Monday, August 22, 2011
Sunday, August 14, 2011
Thursday, August 4, 2011
Millionaires doing the right thing
I was just watching the news on France 24 and I saw these links about millionaires signing petitions for higher taxes. You go millionaires!!
No wonder there's this idea that rich people are jerks. I am not convinced it's the rich people buying all that crap, though...
Anyway, keep in mind that once you create wealth, you can decide what kind of rich person you want to be.
Interesting, though, that I had to catch this on the French news. On the front page of the NYTimes today?
Even Marked Up, Luxury Goods Fly Off Shelves
Wednesday, August 3, 2011
Financial Flashcards
I got the brilliant idea to study my way to financial savvy the same why I tell my students to study for the TOEFFL exam: FLASH CARDS!!This is my source for definitions. Here are my words for today:
MUTUAL FUND: An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
NO-LOAD FUND: A mutual fund in which shares are sold without a commission or sales charge. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load fund, which charges a commission at the time of the fund's purchase, at the time of its sale, or as a "level-load" for as long as the investor holds the fund.
LIPSTICK EFFECT: A theory that states that during periods of recession or economic downturn, consumers will eschew purchases of big-ticket luxury items and seek material solace in smaller indulgences, such as premium lipstick.
Also known as the "leading lipstick indicator".
RETURN ON INVESTMENT (ROI): A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
The return on investment formula:
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
The return on investment formula:
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
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Ok. That's enough for now. That last one made my head spin, and it's going to take me a while to write all that on a flashcard...
Tuesday, August 2, 2011
Learning to crawl takes time
You always hear about little people learning how to walk, but never learning how to crawl.
After that last post I decided to take a little walk with the dog and the baby.
Remember when I told you about how she was learning to crawl next to me that time?
Well, fast forward a couple of weeks and guess what. She is still learning to crawl. Sometimes she goes backwards, sometimes she gets a leg caught under the couch, sometimes she falls flat on her face. But she's still trying. She's careful. She wobbles. She sees a toy she wants and she gets close enough to grab it and sits back on her tush. I wonder sometimes if she'll ever do it. Then I look down and she's accross the room, still wobbling, still unsure, but THERE instead of HERE.
Learning to crawl takes a long time and it's hard work.
After that last post I decided to take a little walk with the dog and the baby.
Remember when I told you about how she was learning to crawl next to me that time?
Well, fast forward a couple of weeks and guess what. She is still learning to crawl. Sometimes she goes backwards, sometimes she gets a leg caught under the couch, sometimes she falls flat on her face. But she's still trying. She's careful. She wobbles. She sees a toy she wants and she gets close enough to grab it and sits back on her tush. I wonder sometimes if she'll ever do it. Then I look down and she's accross the room, still wobbling, still unsure, but THERE instead of HERE.
Learning to crawl takes a long time and it's hard work.
I Just realized I don't know what the hell I'm talking about
I started this blog to force myself into learning more about personal finance, leadership and management. Writing is a way of holding myself accountable. So far I have been getting inspiration from the books I was reading. But, sadly, I finished my last library book yesterday (I lie, I have Jane Eyre on my bedside table, and that could give me something to write about, but not yet) so I had to find some new fodder today. Of course my favorite place to look is in the blogosphere. There were some pretty interesting blogs on personal finance (see my favorites in the side bar under Blogs I love) but I think I O.D.ed a abit. Now I can't think of a thing to write about. Reading about others' journies, instead of helping me, made me feel small and dopey.
But then I remembered that the learning process is like that. You start out not knowing anything, then you realize you don't know anything, then you start learning but you don't realize it, and then at some point BAM, you know something and you know it. Barbara Stanny has a whole chapter on this in Prince Charming isn't Coming.
Well, I'm at the DAMN-I-DON'T-KNOW-ANYTHING stage, ready for a Crisis. This happens to my students all the time. I reassure them. It's all part of the learning process and it's cyclical. Just when you start to realize you know something, it all starts over again. Only the crisis doesn't last as long the second time around.
But it stinks being an adult because we are no longer used to going outside the comfort zone. We hate feeling stupid, we don't want to make mistakes in front of other people. But I guess we have to if we want to go to the next level.
So be it.
But then I remembered that the learning process is like that. You start out not knowing anything, then you realize you don't know anything, then you start learning but you don't realize it, and then at some point BAM, you know something and you know it. Barbara Stanny has a whole chapter on this in Prince Charming isn't Coming.
Well, I'm at the DAMN-I-DON'T-KNOW-ANYTHING stage, ready for a Crisis. This happens to my students all the time. I reassure them. It's all part of the learning process and it's cyclical. Just when you start to realize you know something, it all starts over again. Only the crisis doesn't last as long the second time around.
But it stinks being an adult because we are no longer used to going outside the comfort zone. We hate feeling stupid, we don't want to make mistakes in front of other people. But I guess we have to if we want to go to the next level.
So be it.
Find your Messy Corner and stop being a weeny!
One by one I am trying to plow through the things I don't like to do. As they say, actually I have been reading it everywhere lately, the difference between successful people and unsuccessful people is that successful people do what others don't like to do.
So I am choosing the messiest part of my house (starting with the kitchen sink, like Fly Lady says) and my psyche, and am making a commitment to spend a little time working on them each day.
Today's messy bit of the psyche is called relationship maintenance. I let too much time pass before I get in touch with people I care about, making me look like a passive weeny. I am always happy once I do get in touch or have a nice conversation, I am just lazy about doing it for some reason.
For the record, you can be a passive weeny with me and I will always forgive you, but I will try to cultivate our friendship a little more actively.
Starting now.
So I am choosing the messiest part of my house (starting with the kitchen sink, like Fly Lady says) and my psyche, and am making a commitment to spend a little time working on them each day.
Today's messy bit of the psyche is called relationship maintenance. I let too much time pass before I get in touch with people I care about, making me look like a passive weeny. I am always happy once I do get in touch or have a nice conversation, I am just lazy about doing it for some reason.
For the record, you can be a passive weeny with me and I will always forgive you, but I will try to cultivate our friendship a little more actively.
Starting now.
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