Blast from the Past: My Money Philosophy

This was my first post on The Dog Ate My Wallet. Similar posts had appeared on my earlier (and since deleted) blog Baking the Budget, and a LiveJournal account also called Baking the Budget. This has been my general money philosophy for a long time. Oddly enough, it mirrors my philosophy about a lot of things (and kind of explains why I am a blogger) – which is that the world would be an easier place for us to navigate if people were more willing to talk about the difficult and taboo subjects.

And I am in a very different (and better) place financially in 2016 than I was in 2011, most of the problems I mention in this post are still issues today, some of them worse than they were then.

Originally posted April 14, 2011 on The Dog Ate My Wallet. Edited on May 20, 2016.

Lets start with this – I like talking about money. I know it is supposed to be one of those taboo subjects in every day life, but I do not care. I find finances, especially personal finances fascinating. And not because I am nosy or want to know if I am “better” than you, but because I honestly believe you cannot learn in a vacuum.

This country is currently in a financial mess, and I’m not talking about just the federal government. People are becoming entirely dependent on Social Security because they either failed to plan for retirement or their plans fell apart – 401(k)s demolished in the crash, companies abandoning pension plans, etc.

Most of us are swimming in credit card debt. Paycheck advance companies have become such big business that they advertise nationally. The housing market means many of us are just barely holding on, or on the verge of foreclosure and bankruptcy. Kids are coming out of college with student loan debt ranging in amounts from luxury cars to mortgages. They do not know if they will ever be able to retire, whether Social Security is still around or not.

There are a lot of factors contributing to this situation, and many that we the little people do not have any control over except through our votes. While I may occasionally touch on those subjects here, convincing people to change their politics is not my goal.

My goal is to talk about the things we can control – to put ideas out there and learn from each other. If you are making a decision in a vacuum, luck is the only chance you have of making a good one. We tell people to research smart phones, cars, computers, etc., before they buy. But we rarely talk about making sound financial decisions. We consider it rude to ask about income, savings, budgeting. Many parents do not even talk to their kids about these things. How can we expect anyone to make good financial decisions if no one talks about personal finances?

So that is what I am here to talk about. I can talk with authority only about my personal financial situation. I will present my views on a topic, but please do not just listen to me. Research your financial options just like you would a new car. Shop for mortgages. Make sure you understand what the terms of the loan mean. Look around for the best ROTH or traditional IRA for your situation. Or maybe straight up investing in the stock market is right for you. You need to do your research and figure that out.

There are a number of amazing personal finance blogs out there, written by people with a lot more financial knowledge than I have. If you need referrals, let me know. I will send you to those people.

And if you have something to say about what I post, say it. Agree with me, disagree with me, I do not care. Let us have a conversation, you and I. Let us talk about money, and maybe, just maybe, we will all be able to make better financial decisions because of it.