Recently in General Life Skills Category

A September New York Times article argued that the key to "wedded bliss"  is a shared viewpoint on money matters and I couldn't agree more with the basic premise.  I'm sure you all know couples who couldn't be more different: she likes Prada and drives a shiny black Lexus, while he dresses like he just returned from Woodstock and eats peanut butter and jelly sandwiches 6 nights a week.  Big differences in marriage (whether they be about raising kids, time spent with family, or money matters) often lead to big arguments and, at times, divorce.  So, it's vital that successful partners have the same basic goals in life and can identify with the same "value proposition" (marketing speak for what makes a product special). 

In terms of couples with successful personal finance lives, they often follow a few basic tenants:

1.  Communication.  Do you and your spouse talk often about important issues?  Do you talk like adults about money, the kids, and how annoying certain family members can be at times?  If you don't lay things out and speak frankly, say, about how much money you'd like to be investing each month, then you're both not communicating.    

2.  Money goals.  Do you both have money goals?  Every couple should have similar thoughts on: how much money to save, what makes up healthy monthly, household, expenditures, how much to spend on Christmas gifts, how many lessons or after school activates the kids truly need, etc.  Simply put, your money goals need to have alignment.

3.  Process.  Do you and your wife have a plan in place for who is in charge of investments, monthly bills, home maintenance, etc.?  You can't reach any personal finance goals unless you have a plan in place with dates and who is in charge of getting things done.  In some ways, a marriage needs to be run like a corporation (sorry to all you romantic types!) and you can't have one employee doing all the work while the guy in Accounting sits on his butt all day.

4.  Have Fun and Make Sure Your Love Evolves.  It's always a good idea to invest in your love.  This means going out and doing special things on occasion or treating your spouse to a gift or a dozen roses.  Being cheap with your husband or wife is not a good move.  If your budget allows for a yearly vacation, maybe without the kids, then go and have fun (your marriage and life will be revitalized when you return).

5.  Independence.  I know some couples who are tied to the hip both in terms of finances and friends/social activities/etc. and this is not good.  I believe that married couples need to preserve some individuality, including attending events with close friends or just going out for a drink with a college buddy on occasion (it's ok to have some differences in your social lives).  On the money side, it's also important for both partners to have their own spending money (just as long as one partner is not abusing the privilege by making purchases from the web each night, for example.).  

I came across some old philosophy books in my study this morning and it got me thinking about the value of an undergraduate degree in philosophy.  And I can already hear the jokes, so please keep them to yourself!  ; - )  At first glance, a Bachelor of Arts degree in philosophy provides no real practical application in the real world.  After all, you will not receive any specific training that can lead to a job, are required to read esoteric texts, and will never arrive at a "right answer" during a final exam or short quiz.  So, why on earth are US colleges and universities struggling to keep up with the demand from students wanting to both take courses and major in philosophy?

As an ex-Philosophy major, I can tell you that my degree is invaluable and I would certainly study the same subject if I had to start all over again (I would maybe throw in a degree in Economics as well).  If we cut to the chase, a degree in philosophy provides the following benefits

1. How to read critically (i.e., a book, magazine article, newspaper, P&L statement, web traffic report, etc.).
 
2. How to write well. (this could be an email, letter, report, blog, or living will).

3. How to debate and speak in front of large audiences.

4. How to create impromptu arguments and analysis (this may be the number one business skill of all time and I'd hire someone with this skill set versus a Harvard graduate any day).

5. How to figure out what is right and wrong (ethics) and identify with different sorts of people and cultures (this is critical in the modern workforce, think how different your job is from what you see on Mad Men each week).

6. How to apply logic to any problem.

7. How to think strategically or see the "big picture."

8. How to think about a problem by deconstructing the big picture and looking at the details.

I could go on and on, but I think you get the picture.  A degree in philosophy is not a degree in electrical engineering; that is to say, the degree will not train you specifically to go out into the world and be an electrical engineer but it will equip you to do really well in the workforce by adapting to any work situation. 

Philosophy also provides excellent training for a professional degree.  Considering the benefits I stated above, philosophy majors score in the very top percentiles on the GRE, LSAT, and GMAT exams. "For example, in a recent GRE study, philosophy majors were ranked among the very top majors in their mean scores on the verbal, analytic, and quantitative components of the exam; in a recent LSAT study, philosophy majors had a higher mean score than even pre-law majors; and for recent GMAT tests, the mean score for philosophy majors exceeded that of any type of business major. Virtually no other major does this well on such a wide cross-section of standardized exams.(quote from the University of New Hampshire Philosophy Department web site http://www.unh.edu/philosophy/index.cfm?id=39F7EBE2-C029-7E5B-F1371DFC37778362)."

Did you study philosophy, let everyone know about your experience by commenting above.

