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?
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Sunday, June 19, 2016
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?
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