Advice Archives - Frugaling

The 4 Worst Investment Tips You’ll Ever Hear

Worst Investment Advice — Photo: Unsplash

I’d been following the stock market for years by the time I could finally invest on my own. It used to cost $50 a trade with a major broker, and the fees were cost prohibitive. I waited and waited for fees to decline. Instead of trading, I researched stocks and followed prices.

When companies like E*Trade and Ameritrade were born, they slashed trading fees to a manageable $10 to $15. Suddenly, investing became a tool for a greater population. I was a teenager when I made my first trades.

Actually buying and selling — pulling the trigger on a stock — took little of my time. Most of it was spent reviewing reports and books. I read like mad from economics and investing books.

For last 15 years, I’ve heard some comically bad advice. It’s flown in the face of everything I’ve read. Sometimes it’s senseless; at other times, dangerous. If you hear this “advice,” run.

1. Buy low and sell high

I’ve heard this unhelpful tidbit more times than I can count. Usually, it’s repeated by people who understand what the stock market is: a place to buy and sell. But they hardly understand the how.

To actually “buy low and sell high” is far more complicated. The cliché presumes you can spot a low point or “bottom,” have money ready to invest, and “call” the bottom by buying in. Unfortunately, this advice can also encourage people to look for “high” points or a market top or a bubble.

Few people — statistically speaking — can accurately call bottoms and tops. Even the most trained professionals fail over and over again. CNBC anchors, analysts, and commentators regularly preach markets as being oversold and/or overvalued, but rarely are their comments checked — veracity analyzed.

While the guidance is right, I call this bad advice because it doesn’t make you a better investor. Despite the intention, this statement doesn’t help you find lows and highs.

2. Penny stocks lead to significant returns

Amidst this culture of capitalism, get rich quick schemes are everywhere. The stock market, with it’s daily returns and losses, is something of a casino for the world. With one big trade, you could be rich; at least, that’s what might be sold to you with “penny stocks.”

Penny stocks are less than $1.00 and often traded on the OTCBB — an off-market, poorly regulated exchange for little-known companies. Online scammers and tricksters tell potential investors about their regular returns and successes.

Can you believe they made a 1000% gain in a week? They became a millionaire overnight!

They’ll tell you to invest in companies — with little capital needed — and get ready to profit big time. Unfortunately, there’s no reliable way to get rich quick. Penny stocks are a surefire way to lose money. Never listen to those who are swept up in the potential percentage gains of a company’s 50-cent shares.

3. Buy the upgrade, sell the downgrade

Stock analysts might be my least favorite market players. Their salaries and decisions are closely tied to major investment banks, which can lead to a bias in their decision making. Allow me to catalogue some of my concerns.

Firstly, their decisions immediately affect stock prices — regardless of the veracity of the claims.

Secondly, many analyst ratings are a buy — all the time. Regardless of market changes, being on the sell side isn’t rewarded within investment banking companies and predicting a negative downturn is inherently risky when the market tends to go up.

Thirdly, they frequently make positional shifts without lowering prices. For example, let’s say Netflix is 95.90 per share today. A stock analyst might downgrade their position to sell, but keep a $105 price target. So, as an average investor are you supposed to hold onto that position or sell it?!

For most investors, these recommendations don’t make much sense. And trading off of them is an acknowledgement of a “rational” market. But the markets are anything but rational. Emotions constantly affect market capitalizations, and these analyst ratings fail to capture passion.

4. The entire market is going to collapse

Every day, week, month, and year there’s another threat to market returns. Maybe there’s a terrorist attack, climate change, mortgages bubbles, credit card debt crashes, unexpected bankruptcies, etc. All of these events can cause market disturbances, and even more, market mavens peddling “end of days” hypotheses.

In 2009, a powerful documentary came out called Collapse. The film interviewed a charismatic man named Michael Ruppert. He speaks emphatically about the concept of peak oil and how he alone predicted the market crash of 2008.

