I Don't Know Anything (Full Version)

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Palyxandra -> I Don't Know Anything (6/18/2009 3:43:09 PM)

I am trying not to look completely ignorant but I know absolutely nothing about finances. I want to learn desperately though! I think it's much like paddling a canoe down a river I have never been down before. By the time you make the wrong turn it's too late! So I need to know about money market thingies and interest and ugh tons of stuff [8D] So if anyone knows of any good websites or books to recommend I will be most grateful : ) For I have little knowledge.

-Thanks in advance!

Aly



writerchick -> RE: I Don't Know Anything (6/18/2009 4:12:33 PM)

The best advice I can give you is to pay attention to all of blessedinnyc's posts. There is a wealth of knowledge in every one.

Now, if you want to learn about coupons, I'm your girl. I just finished spending my $74 profit from Walgreens and earned $26 more in the process. [:D]



Palyxandra -> RE: I Don't Know Anything (6/18/2009 4:13:20 PM)

Thanks [:D]



GroupW -> RE: I Don't Know Anything (6/18/2009 5:09:22 PM)

quote:

ORIGINAL: writerchick

The best advice I can give you is to pay attention to all of blessedinnyc's posts.


Generally, I think the folks here do a good job. I've been a banker/corporate finance guy for 25 years, and I think I can support people's opinions here very consistently. Just ask - you'll get a good range of opinions that generally fall within the range of good common sense. Blessedinnyc is very astute, as is pbaribault, AZPR, and a few others I could name. Ps103 comes to mind as well as a bunch of others that I'm forgetting right now. Different people here will have different specialties, so pay attention to the folks that seem to have the best details.

When it comes to borrowing/spending, you'll find most everyone here to be very conservative. Some folks will be very anti-debt regardless. I'll be a little bit less likely to question debt, as long as you have the financial capacity to continue saving money, paying bills, and have taken care of your "rainy day" fund. I'm still very cautious when it comes to taking on debt. I prefer it only when it can justify itself - some school loans, for example. Loans that save you money in the long run or increase your earnings potential are to be preferred over loans that just pay for whatever shiny new thing the marketers put in front of our noses.


For a start, check out Crown financial ministries or Dave Ramsey's materials. Most of that can be found online. There's a few things in there that I think they might not have 100% right, but you're unlikely to go broke listening to them. In the words of a friend of mine, "It may not be the smartest thing you've ever done, but it's darned sure it won't be the stupidest."

And don't be shy. I think folks here would be very happy to help.

BT



bolt. -> RE: I Don't Know Anything (6/18/2009 11:59:24 PM)

Step 1. Make some money.

Step 2. Set some aside for a ministry you care about or benefit from.

Step 3. Pay for the basics of life. (If this is the point where it doesn't work out, re-think what you mean by 'basics' or go back to step 1.)

Step 4. Set some aside for things that are likely to pop up and cost you within the year (car maintnence, vacations, winter clothes, possible job transition, occasional medical costs). Never spend more than half at a time.

Step 5. Pay for the extras in life that you particularly enjoy and think are worth what they cost (higher end groceries, TV & cable, vehicle & costs, computer & internet, nice clothes, shoes, outings).

Step 6. Keep some back for long term savings (future education, medical crisis, job loss, retirement, mortgage down payment). Never spend more than half at a time. At this point you may want to learn about investing, but you can keep it pretty simple and still be doing well. Try "The Wealthy Barber".

If you want to borrow, make sure the payments are well within your means, not placing a strain on you -- and that you have the step-4 safety net well funded. There are 4 legitimate reasons to borrow in my books: home ownership, primary vehicle, education, and medical or mental health costs. What's a good rate and/or a good plan for you depends on your situation.



Palyxandra -> RE: I Don't Know Anything (6/19/2009 10:08:03 AM)

ok thanks everyone.. I'll definitely be looking into some of those suggestions!



blessedinnyc -> RE: I Don't Know Anything (6/19/2009 10:40:27 AM)

quote:

When it comes to borrowing/spending, you'll find most everyone here to be very conservative. Some folks will be very anti-debt regardless. I'll be a little bit less likely to question debt, as long as you have the financial capacity to continue saving money, paying bills, and have taken care of your "rainy day" fund. I'm still very cautious when it comes to taking on debt. I prefer it only when it can justify itself - some school loans, for example. Loans that save you money in the long run or increase your earnings potential are to be preferred over loans that just pay for whatever shiny new thing the marketers put in front of our noses.

