Scared of Money

This is about getting the most out of life for the least amount of money. And doing it with a bit of style.

Saturday, April 08, 2006

So Why Am I Scared of Money?

I'm an avoider according to a recent post by Sitting Pretty: Money Personalities.

Definition: Avoiders put off dealing with money management because the task overwhelms them. Since they don't like budgets or keeping records, they frequently forget to pay their bills.

Some blogs have titles such as I Will Teach You To Be Rich or Savvy Saver. I belong in the Financial Train Wreck category.

I get statements from my parent's estates saying that I have so much money in an REIT. What the f*#k is an REIT? (Real Estate Investment Trust but I had to Google it.) So I let the statements stack up without really deciding anything.

I wasn't kidding with my initial post, I am a financial mess. I would just rather not deal and pay the late fees or deal with whatever the consequences might mean. I have kept money I inherited from my parents into a low-earning interest money market account for a year because I have NO idea where to begin. This blog is my way of taking baby steps to getting my financial life in gear.

How do others fight the overwhelming feeling they get when have NO idea where to begin?


At Sun Apr 09, 11:57:00 AM PDT, Anonymous Anonymous said...

I highly recommend "Personal Finance for Dummies". The book covers investing in roughly the order most people should do it and does a good job explaining each option.

1) Organizing your financial life
Goal: Get to the point where you pay everything and save some.

2) Getting started with investing
Goal 1: Put at least the company match into your retirement account.
Goal 2: Start small, start early. Dollar cost averaging a small amount on a regular basis (quarterly, monthly) into a low-cost, no-load mutual fund is a good place to start.

3) Anything beyond this point will be based on things like: lifestyle, how much you've continued to learn about investing, comfort with investing, etc.

Good luck!


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