This is a thread to discuss the critical issue of our money: how to make it, how to save it, how to invest it. Let's share questions and answers with each other. What have we done financially? What do we wish we had done? What are we going to do? Are there particular resources out there that you've found helpful? Etc.

Here's a link to a site that was very helpful to me when I wanted to learn more about investing and saving money. It's called The Motley Fool. You may have heard of it. There's really a wealth (yes, pun intended!) of information there to help one understand the basics and get started.

Here's a link to their investing basics page. A great place to start!!

Here's another great link about getting out of debt!



Onward and Upward!

[This message was edited by MBM on September 12, 2002 at 09:08 AM.]

Go to Share Builder.com and open an account. Have an amount (ANY AMOUNT) deducted from your checking or savings monthly invested in the stock market. Sharebuilder allows the purchase of stocks or indexes in any amount. Even if it's only $10 - in 30 years that money will be worth something and you'll be happy you did. Plus, investing on a monthly basis (dollar cost averaging) will provide tremendous returns down the line!

P.S. If you're new to investing my advice would be to buy an index, either of the Dow Jones Industrials (DIA) or some other. Feed it every month and watch it grow!!



Onward and Upward!

I have always wondered about share builder as I have seen the advertisements for it. My question is, I have a ROTH that I max out monthly and I want to start another nest egg. Should I lean towards the share builder or a money market?

I'm not an investment professional - so I'll be careful never to give out specific advice.

That said, Sharebuilder is just an investment vehicle. You can make it a general account, or an IRA or Roth or a trust account for your kids' education or whatever. I think the specific answer to your question would entail understanding your age (how long you'll invest in this vehicle), investment objectives, tax circumstances etc.



Onward and Upward!

I'm glad this thread was started. Since I've done just about everything one can think of wrong, maybe I'll learn to do it right. I'll be here daily. Thanks, MBM.

We have two really good radio personalities out here in the San Diego and Los Angeles area. Their shows are syndicated as well and their websites are really good. They both give great advice for saving money and knowing when someone is running a Scam.

Benjamin Dover

Clark Howard

-------------------------
By all standards, some creatures are just plain strange, making us do double takes because their compositions or habits or appearances defy our sense of logic and our way of viewing reality. Take the wildebeest, the warthog, the hyena, the brown pelican, the Shar-Pei. These animals, seemingly wrought by committee, make us laugh or shake our heads. Another such creature, of the human kind -- and perhaps the strangest of all -- is the black Republican. "

Bill Maxwell

More to come later!

Your Brother Faheem

Despite some mistakes and bad habits in the past, I couldn't have done all that bad, to have managed to live alone for the past 12 & a half months almost totally income free (having quit work to focus on school, at age 32, no less!). I'm running very low on funds these days, but if it weren't for saving and investing, I never could have even thought about it.

The following isn't "advice," as much as it is a personal lesson: the best lesson I learned was to make sure that you don't accumulate more in debt-interest owed or spent than you could in interest & dividend income and investment appreciation. It's pointless to invest $5,000 to make 9% if you already owe $5,000 at 21.6% to Visa. You may as well take the $5k you'd invest and use it to pay off the credit card. You'll actually come out ahead.

I read alot of magazines and take courses but I still have difficulty in comprehending some of the different ideas regarding money and investing.
One trend that I have noticed is the number of black investment groups. In that I am talking about the amertures that gather around to decide as a group on what and how to invest their money.
As far as a source I use www.blackenterprise.com. I find the information they have very user friendly.

I think many Black Americans are still in the "keeping up with the Joneses" phase. Perhaps racking up more debt than income. Whether this is a financial phenomenon or a psychological one...we need to get a grip. I know too many sistas who are dressed to the nine's daily (prada,gucci, asian silky weave) but wonder how the car payment is going to be made this month.

Moving from "the Joneses" to investing is a great leap...

I've always looked ta it more as lack of knowledge. I see plenty of friends from other races whose parents started them out with savings and investments early on. As I look at it we do put alot of emphasis on material things where if tat same money was used elsewhere it would make a big difference.
Some of my examples are:why buy a car and put a stereo in worth more than the car? Why put all these accessories on the car just for show? Why buy babies designer clothes and footwear when in a couple of weeks they will grow out of it?
Just my way of thinking, but I would like to see more blacks work together in learning and investing

quote:

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Originally posted by negrospiritual:

I know too many sistas who are dressed to the nine's daily (prada,gucci, asian silky weave) but wonder how the car payment is going to be made this month.

