Once you start getting interested in finances, it is inevitable that you will eventually start researching individual stocks.
All the financial pundits and mathematical experts will tell you not to invest in individual stocks. I get it. It’s the age old active versus passive investing argument.
If you buy one stock and it goes under, you have lost all your money in that stock.
However, if you buy a passively managed index fund, then if one company fails, it is replaced by another and your money is still out there working for you.
Although most of my stock portfolio is invested in index funds like the VFINX, I too own single stocks.
It’s the thrill of the chase that gets be going after these companies. I love researching companies. Some of these businesses have more drama behind the scenes and among the management than Gossip Girl!
So sit back and relax while I bring you some stock gossip. You can stop flipping through that latest Cosmo or Barron’s article for just one second, put down that New York Times crossword puzzle, pause that rerun of Billions, book mark your spot in The Wall Street Journal, while Greenbacks Magnet presents to you Stock Splits and Misfits.
Cause you know, everyone just loves juicy gossip. XOXO 💋
WHAT HAPPENS WHEN YOU DECIDE TO GO ROGUE
Just between you and me, I am especially fond of these two stock holdings. I will let you in on which two stocks I enjoy individually owning: Apple and Berkshire Hathaway. The year was 2013. I wanted to have a little fun and invest some money. Therefore, I decided to buy shares of Apple and Berkshire.
For those who may not know, Berkshire Hathaway is the most expensive stock in the world priced at 321,600 as of 01:56 EDT PM 07/02/2019. For some added perspective on this stock, in 2011 it was priced for the low, low cost of $115,750; therefore, this one stock has almost tripled in price. That is incredible!
Berkshire Hathaway (NYSE:BRK.A) is the holding company of famed investor, Warren Buffett. Notable companies under the Berkshire umbrella include Geico Auto Insurance, Helzberg Diamonds and The Pampered Chef. Buffett, long a critic of short-term trading, has kept the A shares at a high valuation in order to decrease the volatility that comes from short-term trading.
Unless you have over $300,000 lying around in your personal bank vault, then you will have to stick with buying the B shares of this stock.
In January 2010, Berkshire’s B shares (NYSE:BRK.B) underwent a 50 to 1 stock split, bringing its price down from around $3,476 to about $69.50 per share. That is a huge discount! To get a piece of the Buffet pie, I will gladly pay this price. Unfortunately, I bought when prices were higher; I paid about $75-$100 bucks a share. However, I still came out ahead as now the stock is going for $213 a share. Not bad. That’s a pretty good haul for just pressing the buy button.
A stock split or stock divide increases the number of shares in a company. A stock split is an issue of new shares in a company to existing shareholders in proportion to their current holdings. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur.
IS A STOCK SPLIT GOOD OR BAD
According to Nerdwallet, when you had to split something as a kid, that generally didn’t feel like a perk. But when you’re an investor, splitting can be a good thing. Stock splits are a way a company’s board of directors can increase the number of shares outstanding while lowering the share price.
WHY WOULD A COMPANY SPLIT ITS STOCK
A stock split is used primarily by companies that have seen their share prices increase substantially and although the number of outstanding shares increases and price per share decreases, the market capitalization (and the value of the company) does not change. Simply put, just like the value of the $100 bill does not change if it is exchanged for two $50s.
However, not all stocks are created equal. That is why I do my homework first before buying ANY STOCK. There are some misfits out there that you do not want to buy. Basically, you get what you pay for. It kind of reminds me of The Misfits from the Jem and the Holograms cartoons.
If you read my Meet Miriam page, then you know it’s one of my favorite cartoons.
And because July fourth is around the corner, here is a shout out from The Misfits themselves!!!
SPLITTING THE APPLE
And last but most certainly not least, I give you Apple! I purchased stock in Apple (APPL) in 2013, when it was going for around $60 a share. Fast forward to 2019, and the stock is over $200 a share! I got in just in time.
It just so happens that the year after I purchased 5 shares for my birthday, in 2014, Apple split the stock. It all went down on 06/09/2014 as Apple did a 7 for 1 split.
My 5 shares turned into 35 shares overnight!
