Life is full of change.

Change Can Be On A Grand Scale

This happened to me when I planned on being a hugely successful career-woman, but ended up turning to mush when my oldest child was born.  Once I held my son for the first time, work didn’t matter anymore.  I just wanted to spend time with him, and not with a computer.  It took some time, but we eventually saved enough money so that we could live off of just one income and I could stay home with the kids.  When I was a student, I would have never predicted that I would eventually become a stay-at-home mom, but that is exactly what I was for many years.  (I now just work part time from home.)  I now just look back at my ‘evolution’ and just laugh.    I am grateful I am a parent for many reasons, but one thing that is interesting is that I got to see a side of me that I didn’t even know existed.

Change Can Also Be On A Small Scale

An example of this is my current mindset with saving and spending.

Life has been crazy this year for a variety of reasons.  Things I used to worry about like saving the absolute most I could at the grocery store have slid way to the bottom of my list of concerns.  Instead, I just want my family to eat.  We have eaten out way too much this year, but it was almost a matter of necessity.  Things have settled down, but my need to scrimp and save as much as I can at the store has decreased dramatically.  Instead, I am more focused on buying the foods I want my family to eat, even if the items are not on sale.  Yes, putting full-price things in the grocery cart still makes me cringe somewhat, but my attitude toward money has relaxed a little.

Overall, I am still a very frugal person at heart, and I can almost guarantee that I will rarely spend full price on clothes or most other items, unless I am completely desperate.  (Like I probably will be when I need to find a dress for my son’s graduation.)   Even though I am spending a little more at the grocery store, buying full priced food at the grocery is still probably cheaper and healthier than if our family of five ate out.  (That is the justification I use when shopping now.)

The Overall Lesson

Sometimes, you just gotta go with the flow.    If you can no longer keep up with what you were doing previously, don’t beat yourself up about it.  Life is busy and isn’t always easy, and sometimes, you just have to do what you can to get by.  Don’t make things harder by being frustrated or disappointed in yourself.  Do the best you can and move on!

The following is a guest post from Jenna at Adaptu.com:

Money looks a little different in the summer.  Between day camps and extra trips to the ice cream truck, your budget is probably going to vary a little from the September-May routine.  Taking time to create a budget specifically designed for summer can save you big once the final school bell rings.

Step 1: What’s going to stay the same?

Make creating a budget easier by first determining which of your monthly expenses will not be affected by summer vacation.  For example, your mortgage payment won’t go down just because your kids are at camp.

Step 2: Determine the budget busters

Between prime vacation season and special outings to the water park, it’s no surprise that many families see their entertainment spending increase significantly in the summertime.  Get a good calendar thrown together before you start allocating money to your entertainment budget.

Hint: While the amusement park is always fun, it’s also expensive.  Summer is filled with low-cost or free activities.  Picnics, free days at the zoo or museum, theater in the park—start your event calendar by looking at what will cost you nothing.  (From Kris:  my expenses go way up in the summer for the very reasons mentioned above.  Buying annual passes to places you may go to frequently can say you a lot of money.  For example, if I buy an annual pass at the zoo, it covers admission all year along with free parking.)

Another area where you should prepare your budget?  Transportation. Especially gas. Chances are you’ll be shuttling kids to and from camps, the beach and friends’ houses a lot more than you were in the spring.  Combine all that time in the car with rising gas prices, and you’re budget is bound to feel a little squeezed if you don’t plan ahead.

Hint: Carpool.

Step 3: Seek summer savings

Not everything costs you more between June and August.  If you pay for your child to eat lunch at school every day, you’re most likely paying a premium.  Making that same PB&J at home will save you a pretty penny.  And, if your kids go to sleep away camp — your grocery bill is sure to shrink (even more if you have teenagers).

Hint: On top of automatic summer savings, take advantage of farmers markets where you can get fresh food often times at a fraction of grocery stores.

Remember, while your cable bill may be constant, not all utilities are created equal.  If you don’t consider AC a necessity, be comfortable cutting back on your utility budget.

Hint: There are lots of ways to cut back on cooling costs. Apply coating to your windows to keep heat out, close blinds when you’re not at home, and use fans before turning on the AC.

Step 4: Set your budget and breathe easy

As the warm weather starts coming in, take some time to update your budget accordingly.  Utilize online tools like Adaptu to keep your budget updated automatically.  Make sure you check in to see how you’re doing, but don’t forget that it’s summer — take time to relax and have fun.

