On today’s vlog session, I’ll be discussing the following topics:
Being the CEO of your personal finances and visualizing your financial future.
A business functions under the following formula: Revenue – expenses = profits
A good CEO works with each component to generate profits for the business.
Let’s take the first component. Revenue – this is the income of the business. It involves monitoring revenue streams of the business and projecting income growth.
You should be doing the same, because without income, there wouldn’t be a formula to work with. Project out your earnings, decide how to manage your current income more effectively or how to increase your current income.
On today’s vlog session, I’ve gathered the following topics – all related to debt:
Flashback to 2008 – Bear Stearns: the precursor of the Great Recession
Assessing stocks – the most important company metric is debt and risk level
Book review: Squeezed. What the author describes as new for our economy is actually not new at all. And by maintaining low levels of debt, you can maintain a high level of resiliency when responding to changes in the financial environment.
How are you managing your debt or is your debt managing you?
I stay in tune with the health of our country’s financial progress by taking in information from several sources. I read Investor’s Business Daily on a regular basis. They provide a gauge of the market and print it right on the front page: Market inConfirmed Uptrend, UptrendUnder Pressure, or MarketIn Correction. I take cues from reports on CNBC and daily newspapers and combine the findings to make good decisions. Ever since I’ve taken my financial position into my own hands, my level of attention is critical to its success.
On a typical lazy weekend, I came across an Amazon Prime flick called The Joneses. All I saw from the description was “a perfect family…” and stopped reading. I don’t like spoilers and I also know that there are no perfect families, so it intrigued me.
I was pleasantly surprised to see some of my factor actors, Demi Moore, David Duchovny, and Lauren Hutton, and as the story progressed, it sent my money-brain thoughts into motion.
The movie opens with the Joneses moving into a new home. It’s in a polished, upscale neighborhood where the possibilities of a charmed life await. With their stately peaks, each house’s exterior represents the image of suburban nirvana.
Investing. The word alone connotes stocks and bonds. Diversification is the sister term associated with investing. Subtract your age from 100 to figure out how much of an allocation in bonds you should own. Why do we need to have bonds? And what makes bonds a necessary portfolio companion? While trying to understand portfolio allocation a little bit better, I came up with the following five points.
Bonds are fairly simple to understand, they’re loans with a specific duration. They pay interest at stated dates. There’s an issue date and a maturity date. The issue date is the beginning of the loan and the maturity date is when the principal is paid back to the investor. Therefore, unlike stocks that you own forever, bonds are a temporary loan to the issuer.
Janesville is an account of the economic adjustments that occurred subsequent to the closing of the local Janesville, Wisconsin, GM plant. The book documents the shakeout of the newly-unemployed individuals that relied on their financial livelihood from the assembly plant. To earn their living and raise their families, generations of workers banked on GM employment as a default. When GM closed down the Janesville assembly plant, it disrupted the economic environment, leaving GM workers, and workers of supporting businesses, without employment.