No Diversity- A Common Investing Mistake

Are you looking to invest? Or even the other options to finding ways on returns of your money? Are you trying to find ways to make your money work for you? What is something that could go wrong? It’s simple.Failing to diversify you stock. Diversififying your stock means that you have enough money spread out over a lot of different things. Ideally, you want to spread your investment money over different asset, eg. cash, bonds, stocks, real estate, and maybe even something like precious metals or certain collectibles. The reasoning for this is simple. If one thing drops in value, this doesn’t mean the others will. So, if you have your money spread out through multiple things you won’t you’ll be able to weather something like stock drops a better. And sometimes things work in reverse. For example, it has been shown historically that when bonds do will, stocks have usually taken a dive. This is also seen in reverse. The problem arises when people don’t diversify their money very much. You can see this with important things, like retirement savings. A good example of this is Enron. Employees and stockholders were heavily encouraged to put all their money back into the company. People put their entire lives back into the company, and when Enron’s fraud was uncovered, these same people lost everything with no hope of getting it back. When you start to look into investing, 401ks, bonds, just remember to diversify. The more, and different you have, the more you will be able to bounce back if any one of the others drop or fails.

3 Banking Myths Busted

  1. Getting a raise that bumps you into the next tax bracket means you are taking home less money. FALSE! Moving into another tax bracket only means that you’re tax rate changes on those last few dollars you earn. Let’s say you are filing single and made $30,000 dollars and you get a new raise that bumps you up tp $33,000. The rate of tax on that $30,000 was 15% while your new marginal tax on $33,000 is 25%. The key here is the word marginal. The first $31,850 is taxed like it was at the 15% prior to your raise. Only the $1,150 that bumped up you up to the new tax bracket is taxed at the 25%.
  2. Having a long term balance on your credit card increases credit rating. Not true! Having a balance on your credit card and paying it off slowly only makes sure you are throwing your money away. The best way to increase your credit rating on a credit card is to pay off your balance in full every month. On top of this, you should only use a small percentage of your credit card, as this too plays a part in your credit worthiness.
  3. I’m too old and its too late to start saving for a retirement plan. Not at all! True, your nest egg won’t grow as much as a 20-year old’s due to longer compound interest. However, every dollar saved and invested gets your closer to your goals. Even if you are close to retiring, you won’t need your nest egg right away. Start putting money away now, and look into better ways to invest.

closer look

A woman was waiting at an airport one night, with several long hours before her flight. She hunted for a book in the airport shops, bought a bag of cookies and found a place to drop.

She was engrossed in her book but happened to see, that the man sitting beside her, as bold as could be. . .grabbed a cookie or two from the bag in between, which she tried to ignore to avoid a scene.

So she munched the cookies and watched the clock, as the gutsy cookie thief diminished her stock. She was getting more irritated as the minutes ticked by, thinking, “If I wasn’t so nice, I would blacken his eye.”

With each cookie she took, he took one too, when only one was left, she wondered what he would do. With a smile on his face, and a nervous laugh, he took the last cookie and broke it in half.

He offered her half, as he ate the other, she snatched it from him and thought… oooh, brother. This guy has some nerve and he’s also rude, why he didn’t even show any gratitude!

She had never known when she had been so galled, and sighed with relief when her flight was called. She gathered her belongings and headed to the gate, refusing to look back at the thieving ingrate.

She boarded the plane, and sank in her seat, then she sought her book, which was almost complete. As she reached in her baggage, she gasped with surprise, there was her bag of cookies, in front of her eyes.

If mine are here, she moaned in despair, the others were his, and he tried to share. Too late to apologize, she realized with grief, that she was the rude one, the ingrate, the thief.

By Valerie Cox in “A Matter of Perspective”
Submitted by Tom “The Colonel” Parker

We have all been cookie thief’s before. you have to take a closer look at the situation. In every story we think their has to be good guys and bad good guys. the world is not good vs evil all the time. Sometime people are just trying to get some cookies. I love this story because it paint the picture of how we can sometime be the “bad guy” if we don’t take a closer look at things. so if you are reading this and find yourself in a position that you do not want to be in remember this; if you enjoy the cookies who cares where they came from. Save money and spend time with people you love!

what is money worth

If you really think about it money is worth nothing. It’s paper, but we value it so much. Just picture if some one walked into a store with notebook paper and tried to buy something. It would make the new and some many people would laugh at such a ridiculous thing. Yet if you get down to it we do this every day with no issue. What is money worth, that really depends on who you ask. If you where to give a kid $200 dollars he would think he could buy the world. children have no concept of money so how much is it worth? money worth as much as you want it to be. Us adult everyday determine how much its worth by our actions. spending weekends and even working night shift to make more money. in my opinion money is option nothing more. the amazing thing about all of this is we can determine moneys worth. Question for you is what is money worth to you? Look at your actions everyday, why do you work so hard? If you gave kid you $200 what would he/she do with it. Have fun and give kid you some money sometime

Just one lazy day

It only takes one lazy day to change your week, your month, your year or life. money and life choices seem to be different but a lot of time they run hand in hand. Most bad thing don’t happen in one day but it can. Lot of time it happens like a making a snowball. One little thing at a time, then its a giant snow ball. from a snow drop to a snow ball to a unstoppable bolder. funny thing is small stuff adds up so quickly you don’t even notice. One day you are buying cheese burger to save time, next you are buying cheese burger every other day. The great thing about this is it also works in reverse to. If you start putting back few dollar day just a little bit at a time. Create the snow ball for your benefit. If you put back a dollar a day for every day in the year you will have $365. just doubling that number will give you $730. In two years $1460 and just keep letting it snow ball over and over. In a perfect world this is easy. The good thing is when you do small steps you wont even notice it.

15 Steps to Financial Succuess

  1. Spend Less than You Earn
  2. Pay Yourself First
  3. Insure Big Risks
  4. Know Your Numbers
  5. Understand Your Money Attitudes
  6. Invest Time and Energy Discussing Your MUSTS
  7. Invest in Stocks…if you can live without instant gratification
  8. Be Willing to Give Up Potential Return for Short-Term Needs
  9. Create a Spending and Savings Plan
  10. Delete Your Debt
  11. Establish Goals
  12. Live Within Your Means
  13. Diversify
  14. Plan Ahead
  15. Get Help!
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