What do burgers, kids, and movies have in common? They all involve opportunity costs.
When you buy a burger, you can’t use that money to rent a movie, pay down debt, or invest. And when you sit down to watch a movie, you’ve traded your time and money for two hours of entertainment.
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Financial matters have a reputation for being complicated. Ill-deserved or not, financial success requires that we consistently make the right choices. Unless you’re content to settle for water cooler advice or willing to do the research, you’ll need to know how to find reliable financial advice.
Many people rely on media gatekeepers and financial “advisors” for [...]
Most of us know new cars are an expensive habit—they simply depreciate too rapidly. But many of us still buy our vehicles new. For us, the trade-off of several thousand dollars in depreciation is worth the new car smell and the knowledge that the vehicle is in perfect condition.
Whatever your or my rationalizations, it pays [...]
“I need it” thinking can be dangerous.
Dangerous because it is occasionally true. But more often, we’ve simply confused our wants with our needs, resulting in more money flowing out and new “needs” sprouting up.
Needs usually fall along a scale. Food can be a matter of life or death, but usually the choice is between dining [...]
Q: With housing prices dropping, we’re hoping to buying our first house. Is now a good time to buy? What do we need to do to avoid the housing crisis?
A: There are two issues here. Is it a good time for anyone to buy a house? And, is it a good time for you to [...]
Generally, saving money is a great idea.
Most of us would be better off if we were more frugal.
However, there are times when it doesn’t pay to be frugal. Here’s six examples where the costs outweigh the savings.
1. When the savings are minimal
Sometimes the savings are so tiny that it simply doesn’t pay to extend the [...]
No, I’m not encouraging you to go out and spend money, but rather to remind you to make a conscious decision when you spend money.
Don’t spend money out of habit, routine, or reflex but rather spend your money on things that provide you true, lasting value or are at least things you actually want!
Intentionally spending [...]
We all make financial decisions, every day in fact. It’s only natural that some of our decisions could have been better. However, when bad decisions persist they cease to be simply bad decisions (or lessons if you like) and become major obstacles to financial success.
Here’s four potentially disastrous actions.
Delaying
We’re all tempted to delay saving for [...]
Have you ever heard the phrase “financial sense”?
While the phrase may sound awkward at first, possessing a head full of financial sense is just as important as common sense. Understanding how to save, spend, and invest is essential for financial success. Unfortunately, financial sense is not always the same thing as common sense.
Due to this [...]
