Logic.
See the difference?
UPDATE: Some have taken issue with #5, but you’re missing the point. There are necessary student loans. “Unnecessary student loans” refers to those taking out loans for excessive living expenses, going back to school simply because you didn’t find a job right away, or staying in school longer than needed just because you don’t want to enter the real world.
Turn Off the Faucet
I heard an interesting story this morning and I wanted to share it with you all.
Years ago, mental institutions used a simple test to see if one of their patients was ready to be released. They had a room with a sink in it and not much more. They would plug the drain, turn on the faucet, and allow the sink to overflow.
Then, they would ask the patient if they would enter the room with a mop and bucket to clean up the water. What happened next was the true test.
If a patient walked into the room and turned off the running water before they began mopping, they were deemed to be ready for release. Sadly, however, many patients would enter the room and begin mopping the floor without turning off the water. Although they were performing the task that was asked of them, they were unable to easily identify the source of the water—the running faucet.
So many of us have financial issues that are similar to this problem. We aren’t able to identify the source of the problem, and we find ourselves mopping floor and wondering why we aren’t getting anywhere.
Many personal finance sites will hand you a mop, but my hope is that I can help you find the faucet.
A Harvard MBA's radical quest to erase his debt
B-school grad Joe Mihalic went on an extreme financial diet to pay down over $90,000 in debt in just seven months and charted his story through an anonymous blogging project.
Where Dollar Bills Come From
Every single dollar bill in the world — every $20, every $100, everything — is printed on paper made at one small mill in Massachusetts. That’s been the case for 130 years.
Source: NPR
If you had inside knowledge of an investment that you thought would be worth more six months from now, why would you be selling a large chunk of your stake in it this week?
John Shinal of MarketWatch, commenting on the fact that Facebook insiders are selling a large portion of their shares.
Source: soyeahduh
This is a great Home Buyer Quiz from Kiplinger. No matter how finanicially savvy you may be, I bet that you learn something new. I know I did!
Source: kiplinger.com
Debt Reduction Methods and Philosophies: Snowball, Avalanche and More
I typically recommend the Snowball Method because of the psychological victories along the way, but check out this article for a great description of other ways to pay off your debt.