Comments on: All Things In Moderation, Or Why You Shouldn’t Take All Of The Advice At The Simple Dollar http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 23:44:30 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jonathan http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-20953 Jonathan Thu, 26 Apr 2007 14:10:42 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-20953 Lately I've been stressing a lot about my debt and my financial situation. I'd been reading lots, trying to get all my finances in order. It was all starting to get too much. Luckily for me, before I got too bogged down and disillusioned, I came across two things. One was this post, the other was one of the generated Amazon advertisements which was touting the following products: 100 things you should ask about your financial planner; Rich Dad, Poor Dad; Deal with your debt; and the Warren Zevon album "I'll sleep when I'm Dead". Between the two of them, it really put things in perspective. Lately I’ve been stressing a lot about my debt and my financial situation. I’d been reading lots, trying to get all my finances in order. It was all starting to get too much. Luckily for me, before I got too bogged down and disillusioned, I came across two things.

One was this post, the other was one of the generated Amazon advertisements which was touting the following products: 100 things you should ask about your financial planner; Rich Dad, Poor Dad; Deal with your debt; and the Warren Zevon album “I’ll sleep when I’m Dead”.

Between the two of them, it really put things in perspective.

]]> By: Lori http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-20054 Lori Mon, 23 Apr 2007 00:50:13 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-20054 I would also like to add a comment about credit cards. I personally think they are the devil! I do not care what kind of rebate, cash back, rewards program they offer, they are simply a tool to get most people to spend money on things they do not really need. A debit card works just as well as a credit card for on-line purchases, etc. When I hear people say they need a credit card for emergencies, it makes me cringe. That is what a savings account is for. Believe me, it took a long time for me to get to this point. What constitutes an emergency anyway? A blown tire, a gas tank on E, a much needed cup of coffee that can be purchased with a credit card? Living without going into debt at every turn does require vigilance, discipline, and creativity. Use what you have on hand. Pay cash and you will think twice about buying the latest designer dig or gizmo. I can't even remember the last thing I "had to have" that I bought with a credit card. I am sure it is sitting in a closet or in the basement collecting dust. The rush or high I also felt when buying something on credit was always replaced with anquish and fear when I had no earthly idea of how I was going to pay for it by the 28th of each month. Take it from one who has been on the debt merry-go-round for most of her life: peace of mind and a bit of financial security is much more important than the lastest gizmo that you don't need in the first place! I would also like to add a comment about credit cards. I personally think they are the devil! I do not care what kind of rebate, cash back, rewards program they offer, they are simply a tool to get most people to spend money on things they do not really need. A debit card works just as well as a credit card for on-line purchases, etc. When I hear people say they need a credit card for emergencies, it makes me cringe. That is what a savings account is for. Believe me, it took a long time for me to get to this point. What constitutes an emergency anyway? A blown tire, a gas tank on E, a much needed cup of coffee that can be purchased with a credit card? Living without going into debt at every turn does require vigilance, discipline, and creativity. Use what you have on hand. Pay cash and you will think twice about buying the latest designer dig or gizmo. I can’t even remember the last thing I “had to have” that I bought with a credit card. I am sure it is sitting in a closet or in the basement collecting dust. The rush or high I also felt when buying something on credit was always replaced with anquish and fear when I had no earthly idea of how I was going to pay for it by the 28th of each month. Take it from one who has been on the debt merry-go-round for most of her life: peace of mind and a bit of financial security is much more important than the lastest gizmo that you don’t need in the first place!

]]> By: lori http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-20019 lori Sun, 22 Apr 2007 20:22:06 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-20019 Using tunnel-like vision to pay off debt has not worked for me, either. At the end of the day, I still felt that I had nothing to show for my hard work and economizing. Instead of focusing on total debt elimination, I am now focusing on saving and learning the art of investing. I still have debt, but just shifting my priority to saving and investing has completely changed my outlook. I now have something to show for it at the end of the day: two on-line savings accounts earning 5.05% interest, and an account at treasurydirect. My goal for this year is to fully fund an IRA. I will have a car loan paid off this year and a personal loan paid off next year. I will have a student loan balance for what seems like an eternity. But if I waited to save and invest when all of the debt was gone, I would feel hopelessly behind in the game. My feeling is this: no more new debts. Once my current debts are gone, I will be in prime position with my savings and investments to make wise purchase decisions in the future. Focusing on past debt is a weight to carry around. Focus instead on building the future. Using tunnel-like vision to pay off debt has not worked for me, either. At the end of the day, I still felt that I had nothing to show for my hard work and economizing. Instead of focusing on total debt elimination, I am now focusing on saving and learning the art of investing. I still have debt, but just shifting my priority to saving and investing has completely changed my outlook. I now have something to show for it at the end of the day: two on-line savings accounts earning 5.05% interest, and an account at treasurydirect. My goal for this year is to fully fund an IRA. I will have a car loan paid off this year and a personal loan paid off next year. I will have a student loan balance for what seems like an eternity. But if I waited to save and invest when all of the debt was gone, I would feel hopelessly behind in the game. My feeling is this: no more new debts. Once my current debts are gone, I will be in prime position with my savings and investments to make wise purchase decisions in the future. Focusing on past debt is a weight to carry around. Focus instead on building the future.