Hint: Once you have mapped out your budget for the summer, make sure you will have a positive cash flow.  That is, make sure you are making more money than you are spending.  Once you know you’re saving enough money, go enjoy summer!

Recently, I wrote about the house in my neighborhood that was on the market as a ‘short sale’, and shared my frustration that people who can fully afford their mortgage payments are allowed to just abandon their homes.

When I wrote about this house previously, it had originally been offered ‘for sale’ normally at $299,000.  Over the course of  less than 6 months, it became a bank owned property and the price had dropped to $238,000.  Shortly after that, the house did indeed sell, but for $208,000.

I recognize that most of you do not know where I live or have an understanding of housing prices in my area, but a 2800 square foot house in a city with an excellent school district selling for $208,000 is an incredible bargain (for the buyer). Of course, this sale will kill the comparables in our neighborhood, and my home’s assessment did go down dramatically.  I have no way of knowing how much this short sale affected my assessment, but I assume it had at least some impact.  Since we are not moving anytime soon, it only helps my tax situation.  However, for those that plan on moving, this house being sold at such a bargain-basement price can not be good news.

For Some, A Great Deal Is Still Not Enough

The other day, our new neighbor was outside doing some yard work.  Thankfully, they have been spending a lot of time fixing up the inside of the house, and they are now tackling the outside.  The house never had much curb appeal even when it was occupied, but after sitting all those months, the outside of the house is a mess.

While talking with the new homeowner, he was very frustrated- he was almost disgusted with the state of the yard.  I empathized with the guy, but then I thought “well what did these new homeowners expect?”.  This house was purchased at such a low price because it needed work inside and looked rather unkempt on the outside.  You can’t expect to get a deal on something and then then be frustrated when it is not perfect.

This conversation took me back to my point in another previous post where I figured that if banks (or whoever owns a property) put just a little bit of money into a house (and yard) that is for sale, the payback would be more than worth it.  Had a landscaper spent five hundred dollars just sprucing up the yard and made some minor changes to the outside, how much would the sale price of the home increased?  I am guessing by quite a bit more than 500 dollars.

The Lesson When Buying and Selling:

Next time you are selling ANYTHING, make sure it shines.  Do not let emotions rule you decisions, but use your common sense and possibly involve a third party to get an impartial opinion.  If you are looking to buy something, consider items that have cosmetic problems and appear to be undervalued for that very reason!

My blood is boiling….

I have read many stories of people that take advantage of the system and scam their way through life.  However, the story I describe below takes parasitism to a new level:

Unemployed Michigan resident Amanda Clayton has been receiving $200 per month in food assistance through the state’s Bridge Card program.   That’s OK, I know Michigan is not enjoying a booming economy and that many people are struggling.  I certainly don’t want anyone to starve.   However, Clayton’s economic status literally changed overnight when she went and won the lottery.  It wasn’t a huge payout, just a million dollars.  She chose to have it distributed as a lump sum, so her actual payout was cut by about half.

So, when Clayton suddenly had $500k to live off of, the food assistance stopped, right?

Nope.

I can’t say I really blame the state for still issuing a Bridge Card to Clayton.  Without a mechanism in place, it would be very difficult to track lottery winners to those receiving public assistance.  (That may soon end though as legislation is being proposed that requires the Michigan State Lottery to report anyone who wins over $1000 to the Department of Human Services.)  Plus, logic would tell you that someone receiving such assistance would stop the payments themselves.   What I found appalling was a quote from Amanda Clayton herself.  When asked if she felt she had a ‘right’ to still receive public assistance, her reply was this:

“I feel that it’s OK because I mean, I have no income and I have bills to pay. I have two houses.”

Oh my gosh.

What is so appalling is the absolute lack of wanting to come off of public assistance.  I know people from previous generations that took welfare only because they had absolutely no choice, and they did everything they could to get off of public assistance.  Where has that pride gone?  So doing what is right really doesn’t matter, doing what you can get away with it what is important now?

Not to mention, why does she have two houses?  Maybe some of that money should be put toward education or whatever it would take to make her more employable instead of buying houses?

To make matters worse, when asked at the end of the interview if she plans on continuing to use her Bridge Card until the state wisens up and cuts her off, she replied “Yes”.

After the story broke, the Department of Human Services did actually end payments to Clayton.  I can sleep easier at night now knowing that my tax dollars are not going to pay for Clayton’s food bill anymore, and that my money can hopefully go toward helping someone that really needs it.

