Tag Archives: money

100 Things You Absolutely Need To Know About Money Before You’re 35 | Forbes

That’s the weird thing about getting older. There’s no magic eight ball. There’s no manual. There’s no great big cheat sheet. You don’t generally know that you’ve gotten it right until you’ve made it through to the other side. That’s especially true when it comes to money.

The whole thing got me thinking: wouldn’t it be great if there really was a cheat sheet for getting older? One targeted to finance? What if there was a list of what you absolutely needed to know about money written by folks who have already been forced to make those tough calls?

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What Turning 35 Taught Me About Money | The Simple Dollar

A debt-free life is better than the alternative.

For the first few years of our marriage, my husband and I didn’t pay too much attention to our spending or our outstanding debts. We made decent incomes, after all, and didn’t have any children. What difference did it make if we carried credit card debt, student loans, or car loans?

Here’s what I found out — it makes a huge difference. With two kids in school now and the college years fast approaching, I can’t imagine how unstable I would feel if we carried the kind of debt we did early on.

Now that I know a debt-free life is much better (and a lot less stressful) than the alternative, my plan is to avoid debt like the plague if at all possible. For us, that means driving older cars, saving money for splurges so we can pay in cash, and staying put in our reasonable home. If that keeps us debt-free, that’s fine with me.

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The Science Of Why You Should Spend Your Money On Experiences, Not Things | Co.Exist

3043858-inline-i-1-the-science-of-why-you-should-spend-your-money-on-experiences-not-thingMost people are in the pursuit of happiness. There are economists who think happiness is the best indicator of the health of a society. We know that money can make you happier, though after your basic needs are met, it doesn’t make you that much happier. But one of the biggest questions is how to allocate our money, which is (for most of us) a limited resource.

There’s a very logical assumption that most people make when spending their money: that because a physical object will last longer, it will make us happier for a longer time than a one-off experience like a concert or vacation. According to recent research, it turns out that assumption is completely wrong.

“One of the enemies of happiness is adaptation,” says Dr. Thomas Gilovich, a psychology professor at Cornell University who has been studying the question of money and happiness for over two decades. “We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them.”

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Most 20-Somethings Can’t Answer These 3 Financial Questions. Can You? |Time Money

A new study finds that young Americans could use some help when it comes to managing their money.

Just in time for financial literacy month, a new San Diego State University study of young Americans has found that they are lacking when it comes to financial knowledge and behavior.

Out of these three questions measuring basic financial knowledge, the average respondent could answer only 1.8 correctly—and only a quarter got all three right. (Answers are at the bottom of this story.)

(1) Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.

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Weekly Economic Update | LAEDC

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10 Things I Wish I Knew About Money At 18 | AskMen

Newly Minted MoneyI’ve been there. Four different credit card bills came in the mail each month: Visa, American Express, Best Buy (because they gave me a 10% discount when I bought 3 CDs), and Sears. Their balances only added up to a couple of thousand dollars each, and making the minimum payment wasn’t so bad. Then the transmission blew in my car and I had no emergency fund to pay for it.

So I put that on the credit card. I was lazy so I would routinely pay late and then get dinged with a $35 late fee. Then the card companies would jack up my interest rate. Somewhere the invisible elves that kept track of my credit score were shaking the heads and “tsk-tsk-ing” as my chances of ever getting a mortgage in the future were plummeting. Soon I was paying more each month on interest, late fees, annual charges, and ATM cash advance fees than I was for my rent.

So just like the former high-school quarterback who looks down and notices that his belly fat is obscuring the nether half of his torso, I knew it was time to do something. It was time to get back in shape.

“If only I knew then,” I sometimes think. If only I knew the following 10 things about money when I was 18, I could have avoided that whole mess.

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