Engineer Your Finances

A Systematic Approach To Money

  • About Us
    • Disclosure
    • Privacy Policy
  • Contact Us
  • Toolkit
  • Security
    • Credit & Debt
    • Banking & Saving
    • Psychology
    • Other
    • Optimization
    • Education
  • Self Discipline
  • Improve Returns

Investments Basics – Risk, Reward & Liquidity

Share

Hi All,

Youtube is full of junky personal finance advice.  So, when I came across this quick video on the basics of personal finance, I thought I’d go ahead and republish it here on Engineer. It’s unique and interesting because it outlines some personal finance basics, but also shows how you should take the investments basics and implement them into a viable asset allocation scheme – an investment risk pyramid.


Since not everyone has access to youtube, the highlights are summarized below. Most of these are pretty simple, but once you master the basics your capacity to understand how wealth building is done is greatly improved.

1. Consider risk, return and liquidity when making asset allocation decisions

2. Use the rule of 72 to determine how often your money doubles

3. Understand that all investments carry some type of risk

4. Volatility is part of investing, prices will rise and fall

5. When you buy a stock, you become an owner

6. When you buy a bond, you become a lender

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FOLLOW US

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2





Our Favorite Posts

  • How Much Interest Does 1 Million Dollars Earn Per Year? by Trey LaRocca
  • 3-Month Performance Review by Fin Engr
  • Rooting Out The Devil: Kathy Kristof Interview by Fin Engr
  • Money Hackers Carnival #117: Wedding & Marriage Edition by Fin Engr
  • Interview: What’s it all about? More than Money! (Part I) by Fin Engr
  • How to Compare Rates for Mortgage Refinancing by Fin Engr
  • Want To Erase Bad Credit Instantly? 6 Hacks That Work Fast by Trey LaRocca
  • FinEngr Joins The Million Dollar Club by Fin Engr

Blogroll

  • Blonde and Balanced
  • Budget and the Bees
  • Cash Cow Couple
  • Cash the Checks
  • Clever Dude
  • Dinks Finance
  • Enemy of Debt
  • Get Rich Slowly

Categories

Our Friends



Great Investing, Simplified: Get Stock Advisor for Just $99/year!

Need to find a loan? Got a Car? Compare title loan offers near me and get the best rate.

private real estate investors

Order custom essay from professional essay writers.

Visit 123 Term Papers and you’ll receive help from the qualified writers.

Thesis writing help for all the students!

Copyright © 2021 · Runway Pro on Genesis Framework