A budget by any other name — be it a Happiness Allocation or the term I use occasionally, a Money Map, is still, in the end, the same thing. On the one hand, it’s semantics. On the other hand, I believe that our language is important and if one term sucks the joy out of life, choose a different term!
I emphasize that budgeting is a verb, not a noun. And there’s no right or wrong. It’s all about our values and our goals — not others’, and certainly not the “experts’.” I think “Joy” is overrated and hollow but, again, that’s a semantics thing, right? I value security and freedom. So my budget is my Freedom and Security Allocation tool. What would you prioritize when allocating funds?
As a money coach, this trend makes me cringe. I’d much rather teach people to save in installments, in advance, for their tees and jeans. One might be tempted to point out that the customer isn’t paying interest but someone is — the merchants. And no way they’re taking the hit to their bottom line so the cost gets passed back to the consumer through higher prices.
News and details of this breach are just beginning to come out but it’s going to be a doozy. The things to understand here are 1) “customers” are anyone and everyone who has a credit card, ever had a loan of any type, etc and thus has a credit rating — you’re likely a “customer” even if you’ve never had any direct interaction with Equifax or have ever even heard of them; and 2) the quantity and quality of the details the hackers know about the victims of this breach are deep and personal — our social security numbers, previous addresses, entire credit history — all the information you are often asked to provide in order to prove you are you.
I found this article to be intelligent and refreshingly meaty compared to the tired old hackneyed “Top 5 (8, 10, etc) Things” articles that PF bloggers are so fond of.
The full title of the article is Seven Mental Biases That Can Impact How You Invest but all seven biases impact our everyday money decisions as well, not just our investing decisions.
*The article was originally published on LearnVest but I can’t in good conscience provide a link to LearnVest because that site has very annoying pop-ups and the article is divided into tiny chunks over multiple pages to maximize their page views and ad counts.
This article speaks to one of largest disconnects I perceive in the field of personal finance — how does one get from living the day-to-day getting-by life most of us experience to having enough money to actually have need of a financial advisor? There’s a really big gap between having a couple hundred or a few thousand in a savings account and having enough funds that we feel we need professional managerial advice.
It’s that space, that gap, that I work to fill. Want to get to a place of needing a Financial Adviser? Work with a Money Coach!