Category Archives: Growing Wealth

Oil and Water

12 Monday Mar 2012

Posted by in Growing Wealth, Health and Food

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We seem at times to be more loyal to things that harm us than the things that are really good for us.

For example, what is it about greasy food that we can’t seem to get enough of? While driving past a fast food restaurant recently, the familiar, compelling smell of french fry grease suddenly filled the car. And it smelled SO good! But I also thought about how often after stuffing myself with an order of those greasy potato strips, the sensation turns to an unsettling clump in my gut and slight nausea and a vow to stay away the next time.

Why do we keep doing this? We crave the fatty, salty goodness of fries and other deep fried goodies but after eating them we feel like we’ve just stepped onto another planet with a much higher gravitational pull. Yet we keep returning for more.

Hmmm. And that reminded me of another type of lure – the alcohol buzz. Same sort of thing. It can taste and feel so good at the start. But if you’ve ever overdone it and ended up later praising the porcelain god on your hands and knees and dealt with the worst headache the next day then you know how awful this seemingly fun activity can become. And you probably vowed to not do that again. Yet quite often we go back for more again and again.

And then there’s money and all the stupid things we do with it. We buy things we can’t afford to impress people we don’t like. We could write a book (and have) about all the mistakes we’ve made with money.

It seems our lives are at odds with many things, just like oil and water. You have to admit one thing, though. To keep going back to something that almost always ends up disappointing – that is loyalty. That is devotion. Why then, if we can tough it out for these and other inferior things, is it so hard for us to apply that same level of dedication to other more important things? Figuring this out is the key to winning.

What’s in a Name?

20 Monday Feb 2012

Posted by in Fun, Growing Wealth, Help is out there

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What’s in a name? Everything. Ever wonder what may have happened if the pop sensation ABBA had instead called themselves The Dimples? What if the rock group Van Halen had instead named themselves The Pen Pals? They would not have been taken seriously. Yes, the music may speak for itself, but would they really have been as successful? With a cheesy name we would have judged them completely differently! We’re very biased that way.

So it seems that names really do matter. Why else would so many music artists and actors create a stage name? Richard Starkey became Ringo Starr. Joan Marie Larkin became Joan Jett. Annie Mae Bullock became Tina Turner. Prince Rogers Nelson became Prince. Robert Ritchie became Kid Rock.

Then there’s Zoned, Sandstorm, Aviator, Debi DeAglio, Tommy Nova, Erwin Erwin, Ean Vianabon, Marcus James, and Patriot. Ever hear of them? If not, check them out – they’re pretty good for “no names.” :-)Bottom line, names matter. And so does the substance behind the name. The music. The acting. But there may be one exception to the importance of names.

In fact, beware of “stage” names and marketing gimmicks when it comes to money management firms and so-called financial experts. Is your money manager/advisor just a cleverly devised stage name stuffed shirt with expensive advertising and empty promises of making you successful, or is there really character and proven experience behind them? You’d better be sure, because your future will be affected so much by who you choose to help you win with your money. And in this case, the name really doesn’t matter.

In fact, the more real the name with money gurus probably the better. Street smarts and substance are everything here. Scott Krivoshein or Raymond James would do quite well. Erwin Erwin or Ean Vianabon…hmmm…

Pay off House or Invest in Stock Market?

17 Tuesday Jan 2012

Posted by in Growing Wealth, House

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We paid off our house early. In fact, eleven years early on a fifteen year loan! For a time we put everything extra we had each month towards the house. During some of this time we put none into retirement accounts. Was this a smart move?

I recently read this well-written article, Should You Invest in Your 401k or Pay Down Your Mortgage? Some interesting numerical examples are given to compare these two strategies.

Depending on the economy and your mortgage details, you may be money ahead to put extra funds into retirement and not the house. But there is increased risk in doing this. Read the article for a great explanation. If you want to minimize your risk, then paying off the house early may be better because you can’t predict the economy or your job situation.

The Millionaire Secret

02 Monday Jan 2012

Posted by in Growing Wealth

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Now here’s a paradox. The rich sometimes look poor and the poor sometimes look rich.

The best book we’ve read on the lifestyles of the rich (and the pretenders) is called The Millionaire Next Door by Thomas J. Stanley and William D. Danko. This book is a real eye opener. They interviewed millionaires and found a surprising number of them live in modest neighborhoods and drive boring cars.

So who then is living in the big house in an exclusive neighborhood, and “paying” for fancy vehicles, expensive toys and vacations? It’s likely the lavish wannabe that has moderately high to high income, but little net worth. Everything they have goes towards the minimum payments on their expensive lifestyle. Their impressive house is making them house poor. They are working more hours than they would like to keep up the golden window dressing. Most onlookers envy their dazzling lifestyle and wrongly assume the lavish wannabes are rich. Nope. And they likely never will be.

And this “wanting to look rich” mentality has trickled down to the moderate income levels too, thanks to clever advertising and easy credit. How many times have you seen fancy newer rigs (way nicer than yours) parked in the driveway of a dumpy house or apartment building? Everyone wants to look more successful than they really are.

Trying to look rich before becoming rich is the surest way to the poorhouse that we know of. People must choose whether to look like they’re rich or to live under their income and save the difference like most millionaires have done. The true millionaire down the street is like a “sleeper” car that looks unimpressive, but can outrun anything in the neighborhood.