Hello, friends. How are things? It’s been a long time since I wrote regularly at Get Rich Slowly, but you know what? I kind of have the itch to share more stories about personal finance. I’ve been writing about odds and ends at More Than Money, and even delve into money talk now and then. But it’s not the same as discussing the subject with this audience. You guys are awesome!
So, assuming I’m able to get things squared away with the company that owns the site, I’ll probably be contributing now and then. I’m likely to focus on shorter pieces, especially those that comment on current events. And I’ll even bring back the old “spare change” column where I share a list of interesting links — like this one.
First up, Abby at The Force of Happiness recently wrote about her fun money system. She and her husband use my favorite budget (Elizabeth Warren’s Balanced Money Formula), which allows them to spend 30% of their income on wants. But this method didn’t quite work for them until they made some tweaks. I think Abby’s solution could be useful for many GRS readers.
Next, CNBC has a smart article that states quite clearly: “Advice from the gurus of Wall Street may be rather less valuable than their fans would like to believe.” Collectively, professional investors generally under-perform the market. (Stanford professor William Sharpe has famously demonstrated that mathematically, this must be the case.) Sure, some pros can beat the market for a year or two (or even twenty), but picking stocks is ultimately a loser’s game.
Having said that, there are investors who do beat the market. You may remember that Warren Buffett is one of my financial heroes. I like his investing philosophy and his straight talk. USA Today recently featured a summary of Buffett’s current advice for average investors: Keep a big emergency fund. Avoid bonds. Buy stocks. (And remember: When Buffett says “buy stocks”, he means that 99% of us should buy index funds.)
Finally, do you folks know how much I’ve been dying to post Macklemore’s “Thrift Shop“ here? Yes, I know the song contains obscenities. If that bugs you, don’t watch the video.
I love the lyrics:
They be like, “Oh, that Gucci, that’s hella tight.”
I’m like, “Yo, that’s fifty dollars for a t-shirt.”
Limited edition, let’s do some simple addition
Fifty dollars for a t-shirt — that’s just some ignorant bitch
I call that getting swindled and pimped
I call that getting tricked by a business
And, of course, this part is hilarious: “I’ma take your grandpa’s style. I’ma take your grandpa’s style. No for real. Ask your grandpa can I have his hand-me-downs?”
Frugality hits number one on the radio! Maybe there’s hope for the world after all…
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This article is about Spare Change