When most people classify their assets and liabilities, they include all their possessions in their asset category and any debts in their liabilities. This might technically be correct from an accounting standpoint. However, unless you are planning on selling everything you have tomorrow, I don't think this is helpful from a personal finance perspective. Many of your possessions are a weight on . . .
Creating a passive income is one of the best things you can do for your long term finances. Passive income helps you absorb sudden life changes, and help you pursue your passions and dreams. One of the most reliable truly passive income streams can be from a group of solid dividend paying companies. Dividends are regular cash payments that a company will make to investors just for holding . . .
You should be investing a good chunk of your long-term savings in the stock market. The stock market simply has a record of better returns than almost any other investment available to the average investor. There are, however, people who say that investing in the stock market at all is for fools. But Is The Stock Market Grounded in Reality? One of the main arguments against investing in the . . .
I strongly recommend investing in the stock market. Not all your savings, but a good chunk of your savings that you don't plan on touching for at least 10 years. Simply, over the long term, the stock market returns far better yields than any other investments available to the average investor. Bonds will barely beat inflation, and bank interest rates often return less than the inflation rate, . . .
You hear it over and over- 'the quickest way to wealth is real estate.' Self made millionaires often attribute their wealth to real estate, and retirees count on income from real estate to supplement other income sources. But how do you invest in real estate? Traditional Real Estate Has Potential for Great Returns A common and relatively easy way to invest in real estate is by buying a second . . .
I've been tossing around the idea of installing solar panels for several years. Just the idea of harnessing natural resources has an appeal to it. But it's a huge investment, and I was doubtful that the payoff would really match a payoff in traditional investments, so I kept kicking the can down the road. Finally, this past year I got serious about scratching my itch. I figured I had to weigh the . . .
Signing up for a 401(k) through your employer is one of the easiest ways for you to successfully save for retirement. Your employer takes care of most of the paperwork and your contributions to the plan are taken right out of your paycheck. However, when you first set up your 401(k), you may be overwhelmed by all the options. How Much to Contribute When you set up your 401(k), you get to . . .
P2P (Person to Person) loans are quickly becoming the popular new kid on the investing block. P2P lending sites such as Lending Club and Prosper allow you to loan your money directly to other people. The theory is that by cutting out the banks, both the investor and the borrower win, with lower rates for the borrower and higher rates for the lender. Lately P2P loans have gained attention with . . .
When I first dipped my toes into investing, I decided to invest in individual stocks. I don't think I necessarily thought I could outperform index funds or other mutual funds. I just wasn't fully aware they were even there. Sure, I had heard the phrase 'mutual fund' mentioned, but it sounded like it was for people with a lot more money than me. I just figured that individual stocks were the way to . . .
Warren Buffet once said that investing is simple, but not easy. He could have said the same about most of personal finance. Knowing what we should do with your money is often much easier than actually doing it. We know we should budget, but conveniently forget to make time to review our budget. We know we should save for retirement, but never get around to making our monthly investment. And that . . .