Posted on

Book Review: Think and Grow Rich 

Written by R. A. Stewart

Think and Grow Rich by Napoleon Hill is one of the world’s best selling self help books and has been for over 70 years.

Napoleon Hill had spent twenty years compiling information for the book and during that time he interviewed the most successful men in history to learn how they acquired their fortunes. 

He reveals the one sure way to overcome all obstacles, achieve any ambition, and bring success to any life.

It is all a matter of knowing what you want and having the desire to make your goals come true.

The book is not one that advises you where to invest your money but rather develops the kind of traits which have made others successful.

The subjects covered in this book are:

Thoughts are Things: Using the power of your mind to get whatever you desire.

Desire: Transforming your desire into concrete action

Faith: How you can rise to limitless heights if only you had faith.

Auto Suggestion: Train your mind to get amazing results with the use of auto suggestion

Specialized knowledge: Your education is what you make it, and you can find the knowledge that takes you from where you are to where you want to go. 

Imagination: This is what is required to turn your dreams into reality.

Organized Planning: How to use your master mind for success.

Decision: The ability to make decisions quickly will help you to achieve more.

Persistence: The ability to persevere is important.

Power of the Master Mind: This secret involves choosing mentors who are where you want to be.

Sex Transmutation: How women help men become successful, and how to take advantage of the ancient truth.

The Subconscious Mind: How your subconscious mind waits like a sleeping giant to back up every plan and purpose.

The Brain: How to use your brain more effectively.

The Sixth Sense:  How wisdom opens the door to the road to wealth.

 The Six Ghosts of Fear: Take inventory of yourself, and see if any remnants of fear stand in your way.

Weaknesses

While the book has its merits it also has its weaknesses, and one of these is that it does not take into account the economic landscape of today and the barriers which many people face in their day to day lives.

Conclusion

Think and Grow Rich is a classic for a reason and while it is no magic formula for success the steps to success explained in the book are a starting point for those wanting to learn the mental aspects of success.

Enjoyed reading this article?

Visit my site www.robertastewart.com for more articles.

Posted on

Book Review: Rich Dad Poor Dad 

 

Written by R. A. Stewart

Rich Dad Poor Dad by Robert Kiyosaki is one of the best selling finance books of all time. It tells the story of two Dads in his life, his biological father who he called “Poor Dad” and his friend’s father, who he called “Rich Dad.” 

His Poor Dad worked diligently all of his life but could not get ahead, his Rich Dad was smarter with his money and was rich. The Rich Dad mentored Robert and helped him become financially literate.

It is not how much money you make but rather what you do with it after you make it and that is the basic theme in this book.

 

In the book, Robert focuses on getting rich through financial literacy, investing, and entrepreneurship.

The most important lesson is to know the difference between assets and liabilities. Kiyosaki reminds readers several times throughout the book the importance of building up your assets and minimizing your liabilities in order to build up your financial portfolio. He makes the point that many people mistakenly think they are acquiring assets when in fact they are accumulating liabilities. A perfect example is of a house which though it may be a family’s biggest purchase during their lifetime is a liability because it costs money to keep and maintain.

Kiyosaki also stresses the importance of a financial education and claims that the education system does not teach financial literacy to the detriment of children.

The book also explains the concept of having money work for you instead of working for money. Poor Dad had the working man’s mindset of working a set number of hours per week for money while the Rich Dad focuses on acquiring and building assets which generate an income.

Writing Style

Robert Kiyosaki writes in a way as though he is a mentor to his readers rather than if he was simply writing a textbook which resonates with so many readers.

The book has had its critics though, one is that it is too simplistic with not enough actionable advice on how to create and build wealth. It has also been criticized for focusing on financial gain and little emphasis on the social or environmental impacts of wealth building. 

Kiyosaki’s dismissal of education does not resonate with everyone who values the education system. He does highlight the shortcomings of the education system, but his message is not going to go down well with parents who are trying to encourage their children to focus on their school work.

Conclusion

Rich Dad Poor Dad is certainly a very good book as far as improving your financial literacy is concerned, but the information needs to be applied according to your personal circumstances. I have no hesitation in recommending Rich Dad Poor Dad as a must read for anyone wishing to get ahead in life.

