I have done a quick research on youtube to find some videos on making money. There is some gold advice in there. Enjoy them.
The Road to Financial Independence
The guy on the video tries to be a bit humorous, hang in there because in the second half of the video he has some good advice.
Showing posts with label rich. Show all posts
Showing posts with label rich. Show all posts
Saturday, September 4, 2010
Friday, August 20, 2010
Share market indices - measuring the market
An understanding of the language of the sharemarket is essential if you wish to properly communicate with your adviser and/or benefit from the market information available to you. For example you may have heard on the news such as the following:
"After a slow start, turnover on the sharemarket was strong today, with the All Ords finishing up 23 points to 5,300. On overseas markets, the Dow Jones rose slightly to 11,340."
What does that really mean? Listeners are being given an indication as to the general trend of the sharemarket both in Australia and in the USA. The "All Ords" and "Dow Jones" are an index.
An index is simply a measure of performance over time. A sharemarket index is a measure in the change in price of a basket of shares. The number of shares in the basket will determine how closely the index represents the entire market.
The concept of an index is not only used in the sharemarket. A widely followed index is inflation. Inflation is the change in price of a basket of goods. This is measured by the Consumer Price Index – CPI.
The All Ords
The All Ordinaries or All Ords is a measure of the overall performance of the Australian sharemarket at any given point in time. It is made up of the share prices for 500 of the largest companies.
The companies are weighted according to their size in terms of market capitalisation (total number of shares on issue multiplied by the share price). For example, Telstra and National Australia Bank have very large market capitalisations and represent a large component of the All Ords. Movements in their share price have a marked effect on the level of the All Ords index.
The All Ords does not include the value of any dividends paid to shareholders and therefore does not reflect the total returns made from sharemarket investments during that period. An index that takes into account both price movements and dividends is called an accumulation index.
Standard&Poor’s Index Services
Standard & Poor’s (S&P) Index Services provides the index calculation services for the Australian sharemarket.
While the All Ordinaries has been a popular index for many years, the main index used in the Australian market is the S&P/ASX 200 index. It is recognised as the investable benchmark for the Australian equity market. It addresses the needs of investment managers to benchmark against a portfolio characterised by sufficient size and liquidity. The S&P/ASX 200 is comprised of the S&P/ASX 100 plus an additional 100 stocks. It forms the basis for the SPI 200 and the ASX mini200 futures contract, and the SPDR S&P/ASX 200 exchange-traded fund.
International indices
Indices are used to benchmark sharemarkets all around the world, with the most well known being the Dow Jones Index, a share price index that measures the market prices of the top companies listed on the New York Stock Exchange.
In London, the Financial Times Stock Exchange Index, better known as the FTSE 100 or 'the Footsie', lists the 100 largest public companies traded on the London Stock Exchange.
The Hang Seng is the principal Hong Kong share price index. The main market barometer in Japan is the Nikkei Dow Index which covers the top 225 shares listed on the Tokyo Stock Exchange.
The German Stock Exchange Dax 30 (covering 30 blue chip stocks) is unusual in that it is an Accumulation Index, whereas all the others are price indices, meaning they do not include dividends.
"After a slow start, turnover on the sharemarket was strong today, with the All Ords finishing up 23 points to 5,300. On overseas markets, the Dow Jones rose slightly to 11,340."
What does that really mean? Listeners are being given an indication as to the general trend of the sharemarket both in Australia and in the USA. The "All Ords" and "Dow Jones" are an index.
An index is simply a measure of performance over time. A sharemarket index is a measure in the change in price of a basket of shares. The number of shares in the basket will determine how closely the index represents the entire market.
The concept of an index is not only used in the sharemarket. A widely followed index is inflation. Inflation is the change in price of a basket of goods. This is measured by the Consumer Price Index – CPI.
The All Ords
The All Ordinaries or All Ords is a measure of the overall performance of the Australian sharemarket at any given point in time. It is made up of the share prices for 500 of the largest companies.
The companies are weighted according to their size in terms of market capitalisation (total number of shares on issue multiplied by the share price). For example, Telstra and National Australia Bank have very large market capitalisations and represent a large component of the All Ords. Movements in their share price have a marked effect on the level of the All Ords index.
The All Ords does not include the value of any dividends paid to shareholders and therefore does not reflect the total returns made from sharemarket investments during that period. An index that takes into account both price movements and dividends is called an accumulation index.
Standard&Poor’s Index Services
Standard & Poor’s (S&P) Index Services provides the index calculation services for the Australian sharemarket.
While the All Ordinaries has been a popular index for many years, the main index used in the Australian market is the S&P/ASX 200 index. It is recognised as the investable benchmark for the Australian equity market. It addresses the needs of investment managers to benchmark against a portfolio characterised by sufficient size and liquidity. The S&P/ASX 200 is comprised of the S&P/ASX 100 plus an additional 100 stocks. It forms the basis for the SPI 200 and the ASX mini200 futures contract, and the SPDR S&P/ASX 200 exchange-traded fund.