That’s right, Ruppert, of all men, predicted it all! And when the movie was published, most of the American public was convinced oil would forever escalate. It sat around $70 to $80, and would soon go to $100 per barrel. Ruppert was considered a genius.

His prediction was that the economy would collapse and we’d have to change our why of life — drastically.

But it never came. Instead, oil markets plummeted over the last seven years since the documentary, and Ruppert… well, he died by suicide in 2014.

Investors and abstainers frequently entertain these end of days ideas because it justifies wild investments in commodities or a wholesale avoidance of the stock market. Both decisions put portfolios in peril. Best to keep a moderate perspective and diversify your portfolio.

Everything We Learned About Investing Was Wrong. That’s Why We Need Betterment.

By Frugaling 11 Comments

What I learned about investing from my grandparents

As a young child, I loved pouring over the daily stock tables. Every day, I would scan over the newspaper to see how stocks moved up, down, and sideways. It was this fun dance of numbers.

Age-old wisdom about stocks was shared with me, too. Find some blue chip stocks and invest for the long-term, my grandparents said. They taught me about investing in great companies and pointed out stocks like GE, International Paper, IBM, and Wells Fargo. But living through the tech bubble and mortgage crisis tainted my perspective — it wasn’t easy to digest that buy-and-hold strategy.

My Millennial status seemed to set me up for some strong investments at a young age. I had a knack for picking winners. I purchased Apple in the double-digits before multiple splits. I eyed Google, but didn’t have any money to invest around $100 per share. More recently, there was Tesla Motors, where I invested around $30 per share. I don’t often take to optimism, but these companies embodied a positivity for the future. There was hope in these companies. It was easy to invest.

While the preceding investments paid off, plenty of others failed. There were embarrassing investments that went totally south. Additionally, trading fees ate up gains and increased losses. When you only have a couple thousand dollars to invest, losing $10 per trade can be painful.

Eventually, companies started marketing ETFs heavily. Some even incentivized the purchase of ETFs via free trades. But the investment fees were often expensive and I needed to buy whole shares. If I didn’t have enough liquid cash, I wasn’t going to be able to buy one. The money would sit in a paltry savings account and dwindle.

I spent years at Vanguard Group. They’re friendly, available, and supportive to smaller investors. They’re customer owned and tend to have lower transaction fees (about $7 per trade). The big bonus was low-fee ETFs that could be traded for free. It was perfect, except that income fluctuations and whole-share buying restricted diversification.

You’ve been investing wrong, here’s why

This summer, I decided to read A Random Walk Down Wall Street. I heard that this was the ultimate, research-based, investment strategy book. The author Burton Malkiel outlined the major investment theories that market makers, advisors, and average investors used.

The book blew my mind and set me on a race to change my investments. Malkiel introduced fundamental ideas such as, the more an individual trades (frequency), the worse they perform (usually). So if you trade nervously throughout the market’s swings, you’re likely performing worse than the broader market (compared to the S&P 500). The author also noted that male investors traded more often than women, too.

Fundamentally, the entire book wrapped psychology, economics, and politics into one perfectly assembled masterpiece about investing. I felt like I was sipping from the fountain of youth and could finally understand why — despite some good investments here and there — I was performing worse than the broader market averages.

Every time I thought I discovered a new pattern in the market or companies introducing breakthrough technologies, the entire market was too. I wasn’t the only one, and that screwed with my ability to profit from reason. And even more powerful, was this statement, “Even real technology revolutions do not guarantee benefits for investors.” That crushed my soul. How could I invest in life-changing technologies and companies, but not see profit and gain? The reason: companies are constantly growing and changing and falling from grace. It’s a constant cycle. To predict one company over every other competitor and up and comer is dangerous, potentially futile, and rarely as safe as investing in a broader average (a basket of stocks).

