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This article honors women veterans who have served in the military. I found it interesting because they are stories that usually don’t get told. Also, the financial planning firm I work at focuses on the military and helping them plan their military retirement so it will last through retirement. Some people don’t come in and ask for help until their spouse dies. Then it’s too late for most to take full advantage of benefits had they set it up correctly. I’m not an expert in this but the planners I work around are. We live near Hill Air Force Base and the many servicemen and women who work there.
Written by admin on August 12th, 2009 with no comments.
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Gourmet Magazine just featured an article called “Extreme Frugality” about how a family of 6 will live on $550 a month after major expenses (or $41k a year). I hope some of that frugality includes at least a little investing for retirement…but this should be a great read. You know it’s mainstream when this high end magazine touts the virtue of saving money…and they will probably make it look pretty too. Of course $41k a year is not terrible, it could be worse…
Here are some quotes from the article, which can hopefully inspire Utahns to save or spend less than we earn.
I felt entitled to live as did my father (although he was 25 years older than I) and all those successful, happy people in ads and on TV…Like 70 percent of our fellow Americans, we were living off our VISA cards with no means of paying them off any time soon. As a result, we had $75,000 in credit-card debt and owed $245,000 on a $289,000 house. What had I been thinking?
Ninety percent of us buy something we don’t need every month, and Americans in all walks of life—except the very rich—carry $961 billion of credit-card debt at any given moment, paying $1.22 for every $1 they spend. For the first time ever, my family is going to do the unthinkable. We’re going to live within our means.
Written by admin on April 2nd, 2009 with no comments.
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“I never would have thought, in my most extreme paranoid fantasies, that my software, and the others like it, would have enabled Wall Street to decimate the investments of everyone in my family.”
Michael Osinski’s piece in New York Magazine: “How I helped build the bomb that blew up Wall Street” is a chilling read. He wrote the software that turned mortgages into bonds – and he feels bad about doing it.
First, it’s rare to hear anyone take any responsibility for the mess we’re in. Second, it’s tough to really understand the long-term affects of decisions that seem entirely rational. His writing is so compelling and the small pieces of truth are astounding. You’ve got to read this article.
Our finances and the world we live in is more complex and demanding. As this quote points out it can lull us into not thinking ahead:
“The aim of software is, in a sense, to create an alternative reality. The power we all hold in our hands is shocking, yet it’s controlled by a few swipes of a finger. The drive to simplify the user’s contact with the machine has an inherent side effect of disguising the complexity of a given task. Over time, the users of any software are inured to the intricate nature of what they are doing. Also, as the software does more of the “thinking,” the user does less.”
He goes on to say:
“Nature does not give you explicit warning messages; her ways are more subtle and take a lifetime to penetrate. I forgot the day of the week but knew instinctively the tide and the phase of the moon.”
“It hurts when people say I caused this mess. I was and am quite proud of the work I did. My software was a delicate, intricate web of logic. They don’t understand, I tell myself. Perhaps it was too complicated. But we live in a world largely of our own device. How to adjust and control these complexities, without stifling innovation, is the problem.”
I read this and thought of how people doing simple jobs can cause incredible destruction. Hitler’s regime worked that way. Yet he could kill people and it’s easy to see the evil intent in his work. But what about the things we do unknowingly that hurt people, not suddenly, but over time? Even unintentionally. Can you imagine what a very smart person like Osinski could do to mess up the world if they were actually trying to? We may not be able to understand or discover, much less stop it from happening.
The thought is chilling.
Written by admin on April 1st, 2009 with no comments.
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My husband’s credit card number was stolen yesterday. It wasn’t online – he never buys anything online. We’re not sure how someone got the number. He first learned of the problem when First Command Bank called about some of the charges. Of all the credit card companies I’ve ever worked with I prefer First Command. This only solidified my preference.
First Command Bank caught the problem quickly and we canceled the card. That was simple. The next part isn’t. Many people (like us) automate payments with a credit card. That means the mortgage, insurance, and other payments are charged to a credit card automatically. But now that credit card is canceled. And it will be about 10 days before we get a new card. That’s a problem.
Tip: Make a list of all of your credit card auto drafts with contact information. Put it in a secure place – like a safe.
Did you know that you’ll get charged service fees (about $25 a pop) if your card is declined? Even if it was canceled. Even if it wasn’t your fault. If you think of all of the various accounts that use this card, it could get very expensive. So you have to manually call each one and set up another way to pay those bills. Then when we get the new card we’ll have to call again. It will save you a lot of time if you have a list.
Getting a credit card stolen is stressful. Luckily it’s more hassle than cost in the end – but we learned some things going through this. Hopefully you can avoid having this happen to you.
(Brought to you by the Utah Financial Planner blog)
Written by admin on March 27th, 2009 with no comments.
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I’ve seen some financial planners who are feeling pretty down right now. Their clients are calling, complaining about the market, wanting to pull their investments. Some even want to stop their life insurance (what???) or change to a less expensive policy. It’s always surprising (to them) when they learn that due to health problems they can’t even qualify for a new policy.
I learned my new chiropractor used to be a financial planner. Some financial planners I know might not make it and will be looking for work.
