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Around the Interwebs – Week of November 1st

CarnivalHere are the carnivals where I was featured this week.  Enjoy!


Carnival of Money Stories @ Live Real NowA Very Scary Money Story

Carnival of Personal Finance @ Consumerism CommentaryHow to Get Rid of the Stuff that Haunts You


And, as usual, some good stuff from elsewhere:

"Optimism is not necessarily bad. Delusion is."

  @ Don't Mess With Taxes


How to Strategically Evoke Cognitive Dissonance @ I Will Teach You to Be Rich

10 Things You Should Never Pay Full Price For @ Gather Little By Little

9 Tips to Help you Create Passive Income for Life @ Redeeming Riches

Article publié pour la première fois le 05/11/2010


What I Like About You

1. You really know how to dance.  Seriously, you break it down better than anyone I know.

2. You contribute the full 5% that your employer matches to your 401k.  Great work. 

3. You pay your credit card bill in full at the end of every month. 

4. You clip coupons; not like it’s your job or anything, but you make an effort and that’s groovy.

5. You have a Roth IRA and you feel all warm and fuzzy when you make a contribution. 

6. You aren’t flipping out and considering selling all your stocks every day that the stock market dips.

7. You know when to hold ’em and when to fold ’em.  Thanks for not dwelling on every single financial mistake you’ve ever made.   Whiners really get me down. 

8. You don’t buy a pallet of anything from Sam’s just because “it’s a good deal.”

9. You take care of the stuff you have so that you don’t have to buy new stuff later. 

10. Seeing anything about “get rich quick” schemes gets you started on one of your world-fameous rants.  

11. You don’t eat out frequently and then complain about being broke (or overweight). 

12. Even though they don’t always stick, you’re always looking for new ways to spend your money better.

13. You don’t buy crap on an impulse. 

14. You’re generous.

15. You don’t expect a raise or promotion without doing above-and-beyond type of work.  You work hard for the money.  So hard for it honey.

16. You don’t buy houses, cars or anything else that would require you to live beyond your means.

17. You can’t stand it when people say things like “ATM machine” or “BFF’s forever.”  They’re redundant and redundant.  This may seem a bit off topic, but it needed to be said. 

18. You don’t pay for things you can do yourself. 

19. You spend less than than you earn.

20. You review, tweak and improve your budget every month.  The fact that you even have a budget is something I like about you. 


You rock.


Article publié pour la première fois le 11/10/2010



Hello, my name is Lauren.  My friends and family call me Larn! (yes, with the exclamation point), but you can call me Lauren because I don’t know you yet.

What are my qualifications?

I have my BSAcc (that’s accounting) degree from the University of Denver and am currently pursuing a degree in financial planning from none other than the College for Financial Planning.  I also have two years of professional accounting under my belt, impressed?  Seriously, financial discussions on Richly Reasonable are not intended as financial advice, but rather as brainstorms amongst individuals navigating through the murky waters of personal finance.

Why am I starting a blog?  Aren’t there enough blogs?

Two years ago I found myself under challenged but luckily over paid in my first job right out of college.   After a couple of weeks of annoying my superiors by asking for more work, I went back to my desk and just sat.  Any desk drone can tell you that it is a natural instinct to look busy, especially when you aren’t.  I quickly learned that working on my Christmas present crafts drew too much “bad” attention and adopted the method that most of my colleagues had already mastered: stare at your computer intently and when someone passes by, furrow your brow deeply, feign deep consternation and, if at all possible, grunt.  So, I passed the days in my cubicle browsing the interwebs searching for workplace-friendly forms of entertainment.  Having always been interested in personal finance my wanderings lead me to places like smartmoney.com,  which lead me to financial blogs, which lead me into a spiraling addiction to budgets, IRA’s and money managing related products!  Intense, I know.  The more I read, the more I thought (as does anyone who reads blogs), “I could do that.”  But I didn’t do that.  I moved to Del Rio, TX following my fiancé and was forced to find a “real job” to pay for my apartment.  Reality does in fact bite.  Fortunately, I found an open position for an accountant, a job that I turned out to love, and was still able to get my finance blog fix daily.

