Why should we learn from Warren Buffert ?

Warren Buffet has always been the person whom people look up to when it comes to stock selections. Back in the 1980s, the purchase of the Coca-cola, Wells Fargo, and the American Express proved that he had a sixth sense in choosing stocks. In the last two years, Warren Buffet again proved that his sharp instinct in investment. I still remembered that he sold off all his stakes in China Oil in the peak of year 2007. Then, many people questioned about his action and mocked at him. As the history proved that he was doing the right thing, the stock price of China Oil has dropped significantly since Buffet sold his stakes. Lately, Warren Buffet once again proves himself the unique way in term of investment. With the large amount of cash on hand, he bought many sweet and bargain stocks in Goldman Sachs, GE, Morgan Stanley, and many others. I need to learn from him in my financial investment in the future.

Ready for Great Depression

Tanya and I have been discussing about the rescue plan lately. Although we are not favor for the 700 billion "bail-out" plan, we don't see any other options or measures to prevent this financially disaster happening except to support this plan. Anyway, the House just rejected the plan, and the Dow drops 600 points. So, I guess many American need to be ready for the upcoming job cuts and foreclosures.

Free Debt Tool

I know that Debt is a big problem in US. Especially in the bad economy right now, many people struggle to pay off their debts. I came across an article that talked about an Excel file that can help people to see the different methods to pay off their debt. I think it's pretty cool.

Download the File here

This file contains two worksheets:

1. A debt reduction calculator, which allows you to list your debts, their balances, interest rates, and monthly payments.
2. A payment schedule telling you which bills to pay when.


Thank you for the website Get Rich Slowly for this article.

Financial Planning

After talking about the spending habit, I think it's a good time to talk about saving for retirement. We are not professional financial planner, however, we try to educate ourselves enough to learn the principal of saving. We save 12% of our income toward our 403(b) account, and we will try to max out our Roth IRA contribution limit. Based on our current trend, we should be able to have enough money for our retirement, unless the inflation is more than 10% per year for the next 60 years. Anyway, I found a good quick and easy article to remind some of the basic financial principles.

Quick Retirement Fact

Tool to calculate your current saving goal

Again, the most important thing to reach a financial goal is to develop a saving habit and control spending.