Avoiding Crash For Cash
10 Ways To Avoid Being The Victim Of A Staged Car Accident
“Crash for cash” scams are an increasing problem on Britain’s roads, with many innocent drivers being targeted, often unaware that they are the victim of a highly organised crime.
The premise seems strange: you are forced to crash into somebody, damaging their car for their financial gain, and throughout the claims process you are held responsible for causing the accident, despite the fact that you have been maliciously induced into doing so.
“It is much like somebody grabbing your arm, hitting themselves in the head with your fist, and then having you arrested for assault and forcing you to pay them for the privilege.”
The “accident victims” will firstly pass their details onto a personal injury solicitor, who may typically charge anything between £500 and £800 as a marketing, or referral fee. Compensation will then be claimed, storage and replacement of the vehicle will be added to the bill - sometimes totalling £20,000 or above – and all for a single shunt in the back of your vehicle. Your insurance premium is increased and a crime has been committed, leaving you as the real victim.
Here are 10 ways you can avoid this happening to you:
1. Take the “Tyres and Tarmac” approach. Always make sure you can see the tarmac below the tyres of the vehicle in front. Keeping a safe distance will reduce your risk of running into the back of somebody, by allowing a greater stopping distance.
2. Beware of Tailgaters. Concentrating on the car behind, through your rear view mirror will take your concentration from the car in front of you. This is how many gangs operate: the car behind you will attempt to take your eyes of the car in front of you, who is also “in on the act”. If the car in front brakes suddenly, you may find yourself accidentally hitting the back of them, as your concentration was on the vehicle behind you.
3. Always look for brake lights. Keep your distance from the car in front and always take extra care in traffic until you can confirm that the vehicle in front has fully operational brake lights. If a car looks like it is slowing quickly and the brake lights are not illuminated, give that particular vehicle plenty of room. Non- functioning lights are a typical ploy to trap unsuspecting motorists.
4. Take extra care at roundabouts or areas where there is stop-start congestion. Roundabouts, especially at rush hour, can be hectic places and timing your manoeuvre is of paramount importance. Naturally, this makes for an ideal opportunity for gangs to target you. A typical example is where there is a gap to join a roundabout. The car in front will speed up to join the busy traffic and you are keen to follow and to join also. The car in front then suddenly brakes and you follow – into the back of their car. The only way to avoid this is not to rush at roundabouts and be very wary of what the car in front is doing. A high percentage of “crash for cash” scams involve roundabouts, owing to the unpredictable nature and heavy traffic.
5. Beware of cars rapidly pulling out of junctions and then braking in front of you.
6. Be extra aware if you are a commercial vehicle owner. Commercial vehicle owners are an easy target when it comes to “crash for cash” as they know that there is a higher probability of the vehicle being fully insured. A regular scam involves two cars and a larger commercial vehicle on the motorway. A car will drive in front of the commercial vehicle, and the second car will intentionally sway into the lane of the car, forcing it to brake and forcing the commercial vehicle to go into the back of the car in front.
7. Be extra aware of known“Hotspots”. Manchester, Bradford, Bolton and Oldham in the North of England are apparently some of the worst areas for “crash for cash” scammers.
8. Take extra care when in lanes. Motorways and dual carriageways always require drivers to give extra diligence to conditions, but it is worth trying to be even more aware when driving in lanes, being aware in faster traffic and always being conscious of the middle lane. A car can purposely pull from the outside lane (fast lane) and cause you to swerve into another car. The faster you are travelling – the greater the risk of severe injury.
9. Be wary of ties, ribbons and materials attached to an exhaust/ tow bar on a vehicle. This practice is getting rarer these days, as many gangs do not wish to draw attention to a particular vehicle via a camera or CCTV. A ribbon or other material tied to a car can indicate that it is willing to be involved in a staged accident, and as an innocent party you may be drawn into a crash – sandwiched between two cars.
