John “Jack” Bogle (May 8, 1929 – January 16, 2019) was a philanthropist, and investor, an author, but most notably, he was the visionary …
Richard Thaler won the Nobel Prize last year for showing that not only do humans make financial mistakes, they make predictable mistakes. He joked about calling his research ‘Dumb Stuff People Do.’ But today, it’s called ‘Behavior Economics,’ and it has changed public policy across the world.
I swear there is a something in your DNA that determines whether you’re frugal or spendy. I definitely have the spendy gene. That doesn’t have to be a bad thing though. As they say, the first step is acceptance. Understanding yourself as a spender will let you build up an arsenal of tools to counteract that. And budgeting is a big part of that.
Following her divorce 21 years ago, she started her journey with less than $100, a mortgage to pay, and four young kids. She discusses how frugality played a large impact on her success and how her teaching career, with an average salary of 70K, helped cover her needs.
There’s a lot of connections between say, people who are in the extreme debt repayment space in the personal finance arena, and F.I.R.E. folks. It’s just that their energy and focus is just on a different end result. And I thought that I would talk a little bit about why I was reluctant to be called a ‘F.I.R.E. blogger’ but why I felt like it was important to be identified as a person who is ‘F.I.R.E.-focused.’
We have all heard stories of people losing life savings from investing in Enron or people who invested too heavily in dotcoms when that bubble burst in 2000. These are real risks that influence real dollars. It is irresponsible to jump into the market with both feet if you don’t know what you are doing.
So now that you are ready to just stuff your cash in your mattress rather than invest in the market, let me tell you about index fund investing.
They’re kind of like an actor’s script in a movie. We just continue to read the lines in our heads or out loud to our family and friends, and believe that they’re true! When in fact, they are often quite distorted, and can limit our success or even hurt us. For most of us, our money scripts are unconscious, but they drive all of our financial behaviors.
I think it’s important to talk about because while it’s true that women have made huge progress in terms of financial, professional, and personal equality over the past few decades, there are still tons of areas where our gender impacts us, especially financially. And I wanted to explore a few of the areas in which we are seriously still paying for our womanhood.
If you’re a women, it might be nice to know that on some of these fronts it’s not all in your head. And if you’re not a women, it might be useful for you to understand what we are dealing with.
Even if we take the most optimistic prediction, that’s huge. Fourteen percent job loss would have massive ramifications on the economy, the stock market, the housing market, and every facet of our lives. Heck, even half of the most optimistic prediction would be an enormous game-changer.
But could this really be possible? Or is everyone panicking about what will essentially be a shift in the types of jobs that people hold — reminiscent of our shift from farm to factory, and from factory to office — but not an actual net job loss?
As I thought about it, I realized that my dad, a sensible and frugal role model, passed on some rules that have served me very well. There was no decree posted to my bedroom door; it was the way he lived and spoke about money, which rubbed off on me.
If you’re trying to get out of debt, or if you’re trying to save for something specific, or maybe you’re just trying to have more wiggle room in your monthly budget, this is going to help you find some ways to save money or cut costs. Or at least, I hope so. They’ve helped us!
People ask me about this rule of thumb fairly frequently because they want to check whether their housing spending makes sense. My response is nearly always the same, and comes swiftly:
An emphatic ‘I hate that rule!’
And I do. I hate that rule.
We chat about her history with mental illness, how that’s impacted her financial life, what sparked her desire to help those feeling suicidal over their debt, and how money can be the most important (and useless) thing in the world.
The average American household spends $600 per month on food, and it’s the third-largest budget category for most people. While everyone has to eat, …
I learned this lesson the hard way, and early. In that way I feel fortunate, because I learned this lesson back when I didn’t have much at all.