Macho Money Definitions - What Is A Bond?

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Macho Money Definitions - What Is A Bond?

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vid_whatisbond.jpgWhat is a “bond?” No, not a secret agent from England, but an investment tool used to grow wealth.  According to the Wall Street Journal, bonds are a form of debt. Bonds are loans, or IOUs, but you serve as the bank.  You loan your money to a company, a city, the government – and they promise to pay you back in full, with regular interest payments.

Pretty understandable, but for greater detail and examples, click on the video and listen to Scott Halliwell from USAA explain.


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How Much to Spend on Christmas Gifts

RobSitePic.jpgWhatever your Winter Holiday tradition, now is the time when many cultures have historically livened up the dark days of winter (in the Northern Hemisphere) with celebrations of community, charity, and gift-giving*.  Going into debt, however, should not be a part of your tradition.

How much should you spend on Christmas?


I'm big on using percentages when budgeting.  Except for the really, really poor or really, really rich, it makes sense to me that if Martha gets paid 50% more than George, then Martha can spend 50% more than George.  That generally goes for housing, cars, or Christmas presents. In other words, don't try to “keep up with the Joneses,” especially if you get paid less than the Joneses.  That's the idea behind the 60% Budget: keep regular, monthly expenses down to 60% of your gross income, so you can save 10% each towards retirement, long-term savings, and short-term savings; the last 10% is 'fun money' for Starbucks, beer, wine, pizza, McDonald's, toys, etc. Ideally throughout the year you've saved up enough in your short-term savings to pay for Christmas, even after you've paid for oil changes, shoes for the kids, and a trip to the beach over the summer.

 



 

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