10. If you have been involved in an accident and hit the back of another vehicle, then do not panic. As long as you feel okay, chances are you will be okay – always go to the hospital or doctors for a check up just to make sure. If you think that the accident was your fault, then you may have to hold your hands up, but if you are remotely suspicious then be as vigilant as possible. Call the police, take photographs of the vehicle damage (as scammers will often have their vehicle doctored to make it look like the impact was much higher, thus allowing for a greater compensation claim as more damage was caused) and take the full details of the other party. Do not accept liability.
Kindly borrowed from Waring & Co Solicitors, Bolton 01204 550160 www.waring.co.uk
Waring and Co can help you if you feel that you are a victim of a staged accident and try to save the claim coming from your insurance company. If you are injured we can claim from the Motor Insures Bureau on your behalf. For assistance please call 01204 550160 or e-mail mail@waring.co.uk
Wednesday 19 August 2009
Saturday 15 August 2009
What Does Money Mean To You?
What Does Money mean To You?
Hello, and welcome to Making Finance Work.
Please excuse the obvious, but the chances are you are looking to make more money than you currently earn. You are looking to supplement, enhance, and multiply your current earnings beyond your wildest dreams aren’t you? Do you want all the trappings that wealth affords?
Yeah, me too. I want a big house, nice car, a couple of holiday homes and a yacht and an ice cream factory and an indoor arena. Ooh and a university faculty named after me.
We have already looked at budgeting to some extent and I know it may sound like a cop-out but if you have budgeted properly, you may have already, effectively earned yourself a little pay rise. But that isn’t good enough is it? Human nature dictates that we constantly want more and more.
Some of us see this as an inherent flaw that we carry around with us; it is often translated as greed. At Making Finance Work, we beg to differ. Our definition of greed is the relentless pursuit of one thing to the detriment of another, who is to say that you are not yearning for money to finance a major philanthropic venture, to pay for medical care, or to give your children the best start in life?
What are your reasons for wanting money?
If you think that copious amounts of money will change your life, you are probably right. If you think it will make it any better or any worse, you are probably wrong. Money just buys “things”. Yes, it lubricates the wheels of your life, but it certainly isn’t your engine. If there is an inherent flaw within, it will not be fixed by money, perhaps only amplified.
Money will not be your guardian angel; it is merely something you can exchange for something else, and perhaps propel you where you want to be. You may or might not like the scenery when you get there.
Neither will money discriminate. There is absolutely no reason as to why you should not or will not receive money. Money has no conscience, or awareness, a certain twenty pound note or dollar bill can one day be used to pay a seedy gambler a certain debt in Reno and find its way paying for a light bulb in a retirement home the next.
Regardless of what you think about money – stop it now. It doesn’t mean a thing, because all it is is a thing. Don’t be emotionally attached to it, give it too much respect or pine for it. Don’t use money as a bandage for a broken soul that thinks money will bring instant gratification to your life. It is you that has created the world around you; the money has only financed certain transactions. People will not love you any more or any less according to what is in your wallet or purse. If you take nothing else from Making Finance Work, please take this message and understanding that money is a thing, it is not a whole new you.
Making Finance Work, will in spite of this, help you to achieve your financial goals and get you where you want to be. I for example, know and understand that a million in the bank will not delay my departure in the world inevitably, and that an absolute mindless addiction to “getting rich” has the potential to destroy relationships and make my general quality of life dull and boring. Equally, I know that having money will help me pay for the essentials and in this capitalist world help me visit places and afford experiences with my friends and family, and I have to work hard for that.
This may sound a bit contradictory, like I have picked and chosen elements of money making that I feel comfortable with, and you know what? I have. I simply live to the principal of making money, sharing that information, but not allowing it to take over my life. I try to be a good person, help people and have places I want to be and things I want to do. But I enjoy it and you must do so to. I don’t let it take over my life, and I certainly know that money is just a thing. This perspective works for me, and hopefully it will work for you too.
