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Psychology


  • How to handle financial disappointments (2 comments)
    This article is by staff writer Lisa Aberle.

    Are you glad to see the sun set on 2015? In the final days of the year, my kids are home on break. It’s fun to spend extra time with them, but many minutes of the day are filled with our older two children fighting with each other. And squished into the half-time show of their fighting games is some whining from a teething 17-month-old. With…

  • Inheritance disputes: Avoiding the war when there’s a will (23 comments)
    This article is by staff writer William Cowie.

    The holidays are upon us. It’s the time of the year when family moves from the shadows of a busy life to the foreground. That probably makes it as good a time as any to consider one of the most difficult topics to discuss pertaining to family and finances — the subject of inheritances. Nobody wants to talk about it because it is inextricably linked with,…

  • How to navigate relationships as your finances change (8 comments)
    This article is by staff writer Lisa Aberle.

    Have you ever lost a close friend because your financial situations were too different? Maybe your friendship started when you were on similar financial ground, bonding over bowls of ramen noodles, for instance. But once out of college, your first job paid a lot more than theirs did; or perhaps, the shoe was on the other foot — you’re still flipping burgers and your friend is…

  • Ask the Readers: How do you challenge your financial status quo? (16 comments)
    This article is by staff writer Lisa Aberle.

    While the rest of our group galloped up the mountain in Haiti, I was stuck at a flat area partway up with two other people in our party who just couldn’t make it another step: a man who was pushing 80 and another guy who was overweight. I was so frustrated with my lack of stamina and embarrassed at my inability to push my early-30s self…

  • Ask the Readers: How do you motivate yourself when you feel like giving up? (32 comments)
    This article is by editor Linda Vergon.

    Honey Smith’s article about achieving your long-term financial goals got me thinking. It’s one thing to tackle big, long-term goals if you are healthy and employed. But hopefully you have to imagine how difficult it is to stay on track to reach them if you aren’t. What if the bottom has dropped out in your world? What if you lost your job – and even lost your…

  • The power of focusing on what you can control (25 comments)
    This article is by staff writer Kristin Wong.

    A few years ago, my boyfriend lost his awful job. It shouldn’t have happened. He worked hard, came in early, left late, powered through sick days and rarely took lunch. This workaholic, counterproductive behavior was highly encouraged by his Lumberg-esque boss. Like I said, it was an awful job. It wasn’t a good time for Brian. He was in debt, he lived in a 400 square…

  • Are you holding yourself back with these money lies? (35 comments)

    This article is by Suba Iyer, who currently writes for FiveCentNickel.com. In 2009, I was all excited to start looking for a house to buy. I had been working in a well-paying job for almost five years at that point and I figured I shouldn’t be throwing money down the drain renting. Well, reality came crashing down when I finally looked at my savings. It wasn’t even enough to be a good emergency fund, let alone a down payment….

  • Ask the Readers: Is financial ability intrinsic or learned? (25 comments)

    This article is a guest post by Maggie O’Neill. Thanks to my big brother — and by that I mean my oldest brother — I’ve always had an interest in savings and retirement planning, although I haven’t been able to do much more than think about it until lately. That oldest brother, Pete, is the person responsible for opening my eyes to investing and, in fact, made the first financial stake for me when I was…

  • To what do you attribute your success — hard work or good fortune? (34 comments)

    This article is by staff writer Kristin Wong. Every now and then, I get an email from a fellow writer who’s just starting out and wondering where to begin. “How did you do it?” they ask. “How did you make freelance writing your career?” It’s flattering, but what do I say? First of all, I’m still working to reach my own writing goals, so I’m not even sure I’d be the best person to ask….

  • Change is hard: Willpower versus habit (19 comments)

    This post is by staff writer Honey Smith. Recently on GRS I’ve been exploring the concept of motivation. But what if you didn’t need to be motivated at all? What if you did what needed to be done automatically, without even thinking about it? You’ve probably heard a version of the saying before: We’re creatures of habit. But what are habits, exactly? How are they formed? Why are they important? And how can we form good…

  • Weird ways our brains control our money habits (22 comments)

    This article is by staff writer Kristin Wong. I’ll admit it. I’m a sucker for money psychology studies. And it’s not just because I write about money. On a sheer curiosity level, they’re fascinating. But they also serve as a great reminder that money is more about mind than it is about math. It’s interesting to see exactly how our brains work when it comes to habits like spending and saving. And not only is it…

  • Our brains on scarcity: Breaking out of the trap (Part II) (17 comments)

    This article is by staff writer Kristin Wong. (This is a two-part series. Part I is “Our brains on scarcity: The trap of not having enough.”) For my last post, I wrote about the book “Scarcity: Why Having Too Little Means So Much.” To recap, researchers Sendhil Mullainathan and Eldar Shafir conducted a series of experiments and found that scarcity — whether it’s a lack of time, money or food — drastically changes our behavior….