All this happened simply because I did some homework and took action. Calculated risks can pay off. Remember that fortune favors the bold. In the illustrious words of Jem, “outrageous!”
My two biggest influences are Archie comics and Dennis the Menace.- Gilberto Hernandez Guerrero
I have always been a huge fan of Archie Comics.
Archie Comics is a owned by Archie Comic Publications, Inc. is an American comic book publisher headquartered in Pelham, New York. The company’s many titles feature the fictional teenagers Archie Andrews, Jughead Jones, Betty Cooper, Veronica Lodge, Reggie Mantle, Sabrina Spellman, and Josie and the Pussycats.
Growing up an Archie comics fan or Archiekins fan, as I like to call it, was a lot of fun. Loved the stories. The comedy was top notch. The drawings were colorful. The stories were insightful. And even though the star was Archie Andrews, my favorites were best friends and worst enemies – Betty Cooper and Veronica Lodge. Their love triangle and rivalry over Archie goes back over 70 years! Since about 1942. They been fighting over this red-headed punk since the 50’s! Call it what you want. Madness or chaos or for better or worse, Betty & Veronica are in it to the very end to fight over the affections of Mr. Andrews.
The comics are still popular. So much so that The CW show Riverdale was created for television.
“Don’t underestimate her and don’t bet against her.” – Archie Andrews, KJ Apa in Riverdale
However, this post is going to focus on their financial lives. Here are 3 money tips I learned from Betty & Veronica!
MONEY TIP ONE: SPENDING LOTS OF MONEY WILL NOT EVER LEAVE YOU SATISFIED
You think blowing tons of dough on shopping sprees will make you happier? Then think again.
If you have ever seen Uninterrupted Kenading Dough, pun intended, then you know even millionaire NBA players are watching their finances. In an episode with Draymond John, The Golden State Warrior talks his first big check, how he learned how to manage his finances and more.
He is trying to create generational wealth for his family. Mighty important in my money playbook! In addition, that he wants to be a billionaire by age 40. That is not a typo. I did not stutter. He said billionaire with a B and not millionaire with an M.
How is that possible? Well, if you invest instead of spend, you can make your wildest dreams come true.
Think of it like this. If you have a $1,000,000 invested with an 8 percent return over 40 years, it would net you $10 million. So imagine if you have that $10 million from the start. You could have over $200 million in that same 40 year time period by just letting it ride.
Therefore, when you think of life, money, saving, and investing: Think Bigger!
MONEY TIP TWO: ONLY HIRE A PROFESSIONAL IF YOU DO NOT THINK YOU CAN DO IT YOURSELF
Some of you may not know it out there, but where you invest your money matters. One of the reasons many bloggers like myself prefer Vanguard are the fees.
Many other brokerages may charge anywhere from 1 percent or higher. Vanguard typically charges less that 1% for all of its funds. It’s admiral funds are among the cheapest!
Saving 1% in fees can mean the difference of having an additional 10 years of retirement income.
Therefore, my suggestion is that you focus on limiting the amount of fees you pay for your investments, if you want to get and stay rich; pay less in fees.
Betty was always the rational, cool and level-headed one of the trio. She was good-natured and down to earth compared to the glamorous vamp Veronica.
Mature beyond her years and nice, Betty, was the calm in the otherwise hectic dating storm that was between the girls and Archie.
Veronica was rich and spoiled, but Betty was middle-income and demure. If you want to live lavish, then be my guest.
However, if you are unprepared when the credit card bills arrive, then you are in trouble. Being sued by your land lord because you spent all your money at the mall looking cute is just plain idiotic.
Worse yet, living in your parents basement with maxed out credit cards while you pay $0 in rent!
Focus on keeping your housing, transportation, and food bills low so you can keep your savings high.
It was a great feeling when I was able to start saving and investing over $10,000 a year. My goal was financial independence.
That would mean I saved and invested $100,000 in 10 years! That does not include any earned interest. With compound interest, I was able to save, invest and earn $50,000 in only 2 additional years!
Forget spending and shopping. Keep your eye on the prize.
Forget Vegas baby! It’s all about Financial Freedom baby!
So those are my 3 tips from Betty & Veronica. I’m signing off now.