]]> By: imelda72 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19842 imelda72 Sun, 22 Apr 2007 02:00:42 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19842 Can't she return the stuff? Can’t she return the stuff?

]]> By: Rob http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19833 Rob Sun, 22 Apr 2007 01:05:11 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19833 "Set lots of short term milestones that you can actually reach" hehehe.... when i read this I couldn't help but think of Dave Ramsey's debt snowball. “Set lots of short term milestones that you can actually reach” hehehe…. when i read this I couldn’t help but think of Dave Ramsey’s debt snowball.

]]> By: thomas http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19795 thomas Sat, 21 Apr 2007 20:00:43 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19795 not your fault , anyone who splurges "regretfully" $1200 in a day has some issues . She should spend a bit of money on addressing the issues with a good licensed therapist first. Then learn to take responsibility for her actions. She'll probably end up happier and less irrational. not your fault , anyone who splurges “regretfully” $1200 in a day has some issues . She should spend a bit of money on addressing the issues with a good licensed therapist first. Then learn to take responsibility for her actions. She’ll probably end up happier and less irrational.

]]> By: J.D. @ Get Rich Slowly http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19693 J.D. @ Get Rich Slowly Sat, 21 Apr 2007 07:19:31 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19693 My mantra is: <b>Do what works for you.</b> The things that you and other pfbloggers share are techniques that have worked for some people. They won't work for everyone. A large part of personal finance is learning who you are an how you operate, so that you know, for example, that you don't want to make your own detergent, or grow your own vegetables or whatever. The key is learning to work with your strengths and weaknesses to develop a personalized plan. My mantra is: Do what works for you. The things that you and other pfbloggers share are techniques that have worked for some people. They won’t work for everyone. A large part of personal finance is learning who you are an how you operate, so that you know, for example, that you don’t want to make your own detergent, or grow your own vegetables or whatever. The key is learning to work with your strengths and weaknesses to develop a personalized plan.

]]> By: HappyRock http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19612 HappyRock Fri, 20 Apr 2007 21:04:26 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19612 I also found it very helpful to figure out why we want to get out of debt. Figuring out your core value or goals helps generate the motivation for getting out of debt. IMO getting out of debt is not the goal, but the means to accomplishing your goals. When you look at it that way, you can view each ounce of restraint and hard work as a piece of something you really truly desire. Then material rewards don't matter as much, because getting closer to your tangible dreams gives your more joy then some object. I also found it very helpful to figure out why we want to get out of debt. Figuring out your core value or goals helps generate the motivation for getting out of debt. IMO getting out of debt is not the goal, but the means to accomplishing your goals.
When you look at it that way, you can view each ounce of restraint and hard work as a piece of something you really truly desire. Then material rewards don’t matter as much, because getting closer to your tangible dreams gives your more joy then some object.

]]> By: martha in mobile http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19607 martha in mobile Fri, 20 Apr 2007 20:40:22 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19607 I believe in little splurges to celebrate milestones. When I got back tests showing my cancer had not returned, I went right out and got a latte. When my investment funds hit a certain profound milestone, I bought a piece of furniture I had been coveting for several years. As you say, moderation is the key. I believe in little splurges to celebrate milestones. When I got back tests showing my cancer had not returned, I went right out and got a latte. When my investment funds hit a certain profound milestone, I bought a piece of furniture I had been coveting for several years. As you say, moderation is the key.