  • Our brains on scarcity: The trap of not having enough (Part I) (36 comments)

    This article is by staff writer Kristin Wong. (This is a two-part series. Part II is “Our brains on scarcity: Breaking out of the trap.”) I recently discovered the book “Scarcity: Why Having Too Little Means So Much.” To be honest, I don’t even remember how I came to find out about the book. Maybe someone recommended it; maybe I read about it somewhere. Lately, I’ve been overwhelmingly busy, and, as a result, my short-term…

  • Motivation and money (34 comments)

    This post is by staff writer Honey Smith. Especially for those of us like me who are in the midst of the long, hard slog of debt pay-down, staying motivated can be tough. How do you keep your excitement up and your determination high when financial independence is barely visible on the horizon? Here are some methods for staying the course when your goals will take months or years (heck, even decades) to achieve. 1. Keep…

  • A Guide to Managing Your Fear of Money (27 comments)

    [Editor’s Note: Kristin Wong penned this article a couple years ago, but it’s as relevant today as it was then.] My first year of high school, I was looking for an easy, goof-off elective — a class that would allow me to take a break in between Geometry and English, and maybe catch up on some magazines or take a quick nap. “Debate” sounded right up my half-assed alley. On the first day of class,…

  • What type of procrastinator are you? (20 comments)

    This post is by staff writer Honey Smith. Aah, procrastination. Controlling our time can be difficult, and most of us are intimately familiar with the act of delaying the act of starting or completing a task. Piers Steel, professor of human resources and organizational dynamics at the Haskayne School of Business at the University of Calgary and author of “The Procrastination Equation: How to Stop Putting Things Off and Start Getting Stuff Done,” has made the study…

  • ‘When She Makes More’: 10 rules for breadwinning women (144 comments)

    Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006. J.D.’s recently launched the Get Rich Slowly course, a year-long guide on how to master your money. A few years ago, my little brother moved his family to Seattle. His wife had received a promotion and an opportunity to work at her company’s flagship location. The offer was too good to refuse. There was just one problem: They moved before Tony…

  • Talking with Gretchen Rubin about money and happiness (23 comments)

    Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006. J.D.’s non-financial writing can be found at More Than Money, where he recently wrote about how to be happy. As part of the Get Rich Slowly course (out this Tuesday!), I interviewed 18 of my favorite financial experts (and non-financial experts). Combined, these interviews comprise over eight hours of audio and more than 200 pages of written transcripts, all of which…

  • The 10 habits of financially successful people (39 comments)

    Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006. J.D.’s non-financial writing can be found at More Than Money, where he recently wrote about the relationship between action and fear. A couple of weeks ago, a reporter from Kiplinger interviewed me about financial habits. “Do you think there are specific habits that make certain people more successful with money than others?” she asked. I generally don’t like to make generalizations,…

  • The joy of being average (94 comments)

    This article is by staff writer Sam. Sam spent 13 years working in Equities on Wall Street and discusses financial independence strategies on Financial Samurai. Sam is also the founder of the Yakezie Network, the largest personal finance blog network on the web. When I asked the community whether we have the duty to live up to our potential, many of you balked at the notion of living up to anybody else’s standards but your own….

  • Do we have a duty to live up to our potential? (85 comments)

    This article is by staff writer Sam, the Financial Samurai. It takes a while to discover who we are. During my sophomore year in high school, Coach Stucker hounded me in gym every week to try out for the football team. “You’d make a great cornerback,” he’d say after seeing me run a 4.5, 40. At 5’10” and 155 pounds, I felt undersized, but at least I could move and bench 225 pounds. “I don’t…

  • Can we really change our financial habits if our backs aren’t against the wall? (56 comments)

    This article is by staff writer Sam, the Financial Samurai. I recently had a discussion with a friend who made an argument why it’s better to eat out in Manhattan than to save money by cooking because of the convenience and the joy of eating with friends. I’m all for breaking bread with good people, just not so much if you’re concerned about income. My friend just went through a divorce and eventually needs to find…

  • Are English-speakers less likely to save money? (30 comments)

    If you speak English, you probably have a harder time saving money than someone who speaks German. That’s because the language you speak influences your money habits, according to a Yale study published this year. In The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets, behavioral economist M. Keith Chen writes: “Languages differ in whether or not they require speakers to grammatically mark future events. For example, a…

  • 5 money excuses that held me back (58 comments)

    This article is by staff writer Kristin Wong. It’s been several months now that I’ve been on a savings lockdown. It’s been going well, except for this past weekend, when I had a relapse. I over-splurged on everything — food, shopping, beer — and I’m officially hungover. My buzz started when a client check came early, making me feel super rich and burning the hell out of my pockets. Oh, I know. It’s OK to…

  • Ask the Readers: Have you ever fallen for a scam? (44 comments)

    Every day, my dad gets his mail and reads every last thing – no matter what it is. The process can take an hour, sometimes two. There are advertisements, bills, surveys, requests from charitable organizations – and notices of winnings and awards. Tonight, he received a “notification of delivery” that declared he was the “Sole Recipient” of a 2013 Mercedes-Benz CLS automobile if he would return the “property recipient certificate” with a $20 processing and…

  • Financial literacy: What’s my motivation? (36 comments)

    This post is from staff writer April Dykman. Were you required to take a personal finance class in high school? I wasn’t. And I’m not in the minority. In fact, only 13 states require a personal finance class for graduation, and just five states require testing student knowledge in personal finance, according to the Council for Economic Education’s 2011 Survey of the States: Economics and Personal Finance Education in Our Nation’s Schools. And even if…

