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Solomon on Money

John Lim  |  Jul 17, 2019

THE MOST WIDELY READ book of all time, the Bible, has a lot to say about money. According to biblical scholars, money and wealth are mentioned more than 2,000 times. Out of the roughly 40 parables Jesus told, nearly half speak of money.
Why does the Bible make such a big deal about money? The answer belongs in a Sunday sermon, not here. Still, I believe there’s a great deal to be learned from what the Bible says about money.

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Terms of the Trade

Jim Wasserman  |  Jul 10, 2019

CONSUMER ECONOMICS and media literacy have evolved to become important fields of study, analyzing the way consumers make decisions—and how those decisions can be nudged. Here are 20 of the tricks and techniques used by marketers and others:
Aspirational buying. When consumers are encouraged to live like those they admire, even if they can’t afford it.
Bandwagon appeal. The psychological nudge to do—or consume—something because others are doing it. Also known as FOMO,

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Third Rail

Jonathan Clements  |  Jun 29, 2019

IF I’M EVER FEELING lonely, all I need to do is write about certain financial topics—and soon enough my inbox is brimming with emails, some vehemently disagreeing, others offering vigorous nods of assent.
A dozen of those topics are covered in HumbleDollar’s new chapter devoted to great debates—issues like whether money buys happiness, when to claim Social Security and whether individual bonds are superior to bond mutual funds. But those subjects aren’t the only ones that stir up readers.

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Building Wealth

Dennis Friedman  |  Jun 14, 2019

I’VE BEEN READING about how people aren’t saving enough money, and how almost half of all Americans carry a balance on their credit cards. Looking to be more financially prudent? Here are 10 pointers on how to build wealth and gain financial security over your lifetime:
1. Save—for a reason. Saving money is the key to building a substantial portfolio. One secret to being a good saver: Have something worthwhile to save for. It might be homeownership or early financial independence.

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An Old Man’s Gripes

Richard Quinn  |  Jun 5, 2019

THOMAS JEFFERSON said, “Honesty is the first chapter in the book of wisdom.”
It’s well known that we tend to believe what we want or what fits our preconceived notions. But this is getting out of control. Here’s what drives me nuts on the misinformation superhighway:
1. “Health care is unaffordable.” There’s no denying health care is expensive and insurance premiums can be a heavy financial burden. And, yes, surveys find that Americans think health care is unaffordable.

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Better to Be Rich?

Dennis Friedman  |  Mar 26, 2019

I’M LOOKING AT MY credit card statement and I have a month-end balance of $3,475. My other credit card has almost $1,200 owed on it. My property taxes, automobile insurance and home insurance are due. I have an appointment in a few days to see my lawyer about my trust. He charges $450 an hour. Rachel and I are going on two weekend getaways in the next two weeks.
But I’m not rattled about all these expenses.

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45 Steps to Success

Jonathan Clements  |  Mar 23, 2019

WHAT DOES A GOOD financial life look like? Here’s a quixotic roadmap—comprised of 45 steps:

Stuff part of your babysitting or lawn mowing money in a Roth IRA. Suggest to your parents that they should encourage this sort of behavior—by subsidizing your contributions.
Get a credit card when you head off to college, charge $5 every month and always pay off the balance in full and on time. You’ll soon have an impressive credit score.

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Got to Believe

Jonathan Clements  |  Mar 16, 2019

AS I’VE BUILT OUT HumbleDollar over the past few years, I’ve come to view the site not merely as a place where folks can learn about financial issues, but as a community that thinks about money in a unique way.
This shows up repeatedly in articles from guest contributors, with their focus on topics like spending thoughtfully, helping family, behavioral finance, indexing and achieving financial freedom. It’s a community where folks are trying to be rational about money,

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Five Mistakes

Jim Wasserman  |  Mar 14, 2019

WHEN I TAUGHT economics, I would present students with the financial misunderstandings that people often have—and which the study of economics can help them avoid. Examples? Here are five widespread misconceptions:
Mistake No. 1: The rarer something is, the more valuable it is. Economics really doesn’t care about rare things—meaning those things that are few in number. Instead, economics deals with scarce things, which are things for which there’s greater demand than current ways to fulfill that demand.

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Twelve Principles

David Hultstrom  |  Mar 12, 2019

WHEN WALL STREET builds a better mousetrap, investors are generally the mouse. Want to avoid getting caught by the Street’s costly, fad-driven selling machine? Here are a dozen principles that have served me well as I’ve helped folks manage their money:

Accept that markets are generally efficient. This means that, at any given moment, individual securities are priced correctly and incurring additional costs in hopes of finding a mispricing is wasteful—though apparent mispricings will often seem obvious in retrospect.

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Eight Questions

Jonathan Clements  |  Feb 23, 2019

MONEY MAY SEEM important—and it is. But it isn’t nearly as important as we imagine. Want a little perspective on your money? First, think about your net worth or how much you earn. Then ask yourself these eight questions. How much would you give:

To have your current life, but be 10 years younger?
To have a deceased friend or family member back in your life?
To avoid the parts of your job you dislike?

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Seven Ideas

Jonathan Clements  |  Dec 22, 2018

WHAT DO YOU CONSIDER the most important financial ideas? No doubt we’d all come up with a different list—sometimes radically different—and what we deem important likely says a lot about how we handle our money.
For my own list, I think less about practical financial concepts—things like indexing and asset location—and more about the big ideas that should guide our financial decision-making. Here are seven of those ideas, all of which heavily influence how I manage my own money:
1.

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Counting Down

Adam M. Grossman  |  Nov 25, 2018

IT’S FIVE WEEKS UNTIL the end of the year—which is five weeks during which you can do some valuable financial housekeeping. Here are seven recommendations:
1. Give tax efficiently. In the past, charitable contributions were a direct and easy way to lower your tax bill. But with the recent tax law changes, which include a big hike in the standard deduction and limits on some itemized deductions, this strategy doesn’t work as well.

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Thinking About Money

Jonathan Clements  |  Oct 20, 2018

I HAVE SPENT 33 years writing and thinking about money. I’m not sure it’s the most uplifting way to spend one’s life, but it’s kept me busy and—for the most part—out of trouble.
Two years ago, I took some of the financial ideas that have especially intrigued me over the past three decades, and I brought them together in a slim volume called How to Think About Money. The book proved surprisingly popular,

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Twelve Rules

Phil Dawson  |  Sep 19, 2018

JORDAN PETERSON, a Canadian clinical psychologist and professor at the University of Toronto, has thundered onto the cultural scene, thanks in large part to his book 12 Rules for Life: An Antidote to Chaos. I began reading with healthy skepticism, but quickly became a fan.
Not that the doctor and I agree on all points. But the book immediately confronted my intellectual laziness in a careful but unavoidable way.

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