I am glad you asked!
Don’t think you have enough money to start investing today?
Yes you can! To invest directly in the stock market at the cheapest cost you need to buy 100 shares of a company and that is called a Lot. If you don’t buy at least 100 shares, the price you will pay for those shares will be more expensive. The other issue is that you are not diversified, so if that company’s stock price goes down, you lose, but if you owned stock in multiple companies and multiple industries, then hopefully as some stocks in your account go down, other stocks would go up and minimize your lost. So what do you do?
Mutual Funds, ETFs and Annuities are the Answer!
Investing in these vehicles allow you the ability to diversify your investments when you have limited dollars to invest. Most mutual fund companies allow you to invest as little as $25 when you sign up to invest monthly, which is called dollar cost averaging. This allows so many people with limited funds to start investing in the stock market.
What are the benefits of Dollar Cost Averaging?
When you invest monthly you will get the benefits of more shares when the price is low and less shares when the price is high. In the end, the idea is that when you average all of your shares and prices paid, you will have gotten a cheaper price than if you would have invested a lump sum one or two times a year. See example below:
We could have invested our $1,200 lump sum in March or October and we would have only purchased 150 shares, which at the end of the year would have given us a profit of $300. The trick is to invest at the cheapest cost and investing a fixed dollar amount on a regular schedule will lower the average cost per share over time. This is Dollar Cost Averaging.
So what now?
If you want to learn more about investing or to learn more about investing strategies, call me or complete the Contact Us form from the Menu drop down, for a free consultation. Below are some of the services that I offer:
- Monthly and Yearly Coaching Packages available
- Tax Planning and Strategy Planning
- Insurance and Retirement Planning
- Budget and Credit Repair Management
- On-Line and Classroom Training and Coaching
*Building Relationships with Integrity and Trust*
Don’t You Want To Know The Secret?
How IS credit card interest calculated?
Credit Card interest is calculated on the due day of every month, so the way to escape paying any interest on your credit cards, is to pay the entire balance prior to the payment due date. Not only do you escape paying interest on using the credit card company’s money, but you also rack up rebates and rewards for using your credit card.
What if I can’t pay my entire balance off at the end of the month, how is the interest calculated?
If you can’t pay your entire balance by the due date, pay what you can, but before the due date to escape any interest being incurred on the amount you are paying on your balance. Once you are in the next billing cycle, you will start to incur interest immediately after each purchase on your card. If you keep a balance on your credit card, then interest is incurred immediately after each purchase. This is how your credit card balance goes up so quickly and can become unmanageable.
Now we know!
Now that we know how interest is calculated, we can use this knowledge to benefit yourselves and earn rewards and get cash back. So what do you like, Cash Back rebates or Frequent Flyer miles? Whatever your desire is planning a trip out of the country, don’t pay for the airline tickets, use a credit card that offers frequent flyer miles for every dollar you spend. Remember, pay the monthly bill off each month prior to the due date and reap the rewards.
So What is Next?
As your Financial Success Coach, I will partner with you to come up with a plan to pay of any existing balances on your current credit cards so that we can start taking advantage of the rewards credit cards offer. You will be amazed at how easy this is. I know of a lady that deposited $1500 into a checking account that offered her a credit card that paid rewards on a 3, 2, 1 scale. She paid her credit card balance off each month and at the end of the year she earned over $1300. She paid no interest for using her credit cards and made almost 100% of her deposit.
Wouldn’t you like that?
Quick Tricks to Increase Your Credit Score!
Are there really ways that you can raise you Credit Score quickly?
Yes, there are! There are some tricks that will allow you to continue living the way you are and increase your credit score at the same time. As long as you follow the rules and make no mistakes you will be able to increase your credit score and benefit from paying less for borrowing money. What are the ticks, you ask?
Use only 30% or less of your credit card’s credit limit.
When you only use less than 30% of your credit card’s credit limit that is a positive to your credit. Anything between 30 and 60% has a neutral effect on your credit score and anything above 60% has a negative effect on your credit score. So if you need to increase your credit limit and continue holding the same monthly purchase amount, that is better than using more than 30% of your credit limit’s balance.
Pay off your credit card balances BEFORE the due date!
Paying off your credit card’s balance does several things, first, you escape paying any interest, which is a good thing. As long as you pay your entire balance by the due date, NOT ON THE DUE DATE, you will escape paying any interest for that period.
Apply for all your credit all at once!
When you need to apply for credit, the credit inquires have an impact on your credit score, so if your are shopping for new credit, shop it all at once. Credit Inquiries stay on your credit for 1 year, so it has an effect for a period of time, shorten the impact by applying for credit needs in advance, all at once!