The great benefit of education is to learn the "easy way" instead of the "hard way" Here is an example that was all too common in the great real estate crash.
Everything happening to Carl Richards is so ironic, in a bad way. He ends up getting a job in finances, when he didn’t even know the basics of the stock market. He also ends up getting a 100% loan, not realizing that his perfect financial status would be basically ruined. As a financial advisor, it would be expected that he would understand t\he risks of giving himself up to the bank. He has the amazing advantage of learning from mistakes of others, but he made way too many mistakes of his own. Richards got stuck with all that was adding up. His income may be strong, but expenses are always overpowering. Especially with business and excess personal spending, families can fall deep. The real estate crash was a major set back to the entire economy, and jumping back is never easy. This blow to the economy left a lasting scar, keeping the housing business slow and almost unprofitable, compared to what was a few years ago. People often think they are invincible, which is a horrible mistake. Crisis does not strike with warning. And though Richards was lucky enough to get some help along the way with releases from mortgage and short sales, this isn’t possible for everyone. It is so scary how anything can happen in your life, turning it upside down.
While reading the article I was surprised and trying to figure out how Carl Richards was still providing for his family, when he lost his home. I think it might have been a mistake for him to leave his company that offered him the job in Las Vegas, and start his own buisness. he even said his income dropped 20% and living in the expensive area where he was living, didn't help. Richards talked about two of his friends that were having money trouble, but spent money on ski trips and therapist, which was possibly keeping them alive and sane. They were taking risks by spending their money on what they wanted or felt they needed, but it was keeping them alive and relieved them of stress and the situation they were in. I think if they spent money on those type of things while they were having money problems, then Richards could spend money also on recreational stuff. He's in a better situation now and if his friends took risks while being in debt then Richards could do it too. I thought it was a really interesting article and obviously very personal but it shows a lot I think. Pd.7 Jess
It is definitely easier to learn through education than learn by experiencing something the "hard way". Carl Richards became a financial advisor and even wrote a book about "doing dumb things with money", but it was a result of him getting in debt and losing his home. Carl Richards unexpectingly started a career by learning the "hard way".
I feel really bad for Carl Richards, because he worked very hard to earn the skills that he got in his career, especially since he was a financial planner. He also had a family which he had to support and couldn't. When he was reaching his peak, financially it started to drop out of nowhere and he didn't know what to do. His house was going to be sold, since he couldn't pay for it. It makes me realize that this could happen to anyone, even when they know what to avoid. Nobody could really hide. -Alyssa, Pd. 7
It's quite inspiring and I find myself awe-struck as I read through this. Rather than letting everything get him down and rule his life, he found a way to get past it. He succeeded in overcoming his problem and now advises others so they don't fall prey to the same outcome. It's moving to think he actually decided to take up such a job in a world such as this that literally screwed him over, but I suppose he understands just how cruel the world can be. He helps out and warns other people to not make the same mistakes as he did. --period 9 Pearl L.
Buying things on credit isn't always the best idea. The author of the article thought that it would be fine if he borrowed $575,000 (the price of the house in Las Vegas) because he had a solid income that was growing. He expected that as time went on, his salary would increase and the value of his house as well. As he mentioned, people in their late 20's were lining up to get into an open house. He wondered how all these people could afford paying for a $400,000 house at such a young age. They all bought on credit. Eventually when the real estate market crashed, all these people were screwed over. The costs of taxes, insurance, and many other things were rising while his salary was decreasing. I guess the moral of the story is not to buy on credit because you never know what's going to happen in the future; no one can predict the future by referring to current trends.
This article talks about the economy and how risk taking can result for the better or worse. It's ironic because the man was a financial advisor and yet he was making the same mistakes as an ordinary person. This proved that everyone makes mistakes. After all, we all want to part of the crowd. Borrowing money is easy and harmless. That is, until you go overboard. That's the problem when taking risks. You never know when something like the fall of the economy is going to affect you terribly. JeLi pd.9
This articles shows us how one careless finacial mistake can ruin your finacial future for the rest of your life. Carl Richard's is a finacial advisor that helps people work out their money problems, however, he himself has made many of those mistakes. In this aritcle we find out that he takes out a loan to pay off the full price of the house he bought. This obviously led to an amazing amount of debt. As one thing turn to the next, and he failed to nake his payments, he found himself in the worst possible situation. In this type of market, you have to be careful about every move you make, because one bad move will cause a snowball effect.
