Fashionable Finances 101
As I sit at my desk, in the mist of yet another finance class, I’m itching and I reach for the Benadryl. I have whelps that have broken out on my arms and legs and I can’t stop scratching. You may laugh but I’m serious and I really do have bumps and whelps all over my body. I have witness and I’m taking pictures to prove it. I had a dream last night and in my dream I was told to put on some apple cider vinegar (an old school remedy) to help alleviate symptoms and pain and I woke up at 3:30 in the morning and did it-
I like many people have a mild to severe panic attack and allergic reaction when I am forced to compile and analyze balance sheets and cash flow statements. Its something about ratios that’s makes me just break out in hives. Currently I’m looking into ways to extend my own portfolio and create multiple streams of income and I cannot move forward comfortably with blisters all over my body. In keeping with the notion “…All is Mental…” I realize that maybe our fractured financial health stems from perception. The reason why it’s so difficult for us to understand the science of money, portfolios and asset allocation in our personal lives (much less transfer that over to our professional lives) is because we have yet to activate the proper conduit. Maybe just maybe I’m not allergic to Finance I just have hypochondriasis and I just need retail therapy.
I took my quest to the World Wide Web and found a multifaceted cure for all (and a great formal gown for less than $100 #Winning) – as we expand our closets and minds. We can take some valuable #LessonsLearned and build upon some of our timeless staple pieces and improve our financial health in style.
Below are some of my notes and additional thoughts and comments from the Fashion Boutique segment on Great Day Houston:
LBD. The little Black Dress = Socks & Equity.
o Socks are ownership in a corporation.
o When the company does well you do well.
§ I deal situation and under perfect conditions
o Risk = Situations that are not ideal and perfect
§ i.e., having “the bat wing”, excessive back fat, feeling bloated, hairy legs and no time to shave
· Risk is a qualified cause for closet expansion
· Pant Suit = Bonds & Fixed Income (Limited upside but it will cover your behind)
o Bonds are loans to a government or company with a promise to pay you back with interest
· Socks, Underwear and Workout clothes = Cash
o The Foundation of Investments
o It’s Available when you need it
§ You need enough to get you through to the foreseeable feature
· You don’t necessarily need a stockpile
· Accessories = Alternative Investments
o Non-Traditional and Non-Correlated
o For the Advanced and sophisticated investor
§ I.e., Furs, Designer Shoes, Precious Jewels etc…
· Small wardrobes don’t necessarily think about this yet but as your wardrobe grows these become very effective in enhancing and distinguishing your look, portfolio and brand
Moving Forward know that everything is either a durative or combination between the above aforementioned (i.e., pant suit with accessories). Its wise to always cover your basics and they younger you are when you start saving the better off you will be
o Remember to always cover your basics
o Investment strategies are a lot like shopping strategies
§ Value Investing = Always looking for the Deal
· Bargain Shopper
§ Momentum Investing = Follow the Trends.
· Buy High and Sell Higher
§ Contrarian Investing = Off Season Shopper
· Don’t follow conventional wisdom
o i.e., Do Christmas shopping in the summer
§ Buy & Hold Investing = Buy Classic pieces/vintage items and keep in the closet for ever
· Warren Buffet does a combination of Value Investing and Buy & Hold Investing
Cheers to Us and our Fashionable Financial Health