International indices
Indices are used to benchmark sharemarkets all around the world, with the most well known being the Dow Jones Index, a share price index that measures the market prices of the top companies listed on the New York Stock Exchange.
In London, the Financial Times Stock Exchange Index, better known as the FTSE 100 or 'the Footsie', lists the 100 largest public companies traded on the London Stock Exchange.
The Hang Seng is the principal Hong Kong share price index. The main market barometer in Japan is the Nikkei Dow Index which covers the top 225 shares listed on the Tokyo Stock Exchange.
The German Stock Exchange Dax 30 (covering 30 blue chip stocks) is unusual in that it is an Accumulation Index, whereas all the others are price indices, meaning they do not include dividends.
Thursday, August 12, 2010
The science of getting rich - the impression of increase
"When dealing with other people, whether personally, via the internet or any other means of communication, the key thought of all your efforts must be to convey to their minds the impression of increase."
Convey the impression of advancement with everything you do, so that all people shall receive the impression that you are an “advancing personality” and that you advance all who deal with you. Even to the people whom you meet in a social way — without any thought of business and to whom you do not try to sell anything — give the thought of increase.
You can convey this impression by holding the unshakable faith that you are in the way of increase and by letting this faith inspire, fill, and permeate every action.
You must so impress others that they will feel that in associating with you they will get increase for themselves. See that you give them a use value greater than the cash value you are taking from them.
To learn more about the Science of Getting Rich click here.
Convey the impression of advancement with everything you do, so that all people shall receive the impression that you are an “advancing personality” and that you advance all who deal with you. Even to the people whom you meet in a social way — without any thought of business and to whom you do not try to sell anything — give the thought of increase.
You can convey this impression by holding the unshakable faith that you are in the way of increase and by letting this faith inspire, fill, and permeate every action.
You must so impress others that they will feel that in associating with you they will get increase for themselves. See that you give them a use value greater than the cash value you are taking from them.
To learn more about the Science of Getting Rich click here.
Financial Independence Compilation
Welcome to the August 11, 2010 edition of financial independence.
Your free gift
We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
Your Financial Independence Articles
How to make money online - 10 ways to use the internet to make money - There are many different ways to make online. Better still, you can setup sources of passive income that will continually flow money into your life...
Your free gift
We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
Your Financial Independence Articles
How to make money online - 10 ways to use the internet to make money - There are many different ways to make online. Better still, you can setup sources of passive income that will continually flow money into your life...
The science of getting rich - getting into the right business - "The various faculties of your mind are the tools with which you must do the work which is to make you rich. So it will be easier for you to succeed if you get into a business for which you are well equipped with mental tools."
The science of getting rich - efficient action - You can advance in life only by becoming larger than your present place, only by expanding your skills, abilities and actions. The world is advanced by people who do much more than they are required to do...
The science of getting rich - efficient action - You can advance in life only by becoming larger than your present place, only by expanding your skills, abilities and actions. The world is advanced by people who do much more than they are required to do...
Reader's Sponsored Articles
Pinnacle Plans LLC presents Permission is Not Optional in Email Marketing posted at Pinnacle Plans blogs.
Eadwine Walter presents Top 20 Urban Planning Successes of All Time posted at Masters in Public Administration, saying, "Planning a city is no easy task. This is a list of the 20 cities that actually did urban planning right."
Tim Chen presents Costco TrueEarnings: the Best Credit Card for Well-Rounded Spenders? posted at NerdWallet Blog - Credit Card Watch, saying, "When you, as a credit card user, are hunting for ways to maximize rewards, attention-grabbing 5% cash back offers can be tempting. But we’ve made no secret of our view that these cards rarely offer the best deals. If you just want to find the one card that fits your spending habits the best and move on with your life, the Amex TrueEarnings Card from Costco might be exactly what you’re looking for."
Nabil Gulamani presents The new definition of what it means to be Rich and why this is important for you to know posted at SuccessAtReach — SuccessAtReach.
Big Cajun Man presents The Good Wine: A Personal Finance Parable posted at Canadian Personal Finance Blog, saying, "When you plan, make sure you complete the plan and do what you want, or you might not get what you want."
Online Dividends presents $50 Tradeking Cash Bonus Promotion posted at Blogging Banks, saying, "Tradeking, which one of the best stock brokerages in the US, has a limited time promotion for new clients. The promotion expires August 31, 2010. source:"
Norriss presents Payday Cash Loans posted at Cheap Payday Loan Blog, saying, "Payday cash loan are a way out when we have an urgent payment requirement."
Luke Lee presents Debt Management posted at Credit Card Debt Relief | Right Start LLC, saying, "This article describes the workings and benefits of a debt management plan (DMP) for unsecured debt problems."