  • Lessons from a widow: The real value of money (67 comments)

    Last year, one of my friends lost her husband. After decades of marriage, they said their final goodbyes. Since I work in a mortuary, I often witness some of the worst days of people’s lives. And that day was no different. My friend’s husband, the father of her children, was gone. No matter what anyone said or did, nothing could change that unfortunate truth. She was sad, but she had embraced the inevitable. My friend…

  • Throwing away an old rule (74 comments)

    Fellow peasants, unite! The time has come to overthrow the old order! GRS rule #3 says, “Spend less than you earn.” But why should we continue to do that always? Because of tradition? Because of authority? Because that’s what everyone else claims they are doing? To the guillotine with the old rules, I say. It’s time for revolution! It’s time to turn the old laws upside down. It’s time to say something better. It’s time…

  • Relationship deal breakers, then and now (66 comments)

    This is a post from staff writer Robert Brokamp of The Motley Fool. Robert is a Certified Financial Planner and the adviser for The Motley Fool’s Rule Your Retirement service. I recently had breakfast with a woman I dated almost 20 years ago, soon after I graduated from college. She’s married now, with two beautiful kids and a husband who seems like one of those solid, true-blue, stay-at-home-dad kind of guys. I’m married now, too…

  • The morality of personal finance (80 comments)

    I was running last Sunday night. I had waited too long to start my run, and it was dark. I’ve taken to using my iPhone to track my runs, because I’m very motivated by the additive nature of all my runs over time. (I’m over 900 miles!) But I don’t like to use the earbuds when running in the city, especially at night, because of the need to stay alert for those pesky fast cars;…

  • Take a deep breath: Letting go of financial stress (31 comments)

    I’ve been reading through some of my old posts and thinking about what I wanted for this, my very-end-of-the-year statement on money. And what I saw was a lot (a lot) of angst and worry and stress. It was appropriate, as I’d spent most of the day in a kind of crazy wound-up worked-up state, getting ready for what should be a lovely, restful retreat with a few friends from my writer’s group. Part of…

  • Ask the Readers: Do you lend money to friends? (108 comments)

    “What’s a little money between friends?” That common question has wrecked more than a few friendships. Reader Alexa (who blogs at Single Moms Income) is in that situation now. She recently sent us a story and a question. Here’s her tale. I moved back home near the end of July where I immediately reconnected with one of my old friends — we’ll call him J — whom I hadn’t seen in several years. In just…

  • Lessons from a master (53 comments)

    I have been re-watching the documentary “Jiro Dreams of Sushi” for the past couple of months. I’ve seen it at least 10 times, probably more, while writing drafts for this article. I’ve watched it alone, with my wife, with friends, and I don’t tire of it; I’ve recommended it to everyone I know, and now I’m wholeheartedly recommending it to you. This little gem of a documentary by David Gelb takes a look at the…

  • Tips for the Introverted Negotiator (80 comments)

    In my last article, I talked about saving money on the big things, like cars and houses. Multiple readers contributed good reasons why we don’t save as much money as we should on cars and houses. But one of my favorite comments was from Tracy: See, it would never even occur to me to negotiate on a car, nor do I have any desire to. I realize this costs me extra money and it would…

  • What IS Financial Responsibility? (178 comments)

    This article is from new staff writer Honey Smith. “Be Responsible. Take responsibility for your actions.” It sounds simple, right? But what responsibility means to me has changed over the course of my life. In fact, there are so many definitions of responsibility that Wikipedia doesn’t even have a definition listed on its main responsibility page! There are over fifteen types listed there with links to their respective pages (though to be fair, one is…

  • The Politeness Tax (158 comments)

    This article is from staff writer Kristin Wong. The other day, I ordered a small pizza for lunch. The delivery guy showed up, sweating from the summer sun, and told me my total was $10. I had a twenty-dollar bill on me. As I handed it over to the exhausted, out-of-breath pizza guy, I felt bad asking for change. So, against my better judgment, I gave him the entire twenty.  A 100 percent tip. You’re…

  • Fighting Financial Pressure from Friends (88 comments)

    This post is from staff writer Tim Sullivan. Right now, I’m on my first-ever visit to Ithaca, New York. I’m attending my third wedding in the past month. These three weddings have taken me to three different states and three different time zones. My girlfriend and I just got another invite to a sorority sister’s upcoming nuptials this fall and had the same first thought: “Do we have to?” Our friends and family are important…

  • Ask the Readers: How Do You Handle Money Mistakes? (64 comments)

    Getting started with smart money management can be tough. It can be frustrating. For one, you have to discard so many old habits. Plus you have to develop new habits. And, toughest of all, you have to deal with the constant small (and large) mistakes you make as you’re getting the hang of saving and investing. In a lot of ways, learning to be smart with money can be like learning to ride a bike….