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We've got to figure out how to transform investing and building net worth into the status symbols that fine clothes and cars are. Once investing and saving are "cool" ( ) then folks will do it. This is a key element of our problems. So many of us have been "beat down" for so long (or just haven't had anything), when we finally get something we want to do things to show the world that we got it.

How can we make investing, saving, reducing consumer debt, home ownership, starting businesses, etc. COOL?



Onward and Upward!

"How can we make investing, saving, reducing consumer debt, home ownership, starting businesses, etc. COOL?"

In my opinion we have to start educating people about savings and investments at an early age. I'm not sure if this should be done in the schools or as some sort of community project. The sooner you can show people it is "cool" and "practical" to save then that will be a start.
For me it was also a fear that prevented me from investing until I was near my 30's. I was pulled aside by a LT. who happened to major in finance at a HBCU and he gave me the quick version of how easy it is. Once I saw how easy it was I was hooked.

Not enough of us follow this advice -

Just because it's on your ass, doesn't make it an asset!

Investing for your future or your childrens is a very smart idea. I'm sure it's been said before that one neededs to have his or her finances in order first.
If you are a home owner one needs to look into refinancing or second morgage to reduce the biggest investment they already have. Most people don't realize that they can setup bi-monthly payments for their morgage payment which can save you over $100,000.00. Yes most banks and morgage co. will charge you at least.
one months payment to set it up. Remember way you are doing it. Example: your morgage payment is $1,ooo.00 per month. At the beginning of the month you pay $500.00, mid month you pay $500.00.
Purpose? You only pay interest one the first payment saving you thousand of dollars.
Some people say they pay a little extra each month fine but when you can pocket that money and save thousands of dollars. It also will turn your 15year morgage into about 7 years.

Credit cards the number one financial killer for us. Thousands of white people every day are taking advantage of low interest rates. Why are we? I personaly have good credit but had alot of credit card dept. So I took out a low interest home equity loan paid off all of the cards now I have a extra $856.00 PER MONTH.
Thats what I mean buy getting one's self in financial so you can have the ability to invest you money.I hope I didn't put anybody to sleep with my fist post. have a good day

http://www.freestoreclub.com/home_page.asp?UserName=1daveCASHBLAST

I've recently came across a company advertised in Black Enterprise called Black Wealth Network (BWN). Basically along the same lines as share builder.com, but all the funds are managed by blacks. I haven't heard of this company before but since the magazine (BE) that is advertisng it is well know and respected I would like to feel it is a good choice. Has anyone dealt with or knows of anyone that deals with this investment firm/company?

quote:

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Originally posted by MBM:
Go to http://www.sharebuilder.com and open an account. Have an amount (ANY AMOUNT) deducted from your checking or savings monthly invested in the stock market. Sharebuilder allows the purchase of stocks or indexes in any amount. Even if it's only $10 - in 30 years that money will be worth something and you'll be happy you did. Plus, investing on a monthly basis (dollar cost averaging) will provide tremendous returns down the line!

P.S. If you're new to investing my advice would be to buy an index, either of the Dow Jones Industrials (DIA) or some other. Feed it every month and watch it grow!!



Onward and Upward!

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Thanks for the link MBM!! I was looking for this the other day and I couldn't remember the name of the company. They had a commerical on tv about it and I lost the doggone paper that I wrote it on.

______________________________
~You're UNIQUE, just like EVERYONE else~

I learned a lot this year by reading and participating on the CNBC Boards at:

http://moneycentral.msn.com/community/message/board.asp?board=YourMoney

[QUOTE]Originally posted by dave1:
Investing for your future or your childrens is a very smart idea. I'm sure it's been said before that one neededs to have his or her finances in order first.
If you are a home owner one needs to look into refinancing or second morgage to reduce the biggest investment they already have. Most people don't realize that they can setup bi-monthly payments for their morgage payment which can save you over $100,000.00. Yes most banks and morgage co. will charge you at least.
one months payment to set it up. Remember way you are doing it. Example: your morgage payment is $1,ooo.00 per month. At the beginning of the month you pay $500.00, mid month you pay $500.00.
Purpose? You only pay interest one the first payment saving you thousand of dollars.
Some people say they pay a little extra each month fine but when you can pocket that money and save thousands of dollars. It also will turn your 15year morgage into about 7 years.

Credit cards the number one financial killer for us. Thousands of white people every day are taking advantage of low interest rates. Why are we? I personaly have good credit but had alot of credit card dept. So I took out a low interest home equity loan paid off all of the cards now I have a extra $856.00 PER MONTH.
Thats what I mean buy getting one's self in financial so you can have the ability to invest you money.I hope I didn't put anybody to sleep with my fist post. have a good day

Is it true that you can deduct the interest of a home equity loan?