BIFS presents 10 Signs of Debt Storms Ahead posted at Budgeting In the Fun Stuff, saying, "I would highly suggest avoiding these financial scenarios."
That concludes this edition. Submit your blog article to the next edition of financial independence using our
carnival submission form.
Past posts and future hosts can be found on our blog carnival index page.
Technorati tags:
financial independence, blog carnival.
Pinnacle Plans LLC presents Permission is Not Optional in Email Marketing posted at Pinnacle Plans blogs.
Eadwine Walter presents Top 20 Urban Planning Successes of All Time posted at Masters in Public Administration, saying, "Planning a city is no easy task. This is a list of the 20 cities that actually did urban planning right."
Tim Chen presents Costco TrueEarnings: the Best Credit Card for Well-Rounded Spenders? posted at NerdWallet Blog - Credit Card Watch, saying, "When you, as a credit card user, are hunting for ways to maximize rewards, attention-grabbing 5% cash back offers can be tempting. But we’ve made no secret of our view that these cards rarely offer the best deals. If you just want to find the one card that fits your spending habits the best and move on with your life, the Amex TrueEarnings Card from Costco might be exactly what you’re looking for."
Nabil Gulamani presents The new definition of what it means to be Rich and why this is important for you to know posted at SuccessAtReach — SuccessAtReach.
Big Cajun Man presents The Good Wine: A Personal Finance Parable posted at Canadian Personal Finance Blog, saying, "When you plan, make sure you complete the plan and do what you want, or you might not get what you want."
Online Dividends presents $50 Tradeking Cash Bonus Promotion posted at Blogging Banks, saying, "Tradeking, which one of the best stock brokerages in the US, has a limited time promotion for new clients. The promotion expires August 31, 2010. source:"
Norriss presents Payday Cash Loans posted at Cheap Payday Loan Blog, saying, "Payday cash loan are a way out when we have an urgent payment requirement."
Luke Lee presents Debt Management posted at Credit Card Debt Relief | Right Start LLC, saying, "This article describes the workings and benefits of a debt management plan (DMP) for unsecured debt problems."
BIFS presents 10 Signs of Debt Storms Ahead posted at Budgeting In the Fun Stuff, saying, "I would highly suggest avoiding these financial scenarios."
That concludes this edition. Submit your blog article to the next edition of financial independence using our
carnival submission form.
Past posts and future hosts can be found on our blog carnival index page.
Technorati tags:
financial independence, blog carnival.
Monday, August 9, 2010
Financial Independence Compilation
Welcome to the August 8, 2010 edition of financial independence.
Your free gift
We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
Teaching children how to manage their money.
For those of us who have children, I am included in this lot, I have been thinking what is the best way to teach them about money. I was talking to my 6 years old daughter the other day and she asked why we are poor. I nearly fell off my chair because we are not poor at all. She started mentioning how this friend at school went overseas for holidays or how the other friend has a big house and the list went on.
I tried to explain to her that we are not poor but I tried to talk about the things that are really important rather than money and other material things. Quite honestly I think that I failed because in the head of a 6 years old being rich probably means having lots of things.
The challenge for me remains, how to teach our children about how to manage finances. I will do a bit of research on the topic and hopefully I can learn from it.
Call for submissions: If you have published any good articles on how to teach children about finances, please submit them to my next edition of Your Financial Independence carnival. The next edition will be published on Wednesday, 11 August 2010.
Reader's Sponsored Articles
MoneyNing presents Three Reasons Stay at Home Parents Should Consider Working Part Time posted at Money Ning, saying, "Working part time is not as bad as it seems, even for stay at home parents!"
Silicon Valley Blogger presents Use A Debt Consolidation Calculator, See How To Erase Debt Faster posted at The Digerati Life, saying, "Thanks!"
wvphotoj presents Point....Click...Shoot: Making Money with Your Photography with Jim Zuckerman posted at Point....Click...Shoot.
Nabil Gulamani presents Why you are having a hard time saving your money every month! posted at SuccessAtReach — SuccessAtReach.
BWL presents How to Build a CD Ladder posted at Christian Personal Finance, saying, "This article lays out the basics of creating a CD ladder.."
Lauren Mendel presents Pay Now, Play Later posted at Richly Reasonable - Successes and failures, all in the name of living reasonably., saying, "Putting something in layaway is no different than setting up an automatic saving plan, but it may provide that extra incentive to save if you are in need of a little motivation. Maybe you like knowing the exact TV that is in Sears waiting for you. Maybe you like going into the store an making a payment; each time knowing you are a bit closer to that riding lawnmower and sweet victory. Whatever the reason, if layaway is what you need to achieve your savings goal, minus the credit card interest, then I am all for it."
