May 2012

Family: The source of seed capital

Look at any wealthy investor and it was his family that helped him or her initially.

I wanted to write more about convincing family members because I felt it was very important for aspiring investors to realize how important this step really is. Don’t promise big returns. Just tell the truth and I am sure they will be very understanding.

People often do not realize how helpful the family can be in getting started in the investing game. That is actually how most investors started like Raymond Dalio, for example. It is your family that will believe in you when no one else does.

I know we have all had those experiences when we walk up to our parents, for instance, and ask for a shoe or mobile phone and they turn us down. We then just simply give up and walk away and try to do it on our own. I guess that is human nature. Trying to do everything on your own and not asking for help or what we fear others would term a handout.

Problems with Facebook IPO

Analysts warned it would happen.

Facebook went public on May 18 this year with its initial public offering (IPO) at $38. Facebook’s Chief Executive Mark Zuckerberg, along with several other companies are now being accused of hiding important details about the IPO. There is currently a lawsuit against Zuckerberg, Morgan Stanley and others about this.


The lawsuit has been filed because investors are saying that Facebook and other groups failed to announce that they were expecting very weak growths in the future. The lawsuit is saying that Zuckerberg and others hid key information from investors regarding the earnings of the company. During the first three days of trading, Facebook’s shares fell over 18 percent. The shares were sold initially for $38, and several days later they were selling for around $32.

How to live debt free

Taking that not-so-desirable job for a year after college might be good for you.

I know we all want to work in our dream jobs straight out of college or at least get the type of work experience that will allow us to land that job that we have always dreamt about one day. But the reality is that we are faced with a debt burden that is getting out of control and what’s more, the interest rates will be raised too.

So it might be time to suck it up for a year and do something boring and not very intellectually stimulating so we can pay back debt and start off with a clean slate. This means being treated badly at times by co-workers and senior workers. It is all in the game.

All this talk of the Facebook IPO and why go public at all?

IPOs were considered the end game for tech startups, but this Facebook IPO is a pretty gigantic one indeed.

The Facebook IPO is all the rage and Mark Zuckerberg has married his high school sweetheart too. So over here on Investment Talk, I want to tackle the question of why go public at all? It is actually a very important phase for a tech startup and one that is very often inevitable.

The main reason is to get access to more capital to pay back debt or for expansion efforts. The other reason is that it is an exit strategy for investors whether may be venture capitalists or a group of investors. Once you go public, it is also much easier to secure more financing to make deals happen.

Employees have to be rewarded too and a lot of them are expecting a big payoff after putting in all the work and often this could be for periods of 5-10 years. Another thing that an IPO offers is increased marketability for a company that will lure more attractive investors, partners and not to mention customers too.

How to increase traffic to online articles

I have been writing articles online and looking to share some tips for making money.

Track your articles and capitalize on those that are already bringing a lot of traffic.

There are ways to track articles and the visits through stuff like Adsense URL channels, etc. Capitalize and keep trying to market and promote the ones that are bringing in a large number of visitors already. It is called going for the big wins.

Keyword and Topic Research

A lot of things can be learned by doing some research on keywords and topics that will allow you to generate more money for articles. For instance, there is a distinction between high paying keywords and high traffic keywords. Google’s Adwords tool is a great place to do some keyword research. But there is also the Google and Yahoo suggest features that can be pretty helpful too.

Hot trends are great and all, but I am looking at those that can generate long term traffic and income. Some trend trackers I can suggest here for you are AOL Hot Searches and BuzzFeed. Also visit forums and read stuff like Google News, to get a sense of what people would like to read.

Why do we love debt so much?

I get that debt is leverage, but I hate when it is wasted.

I am one of those few people who has recently graduated from college with zero debt and that is an amazing feeling. But of course it was paid for in full by my parents and whatever savings I had and also the money I made during my four years.

The issue I have with debt is why do people who have amassed so much of student loan debt have to go on those great spring break vacations? This is not only puzzling to me who despises debt so much, but also isn’t it just going to delay your progress and career development. Forgive me, but I have always stressed the importance of great finances and trying to augment the money and assets you have at your disposal.

I guess not everyone is in it for the money like I am, but people need to realize what debt should be utilized for. But then again, those that want to use their credit card to purchase a new iPhone or use their student loan to go on a graduation trip may say that it is to make payments for something that will give you memories for a lifetime.

How to look at an investment

An investment doesn’t have to always be stocks and bonds.

