Money Scripts – My first money vlog session

Today is the first day of my blog format.  Check out the video below for my latest money topics.

Today’s topics are:

Achieving financial satisfaction

How focusing energy on money management makes it happen

Money scripts

 

Today’s question is: What’s your money script and is it serving you?

Join me next week when I flashback to 2008 with articles from my personal archives on the events that led to the Great Recession.

Your feedback is greatly appreciated.  Leave me your thoughts and comments.

Related Posts:

Financial Happiness

Money Scripts

Financial Freedom – Get It

Protection From Financial Chaos

 

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

I stay in tune with the health of our country’s financial progress by taking in information from several sources.  I read Investor’s Business Daily on a regular basis.  They provide a gauge of the market and print it right on the front page: Market in Confirmed Uptrend, Uptrend Under Pressure, or Market In Correction.   I take cues from reports on CNBC and daily newspapers and combine the findings to make good decisions.  Ever since I’ve taken my financial position into my own hands, my level of attention is critical to its success.

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Summer Finance

Where’ve you been? Oh, sorry.  That was me gone too long.

Yes, I’ve been an absent blogger.  But, I’m back.

While I’ve been pondering where I’m taking this blog, this is how I’ve spent my summer and I’m happy to discuss the financial angles of each.

  • Managing the costs of various expensive household items
  • Coaching a new client
  • Being interviewed by Millionaires Unveiled
  • Blown away at the increase in my investment accounts

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The Joneses

Perfect family

On a typical lazy weekend, I came across an Amazon Prime flick called The Joneses.  All I saw from the description was “a perfect family…” and stopped reading.  I don’t like spoilers and I also know that there are no perfect families, so it intrigued me.

I was pleasantly surprised to see some of my factor actors, Demi Moore, David Duchovny, and Lauren Hutton, and as the story progressed, it sent my money-brain thoughts into motion.

The movie opens with the Joneses moving into a new home.  It’s in a polished, upscale neighborhood where the possibilities of a charmed life await.  With their stately peaks, each house’s exterior represents the image of suburban nirvana.

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Walking The Fine Line Between Frugality And Scarcity

When it comes to saving money, there are many ways to economize.  Taking your lunch to work is a great way to avoid overspending.  Then, there’s finding better alternatives.  A generic store brand is worth a try and may be just as good as a name-brand item.  Ultimately, there’s doing without.  However, the habit of doing without may offer diminishing or detrimental returns.

Frugal, froogal, froot-gle.  Nothing good can come of acting out a word that sounds way goofy.  I’m reminded of 18th-century farm living where vocabulary was as limited as the society’s vocational opportunities.  No one’s saying that you can’t adjust some habits downward, but developing an austerity habit may not help your future as much as you think it will.  Frugalizing to the nth degree can be harmful to your well-being.

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It’s Time To Go Shopping

invest

It’s time to go shopping!  Stocks are on sale!

The bull run is over.  Anyone that was waiting for a correction got what they wished for.  In spite of the  1,175 point loss, it’s still not a “bear market”.  That’s based on the percentages of the Dow Jones and S&P averages and their respective losses.  A bear market would be a result of a 20% drop.  The Dow Jones has only lost 8.5% from its record high, nowhere near 20%.

Don’t wind yourself up into a tizzy over the stock market.  I giggle when I read headlines like, “This pullback is the largest seen in the last 236-and-a-half days.”  There’s always some arbitrary measure of time in an offbeat number of days, weeks or years.  As I write, Marketwatch.com has two side-by-side headlines that contradict each other.  One promises a bear market, the next link calls this slump a correction, not a bear market.

The way I see it, this downturn is taking some of the fluff off the top.  If you bought high, like some Bitcoin investors did, your losses don’t feel so good right now.  But, hopefully you didn’t chase investments that have topped off, hoping that they’ll continue their increase.  That’s Investment Sin Number One: buy-high, sell-low.  If you’ve done this (again), it’s time to step away from the Quotron.

I don’t have any control over the jobs report or the GDP, and neither do you.  But I do know that I can control my reaction.  This is the time to test yourself.  Are you thinking about getting out of stocks? Or are you prepared to wait it out?  Better yet, are you thinking about buying?  My mouth starts to water when stocks go on sale.  When I don’t buy after a price descent, I regret it later.

It’s time to run when companies are buried in debt, when credit dries up, when new trade laws block commerce and when growth has come to a stand-still.  Entire industries can be wiped out based on one piece of legislation.  But if that’s not happening and fundamentals are strong, you’re looking at an emotion-filled selloff.

My best example of this was back in 2009.  I followed a number of stocks, mainly out of curiosity, one being GE.  When stocks were at their lowest, GE’s stock price was below $10.  I couldn’t believe my eyes.  There were no bad reports on GE specifically, just an underlying nausea associated with the economy that sent all stocks south.  I knew that GE was here to stay, and that the low stock price was related to the pessimistic aftermath of the near-collapse of the global economy.  I bought 1,000 shares at $7 a share and knew that it was going to double in a very short time.  It never felt more right and within several months, I cashed in my shares at $14.  That money paid off a car loan.  GE went on to move into the twenties.  I was anxious to pay off a debt, but easily could have quadrupled my money.  Even better, I could have bought more using idle cash but I stayed conservative and made it work for me.  As Jim Cramer says, “No one ever got hurt taking a profit”, and “Pigs get slaughtered.”

I’m watching GE again and deciding if I want to grab a few hundred shares.

My plan at this time was to make some alternative investments, but this is a rare opportunity to jump on.  If stock prices get too low to pass up, I may split my cash between some good buys and the TIPS.

 

5 Things You Need To Know About Bonds

 

investment allocation

Investing.  The word alone connotes stocks and bonds.  Diversification is the sister term associated with investing.  Subtract your age from 100 to figure out how much of an allocation in bonds you should own.  Why do we need to have bonds? And what makes bonds a necessary portfolio companion?  While trying to understand portfolio allocation a little bit better, I came up with the following five points.

 

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

 

First, Some Basics

Bonds are fairly simple to understand, they’re loans with a specific duration.  They pay interest at stated dates.  There’s an issue date and a maturity date.  The issue date is the beginning of the loan and the maturity date is when the principal is paid back to the investor.  Therefore, unlike stocks that you own forever, bonds are a temporary loan to the issuer.

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Book Reviews: Janesville and Hand To Mouth

financial struggles

In an effort to understand financial struggles, I read two non-fiction works: Janesville: An American Story (Amy Goldstein) and Hand To Mouth (Linda Tirado).

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

 

Janesville is an account of the economic adjustments that occurred subsequent to the closing of the local Janesville, Wisconsin, GM plant.  The book documents the shakeout of the newly-unemployed individuals that relied on their financial livelihood from the assembly plant.  To earn their living and raise their families, generations of workers banked on GM employment as a default.  When GM closed down the Janesville assembly plant, it disrupted the economic environment, leaving GM workers, and workers of supporting businesses, without employment.

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