So, in summary:
Money isn’t the root of all evil, it is just a thing.
Money does not know who owns it, nor does it care.
Don’t try to justify your reasons too much for your wants and needs. The pursuit of money is your business, but the relentless pursuit at all costs can harm you and others.
Don’t feel guilty for wanting money. Not everyone will agree with the reasons of why you want it, but that makes for a rich difference of opinion, which is what life is all about.
Speak soon
Oliver Jones
Making Finance Work
Hello, and welcome to Making Finance Work.
Please excuse the obvious, but the chances are you are looking to make more money than you currently earn. You are looking to supplement, enhance, and multiply your current earnings beyond your wildest dreams aren’t you? Do you want all the trappings that wealth affords?
Yeah, me too. I want a big house, nice car, a couple of holiday homes and a yacht and an ice cream factory and an indoor arena. Ooh and a university faculty named after me.
We have already looked at budgeting to some extent and I know it may sound like a cop-out but if you have budgeted properly, you may have already, effectively earned yourself a little pay rise. But that isn’t good enough is it? Human nature dictates that we constantly want more and more.
Some of us see this as an inherent flaw that we carry around with us; it is often translated as greed. At Making Finance Work, we beg to differ. Our definition of greed is the relentless pursuit of one thing to the detriment of another, who is to say that you are not yearning for money to finance a major philanthropic venture, to pay for medical care, or to give your children the best start in life?
What are your reasons for wanting money?
If you think that copious amounts of money will change your life, you are probably right. If you think it will make it any better or any worse, you are probably wrong. Money just buys “things”. Yes, it lubricates the wheels of your life, but it certainly isn’t your engine. If there is an inherent flaw within, it will not be fixed by money, perhaps only amplified.
Money will not be your guardian angel; it is merely something you can exchange for something else, and perhaps propel you where you want to be. You may or might not like the scenery when you get there.
Neither will money discriminate. There is absolutely no reason as to why you should not or will not receive money. Money has no conscience, or awareness, a certain twenty pound note or dollar bill can one day be used to pay a seedy gambler a certain debt in Reno and find its way paying for a light bulb in a retirement home the next.
Regardless of what you think about money – stop it now. It doesn’t mean a thing, because all it is is a thing. Don’t be emotionally attached to it, give it too much respect or pine for it. Don’t use money as a bandage for a broken soul that thinks money will bring instant gratification to your life. It is you that has created the world around you; the money has only financed certain transactions. People will not love you any more or any less according to what is in your wallet or purse. If you take nothing else from Making Finance Work, please take this message and understanding that money is a thing, it is not a whole new you.
Making Finance Work, will in spite of this, help you to achieve your financial goals and get you where you want to be. I for example, know and understand that a million in the bank will not delay my departure in the world inevitably, and that an absolute mindless addiction to “getting rich” has the potential to destroy relationships and make my general quality of life dull and boring. Equally, I know that having money will help me pay for the essentials and in this capitalist world help me visit places and afford experiences with my friends and family, and I have to work hard for that.
This may sound a bit contradictory, like I have picked and chosen elements of money making that I feel comfortable with, and you know what? I have. I simply live to the principal of making money, sharing that information, but not allowing it to take over my life. I try to be a good person, help people and have places I want to be and things I want to do. But I enjoy it and you must do so to. I don’t let it take over my life, and I certainly know that money is just a thing. This perspective works for me, and hopefully it will work for you too.
So, in summary:
Money isn’t the root of all evil, it is just a thing.
Money does not know who owns it, nor does it care.
Don’t try to justify your reasons too much for your wants and needs. The pursuit of money is your business, but the relentless pursuit at all costs can harm you and others.
Don’t feel guilty for wanting money. Not everyone will agree with the reasons of why you want it, but that makes for a rich difference of opinion, which is what life is all about.
