The resources available for personal finance and investment have exploded with the rise of the Internet. What's available? What lessons can one learn from personal finance? What does personal finance mean in our lives?
Like most I had poor education about personal finance while growing up. I had an allowance, a paper route, and various part time jobs, so I had money coming in, but had no clue what role this plays in my life, nor how to manage the money effectively. As a result at one time I had over $35,000 in credit card debt and teetered on the edge of bankruptcy, but came back from that through learning to manage my personal finances and am looking towards creating financial independance.
Seven Generational Ruminations is dedicated to the rise of global wisdom in humanity. As of this writing this site is primarily the work of one person, David Herron. Others are welcome to join in and help this site by leaving comments or perhaps writing your own blog entries. Be aware that offtopic postings or comments are likely to be deleted.
The topics covered on Seven Generational Ruminations can best be seen as revolving around these questions:
You see the deal advertised ... a hot new sofa, only $1000, 90 says "same as cash". Cool, I don't have to pay anything and I get this sofa. And ever enticing is the option of buying something on a same-as-cash deal, and holding onto the money for a few months. You can earn some interest, and pay off the credit later.
Since the cut in taxes on dividends by the Bush Administration (part of his bad tax breaks for the rich strategy to get re-elected), dividend-paying stocks have been getting more attention. One of the measures, yield seems so simple but leads to confusion.
Yield is basically the return you get from an investment, as a percentage, or:
yield = (income / price) * 100
The mathematics are simple enough, but there are several ways of interpreting this, and therein lies the rub. Even experienced investors get it confused, such as this Motley Fool article How to Achieve 20% Yields.
In the personal finance section of this web site I go over a model for living that some call Living Beneath Your Means. It isn't a new model for living, and in previous generations they might have called it making do. The general LBYM idea is, no matter what your income is, you can live such that your costs are less than your income, and you then set aside (invest) the remainder. The more money you can invest from the remainder, the more freedom your future has.