Usually blog posts have the latest and greatest money tips for knowledge, fun, or suggestion. There’s an element of persuasion to get to the ultimate FIRE, financially-independent, retire-early status. Easy savings ideas are rolled out, coupled with side-hustle suggestions. I’ve done a few of the jobs on the list but in the end, they didn’t pay very well and I’d rather have time to myself than work a second job.
My hobby is making my money work for me. I’ve coached others on money management and I’ve conducted financial management workshops.
Through my observations and interactions with others, being a financial planner is not as rewarding as I thought it would be. People want an easy answer, one that they don’t have to take responsibility for. Like a financial windfall is going to fall out of the sky to rescue them from their foolishness.
The maker of the documentary exposes the world of art collecting and the explosive valuations assigned to the art space. I call it “space” as I couldn’t get past the vacancy attached to paying a ridiculous amount of money for something to look at nor could I be persuaded by the pretension.
To me, it’s a profound lesson in how we define value in our lives. Because when you think about it, everything has value. And nothing has value.
You might have heard the alarm bells going off with interest rates increasing. Yes, they’ve been historically low since the 2008 economic crash. Most people seem to have forgotten that we have an interest rate at all. Mainly because savings-type accounts earn pennies. Interest rates do not make for the most exciting chat topic. I have a friend that rolls her eyes every time I talk about the economy. Little does she realize that the interest rate has many tentacles.
We’ve been on an interest holiday since the Great Recession. Mesopotamians paid higher rates in 3,000 BC.
Ten years ago, back in October, 2008, the stock market tanked. The uncertainty from the big bank bailouts and near-collapse of the economy was reflected in the wild volatility of the stock market.
The Dow Jones Average, at over 11,000 in the third quarter of 2008 was now below 8,500, resulting in year-to-date stock losses of over $8.3 trillion. The news of government bailouts rocked the markets and no one wanted to be in equities. It was a scary and dismal time and the instability was not to be contained.
Imagine losing your job or worrying about your job security at the same time knowing that your investment portfolio was evaporating. Not a fun time.
On today’s vlog session, I’ll be discussing the following topics:
Being the CEO of your personal finances and visualizing your financial future.
A business functions under the following formula: Revenue – expenses = profits
A good CEO works with each component to generate profits for the business.
Let’s take the first component. Revenue – this is the income of the business. It involves monitoring revenue streams of the business and projecting income growth.
You should be doing the same, because without income, there wouldn’t be a formula to work with. Project out your earnings, decide how to manage your current income more effectively or how to increase your current income.
On today’s vlog session, I’ve gathered the following topics – all related to debt:
Flashback to 2008 – Bear Stearns: the precursor of the Great Recession
Assessing stocks – the most important company metric is debt and risk level
Book review: Squeezed. What the author describes as new for our economy is actually not new at all. And by maintaining low levels of debt, you can maintain a high level of resiliency when responding to changes in the financial environment.
How are you managing your debt or is your debt managing you?