Financial Information

As a young investor in today’s market, it can be tough to figure out where to put my money so that these constant market fluctuations do not rob what little savings I have available. Luckily, there are investment opportunities that closely mirror the market itself, so that you do not have to put all your eggs in one or two baskets by investing in individual equities. These market-tracking funds are called index funds, and they mirror the entire market, so although you never gain more than the market does, you also never lose more than the market. They are an excellent way to for beginner investors to start putting their money into the stock market, because they do not require any management beyond your initial picking of the fund.

I like index funds because they keep your investments diversified without any effort on my part, and I do not have to worry about the day-to-day fluctuations of individual stocks. I am a conservative investor, so I would rather see slow and steady growth than massive gains and losses. If you are a set it and forget it type of person, there is no better investment vehicle for your hard-earned cash. I currently invest in a couple of funds to keep all of my portfolio properly diversified, with a small amount of exposure to international stocks as well. International markets often do better or worse at the expense of one another, so I like to have my money in each to balance out losses. Diversification is one the key things to remember whenever investing money!

For new investors who do not know where to start but have some money to put into the market, index funds offer a fantastic option while you research what stocks and bonds you would like to invest in individually.

Stocks index fumds, investing, Money, Stocks

Ever heard of the debt snowball method of ridding yourself of debt? I was clued onto it by a friend that had recently gotten themselves out from under a mountain of debt, and I was intrigued. I do not carry debt myself, but I have since recommended this method to friends that were not as fortunate as me in having a father that taught me all about personal finance.

The debt snowball method is very effective from what I have seen. Because many people with significant debt have the emotional feeling of drowning, the debt snowball method recommends paying off the smallest debts first. As each smaller debt is paid off, the payment that went into it is rolled over to the next smallest debt to be paid off. In this way, the payments “snowball” into an effective method that gets rid of all outstanding debt. I like this method a lot because it really helps people get out from the psychological burden of never paying anything off. Seeing each debt slowly fall to the payment snowball eating it up must be a really great feeling.

The only aspect of it that I do not agree with is a complete and utter ban on the use of credit cards. I think that credit cards can be an effective tool just like any other tool in personal finance, provided that they are used responsibly and not for unnecessary purchases. It is not the card’s fault if you go into debt, it is your own fault for using the card irresponsibly. But beyond that minor problem I have with the debt snowball repayment plan, I think it would be a very effective way for people that feel their debt is insurmountable to get themselves out of the hole.

Debt credit cards, Debt