Why I’m conservative with money
I’m very liberal in many many ways, but not financially. In fact I struggle not to be too financially conservative. I force myself to limit my most conservative moves to very small dollar amounts that just serve to make me feel better, because I know that being too conservative can lead to losing money due to inflation, fees and inaction. I focus instead on putting my eggs in as many baskets as possible. I thought I’d share why I feel this way.
Due to my family history, I have very little faith in government entities and big business. (I can only imagine what I’d be like if I’d grown up in the depression!) As a child I remember driving by the reservoir and being told that “that’s where grandma & grandpa’s house was”. Their house was taken by eminent domain, and they were forced to move. Next there were the savings & loan failures of the 80s (when I was a teen) where members of my family lost a significant amount of money. They eventually got back pennies on the dollar. Pennies. The prospect of them living out the rest of their lives comfortably and relatively worry-free was gone. I remember getting $5 from them for my birthday. I knew how much that $5 really cost them, and how much they wanted to be generous. Then there was my first experience with the stock market, not all that long before Black Monday. Which was followed by a year or two of having $10 per week for groceries. Finally there were the multiple family members who needed incredibly expensive medical help. I can’t imagine what would have happened if they hadn’t had excellent medical benefits, money for copays, experimental treatments, travel, and long term care insurance.
But of course good things have happened as well, and by nature I am a risk-taker. I mean, day trading and gambling appeal to me, so what does that say about me? It’s balance that I strive for, and my history is part of that. Maybe it’s actually what HELPS me make what I hope are balanced financial moves.
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