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.
In late October, 2008, the fear had set in. A writer from Newsweek chose to report on the edge of positivity but, really, there was none to be found. Everywhere you turned, there was more bad news.
Even the run on foreclosed properties had a downside. The article reports that foreclosed owners often left feces on doorknobs and banisters. That’s a reflection of the anger level of homeowners that had to abandon their homes. Many were on the verge of bankruptcy.
The “Ownership Society” rallied by President Bush was meant to include every American into the homeownership club. That went down in flames, taking the rest of the country with it.
Today’s first topic is asset diversification
I promised to talk about asset diversification and I know you’ve heard of this. You may feel a yawn coming on. I know, it’s not very exciting. What is exciting is knowing that your hard-earned investments won’t be wiped away in an instant if “Wall Street” makes a bad decision.
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?