Apple update

The story of apple hasn't change much since my earlier post (seen below), except the price is hitting a new 12 month low below 400.  Really think about whether it is cheap or it is a stock who's brightest days have passed.



My case for Apple or against....

How many times have you said I need to make more money?

I have heard that statement time and time again and even said it myself.  The sooner you realize that you don't need more money, you need more assets, the better.

Assets essentially bring in more money without you having to put any extra work in.

You should acquire assets or investments to generate multiple streams of income.  As you add to your investments and they start to grow more rapidly you will produce more money that you didn't have to physically work for.  That money will generate more money if reinvested in your initial investment.

More money will not solve your problems because more expenses usually come with more money.

A persons spending tends to increase when they make more money.

So try to think of growth and sustainability when it comes to your finances.



Wikipedia Asset Definition

Buy off season or used money saving tip

Simple concept, but it takes will power to not satisfy your desire for instant gratification.  For example I waited until after the Superbowl one season and bought a giants jersey (they didn't win that year) for 40% off.

As far as used goes when my fiance and I were looking for furniture for our apartment we would go to wealthier areas and see what was for sale at estate sales, garage sales, and even barn sales.  We found a beautiful wood table with 4 chairs that looks like it's worth 1,000 at least but we paid 100 because the seller just wanted to move the item.

The Salvation Army can really have some gems too it all depends on what you are looking for.  Again we bought a great dresser for 50 bucks.  This thing was made with some effort it's not like we bought used IKEA.  Nothing wrong with getting IKEA, but there are better quality products out there.  Note when buying used really check the item out and make sure it's not put together with staples or plastic pegs.

Really consider estate sales a lot of items can be almost new you might not even notice and the prices are usually very low.

People are creatures of habit

Think about it we get up, go to work, drink a coffee, eat lunch, drink another coffee, go home, go to bed, wake up and do it again.

This is just a thought of the day but I encourage you to do something, anything to change it up.  Get yourself thinking differently and change your lifestyle.

Do something you've always wanted to do or go some place you've wanted to go.  Allow yourself the time to think and take a break from the usual day to day.

Great Video : RSA animate changing education paradigms

This video basically says that we realize that we need to change education, but we are going in the wrong direction and valuing the wrong things.

Doing things the way we've always done them just because that's the way we do it is not a good explanation for continuing down a path.  Change begins with thinking differently and creating a way to change the norm for the better.


Sir Ken Robinson is the speaker and has also been featured on TED.com
Change your perspective on education and the status quo

Think of your house as a Liability not an Asset here are my thoughts.

Assets bring in income that you don't have to work extra for in the form of rents, dividends, capital gains, royalties, and so on.

Houses generate expenses like insurance, mortgage payments, maintenance expenses, taxes, you get the idea.

If I ever seem negative on home ownership I'm not I absolutely want a house one day.  I just want to get people to think outside conventional wisdom so that they can better invest their money before and after their home purchase.

What are your thoughts on this?  What do you think of home ownership?

How do I invest if I have no money? Step 2 of the investing process

You start by making a budget so you can understand what you save every month.

See my beginning budget post here Budget with Excel

In that example the person saves 203 dollars every month.

Now that we know whats available to us lets talk about where to put the excess.

I think that you should always add a little to your savings because you have to be ready for expenses that you weren't prepared for.  Of the 200 put 50 towards savings and over time try to get your savings to equal 6 months of living expenses.  This way if you lose your job or fall on hard times you have something to help you through.  

Next I would add a little extra to credit card debt or school loans.  Which ever has the highest interest rate and pay that down so you can reduce the time you are in debt for.  Let's say we put 53 towards that column.

Credit Card tips

Now we are left with 100 to go to investments.  Depending on where you are with your investments you should disperse this amount evenly among your holdings.  For example if you own 5 stocks put $20 towards each holding.  If you are just starting maybe you want to put the whole 100 towards your initial investment in each holding.  That's up to you especially depending on the price per share of whatever it is you are buying.  What to buy will be in another post and I can't tell you what will be good for you so take my ideas, thoughts, and opinions to help you research what will be best for your situation.

Think about your assets, can they help you in a time of financial crisis?

This is just a thought, but really think about what you own.  If you were to lose your job today what do you own that would generate income for you so that you could survive or even thrive without that job.

Also what if you retire? Are you living off social security and a 401k/pension?  What can you do to make the most of it?

I ask questions so that people question themselves and the approach they are taking or will take.  Sometimes it's more important to make people think than to share what I want for a day.


So what do you do to generate consistent income or what will you do now that you thought about it?




Reading the book rich dad poor dad inspired this thought.

Why do I do this/ Why am I always learning

Let's talk about goals and time frames

I've heard the question where do you see yourself in 5-10 years a number of times.

I used to say I want to have a house, a better job, and so on.

A better goal without the time frame is that I don't want to need to work the rest of my life, I want to travel, I want to allocate my time as I see fit not have to do so based on other obligations.  I want to have all this at a young age and be able to enjoy it.

I want this for everyone not just myself because what's the use of having free time and things you want if so many others are struggling to get the same thing.  At the very least I can try to inspire you to do this for yourself and I hope that is what I'm doing by writing this blog.

The purpose of all of my posts

To really understand a subject you must be well versed in that subject.  True, but to really be successful you must know a little information about a lot of different subjects.

I post about more than just finance, because topics like government, taxes, and your health are all important in finance.  With more knowledge comes greater understanding of the industry as a whole, your finances, and your life.

I encourage you to learn about many different industries and ideas so that you can be creative with your life and your investments.

Specializing in only one field or subject can be limiting.  Don't limit your perspective.