]]> By: Tim http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19602 Tim Fri, 20 Apr 2007 19:43:27 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19602 that reader has no one but herself to blame for lapsing or whatever you want to call it. the issue is changing behavior. the problem with paying everything off at once is that she probably didn't establish good financial habits/behavior, despite paying off her bills. it sounds like her focus was ONLY on paying bills rather than establishing a long-term budget and financial plan. there is a difference between the two. often when people are in debt and are trying to get out of debt, they focus on the getting out of debt portion rather than the big picture financial plan which includes saving, spending, and paying off bills. despite being non-optimal in terms of numbers, you need to save some while paying off bills. yes, you will pay more interest and it will take longer, but you will have est. good fundamentals. undoubtedly the reader did not put anything aside into retirement or emergency fund while trying to pay things off as quickly as possible. you need to have a "what now" plan once you are out of debt. this is why having short, mid, and long term goals are important. it keeps you focused. i don't believe in splurges or treating yourself. this implies that you are going to spend beyond your budget. if you "want" something, then include it in a budget. that reader has no one but herself to blame for lapsing or whatever you want to call it.

the issue is changing behavior. the problem with paying everything off at once is that she probably didn’t establish good financial habits/behavior, despite paying off her bills. it sounds like her focus was ONLY on paying bills rather than establishing a long-term budget and financial plan. there is a difference between the two. often when people are in debt and are trying to get out of debt, they focus on the getting out of debt portion rather than the big picture financial plan which includes saving, spending, and paying off bills.

despite being non-optimal in terms of numbers, you need to save some while paying off bills. yes, you will pay more interest and it will take longer, but you will have est. good fundamentals. undoubtedly the reader did not put anything aside into retirement or emergency fund while trying to pay things off as quickly as possible. you need to have a “what now” plan once you are out of debt. this is why having short, mid, and long term goals are important. it keeps you focused.

i don’t believe in splurges or treating yourself. this implies that you are going to spend beyond your budget. if you “want” something, then include it in a budget.

]]> By: Eric http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19599 Eric Fri, 20 Apr 2007 19:18:47 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19599 It took my girlfriend ( now wife ) to break me of the spending habit. Frugality is hard because it goes against how our society is structured. We are constantly bombarded with advertising and told that we need more stuff. To some extent buying is an addiction and you need to tackle that problem as such. Credit card debt is the most insidious since it's high interest but tempting to use. Paying it off and keeping it off will add hundreds of dollars to your net worth every year from interest savings alone. Start small. Get up 10 minutes earlier and make coffee in the morning rather than buying it at starbucks. Cancel a monthly entertainment service. It could be anything ( cable tv, satellite radio, unlimited txt messaging, ... ). Unplug your TV for a day ( or week ) and see how your behavior changes. Start an automated savings plan with $10-$50/week to a high yield savings account. It took my girlfriend ( now wife ) to break me of the spending habit.

Frugality is hard because it goes against how our society is structured. We are constantly bombarded with advertising and told that we need more stuff. To some extent buying is an addiction and you need to tackle that problem as such. Credit card debt is the most insidious since it’s high interest but tempting to use. Paying it off and keeping it off will add hundreds of dollars to your net worth every year from interest savings alone.

Start small.

Get up 10 minutes earlier and make coffee in the morning rather than buying it at starbucks.

Cancel a monthly entertainment service. It could be anything ( cable tv, satellite radio, unlimited txt messaging, … ).

Unplug your TV for a day ( or week ) and see how your behavior changes.

Start an automated savings plan with $10-$50/week to a high yield savings account.

]]> By: Lana http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/comment-page-1/#comment-19595 Lana Fri, 20 Apr 2007 18:53:55 +0000 http://www.thesimpledollar.com/2007/04/20/all-things-in-moderation-or-why-you-shouldnt-take-all-of-the-advice-at-the-simple-dollar/#comment-19595 I'm in a similar situation now. I've been saving diligently, paying off debt, and this month found myself with some extra cash. But because there's nothing I want particularly, and everything I want rather generally, I've been just sitting on it. In the end, it may just go toward my credit cards after all, if I decide that's what will bring me the most satisfaction. Dreaming about spending the money is almost more fun than actually spending it. I’m in a similar situation now. I’ve been saving diligently, paying off debt, and this month found myself with some extra cash. But because there’s nothing I want particularly, and everything I want rather generally, I’ve been just sitting on it. In the end, it may just go toward my credit cards after all, if I decide that’s what will bring me the most satisfaction. Dreaming about spending the money is almost more fun than actually spending it.

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