If at all possible be sure to save enough cash for 6 months of expenses in the event of an involuntary layoff or some other unforeseen event that can interfere with income. Always keep this cash in a low risk account, such as a savings or checking account.
Friday, May 29, 2015
Thursday, May 28, 2015
A dividend aristocrat is a company that has raised its dividend for 25 consecutive years. This gives a good indication of financial prudence on part of the company. However, always make sure you do your due diligence before investing.
Wednesday, May 27, 2015
Tuesday, May 26, 2015
As of this writing, the stock market is in a state of correction. To the long-term investor, it just means asset prices are getting cheaper.
Thursday, May 21, 2015
Wednesday, May 20, 2015
Anyone claiming to guarantee a high rate of return is probably lying, especially if they guarantee it over a short period of time. Any financial instrument that provides a potentially greater return than a savings account or Treasury bond is going to entail risk. Period.
Tuesday, May 19, 2015
Financial Thought of the Day May 19, 2015: Today’s Papaw Walterism—It’s Not What You Make But How You Save It
My Grandfather Walter Bias only went to the eighth grade but exhibited more financial wisdom than most people with an Ivy League education. One day he had this to say about saving, “Billy I’ve seen people who made $100,000 per year and not have anything and I’ve seen people who make $25,000 per year and had a good bank account for the people who made $25,000 knew how to save a dollar.” This quote may not be entirely accurate as my memory isn’t as good as it used to be.
I sure do miss him and people like him. He was part of dying breed.
Monday, May 18, 2015
In the realm of personal finance, an expense is any claim on your income. In the realm of business, it’s any claim on revenue.
Friday, May 15, 2015
Try to always save something if at all possible even if it’s a few dollars a month. It will help during the times you can’t.
Thursday, May 14, 2015
Tuesday, May 12, 2015
Revenue – Expenses =
Net Income when revenue is greater than expenses.
Net Loss when expenses are greater than revenue.
Monday, May 11, 2015
Whenever possible avoid any unnecessary debt. It is the compounding of wealth in reverse.