Michael presents What is a Credit Freeze or Security Freeze? posted at Identity Theft Wall, saying, "Freezing your credit can be a vital play in the attempt to prevent identity theft."
Michael presents IDENTITY GUARD® 30-Day Free Trial Review posted at Identity Theft Wall, saying, "Identity Guard boasts the best id theft protection service in the business. Does it hold up?"
Ray A Johnson presents Milwaukee posted at The Debt Crisis.
Susan Kilroy presents 10 Foods With a Really High Price Tag posted at CriminalJusticeDegreesGuide.com.
Achola presents Forex Mechanical System Trading - How You Can Quickly Get Forex Software And Start Making Money Immediately! posted at Forex Mechanical System Trading | Simulated Forex Trading | Best Forex Software.
Sun presents What to Let Go to Get to Know Wealth posted at The Sun’s Financial Diary.
Jennifer Meyer presents 50 Excellent Twitter Accounts Every Public Administrator Should Follow posted at Master of Public Administration, saying, "It is possible to find and follow a wide variety of people with good public administration insights. Here are 50 great Twitter accounts for public administrators."
nissim ziv presents How to Find a Job after College: When you have No Experience posted at Job Interview Guide, saying, "Job markets all over the world are changing and becoming more competitive as the days pass. Even the simplest of jobs require a particular level of work and subject experience."
That concludes this edition. Submit your blog article to the next edition of financial independence using our
carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Technorati tags:
financial independence, blog carnival.
Your free gift
We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
Teaching children how to manage their money.
For those of us who have children, I am included in this lot, I have been thinking what is the best way to teach them about money. I was talking to my 6 years old daughter the other day and she asked why we are poor. I nearly fell off my chair because we are not poor at all. She started mentioning how this friend at school went overseas for holidays or how the other friend has a big house and the list went on.
I tried to explain to her that we are not poor but I tried to talk about the things that are really important rather than money and other material things. Quite honestly I think that I failed because in the head of a 6 years old being rich probably means having lots of things.
The challenge for me remains, how to teach our children about how to manage finances. I will do a bit of research on the topic and hopefully I can learn from it.
Call for submissions: If you have published any good articles on how to teach children about finances, please submit them to my next edition of Your Financial Independence carnival. The next edition will be published on Wednesday, 11 August 2010.
Reader's Sponsored Articles
MoneyNing presents Three Reasons Stay at Home Parents Should Consider Working Part Time posted at Money Ning, saying, "Working part time is not as bad as it seems, even for stay at home parents!"
Silicon Valley Blogger presents Use A Debt Consolidation Calculator, See How To Erase Debt Faster posted at The Digerati Life, saying, "Thanks!"
wvphotoj presents Point....Click...Shoot: Making Money with Your Photography with Jim Zuckerman posted at Point....Click...Shoot.
Nabil Gulamani presents Why you are having a hard time saving your money every month! posted at SuccessAtReach — SuccessAtReach.
BWL presents How to Build a CD Ladder posted at Christian Personal Finance, saying, "This article lays out the basics of creating a CD ladder.."
Lauren Mendel presents Pay Now, Play Later posted at Richly Reasonable - Successes and failures, all in the name of living reasonably., saying, "Putting something in layaway is no different than setting up an automatic saving plan, but it may provide that extra incentive to save if you are in need of a little motivation. Maybe you like knowing the exact TV that is in Sears waiting for you. Maybe you like going into the store an making a payment; each time knowing you are a bit closer to that riding lawnmower and sweet victory. Whatever the reason, if layaway is what you need to achieve your savings goal, minus the credit card interest, then I am all for it."
Michael presents What is a Credit Freeze or Security Freeze? posted at Identity Theft Wall, saying, "Freezing your credit can be a vital play in the attempt to prevent identity theft."
Michael presents IDENTITY GUARD® 30-Day Free Trial Review posted at Identity Theft Wall, saying, "Identity Guard boasts the best id theft protection service in the business. Does it hold up?"
Ray A Johnson presents Milwaukee posted at The Debt Crisis.
Susan Kilroy presents 10 Foods With a Really High Price Tag posted at CriminalJusticeDegreesGuide.com.
Achola presents Forex Mechanical System Trading - How You Can Quickly Get Forex Software And Start Making Money Immediately! posted at Forex Mechanical System Trading | Simulated Forex Trading | Best Forex Software.
Sun presents What to Let Go to Get to Know Wealth posted at The Sun’s Financial Diary.
Jennifer Meyer presents 50 Excellent Twitter Accounts Every Public Administrator Should Follow posted at Master of Public Administration, saying, "It is possible to find and follow a wide variety of people with good public administration insights. Here are 50 great Twitter accounts for public administrators."
nissim ziv presents How to Find a Job after College: When you have No Experience posted at Job Interview Guide, saying, "Job markets all over the world are changing and becoming more competitive as the days pass. Even the simplest of jobs require a particular level of work and subject experience."
