.Unfortunate Investing Traits

Feb 4, 2021 by Morgan Housel

Napoleon’s definition of a military genius was “The man who can do the average thing when everyone else around him is losing his mind.”

What he meant, I think, is that most wars are lost rather than won. The final outcome is driven more by one side’s blunder than the other’s brilliance. One screw up can overwhelm a dozen smart decisions that preceded it, so even if strategy is crucial the expert is rarely preoccupied asking, “How can I be great?” The obsession is, “How can I ensure I’m at least average and never a disaster during the most important moments?”

And isn’t investing the same?

Most of this industry is devoted to finding greatness, which is inevitable because it’s what captures attention. But an occasional great decision can quickly become irrelevant unless you consistently avoid the blunders that move the needle even more. It’s not exciting, but we should spend more effort on ensuring we’re capable of doing the average thing all the time before we spend a moment trying to do a great thing some of the time.

.The 3 Most Important Words in Finance

November 22, 2020 by Ben Carlson

There are generally 3 stages of growth for a successful investor:

Stage 1. I know everything (when you’re first starting out)

Stage 2. I know nothing (after you learn a bit about markets)

Stage 3. I know what I don’t know (after you realize how hard markets are)

That last stage is difficult for many people in the world of finance to figure out. Or even if they admit it to themselves it’s difficult to let clients in on the fact that even the masters of the universe don’t know what’s going to happen next when it comes to the markets.

.How One Man Saved $1 Million in 5 Years

Cameron Huddleston Life and Money Columnist

Save $1 million with these tips.

If you’re graduating from college this spring, saving for retirement probably isn’t high on your list of priorities. In fact, GOBankingRates found that saving for retirement isn’t a priority for a large number of Americans. It certainly wasn’t at the top of Grant Sabatier’s to-do list when he graduated from the University of Chicago in 2007.

As a philosophy major entering the job market on the brink of the Great Recession, Sabatier was lucky to find work at a call center for an analytics company. The pay was pretty good, too: $42,000 a year. It was certainly enough to cover living expenses and leave him with some cash to stash in a retirement account. But Sabatier didn’t save a dime.

“I spent it all,” he said. “I had an opportunity to save when I was 22, but I didn’t. I tried to live the life.”

.10 Simple Habits of Money-Smart Individuals

Master these successful money habits to boost your wealth.

By Tracie Fobes January 22, 2021

Mark Cuban. Warren Buffett. Michael Bloomberg. Most people will never be as rich as the world’s wealthiest billionaires, but you can still learn from their smart money habits. From ditching debt to paying bills on time, fiscally savvy folks have developed good habits and plans that keep them in financial shape. And with a little effort, you too can master their tricks for managing money. If you’re looking to break bad money habits and get on more solid financial footing, follow these fiscal tips from the pros.

Have a Written Budget

Many people have a budget — sort of. They know who they have to pay each month and how much. However, they don’t have anything in writing. When you have a written budget, you see exactly where your money is going. Best of all, you can direct your money where you want it to go. Your budget is your roadmap to financial success, so make sure you include every single expense. Don’t forget about that coffee you grab on the way to work or the money you spend on parking every day.

.16 Real People Affected By the Coronavirus Give Their Best Financial Advice

Learn how you can get through the pandemic. By Erica Corbin July 17, 2020

The coronavirus, also known as COVID-19, has taken over the world. As of March 30, 2020, there were more than 770,000 cases and nearly 37,000 deaths reported worldwide. It has affected the young and old alike and turned daily life in nearly every country into a surreal nightmare.

From a financial point of view alone, it’s an extremely uncertain and stressful time. Millions of people are unable to work and yet still must pay rent, car payments, student loan debt and more. Buying groceries and other essentials has become a challenge for many, too, and not just because there isn’t enough toilet paper to go around. However, this doesn’t mean there aren’t ways of getting through this pandemic. GOBankingRates spoke with 16 people around the world who have been affected by the coronavirus, from job losses to life-threatening health concerns, and asked them for their best financial advice. Learn what you can do to manage your money during the outbreak.

.Old-School Money Advice You Shouldn’t Follow Anymore

These old-school rules could hurt you financially.

By Valencia Higuera December 10, 2020

If you don’t know much about money, you don’t have to look far for advice. You can always learn from personal finance articles, books and videos or from money-savvy friends and family. Although there’s no short supply of guidance, money rules can shift over time. For that matter, some old-school advice should be taken with a grain of salt. Here’s what the experts said is some of the worst money advice.

Pay Off Your Mortgage Early

Most people need a mortgage to purchase a home. However, financing a house entails paying thousands of dollars in interest. To reduce interest charges, some borrowers come up with a plan to pay off their mortgages early by making extra payments. This advice isn’t bad in itself, but according to Paul Moyer, the founder of SavingFreak.com, this advice doesn’t make the same financial sense in our current low-interest environment as it did when mortgage rates were higher, like 6% to 8%.

“Those extra payments can do more work for you by being placed in other investments,” Moyer said. “Even if you only get 6% over the life of the investment, you will beat the interest you are paying on your home mortgage.”

.5 Money Beliefs That Are Holding You Back

John Csiszar Mon, February 8

When it comes to financial planning, it’s easy to sabotage your own success. Between constantly rising bills and expenses and the omnipresence of the American “buy-now” culture, it can be hard to set aside money for things like emergency funds and retirement savings. Add to that the very human tendency to have self-defeating money beliefs, and it’s easy to find yourself adrift financially.

The good news is that saving and investing doesn’t have to be complicated. In fact, if you can talk yourself out of some of the most counterproductive money beliefs, you’ll find yourself on the path to success in no time. Here’s a look at some of the most common self-defeating financial beliefs and how you can overcome them for a more productive financial life.

The Money Date Guide: How to Talk About Money with Your Partner

February 8, 2021

Are you looking for a way to talk openly about your finances with your partner? Or do you want to start setting and sharing financial goals with your partner but don’t know where to start?

Then a money date is a great place to start. Money dates are a great way to get the awkward money conversation going between you and your partner. And they are a great way to set and share financial goals together and start feeling like a team. Every partner has their own feelings towards money rooted in their own lived experiences. And as a couple, it can be hard to discuss these things openly, as one can feel very vulnerable.

But figuring out a way to talk about money openly is a rewarding experience that will help you get on the same page and start working on your financial goals together.*

.Three Biggest Financial Fears

by Mike Brassfield

If you’re financially stressed out these days, you’re far from alone. These are rocky and uncertain times we’re living in, and the stress level is super high. A number of recent surveys have confirmed that Americans are financially frazzled right now.

For example, a survey by the National Endowment for Financial Education found that a whopping nine in 10 Americans say the COVID-19 crisis is causing stress on their personal finances. Most worry about not having enough saved, or not being able to pay bills. A survey by John Hancock Financial found that nearly a quarter of Americans have dipped into their emergency savings during the pandemic.

7 Key Home-Buying Numbers to Know
Shopping for a House? Here are 7 Key Home-Buying Numbers to Know

by Larissa Runkle Contributor JANUARY 25, 2021

There’s a lot that goes into buying a new home, starting with finding the right one all the way down to finalizing the paperwork. Somewhere in that process, you’ll likely find yourself trying to decipher myriad new terms and figuring out what they mean for you.

We’ve compiled this list of seven key numbers you’ll need to know when buying a home — plus the details on how understanding these terms can help you land your dream home.