Monthly Archive

So yesterday I picked up my brand new CAR! I know that the conventional wisdom is to not buy a new car because of depreciation, blah, blah, blah. The thing is, looking at all the factors, this was a better choice.

Actually, I’m just bragging above, there is no real point to me buying a car, except that I finally got a car. I’m not going to try to fit the fact into a lesson on frugality or anything else for that matter!

HERE,I talked about AUTOLAND, and how much they can help the consumer who belongs to a credit union. I often tell the story of how I was able to beat the Autoland price on a car for my wife. Long story short, I was able to shave $100.00, and it only took all FREAKIN’ day! After that, I decided to use them whenever possible.

Yesterday, and really over the last week, at FINANCIAL PARTNERS , the Autoland rep Kevin went above and beyond in delivering EXACTLY the car that I wanted, and getting a GOOD price on it! I can’t imagine this process being any easier than it was, and Kevin had a lot to do with it.

In the interest of full disclosure, a lot of why this process was so quick and easy is because my wife has worked there for several years, and is well liked by the staff. So, thanks to Karen and Kevin and whoever else (whose names I don’t know) that made this transaction simple.

YESTERDAY I talked a little bit about a couple of losers taking up time enjoying the college experience. I do a lot of online reading (news and blogs), and I’ve found that these two buffoons have gained a following of like-minded minions. That got me thinking of what QUALITIES OF SUCCESS really are about.

Sure, by following them, I can almost assure that you will be more successful. These things have been in existence for centuries, and nothing lasts that long without having some merit, but that’s just the beginning. Part of the success of the Qualities of Success is in passing them down and forward to the next person. Like any other knowledge, the worst thing to happen would be for that knowledge to die with the holder for lack of passing it on. I’m grateful for the opportunity and the platform to be able to pass this on, but seeing what’s going on in Colorado, Florida, or almost anywhere else, USA, I don’t know how optimistic I am that the Qualities of Success will endure.

LEADERSHIP is very important to the Qualities of Success, because—let’s face it, young people don’t especially care to be led by older people. I understand this. I know that many of you blame us for the way much of the world is. I’m not sure you are wrong here, but that’s another issue. Once you start realizing the success that comes with practice and work, people will start to look to you for inspiration. They will look to you and try to emulate your success. So the question is: How would you respond to this need in someone else?

Also think of those people who won’t ask for your advice, but might be curious. You need to actively cultivate your leadership skills by doing the things you would want to see a leader do. The unfortunate part is, this becomes a full time job, and you always have to work to improve. The fortunate part is, once you start to build habits that are consistent with being a strong leader, it gets easier to keep and to improve.

So, when you go out throughout the week, try to be a leader worth following, and do good!

Normally, I’m impressed with how smart young people are in comparison to the opinions most older people have about them. I spend a good amount of time talking about the greatness that this I-GENERATION promises for the future, even given how much their predecessors have screwed it up! Sometimes however, I feel like I’ve been blindsided by the colossally stupid antics of a few individuals, and I can’t help but feel sorry for you. My generation has JEFF SPICOLI, which is bad, but you guys– you guys have some real winners.

Let’s start with ANDREW MEYER. This guy is typical of somebody who might have had a good thought, and might have even been able to make a good point, but sacrificed all of that for his 15 MINUTES. I don’t want to belabor the point too much, but this is a very important topic for youth today. Were the University of Florida campus police wrong? Only by degree. I tend to hold people in positions of authority to a higher standard than I hold everybody else to. I’m surprised to see six cops who can’t handle one (rather scrawny) 21 year old without resorting to the taser. I think they were a little pissed off that what should have been an easy gig for them turned out to be possibly the last day of their careers. I think having a high profile speaker like John Kerry put them a little on edge, and they way over-reacted. For this, I think that they should all lose their jobs, and a public apology to the school, Accent, and Senator Kerry should quickly follow. That being said, was Meyer right? Meyer clearly proved the worst stereotypes that older adults believe of you. As I said earlier, he might have had a valid point, and he might have even had interesting questions. In my opinion, Meyer has his head in a dark and smelly place and is doing a lot of damage to youth as a whole.

