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Welcome back. Today I’m going to share with you the tip number 4 of 5 tips to prepare yourself for investment risk. Here is the tip number 1, number 2, http://www.finandom.com/blog/2006/01/23/invest-to-financial-freedom-5-tips-to-prepare-yourself-for-risk-tips-3/ and number 4

Tip number 5: Take good care on 3 unexpected factors

Today is the last part for my post of “5 Tips to prepare yourself for risk”. So I make a conclusion on the right procedure that you should care about before you invest.

First of all, you do all the research and learn A to Z of the investment. Then you do all the preparation that you should do ( Those that I mention in my tip 2). Since, now, you have the great idea on the investment, and then you should have the ability to process and make your own strategy to invest and use the benefits of the investment options that you can get. You think all the things you do is complete and the investment is 100% safe and profitable. However, I means sometimes life is not that easy, you still have the risk to lost money. Why?

When comes to investment, there are a lot of factors that outside our prediction, here is 3 that I want to share:

1. Human Factors - When comes to money, there are a lot of party involved. So as your investments. For example, you invest in a stock and you know the price will raise. However, because of a mistake that made by the CEO, the stock price is going down unexpected. So this considered human factors.
2. Timing - Timing is very important for investing. When you want to invest and at what level you must exit and take the profit. This is what we always call entry and exit level. If you enter the market or exit at the wrong timing, you probably will drop down the profit or even lost in the investment.
3. Yourself - Yes, yourself is the biggest unexpected factor. Sometimes, our emotion is the hardest to control. When comes to money, we always bring along our emotion. And the funny thing is, emotion does always affect our decision making. Even you have your own investing plan or strategy, because of your emotion you will forget the plan and make your wrong decision. I experienced this before!

PS: If you have any new suggestion, you are always welcome to give comment on this to add more tips.

Anyway we are not a god, so sometime there are a lot of thing that we can control. But 1 thing I believe and this is also what I learnt from my mentor - Experience will train you up and make your prediction and decision more accurate!

Learn How to Invest 5 Tips to Prepare Yourself For Investment Risk

I want to share with you some of the unique skills that will make you become a Millionaire. I collected this list for many years.

Unique Skill 1 :
Do something that you interested in. You need to spend a lot of time on certain thing to make it earn you millions dollars, so this thing must be your hobby or something that you interested. If it doesn’t, you will be suffer a lot and fail easily.

Unique Skill 2 :
Start a business. Full time or Part time. Working for your boss only make your boss rich. Start a business and be your own boss. If you fail, keep going, because most of the time people will fail in their first few businesses. Come on, we must learn from failure.

Unique Skill 3 :
Provide a “substantial” service or product to market. You love writing, drawing and melodize a song? However the chances to be a millionaire from it is low. Therefore, you must change the form of your hobby with some ideas that can make you a lot of money.
　　
Unique Skill 4 :
Find a “needs” and fulfill it. Life is getting complex and people demands on products, technology and services are getting more and more. So the fastest you find a needs, the faster you provide the solution, the faster you will be rich. Of course you need to learn a lot to find the “needs”.

Retire RIch, Ways To Be Wealthy

Emigrant Direct today announce that they will raise their rate to 4.25% of APY. Seems like the war of raising rate is happening between those online Banking. For more information, you can check their web site here.

Source : MyMoneyBlog

Announcement, MISC

ING just announced a great promotion by offering a new high interest rate at 4.75%. The new promotion is called the “Winter Save Up Sale” and ING is offering 4.75% on all new deposits made into an account between January 19, 2006 and April 15, 2006. For more information you can check their web site here.

Before you make any account changing, please pay some attention on the rate after promotion. What I can see it the rate will go down to the normal rate after the promotion period.

Announcement

Just came through a great article today and I would like to share it here. Some of the point that appears in the articles really match my thought on money management. So let see what it is:

“The first step for those who have overindulged on their credit cards is to stop charging immediately and move to paying cash, Walbert said.”

I had discussed this point before in my post Debt Control – Debt Fighting Tips, Part 3 : Live on Cash Basis. By living on a cash basic, you will stop making new debts.

“Say you charged $700 at Christmas or Hanukkah on a card that carries a 13 percent interest rate and requires a minimum payment of $28 a month. Pay just the minimum every month, and it will take you more than five years to pay off the debt and will have cost you more than $210 in interest. If you double your monthly payment to $56, the debt will be gone in 14 months, and the interest will be just $56.30.””

Hmm, what can I say, as you can read from the paragraph, by paying more monthly payment on your debts, you can pay down the debts faster and save you a lot of interest charges. I think we must prepare our monthly budget and increase our monthly payment so that we can have this 2 benefits in long run.

“I’ve seen people walk through our door with a plastic grocery bag filled with unopened statements,” she said. “You have to open them and face up to it.”

This really a truth. I saw this before. People are so depressed until they don’t dare and reject to open up their statements and look at the figure that they owed. However, we must stand up and face it and only this we can solve our problems.

“You need to know where your money is going,” Cunningham said. “Most people know how much they’re paying in rent or for their car. But they don’t know the incidental expenses, like how much they spend eating out, and that’s where they need to cut back.”

I think by having a budget, you will easily put your hand on knowing where your money is going. Just read my post Formula To Be Financial Free Part 2 : Budget.

Source : http://pittsburghlive.com/x/tribune-review/s_417280.html

Announcement, How to Manage Money