How to Construct Your Financial Network Map
This is pretty interesting article from Blueprint for Financial Prosperity. The financial network map allows you to see how your financial accounts are inter-connected to one another. For example, a savings account may be linked to a checking account which may be linked to a credit card account. I probably should construct a financial network map. It’ll let me see how which accounts are impacted when I switch my checking or savings account.
Simple Steps for a Cash Only Christmas
Finance and Fat talks about how to avoid using credit cards to buy gifts for Christmas. It’s back to the financial basics – buy with CASH.
Bailouts hurt our standard of living
Mighty Bargain Hunter explains that a bailout for the auto industry “reduces everyone’s standard of living.” I certainly don’t want my standing of living reduced. It’s not even that high to start with.
How to Figure Out Your Net Worth
Prime Time Money shows how to accurately calculate our net worth, by taking everything we own, and then subtracting all our debts and liabilities. By everything we own, he means that we should include the everything in financial institutions and items at home, like of jewelry, furniture, art pieces, etc. The problem is that it’s hard to accurately calculate the worth of jewelry or furniture and art pieces. Also, i would like to point out that furniture are depreciating assets and are very difficult to sell, almost negligible in my view. Art pieces, on the other hand, can really appreciate in price, however unless you are active in the art market, it would be difficult to know how much they are worth. Bottom line is, it would be great to figure out our true net worth, but it may be more difficult than it’s worth.
Watch TV, Go Into Debt
I had the other side of the argument in mind. Couch potatoes would save more money because they would stay at home and watch tv all the time, thus avoid spending money that he/she would otherwise do when hanging out.
Why Investing in Stocks This Year Was Not a Financial Mistake
Stock investors learn more when they lose money or in a bear market. Imagine you enter the market during a bull year, and your portfolio goes up 5% every day. You may be making a lot of money, but what would you have learned?
Five Dividend Stocks To Watch
Dividends4Life brings 5 dividend stocks to our attention. PGN looks interesting to me. With a current yield of 6.3% and a beta of 0.43, I may add this to my protfolio. I would also like to point out that Pfizer Inc. (PFE) is currently paying 7.6% dividends and is currently in my portfolio.
Gambling Is A Bad Investment
I think the lottery is arguably the best attraction out there for gambling yet it is also has the worst probability to win. The odds of you winning is 1:millions. Yet, everyone wants to buy the lotto. Why? Because the prize is huge and highly publicized. That’s the attractive part that everyone thinks about. And the cost is low. It typically only costs $1 per ticket, so most people don’t mind buying tickets, especially when they think they can win millions. Take the $1 per ticket and multiple that by millions of tickets. It’s part of the business model to make big bucks from lots of people buying a $1 ticket.
Thrive is right. The odds of winning a lottery are stacked against the gambler. I hate to say this, but usually poor people buy lottery tickets. If you work out the math, you would know that the chances of winning a lottery is super slim.
I buy lottery tickets as gifts for friends. I know they would not win, but I know the lottery tickets make them happy, because the lottery tickets give them a moment of excitement and a chance to dream big. And if they do win, hey, I’m happy too, it’s jackpot!!