Have you ever heard of a hedge fund? If not, I will explain here for you.
A hedge fund is an investment pool with a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.
A simple hedge fund definition is: a hedge fund is an alternative investment that is designed to protect investment portfolios from market uncertainty, while generating positive returns in both up and down markets. Throughout time investors have looked for ways to maximize profits while minimizing risk.
Hedge funds got their name from investors in funds holding both long and short stocks, to make sure they made money despite market fluctuations (called “hedging”).
According to Jim Cramer’s thestreet.com, because of their nature, hedge funds are typically only open to qualified (read: well off) investors, although not exclusively.
Simply put, a hedge fund, like a hedgehog, has a narrow focus and does one thing really well, which is to make money no matter what. However, in life it is usually the person who has much knowledge, as Rory Gilmore of Gilmore Girls would always say, that tends to do better in life.
Knowing a lot about one thing (like a hedgehog) is great, but knowing a little about a lot of things (like a fox) can be even better.
Truth be told, I just want to collect my compound interest and dividends the same way Sonic the Hedgehog collects those rings.
Sonic, the protagonist, is an anthropomorphic blue hedgehog with supersonic speed. Typically, Sonic must stop antagonist Doctor Eggman’s plans for world domination, often helped by his friends, such as Tails, Amy, and Knuckles.
The game was released in 1991 and is still one of my favorite Sega Genesis games. Solving puzzles, saving his fellow animals, and the world is all part of Sonic’s charm.
The Greek poet Archilochus wrote, “the fox knows many things, but the hedgehog knows one big thing.” So which are you? Are you the hedgehog or the fox when it comes to investing?
IT ALL COMES DOWN TO RISK How risky are you?
Do you dive right in or do you take calculated risks?
In my experience, you should know your limits and then stop right there. Especially, when it comes to your money.
If you cannot afford to lose more than $100, then that is your risk level. If you cannot lose more than $5, then that is your risk level.
Once you decide to cross that mark, then you are in uncharted territory my friend. You do not have to push yourself to the limits.
Unlike Archer, the world’s greatest spy, you do not have a private detective or any other type of agency that will bankroll or bail you out in case of an emergency.
You must provide your own safety net by hedging your bets and always having an emergency fund.
SAVING FOR A RAINY DAY OR A MONSOON, WHICHEVER COMES FIRST You must hope for the best, but prepare for the worst.
Remember prince charming or princess moneybags is not coming. You are ON YOUR OWN!
Once I learned this lesson, I took steps to change my financial life. First, I set a goal. Second, I wrote it down. Third, I executed. Lastly, I watched my bank balance go up. As will you, if you follow this plan.
You need to set a goal. Mine is $100,000 USD in savings. Then you must write it down, as a goal that is only in your head is a wish. Then you make a plan and get to action. Mine was setting a savings goal per year and went like this: Year 1: $600 saved Year 2: $1,200 saved Year 3: $3,500 saved Year 4: $13,333 saved Year 5: 14,000 saved Year 6: $15,000 saved Year 7: $17,000 saved Year 8: $18,000 saved Year 9: $20,000 saved Year 10: $25,000 saved
If you add these yearly amounts, you will see that by year 9 I will have saved $102,633.
My goal will have been met after almost a decade of diligent saving. You are no longer living paycheck-to-paycheck and can handle any emergency that comes your way.
SLY AS A FOX BUT THE FOCUS OF A HEDGEHOG I say why not take attributes from both.
Be agile and cunning when it comes to investing and staying away from actively managed funds in favor of passively managed index funds.
Your laser-like focus will be on index funds just as a hedgehog is good at that one thing, you will be at focusing on one index fund: VTSAX.
This fund is all inclusive as it holds the entire stock market in its hands. You will see that over time the price has gone up. Therefore, as an investor, you must play the long game. When stocks go down, you buy. Basically, whenever there is a recession. When they go up, you hold.
This is solid advice. I need you to listen. Please don’t go. DON’T HANG UP!!! WAIT!! BUT…BUT…
If you want to place your bet on this course of action, I will bet you the same amount as Eddie Murphy and Dan Aykroyd did in Trading Places, $1!!! As that is my risk level, in this instance.
