For this week I rounded up the following blog posts that I enjoyed reading.
OMG My Money’s favorite personal finance posts of the week
- (My first contribution! Thanks Michelle and Howard for letting me be part of this!) Which is better for getting out of debt, experience or knowledge by Debt.com – click here
- My take – you can check out my response here or check it out in full below. I basically said knowledge first, take action, and learn. I am firmly and stubbornly on Team Knowledge over Team Experience. I love all the responses that summarized that knowledge is proactive and experience is reactive. This is absolutely true. Anything in life you want to be proactive to get ahead. Out of the 110 responses, 42 chose experience, 38 chose knowledge, and 20 were indecisive.
“I lived through some of the worst money mistakes early in my career (mid to late 20s) including defaulting on my student loans and not contributing to any company retirement accounts. You name that financial mistake and I can tell you all about it. In my opinion, money and debt lessons are better learned through knowledge first and then putting that knowledge into action. Be aware of overthinking and over-researching. Action is the key because action leads to experience. My mistakes could easily have been prevented had I proactively gained that knowledge first. I have lost years and years in the pursuit of financial freedom so please arm yourselves with knowledge, take action, and learn.”
- How ego is killing your financial well being by Ehelpify – click here
- My take – in my 20s I experienced lifestyle inflation. Let’s just say I could have been a lot further ahead in pursuit of financial freedom. To summarize how ego is getting in the way and all of these I experienced 1) irrational purchases, 2) self image, 3) self entitlement, 4) too much pride, 5) refuse any help. Here are tips to help you stop that ego from growing 1) identify the main culprits, 2) leave cash or credit cards at home, 3) get help, 4) get new hobbies, and 5) ask yourself if the purchase is ego driven.
- 5 best investment options for young people by Run the Money – click here
- My take – title of the blog post is misleading because the investment options laid out in this post are not investments, but rather tips to begin investing. To summarize the post, 1) build an emergency fund, 2) pay off debts, 3) save for retirement, 4) invest in insurance, and 5) put your money to work through short term investment options and mutual funds.
- The secret to defeating procrastination by Peerless Money Mentor – click here
- My take – I procrastinate. There I said it. Step one is to admit your problem, right? If you are like me, then you probably agree that it does not hurt to keep reading articles on how to reduce, eliminate, defeat procrastination.
- When buying a new car is a good idea by Cash Money Life – click here
- My take – I have never bought a new car. What a smart guy, right? Well, it is not what you think. I have only leased new cars. It is one of my biggest financial mistakes. This post stood out because it gives a different perspective on whether buying a new car is a good idea. Every financial guru or ninja who has gained financial independence will tell you that you should always buy used mostly because a car usually has its biggest depreciation during its first three years.