Day 88: The Top 7 Purposes of Your Money (Part 1)

Whether we realize it or not, we are all money managers. That is because on a daily basis every adult makes decisions about where each dollar they receive will go. If someone is focused solely on paying rent and buying groceries, they are nonetheless directing their money to a specific purpose: getting their basic needs met. If they are maxing out their credit cards constantly, they are making a choice to forfeit part of future earnings (and perhaps a substantial part) to service debt. Whether or not our financial decisions…

Day 81: A True Test of Risk Tolerance

If you follow investing topics, or read up on personal finance, you will often hear about risk tolerance, which is the concept that as an investor you want to choose investments within a level of risk you can tolerate. You want to take enough risk that there is reward potential, but not so much that you are tempted to bail on your investments when the going gets tough (ie sell in a panic), or that you suffer inordinately in times of volatility. In a perfect world, your investments let you…

Day 72: Look, But Don’t Touch!

When it comes to our investments, I tend to “look but not touch,” that is, to pay attention to how our investments are doing, but not make any changes to them. At this point, our contributions are mostly on automatic. Sure, there are occasional exceptions, but by and large, there’s not a lot to “do” when it comes to our game of investing. It’s mostly sitting and watching 🙂 Which I do a lot of. I like to read up on how the market is doing, and I often look…

Day 67: Tony Robbins, I Appreciate You

One of the surprise benefits of re-reading “Money: Master the Game” is to really own what it means to me. I have repeatedly written about it in glowing terms (here and here), yet recently I realized that I have in fact been self-conscious about how much I love it. This seems to have begun when I first read and saw other people’s take on this book (on online blogs and discussion groups). Said feedback was overwhelmingly negative. Incredibly, some people hate this book! Case in point: last week I searched…

Day 66: “Wow, this is interesting. What will happen next?”

Three years ago I wrote about staying “cool, calm, and collected” as the stock market gyrations occurred. As I wrote then, Yesterday, the S&P 500… went down 2.6%, during a month that has been rocky to say the least.  The interesting thing is, when I saw that this had occurred, I did not get upset at all. In fact, on the contrary, I was merely curious! “Hmm,” I said to myself. “I wonder what will happen next.” Day 379: Staying Cool, Calm, and Collected About Mr. Market (from August 24,…

Day 57: Your Personal Mount Everest

As I wrote a few days ago, there are many wonderful insights in Tony Robbins’ “Money: Master the Game.” Yet at its core, its message is essentially the same message repeated time and time again in investing books from Burton Malkiel’s “A Random Walk Down Wall Street” to JL Collins “A Simple Path to Wealth.” Tony succinctly says it here: The core concept of successful investing is simple: Grow your savings to a point at which the interest from your investments will generate enough income to support your lifestyle without…

Day 54: Tony Robbins’ Fabulous “Money: Master the Game”

I’ve been re-reading (re-re-re-reading is more like it) Tony Robbins’ “Money: Master the Game.” As always, I appreciate its fine messages and am grateful that it came into my life. Since reading it for the first time in 2015, I have read dozens of personal finance books, yet Tony’s* passionate and open-hearted style still stands out. In his book, he lays out a financial blueprint to help ordinary, “non-financial types” (which is what I would have called myself) create an empowered financial future by becoming investors. There are so many…

Day 38: The Drama-Free Game of Growing Share Ownership (Part 2)

Recently I wrote about how investing is really a game of growing share ownership. Whether that is owning stocks & bonds, or any other asset (such as real estate, individual businesses, intellectual property), ownership is the path to wealth. When it comes to index fund investing, the regular purchase of shares over time becomes a powerful wealth-creating force. The daily gyrations of one’s portfolio balance are not nearly as important, though they can be plenty distracting from the true purpose of investing. One benefit of focusing on ownership rather than…

Day 32: Habits of “The Richest Man in Babylon”

Today I listened to part of an audio book of George S. Clason’s “The Richest Man in Babylon,” a classic of mid 20th Century prosperity literature that includes titles such as “Think and Grow Rich” and “The Greatest Salesman in the World.” As much as I have enjoyed many wealth-related books, I have always loved “The Richest Man in Babylon” because it really is a personal finance book first and foremost. Personal finance is where I shine! “The Richest Man in Babylon” really drove home for me the point about…

Day 26: The Drama-Free Game of Growing Share Ownership

It’s interesting how much we investors focus on our portfolio balance. As in, “How many dollars is the portfolio worth right now?” or “Wow, the portfolio gained $10,000 in value today!” Or “When will my portfolio reach $2 million?” Certainly this is understandable and normal. But focusing primarily on one’s portfolio balance can make for a bumpy ride, as the portfolio balance will always change with the daily fluctuations of asset prices. This can be a lot of fun when the market is up. But what about when it’s down?…