That concludes this edition. Submit your blog article to the next edition of financial independence using our
carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Technorati tags:
financial independence, blog carnival.
Tuesday, August 3, 2010
Investing in shares - learning from the financial press
In this article, we discuss how to read the financial newspapers and look at other areas of the media that can provide you with information on share market investment.
The financial press in Australia, and any other country, is a very important and influential source of information in many sectors of the community. Investors rely on it for information about how their shares are performing, stockbrokers read it to see what else is happening in the sharemarket, politicians read it to see how their policies are affecting the market (and in turn, the economy) and business people in general read it to see how their companies are perceived and how other companies are performing.
It is a quick and relatively cheap way for investors to discover what the professionals in the finance industry are thinking and doing each day, and to keep an eye on their investments.
Most newspapers have a range of financial stories in their general news section. However, the majority of stories relating to listed companies will appear in a special finance section of the paper, usually titled 'Business', 'Finance' or 'Money'.
Always remember the financial press is a source of both facts and opinions. Facts are derived from official announcements made by companies, governments, other organisations as well as from the publication's own researchers. Opinions are usually expressed in special columns by regular writers, cartoons and feature stories by guest writers or journalists. Guest writers may include politicians, stockbrokers, advisers or other prominent industry figures.
The newspapers and other publications you select to help keep you informed will depend on your budget and your particular interests and preferences. Are you seeking to achieve a local perspective or a national overview? Do you want brief or detailed information? The answers to these questions will help you to choose publications that are most appropriate for you.
There is also a wealth of specialist finance magazines. Again these are aimed at a range of different markets so spend time to read through a variety of them to find the one that is suitable for you.
Can I base my investment decisions on share market tables?
It is preferable not to. The sharemarket tables in the newspaper contain a lot of useful information, however, it is important to note that they only contain historical figures.
For example, Company X might be showing a dividend yield of 20 per cent. But a chat with your stockbroker may reveal that although last year's dividend was 20 cents, the shares are now trading at $1.00 and brokers are forecasting this year's dividend will be 3 cents - providing a yield of only 3 percent.
Your stockbroker may be able to provide you with very useful forecasts for the future performance of individual companies.
Annual reports
There are numerous facts you should know about a company before you invest in it. What does the company do? Who are the directors and what is their business experience? How is the company currently performing? What are its prospects?
The financial statements included in annual reports are a valuable source of the information you will require to answer these questions. Analysts in stockbroking firms, merchant banks, investment companies and financial institutions rely on them to make major investment recommendations for their organisations.
The contents of most annual reports can be divided into 3 general areas:
1. Background and highlights,
2. Review of operations, divisional activities and human resources:
3. Financial Statements
The content and form of financial statements for public companies which is used for this purpose is prescribed and controlled by:
• Corporations Law
• Listing Rules
• Approved accounting standards (which have the force of law)
• Statements of accounting concepts, and
• Accounting Standards.
In summary, there is a wealth of information available to guide the investor to make informed decisions for investing in an organisation.
This article is based on the ASX share course, 2008.
The financial press in Australia, and any other country, is a very important and influential source of information in many sectors of the community. Investors rely on it for information about how their shares are performing, stockbrokers read it to see what else is happening in the sharemarket, politicians read it to see how their policies are affecting the market (and in turn, the economy) and business people in general read it to see how their companies are perceived and how other companies are performing.
It is a quick and relatively cheap way for investors to discover what the professionals in the finance industry are thinking and doing each day, and to keep an eye on their investments.
Most newspapers have a range of financial stories in their general news section. However, the majority of stories relating to listed companies will appear in a special finance section of the paper, usually titled 'Business', 'Finance' or 'Money'.
Always remember the financial press is a source of both facts and opinions. Facts are derived from official announcements made by companies, governments, other organisations as well as from the publication's own researchers. Opinions are usually expressed in special columns by regular writers, cartoons and feature stories by guest writers or journalists. Guest writers may include politicians, stockbrokers, advisers or other prominent industry figures.
The newspapers and other publications you select to help keep you informed will depend on your budget and your particular interests and preferences. Are you seeking to achieve a local perspective or a national overview? Do you want brief or detailed information? The answers to these questions will help you to choose publications that are most appropriate for you.
There is also a wealth of specialist finance magazines. Again these are aimed at a range of different markets so spend time to read through a variety of them to find the one that is suitable for you.
Can I base my investment decisions on share market tables?
It is preferable not to. The sharemarket tables in the newspaper contain a lot of useful information, however, it is important to note that they only contain historical figures.
For example, Company X might be showing a dividend yield of 20 per cent. But a chat with your stockbroker may reveal that although last year's dividend was 20 cents, the shares are now trading at $1.00 and brokers are forecasting this year's dividend will be 3 cents - providing a yield of only 3 percent.