  • How to Handle People Who Undermine Your Success (100 comments)

    This post is from staff writer April Dykman. Do you have someone in your life who is a bad influence when it comes to your financial or career goals? I’ve known a people like that. Typically this happens when you’re trying to make new, positive changes in your life. For example, when I decided to not buy a new car for awhile, one friend gave me a hard time about it, making fun of my…

  • Ask the Readers: Why Don’t People Talk About Money? (291 comments)

    On Wednesday, I visited a fifth-grade class in McMinnville, Oregon to talk with the kids about money. I had a great time, and I’ll share more about the experience on Monday. Today, though, I want to start by sharing a question I received from one of the students. “How much money do you have?” Hannah asked when I called on her. “I’m not going to answer that?” I said. “Nobody answers that,” said a boy…

  • How to Change Your Spending Habits (32 comments)

    This is a guest post from Charles Duhigg, the author of The Power of Habit: Why We Do What We Do and How to Change. Learn more at www.ThePowerOfHabit.com. When you get to the cash register, what do you do first? Do you imagine the balances due on various credit cards, and choose the one with the smallest outstanding debt? Do you mentally compare APRs and make the optimal financial choice? Do you calculate whether…

  • Trading Time for Money (70 comments)

    Last week, I was complaining to my Spanish tutor (who, by the way, thinks I always complain). “Ideally, I’d be writing less,” I told her. “I want to have more time to learn Spanish and to focus on other passions. But I just got an offer to write a couple more articles per week. And I would get paid for the work!” My tutor shook her head. “Por la plata baila el mono,” she told…

  • A Philosophy of Failure (80 comments)

    Though I’ve been reading and writing about money for six years now, I still do stupid things sometimes. Most of these errors are un-interesting — it’s the compulsive spending that’s interesting, and I seem to have that under control — but sometimes it’s instructive to look at the mundane mistakes I make, like shopping while hungry. Well, last week I made another relatively un-interesting mistake, but one that’s educational at the same time. Since it’s…

  • Getting Emotional About Money (40 comments)

    This is a guest post from Danielle LaPorte author of the forthcoming book, The Fire Starter Sessions: A Soulful + Practical Guide for Creating Success on Your Own Terms. This material appears in the book in a slightly different format. The value you place on money is hugely driven by emotion. Behind every dollar you spend, there’s an emotion attached to it. Get clear on the emotional driver, and you get clear on your relationship…

  • Class Consciousness and Social Mobility (241 comments)

    Kris and I have returned from three weeks traveling in Argentina and Chile with a group from our university alumni association. My favorite parts of these trips are when we get to interact with the locals, not just because I can use my Spanish, but also because it’s a chance to see how they live their lives. I did get to do some of that on this trip, but not as much as I would…

  • Can Money Buy Freedom? (124 comments)

    On Saturday, my friend Tyler hosted a blog meetup. I first met Tyler several years ago. He was a GRS reader who dropped me a line to see if I’d meet him for dinner. I said “yes” — as I almost always do. Now, several years later, Tyler runs a successful blog of his own. It was fun to see his readers come out to support him. Note: I’ve never hosted a meetup for GRS…

  • Reader Story: Why I Lied About Money (84 comments)

    This guest post from Aloysa is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes. You can read more from Aloysa at My Broken Coin. For six years, I lied to my ex-husband about how much money I was making….

  • How to Fend Off Financial Trolls (34 comments)

    Note: It’s a rare thing, but it happens once or twice a year: Life has reared its ugly head, and there’s no fresh story for you this morning. Instead, enjoy this classic from the Get Rich Slowly archives. Money is more about mind than it is about math — that’s one of the fundamental precepts of this site. If you improve your self-esteem, if you improve your mental attitude, if you improve your knowledge, you…

  • America’s Love-Hate Relationship with Wealth (187 comments)

    I was on the road for the past two months, first in Chicago, and then in Bolivia and Peru. As always happens, one of the side effects of travel is that I’ve been living in a media vacuum. For the past few weeks, I’ve heard almost nothing of current events. That means I arrived home to find a strange phenomenon: Protestors “occupying” Wall Street. And Oakland. And Portland. And probably many other places as well….

  • What Are the Differences Between the Rich and the Poor? (366 comments)

    Disclaimer: I realize this topic stirs strong emotions, but I think it’s both interesting and important. Besides, if any group is capable of having a deep discussion about it, it’s Get Rich Slowly readers. You folks are both civil and intelligent. Long ago, when this site was young, I reviewed Secrets of the Millionaire Mind by T. Harv Eker. Eker believes that we each possess a “financial blueprint”, an internal script that dictates how we…

  • Decision Fatigue: Why Willpower Isn’t Always Enough (85 comments)

    This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and raising children at Childwild.com. A Snickers bar can save you money. Not just a little money either. Used correctly, it could potentially spare you thousands of dollars. That’s the gist of new research on a phenomenon called “decision fatigue”. Decision fatigue is what happens to people when they’ve made too many choices. As your brain gets tired, you become worse…

  • Sunk Costs and Smart Decisions (147 comments)

    As I write this, I’m on a flight back to Portland. I’ve spent the weekend with former GRS staff writer Adam Baker and his wife Courtney in Indianapolis, Indiana. Ostensibly, we were there to take part in GenCon, a huge gaming convention. We did play plenty of games, but we also had a lot of fun just hanging around and chatting. It was great to take a four-day break after months of being “on” all…

