The following list is paraphrased from an article by Michael Lannon that I have had stuck to my cupboard door for the last 6 years. I read through it about once a week and talk my way through each point, arguing or confirming different points mentioned. A lot of the points people will disagree with, but that is a good thing, as at least it makes you think about it and decide why you do or don't agree with it.
- Nobody cares as much about my money as I do.
- There is no single best investment. The only way I can hope to be in the right investment is to diversify.
- Timing is all but impossible, at least for the likes of me. The only way I can hope to be in the right investment at the right time is to use dollar cost averaging or regular investing.
- It doesn't pay to sweat the small stuff. Time is money.
- Superannuation, next to my home, is the most important investment I will make in my lifetime. Paying attention to superannuation early will ensure that the miracle of compound interest will provide a comfortable retirement.
- Paying commissions and high management fees on investments when I do not have to is a waste of money and will seriously affect my long-term returns and thus my wealth.
- Knowledge is power. It is okay to seek assistance but I don't place blind faith in someone who receives commissions on my investments. When seeking advice I pay a professional fee for that advice.
- The old proverb 'health is better than wealth' is true.
- Nothing is forever - not real estate or other investments, not jobs, not tax breaks, not shortages.
- For me, plain-vanilla investments offer the best return. I don't have time to reasearch and monitor the very tricky and complicated ones so I'm much more likely to lose money in them.
- Whether it's life, health or property coverage, any insurance for any loss I could afford to take on my own is a waste of money.
- Disposability is a substitute for quality. However, it is seldom a morally defensible choice, given the state of the planet.
- Except for food, I don't need most of the stuff I buy, but that's okay, as long as I don't kid myself that I do. In making a purchasing decision it helps to know what I would actually be getting for my money: novelty, status or something that will materially improve my life.
- My home may be my best investment, but it is a lot of trouble. I don't have to repaint my socks every five years.
- Unless absolutely essential, borrowing to buy a depreciating asset is dumb.
- If I live within my means by a wide enough margin, budgeting is unnecessary.
- I need not feel guilty when I neglect my personal finances because of the demands of my job. I have probably earned a higher return on the energy that I have invested in my career than I would have if I had spent that energy tinkering with my investments, filling out my own tax returns and so forth.
- Despite all appearances, very few people of my acquaintance know what they are doing when it comes to investments, superannuation or taxes. This is reassuring.
BR
- Nobody cares as much about my money as I do.
- There is no single best investment. The only way I can hope to be in the right investment is to diversify.
- Timing is all but impossible, at least for the likes of me. The only way I can hope to be in the right investment at the right time is to use dollar cost averaging or regular investing.
- It doesn't pay to sweat the small stuff. Time is money.
- Superannuation, next to my home, is the most important investment I will make in my lifetime. Paying attention to superannuation early will ensure that the miracle of compound interest will provide a comfortable retirement.
- Paying commissions and high management fees on investments when I do not have to is a waste of money and will seriously affect my long-term returns and thus my wealth.
- Knowledge is power. It is okay to seek assistance but I don't place blind faith in someone who receives commissions on my investments. When seeking advice I pay a professional fee for that advice.
- The old proverb 'health is better than wealth' is true.
- Nothing is forever - not real estate or other investments, not jobs, not tax breaks, not shortages.
- For me, plain-vanilla investments offer the best return. I don't have time to reasearch and monitor the very tricky and complicated ones so I'm much more likely to lose money in them.
- Whether it's life, health or property coverage, any insurance for any loss I could afford to take on my own is a waste of money.
- Disposability is a substitute for quality. However, it is seldom a morally defensible choice, given the state of the planet.
- Except for food, I don't need most of the stuff I buy, but that's okay, as long as I don't kid myself that I do. In making a purchasing decision it helps to know what I would actually be getting for my money: novelty, status or something that will materially improve my life.
- My home may be my best investment, but it is a lot of trouble. I don't have to repaint my socks every five years.
- Unless absolutely essential, borrowing to buy a depreciating asset is dumb.
- If I live within my means by a wide enough margin, budgeting is unnecessary.
- I need not feel guilty when I neglect my personal finances because of the demands of my job. I have probably earned a higher return on the energy that I have invested in my career than I would have if I had spent that energy tinkering with my investments, filling out my own tax returns and so forth.
- Despite all appearances, very few people of my acquaintance know what they are doing when it comes to investments, superannuation or taxes. This is reassuring.
BR