Your stockbroker may be able to provide you with very useful forecasts for the future performance of individual companies.
Annual reports
There are numerous facts you should know about a company before you invest in it. What does the company do? Who are the directors and what is their business experience? How is the company currently performing? What are its prospects?
The financial statements included in annual reports are a valuable source of the information you will require to answer these questions. Analysts in stockbroking firms, merchant banks, investment companies and financial institutions rely on them to make major investment recommendations for their organisations.
The contents of most annual reports can be divided into 3 general areas:
1. Background and highlights,
2. Review of operations, divisional activities and human resources:
3. Financial Statements
The content and form of financial statements for public companies which is used for this purpose is prescribed and controlled by:
• Corporations Law
• Listing Rules
• Approved accounting standards (which have the force of law)
• Statements of accounting concepts, and
• Accounting Standards.
In summary, there is a wealth of information available to guide the investor to make informed decisions for investing in an organisation.
This article is based on the ASX share course, 2008.
The science of getting rich - acting in a certain way
"You must give every man more in use value than he gives you in cash value."
We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.
This article is based on the chapter of the book where Mr Wattles teaches us to act in a certain way that will take us closer to our financial objectives.
We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.
This article is based on the chapter of the book where Mr Wattles teaches us to act in a certain way that will take us closer to our financial objectives.
Mr Wattles says that if your dreams are firmly impressed upon your mind, if you use your will power in the right way, if you have an attitude of gratitude, if you give to every person more than you take from them and you act in a certain way you will attract your dreams and the what you want to achieve will come to you.
You must not interpret his words as mere dreaming without no action. What he means is that you need your mind set in a way that will continually motivate you. The road to riches, financial independence or whatever it si that you want to achieve is not easy so you need to remain positive.
Those advices are followed by some concrete actions that you can take today that will take you further in your road to wealth. The first one is giving everyone more in use value than he gives you in cash value. This means that you are doing your very best to serve your customers and to deliver value to them. Your customers, which can be your employer, needs to have the impression of more use value than in cash value that he gives you.
I have used this advice and it worked wonders in my life and it continues to work. To find out more how this advice has literally changed my life click here.
The nest advice is to act in a certain way that will take you closer to achieving your dreams. But exactly are you meant to act?
Do not bother as to whether yesterday’s work was well done or ill done, do today’s work well. Do not try to do tomorrow’s work now, there will be plenty of time to do that when you get to it.
Do not wait for a change of environment, before you act, get a change of environment by action. Cause your environment to change. You can so act upon the environment in which you are now, as to cause yourself to be transferred to a better environment.
Hold the vision of yourself in the right business, with the purpose to get into it and the faith that
you will get into it and are getting into it, but ACT in your present business. Use your present business
as the means of getting a better one, and use your present environment as the means of getting into a
better one. Your action, if performed in the certain way, will cause you to move toward the business.
Hold the vision of yourself in the job you want while you ACT with faith and purpose on the job
you have, and you will certainly move into a better job.
Do the best that you can do today, don't wait for tomorrow.
If you want to start investing in shares, do so today. If you to learn how to manage your finances, start today. If you in debt and want to get out of it, start today. Don't stay where you are, use your mind and will power to motivate you to move towards your dreams and act today in a way that will take you closer to your financial dreams.
Monday, August 2, 2010
Buying and selling shares
Buying and selling shares
The share market can be thought of in terms of its two main functions: The primary market where companies raise money by floating their company and selling shares to investors. Following this Initial Public Offering, the shares are then able to be traded on the share market (the secondary market).
So as an investor there are two distinct points at which you can purchase shares:
So as an investor there are two distinct points at which you can purchase shares:
1. From the company itself in the very first instance of the shares being offered in the float.
2. Following the float, shares are bought from other investors via the share market. Shares can only be sold on the secondary market.
Buying shares in a float or Initial Public Offering
The word float is used when a company seeks to raise money by offering its shares to the public for the first time. The company must first submit details of its business and the proposed share issue to the Australian Securities and Investment Commission (ASIC) in a document called a prospectus.
Once the prospectus is lodged with ASIC, it is then available to potential investors for consideration. If you wish to buy shares in a float, you must first review the prospectus, fill in the attached application form, specifying the number of shares you want to buy, and send it with your payment to the company or lodge it with your adviser.
Lodging and/or registering a prospectus with ASIC and listing on the ASX does not guarantee the company will be successful once share trading begins.
Among other things, a prospectus is required to contain all the information that investors and their professional advisers would reasonably require to make an informed assessment.
