Investing: The Art Of Making Your Money Work For YouWritten by Margaret Marabella
There is a lot to know about investing. It all depends on what type of investing you are interested in as well. There are many different types of investment options out there. So what is investing, specifically?When you invest, you are paying in a certain amount of money that you expect to grow with time. Most investments are considered long term investments meaning you will not get your money back right away but if you leave your money in, it can multiply dramatically over time. Types of Investing: Real Estate Investing, Bonds, Stock Investing, Mutual Funds, 401K. With stock investing, many of younger investors see market as a way to get rich quick. They are quick to sell off stock that they have when it goes up or if they see it go down a little, they get nervous and sell it off. If they hold investment and ride it out, they are much more likely to see it grow. If you are going to be investing, key to success is asset allocation. You need to vary your assets by investing in more than one type. So just how do you do this exactly? Well, you need to know what 4 major types are first. (1) U.S. Stocks are one. They are represented by S&P 500 Index (2) Foreign Stocks is another; represented by EAFE Index (Europe, Australia and Far East) (3) Real estate, represented by National Association of Real Estate Investment Trusts Equity Index (4) Commodities;represented by Goldman Sachs.
| | Use A Debt Checklist To See Where You StandWritten by David Wilding
A Debt Checklist allows you to look at items and areas of your financial life. You need to examine these to gauge how you stand. Even if you believe you are in good shape take a close look at these areas to be sure. - Your Budget Almost nobody likes this word, which is why so many people have problems with their finances and debt. You need to know how and where your money is being spent. In addition, you should be sticking to a spending plan.
- Your Savings Account You should pay yourself each month. To do this you need have an account in place, in which you keep your funds. At least until you can move them to an account with a higher rate of return. Visit your bank or credit union to set one up.
- Your Use Of Credit You need to review your use of credit to see how, what, and where you are using it. Using credit to pay your bills or buying groceries is a recipe for trouble.
- Your Percentage Of Income For Debt Nothing makes it harder to stay with your spending plan than credit card payments. You are paying for your past while trying to purchase your present. If your percentage of income going toward debt exceeds 15 you could be headed for trouble. Any amount over 20 percent, you need to put on brakes.
- Your Minimum Payments These add up. If you are to point where you ca only make minimum payments on your debts, you will stretch your indebtedness far into future. You don’t want to extended like this. Find ways to add extra to one payment each month. Then when you pay one off move extra payments to another.
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