Kip Tips
Great Advice From Around the Web
A weekly look at personal finance tips and insights others are offering.
By Cameron Huddleston, Contributing Editor, Kiplinger.com
November 9, 2011
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There is no one-size-fits-all approach to personal finance. J.D. Roth of Get Rich Slowly reminds us of this in his recent blog post Do What Works for You. He writes that it's "easy to find yourself working toward the same goals as those around you. If your family and friends all drive nice cars, it’s natural to want a nice car yourself ... But this is no way to set financial goals." The key is to make your goals personal and find a path to achieving them that works for you.
Financial planner and New York Times columnist Carl Richards discovered this the hard way. He recently wrote in the Times that he followed the crowd and bought a home -- by borrowing 100% of the purchase price -- during the housing bubble in Las Vegas. Then when he owed more than the house was worth, Richards stopped paying his mortgage to qualify for a short sale.
As Flexo at Consumerism Commentary points out, Richards' story illustrates how you can "get caught up in the excitement when everyone around you seems to be making choices which look crazy on paper but seem to be resulting in short-term success." (See The Financial Planner Who Lost His House.)
Do you find yourself making money decisions based on what others around you are doing? What do you think about the financial planner who got in over his head because he followed the crowd? Share your thoughts in the comment box below ... and read on for more financial advice and insights from around the Web:
Do You Feel Entitled to Money? [Wise Bread]
"One of the biggest obstacles for those who are trying to save money and pay off their debt is their notion that they are entitled to money. They look at celebrities or their neighbors and want what they have."
That "Someday" Thing [The Simple Dollar]
"What’s more important to you? Getting started on that big project you dream of or napping on the couch?"
How and Where to Find Business Opportunities [The Digerati Life]
Here are seven sources of inspiration for people looking to leave full-time employment and become their own boss.
How to Find the Right Business Partner -- Pros & Cons [Money Crashers]
"Consider these points before you decide whether to work with a partner or to run your business on your own."
Are You Guilty and Afraid of Taking Vacation? [Financial Samurai]
"You aren’t violating any company protocol taking your allotted days off."
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