Comments on: Don’t Panic! Recovering from Financial Mistakes and Setbacks

By: Study Matrix Blog - 4 Keys to Wealth Management | Mind Map

Study Matrix Blog - 4 Keys to Wealth Management | Mind Map — Sun, 15 Jun 2008 09:51:34 +0000

[...] Don’t Panic – Recovering from Financial Mistakes and Setbacks @ I Will Teach You to be Rich [...]

By: Financial Lessons

Financial Lessons — Fri, 11 Apr 2008 16:36:22 +0000

Great advice! I think the most important point is education. The more you know and learn the better you will do financially. If you find good advice from other who have already been in your position and follow their lead then you will be much more successful in life.

By: How to Recover from Financial Mistakes | Helpmepaymyloans.com -- Resources, statistics, information and news about student loans, general finance management and more

Mon, 17 Mar 2008 14:03:02 +0000

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By: Jonathan

Jonathan — Tue, 11 Mar 2008 01:01:41 +0000

“Did you just blow a wad of cash on an Xbox 360 or some new clothes?”

Hey! I just bought a 360, lol. I like it though, and I’ve been putting off buying it for a half a year or so. I’ve earned it.

By: Maria

Maria — Sun, 09 Mar 2008 22:09:16 +0000

In general I agree with Tyler.
I do not know much about the sunk-cost fallacy, but I do know something about sunk costs.

And what you should do is the following: If a project or an investment incurred costs that you are not able to get back in any way, these costs have to be regarded as sunk costs when making future decisions about this particular project/investment. That means you have to ignore the costs incurred in the future decisions involved in further actions with regard to this investment. You will have to reevaluate your prospects of gaining (weigh costs and benefits) as if you would start anew with that project, respectively from the point you are at now.

By: Dennis

Dennis — Thu, 06 Mar 2008 14:04:12 +0000

Great post. Starting is the hardest part of being financially smart. But once you get rolling it gets easier and even fun. Keep up the good work J.D.

By: J.D. Roth

J.D. Roth — Thu, 06 Mar 2008 13:37:20 +0000

Ah, good point, Dan. The $500-$1000 is a *starter* emergency fund. It’s good for somebody who’s still in school or just beginning to recover from debt. Once you’re back on your feet, general consensus is to keep 3-6 months worth of expenses on hand.

By: Dan

Dan — Thu, 06 Mar 2008 09:49:13 +0000

I’ve always thought the suggestion was to have at least 2 months salary as a ‘cash sink’ so $500-$1000 seems a little on the low side. I always think that if the worst came to the worst and I lost my job (hopefully this wont happen!) and I found things difficult to get a job in my preferred local area, I’d want to be able to survive at least 4 months on that emergency fund. Obviously belts would be immediately tightened, but would still need to cover rent, food, bills (but not much else!), I think I could easily do that on 2 months salary stashed away.

Anyway great post, I was in a very similar position after my PhD and a couple of not terribly well paid jobs – mountains of debt, credit cards, overdrafts, loans. Debt free over a year now, savings in the bank and it feels good. Not enough cash yet to go near stocks and shares, and that’s probably a good thing

By: The G

The G — Thu, 06 Mar 2008 08:09:49 +0000

You just make my day ! Great advise. Exactly what Im experiencing right now. Still trying to pickup the bits and pieces.

By: joelmaxwell.com » Recovering From Financial Mistakes

joelmaxwell.com » Recovering From Financial Mistakes — Thu, 06 Mar 2008 03:24:11 +0000

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