Starting on the Right Path – Is You House in Order

Credit Cards Before you start to think about investing you have to ensure your financial house is in order. The first thing you need to do is get rid of any credit cards debts.
If you can’t pay them off right now, then you need start by paying off the card with the highest interest rate. When you’ve paid off the highest rate start paying off the next card and so on.
Read moreQuick thoughts on the path to wealth.

More on the topic of wealth.

Fusion Investing Articles

Investing For Beginners

  • MoneySmart has lots of excellent advice, budget planners and great online calculators.
  • The Motley Fool’s Investing Basics covers all the basics and more. The Fool covers all the key concepts from the power of compounding, paying yourself first and different investment vehicles through to analysing stocks and building a portfolio. These days TMF are a tad heavy on the spam so if you provide your email make sure you go into your options and say no email.
  • Once you have either or both of those course under your belt then you should check out 13 Steps to Investing Foolishly
  • A site I like for a good overview on investing is Stock Value Investing. If you are starting out on your investing path this site provides a good well structured starting point.
  • If you get frustrated by all the terms that investor toss around then head to the Investopedia dictionary for all the answers.

What Not To Do With Your Money

Trust anyone with your money. Before you consider a financial planner you must read the dirty secrets of financial planners. In summary they are predominately salepeople whose aim is to generate commisions. Which means making some of your money there’s with little regard to best outcome for you.

It is essential that you manage your own money. It is easy to do and the sooner you do it the better you’ll feel. Even if most financial planners were honest, upright professionals whose sole aim was your financial well being I’d still recommend you avoid them. You’ve probably heard of the Pareto principle, it’s the 80/20 that can be applied to many things. The pareto principle definitely applies to most working people. In any profession or trade 20% of the people will be good and the other 80% rubbish. Those aren’t very good odds if you’re hoping to find a good financial advisor.

I’ll say it again. Manage your own money. That’s doesn’t mean you actually have to invest your money, though averaging into an index fund when the market is below trend and saving the money when the index is above the trend is pretty easy to do. For Gen X folks, you should be rooting for the market to go down for the next decade, while the underlying value increases albeit at a slower rate than the last thirty years.  Thus compressing the ratios, but hey that may be getting ahead of where we should be on a beginners page. The point is investing can be made as simple as you want. Look at your superannuation/retirement account. How simple is that? Balanced, growth or cash.

If you feel you must engage a financial planner then get a strong recommendation and only deal with ones not affiliated to any financial institution and who do not receive commissions. You should pay them for their expertise not their salesmanship.

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