Second Look Sundays – Nov 5 2017
NOVEMBER 5, 2017 AUTHOR: SHAUN
This week I recap the consequences of taking on too much debt and why we should drown out “financial noise”
Welcome to this week’s edition of “Second Look Sundays” – a recap of my favorite money-related posts of the week. It’s a chance for me to lay-low for a day, and highlight some other fantastic folks!
Whether new, or just new to me, these posts caught my eye, and I wanted to share them with everyone.
Check back weekly to see what’s on deck!
1) HOW MY DEBT MAKES ME A SLAVE IN THE MODERN WORLD
By: Cash Dad
Read Time: 4-5 mins
Summary & Why I like it: In this post, Chris highlights the impact that debt has on our lives – namely it’s ability to “trap” us into payments. I like how Chris raises the issue of instant gratification, and how our inability as Americans to be content with “today” forces us into a payment-lifestyle. Personally, I like to think there is such thing as good debt, so long as it’s put to good use. For example, school debt within moderation can help propel you into a higher earning career, and debt can add leverage to your investments). These views slightly differ from what Chris highlights, but his perspective is excellent food for thought, especially given that a lot of people struggle with managing debt. Definitely a good read!
“When you take on a debt – any debt, are you free to do with your money what you want? The answer is: of course not. You have to start to pay back your debt – with interest to the bank. In my opinion, that makes you a slave.”
“I’m sure that all of us have or had debt at one time. We justify it as a way to buy things we can’t afford – Now! The United States is an instant-gratification society – we want things now.”
- Should you pay down debt or invest? Part 1 – Save thousands by making the right call
- How the rich use debt differently
2) FORGET THE GLOBAL ECONOMY, THIS SHOULD BE YOUR FIRST FOCUS
By: Family Money Plan
Read Time: 3-4 mins
Summary & Why I like it: In this post, Andrew takes the time to highlight the importance of being introspective. He introduces something that resonated with me – your “personal economy.” He argues that we all should spend more time focusing on things we can control (our income and our expenses) instead of focusing on things beyond our control (the broader economy). I appreciate how he framed the need for all of us to think as if we were self-employed in order to hold ourselves accountable. With this mindset, it’s easier to realize we’re in control of our income, our expenses, and our broader financial situation. He encourages each of us to own our financial position, good or bad. Overall, I think just about everyone can get something out of this!
“Well, the economy might be in shambles. But how are you doing? How’s your personal economy?… You see my friends, markets are going to do what they are going to do. You don’t get to control that anymore than you can control the tides. But your personal economy, that is something you have total control over.”
“Ask yourself these questions: Are you making more this year than last year? Have you been growing your income streams? Do you have income streams, or is it just one stream? Have you gotten rid of useless expenses? Do you need to start working on ways to build up your reserves, cut expenses, and invest?”
“You see, we all have a tendency to compare ourselves to others. It’s normal, and it’s wrong. We shouldn’t compare ourselves to others. You didn’t have the same opportunities and set backs as me. So why would you compare yourself to me?”
- Successful investors think differently – they think like an owner
- Don’t be a distracted investor – drown out investment noise
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