Archives For Beginer’s guide

Do you handle your family’s financials? Are you the one balancing the checkbook each month (do people really still do that)? How do you know where you stand from day-to-day with your finances? In case you do the bookkeeping, do you still use pen and paper and a truck load of receipts to do that? In IT age, old style bookkeeping is obsolete.

Household Bookkeeping

Bookkeeping as an activity always was and still is an important aspect of managing personal finance. Keeping track of earnings and spending are two most important aspects of managing personal finance. This post is not about managing your household books electronically with the help of modern software tools which will make your job easier and less time consuming.

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The housing market is in recovery, a slow and painful one, but a recovery nonetheless. And no, I’m not saying this because I’ve been obsessing over house prices, builder confidence indexes, construction permits numbers and foreclosure rates (ok, I’ve done that too), but because the hedge funds, where the smart money lies, are moving back into real estate. And I’m trailing behind.

REIT Investment

I decided to get into real estate investing about four months ago – right around Christmas when the budgets and the belts are too tight to really be thinking about investments. Well, I’ve never had a deep pocket anyway so I decided to jump in with whatever I could scoop together and hope for the best.

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Investing your money to make higher returns is one of the brightest ideas you are probably thinking right now. Yes, managing such amount is not easy because you are creating an idea about where and what is the best ways to spend it with promising interests. Where to invest Many choices are already available but you should be wise and smart in engaging with those offers. Investing in a right business with the right people in a right time should be your considerations before giving out your $1000, especially, if you are a citizen of the United States. This is because investment offers are rampant in the US. In addition to this, you should be able to know the money returns you will get and how safe the methods are, because scam is everywhere and sometimes unavoidable.

This article is inspired by an USA Today article, first job, first pay check and first budget.

Investing your money that will begin at $1000 can be turned into millions when you engaged yourself with the right decision opening available ways of investments. Because of rampant investments offered in the market today, you should choose your investment ways depending on your personal preferences. Best ways are mentioned below and thinking about one of the choices is a great idea, especially, when higher money interest and return are your goals in investing.

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When I first started earning money it was 2000, I was in India. I straightaway jumped for stocks and within a year my invested amount lost half of its value. Poor stock picking coupled with burst of the dot com bubble taught me what not to do with money when you are a beginner. Since then I committed many mistakes, at the same time, I did things that worked very well for me.

Where to invest

A few of the mutual funds I bought between 2003 and 2005 got almost tripled its value before I sold them off. I had mentored people towards their first investing since then, A little disclaimer, I am not financial expert and don’t take my advice for granted, consult with someone you trust before taking any of the steps I mentioned below. The following ideas are lessons I learned with my life and lives of the people (at work and within family) who came to me for advice.

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Effectively managing financial institution accounts is equally important as saving money and investing money. Still we don’t usually put much attention to the managing side of personal finance. We concentrate mostly on saving money, opening new investment accounts, saving for retirement and diversifying income, etc.

As a blogger, I haven’t written a single post emphasizing this important need, to of keep track of your money, so far. Long back, I wrote about managing money like a Shepherd, and knowing every details about it. I also wrote about how do I track my net worth and watch them grow but, that was it.

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