  • Playing to Win: Turning Money Management into a Game (65 comments)

    I am a gamer. All my life, I’ve been a fan of games of all types. I’ve played Dungeons and Dragons since I was in the third grade. During 2000 and 2001, Kris and I had marathon bridge sessions with another couple at least once a week. I used to host monthly game nights during which my friends and I played the latest and greatest European board games. For a while, I played in chess…

  • Playing to Your Strengths (52 comments)

    This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and raising children at Childwild.com. Shortly after finishing college, a friend of mine was fired from his first job. He kept showing up to work late — sometimes hours late. He was charming and smart and reasonably good at his work, but his employer just couldn’t rely on him to be at his desk on time, so they let him go….

  • The Psychology of Consumerism (202 comments)

    This is a guest post from David M. Carter, a graduate of the master of applied positive psychology program at the University of Pennsylvania, and the first graduate of the program to emphasize the inherent link between increased well-being and sustainable consumption. A recent story in my local newspaper dealt with a sad-case family. The son was in jail for drugs, and his mother was trying desperately to find a way to give her son…

  • Affirm Your Way To Wealth (82 comments)

    This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com. This morning, I did something unusual. After I brushed my teeth, I looked in the mirror and recited: “People love to give me money!” “I am rich and wonderful.” “I am now earning a great big income doing what satisfies me.” I admit, I felt silly. I love a lot of New…

  • 10 Money Lessons from Music Lyrics (57 comments)

    This post is from staff writer April Dykman. When you’re looking for personal finance advice, you probably check out books and websites like GRS, but what about turning on the radio? Recently, I wrote about the cost of love and mentioned several songs with lyrics about love and money. This got me thinking about how many songs have lyrics about money in general and what lessons we can learn from them. Yeah, I know, I…

  • Wants, Needs, and the Sense of Entitlement (56 comments)

    This is a guest post from Gail Vaz-Oxlade, the host of the popular Til Debt Do U$ Part on CNBC (Saturday nights at 10 and 10:30). Gail is a columnist for MoneySense, Chatelaine, and Zoomer Magazine and blogs daily at her website, where she also offers terrific tools people can use to dig themselves out of the hole. Gail’s latest book is Debt-Free Forever. I’ve been working with a lot of people lately who can’t…

  • Confessions of a Spendaholic: How to Curb Compulsive Spending (51 comments)

    My name is J.D., and I’m a spendaholic. Now admittedly, I mostly have my spending under control. I’m no longer in debt, and I force myself to make conscious decisions about what I purchase. (Conscious spending is one of the keys to overcoming emotional spending.) Having said that, however, I know that if I relax for even a moment, I’ll be right back in my old habits. I’ll find myself at the grocery store, buying…

  • How Much is Enough? On Average, About $75,000 Per Year (102 comments)

    This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com. A few weeks ago I wrote about how money really can buy happiness — if you spend it right. A big-screen TV isn’t a ticket to happiness, but a vacation might be. Giving your money away can boost your well-being, and so can investing it in time with your family. A new…

  • Book Review: Mind Over Money (20 comments)

    “Financial success is more about mastering the mental game of money than about understanding the numbers.” That’s the first tenet of the Get Rich Slowly philosophy. That math of personal finance is simple; it’s controlling your habits and emotions that’s difficult. In Mind Over Money, the father-son team of Ted and Brad Klontz provide a thorough discussion of the psychology of personal finance. They argue that our relationships with money are complex and not wholly…

  • Money CAN Buy You Happiness! (61 comments)

    This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com. In today’s article, she tackles a topic I’ve been meaning to write about, but haven’t made the time. Contrary to popular belief, money can buy you happiness — if you spend it on the right things. That’s the skinny from the New York Times Business section, which last week took a close…

  • Bigger Isn’t Always Better: Remembering to Appreciate What I Already Have (196 comments)

    Walking home from work today, I decided to take the long way. Most of the time, I choose the easy quarter-mile stroll downhill from the office to our happy half acre (or happy .62 acre, if you’d like to be precise). But to celebrate the first day of summer, I took the river-forest loop. The river-forest loop is exactly what it sounds like: a series of quiet streets that wend along the east bank of…

  • How Quickly Wants Can Turn to Needs (42 comments)

    This article is by staff writer Adam Baker. Baker recently featured a post on his own blog entitled, Are You Eating Yourself Into Debt? As some of you know, Courtney and I recently spent just under a year traveling abroad with our two-year-old daughter. A couple of months ago, we returned home to Indiana and decided that we’d take a six month break from our mobile lifestyle. Our decision meant we needed to start looking…

  • The Importance of Finishing What You Started (34 comments)

    J.D. is on vacation in Alaska. This is a guest post by Bill Goodwin, who co-edits the debating site Dissense. Bill has been following the GRS gospel since converting to the religion of financial common sense three years ago. Personal finance blogs, and none more so than Get Rich Slowly, offer a wealth of resources for people looking to master their spending and take charge of their fiscal health. Want to know how snowball your…

  • Money Myths and the Importance of Thinking for Yourself (136 comments)