Speak soon
Oliver Jones
Making Finance Work
Thursday 13 August 2009
Spend Less Than You Earn - And Be Positive About It
Spend less than you earn – and start being positive about it.
Hello, and welcome to Making Finance Work
Sooner or later you will have to go through your budget; you know, work out the income, subtract the outcome and invest the difference. This is where a good number of people become unstuck.
Sticking to a budget can be difficult; something I have recommended for a long time is allowing a contingency, being realistic and understanding that some months you may have an unexpected tyre explosion/last minute holiday/forgotten anniversary that you have to contend with.
Personally I allow 15% for a contingency but you must use what you feel comfortable with as with some investments you may not be able to pull money out of immediately.
Contingency aside, a typical budget must, must, must contain every expenditure that you envisage over the month, year, week or day. As tedious as it may seem, if you discipline yourself, then over the long term you will reap the benefits. In as little as a year you will already be considerably wealthier than you are now.
Every body’s budget will be different of course, but typically will factor:
Mortgage/Rent payments
Car Finance payments
Utility Bills
Mobile Phone bills
Social Occasions/Entertainment
Of course it is beyond the scope of this article to include every crevice and crack that your monthly wage will slip down after you earn it, but the more precise and honest that you are with yourself, the greater the prospect of success for you in the long term. It may shock you to see how much you actually spend in one area. Your car, for example may cost you a monthly finance repayment. But beyond that there is petrol, MOT’s, road tax, tyres, tolls and congestion charges in some areas, insurance and even air fresheners, so budget for this.
As tedious and as boring as it is, a good budget will put you on the path to understanding your spending which will help you realise your financial goals.
If, once you have completed your budget and you realise that your outgoings are more than your incomings, you are in trouble. There is the chance that you may be borrowing more to try and keep your head above water. This is a serious predicament and you should look at getting immediate advice. The Citizen’s Advice Bureau may be able to help, or a debt specialist. Whatever you do, do not pay for any advice or debt restructuring plan. How can spending money help you get out of debt? Do not panic, you can sort this out as long as you take action. As difficult as it is, these things will not disappear. Mortgage and Council Tax payments are the most vital payments to make.
Once you have worked out your budget, the surplus should be used to pay off any debt that isn’t free, i.e. anything that incurs an interest rate. It is up to you if you if you include your mortgage in this, take a look at The Rule Of 72, work out how much extra payments on top of your mortgage will cut it short and decide for yourself.
Working out and calculating a budget may be tedious or even downright boring, but adhering to it and sticking to it can be relatively easy to do. The key to success is being as realistic as possible. If you like having a skinny latte on the way to work, the newspapers delivered or eat out every Tuesday then budget for it. For it are these things that we often don’t budget for, we sometimes seem to look at the larger bills and ignore the smaller purchases. Do not succumb to this.
In fact, you may look at your budget and decide that you do not like what you see; you may wish to remove the newspapers and eat out every other Tuesday. If you decide to do this then make sure the money goes towards reducing a debt or investment, but make sure that it doesn’t depress you or leave you with a feeling of sacrifice. There is differing opinion on whether saving a pound a day or so on a certain little pleasure will help you become richer quicker. Theoretically it probably will, but at what cost? If you are demotivated or depressed at having to live too frugally then this will affect your ability to be positive when working towards your financial goals, but as ever, it is totally up to you.
After a couple of months you will start to see a difference in the way you handle your finances and this is an important step that will become second nature. Understanding your relationship with money and your spending habits allows you to step back and add an element of professionalism and strategy to finance. Observe and control your debt reduction and investment and watch the debt dwindle and investment grow. As you do, get as excited as you wish, you are taking very real and very positive steps here to financial wealth and health.
Speak soon
Oliver Jones
Making Finance Work
Hello, and welcome to Making Finance Work
Sooner or later you will have to go through your budget; you know, work out the income, subtract the outcome and invest the difference. This is where a good number of people become unstuck.
