Should I Pay Down My Debt or Save More for the Future?

March 10, 2011

There are questions in life where sometimes the best answer is “it depends” (how many times did we hear that when we were growing up?).  This is one of those questions, but I do have some solid guidelines that can help you make a decision on this question.

First, take a hard look at the interest rates you’re currently paying on your debt as well as what you are getting on your savings accounts.  In most cases Continue reading “Should I Pay Down My Debt or Save More for the Future?”

Healthy and Wealthy

March 07, 2011

I always had a suspicion that health and wealth had a direct correlation but it’s not quite what I expected.  It comes down to cash – cold hard cash.  Who knew?

A recent study published in the Journal of Consumer Research cites that people who pay for groceries with credit or debit cards buy more impulsive and unhealthy items than those with cash.  This may be due to the “pain of payment” according to the researcher Manoj Thomas. Continue reading “Healthy and Wealthy”

Financial Lessons from a Group of Retirees

March 04, 2011

I have had the opportunity lately to talk with a number of people who have been retired for at least a decade.  I asked them to take a look back at their financial lives to see if there were any lessons they had learned that today’s workforce could learn from.  All of these people were comfortable financially and had successful careers in their chosen fields.  I did not expect to hear so many comments about what they would do differently if they had the opportunity to turn back time.  They had some advice for their grandchildren’s generation, and here are just a few of their observations and recommendations: Continue reading “Financial Lessons from a Group of Retirees”

Is a Reverse Mortgage Right for Me?

March 03, 2011

It seems that every retirement planning workshop I do lately, this question rears its head.  Used to be not too long ago many people didn’t know what a reverse mortgage even was (Quick definition of a Reverse Mortgage: A special type of home equity loan for persons 62 and older.  The loan proceeds can be in the form of a lump sum, cash advance, or a line of credit.  The loan does not usually have to be repaid during the homeowner’s lifetime, which is why it is often used by retirees.)  Now that people are aware of this investment product, it has suddenly started becoming a first choice answer to retirement security for some people. Continue reading “Is a Reverse Mortgage Right for Me?”

Are You Saving Too Much?

March 02, 2011

When was the last time someone asked you if you thought they were saving too much?  Someone recently asked me this question and at first I was taken aback.  How is it that anyone could have money to save, let alone enough to wonder if they were saving too much?  Didn’t we just go through a recession?  Aren’t we all just swimming in debt, living paycheck to paycheck, desperately trying to make ends meet? Continue reading “Are You Saving Too Much?”

Retirement Preparedness: Save Forty Years then Spend Forty

February 28, 2011

Think about it.  We work for forty years of our lives starting from our early twenties to sometime in our sixties.  Then we have to support ourselves for the rest of our lives.  In other words, save for forty then spend for twenty, thirty or even forty years depending how your cards are dealt.

In my case, the longevity hand I was dealt isn’t the strongest.  Continue reading “Retirement Preparedness: Save Forty Years then Spend Forty”

Frugal vs. Cheap: How to Tell the Difference

February 25, 2011

In my prior blog, Car Buying: A Way to Save a Fortune, I talked about how I like to be a bit frugal when it comes to buying my cars.  Many of my friends have read that blog and, of course since they’re my friends, they aren’t afraid to chime in and tell me what points I failed to make.  With friends like that…well, you know the rest of that line.

Here’s the overwhelming commentary I got from people I know.  There is a difference between being frugal and being cheap.   Continue reading “Frugal vs. Cheap: How to Tell the Difference”

Cash Management: How to Manage the Extra Money in Your Pocket

February 23, 2011

Have you ever found yourself at the end of the week with a little extra cash lying around?  (I know, it doesn’t happen that often, but when it does, what exactly do you do with it?)  For many, they just simply find something to spend it on, and who wouldn’t.  I mean after all, you’ve worked hard all week to earn it, so why not enjoy it.  Well, I can’t argue with that, but there may be another reason why you’re not sure what to do with it: you lack financial goals. Continue reading “Cash Management: How to Manage the Extra Money in Your Pocket”

With Football and Financial Advisors: Loyalty is Everything

February 18, 2011

A few weeks ago I had a conversation with my girlfriend about the concept of loyalty.  To products and services.  And football teams.  I guess I should add some background information here.  I have been a lifelong football fan and she is just learning about the game over the last few years and frequently asks awfully insightful questions.  One of her recent questions was about what happens when a player from another team that you don’t like comes to play for the team you do like.  For full disclosure, I grew up in the Baltimore area and I’m a Baltimore Ravens fan (and I really don’t like the Pittsburgh Steelers and Indianapolis Colts).  My answer was that most fans root for their team regardless of the players on it.  We essentially root for laundry.

