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Sunday, June 19, 2016

How Credit Card & Its Debt Can Ruin Your Financial Life

Getting credit cards is really simple and accessible able in today’s generation. Even the younger generation who just enter college have easy access to credit cards (Those credit card companies want to take advantage of the unexperienced youngster). Those credit card companies don’t have your best interest in mind. After all, they are in this business to make profit. I have to admit having a credit card can be an incredible tool such as building credit, cash back rewards, and point rewards that can be used for traveling and souvenir exchange. But the question is, do anyone know that getting into credit card debt can actually ruin your financial life. I’m talking about digging yourself into really deep hole and unable to get out from the financial mess. I believe how you handle your credit now can have huge ratification on your financial future. If you don’t use it wisely, you are going to be stuck in the vicious cycle for the rest of your life. I wrote this article hoping people will not entangle in this financial situation. I don’t want people to realize this problem later on in life when it’s too late. So how credit card and its debt can ruin your life?

Thursday, June 9, 2016

Turning Bear Market Into 'Buying Opportunities'

A Bear market is a market condition in which the prices of securities are falling due to widespread pessimism that causes the negative sentiment. During this time, many speculators and investors rush to sell their positions worrying that they will lose their portfolio value. Since there are more seller than buyer in the market, the pessimism only grows stronger which will eventually lead to a huge stock decline. Many people were told to stay out of the market during this time or maybe to sell all their positions in certain companies (I did this before and I regret it till now). However, you may be surprise to find out that you don’t need upward trend market to make money in the stock market. As for me who is a dividend growth and value investor, I tend to see things with long time horizons and see the bear market condition differently than most investors out there. You will see many great quality dividend growth companies trading at cheaper price. As a value investor, I tend to focus more on the quality of the business rather than the short-term or near-future share price. You shouldn’t be scared that the stock price has decline tremendously, in fact you should embrace it. I focus more on the quality of the business rather than the short-term or near-future share price. And knowing the quality of business, I use the bear market condition as an opportunity to purchase great companies. So what’s the reason behind it!

Tuesday, February 23, 2016

The Power of Compound Interest & Why You Should Start Investing Early

Many people don't realize the benefit of investing early in life. Especially the young ones, who tend to have fun while they are still young. It's understandable why do such boring things while there are so many other fun activities in life besides investing. I myself sometimes find that saving and investing can be really boring (I am a human being and I want to have fun too). However, once you realize the power of compounding, you might get another picture why there are many benefit to start investing early in life. You see saving and investing is not a "get rich quick kind of thing", and if there is someone who claim to be able to get you rich quickly by investing, I hope you do your research diligently since there is probably high risk involved. Saving and Investing to create wealth is a long time procedure, but the sooner you start to put your money to work for you the more time your investment would grow better. 

Wednesday, February 3, 2016

How To Get Out Of The Rat Race

The Rat Race is a term that is used to describe the frustrating financial grind, hard-to-break financial lifestyle that most people are stuck in. It conjures the image of a “lab rat trying to escape while running around a maze or in a wheel, expending a lot of effort, but ultimately achieving nothing.” It’s very much alike to people who everyday work their butt off in a time-consuming nine to five job, for five days a week just to be able to pay their high expenses: a heavy mortgage/rent, bills, children, and liabilities. They have to wake up early in the morning when the alarm goes off, commute to work in a traffic environment, do the work that they probably dislike in their office cube, then commute back home in another hour of traffic, then repeat the same procedure the next day. The problem with the rat race is that there's no finish line. The illusion that working at the same job will be better bars off alternatives. They are trap in this vicious cycle believing the more money they make will solve their problem. However, this is not necessarily true. When income increases, they have a tendency to boost their spending, which can quickly spiral into dangerous overspending habits. The wheel just keeps spinning, and the longer they are caught in the cycle of consumption, the harder it becomes. Sadly the cycle get worse as they get older if not prevented. So how do we stop this insanity and get out of the Rat Race?