11 March 2019 FT — Articles to Read

11 March 2019


Question: According to MSN: Money, what are 30 money mistakes you are probably making and how to avoid them?


UK lenders told to triple liquid asset levels as buffer against Brexit turmoil – Pg. 1

–          Some lenders much now hold enough liquid assets to withstand a severe stress – when banks stop lending to each other – of 100 days rather than the normal 30, under rules brought in late last year by the BoE’s Prudential Regulation Authority, …

–          Banks are also being forced to model their balance sheets on the assumption that they will not be able to swap sterling for dollars, on the basis that some were shut out of being able to exchange currencies for several days during the financial crisis

–          Experts predicted that the tough PRA requirements intended to force banks to hoard easy-to-sell assets will be eased nearer March 29 if the likelihood of a no-deal Brexit increases so lenders can draw upon reserves they have amassed


Norway’s investment cull leaves oil majors shaken but not yet stirred – Pg. 8

–          With $1tn under management, the Norwegian oil fund is the world’s biggest sovereign investor, owning equity stakes between 1 and 2.5% in all the supermajors

–          On Friday it said it would divest from smaller exploration and production companies as a means of diversifying Norway’s oil-rich economy’s exposure to the economy

–          …while the largest integrated companies were granted a reprieve, justified by vast refining and trading capabilities that could insulate them should the long-term future of oil demand growth threaten crude prices, Norway has also made clear it expects them to do more


Answer: (1) Dining out too much (Prof Note: I had lunch with my good mate Anton S. yesterday, Saturday, and the bill was $64 with no alcohol including tip); (2) Not returning or exchanging unwanted purchases (Prof Not: I am headed to Lowes this afternoon to return unused product for a renovation); (3) Taking a vacation you cannot afford (Prof Note: I hear so many stories of angry people at the Four Seasons Nevis.  Most I attribute to the cost and their inability to easily afford the pricetag); (4) Paying too much in banking fees (Prof Note: Ask my bank…my favourite quote: “Fees are theft, interest is a cost of doing business!”); (5) Paying for subscriptions you do not use (Prof Note: I am considering reducing my credit cards to address this very issue); (6) Making ill-timed splurges; (7) Overspending in general; (8) Overspending on gifts; (9) Going house poor (Prof Note:Nearly 12m US households spend more than half their income on rent); (10) Carrying a credit card balance; (11) Neglecting retirement; (12) Playing it too safe in the long term; (13) Letting emotion undermine investment decisions; (14) Not having a Will (Prof Note: My entire family was murdered due to their poor estate planning!  Having a Will and a proper estate plan is literally a matter of life or death); (15) Lacking insurance, or lacking enough; (16) Not having an emergency fund; (17) Over-reliance on benefit programmes; (18) Not paying down debt (Prof Note: Remember there is good and bad debt); (19) Not taking required minimum distributions; (20) spending for rewards; (21) Not haggling (Prof Note: Never hurts to ask!); (22) Having only one job (Prof Note: The side hustle is critical!  At least always have the ability to hustle on the side!); (23) Falling behind on payments; (24) Using credit cards for everyday expenses (Prof Note: I actually do not agree with this at all.  Rack up the most reward points possible but always be fiscally disciplined); (25) Borrow money from friends and family (Prof Note: First source of funding for first-time deal-makers is F&F money); (26) Quitting your job without a plan (Prof Note: Mental health is important.  I am a believer that if you are that miserable…QUIT!); (27) Stay at a dead end job; (28) Not setting a budget; (29) Never setting financial goals; (30) Neglecting to set up a financial plan