Comments on: David Bach and my two major pet peeves http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/ Saving, Earning, and Investing Money Sat, 21 Nov 2009 00:22:17 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Raydancer http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7442 Raydancer Tue, 10 Apr 2007 16:11:05 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7442 I'm with Hightower on this one. The advice is good...it just doesn't apply to those of us who have already followed it. And how much emphasis should really be put on taxes and inflation...ESPECIALLY if you're trying to convince someone who's not financially savvy to become so? If a person starts learning these bits of information on the idea that they're going to become a millionaire, why not give them a chance to figure out on their own that it's not going to be easy rather than crushing their unrealistic dreams immediately? I say let people have their dreams...and find a way to deflate their bubble rather than bursting it. Besides...I could live quite comfortably for many years on $250,000...especially considering by then my mortgage will be paid off and I'll have a little extra from social security. I’m with Hightower on this one. The advice is good…it just doesn’t apply to those of us who have already followed it.

And how much emphasis should really be put on taxes and inflation…ESPECIALLY if you’re trying to convince someone who’s not financially savvy to become so? If a person starts learning these bits of information on the idea that they’re going to become a millionaire, why not give them a chance to figure out on their own that it’s not going to be easy rather than crushing their unrealistic dreams immediately? I say let people have their dreams…and find a way to deflate their bubble rather than bursting it.

Besides…I could live quite comfortably for many years on $250,000…especially considering by then my mortgage will be paid off and I’ll have a little extra from social security.

]]> By: Joseph Sangl http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7372 Joseph Sangl Mon, 09 Apr 2007 02:56:22 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7372 I perform nearly one-on-one financial counseling with nearly 600 people a year, and it is STUNNING to see how many people don't even know what compound interest really is. The statistic recently reported by the social security administration is that over 50% of those people who are between the ages of 55 and 65 have less than $25,000 to their name. Over HALF!!! That is why David Bach is repeating this same principle over and over. Every day, he is encountering a majority of folks who have never even realized the power of compound interest. It is the same thing I see over and over and over and ... Yeah. You get the picture. This is one reason why I am on a crusade to help others learn how to manage their personal finances well. I perform nearly one-on-one financial counseling with nearly 600 people a year, and it is STUNNING to see how many people don’t even know what compound interest really is.

The statistic recently reported by the social security administration is that over 50% of those people who are between the ages of 55 and 65 have less than $25,000 to their name. Over HALF!!!

That is why David Bach is repeating this same principle over and over. Every day, he is encountering a majority of folks who have never even realized the power of compound interest. It is the same thing I see over and over and over and … Yeah. You get the picture.

This is one reason why I am on a crusade to help others learn how to manage their personal finances well.

]]> By: Posts I Enjoyed Last Week | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7350 Posts I Enjoyed Last Week | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Sun, 08 Apr 2007 18:48:53 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7350 [...] articles? I don’t and I believe I am not alone. Lazy Man at Lazy Man and Money challenges the conclusion David Bach made in his Five Ways to Save $2,500 in 20 Minutes article. Whenever I read these articles, I always [...] [...] articles? I don’t and I believe I am not alone. Lazy Man at Lazy Man and Money challenges the conclusion David Bach made in his Five Ways to Save $2,500 in 20 Minutes article. Whenever I read these articles, I always [...]

]]> By: Money Smart Life » Personal Finance Week in Review - Yardwork Edition http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7348 Money Smart Life » Personal Finance Week in Review - Yardwork Edition Sun, 08 Apr 2007 16:28:55 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7348 [...] Man points out how David Bach ignores inflation and taxes, bad move for Bach’s [...] [...] Man points out how David Bach ignores inflation and taxes, bad move for Bach’s [...]

]]> By: The Sunday Review #15: Money Picker Edition http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7345 The Sunday Review #15: Money Picker Edition Sun, 08 Apr 2007 12:21:30 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7345 [...] David Bach and My Two Major Pet Peeves by Lazy @ Lazy Man and Money. [...] [...] David Bach and My Two Major Pet Peeves by Lazy @ Lazy Man and Money. [...]

]]> By: Adam Bourque http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7323 Adam Bourque Sat, 07 Apr 2007 17:10:57 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7323 Couldn't have said it better myself. That's why I created The $20 challenge web site. It's at http://20challenge.blogspot.com I like to create unique ideas to increase cash flow. I too have already done the obvious money savers. David Bach's rec's dont' save me a penny cause I either did them already or have come up with even better ideas...or they don't apply. Couldn’t have said it better myself. That’s why I created The $20 challenge web site. It’s at http://20challenge.blogspot.com I like to create unique ideas to increase cash flow. I too have already done the obvious money savers. David Bach’s rec’s dont’ save me a penny cause I either did them already or have come up with even better ideas…or they don’t apply.

