What Is A Money Story And How Can It Affect Your Finances?
.What Is A Money Story And How Can It Affect Your Finances?
If I had more money, ____ wouldn’t be a problem. I work hard. I deserve that new _____.
I’ll never be able to pay off this debt. I can’t earn enough to get ahead.
I need X amount of money to have peace of mind. I’m a cheapskate.
Spending money on things for yourself is selfish.
Money can elicit a whole slew of feelings: shame, pride, guilt, stress, and more. And, more often than not, these feelings about money stem from your childhood.
Even if the adults in your life didn’t openly discuss money as you were growing up, you still picked up on how it was handled in your family.
What Worked (And Didn’t Work) During 1970s Stagflation
.What Worked (And Didn’t Work) During 1970s Stagflation
Notes From The Field By Simon Black May 5, 2020 Bahia Beach, Puerto Rico
When the New York Stock Exchange opened for trading on January 2, 1970, the Dow Jones Industrial Average was at 809 points. It was the start of a new decade, and expectations were high.
Consumer confidence was high, the economy was strong, and NASA had just put a man on the moon only a few months prior.
America was ready to move on from the tumultuous 1960s and was looking forward to a boom in the 1970s.
But that didn’t happen.
Over the next 10 years, the US economy would suffer its most painful episode since the Great Depression.
The 1970s were hit by a nasty bout of stagflation-- a period of high unemployment, high inflation, higher taxes, higher debt levels, and pitiful economic growth.
It’s one of the worst fates an economy can suffer. But it lingered in the US for years.
Good News And Bad News From Warren Buffett
.Good News And Bad News From Warren Buffett
Posted by TEBI on May 4, 2020
The world’s most famous investor Warren Buffett spoke at length at the weekend. Now aged 89, Buffett was addressing an online version of the annual meeting of his firm, Berkshire Hathaway. He talked about stocks, the economy and of course the coronavirus crisis.
Some commentators have suggested that Buffett was more downbeat than he has been in the past. He certainly had bad news as well as good. But, as Andrew Ross Sorkin commented in the New York Times, it’s more accurate to say he was neither pessimistic nor optimistic but realistic.
Particularly noticeable was how often Buffett repeated the words, “I don’t know”. That’s right, Warren Buffett, the most successful investor of the modern era, doesn’t know how this crisis will unfold. Yet there are plenty of experts in the media offering their opinions.
The Ones Most Responsive to Change
.The Ones Most Responsive to Change
By Muhammad Ali
IF YOU FAIL TO PLAN, YOU PLAN TO FAIL
Benjamin Franklin supposedly once said, “If you fail to plan, you are planning to fail.” Sir Winston Churchill is credited with another, oft repeated, saying: “Those who fail to learn from the past are doomed to repeat it.” And along that same vein there’s the phrase we hear often in the workplace, “learn from your mistakes.”
The questions that I have for you today are more about the odds. Alright let me elaborate on this. If you fail to plan, does that mean you will definitely fail? What are the odds of this happening?
And the other side, if you plan, does that mean you will not fail? What are the odds of this happening?
How Inflation Affects Growth Versus Value
.How Inflation Affects Growth Versus Value
By Ben Carlson Posted by TEBI on May 3, 2020
It seems bizarre to worry about inflation during the sharpest, more severe economic contraction of our lifetime.
But the sheer amount of government spending and monetary policy being instituted by the Federal Reserve means it’s something that’s on people’s mind as a potential risk in the not-too-distant future. The “worry” is once the virus is contained the economy could potentially overheat through a combination of pent up demand and government spending.
My initial read on this is if we do get inflation from all of this spending that’s a good thing — it means we beat the virus and things are back to normal (if there is such a thing).
The Fed would have a much easier time fighting inflation than the current predicament.
The Relationship Between Time, Money, And Happiness
.The Relationship Between Time, Money, And Happiness
Written by J.D. ROTH| Published: 15 May 2018 – Updated: 23 February 2020
The older I get, the more I'm convinced that time is money (and money is time). We're commonly taught that money is a “store of value”. But what does “store of value” actually mean? It's a repository of past effort that can be applied to future purchases. Really, money is a store of time. (Well, a store of productive time, anyhow.)
Now, having made this argument, I'll admit that time and money aren't exactly the same thing. Money is a store of time, sure, but the two concepts have some differences too.