It is also important to talk about the aftermath here, because there is enough spin from everybody and the reality of the situation has been lost in the shuffle. Meyer’s story is not that of the First Amendment, which is very clear: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or of the people peaceably to assemble, and to petition the Government for a redress of grievances.” Notice that nowhere does it say that people can say anything they want. All this Amendment says is that Congress (the entire Federal Government, actually) cannot pass laws that limit your ability to express yourself. This doesn’t apply here. This was an event at a school, sponsored by a private group (Accent Speakers Bureau). This is a story about a kid who thinks more of himself than his “cause”.

Also in the aftermath, is the story of J. DAVID McSWANE and the Colorado State University’s Newspaper, Rocky Mountain Collegian. Aside from the taser reference, these stories share a lot. Essentially, these stories both point out the worst in young people, and with the worst motivation. Both McSwane and Meyer are only interested in themselves, and they try to veil that selfishness in “political discourse” or “Free Speech”. At the end of the day these two selfish brats are saying “F-You” to their own generation.

So, in the context of F4Y, why is this even a blip on our radar? I want you to be successful. I understand that you will be running this world soon enough, and I sincerely hope that you will do a better job at it than those that came before you. Part of that is the building of a reputation that is befitting you. Meyer and McSwane might get some publicity for their actions, and they may even get some money. But the rest of you need to ask yourselves whether that is enough, or would you rather be known for making a meaningful impact on your inheritance?

Part of what we do here is to give you the tools to make that meaningful impact, and there are plenty of people who are taking advantage of everything F4Y has to offer. That’s great! I know that these two idiots don’t represent the vast majority of you, and as you continually prove yourselves to be self-sufficient and worthy contributors to society, more and more people will also come to understand that, despite the claims of those in the past, YOUR generation has the ability to truly be the greatest generation.

Now that school is back in session, I know that you will be inundated with people giving you advice for what you should do financially. I understand that I am in that same group, and I’m sure that I’m not the only one. Smart people will get their information from a variety of sources, rather than just one. But with all of the people out there trying to plug a book (me too!), who are you reading, and how much influence are you giving them?

Just for fun, I thought I would look up AMAZON.COM and see what came up under a search for “Financial Education”. These are the top 10 books listed from top to bottom by bestselling. I saw some things there that made me chuckle a little, some that made my cringe a little, but every book here made me think seriously about what information we are putting out to young people. More than that, what we are saying about financing in general.

Robert Kiyosaki has definitely made his mark here with a few books showing up in the top ten. I’m not going to comment on whether he is legitimate or not, but the fact that there is a question raises concerns for me. You have to make up your mind about how this affects you.

RICH DAD, POOR DAD: WHAT THE RICH TEACH THEIR KIDS ABOUT MONEY–THAT THE POOR AND MIDDLE CLASS DO NOT!. This is the number one seller for the category, and I think a lot of people just really appreciate the message that he puts out. Personally, I’m not much of a fan, but if it’s your thing, more power to you!

THE INTELLIGENT INVESTOR: THE DEFINITIVE BOOK ON VALUE INVESTING. A BOOK OF PRACTICAL COUNSEL by Benjamin Graham, Jason Zweig, and Warren E. Buffett. Personally, I’m not so familiar with the first two names but I know of, and have a lot of respect for Warren Buffett.

THE LEADERSHIP CHALLENGE. I’ve checked out this book, but I don’t know how well it works for young people.

CASHFLOW QUADRANT: RICH DAD’S GUIDE TO FINANCIAL FREEDOM. More from Kiyosaki.

PERSONAL FINANCE FOR DUMMIES I have a lot of respect for the Dummies group, but I’ve always had problems with reading a book that was insulting my intelligence. Once you get over yourself, I’ve found these books are very helpful.