Sticking to a budget can be difficult; something I have recommended for a long time is allowing a contingency, being realistic and understanding that some months you may have an unexpected tyre explosion/last minute holiday/forgotten anniversary that you have to contend with.
Personally I allow 15% for a contingency but you must use what you feel comfortable with as with some investments you may not be able to pull money out of immediately.
Contingency aside, a typical budget must, must, must contain every expenditure that you envisage over the month, year, week or day. As tedious as it may seem, if you discipline yourself, then over the long term you will reap the benefits. In as little as a year you will already be considerably wealthier than you are now.
Every body’s budget will be different of course, but typically will factor:
Mortgage/Rent payments
Car Finance payments
Utility Bills
Mobile Phone bills
Social Occasions/Entertainment
Of course it is beyond the scope of this article to include every crevice and crack that your monthly wage will slip down after you earn it, but the more precise and honest that you are with yourself, the greater the prospect of success for you in the long term. It may shock you to see how much you actually spend in one area. Your car, for example may cost you a monthly finance repayment. But beyond that there is petrol, MOT’s, road tax, tyres, tolls and congestion charges in some areas, insurance and even air fresheners, so budget for this.
As tedious and as boring as it is, a good budget will put you on the path to understanding your spending which will help you realise your financial goals.
If, once you have completed your budget and you realise that your outgoings are more than your incomings, you are in trouble. There is the chance that you may be borrowing more to try and keep your head above water. This is a serious predicament and you should look at getting immediate advice. The Citizen’s Advice Bureau may be able to help, or a debt specialist. Whatever you do, do not pay for any advice or debt restructuring plan. How can spending money help you get out of debt? Do not panic, you can sort this out as long as you take action. As difficult as it is, these things will not disappear. Mortgage and Council Tax payments are the most vital payments to make.
Once you have worked out your budget, the surplus should be used to pay off any debt that isn’t free, i.e. anything that incurs an interest rate. It is up to you if you if you include your mortgage in this, take a look at The Rule Of 72, work out how much extra payments on top of your mortgage will cut it short and decide for yourself.
Working out and calculating a budget may be tedious or even downright boring, but adhering to it and sticking to it can be relatively easy to do. The key to success is being as realistic as possible. If you like having a skinny latte on the way to work, the newspapers delivered or eat out every Tuesday then budget for it. For it are these things that we often don’t budget for, we sometimes seem to look at the larger bills and ignore the smaller purchases. Do not succumb to this.
In fact, you may look at your budget and decide that you do not like what you see; you may wish to remove the newspapers and eat out every other Tuesday. If you decide to do this then make sure the money goes towards reducing a debt or investment, but make sure that it doesn’t depress you or leave you with a feeling of sacrifice. There is differing opinion on whether saving a pound a day or so on a certain little pleasure will help you become richer quicker. Theoretically it probably will, but at what cost? If you are demotivated or depressed at having to live too frugally then this will affect your ability to be positive when working towards your financial goals, but as ever, it is totally up to you.
After a couple of months you will start to see a difference in the way you handle your finances and this is an important step that will become second nature. Understanding your relationship with money and your spending habits allows you to step back and add an element of professionalism and strategy to finance. Observe and control your debt reduction and investment and watch the debt dwindle and investment grow. As you do, get as excited as you wish, you are taking very real and very positive steps here to financial wealth and health.
Speak soon
Oliver Jones
Making Finance Work
So How Are You Going To Make Finance Work?
So how are you going to make your finance work?
Hello and welcome to Making Finance Work.
This particular piece is fairly lengthy, but I hope to make it as digestible and as readable for you as possible. There are lots of avenues to cover, but before we do, I think I should offer a few home truths.
Firstly, there is no magic formula in the upcoming text. No Peasant to Private jet instantaneous riches that are hand delivered by a cash fairy one morning. The methods to financial freedom that we concentrate on at this site are the basic fundamentals of:
Commerce
Dividend
Investment
Commerce is your business, or put better; the business of being you. It may be your multi million empire; it may be your e-bay business, online venture or your current job. You may not be the boss within your organisation; you may even be unemployed and not have a penny to your name. But you have you.
