February 8, 2009

Need to know

The economy is a mess already, but there are many - Don Coxe, Suze Orman who think it will have to get worse before things can get better. This means that everyone needs to have or acquire basic financial survival skills.

Random notes

financial literacy - general information, personal wealth management, retirement, taxes, other people

  • risk and return - risk assessment, conservative income, asset safety, bonds, income trusts
  • depression, saving, investment
  • boomer retirement - cashflow, walk-to, working
  • what would happen if the governments, G20 summits, etc. stopped throwing trillions of dollars at these problems?
  • prepare for recession - cash, income protection, multiple sources, more...
  • BOTW (best of the web) personal finance blogs - good list, test drive several

2009.04.03 - looking for other blogs with sound advice, good point of view

followup

Absolutely essential

  • accepting personal responsibility
  • money to cover at least 8 months living expenses - mortgage or rent, health insurance, transportation, food, any other essential expenses
  • work toward eliminating credit card debit, not increasing debit
  • contributions to retirement saving - free money if there is employer matching
  • money for retirement or other spending within 5 years should be in safe cash or equivalents - not in the stock market


Need to know

  • money management basics
  • time management to ensure that there is time for money management
  • where you stand with your money - exercise with sample form from Suze Orman - Retirement Planning
  • cashflow - money in, money out
  • financial planning
  • sources of information - finding, analyzing, following


Understand

  • stagflation
  • the difference between the economy and the stock market
  • stocks, bonds, other financial instruments
  • commodities, metals, energy
  • interest rate fluctuations
  • saving and investing vs spending and consuming
  • how to save and what to expect
  • likely global economic trends
  • how to survive and thrive in the next 10 years


Take action

  • protect current assets
  • plan for the future
  • manage risk

Special situations

  • not the primary money handler in the family - spouse takes care of money
  • responsible for finances of others - elderly parents, non-relatives
  • financial advisers - fee for service, commissions
Research and Analysis
  • saving - who does, why
  • advice and advisers - good ones and how to know
  • bonds - conservative and safe?
  • risk assessment
  • cashflow
  • economic indicators - leading, trailing
  • debt society, moral bankruptcy
  • boomer lifestyle - retirement, working, walk-to living, end of money
Learn more...
  • government agencies
  • financial companies
  • non-profit, public interest groups
  • education
  • consumer groups
  • books, magazines
  • online communities
  • social learning
  • non formal learning
News and information
  • The Economist
  • monthly reports - US economic indicators - inflation, consumer confidence, purchasing managers, ADP jobs private sector jobs, conference board
  • indicies - volatility, money supply
  • indicators - foreign exchange rates, gold, silver, oil, natural gas, shipping rates
Government agencies Consumer groups

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