The idea is not to live forever, it is to create something that will. – Andy Warhol
I’m back with another blast from the past. This time I’m taking you back to 1985 with The Heavenly Kid.
The movie poster image says: In Life & Love, We’re All Just Winging It.
However, in the real world “WINGING IT” isn’t going to cut it.
Anything you want, you are going to have to work for and pursue it. You must devise a plan, write it down, determine a strategy, chart a course, set sail, and execute that plan until you reach the finish line.
One of my favorite films from the 80’s was this gem. The movie had a kick ass soundtrack too!
What I really loved about The Heavenly Kid (THK) is that in the end what mattered most was people and not things.
Take a walk with memory down memory lane. You will not be sorry you came along.
Pinky promise.?
I pinky promise you.
The synopsis is as follows: A hip guardian angel named Bobby Fantana, who died in a car race in the 60s, reluctantly agrees to watch over lonely 80s high schooler Lenny Barnes who needs guidance on how to become cool.
This is how it all went down.
A young greaser-type rebel, challenges Joe Barnes (Mark Metcalf) to a game of chicken for making a pass at his girlfriend Emily (Jane Kaczmarek). Bobby wins the race easily when Joe dives out of his car, but Bobby is unable to get out of the car in time due to his bracelet getting caught on the gearshift. He dies as his car plummets over the cliff into a fiery wreck.
I know this is some sad sh*t, but it does get better.
Although, Bobby is no longer with us there is still some good he can do.
He wakes up aboard a speeding train, which stops at a station housing a huge escalator going up into a bright white light, which one of the attendants refers to as “Uptown”. Bobby is denied entry, and Rafferty (Richard Mulligan) appears and explains that he isn’t considered ready yet and needs to carry out an assignment in order to earn his ticket Uptown.
That train is hilarious. Basically, it is like some form of purgatory, but without any maliciousness. After what seemed like an eternity and many years in limbo, Bobby is finally given his assignment: he is to return to Earth and act as a guardian angel and friend for Lenny Barnes (Jason Gedrick), a promising high school student who is constantly picked on in school, particularly by school bullies Fred Gallo (Stephen Gregory) and Bill McIntyre (Beau Dremann).
The one and only Jason Gedrick.
Iron Eagle 1986 young hero
However, Bobby is instructed that he is only allowed to reveal himself to Lenny and nobody else.
Ooh, plot thickens.
Basically, Bobby is not allowed to enter heaven but has to stay in one of the lower levels or downtown until he has worked enough as an guardian angel in order to deserve paradise. Like all good things, you have to earn it first.
Get out the popcorn, it’s going to be a good read.
WINGED ADVICE #1: CONFIDENCE IS KEY
When Bobby meets Lenny he is for lack of a better word; a nerd.
Just for flare. I am providing one of my favorite meet and greet handshakes of all time. By my favorite WWE wrestler Mach Man Randy Savage with Hulk Hogan. Now he had style and oozed confidence!
And not the Steve Urkel type, but a kid that just has no confidence. Bobby is about to help him change that.
The first time he sees Lenny he is being picked on by a bunch of jerks from his high school. He notices that the “kid has no confidence cause he’s got no style.” Truer words had not been spoken.
I will not ever forget being teased in school. It only made me stronger. I remember thinking this is bull$#%t! I’m only here to get an education. I’m not here for you or your approval!
All people cared about were looks and popularity. I was like there has to be more to life than they way you LOOK!
I decided to ignore them and hit the books and the gym. I found an upperclassman that was willing to do my hair anytime I wanted, then I worked on having impeccably flawless hygiene and appearance.
I felt this. Just like Regine Hunter (Kim Fields) in Living Single.
I was like Beyonce in that b*tch! I WOKE UP LIKE THIS!
All the bullying and teasing stopped REAL QUICK.
That is why I focus so much on my health, education, and building wealth. And it paid off in spades. I own a home, have multiple retirement accounts, I have over $100,000 in just 1 index fund and I own a bunch of those! Thanks Jack Bogle for creating the first index fund in 1975 with Vanguard.
I’m not the only one that has been teased in school. Lots of folks have. I recently saw an interview with William Zabka (Johnny from The Karate Kid) while he was promoting Cobra Kai with Ralph Macchio.