RICH DAD’S GUIDE TO INVESTING: WHAT THE RICH INVEST IN, THAT THE POOR AND MIDDLE CLASS DO NOT Once again, we’re talking about Kiyosaki here.

HOW TO MAKE MONEY IN STOCKS: A WINNING SYSTEM IN GOOD TIMES AND BAD. I’m not familiar with O’Neil, but I’m always skeptical about someone who makes a promise of a system that works in good times and bad.

RICH DAD’S ADVISORS: THE ABC’S OF REAL ESTATE INVESTING: THE SECRETS OF FINDING HIDDEN PROFITS MOST INVESTORS MISS Once again, Kiyosaki.

NATURAL CAPITALISM: CREATING THE NEXT INDUSTRIAL REVOLUTION. Paul Hawken. I’ve never heard of this book, but I like the premise of it. I will probably check it out in the future (if I ever get to the point of reading for fun). Once again, I’m not sure how it translates into dealing with youth issues.

THE INTELLIGENT INVESTOR: THE CASSIC TEXT ON VALUE INVESTING. Benjamin Graham. I have read this one, and I think it is a keeper, but there are a lot of books that aren’t selling as well that I put in the same category as this one. Check it out once you are at the point of wanting to jump into the investing game.

I know a lot of these books are bought every day, some by parents or other family members that are well-meaning (how do you think I got them??), but each of the above list needs to be taken with a grain of salt. There is no one piece of advice that will fit every set of circumstances.

So, have you read any of these books? If so, what do you think about them? Are there some better ones out there that should be showcased but aren’t for some reason? If not these people, who does motivate you when dealing with personal finance?

Although I haven’t really GONE anywhere, I am indeed back (who knows how long THAT LASTS). I’ve been busy doing a lot of things, many of which have no impact on this site, so not deserving of any more attention.

A couple of things DO require added attention, so let’s get started.

1. ASK THE ADVISOR has listed us as one of the 25 most influential INVESTMENT blogs. This is really cool to me, since I don’t really talk about investing. Anyways, thanks “Ask The Advisor” for the nod. Now I just have to work on getting off the bottom of the list.

2. LAST YEAR, I took some time off to work on some other projects. As you’ve noticed, my ability to devote the time to F4Y that it deserves has been limited, and will be limited for a while. My goal and intent is to not have to shut down again like before. I will attempt to post as frequently as I can, but in those times where I can’t, I might be adding some contributors to F4Y to post in my absence. If you are reading this, and you think you would like to contribute, let me know wil/at/finance4youth/dot/com. A few things to consider:

-If you already have a PF blog, thanks for the interest, but I like reading your stuff, and I don’t want to take away from your time with your blog to contribute to mine.

-If you wish to contribute, your contributions MUST be inline with the principals of Finance For Youth. If you think I suck, that’s fine, but I’m not going to allow you to contribute on my blog about how much I suck. That’s what comments are for.

If you want to be a contributor to KEEPING AN EYE OUT FOR YOU, and have a knack for being able to find consumer-friendly articles to post for the readers of F4Y, also send me an email.

3. I got an email the other day from a reader, and I wanted to publish the letter and my response.

Dear Wil:

I read your blog, and I agree with some of what you say, but this new thing you are doing about qualities of success is too much. We all know that there are only 10 qualities for life, and you arent’ listing them. Stick to finances and let people who know the truth talk about how to live.

1. I am the Lord your God. Thou shalt have no other gods before me.

2. Thou shalt not make wrongful use of the name of thy God.

3. Remember the Sabbath and keep it holy.

4. Honor thy Father and Mother.

5. Thou shalt not murder.

6. Thou shalt not commit adultery.

7. Thou shalt not steal.

8. Thou shalt not bear false witness.

9. Thou shalt not covet thy neighbor’s house.

10. Thou shalt not covet thy neighbor’s wife.

Once you figure that out, the rest falls into place on its own.