The startup seems to be the wave of the future and with all the talk of the Facebook IPO and tech bubble, people have to be more savvy about making money on the side. The greatest feeling in the world is to be able to dictate how your day goes and meet the people you want to meet and be the expert in the subject that you always wanted to master.

I really think the first thing that you should do - and this what I did too - is to invest in yourself to be able to make some money on the side. A freelance web designer is the first that came to my mind when I was looking for some side income that would compensate me pretty well for the time that I put in. But there are a lot of other skills that are in demand like violin tutors and college application counselors, etc.

I guess some passion for what you are doing is important to keep you from getting so bored that you will quit. Loss of focus is the main reason why most people fail to get anything started in the first place.

Overnight Success

Never be misled by what is perceived as overnight success.

I have been educating myself greatly on setting up that online business and this week I thought I would share more tips and leave you with an article that really tells you what it is going to take to have a successful venture.

Basically, there is no such thing really as ‘overnight success.’ Most of the time, people hear about startups when they have become that blockbuster hit rather than the hard times that they went through. I guess this is true for success in life in general whether it be basketball, academics or space exploration.

More tips on getting started

Information and guidance is everything!

I have read many profiles of top investors and rich people alike. The one thing that they have in common is that they did initially borrow from their family members to get started in whatever business or investing career that they set about pursuing. So don’t be afraid to ask any of the wealthy members of your family for seed capital to get started.

For me, it was my dad who was the wealthiest member of my family. This is a pretty easy source for capital as there is no one in the world who wants to help you or see you succeed more than your parents.

Then you look to make money off of these initial capital investments and look to bring together some money from friends that you really like and whom you share a lot of common investment goals and values with. This is actually a mutual fund!

Save money with simple changes

Look into these things and you might be able to save some money.

Most people are constantly trying to find ways to save more of the hard earned money they have. Money seems to leave my hands almost as quickly as I receive it sometimes, especially because I have kids. There are so many ways to save money though, and in these economic times, it is worth looking into.

One way you may be able to save a significant amount of money is on the insurance that you have. Insurance is a necessity for everyone, but overpaying for it is not. You should periodically request quotes from companies for all of the insurance types that you have. You can also ask your current insurance company if there are any options in lowering your premiums. Some insurance companies offer discounts, but if you don’t ask what they are, they might not tell you. You will not know if you qualify if you don’t know what they are.

Winning the online business game

Useful links

If you have been reading my recent articles, you might have already realized that I am trying very hard to get an online business up and running. Nothing is more awesome than checks in the mail!

I think the number one thing to keep in mind is that there are no shortcuts and patience and persistence are the two key things to always have at the back of your mind as you try to get that online business endeavor going. I guess the problem is dealing with distractions and I have many!

How to get started stock trading

This is my own personal guide that I think you should follow.

Before I start, let me remind you that I have done quite a lot of posts on Investment Talk and also followed individual stocks like Apple and Microsoft in addition to whole industries like technology and even how to go about something like retirement.

Now that we have that out of the way, here is my guide to get started in stock trading. I know that there is so much information out there and people get overwhelmed prematurely. But the way I would approach stock trading is to first go for those stocks that will get you that check every month and that is the high dividend paying stocks.

Student loan relief: socialism?

President Obama has been pretty open in his attempts to try and stop federal student loan interest rates from getting out of hand. He has stated that the Republicans who are in Congress have referred to the student loan relief as socialism. However, Republicans have stated that this is not what they think.

Obama has actually come up with five ways to make the lives of students easier as they pay back their student loan debt which can be such a financial burden that can plague them for the rest of their lives.

The power of small wins

Using psychology to achieve goals.

A lot of the time people get overwhelmed and then not do anything at all. This only makes the situation worse and yours truly has been guilty of this on more than one occasion. I have read many books written by famous self-made entrepreneurs and they all stand by the power of small wins.

It is the idea of trying to get a few things done as you try to achieve that big thing that you have always wanted to accomplish. A lot of the times what happens when we set about trying to achieve something whether it be taking a class or earning some money on the side is that we are faced with 50 different choices that we get overwhelmed prematurely.

So what must be done is to try and look to break it down into steps and tackle each one of these steps. Even if you fail on any of these steps, the small wins that you achieved in the previous steps will propel you forward. It all comes down to confidence!

Saving money on vacations

Tips for saving money on vacations

If you are planning a vacation, there are so many ways that you can save money. A vacation is expensive, and you should always plan for it for months in advance. The best way to save up for a vacation is to save money toward it for many months. This is the best way to do it without racking up any credit card bills for the trip.