You are the dot com domain name; you are the sales team and marketing manager. You are the CEO. Your business may not be trading yet, or it very may well be verging on the brink of bankruptcy so you must learn how to steer the business of you to success and reap the financial rewards. We will be doing this together, right here at Making Finance Work.
The Dividend is the payment you will receive for the successful running of your business. It is your salary at the end of the month for cleaning those cars, being a keynote speaker, shining shoes or running the country.
The Investment is where you will place your dividends after you have earned them. To digress for a moment, it is now perhaps a beneficial time to explain dividends that are paid to shareholders that own a stock in a particular company.
You may recall our conversation about Disney NYSE DIS. As mentioned, the long term hold in Disney has been worthwhile, but also of importance is that Disney pays a dividend. Disney pays it twice a year, at the current time of writing the dividend is 35 cents per share. So if you own 10 shares of Disney, you will be paid $3.50. This is on top of share price increases, and a good stock will also increase its dividend on a yearly basis. So effectively once you have purchased a good stock that pays a dividend, you will be paid merely as a “thank you” to investors.
It gets better.
Take a company such as Pengrowth Energy Trust NYSE: PGH. Pengrowth pays $1.10 per share in a way of dividend every year.
And guess what? The share price is only around $8, compared to Disney’s $15 or so (at time of publication). So you get more bang for your buck.
$1000 spent on Disney Shares gives you 66 shares X dividend of 0.35 = $23 per year
$1000 spent on Pengrowth Energy Trust shares gives you 125 shares X dividend of $1.10 = $137.50 per year.
You see the difference.
You must remember however that there is much, much more to a company that pays a dividend and the yield returned to you. There are so many fundamentals to a company that have to be reviewed before you commit to buying shares or a piece of that company. We will deal with this at a later date.
So back to the original point of the dividend that you receive; you should reinvest this back into your commerce. Your money will then compound, and build a nice sum for you.
The commerce pays the dividend that pays for the investment that goes back to the investment.
I hope that this makes sense for you and once you grasp the concept you really will be able to make finance work.
Next time we will be looking at the all important how do I make my commerce work? How you can really make money with the business of you.
Speak soon
Oliver Jones
Making Finance Work
Hello and welcome to Making Finance Work.
This particular piece is fairly lengthy, but I hope to make it as digestible and as readable for you as possible. There are lots of avenues to cover, but before we do, I think I should offer a few home truths.
Firstly, there is no magic formula in the upcoming text. No Peasant to Private jet instantaneous riches that are hand delivered by a cash fairy one morning. The methods to financial freedom that we concentrate on at this site are the basic fundamentals of:
Commerce
Dividend
Investment
Commerce is your business, or put better; the business of being you. It may be your multi million empire; it may be your e-bay business, online venture or your current job. You may not be the boss within your organisation; you may even be unemployed and not have a penny to your name. But you have you.
You are the dot com domain name; you are the sales team and marketing manager. You are the CEO. Your business may not be trading yet, or it very may well be verging on the brink of bankruptcy so you must learn how to steer the business of you to success and reap the financial rewards. We will be doing this together, right here at Making Finance Work.
The Dividend is the payment you will receive for the successful running of your business. It is your salary at the end of the month for cleaning those cars, being a keynote speaker, shining shoes or running the country.
The Investment is where you will place your dividends after you have earned them. To digress for a moment, it is now perhaps a beneficial time to explain dividends that are paid to shareholders that own a stock in a particular company.
You may recall our conversation about Disney NYSE DIS. As mentioned, the long term hold in Disney has been worthwhile, but also of importance is that Disney pays a dividend. Disney pays it twice a year, at the current time of writing the dividend is 35 cents per share. So if you own 10 shares of Disney, you will be paid $3.50. This is on top of share price increases, and a good stock will also increase its dividend on a yearly basis. So effectively once you have purchased a good stock that pays a dividend, you will be paid merely as a “thank you” to investors.