When asked about bullying he said he hates it. There are 3 core people involved in bullying: the bully, the one being bullied, and the witness. Go tell an adult or someone you trust what is going on. Speak up. No one knows unless you tell them. Don’t be afraid to stand up, say something or defend yourself. Remember that bullying is only a season; it is not your whole life. This too shall pass. It is not permanent; it is only temporary. At the time, it seems like your whole world because in that moment it is, but you will grow up an this will end. Yes, he said all of that. He played the bully in a movie. That is fiction. In real life (IRL), he is anti-bullying.
In addition, I remember hearing Jillian Michael tell her story. She was chubby and overweight. The kids were relentless in their teasing. Once she started training in martial arts she said the teasing dried up like prunes and stopped real quick. Therefore, if you want to do anything in this life, the first thing you have to do after making sure you are safe, dry, and feed is to build up some confidence. It can change your life faster than just about anything.
How do you get it? Create a safe place and space for yourself to be who you are, but also to have a clean and neat appearance.
Coco Chanel once said the fastest way to change your appearance is to never underestimate the value of fresh-shaped eyebrows, clean glowing skin and a good haircut.
Basically, focus on hair, teeth, and skin.
You do this by drinking water, exercising, and eating well.
The End.
As far as clothing goes, just do the basics. You are in high school for goodness sakes! All you need are jeans, t-shirts, sweaters, and sneakers.
For the ladies, some fitted tops, jeans, skirts, dresses and heels. A nice blazer and black leather jacket are staples along with nude heels and black pumps. A little black dress is always great to have.
And most important, nothing too TRENDY! Styles change quick. They change so fast that styles have already changed while I was typing this sentence on this post!
Stick to regular staples and basic solid colors and you will never go wrong. Remember that red is the color of confidence.
Also, that you are your biggest cheerleader. You have to believe in yourself or otherwise no one else will. Find a way to build up your confidence and you will go a lot further along in your life.
That’s just my $0.02 cents. Smooches 💋
WINGED ADVICE #2: CRUSHES DON’T LAST FOREVER AND NEITHER DOES BEING BROKE
Lenny has a crush on a girl named Sharon who is the most beautiful and popular girl of the class. He was totally obsessed.
But she does not even notice him until Bobby helps Lenny change his image and boosts his confidence. By doing this Bobby dresses Lenny up making him a playboy and tough guy so that he gets what he wants although Bobby knows that this is not the best.
Lenny spent so much time obsessing over Sharon that the girl that really liked him wasn’t even in his eyesight, but was right in front of him in his friend Melissa (Nancy Valen).
Look we have all been there. Young love. Sometimes it goes unrequited. You will love again. I promise you. Like a friend told Romeo, during the infamous feud between the Montague’s and the Capulets), he must move on from Juliet, there are other beauties.
Shakespeare had that right. Nothing lasts forever. You must be willing to move on once you have done all you can. Did you do your best? Alright then, move on. Time heals all wounds and this includes a broken heart.
Now let’s talk money.
Don’t sped money like a drunken sailor.
Once you start earning some income, put some money aside. Even if it is only $5 dollars a week! This will get you in the habit of saving.
They say the niches are in riches. If that is so, then saving is the niche to building lasting wealth.
I started with nothing and slowly built what I have. First, I was saving $1 a day. Then it was $50 a month. I slowly started bumping it up every chance I got. Got a raise. Save it. Got a windfall. Save it. Can’t just let that money sit. Money can’t be idle.
Money must be invested and it has to keep circulating. Spend on what you need. If there is excess, then you can buy luxuries, but not before you have earned the money first. Learn it. Live it. Love it.
I finally started doing $150 a month and then doubled that. I started reading more on saving and figured “What the heck?” just cut out the crap, stop spending and save.
That is when I leap frogged from saving $3,600 a year to $5,000, $8,000, $10,000 and then $13,333. I sold, stop buying, or earned more and saved. From sacrifice comes great things. Get it. Got it. Good.
WINGED ADVICE #3: SHOPPING FOR A PURPOSE
One of my favorite scenes in the film was the shopping scene. Bobby takes Lenny shopping for new clothes. This boosts his confidence.
