When managing money, people are often their own worst enemies. Some folks tend to overestimate their ability to manage money and underestimate the risks and complications involved. This means that millions of people are missing out on big opportunities to save, invest and spend more wisely. Here are some ideas for how you can manage your money smarter – often by “doing” less.
We’re fast approaching a worldwide financial meltdown…. Paper currencies as we know them will become as worthless as Monopoly money… Oblivion is just around the corner… Chaos! Madness! Dogs and cats living together!
I know. A bit over the top, right? But the actual ads for investing in gold aren’t all that different from this kind of silly doom and gloom. Marketers know that FUD (fear, uncertainty, and doubt) is a powerful selling tool, and when it comes to selling gold during challenging economic times, FUD rules. So here’s the real deal on gold, minus all hype and doomsday.
If you’re fortunate enough to receive a tax refund this year, you may be interested in stashing that money somewhere safe where it can grow. A US Series I Savings bond is considered by many to be a conservative investment for several reasons. Find out what perks the IRS is offering to put your tax refund into savings bonds, what the benefits of these investments are and if they’re right for you and your money.
Everything changes as you get older. And while few of us look forward to the downsides of aging – the joys of belly fat, wrinkles, thinning hair, and so on – one of the big upsides of getting older is gaining the wisdom and experience you just can’t acquire any other way. Your investment portfolio gets older, too. But unlike our waistlines, we actually want our portfolio to grow over time. And taking an age-based strategy with your portfolio is a simple approach to managing your investments effectively over the long-term.
Do a little reading up on the relationship between investment risk and return and you’re likely to come across complex math models and detailed discussions about betas, coefficient of variation, negative correlation, standard deviation, capital asset pricing models, and on an on. Sound like a fun time to you? Me, neither. I learned all those models and terms in graduate business school (I had to, they made me), and while they’re definitely worth knowing, the basic concepts of risk and return are pretty simple.
If you’re an average investor, you probably don’t have the time or expertise to navigate the confusing and ever-evolving world of financial markets. What you need are affordable, solid investments that don’t require tons of research and huge ongoing time commitments – like index funds. Find out what index funds are, how they work and why they may be a great investment option for you.
The economy is weak. Unemployment is high. And with universities projecting price increases of 10 percent or more per year, just the thought of your child’s future college bills is enough to make your head spin. But don’t send those kids off to bartending school just yet. 529 plans, if you haven’t heard of them, offer some great tax incentives and even ways to collect ‘free money’ to save for your children’s higher education.
We’ve all been told that in order to create wealth we must take risks and invest, invest, invest. The problem is many people are losing money. And, though some recover from losses (and some never do), losing money has a much greater negative impact on your wealth than gains do. Find out about one investing method that allows you to not only hang onto your money, but grow it too.
I’m one of those “millionaires next door” who you may have heard about. My wife and I have two kids, ordinary white collar careers and a shared financial philosophy that has enabled us to build wealth even during difficult economic times. We call these our “Eight Laws of Investing.” Find out what our eight laws are and how you can use them to grow your net worth.
Investing your money is a great way to save for retirement, college and other big ticket expenses. Unfortunately, sometimes our desire to see a great return on our money leads us to fraudulent investments. Scammers know that we all want the “too good to be true” investment to actually be true, and they work hard to convince us that it is true. Follow these tips to avoid investment scams.