The Financial Triad

I have been thinking about personal cash flows lately, and where spending energy has the best odds of producing good results. It seemed to break naturally into three areas (in order of decreasing importance):

1. Earning a good income (by working)
2. Being a good consumer
3. Being a good investor

Once people reach retirement, number one drops off, although having a steady income stream in retirement is important. There is a lot of time and energy spent by people to improve their work skills, and there is a glut of information on investing, but probably not enough good information on being a good consumer. Spending wisely can pay off a lot better and more consistently than searching for the ideal trade.

With that in mind, I've added a link to Clark Howard, a popular consumer advocate who has a radio program and pretty good web site. I certainly have big disagreements with his conventional investment advice, but I think he does a great job discussing consumer issues, quality, deals, and more. I certainly find him sincere and earnest in providing advice.