All in Financial Education
I opened a 529 account 3 months after my husband and I tied the knot in 2013. Call it intentional planning. Call it planned savings. Call it whatever you want, but it was just something I felt I needed to do given where we were financially. Having children also felt like our next big step after marriage.
You, right now, have a choice: you can let money control and define your life or you can control it. - Erin Lowry, Broke Millennial
This month’s book is Broke Millennial by Erin Lowry. You can read more about Erin on her blog, brokemillenial.com.
The title of the book can peg it as a book specifically for Millennials, but I disagree and encourage you to pick it up if you are looking to up your financial knowledge no matter what age you are. It’s not a book on investing or retirement, which I think makes it better. It’s a comprehensive on the basics of money mindset, credit, student loans and debt. The content in this book provides a good foundation for better money management and eventual wealth creation.
"There's no good idea that can't be improved on."
Kaizen is the Sino-Japanese word for "improvement". It’s a word that has been floating around in the business world for some time now, but now you’ll see it being applied to self-improvement and personal finance.
Today’s post is a little different. It’s a roundup post of money advice for teachers and educators. For majority of my posts here, I’ve written from the perspective of someone who was in the corporate world. By nature, being in the corporate world has it’s own unique system, terminology, career ladder, retirement, etc. After reading the TIME piece “13 Stories of Life on a Teacher's Salary” late last year, I was aghast at how little we pay and pay attention to the people that are shaping our children’s future.
To that effect, I think it’s equally important that teachers also take it upon themselves to do what they can to get themselves financial independent.
The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
There is absolutely no shortage of investing materials on the internet, but the problem is that there’s too much, it can be overwhelming where to even start. So to help you with that, we’ve compiled a list of resources, from YouTube videos, blog posts and books to help you navigate the world of investing. These are not your mother’s resources.
Develop a passion for learning. If you do, you will never cease to grow.
Who is Responsible for Teaching Financial Literacy?
This has been a question that has been weighing on my mind lately. I write and read a lot about personal finances and I wanted to figure out who really is responsible for financial education. I’ve observed a great deal of fear and hesitation when it comes to financial conversations, partly because many of us are just not used to it talking about the subject and partly because many of us aren’t well informed about finances.
The best time to plant a tree was 20 years ago. The second best time is now.
Happy New Year! Another year, another 365 days of well-meaning resolutions. To help you achieve your financial goals, we’ve come up with 19 actions items to take into the New Year. Yes 19! Pick one or two to focus on the first quarter, then another two for the next quarter. Do not overwhelm yourself by doing too much.
In Behavioral Economics, there is a term called the Pain of Paying in which we feel pain when we have to pay for something. Today, the Pain of Paying is harder to achieve because of new payment options that don’t allow us to experience a loss. How can we use this concept to curtail spending?
I thought I would sit down and see how we can gamify the journey to FI based on existing principles of how to engineer an addictive gaming experience. A game takes effort, takes time and takes a bit of strategy. In a similar vein, managing and optimizing your finances requires as much effort especially if you want to do the unconventional and reach the level of financial independence.
“If you’ve got a billion dollars and you’re not grateful, you’re poor as hell.” - Tony Robbins
So it’s been a few days now since I left the Unleash the Power Within (UPW) seminar with Tony Robbins and I am still reeling. I’m a fan of Tony Robbins and found a lot of amazing insight from his book Money: Master the Game and from watching the Netflix documentary, I Am Not Your Guru, but nothing really prepared me to experience Tony Robbins live.
Give a man an education and he will build a new world, but give a man a loan and you can own that man forever.
It’s been 10 years since I graduated from grad school. I still proudly hang up my diploma because it put me on a better path for my career and my income. It was also FREE. No loans, no debt, no soul to be sold. With that, I thought I might offer some ways to help reduce debt if you are a college student or have a child that is about to head to college.
“They sit mesmerized before advertising campaigns telling them to buy trifles they don’t need using debt they can’t repay.”
In “Financially Stupid People are Everywhere: Don’t Be One of Them,” Jason Kelly opens your eyes to the debt driven world we live in and what you’re up against in society. He posits the only way to truly safeguard your own well being is to look after yourself. Provide security and ensure your freedom by following the 4 financial rules that will keep you from being financially stupid.
“It’s been freeing to focus on what works for me rather than what’s wrong with me.”
I just recently finished reading Gretchen Rubin’s The Four Tendencies. In the Four Tendencies, Gretchen Rubin, outlines four different personality types based on how each one deals with inner and outer expectations: Upholder, Obliger, Questioner and Rebel. By understanding our Tendency, we can harness that to find our own internal and external motivations.
“After you leave home, you may find yourself feeling homesick, even if you have a new home that has nicer wallpaper and a more efficient dishwasher than the home in which you grew up.”
Next week, my parents will complete the sale of their home and journey back to the Philippines. Whether they end up staying in the Philippines for the remainder of their retirement or come back is yet to be decided. For the past few months, our entire family has gone through the exercise of cleaning out the house that we’ve called home for the past 23 years.
Talking to kids about money does not make money hungry kids.
I’ve been doing a lot of reflection lately about where I first started to learn about money and how best to talk to others about money. I’ve also been doing a fair amount of research and found a few books I thought were worth mentioning if you are a parent or an adult that is looking for ways to talk about money to your kids or your students. The reality is that the money conversation should start at home. It think it is the responsibility of the parent to expose kids about money concepts, otherwise, media and peers will create money influences that may lead to a distorted money mindset later on.
“Right now, your prosperity is provided by a plentiful supply of clean air, water, food, and energy. Although some of you like to take all the credit for this, it’s really my ecosystem that does all the hard work: the plants, animals, oceans, air currents, and especially the atmosphere. Without these services, you would lose your ability to create the food and products that form your current prosperity.” - Earth, Mr. Money Mustache
My two passions of sustainable living and sustainable investing are merging as I dive deeper into making my money work for me in a way that aligns with my personal values.
“A goal should scare you a little and excite you a lot.”
This past weekend, my husband competed in his first ever half triathlon, let alone his first ever Half Ironman. To say that I am awed and inspired my him and all of the other athletes is an understatement. As I was watching the entire race play out before me, I couldn’t helping think about some of the similarities to the Journey to Financial Independence. So here are my thoughts.
"A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life."
I recently came across an article written by Whitney Cummings on the last page of Money Magazine. She talks about her personal money management, but more importantly how she started substituting the word money for the word freedom. So I thought I would compile a list of phrases with this substitution. It's important to note that sometimes changing our language changes our mindset in a whole new way even if we haven't fully internalized it yet. Try these on for size. Speak them out loud. How does saying one versus the other make you feel?
“A woman’s best protection is a little money of her own.”
The gender gap is everywhere. Women are usually paid less in spite of their male counterpart doing the same job. Finance and women are also considered to be poles apart.
According to a survey conducted by Forbes, around 58% of men were of the view that their financial understanding was up to the mark, whereas only 47% of women said so.
But, the situation is changing day by day. Women are now gradually climbing the ladder and gaining financial success.
It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
So what exactly is the Lifetime Wealth Ratio? Well, it is an eye opening number that looks at your earnings vs. your savings.