Financial Thought of the Day February 26, 2015: Cash = Investment Opportunity

If you have plenty of cash over and beyond your emergency fund you can take advantage of stock market corrections when they occur by buying excellent publicly traded businesses on the cheap.

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Financial Thought of the Day February 25, 2015: Peace of Mind

Having money set aside for emergencies can put you at ease--at least when it comes to your finances.

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Financial Thought of the Day February 24, 2015: Calculating Wealth

Total Assets – Total Liabilities = Net Worth

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Financial Thought of the Day February 23, 2015: Saving = Freedom

Remember each dollar saved and invested means you are a small step closer to financial freedom.

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Financial Thought of the Day February 20, 2015: Building Your Own Pension

In this age of the dwindling pension it pays to save and invest all you can. It’s incumbent for people to build their own pension via IRAS, 401ks and savings.

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Financial Thought of the Day February 19, 2015: Breaking Down Your Expenses Revisited

If you take your total expenses and divide it by the number of paychecks you get in a year and if the expense per paycheck exceeds what you are taking in each paycheck—you are going in the hole.

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Financial Thought of the Day February 18, 2015: How to Go Broke

If you spend more than you earn you will eventually use up all of your savings and then you will go broke except when you get your paycheck. If you are broke the only way you can spend more than you earn is to go in debt and that’s whole other problem.

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Financial Thought of the Day February 17, 2015: The Basic Formula for Wealth Building

In business: Revenue - Expenses = Net income or Net loss (Depending on whether nor not expenses exceed revenue)

Personal: Paycheck – Bills = Discretionary income or loss (Amount you have to save [or spend] or the amount you have to draw on savings).

Personally I prefer the first option.

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Financial Thought of the Day February 16, 2015: Another Reason to Save—Generator Gas

If you lose power due to a snow storm, then you can use money from your emergency fund or savings to buy gasoline for your generator.

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Financial Thought of the Day February 13, 2015: Turn Consumer Spending Into an Investment Idea

Tomorrow is Valentine’s Day. You can turn your holiday spending into an investment idea—research publicly traded candy companies to see they are worthy of investment.

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Financial Thought of the Day February 12, 2015: Know Your Financial Habits

Always know how much you spend and on what. This is one of the keys of living within your means and building savings.

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Financial Thought of the Day February 11, 2015: The 10% Method Revisited

One saving strategy is to pay yourself first. Set aside 10% of every payday before spending anything else.

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Financial Thought of the Day February 10, 2015: Saving Takes Discipline

Saving involves spending less than you earn. That means not buying stuff you don’t need on a regular basis.

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Financial Thought of the Day February 9, 2015: Investment Income—Easy Money

When you purchase a financial asset such as a stock it has the potential to go up in value. It also generates income in the form of dividends. For those of you who are more risk adverse, putting money in a savings account or a certificate of deposit creates interest income. These types of income streams are money you don’t have to work for. The money and investments are working for you.

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Financial Thought of the Day February 6, 2015: There Does Come a Time to Sell

I will always advocate investing for the long-term. Commission and/or taxes eats into your returns when you day trade. Not to mention that it turns your stock brokerage account into a virtual gambling casino. However, sometimes you need to sell your ownership stake in a publicly traded business when the fundamentals are no longer sound and when you need to fulfill a life necessary expense such as retirement and education for a child.

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Financial Thought of the Day February 5, 2015: Invest In Yourself

In order to save and invest you must first spend less than you earn. In order to do this it’s important to always embrace education. This will make you more marketable. Being more marketable makes it easier to find a job that will enable you to save and invest.

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Financial Thought of the Day February 4, 2015: Never Give Up On Saving

Never give up on saving. Setting aside $50 per month is better than going in the hole on a monthly basis.

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Financial Thought of the Day February 3, 2015: Dividend Reinvesting

Dividends add up over time. Reinvesting them can add hundreds of percentage points to your investment return over time.

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Financial Thought of the Day February 2, 2015: One Good Reason to Invest in the Stock Market

According to Moneychip.com the stock market has given investors a 12% annualized return from January 1, 1980 to December 31, 2014. Savings accounts typically yielded between next to nothing to around 3% from the late 80s and beyond.

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