Save Like A Pessimist, Invest Like An Optimist

Sep 2, 2020 by Morgan Housel

In 1984 Jane Pauley interviewed 28-year-old Bill Gates. “Some people call you a genius,” Pauley said. “I know that might embarrass you but …” Gates deadpans. No emotion. No response.

“OK, I guess that doesn’t embarrass you,” Pauley says with an awkward laugh. Again, zero reaction from Gates.

Of course he was a genius. And he knew it.

Gates dropped out of college at 19 because he thought a computer should be on every desk in every home. You only do that when you have relentless confidence in your abilities. Paul Allen once wrote about the first time he met Bill:

You could tell three things about Bill Gates pretty quickly. He was really smart. He was really competitive; he wanted to show you how smart he was. And he was really, really persistent.

But there was another side of Bill Gates. It was almost paranoia, virtually the opposite of his unshakable confidence.

.Action Creates Motivation

by J.D. Roth 04 August 2020

“If you want to be rich, there's only one thing you need to know: Wealth is built by spending less than you earn. The greater the gap between your earning and spending, the faster your wealth increases. But this knowledge isn't enough to make most people wealthy. Again, knowledge without action is essentially meaningless.”

Human beings are interesting creatures. I'm fascinated by them. That's probably the reason I was a psychology major in college. It's certainly the reason that I believe (strongly) that everybody is talented, original, and has something important to say. (That bit of philosophy is something I picked up from Brenda Ueland's marvelous book, If You Want to Write.)

People are awesome — even if we're each flawed in our own way.

One thing I've noticed over the past few years is the dichotomy between knowing something and doing something. It's one thing to understand a concept or fact intellectually; it's a completely different thing to experience a fact or concept, or to put it into practice.

.What You Should Know About Bequeathing to Charity in Your Will

By Jessica Sillers — Apr 21, 2020

Writing your will is an opportunity to think about how you’d like people to remember you when you’re gone. For lots of families, that means choosing guardians and providing for children in the will. Another way to keep your legacy alive? Donating to charity.

Whether you call it a bequest, an endowment, a legacy, or simply a gift, money or assets you leave to charity can be a meaningful part of your final plans. No matter how large or small your estate is, there’s a way to leave a legacy to a cause you care about.

What Is Bequeathing to Charity?

.Should I Tithe or Should I Build Wealth?

The Physician Philosopher

Should you be giving to charity? And is there a right or wrong way to go about it? Should you do it pre-tax or post-tax? Bet you never thought there would be this many things to consider when it came to giving to charity. Keep reading to figure out all of the answers!

What You’ll Learn:

In this episode of Money Meets Medicine, “Charitable Giving: Pre-Tax, Post-Tax, or Not at All?” You’re going to learn…

Why you should give to charity! What things specifically apply to physicians when it comes to giving. Whether you should give pre-tax or post-tax. Why charity is a great way to making money an idol. All about the great tax benefits.

And more!

.10 Quick Steps That’ll Have You Managing Your Money Like A Millionaire

by The Penny Hoarder Staff

Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)

But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.

These are simple money moves any normal, non-millionaire person can make today. Each tip can get you closer to achieving your big goals.

.5 Strategies That’ll Help You Stop Fighting With Your Partner About Money

by Chaunie Brusie

It’s common for people in relationships to have different approaches to money. One might be a spender, while the other might be a saver. But as common as this might be, even small disagreements over how to manage money can add up over time, especially as you realize you and your partner may approach your finances in different ways that are subtle (or maybe not so subtle…) Either way, those differences will need to be addressed eventually.

So, when that moment comes for you, these tips will help you and your partner be able to effectively handle your finances when you have differing money mindsets.

Understand That Beliefs About Money Take Hold Early

How you approach your finances as an adult goes back to what you learned about money as a child, explains Jessica Small, who works as a licensed marriage and family therapist and premarital counselor with Growing Self Counseling and Coaching. Upbringing probably plays the biggest role in someone’s financial style,” Small said. “So much of our belief system about money is defined by the messages we received as a child and how money is talked about in our families growing up.”

.8 Secrets of The Wealthy That Most of Us Ignore

By The Penny Hoarder Staff

Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)

But there’s still plenty of things we can learn from rich people. Here are 8 of the smartest ways they save money…

1. They Spend $5 to Own a Piece of Amazon, Google or Other Companies

Take a look at the Forbes Richest People list, and you’ll notice almost all the billionaires have one thing in common — they own another company. But if you work for a living and don’t happen to have millions of dollars lying around, that can sound totally out of reach.

That’s why a lot of people use the app Stash. It lets you be a part of something that’s normally exclusive to the richest of the rich — buying pieces of other companies for as little as $1.

These Are the 5 Smartest Things to Do if You Don’t Get Another $1,200 Stimulus Check

by Mike Brassfield

Remember the $1,200 federal stimulus check you got a few months ago? Wasn’t that a lifesaver? Wouldn’t another one of those be nice right now? While politicians in Washington bicker and point fingers and fail to successfully negotiate another stimulus bill, the rest of us are all wondering the same thing: Am I going to get another $1,200 stimulus check or not?

If you’re one of the tens of millions of Americans who are out of work due to the coronavirus pandemic, you desperately need that money to pay for necessities like food and shelter. Even if you’re still employed, you need that extra money to pay for things like school supplies, unexpected child-care costs or skyrocketing power bills because you’re home all the time.

If the politicians fail us and you don’t get another stimulus check, we’ve got five tips to help you get through this time:

1. Negotiate to Stay in Your Home

If you can’t afford housing, don’t panic. Look at your options instead.

.9 Symptoms of an Unhealthy Relationship with Money

Do you have a love-hate relationship with money? Different people feel differently about money. Sometimes you feel confident about your financial situation. Other times you feel guilty about the money you spend. Some of us enjoy looking at our bank accounts, while some feel dreaded. Your relationship with money depends upon how you treat it. Whether you consider it your trusted friend or something that causes frustration, fear and guilt.

The good news is, no matter how unhealthy your relationship with money is, you can always take steps to improve it. However, to make that happen, you need to identify the habits which are causing you to overspend or preventing you from spending even on your basic comforts and necessities. In this article, we are going to discuss the symptoms that indicate you have an unhealthy relationship with money. But first, let’s discuss what is a healthy financial relationship.

What Is A Healthy Relationship With Money?

When we read the word “health”, nutrition, exercise and good sleep are what comes to our mind. We never consider money a part of our health. The truth is, to maintain a healthy lifestyle, you need to have a healthy relationship with money.