Category: General

Stockton’s Basic-Income Experiment Pays Off [The Atlantic] – “Two years ago, the city of Stockton, California, did something remarkable: It brought back welfare. Using donated funds, the industrial city on the edge of the Bay Area tech economy launched a small demonstration program, sending payments of $500 a month to 125 randomly selected individuals living in neighborhoods with average incomes lower than the city median of $46,000 a year. The recipients were allowed to spend the money however they saw fit, and they were not obligated to complete any drug tests, interviews, means or asset tests, or work requirements. They just got the money, no strings attached.”

What happened next will (not) shock you!

How To Prepare For Prosperity [His & Her Money] – “You must be ready to be completely done with the debt that you have in your life. It gets hard being in the same place every single month, being in debt and being in over your head with bills. You have to get yourself to the mental space where you are tired of it and ready to get out of the hole you have dug yourself in. […] Believe you can do it. The change will not be comfortable. Be prepared for that too. Just remember this is going to lead to the best future for you and your family.”

NFTs are a dangerous trap [Seth Godin] – “BUYERS of NFTs may be blind to the fact that there’s no limit on the supply. In the case of baseball cards, there are only so many rookies a year. In the case of art, there’s a limited number of famous paintings and a limited amount of shelf space at Sotheby’s. NFTs are going to be more like Kindle books and YouTube videos. The vast majority are going to have ten views, not a billion. It’s an unregulated, non-transparent hustle with ‘bubble’ written all over it.”

This is just a cool drone video inside a bowling alley:

An interesting thought experiment – what would change in your life if you were rich? As in Elon Musk/Jeff Bezos rich…

Being Rich – What Would Change in Life? [Route to Retire] – “It’s hard to digest everything you could do if you had an unlimited amount of funds. Being rich – like really rich – would certainly give you the power to change the world if you wanted.”

12 Things I Remind Myself When Markets Go Crazy [A Wealth of Common Sense] – “3. Your gains will be incinerated at some point. Investing in risk assets means occasionally seeing your gains evaporate before your eyes. I don’t know why and I don’t know when but at some point a large portion of my portfolio will fall in value. That’s how this works.”

Is investing a zero-sum game? [Occam Investing] – “To understand whether investing is a zero-sum game, a useful place to start is a concept known as Sharpe’s Arithmetic of Active Management. Sharpe’s arithmetic begins with the premise that the equity market is owned by two kinds of investors: a) market cap indexers, who own every equity in the market in proportion to its market capitalisation (known as “passive investors”), and, b) active investors, each of whom owns a portfolio of equities which they believe will outperform.” That’s just a teaser but the summation is that active management is for the birds. 🙂

Speaking of which… how flipping cool is this??? I also learned a new word – “murmuration.”

Adam at Minafi is a really smart guy who makes some fantastically intuitive tools on his financial independence blog. If I can be honest, I’m super envious of them because they look so elegant. 🙂

Anyway, enough fawning… last week, he shared a good framework for weekly reviews:

How To Conduct a Weekly Review to Keep Yourself on Track [Minafi] – “Whether you call is journaling, mindfulness or just scheduling, spending a few minutes to create a plan for your week is the best step towards reaching your goals.”

A Mental Trick to Make Any Task Less Intimidating [Forge] – “All you have to do is picture yourself on the other side.”

Are The Simpsons Still Middle Class? [NPR] – “Back in 1989, the very first episode of The Simpsons aired on Fox. Since then, the Simpsons have become an iconic American family: The dopey, good hearted Homer; Marge, the rock of the family; three kids; two cars; a dog and a house. Money’s always tight but they make it work. Over 30 years later, however, the Simpsons’ life doesn’t feel so normal anymore. The idea that you could have one breadwinner working a job at a power plant supporting a family of five in the suburbs seems a little … unattainable.”