I now find myself married to an Air Force pilot, not working (which I’m still a little insecure about) and we are headed to the last place I ever expected: Kadena Air Force Base, Japan.  I’m being dramatic, the last place I expected was Alaska; so, we are going to the second to last place I ever expected, totally workable.  Even now I still can’t help but think of that quote, “If you want to hear God laugh, tell him your plans.”  After a slight mental break (that would happen to any borderline-OCD-planning-addict under the circumstances), I realized that now was the perfect time to give a blog a go.

What is Richly Reasonable? It sounds crazy!

Richly Reasonable operates under the idea of simply being reasonable in all areas of your life; money, marriage, family, whatever.  Now, just to clear up any misconceptions, I am far from reaching the optimum reasonability quotient.  My husband will tell you that the female voice of reason checks out around here at 10:00pm sharp.  The idea is simply to create a community that supports reasonable decision making and encourages healthy, happy lifestyles.  I will also be providing additional information for Air Force families as I come across it, because, well, I can (I have a blog) and good information should never be kept to yourself.


Article publié pour la première fois le 25/05/2010


CFD Trading For Beginners

What is CFD Trading?

CFD Trading is essentially the difference between the entry and exit points of a trade. CFD is an acronym for Contract of Difference. Thus, CFD is a tradable instrument that reflects the movements of the capital underlying it. It permits significant profits and losses to be illuminated in relation to the original position taken, but the actual asset which is underlying is never owned by the client. Basically, it is a binding contract between the customer and the broker. CFD trading has major advantages and over recent decades has increased in popularity – it is seen as the fashionable alternative to stock and shares.

How CFDs Function

If a stock has a price of £25.25 and 100 shares are purchased at this price, the cost of the of the purchase will be £2,525. With a normal broker, using a margin of 50%, the trade would need at least £1,262 outlay from the person involved in the trade. However, with a CFD broker, the margin is minimal, often as low as 5%, so the trade cost is only £127.

When a CFD trade is entered, the position should highlight a loss that is equivalent to the size of the spread. Thus, if the spread is 5p with the contracted CFD broker, the shares and stock price will need to appreciate 5p for the position price to actually be set a break even. However, if you did own the stock, you would see a profit of 5%, but you would have laid out a commission against the original capital outlay. Therefore, a tradeoff will initiate.

CFDs examples are used on CMC Markets‘ website, where they provide an idiot-proof guide to trading on this platform.

Advantages of CFD Trading

Leverage: CFDs give a much better leverage than traditional forms of trading. Standard leverage in the CFD sphere starts as low as 2%. Dependent on the original underlying asset, which may be shares, requirements may increase to around 20%. Lower margin requirements mean the initial outlay for the trader or client is less and this can have greater profits or returns. Despite this, increase a leverage can also mean greater losses.

Market Access from around the globe: Many CFD broker provide products to the clients on all the world’s major trading platforms. This means that traders can access a market at any time, providing their broker’s platform is actually open.

No Shorting Rules or Borrowing Stock Certain markets do have rules, which means they present the client or broker from trading at certain times. These systems ask the trader to borrow the instrument before they before shorting occurs or they have different margin specifications for shorting (different from those for going long). Essentially, the CFD market does not have rules attached to short selling, as an instrument can be shorted at any time, and since no ownership of the primary asset exists, there is no borrowing, shorting costs or no commission to pay.

Professional judgment and execution: CFD brokers offer the same service as many stock and shares brokers. These can include services such as contingent orders, stops and limits. Some CFD brokers even offer guaranteed stops as part of their service. Brokers that offer these service often charge a nominal fee or they obtain this revenue from another broking avenue.

There a not many CFDs brokers who actually, who will actually charge a fee for trading in CFDs. Brokers also will not charge any type of commission or fees related to the exit of trade. The broker makes their money by asking the client to pay the spread. Thus, a trader must purchase at the asking price and make a decision on whether or not they are going to sell or go short – the trader must then take the bidding price. Based on the fluctuations in price of the underlying asset, the spread may be relatively small or extremely small, but it is almost always fixed.