To read the full article, including an interview with Amanda Clayton, click here.

What would you do in Amanda Clayton’s situation?  Would you still use your state-issued Bridge Card if you just received half a million dollars?   Do you feel it is just the state’s fault and she was free to use whatever money was sent her way?

Disclaimer:  Keep in mind while you read this post that I am referring to people that can afford their mortgage payments, they just don’t like that their homes are underwater, so they choose to walk away.

In a previous post, I discussed a home in our neighborhood that was basically abandoned by the previous owners.  (They up and moved out of state, leaving the home to languish.  They were not in any financial distress by any means.)

In a nutshell, the home was put on the market in August of 2011 for $299,000 and when I last looked about 6 weeks ago, it was being offered as a short sale for $235,000.  I then noticed a lot of activity going on at the house, and I found out the house did indeed sell in February of 2012- for $208,000.

Yikes.

I have to say, that sale price is not good for anyone that is putting their house up for sale in the neighborhood, or wants to refinance.

At this point, I do not know if the new owners plan on staying in the house or flipping it.  For the sake of home prices, I hope it is a flip so that a new sale price can go on the record.

Strategic Defaults Do NOT Just Affect The Bank And The Homeowner

Now, I know that a lot of people feel that ‘strategically defaulting’ is perfectly A-OK because a mortgage is an agreement between a homeowner and the lending financial institution.  When the bank loans money, they assume a certain level of risk.  If a homeowner decides to walk away (or in the case of my neighbor, run away) from their mortgage commitment, the bank has to suck it up because no contract is air tight and risk free.

However, as a homeowner, I don’t want to have to suck it up when I can’t refinance because my home’s value is now too low because of the ridiculous price this home sold at.  (In reality, I don’t need to refinance, I already did that.)

I wonder though.  These strategic defaulters justify their actions by pinning it on it just being a broken contract between themselves and the bank.  Well, there are a lot of other people involved too, the defaulters just don’t see it.  What would be great is if each person that defaulted was forced to go to the closing of every house in the neighborhood that was affected by their bargain-basement priced home.  There could be an original sale price based on factors that do not include the defaulter’s home.  Then another price could be assigned factoring in the low price of the defaulter’s home.  I would like the defaulters to sit and face those sellers and see how much money they are truly costing other people.

Anyway, I don’t plan on moving or refinancing, so my neighbor’s house will not impact me.  However, I feel bad for all the people in the neighborhood that it will affect, and it makes me angry.

(Keep in mind, I do recognize there are two parts to the equation.  For every unhappy seller, there is a very happy buyer, which very well could justify the defaulter’s actions.  However, I think it would be very difficult to watch your (former) neighbors lose money.)

What do you think?  Do you think it is easier for people to walk away from their mortgage because they don’t actually SEE the financial impact on the neighborhood?  

When I first started working at the age of 23, retirement seemed like something that old people did.  I started contributing to a 401k plan with my first paycheck, but retirement seemed so far off that I didn’t put much thought into it.  I didn’t really have a goal of retiring early, I just figured my husband and I would retire at 65 like most people seemed to do.

I am now 21 years into my ‘career’ (working at the same darn job off and on all those years) and working until the age of 65 does not seem very appealing.  However, even though we have diligently saved for retirement each year, our portfolio has not experienced the typical returns that ‘experts’ say you should expect on average each year.

A recent article on Yahoo Finance discussed Five Expenses Keeping You From Retiring.  I went through these expenses and looked at how our personal situation would be affected.

