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Dumb With Investing

Making Smart Investing Moves

  1. How Do Index Funds Differ From Mutual Funds?
  2. The Difference Between Small Cap and Mid Cap Index Funds
  3. What Are Bond Index Funds?
  4. What Are Commodity Index Funds?
  5. What Are Equity Index Funds Composed Of?
  6. What Are Index Funds?
  7. What Are The Types of Bonds Available For Investors?
  8. What Can International Index Funds Offer You?
  9. What Makes the People Fussing Around the 500 Index Fund?
  10. What Is The S and P 500 Index Fund?
  11. When It Comes To Investing, What Does "No Load" Mean?
  12. Why You Should Never Buy Into a Mutual Fund

Now this is one place where even extremely savvy individuals get taken for a rid. We get get dumb when buying stocks because we get taken by either the people pushing a stock, the brand image, or personal experience. This is your money, make informed decisions or don't get into the market.


Never, Never, Never put any money into that market that you can't afford to lose. You need a solid investment strategy before you put any money in the market. Many people think in terms of companies, not it terms of strategy. This is where we get taken. My strategy is simple:

1. I only invest in companies that have a ton of cash on hand. That way if the next big thing comes out that can cripple their business, they can buy it. And even make me a profit because of it.

2. I only invest in companies that are not going anywhere. It doesn't matter if we're fueling our cars with water, gas, or rocks... Babies are going to still need diapers and tooth paste. Hello Johnson and Johnson.

Reason #1- I feel this is a key to any strategy, seeing as there has been a huge wave of corruption and break throughs in techonology. In today's world, you don't know if your company will be here next year. This gives you a little piece of mind that they can handle most situations. Money talks.

Reason #2- This is more of a personally preference. I feel if you want to gamble, call Vegas. But don't come crying when you can't put food on the table.

How Much Money Should You Have In Your Savings Before You Invest?

Savings is a great thing to have when one has begun to start thinking about their own personal financial goals. Not only do the savings serve as a financial backup, it can also serve as an investment that one can have. Don't sit and watch the savings gather dust when investing is possible. Investing would be a great way to make one's savings grow in small, sometimes even in considerable amounts. But most individual's initial question is how much money should you have in your savings before you invest?

When one thinks about investing, they usually assume that a huge sum of money should be involved. This does not entirely ring true. However, it is very important to decipher the personal financial goals and how much one is willing to invest before deciding to do so. A well thought out investment is important to get more than what was put in and make sure that the investment will not turn out to be a disappointment. The most important thing to know is how much money does one currently have in their savings? Is there space for investment? Plan ahead with the personal financial goals and allocate how much money one particular goal needs and will need. How much money should have in your savings before you invest? One needs to have a considerably large savings in order to have a well-placed investment. Like pointed out earlier, this does necessarily mean that a huge sum of money will be involved. It is just to make sure that one does not lose all their hard-earned savings in case something goes awry with the investment. Do not touch money that has been set aside for something important. Keep a number of money from the savings and set this aside. This will be the investment money, and no other money should be used for investing except this.

What is the reason for the need to invest? The answer to this will help one decide if they need to have a short-term investment or a long-term investment. A short term investment means investing the money to projects that require only a short period of time in order to churn out money while a long-term investment means bigger returns for a longer timeframe. It is also needed to know what type of investment one should have. They have to ensure they are quite familiar with the investment, and that it is something worth putting their precious money into. With various types of investments available, such as shares, bonds and collective investments, a person shouldn't have a hard and long time choosing where to put their savings and turn it into investments.

Again, a huge sum would not be required when the question in one's mind is how much money should you have in your savings before you invest. Just ensure that a wise decision would be made and find one that is suitable. The main goal is to have a wise investment with the savings that in return will give out good results.

Robert Mckeon
I think one should have a "safe" savings before investing. With safe, I would say that the savings is enough should the investment fails. It's not that I wish or would want that to happen. But, you know, just a safety net if ever.
Robert Mckeon at at 09:44AM, 2011/07/18.
John Mack
I've invested in a lot of things, most of which failed me greatly. You just need to know what you're investing in will work and you'll be fine. You guys rock by the way! :)
John Mack at at 07:41PM, 2011/07/19.
This is a really sound idea. I really enjoy reading your stuff. I wish I knew how to invest or get advice without it costing me an arm and a leg. You're the greatest! JMHO
Kyanna at at 09:10AM, 2011/09/01.

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