Lindsay in CA.

My RESPONSE

Dear Lindsay:

Thanks for reading F4Y! I really hope that reading has allowed you to learn some things they don’t teach in school. I respect your view, and I agree that the Ten Commandments are very important. I think that you are ascribing a comparison that is unfair. I believe that the Commandments are there to point out the rules for Jews during the escape from Egypt. QUALITES OF SUCCESS isn’t about telling you how you have to live, but I do give you advice on how to better enjoy the life you live. I don’t make any judgement on your beliefs, (and, I share most of them, by the way), but F4Y is more like THE BEATITUDES, another biblical series, but one that talks about how to get the blessing of God in heaven.

Of course, I never pretend to believe that F4Y can compare or compete with the Bible. If you read #1 of this post, I BARELY compete or compare with 24 other bloggers who talk about investing.

Once again, keep reading, and thank you for the letter!

-W

That’s all for now. Next week, more on Qualities of Success!

This one is going to be relatively short. I’m not going to go into specifics of how this applies to finance especially this time, because I think that having an INDOMINITABLE SPIRIT is crucial to being a SUCCESS in almost every area of life, beyond savings and working.

I’ve often wondered why the first word a child learns is often “NO”. I don’t remember being that young myself, and my wife and I have no kids yet, so it’s something that has perplexed me. When my nephew was born, I thought this would be a good opportunity to finally get this burning question answered, since we would be close enough to observe his growing up.

Kids amaze me. You can sit there and tell a kid not to do something fourteen times in a row before they stop trying (as long as you are paying attention to them), and they seem to have limitless levels of patience. Given the chance, they will wait you out, and they will go on doing whatever it was that they wanted to do, secure in the knowledge that you have been beaten. This indomitable spirit should be an inspiration for anybody who wants to be successful, because they are, for the most part, successful at what they do.

Your whole life, people will tell you that you can’t do something, that you are too young, that you lack experience, or any other excuse. Some people will take those limitations that they are given and will just do whatever they are told is acceptable. I don’t think there is anything inherently wrong with these people, but they are missing the boat on a lot of things. It’s been said that you never know what you can accomplish until you try. I agree with this point of view. I take it a step further by saying that it’s always better to ask forgiveness than permission.

So don’t let people use your youth as a weapon against you. Don’t allow others to put limits on what you can accomplish, just because they weren’t able to do the same at your age.

Many people will confuse ACCOUNTABILITY and RESPONSIBILITY, and with good reason. While they are related, and in certain instances, can be interchangeable, there are differences in application that I’ll be focusing on in this installment of QUALITIES OF SUCCESS.

Many people my age like to blame everything that goes wrong in their lives on their parents, their school, or anything else that is convenient. If they are overweight, it’s because their parents equated love with food. If they are unable to keep a marriage together, it’s because Daddy didn’t hug them enough. If they exhibit deviant behavior, it’s because someone hugged them too much. If they make a bad financial decision, such as getting into a risky mortgage loan, and now they are facing the loss of everything (for more on this, check out one of my favorite blogs HERE, I don’t agree with everything there, but I do read it every day), they blame the government, the mortgage company, society, or whoever. The point here is that THEY do something, but it’s not their fault.

I’m not trying to take anything away from those that have been dealt a truly sucky hand; sometimes that happens, and it takes an insane amount of work to get around it, and sometimes you just can’t do it. I feel sorry for those people. But let’s face facts here. Most people aren’t in that situation. It’s just easier to blame somebody else than it is to take responsibility for our own situation.

Also, don’t let me sound like young people are the only people guilty of this. Older people do it all the time. My kid is a trouble maker, it must be because he needs drugs. My kid sleeps all day, too many drugs. I don’t live in a mansion, must be because there is some conspiracy against me. I can do this all day, but why?

