Quick Answers To Frequently Asked Questions (FAQ)
Investment Strategies
How can I start investing for a secure financial future?
1. Determine how much money you have avaliable to save & invest.
​
2. Take at least 10% of that and invest it in the highest-yielding cash-equivalent option available. The Wealthfront Cash Reserve account is an example of this. As of April 19, 2025, it pays you 4% interest with no risk of losing any money and it has instantaneous withdrawal ability. It is essentially a checking account, but pays you 40 times more interest (compared to a checking account's current 0.1% interest rate). It is also free to use, just like a checking account. I currently use the Wealthfront Cash Reserve account as my high-yield cash equivalent, and I highly recommend it.
​
3. Take the remainder (potentially 90%) and invest that in the highest dividend paying safe value stocks that you can identify. These will be stocks wth high dividend yields (DY) and low price to earnings (PE) ratios. Additionally, these stocks will be in industries that have been around a long time and are stable (i.e., oil & gas, mining, etc.) Reinvest the dividends earned in the same stocks or into better stocks that you later identify. I currently use Robinhood to invest in individual high dividend paying safe value stocks, and I highly recommend it. Robinhood is free to use, and very user friendly. I have a Robinhood Gold membership which costs $5/month or $50/year, because it allows you to invest your money before the transfer from your bank is complete, and you also get paid a higher interest rate on uninvested cash, but the free version is also still a great option for investing in individual stocks that meet our criteria.
​​
4. The high dividend paying safe value stocks you're invested in should increase in value over time. If you identify better high dividend safe value stocks to invest in, sell your old stocks and take the capital gains, and reinvest the proceeds into the better stocks that you have identified.
​
5. Keep increasing the amount of money that you have invested in stocks that meet the above criteria until the dividends you receive reach the amount that will give you financial freedom (i.e., freedom from having to work).
​
For further details and specifics, please read our blog posts on investing.
Personal Finance
What are some practical personal finance tips to manage money effectively?
1. Figure out exactly what your income and expenses are. This should be done for at least a monthly basis, but preferably a weekly basis (for monthly expenses just divide by four and for bi-weekly paychecks divide by two) for a more detailed understanding.
​
2. If you're in debt (even a home mortgage, although that is the least bad form of debt), get out of it as much as you can. Above all, never be in credit card debt. That can ruin your life and make you spend a good amount of your income just to pay the interest on that debt. In that case, you will be trading your time (which is your life) to make money to pay for things that you don't need, and in most cases, don't even really want. Figure out ways to reduce your weekly or monthly expenses. What things do you spend money on in a typical week that are not adding significant value to your life? For example, could you make coffee at home instead of getting it from a coffee shop? Do you use all of the streaming services that you pay for? Cut out all unnecessary expenses and waste nothing. Simplify your life and spend more time doing your favorite activities that are free or cheap. It is important to live within your means, or even below your means. This will reduce your stress, and guarantee that you don't get into severe financial difficulties. It will also allow you to invest more of your money into high dividend paying safe value stocks and reach financial freedom faster.
​
3. Figure out ways to increase your income. Increase your value at work. Ask for a raise, if you think you deserve one, or apply for that promotion. Do you have a useful skill that you can use in your free time to generate income outside of your job? For example, can you do taxes, or are you handy and can fix things? Advertise your services cheaply or through word of mouth. Side work like that is a great way to supplement your income. Also, maybe you have had an idea for some type of business. Stop delaying and start it in your spare time. It may only add a small amount of income at first, but over time, with hard work and dedication, it could eventually earn you more income than your current primary source (i.e., your job).
​​
4. Reduce your weekly expenses and income to the amounts that will allow you to reach your weekly investment goal. The more money you invest intelligently, and the sooner you invest it, the sooner you will reach financial freedom.​
​
​
For further details and specifics, please read our blog posts on personal finance.