Rate of return of is one of the three most important factors that determine how much money you make investing. The other two are your expenses and your risk of loss, which are both closely related to rate of return. In our previous post, we discussed compound interest and how earning interest on your interest is […]
Compound Interest
Almost everyone has heard of interest. If you have a bank account, the bank probably pays you interest. (Even if it is a 0.000001% interest rate) If you have any debt, then you are likely paying interest on that debt. However, do you understand the effects of compound interest? Compound interest is the effect of […]
Do I need an emergency fund before investing?
One of the most common questions asked for those beginning to invest is: Do I need an emergency fund before investing? The Answer: It depends. In most cases, having an emergency fund before you begin investing is the ideal situation. This is the mantra waived by nearly all personal finance writers. Often, they overlook complex […]
What are bonds?
We’ve addressed what stocks are, and now it’s time to talk about the other most common financial asset that people buy: Bonds. So what are bonds? Definition: What are bonds? A bond is a debt contract. The person who buys the bond, buys the right to receive their money back at some later date, in […]
Budgeting for Investments: A key factor in your success
Budgeting for investments is critical to becoming a successful investor. Without a clear budget that defines how much and how often you are going to contribute to your investment portfolio, you will find it difficult to make continuous gains in your net worth. In this post we’ll discuss: The relationship between budgets and investing Automating […]
