WHEN BORROWING MONEY, WHETHER FROM A FRIEND, A RELATIVE, OR A BANK, MORE IMPORTANTLY THAN HOW MUCH CAN WE GET ARE:

Realistically, how are we going to pay back the lender, IN FULL, AND ON TIME (preferably early)? How much interest will we incur? What changes will we have to make in our lives (and in the lives of the people around us) in order to pay back our obligations? How much emotional energy (stress, worry,Continue reading “WHEN BORROWING MONEY, WHETHER FROM A FRIEND, A RELATIVE, OR A BANK, MORE IMPORTANTLY THAN HOW MUCH CAN WE GET ARE:”

AUTOMATIC DEDUCTIONS AND AUTOMATIC PAYMENTS: BOTH ARE CONVENIENCES THAT LULL US INTO POOR HABITS AND COMPLACENCY.

WE SIGN UP FOR ACH (AUTOMATED CLEARING HOUSE) DEDUCTIONS THROUGH A BANK ACCOUNT OR CREDIT CARD ACCOUNT. THIS ALLOWS A VENDOR TO WITHDRAW VARIABLE AMOUNTS OF MONEY (e.g. variable dollar amounts for natural gas bills or electric bills). WE MAY ALSO SCHEDULE AUTOMATIC PAYMENTS OF CONSTANT DOLLAR AMOUNTS (e.g. loan payments or rent payments), OUTContinue reading “AUTOMATIC DEDUCTIONS AND AUTOMATIC PAYMENTS: BOTH ARE CONVENIENCES THAT LULL US INTO POOR HABITS AND COMPLACENCY.”

MAYBE WE SHOULD SEPARATE OUR WORK, OUR JOY (OUR FLOW STATE), AND THE SHARING OF OUR TALENTS FROM THE MAKING OF SIGNIFICANT AMOUNTS OF MONEY. IDEALLY, ALL THESE IMPORTANT CHARACTERISTICS SHOULD COEXIST, BUT THEY CANNOT. DUE TO INHERENT TENSIONS, ONE TENDS TO OVERSHADOW, DIMINISH, OR DESTROY THE OTHER.

https://notyourdoc.blog/2021/07/23/there-is-a-significant-difference-occasionally-with-overlap-between-a-passion-to-make-money-and-a-passion-to-perform-an-activity-which-makes-money/ Charles Tadros, M.D. January 22, 2022 Saint Louis, Missouri

WE ARE NOT, “SAVING MONEY” IF WE WERE NOT THINKING OF PURCHASING A SERVICE OR AN ITEM UNTIL WE WERE ENTICED BY A DISPLAY, SALE, DISCOUNT, CODE, OR COUPON.

Charles Tadros, M.D. January 22, 2022 Saint Louis, Missouri

ISN’T THE PSYCHOLOGY AND MATH OF MONEY AMAZING? IF WE HAVE A SINGLE SHARE OF A $5 STOCK AND THE PRICE RISES TO $10 (ie a 100% increase, or doubling your money), TO ALMOST ALL IF US, THIS IS NOT A LIFE-CHANGING AMOUNT OF MONEY. HOWEVER, IF WE HAVE 10,000 SHARES OF THAT SAME $5 STOCK, AND THE STOCK PRICE DOUBLES, NOW OUR INVESTMENT OF $50,000 HAS DOUBLE TO $100,000. TO ALMOST ALL OF US, THIS WOULD BE A LIFE-CHANGING AMOUNT OF MONEY. THE SAME STOCK, SAME STOCK PRICE, SAME STOCK PRICE INCREASE, BUT DRAMATICALLY DIFFERENT IMPACT ON ONE’S LIFE. ALL OF THIS DUE TO TO THE INITIAL, OR CUMULATIVE, TOTAL DOLLAR AMOUNT INVESTED.

The lesson seems to be that our earliest work to earn money (in order to invest), our earliest attempts to reduce debt and taxes (and to use these savings to invest), and our earliest buying and holding of quality investments, are by far the most important effects for our long-term financial wealth. Charles Tadros, M.D.Continue reading “ISN’T THE PSYCHOLOGY AND MATH OF MONEY AMAZING? IF WE HAVE A SINGLE SHARE OF A $5 STOCK AND THE PRICE RISES TO $10 (ie a 100% increase, or doubling your money), TO ALMOST ALL IF US, THIS IS NOT A LIFE-CHANGING AMOUNT OF MONEY. HOWEVER, IF WE HAVE 10,000 SHARES OF THAT SAME $5 STOCK, AND THE STOCK PRICE DOUBLES, NOW OUR INVESTMENT OF $50,000 HAS DOUBLE TO $100,000. TO ALMOST ALL OF US, THIS WOULD BE A LIFE-CHANGING AMOUNT OF MONEY. THE SAME STOCK, SAME STOCK PRICE, SAME STOCK PRICE INCREASE, BUT DRAMATICALLY DIFFERENT IMPACT ON ONE’S LIFE. ALL OF THIS DUE TO TO THE INITIAL, OR CUMULATIVE, TOTAL DOLLAR AMOUNT INVESTED.”

THE ABSOLUTE VALUE OF MONEY IS NOT NEARLY AS IMPORTANT AS THE FUNCTIONAL VALUE OF MONEY.

The same $1 bill (absolute value) is able to purchase dramatically different goods and services (functional value) now versus 30 years ago. It is much easier to count and compare the absolute value of money than it is to calculate and compare its purchasing power. HOWEVER, what almost all of us really care about isContinue reading “THE ABSOLUTE VALUE OF MONEY IS NOT NEARLY AS IMPORTANT AS THE FUNCTIONAL VALUE OF MONEY.”

WHEN SOMEONE IS IN FINANCIAL TROUBLE, MANY OF THEIRTHOUGHTS, BELIEFS, AND ACTIONS DO NOT MAKE FINANCIAL SENSE, BUT DO MAKE SENSE WHEN WE TAKE INTO ACCOUNT THAT PERSON’S LIVED HISTORY AND THEIR EMOTIONS.

Charles Tadros, M.D. July 12, 2021 Saint Louis, Missouri

ONE OF THE MORE COMMON COGNITIVE ERRORS THAT WE DEVELOP WHEN WE FINALLY HAVE MONEY TO SPEND IS THAT, IN OUR EXCITEMENT, WE MENTALLY SPEND THE SAME DOLLAR MORE THAN ONCE.

Charles Tadros, M.D. June 18, 2021 Saint Louis, Missouri

WHEN YOU VOLUNTARILY TIGHTEN YOUR FINANCIAL BELT, YOU …

Have more of a sense of responsibility, and more of a sense of ownership, than just with your finances Have more sensitivity to wastefulness Have financial investments that tend to become more conservative Have an appreciation for low cost or free items and opportunities Have an increased sensitivity to gratefulness Have more of an appreciationContinue reading “WHEN YOU VOLUNTARILY TIGHTEN YOUR FINANCIAL BELT, YOU …”