How Much Money Should I Be Saving?
By Joshua Kennon. Investing for Beginners Expert
Thanks to his straight-forward approach and ability to simplify complex topics, Joshua Kennon's series of lessons on financial statement analysis have been used by managers, investors, colleges and universities throughout the world. "If an investment idea takes more than a few sentences, or cannot be explained to a reasonably intelligent fourth grader, you've moved into speculation," Joshua insists. "Whether you're dealing with a public company such as McDonald's, or a private company such as Chanel, these are the types of firms that are easy to understand. You know where the sales originate, what the costs are, and how profits are generated. These are the types of enterprises that aren't going to cause you to wake up
in the middle of the night, breaking into a cold sweat because of the sub-prime crisis or esoteric securities trading in illiquid markets. That's a huge advantage to growing your wealth. Focus on what you know, pay a fair price, and invest for the long-term.
One of the most frequent questions new investors ask is, "How much money should I be saving for my investment portfolio?" Although the question is straightforward, the answer is not so easy because it depends upon a handful of factors that differ with each individual or family. Let’s take a look at the questions and then we can tackle each one specifically.
Before we begin, though, it's important that you understand the difference between saving and investing.Source: beginnersinvest.about.com
Category: Personal Finance