June 6, 2010
Profitable Investing Goals – The Number One Tip for Making Profitable Investments
Michael Jordan, Joe Montana, and Tiger Woods were great for a reason, they had goals. The same is true of those entering the investment field, have a goal in your career and set your mind to reach that goal. Before even making your first transaction in the world of stock investing you should ask yourself, what are you expecting to achieve?
Everybody likes to be charitable, but it has a place and a time and neither is found in the world of stock investing.
Most investors simply want a good return on their investment. But what is considered a good return? Enough for retirement? If it is based on what they want for retirement the question becomes how long is it until retirement age? If it is in two years your investment strategy will be much different than for those who are retiring in 15 years time.
As an example, let’s use me as a typical investor. 40 years old with a decent income and the ability to invest $300 per month. We’ll have to change my circumstances just a bit and imagine I have nothing in my portfolio but I want the ultimate dream – I want $1 million dollars to retire with. The question is, if I have the $300 available right now, is my target something I can hit?
Assuming that I can match – if not better – a stock index return wich is running at 10.4% annually, my sum would be worth roughly $380,000 by the time I get to retiring at 65 years young.
Damn – missed my $1,000,000 target!
To hit that level – I need to invest more than $300 per month. (To hit that I’d need a return of at least 17 – 18% pa.
Okay – an index fund isn’t going to do it for me, especially as the history of these shws it won’t better much more than the 10.5% mark!)
Okay – let’s look at another scenario for me shall we?
Let’s imagine that I’ve actually been working away at my investments and funds for a while (must have listened to my dad!!) and I have a touch over $100,000 saved away.
Can I hit the target million with that amount as a lump sum starter?
Well, if I am set in using the index funds as my investment vehicle of choice, the answer is Yes!
So long as no major market upheaval hits and remains (ignoring the standard fluctuations you’ll get over an extended period of investing) I should have over the $1,000,000 mark by the time I retire – and I won’t have to add a cent more to my savings either.
But what makes this ossible for me to hit my target? The fact that I HAD a target.
Goals – targets – aims, they all help us to focus on getting to the end of the race with the result we want.
Goals to help you focus on your investment are what help you design your investment plan.
Do you need to be aggressive and look for a major return or can you simply protect your savings and earn a more modest return to reach your goal?
Set yourself a (realistic) towards it, keeping it in mind always.
Be modest and be focused.
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March 16, 2010
If you are new to the internet and wondering what an earth this blogging craze is all about, or if you already have your own website and youre wondering why everyone keeps advising you to start your own blog, read on. Im going to explain to you what a blog is, why you need one, how to set it up, promote it and of course, make money from it.
Blog is short for web log and is similar to an online diary or journal. The craze of blogging began in the very late 1990s and has started to become more and more popular over the last couple of years. Almost everyone seems to have a blog these days, from CEOs of large companies to webmasters, from world travelers to teenagers. Even my Dad has his own blog now! A blog allows you to communicate informally with people via an online journal, but its more personal and unstructured than a website and easier and cheaper to set up than a website.
If you have your own website, but havent yet started a blog you can easily start one using a free service such as Blogger or WordPress. Try to post to your blog at least once or twice a week on topics related to your website. Blogging will help your search engine rankings and open up the communication channels between you and your visitors or customers, encouraging them to interact with you and give them a reason to return to your site in future.
If you dont have your own website and are looking to set up a blog quickly and easily I recommend opening a free account with Blogger. You can blog about anything you like, for example a hobby, a vacation, your home town, something political, a sport or your business. Just be sure to pick something that you are interested in and knowledgeable about. You can host your blog for free on Blogspot all you need to do is pick a name that is relevant to the topic of your blog. Once you have set up your profile and chosen a template, blogging is as simple as sending an email to a friend.
There are many ways to make money from your blog, but here are a few ideas to get you started:
- Google Adsense – this is free to join and easy to set up. The ads will match the content of your blog and you will get paid every time a visitor clicks on an ad.
- Affiliate Programs sign up for affiliate programs related to the topic of your blog and display links to related products on your blog. Clickbank, Trade Doubler and Commission Junction are good places to start, or do a Google search for affiliate program + the topic of your blog to find more affiliate programs. Whenever someone clicks through your affiliate link and buys a product, you will receive a commission. If you are knowledgeable about your topic you could also write product reviews to help increase your affiliate sales.
- Sell Advertising Space if you have a popular blog you can charge people to advertise on your blog. This could be in the form of a text link, a banner or a graphic.
You are not going to make money with a blog unless people can find it. As soon as you have started to post to your blog its time to start promoting it. You can get your blog noticed by
- Submitting your blog to blog directories just search for blog directories in Google
- Asking other bloggers to exchange links with you you put a link on your blog in exchange for a link from their blog.
- Writing an article related to the topic of your blog and posting it to article directories. Remember to include an authors resource box with a link to your blog.
- Pinging blog ping services every time you make a new post pingomatic.com and pingoat.com are two sites you can use to do this.
- Participating in forums related to the topic of your blog. Put a link to your blog in your forum signature.
Finally, once you have your blog monetized and you have started promoting it dont forget to post regularly. The most important aspect of every successful blog is frequent posting, so be sure not to let the virtual dust gather over your blog!
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