So the answer here? Take responsibility for yourself. You are either at the age now, or will soon be, where you are the master of your own destiny. In the real world, you are held responsible for your actions, especially when they hurt the company you are working for. I know how unfair that sounds, but is just the way it is. Prepare yourself now. No matter what has happened in the past, you are in the driver’s seat when it comes to your future, whether at work, or anywhere else in life.

When dealing with saving, you need to be in control of your spending patterns. If there is something you want to spend money on, but don’t have enough, it’s not the company’s fault for being too expensive, it’s not necessarily anybody’s fault. I’m going to give you a phrase that you really need to get in your head.

“It is what it is.”

So next time you want to feel sorry for yourself, and blame someone else because of a minor setback in your life—don’t. Instead, take a little responsibility; see if there was anything you did, or didn’t do but could have, that contributed to the situation, and make whatever changes are needed for the future. It may be hard at first, and you will have to face some things about yourself that you might not like, but once you get in the habit, people will start to see you a little differently.

I don’t talk about “causes” too much at F4Y, not because they aren’t important, but because I think there are more important things for young people to focus on. In fact, I think I really have only championed a couple of causes in these pages, HERE and HERE most notably. I’m sure there are others, but these are the ones that stray furthest from my stated goals of providing financial education to young people. They’re related, but there’s a little more of a stretch to get there.

I read a lot of other blogs, and one of my favorites is a very good site for consumers, THE CONSUMERIST, that I think does a very good service. Ben and crew really pull out the stops to help the consumer. I have no problem with them, even if I disagree with some of their points of view. Sometimes, however, when reading the comments, I chuckle a little because it seems that many of the commenters really enjoy their daily dose of righteous indignation and hippery, (not a word, but I can’t think of a better definition for the practice of rallying against the ideas of rules and conformity in any way, like the hippies) to the point of the ridiculous.

Let’s get a few things straight:

- Bloggers are mostly anonymous. Nobody knows if the “credentials” that the blogger claims are legitimate. This includes myself. I know my credentials are legitimate, and so do the people that know me outside of F4Y, but that’s about it.

- Commenters on blogs are even more anonymous. Since they are only posting their reaction to a specific story, nobody really attempts to check their legitimacy, nor should they. Some blogs actively accept anonymous comments, for whatever reason.

- It’s easy to raise the rally of social injustice, as long as you are anonymous, and not subject to any of the unforeseen circumstances that come with being open and vocal about an issue.

I’m not against the concept of causes, as far as they go. In fact, I think of a good cause for rebellion as a way to break up the monotony, and have a little fun. At work, I have often decided to champion some “great injustice” or another, and I have every bit of fun that I can with them. The downside is, I have been fired a lot for this kind of behavior.

My problem is when people start crying out for civil disobedience (there’s another term I prefer, but not one I can use in a family friendly setting, so this will work just as well) over non-issues. Time after time, I read where a company has a process in place that are annoying, but not really that bad. Comenters call for people to stand up for their rights, and make accusations about people who just want to get into, and out of, a place as quickly as possible. THIS POST is what set me off on this topic today. I read the story and thought, “So what? This guy had a wild hair, and got arrested for his trouble. Is this really that important?” Then I read the comments, and some of these people started irking me. Okay, I get it; you don’t have to submit to having the security guy look at your receipt unless there is some evidence of theft. They can’t unlawfully detain you for not submitting to their rules. Does not doing so, and in a forceful manner make you a hero? No, it makes you a [insert favorite expletive here] (remember MAD LIBS? If not, they are a lot of fun), and sometimes, you will get more trouble than its worth if you insist on sticking to your principle when it really doesn’t matter. Like my dad always told me growing up, “You can do ANYTHING you want, as long as you are willing to pay the price for it.”

Am I saying you should roll over every time? Not at all. I think it is very important to stand up for what you believe in. I think there are times where you need to stand your ground, no matter what the cost. I think you just really need to choose your battles, and fight only when the benefits outweigh the downside.