Why Starting an Investment Club is Important

by: admin - November 6th, 2008   Filed under: Money Thoughts Add Comment

If you are thinking about investments of any type, but are not sure where to start, or are more experienced but realize that there is much more to learn, we recommend joining an investment club.

Investment clubs come in many forms, some are composed of individual investors who combine their money for specific investments, to a more community-type meetings where guest speakers are invited for the members to learn from. Some clubs actually analyze each member’s financial portfolio to brainstorm ideas and provide constructive input. Other clubs allow for members to not disclose their finances to any great detail but are more broad in their exchange of ideas.

Since investment clubs have a social community foundation, it is important to have a certain level of friendly relation between members. This camaraderie can start among friends and expand with referrals. An ideal group will be comprised of members from diverse backgrounds, that could contribute from their varied experience to the overall goal of learning about smart investment.

Clearly there needs to be a consensus reached among group members regarding the topics to be discussed, so as to prevent some members from wanting to talk about retirement planning while others wishing to discuss Forex trading.

The ideal location for meetings would be in a home or some other quiet place for people to congregate at, such as a private room in a restaurant.

Notably, an agenda should be distributed for every meeting since it is important to keep the meetings organized and consistent over time in order to keep the meetings on track.

Related links can be found at:
Investment Club Central
The National Association of Investors Corporation

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Savvy Money Approaches in an uncertain Economic Times

by: admin - November 6th, 2008   Filed under: Money Thoughts 2 Comments

Although economic times are tough, this is not the time to take your money out of the checking account or 401k and put it in the mattress. Instead, it’s crucial to make safe and smart decisions with your money and spending habits. This is the case since when you feel more secure with your finances, it is easier to focus on reaching your wealth goals instead of getting distracted by bad economic news.

The steps to take during these times are:

No need to panic about long-term investments: Long-term investment should remain long-term. If you are 10 or more years away from retirement, taking your money out of stocks or stopping contributing to your retirement savings isn’t the right thing to do. Fluctuations in the stock market are relatively short-term when compared to the many years you have until your retirement.

Search for additional sources of income: You can boost your income and create yourself a bigger safety net by working in a part-time job or starting your own business.

Run away from consumer debt – Carrying a debt, especially credit card debt, is a burden and you should try your best to eliminate it as soon as possible.

Become more frugal – Everyone can cut back on some expenditures in many aspects of their lives. These could accumulate to substantial savings over time.

Have an emergency fund – To prevent tougher times, such as if you lose your job, financial advisers recommend having enough cash saved that is equivalent to your salary of 6-9 months.

Plan for your future – It’s a good idea to re-examine your financial plan on a yearly basis, but since this is a severe economic mess we are in, now is the time to look at these plans again. We will provide more details in a future post on the detailed financial planning a person should have.

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Chew on This – Tip #6. Credit Cards for Students

by: admin - November 1st, 2008   Filed under: Money Thoughts Add Comment

When used with caution, credit cards can be useful and helpful. As long as you are paying your bill off before the monthly deadline and keep a close watch on your spending, you will do fine with a credit card. Students can find a credit card helpful for certain expenses, but it clearly has to be always used as described above.

There is a website that is focused solely on school credit card services. This is a good website since right on the home page it lists the essentials on how to use credit cards responsibly. It also goes further to explain how APR works and how to decide which card is most advantageous.

The website offers students a straight forward way of researching and selecting from the various credit card offers that are specifically geared for students. As an example, the Discover Open Road card offers zero percent APR for the first 6 months, 5% Cashback Bonus on the first $100 in gas purchases each month, and no annual fee. This could come in handy for most students.

If you are a student, it is best to review each offer being presented and decide which card best fits your needs.

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Turning Gift Cards into Cash

by: admin - November 1st, 2008   Filed under: Money Thoughts Add Comment

Have you ever received a gift card for a store that you never shop at? Or have you received a card for a store that you later found out is no longer in business?

I recently came across a website that is intended as a secondary market for buyers, sellers, and traders of gift cards, called plasticjungle.com.

There are 2 options for selling a gift card on the site. After registering for free, a user can sell the card directly on the Quick Cash page. This page has a tool that will inform users how much a PlasticJungle is willing to pay for the card. I have seen a payout of 70% of the card’s face value, which is respectable.

A second way to make money by selling a gift card on the site is to allow other users to make offers on the card. The seller sets their own price, although bidders can set a counter offer.

People who use gift cards, such as myself, know that they offer great savings. This is especially true if you shop at the same retailers regularly, and most people do. Therefore, it makes sense to plan ahead and buy the cards on the site.

There is also a section if you wish to trade a card for another card that would be more useful to you.

This is a great money management tool and, for the upcoming holidays, make sure to keep it in mind.

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4 Income Streams To Consider

by: admin - November 1st, 2008   Filed under: Money Thoughts Add Comment

Diversifying one’s income is great approach for living with less worries. For example, if a person loses their job or has a health condition not covered by health insurance, an additional income stream could surely help.

The following are several ways to diversify your income streams:

1) Dividend payments: Dividends are the additional payments given by established companies to their share holders. However, only large amounts of dividends can make the difference in income. That’s why it is important to invest as soon as possible in solid companies as part of your investment portfolio.

2) Side Business – There are various types of businesses that people can own, spanning anything from a candy vending machine to running multiple websites. The side business could run year round or be more seasonal such as landscaping. Also, a part-time job can benefit you with extra capital but also additional training and an added network of people. Some part-time jobs will also provide education and healthcare benefits. Relatedly, we previously wrote a post about making money with your hobbies.

3) Renting – For people who own extra property, collecting an ongoing rent can truly generate significant income.

4) Royalties and Patents – These are ongoing, passive payments received for a one time effort. The effort usually has to be unique.

Diversifying is not as hard as it may first sound and once you start making the extra money, you will definitely be encouraged to continue diversifying .

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