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Re: How Did You Learn About Money??
Old 11-14-2006, 09:27 AM   #21
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Re: How Did You Learn About Money??

Mostly self-taught. Formal schooling also helped (spreadsheets, economics, optimization, statistics, time value of money, inflation, business law, real estate law, consumer law, etc.). This forum has helped immensely. Being brought up in a family focused on LBYM, saving and investing may have been the ultimate reason I'm so focused on FIRE today.

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Re: How Did You Learn About Money??
Old 11-14-2006, 09:41 AM   #22
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Re: How Did You Learn About Money??

In the early 80s when I got my "career" job I was offered the 401K with match for the first 6%! I started studying the options offered for investment in the 401K and did not stop there. Started auto investing in a couple mutual funds in 84 and was hooked.
Reading Your money or your life in 92 put what I was feeling in print and helped me focus. My saving and investing became much more "hardcore" after that book. I have 2 copies and loan them out often to folks that ask me about leaving work and investing.
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Re: How Did You Learn About Money??
Old 11-14-2006, 10:03 AM   #23
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Re: How Did You Learn About Money??

I learned by starting at the bottom, the very bottom, and not wanting to stay there. The circumstances make it easy for me. My problems now is to transfer the knowledge to my kids. It's such a hard job. They have no idea what poor is, let alone poverty.

OTOH, a few of my friends and aquaintances started out with me in the exact same conditions, do quite well today, but still have no idea what LBYM is. A few of those slowly realize now that they will have to work forever unless they begin to change immediately. At almost 50, it's a little late, but definitely better than never.
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Re: How Did You Learn About Money??
Old 11-14-2006, 10:07 AM   #24
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Re: How Did You Learn About Money??

I'm surprised more people here don't reference the The Millionaire Next Door book. It is a real study of LBYM.
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Re: How Did You Learn About Money??
Old 11-14-2006, 10:19 AM   #25
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Re: How Did You Learn About Money??

Quote:
Originally Posted by HelpMeRhonda
I'm surprised more people here don't reference the The Millionaire Next Door book. It is a real study of LBYM.
By the time I read it, everything in the book was an exercise in "stating the obvious". Most millionaires live in simple houses and drive simple cars. When you spend money on status symbols to keep up w/ the joneses, you have less money available to make you more money. And the expensive "stuff" costs you more every month to maintain.

In other words, I could have a million in the bank and BE rich, or spend a million on status symbols and LOOK rich (but really be broke).
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Re: How Did You Learn About Money??
Old 11-14-2006, 10:21 AM   #26
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Re: How Did You Learn About Money??

The hard way, mostly. Got myself into pretty good credit card debt in the few years after college, which I had just managed to dig myself out of in time for my wedding, and which taught me how to (just barely) stay out of debt. My wife, who has much more common sense than I do money-wise, decided to put me in charge of the family finances as a way to force me to straighten out, and so I actually learned to start saving money (in passbook savings accounts). Then the impending arrival of Mini-Bpp really put the fear of the future into me, and I decided I had better start learning about this investing stuff, so I asked my father for his advice. He said, "Sounds like you should look into mutual funds." I had no idea what they were, didn't even have a clear idea of the difference between stocks and bonds, so I started reading up, starting with Peter Lynch's tome which was available for download on the Fidelity website at the time, then stumbled onto the Motley Fool, its spin-off NFB (RIP) and raddr's further spin-off board, Vanguard Diehards, etc. Fortunately didn't get manage to go too far astray too early (mostly luck), and eventually hardened into a confirmed index/passive investing bigot, around which time I washed up here.

The thought of dealing with finances used to scare the heck out of me. Now I find it relaxing! Gives me a sense of control, I suppose.
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Re: How Did You Learn About Money??
Old 11-14-2006, 10:48 AM   #27
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Re: How Did You Learn About Money??

Quote:
Originally Posted by simple girl

Learning about finances kinda feels like learning yoga. You are always a student, always learning...you try not compare yourself to others, rather grow within yourself to get better and better as you "practice" the poses

Namaste!
Hey, maybe that approach will finally inget my wife interested in financial issues
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Re: How Did You Learn About Money??
Old 11-14-2006, 11:02 AM   #28
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Re: How Did You Learn About Money??

Quote:
Originally Posted by brewer12345
Self taught.
Same here. When I began concetrating on our family's future instead of my career, I suddenly had the time to become self-taught.

Quote:
Originally Posted by HelpMeRhonda
I'm surprised more people here don't reference the The Millionaire Next Door book. It is a real study of LBYM.
"Your Money or Your Life" made a bigger first impression, although TMND certainly built on its foundation.

I started in the mid-1980s with Business Week's annual mutual-fund ranking issue, and a few years later I spent real money on a M* "Ascent" mutual-fund database. I still keep the printouts as an example of how hard it used to be...
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Re: How Did You Learn About Money??
Old 11-14-2006, 03:03 PM   #29
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Re: How Did You Learn About Money??

Related to "When did you see the light?"

-CC
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Re: How Did You Learn About Money??
Old 11-14-2006, 03:51 PM   #30
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Re: How Did You Learn About Money??

Self taught, at an early age. I had paper routes from age 9 on and saved almost all
of it (making occasional loans to my big brother to keep him picking on my sister
instead of me) and graduated high school with $11K. My dad let me fill out his income
taxes from about the age of 12 or so (although he checked them afterwards).

