Category Archives: Misc

Confessions of a Personal Finance Blogger

Perhaps there is something in the air or perhaps my frustration at working on switching to a new hosting service that has me thinking about my limitations and failures. So in the interest in proving I am not a personal finance guru all the time I present a brief list of confessions.

  1. With the recent market correction even I have had the thought “Did I make a mistake and is this investing with index funds a good idea?”
  2. I bought a stock when I was a teenager with no knowledge of what the company did or anything else other than I liked the name of the company. Sad but true. In the end the stock fell so much that I could barely cover the trading fee to get out of the stock.
  3. I’ve gotten to the point of reading so many personal finance books over the years I can now pick up new ones and skim entire chapters after reading two paragraphs in a chapter. You can only read about this great concept of ‘living below your means’ so many times before your brain starts to turn to mush.
  4. I do enjoy investing and personal finance, yet I very much dislike the paper work that comes with it (bank forms, account statements and booking appointments during my lunch hour to sign forms).
  5. Some days even I think “Am I too obsessive about all this personal finance stuff? Am I the only one who thinks that most people are strangely reckless with their money and still manage to turn out relatively fine some how?

Holiday Posting & Book Review: The Millionaire Next Door

Well everyone I’m officially on vacation from 3pm today until Jan 3rd. I will not be posting on Christmas and Boxing Day, but I will try to post after that as often as possible. Happy Holidays and have a great long weekend.

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I recent read the book, The Millionaire Next Door by: Thomas Stanley and William Danko, and I was a bit amazed by some of their findings. For example that fact that 80% of the millionaires in the US are first generation to their money was a bit of a wake up call. There are basically two types of a rich in the book: those that look rich (but actually have little assets) and those who don’t look rich (but have tons of assets).

If nothing else this book teachings you not to worry about what others think and just do your own thing when it comes to money. Just because you earn enough to have the big house in the best neighbourhood and two cars, doesn’t mean you have to spend it that way. I’ve always liked buying the worst house on the block in a decent neighbourhood and making sure I have a profit when I need/want to sell.

It also hammers home the idea that you are not what you drive. You have guys in the US who have a net worth of $10 million, but drive an old truck, because he likes to toss dead fish in the back seat after a trip to his best fishing spot.

So if your looking for some reading material over the holidays, I would suggest reading this book.