It gets better.
Take a company such as Pengrowth Energy Trust NYSE: PGH. Pengrowth pays $1.10 per share in a way of dividend every year.
And guess what? The share price is only around $8, compared to Disney’s $15 or so (at time of publication). So you get more bang for your buck.
$1000 spent on Disney Shares gives you 66 shares X dividend of 0.35 = $23 per year
$1000 spent on Pengrowth Energy Trust shares gives you 125 shares X dividend of $1.10 = $137.50 per year.
You see the difference.
You must remember however that there is much, much more to a company that pays a dividend and the yield returned to you. There are so many fundamentals to a company that have to be reviewed before you commit to buying shares or a piece of that company. We will deal with this at a later date.
So back to the original point of the dividend that you receive; you should reinvest this back into your commerce. Your money will then compound, and build a nice sum for you.
The commerce pays the dividend that pays for the investment that goes back to the investment.
I hope that this makes sense for you and once you grasp the concept you really will be able to make finance work.
Next time we will be looking at the all important how do I make my commerce work? How you can really make money with the business of you.
Speak soon
Oliver Jones
Making Finance Work
Wednesday 12 August 2009
Two Very Important Things That Need Reiterating - Part Two
Two Very Important Things That Need Reiterating – Part Two
Hello and welcome to the Making Finance Work blog.
Last time we talked about the importance of not gambling with stocks and shares, but investing in them. Today I would like to once again harp on about the importance of time.
Buying and holding is pretty boring. You get a share, keep a share and hopefully watch it grow for a very long time. I know you are impatient, aren’t we all? There is no get rich quick!
Can you rely upon inheritance, winning the lottery or selling out an amazing invention or idea? Probably not.
Do not waste your time chasing get rich quick schemes. Avoid them like the plague. If somebody was making so much money from a particular online venture would they share it with you? No, but they will sell it to you and let you continue to try to plug it for them, meanwhile every day you are in turmoil at the prospect of having to go out and replicate the sale, three times to make your money back! Do not fall for it!
That is all very well you say, but I need to make money so that I can invest that money and get that sweet compound interest. How do I do that?
Good question.
“Money will come, when you are doing the right thing”
Mike Phillips
We will look at that next time. But for now, remember that patience is the key factor.
Speak Soon,
Oliver Jones
Making Finance Work
Hello and welcome to the Making Finance Work blog.
Last time we talked about the importance of not gambling with stocks and shares, but investing in them. Today I would like to once again harp on about the importance of time.
Buying and holding is pretty boring. You get a share, keep a share and hopefully watch it grow for a very long time. I know you are impatient, aren’t we all? There is no get rich quick!
Can you rely upon inheritance, winning the lottery or selling out an amazing invention or idea? Probably not.
Do not waste your time chasing get rich quick schemes. Avoid them like the plague. If somebody was making so much money from a particular online venture would they share it with you? No, but they will sell it to you and let you continue to try to plug it for them, meanwhile every day you are in turmoil at the prospect of having to go out and replicate the sale, three times to make your money back! Do not fall for it!
That is all very well you say, but I need to make money so that I can invest that money and get that sweet compound interest. How do I do that?
Good question.
“Money will come, when you are doing the right thing”
Mike Phillips
We will look at that next time. But for now, remember that patience is the key factor.
Speak Soon,
Oliver Jones
Making Finance Work
Two Very Important Points That Need Reiterating - Part One
Two very important points that need reiterating – Part One
Hello, and welcome to Making Finance Work.
This is part one of a two part reiteration process that needs to be drummed into your head before you can get rich.We do not go in to the stock market to gamble, and if you think we do, you are quite simply wrong.
