Been away for a while, but I’m back and ready to go again. Jumping back in is easy with a great post like this from Mark Cuban. Here are the money points – no pun intended, it’s all about money:
1. If interest rates stay where they are or go higher, look at 5 year or shorter
maturity vehicles. It doesnt matter if its a bank CD, a money market fund, a tax
free fund, treasuries or combinations there of. Bottom line is this, 4plus
percent taxed, or up to 6 plus percent tax free equivalent (depending on your
tax bracket), is not a bad way to go. If rates go down, do the same thing,
evenif you earn a lower rate. At the end of the year, you are guaranteed to have
more than you started with.
2. Evaluate your lifestyle. People forget that
sometimes the best investment they can make is in wisely buying things they know
they will use. If you track what you use and consume, whether its gas vs bus
fare, buying bulk quantities or other discretionary spending, you can save more
and earn a far greater return than you could in the stock market. If you can
save 10pct per month on a hundred dollar per month budget, thats 120 bucks you
can put in the bank. Thats the equivalent of earning 12 pct on a 1k dollar
investment. If you can cut 100 bucks per month off 1k dollar monthly budget,
thats like earning 12 pct on 10k dollars. Thats pretty darn good. Spend
smart, put your savings in risk averse, interest earning offerings.
3. Invest
in yourself. Do the things that can get you closer to your goals and dreams. It
wont come from a brokerage commercial. It will come from preparing yourself
, working hard and standing apart from your competition. You Inc is the
best stock you can ever buy…if you are willing to do the work.
Number 3 is the one I’ll discuss all the time here. Invest in yourself, if you can learn and grow, you’ll always eat.
C ya!