1. Stock Market Drop.  This obviously affected many people.  It hurt portfolios and people also lost jobs and experienced salary reductions/stagnation.  The stock market drop wasn’t all bad though.  It did allow us to buy stock at lower levels.
2. Boomerang Kids.  This refers to kids leaving the nest, and then flying right back in due to unemployment or student loan debt.  My kids are still in high school, so this obviously does not apply to us.  However, the article did state that the average cost to raise a child to 18 is $226,920 (so glad that counted that extra twenty bucks) in the United States.  We have 3 kids, so obviously this expense affects our retirement.  Add what we pay for private school into the equation, and kids definitely play a huge role in how long we will have to work.  However, they are worth every penny we spend on them and more, even if it means I have to work until I am 95 years old.
3. Divorce.  We are not divorced, and don’t ever plan to be.  However, I have seen how divorce can absolutely ruin the finances of couples that were previously very financially stable.
4. Lifestyle Changes.  The article discusses changes such as taking on a new expensive hobby, or a experiencing a medical problem.   My hobby would definitely be travel, which I can see would be costly.  Being able to afford to travel will definitely add years onto our work life.  Regarding medical issues, life is unpredictable, so we just plan to try and save enough to help cover medical expenses.  It is very hard to know what that amount would be though.  On the flip side, our ‘lifestyle’ will change when our  kids are all done with college (they start rolling off the payroll when we are 48), and our house will be paid off around the same time.  So, assuming our kids don’t boomerang back, our expenses will drop considerably at that point.  This will allow us to save a lot more than we do now, and that money will be put toward ‘earlier’ retirement.
5. Poor Planning.  We always planned to save for retirement, and we did.  We didn’t plan for poor stock market performance though, and we did end up traveling and spending on some things that we didn’t plan to spend on.  However, we found that spending the money while the kids were still home was worth delaying retirement somewhat, so no regrets there.  Not sure that falls under poor planning as much as just ‘living’ and learning what is important to you along the way.

Just about six weeks ago, I had surgery to reconstruct my Anterior Cruciate Ligament.  (ACL)

Having this surgery was a big decision.  For one thing, I really wasn’t debilitated by my injury.  I could still walk (straight ahead), I wasn’t in pain, I had full range of motion.  However, pivoting even slightly caused my leg to give out.

I could have possibly gone on the rest of my life without have this ligament replaced.  However, my life would be altered.  Sports would be gone.  I would also have to think about any lateral move I made.  If I did the wrong thing, I was at risk of tearing my cartilage or tearing other ligaments.  So although surgery was not REQUIRED, it was recommended if I wanted to go back to doing many activities.

Just after surgery, my knee was huge, I had to put a full leg brace on my leg even for getting up off the couch, and I went to therapy three times a week.  There was a lot of pain, but there was also a lot of progress.  Each day got a little better, and at this point, my knee is more of a nuisance than a ‘focus’.

My recovery process reminded me that so many negative things in life are really just temporary.   When my pain medications wore off the day after surgery and I was miserable, I felt like I would never walk normal again and I questioned by decision to have the surgery. In less than four weeks though, the brace was gone and my normal gait was back.   (Not that the knee was fully recovered at that point, it still was very stiff and I still had another couple months of physical therapy to go.  However, day-to-day activities were manageable.) Sure those four weeks were not fun, but it was totally worth going through the pain and physical therapy to regain the ability to run around and live life again.

The Lesson:   Difficult Circumstances (Usually) Don’t Last Forever!

Sometimes you might just have to bite the bullet for a little while to get through certain circumstances, and then life will return to normal.  (Even though it might not seem so short-term at the time.)  This thought doesn’t apply just to health, but to almost anything.

For example, imagine you need to come up with an extra two thousand dollars to pay down a bill.  Maybe all it would take is working a second job for a month or two so that you can earn the needed money.  Sure, it might not be fun, but again, it is something you would only have to endure for a short period of time.   Next thing you know, the time has passed and your debts are settled.

Or, maybe you are considering starting a side business, but you keep putting it off because you ‘don’t have the time’. Well, think about how you really spend your time.  Do you spend a few evenings a week watching TV?  Would it be possible for you to give up some leisure activities for just a few months so you could devote your time and energy to your new venture?  Sure, those few months might be tiring, but the payoff could be huge.

So, next time you think of something you would like to accomplish in the future, really think about what is stopping you from doing it right now.  Do you really have a reasonable roadblock?  Or, could you push through for a few months to attain what you want?

I was born at the wrong time, at least when it comes to housing.

When my husband and I got married in 1991, there was no way we could afford a house.  I had student loan debt, we had wedding debt, and I had credit card debt from my last 2 years in graduate school.  So, we rented an apartment for the first two years of marriage.  Apartment living really wasn’t that bad, but when I became pregnant, we decided to start our search for a home.

Our first house cost $95,000, and it was a 1200 square foot, 3 bedroom ‘starter’ home.  I believed that due to FHA rules, we could not purchase a home that cost greater than $104,000 (may not be remembering the exact dollar amount). So, we were really happy with the home we were able to find that fell within FHA guidelines.  We were also happy with the interest rate, which was around 8 percent way back in 1993.

Happy with 8 percent?

Why yes!   Just three years prior, mortgage rates exceeded 10 percent on average, and two percent made a big difference in your monthly payment.

Now, fast forward to today where interest rates are less than half of what they were when we bought our house in 1993.

