The Golden Rule... of Investing: Buy Low, Sell High

It sounds intuitive if you want to make money in the stock market, or anywhere else for that matter: buy low and sell high. The difference is your gain (or loss) on that investment. Even though it sounds intuitive, people often do not take advantage of the opportunity. The typical reaction to a slower economy is to sell stocks before the losses get any worse. This may be a good rule of thumb to avoid further losses if you are nearing retirement or are depending on that money in the near future, but what about long-term investors? This presents a great buying opportunity. The recent recession is obvious when looking at the Dow Jones Industrial Average over the past five years. Investing at the market low in March of 2009, would have resulted in some pretty hefty gains as of today. People often choose to stay away from riskier stock investments during a slow economy due to their volatility, but for the long-term investor, that can be the opportune moment to invest.

Quick Tip: Take Advantage of a 401(k) Match

Most employers offer a matching contribution to a 401(k) account up to a certain percentage of your gross salary. Whether it is a dollar for dollar match or a 50% match (i.e. $0.50 contributed for each $1.00 you contribute), that is money ready to be handed out to you simply for setting aside money for retirement. And that is something that you should be doing anyway. Bloomberg reports that 91% of 401(k) participants belong to a plan that offers a match. Make sure you are enrolled in your employer's 401(k) matching program and increase your contribution percentage to the maximum matched by your employer. The earlier you start saving, the more you will have for retirement.

How To Improve Your Credit Score

A few tips to keep in mind if you're trying to improve your credit score.

• Only apply for new credit when absolutely necessary. Too many new applications for credit can hurt your credit score.
• Close any unused credit cards but only if they were recently opened. This goes along with the previous tip to help you ensure you do not have too much recent credit open.
• Keep any old credit cards open even if they are unused. Not only is too much recent credit bad for your score, but having a longer history of credit is beneficial for your score.
• Avoid transferring debts to other accounts. This, too, creates more recent credit accounts rather than keeping older accounts. Paying off debts while under the original account is better than transferring it and then paying it off. There may be a trade-off with this since you may be able to lower your interest rate by transferring the balance and, thus, making it easier to pay off more quickly.
• Pay all bills and debt payments on time.
• Check your credit report at least annually to ensure there are no mistakes. Correct any mistakes you may find with the credit reporting agencies.