Category Archives: Finance

Playing The Markets Pt. II – Netflix – $NFLX

A little while ago I spoke about my tiptoeing into the stocks, and since then have played a bit with Apple (AAPL), Michael Kors (KORS), and Lands End (LE).

With the 7-to-1 split yesterday of Netflix (NFLX), it made it a prime time to get in with Netflix.

Instead of laying out $700 for a share of Netflix, I was able to put down just a few hundred dollars and get my foot in on Netflix.

Thankfully it is up 10% at the open today, making back a little from my current losses on KORS, but that is all half the fun of playing the markets!

Let’s hope that NFLX continues to soar!

Playing The Markets

Late last week I reopened one of my trading accounts and started putting money into stocks again.

You always need to remember to buy enough shares to make it worth your money.
For example if it costs $7 to buy and $7 to sell (as it does on Scottrade), you need to make $14 on your shares before you start to actually make money.
So if you buy penny stocks, you’d need to buy thousands of shares to make enough of a move to earn that money back.

A good example is Apple. If you buy only a single share, at $120, you need it to go up to $134 before you begin making money.
On the flip side, if you buy 9 shares (costing you $1,080 before trading fees), the shares only have to go up to $121.50 (or so) before you start to make money.
Yes, you obviously have to have more money to throw into it, but you have potential to make a lot more money, not just because of the more shares, but also because you make up your loses a lot faster.

The flip side of course is if the stock goes down…you have the $14 lost + whatever the difference in the shares are.

I know that I go in multiple times a day to see how my shares are moving, and it drives me crazy.

And being that I am promoting buying multiple shares of things, I only own a few different companies at this time, since $ plays a key factor in buying more!

Managing Money During Low Gas Prices

Isn’t it great? Gas prices are at a low we haven’t seen April 2009, averaging $2.04 (as of 1/22) nationwide.

While it is great for travel, and for driving to/from work, it can mess with your overall spending.

For example, if you normally designate $100 a month for gas in your budget, you may only be spending $80 now.

The question becomes, what do you do with the extra $20?

Do you spend it? Do you instead just adjust your budget, allocating $80 a month for it?

The best suggestion I can offer: Leave your budget at $100, and pocket the savings.

I don’t think prices will hit the $4 mark again anytime soon, but if they start to creep back up towards $3+, it won’t hurt your bottom line, as the money is still there and waiting.

P.S. If you don’t have a monthly budget…then it is something to think about!

Mint And Why You Should Create An Account

I have had a Mint.com account now since earlier this year.

mint

The usage that most people use it for is to manage their budget, and set spending limits on certain things (such as clothes or other things that tend to get out of hand).

There are two features that I primarily use that I would recommend for everyone.

Net Income

I like to be able to look as the month progresses and see how my spending levels out with my income. Some months I come closer to the middle line (such as months when big bills, like auto insurance, is due) and some months I splurge too much (hello Xbox One) or am a great saver (I wish these would come more frequently….hello Amazon :-/ ).

Credit Score

They give you a free credit score every few months, without having to file any paperwork or anything. Simply press a button, and together with Equifax (one of the Big 3 credit reporting company) provide the free service.


Mobile App

On a side, and final, note, their mobile app is pretty good as well, giving you a way to keep track of money flow wherever you are.