June 16, 2008 at 10:57 pm
Comments posted to this topic are about the item The Green Stuff
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June 17, 2008 at 3:12 am
A great resource:
http://www.moneysavingexpert.com
written for the UK but many items applicable to all, especially the forums advice.
June 17, 2008 at 4:15 am
Steve,
One of the great things about your editorials is that it promotes a balanced life. It is too often that we get focused on one aspect of our life at the cost of others. Thanks!
Another great book on the subject of money is "Rich Dad, Poor Dad" by Robet Kiyosaki. (http://www.amazon.com/Rich-Dad-Poor-Money-That-Middle/dp/0446677450/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1213697503&sr=8-1)
June 17, 2008 at 5:56 am
Excellent editorial Steve. I've have really enjoyed reading them. It's nice now and then for us to read about something other than code. Makes us stop and think more about the Big picture.
Take care
Emery
June 17, 2008 at 6:30 am
http://www.daveramsey.com is another great resource of getting out of debt as well as giving an over all plan to live by.
1. 1000 in an emergency fund
2. Debt Snowball Start with the least amount and snowball until you get out of debt.
3. 3- 6 months of emergency fund
4. Fully fund the Retirement
5. College Saving ESA/529 Plans
6. Pay off the House
7. Build Wealth.
All of this assumes that you will give, give, and give as a part of the plan.
The greatest plan is only a plan if you do not implement it.
"Total Money MakeOver"
By Dave Ramsey
You can also listen online. If you need a kick in the pants this guy will motivate you.
June 17, 2008 at 6:33 am
On this topic, I would have to highly recommend Dave Ramsey (www.daveramsey.com). While some people may see him as a little "old-fashioned" or no "sophisticated", if you actually follow his advice, you'll be amazed how well you'll do.
June 17, 2008 at 6:53 am
The calculation would be just fine, if the currency maintained its value, or at least if interest rate was greater. Nothing about future is sure, least the value of money, existence of your bank in 30 years or property value.
What to do? Yes, you have to think about future and financial, but, just like in software development, don't bet everything on one card. Always have some redundancy, backup plans, just like server hardware has redundant disks, blades, power supplies,...
June 17, 2008 at 7:02 am
Samuel Clough (6/17/2008)
On this topic, I would have to highly recommend Dave Ramsey (www.daveramsey.com). While some people may see him as a little "old-fashioned" or no "sophisticated", if you actually follow his advice, you'll be amazed how well you'll do.
Old-fashioned and sophisticated, yes! But consider this, how many of our grandparents are struggling financially? I know mine aren't because they used the same principals that Dave teaches. Also, consider his Financial Peace University. Companies should consider providing this for their employees. We actually attended through our church, which is another great option.
June 17, 2008 at 7:09 am
Steve - I think this article was just as appropriate as any “database related” editorial you could have written. When I consider what the IT field makes compared to other fields, I count my blessings.
Two of the financial Biblical principles that have helped me the most:
Proverbs 22:7– “The rich ruleth over the poor, and the borrower is servant to the lender”. When the income is good, it is time to pay off debt (the lender), not accumulate more stuff. I have found that by living modestly and paying off the lenders (Education loans, Mortgages, etc.), when income was good, it relieves the financial pressure and reduces stress when unforeseen events happen. It has also allowed us to save and invest more income.
Proverbs 3:9-10– “Honor the Lord with thy substance, and with the first fruits of all they increase: so shall thy barns be filled with plenty, and thy presses shall burst out with new wine.” God owns everything. If I give to God the first fruits of my income, He will make the rest of the income go further. I have found this principal very true.
One more thing that is worth considering, I have never read the book “The Richest Man in Babylon” (maybe I will now), but Babylon had an end. All of us will have an end in this life. That is why it is so important to be proactive and consider what is ahead in eternity, where money won’t do any good. Mark 8:36 “For what shall it profit a man if he gain the whole world and loose his own soul?” Consider the Bible way of obtaining eternal life Romans 6:23 - “For the wages of sin is death, but the gift of God is eternal life through Jesus Christ our Lord”. A gift is something you can’t earn, buy, and something you don’t deserve and that, my friend, is worth more than the largest income in the world. If interested go to or contact http://www.northcolumbusbaptist.org/
Great editorial Steve!
Bill Richards
June 17, 2008 at 7:11 am
Back when I graduated from college, I started subscribing to Money magazine. While I really never followed much of the investing advice, I learned quite a bit about managing your money.
One of the biggest keys to improving your financial status is to avoid debt, especially credit card debt. I personally only make exceptions for a home and (used) autos.
June 17, 2008 at 7:12 am
While the numbers always seem large, the value of the money is decreasing almost as fast as standard bank interest is accruing, so by the time you need it, it's good, but not nearly as good as it seems now.
Perhaps better to invest in property, you can either use it or sell it when you get older.
My inlaws were never wealthy, but did work to own property, eventually selling a NJ home years ago and getting a chunk of land in TN. Now in their 80s they've sold some and still have significant land left. Better than a bank account in the long run.
...
-- FORTRAN manual for Xerox Computers --
June 17, 2008 at 7:30 am
For me the best advice was given on Saturday Night Live:
http://consumerist.com/consumer/clips/snl-skit-dont-buy-stuff-you-cant-afford-252491.php
By not buying crap, my wife and I have been contributing 20-30% of our income to retirement accounts for the past 12 years. Today we own our house, our car (a cheapie Ford Focus) our bikes (which we use more than the car) and this year we dropped our hours down to .75 time. I'm 36 and hope to be working .5 time in my 40's.
But if everyone stopped buying crap, our economy would fail and my investments would bomb. So if you can afford to do so and would like to keep working till your dead, please keep buying crap.
June 17, 2008 at 8:26 am
When Steve says:
"At a conservative 6% interest"
it's not quite that easy.
One needs to consider 1. Federal and state income taxes, and 2. Inflation.
There aren't any investments around that will provide a risk-free return of 6% after those 2 factors are considered.
June 17, 2008 at 8:38 am
As long as your investment is returning greater than 5% to account for your two noted factors, you are seeing a marginal return. Anything less than 5% and you are actually losing money to taxes and inflation.
June 17, 2008 at 9:16 am
Great comments and glad you all liked the article. I think Dave Ramsey is good as well, and we've used the snowball method for consumer debt and it worked well.
6% doesn't get you a lot, but it's something. You have to look at your situation and think about what you might need in the future. The important thing is to look at it and make your own decisions.
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