Budget ing is an essential part of managing our personal finances. The story doesn?t end there though. We can and should learn to leverage our budget and the historical and future data it holds. By analyzing this data we can spot trends, problems and opportunities and increase our financial efficiency.Basic budgeting will help you keep a positive or zero cash flow, as opposed to a negative cash flow which leads to never ending debt. The next step would be analyzing a budget using basic statistical and analytical tools and trying to identify which expenditures are problematic, abnormal and hold the greatest potential for increasing savings.#1 ?I spend how much on eating out!?? or AverageThe most basic tool in budgeting is arithmetical average. Since our lives are cyclical and routine by nature using average costs will work 80% of the time. Averages can be put to good use in one of two ways:a. Analyzing average historical expenditures ? Averaging his... More About: Tools , Money , Save Money
How to Make Saving More Rewarding and Tangible: 5 Practical Tips
2008-04-16 19:29:00 Increasing the tangibility of your savings and rewarding yourself for achievements is crucial for success in this long term effort. Saving money consistently is hard. The temptations and needs are numerous. There will always be just one more thing to buy to make everything perfect. How do we resist the urge and how do we discipline ourselves to save?Having the required self-discipline is a good start but is by no means enough. Making the process of saving more rewarding and more tangible is a must in order to succeed in this long term effort.The sense of tangibility of money has been greatly decreased since the invention of credit cards and online bank accounts. Bills and coins have become number on a screen and these are easier to spend (in most cases we just hand out a credit card). We have no real since of how much money we?re spending and on what unless we budget carefully and regularly. Increasing the tangibility of money and saving would allow us to save more easily and to be ... More About: Tips , Psychology , Make
How to Make Saving More Rewarding and Tangible: 5 Practical Tips
2008-04-16 19:29:00 Increasing the tangibility of your savings and rewarding yourself for achievements is crucial for success in this long term effort. Saving money consistently is hard. The temptations and needs are numerous. There will always be just one more thing to buy to make everything perfect. How do we resist the urge and how do we discipline ourselves to save?Having the required self-discipline is a good start but is by no means enough. Making the process of saving more rewarding and more tangible is a must in order to succeed in this long term effort.The sense of tangibility of money has been greatly decreased since the invention of credit cards and online bank accounts. Bills and coins have become number on a screen and these are easier to spend (in most cases we just hand out a credit card). We have no real since of how much money we?re spending and on what unless we budget carefully and regularly. Increasing the tangibility of money and saving would allow us to save more easily and to be ... More About: Tips , Psychology , Make
The Little Savings That Could
2008-04-13 18:06:00 The heap paradox as a powerful metaphor with surprising results.Making the long and tedious process of saving small sums of money more rewarding and more tangible is a formidable effort. We all lose hope when we only manage to save 100$ each month, thinking desperately we will never get to see them amount to anything significant.Sure enough, becoming wealthy is easier when you?re able to save significant sums of money on a timely basis. However, we shouldn?t neglect the smaller sums saved as they also have a key role is creating wealth.I?ve recently re-read a very interesting paradox named the Sorites paradox (Greek for heap paradox). The paradox is attributed to Eubulides of Miletos who lived in 4th century BC and goes as follows: Consider a heap of sand of which grains are removed one at a turn. With each grain removed the heap gets microscopically smaller but is still a heap. However, is it still a heap should one grain remain? Or ten grains for that matter? When was it that the ... More About: Savings
Money Stories, Pets and More @ The Carnivals
More articles from this author:2008-04-13 09:09:00 The Carnival of Personal Finance #147: Q1 Financial Advice Edition was hosted @ Money ning. I found the Following posts particularly interesting:The Cost Of A Bigger House @ Frugal BabeI bring you this story which demonstrates, quite successfully, what I always talk about. Firstly, You should buy a home which lasts you at least 10 years (if not more). Secondly, frugality only gets you so far. The real money is in the big ticket items. Although a frugal state of mind is always necessary.Four Ways I Upgraded Out Of My Raises @ Free From BrokeAnother story which discusses another painful issue I intend to deal with in one of my upcoming posts. The hedonistic fallacy or why more consumption won?t make us any happier.Hey, You Invest Like a Girl! @ Dividends4LifeThis short post uncovers a little known truth. Women are better investors than men. Understanding why is yet another step in the right direction towards smart investing.The Annual Cost of Pet Ownership: Can You Afford a Furry Frien... More About: Pets , Stories , Carnivals 1, 2, 3, 4, 5, 6, 7 |
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