Monday, March 30, 2015

Rewarding kids for grades and house work

Dear Dave: What's your opinion on rewarding kids with money for getting good grades in school?

— Joe


Dear Joe: Honestly, I don't have a strong opinion about it one way or the other. We didn't pay our kids for good grades, but I can't really think of a strong argument not to pay them for success in school. You could say you shouldn't pay them because it's something they're expected to do anyway, and that's somewhat valid. But you could also make the same point where chores around the house are concerned, too.

We paid our kids to do some chores, but really the point is not about the economic value. It's the fact that you want your kids to associate work with money. I still meet people my age and older who haven't made that connection. Work creates money, and that's an important thing to teach your kids. Once they've created some money by working, then you want to use those moments to teach them to save, spend and give wisely.

You can do this around the subject of grades if you want. There's probably a valid case to be made that getting an "A" takes a lot more work than getting a "C." You're certainly not obligated to pay them for work or grades, but if you don't do some of this — and teach them the proper ways to handle the money they earn — you'll miss out on a lot a fantastic teachable moments.

— Dave 

Monday, March 9, 2015

Need to be mentally strong to run your own business

An entrepreneur is the only person I know who can go from sheer terror to sheer exhilaration and back every single day. You've got to have a strong mind and heart to make things happen, and it will be a rough ride if you don't have both. Plus, it won't last long if you don't absolutely love what you're doing.

Everybody wants to be successful in their job and make lots of money, but personal happiness is just as important. If you wake up jazzed about what you're going to do every day, chances are you'll be successful and happy. But if you wake up dreading the day and your job, then I can almost guarantee you won't be successful financially or happy.



VIA http://www.postbulletin.com/business/dave-ramsey-the-safety-of-gold-is-a-myth/article_27728a6d-1887-52c0-87e3-cc16d4b961d3.html

Monday, March 2, 2015

Dave Ramsey does not like Gold for investment

Gold has this weird allure and mythology around it that says, “I’ve still got something that people will take when the economy crashes.” But the truth is there hasn’t been an instance when people used gold as a medium of exchange in a crashed or failed economy since the Roman Empire.

People still use gold because they believe in it. We also believe in green paper with presidents’ faces on it. So, gold really has no more intrinsic value than that green paper. The only reason we place value on it is because we, the society, place value on it. A failed society might not place value on it anymore.

In a completely failed economy, the first step is usually a takeover by a fascist government. After that, you get a new color of money — of paper — with a new leader’s face on it. Then, the old stuff isn’t worth anything. It’s very seldom you ever see gold come to the rescue.

I don’t believe in investing in gold for that reason. Plus, the track record on gold, as far as a rate of return, is horrible over the long haul. There was a time a few years ago when everyone went crazy on it, but other than that? Ugh!