Posted By:
Al C.risafulliOoh.
I'm not one to give investment advice, but here's how I do it.
1. I take my money.
2. I figure out how much I need to live (mortgage, beer, insurance, groceries, beer, clothes, beer, etc.)
3. Whatever's left, I figure out how much I want to invest in traditional, income-producing things like mutual funds and whatnot.
4. Whatever's left, I figure out how much I want to spend on ancilliary spending, like dinners out and beer and stuff for the kids and movies and beer.
5. Whatever's left, I spend on cards.
I try REALLY hard not to consider cards an investment. I mean, they probably are, to some degree, but since I have no intention of selling the ones I want to keep, and I usually want to keep the ones I buy, I have to liken them more to pieces of furniture than I do to income-producing investments. Plus, if I don't consider them to be an investment, it keeps me from getting upset over them when a "hot" set suddenly turns cold, or when I overpay for something I really like.
-Al
edited for beer.