Smart Thinking On Investing – March 10
Jennie Duong of The Origami Life heads up Smart Thinking this week discussing how to get your family talking more openly about money. Cashville Skyline’s own Kate Dore reveals why your scarcity mindset is holding you back. And Maggie Germano in her self-named blog examines the distinction between good and bad debt.
Sarah Li Cain of High Fiving Dollars reveals how to ditch those expensive spending triggers. And Kara Perez shares the budget that worked for her on Investor Junkie…
How to Get Your Family Communicating about Finances
- Rather than try to drag everything out in the open and to avoid your family becoming embarrassed, have separate conversations at first
- Be sensitive to people’s feelings; it may not be the easiest discussion for your family members to open up about
- Try not to force your ideals on your family, be there to offer advice and support but don’t try and inflict your principles on others—you have to let them find their own path
Do you have any techniques for being open with your family about money? Share your comments in the section below
Free Yourself from a Scarcity Mindset
- A scarcity mindset is the worry that you never quite have enough time, money, or happiness, and it can be quite self-destructive
- When we’re overloaded with anxiety and negative thoughts we can not perform well in daily life
- While it can be beneficial to prioritize money and saving, don’t let it be detrimental to your health
“Good” Versus “Bad” Debt
- While all debt probably feels bad, there are some kinds of “good” debt that improve in value or generate income over time
- Student debt—that will help increase your earning potential—and mortgages—because you will earn back the interest you pay—are examples of these
- On the other side of the coin, “bad” debt is any loan that loses value over time and will never result in higher income, such as payday loans and credit card debt—avoid at all costs
Be Aware of Your Spending Triggers
- Often caused by emotions, our spending triggers are responses to circumstances that make us buy things we don’t need but believe will help us feel better
- This can lead to incredible amounts of debt, if you’re not careful, from habits such as retail therapy and other vices we think will fix our problems
- Start to recognize the your triggers before it’s too late, track your spending and ask yourself, “Do I need this purchase?” to help you curb the habit
Find the Right Budget for You
- By reading financial literature, you can discover many different approaches to budgeting and getting rid of your debt
- They won’t necessarily all work for you—expect to go through a certain amount of trial and error before you find the right one that fits your needs
- If you make the effort and tackle your debt aggressively you’ll be surprised how quickly you can overcome it
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.