I think insurance is like a lot of other investments. I have earthquake insurance. It does me no damn good if we have a little shake and the chimney falls off my house. however, if the big one hits --I have enough money for a house. not the sma e house - not even a whole house - but enough that I have a start. of course, the damn will break and there will be a flood and nothing will be covered .....because all damage will be flood damage not earthquake damage.

1. Who actually plays Monopoly long enough to lose? I always got bored before it got that far.

me

I've played Monopoly to conclusion and it is very satisfying to win.

Please tell me it has never been published.

It has not and would never be without a lot of editing. I think his advice is sound but the writing is offensive.

3. Your friend appears to assume that everyone on the planet is nimble and logical in their financial dealings, which is demonstrably untrue. The emotional exaggeration of risk is a nice, built-in brake on the headlong self-destructiveness of the impulse-buy.

I don't think he assumes people are nimble and logical. To the contrary he's trying to address their irrational fears. I think he rightly points out that money moves in a very logical fashion. That is, people will maximize their earnings, and if you don't somebody else will take advantage of you. Seriously, I think it comes down to that. Some people will get very rich because they bothered to learn finance, and most people will lose money they could have because math scares them. Or they don't want to think about it.

4. I think the object lesson of the last year's financial shenanigans has been: use undue credit in haste, repent at leisure. And, I mean, undue credit is like mold on cheese, these days. One might even call aversion to risk somewhat of a virtue, especially where house-flipping in South Florida is concerned.

I don't think he's talking about the credit in the housing and loan speculation. He's just talking about readily available credit that any graduating college student would have.

Seriously, there aren't many "financial emergencies" that $7,500 wouldn't address. That will fix your car or repair your roof. On top of that you probably already have car insurance and insurance on your house. Etc.

roof repairs are closer to 10,000- 20,000 ( assuming worse case scenario)

The only time I was actually winning at Monopoly, every one else playing decided to quit.

I'm on the building committee for rebuilding my church that burned, which was fully insured for the replacement value. With changes in code that are supposed to be covered but aren't, problems with the site, and the amazingly fast inflation on building materials, it looks like the money we have, including both insurance and an outpouring of donations, might get us about half the building.

roof repairs are closer to 10,000- 20,000 ( assuming worse case scenario)

Nonetheless, you have house insurance, no? Enough to cover that? So that's money you've already invested in addressing that issue.

If he wanted to publish it,he'd need to be...friendlier or something. People don't like hearing that we are stupid. Even if we are. Which on this issue, I'd have to admit. Though it's not like I get to practice.

ahh.. you are a assuming the roof needs to be replaced due to storm or fire damage. the other reason you replace a roof - age. Insurance doesn't cover that. and if you let the roof get too old - and you have a leak that damages your stuff - they might replace the roof but not your stuff or even the other way around.

Just skimming now. I'd say in theory I agree with David's friend, however, not everyone has easy access to cheap credit or knows how to invest wisely. And both make a huge difference in any consideration of what to do with extra money.

Also, seekrit message to David: you have the cutest baby ever!

To get back to Kristin's question. I think with things like that you should always ask yourself, would I choose this situation if presented with it? For example, many people say you shouldn't pay off your mortgage early even if you have extra money because you earn a better return by investing. Well, if you didn't have a mortgage, would you borrow on your house just to invest? Probably not, because of the risk. And that is really the same decision, or should be.

So, if you got a bonus of $5000 tomorrow, would you pay off your credit card, or stick it in a savings account?

So, if you got a bonus of $5000 tomorrow, would you pay off your credit card, or stick it in a savings account?

One grand in the savings account, one grand for the headshots and v/o reel reproductions, three grand on credit cards.

Or possibly all five grand in the savings account until I switch jobs and then the above.