Inflation, Interest Rates, and Dividends

Most people believe it is impossibly hard to understand how interest rates and dividends affect the value of the share price of a stock, but if you can understand opportunity cost then you can understand these concepts.  Understanding these concepts will not only make you a better investor, but they will also allow you toContinue reading “Inflation, Interest Rates, and Dividends”

Why The Rich Get Richer

Everyone has heard the phrase “The rich get richer”, and that is a true statement in a lot of cases.  Most wealthy individuals have a particular mindset that not only allowed them to gain extravagant wealth in the first place but also to continue growing their assets as they accumulate more and more resources.  TheyContinue reading “Why The Rich Get Richer”

Cash Generating Assets

One of the best ways to become wealthy is to spend your money on streams of profit.  Another way of saying this is to collect cash generating assets.  These can be anything that generate cash.  They can be a franchised fast-food restaurant, ownership in a stock that pays a dividend, or royalties from a bookContinue reading “Cash Generating Assets”

Inflation

Inflation is one of the most important concepts that a person can learn about when it comes to economics.  In a very simplified explanation, the inflation rate is the rate at which all prices in general are rising in a market over a period of time.  Thus, when prices increase each dollar can buy less. Continue reading “Inflation”

Dollar Cost Averaging

When most people are ready to start investing, they have no idea how to actually deploy their capital into stocks.  The most frequent questions I get asked are should I wait for the market to pullback or should I just jump in now?  How and when you invest in the stock market can make aContinue reading “Dollar Cost Averaging”

One of the Oldest Ways to Increase Savings

This weekend I decided to sit down and roll all of my loose change in order to deposit it at Bank of America (BAC).  For some reason BAC only accepts rolled coins and will not take more than five dollars in loose change deposits.  Regardless, I have always found that loose change is a greatContinue reading “One of the Oldest Ways to Increase Savings”

The Investor Mindset

If you want to invest in the stock market you have to go in with the correct mindset.  You have to be committed for the long run and you have to be confident in your investments.  If your investment drops 10-20% you cannot panic and sell.  That is one of the biggest mistakes that beginnerContinue reading “The Investor Mindset”

Financial Milestones and Getting Started

A lot of people put off investing and saving because it can be so frustrating to just get started.  Let’s face it.  If you earn 10% on $1,000 that took you a year to save, you only gain $100 extra dollars for all that hard work to save up $1,000.  If you can focus onContinue reading “Financial Milestones and Getting Started”