This article tells the story of a finanical consultant who ended up losing his house. This is a great example of risks, and how sometimes even when they don't seem too major, they turn out to hit hard as a result. In the world of money, nothing is secure. Even a financial consultant can use some consulting. This also shows how the best way to learn is from experience. The man explained that "I got better at what I do, but getting there wasn't much fun." This article demonstrates that one can only learn so much from books to carry them, and first hand experience is vital.
It is sad that the Richards family had to learn from their finical mistakes the hard way by loosing their home. It just goes to show a person that even though some people may be able to afford expensive property it doesn’t mean that another person can suddenly afford what they can’t afford to buy. Following the crowd because they are buying a hot ticket property in Vegas doesn’t mean you should try to buy a hot ticket property too especially if you can’t afford it. It is sad to think that Mr. Richard who is a financial adviser never sat down to calculate what it would take to borrow a 100 percent of the purchase price on his extremely expensive house in Vegas. He should have though it better out because as a finical advisor Mr. Richards of all people should have known that just because you are making money one day doesn’t mean you will be making money the next. As well as just because his income is growing doesn’t mean you will be able to afford everything you want to buy. Cori and Mr. Richards terrible mistake was rather then cutting back on their finances they just kept saying we will just make more money which is not realistic for most people. But, the collapse in the stock market like for most people was their epic down fall. People lost trust in stocks and Mr. Richard’s income started to slowly fall by 20 percent and all their bills just started to increase. And the Richard’s started to loose everything because as a result of their decrease in income they started to not be able to afford anything. As a result sadly Mr Richard and his family lost their expensive house in Vegas and moved back to Utah where 90 percent of his clients where.
The mistakes people make when they don't know what there doing. Its the reason why most people have jobs. He needs to understand his risks and take little details into account because in the long run they can end up costing you cash. His bad choices but him and debt and cause a snowball effect making it very hard for the Richard's family to pay off.
If anything, we have to learn that credit is cruel. This man borrowed a 100% on a house that was outside his paycheck becuase he was following the crowed. If he had just paid attention thte fact that he did not have the money to buy they half a million house, maybe he would have thought otherwise. We have to be wise and decide not to follow the crowd. Look at the hard facts not the trend or the gossip Joel Thomas Period 7
Everything happening to Carl Richards is so ironic, in a bad way. He ends up getting a job in finances, when he didn’t even know the basics of the stock market. He also ends up getting a 100% loan, not realizing that his perfect financial status would be basically ruined. As a financial advisor, it would be expected that he would understand t\he risks of giving himself up to the bank. He has the amazing advantage of learning from mistakes of others, but he made way too many mistakes of his own. Richards got stuck with all that was adding up. His income may be strong, but expenses are always overpowering. Especially with business and excess personal spending, families can fall deep. The real estate crash was a major set back to the entire economy, and jumping back is never easy. This blow to the economy left a lasting scar, keeping the housing business slow and almost unprofitable, compared to what was a few years ago. People often think they are invincible, which is a horrible mistake. Crisis does not strike with warning. And though Richards was lucky enough to get some help along the way with releases from mortgage and short sales, this isn’t possible for everyone. It is so scary how anything can happen in your life, turning it upside down.
ReplyDeleteWhile reading the article I was surprised and trying to figure out how Carl Richards was still providing for his family, when he lost his home. I think it might have been a mistake for him to leave his company that offered him the job in Las Vegas, and start his own buisness. he even said his income dropped 20% and living in the expensive area where he was living, didn't help. Richards talked about two of his friends that were having money trouble, but spent money on ski trips and therapist, which was possibly keeping them alive and sane. They were taking risks by spending their money on what they wanted or felt they needed, but it was keeping them alive and relieved them of stress and the situation they were in. I think if they spent money on those type of things while they were having money problems, then Richards could spend money also on recreational stuff. He's in a better situation now and if his friends took risks while being in debt then Richards could do it too. I thought it was a really interesting article and obviously very personal but it shows a lot I think.
ReplyDeletePd.7 Jess
It is definitely easier to learn through education than learn by experiencing something the "hard way". Carl Richards became a financial advisor and even wrote a book about "doing dumb things with money", but it was a result of him getting in debt and losing his home. Carl Richards unexpectingly started a career by learning the "hard way".
ReplyDeleteAlex K. Economics period 7
I feel really bad for Carl Richards, because he worked very hard to earn the skills that he got in his career, especially since he was a financial planner. He also had a family which he had to support and couldn't. When he was reaching his peak, financially it started to drop out of nowhere and he didn't know what to do. His house was going to be sold, since he couldn't pay for it. It makes me realize that this could happen to anyone, even when they know what to avoid. Nobody could really hide.