When assessing a prospectus it may be useful to answer the following questions:
• Who – who is involved? (stockbrokers, underwriters, management, board, others)
• What - what is on offer? (growth, income-yielding, tax-effective or speculative shares)
• When - when does the issue take place? (bull/bear market)
• Why - why are they raising funds? (expansion, retire debt, sell down, takeover)
• How - how to participate in the issue? (public pool, firm share, entitlement, demutualisation)
If there is a great deal of investor interest in a new float, you may be allocated fewer shares than the number you applied for or none at all. With some floats, the initial share price (issue price) is not set until just prior to the first day of trading. You should obtain independent advice from a licensed professional adviser prior to making any final decision.
Following the float the shares are now listed on the share market. From this point shares can only be bought and sold on market through a stockbroker.
Buying and selling shares through a stockbroker
Buying and selling shares through a stockbroker
Establishing a relationship with a broker is easy. Each broker will have a slightly different process, but most require you to establish a client account. They may also need bank account details for the lodgement or receipt of trading proceeds.
When you place an order to buy or sell shares, you have a choice of two ways to tell your broker what price you will accept. You can place your order 'at market', meaning you will accept a price at or about the market price of the shares at the time you are placing your order.
Alternatively, you can place your order 'at limit', and inform your broker of the highest price you are prepared to pay or the lowest price at which you will sell. Orders where you set a 'trigger' point are known as conditional orders.
Determining entry and exit prices for shares is important. Investors are very capable of buying shares, however many fail to consider when to sell. Setting a target price to sell is an often overlooked skill.
When placing an order with your adviser, make sure you are fully informed and that your order is confirmed. Ask the current market price and write it down. Then tell your broker the details of your order (i.e. the amount of shares to be bought or sold and the price at limit or at market). They should then repeat the order back to you.
Internet based stockbroking websites provide confirmation screens for you to double check your order before it is processed.
Following a transaction on the share market you will be sent a contract note (confirmation). This outlines the details of your trade, including the number of shares and the amount paid or received for them.
Happy trading!
Sunday, August 1, 2010
Financial Independence Compilation
Welcome to the August 2, 2010 edition of financial independence.
This week we have been very busy here at "Your Financial Independence". We have added a new section which discusses how the timeless book the Science of Getting Rich has helped me on my path to financial independence. In there, I tell you a bit of my story and how the book has provided me with an extra $42,000. Click here to read more...
Your Financial Independence Articles
Evaluating Investment Opportunities - Evaluating investment opportunities (e.g. shares, property, bonds) is easier if you use a standard set of criteria to measure and compare them. While each investment must be evaluated in the context of your personal goals and objectives, in most cases the following characteristics may be considered. Click here to read more...
A few strategies to make some extra money - It is always a good idea to make some extra money. It can help you to pay off a debt, save or just buy something that you want. Click here to read more...
Debt Consolidation - means taking out one loan to pay off others. One of the main benefits of taking out a debt consolidation loan is sometimes lower interest rate and the convenience of paying off only one loan. Click here to read more...
The science of getting rich - how riches come to you - Wattles makes a very good point in this chapter: "...give to every person more than you take from him". This is simply the best advice anyone could give me. Click here to read more...
The science of getting rich - gratitude - This articles looks at the chapter regarding gratitude. The bottom line about this article is simple: "what comes around goes around". Click here to read more...
The science of getting rich - the will power -When you know what to think and do, then you must use your will to compel yourself to think and do the right things. That is the legitimate use of the will in getting what you want — to use it in holding yourself to the right course. Click here to read more...
Your free gift - We are offering you a free gift that we are sure that it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
Reader's sponsored articles
Meredith presents Visiting the Gili Islands posted at Tropical Islands, saying, "The tropical islands of Indonesia include far more than just the popular Bali."
Nissim Ziv presents How to Reach your Career Goals and Objectives posted at Job Interview Guide, saying, "Being successful in a profession covers a lot of aspects. Being successful in a career does not only mean being paid at the end of the month and getting appraisals at the end of a year or more."
Mike Piper presents 2011 Tax Brackets: What Will Change and How Should We Plan for It? posted at The Oblivious Investor, saying, "A look at likely 2011 income tax changes, as well as some tips for minimizing your own tax burden in light of upcoming changes."
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Barb presents REDUCE STRESS; Get Rid of Dysfunctional Money Behaviors – Part 3 posted at Barbara Friedberg Personal Finance, saying, "Poor money habits can sabotage your retirement as well as your current lifestyle. Learn how to combat mental money problems and take steps to improve dysfunctional money behaviors."
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Contact presents 5 Reasons To Avoid Amex Blue Cash posted at NerdWallet Blog - Credit Card Watch, saying, "The internet is full of reasons why you should sign up for an Amex Blue Cash. 5% sounds pretty tasty, after all. But here are a few reasons why you shouldn't sign up for it."
Charles Chua C K presents 7 Personal Financial Crises and Emergency Fund posted at All About Living with Life.
Dividend Growth Investor presents 14 Dividend Stocks with Dividend Growth Potential posted at Dividend Growth Investor.
