Reading through several of the blogs that have inspired me to document my own journey, I've begun to notice a trend. Both J-Money of BudgetsAreSexy.com and Jason from DividendMantra.com actively track their networth. This is intriguing and does serve a valuable purpose, thus I've decided to begin implementing this as well in my tracking. Of course at this present stage in my life, my networth is negative. :P So not exactly the most attractive figures to share, but I'm excited to continue rolling those negatives back. Last year was primarily spent getting on my feet financially. This year is primarily aimed at destroying the bulk of my high interest credit card debt.
While reading through J. Money's blog, I found a nifty investing app that he is reviewing. The name of this app is Acorns, as you might have surmised from the title of this post. The idea is to make investing in a highly diversified portfolio of investments accessible to everyday folks who are curious about investing but don't have the lump sums necessary to do so (that would be me). So how exactly does this work?
Dun! Dun! Dun! Another one bites the dust!!! Today I had the extreme pleasure of completely annihilating one of my Lines of Credit. I was forced to draw on it a year and a half ago when my current employment failed to provide enough income to sustain me. Today, I have finally completely repaid the entire balance, unexpectedly realizing that I had enough to do so if I accessed my Short Term Savings account.
Ok so I left you all hanging with my initial post about my impending plans for options. Quick recap, the plan is to purchase stocks that I have researched and determined that I would like to acquire via the sale of cash secured put options. Essentially, this means I simply put the cash to buy the stocks at the strike price indicated by the put option I sell minus the premium I receive from the sale of the option. Clear as mud? So what exactly did I do and how did my experiments with these cash secured puts work out thus far?
Options. This word seems to evoke fear and revulsion among the investors I personally know (not so many) and is apparently the opposite type of investment that any truly conservative investor would utilize from what I've read through other blogs or inferred from the complete lack of coverage. I've been studying them in depth over the past month, familiarizing myself with their vocabulary (for example who knew you could be long and short at the same time??) and attempting to wrap my head around what makes them so great? Are options really that dangerous for investors?
I am finally getting my April budget sorted out somewhat. This month has mostly been a work in progress. I am attempting to designate money for specific roles and tasks in general, but mostly I just have it set up so that I automatically save $400 a month from my paychecks and then the rest of the bills get paid out automatically. I restructured my savings however for the purpose of capitalizing on some investment opportunities. I found a decent buy that I would like to acquire if the price drops a bit more, but more of that later. April's budget (now that we are half way into the month looks like this.
Lately I have been both struggling to figure out taxes (as an independent contractor for my day job they are more complicated than the typical tax return for the average joe). This is my first year having to deal with increased tax complexity. I can't say that I enjoy it that much.
Interestingly, I am currently listening to a book entitled, "The Darwin Economy" by Robert H. Frank. His predominant theme throughout has been on the necessity of taxes for the continual operation of society. I guess he has a valid point. My taxes are technically paying for my usage of the public facilities here in U.S. This is a topic that I have, of course realized to some