ReplyDelete-Alyssa, Pd. 7
It's quite inspiring and I find myself awe-struck as I read through this. Rather than letting everything get him down and rule his life, he found a way to get past it. He succeeded in overcoming his problem and now advises others so they don't fall prey to the same outcome. It's moving to think he actually decided to take up such a job in a world such as this that literally screwed him over, but I suppose he understands just how cruel the world can be. He helps out and warns other people to not make the same mistakes as he did.
ReplyDelete--period 9 Pearl L.
Buying things on credit isn't always the best idea. The author of the article thought that it would be fine if he borrowed $575,000 (the price of the house in Las Vegas) because he had a solid income that was growing. He expected that as time went on, his salary would increase and the value of his house as well. As he mentioned, people in their late 20's were lining up to get into an open house. He wondered how all these people could afford paying for a $400,000 house at such a young age. They all bought on credit. Eventually when the real estate market crashed, all these people were screwed over. The costs of taxes, insurance, and many other things were rising while his salary was decreasing. I guess the moral of the story is not to buy on credit because you never know what's going to happen in the future; no one can predict the future by referring to current trends.
ReplyDelete-Alvin Tse Prd.7
This article talks about the economy and how risk taking can result for the better or worse. It's ironic because the man was a financial advisor and yet he was making the same mistakes as an ordinary person. This proved that everyone makes mistakes. After all, we all want to part of the crowd. Borrowing money is easy and harmless. That is, until you go overboard. That's the problem when taking risks. You never know when something like the fall of the economy is going to affect you terribly.
ReplyDeleteJeLi pd.9
This articles shows us how one careless finacial mistake can ruin your finacial future for the rest of your life. Carl Richard's is a finacial advisor that helps people work out their money problems, however, he himself has made many of those mistakes. In this aritcle we find out that he takes out a loan to pay off the full price of the house he bought. This obviously led to an amazing amount of debt. As one thing turn to the next, and he failed to nake his payments, he found himself in the worst possible situation. In this type of market, you have to be careful about every move you make, because one bad move will cause a snowball effect.
ReplyDeleteVikram Reddy, Period 7
This article tells the story of a finanical consultant who ended up losing his house. This is a great example of risks, and how sometimes even when they don't seem too major, they turn out to hit hard as a result. In the world of money, nothing is secure. Even a financial consultant can use some consulting. This also shows how the best way to learn is from experience. The man explained that "I got better at what I do, but getting there wasn't much fun." This article demonstrates that one can only learn so much from books to carry them, and first hand experience is vital.
ReplyDeleteKara Curtin
period 7
It is sad that the Richards family had to learn from their finical mistakes the hard way by loosing their home. It just goes to show a person that even though some people may be able to afford expensive property it doesn’t mean that another person can suddenly afford what they can’t afford to buy. Following the crowd because they are buying a hot ticket property in Vegas doesn’t mean you should try to buy a hot ticket property too especially if you can’t afford it. It is sad to think that Mr. Richard who is a financial adviser never sat down to calculate what it would take to borrow a 100 percent of the purchase price on his extremely expensive house in Vegas. He should have though it better out because as a finical advisor Mr. Richards of all people should have known that just because you are making money one day doesn’t mean you will be making money the next. As well as just because his income is growing doesn’t mean you will be able to afford everything you want to buy. Cori and Mr. Richards terrible mistake was rather then cutting back on their finances they just kept saying we will just make more money which is not realistic for most people. But, the collapse in the stock market like for most people was their epic down fall. People lost trust in stocks and Mr. Richard’s income started to slowly fall by 20 percent and all their bills just started to increase. And the Richard’s started to loose everything because as a result of their decrease in income they started to not be able to afford anything. As a result sadly Mr Richard and his family lost their expensive house in Vegas and moved back to Utah where 90 percent of his clients where.
ReplyDelete-Taylor B
The mistakes people make when they don't know what there doing. Its the reason why most people have jobs. He needs to understand his risks and take little details into account because in the long run they can end up costing you cash. His bad choices but him and debt and cause a snowball effect making it very hard for the Richard's family to pay off.
ReplyDeleteMike Tennis
If anything, we have to learn that credit is cruel. This man borrowed a 100% on a house that was outside his paycheck becuase he was following the crowed. If he had just paid attention thte fact that he did not have the money to buy they half a million house, maybe he would have thought otherwise.
ReplyDeleteWe have to be wise and decide not to follow the crowd. Look at the hard facts not the trend or the gossip
Joel Thomas Period 7