Hump Day Help – An @ClementsMoney Collection
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Welcome to the Hump Day Help. Each Wednesday we take some advice from Jonathan Clements‘ blog Humble Dollar and “militarize” it for you. Jonathan Clements was a longtime personal finance columnist for The Wall Street Journal, and he offers great advice at the best price you can get…free. Here is this week’s Hump Day Help:
It’s late and I still have to pack for FinCon 18, where I am heading in an effort to try and improve this blog! Since I don’t have a ton of time to comment on one of Mr. Clements’ tidbits of wisdom, here are a few from this site this week that i thought were helpful. See you at FinCon!
TRUTH – NO. 90: HOME IMPROVEMENTS are money losers. Yes, homes typically climb in price over time. But the only sure source of appreciation is the land. The house itself deteriorates and requires hefty expenditures just to maintain its value. Indeed, if you fix up your home, you might recoup just 50% to 90% of the money spent—assuming you sell within a year.
ACT – FREEZE YOUR CREDIT—something you can now do at no cost. This will prevent data thieves from taking out loans and credit cards using your identity. But it also means you’ll need to contact the three credit bureaus and unfreeze your credit temporarily whenever applying for credit. Sound like a hassle? As an alternative, consider setting up a fraud alert.
THINK – DIVERSIFICATION. While diversifying is important with bonds, it’s crucial with stocks—and involves investing in hundreds and perhaps thousands of companies from a host of market sectors and countries. If we don’t diversify, and instead focus our money on a handful of stocks or a single sector, there’s a danger we’ll take the risk of stock market investing—without getting the reward.