Rate of return of is one of the three most important factors that determine how much money you make investing. The other two are your expenses and your risk of loss, which are both closely related to rate of return. In our previous post, we discussed compound interest and how earning interest on your interest is […]
Compound Interest
Almost everyone has heard of interest. If you have a bank account, the bank probably pays you interest. (Even if it is a 0.000001% interest rate) If you have any debt, then you are likely paying interest on that debt. However, do you understand the effects of compound interest? Compound interest is the effect of […]
Investor Type: The most important investing choice
My previous post defined investing. The purpose of this post is to help you figure out your investor type. Finding out what type of investor you want to be, is the single most important step you have to take when becoming an investor. Sadly, most people never even consider investor type. The result is that after […]
What is Investing?
Investing is the process of exchanging your time and money now for time and money in the future. If you are successful in investing then you will receive a larger amount of time and money back than you put in. That’s it. Probably not what you were expecting. The truth is that investing isn’t about […]