In addition, he builds Lenny a car. Now that he has a new set of wheels and fancy clothes, he is ready to take on the world.
I am all for new clothes and buying things you need. Lenny needed to burn those clothes he had or donate them (waste not want not). They made him sad and lonely. He went from geek to chic. And his attitude along with it. However, they only got what he needed. No $5,000 Rolex, or $700 sneakers. Enough for the kid to get by and feel good.
That is what I do. That is how I was able to save thousands in annual clothing expenses and bank that money.
He was also economical in how he got a car. They went to a junkyard and put it together from all the spare parts lying around. No $500 car note there, which is the average that Americans are paying. Stop trying to impress people with your fancy gadgets.
Take a note from 50 Cent’s playbook. When in doubt: sell. Here is a cautionary tale.
Therefore, he is paying $840,000 a year for his manse. He hasn’t even eaten yet! No gas was put in the Hummer (fill in any fancy car name here) and no food was put in the fridge. And don’t forget health insurance. That’s all got to be paid. In 9 years, 50 Cent will have paid over $7.5 million just to do nothing but sit on the sofa in his house! This 19 bedroom manse had no purpose other than to impress people. No one NEEDS 19 bedrooms unless they are running a bed and breakfast. Matter of fact, having a 10,000 or more square ft home is like having a small hotel. I’ll pass.
WINGED ADVICE #4: FOR THE LOVE OF MONEY OR FAMILY
Bobby later finds out that Lenny’s mother is his former girlfriend who has married another guy. Although not being allowed he makes himself visible to her…
and after some additional situations take place Lenny is challenged to a chicken race at the local quarry by Fred, Sharon’s former boyfriend. Having been told by Rafferty that Lenny will die just as Bobby did earlier, Bobby offers to trade his own chance to move Uptown (essentially, his own immortal soul) to save Lenny’s life. He vows to give up his soul. A selfless act indeed.
This unknowingly earns Bobby a trip to Heaven or “uptown” as the movie refers to it. Rafferty explains to Bobby that he had learned to love and value someone more than himself, and that is how one earned a ticket Uptown.
There are going to be times in this life when you will have to chose what matters most to you. What do you value? I remember hearing the Osmonds father (yes, those Osmonds of Donnie and Marie fame) tell his children: faith, family, then career.
I pick my investments based on what I value most: freedom. The freedom to choose what I do with my life and my time.
Money is infinite, but time is not. Once it’s gone, it is gone forever.
That is why I only do what excites me. You only get one life. One shot. One chance. I suggest we all do what Eminem says, ” You better lose yourself in the music, the moment You own it, you better never let it go You only get one shot, do not miss your chance to blow This opportunity comes once in a lifetime.” I agree wholeheartedly.
If you like this post, then check out the film The Heavenly Kid. Because life and you money are too important to “just wing it.”
Why the difference? Because women earn on average $0.80 for every dollar a man earns.
Therefore, men have to save less and women have to save more in order to reach the same goal of fill in the blank $ dollar amount here.
WHY IS SAVING SO CRUCIAL?
No one can arrive from being talented alone, work transforms
talent into genius. – Anna Pavlov
All wealth building starts with saving.
Don’t let anyone tell you any different.
Sure you may have to invest and diversify your money such as investing in stocks, real estate, and bonds, but you have to save money FIRST before you can buy or invest in anything.
If you have ever read a Jane Austen or Charles Dickens novel, then you know the theme always comes around to money.
Considering that Jane Austen never married and Charles Dickens grew up in a poor house, it is not surprising that the authors chose to hone in on this topic.
The sorted topic of coin. Both authors are British and in that society they have a class system.
You are either born into wealth and inherit it or you must
work for many years and earn your fortune.
Many of the landed gentry lived off of their land. Profits that were made from owning land was how they made a living.
That monthly sum could be the difference between prosperity
and being locked away in poor houses, which were a form of jail for the poor.
Here in America, we do not have a class system of royalty, nobility, tradesmen, shop keepers and owners, or farmers.
However, we do have a social ranking and social class. Those are the haves and the have nots.
