Investment Tips of the Day
I'm currently reading David Chilton's "The Wealthy Barber". I've been meaning to get a better handling on this whole financing game because I know its really, really important to start early. The only thing I've learned from the book so far is how crazy compound interest really accumulates. That is...if you know where to invest to get a 12% return. How the heck am I going to find that??
On a seperate note I've been trying to save up to get a bike for a while. It occured to me yesterday that my bike could really be a cost savings investment on top of a something I can ride around in. How so? I'm glad you asked! Suppose I spend $1000-$1500 on the bike and that It costs me roughly $20 a week to use the TTC. That's roughly $1000 in TTC expenses annually!!! If I am able to bike the work for 3 months of the year instead of taking the TTC, I can save approximately $250. Which means, my bike would pay itself back in 4-6 years assuming I remain in bikable distance to my workplace during that time. Yay financial nerdiness!
Really, I just want to get the bike. The cost savings part is gravy. =D
On a seperate note I've been trying to save up to get a bike for a while. It occured to me yesterday that my bike could really be a cost savings investment on top of a something I can ride around in. How so? I'm glad you asked! Suppose I spend $1000-$1500 on the bike and that It costs me roughly $20 a week to use the TTC. That's roughly $1000 in TTC expenses annually!!! If I am able to bike the work for 3 months of the year instead of taking the TTC, I can save approximately $250. Which means, my bike would pay itself back in 4-6 years assuming I remain in bikable distance to my workplace during that time. Yay financial nerdiness!
Really, I just want to get the bike. The cost savings part is gravy. =D
3 Comments:
nerd alert! nerd alert! You should also read the finance motley fool books!
Have u look at the stock market in a long term basis? I believe if u look at the stock market in at 20 yr gap, it has ALWAYS increase 10% +. This is including during the depression and the world wars.
The key is not 12%. It is having the discipline to not splurge. If u read Rich Dad Poor Dad, they talk about it. Doodads. That's what Robert Kiyosaki calls it.
As for a bike, it costs a lot of money. But in return, I have a much healthier lifestyle. This is also include eating healthy food as well.
I never got sick last year despite me having a liver transplant and taking drugs to suppress my immune system (aka compare to others, i have a much weaker immune system).
Costs for that? Priceless....
Rich Dad, Poor Dad is next on my list. The problem with mutual funds is the commissioning percentage they take. So, if I make 10% ROI, then it's probably 8%, which hurts.
Honestly, part of the satisfaction is saving up for the bike and sacrificing other things to get it. Any other cool financial advise books you have?
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