Hard Truth Finance Week in Review – Fading Summer Edition
A weekend at the lake is a great way to recharge the batteries. Summer is beginning to fade, which brings short-lived melancholy. The lake was actually warmer than the air, where the temperature here in Kentucky didn’t crack 80. The sunset was spectacular. Overall, another reminder that being careful with your money early in life – and having a great spouse on your financial planning team – can pay off later.
Time to reflect briefly on some personal finance happenings of the past week.
Not surprisingly, stories are emerging of investors trying to recoup huge losses using high risk strategies. Here you can read about one woman who has become an options day trader. Remember when Joe Investors were lining up to day trade at computer terminals set up in malls and store fronts? What happened to them? Oh – that’s right – they went broke. If you want the facts, check out this critique of the day trading mentality at Bargaineering.
All Financial Matters hit a nerve with his post about a young attorney crying foul over his student loans. I’ve been complaining for years about young adults borrowing their way through law school for lack of anything better to do. Let’s be clear about current and future conditions in the legal profession. We could close every law school in the country for five years and no one – clients in particular – would notice or care. Yet they keep applying, enrolling and borrowing. Then they graduate and wonder where the high-paying jobs went. The cash-hungry universities don’t have the integrity to put a stop to it. That’s one reason I won’t contribute to my law school’s annual fund drive. If they called to tell me that they were sending all of their professors on a three-year sabbatical, I might change my mind.
Patrick at Cash Money Life loudly encouraged college students to get their credit cards before its too late. I hesitate to link to it because I disagree. Patrick and I swapped some comments on his post, with his baseline position being that only responsible college students should get credit cards. There are two problems with that theory. First, who’s to know if a 19 or 20 year old will be responsible with credit cards? By the time you find out, the damage is done. Second, so many of our young adults become deeply immersed in our debt culture with student loans. With that mindset in place and thousands in debts accumulating yearly, what’s the big deal with a few thousand more on a credit card? Yes, I know all about the credit score issue. My response: Don’t let FICO and its co-conspirators dictate how you run your financial life.
But Mr. ToughMoneyLove, how will I be able to borrow money for a car when I graduate? I don’t care because it’s a mistake to borrow money for a car – when you graduate or ever. So there.
And now I think I will write a few things about retirement. Have a great week.