    When I sat down to write Your Money: The Missing Manual, I knew I wanted to start with a chapter on happiness. (Well, to be fair, I was going to conclude the book with this chapter; my editor suggested moving it to the beginning, which was a stroke of genius.) In particular, I wanted to make the point that money doesn’t buy happiness. Because we all know that’s true, right? Well, not so much, as…

  • Warren Buffett on the Lottery of Birth (69 comments)

    This is a guest post from Robert Brokamp of The Motley Fool. Robert is a Certified Financial Planner and the advisor for The Motley Fool’s Rule Your Retirement service. He contributes one new article to Get Rich Slowly every two weeks. One of the reasons J.D. asked me to join his merry band of GRS writers was so that I could add the occasional investing lesson to the line-up. Today, I’m going to hand that…

  • The Balance Between Splurger and Miser (68 comments)

    This post is from GRS staff writer April Dykman. Before I changed my habits, I spent money without much thought. In college, if I had a two-hour break between classes, I’d drive to the mall. Once I started working full time, my coworker and I would bring our lunches to work just so that we’d have the entire hour to shop. If I was bored, I’d wander into the cosmetics superstore Sephora for entertainment. Even…

  • To Find Happiness, One Millionaire Gives His Wealth Away (43 comments)

    One of the primary themes of Get Rich Slowly (and of Your Money: The Missing Manual) is that it’s more important to be happy than it is to be rich. I learn this lesson over and over again, but sometimes it seems like I forget it just as often. At the end of last summer, before I started the book project, was one of the happiest times of my life. Everything was in balance, and…

  • The Paradox of Choice and the Dangers of Perfection (81 comments)

    As important as I believe National Save for Retirement Week is, I have to confess that after four days (five, if you count Sunday), I’m bored of it. My short attention span has dwindled. (Imagine the difficulties I’m having as I try to concentrate on writing a book for three months solid!) Instead, I want to shift gears for a moment and talk about a subject with immediate real-life implications: the dangers of perfection. Good…

  • The Guilt of Wealth (167 comments)

    Yesterday I shared a guest post from Leo of Zen Habits. His guide to minimalist money was a sort of overview of good financial skills, useful information for those in the first stage of personal finance. But some long-time GRS readers couldn’t relate to Leo’s post. Today’s post goes in the opposite direction. It’s a meditation for those in the third stage of personal finance (or beyond), and it’s probably going to seem foreign to…

  • Peer Pressure and Money: Do You Spend Differently with Friends? (85 comments)

    This is a guest post from Neal Frankle, a Certified Financial Planner and the blogger at The Wealth Pilgrim. Neal is a potential Staff Writer for Get Rich Slowly. His first post explored the benefits of starting a side business. For background on Neal’s personal story, check out his recent article about how he went from homeless to homeowner. Have you ever sat down at a restaurant, reviewed the menu, wanted to leave but stayed…

  • Do Experiences Lead to Greater Happiness Than Material Purchases? (59 comments)

    The August issue of the Journal of Consumer Research arrived in my mailbox yesterday. It contains an interesting article from Nicolao, Irwin, and Goodman entitled “Happiness for Sale: Do Experiential Purchases Make Consumers Happier than Material Purchases?” This is a topic we’ve skirted at Get Rich Slowly, but never fully explored. Many readers have offered anecdotal evidence that they get more “bang for their buck” by spending money on experiences instead of Stuff. This new…

  • Lower Your Expectations, Increase Your Happiness (87 comments)

    “Did you listen to Rick Steves this afternoon?” Kris asked me on Sunday. I shook my head. “That’s too bad,” she said. “It was about the relationship between money and happiness. I think you would have liked it — and so would your readers.” “But I just wrote about happiness!” I said. “J.D.,” she said. “You can never write too much about happiness.” And so I tracked down last weekend’s episode of Travel with Rick…

  • Finding Balance Between Time and Money (102 comments)

    Lately my personal focus has been on finding balance in my life. I’m trying to discover the proper place for money — and for time. Over the past few years, I’ve allowed money to become too important. I’ve worked too much, and that has hurt other aspects of my life. I don’t have time for anything else. As part of this process, I’ve been reading the new edition of Your Money or Your Life, the…

  • The Psychology of Passive Barriers: Why Your Friends Don’t Save Money, Eat Healthier, or Clean Their Garages (100 comments)

    This is a guest post from Ramit Sethi, the founder of iwillteachyoutoberich.com, a blog on personal finance and entrepreneurship. His new book, I Will Teach You To Be Rich, will be published on March 23rd. A surprising thing happens to people in their forties. After working hard, buying a house, and starting a family, they suddenly realize that they’d better start being responsible with their money. They begin reading financial books and trying to learn…

  • Defeating Temptation: 10 Questions to Ask Yourself When You’re Tempted to Buy (99 comments)

    You’re in the mall or at the Electronics Emporium. There’s nothing you need to buy, but you’re killing time while your spouse finishes an errand. As you wait, you browse. You admire the Thneeds. Look! There’s a new one! It’s bright and shiny and you think it will make you happy, so you pick it up, walk to the register, and purchase it. You’re the proud owner of the latest Thneed. But when you get…