No day trading stipulations: Certain global markets require traders to pay nominal amounts of capital to trade on a day, or alternatively place certain limitations on their activity during day trading.

Article publié pour la première fois le 28/09/2016


As a parent who struggled with debt during most of her child’s life (granted, she’s not quite 5 but it’s still a long time), I have made a resolve to teach her the money skills I never learned as a child. I want her to avoid the struggles, frustrations, depression and anger that go along with paying off debt. I want to teach her to be smart about her money and make good financial choices. I want her to have the freedom it’s taken me years to achieve.

Teachable Moments

There are a few ways I’m working toward these goals. The first is taking advantage of teachable moments.  For instance, my daughter helps me go food shopping. She knows that I shop with a list. She knows that we need to stick to the list. She will sometimes help me write the list. She even acts as my “list helper” when we’re at the supermarket (list helper as in a child who walks with me, holding the pen and paper so she behaves instead of running all over the store).   Recently, we were having a random conversation (as 5 year olds are prone to do) and she starting talking about how we need to make sure that we bring a list with us to the supermarket.  I used the opportunity to talk to her about why we use a list and what we put on a list.

Another way I’m working towards the goal is leading by example. Since my daughter was an infant, she’s had a bank in her room. I put my loose change in her bank (I do make her earn it..sometimes but that’s another story) and have had conversations with her about what we’re going to do when the bank is full. I use this as a chance to talk to her about spending, saving and giving. The point is enforced because there is a change jar in the kitchen where loose change will also go. She sees that mommy is saving her money so she knows that it’s not just something I’m telling her to do; it’s something I’m doing myself.

I also am open with her about finances. If we go to a store such as Target for a specific purpose, and she starts begging for a toy that we didn’t go to the store to buy, I tell her “we don’t have enough money for that today” or “we’re not here to buy a toy for you. We need to buy this and only this”. Sometimes, if she wants something and it’s too expensive, I will tell her so and explain that we need to save our money before we can buy it. She sees me using our envelopes to hold our cash, and I’ve explained to her why we use them. She hears my husband and I talking about money and if she asks what we’re talking about, we’ll tell her.  When we’re at a store, I’ll let her pay the cashier. It’s actually a sense of pride for her to pay with “dollars” (it’s how she refers to cash). Being open with her makes her comfortable with the idea of money at a young age.

Then there are two things that we are providing behind her back: her 529 account and an ING savings account. Both accounts were set up shortly after she was born in 2006. Money out of each paycheck gets automatically deposited in her savings account and when daycare ends next year, all out-of-pocket money will go towards her 529 (she does have a few thousand in there but it’s not something that’s regularly contributed to right now).  Although my husband and I cannot agree on when we are going to give her the money in her savings account (I feel that after college graduation is a good time. He keeps changing his mind), we do agree that it’s important to be able to hand her some money to get her adult life started. We also agree that she is not to know about this money because we don’t want to have to fight with her about it.

As far as the 529, my husband graduated with immense student loan debt that will take until we’re at least 40 to pay off; I don’t want to put our daughter in the same position. Fortunately, he agrees with this (although we doubt that by the time she starts college, the amount will be enough to cover all 4 years. If it covers two and we have to pay out of pocket, or by loans for the other 2, so be it).

Teaching kids about money is hard. I still have not figured out how to handle allowances or decided when I think she’s old enough to have a job like babysitting let alone a real part time job.  I don’t know how I’m going to handle a cell phone or a car or anything like that either. Then I remember that she’s not quite 5 and I still have time. But using teachable moments to help her learn about money and not making it a taboo topic is a good foundation for that future!

How do you teach your children about money?

Article publié pour la première fois le 24/10/2011


Around the Interwebs – Week of August 2nd

7 Things I Learned Watching Honeymooner Re-Runs @ Saving Money Today

Should Unemployment Benefits Be Extended? @ The Digerati Life

The Best Things to Buy in August @ Lifehacker

Article publié pour la première fois le 07/08/2010

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