MONEY matters

How many of you reading this blog have read Think and Grow Rich, written by Napoleon Hill? I heard about this book many times and honestly had the wrong impression of it. Perhaps it was the word rich in the title that threw me or maybe I thought it was a get rich quick book like so many others that end up only making the author rich. Either way, what a gem of a book this is.

Think and Grow Rich was first published in 1937 at the height of the depression. Think about that…writing a book about getting rich when all around there was so much misery and pain. That takes chutzpah to write a book like that during the depression.

I came across an article in the Journal of Financial Planning that really opened my eyes to how our brain works in terms of making financial decisions. The title is Money on Your Mind: The Brain’s Role in Financial Decision-Making.

Now you’re probably thinking, it sounds like a pretty wonky publication, but It's really not. If you’re at all interested in the role emotional intelligence plays in your relationship with money and investing, you have to read this case study. If the memory of the DJIA dropping over 900 points in one day is still a vivid memory, this is a must read.

If you need a good old fashioned hit of U.S. optimism, check out this article by David Brooks in the New York Times - it made my day.

Need some tips on saving money while planning your wedding? It’s that time of year again when happy couples tie the knot, and the last thing on their minds is the cost of the celebration. 

Posted on the Financial Planning Association (FPA) website, this article gives sensible information that future brides and grooms may not want to hear.  Listed are some obvious tips such as setting a wedding budget and sticking with it and monitoring spending. The not-so-obvious tips like considering a destination wedding are much more interesting.

What’s in it for me?

Its tax time once again. And unless you’ve switched over to paperless records, you have a lot of receipts and records that backup your income and tax deductions. How long do you keep these records? What can get thrown away, what’s important, how long to keep everything? All good questions. Please check out this article from the New York Times that offers some practical guidance on retaining financial records.

If greed or fear has played a role in your investing decisions, (and for most investors the answer is yes, greed and/or fear has definately come into play) then this NY Times article called How Greed and Fear Kills Returns is a must read.

Be a contrarian when managing your investments and take reporter Carl Richards advice, "It makes far more sense to ignore what the crowd is doing and base your investment decisions on what you need to reach your goals, then stick with the plan despite the fear or greed you may feel."

Like many of my fellow progressives, I’ve been a bit disappointed with President Obama’s accomplishments to date. Then fortunately, I received an email that illustrated all the many things our President has done so far. I wanted to share that with you as it sure brightened my day.

“Robert P. Watson, Ph.D.Coordinator of American Studies Lynn University”