Thoughts and Riches

.....a blog about personal finance, motivational stories, deals, and special offers

Books

Web Domain Registration

Tuesday, December 09, 2008

Money rules

Liz Pulliam Weston's article discusses 9 important rules to live by. Among the rules:

- Differentiate between needs and wants

Our actual needs are pretty limited: food, shelter, clothing, companionship. Just about everything else is a "want," and our wants are essentially endless.

.- Scarcity makes your choices for you

It's lovely to believe in a world of endless abundance, but the reality is that at any given point in time, our resources have limits. Whether it's oil in the ground, our time here on Earth or the cash in our pockets, there's only so much available to be spent.

People who ignore this reality are the ones who run out of paycheck before they run out of month, or who extend their unsustainable spending by relying on credit cards, home equity loans and other reckless borrowing.

- The pointlessness of the hedonic treadmill
- Every money decision has a cost of its own
- Why supply and demand rule
- Throw no good money after bad
- The role risk plays
- The time value of money
- The miracle of compound interest

Many of the above rules are probably cliche' for financially-savvy. However, they are good reminders. Many of the financial and credit-related problems we are seeing right now would not have happened had the individuals and firms not broken many of the above money rules.

For complete article:

MSN.com: 9 money rules to live by

posted by Ruby @ 10:54 AM

0 Comments:

Post a Comment

<< Home

See important Disclosure and Disclaimer

Favorite Quote

"If you look at what you have in life, you will always have more. If you look at what you do not have in life, you will never have enough".
- Author Unknown

Disclosure

This site uses cookies from companies like Google and others to enable the companies to deliver their services, personalize their ads and product offerings, and for traffic analysis. Information about your use of this site is shared with these companies. By using this site, you agree to its use of cookies. Additionally, this site, including blog posts, may contain reviews, links, banners, text and other forms of advertisements for products, services, courses, and so forth of companies of which we may be an affiliate member or for which we may get paid for referrals. This site may also contain blog posts for which we are paid, as well as blog posts regarding products or services of companies from which we may have received complimentary products or services.

Reward Surveys/Panels/Shopping/Contests