Related to The Simpsons but not related to money is this fun clip of The Simpson’s opening but live action:

I’ve long operated on a simple principle famously put into words by Jeff Bezos – regret minimization.

His story about deciding to start Amazon was similar to my decision to quit my (great) job at Booz Allen Hamilton to work on my personal finance blog, Bargaineering. The thought of quitting a stable job, where I had a security clearance, to work on a “blog” seemed incredibly risky and reckless. I can’t imagine what my friends thought of my choice.

But it was about regret minimization. I would know very quickly, within a few years, if the blogging thing was for me and whether I could succeed in it. Plus, I could always go back. Turns out, at least so far, I’ve made the right decisions.

I asked hundreds of people about their biggest life decisions. Here’s what I learned [The Conversation] – “You make decisions all the time. Most are small. However, some are really big: they have ramifications for years or even decades. In your final moments, you might well think back on these decisions — and some you may regret.”

That article introduced me to the book by Bronnie Ware (which I have yet to read, I only discovered it last week) but this Guardian article goes into greater detail on the five regrets:

Top five regrets of the dying [The Guardian] – “A nurse has recorded the most common regrets of the dying, and among the top ones is ‘I wish I hadn’t worked so hard’. What would your biggest regret be if this was your last day of life?”

5 Regrets Of The Dying And Why Financial Freedom Is The Answer [Financial Freedom Countdown] – “This was the most common regret when people realize that their life is almost over and look back to see how many dreams have gone unfulfilled. If you are stuck in the hamster wheel of earning, spending, earning, spending; you will soon realize that you need to keep on working for a very long period of time.”

It’s not easy to read but something everyone should.

Yay! It’s Friday! But before you head into your weekend, here are a few final money articles for you to digest and absorb.

Why retirees go broke. [The Retirement Café] — “Retirees don’t go broke as a result of sequence of returns risk. They go broke as a result of illness, injury, unemployment, housing problems, divorce, birth or adoption, death or illness of a family member, forced retirement, identity theft, consumer debt and aggressive debt collection and the interconnected, cascading effects of all of the above.”

The mystery of trust. [Comment] — “To make an institution more trustworthy when the conditions animating the trust from yesteryear have shifted or frayed, you need to take risks. You need to be willing and able to change the structure and incentives (and often the people). You need to make genuine strides toward public accountability. This is not just technical or cosmetic; it is moral.”

Maybe money does buy happiness after all. [Visual Capitalist] — “What’s the relationship between money and happiness? Previous studies have indicated that, while money can in fact buy happiness, it plateaus at approximately $75,000/year. However, new research suggests otherwise.”

Adding a legacy letter to your estate planning documents. [Humble Dollar] — “Your estate plan specifies what you want done with your money and possessions after your death. But your life’s treasures extend beyond these material items — to your values, heritage, relationships, hopes, dreams, memories and stories. You can share some of this with family and friends through a legacy letter”

Lastly, from the Break the Twitch channel on YouTube, here’s a five-minute video about how to build good habits through minimal viable actions. A minimally viable action is the smallest and easiest-to-do action of the habit you are trying to form.

For a more in-depth look at this concept, check out the accompanying article at the Break the Twitch blog.

And that’s it for this week! Jim will be back on Monday with more of the best from the world of personal finance. Until then, stay healthy and grow wealthy.

Hello again, and welcome to Thursday. Before we dive into our regularly-scheduled money articles, I wanted to share a sign of hope. A sign of spring. A sign of a world returning to normal — I hope.

COVID gods willing, the EconoMe Conference is planning to return this November! Yay! Early bird tickets just launched this week. I’ll be there, as will some of my favorite folks from money media. If you’re interested in improving your financial life, you should check it out.

With that out of the way, let’s look at some recent money stories from around the web.

Make fewer things matter. [The Finance Buff] — “Making fewer things matter helps you zero in on things that really matter. It also helps you ward off FOMO (Fear of Missing Out) and sales pitches. FOMO and sales pitches always try to grab your attention by saying you’re making a mistake. When you don’t mind making a mistake because you made fewer things matter, the sales pitches slide right off.”