About this article: You may use this article as content for your blog/website. Feel free to share this article with others.

Check out my other articles on www.robertastewart.com

Posted on

Warren Buffett keys to investing

Written by R.A. Stewart

Warren Buffett is a legendary investor who has valuable rules for investing your money; some of these are:

Do your homework

Be Consistent

Limit your borrowing

Keep things into perspective

Diversify your investments

Have an emergency fund

Stay disciplined.

I have written my thoughts about all of this, and as usual, it may not be applicable to your personal circumstances.

1 Do your homework

You need to understand everything that you invest your money in. Doing otherwise is simply inviting financial loss. Just investing in something because others are doing it or it is another bandwagon to jump on is a bad reason for investing in a particular stock. Keep in mind that when a particular company’s stock is rising, a lot of investors will jump aboard for the ride and inflate its true value.

2 Be consistent

Keep investing, that applies to putting money away for your retirement, building an investment portfolio, or saving for a rainy day. Learn to make sacrifices in order to make your dreams come true. 

3 Limit your borrowing

Borrowing can kill off your chances of financial success if you let it. The worst kind of borrowing is consumer debt, often referred to as dumb debt. When one borrows for consumer goods, they are paying for something which if they sold, would be worthless than the money owing on it. With borrowing, the crunch always comes when you have to pay it back.

4 Keep things into perspective

Success means different things to different people. Supporting your favourite charities is a way of giving back to society, even if you are just starting out and don’t have a lot to give. You can still give your time. Be faithful with what you have today. 

5 Diversify your investments

Placing all of your money in one company is called, “Putting all of your eggs in the one basket,” it could also be called “Stupidity,” It is inviting financial disaster. A common theme through many of the finance company collapses in New Zealand during the Global Financial Crisis is that many of the investors had their entire life savings invested in just one company. Many were left with destroyed retirement dreams as a result.

6 Have an emergency fund

It is sensible that one has an emergency fund to fall back on during times when cash is needed. This applies to everyone, whether one is a householder balancing the budget or in business.

7 Stay disciplined.

Keeping a disciplined frame of mind will help you stay on track. That includes staying in the habit of investing your money instead of frittering it away on things which do not add value to your life.

About this article

This article is of the writer’s own personal experience and opinion and may not be applicable to your personal circumstances therefore, discretion is advised. You may use this as content for your blog or website.

www.robertastewart.com

Posted on

5 Ways to Diversify your investments

5 Ways to Diversify your investments

To have a diverse portfolio means to have your money in several places so that if one company or industry is in trouble then income from your other investments should at least minimise the shock.

There are 5 ways to diversify your portfolio. 

Number 1: Invest in several industries

Investing in different kinds of industries protects you from a downturn in one. With the online share market platforms I am with I have investments in a building company, an energy company, a farming retailer, phone company, and a New Zealand milk supplier. This diversification technique minimizes risks and gives me plenty of interest too.

Number 2: Invest in several funds

If you invest in managed funds and that includes everyone who is in Kiwisaver then you will be in various types of funds; growth, balanced, or conservative. The best strategy is to invest in the fund which is right for you and that depends on how soon you need the money. Long term, medium term, and short term money should be in growth, balanced, and conservative funds respectively but it all depends on your risk profile.

Number 3: Invest in different platforms

Most of us have heard of the online investing platforms such as Sharesies, Hatch, Investnow, Kernel Wealth, and Robinhood. Investing in several different platforms will help cushion you against the shock of having one of them fail, and certainly, there is no guarantee that this will not happen. I advise not investing all of your life savings into one online platform.

Number 4: Invest in different asset classes

Investing in different types of asset classes will enable you to withstand a downturn in one class of asset. Investing in fixed term interest, the share market, gold, and property are all different types of assets. It all depends on what the right kind of assets are right for your kind of personal circumstances. 

Number 5:Invest in different companies

This is very important. It is unlikely that all of the companies will fail even though the industry is going through a bad patch. This rule is just as applicable to investing in finance companies for a fixed term return as it is for shares. 

