Ideally, more money should mean a better financial position but it doesn't always work that way. The web is splashed with news of celebrities that were once rich. They earned a lot of money from their careers but all of it got frittered away through lifestyle choices. So how can you avoid this trap: Have …
How to Cope with a Market Downturn
With the way the stock market has dipped in the last few days, it's easy to get overwhelmed. It is was as though the bears would devour everything in sight. Anyway, they can’t. The Bears are just as part of the market furniture as the Bulls. These are some ways you can cope with the …
Know Your Numbers
If you sold everything you owned and paid everybody you owed, how much would you have left? That's your net worth (net assets). So a celebrity buys a luxury item for his girlfriend from his billions, he has probably just spent a tiny proportion of his net assets (let's live potential future income for now). …
The key to high returns is to follow a disciplined investment approach
There are several investment strategies that can be used successful. Some people only invest in high-growth companies while some people choose to invest in companies that are in recovery. If we zoom out, some people have an active strategy while others choose to manage their investments passively. There is no particular strategy that is right …
Continue reading "The key to high returns is to follow a disciplined investment approach"
Resist the urge to sell out too quickly
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch If you are investing in the stock market, one thing you must know is that there’s always going to be a decline at some point. The exact time it …
Invest regularly
Investing is a game of discipline: you have to be disciplined enough to not let your emotions get the best of you and you have to be disciplined enough to start early and continue regularly. – Warren Buffett If you knew exactly when a stock is at its low and its high, you would undoubtedly …
Don’t try to time the market
“Let's say it clearly: No one knows where the market is going-experts or novices, soothsayers or astrologers. That's the simple truth.” – Fortune With all the education we have today and real-time access to financial news, trying to time the market would seem like a brilliant thing to do and you’d expect to make a …
Invest in things you understand
“Never invest in a business you cannot understand” – Warren Buffett You would imagine that the common sense to do is to invest in things you understand and can probably explain clearly to a fifth grader, unfortunately, it so happens that every day, many people are putting their money into things they do not understand. …
Managing your money with the 50/20/30 budget
The 50/20/30 budget, is a proportional guideline for allocating your paycheque. It’s in essence, a system of personal budgeting for keeping your spending in alignment with your savings goals. Typically, the budgeting process requires you to keep receipts and track every single expenditure. Now, that can be a real drag. And I don’t even think, …
Continue reading "Managing your money with the 50/20/30 budget"
‘100 minus your age’ Asset Allocation Rule
Whenever I get the chance to speak with a lot of young people about investing, I always find out they are holding too much cash either in their savings account or in treasury bills. A 2014 UBS survey, reports that millennials held only 28% of their portfolio in stocks and the rest in cash and …
Continue reading "‘100 minus your age’ Asset Allocation Rule"
