Today during class we talked about the difference between passive and active investing again. In this article, Mr. Hallam wrote about how the Couch Potato portfolio is better than Hedge Fund portfolios. Couch Potato portfolios are very simple to manage, all you have to do is balance your stocks and bonds at the end of every year, and they still manage to make more than hedge funds which usually fail. The index (used in passive investing) is basically made up of every stock in the market, so nobody manages it for you and nobody sells or buys stock. This is a lot less riskier than active investing because you don't have to predict direction of the stock market. So the best thing to do is to keep a balanced portfolio which has the percentage of bonds matching your age and the rest stocks, as shown in this article.
My personal spending has been going very well. This past weekend I spent less than ten dollars because I only left the house once to buy folders and fruit. I personally think I've been doing very well with my personal finances because I really don't spend very much. During the week I don't usually spend very much since I bring lunch to school and I don't really need to buy anything else. One of my neighbours also asked me to feed her cats twice everyday for a month for ten dollars a day, so by next month I will gain around 300 dollars from doing that. I probably won't spend that money because my mom will most likely make me put that money in my savings account.
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