Posted in Pursuit of Excellence

April 12, 2017

Items in italics are direct quotes from the articles below

http://www.investopedia.com/university/peratio/

Investors often want to compare how the share price of one company compares to that of another. But just looking at the stock price is like comparing apples to oranges since companies have different numbers of shares outstanding, and even if they had the same share float, companies operate in different industry segments or are at different stages in the corporate life cycle. Fortunately, financial analysts have developed a number of tools for such purposes of comparison. The price-to-earnings ratio, or P/E, the most widely used metric. Although it is quite a simple indicator to calculate, the P/E can be difficult to interpret. It can be extremely informative in some situations, while at other times it is difficult to parse. As a result, investors often misuse this ratio and place more evaluative power in the P/E than is sometimes warranted. This ratio measures the company’s stock vs its earnings, which can be measured against other companies. As a basic rule of thumb, a high P/E means the stock price is high compared to earnings which means the company is overvalued and the opposite is true. The link above is an introduction into an in-depth look at the P/E ratio and if you’re interested in learning about how to calculate it and how to and how not to use it in stock price analysis then please follow the link at the bottom of the article. For the sake of brevity, I included just the introduction.

http://www.investopedia.com/university/become-your-own-financial-advisor/

“If you don’t know where you are going, you might wind up someplace else.” – Yogi Berra If you build a house without a plan, what sort of results would you expect? Theoretically, you could get lucky and end up with the house of your dreams. What’s more likely, however, is that the house wouldn’t be anything like what you had wanted. You might need to move the doors and windows, build new walls and take down others – or worse. Investing isn’t any different. Without a plan, you could (again, theoretically) get lucky, but the odds are against it. Without goals – and a well-thought-out plan for meeting those goals – you probably won’t end up where you want to be financially, in either the short- or long-term. You have to make goals to meet goals. Historically investors have tried to beat the market or tried to get the highest rate of return possible. A new approach is goal based investing. This type of investing involves achieving certain life events such as saving for your retirement or buying your first house. The theory is that:

  • Setting goals makes it more likely that you’ll save for – and achieve – every goal.
  • You’ll be more motivated to reach a goal since you can gauge its progress.
  • You can consider the time horizon and risk level separately for each goal, and invest accordingly

Most people work with financial advisors to help achieve their financial goals, but the author advocates that you can be your own financial advisor if you are willing to put in the time and work. Due to the content of this article, I suggest you read the article in its entirety, and I’ve included some more content from the article:

Next, arrange your goals by the time horizon for achieving them:

Short-Term Goals Mid-Term Goals Long-Term Goals
Pay for a wedding Buy a vacation home Build a nest egg for retirement
Take a vacation Have the funds to start a new business Income stream for retirement
Save a down payment for a home Leave a financial legacy to your family
Save for your children’s education

Rather than just doing all this in your head – write it down. Putting your goals on paper makes them more “real” and you’ll be more likely to think about them. Plus, you can share your goals with your spouse, family or friends – which can give you a little motivational push.

The next step is to attach a dollar figure to each goal. With some goals, it’s easy to say how much you’ll need: for example, you plan on giving your daughter $5,000 (and no more!) to help pay for her wedding, or you want to save $10,000 for a trip to Antarctica. With other goals, it’s a bit trickier to nail down a specific amount, so you’ll have to spend some time crunching the numbers. There are lots of online calculators that can help – just search for the type of calculator you need, such as “retirement calculator” or “college savings calculator” to get started.

Once you have a list of goals and financial objectives for each, it’s easier to plan, budget and choose the right investments. In the next chapter, we’ll look at different retirement and tax-advantaged accounts you can use to meet your goals.

Like anything in life, if you want to become an expert at something, you need to practice your skill and learn from others better than you. Personally, I wouldn’t call myself a financial expert. I’m someone that cares about the financial health of myself and others and I share what I know in the hopes for a better future generation. What is your why?

If you need are interested in creating a budget, then contact me for a financial checkup in the contact me section. Also, learn more about the self-lending principle in the mustard seed section.