The book brilliantly analyzed humans’ use of heuristics and time-saving mental machinations that actually served to stifle our gains. Convinced that we are always right, we tend to reflect on our more positive investments and downplay the negative ones. We like to think we can “beat the market.” Being average is a bore, right?!

We grow up reading and watching articles and movies and novels that take us on an arc: introduction, rise, climax, decline, resolution. We grow accustomed to this style of story from a young age. And that can easily be applied (poorly) to the markets. We can look for climaxes and resolutions, where they might not be there. We can analyze past chart history to predict the future, but research shows that doesn’t give us an advantage over broad indexing. Despite searching for market patterns, rules to the market, etc., we overwhelmingly fail — time and time again — when compared to the averages. Our minds are tricking us.

As a species we love heuristics. Brain schemes allow us to save time and look for patterns. In nature, patterns help us stay safe — snakes are dangerous. TV shows follow traditional arcs: intro rise climax decline conclusion. An episode of Law and Order follows characters for one hour through a new problem. We expect a resolution. By 45-50 minutes in, we should find our culprit. When we apply these patterns and rules to the market, we tend to fail. Even if there are patterns, the markets quickly learn about them and destroy the potential use. When everyone knows the pattern, nobody needs it. The market smooths out the differences that the pattern once held. As much as our minds search for patterns and see them, they’re an evil chicanery. The market winners know this.

After reading all the books conclusions, it was like getting smacked over the head with a large frying pan. I felt dizzy and sick. Why hadn’t I been given this knowledge prior to this date? Why had I been allowed to invest on my own, without any research understanding of market behavior?

I was investing all wrong. It was costing me money (in fees, lack of diversification, and portfolio performance) and time (researching different investments, ETFs, and scanning for proper diversification). After reading the book, I couldn’t help but look for a better way.

How to easily, affordably diversify

Betterment allocation — *Betterment allows investors to easily diversify and allocate.*

Over the last five or so years, there’s been a torrential rise in robo-advisors. These are companies that invest the money for you, with little overhead and fees. Additionally, they use the market theories introduced by Burton Malkiel’s book and apply it to your investments. Instead of staking claims on individual stocks, which are prone to heavily volatility (read: risk), they broadly diversify across sectors and areas of the economy. The intention is to keep risk minimal, while maximizing performance.

The research is clear: low-fee diversification via ETFs is the best option for most investors. Moreover, when it’s managed and invested for you it cuts down on day trading and psychological biases. Numerous companies have sprouted up to take on the challenge. The most popular robo-advisors tend to be Betterment, FutureAdvisor, Schwab’s Intelligent Portfolios, and Wealthfront. Each provides different fee structures and diversification practices. It’s important that you select the best one for your financial needs.

Recently, I wrote about how it is hard to save when interest rates are this low. It’s pushed the stock market higher, but left savers in the lurch. The average interest rate on a savings account is 0.06%, while inflation rates generally stay around 1-2%. That means you’re losing money by keeping it in a savings account.

With little disposable income or money available to invest, I wanted a robo-advisor that would provide all the diversification I needed, with few fees, and the ability to invest immediately — without a minimum. That’s a tough bargain, right?

After considering all these factors, Betterment was the clear winner. Let me tell you why.

Betterment marries technology and market knowledge to provide a low-cost choice. They provide three brackets for users: 0.35% (below $10,000), 0.25% ($10,000-$99,999), and 0.15% ($100,000+). When you have less than $10,000 invested, like me (for now), that 0.35% management fee is assessed — regardless of returns. Thankfully, that’s comparable to all the current robo-advisors right now (note: Schwab’s Intelligent Portfolios don’t charge a direct fee, but they grab your interest in a forced cash quantity — 6% of the portfolio).

My prediction is that these fees will precipitously reduce over the next 5-10 years. The technology will clearly be very competitive and adaptive. Any company that continues to charge a lot will be priced out of the market. Competition will be extremely helpful in this area.

