Posts by ssolares

What’s a bond? In the last lesson, you learned about stocks, which is ownership in a company. What’s a bond then? Well, it’s not ownership. Instead, it’s an IOU. Imagine you have a friend who needs to borrow $1,000 from you. If you lend her the money, she gets the cash and you get what?…

Today’s lesson is capitalism 101. As an investor, my guess is a good deal of your portfolio will be in stocks and bonds. These are the two primary types of investments for most investors. Knowing the differences is critical in your journey to being truly money smart. You may already have a good grasp of…

Investing is good. Well, yes, but why is investing good? Uh, because you make money? Yes, that’s true, and how do you make money as an investor? As an investor, you invest and this investing makes investment money. It’s common knowledge. I’ve asked a lot of people over the years how an investment can make…

Is investing like gambling in Vegas? I get this question a lot, and I can understand why. From an outsider’s perspective, someone not in the financial or investment industry, I can only imagine how ridiculous it must look. I remember watching the movie “Trading Places” when I was a kid. It’s the film where Eddie…

What’s Inflation? When I was a kid, I had to walk to school in three feet of snow, in June, uphill both ways. Okay, so maybe Gramps is exaggerating just a bit, but when he complains about paying $15 for a movie or $10 for a hamburger because when he was growing up “movies were…

Get Organized by Starting With a Game Plan Here’s the thing. I hate paperwork. I hate organizing stuff. Which makes me the perfect person to be teaching this lesson. Why? If you’re like me, the last thing you want is some peppy “I just love and live to organize everything” guy. I can’t relate to…

Are you an employee or an independent contractor? If you work for somebody, there’s a good chance you are either an employee or an independent contractor. Is there a difference and does it matter? Yes and yes. Most people with a job are an employee. This means you show up at a particular time, do…

What’s a rainy day emergency fund? It’s simply some money you’ve set aside just in case of an unexpected situation where money can help, such as a job layoff, needed medical treatment, or bail (it happens!). And really, can’t most negative and unforeseen events benefit from a bit of money? It’s rare you would hear,…

What is financial independence? Well, what’s financial dependence? Independence versus dependence. Good versus evil! Independence is always better than dependence, right? The 4th of July is Independence Day! That’s good. If your boyfriend or girlfriend ever says, “I like you, but you’re really dependent,” you can be sure you’ll soon be hearing the “It’s not…

Are you ready for some high level stuff? I think you’re ready for it. I don’t share what I’m about ready to share with just anyone. I reserve it for special people and special occasions. I think you’re the person and this is the occasion to discuss the blue line. The first time I shared…