Sunday, February 19, 2017

10 Smart Ways Americans Save Money

I got the idea for this blog from a recent article I read on MSN. It is called "6 really dumb ways Americans waste money", I have attached the link to it at the bottom of this post in case you want to read it.

I didn't quite like the negative tone of that article and how it was portraying us when it comes to money matters.

Therefore, I wanted to write something to counter that article by sharing how Mrs. ATM and I save money and there are millions of my fellow Americans who are doing the same and even better.

Internet is full of blogs and stories of such people who have worked their way into financial independence by adopting frugality.

I liked a recent story about Warren Buffet (the billionaire investor) where he took his friend Bill Gates (the richest guy in the world) to McDonalds and used coupons to buy their meals. He is not cheap, he is smart in applying the concept of 'value buying' to everything he purchases.

Wednesday, February 15, 2017

A Better Way to Build a Bond Ladder

Investors often gripe with what to do with the uninvested cash sitting in their brokerage accounts earning next to nothing interest rate while waiting for a market correction. I've been feeling the similar blues as I do have some cash from recent sales of a few overvalued stocks that I would like to reinvest.

However, the market is quite overvalued and it's hard to find bargains. Therefore, I would like to find a good place to park my cash while I wait for a bargain or a correction to show up.

So what are the choices for parking cash and earning some interest?

Banks hardly pay anything. My bank currently pays 0.03% interest on a money market savings account. An online only bank could pay up to a 1%, but I don' t like online only banks. Call me old fashion but I like to put my money in a bank or brokerage that has a physical brick & mortar presence so that I can go there and talk to someone if a need arise.

Also CDs (certificate of deposits) don't pay much either. You have to lock your money in a CD for several years to get 1-2% interest. I want the ability to pull out cash for investment as needed without having the cash tied into some long-term CD.