Benefits of Diversification

The number one benefit of diversification is it reduces your portfolio risk. If you placed all of your eggs in the one basket then you could lose it all if that one company went under and it did happen to some investors during the 2008 Global Financial Crisis (GFC) and 1987 Sharemarket crash (Black Monday).

It can be enjoyable for investors to own a little bit of a number of countries. Micro investment platforms such as Sharesies, Hatch, and Robinhood make this affordable for Mum and Dad investors.

Downsides of Diversification

Diversification can be time consuming but then everything worth doing is worth doing well. Investing in managed funds or mutual funds as they are called in the US is an option for busy people. More transaction fees and commissions is another downside to diversification and that could reduce your short term gain.

About this article: This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised.

 

Sharesies is an accessible and straightforward way to invest in the stock market. You can get started on your investment journey and start building your wealth. However, before making any investment decisions, it is essential to do your research and seek professional advice if necessary.

 Join Sharesies here

Disclaimer: I may receive a small commission if you sign up with Sharesies.

Posted on

Investing in Gold

Investing in Gold

Written by R. A. Stewart

Is Gold a good investment?

That is a question I cannot give you an answer to because it is a bit like a “How long is a piece of string?” question.

Whether investing in something is good or bad really depends on your personal circumstances and where this investment fits in with your objectives.

Is the money/investment needed in the short term, medium term, or long term?

Once you have answered this question you will have a better idea of whether gold is a suitable investment.

Problem with gold is…

That it does not provide investors with an income. All they can expect is capital gains; that is, selling gold at a higher price than when it was bought for.

The Share market provides a dividend to shareholders of the various companies and there is the opportunity to profit from the increasing value of the shares. 

Another problem with holding physical golds is the storage costs and this can mitigate any capital gains from selling it.

Different ways of investing in gold

There are several ways of investing in gold and there are pros and cons with each of them.

The easiest way of investing in gold is to purchase shares in a gold mine but this is very risky and should only be done with money you can fully afford to lose. Your country’s stock market may have listed companies of gold mines.

Purchasing gold coins is another way. You will find gold coins listed on ebay but the downfall of investing in gold in this way is that the seller will seek the highest price possible for their coins; and it may not reflect it’s true value.

Buying gold from a dealer is another way but this is beyond the means of a lot of people and then there is the problem of storage not to mention the risk of theft.

Collecting gold jewellery is another way of investing in gold. Just as collecting other items such as postage stamps, old comics, or barbie dolls, they give enjoyment to the collector and the items are worth something when it comes time to sell.

Investing in gold as an interest

Gold can provide an added interest to your portfolio. If you have discretionary money to spend then investing in gold can add an extra string to your financial bow and if the investment turns to custard then there is no damage done. After all, millions of dollars are lost in lotteries every year and no one blinks an eye lid. Giving up lotteries and use the money to build up your gold investments should be your best approach. 

The risk of investing in gold

There are risks with investing in Gold as there are with other types of investments but these risks can be managed. It is important for investors to do their research in order to understand these risks. 

Investing in gold should not be an alternative to contributing to your country’s retirement scheme.

The rules of investing

The rules of investing are just as applicable with gold as they are with other types of investments. Where does gold fit into your overall investment strategy? If you have some disposable spending money to invest then investing in gold is a good option. It will provide an added interest to you; that is interest in terms of enjoyment such as a stamp collector would derive interest from his or her hobby.

It is certainly not wise to just purchase gold with money which you can ill afford to lose or to invest your whole life savings into it. That is just asking for trouble. 

To summarise

Investing in gold can provide you with an interesting string to your financial portfolio, but it does have its pitfalls. It is important to weigh up the pros and cons and only invest money in gold which you can afford to lose. Read up on the subject and then decide whether gold is a suitable investment for you.

About this article

The opinions in this article are of the writer’s opinion and may not be applicable to your personal circumstances. You may use the content for your blog/site or ebook. Feel free to share the article on social media.

www.robertastewart.com

Posted on

Investing with online share market platforms

Share market tips for the Mum and Dad investor

Written by R. A. Stewart

I think it is fair to say that a lot of people dream of hitting it big on the share market and some do but for everyone who has found a pot of gold in the markets there are countless others who entered the markets blindly without doing their homework or having a strategy in place; this article is to give you some pointers if you have some money to spare and are looking for somewhere to invest your hard earned cash.

