Decamillionaire Tips Round Up
| November 2, 2011 | Posted by Roshawn Watson under Uncategorized |
By: Roshawn Watson
Have you ever wanted to learn personal finance tips from a decamillionaire? I thought so. In my first guest post since the Watson Inc relaunch in September, we’ll discuss three decamillionaire-vetted tips that will make you a financial champion on literally one of best personal finance sites around!
Come back on Friday, and the link to the article will be posted right here:
Getting into Financial Shape with the Decamillionaire Next Door
However, since I have sufficiently teased you, let me share with you the rationale right now exclusively (not in post) for why I think this is so important.
- Job Security Is An Illusion. No amount of training nor experience can guarantee that you will have a job tomorrow. The change could literally have nothing to do with your performance or likability. That’s why it is critical to expand your knowledge-base, your skill set, and your network constantly. Of course, you should aim at stellar job performance as well. However, don’t allow a false sense of security to lull you into complacency: your family’s well-being depends on it.
- Home Values Have Seen Better Days. People became so accustom to using their homes as investment vehicles and savings accounts. The substantial drop in home prices in many areas has rightfully given pause to many of those who employed this strategy. Banks closed lines and made lending criteria more stringent. It is unwise to depend on reserves that you don’t completely control.
- Selling Equities During An Emergency? Some people would rather “pay for” emergency expenses on a credit card before selling their precious blue chip stocks, especially if their blue chip equities’ values are down. However, if you use debt to finance your emergencies, you are just digging yourself into a hole. The borrower is slave to the lender. Intellectually, you may know this, but it is hard to get passed the psychology of selling equities when they are down (for some, even when they’re up it’s difficult). This is why having some cash not tied to an investment vehicle is a good idea. At least you’re not fighting against your own nature.
- It may be hard to get loans when you need them. Have you ever heard the statement banks want to lend you money when you don’t need it? It’s funny how we will cosign for people who banks, the very businesses who make their fortunes from buying (and sometimes selling) debt, won’t lend money to without our signing for the loan. That speaks volumes. Banks’ goal is to make money, like other businesses; a crisis may interfere with that objective. Thus, I wouldn’t consider counting on them in a crisis to be wise.
I can’t wait to delve into these issues and much more when I finally share the post with you on Friday!
Also, if you are an investor, aspire to be one, or have turned your nose up at the market, you’ll want to come back tomorrow for my forthcoming post regarding the 2008 crash.
Personal Finance (Yakezie and other PF bloggers)
Now, let’s get to business, I looked back, and the last Round-Up I did was back in Feburary. What!?! I’m sorry I’ve been away. There are plenty of uncommon personal finance articles that I want to share, and some of them are written by the same bloggers who help me promote my content via their own round-ups, tweets, votes on social bookmarketing sites, comments etc. I want to highlight their content now and give them a big virtual THANK YOU!
- Kris @ Everyday Tips and Thoughts wrote Opportunity Cost Is Not Just About Money. Here’s a brief sampling “The making money part of the equation needs to be balanced with the money I save plus my ‘happiness factor.’” Good stuff!!!
- Larry @ Krant Cents wants you to be prepared to Ace Your Next Lunch Interview. I changed jobs earlier this year, and a lunch interview was part definitely part of the process.
- Joe @ Retire By 40 asks How often do you check your net worth, and does your frequency change based on what the market is doing?
- Bret @ Hope To Prosper wrote Spending to Impress as a part of his provocative Money Fail series that you should definitely check out.
- Miss T @ Prairie EcoThrifter examines the the Pros and Cons of having a Home Gym versus gym membership; as someone who previously loss 40 lbs in 10 weeks and kept it off, I can personally vouch for the merits of having a home gym (nothing against the memberships though).
- Robert @ DIY Investor argues we already know what to do including not allowing anyone to purchase a home without a 15% down payment.
- The Grouch @ The Biz of Life compares the consequence of Big Government to the adult baby.
- Kevin @ Invest It Wisely discusses the his first time getting laid off and the lessons he took from the experience
- Andrew @ 101 Centavos writes about situational awareness and asks whether he’s paranoid.
- Moneycone discusses his thoughts on doing a 401K rollover and argues that it is preferable to roll your money into a traditional IRA rather than a Roth IRA, leaving it at the existing company, or cashing it out.
Carnivals I Have Participated In (* denotes editor’s pick)
- Carnival of Personal Finance at Hope To Prosper*
- Carnival of Personal Finance at Boomer and Echo
- Carnival of Personal Finance at Squirrelers
- Carnival of Personal Finance at Beating Broke
- Carnival of Personal Finance at Sustainable Personal Finance*
Round-Ups That Included Posts From This Site
- Krantcents hosts the KC Awards – Clone Wars edition 4
- Everyday Tips and Thoughts presents weekly links
- Invest It Wisely shares Weekend Reading
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.
Thanks so much for the inclusion. I am looking forward to your post tomorrow. Sounds very interesting.
My recent post Eco-Friendly Acne Fighters: Skin Care for the Frugal
That's why I disagree with using HELOC as an emergency fund. The bank can change the term and withdraw the line of credit. I don't want to be dependent on that during a crisis situation. I'm looking forward to Friday.
My recent post Economic Inequality Is Bad For Your Health
Thanks for the link and kudos. Before I went into business, I set up a number of things just in case! I assembled my advisors (CPA< banker and attorney), I set up a line of credit and a reserve of cash. I am basically a conservative person who likes to have a strong safety net when I take risks. Life is a bunch of risks so I have my safety nets set just in case.
My recent post I Want to be a Rock Star!
I will be a financial champion on Friday- it sounds like a great article!
Thanks for the link, and also for the tweets you have been doing. So glad you are back.
My recent post Opportunity Cost Is Not Just About Money
I'm happy to include your blog. Thanks so much for your posts and your commitment to commenting on other sites and helping others. I cannot wait for my investing post to come out tomorrow and my Decamillionaire tips post to be released on Friday!
Absolutely. That's my mindset too. It's tragic that all too often we get stuck between a rock and a hard place due to poor planning. I can't wait until my Decamillionaire post is released on Friday too.
You are certainly welcome @krantcents. That's exactly the team I would assemble too. A safety net keeps you from being at the mercy of others who typically don't have a safety net either. When the blind lead the blind… the saying goes. Anyway, I agree. It's conservative and perhaps a little "boring," but I sleep a whole lot better.
Thanks so much Kris for the shout out! You are very welcome for the link and tweets. I love the design, your articles, and your spirit. I'm happy to be back.
Cheers!
Thanks for the inclusion! I am down with 3 to 6 months of expenses in cash. Unless you burn through cash like crazy, your basic expenses should be a 2-3 months after-tax salary, which can be done if you commit to it.
We like it because modern liberalism did not exist then. Now if we could get rid of modern liberalism the world as a whole would benefit.
Therе’s definately a great deal to learn about this issue. I like all the points you have made.