The First Day
I am
assuming for the purpose of this blog which is for my friends and family you
have not started or are just beginning.
I will recommend stocks as I go along.
1. You
must have a budget. The simpler the
better. I use a Microsoft Excel
spreadsheet. First enter your monthly
bills. List from 1st day of
the month to the last, this comes in helpful knowing the date your bills are
due and the amount. My electronic
Allstate auto insurance bill has gone missing in electronic never never land, I
would not have known if I did not keep this budget. You may say well get a paper bill. It saves me 10% to get it electronic. Over $100.
So I called my agent and sent him the funds. Meth users have broken into our community
mail boxes looking to steel identities, again missing bills. Know your obligations.
2. Next list your quarterly bills, just like
your month bill. Finally your yearly
bills both quarterly and yearly listed in the same format just like the monthly
bills.
3. I am going to assume that you have a local
checking account. If you don’t have a
local checking open one. This is to pay
your budgeted bills.
4. Open a broker account and have the internet at home. When I started trading stock I started with Merrill Lynch. To trade I purchased the stock with a side spread I believe it was 1/4 or 1/16 or something like that of a dollar. When buying a 100 shares that rounds up or down to the closest 1/4 or 1/16. I always seemed to get rounded up. I believe the fee was $39 a trade and a $30 annual fee. I found Merrill less than honest in 2 cases. I felt like brokers treated me like a “Muppet” quoting the brokers in Goldman Sacks, a derogatory Goldman Sacks employees have used to describe customers. http://www.huffingtonpost.com/2012/03/27/muppets-vs-goldman-sachs-funny-or-die_n_1383330.html
Now you
can buy with a penny spread. And, if you
are willing to do it with an on line broker with $5 to $10 dollar
commission. Open an on line broker bank
account. Yes bank account. Get a check and saving account and open a
brokerage account after that.
The broker
checking account is for your emergency funds.
So you don’t have to dip into your investments. You investments are for when you can’t work. Car repairs, sickness, home repairs, etc…
The broker
savings account is for you stock purchases.
Start saving for when you can’t or don’t want to work. Wouldn’t it be nice to have the life of a
movie star and be young, beautiful, and not have to work? Well this account is for the one of these 3
things you can have. You don’t have to
work if you get enough money working for you.
I use
Charles Schwab and I find them fair and honest with me. By the way this step will take time just due
to the paperwork and mailing time.
Very good advice!
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