What percentage of income do people really donate to charity? [My Money Blog] — “People across all income levels gave between 1% and 2% of their incomes to charity on average, after adjusting for effect of outliers. This is not to say that this number is the ‘right’ amount to give for any specific household.” Related: How to give with more impact from Smart Money Mamas.

How we paid off a mortgage against all odds. [Mad Money Monster] — “Eight months after the announcement and start of the pandemic our accelerated financial plan was achieved in reality. We felt an immediate sense of relief. I mean the kind of relief that makes you sigh out loud. You know what I’m talking about.”

How much money is enough? [Rinkydoo Finance] — “Many people who read this article will undoubtedly be looking for a specific dollar amount that will bring everlasting happiness, rainbows, and fulfillment. That’s really sweet and philosophical. However, you need to determine your exact intentions for the money. Otherwise, you’ll never have enough.”

And that’s it for today. I’ll be back tomorrow to take us into the weekend. See you then!

Good morning, money nerds. Welcome back. Once again, Jim and I have collected some of our favorite stories about money (and related subjects) to share with you.

The ten biggest money mistakes. [Of Dollars and Data] – “Because mistakes are not only the foolish things that we do, but also the reasonable things that we don’t do…I’ve compiled a list of the 10 biggest money mistakes that I see people make, with an emphasis on the dumb things we do and the smart things we don’t do.”

The ten biggest money mistakes — analyzed. [Lazy Man and Money] — “There was a Twitter thread that went viral (for money conversations at least) about money mistakes that caught my attention. It caught my attention because everyone agreed that it was very good. I agree that it was very good too. However, I thought that each mention of a money mistake had a lot more nuance that deserved a deeper look.”

Framing a reward is as important as the reward itself. [Nir and Far] — “[Loyalty programs] typically attract customers by offering better prices or superior products…Yet focusing on what a customer can acquire, instead of the time and money they’ve already spent, could be one reason these programs are ineffective. The trick is not strengthening the link between use and loyalty with better deals. It’s reinforcing the perceived relationship between use and loyalty.”

Thriving residents lead to thriving cities. [Urban Institute] — “The economic health of cities and communities depends on the financial health and stability of their residents…Families with a savings cushion as little as $250 to $749 are less likely to be evicted, miss a housing or utility payment, or receive public benefits after a job loss, health issue, or large income drop. Higher savings levels are associated with even lower hardship and benefit receipt.”

Why you should carry renters insurance. [Consumer Reports] — “Millions of Americans have discovered the benefits of renters insurance. Because landlords aren’t liable for any personal possessions or activities in your apartment, these policies can provide an important safety net if something happens.”

And today’s video is a 13-minute clip highlighting life lessons from three hundred-year-old Brits.

I’m always fascinated by studies of longevity, even when they’re anecdotal and informal like this. I feel like there’s a lot to be learned from folks who manage to enjoy long, rich lives.

Speaking of which: I’ll be back tomorrow with more stories to help you enjoy a long, rich life. See you then…

Today is Tuesday, money bosses, and you’re at Apex Money. You won’t be surprised to learn that we’ve collected some of our favorite recent money stories to share with you. Let’s dive in!

How do women invest? [Morningstar] — “A complex set of factors contribute to the lifetime income gap between men and women–notably, the fact that women are much more likely to serve as caregivers for children or elderly parents than are men.”

The secret to happiness. [Retire by 40] — “Focusing on the positive things in life made me a happier person. I have good memories and I expect good things to happen in the future. I act happy and I am happy. Even if something bad happens, I know I can push through it.”

Fifty reflections on life and money after turning 50. [Retire by 45] — “Here are some of the most important lessons I’ve learned over the past five decades. They’re in no particular order, but I’ve divided them into different life categories to make them easier to digest.”

