Friday, March 26, 2010

Compound Interest and the Rule of 72

Compound interest basically occurs when you invest money in an account and do not take it out. The interest that you receive at the beginning of the investment starts to gain interest and so on and so on. This means that you will make more off the investment over time because the interest sits in the account and continues to grow.

A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.

Friday, March 12, 2010

Opportunity Costs

In your own words, explain what economists mean when they talk about "Opportunity Costs". What are opportunity costs? Give some examples. And give some examples from your own life. How do, or how will, opportunity costs affect you?


An opportunity cost it is something that is given up for something else. An opportunity cost is applied dead o within the stock market. You are taking your chances on a certain stock over other , and not knowing what might happen. A stock you buy goes down, and the stock you thought of buying goes up. An opportunity cost to me is a gamble between time and money most of the time.

When economists refer to the opportunity cost of a resource, they mean the value of the next-highest-value alternative use of that resource. You spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.

Tuesday, March 2, 2010

My Checkbook Budget

Rent:

 

I am going to rent a 1 bedroom apt.In Bronx for $940.00 per month

 

Health Club:

$80.00 per month

Subway Pass:

$89.00 per month

School Loan:

$69.00 per month

Phone,Cable, Internet:

$100.00 per month

Car Payment:

NA

Car Insurance

NA

Gasoline:

NA

Car maintenance:

NA

Parking:

NA

Electricity/Gas

$101.00 per month

Food - dining in:

$200.00 per month

Food - dining out:

$100.00 every 2 week

Clothes and Shoes:

$50.00 per month

Dentist

$30.00 per year

Trips-Vacations:

$100.00 per year

Gifts:

$29.99 Moms birthday One Dozen Long Red Roses

Saving/Investing:

$120.00 per month

Luxury spending (concerts, vacation, etc.)

NA

Hair/Beauty:

$10.00 per month

Other:

NA

 

Monday, March 1, 2010

My Investment Strategy


http://www.investmentnewsletters.us/investment-graph-530.jpg

My investment strategy is to get a good company that rises fast most likely a Darden Restaurants
or BJs wholesale club.The BJs day low is about $35.88 and day high is about $36.71 the BJs average volume is 966,400. I also need to stay on a budget because I only have 3 months and only have $5,000 to start so I have to buy less cost company that performance well and before I start buying a stock market I need to research on which stocks I want to buy and use my strategy that I'm still using is looking at the charts of the different stocks.