Smart Thinking On Investing – February 10
Smart Thinking On Investing – February 10
Sound advice from Money Nuggets kicks off my Smart Thinking this week, with reasons why you should have an emergency fund. Latoya Scott has compiled her ultimate financial checklist for millennials for her blog, Life and a Budget. And Notorious Debt writer Lindsay VanSomeren shares the insightful challenge she set herself to save money.
Tom Corley motivates our social and wealth advancement in his Rich Habits blog. And The Balance’s Joshua Kennon helps us make the most of our investment holdings…
Emergency Fund Motivation
- There are many reasons to have an emergency slush fund (between three to six months of expenses) to fall back on, here are a few of them…
- In case you lose your job, your hours are slashed, to cover an out-of-the-blue tax bill, and potential car repairs (or to buy a new one)
- If they’re not enough to persuade you, consider these; emergency vet bills, a sudden utility bill, home repairs, and pregnancy—basically, anything can happen, so be prepared financially!
Get Your Finances in Order
- Start a budget, track your expenses, and watch what you spend; simple, but truly the most important beginning to your goals
- Work out what is important to you, plan out how much you need, and save
- Credit cards; approach these with caution and handle with care
- Keep an eye on your score and credit report; watch out for any discrepancies and mistakes which can have a major effect on your financial well-being
- Get investing—it’s hugely important for your retirement
The Stellar Water Challenge
- Canned drinks; from soda to energy drinks, can be a cost which slowly adds up, and is also quite unhealthy long-term
- So, set yourself a challenge, rather than grab a can from the fridge, reach for your tap and pour a glass of water
- And if you need your caffiene, there are creative ways to replace those expensive energy drinks for a huge saving of $700 a year!
Have you set your own saving challenge this year? Share your comments in the section below
Birds of a Feather Flock Together
- As social creatures, humans are drawn to groups and cliques, and so successful people tend to seek others on the same wavelength
- As with any other habit, change who you spend time with if you want to move away from “Toxic Relationships”; the negative, deceptive, financial train wrecks, and lazy types
- To change your life, disassociate yourself from these people to move upwards for the better
How to Optimize Your Investment Holdings
- It’s not just enough to invest, you need to put your money to work to generate wealth and grow your financial independence
- Invest your money in bonds (this is essentially a loan to the government) for which they pay you interest in income checks, and collect your cash dividends by owning business shares
- Reinvest any capital gains you earn (profit from businesses you have a stake in), and invest in real estate; rent it out to create a fourth income stream
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.