Tag Archives: investments

Getting Serious About Finances

Published / by Annie / 6 Comments on Getting Serious About Finances

While many of the so-called experts are crying, I’ve discovered that my decision to enter the stock market could not have come at a better time. The US Government has decided that inflation is out of control so they’ve started to raise interest rates to “cool off” the economy.

According to my research, every single time the Fed raises rates, stock prices take a hit as emotional investors panic and others move out of the stock market into safer investments like government bonds.

This is very good news for me, because it means that I’ll be able to buy stocks at bargain basement prices.

In order to maximize my long-term profit, I need to take advantage of this dip. The more I can invest now, the better off I’ll be in the future. That means I have to get really serious about my finances.

I picked up a copy of Your Money of Your Life in hopes of some pointers. The book is filled to the brim with helpful information, but one thing I gleaned from the text was the fact that I need to account for every single penny I spend in order to learn where I stand financially and keep track of the progress that I am making.

I tried to do this on the computer at first, using my knowledge of Excel, and I fell flat on my face. I spent more time trying to use the darned program than actually entering information. I switched around to several free finance applications, only to run into the same issue. I ended up being so frustrated that I was ready to toss my computer against the wall!

So I went back to what I know. I understand the basics of paper accounting. I used that method to keep track of my budget for years during the early days, until my budget became so low I didn’t need to bother. I invested in a ledger and got to work.

Every single penny I spend is documented accordingly. It’s a bit of a chore, but it has made me more conscious of how I spend money. For the first time in my life I’m actually documenting how much I spend on food, books, and other items. I intend to use that knowledge to target areas where I can save in order to maximize the amount I have to invest while the market is in this slump.

Once I have a few months’ of numbers available, I’ll even go into parts of my budget that I’ve never discussed before–like groceries. Perhaps that will help you learn a bit more about controlling your finances, as well as show you a bit more about how I spend my money on a daily basis.

If you’re interested, that is.

Have you ever kept track of every penny you spend? Please share your stories in the comments below.

My First Investment

Published / by Annie / 2 Comments on My First Investment

Note: this website runs a bit behind my real life. Judge my numbers accordingly.

Baby steps can move mountains. I know this; I used a progression of baby steps to not only manage to survive while raising my kids as a single mother, I used baby steps when I began my computer repair business and to learn how to start a website, write and publish books for extra money.

But it takes money to make money, or so the saying goes. It’s the ones with the big bucks to invest that make the fortunes. I don’t have big bucks; all I’ve got to start is one $160 paycheck. Sticking that puppy directly into my savings is highly tempting; the money will be insured and I’ll earn a few pennies in interest.

Can I do better than that?

I stumbled upon an article the other day that declared the death of the Silver Market. I’ve heard time and again that the most successful investors sell when others are buying and buy when others are selling. Silver has been used as currency for thousands of years; even now it is popular in the jewelry market. I’ve always loved silver jewelry, so much so that my daughter even bought me a sterling silver Mother’s Ring for my birthday earlier this year:

With that in mind I decided to check out the Silver Market. I quickly read up on it, learned how to figure out the current price of silver, and how to buy the stuff. There are two ways to do it. You can buy paper Silver, which is essentially a piece of paper that says you own X amount of silver that is stored somewhere else, or you can buy pieces of the metal yourself in the form of coins, rounds, or bars. If you buy pieces of silver, they will be shipped to you so you also have to work out how to keep them safe until you decide to cash in your investment.

The good thing about actually buying the pieces of silver is that I could stash them away somewhere. I wouldn’t be tempted to spend them every time I check my bank balance. More importantly, I would have something to actually hold in my hand for inspiration whenever I became plagued with doubts.

Worst case scenario I could have it melted down by a jeweler to create jewelry if the investment fails to pay off. I’d have a pretty piece of bling at least.

I found a reputable dealer online after a bit more research. To my delight, they were running a special: ten troy ounces of silver rounds at spot (market) price. Since most places charge a bit over market to cover shipping and make a profit I was delighted. To maximize my investment I decided to lock in the price on their website and mail them a paper check. They charge extra if you pay online.

So now, not only am I doing better than many Americans because I have more than $500 in the bank, I now have an investment in precious metals on the way. They will ship as soon as my check clears the bank.

I have no idea what the heck I just ordered to be honest. According to the description I will receive a tube that contains ten silver “rounds” – whatever that is. All I know is that it will be .999 pure silver bullion. I know that I’m taking a risk, considering how little I know about this stuff but you know what? I’ve wasted more than that doing stupid stuff before.

I’m scared but exhilarated just the same. I’ve made a baby step, wrong or right. That’s progress at least. Whatever happens, It sure beats the hell out of just sitting here reading books and wishing for something to happen.

I’ll keep you posted.