Aug. 30, 2006 - Question of the Day Marathon |
This month I am participating in a rotating "Question of the Day" (QotD) marathon organized by JLP at AllFinancialMatters.
Each weekday in August features a QotD hosted by a different personal finance blogger. All the other participating bloggers provide a link to the appropriate host blogger on his or her designated date. My turn will come on August 15. Hope you enjoy this feature and be sure to leave a comment on the host's blog to liven up the discussion.
August 1. JLP at AllFinancialMatters asks,
"If your budget required you to give up something that you like because you just didnt have enough money to cover your expenses, what would that be?"
August 2. Maggie Wang at Caustic Musings asks,
"What is the weekly average cost per person for food in your household, including groceries, snacks and eating out?"
August 3. Kirk at Investimist asks,
"What was the last thing that you splurged on that you didnt really need?"
August 4. Ricemutt at Experiments in Finance asks,
"How many credit cards do you have, and whats their combined credit limit?"
August 7. FreeMoneyFinance asks,
"Which is more important to financial success: saving money (spending less than you earn through cost cutting) or making your income as high as possible (earning more money)?"
August 8. Single Ma over at Single Mom and Money asks,
"In terms of your annual gross salary, what percentage do you save? Are you happy with that amount or do you think you could do better?"
August 9. Young and Broke asks,
"If you had $10,000, one day, and one store to spend it in, what store would you choose?"
August 10. Savvy Saver asks,
"If you had to pinpoint the one financial decision (good or bad) that put you on the path to where you are now, what would it be? If you could do it over, would you change your decision?"
August 11. Chris at Young Finance Guy asks,
"What do you consider an expensive night out?"
August 14. Money Dummy asks,
"Whats the most unusual, quirky, or bizarre thing involving money thats happened to you personally?"
August 15. Steve Braun asks,
"What percentage of financial success comes from 'financial skills' and what percentage comes from 'character?' Share some examples to support your theory."
August 16. John at Mighty Bargain Hunter asks,
"Whats the best deal that youve ever gotten in a store?"
August 17. Journey to Financial Freedom asks,
"Do you have any side income other than your paychecks? If no, how [are] you going to generate it in future? If yes, how [do] you generate it?"
August 18. Penny Foolish asks,
"What are your vices? What do you spend money on that isn't a need - something that just makes you happy?"
August 21. Consumerism Commentary asks,
"While growing up, what were you taught about personal money management by your immediate family and surroundings (directly or by example, positive or negative), and how do these ideas factor into your life now?"
August 22. No Credit Needed asks,
"What was the very first thing you purchased using credit (debt)?
What was the very last thing your purchased using credit (debt)?"
August 23. Mapgirl's Fiscal Challenge asks,
"How much of a balance do you leave on your checking account(s)?"
August 24. Chipping Away asks,
"If tomorrow you were to suddenly find yourself unemployed, what would your action plan be and how much trouble do you feel youd be in?"
August 25. Udandi & The Craft of Money asks,
"What is your hobby and how much money do you spend on it? Please indicate if that is a monthly or yearly figure."
August 28. Money & Values asks,
"Do you involve your values in your money decisions? If so, what are some examples? If not, why not?"
August 29. Pragmatic Finance asks,
"What factors affected the career you chose? Was it purely about the pay or were there other aspects that influenced the decision?"
August 30. City Girl's Financial Blog asks,
"In the past 24 hours, what have you done in relation to money?"
August 31. Get Rich Slowly asks,
"What does money mean to you?" |
| 0 Comments Post A Comment! Permanent Link |
Aug. 15, 2006 - Financial Skills vs. Character |
Welcome to the Question of the Day marathon created by JLP of AllFinancialMatters. I'm the host today so here goes.
In reading through the comments in the QotD marathon, I've noticed most people attribute their financial successes or failures to some combination of what I call their "financial skills" and "character." This was especially true in many of the responses to Savvy Saver's question last week.
So let's assume that financial success is completely determined by these two variables as defined below:
Financial Skills = general knowledge of how to handle money in terms of earning, saving, spending, and investing it.
Character = being self-discliplined, thrifty, frugal, diligent, having self-control, etc. with respect to money.
That being the case...
What percentage of financial success comes from "financial skills" and what percentage comes from "character?" Share some examples to support your theory.
From my perspective as a financial planner, I'd say character is the foundation for financial success. Without character it is unlikely that anyone can succeed in the long run. Having financial skills is important but it's icing on the cake. I'd assign 80% of financial success to character and 20% to financial skills. Lender's Slave is a great example of how no amount of financial skill can compensate for a person that lacks the character to control his or her spending.
What do you think?
|
| 18 Comments Post A Comment! Permanent Link |
|
|