Financial FOMO: What, Why and How To Avoid It.
.Financial FOMO: What, Why and How To Avoid It.
Financial Fear Of Missing Out
What is Financial FOMO?
You’ve probably heard of regular FOMO, which is the fear of missing out. It’s when you worry or have anxiety about missing out on fun and memorable experiences in life. What about Financial FOMO?
Financial FOMO is a little more specific. It’s when you worry about missing out on financial success or profitable events in life. You constantly research ways to make money, save money, and get ahead. You are excited about finances, but this feeling of excitement is matched equally with a feeling of disappointment from “not doing as good as everyone else seems to be doing”.
Personally, I don’t suffer from FOMO, financial or otherwise. I believe FOMO is an unhealthy mindset that makes people their own worst nightmare. Not only is it poisonous to let fear and anxiety occupy your mind, it leads you to do things you usually wouldn’t do.
Inflation Insurance
.Inflation Insurance
John Lim | Aug 23, 2021
ON AUG. 15, 1971, President Richard Nixon made the weighty decision to end the convertibility of the U.S. dollar into gold. By doing so, he drove a stake through the heart of the gold standard, a monetary system which fixed the worth of a unit of money to a specific amount of physical gold. Before that day, foreign central banks were able to exchange $35 for one ounce of gold from the vaults of the U.S. Federal Reserve.
By closing the so-called gold window half a century ago, Nixon ushered in the current era of fiat money. Fiat currencies—which include all currencies in existence today—aren’t backed by anything tangible. Rather, their value depends entirely upon the collective trust of people making transactions in those currencies. If that confidence evaporates, so does the value of that money.
Thoughts From DJ "Mind Pollution" 8-23-2021
.DJ: DID YOU KNOW?
In today’s world, no matter which direction you look, the constant bombardment of negativity is relentless.
The average person becomes engulfed with it like a flame gone wild. The COVID pandemic, nasty politics, inflation, border disputes, climate change, wars, a crumbling financial system, famine, energy needs, poverty, human trafficking and just about every conceivable and unconceivable horrible thing is all we are fed.
One cannot help but be infected by all this mind pollution.
When you are showered with so much negativity your mind begins to function in a different manor. Our capacity to envision a positive outcome to any venture one might partake in, in a given day, appears distorted and suddenly what would normally be an effortless task turns into questions and doubt.
How To Claw Back From the Edge of a Financial Cliff
..How To Claw Back From the Edge of a Financial Cliff
Cynthia Measom Fri, August 20, 2021
The pandemic hit many Americans right where it hurts — in their wallets. “Hitting rock bottom financially is something many people fear — and understandably so,” said Kate S. Mielitz, Ph.D., AFC, an assistant professor of family financial planning at Oklahoma State University. “To reach the point that you are struggling each month, maybe to just put food on the table, or you’re squeaking by but barely … or even have no savings, no accessible credit, no one that you can turn to for short-term or long-term assistance … those are all very scary situations.”
The good news is that once you’ve hit rock bottom, the only way to go is up. Here are some proactive steps you can take if you find yourself peering over the edge of a financial cliff and are overwhelmed with debt.
Even Richer People
.Even Richer People
Posted August 19, 2021 by Ben Carlson
Working in finance is both a blessing and a curse.
The plus side is the industry pays above-average wages and it’s not back-breaking work. Some people in finance do work ridiculous hours but no one comes home with a sore back or blisters on their hands at the end of the day. 1 It’s also a profession you can perform well into old age.
The downsides are more psychological in nature.
There is a lot of money in the world of finance. You’re typically dealing with clients who have amassed vast sums of money. And there are always going to be peers or colleagues in the industry who make more money than you. If you’re addicted to keeping up with the Joneses, the finance industry can be a toxic working environment. There is an endless stream of people with more resources than you.
The 3 Phases of Making a Major Life Change
.The 3 Phases of Making a Major Life Change
by Herminia Ibarra August 06, 2021
Summary. The lockdown that we’ve all just lived through created a period during which a lot of people had the opportunity to reflect on plans for a career change. But reflection alone doesn’t get people very far. Those who are mostly likely to act during this kind of period are those who actively engage in a three-part cycle of transition — one that consists of separation, liminality and reintegration. The author explains how to make the most of each of these stages to effect real change.
Many of us believe that unexpected events or shocks create fertile conditions for major life and career changes by sparking us to reflect about our desires and priorities. That holds true for the coronavirus pandemic. A bit over a year ago, when I asked people in an online poll to tell me how the pandemic had affected their plans for career change, 49% chose this response: “It has given me downtime to rest and/or think.”
