Smart Thinking On Investing – November 07
Smart Thinking On Investing – November 07
John Schmoll, the author of Frugal Rules, opens up about the financial lessons he learned in his twenties. And The New York Times’s Paul Sullivan helps us coordinate your portfolio with your motivations…
Start As You Mean To Go On
- The beginning of your career feels like a morbid time to be contemplating the end of it, but care and forethought now will make all the difference later in life
- Start with an income strategy for your retirement—make it a priority now on top of your short-term goals
- Some employers will also help towards betterment with study and training fees—improving your skills benefits you and them
- Your 401(k) is not enough; invest beyond this too with a portfolio of stocks and bonds
- Save an emergency fund, and expand your financial education aggressively
- Make the most of your youth and time being on your side
Take a Retirement Leaf From an NFL Footballer
- Lions player Glover Quin set out his financial strategy from the very beginning of his NFL career despite peer pressure from teammates to “stop being so cheap”
- This plan is about saving 70% of his salary and investing sensibly in renowned, publicly traded companies
- His investment benchmarks are if the stock interests him, if he trusts in the business plan of the company, if it keeps his portfolio diversified, and finally, if it’s a product he believes in
- A financial plan worth mimicing
Know any other celebrity financial strategists worth copying? Share your comments in the section below
A First Year in the Life of an Entrepreneur
- Being passionate is only the first step to success, your business requires action as well as drive
- Create a plan and implement it, dedicate time to tasks and discipline yourself to execute your schedule each week
- Business is all about making difficult choices and sacrifices
- Money can be reaped back, but always question any debt you’re considering taking on—time, though, is not a “renewable resource”
Financial Lessons to Reflect On
- Spend money on time not gadgets; it is your experiences in life that shape who you are not the latest technology
- Finance your education, not your lifestyle; debt is a major undertaking so make sure it’s for the right reasons
- Save a set amount of money from each paycheck, and increase it as your career progresses
- Avoid marketing tricks that will have a knock-on effect on your financial independence
- Align yourself with people that have similar money goals; they’ll help you stay financially healthy
Being Aware of Your Investment Motivations
- The newest financial factor Phi is a strategy with which to measure if potential investments are affected by investors’ motivations in the long-run
- Market-based motivations, whether they’re fear or passion can have an adverse effect on long-term returns
- A high measure of Phi is about being conscious of these motivations and their impact, scoring higher as an investor for being ethically minded and socially responsible
Do you want to start investing on your own, but don’t know how?
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