For instance, time is linear. After one minute or one day has passed, it's irretrievable. You cannot reclaim it. If you waste an hour, it's gone forever. If you waste (or lose) a dollar, however, it's always possible to earn another dollar. Time marches forward but money has no “direction”.
I Hate My Job! Do I Have to Suck It Up Until the Economy Recovers?’
.I Hate My Job! Do I Have to Suck It Up Until the Economy Recovers?’
The Cut’s financial advice columnist Charlotte Cowles answers readers’ personal questions about personal finance.
I hated my job before the pandemic, and now I hate it even more. I’m a product manager at an apparel company, and the whole place is awful. The hours are never-ending, and there’s even less respect for personal time now that we’re all working from home. I also don’t approve of how the warehouse staff has been treated throughout this crisis.
I’m 29 and have had this job for two years; it was a significant step up from my previous job in terms of salary and title, but the company culture is bad and getting worse.
I was originally planning to quit in May (I’ve been saving up to do so since last fall) and take some time to reevaluate what I want to do next. But now I’m wondering if that’s completely insane.
I will have enough savings to cover my expenses and bills for at least six months (or longer if social-distancing measures keep up), but will I be able to find a new job by then? It seems pointless to look for jobs right now, and I’m not sure when that will change.
All That Glitters: Why I’m Not Investing In Gold
.All That Glitters: Why I’m Not Investing In Gold
By J.D. ROTH| Published: 28 April 2020
Over the past month, I've read a lot of articles about the virtues of investing in gold. Especially in Facebook forums, there's a lot of talk about how gold makes a great long-term investment. (Fortunately, I haven't seen any comments like this in the GRS community on Facebook.)
Whenever the economy gets turbulent, the goldbugs come out in force. They shout from the hilltops that the world is doomed and that the only safe haven is gold. And I'll admit, their arguments can sound pretty convincing.
When I started this site in 2006, I felt unqualified to comment on gold. I hadn't read much about it, and I didn't feel educated enough to offer an opinion. That's changed.
Now, after fifteen years of reading and writing about money, I know enough about economic history and I know enough about gold as an investment to have what I believe is a (somewhat) educated response to this subject. And that response is this: Gold makes a lousy long-term investment.
Silver Hasn’t Been This Cheap In 5,000 Years of Human History
.Silver Hasn’t Been This Cheap In 5,000 Years of Human History
Notes From The Field By Simon Black April 30, 2020 Bahia Beach, Puerto Rico
More than 4,000 years ago, the city of Kanesh was quickly becoming an important commercial trading hub within the ancient Assyrian Empire.
Kanesh was located in the dead center of modern day Turkey, so it was perfectly situated on the route between the Mediterranean and the Black Sea, and between Europe and Asia Minor.
As a result, Kanesh became a popular trading post. And merchants, scribes, and moneylenders from all over the Assyrian Empire traveled there to profit from the boom in copper, tin, and textiles.
What’s extraordinary about this period of history is how many records remain from those day-to-day transactions.
The Ponzi Scheme That Will Bankrupt The World
.6 Central Banks & The Ponzi Scheme That Will Bankrupt The World
By Tyler Durden Wed, 04/29/2020 - 22:05
Authored by Egon von Greyerz via GoldSwitzerland.com,
The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.
The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago:
“Permit me to issue and control the money of a nation, and I care not who makes its laws.”
We’ll Get Through This
.We’ll Get Through This
Mar 9, 2020 by Morgan Housel
In the 1930s an Ohio lawyer named Benjamin Roth kept a detailed diary about what he saw during the Great Depression.
In the late 1930s, when the depression had mostly passed, he summarized a few points he had learned from the debacle. He wrote:
“Business will always come back. It will remain neither depressed nor exalted.”
“The stock market forecasts business in only a limited way. The beginning of a stock market movement usually is caused by the trend of business but in the end the movement is carried too high or too low—by the extreme optimism or despair of human nature.”
“Depression is time of greatest profit. The investor who has liquid funds and the courage to act can lay the basis for great profits.”
It’s silly to compare the last week to the Great Depression – unemployment is near a record low and the market is still up over the last 10 months. It’s also hard to think of a time when sentiment has changed so far, so fast, than the last week. And what’s really silly is to assume that abrupt shift won’t both feed on itself and lead to tangible economic problems.