I went to LA in early August to meet with the principals of the startup, to learn in more detail about their business and to assess whether I wanted to invest in the venture.
I’ve thought a lot and have been interviewed about the wisdom of loaning money to relatives. The consensus is that it is usually not a good idea. If you do decide to lend money many believe that you will see the money returned. It’s better to think about the loan in your own mind as a gift, even if you sign a loan contract and charge interest.
Three weeks ago my 30′s something son called and asked if I would consider making a $100,000 investment in a business that would offer him a job opportunity as well as provide him with the future possibility of buying my equity stake out if, in fact, I became an investor.
Angie, the mother of two children, ages 7 and 10, paces around her living room worried that her children may not have a stimulating summer. Stimulation in the form of camps, trips and peer dates and outings cost money and she has been running a monthly deficit of $1000 a month for several months. She desperately wants to get her hair done and take a short breather from her three part-time businesses.
You go into your favorite electronic store saying to your friend that you aren’t going to buy anything. The last trip cost you $150 and you’re still paying that splurge off.
Into the store you go with the best of intentions; out you walk with a new iPad that was on sale “just for today” for 30% off.
It is hard enough for anyone to resist the glow of shiny new objects, but for ADHD/ADD people it is exceedingly difficult to slow down and diffuse the call-to-action – in this case, to buy a desired something. Why is this so?
You are out for a nice dinner with a new friend and you are in a very good mood. The server for your table is cordial and upbeat. As the meal progresses the server brings your soup, but it’s cold. When you bring it to her attention she apologizes, takes it back to the kitchen but forgets it. A few minutes later she shows up with the main course. At this point you are mildly annoyed and don’t want the soup. The main course is delicious. Shortly after dessert the bill arrives.
Many people wrongly assume that Attention Deficit Hyperactivity Disorder/Attention Deficit Disorder (Inattention, no hyperactivity) is a problem with lack of attention and focus. In truth, ADHD/ADD is a problem of the modulation of attention. That is, having the ability to bring up the right amount of attention and focus for a task at hand—not too little, not too much but the “just right” amount of effort and attention.
People with ADHD/ADD can focus when their interest and engagement is aroused by something they REALLY like. In fact, they can hyper-focus and maintain it for hours at a time, much longer than someone who doesn’t have it.
What is a Money Type? We all have ways of relating to money. Many of us love to spend, some like to hoard while others would prefer never to think about money and pretend it comes from the tooth fairy or grows in a very special tree in the back yard.
Your behavior with money has a long history.
Most children are introduced to money when they are 4 or 5. Kids go to the store with mom or dad and these days may help mom swipe her credit card to pay for groceries. Children hear their parents talk about money, they learn basic math from counting and sorting coins, they get money to buy a toy or an ice cream cone.
When congress passed and Obama signed into law the Patient Protection and Affordable Care Act (ACA), many people were rightfully confused by what this new law meant for millions of people and in particular for them. There have been many statements made by those who resist change to give the ACA a very big black eye. Have they read the 1,200 page document? Probably not and neither have I.
However, there are a few facts I HAVE read that are clear and that everyone should be aware of:
1. Young adults 26 and younger can stay on their parent’s health insurance.
Most everyone knows what a will is. All of us die sooner or later. The best way to leave money to your heirs is by writing down in a will (an official document) your wishes as to who you want to leave your money to and in what amounts.
People draw all kinds of conclusions from the will’s contents about how the dead person must have felt about, for instance, his son, for whom he set up a spendthrift trust (a trust that sets conditions for getting the inherited money). This is particularly true if , at the same time, his daughter got the same amount of money outright.
Roger Shawn and Blake Gordon, senior financial advisors at Capitol Securities Management, Inc. gave an investment seminar in Williamsburg VA for their private clients.
They invited me to speak about the behavioral and emotional side of money, in an effort to engage the participants in “money talk” they could relate to more easily than, for example, the intricacies of the gold and bond market.
Participants learned about the impact of childhood experiences in forming attitudes and beliefs about money and the 7 “Money Types” (Spender, Hoarder, High Roller, Money Monk, Amasser and Avoider) and what it means to be a “Money Master”.