Michael James, inspired me to write another rant/commentary on the financial industry. He wrote about Mouths to Feed in the Financial Industry and it reminded me of a very funny monologue by Chris Rock: Bigger and Blacker (Amazon Link) about how Fathers don’t ask for much in life.

What does daddy get for his hard work? The big piece of chicken at dinner! My mamma would kill us if one of us ate the big piece of chicken by accident!

Daddy's piece of chicken

That is a BIG piece of Chicken

What does this have to do with the Financial System? Everybody in the financial system thinks they are Daddy, they all want the big piece of chicken.

  • Mutual Fund managers want you to pay the front-end, back-end and high MER fees because they are doing that much work to invest for you. That is a whole chicken, not just part of it.
  • Banks think they are the Daddy, just for taking care of your money. There are banks in Europe giving negative interest on your money (the money shrinks if you leave it in the bank).
  • Any Cell Phone Company (in Canada) is your Daddy, how much do you think their service really costs, but they are making sure you get quality service.
  • Internet Service Providers are plumbing, but they want a big piece of Chicken for the way they count your packets (and charge you if you use too many)

Let Daddy have that big financial piece of chicken? No way! They get enough, without taking the big piece of chicken too!

 Image courtesy of piyato. at FreeDigitalPhotos.net

 

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Is Your Toilet Flushing Hot Water ?

That is a very odd title, but it did happen. My Brother had just moved into a new town-home complex, and there were a few idiosyncrasies that he found in his new place, but he didn’t notice this issue for a little while after moving in. He really only noticed one day when he sat down and noticed the warmth emanating from the commode, and only then realized that his toilet was connected to the hot water system for his house (not a huge issue, but it would waste a little money for a long time).

Pyromania is burning the unburnable!

No, it wasn’t that hot

Are you flushing hot water in your financial home? How many fees are you paying that you are unaware of, or worse, are ignoring? What kind of fees am I commenting about?

  • Bank fees, do you still pay those? There are so many banks that offer zero fee accounts, why are you flushing that hot water (money) down the toilet?
  • Entry fees, exit fees and high MER Mutual funds? Seriously, how many times do we (pretty much everyone writing about investing) have to write about this topic? Evidently, we have not hit the maximum count yet. They are called Index Funds, look it up.
  • What are you paying in Insurance rates? Are you shopping around? Remember that insurance is only for ” … in case stuff happens …” (to paraphrase Chris Rock).  If you are overpaying for insurance your money is flushing away.

Am I missing any other Financial Toilets that flush hot water ?

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Money Motivations

I read on-line a great motivational phrase:

“You will never have more time to achieve your goals than you have right now.”

This phrase is so true, for money, and unfortunately as you read this article, you now have less time than when you first started reading this article. Most motivational phrases like this (for me) are double-edged swords.

A better catchphrase to go with, on your financial journey, is the following:

“The best time to plant a tree was 20 years ago. The second best time, is right now.”

Which is more of a variation on my commentary about Golf (the best way to improve your golf game is go back 20 years and start golfing then)

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Today Do Something for Yourself ( Financially )

You have worked hard for your pay, and you deserve to do something for yourself with all that cash you earned, so here are some of the best things you can spoil yourself financially.

 

Do Something for You

Lovely Sentiment

  1.  Go to the Mall, find a Banking machine, and deposit that money into your savings account. If you don’t have any cash on you and all of your money is in your bank already, indulge by walking by that ATM (and get a special warm feeling of accomplishment if it is a “White ATM” which might have charged you $3.00 to withdraw your money).
  2. While you are strolling through the mall, if you see something you really want to buy in one of the stores, realize how many hours you would have to work to pay for that thing, and then bask in the warm glow of knowing how much money you would keep by not buying it, and then don’t buy it.
  3. As you pass the Restaurant that you love to eat at, remember that wonderful sensation that isn’t the ten kilos of fat. that you would have accumulated if you continued to eat their huge portions. Self-control is a wonderful feeling and you deserve the rapture you experience when you exert it. You also won’t need that gym membership, because you didn’t put on those extra 10 kilos.
  4. If you are at your computer, go to the BMW web site, and design your dream car, give it all the extras you have always wanted (include a heated coffee cup holder). Take in this glorious piece of Bavarian Auto Prowess, then make sure that your bus pass is up to date, and know that by not buying this gorgeous piece of auto porn, you will be able to make a down payment on a house.
  5. Find all of your credit card statements, and see how many you can pay off this month, and think of all the money you didn’t have to spend on high interest charges, because you are that person. You may use your credit cards, but you are also an Adult, and know that you should pay off your debts.

Doesn’t it make you feel special spoiling yourself like this? Are there any other decadent financial pampering you can do for yourself ?

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Frustratingly Correct Financial Answers

I have already written about Snappy Answers to Stupid Questions (the financial edition), but here are some more fun answers to give folks, that will cause them to comment, “Well that is obvious”, but remember that just because an answer is obvious, doesn’t make it any less correct.

Questions and Answers

You got some Q’s I got some A’s For You

Question: When is the best time to sell my stock ?

Answer: When it reaches the highest price.

Isn’t that annoyingly correct? No, it isn’t actually answering the spirit of the question being asked, but it is giving a very correct answer.

Question: Any tips on how to win the lottery ?

Answer: Yes, buy the winning ticket.

Yes, Captain Obvious is hard at work here, but I enjoy giving these kinds of answers, because folks keep asking me questions like this assuming I might have some amazing insight or karmic understanding about how lotteries work. Yes I did work in the industry briefly over 25 years ago, but no, I have no idea on how to make money on lotteries (unless you can run one, then there is a lot of money in that).

How about some investing advice, I get asked this one regularly:

Question: What are the best places to invest money in our {RRSP|RESP|etc., etc.,}?

Answer : In places that will make you the most money, and make sure that you sell before the price of them drop in value

Great answer, isn’t it?

The final one you have seen me answer so many times before, but, it is still very correct

Question: Is there such a thing as good debt?

Answer: No. If you owe money, you owe money, which is bad.

Did I miss any?

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