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All posts for the day April 20th, 2009

Compounding Money, The Risks and the Benefits

Published April 20, 2009 by starvillanueva


You’ve probably heard people talking about how important it is to compound money. But what exactly does that mean? For new investors, the world of financial jargon can seem a little tricky. However, once you get a few basic terms and phrases down you’re realize it’s not as difficult and confusing as you first though.

Compounding money is a simple concept. Say you start with $1,000 to invest. Over the course of the year you see a 10% investment on your return. That translates to $100 for a total return of $1,100. If you’re taking advantage of the benefits of compounding money you’d then reinvest the entire $1,100. In the next year if you made another 10%, this time you’d make a total of $110, bringing your total to $1,210. The idea is that the more you can invest the more you get in return.

If you invest in options that take a year to return then the benefits of compounding money won’t be fully realized. The key is to focus on fast cycle investments. The faster your investment is paying off, the quicker you can reinvest your profits and the sooner you’ll see big money in your bank account. The quickest investments are typically opportunities to buy merchandise at a low price and re-sell it at a much higher price. Be sure you’re purchasing items that are in high demand and can be sold quickly.

If you’re looking to compound money, all you have to do is reinvest your investment returns as soon as you get them. Your money will grow exponentially and before you know it your investment goals will have been realized.

       * Article Source: http://EzineArticles.com/?expert=Richard_Blaine

 

 

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Real Estate Investing for Newbies

Published April 20, 2009 by starvillanueva

 
Lesson One: Avoid the hype

Thinking about investing in real estate? If you’ve got the cash or exceptionally good credit now is the right time. Even for beginners. But aside from money there is one other very critical factor to real estate investing. That is education. The more you learn, the less chance you’ll be swindled. The less chance you’ll avoid other mistakes that could cause a huge financial loss.

The internet can be overwhelming for real estate beginners. So my suggestion is that you start out by going to your local library. Go to the reference section and tell the librarian you’re looking for the most current resources for learning how to invest in real estate. The librarian will likely access the library’s online database and point you to a list of magazines, newspapers, and of course books. But be on the look out for DVDs, audio books, and pod casts. Also ask if the library hosts any real estate buying classes, many do.

Another option is attending real estate investment seminars. I’ve gotten offers to attend these in the mail. My advice: choose carefully. Stay away from those that charge. Also go with a firm plan not to buy anything. This way you’ll be able to avoid sales pitches without feeling uncomfortable. By all means be prepared to take notes. If you bring a tape recorder you’ll be able to capture everything from the speaker, as well as questions from the audience.

Know someone in real estate? Invite them to discuss investing tools and tips with you over coffee. Make sure they know that at this time you’re only interested in gathering information, that way you get solid information instead of a sales pitch.