Hold on. Don't panic! Look at this as a great buying opportunity. Dan says that there are a couple of things you should keep in mind:
- the market will bottom out over the next two months
- when tv commentators begin talking about the Fed's cuts not working, that's the signal that we're reaching the bottom
- three months from now, it WILL get better-just don't add to the panic!
Here's what I really got excited about--as a parent, you should always welcome sage advice and a lil drop of wisdom goes a long way.
Dan shared his views and a new perspective on teaching our kids to avoid debt and understanding the true value of money . . .
if you have kids, listen up!
First of all, why teach them to avoid debt? it is nearly impossible to accumulate wealth without debt--the catch is what kind of debt are you creating for yourself?
Smart debt vs dumb debt--if you gotta have it, you really should make sure its of the good variety. When talking to our kids about money, we need to model and show them actual numbers and real world consequences. Don't create debt to better your lifestyle--of course we all want the 745 in the garage and going out to eat 4 times a week--but when your income does not support that lifestyle, don't create debt for yourself in order to make this happen.
Smart debt is money you borrow to make more income for yourself. Taking loans in order to invest in property or an idea that will ultimately create more income for you in the future is debt that is used properly. These "investments" will surely make your life better down the road.
A conversation with my son, Jonah erupted from this next segment. If you know anything about 13 yr olds--then you'll understand how rare and joyous these precious moments of conversation can be. . . Dan suggests that we do away with the traditional "allowance." Can you imagine how my kid reacted to that one!?!?! :)
this is how my MoneyMan does it:
rewarding the completion of around the house chores (such as making your bed, taking the trash out, or vacuuming)with a few dollars teaches his kiddos that doing maual labor really doesn't pay. Instead, he rewards their accomplishments by degree of inspiration. He creates a price list or menu of sorts for his kids to choose from, this leaves the responsibility of choosing how much they want to earn and how much effort they are willing to put forth in their court.
When one of his kids writes a great paper about Ronald Reagan or figures out the frequency that dolphins communicate at and charts it in a science project, he pays them more for their mental efforts . . . $20-$40 a project
Now, when they compose a beautiful song or produce a video of it using their imac, he REALLY rewards that accomplishment. . . $100-$200 a composition.
Dan's belief is simple, when you exercise the most important muscle in your body--your brain--you are far better off and very well compensated for your efforts.
Listen for yourself:
The MoneyMan report