  • Implementing the Debt Snowball: A Personal Journey (46 comments)

    This is the second of a five-part series about the “stages” of personal finance. Last Sunday, I shared part one: “Fumbling in the Dark”. In June of 2004, Kris and I bought a new house. On paper, we could afford the upgrade. In reality, things felt pinched. For one thing, my consumer debt had grown to over $35,000. The increased housing payments didn’t help. But the straw that broke the camel’s back was the extensive…

  • The Ongoing Battle with Lifestyle Inflation (61 comments)

    This is a guest post from Mike Young, who runs The Secure Student, a program that teaches high school students how to manage their money. In high school, I had a small allowance from my parents every week. When I spent my allowance on gas, food, whatever — that was it. I had to wait until next week before I saw another dime. I remember having to really think about what I spent my money…

  • Fumbling in the Dark (77 comments)

    I’ve had good control of my saving and spending for nearly two years now. I still make poor choices now and then, but they don’t have the consequences they would have a decade ago. A decade ago, I was in debt. Today, I am not. That’s one of the advantages of being debt-free: when you do something dumb, the repercussions are not as severe. But I remember a time when each bad choice brought me…

  • Ask the Readers: How Much Money Would it Take For You to Compromise Your Principles? (207 comments)

    An Allegory There was once a man who became a vegetarian. Because he believed that all living creatures have souls, he swore he would never again consume animal flesh. For three years, he ate only vegetable matter. People offered him money to eat meat, but he steadfastly refused. “Will you try a turkey sandwich for $2?” a woman asked one day. “No,” he said. “Will you try this hot dog for $20?” a little boy…

  • You Are Not Your Money (40 comments)

    Joe S. sent me a recent New York Times editorial from Ben Stein, who describes being approached by representatives from Bernard Madoff. Madoff ran a Wall Street hedge fund which reportedly “never lost money”. Stein thought it sounded fishy, and he didn’t take the bait. “I have never heard of an entity that could make money in all kinds of markets consistently, year in and year out,” Stein writes. “I have never heard of a…

  • When Less is More: The Importance of Perceived Value (71 comments)

    The things we buy have an absolute value — the price we pay for them — but they also possess relative perceived values. Not everything with the same price holds the same value to me. An $80 pair of work boots might be worth much more to me than an $80 sweater or an $80 meal in a restaurant. And I can often (not always) derive more value from something cheap than from a more…

  • What Does it Mean to Be Rich? (151 comments)

    I had lunch with my accountant the other day. Sabino is more than a financial advisor to me — foremost, he’s a close friend. I told him about my current circumstances, about how I’m now making more as a writer than I did when I worked at the box factory, about how I’ve been saving money, about how Kris and I are beginning to contemplate paying more on our mortgage. “How does it feel to…

  • Could Tithing Lead Some Americans to Lose Their Homes? (192 comments)

    Last week, USA Today featured an article on Christians who continue to tithe even as they face foreclosure. Tithing is the practice of donating 10% of your gross income to your church. It’s not a common practice (only 5% of American adults tithe), but it’s important to those who choose to do so. It’s a component not just of Christianity, but other religions as well. But what happens when tithing interferes with your ability to…

  • Why I Don’t Track My Net Worth (59 comments)

    Earlier today I described net worth, and asked if it were the most important number in personal finance. Many people believe that it is. For them, it acts as a motivator, a sort of “life scorecard”. For others — and I’m one of them — net worth is just another number. As I do my finances, Quicken computes my net worth, but it seems largely irrelevant to me. I don’t even know what the number…

  • The Psychology of Happiness: 13 Steps to a Better Life (105 comments)

    We think we know what will make us happy, but we don’t. Many of us believe that money will make us happy, but it won’t. Except for the very poor, money cannot buy happiness. Instead of dreaming of vast wealth, we should dream of close friends and healthy bodies and meaningful work. The psychology of happiness Several years ago, James Montier, a “global equity strategist”, took a break from investing in order to publish a…

  • Is It More Important to Be Rich or to Be Happy? (54 comments)

    Sometimes we in the United States forget how privileged we are. Because of our relative wealth, we can make claims like “it’s more important to be happy than it is to be rich”. In this guest post, Saravanan P of Engineer’s Finance argues that for the poor, money is more important than happiness. Though this post has been heavily edited, keep in mind that English is not Saravanan’s native language. Being happy is a state…

  • Richer Than Rockefeller: Putting Wealth in Perspective (64 comments)

    This is a guest post from Bob at ChristianPF.com. Bob writes about personal finance from a Christian perspective. John D. Rockefeller founded the Standard Oil company in 1870. He was the first American billionaire and one of the richest men to ever live. I am sure many people today wish they could have walked in his shoes. If, somehow they could, I think some would find it to be eye-opening. Are you richer than John…

  • Making the Move from Spender to Saver (55 comments)

    I pulled out my camera gear last night. It’s been two years since I used it regularly. Before I started Get Rich Slowly, I seriously considered trying to become a professional photographer. But for a long time now, my camera stuff has been gathering dust in the corner of my office. I can’t even remember the last time I used it. It’s fun to look at all my equipment again. It’s fun to handle it,…

