Hi All,

Our posts have been educational recently. This one has more of a practical bent. Here are four things we’re doing to build and create wealth. You can do all of them are relatively painless and can be implemented without a whole lot of time commitment.

1) Selling Blog Links. As you’ve probably gathered by now, this blog is a moneymaking venture for us DINKs. One of the ways we make money blogging is by selling links on this blog to finance related companies who are looking to improve their search rankings. Well, we decided to start selling link on Miel’s travel blog as well. We don’t anticipate much more than 5 or 10 bucks a month, but that’s way better than nothing. Her blog is here. Of course, you need a blog to do this, but you if you are up for it it can be a great money making opportunity. Miel updates hers once per month, so there isn’t a ton of effort put into it.

2) Moved some cash from savings into bonds. We had $500 bucks sitting in a savings account. While savings accounts are great for liquidity and convenience, interest rates are absolutely the pits these days. So, I moved the funds over to our brokerage accounts and bought a batch of General Electric Baby Bonds. These are essentially bonds that have been “cut” to act like preferred stock. The upside is they only cost $25 – hence the term “baby bond”. They also yield 6.68% and being bonds are safer than stocks. If you’re interested, the ticker symbol for these little babies is GEA. Another bonus is they trade like a stock, so they aren’t complicated to buy.

3) Buying stock. Speaking of stock, we’ve set the goal of saving up $4,200 to invest by the end of the year. We have $2,600 hundred banked right now. We are considering taking the positions in the following companies:

1) Centurytel, Inc.

2) Nokia Corp.

3) Exxon Mobil Corp.

4) Ruddick Corp.

Right now we are favoring Ruddick Corporation. They own the popular brand of Harris Teeter grocery stores. The company is profitable, pays a modest dividend (1.78%) and we’ve found their stores to be clean, well stocked and generally offering fresh and high quality food. The downside is Ruddick has a pretty high debt to assets ratio, so we’ll have to do some analysis before we commit to buying.

If you want to get into stocks and don’t have a lot of money, try going here, here and here.

4) Misc. As always we’re still maxing out our 401ks, buying savings bonds and silver bullion! You can purchase these sorts of assets for a minimum of $25. They’re great if you’re broke.

Hope some of this helps. If you are doing anything you feel is particularly helpful in building wealth, please don’t hesitate to drop us a note. I for one, will read them with great interest.

Best,

James

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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