In the share market, as in real life, if you are able to reduce your number of bad decisions then you will be better off; not that there’s anything wrong with making mistakes.

You are sometimes better off by learning a lesson the hard way if that is what it takes for you to get the lesson. 

Here then are my share market pointers.

1 Investing directly into the share market is beyond most small investors because their ability to diversify their portfolio is limited therefore the only option is to invest all of their funds in one company which leaves them open to disaster. If that particular industry which the company is involved in suffers a downturn, value of the share heads south. It is similar to a horse racing fan attending the track and betting all of their money on the one horse instead of dividing their bankroll between several horses.

Small investors are able to invest in the markets, however, and enjoy the same benefits of larger investors by investing in managed funds; this is where your savings are combined with other investors. You do not have the choice of which companies to invest your money in as that decision is left to the trust manager, however, you can choose which type of fund to invest in whether growth, balanced, or conservative.

2 Investing in the markets is a long-term game, therefore, if you require the money in the short term then you may be better off leaving your money in fixed term interest bearing accounts however, having said that, investing in the markets can increase your savings if you give it enough time. Young people have the advantage of time on their side; they are able to take more risks with their money because they have more time to recover from financial setbacks than their parents.

3 Don’t try to time the markets! It is time and not timing which is the key to making money in the share market. If you are waiting until the markets dip before investing you are missing out on plenty of opportunities to increase your capital and this is particularly true in a rising market. 

4 Decide whether the money is required in the short term, medium term, or long term before deciding on where to invest your money. 

Money needed in the short term or on standby is money which may be needed for car repairs, a holiday, household expenses etc

Medium term funds is money needed for a new car

Long term funds are savings for your retirement such as your superannuation funds.

Short term is not money which should be invested in bank deposits where you are able to have easy access to it.

Medium term money can be invested in managed funds where you are able to have easy access to it but still have the potential for it to grow.

Long term money is money invested in a retirement fund such as kiwisaver in New Zealand.

Conclusion

Think of money as “seed,” it will reap a nice harvest if you give it enough time, therefore you need to sow enough seed in order to increase your wealth; the share market is an excellent investment and managed funds makes it easier for the ordinary person to get involved in the markets. My site www.robertastewart.com has articles to help you increase your wealth. CHECK IT OUT!

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

 

Note: This article is of the opinion of the writer and may not be applicable to your personal circumstances

#sharesies #kiwisaver #savingmoney #sensibleinvesting #sharemarket 

 

Posted on

Share Price Consolidation

Share consolidation-what is it?

Written by R. A. Stewart

One term you do not hear very often is share consolidation. It is a term seldom used because not many companies have used this as an option. This article sheds more light on the term. Hopefully I have explained it well enough in terms that even the novice investor will understand.

Share market price increase may be misleading

If you are a casual share market follower and notice a particular company’s share price has jumped up in price suddenly and you are thinking, “What have I missed out on,” then it all may not be as it seems.

Let me explain.

Years ago around 2001 I think, I owned some shares in Air New Zealand. The company almost went broke. The company almost went bust. It was the government who bailed them out. The share price went from about $1.95 per share down to 14 cents per share. The share price increased a little but still only a fraction of what I bought them for.

What the company then did was increase the share price but you owned fewer shares.

This is how it works:

For the sake of simple mathematics, let’s assume company xyz’s share price is 20 cents per share.  xyz then decides to increase the price of the share to $1. 

If an investor owned 1000 shares at 20 cents, they will now own 200 shares worth $1 each.

Unless you are a follower of the share market you may be unaware of this actually happening. 

I don’t know how often this situation occurs but it may pay to do your homework if a particular share increases dramatically for no apparent reason.

What I have just tried to explain is known as reverse stock split or share consolidation.

This makes the company more attractive to investors. They may hold fewer shares but the real value of the total shares in that particular company is the same. It is just that now they hold proportionately fewer shares.

Share consolidation can be viewed negatively by investors as a company in trouble and this could impact the share price.