]]> By: Money Articles and Personal Finance Picks, “I Want To Get A Promotion” Edition » Silicon Valley Blog About Money http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7321 Money Articles and Personal Finance Picks, “I Want To Get A Promotion” Edition » Silicon Valley Blog About Money Sat, 07 Apr 2007 16:40:15 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7321 [...] Man And Money has David Bach and My Two Major Pet Peeves. This article clearly illustrates that there’s more to “savings math” than meets [...] [...] Man And Money has David Bach and My Two Major Pet Peeves. This article clearly illustrates that there’s more to “savings math” than meets [...]

]]> By: Hightower http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7302 Hightower Sat, 07 Apr 2007 03:10:20 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7302 I agree with you that he may be a "one trick pony" but the trick actually works. As I stated previously the audience that would benefit the most from his writings are those that are currently poor savers/non investor types. I agree that everyone SHOULD look at controlling their expenses, however the reality is that most people don't. I believe that these big spender, live check to check types will only drag the rest of us down with them in the future through increased social programs. Every time one of them wakes up and takes some responsibility for their financial future translates into a little less drag on the rest of us. For the beginner, I believe that Bach explains his concepts well. As far as the million dollar subject. . . .my point is even if it only has the purchasing power of around $262,000 40 years from now it's more than someone would've had if they didn't save/invest that money starting today. You have your goal set at $2.5mil. . .why? It will only be worth $655,000 adjusted for taxes/inflation 40 years from now. I think that the number $1,000,000 is stuck in most peoples mind as being unattainable. . . Bach just gives an example of how easy getting to a million could be for virtually anyone. Sidenote: Enjoy your blogs regarding Prosper. I've been thinking about jumping in but I just can't pull the trigger. I keep coming across bloggers/lenders that put a little in to try it out, haven't really lost much money but all of them are talking about taking out their money when the loans come due. I also came across a prosper blog that did a analysis of the actual returns which ended up somewhere between 4-5%. I hope it turns out differently for you and I'll keep checking back to see how your prosper investments do for you to decide if I should bite into that apple. Keep up the good work. . . . I agree with you that he may be a “one trick pony” but the trick actually works. As I stated previously the audience that would benefit the most from his writings are those that are currently poor savers/non investor types. I agree that everyone SHOULD look at controlling their expenses, however the reality is that most people don’t. I believe that these big spender, live check to check types will only drag the rest of us down with them in the future through increased social programs. Every time one of them wakes up and takes some responsibility for their financial future translates into a little less drag on the rest of us. For the beginner, I believe that Bach explains his concepts well.

As far as the million dollar subject. . . .my point is even if it only has the purchasing power of around $262,000 40 years from now it’s more than someone would’ve had if they didn’t save/invest that money starting today. You have your goal set at $2.5mil. . .why? It will only be worth $655,000 adjusted for taxes/inflation 40 years from now. I think that the number $1,000,000 is stuck in most peoples mind as being unattainable. . . Bach just gives an example of how easy getting to a million could be for virtually anyone.

Sidenote: Enjoy your blogs regarding Prosper. I’ve been thinking about jumping in but I just can’t pull the trigger. I keep coming across bloggers/lenders that put a little in to try it out, haven’t really lost much money but all of them are talking about taking out their money when the loans come due. I also came across a prosper blog that did a analysis of the actual returns which ended up somewhere between 4-5%. I hope it turns out differently for you and I’ll keep checking back to see how your prosper investments do for you to decide if I should bite into that apple.

Keep up the good work. . . .

]]> By: Lazy Man http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7300 Lazy Man Sat, 07 Apr 2007 02:22:48 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7300 Yes, financial blogs might not be his intended audience, but he's still pretty much a trick pony of "look at your expenses, reduce them, and invest the savings..." The problem with that trick is that if the person has already looked at their expenses (as everyone should), his tips aren't very helpful. It's great that a million dollars is a million dollars, but why not count what it will purchase? That's the important part of having a million dollars. You might as well just convert $8500 of your money to Yen and have a million Yen to play around with ;-). Yes, financial blogs might not be his intended audience, but he’s still pretty much a trick pony of “look at your expenses, reduce them, and invest the savings…” The problem with that trick is that if the person has already looked at their expenses (as everyone should), his tips aren’t very helpful.

It’s great that a million dollars is a million dollars, but why not count what it will purchase? That’s the important part of having a million dollars. You might as well just convert $8500 of your money to Yen and have a million Yen to play around with ;-).

