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.
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.
Today’s flashback to 2008 follows the buyout of Bear Stearns, how their executives knew the financial reality and how the subsequent fallout of the failure of the large financial institutions was forming. CNBC aired a special, Crisis on Wall Street, on the frenzy of reactions during mid-September 2008 to deal with the quick domino-effect of the bankruptcies of the country’s largest banks. If you didn’t watch it, you can probably catch a rerun.
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?
When it comes to your financial knowledge, stop pretending that you don’t know what you’re doing. There are more resources than ever. If you’re a book lover, read a few on personal finance. If you’re a net surfer, start Googling up on financial terms.
Answer the following questions and take a few minutes to research anything that you don’t know. Don’t be afraid, we all have an area that we need to focus on. These items are off the beaten path, and from what I’ve seen, points that cause confusion. Some are Yes/No or True/False, while others are thought questions.
I’m all about sharing knowledge. I learn something new every day and never stop reading.
True or False: I have a progressive career plan that will increase my earnings within the next five years.
The last time I improved my work skills was ______________.
What I’ve accomplished during 2017 inspires me to keep it rolling. I pulled off some difficult projects at work and earned a top evaluation rating and raise. I finished an 18-credit certificate in Web Programming. I started this blog. Learning WordPress on my own and customizing the blog page was a challenge, but the struggle stretched my skillset. Blogging isn’t just about writing. It’s learning about social media, like Facebook, Pinterest, affiliate marketing, guest posting, and commenting on other blogs. My professional development wasn’t ignored. I conducted two financial planning workshops and presented at the IRS Practice and Procedures conference with the New York State Society of CPAs.
I didn’t focus on being financially independent until about three years ago. I had an idea what my net worth was, but wasn’t fully clear on the exact number. The lack of a plan made it a nebulous target.
In my 20s at the start of my career, retirement seemed so far away. I relied heavily on my accounting career to give me financial security. After all, I chose the career knowing that I’d always have a job. Consequently, every ounce of my energy went into working. There were summers that I never saw the light of day. I never knew when I was getting home and I made many sacrifices. Believe it or not, it was exciting and I enjoyed it. I latched onto an upward trajectory of promotions and raises. When I had full autonomy over my position, I liked being relied upon and the responsibilities that went with it.