I was reading an interesting article on SmartonMoney.com that
listed some common money excuses people use.
Let's go over some of them each day this week.
Excuse #1 - "If I earn interest, I have to pay more taxes."
My Answer: Don't get preoccupied with taxes when it comes to
investment returns. For many of us, making more money with our
investments should be the goal, not avoiding paying more in taxes
by possibly foregoing better investment opportunities.
Excuse #2 - "At my age, it's too late anyway."
My Answer: Don't ever start thinking in this negative way. Remember
my dad's barber friend who bought his first house at age 77. That's
the right mentality! Compound interest from dividend stocks kicks
in sooner than you think, so don't ever tap out.
Excuse #3 - "Why save money? You can't take it with you when you
My Answer: This is normally the rationale for those around us that
have racked up the most debt. I personally would rather create a
positive legacy rather than one where you burden your loved ones
with all your poor financial habits.
Excuse #4 - "We're only young once!"
My Answer: I never stop believing I'm young, and there's no reason
to waste money just because you want to stand by an "only young
once" mantra. Ask anyone that is in their 30′s and 40′s and they
will tell you about being a bit too foolish with money in their
early earning days.
Excuse #5 - "But it's only zero percent interest!"
My Answer: Yes, the "free money" myth is super popular when it
comes to borrowing these days. But what about the obligation of
making monthly payments once you make a big purchase you likely
don't need? There's no such thing as free money, regardless of
We'll do more of these as the week rolls on. Getting back to the
markets, Apple (
) shares opened about $20 lower this morning on the Steve Jobs
health concerns (as we discussed in yesterday's e-mail). The stock
has bounced back a bit following the lower open. Emotions are
always high on the first day of the stock's reaction to potentially
bad news. As an investor, it pays to remember how stocks react to
different news and how best it would be if you just remained on the
sidelines for a couple of days, rather than throwing yourself in
the middle of tremendous trading volatility.
Shares of Comerica (
) were lower today following the company's earnings results and
news of the company's small bank acquisition, Sterling Bancshares (
). Other financials went lower as well, including BlackRock (
) and PNC Financial (
). On the flipside, the farming and mininq equipment space
continued to propel higher. Caterpillar (
), Deere (
), and Joy Global (
) all lead the way higher. Elsewhere, we saw a bounce in fast-food
restaurant plays McDonald's (
) and Yum Brands (
). Lastly, Wall Street upgrades helped lift shares of Qualcomm (
) and Lockheed Martin (
Please check out
if you are interested in pre-ordering my book "Be a Dividend
Millionaire." The e-book is due out in mid-February and the print
version will be out May 12. And as always, check out our
Best Dividend Stocks List
for the top dividend names to put money into right now.
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here