Ideas on Personal Finance
The ups and downs of the stock market affect all of us. Even if you don’t buy or sell stocks, you still own stocks through your retirement accounts (like 401K). I had written earlier about why one should not panic during a market downturn. However, as the market continues to go down further, it isn’t … Read more
A house is the biggest purchase people make in their lifetime. From a financial perspective, a house is a terrible investment (one should instead rent). But there are non-financial reasons that make buying a home worthwhile. Why buying a house is the worst investment? If you list out all the criteria you would want from … Read more
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For some Finer readers who like to listen to podcasts, one of my articles was featured in the Optimal Finance Daily podcast. Please click here to listen online or click here to listen on the Apple Podcast app or search for “Optimal Finance Daily” in your podcast app (Episode 1,860). For those of us who … Read more
When I started investing, I made the common beginner’s mistake – I started by buying and selling stocks. Over the years, I have learned that buying stocks / mutual funds / real estate / etc., should be the last step in investing. Below, I have highlighted three steps to take before investing. Hopefully, it will … Read more
Joseph Heller – a famous novelist – was at a party hosted by a billionaire hedge fund manager. A guest informed Heller that the hedge fund manager had made more money in a single day than Heller had earned from his wildly popular novel Catch 22. Heller responded, “Yes, but I have something he will … Read more
The last few months have been painful for investors. Some of my stocks are down 50% or more! I know the stock market goes up over the long term. But, in times like these, it is tempting to just sell everything. Two things help me overcome this temptation and allow me to stay invested. 1. … Read more
I used to think that Warren Buffett is one of the world’s wealthiest people because he is a great investor. Well, he is a great investor. But there is something else that has made him super-rich. Look at the graph below that shows his net worth by age: Buffett did not become a billionaire until … Read more
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A friend recently told me about her college professor, an ex-marine. The #1 thing he wanted students to take away from his course was to have a ‘Go To Hell’ fund. But what exactly is a Go To Hell fund? It means having enough money saved that if you do not like your work situation, … Read more
Nowadays, it is impossible to visit any online finance forum without reading how someone lost 40% in Bitcoin, 60% on an NFT, 80% in a SPAC, etc. I am not sure why people take such risks with their hard-earned money. When someone wants a root canal procedure, they go to a dentist. But when it … Read more
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Delayed gratification is the most important trait for financial success. To delay gratification is to resist the temptation of immediate pleasure for future benefit. Nature has wired us to seek instant rewards and not worry about tomorrow. Modern consumerism culture and advertising make it almost impossible to resist the temptation to spend money. However, numerous … Read more