Thursday, November 18, 2004

Assets

I'm still in a holding pattern waiting for my last trade to settle in my trading account. I also mailed in a deposit that will bring my account up to the amount qualifying for margin. I won't trade on margin (I think it's too risky especially given my training and experience.) It will let me trade without waiting three days to settle - I'll be able to execute one trade after another.

This waiting is icing me! I'm losing my nerve!

Another definition:
According to Rich Dad, Poor Dad" an asset is anything that puts money into your pocket. Your home doesn't qualify (that's an asset on the bank's balance sheet unless you have paid off the mortgage) and your car doesn't qualify (even if it is paid for it depreciates in value and costs money to insure and maintain.) One could argue that these things enable us to earn a living, but for the purpose of this discussion, they don't qualify as assets.

Making Money
Today is payday. On payday, I take my clothing and personal allowance money and deposit it in my trading account (unless I have actually profited this week in the stock market.) I did make money in the stock market (not paper gains but gains from a sale.) Since I don't need anything this week and the amount is my trading account is small, I'm going to deposit this money this week.
This ties to another concept I learned in "Rich Dad, Poor Dad." Your assets should pay for your luxuries. Your salary should pay your non-discretionary expenses and buy assets. I'm going to start making myself spend some money that I earn from my assets. I don't want to end up warped!!
So - I bought 50 more little green employees today!!

Saving Money
The company where I work held a nice company lunch for us today. It was run to get together with co-workers without having to pay for lunch! I stayed out of stores and have come home to work on redecorating the bathroom. A day without having to spend is a very good day indeed!! A day spending money that has been set aside to spend is also a good day and a lot of fun! I'm heating up food for dinner that I made several days ago. It's one of our favorite dinners and it gets better as leftovers. We really enjoy it and call nights like this "free dinners." Free from more spending and free from lots of cooking and cleaning - it's a real pleasure!


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