May is my favorite month of the year. Not because of Mother’s Day, (a commercial holiday that I hate and refuse to let my children buy me gifts or cards). But because this month I present to the trainees at my organization on personal finance. Inspiring Reads for May 2019 gets us back to the basics of financial literacy. Caring about what others think, being car-poor, buying a house, recognizing cognitive biases, and teaching kids about personal finance are topics of this month’s inspiring reads.
Inspiring Reads May 2019
By Think Save Retire
I vividly remember the day an 8 year old told me that his iPhone was better than my Samsung. He couldn’t even justify why his phone was better, other than that he knew an iPhone cost more money. I couldn’t believe that I cared what a child thought. As Think Save Retire puts it, “Most people are quick to judge and resist the strain it takes to think. . .” How would your life be different if you cared less about others’ opinions about what you should be doing or how you ought to be living your life?
By Millionaire Mob
Would you spend hundreds of dollars each month toward something that goes down in value with each payment? “Heck no!” Yet in reality, we do just that when we finance (or worse yet, lease) a car. I sincerely believe that car payments is a primary contributor to keeping the middle-class poor.
By Go Green Dollar
Of course I want my house to appreciate in value, but I recognize that above all else, I need a place to live. When it’s time to sell my house, if it’s gone up in value that means that other houses will have also appreciated, making it more expensive to move. As one’s primary residence, I agree that a house is actually a liability (something that costs money), not an asset (something that generates money).
Guest post by Peerless Money Mentor on Miked Up Blog
Anyone who has taken an undergrad Psych 101 class may be familiar with these cognitive biases. It’s always good to get back to basics with reminders of some core principles, such as the sunk-cost fallacy.
By Full Time Finance
The power of patience, valuing money and work, understanding interest, and living within your means. These important lessons are the basics of personal finance, and ones that each of us could benefit from mastering.
What inspired you this month?