Do you know your Return on Spending?

You may have heard of return on investment (ROI), but what about return on spending (ROS)?

Return on Spending (ROS) is a metric that measures the financial return on non-investment expenditures.  

Ok, but how do I generate a return on my non-investment spending?

If you use a credit card with cash-back rewards to make purchases, then you can monetize the financial benefits of “paying later” to generate a return on your spending.

To learn more about ROS, including how to calculate and the positive impact it has on your Purchasing Power, please read on.

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How to minimize fees to maximize your big money returns

As referenced in my new book Making Big Money Decisions and recent blog posts, transaction fees can take a big bite out of your returns. The good news is that the costs for holding investment funds and selling a house in the USA continue to decline, allowing you to keep more of your money. Since these investments are usually large, even small differences in the fees you pay can add up to significant amounts of money. If you are interested in finding out more about these transactions costs and tips for ensuring you are paying the lowest fees, then please read on.

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How biased are your information sources?

As a personal finance author and advocate, I do my best to create useful content based on unbiased information. I’m able to do this because I don’t take compensation to promote products and services offered by others so I’m free to “tell it like it is.”  A benefit of being financially independent.

A financial services company or advisor that advertises or sells specific investments or brands, may have an inherent bias and conflict of interest. In other words, if an advisor is compensated to push specific products or services, then they are biased. This doesn’t necessarily mean you are getting ‘bad’ advice, but you may not be getting the ‘best’ options.

When it comes to media sources, even financial media, there are different degrees of bias. If you are interested in expanding your media literacy by learning more about news and information biases and how to ensure you’re getting the most impartial information, then please read on.

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Are your investments outperforming the market?

How do you know if your investment portfolio is performing better (or worse) than the market?

The answer is your investment alpha.

Alpha is a measure of an investment’s performance compared to a benchmark, like a market index.

If your investments are not meeting or exceeding your benchmark(s) over a time period, then you may need to reevaluate your investments and strategy.

As referenced in my book Making Big Money Decisions, investing in underperforming assets generates considerable opportunity costs and suppresses wealth accumulation. Use the content in this post to ensure you’re getting the best return on your invested money.

By reading this post, you will learn why alpha is a key performance indicator for managing your investment portfolio, and how to calculate and use it to optimize your investment strategy.*

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16 online resources for making big money decisions

Statistics on the state of personal finance show that many adults, particularly young adults, struggle with financial literacy and are concerned about their ability to fund life goals like buying a house and retiring comfortably.

One way to overcome these concerns is by making the unknown known through financial planning and money management. Like many things in life, getting started is probably the hardest part. Time is an essential element in both life and personal finance, so use it to your advantage by starting your planning as early as possible.

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