Here’s what I like about Betterment:

No minimums

There are no minimums for new accounts. Thankfully, simpletons like me can start with $100 and invest over time. This is especially helpful for irregular — month-to-month — incomes. Let’s say I make $2000 this month, which provides $1000 to invest with (rounding for simplicity), I can direct that $1000 into Betterment. But if I can’t rely on that amount, and I make $1100 the next month, I can manually transfer in $100 instead. The only minimum you need to meet is $100 invested per month until you reach $10,000. Once you reach that level, you reduce to 0.25% in management fees and $0 minimum deposits.

Fractional shares

This really sets Betterment apart from the rest of the pack. Normally when you invest, you need to buy whole shares. That means if there’s an ETF that costs $125, but you only invest $100, it won’t be purchased. Unfortunately, uninvested cash can hurt your potential gains. Betterment allows you to purchase fractional shares of every ETF they invest in. Your money is always working at full capacity!

Goal-based investing

Betterment accounts — *Betterment allows you to have specific goals and accounts. Then, you just need to follow their advice!*

Psychologically, humans suffer without clear goals. With retirement and other long-term goals (vacations, cars, homes, etc.), it’s tricky to understand how best to allocate funds. How much do you really need to invest in your Roth IRA to maintain your current standard of living? How much to improve it? How much if you cut back a bit? This is where Betterment shines. The company has designed beautiful graphs customized to your needs. For instance, I’m saving to move away from Iowa City right now. I estimate that I’ll need a couple thousand dollars when it comes to interviews for jobs and moving and finding a new place to rent. That all costs sizable sums, and I don’t dare consider debt. I estimate the time until completion, and Betterment provides an initial deposit and regular monthly contribution to meet the goal. Simple, as any financial advisor should be.

Smart rebalancing

The maintanence of a diverse portfolio is one of my least favorite activities. Let’s say I want to be invested in 90% stocks and 10% bonds, but the stock market has improved and bonds have lagged. Your stock position might represent more than you allocated. That requires you to sell a portion of the stock and reinvest elsewhere to regain balance. This can be time-consuming and tax-laden. Thankfully, Betterment handles it automatically. If your portfolio “drifts” 5% from its intended allocation, they’ll rebalance for proper diversification. Additionally, they’ll minimize any tax implications associated with the activity. That’s one of the hardest parts of managing your own portfolio.

Tax-loss harvesting

For those in the big leagues with lots more money than me, you also could benefit from tax-loss harvesting. Essentially, the portfolio will sell off your losses so that you can have a tax writeoff and invest in a comparable stock. Without getting into the weeds, that’s a really good thing as you want to prevent “wash sales.”

Behavioral change

This aspect has nothing to do directly with money. Since my shift to Betterment, I’ve noticed I’m calmer and clearer about my investments. I know how I’m invested and why. Likewise, I have confidence in the market principles that are used. Whereas individual stocks can make you go wild — needing to buy and sell all the time — this highly diversified portfolio provides comfort.

Next-day investments

Another essential aspect for any company managing your money is rapid investment of deposits. Betterment invests all your deposits the next day. With that turn around you don’t miss the market’s moves, and can quickly benefit. Numerous companies require cash to be held about 3-5 days before it’s invested, and then you need to find ways to diversify it. Betterment does all the work for you.

Here’s what I dislike:

No direct transfer from brokerage to IRAs

This is a pesky rule, but Betterment does not allow any cash positions. Therefore, to transfer money from a brokerage account in the company to an IRA, you need to withdraw the funds and redeposit them through your bank account. That takes a lot of time, in some cases. For instance, if I want to invest $500 from my brokerage to Roth IRA, it’ll take about 1 week or more even though Betterment already has all my funds.

No progressive fee structure favoring poorest

I’m disappointed that no robo-advisor’s fee structure is preferential for those with less. It’s a universal problem for the industry, not just Betterment. Still, I’d like to see the process of investing and taking charge of your future be easier for everyone involved. Those with $100 per month or less to invest shouldn’t have to pay more than those who invest $1000.

