Thrifty Investing!

What is thrifty investing to me? I would say it’s finding deals and yields worth your risk tolerance. I pay attention to dividends, stock price, P/E Ratio, and Book to Price ratios. I also invest in down times, picking up the deals. When people sell and you know it’s a good company, it’s a great time to get in.

I am a believer that, time in the market is better than timing the market. Sometimes it works out that, you enter a position, it goes lower and lower, so you panic. Bad investment? Not necessarily. Especially if you believe in the company and the financials are solid. Just keep buying, lower your average, and wait for the turn around.

A way to be time thrifty, use Index Funds. Buy index funds once a week, once a month, or however often you want. These index funds capture parts of the market, or the whole market. My personal favorite being SPY, the S&P 500 Index fund from State Street Global Advisors. You can find Index Funds for the Nasdaq, or the total market as well.

There is a term, KISS. Keep It Simple Stupid. Index Funds may be boring, but they get the job done! Another investing tool that you should utilize, US Treasury bills, bonds, and notes. These investing products have the backing of the US Government as well as an upfront yield. You know what you are getting for the most part. You should still read up and learn about Bonds, Bills, and Notes. It will help you cut through the jargon.

There are several ways to save money and still enter the market. I think a healthy balance of investments and savings are a great way to make sure that emergency fund is healthy.

What are your top ways to stay thrifty in the market?