In the last post, we looked at the buzzword ‘negative gearing‘ (where the interest you are paying on the loan is more than the income), and why positive gearing (where your income is more than the interest) can be more attractive. But for anyone looking to retire early, or have the financial freedom to quit their job, pursue creativity, or raise a family, the concept of cash flow is perhaps even more important to know about than gearing. And it’s something we all need to know about – not just investors.
Last week we looked at the two ways you can earn money through investing: income and growth.
But how do you know which style is right for you?
It’s important that your investment strategy is aligned with your purpose. We all have different goals, and this means that a one-size-fits-all approach to investing simply won’t work for you.
According to Investopedia, investing is
Note that it says “the expectation of additional income or profit”. It’s far from guaranteed. But just how can you make money from investing?
Over the weekend, having recently returned from our overseas odyssey, I was thrilled to attend the opening of Hope: From Robe to Riches. The brainchild of my dear friend, and one of Enrichmentality’s first believers, Dr. Joanne Sullivan, the exhibition is currently on display at Gum San (金山) in Ararat. And it’s an exhibition that got me thinking about the concept of investment.
I’ve been doing a lot of reading – and thinking – about retirement for a new project. In the last few posts, we’ve looked at net worth (including your home), and retiring. But what is the difference between ‘traditional‘ and ‘early‘ retirement? In this post – the 100th post on Enrichmentality! – we’ll tackle this question.
Money not only affects the media, but the media can influence our money decisions. Journalists use words such as ‘crisis’ or ‘storm’ to create emotion. This is true of blogs too, with tools like CoSchedule’s headline analyzer encouraging bloggers to use uncommon, powerful, emotional words. (You may be interested to know that analysing the headline for this post, the word ‘money’ counted as an ’emotional’ word).
But how does this influence occur, and what can we do about it? Some more of the presentations at the Money Talks? conference elaborated on this theme. Continue reading “How does the media affect your money decisions?”
In the 2016 US election (which was itself somewhat like a game of ‘Cards Against Humanity‘), candidate Hilary Clinton was accused of playing the ‘woman card’ by rival Donald Trump. In reaction, her campaign actually produced such a card. It boasted the dubious ‘benefits’ of lower wages, More expensive health care. No family leave, and ‘limited access to your own reproductive rights’. (Arguably no family leave is a circumstance that affects men as much as women. Framing it as a women’s issue only worsens the burden).
These cards were sold at $5 to fund Clinton’s campaign. Ironically, this resulted in Clinton literally playing the ‘woman card’ in her fundraising. But (aside from campaign funding) does it actually pay to play the ‘woman card’ in a financial sense?
Piles of unopened bills. A wallet full of receipts and ATM statements. More accounts than you can remember the balances of. Cards you can’t remember the PINs to. Waking up in the middle of the night, heart pounding, thinking of your pension plan, tax return, or credit card statement. Sound familiar?
Certain words – like ‘bank’ and ‘statement’ – can grip us with anxiety. So much so, that Cambridge University researchers have declared ‘financial phobia‘ a bona fide psychological condition, affecting as many as 9 million people in Britain – mostly women and young people.
Walking past a bakery in Bergen, Norway today, I was consumed by the sweet aroma of hot cinnamon.
In to Baker Brun we went, to buy a Skillingsbolle, described as ‘the all-time favourite Bergen treat’ with a name originating from its original price of one shilling. In fact, the word ‘shilling’ itself derives from the Old Norse scilling meaning ‘division’, and was a division of the old Norwegian Rigsdaler.