This is a terrific website on investing.
Go to www.ifa.com. He also has a great book that I would recommend buying. It is called the "Index Funds:The 12-Step Program." Another must have is MorningStar's (www.morningstar.com) book called, "The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market." You can find it by going to this link, http://www.amazon.com/exec/obidos/tg/detail/-/0471269654/qid=1130611483/sr=8-2/ref=pd_bbs_2/104-8357618-0855915?v=glance&s=books&n=507846.
For anyone that is seriously interested in learning about how to invest, look into these books and the ones that are listed under my favorites.
Saturday, October 29, 2005
Friday, October 28, 2005
Savings lost by driving and not walking
Rexburg is a small city located in the north east section of the state. There are 11,000 students that live here, and a good portion of them have a car here at campus. The majority of the students are single and live with in a half of a mile from the school.
The average walking time to get to school from my house is 25 minutes, I am located a little over a mile from school. The average walking time it should take students is 13 minutes.
Our school is meant to be a walking campus. That means that the majority of students are within a very close proximity of campus. There are not enough parking spaces to accommodate all of the students that drive to campus. Because the number of parking spaces are so few, students drive around looking for someone to leave, so they can park and head to class.
My reason for writing this is to inform them, and others that read this, of the money they are losing by driving everday to campus. Gas here is about $2.80, that means for an average 10 gallon car it would cost $28 to fill up. With all of the driving around campus and then to the stores, you are looking at having to fill up twice a month. The amount of cash that will be spent for that month is $56. If we mulitply $56 by eight months we have a total of $448 used on just gas.
Lets take that $448 dollars and see what that would equate to in 10, 20, and 30 years from today with an APR of 3%.
For ten years that is a loss of: $602.07
For twenty years that is a loss of: $809.14
For thirty years that is a loss of: $1,087.41
For the first ten years you would have a profit of $154.07, not to shabby for doing nothing and adding nothing to it.
For the next ten years that profit will be at $361.14.
For the final ten years, the profit will now be at $639.41
Understand that I used an APR(annual percentage rate) of only 3%, this percentage can currently be found at many banking institutions around the USA.
If we had changed this percentage to the expected 8% yield, that the "experts" are perdiciting will be the average for the stock market, the numbers would be quite different.
At the end of thirty years you would have a profit of $5,495.92.
The seemingly simple and inexpensive trip back and forth to school is no longer so inexpensive. You will have forgone $5,495.92 in potential savings!
So next time you are tempted to drive somewhere, where you could have easily walkted too, remember the potential savings that you are burning up!
The average walking time to get to school from my house is 25 minutes, I am located a little over a mile from school. The average walking time it should take students is 13 minutes.
Our school is meant to be a walking campus. That means that the majority of students are within a very close proximity of campus. There are not enough parking spaces to accommodate all of the students that drive to campus. Because the number of parking spaces are so few, students drive around looking for someone to leave, so they can park and head to class.
My reason for writing this is to inform them, and others that read this, of the money they are losing by driving everday to campus. Gas here is about $2.80, that means for an average 10 gallon car it would cost $28 to fill up. With all of the driving around campus and then to the stores, you are looking at having to fill up twice a month. The amount of cash that will be spent for that month is $56. If we mulitply $56 by eight months we have a total of $448 used on just gas.
Lets take that $448 dollars and see what that would equate to in 10, 20, and 30 years from today with an APR of 3%.
For ten years that is a loss of: $602.07
For twenty years that is a loss of: $809.14
For thirty years that is a loss of: $1,087.41
For the first ten years you would have a profit of $154.07, not to shabby for doing nothing and adding nothing to it.
For the next ten years that profit will be at $361.14.
For the final ten years, the profit will now be at $639.41
Understand that I used an APR(annual percentage rate) of only 3%, this percentage can currently be found at many banking institutions around the USA.
If we had changed this percentage to the expected 8% yield, that the "experts" are perdiciting will be the average for the stock market, the numbers would be quite different.
At the end of thirty years you would have a profit of $5,495.92.
The seemingly simple and inexpensive trip back and forth to school is no longer so inexpensive. You will have forgone $5,495.92 in potential savings!
So next time you are tempted to drive somewhere, where you could have easily walkted too, remember the potential savings that you are burning up!
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