I'm sure that most of us don't really know what happens between time your swipe your credit and receive purchase approval (or, ugh, credit card declined). This is a process that happens millions of times over during course of a day and one which we take for granted.

Let's VISA as an example, although this process works similarly for MasterCard. American Express works through a closed loop system whereby company alone authorizes and settles all transactions directly with merchants and consumers.

1. You buy a new pair of fancy shoes for that upcoming dinner party using your VISA card.

2. The store clerk swipes your card and enters price. The magnetic stripe on back of your card is encoded with your card number and expiry date.

3. The merchant's terminal transmits transaction to their bank, electronically imbedding date, price and merchant information for transaction.

If you are fairly new to investing and looking for some guidance or if you are seasoned investor, let me introduce you to NAIC.

National Association of Investors Corporation (NAIC) is a non- profit, tax exempt organization whose membership consists of investment clubs and individual investors. Founded in 1951, mission of NAIC is to provide investment education, information and support. They prescribe to four basic, yet timeless investment principles:

1. Invest regularly, regardless of present outlook for economy or stock market. 2. Reinvest all earnings, letting power of compounding work for you. 3. Discover growing companies so that your wealth can grow as their sales and earnings grow over years. 4. Diversify your holdings, and don't put all your eggs in one basket, regardless of how carefully you watch that basket.

The late George A. Nicholson, Jr. CFA - father of modern-day investment club movement, gave these principles to a good friend in 1939 and told him that if he followed them he would make money he needed to start his own business.

"I never thought these principles would be so aggressive," Nicholson once told Better Investing editors. "They were meant to be defensive, to protect investors from losing money. They turned out to be quite offensive, too." He enjoyed comparing this approach to investing with his college football experiences. "The best offense is a strong defense."