In all my years of investing, nothing has grown my portfolio more than my savings. I have done well with a couple of accounts over the past 4 years but that’s mostly due to the market crash of late 2008. Instead of fleeing the markets, I jumped in with both feet and picked up many stocks on a fire sale. I am, however, conscious of those performance reasons and as such I have continued to focus on saving what I can to grow my wealth. Saving plays a big part in my wealth building strategy.
The best saving you can do is to pay yourself first. Take 10% and put it away and never touch it. Do what you can to avoid touching it. Temptation may be there, but if you touch it, you have to start over and time is crucial!
I put 10% of my gross income in our company defined contribution plan and my employer gives me a 50% matching contribution so that’s
Continue reading Your Savings Ability is Your Golden Goose
Every now and again, you’ll hear that a stock split is announced and for one reason or another, the stock might go up … The fundamentals of a company do not change when a stock split is announced. There would appear to be some mental game with the stock price around the announcement and the day the stock splits though and momentum traders do take this opportunity to play the mental game.
Rational For Stock Split
There are some companies that have never split their stock. Berkshire Hathaway (BRK.A) and Google (GOOG) are 2 examples. It is rare that a company will not split their stock as a high stock price appears to create a mental blocker for many investors not to mention the inability to make a purchase.
Companies will issue a stock split for the mental game There are no changes in valuation but there is a perception the stock can be more appealing to investors. Since the role of the board of directors is to grow
Continue reading Are Stock Splits Good
Credit cards can be the source of grief but when you can manage your finance and budget effectively, it can be a great asset. If you only had cash, you could not be purchasing online and in this day and age, being online and connected is pretty much assumed. You should then have credit card that serves YOU!
Credit Card Options
Rewards Cards: Air miles rewards have been the standard for many years but you also have many store or gas station rewards nowadays. If you have been using a reward card for a long time, I strongly recommend you evaluate its benefits again.
Cash Back Cards: Cash back is just that simple. You get cash back from your purchases and the cash back percentage is different per card and per stores. Generally speaking, you get 1% cash back on your purchases but in some cases, you’ll be able to get 2%, 3% or even 4%.
Related: Cash Back –
Continue reading How To Choose The Best Credit Card
Believe it or not but I have been investing for 20 years now but only in the last 5 years have I REALLY been investing. What I did back then is follow the rule of thumbs advertised by the financial industry… That process did not really fill my coffers unfortunately. Let me say that focusing on saving 10% of your income is a great rule of thumb but buying mutual funds is not … I really wanted to buy stocks but I had a mental blocker that I needed more money to invest. It’s true that back then the fees were higher but when I found Computershare and the Transfer Agents 5 years ago, I could not be happier. I was able to slowly start investing in stocks while planning my transition out of mutual funds. I had to break up with my financial advisor …
Related: Easy Investing With Computershare
With a focus on dividend investing, I was on a really good
Continue reading Is it worth to compare your portfolio to an index?
With the economy slowly starting to bounce back from a rough recession, an increasing number of people these days have begun to work up the courage to invest their hard-earned money once again. However, for those who are still skeptical about the market or who are contemplating between saving their money and investing it with the possibility of making a profit, this can be quite the conundrum. Here are some tips to help you decide whether it’s best to invest or save at this point in your life.
Why Not Both?
First and foremost, it is important to realize that this does not necessarily need to be an “either/or” situation. It is possible to both invest and save your money regardless of how much you may have to work with. Determining what amount to save and what amount to invest, however, is something that will take a bit of careful thought and research.
Related: Pay Your Mortgage
Continue reading To Invest or Save? That is the Question
Ever wondered what banking could be like if it serviced you according to your preferences? Technology has really help in many areas but I find that banks are really slow at adopting technology to provide better services as opposed to looking at another income channel for their juicy dividends (You know I love their dividends but I hate the fees as a customer)
Here are 4 services that would add to my banking satisfaction as a customer.
Free Chequing Account
Many online banking institutions and credit unions already offer a free chequing account. Other big banks offer you free chequing if you have multiple products or a minimum. How about, if you have your pay deposited here, you get free chequing account?. Since I have no strings attached to my pay, I am now free to roam where I want regardless of where my mortgage is.
I really don’t understand why it’s so complicated to make the chequing account free. Raise the fees for talking to a teller if
Continue reading My Banking Utopia
The economic situation around the US spending seems to be on a break until January when they will need to yet again look at the debt ceiling. Overall, my portfolio wasn’t really impacted nor was I worried about it. In fact, I was curious if there would be opportunities. As you can see below, my dividend income continues to come in like clock work. As long as the companies you invest in are healthy and continues to meet the reasons why you purchase them, you should be good.
There is definitely no way I can make $7,000.00 this year in dividends. That was my goal for the year but, unfortunately, I have not added enough money to my dividend portfolio to reach that goal. My automated RRSP contributions go in my defined contribution plan with my employer and I need to save above and beyond for my dividend portfolio. However, I was able to make a small contribution to my RRSP and I simply added to KO this
Continue reading Dividend Income – October 2013
I never thought I would look at a cash back credit card this way, but I am essentially earning cash from my spending and it is by no mean a small amount. In fact, if I compared the cash back from my Scotia VISA Momentum card, I earn more than twice what my highest dividend stock is paying me (see table below). When I look at dividends, I focus on the income my assets are generating. How is that different from a cash back credit card? I get paid once per year like a special annual dividend.
I have had this card for 2 years now and I love it. It’s funny how getting cash back feels different from rewards. The ability to have cash back really changes how it’s valued. Pretty much everything goes through this card for us. I am one of those customers who will use it for a small amount of money without abusing small shops. Obviously, the
Continue reading Cash Back – A Special Annual Dividends
Investing legend Warren Buffett is one of the greatest value investors of all time, but he is also a brilliant FX trader. Here are 10 FX nuggets from the Buffett table.
1. Buffett quote: “Risk comes from not knowing what you’re doing.”
Some investors jump into FX trading looking for a quick profit. For the novice, currency trading carries increased risk due to the lack of a regulated exchange and the need to predict near-term currency movement driven by national policy. The real risk, however, is leaping without learning the ropes first.
2. Buffett quote: “When you combine ignorance and leverage, you get some pretty interesting results.”
FX traders use leverage as a tool of the trade, but in ignorant hands it’s like handing a loaded gun to a toddler. Traders can trade $100,000 on a deposit of $1,000. This is heady stuff for people from the investing world and even seasoned traders who let the lure of margin get the best of their
Continue reading 10 of The Best From The Buffett Table
This is a very real conundrum for many. One one side of the coin, you want to save money by doing many things on your own and on the flip side, you want time back and will pay for someone to do work. Unless you have magical elf (or a massive extended family), you’ll have to make a decision.
Do you find yourself in this situation? What do you do?
Which Do You Do? Save Time or Save Money?
I do both. I need to do both. I have a couple of young active kids with extra curricular activities and it takes time to manage their schedule and ours.
I Save Money Here