For this week, I’ve included FIRE WITHIN – Motivational Speech On Success from Motivation Archive YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs
28:26 MSG‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Posted in Debt Free Me

Month End: March Snapshot


This month I began creating and implementing a system in my new role. I’m enjoying this role, because it’s taking the existing skills that I have, improving on those skills, and learning new skills all for fulfilling the vision of my workplace in 2017. This new role is also enjoyable because I must be creative. I honestly don’t know if I could be able to handle this pace of life if it wasn’t for the help of the Lord and my darling wife. I’m very thankful that when I come home at night, I have a meal ready to eat. I’m going to work early and leaving late at night. I remember a time when it was a struggle for me to get to work on time, whereas now I really have no choice due to where I live and the commute I must take to get to work. It’s a longer commute time, which some would think of as uncomfortable, but I look at it as an opportunity to improve on a work habit. The extra time I have early in the morning allows me to prepare my mind mentally for the day, and staying late, allows me to finish what I need to finish or just relax my mind to close the day.

It’s important to take every storm as an opportunity to look for and seek the end of the storm. The truth is every storm has an end, and that there is a plan and a purpose in every storm. Next month, I’m going to use a balance transfer to assist in covering living expenses. My wife has decided to take her licensing test next month vs. this month, and I completely encouraged her to do it. I’d rather she be comfortable and pass the test the first time, rather than run the risk of failing it. We’re also pursuing in applying for a personal line of credit for her to assist in consolidating her debt. It’s important to get credit when you don’t need it, because if you try to get it when you do need it, then it may be too late. Use the lower interest rate payments to save money and payoff consumer debt faster. One of my associates in my organization sold one of his first combined policies, and I’m very excited at his level of enthusiasm, and look forward to helping him achieve his goals. My goal for the year is to become a better communicator and so far, I’ve been face with numerous opportunities to develop this skill.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy28:12NLT‬‬
http://bible.com/116/deu.28.12.nlt
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I believe in your journey to….

A Debt Free Me

Here’s this month’s video: Be Powerful –motivational speech video – T.D. Jakes from the Motiversity YouTube channel.

Posted in Debt Free Me

Month End: February Snapshot

This month I celebrated my first full month living with my wife. We were fortunate enough to go to the marriage conference together at the last minute, and I was thankful that we did. Our apartment is starting to look like a home, and my wife has begun studying to take her test to be licensed as a registered nurse. This month especially is filled not just with numbers and budgeting but faith also. Faith in things not yet seen and having the will to continue to do a good work regardless of the outcome. I have the opportunity for a new position at my job and having to rely on something greater than myself to handle these new responsibilities. Either way when I get paid my process remains the same and I look to use my self-lending principle whenever I can.

I’m looking to sell as many plans as possible not just to reduce debt, but to also help protect people. My thought process remains the same: increase income, and lower expenses, look for income producing assets, and build wealth to leave a legacy. Over the next few months you should see my debt reduce significantly. My wife and I have talked about using a consolidation loan to consolidate and reduce the payments on my two installment loans which should free up more cash flow. The only drawback of an installment or term loan is the payments are set for the term of the loan unless you can convince the loan officer to re-amortize the debt.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy 28:12 NLT‬‬


http://bible.com/116/deu.28.12.nlt

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: Retrain your Mind from the Be Inspired YouTube channel

Posted in Debt Free Me

Vision 2016: Grow in three areas

For 2016, I’ve discussed with my fiancée to grow in three areas. The last time I got out of debt, I was so focused on debt that I forgot two valuable factors: lost time and missed opportunity. I didn’t save while I was getting out of debt, nor did I look for opportunities to create passive income producing assets.

This time, I trust is going to be different, because of two important people in my life: my God and my future wife. All of this current I owe to Him and her being a part of my life. It’s a truth I’m thankful for more and more every day. I encourage you to save what money you can save and look for income producing assets too. If you don’t build a strong foundation during the storms of life, then you won’t be prepared when the storms do hit. Here’s are three areas we’re focusing on:

  1. Bless others
  2. Invest money into passive income generating assets
  3. Pay down consumer debt

In the next posts, I’ll explain the process I’m using as I’m journeying to a debt free me. If you have any questions, or need a financial check-up, contact me.

Where there is no vision, the people perish:
but he that keepeth the law, happy is he. Proverbs 29:18 Authorized (King James) Version (AKJV)

I believe in your journey to….

A Debt Free Me