A simple compliment can make a big difference. [Harvard Business Review] — “There is ample evidence that giving someone else a boost, whether giving compliments or expressing gratitude, has a mood-lifting effect and contributes to well-being. This means that everyone benefits — givers and receivers alike.”

To close things out today, here’s a three-minute video about garbage collectors in Ankara, Turkey who have built a fully-functioning library out of books they’ve found in the trash.

That’s awesome! And so are you. Come join us again tomorrow for more awesome stories about money and life.

Hello, money nerds, and welcome to another week. We’ve got some good stuff lined up for you, starting with these money stories from around the web.

A list of 50 money blogs by women. [Invezz] — “International Women’s Day lands on March 8th, and we thought it was about time we put together this list of the best financial websites and investing blogs created by women. Finance is still a world dominated by men and these websites are all part of a movement to change that.”

The art of looking closely. [Craig Mod] — “What’s wild about focused attention is that the act of observation is implicitly timeless. A little dose of time travel. To look closely you must be present. And the more present you are, the more you move outside the boundaries of time.”

The pros and cons of eliminating income tax. [/r/NeutralPolitics on Reddit] — “What are the pros and cons of eliminating the individual income tax in the U.S.? What evidence exists that suggests the effects of eliminating income tax would have on a financial, political, and individual level? Has this happened anywhere before? If so, what were the results?” I found the responses to this question interesting and nuanced.

How to read more books. [A Journey We Love] — “I’ve always been an avid reader, averaging around 20 books a year from 2011 to 2019. However, 2020 was my greatest year so far. It was the first year that I’ve crossed the 50 book mark, reading 55 total books for 2020…o what did I change in 2020 and 2021 to get to read more? I did not get more time in the day compared to everyone else. In fact, I had less time in my day as the baby is now a toddler and needs more supervision and activities.”

Lastly, here’s a fascinating six-minute video about how highways make traffic worse.

I’ve been aware of this paradox for years now. It’s bizarre. You would think that adding highways and lanes would reduce traffic congestion. But it doesn’t. Adding capacity just makes things worse.

That’s all I have for you today! I’ll be back tomorrow with more fun stuff. Join me, won’t you?

Today’s installment of Apex Money is a little different. Generally speaking, Jim and I don’t like to engage in promotional activity — especially not self-promotional activity. Today, we’re making an exception.

You see, I spent the past couple of years researching, writing, and recording a project with Audible and The Great Courses. It’s a ten-part, five-hour overview of financial independence and early retirement. In many ways, it’s a culmination of my life’s work.

If this appeals to you (and you’re an Audible subscriber), check it out: How to Achieve Financial Independence and Retire Early.

And since I’m promoting my own stuff, it’s only fair to promote something of Jim’s right? I know I’m biased because he’s my friend, but the dude does great work over at Wallet Hacks. For instance, I thought his recent article on buying your first home was fantastic. It’s good not only for first-time homebuyers, but for all homebuyers. (Seriously. This week, I’ve been dealing with our crummy house — the fourth one I’ve purchased in my life — and I wish I’d heeded some of Jim’s advice before buying.)

I don’t want to spend this installment solely on self-promotion, though. Let’s finish the day by promoting the work of others!

The Daily Grower is a curation site devoted to homestead and farm stories. Apex subscriber Randy Kleinman aims to gather the best info related to small-scale food production and share one article each day. I love the site, which features articles on topics like fermentation, goat behavior, and growing your own spices. I’ve added it to my news sources!

Finally, All-Star Money is the new curation site from J. Money, founder and former owner of Rockstar Finance. When Rockstar stopped publishing, Jim and I were inspired to start Apex as a way to fill the void. Well, J. Money is back. He’s collaborating with The Motley Fool to bring us three new articles every day. Yay!

And that’s it for our first-ever promotional installment of Apex Money. It’ll probably be another two years before our next episode of self-promotion haha.