No manual cash positions

Sometimes, especially near retirement, it can be helpful to temporarily have cash or cash-equivalents in your account. Unfortunately, Betterment does not provide space for cash positions. They note that it goes against their entire premise and philosophy to allow pure cash positions. I understand their rationale, but it’s scary not being able to run for cover (you have to withdraw to your bank account to be in cash).

No expected returns presented

Instead of presenting expected returns from your portfolio allocation of stocks and bonds, Betterment provides predicted totals. As a novice, it would be helpful to see gains in a percentage form. That way I could compare portfolio allocations to other types of investments.

No real estate exposure

Lastly, Betterment doesn’t seem to provide real estate exposure through something like Vanguard’s REIT ETF (VNQ). Burton Malkiel suggested that some amount of nearly every retirement portfolio should have real estate exposure because they’re a safer place for higher yields. I would tend to agree, especially since the population growth rate is very strong in America.

After I read Malkiel’s A Random Walk Down Wall Street, I realized I needed to take action. But even before that book, I wanted something that would minimize my time spent researching ETFs and strategies and individual companies. Betterment has been the perfect solution, and a wonderful way to concentrate on what really matters: those around me.

I Have Zero Business Degrees

By Frugaling 13 Comments

What are my credentials?

Frugaling is a personal finance website where I regularly talk about financial concerns. I provide advice to save and make money, editorialize social justice issues, and argue in favor of minimalism over consumption.

But you might be wondering what credentials I have to proffer this help. Well, that’s a funny thing: I don’t have any. I didn’t get a business-related degree — there’s no formal finance education or economics indoctrination. My words are informed by something greater, and my hope is that they’re not the rote, memorized drivel that many financial advisors spout.

As a kid, I always thought I’d pursue something in finance. In fact, I want to tell you a little story from high school. It was there that I decided that to pursue a financial career path would leave me deeply unsatisfied, but my passion for personal finance never stopped.

Sam, you’re on the line!

I was giddy, but tempered in my high school science course. In about 10 minutes I’d ask my teacher to step outside and make a phone call.

My battery was fully charged, but I had to find a better signal. There was a field, away from the building, that provided a comfortable amount of strength. I dialed the number; I believe it was somewhere in New Jersey. I stayed on the line for what seemed like an abominable amount of time.

Occasionally, a pre-recorded voice piped up, that encouraged me to stay on the line. Then, I heard Jim Cramer’s — host of Mad Money on CNBC — voice and he shouted in my ear, “Sam from Golden, Colorado…” I melted with nervousness, but miraculously stated a ticker symbol (which I cannot remember) for a stock I was interested in.

Stocks were more important than classes

My latter high school days were filled with these moments. While fellow students studied diligently for their ACTs and applied to elite schools such as Duke and Stanford, my time was spent reading, trading, and watching the stock market. Because I was under 18, I forced my mom to co-sign and create a custodial account on an online trading site. I was hooked, and I loved the adrenaline.

Numbers pulsed through me, and I would binge on stock charts for hours. I hogged library computers and printer time to map them. In hallways and breaks, I drew lines on the charts, and practiced what I saw in books and television.

As an autodidact, the stock market provided an endless supply of data to be analyzed and understood. And the spoils went to the most educated people. I wanted to be one of them.

One form changed my degree, life

College was the path I was expected to follow. While my parents and grandparents never “forced” that path, it was strongly encouraged. The university life was where people went from good to great. I was open to that potential.

I applied to two colleges. The one I wanted to go to, Colorado State University, accepted me, but didn’t directly admit me into business. My less-than-stellar grades and contempt of mathematics meant that I would be an “open-option” business student until I proved my competence via good grades.

Prior to departing for Colorado State, there was an open house session. I attended one event geared specifically towards open-option students. For one hour, an advisor talked about academic success and finding your purpose in college.