[YouTube video: Seinfeld] Continue reading “With Football and Financial Advisors: Loyalty is Everything”

What and When to Buy – How We Decided to Purchase Our Rental Property

February 17, 2011

The past couple weeks have been a flashback in time for me as I have been providing some basic general principles regarding the purchase of investment property.  What I’d like to do this week is to tell you a story about a certain financial professional and his wonderful wife and the lovely discussions they had before they pulled the trigger and bought an investment property.

It was a pleasant time back in those days, two newly married professionals having dinner conversations surrounding things like vacations, the day’s work, retirement, etc. Continue reading “What and When to Buy – How We Decided to Purchase Our Rental Property”

Budgeting: Is that Laptop Really Worth $1500?

February 16, 2011

I’m not sure who said it, but I can bet you they were trying to sell you something.  If you’ve read any of my previous blogs  (and if you haven’t, why not?) then you know I have a tendency to prefer paying more for higher quality stuff that should last longer rather than buying cheaper stuff that will likely break down sooner and only end up having to be replaced more frequently.  Well, I’ve since modified my position on the issue.  Here’s what happened: Continue reading “Budgeting: Is that Laptop Really Worth $1500?”

Why Financial Knowledge Isn’t Enough

February 11, 2011

Last week I talked about how there is an enormous volume of financial knowledge available to anyone willing to look for it.  Heck, you don’t even have to look, it’ll find you if you let it.  But even with the mountains of knowledge out there about how to become financially independent, there are countless people under financial stress who are considering bankruptcy, facing foreclosure or eviction, or who are a missed paycheck away from disaster.  How do we turn this knowledge into action? Continue reading “Why Financial Knowledge Isn’t Enough”

How to Have Financial Harmony in Your Marriage

February 09, 2011

In May, my wife and I will celebrate our 16th wedding anniversary.  Would you believe that in all those years we’ve never fought about money?  (If you believe that I’ve got some ocean-front property I just can’t wait to sell you.)  The truth is when we were first married we use to fight about money all the time.  It’s no surprise that financial stress is one of the biggest contributors to broken marriages, especially for newlyweds, so how is it that Susan and I have managed to stay together for so long?  Over the years we have learned how to resolve our financial conflicts by avoiding some of the common pitfalls that each of us faces.  I know they’re common because in my line of work I hear people say them everyday.  So in the spirit of Valentine’s Day, I’d like to share with you some of these pitfalls, along with ideas on how to avoid them, or at least understand them so that you can turn some of those nasty arguments over money into healthy discussions about your finances. Continue reading “How to Have Financial Harmony in Your Marriage”

Financial Planning: Leave Room in Your Budget for a Snow Day!

February 02, 2011

It doesn’t snow very often in North Carolina, but when it does, you can hear the children across the playground shouting – SNOW DAY!!!

Snow days are my kid’s greatest day of the week, but for Susan and I, not so much.  I love to watch the snow fall, and fortunately for me, I haven’t had to travel much, so I look forward to playing in the white stuff just as much as the kids do, but when they are ready to play, I’m sitting at my desk – no snow days for me *drat.* Continue reading “Financial Planning: Leave Room in Your Budget for a Snow Day!”

Workplace Financial Stress: A Major Cause of Health Problems

February 01, 2011

With the economy still on shaky ground, many employees are understandably worried about their jobs and their finances.  Unfortunately, stressing over work and money ends up being costly to our overall health.    A recent study found that some types of stress are even more damaging than others, with financial stress yielding the most unhealthy dividends. Continue reading “Workplace Financial Stress: A Major Cause of Health Problems”

Financial Education: A New Direction

January 27, 2011

It’s been a nice ride conveying my thoughts on various life events that I have had and supplying analogies of those events to different financial topics.  As often happens in life though, things don’t always fall in our lap so rather than force bad analogies on all of you, I have decided to take my weekly blog in a new direction. Continue reading “Financial Education: A New Direction”

Auto Expenses: Tips on How to Maintain Your Vehicle

January 26, 2011

As I stepped out of the car and waved goodbye to my friend, I noticed the front right tire of her car was almost completely bald.  I looked at her and said “Danielle, how can you drive on this?”  Either she suffers from the Zoolander-esque inability to turn left, or she simply neglects to take care of her tires (and by the looks of things, the rest of the car as well).  I didn’t have time to lecture her on the dangers of driving on a tire with no tread, but I did tell her to go out and buy new tires right away, and was able to explain to her that if she rotated them every 6,000 miles, she could probably extend the life of them, even beyond their expressed mileage rating. Continue reading “Auto Expenses: Tips on How to Maintain Your Vehicle”