One reason why a company may choose share consolidation is that if it’s shares fall below $0.50 for 30 consecutive days then it will be de-listed. This is applicable to the New York Stock Exchange and there may be different rules for other countries. 

Another benefit of share consolidation is that it will mean fewer share certificates will need to be printed which will reduce costs.

It is always a good idea to check the history of a company’s share price before you invest in it. If it has been the subject of a share consolidation it may show up or at least give some indication that it has. Only a small percentage of companies will have been the subject of share consolidation, therefore, you are unlikely to come across this situation.

ABOUT THIS ARTICLE

You may use this article as content for your ebook or website/blog. The information may not be applicable to your personal circumstances therefore discretion is advised.

 

www.robertastewart.com

#share consolidation

#shares

#mutualfunds

#share market

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

Disclaimer: I may receive a small commission if you join sharesies.

Posted on

He who never made a mistake…

He who never made a mistake…

never made anything.

You could read all you can about the share market but investors will from time to time go against their better judgement and invest in something because of greed or it is something they are interested in. I have lost money in the past from some of my investments.

Here is a sample:

Air New Zealand (early 2000s)

This company I thought was a reasonably safe investment. Air New Zealand was once owned by the government but it was privatized during the late 1980s or 90s. However, the company almost went under during 2001 I think it was when their shares dropped to 14 cents each from about $1.50. The government bailed them out and still owns about 51% of the company. During covid, the government bailed them out again after the border closures placed them in a financially precarious situation.

Lombard Finance L.T.D

This was one of those finance companies which offered higher interest rates than the banks for fixed term accounts. Lombard as it turned out had too much money tied up in too few projects and when one of their creditors folded it brought Lombard down with them. It lent money to property developers. Lombard Finance collapsed in 2008

Provincial Finance L.T.D

This company lent money for consumable items such as cars etc. It, like Lombard, offered higher interest rates for fixed term than the high street banks. It was also a victim of the Global Financial Crisis.

Dominion Finance L.T.D

Another finance company which fell victim to the Global Financial Crisis. It too offered higher fixed term rates than the banks were offering.

Must be a lesson there somewhere.

These were by no means the only finance companies which went belly up during the G.F.C; South Canterbury Finance and Hanover Finance were high profile collapses. 

Some investors lost their entire life savings in Hanover FInance. 

That is a classic case of putting all your eggs in the one basket; a crucial mistake which affected how some folk will live during their retirement years. 

Greed sometimes over rules better judgement.

We sometimes hear stories of young folk who have bought xxx stock in xxx company which has risen in value by a ridiculous amount. This type of rise is not sustainable and it is only a matter of time before the rising share value slows or in some cases takes a spectacular dive. 

I mentioned young folk because they do not have the past experience of older investors.

It has to be said that those who have made the most investment mistakes are likely to be in a better financial situation than those who played it safe all their lives and just kept their money in low interest accounts. Certainly better than those who are spenders rather than savers.

The bottom line is that it pays to diversify and spread your risk but the level of risk one takes is dependent on a person’s age because younger people have more time to recover from financial mistakes.

A lot of people cannot stomach the thought of losing a few grand on their investments yet would have problem frittering that money on lottery tickets, cigarettes, or booze. In order to achieve more favourable financial outcomes it is important to do a stock take of your outgoings (spending) and transfer money which would otherwise have been wasted into something more profitable. This could be starting an internet-based business, investments, or upskilling.

During the 1987 sharemarket crash thousands of investors lost fortunes. Many of them borrowed money using the value of their shares as collateral and the rising share prices meant that they were able to borrow more money. The collapse of the markets left investors with shares which were worth less than the value of the loans taken out to purchase them. The lesson here is to never borrow money for shares.

Here is a quote from the Auckland City mayor concerning debt levels. “Capacity to borrow is not the issue. It’s the capacity to pay it back.”

The other lesson is that it may be better to invest in upskilling. It never hurts to add another string to your bow.

