Dave Ramsey Accidentally Shows Us Why We Use Caution When Taking Advice From Personal Finance Professionals
Earlier today on Twitter, personal finance “guru” Dave Ramsey showed us his plan that would allow everyone to “become a millionaire”:

Saving only $100 per month from age 25 to age 65 at 12% growth = $1,176,000. Everyone should retire a millionaire!

Sure, he’s encouraging people to save, and that’s obviously a good thing. But, he’s also using exaggerated claims about how to achieve some dream-like lifestyle in an effort to sell more of his stuff. The truth is, it’s not that easy for most folks, or even financial professionals for that matter.
After receiving several responses calling out his absurd claim, he took to his radio show to go on an all out rant:

It’s simple concept in a culture that has the savings rate and financial maturity of a two-year-old. To simply put out there that maybe if you save some money you would have some blows people away. This is why I have a job for as long as I want one. I will never be unemployed. Just teaching people to save money and get a bunch of money and get out of debt. Me and Jenny Craig, we got a lock for life, baby. We got enough work forever.

Ouch. Sure, there may be some truth there, but come on. He’s basically said that he likes that people are in debt because it keeps his pockets lined. Not cool, man.
He later went on to say that if you can’t find a fund that averages 12% per year, then you should call his hotline for advice on which funds to pick. 
Very convenient…call a hotline to get a list of Ramsey-endorsed funds. I wonder why he would endorse certain funds? 
It’s because he gets PAID to endorse those funds! It’s the same scenario when a financial advisor recommends funds that bear his or her company’s name—they get paid more to suggest them whether they’re the best option or not.
All in all, Dave Ramsey does help a lot of people. However, it’s a good reminder that no one really cares about YOUR money more than YOU. Especially someone that gets paid for giving you advice.

Dave Ramsey Accidentally Shows Us Why We Use Caution When Taking Advice From Personal Finance Professionals

Earlier today on Twitter, personal finance “guru” Dave Ramsey showed us his plan that would allow everyone to “become a millionaire”:

Saving only $100 per month from age 25 to age 65 at 12% growth = $1,176,000. Everyone should retire a millionaire!

Sure, he’s encouraging people to save, and that’s obviously a good thing. But, he’s also using exaggerated claims about how to achieve some dream-like lifestyle in an effort to sell more of his stuff. The truth is, it’s not that easy for most folks, or even financial professionals for that matter.

After receiving several responses calling out his absurd claim, he took to his radio show to go on an all out rant:

It’s simple concept in a culture that has the savings rate and financial maturity of a two-year-old. To simply put out there that maybe if you save some money you would have some blows people away. This is why I have a job for as long as I want one. I will never be unemployed. Just teaching people to save money and get a bunch of money and get out of debt. Me and Jenny Craig, we got a lock for life, baby. We got enough work forever.

Ouch. Sure, there may be some truth there, but come on. He’s basically said that he likes that people are in debt because it keeps his pockets lined. Not cool, man.

He later went on to say that if you can’t find a fund that averages 12% per year, then you should call his hotline for advice on which funds to pick.

Very convenient…call a hotline to get a list of Ramsey-endorsed funds. I wonder why he would endorse certain funds?

It’s because he gets PAID to endorse those funds! It’s the same scenario when a financial advisor recommends funds that bear his or her company’s name—they get paid more to suggest them whether they’re the best option or not.

All in all, Dave Ramsey does help a lot of people. However, it’s a good reminder that no one really cares about YOUR money more than YOU. Especially someone that gets paid for giving you advice.

When we remember our past selves, they seem quite different. We know how much our personalities and tastes have changed over the years. But when we look ahead, somehow we expect ourselves to stay the same, a team of psychologists said Thursday, describing research they conducted of people’s self-perceptions.

They called this phenomenon the “end of history illusion,” in which people tend to “underestimate how much they will change in the future.” According to their research, which involved more than 19,000 people ages 18 to 68, the illusion persists from teenage years into retirement.

Translation: For crying out loud, put a little money away for retirement. You may enjoy sleeping on a broken futon in an apartment that you share with 6 of your best friends now, but don’t assume that Future You will. Worst case scenario, Future You still enjoys living like a college student and has a bunch of money.

emergentfutures
emergentfutures:

Will Big Data Destroy the Stock Market?