According to my mortgage calculator, our $95,000 loan at 8 percent resulted in a monthly payment of $697 for a 30 year loan.  That same loan amount today would only be $453.  That extra $244 would have covered our car payment back in 1993!

Now, couple historically low interest rates with low home prices, and this economy can be a homebuyer’s dream!!  As a matter of fact, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index, home ‘affordability’ is at record levels.

So, why isn’t the housing market just taking off?

Part of the reason is the restrictions on mortgage loans.  Apparently, the days of offering huge mortgage loans to those that really have no business buying an expensive home are over, at least for now.  Also, the employment rate is still not stellar, and you just can’t buy a home if you are not employed.

How Affordability Is Measured

The NAHB considers a home affordable if it can be purchased by people earning the average median income, which is $64,200.  The percentage of homes that can be purchased based on the median income is then determined, based on recent home sales.  Right now, nationwide, 75.9% of all new and existing homes are affordable to those who earn at least $64,200, which is the highest percentage since the inception of the Housing Opportunity Index (HOI), which was more than 20 years ago.  Obviously, some markets have a higher percent and are more affordable than others.  For example, only 29 percent of the  homes in the New York metro area were considered affordable by those that earn the  median income for that area of $67,400. On the other hand, Kokomo, Indiana homes were very affordable, with 99.2 percent of homes being deemed affordable according to the median income of that area of $59,100.   (If you are curious of how different areas in the nation rank in terms of affordability, check out the NAHB Reference List.)

It is amazing to think about how much easier the process of finding a home is now than it was back in 1993.  Twenty years ago, you almost solely relied on a realtor to give you information on homes that were available.  For financing, you might call a few mortgage brokers or go with your realtor’s recommendation for getting a decent mortgage rate. Today, you can search for a home, compare mortgage rates, and check out affordability indexes all online- 24 hours a day.

So, I wonder, for those readers out there that have some disposable income, what keeps you from either buying a larger home, or perhaps investing in rental property?  According to this info, there may not have ever been a better time in history to purchase a home, so are people crazy for NOT investing in real estate now?   Does this information make you think about your own situation, or are you totally set with the house you live in?  Thoughts?

Jeremy Lin is an unexpected success story out of the NBA.

In a nutshell, he was a star basketball player in high school.  Although he was talented, colleges were not pounding down his door and handing him scholarships.  Some colleges said he could try and walk on, and Harvard and Brown both said he could play for them.  In the end, Lin chose to attend and play for Harvard.

His college career was impressive.  He was selected All Ivy-League First Team, and Harvard had some great seasons while Lin played. However, the NBA was not begging Lin to come play.  As a matter of fact, Lin was not even drafted in 2010. That didn’t deter Lin though.  He went to the Dallas Mavericks mini camp and also played in their summer league.  This got Lin noticed and next thing you know, Lin is getting offers from the Mavericks, Lakers, and Golden State Warriors.  In the end, Lin signed with the Warriors, which was his favorite team growing up.

Lin did not stay long with Golden State, and he eventually ended up getting picked up on waivers by the New York Knicks in December of 2011.   Lin was not guaranteed a very illustrious role – he was going to be third string point guard, although he was quickly assigned to the D League.  However, the move worked out pretty well because Lin had a triple double in one of the D League games and ended up being recalled by the Knicks pretty quickly.

However, Lin still didn’t start and his roster spot was shaky at best.  But, the Knicks started playing pretty poorly and coach Mike D’Antoni decided to let Lin have some play time.  What happens next is an athletes dream come true:

On February 4th, Lin scored 25 points against the New Jersey Nets.  He started the next game against the Utah Jazz and scored 28 points.  On February 10th, Lin scored 38 points against the Lakers.    Next thing you know, Lin is named the Eastern Conference Player of the Week.  That is an accomplishment you don’t see very often from a Harvard graduate!

Please Don’t Ever Change Lin!!

Whereas just about everyone loves a Cinderella story, what makes this story so wonderful to me is Lin himself.  He is getting his 15 minutes of fame right now, and you don’t see him running around getting tattoos and hanging out in bars. Instead he is crashing on teammates couches and crediting God for his success.  His priority is his friends and family, and not fame and fortune.

How refreshing!

Of course, we are just at the beginning of Jeremy Lin’s story and time will tell what happens with his career and how he handles his new ‘status’.  I just hope that he manages to stick to his values and doesn’t end up in the ‘fast lane’. It would be great if in five years we read about how superstar Jeremy Lin owns a cute house in the suburbs and lives a happy little life.