When times are leaner, it’s time to insure against losses – it’s not a place to cut costs. Cutting costs is not an investment strategy. Neither is fear. We can cut back and cut back but we must also save and invest so we have something left for tomorrow.
The economy isn’t doing well – and that’s not news. Yesterday I read this: “The U.S. economy shrank at a 3.8 percent rate at the end of last year, in its biggest contraction since the deep recession of 1982, the Commerce Department reported Friday.”
The headlines are about job losses, and address fear:
To me, fear is like a cold, if you’re immune system is already weak, you can catch it. So strengthen yourself, surround yourself with people who have perspective, and keep moving forward. To me, fear is best counter-acted with planning. Financial planning is one of those things I need a team for. On my own I get intimidated and freeze up. Or I simply ignore my finances (not a good strategy either).
You don’t need to lose weight when you’re skinny. You don’t need health insurance when you’re young and healthy. When things are worst it’s a wake up call to action. In this case, to invest your money and build a future.
What are you doing to be calm and plan for the future when panic and fear are everywhere?
Written by admin on January 31st, 2009 with no comments.
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Leo who writes the Zen Habits Blog has a free ebook called Thriving on Less – Simplifying in a Tough Economy. Zen Habits is one of my favorite blogs and Leo is real but also lives what he teaches. He’s married with six kids, lives in Guam, and kicked a lot of bad habits and simplified his life. Now he inspires others to do the same.
Here’s an outline of his book (read it online or print out and take it to a printer to spiral bind it between 2 sheets of plastic).
Introduction
1. A Simple Lifestyle
2. Focus on the Essentials
3. Thriving on Less, Not Struggling
4. Focusing on Enough, Not More
5. Make Small Financial Changes First
6. Look at Large Expenses for the Long Term
7. Changing Your Spending Habits
8. A Guide to Getting Out of Debt
9. Tools for a Frugal Life
10. Resources
Written by admin on December 26th, 2008 with no comments.
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Here’s a great example of a telecommunications business that is financially free because of the way they have done business – without debt:
“The good news about FiberLight is that it has been self-funded since the day of its inception. We carry no debt and we borrow no money, so we don’t need the capital and the credit markets”
If you’re starting a business, and have planned well, perhaps you could do the same. I know a young millionaire who did that. He sold everything he could to get capital and started a business online. It took a year to become a millionaire. That is extraordinary but a great example.
If you don’t borrow money you won’t need credit which either may not be available or may be very expensive. Here’s another quote from this wise businessowner Michael Miller:
“…we want to continue to expand our reach in all of our markets…we want to continue to grow, but not to the extent that we cannot take care of our customers. We’ve seen too many communications companies explode in growth and leave the customer behind. We want to make sure every one of our customers gets the same level of attention they get today, no matter how large we get.”
Also, Miller said:
“What we’ve done, to ensure we don’t have to borrow money, is have a very short return on investment. We try to get our money and our profit within nine months of a sale. Our competitors, historically, will go 30-48 months before they see a return on their investments and some companies even longer than that.”
So if the economy is getting you down, be encouraged by the businesses who have planned ahead. This is what carries America in these times. It’s also what will carry you. The ethics and principles this business operates by is inspiring.
Written by admin on November 14th, 2008 with no comments.
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Here’s a funny card about the economy to make a point and make you smile…from someecards.com
Written by admin on November 6th, 2008 with no comments.
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You know how I love the “Get Rich Slowly” blog? Here’s another great blog mentioned there today:
The “I will teach you to be rich” blog. “It isn’t a frugality blog. In fact, Ramit’s an outspoken opponent of what he calls “stupid frugality tips” (e.g. use two tablespoons of cocoa powder instead of three). His site usually focuses more on boosting earning potential than cutting costs.”
That’s something I can be enthusiastic about – rather than simply cutting (depending on your situation you may have a lot of fat to cut but most could do better focusing on earning more. That’s more optimistic. It’s something I’m working on.
What have you done to increase your earning potential? One way I earn more is through my other blog and building affiliate marketing web sites. I’ll share with you what I learn by reading this blog I just discovered. I’d like to hear your perspective – leave your comments below. Since this is a new blog, I’m hoping you’ll be the first one!
Written by admin on November 2nd, 2008 with no comments.
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While it’s more important to be happy than rich – you probably won’t be truly happy if you’re deep in debt, haven’t planned for the future, or don’t make enough money to meet your basic needs.
I recently spent time with a friend who somehow remains upbeat despite her financial situation, which is on life support. I was shocked at the lengths she’ll go to so she can live the life she wants to live. I think she’s rare though. I hope so!
It reminds me of my husband’s clients who say they’ll increase their investments when they get out of debt. Always at some future time. It rarely arrives. They rarely change their lifestyle. The worst are the ones who support their grown children (adult life support). Ultimately it does no one a favor to take their responsibilities. They need a lesson in boundaries – not doing for others that which is their responsibility to carry as members of society.
Also, you probably don’t deserve happiness (or it’s just avoidance) if you’re not being honest. That means if you borrow money you probably can’t repay.
The flip side of this is – if you focus on the negative and all that’s WRONG, you probably won’t be happy either. It’s easy to do when times are tight as they are in our country now. You can get discouraged. You can lose sleep over finances (like many do).
Written by admin on October 31st, 2008 with no comments.
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