When you buy a stock, you place a bet on how that stock will perform in the future. In a perfect world, where market insiders and manipulators are removed from the equation, the market is a terrific tool for determining the true value of companies being invested in.
But what happens when the volume of data used to make decisions increases 100 million times, and trading volumes increase 100 million times, and trades can be transacted over 100 million times a second?

Full Story: The Futurist

Today’s market is so different than it was just ten years ago. Think about it. You used to have to be at a computer to place a trade or read research. Now you can do it while you wait in line at Starbucks via your phone.

This world of instant news that we live in has completely changed the game. It doesn’t mean you should stop investing, but if you’re using the same techniques you were ten years ago, then you’re doing it wrong.

emergentfutures:

Will Big Data Destroy the Stock Market?

When you buy a stock, you place a bet on how that stock will perform in the future. In a perfect world, where market insiders and manipulators are removed from the equation, the market is a terrific tool for determining the true value of companies being invested in.

But what happens when the volume of data used to make decisions increases 100 million times, and trading volumes increase 100 million times, and trades can be transacted over 100 million times a second?

Full Story: The Futurist

Today’s market is so different than it was just ten years ago. Think about it. You used to have to be at a computer to place a trade or read research. Now you can do it while you wait in line at Starbucks via your phone.

This world of instant news that we live in has completely changed the game. It doesn’t mean you should stop investing, but if you’re using the same techniques you were ten years ago, then you’re doing it wrong.

kiplinger
Finally, an explanation for my collection of window A/C units.
Stores like Target aren’t the only ones trying to get you to spend more money. Your own mind is a culprit, as well. Try to think of your major purchases in terms of their long-term use. Will this be something that can improve your well-being throughout the year, or does it really only serve it’s purposes for a few months?

Finally, an explanation for my collection of window A/C units.

Stores like Target aren’t the only ones trying to get you to spend more money. Your own mind is a culprit, as well. Try to think of your major purchases in terms of their long-term use. Will this be something that can improve your well-being throughout the year, or does it really only serve it’s purposes for a few months?

kiplinger

kiplinger:

Tomorrow’s live chat: Financial advice for 20- and 30-somethings. Kiplinger editors will be on hand from noon to 1 p.m. EST to talk student loans, beginner investing, and anything else you young folks are curious about. Submit questions here and tune in during or after the chat tomorrow to get the answer to your Qs. 

Get on this, everybody. Those Kiplinger folks know their stuff.

Wow, what a milestone! You all are awesome. Thank you for all of the support and kind words. 

Back in September of 2010, I never thought that this little blog about personal finance would ever get to this point. My life has been enriched so much since then, and I have the amazing Tumblr community to thank for that. I appreciate you all more than you could ever know.

Wow, what a milestone! You all are awesome. Thank you for all of the support and kind words.

Back in September of 2010, I never thought that this little blog about personal finance would ever get to this point. My life has been enriched so much since then, and I have the amazing Tumblr community to thank for that. I appreciate you all more than you could ever know.


31 Steps to a Financial Tuneup
When things are presented to us as a list of THIRTY-ONE things to do, it makes us not want to do any of it because it sounds like too much effort.
My advice is that you don’t try to take on all of this at once.  Today, this weekend, or even a week or two from now, strive to cross two items off of this list.  To make it easy, I’ll even pick a couple for you…
1. Set an automated payment toward your debt
2. Check your credit reports for free at annualcreditreport.com
These two items can have a profound impact on your financial well-being, and it’ll take you all of about 20 minutes to complete.

31 Steps to a Financial Tuneup

When things are presented to us as a list of THIRTY-ONE things to do, it makes us not want to do any of it because it sounds like too much effort.

My advice is that you don’t try to take on all of this at once.  Today, this weekend, or even a week or two from now, strive to cross two items off of this list.  To make it easy, I’ll even pick a couple for you…

1. Set an automated payment toward your debt

2. Check your credit reports for free at annualcreditreport.com

These two items can have a profound impact on your financial well-being, and it’ll take you all of about 20 minutes to complete.


kiplinger

kiplinger:

Once a month, we do these really cool live chats with financial planners from the National Association of Personal Finance Advisors. (The New York Times even wrote about them!) Basically you ask questions about your money sitch and they give you their best advice.

Today’s chat starts at 1 p.m., so get your questions in now. You can ask through Tumblr or right on Kiplinger.com.

This is happening now. Get your tough questions answered!