Showing posts from November, 2022

5 Myths About Investing and The Stock Market

Here are 5 myths about investing in the stock market explained. The insights in this post will change a traditional view on investing, trading stocks or ETFs and about how the stock market works. Myth #1: The way to forecast if a stock is a good buy is by studying the graph. Behind door number one is one of the most common myths I see today. Many people will look at the stock’s price graph and if it’s been going steadily up over a period, they will buy the stock. The belief is that the past price and upward trend on the graph indicates success and that the stock is likely to continue trailing upwards. But the past doesn’t equal the future and the price of the stock is not equal to value of the business behind the stock.  If you’re currently buying stocks this way, a good way to make a small change is to add in a few steps before you buy the stock: Check the company behind the stock. Is it profitable or reporting a loss? Does the company have debt? And does the management have integrit

How to Pay Yourself First

You might have heard about the concept of paying yourself first and here you’ll get my step-by-step recipe that can turn your focus from bills and expenses to being able to pay yourself before you pay anything else. Today you might be in a situation where everything you earn is going to expenses and fun. Most people pay their bills first but with this concept you pay your bills last. It’s really a mindset change more than anything else. You want your money to first and foremost go into “cash-flowing asset” and in plain English that means something that is producing cash for you. These are my steps; they don’t work for everyone, and ex. author Robert Kiyosaki would likely not recommend you do it this way because he would rather want you to set a goal on how you could earn more rather than cut anything out. But this is what worked for me and if you would prefer to set a goal like Robert Kiyosaki, jump to step #2 Step #1: Cut Down on Unnecessary Expenses Make a list of everything you buy

How to Get Out of Debt

The interest rates are increasing and with that so is the interest rate on your debt. Whether it’s mortgage, credit card, car or other types of debt, we could potentially see further increases in the years to come. This means that you want to decide how to pay off your debt as soon as possible so your debt wont snowball. Read this article if you’re trying to save money because the principles will be the same. This is my method and I’ve tested it on myself, and it works! If you’ve been following me for a while, you know that I had a lot of debt when I was in my 20’s. I can’t say I spent the money on something valuable. It was on takeout food and café latte’s, new outfits, handbags and shoes – plus a student loan. At the end of the month, I would have sleepless nights because the credit card bill was due. The new month would start in minus, and I would never plan ahead, so having to buy Christmas presents came at a surprise every year. Haha. Whether or not your debt comes from mindless s

Guest Article: Why Are Humans Terrible Investors?

This fantastic article you're about to read is written by Wes Chambers, the investor behind @InvestingWithWes  on Instagram. The title of this article might make some of you pause and wonder why an investing blog would post an article about terrible human investors . But do yourself the favor and read on because you'll find some real important knowledge-nuggets and what to do, to not be a terrible, human investor but instead how you can stay rational when the masses aren't and the herd mentality has taken over.  Why Are Humans Terrible Investors? By Wes Chambers In this post, I am going to break down three reasons why humans are terrible at investing. When it comes to investing humans are wired in a way where long-term thinking is very difficult and us being emotional can be our worst enemy. In the stock market, you need certain attributes like patience, the ability to think independently, the ability to learn from your mistakes, and be also unemotional. Herd Mentality. In