1) The good, bad and financially ugly habits of boyfriends
There are a many great ironies in life. One of them is why good women wind up with men who are bad for them and vice versa. This unwritten policy seems to apply on the personal finance level as well. Big spenders attracted to big savers, financial illiterates and CFOs, princesses and paupers. Perhaps it is merely a law of opposites attracting. This girly personal finance blog, carries the confessions of three gals commenting on the financial habits of their BFs. Financial soul mates are a rarity indeed.
2) Material girl
I have a confession of my own to make. Over the past few weeks, I have been seduced by a very unlikely suitor. A shiny red Beamer. Red's not my colour but the sixth generation BMW that's been racing around on our web site has captured my attention where pretty much every other advertisement ever has failed. Of course, there's no way I'll be purchasing a Beamer in this lifetime unless I win the lottery which is also unlikely because of another law, called probability.
Does it ever make sense to buy a new car, outside of a big windfall? I doubt it although this blog by plantingmoneyseeds.com suggests otherwise.
3) Gloomy outlook
Here's a stock market indicator sure to take the wind out of your sails.The Globe and Mail reports on Yale University professor of economics Robert Shiller's cyclically adjusted price earnings (CAPE) method. Unlike the standard P/E calculation which divides a stock's price by its earnings per share per year, Shiller's CAPE method divides the stock price by its inflation-adjusted annual earnings over the last 10 years. As a forecasting tool, Shiller's CAPE is reportedly more accurate because it smoothes out gains and losses.
Shiller's CAPE crystal ball doesn't bode well for investors trying to crack the market today.
History suggests that long-term returns are likely to be meagre for those buying in at today’s prices. Previous periods when earnings yields were between 4 per cent and 5 per cent produced average annual returns (adjusted for inflation and including reinvested dividends) of a mere 2.6 per cent over the subsequent 10 years.
If history repeats itself, today’s investors have little margin of safety. In a market like this, it’s important for investors to keep management fees and taxes to a minimum because reducing such levies are likely to mean the difference between long-term gains and losses.
4) One size does not fit all
I've said it once and I'll say it again, one style of personal finance does not fit all because everyone's circumstances and habits are different. Businessinsider.com drives home a similar message on this blog critiquing over-used personal finance tips and cliches.
5) 10 financial commandments for coupledom
The right pairing can result in a financial powerhouse if you go about things the right way. Here's 10 rules from marriedwithdebt.com on how to plan together as a couple. Same rules apply for singles I reckon.