If you want to find yourself in the realm of having, then
you best start saving money for your future today.
Many years ago, I was laughed at for my paltry savings
amount of 9% per year.
Now I am saving over 40% of my income.
No one laughs at me now.
HOW SAVING MONEY CAN MAKE YOU HEALTHIER
They say wealth equals health. And that is an understatement
if I ever heard one.
Having money allows you to pay for all of your needs.
This includes doctor visits, healthy food, and medicine.
Eating well not only affects your waistline, but also your
brain functions.
It is said that children that do not get the proper rest,
nutrition or eat breakfast before school perform lower on tests and have harder
times concentrating.
Success depends in a very large measure upon individual
initiative and exertion, and cannot be achieved except by a dint of hard work. –
Anna Pavlov, Prima Ballerina
When you have the means to pay your bills, eat, and work in
good health; then you are fortunate indeed to be able to pay your own way.
Being able to afford your monthly nut just makes you happier
overall.
You are protected from the pitfalls of many of life’s
hiccups.
You can get just as much pleasure saving as you can from spending.
I seem just as happy being able to have the ability to
afford items than am to actually purchase them.
It is a great feeling to payoff debt. Every check you write frees you from obligation to lenders. Then your money can stop serving THEM and start serving YOU.
Make a goal to write down evet single bill you have and
person you owe.
I started doing this and tackling every debt I had one by
one.
Once I paid of my car, I owed $30,000 and my personal loan,
I owed $20,000, then things started really taking off from there.
I was able to take these monthly payments, $450 and $333
respectively, and start investing that money. Now that money works for me in
the stock market.
Here is one stock I recommend: VFINX or VFIAX. (You can also invest in the VTSAX or any equivalent)
Portfolio composition of VFIAX
Month-end 10 largest holdings (22.40% of total net assets) as of 03/31/2019
1
Microsoft Corp.
2
Apple Inc.
3
Amazon.com Inc.
4
Alphabet Inc.
5
Facebook Inc.
6
Berkshire Hathaway Inc.
7
Johnson & Johnson
8
Exxon Mobil Corp.
9
JPMorgan Chase & Co.
10
Visa Inc.
Whatever you do just make sure you not just SPEND money but SAVE money.
Recently, I began reading the book The Simple Path to Wealth by JL Collins.
The book originated with letters to his daughter about
financing.
On my path towards financial freedom, I have decided to read
the books of other Personal Financial Bloggers.
The book du jour: The Simple Path to Wealth.
Do you believe in coincidence?
I don’t believe in coincidence. I think that all things work together for good. – Kathie Lee Gifford
“I do not believe in meaningless coincidences. I believe every coincidence is a message, a clue about a particular facet of our lives that requires our attention.” – Deepak Chopra
Well, it just so happened that the last finance blogger I interviewed for this website was Dave of Accidental FIRE called: Accidentally Wealthy on Purpose.
In that interview, he informed me that his favorite personal
finance book was The Simple Path by JL Collins.
I mean what are the odds that I would be reading that EXACT BOOK at that EXACT MOMENT. 😲 Pretty slim that is for sure.
I too thought the book was pretty good and gives some sound
financial advice.
I even tweeted out that advice directly from the book. And to my surprise JL Collins gave me a like. I appreciated that! 😉
What I learned about money from JL Collins.
1. Save 50% of your income. 2. Invest 50% of your income. 3. Avoid debt.
After, doing that interview and sending the tweet and the
getting a like form the author, I decided that I must do a book review on this
book. Why? I feel that if you see something three times (3x), then it must be
for a reason. They say things happen in three’s. So I went with it!
Let’s get to it!
Drum roll please.
THEEEEEEE SIMPLE PATH TO WEALTH!!!!
The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life
WHO IS JL COLLINS?
He has been an investor since 1975. In 2011, he wrote a
series of letters to his daughter about money and investing; which morphed into
jlcollinsnh.com and led to this book.
Welcome inside the mind of the man who started the infamous Stock
Series on his blog.
The foreword of his book was by Mr. Money Mustache.
I think that is one of the funniest lines I have read about Personal finance and life from him.
“Let’s face it: Most investment books are boring. Dull.