Yeah! Relative to my coworkers, I'm very conservative with debt, but here, I'm the crazy one who thinks mortgages are OK if you put 20% down and that borrowing money to start a business can be OK if the business is capital intensive and has assets to borrow against (IE: real estate).

quote:

For a start, check out Crown financial ministries or Dave Ramsey's materials. Most of that can be found online. There's a few things in there that I think they might not have 100% right, but you're unlikely to go broke listening to them. In the words of a friend of mine, "It may not be the smartest thing you've ever done, but it's darned sure it won't be the stupidest."

I'd also chip in Suze Orman or Carmen Wong Ulrich on CNBC on Saturday nights. Crown's a good program, but it's ultra-conservative on financial advice and hands out some pretty strongly worded views on everything from bankruptcy to tithing. Suze Orman handed out some great advice that bailed a lot of people out before the market crash in October.

Also, if she's looking for advice on investing, I really like The Motley Fool.

quote:

The best advice I can give you is to pay attention to all of blessedinnyc's posts. There is a wealth of knowledge in every one.

Now, if you want to learn about coupons, I'm your girl. I just finished spending my $74 profit from Walgreens and earned $26 more in the process.


Thanks, but I was about to say that about GroupW and APZR. They've got more experience at finance than I do (I only have two years, and my job is half programmer; half corporate credit analyst.)



crankius -> RE: I Don't Know Anything (6/19/2009 10:54:23 AM)

Money, Possessions, and Eternity by Randy Alcorn is a good book.

And as others have mentioned, many find Crown Ministries or Dave Ramsey helpful for learning how to manage and be good stewards of their finances.


Edit to add--sounds simple, but a program like Quicken can be a great tool for keeping track of your finances. (You may already know this.[:)])



3cappuccinosmom -> RE: I Don't Know Anything (6/19/2009 11:04:03 AM)

I second the suggestion for Randy Alcorn's book! It's good to start out with the right heart attitude about money.

For practical stuff, Dave Ramsey and Crown ministries are great. You can listen to them for free on the radio, no need to spend any money to hear what they have to say. [:)]



GroupW -> RE: I Don't Know Anything (6/19/2009 11:16:24 AM)

quote:

ORIGINAL: bolt.

Step 1. Make some money.

Step 2. Set some aside for a ministry you care about or benefit from.

Step 3. Pay for the basics of life. (If this is the point where it doesn't work out, re-think what you mean by 'basics' or go back to step 1.)

Step 4. Set some aside for things that are likely to pop up and cost you within the year (car maintnence, vacations, winter clothes, possible job transition, occasional medical costs). Never spend more than half at a time.

Step 5. Pay for the extras in life that you particularly enjoy and think are worth what they cost (higher end groceries, TV & cable, vehicle & costs, computer & internet, nice clothes, shoes, outings).

Step 6. Keep some back for long term savings (future education, medical crisis, job loss, retirement, mortgage down payment). Never spend more than half at a time. At this point you may want to learn about investing, but you can keep it pretty simple and still be doing well. Try "The Wealthy Barber".

If you want to borrow, make sure the payments are well within your means, not placing a strain on you -- and that you have the step-4 safety net well funded. There are 4 legitimate reasons to borrow in my books: home ownership, primary vehicle, education, and medical or mental health costs. What's a good rate and/or a good plan for you depends on your situation.


And lay out a budget - on paper. Until you write it down and compare what you want to spend vs. what you think you're spending vs. what you actually spend, it's tough to learn to control your money. You don't necessarily have to do it forever, but knowing what you can spend and what you actually are spending is the first step.



DeeAnnBailey -> RE: I Don't Know Anything (6/19/2009 11:25:11 AM)

Tracking what you spend is one of the most eye opening things most people can do. Seeing in black and white how much you spend on snacks, eating out, quick trips to the grocery store etc. It can be hundreds per month without realizing it.



GroupW -> RE: I Don't Know Anything (6/19/2009 12:12:05 PM)

Eye opening, and in some cases embarrassing. What we spent on dining out for a while was kind of silly.

I was shocked. Amazing how it sneaks up.



Pamsy -> RE: I Don't Know Anything (6/20/2009 8:12:30 AM)

I doesnt sound like you are going to be living on your own anytime soon. In that case you would obviously need to know what you can afford to live on. --rent, utilities, etc.
Not everybody invests in all this what appears to be fancy stuff including money markets, C.D.'s, stocks, etc, but starting with a savings account that you can easily withdraw from in the event of an emergency would be starters. A good writer on living frugally Mary Hunt. They rebuilt there farm home themselves from finding materials for free. I really enjoyed reading that book. She has several, I think it may have been her first one.



Palyxandra -> RE: I Don't Know Anything (6/23/2009 10:07:31 AM)

ok that sounds great, everyone! thanks for the advice : )



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