I remember rolling my eyes, as the cynic in me dreaded the activity to come. We were split up into groups and then given about 10 minutes to complete a form and talk among the members.

The form asked us some simple questions, but one stuck out; it read, “How would you use your degree?” Despite the stupidly simple question, I had not really thought about this question before. I saw a response, “I want to help others.” Then I thought about my business degree — something wasn’t quite right.

I went to my advisor as soon as school started and asked to switch to psychology. There, I envisioned being able to listen and talk with others through their problems. That would be a degree to “help others.”

The psychology of money, spending, and society

After undergrad, I applied to graduate school and got into a counseling psychology doctoral program at the University of Iowa. I still wanted to follow the goals set forth in that open-option day. But in the back of my mind I recognized that investing and money issues still held great interest.

I still invested and read everything I could get my hands on regarding the stock market and business. I changed career paths, but my intrinsic passion for personal finance lingered.

As my own debt and spending spiralled out of control, I started Frugaling to right my course. It worked. I paid off about $40,000 of debt in about a year. I completely revamped my life — now incompatible with wanton spending and extravagances.

But I also started Frugaling as a perfect combination to meld my converging interests. I found that people’s (me included) monetary issues were closely linked to psychological concerns, distress, and stressors.

Psychology and business weren’t divergent topics. Additionally, I realized that most financial gurus blamed personal responsibility and character flaws on poverty, bankruptcy, and inadequate financial planning. There was room for a different voice — informed by psychological concepts and real counseling work with people suffering.

I’m not a financial-affiliated spokesperson

Over the nearly two years that Frugaling has been around, I have become an increasingly more passionate advocate for the underdogs. Financial markets are deeply unforgiving and unequal. People need to stand up and help others across diverse, multicultural backgrounds.

I ask you not to trust me for my financial degrees and letters after my name. I ask you not to trust me for how much money I’ve made for other people. I ask you not to trust me for being personally wealthy. I ask you not to trust me for my reputation (or lack thereof).

All I ask is that you consider the possibility that financial voices of reason come from those outside that insular world. I’m here to stand up for those who’ve been drowned out for too long. And I’m excited to continue building an audience (you included) that is inspired into action over social justice concerns and reducing consumption.

I Am Jason Vitug, Founder Of Phroogal, And This Is How I Work

By Frugaling 7 Comments

Over the last couple months I’ve interviewed a growing number of top bloggers and writers to get their input on personal finance issues (e.g., the founders of Budgets Are Sexy, The Broke And Beautiful Life, Frugal Rules,Debt Roundup, and Modest Money). Today, I have another terrific interview!

Jason Vitug is the founder of Phroogal.com. He worked in the financial services industry for nearly a decade before he founded Phroogal. His website features a host of personal finance tools and a specialized search engine for financial knowledge. On top of starting this resource, he also maintains a popular blog, too. Jason’s definitely one of the top personal finance writers on the Internet. Thanks, Jason!

What inspired you to begin Phroogal?

I worked in financial services industry for close to a decade — most recently as an executive for a credit union in Silicon Valley. It was the years working in banking and exposure to the technology startup world in the Silicon Valley that converged to bring life to Phroogal.

At the credit union, I was responsible for raising awareness to the benefits of credit union membership and I strongly felt financial education would be a key differentiation. I traveled around the country and championed workplace financial literacy at various Fortune 500 companies.

Afterwards, I decided to take a break and clear my mind. I chose to travel. I ended up backpacking around the world for 12 months. I explored 20 countries in 12 months in 2012. It was in my sixth country on top of this 8th century temple: I thought, “I’m living my dream. Why was I the only one here?”

Eventually, as I continued to travel, I wrote down ideas. The epiphany I had on top of the temple began to make sense. It wasn’t about the amount of money one had — it was how one used money to live life rich. It boiled down to education. The more you know about personal finance the better financial decisions are made to support one’s dream. Then, I set out to change that and build Phroogal.

