This site contains advice on a little bit of everything as mentioned elsewhere however financials are the most important parts of our lives. Even if I get you some medical advice (always consult your physician) you still will need to pay the hospital bill on the way out. So trying to help you all understand how to live a smarter financial life, will make your whole life a lot easier and a lot happier. 

We all remember obviously what happened many years ago in 2007 with the disasters where markets across the globe collapsed due to a housing bubble. Although it has been so many years, it still fresh in our memories because the effect that had is still felt in some people today. What I want to do in this article, is point you towards a similar direction. I am not saying that a crash as big as 2007 will take place, but a crash maybe larger will come along very soon. If you are paying attention at the markets at all (and not just the stock market) you will see everything overvalued. With the election of our new president, we had what people in finance called the “Trump Rally.” What that really means for us trying to understand financials, is that this whole uplift in the DOW etc, is only passion and is only emotion: there is no substance to hold these things together. There is nothing beneath this emotion to justify these prices. What I’m trying to say is that companies, since the election of Donald Trump haven’t been earning more – or at least here wouldn’t be enough time to measure such a statistic piece of information. You remember how the night he was elected, the market just sky-rocketed after a quick dip. That is no company performance or anything that has to do with how well a company is perceived in the market. It has to do purely with a hope, a trust in something much brighter and something greater in the future.

Continue reading Financial Crisis Round #2?

So, first off…if this is the question you have in your mind, you shouldn’t be saying “invest” but rather gamble. Before you stock market maniacs jump in and eat me alive let me explain. It is different to invest in a company that is in the stock market, registered under NYSE for example, and “invest” simply in the idea of the stock market. Investing in ETF’s ins’t really investing as you are putting money on something that has a trend of different stocks: it’s a collection of stocks.

If your idea of the stock market is you put in money, and that spits out cash for you, you are dead wrong. There are actually a couple ways you can play this game:

1. Invest in the long run
2. Do short term trades (day trading or swing trading.)

If you are looking to day trade, then again: it is not an investment. An investment is something you put money in, because you believe the company will do well in the earnings, many products will be sold etc. Putting money into a stock, because of some news out there that is pumping it, doesn’t mean you are investing in it – especially if you are planning to make a quick buck and run. I am not hitting on the quick buck game. I actually used to play it also, and made good money in it. But just know that that, isn’t called investing. 

Continue reading Should I Invest In The Stock Market?

Yes, I know…I’ll bore you again about financials and financial education. However it is just so important – equally important as getting a college education. I mean you can learn about liberal arts and history and what not, but if you can’t understand money and how to deal with it, you are really setting yourself up for failure in your financial life. I mean think about it: almost anything you do in this life is surrounded by money. You don’t feel good and you need to see a doctor? You need to cough up some cash. You want that new line of clothing that Calvin Klein released, you guessed it: you’ll need to run your credit card like crazy.

Many times we have heard our parents and people that used to be our influencers when we were younger say: you need to learn how to save money. And although that is true because you can’t spend faster than you earn, it is also very false. It is very old school if you like. So prior to 1971, this piece of advice would take you real far. I mean it would probably be a good idea. I still don’t agree on trying to scrub pennies together to make ends meet (when you can go out and make more.) But let’s just say for the sake of the argument that it was a good idea prior to 1971. What is 1971? The year of course President Nixon took the US off the gold standard. Because of that, the USD gets inflated and loses value as years go on. So in other words, the Federal Bank is printing money like crazy and isn’t following the gold standard. Why on earth, would you want to save money, when it is being printed like that? I mean if you save let’s say $50,000 (which is very very low for savings but anyway) up to when you become 80 years old, that will probably be worth around $30,000 (depending on how early you started saving.) I mean it is foolish. No one can save their way to wealth. If you are planning to have a good enough retirement to enjoy your grand kids and have something to offer your family, saving is not the way. 

Continue reading Saving VS Making

Wow! Today I’m on fire with all these blog posts. I’m really loving the value I am able to offer you all and always appreciate you guys coming back for more.

In this article, I am going to talk about some very common dilemmas most people have, when it comes to taking out loans, borrowing money etc. The most common way of borrowing money, is using our credit cards. Everyone uses a credit card. In fact, people with less money use it more because they think it’s a piggy bank. Taking out a loan, and the decision to move forward in such a way, is really important as it can affect your financial situation for many years down the road. If you are thinking of taking out a loan to go on a vacation, please get off my blog right now. I don’t need people contaminating the site with foolishness.  Continue reading Should I take out a loan?