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November 21, 2004 04:39 PM

Seven Ways to Stop Saying 'Oops!'


Excerpt: We all make foolish financial decisions. But if you want to see things get really ugly, find folks who mistakenly think they're on the right track, so they end up making the same error over and over again. Want to avoid becoming a serial blunderer? Watch out for these seven popular misconceptions.


Two wrongs don't make a right.

We all make foolish financial decisions. But if you want to see things get really ugly, find folks who mistakenly think they're on the right track, so they end up making the same error over and over again.

Want to avoid becoming a serial blunderer? Watch out for these seven popular misconceptions.

1. Spending is a sign of wealth.

To amass wealth, you need to save like crazy. And to save like crazy, you need to clamp down on spending.

Yet, ironically, we almost always assume that folks are rich if they spend lavishly, drive spanking new cars and take ritzy vacations. Of course, they may be rich. But they aren't as rich as they would be if they hadn't spent all that money.

The lesson: If you try to spend your way to wealth, your closets may overflow, but your bank account almost certainly won't.

Read Full Story ...



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Read all 23 posts in the same category of Retirement:

Bush Says Social Security Plan Would Reassure Markets - Dec 17, 2004
Are You Ready To Retire? - Dec 13, 2004
Last-Minute Retirement Planning - Dec 12, 2004
Small Change Adds Up To Big Savings - Dec 09, 2004
Bush To Borrow To Fix Social Security - Dec 07, 2004
Moving Smoothly Into Retirement - Dec 07, 2004
Get Healthy, Get Wealthy - Dec 06, 2004
Five Books to Retire By - Dec 05, 2004
Tax Policy Promotes Early Retirement - Dec 02, 2004
Fidelity Analyzes Pension Performance - Dec 02, 2004
Social Security COLA Increase Looks Puny - Dec 02, 2004
No More IRA Leniency - Nov 29, 2004
To Yield A Good Retirement, Get Real, And Work It Out - Nov 28, 2004
Social Security Reforms On The Way? - Nov 26, 2004
Some New Ways To Preserve Your Retirement - Nov 23, 2004
Living Trust Offers: How to Make Sure They're Trust-Worthy - Nov 22, 2004
How to Forecast a Lifespan - Nov 21, 2004
Be Happy, And Put Retirement Fears to Rest - Nov 21, 2004
Retirees Don't Have to Be So Frugal: A Case for Withdrawing Up to 6% a Year - Nov 17, 2004
How to Avoid Living Like a Poor Student at Age 70 - Nov 09, 2004
What Social Security Might Look Like - Nov 09, 2004
Are You Retirement Ready -- Or Not? - Nov 03, 2004