Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts

Saturday, May 5, 2007

13 Days on $100.17

Want to know what it's like to check your online bank statement and realize you have $100.17 dollars left and 13 days to make it last...

This was the situation I found myself in during the 2nd semester of my sophomore year in college. The first thing I did was sit down and write out a list of the absolute bare necessity purchases I was going to need to make.

I ended up going to the grocery store and picking up a GIANT sack of potatoes, some lettuce, and carrots. I survived the week, barely. Did you know there are like a million ways to cook a potato?. It took me 6 months before I could eat another one.

A few things to keep in mind when you are extremely strapped for cash:

  • Organize yourself, plan to purchase only the bare necessities

  • Don't be shy to ask around at the grocery store for deals on overstock food, etc

  • Take public transportation when possible (seen gas prices lately?)

  • Keep yourself busy doing something you've been meaning to do for awhile (read a favorite book, do some much needed yard work, organize the junk in your attic or basement)

  • Celebrate when your next paycheck comes in (cost effectively of course!)

  • Learn from your mistake, keep a better eye on your finances and control unnecessary expenses in the future
Also check out this article: Retirement Concerns

Friday, May 4, 2007

Personal Finance Fridays

Welcome to Personal Finance Fridays. My goal for the year is to return 12% on my investments, but so far I am not doing as well as I would like this year. For the year-to-date (YTD) I am up 2.54% compared to 5.93% for the S&P 500. Listed below is the breakdown of my portfolio:

18.47% iShares NYSE 100 Index (NY)
18.18% Under Armor (UA)
16.10% iShares S&P 500 Index (IVV)
7.12% Apple (AAPL)
6.81% Coca-Cola (KO)
6.42% Goldman Sachs (GS)
5.73% Citigroup (C)
5.10% Borg Warner (BWA)
3.69% Montpelier RE Holdings (MRH)
3.59% Best Buy (BBY)
2.41% Colgate Palmolive (CL)

I am not as diversified as I would like to be. However, my plan is to make periodic purchases as my income allows to re-balance it. The good news about this strategy is that over time I will become more invested in the market as I diversify, the downside is that I am putting myself in greater risk right now. In my defense, I am SLIGHTLY more diversified than first meets the eye because 2 out of 3 of my biggest holdings are index funds, which are themselves diversified.

I am taking steps to diversify and correct my performance and hopefully continue to build wealth as the years go by. Feel free to post constructive criticisms or anything you feel relevant, look forward to more of these Personal Finance Fridays so we can track my performance over the long term.