There's something about Warren Buffett that makes me feel warm and tingly all over and it's not his net worth of $62 billion!  Rather it's a combination of his personality, habits, and life philosophy.   I first saw Warren Buffett on Charlie Rose (he and Charlie are very good friends) and become captivated with him from the get go (I remember thinking, how could this affable and happy Midwestern man be the world's richest person?).

Recently, I've started reading a new biography on Buffet by Alice Schroeder entitled, The Snowball: Warren Buffett and the Business of Life.  Schroeder was an insurance analyst that covered Berkshire Hathaway (Buffett's company that basically buys other companies) and she got to know Buffett well over a number of years, so they collaborated on a rather bulky biography.  Reading through the first couple of chapters got me thinking: if Buffett leads a frugal and thrifty life then why in the world isn't every other person in this country not living like him?  Buffett's habits and life philosophy are classic "Millionaire (or in his case, Billionaire) Next Door"; here's a little about how he lives his life:

Given that most of you will likely be interacting with family and friends on Thanksgiving Day, I thought I would offer some "how to" tips on getting along with your dinner companions:

- Be nice. Getting along with people is not rocket science.  If you're coming across as cold, snobby, and unwilling to engage in a conversation, you'll most likely be sitting by yourself watching some bad football game.

- Have a glass of wine.  I'm not advocating funneling a bottle of Cote du Rhone, but grab a glass of wine when you arrive and it will help you engage people in conversation and just make you feel relaxed.

One of my father's golden financial rules is to not buy what you think you need.  As I've said in earlier posts, my father is an incredibly crafty individual, though I didn't realize the full extent of his ability to improvise and save money until we purchased our own home.

As new homeowners most couples are eager to make home improvement and purchase stuff to help mend and repair a "new" home.  The intention to improve a home is a good one and should stay with the homeowner as long as s/he occupies the home, however the associated behavior to run to Home Depot or Lowes' for supplies, material, and equipment is questionable and potentially dangerous.

Sometimes it's obvious, but most of the time it's not.  What am I talking about?  I'm talking about how we, as humans, are comforted by following the pact or making decisions that everyone around us is making.  For example:

- We like buying Google stock because it helps us find things (there are alternatives) and the media loves Sergey and Larry.

- We like buying SUVs because they are safe (not really) and Bob has one in his driveway.

- We like buying Green because it helps the environment (not all the time).

- We like not saving much because easy credit is (once was) available.

- We like buying our own home because there's a tax savings (doesn't off set initial investment) and because we're told every American is entitled to one (not true).

Every time I travel to Europe (especially outside of the big cities) I notice that the stress level tends to be much lower than what we have here in the US (regardless of city or town).  Yes, big city folks tend to always be on edge (think of the typical New Yorker), but I've found folks from New Hampshire to Michigan and from Florida to Missouri to posses as much stress, albeit at a different level, than the typical city dweller. 

The whole thing got me thinking, can one really live a practical and cost conscious life if stress is present?  I'm not talking about occasional stress that is associated with a job or family, rather I'm talking about the constant stress that keeps you up at night or prevents you from enjoying the weekends or a nice meal.  

I used to work a pretty stressful job in a competitive industry and after a day at the office I didn't want to handle any of the practical living things I've been blogging about on Scordo.com; in fact, at the end of day all I wanted was a glass of wine and some food (preferably the kind that I didn't have to make myself).  Now, removed from the hyper-competitive industry and working a more sane job, I find time to cook, read, work on the house, and be with my family (all at the level that I want).

Do you know those people who need to spend money in order to have a good time?  You know, the folks who inevitably see a movie, go out for dinner, buy a new pair of pants, and buy a few books at Barnes and Noble every weekend.  Well, it's easy to fall into the trap of spending to put a smile on your face or occupy your weekends.  I, for example, was addicted to buying books for a period of time; I would often head to the nearest super-bookstore on a Saturday morning and spend a good 2-3 hours looking for a few books to purchase.  I would justify the $70-$90 expenditure as a good thing because it involved reading and learning new things, but I was still spending on something I could easily get for free (namely, books at my local library).  Here, then, are five "Instead Of X" scenarios that you can look at this weekend:

A college professor once told me that most adults finish all serious reading by the time they reach the age of 23.  He went on to say that most professions, even ones that require a four year degree, do not require the worker to engage in prolonged or critical reading.  And while I'm sure there are exceptions to the statement, I agree wholeheartedly with the professor's conclusion.  Ask yourself, for example, what was the last serious novel you read or the last time you read The Economist from cover to cover (that's Immanuel Kant on the left, by the way; he wrote a Critique of Pure Reason and should be on your reading list)?

Barack Obama's recent victory and political campaign got me thinking, what does it take to be a successful leader or manager?  More specifically, I wondered about what specific, practical, traits a person needs in order to motivate and change people's behavior?  Afterall, effective communications is all about influencing someone so their behavior matches what you're trying to get across.  Here are some practical traits all good leaders and managers must possess:

Perseverance