I’m a big fan of public television, and I often watch programs while I’m writing. The other night I was excited in a nerdy kind of way to find a program with financial expert Jonathan Pond (I admit I hadn’t heard of him, but I am pretty new to this whole finance arena). At any rate, he has a new book called The New Affluence: Achieving financial security in a changed economy.
It turns out that I really liked his approach to managing your finances; he spoke of the need to simplify, live a life of abundance of your own terms, and create a secure financial future for your family. Despite the occasional investment jargon, he was speaking my language!
Here are my copious notes:
- Redefine affluence and change our investments accordingly
- Redefine investment risk – safety, simplicity, predictability
- Living debt-free is the new holy grail, not tax deductions
Day-to-Day Financial Life:
- Stop conspicuous consumption and ask whether you need to buy so much stuff
- Automatic savings transfer – make it easy to forget you ever had it to spend
- Eliminate debt – imagine a debt free life, be realistic and reduce slow and steady
- Career – excel in your current career, assess future options and determine whether you need a career change, consider a meaningful career – make a positive difference
Your Home and Family:
- Making your home a true investment – make extra mortgage payments when possible, owning your home is best retirement plan, if you’re not a home owner – now is a great time to buy
- Pay for college – look into state and community colleges, choose an age-based investment option
- Use life insurance as a nest egg – build up cash value, continue making premium payments, consider whole life insurance rather than term
- All-in-one fund – target date, lifestyle
- Municipal bonds – short term better, due to prospect of inflation
- Savings tip – set aside a small amount regularly “good for the soul”
Hopefully you’ll get something out of my notes, it was definitely an effort on my part since it was pledge week and I had to sit through it while researching/writing. I did end up renewing our OPB membership with small monthly deductions so that I could get his book and personalized financial planning consultation. I’ll write more once I get his personalized planning report! Thanks OPB!!
Does any of Pond’s advice resonate with you?
Sustainable Family Finances
The story of a family creating an abundant and sustainable life.