  • Don’t Panic! Coping with Financial Mistakes and Setbacks (43 comments)

    When I was young and stupid, I became addicted to spending. I got my first credit card in college, and over the next fifteen years, I accumulated $35,000 in debt. I’m debt-free now, and have even begun building a nest egg, but I didn’t reach this place without making a lot of financial mistakes along the way. And I still make mistakes. Dealing with mistakes and setbacks is an important tool in your personal finance…

  • Proven Methods for Servers to Increase Their Tips (127 comments)

    In 2004 Dr. Michael Lynn, associate professor at the Cornell University School of Hotel Administration, produced a paper entitled “Mega Tips: Scientifically Tested Techniques to Increase Your Tips” [PDF]. If you work in a restaurant, reading this pamphlet could help you increase your earnings. But if you don’t work in food service, knowing these techniques may help you separate good service from subtle manipulation! Lynn writes: The techniques described [here] were mostly tested in low…

  • Money and Security: Fear of the Future (55 comments)

    This is a guest post from Plonkee Money. Plonkee lives in England, where she writes about personal finance. A friend of mine has a tendency to be swayed by conspiracy theories, his favorites being The Da Vinci Code and the fictionalization of the Apollo Moon Landings. I was talking to him the other day, and he asked if I knew that money held in savings accounts was loaned out to other people and that banks…

  • Are You a Shopaholic? Six Steps to Curb Compulsive Spending (92 comments)

    I had dinner with my friend Sue the other night. Over pasta and clams, we talked about life and money. She told me about her brother. “He’s a compulsive spender,” said Sue. “He spends money even when he doesn’t have any.” “What do you mean?” I asked. “Well,” she said, “for one thing, he spends his money before he gets it. For example, when he was still working with Big Computer Company, Inc., somebody told…

  • Three Questions About Money and Ethics (105 comments)

    Lady Kemma recently wrote with a question about money and ethics: Last week I went out with my work department. After feeding 30 people, all with individual checks, I left the harried waitress a generous tip. My colleague said, “You’re leaving too much tip.” I said, “The poor lady earned it.” I left the money on the cash tray and got up to leave. My colleague proceeded to take some of the money off my…

  • Why Smart People Make Big Money Mistakes (and How to Correct Them) (21 comments)

    Money is more about mind than it is about math — that’s one of the key tenets of this site. People make financial decisions based not on mathematical ideals, but on emotion. There’s actually a branch of economics called behavioral finance devoted exclusively to this phenomenon, exploring the interplay between economic theory and psychological reality. On a recent train ride across Ireland, I read a book on behavioral economics called Why Smart People Make Big…

  • The Power of Yes: A Simple Way to Get More Out of Life (130 comments)

    For much of my adult life I’ve been shackled by fear. I’ve been afraid to try new things, afraid to meet new people, afraid of doing anything that might lead to failure. This fear confined me to a narrow comfort zone. Recently, however, I made a single small change that has helped me to overcome my fear, and allowed me to get more out of life. Last fall somebody at Ask Metafilter posted a question…

  • Beware the Insidious Power of Marketing (46 comments)

    Advertising is powerful. Avoiding it — in print, on radio, on television — is one of the best ways to control your urge to spend. When you willingly expose yourself to commercial pitches, you risk spending more than you intend. I’ve posted two articles recently about how marketing manipulates us to buy things. Allow me to belabor this point one last time before I move on. It’s important. Corporations manipulate us in subtle ways. We…

  • Secrets of the Millionaire Mind (74 comments)

    Initially, T. Harv Eker’s Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth seems cast from the same mold as Loral Langemeier’s The Millionaire Maker (my review): full of vague promises, unsupported claims, and thinly-veiled sales pitches for products and seminars. It’s true that Eker is guilty of some of these faults. But ultimately I could not help but like the book once I stopped thinking of it as a personal finance guide…

  • What Happens When You Try to Get Rich Quickly (31 comments)

    Robert Kiyosaki, Robert Allen, and Loral Langemeier would have you believe that in order to get rich all you need to do is throw your money into real estate, sit back, and let the profits come. It’s not that simple. There’s risk involved. You have to know what you’re doing. Jon forwarded a link to what he calls “a personal finance trainwreck”. He writes: “If this guy is for real (and there appears to be…

  • Control Impulse Spending with the 30-Day Rule (48 comments)

    I made a trip to Costco to buy business supplies last week. While browsing the software, I spotted the latest version of Quicken. I picked up the box and looked at the list of new features. I felt that urge creep upon me — the urge to spend. “Maybe the Mac version is out, too,” I thought. “I should stop by Fry’s to check.” Then I thought of the $50 it would cost to upgrade….

  • How to Haggle (12 comments)

    Some people know how to haggle. They’re able to bargain with shopkeepers in order to save a few bucks on pair of shoes, a book, or a piece of furniture. I’ve never haggled before except at garage sales and in World of Warcraft. Computer games are one thing, real-life is another. Real-life haggling scares me. Recently, I’ve stumbled upon several stories about haggling. An AskMetafilter user writes: I’ve heard that it’s okay to negotiate the…