In terms of investing, my biggest influence early on was Value Line. I ignored the
ratings, but was spellbound by all those years of data in one place for free (at
the library). I would spend hours copyong down rows of numbers, then trying to
find trends/correlations/etc with the data at work. My playing around with these
numbers formed the basis for the way I invest today.

Nore recently, my fascination with REITs led me from Value Line to the Motley Fool
REIT board, where I heard about Ralph Blocks book on investing in REITs in 1998.
I have found it to be invaluable in forming a REIT analysis style, as were his posts
(and several others) on that board. That is the only thing I really miss about the Fool.
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Re: How Did You Learn About Money??
Old 11-14-2006, 05:06 PM   #31
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Re: How Did You Learn About Money??

Self taught, and man some of those early lessons were tough. Always ended up doing more things right than wrong though. Very interested in reading about money, budgeting, etc. I am a hoarder, wife is spender. I handle the finances, DW is along for the ride.

Saved early, often and alot.
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Re: How Did You Learn About Money??
Old 11-14-2006, 05:13 PM   #32
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Re: How Did You Learn About Money??

Another lesson here, I know this guy and his family and they all learned the way that he did and it was never LBYM.
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Re: How Did You Learn About Money??
Old 11-14-2006, 05:19 PM   #33
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Re: How Did You Learn About Money??

Good question!. At first I am tempted to say self taught, but that's not completely true.....so here's some highlights of my financial education:

Watching my mom write checks to pay bills and getting Savings bonds in the mailbox

Part time jobs beginning in pre-teen years

Engineering Econcomics course freshman year of college

First real job out of college, the secretary ordered me to sign up for stock plan when I became eligible.......elected all fixed option!

When the stock plan morphed into 401k, I signed up and read prospectus cover to cover as well as reading many many mutual fund prospectuses.

AM Talk Radio: Bruce Williams, Bob Brinker,.......and some other guy who went to jail

Early Retirement Forum is my continuing education curriculem...thanks everyone!
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Re: How Did You Learn About Money??
Old 11-14-2006, 06:34 PM   #34
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Re: How Did You Learn About Money??

My father was the king of frugality and living simply, but he didn't know much about investing. About the most exciting investment my parents got into was CDs, back when you could get 6% or more. He had a state pension that fell into Youbet's category 1--he was able to retire early with a modest money market balance as a "safety."

My dad introduced me to the notion that having a good work ethic and living frugally and without debt could lead to retiring early. My father in law is the one who enjoyed investing and always had Money magazine laying around. He was frugal and canny with money.

Before we had kids, my husband and I started our savings with EE bonds. Later a "friend" of my hub's got us into mutual funds--but I thought there had to be a better way to invest that didn't involve paying a "friend" 1% of my gains every year! I found this site while poking around the internet looking for early retirement advice. What I've learned here has been crucial for us.
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Re: How Did You Learn About Money??
Old 11-14-2006, 06:53 PM   #35
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Re: How Did You Learn About Money??

I bought my first mutual fund (Fidelity Magellan) at age 15 with money from a paper route and lawn mowing. I later "diversified" into Fidelity Select Technology as well.

After 3 years (in time for college), I withdrew the $1000 original balance from magellan as well as $600+ in returns. For the technology fund, my $1000 turned into $1800.

Of course, as everyone here realizes, these were pretty dumb investments for college savings, but fortunately, starting early gave me plenty of time to learn.

Incidentally, I haven't owned Magellan or any technology funds for over 15 years...

Jim
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Re: How Did You Learn About Money??
Old 11-14-2006, 07:05 PM   #36
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Re: How Did You Learn About Money??

I'm not sure what it means to learn about money. I had a paper route when I was 11, so I guess that's when I first learned about trading my time for money.

I think the most surprising lesson I learned about money was when I joined a public company, and I watched them print money in the form of stock options, secondary offerings, and the like. That was amazing. The share holders didn't seem very concerned about the dilution, so the execs could simply crank out new shares like a money printing machine. I still find it a pretty cool trick.
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Re: How Did You Learn About Money??
Old 11-14-2006, 07:30 PM   #37
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Re: How Did You Learn About Money??

IMHO, The best book ever written on the subject of money is "the richest man in babylon", by George S Clason. I read it in my early twenties and it changed my life.
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Re: How Did You Learn About Money??
Old 11-14-2006, 08:11 PM   #38
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Re: How Did You Learn About Money??

I had vague ideas about saving and not going into debt, but didn't really get into planning for the future and setting goals and investing until I got on the internet and discovered first The Motley Fool and then Retire Early Home Page.

I want to personally thank intercst of REHP for helping me chart my path to early retirement.
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Re: How Did You Learn About Money??
Old 11-14-2006, 09:19 PM   #39
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Re: How Did You Learn About Money??

Learned how to live cheap by growing up with a cheap (& poor) family.
Learned the tax code by doing my own taxes by hand. Which I still do.
Jumped into stocks in the mid 80s. Most of what I know came from two books. Charles Schwab's "How To Be Your Own Stockbroker" & Peter Lynch's "One Up on Wall Street". You can see why I'm a "do it yourself" type of guy.
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Re: How Did You Learn About Money??
Old 11-15-2006, 06:04 AM   #40
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Re: How Did You Learn About Money??

Quote:
Originally Posted by wab
The share holders didn't seem very concerned about the dilution, so the execs could simply crank out new shares like a money printing machine. I still find it a pretty cool trick.
Just like the government.

JG
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