]]> By: Hightower http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7298 Hightower Sat, 07 Apr 2007 01:51:53 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7298 I disagree. I think David Bach writes his books/articles for the people that may not be as financially savy as those that troll around on finance blogs. I think he is doing a good service to those that will listen. I read "the automatic millionaire" well after I had already "seen the light" regarding personal finance. While not learning many new ideas/concepts I realized what the impact on my financial life could have been if I had read that book 15 years earlier. It's often the book that I recommend people read if they want to change their financial ways. I agree that the impact of inflation may not be pointed out but a million dollars is still a million dollars no matter the year or how much it will actually purchase. I disagree. I think David Bach writes his books/articles for the people that may not be as financially savy as those that troll around on finance blogs. I think he is doing a good service to those that will listen. I read “the automatic millionaire” well after I had already “seen the light” regarding personal finance. While not learning many new ideas/concepts I realized what the impact on my financial life could have been if I had read that book 15 years earlier. It’s often the book that I recommend people read if they want to change their financial ways. I agree that the impact of inflation may not be pointed out but a million dollars is still a million dollars no matter the year or how much it will actually purchase.

]]> By: limeade http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7291 limeade Fri, 06 Apr 2007 21:28:22 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7291 I also get frustrated with the guru's simplified investment gains. It just doesn't come close to reality. Also, I'm already living with really low expenses, so there aren't really all these areas to trim them. I just concentrate on being disciplined and take all their "calculations" with a grain of salt. -limeade I also get frustrated with the guru’s simplified investment gains. It just doesn’t come close to reality.

Also, I’m already living with really low expenses, so there aren’t really all these areas to trim them. I just concentrate on being disciplined and take all their “calculations” with a grain of salt.

-limeade

]]> By: MossySF http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7280 MossySF Fri, 06 Apr 2007 18:46:00 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7280 Numbers slightly off for Skype: $29.95 / year outgoing $38 / year incoming $5.66 / month for phone service $160-$230 Custom Skype WAP phone required (if you want computer-less phone calls) Numbers slightly off for Skype:

$29.95 / year outgoing
$38 / year incoming

$5.66 / month for phone service
$160-$230 Custom Skype WAP phone required (if you want computer-less phone calls)

]]> By: MossySF http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7279 MossySF Fri, 06 Apr 2007 18:34:14 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7279 * Cable -- If I had good reception here, I'd go back to rabbit ears and not pay a single dime to the cable company much less only pay basic for $15/month. * Cellphone -- Prepaid plans can get you down to $5/month. * Landline -- I'm using Vonage right now. Skype now though has VOIP incoming outgoing service for about $8 a month (using a custom Skype WAP phone) and I may switch over to them if I hear some good reviews. Yes it can make verification for credit cards harder. At this point, I only attempt to apply for cards where I have significant assets at the bank issuer to ease the process. * Gym -- How about the good old outdoors? I have WAY WAY WAY more fun rollerblading around the city so I end up doing it more often and going for longer. Now that I think about it, I will rollerblade from/to work and combine the workout time into my commute. * Cable — If I had good reception here, I’d go back to rabbit ears and not pay a single dime to the cable company much less only pay basic for $15/month.

* Cellphone — Prepaid plans can get you down to $5/month.

* Landline — I’m using Vonage right now. Skype now though has VOIP incoming outgoing service for about $8 a month (using a custom Skype WAP phone) and I may switch over to them if I hear some good reviews. Yes it can make verification for credit cards harder. At this point, I only attempt to apply for cards where I have significant assets at the bank issuer to ease the process.

* Gym — How about the good old outdoors? I have WAY WAY WAY more fun rollerblading around the city so I end up doing it more often and going for longer. Now that I think about it, I will rollerblade from/to work and combine the workout time into my commute.

]]> By: snoonan http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7274 snoonan Fri, 06 Apr 2007 15:47:15 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7274 Agreed.. good ideas, but still totally "in the box" kind of thinking. If I come across any really creative suggestions, I'll definitely bring them to your attention. Agreed.. good ideas, but still totally “in the box” kind of thinking. If I come across any really creative suggestions, I’ll definitely bring them to your attention.

]]> By: TF Miser http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/comment-page-1/#comment-7269 TF Miser Fri, 06 Apr 2007 15:03:09 +0000 http://www.lazymanandmoney.com/david-bach-and-my-two-major-pet-peeves/#comment-7269 I have the same frustration with these "easy ways to save $1000's" articles. There always things I already do. I have the same frustration with these “easy ways to save $1000’s” articles. There always things I already do.

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