Do your due diligence and research BEFORE you invest.  Everyone should be investing their money into something.  It’s the only way your money can both be saved and start working for you.  If you look at the top 400 richest people in the world, none of them are working for someone.  They’re investing into something.  There are really only 3 ways they all made their money.  It was either in investments, real estate or owning their own business.  (There is a 4th but it is inheritance.)  Becoming a great investor means learning and gaining an understanding in all areas.  The better you are at investing in real estate, the better you will become at investing in businesses and stocks.  The better you are at investing in businesses, the better you become at investing in stocks and real estate.  It all becomes interconnected.  It is like a monopoly game come to life.

Buy Low Sell High

Ever hear the saying “BUY LOW, SELL HIGH”?  Guess what people---the stock market is pretty low right now.  This is a great time to buy!  Most people are scared to invest when the market is going down.  Most people will buy stocks when it’s going up and then it’s too late.  I believe the stock market will be down for awhile now so you don’t have to jump into it and start buying anything.  Still take your time and study and learn about the company and its financials.

Dollar Cost Average

One of the best concepts to grasp in investing is Dollar Cost Average.  Dollar Cost Average is putting a certain amount of money into a particular investment on a regularly scheduled basis.  For example, a 401k is known to do this every month when your money is taken out of your paycheck.  The investment that you’re making each month as your money is getting invested will determine the amount you buy.  So if the price is higher you buy less shares, when the price is lower you buy more shares.

Return on your investment (ROI)

Return on your investment or ROI is a term everyone should know about before they get into investing into anything.  This word ranks high in my financial vocabulary and I use this on all and I mean all of my investments.

Calculated as: Gain from Investment/Cost of Investment

In general, if you buy a stock and invest an initial amount of $1000.00 and over a year’s time your investment goes up to $1200.00 that means you made $200.00 on your $1000.00 investment.  In one year, it went up 20%.  Now… if you made the $200.00 over a 2-year period then you would then take the 20% and divide that by 2 to get a 10% return on your investment over the 2-year span.

The higher the ROI, the more money you will make.  An annual percent of 10% to 20% is really good.

Cash on Cash return

Cash on Cash Return the phrase of all phrases. I use this term all the time also for my investments.  This term refers to the relationship between cash that you put into the investment and how long will it take to get cash back into your pocket.

Let’s take the example from before you invest $1000.00 and your return every year is $200.00.  It will take you 5 years to get your cash back that you initially started with ($200.00 x 5 = $1000.00) So your money will be tied up for a full 5 years into that investment before you get a cash on cash return.

The faster you get your initial cash investment back the richer you become.

Price-Earnings Ratio

The term P/E Ratio stands for Price-Earnings Ratio which means a valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:
Market Value per Share/Earnings per Share (EPS)

For example, a company's market value share is selling for 10.75 and their earnings per share is 1.37 its P/E Ratio is 7.85.

In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.  However, the P/E ratio doesn't tell us the whole story by itself.  It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has widely different growth prospects.


Diversification is something else to keep in mind.  What this means is not keeping all your eggs in one basket.  Have an investment portfolio with stocks and real estate.  So if one is down maybe the other will be up in value so you’re leveraging your money to minimize losses and maximize gains.

If you only have a stock portfolio then don’t just have growth stocks. Have some mutual funds in there also.


This is a form of risk management. Insurance protects you from having a big financial loss.


Real gold coins can be regarded as a form of investment diversification or as an insurance policy against hyper-inflation. They are not a short-term investment.

gold coins

Compound Interest Chart

Use this chart to see if you are able to save a certain amount of money a day and invest it to get the 8% or 15% return on your money.  Basically it helps you calculate how long it would take you to become a millionaire.

Click here for a Compound Interest Chart



A stock is ownership of a company. The more stock you own the more of the company you own. Stocks are good for bigger returns on your investment but on the flip side could be more riskier.

Mutual Funds

A mutual fund is a group of stocks put together. There is a money manager for each fund out there that will manage the fund for you. There is less risk on mutual funds.

stock market investments


A bond is basically a loan to a company.  You would give money to a company say General Electric and they would basically give you your money back over time with interest added to the original loan amount.  Bonds will have different terms and conditions.  Bonds are generally more for people getting ready to retire or are in retirement.  Bonds are a safer investment.


ETF stands for Exchange-traded fund.  Basically an ETF is a index fund (similar to a mutual fund) and it is traded on the stock market.


An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments.  In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date.  Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount, such as your total purchase payments.


The word DRIP stands for Dividend Reinvestment Plan.  This idea of investing is good for people that have little money to start investing.  A DRIP is bought directly through the company so you do not need to have a broker to buy these for you.  Not all companies offer DRIP investing.

Dollar Cost Average

One of the best words in investing. Dollar cost average is putting a certain amount of money into a particular investment on a regular schedule basis. For example a 401k is known to do this every month when your money is taken out of your paycheck. The investment that you’re buying each month as your money is getting invested will determine the amount you buy. So if the price is higher you buy less shares when the price is lower you buy more shares.

Money Markets

A money market account is a type of savings account offered by banks and credit unions just like regular savings accounts. The difference is that they usually pay higher interest, have higher minimum balance requirements (sometimes $1000-$2500), and only allow a certain amount of withdrawals per month.


You can learn more about options at these 2 sites: and

Online Investing

Online investing is taking the stock broker out of picture and you are doing all the buying and selling. Buying stocks through an online brokerage is a lot cheaper. To name a few online brokerages: E*TRADE, Ameritrade, Scottrade etc.

Stock broker

A stock broker is a regulated professional who can buy and sell shares and other securities through the stock market. A stock broker will work for a stock brokerage firm such as Merrill Lynch, Charles Schwab or Edward Jones etc.

Financial Advisor

A financial advisor is a professional who offers investment advice and financial planning for individuals and businesses. I’m here to offer my service just contact me


Everyone should have a checking account for there normal everyday bills and a MUST have is a savings account or money market account and in there should be at least 6-8 months of living saved up in case of an emergency.

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