Debt is an amount of money borrowed by an individual from
another party. Many people use debt as a method of making large purchases that
they could not afford by paying interest on them. Many get into huge debts and
getting out of it can be frustrating and confusing experience if you don’t have
the right plan. Some people simply try to avoid these issues and ignore the
problems they are already in. However, if these debt issues are not dealt with,
it will only escalate the problem much further. This can lead destroying your financial
dream. With debt, it will be impossible for you to be financially ahead to
achieve early retirement. Before you want to build wealth through your
investment, you’ll need to tackle those debts you acquire. So what are ways to get out debt faster?
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Sunday, June 23, 2019
Difference Between Investment and Speculation
There are many people who purchase stocks thinking they are
making an investment and not knowing they are actually speculating. They buy
certain stocks with just certain assumption that the stock will go up in price
without doing a thorough analysis. And yes, some people actually do make
capital gain from speculating and sometimes they made a lot of money. That is
what we call speculating. The person who made tons of money from speculating on
certain securities might just be lucky. However people need to know the
difference because Investing and Speculating. Those two are totally different
terms. Benjamin Graham who is Warren Buffett’s mentor believed in separating
investing from speculation. I strongly agree with that ideology because not
knowing the difference can cost you dearly. In this article, I want to talk about the difference between Investing
and Speculating, and why I personally dislike speculating and prefer Investing
instead.
Thursday, June 20, 2019
How to Make Money Using Dividend Growth Investing Strategy
Before I start explaining about “Dividend Growth Investing”,
we need to understand the basic of dividends. A dividend is a distribution of
income from a portion of company’s earning (net profit) and it’s paid to its
shareholders. Dividends are decided and managed by the company’s board of
directors, and they must be approved by the shareholders by voting rights. Dividend
Growth Investing is a simple strategy of purchasing stocks that are paying dividends
and have been growing their dividends from the past year. A Dividend Growth
Investor also can benefit from the capital appreciation from the dividend
paying stock. The goal is to look for dividend paying companies that have
strong track record of paying dividends. In addition, the companies need to
have strong financial fundamental as well as the quality of the company. The
strategy to Dividend Growth Investing is to seek for companies that increase
their dividend payment overtime. So how do you make money using dividend growth
investing strategy?
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