Trade27 presents Enter the Day Trading World! posted at Investing:Day-Trading Articles from EzineArticles.com, saying, "Want to learn How To Pin Point The Highs and the Lows in trading! Make Massive profits From ANYWHERE in The World! See Hidden Amazing Accuracy within The Charts , That The Naked Eye cant SEE!"
Carlos Sera presents A Puzzling Tale - The Case for Bonds in 2040; Financial Tales posted at Financial Tales, saying, "Today I release A Puzzling Tale and it falls under the category of Investing Tales. A Puzzling Tale deals with what is called “The Equity Premium Puzzle or EPP.” You’ll have to read the tale if you don’t know exactly what it is. Nevertheless it has baffled investment theorists for decades and to this day has no resolution. This tale speaks to the problem confronting every investor, namely, where do I put my money. How do investors make a trade-off between risk and reward?"
FMF presents Free Money Finance: Three Traits That Can Make You Wealthy posted at Free Money Finance, saying, "Want to be wealthy? Then develop these traits in yourself and you'll be well on your way."
Alexander presents Real Estate Invement Trusts posted at Dividend Stocks, saying, "If you are looking for extra income from your investments, take a look at real estate investment trusts."
Moneyedup presents 5 Ways To Pay Off Your Mortgage Faster posted at MoneyedUP, saying, "Pay off your mortgage faster with our five debt reduction tips."
Braudis Lee Pegram presents SBA Podcasts posted at The koH Resources Blog, saying, "Last week, the SBA offered a new set of three export-oriented podcasts concerning valuable information on issues and challenges of small business exporters."
Passive Family Income presents CD Ladders – When are They a Bad Investment? posted at Passive Family Income, saying, "CD ladders can be a safe and secure investment but there are times when they are just not worth it."
Passive Family Income presents Top Passive Income Streams You Should Consider posted at Passive Family Income, saying, "If you want to be able to do some extra things in life, retire early, or just bulk up your finances passive income is the way to go. There are loads of ways to earn money that do not require you to break your back logging loads of hours."
BWL presents 5 Free Personal Finance iPhone Apps posted at Christian Personal Finance, saying, "These are some of the better money management apps for the iPhone..."
MoneyNing presents How to Dress Well on a Budget posted at Money Ning, saying, "Looking awesome and expensive clothes really isn't a synonym. Here are a bunch of ways you can save and still dress nice."
Colin Robertson presents How to Pay Off Credit Card Debt posted at The Truth About Credit Cards.com.
Roshawn Watson presents Hey Broke People, Stop Overpaying For College! posted at Watson Inc, saying, "The facts are undeniable: even in an uncertain economic climate, we've placed an inordinate value on getting into the "right" college. And if your child has any academic aptitude, then the "right" college invariably means an exorbitantly priced one."
Arjun Rudra presents Gaining Exposure To The Resource Sector Through An Undervalued Investment Company & Merchant Bank posted at Investing Thesis, saying, "As investors, we’re always on the lookout for good companies, especially at cheap valuations. Aberdeen International [AAB:TSX] is one such company."
Jacob A. Irwin presents eBay vs. Amazon - Part 1 - Comparison of Selling posted at My Money Blog - Personal Finance and Investing, saying, "A comparison of whether it is more profitable and efficient to earn extra money selling items on eBay or Amazon."
Michael Pruser presents Are Debt Consolidation Companies Your Friend? posted at The Dough Roller, saying, "All of the advertisements about Debt Consolidation Companies helping you out are a bit misleading..."
Arohan presents Avoid These 5 Common Investing Mistakes posted at Personal Dividends, saying, "It is too easy to get carried away with personal and market sentiments. But if your investment portfolio is to succeed, you need to pay attention to these common investment mistakes and avoid them."
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Thursday, July 29, 2010
The science of getting rich - the will power
We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.
This articles looks at the chapter regarding the will power. The bottom line about this article is simple: "what comes around goes around".
This articles looks at the chapter regarding the will power. The bottom line about this article is simple: "what comes around goes around".
When you know what to think and do, then you must use your will to compel yourself to think
and do the right things. That is the legitimate use of the will in getting what you want — to use it in
holding yourself to the right course.
If you have a financial goal you have to use your will to remain focused. If you have such a strong will that you have no shadow of doubt that you are capable and that you will achieve your goals, this frame of mind will keep you motivated.
Let's face it, the journey to financial independence is very hard. My objective is to generate enough passive income to support myself and my family. By the very definition, passive income is income that once setup, will keep on generating income without your contribution, without you having to work on it.
Passive income is very difficult to get. People don't just give you money, they need to get value. We learned from Wattles that we need to give others more in use value than in cash that you receive from them, in other words, give people valuable and useful things that will positively affect their lives.
It is all very difficult and we will certainly face some failures on the way. Nevertheless your will can help you to stay motivated and on the path, don't quit it half way.
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