One thing I’ve taken a little slack for is right now my only public goal is that I want to have $100,000 in principal deposited by the time I reach age 30. This is a good goal and has been pretty popular with many of my readers, however as a couple of you have pointed out – it’s a short term goal and really says nothing about how, when, and how early I can retire.
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The Carnival of Personal Finance #91 is being held over at The Sun’s Financial Diary this week. My article on I just don’t get it – what is the big deal about gas prices is down towards the very bottom.
As usual a ton of articles were submitted. Here are a few that I enjoyed
Sorry for another rant, but I’ve been spending a little more time at yahoo lately and have been actually reading their finance articles and it’s amazing how far from reality some of these articles are. Ok maybe they aren’t crazy because they can find lots of people to interview for them that back their articles up, but they are are far from reality for people who have common sense.
This latest article, talks about the cost of raising kids. I’ve always been one to think that the figures out there for the costs of raising kids were completely out of whack. Yes you can spend that much (if you try), but just like anything (cars, house, landscaping), if you are smart about it you can probably get better results with spending a fraction of the the money.
Maybe I’m the weird guy, but does any of these quotes from the article stand out as completely crazy?
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This is one tip that I think that is especially hard to follow, especially for new investors. It can be fun to check your stock, investment, retirement portfolio every day or every hour to see how much money you “made” or “loss” that day. While it can be fun, it can start playing with your emotions and your judgment. When you buy an investment it should be for the long term and you should accept the fact that in the short-term (especially if you invest in stocks and mutual funds) that your investment will go up and down for no good reason (sometimes significantly).
“In the short run, the market is a voting machine but in the long run it is a weighing machine.”
– Benjamin Graham
The problem with watching daily fluctuations or reading daily media reports on your company is that you start thinking that these fluctuations are actually nonsensical and that you should take some action on these fluctuations to make or save yourself some money. This will eventually result in you making rash decisions to possibly sell an investment or run up a bunch of commissions because you are trying to play the market.
I personally think you should be investing for the long-term so my personal train of thought is that if you don’t plan on holding onto an investment for at least 10 years you probably shouldn’t be buying it in the first place.
“If the job has been correctly done when a common stock is purchased, the time to sell it is almost never.”
– Philip Fisher
So save yourself the trouble and just rely on your monthly investment statements to keep track of your portfolio and even then don’t get too worked up if a single investment or your entire portfolio rose or fell by 20%.
I’ve been filing my returns electronically for the last 4-5 years and each year the process gets smoother and smoother. This year I filed by taxes electronically last Sunday. My state return showed up in my bank account on Wednesday and my federal return showed up on Friday. I was impressed to file and get my money back in the same week. Maybe I hit a dead spot, but either way it with that fast of a turnaround it makes me think that things are getting more and more automated so even in peak times I would think turn around should be pretty fast if done electronically.
In case anyone is wondering I took my tax money and then some and used it to pay down my HELOC. I haven’t talked too much about my HELOC on this blog partly because I’ve been pretty diligent about paying it off on my own. I took it out 1.5 years ago when we purchased our house and the balance was at $16,500. After yesterdays payment I only have $1,000 remaining, I’m still trying to estimate my cash flow out for next month and may be able to just go ahead and pay the entire thing off as I’ve seen to had a good string of luck lately running into unexpected money.
Edit: I actually just paid it off entirely. Feels good to pay off debt 🙂
Back to taxes – remember you have until April 17th this year to file your taxes, but if you are getting a refund you may want to go ahead and get your money back before then, it’s painless and quick if you file electronically.
If there is one thing I don’t understand is, how much people care about gasoline prices. If a news story came out today that said tomorrow all gasoline prices are going to jump by 10 cents, there would be lines wrapped around the block waiting to fill up for gas. I mean it would be great if people were actually that concerned about their finances, that the extra $1.20 (12 gallon gas tank) it was going to cost them just was unacceptable, but it’s not it’s something else and I don’t get it.
If you followed the last couple days you know that I am participating in Free Money Finance’s March Madness. So far my 4 submissions have been fairing pretty well, but I think I suffered my first loss or two. All my games in round 2 were very close.