Are You Worth More Than You Earned
.Are You Worth More Than You Earned
Have you ever wonder how much money you earned over the years? I mean, it has to be a sizeable sum if you’ve been working for a while. I was thinking about this and came up with a natural follow-up question. Are we worth more than what we earned? After all, wealth is what you keep, not what you earn. We have been maxing out our 401k and investing for years. Our net worth is much higher than the average US household. However, I don’t know if it is higher than what we earned over the years. Let’s answer that question today.
This answer isn’t that difficult to find out, but you might be disappointed. It is extremely difficult for your net worth to exceed your cumulative earnings, especially when you’re younger. It gets a little easier as you age because of compound interest, but I’m sure only a small percentage of households can achieve this impressive feat. That’s because saving and investing aren’t enough. You need a lot of time and luck as well. It is not impossible, though.
The Stuff They Don’t Teach You In Books
.The Stuff They Don’t Teach You In Books
Posted July 27, 2021 by Joshua M Brown
Once upon a time, when I knew nothing, I called myself a financial advisor. It’s true, I was giving financial advice. But when I look back to the caliber and quality of that advice from back then to now, it’s astonishing how much I didn’t know.
I was raised in this business to believe that stock and bond and fund selection was the most important aspect of helping investors succeed. We weren’t given a benchmark in terms of what a client succeeding even meant. Was it beating the S&P 500? Looking smarter than the client’s other broker?
Hitting a grand slam in a technology stock? Generating the highest interest and dividend income? I don’t know. The client doesn’t know. “Lets emphasize whichever of these things went well in the next conversation.”
"Velocity of Money" From Virginia Gentleman
.Re-posted for our newest readers……
From Virginia Gentleman VELOCITY OF MONEY
I know I don't have to state the obvious...GO HAVE FUN WITH SOME OF YOUR NEW FOUND WEALTH. However, I would like to pass on some words of wisdom.
As we get ready to punch it in, please remember to act like you've been in the End Zone before. Take a deep breath and exhale slowly as you collect yourself with the full intentions of acting with class and integrity.
Respectful treatment of others will be an inherent responsibility of your new status, as well as respectful treatment of your money and assets. You owe this to yourself, your family, your neighbors, and your heirs.
Don't hoard it, and on the other hand, don't waste it or give it all away. Save, invest, and spend wisely.
One of the single best things you can do with a small portion, and in effect a very small portion, is to be more generous over at least the next 18-24 months (or the longer) spending your money locally. What do I mean? The answer is the ‘VELOCITY OF MONEY’.
Other People’s Mistakes
.Other People’s Mistakes
Aug 5, 2021 by Morgan Housel
George Carlin once joked how easy it is to spot stupid people. “Carry a little pad and pencil around with you. You’ll wind up with 30 or 40 names by the end of the day. It doesn’t take long to spot one of them, does it? Takes about eight seconds.” Like most comedy it’s funny because it’s true.
But Daniel Kahneman mentions a more important truth in his book, Thinking, Fast and Slow: “It is easier to recognize other people’s mistakes than our own.” I would add my own theory: It’s easier to blame other people’s mistakes on stupidity and greed than our own. That’s because when you make a mistake, I judge it solely based on what I see. It’s quick and easy.
But when I make a mistake there’s a long and persuasive monologue in my head that justifies bad decisions and adds important context other people don’t see. Everyone’s like that. It’s normal.
Hanging By A Thread
.Hanging By A Thread
Aug 11, 2021 by Morgan Housel
Abig lesson from history is how chance encounters lead to both magic and mayhem in ways that would have been impossible to predict. No matter what the world looks like today, and what seems obvious today, everything can change tomorrow because of some tiny accident no one’s thinking about.
Let me show you three times history hung by a thread.
Giuseppe Zangara was tiny, barely five feet tall. He stood on a chair outside a Miami political rally in 1933 because that was the only way he could aim his gun across the crowd.
Zangara fired five shots. One of them hit Chicago mayor Anton Cermak, who was shaking hands with Zagara’s intended target. Cermak died. The target – Franklin Roosevelt – was sworn in as president two weeks later.
Within months of inauguration Roosevelt transformed the U.S. economy through the New Deal. John Nance Garner – who would have become president had Zangara hit his target – opposed most of the New Deal’s deficit spending. He almost certainly wouldn’t have enacted the same policies, some of which still shape today’s economy.