Interesting Article: How to Improve Your Thinking and Make Better Financial Decisions: Strategies for Overcoming Bias and Making Sound Financial Decisions. For most people it is impossible to be unbiased. Our collective experience and wisdom are a huge part of what makes us who we are. We can’t eliminate bias, but we can learn to identify patterns of bias in our thinking and implement a process for challenging our own conclusions.
Quote: “The secret to getting ahead is getting started. The secret to getting started is breaking down your complex overwhelming tasks into small manageable tasks and then starting on the first one.” – Mark Twain. Keep it simple and get started!
Economic Indicator: When news agencies report a “change in interest rates” they are almost always referring to the Federal Funds Target Rate. Banks are required by law to maintain a certain level of reserve money determined by their level of assets and liabilities. Banks can lend any reserve surplus to other Banks in need of extra cash. The Federal Funds Target Rate is a benchmark set by the board of governors of the Federal Reserve for these transactions.
Book I’m Reading: Unshakeable by Tony Robbins. Unshakeable is a follow up to the #1 New York Times best seller Money: Master the Game. In this book Robbins discusses the concept of asymmetric risk reward which refutes the conventional wisdom that high risk equals high reward. Instead, Robbins argues that the successful investor seeks out opportunities with as little downside as possible while maximizing returns. Robbins also covers topics such as taxes, hidden fees, how to profit during an economic downturn and the psychology of wealth.
Personal Finance Tool I’m Investigating: AnnualCreditReport.com. Jointly operated by the three major credit reporting agencies, AnnualCreditReport.com provides free access to your credit report every 12 months. Ensure your credit history is up to date, catch early signs of identity theft, be aware of information which could impact your ability to qualify for a mortgage or auto loan.
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