There has always been a debate on whether it is better to automate your finances or not in personal finance. Today I will explore the theory behind automation and what I have found to work best for me.
The argument for automation:
An army of personal finance writers generally recommend that Continue reading
On the occasion of the Chinese New Year this Monday, I wish you all 恭喜發財, or, “Gong Xi Fa Cai!”, the traditional greeting for the Chinese New Year, meaning, “wishing you prosperity”.
The Year of the Dragon comes about once every twelve years. According to tradition, the Dragon brings in the four blessings of the East: wealth, virtue, harmony and longevity. Unlike our Western Calendar, the Chinese use a lunar calendar, depending on the sun and moon cycles to determine years.
The Dragon is not an earthly animal, so is normally associated with a year to make grand things happen. It must serve as a reminder, that, whoever has dreams, that now is the time to pursue them and make them a reality.
I don’t know about you, but I can use all the encouragement I can get. I’m going to unleash my inner dragon to make this year a success and I wish for you to do the same.
“Gong Xi Fa Cai!”
Kevin Mzansi
Image by heypatrick
I can guarantee that 90% of people reading this article pay too much for their motor car insurance. Just because you have received the best insurance quote when you signed the contract does not mean you pay the least. Insurance is a must to protect yourself against the unexpected, however, you should not be paying any more than you have to. Let me explain why: Continue reading
A big part of personal finance is protecting yourself from predators that are looking to part you from your hard-earned money. Today I will explore the “pump and dump”, a form of fraud that uses clever Internet marketing to exploit inexperienced investors’ tendency to believe Internet hype over diligent research. Continue reading
Today I will be discussing the principle of “keeping on, keeping on” and how it applies in the realm of personal finance, specifically debt. We all know that some goals require one big push to get them completed, while others require a consistent application of effort. In personal finance, the vast majority, be it, paying down debt or saving for a down payment on a home, require consistent application over relatively long periods of time. Continue reading
A big part of succeeding in building wealth and success in personal finance, in general, is knowing how to grow your money. A couple of weeks ago we talked about what a Unit Trust is. Today I will introduce you to the Unit Trusts’ Collective Investment scheme cousin: the ETF or Exchange Traded Fund.
If William Shakespeare were looking at his brokerage account in 2009, I am utterly convinced that he would have changed the iconic line: “Beware the Ides of March” in his play “Julius Caesar”! Today I will discuss how trading on margin entices you to buy more, when things are rosy and forces you to sell when the market has the potential to turn towards the good.
(This is the third post in a series of three about trading on margin. In the first post I introduced what margin is. In the second post I explained Initial Margin, Maintenance Margin and Margin calls. In this post I explain the effect of margin on investor psychology and trading behaviour.) Continue reading
In my previous life as a hotel manager a co-worker and I used to enjoy bantering about our adventures and misadventures in investing. I remember one such conversation in early 2009, during the worst of the great recession, when he was complaining about all the margin calls he received the previous days. Today I will be explaining what a “margin call” is and why it happens.
(This post is the second of three posts on “trading on margin”. For a refresher on “margin” check out the link) Continue reading
In many “building wealth” books and articles, the concept of leverage is often touted as the “magic” one needs to make money quicker. One of the main forms of leverage given is normally OPM: Other people’s money. Today I will talk a little bit about OPM and how it relates to trading on a stock exchange.
(This is the first post in a series of three on how margin accounts actually entice excessive trading and cause you to break the “buy low, sell high” law for creating wealth.) Continue reading
Image by nigelhowe
Happy New Year to you , fellow Financial Freedom Fighters!
Welcome to the excitement of a brand new year and whatever gifts they may hold for you. I have a feeling that 2012 will be a year of breakthroughs and big steps for us. Who knows: that exciting unexpected breakthrough might be right upon us!
After much deliberation I have set myself the following path:
…drumroll please… Continue reading