This article is the result of the writer’s experience and opinion and not considered as financial advice. If you require qualified financial advice see your bank manager or financial advisor.

www.robertastewart.com

Posted on

The averaging system for shares

The averaging system for shares

Averaging is a term which has been used by share market followers over the years. This is when an investor buys several shares in the same company over a period of time and the average price which was paid per share may be higher or lower depending on which direction the share price is going.

Here is an example of one New Zealand company, Fletcher Building beginning with January 4, 2023. The first three days of the year were public holidays so January 4 was used as the starting date and every seven days after that.

Date Share Price

4/1 4.71

11/1 4.90

18/1 5.06

25/1 5.11

1/2 5.25

8/2 5.46

15/2 5.07

22/2 4.81

1/3 4.71

8/3 4.65

15/3 4.50

Now let us assume that you had purchased Fletcher Building shares on each of these dates, investing the same amount of money. You would simply add up the totals of these prices and divide the answer by 11. That is the average price you paid for the share. In this case the average price you would have paid for Fletcher Building shares would have been $4.93 if you had bought them every week. 

We all know that shares go up and down so drip feeding shares into the market in this way will ensure that you have bought shares at a lower price when they are down as well as when they are on an upward trend.

Online trading platforms such as Sharesies and Robinhood make this process easy. If you have more money to spend you may want to choose two or more companies per year to invest in using this system.

As with other investment strategies you need to ask the question  “Where does this fit in with my financial goals?”

About this article

You may use this article as content for your ebook or web page. The information may not be applicable to your personal circumstances so discretion is advised.

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

 

Posted on

5 things you should never borrow money for

5 things you should never borrow money for

Written by R. A. Stewart

Holiday Travel

This is a complete no no because once your holiday is over you have nothing to show for the money which has been spent on it. Before overseas travel is considered it is important to think where in the scheme of this could that money be better spent as far as your goals are concerned. Other debts such as a mortgage, car repayments, and hire purchase repayments must all take priority and this is where any surplus cash should go. To go on holiday while having these debts hanging over your head is completely irresponsible. If this is you then you are heading for financial hardship.

Cryptocurrency

I have said it many times previously; “Only purchase cryptocurrency with your discretionary spending money.” In other words, money which you can fully afford to lose. Money which is set aside for household bills such as the rent/rates money or power should not be used for purchasing cryptocurrency. If you bought bitcoin and lost it all, would that cause you undue hardship? is the question which will determine whether you should go ahead with your purchase. It is also worth remembering that cryptocurrency wallets can be hacked and you can also lose money this way. It is also a good idea to point out that investing in cryptocurrency should never be a substitute for investing in your country’s retirement scheme but rather is something treated separately.

Electronics (TV, Laptop, etc)

There are items which are classed as needs and wants. Needs are things such as rent, power, food and grocery items, car expenses, etc. Wants are luxury items which should only be bought with discretionary spending money. Borrowing money for household goods is called consumer debt. You are borrowing money for items which lose their value over time. If you are borrowing money to pay for your needs then there is something seriously wrong with your household balance sheet and making an appointment with a budget advisor is the first step toward getting back into the black.

Furniture

As with other consumables you should never borrow money for household furniture. It is better to pick up cheap stuff from a charity shop than to go into debt for the sake of impressing your peers with nice stuff which is what you are basically doing. Some folk are so focused on accumulating stuff rather than accumulating assets that they never get around to achieving any kind of financial success because there is always something they want to buy. Once something is paid off they look for something else to buy on credit. It becomes a never ending cycle of debt and in the long term all of the interest payments add up to a huge sum of money.

Pets

An absurd amount of money is spent by some pet owners per annum; namely dogs and cats. It is one thing spending your discretionary money on your hobbies and pet ownership is one, but it is another to use borrowed money to pay for it all. I have seen some people spend a lot of money on vet bills for cats and dogs when the sensible thing to do would be to have the animal put down. I was told of someone who spent a grand on vet bills for a cat only for it to die a few weeks later. Now you have to think what would you have done with that kind of money? It could have been used to pay off a mortgage if you have one or some other debt, or have been invested into some mutual funds. 

We all have a choice to spend whatever discretionary income we have and each choice has different outcomes, therefore the trick is to invest your money into something which will give you the best kind of outcome for your personal circumstances.

www.robertastewart.com