Some articles that caught my eye this week…
Having the right kinds of insurance (home, auto, health, life) are a critical part of a sound financial plan. But there are a so many kinds of insurance out there and many of them are just a waste of money. Make sure you are insured, but make sure you have the right insurance.
Home ownership can be a great thing, and for most people it is a goal that should be pursued eventually. In some cases though, renting, at least for a time, is a much wiser financial move.
I believe the myth that “you’ll always have a car payment” is one of the anchors that prevent most people from ever truly getting ahead.
If you watched any TV news this past week you have probably seen the stories about the flash traders who are using computers to trade stocks in nanoseconds in an attempt to beat the stock market. While you can debate the ethics or legalities of this, my bigger concern with these kinds of stories is that they perpetuate the myth that there are these secrets that only the wealthy know and they gain their wealth by taking advantage of the “little guy”. The secret to wealth is spending less than you make and systematically saving and investing over a long period of time. Flash trading has very little effect on this.
What do you think of when you hear the word millionaire. Probably a glamorized TV-style “lifestyles of the rich and famous” picture comes to mind. But the truth is most real millionaires don’t fit that profile.
Many of these should be common sense. But unfortunately common sense isn’t always so common.