Investors have gotten into so many arguments over the years, having to defend their positive income stream against a tirade of people who simply do not understand how stocks and shares work.
Let us take a company that we are all familiar with – Disney. (NYSE: DIS)In July 1963, a share in Disney would cost you ten cents.
Let us say that you bought 100, spending $10.On January 3rd 2000 you would have $158,400, so… Well done there. If 40 years is too long for you, I suggest you read the rules or go else where. 40 Years will be here regardless, where will you be?
The above scenario is an investment strategy – buy and hold. Warren Buffett’s preferred method of riches accumulation. It takes time, but a good company with good fundamentals will propel towards the sky taking you, as an investor along the way; a good company will lavish you with dividends in the process.
Being able to understand a business and the fundamentals of that business will help you pick a good stock. Once you have bought it hang on to it for as long as possible, but whatever you do, don’t gamble it.
Disney didn’t just rise and rise every single day – the price of the stock fluctuates daily.
On October 2nd 1972 Disney’s stock price was $2.46. It would then not see that price until October 1985 – 13 years later!Can you imagine gambling on that? I mean purchasing at that price on Oct 2nd, hoping it would rise the next day? The pain!The pain comes from the gamble.
Avoid gambling at all costs.
Only invest money in the stock market that you intend to leave in the stock market. Make a budget and stick to it, the rest can go in a stocks and shares ISA that you promise not to touch until you are ready to retire. And do not invest until you have eradicated debt.
Don’t day trade on the markets. Nobody knows what they are going to do in the short term – only in the long term. The younger you are, the longer you have to stay invested and the richer you will be, because the general direction is up.Disney could have gone bust. Many companies do, which is why it is important to diversify your stock portfolio. I have holdings in oil, retail, entertainment, finance, and yes, I do own 10 shares in Disney.
Speak Soon,
Oliver Jones
Making Finance Work
Hello, and welcome to Making Finance Work.
This is part one of a two part reiteration process that needs to be drummed into your head before you can get rich.We do not go in to the stock market to gamble, and if you think we do, you are quite simply wrong.
Investors have gotten into so many arguments over the years, having to defend their positive income stream against a tirade of people who simply do not understand how stocks and shares work.
Let us take a company that we are all familiar with – Disney. (NYSE: DIS)In July 1963, a share in Disney would cost you ten cents.
Let us say that you bought 100, spending $10.On January 3rd 2000 you would have $158,400, so… Well done there. If 40 years is too long for you, I suggest you read the rules or go else where. 40 Years will be here regardless, where will you be?
The above scenario is an investment strategy – buy and hold. Warren Buffett’s preferred method of riches accumulation. It takes time, but a good company with good fundamentals will propel towards the sky taking you, as an investor along the way; a good company will lavish you with dividends in the process.
Being able to understand a business and the fundamentals of that business will help you pick a good stock. Once you have bought it hang on to it for as long as possible, but whatever you do, don’t gamble it.
Disney didn’t just rise and rise every single day – the price of the stock fluctuates daily.
On October 2nd 1972 Disney’s stock price was $2.46. It would then not see that price until October 1985 – 13 years later!Can you imagine gambling on that? I mean purchasing at that price on Oct 2nd, hoping it would rise the next day? The pain!The pain comes from the gamble.
Avoid gambling at all costs.
Only invest money in the stock market that you intend to leave in the stock market. Make a budget and stick to it, the rest can go in a stocks and shares ISA that you promise not to touch until you are ready to retire. And do not invest until you have eradicated debt.
Don’t day trade on the markets. Nobody knows what they are going to do in the short term – only in the long term. The younger you are, the longer you have to stay invested and the richer you will be, because the general direction is up.Disney could have gone bust. Many companies do, which is why it is important to diversify your stock portfolio. I have holdings in oil, retail, entertainment, finance, and yes, I do own 10 shares in Disney.
Speak Soon,
Oliver Jones
Making Finance Work
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