Smart Thinking On Investing – June 4
Smart Thinking On Investing – June 4
Student Loan Debt? Think Creatively
- Concerned that you should have studied finance as a major? Too late to change that now, but fear not, conquering student loan debt is an achievable goal for everyone
- As the saying goes, “small steps can lead to big changes,” just following a couple of these money saving hacks will get you on the way to making a dent in that debt
- Whether it’s by overpaying the required amount, picking up a small side job, parting ways with things you no longer need or just by saving a dollar a day, it will all add up in the end
Bridge the Spending and Saving Gap
- Approach your debts with the snowball method: get the smallest one paid off first and use the momentum to kick off on the larger more mentally and emotionally draining ones
- Try the one-third rule to deal with unexpected extra money, spend a third now, use a third to repay debts or add to savings, and put the final third to longer-term goals
- Concentrate on the ‘why’ behind your savings; the positive outcomes for now and in the future of putting money aside instead of using it
Financial Words of Wisdom
- Aim for respect and admiration from other people rather than their envy of your possessions
- Understand that while hard work can lead to success, not all success comes from it, and that the same goes for poverty and laziness
- Learn to budget, don’t stay in a career you don’t enjoy, change your mind and learn from experiences, and know “the best thing money buys is control over your time”
How The Rich Do It
- The key to accumulation wealth is delayed gratification, making credit work for you rather than against you, and implementing a long-term, buy-and-hold strategy
- Think savvy and always consider the tax implications when making any investment decisions
- While stocks can be lucrative, customize your asset allocation and be invested in real estate too; it adds diversification to your portfolio
The Ingredients to Financial Success
- Start by combining portfolio diversification, patient long-term goal thinking, and cool focus over emotional decision-making
- Add into the mix; regular portfolio rebalancing, adequate emergency savings (your liquid reserves) and a calm acceptance of market ups and downs—these things are beyond your control don’t let it cloud you
- Finally, include a dash of incremental investing (small amounts over full market cycles), the ability to sift through media noise, and the skill to monitor any unruly investing behavior you may have for the recipe to successful wealth accumulation
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.