Sound Wisdom Blog
Taking Stock by Jim Stovall
Inevitably, any discussion involving long-term investing touches upon the stock market. Most investors know, and financial experts agree, that long-term, the stock market is an investment worthy of consideration. While I have always believed in and profited from the stock market, please remember that it may not be wise to invest money in equities or common stock if you need those funds within the next five years. The vast majority of five-year periods throughout the stock market’s history have been favorable. However, if you’re investing for a year, a month, or a day, it can be very volatile and risky. Overall, I know that the weather will be generally hot in August, but if I’m betting on one specific day, it’s impossible to predict.
Paycheck to Paycheck by Jim Stovall
Recent government and industry statistics show that 70 percent of Americans are living paycheck to paycheck. This means that these individuals are literally less than a month from going into default on their obligations, and bankruptcy is not far behind. When you study the individuals who make up this 70 percent segment of our population, there are some interesting factors that I believe can teach us all some valuable lessons.
Financial Planning for the Birds by Jim Stovall
When it comes to money, we can all learn from our friends the birds.
Most people among us know no way to survive financially other than flapping their wings through working at a job and living paycheck-to-paycheck. These people work hard and spend every penny they earn—and often a bit more—thanks to our culture of credit.
Rainy-Day Umbrella by Jim Stovall
In the annual survey of American’s savings rates, an alarming trend is emerging. Reports show that 60 percent of American households could not cover a $500 car repair from savings. This, reportedly, would force them to increase their credit card balance, borrow from family and friends, not pay one of their other bills, or do without a necessity in their monthly expenses.