Dreams Can Come True!

Jeremy Lin’s story is a unique one, and quite extraordinary.  However, it is just more proof that just about anything is possible.  If Lin can go from Harvard to the NBA, think of all the smaller-scale things that are possible!

One of the things that holds many people back from chasing their own dreams is the fear of failure, or the thought that the dream or goal is just unattainable.  Well, a lot of people meet their goals each and every day.  Some goals are easier than others, but I really believe you can do just about anything if you have a strong work ethic, some intelligence, and the drive to succeed.

Keep in mind though, dreams do not come true overnight.  You can’t expect to suddenly become a professional photographer if you don’t own proper equipment and have enough training.  If you prepare yourself both emotionally, mentally, and financially, nothing should be able to stop you.  Just make your plan, and go after it!

Does something stop you from chasing your dreams?  Or, do you have a plan in place so you can live your dream?

I have invested in the stock market with my very first paycheck out of college.  Initially, my stock ownership was strictly through my employer’s 401k program.  That system was very easy- pick some stock ‘types’ (large cap, small cap, etc) and the individual stock investing was done by the brokerage.

About a year later, I started investing a couple hundred dollars a month in mutual funds.  I set it up so that $200 was deducted from my bank account each month and that money was invested in a group of stock for me.

Over time, I learned more and started purchasing my own stocks.  I made some money, but there was something about it that I didn’t like: I agonized over my decisions, even the good ones.  I was reminded of why I prefer index fund investing when I read the following headline:

“Will iPad 3 Send Apple (AAPL) Shares Above $500?”

$500 a share????

I remember back in 2009 when I considered buying Apple stock when it was $125/share.   However, for some reason, I have a mental issue about paying such a high price for a share of stock.  (Stock splits were made for people like me.  Technicals and financial data be damned, I just really struggle with paying that much for 1 share of a stock.  Stupid, I know.)  In this case though, I almost pulled the trigger and dove in.  However, I was waiting for a pullback before I invested.

I am still waiting for that pullback…

What Would Have Happened Had I Bought the Apple Stock

Let’s pretend for a minute thought that I did take the plunge at $125.  I would have been biting my fingernails over my decision I am sure.  However, I would not have fretted for long, because the stock never looked back from that point.   By the end of 2009, the stock was at $200/shr. At the end of 2010 it was at $322/shr.  At the end of 2011 it was at $405/shr.  Here we are now, about a month and a half later, and it is all the way up to $493/shr.

Anyway, I am guessing that I would have sold the Apple stock before it ever hit $200, just to lock in profits and move on to some other investment.  (Or sold it exactly one year after purchase.)  Then, as time passed by, I would have kept monitoring the stock.  I would probably ended up so mad at myself for selling my investment as the stock just kept climbing and climbing, year after year.  Then, I probably would have thought about ditching my ‘lock in profits’ strategy with the next stock I bought and held a stock that ended up tanking overnight because it missed analyst estimates by a haypenny.

My Current Investment Strategy

Right now, I have a mixture of investments.  Besides retirement and college funds, I have also begun investing in dividend stocks.  I have 5 stocks that I invest in occasionally.  Each month, I usually invest some money in whichever of the five companies looks to be the best investment at that point in time.  I  don’t plan to sell any of these stocks as I would like to use the dividends as an income stream in the future.  I am not saying that I will never sell any of these stocks, but I don’t have plans to at this time.

I also have some index funds that I have invested in, although I have not contributed as much to those funds as I have the dividend stocks lately.  Basically, I just think about buying and not so much about selling.

My Investment Advice:

With my current approach, I don’t have as much opportunity to second guess myself, and that strategy is what suits ME. However, everyone is different, and I think it is very important to invest in a manner that YOU are comfortable with. Profits are great, but so is peace of mind.  Before you make any huge leaps when investing, think about your own personality and comfort level.  Are you nervous investing in stocks period?  If so, consider bonds and  and other options.  Keep an eye on CD rates and educate yourself so you can recognize when it is the right time is to invest in different financial vehicles.  It took me years to get to the middle ground I am at where I am comfortable with my investment strategy.  My strategy may change over time, and that is OK. However, I like that I don’t over-think my investments.  Don’t get me wrong, I still monitor my money, but I don’t micro-manage it like I used to.

Has your investment strategy changed over time?  Do you have a tried-and-true plan that works well for you?