Category Archives: Banking and Investing Tricks

How Should Ordinary People Invest?

Speculative investments could be profitable on the long run, but for that to happen people must understand that there are some things to be done. When you enter the arena of investing the first thing that you need to realize is that you are entering a competition. We must be straightforward and tell you that those who make money are earning from the ones who lose money.

That how the market functions and there is a small percentage of people who make money on a constant basis and a big percentage of people that do not manage to make it and encounter losses. What you need to ask is:

What are those successful people doing?

And then, copy them.

Simple strategy for ordinary people

Passive investments in the form of index funds represent the best option, according the Warren Buffett, one of the biggest investors of all time.

For those of you that don’t already know, index funds are holding every stock in an index, such as the S&P500, including big companies that have expensive shares which are unaffordable for more of the people. According to Warren Buffett, index funds offer low turnover rates and fees and taxes tend to be also lower.

We agree with Warren Buffett and it is true this is a good strategy, especially for people with low tolerance to risk.

Why is that?

If you have limited capital available, hoping that you will be able to generate huge returns by investing in cheap stocks is a strategy that has very low probability of success.

It is possible to make money work for you, but in order to be able to do that, requires a lot of study, practice and hard work. Keep in mind that you will be competing with others to make money and you need to be better than them.

To summarize, find a way to invest in solid companies, that have a long track record, solid reputation, exceptional products and services and on the long run, you will be able to generate a strong and stable passive income source.

For those of you that have a higher tolerance to risk, you can approach riskier strategies, but be aware that with high profit potential there is high risk involved, as well.

 

Meta description: Investing gest tricky for ordinary people because they do not manage to understand some basic principles. Find out how you could invest in a productive way.

 

 

Mint.com – Makes keeping track of your Finances easy!

expenses

You cannot improve what you do not measure. I have learned this mantra in business but have seen significant benefit in my personal finances. Hopefully, like me, you’ve diversified your investments investments, not only in different financial products but at different financial institutions. It becomes a pain in the a$$ to keep track of balances and performance individually. Well, there’s an app for that! Mint.com is a web based service that allows you to track balances and transactions from a variety of financial institutions all on one easy to use user interface.

RESP vs RRSP – What to prioritize? what works for me?

RRSP vs. RESP: Which should I prioritize? A question I have often asked myself. This time, a long time friend was the one to bring it up. Let me take your through some of the key differences of each to better help you make your own decision.

Should I prioritize contributions to an RRSP or should I choose to max out my children’s RESP first? This can be a fairly long and complex article, so I will do my best to summarize and possible do a deeper dive in the near future.

the answer?: IT DEPENDS!

Trying To Improve Your Personal Finances? Follow These Basic Steps for Best Results

In today’s difficult economic times, everyone is looking for ways to improve their personal financial situation. The key to successfully managing your personal finances, is knowledge. This article is jam-packed with tips and advice that, if applied correctly, will help you to get a handle on your personal finances and upgrade your life.

You should never risk more money on a trade than you can safely afford to lose. This means that if you lose any money it should not have the potential to destroy you financially. You have to make sure to protect any equity that you might have.