Today we have some great, quick reads on the global economy, as well as thoughts on personal finance and being more like Abraham Lincoln when it comes to your money! We hope you enjoy.
INVESTING & THE ECONOMY
For the first time in a decade, European Central Bank officials are looking at a slowing economy without plans to increase stimulus. Policy makers are likely to confirm after their Thursday meeting that monetary support has peaked despite signs of a deteriorating outlook.
A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits unexpectedly fell to their lowest level in almost fifty years in the week ended January 19th.
I’ve noticed that professional men tend to talk about money as a river: Money comes in, money goes out, the level of the river goes up, and the level of the river goes down. There’s a sense of dynamism and movement. For women, their water and money analogy tends to be of a pond: Money is static, and there’s a set amount of it. If it moves in any one direction, it’s typically down.
Personal finance is a unique topic in the sense that you will get screwed if you don’t understand it. This doesn’t hold true for most topics. Not understanding architecture, chemistry, engineering, or botany probably won’t hurt you. You can merrily go through your day without understanding the algorithms underlying traffic lights, how your liver converts stored glycogen into glucose, how nuclear power grids function, or the intricate details of photosynthesis.
Cutting down a tree is hard work, and it is much, much harder if you’re using a dull axe – your strokes are far less efficient and you’re likely to become worn out well before the job is done. You’re much better off getting the axe nice and sharp before you head out to chop down that tree.