Investing And Money Advice. Useful Things to Keep in Mind

Thursday, May 21st, 2009 | Finance

Pay off all debts, especially credit card debt.

Put 15% or more of your income into a financial advice.

Put 10%, or whatever amount of your income you feel comfortable, into stocks and/or mutual funds. (Remember this can be dangerous and you can lose money.)

Only spend money on the things that make sense and that are worth every penny. Instead of buying the Bentley, buy a good gas-efficient car that will last a long time. check out the saving page for more info on saving and spending less.

Save money!

Good habits to help you save money can include eating out less, save electricity, water, and natural gas. Refinancing any home or auto loans to get better rates and therefore lower payments. And one of the best is to keep all credit cards paid off.

Types of Bank accounts: Bank Savings Account, Money Market Account, CD (Certificate of Deposit), Money Market Funds.
Invest for the long run. Look for companies that are underpriced and have growth on their minds.
Never invest before you have done your homework and have made sure that the company you are looking at is strong and solid.
Invest in things that you are interested in. If you like computers, invest in a investing blogs
Everyone wants to retire with a certain income. A great way to see if you are on track for a good and stable retirement is to calculate how much you save per year times how many years you will be working.

There are many different plans for retirement such as a 401(k), IRA, 403(b), or 457.

A thing to remember about saving for retirement is that you should start as early as possible. Younger people should lean more towards stocks and mutual funds or invest in higher risk things because they are young, but should still have reserve cash and some money in more secure things such as bonds. Older people should gradually shift from stocks towards mainly bonds since they will be using the money soon for retirement.
When investing in stocks on your own, make a big list of stocks that look pretty good without much research. After this give each stock a number of tests, and look at their annual report. Then read articles that shareholders and other people have posted about it on blogs and places like www.fool.com . Rate the company on its (Value, Growth, Income, GARP, Quality). Try to buy shares in the company when the stock seems that it is at a low or is about to shoot up in price (but don’t buy your shares if the price of the stock is so low that the company might go bankrupt. If you then truly believe that the stock is very strong then you can invest, but only if it looks very, very strong.

Growth Investing: “Growth investing is the idea that you should buy stock in companies whose potential for growth in sales and earnings is excellent.” (www.fool.com)

Income Investing: Income investing is pretty much the concept of buying a stock that has a high and steady dividend so that the investor can profit from the stock in the short term.

Sizes of Companies:
Micro cap — $250 million or less.
Small cap — $250 million to $2 billion.
Mid cap — $2 billion to $10 billion.
Large cap — $10 billion or more.

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