Uninspired. This book brings managing your money to life.” – Paula Pant, Afford
Anything
“The media claim stock investing is no better than gambling.
Collins cuts through the crap. He demonstrates a simple level-headed way to
wealth that will lead you to a richer life.” – J.D. Roth, Founder Money Boss
and Get Rich Slowly
I have to agree wholeheartedly with J.D. Roth’s assessment. I also got to meet him at FinCon. Nice guy 😉
See my post on FinCon
FinCon 18: The Recap From Your Friendly Neighborhood Greenbacks Magnet Part I and Part II
After reading the book, it was really eye-opening. One of the simplest approaches to investing and building wealth that I have ever read and I read A LOT!
How I felt when I started learning about personal finance.
Finance Lesson numero uno: rent books instead of buying them; it's cheaper.
Now let me tell you why I feel that way about the book.
DEBT IS A BURDEN
There is no free lunch. tweet
There is no such thing as E-Z financing. Credit cards come
with enormous interest rates. If you look on credit card statements today, it
will give you two numbers.
One is how long it will take to pay off your balance paying
the minimum amount.
The other is how long it will take before your balance is
paid in full after three years.
Knowing that you can be paying off that sweater from last
year until your kids are ready to graduate from college should scare most
straight to the path of cash only!
Debt causes too many constraints and limits personal and
financial freedom.
Paying a $10 minimum on a $300 balance is a sure fire way to
the poor house.
If you owe more than 5% interest on any debt, then get rid
of it ASAP. And forget all these consolidation loans and balance transfers.
That’s like robbing Peter to pay Paul. Just work on steadily paying off the one
with the most interest and then continue until all the debt is gone.
Then make being debt free last forever.
WHY YOU NEED F-U MONEY
We all need it.
You know why? Because sh*t happens, that’s why.
What happens if you chip a tooth, get hit by an uninsured
motorist, and the basement floods all in the same week?
You have to pay to handle of these situations. If nothing
else, an insurance deductible; which can run into the thousands as house
flooding can be a deductible as high as $5,000!
He also said comfort is the poison. Too much of it can slow down your progress on the road to wealth. All I mean is to stay hungry. I’m just saying there are different levels of wealth.
So trust me when I say you need F-U Money.
How I feel when I show facts, but people still don't believe me. Then something happens and they tell me I was right. 😐 pic.twitter.com/ovdKxSRHml
Mr. Bogle created the first S & P 500 index fund. Due to its immensely low fees because the investors own Vanguard and not some company or board of directors that want to please shareholders, this book advises an investment in the VTSAX at Vanguard.
JL Collins advice: Invest in index funds with Vanguard and
keep what is yours.
I concur.
I need all my coins. I want ALL of my MONEY! I aim to keep as much of it as possible. I’m almost as bad as Scrooge McDuck. Almost.
Remember that episode of Ducktales when Fenton Crackshell was counting all of Scrooge’s money that he dumped into the lake in “Liquid Assets Part 1.” That’s me! 🤣
This total stock market fund holds the entire U.S. stock
market fund; which includes about 3,700 stocks. As most of these companies are worldwide and
involved in international markets, you only need this one fund. Simple right?
😉
And it is comprised of 80% of all the top funds in the S
& P 500, so no need to diversify as you already have it here.
If that did not convince you, the maybe the best
stock-picker of all time can: Warren Buffet.
He owns the company Berkshire Hathaway (stock symbols; BRK.A
and BRK.B)
In the 2013 Berkshire Hathaway annual shareholder letter,
Buffet advised the following:
“What I advise here is essentially identical to certain
instructions I’ve laid out in my will. One bequest provides that cash will be
delivered to a trustee for my wife’s benefit. My advice to the trustee could
not be more simple: Put 10% of the cash in short-term government bonds and 90%
in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.)”
I am a Vanguard and Berkshire Hathaway investor and I approve this message. 😉
I'm a Smart, Harworking, and Reliable citizen and I approve this message. 👍 https://t.co/ev77LEGLhc
/cdn.vox-cdn.com/uploads/chorus_image/image/34731525/165745_175176732519555_7396373_n.0.jpg?w=474&ssl=1)
