Time and the miracle of compounding
After the amount of money you put away, time is probably the most important factor affecting your investment success. The longer your investments have to compound, the bigger they will grow. This also works in reverse, so the longer you have a debt you have to pay interest on, the more you will end up […]
Financial independence
Financial independence is when you have enough income from passive sources (interest on savings, dividends from shares, royalties from books, music, etc.) to meet your monthly expenses. You no longer have to work to live. If you read Your Money or Your Life, from yesterday’s blog post, you will see that this is not something […]
Saving rate
Your saving rate is going to be the most important factor unless you have considerable amounts of savings already. Saving rate can be measured in two ways, but one is much more useful than the other: a) by the amount of money b) by the proportion of your income Answer b) is the better metric. […]
The 3 investing factors
“If done properly, successful investing entertains as much as watching clothes tumble in the dryer window – William Bernstein Investing is not a difficult discipline. At heart, it’s very simple. There are three main factors: amount invested time strategy For most people starting out, the list above is in order of importance. The amount you are […]
Investment Advice
Where do you get your investment advice from? When I first started thinking about investing five or six years ago, I had no idea where to start. I didn’t know anything about what investing involved, just that it seemed very complicated. Pop quiz: where is the best place to get investment advice? a) a no-fee […]