An ETF (Exchange-Traded Fund) is a fairly new invention and they are getting very popular. An ETF is similar to an index fund. It tracks a particular index like an index fund, but it is traded like a stock.
This means that an ETF has a ticker symbol and you can buy it by the share. Exchange Traded Funds can also track commodities such as gold and silver. This is a great way to invest in commodities with small investment amounts without holding physical assets. They also give you more liquidity than holding physical commodities…
A bond is a form of investment. Simply put, a bond is debt.
When you buy a bond you are basically offering a loan to a company or government, and the entity that you borrow from is then in debt to you; unlike a stock where you own a share (or a piece) of a company, with a bond you are just loaning the money for a certain amount of time.
This article is for the investor wanting to know what a bond is (for investing purposes not macro economical purposes) so I won’t get too deep into monetizing, but I will say that bonds are often what people are referring to when they talk about the government printing more money out of thin air. This occurs through selling bonds to the public, as well as the government buying their own bonds (monetizing).
So what are the rates of return for bonds?
Once you have paid off your debt (with the exception of your mortgage), you are ready to start seriously investing.
The only exception for investing before you are debt free is retirement.
It’s never too early to start investing some amount into a retirement account, whether it be through your work’s plan or on your own plan.
Retirement should be an automatic amount that is deducted every month, no matter what.
This is the philosophy: Pay yourself first!
Even if you can only afford $10/month at first, you should be investing something into a retirement account…
This is a quick guide on dumping your debt.
Debt comes in many forms, such as mortgages, credit cards, loans and ways you’ve never imagined.
Nowadays, people find new, innovative ways to get themselves buried in it everyday.
It’s an art really. This brings me to my first point:
Debt is not our friend. In fact, it’s the enemy.
Racking up debt by taking out loans and making minimum payments on credit card bills can ruin your life. Fortunately there are solutions to this problem.
Here’s a little secret…
Unexpected events are some of the only events we can expect.
How do you expect the unexpected? You need a plan.
It’s important to be prepared. Financially, there is one major step to take that can leave you feeling secure.
An emergency fund.
An emergency fund is the most important foundation of your financial health. No matter where you are in your financial journey, having an emergency fund will get you closer to your goals and limit your setbacks.
Using a credit card for emergencies can turn an emergency into a catastrophe. Getting into credit card debt will just create more problems, that’s why we plan for emergencies without credit cards, right?
Let’s start with the basics…
No matter what your beliefs are, I think most of us are pretty familiar with this passage:
“give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap. For with the measure you use it will be measured back to you.” (Luke 6:38, ESV)
Giving isn’t only popular among Christians, some other influential figures had been known to have high regards for giving:
“The value of a man resides in what he gives and not in what he is capable of receiving.” – Albert Einstein
And remember, no matter your financial situation, you can always give something…
Once your monthly bills are organized, you can set back and relax.
It just takes a little time to accomplish this and it’s worth the peace of mind.
Don’t be late on your bills because are unorganized.
That is no excuse and the companies that you pay would agree. Get organized! Know what and when money will need to be paid.
There are 3 simple steps…
After you know your net worth, you need to figure out if you are headed in the right direction.
You need to figure out where your money is going. To do this you will need to track all of your expenses. Write down every bill, payment and expense that you pay in a typical month.
Most of the time people spend a lot more than they think they do.
This is why it’s important to…