How did people (friends, family, etc.) react when you first started?

My family and close friends were very supportive. They’ve seen me achieve many of my goals; such as, finishing my MBA, becoming an executive before the age of 30, and backpacking around the world.

They were excited that I wanted to finally do something on my own that had significant potential to help millions of people including them. Additionally, my old coworkers were very supportive. They cheered me on when I announced what I was doing.

What was your experience with design, code, web work prior to starting your site?

I’ve dabbled in websites before, but had limited knowledge of HTML. However, in my professional career I was part of many projects that involved application development. My job at the credit union exposed me to design elements, more HTML programming, general user experience, and interface design. Marketing and business development fell under my supervision and it was important for me to understand the full capabilities of program languages and design to get the most optimal results on marketing campaigns. I taught myself and participated in as many free webinars. At first to learn the lingo; eventually, to know what was possible.

What advice would you give to those thinking about starting their own site?

It takes a lot of time and preparation to get it right. But, getting it right doesn’t matter if you don’t start.

Have a vision. It’s also important to develop the mission and set the goals of your website. Understand the problem you are trying to fix and the solution you’re offering. Then, start thinking about how you’re going to execute on that solution and what features or tools are needed. How you go about realizing your vision will change so be open to different opportunities. You’ll discover what your target market actually wants and a better way to deliver it.

Work hard and then work harder. It’s not a “set it and forget it” or “if you build it they will come.” It’s not going to be easy, but it can be as rewarding as you want it to be.

How do you make money from your site?

Currently, we aren’t making money from the website. I have a long term vision I am working towards. I had the opportunity to monetize the website because of the traffic we have but it began to take us off our mission.

My mission is to solve financial incapability and illiteracy. I don’t want to make a quick buck and take me off course. For now, the focus is to grow the knowledge base and users.

Jason Vitug of Phroogal — Jason enjoys a beautiful white sand beach, while drinking from a coconut and eating mangos. Amazing!

What do you think you’ve learned from your readers and fans?

Our community really loves reading personal stories around money. I started out blogging by answering questions without much personal anecdotes. I thought quick, short answers would suffice but people remember stories and they can take the most important pieces and incorporate into their personal situations.

How can somebody in lower incomes best overcome financial hurdles and prosper?

Having less income has more challenges but increasing that income doesn’t change financial situations. It only grows accordingly. When I was traveling around the country I would meet production employees making less than $40,000 a year who owned their home, had savings and no debt. On the other side, I would meet senior level folks who made $250,000 a year but was in debt for $600,000. So, who is wealthy?

The best piece of advice is become more knowledgeable about money today. Don’t wait till the “when I have more money” moment. Good financial habits lead to better decisions and better opportunities.

Who are your financial role models?

I grew up listening to Suze Orman. I liked her in your face and dramatic flair for money. As I grew older, I started listening to everyday people I would meet at my retail banking job. Everyone had some sort of financial situation or advice that I learned from and carry on till this day.

I’ve kind of learned hard lessons and took in whatever people shared with me. When it comes to investing, I look up to Warren Buffet’s philosophy by investing in things I understand. With philanthropy, I look up to Bill Gates in his mission on education and giving back.

What personal finance sites do you read?

I read a bunch of personal finance blogs. I think about 20 that I actively read and at times comment. On occasion I’ll read Daily Finance, Reuters or USNews. But, I’ve found my twitter feed to be a great source of discovering what’s trending today and what my connections are buzzing about.

What else would you care to share with the readers of Frugaling?

I want to leave off with saying how important it is to seek knowledge. Knowledge never gets old. It evolves. It’s really important to make sure your constantly seeking information that can better your situation. The first step in becoming more knowledgeable is by asking questions. They don’t even have to be the right questions to begin with but the more you do the more you begin to understand.

Check out Jason’s website here.