In this article, I introduce the concept of dividends. Dividends are often stated as a major source of investment return. In this post I’ll address: How dividends are commonly portrayed Define dividends Show an example of the reality of dividends Address how dividends can be deceiving How dividends are often portrayed (“Free Money”) Dividends are […]
Rate of Return – The difference between $2k and $1.4 million
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 […]
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 […]
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 […]
Investor Type: The most important investing choice
My previous post defined investing. The purpose of this post is to help you figure out your investor type. Finding out what type of investor you want to be, is the single most important step you have to take when becoming an investor. Sadly, most people never even consider investor type. The result is that after […]
