If you have a credit card, you may have noticed that the required minimum payment increases or decreases as the balance that you owe increases or decreases. This is called revolving debt. If you are using your card, running up a balance, and paying only the minimums each month, you probably curse this state of affairs. If you are attempting to pay off a credit card and not accruing more charges, you might think this is a bonus. As long as you work hard to pay down the card, slowly but surely your minimum payments will go down, leaving you more money at the end of the month. Lowering your monthly bills is always a good thing, right? Wrong.

The trade off for your temporary lighter load of bills costs you a lot more money in the long run. Credit card companies love to make money off of your interest payments as you pay them back for the money they so willing loaned to you. This is why they change the minimum payments as your balance goes down. They know that this is a surefire strategy to keep you in debt longer, and paying much more in interest charges. What is your solution to outsmart those crafty credit cards? If you can make your minimum monthly payment each month, why change it? Keep chugging away at the same rate, even when your minimum due is a little less. You will save yourself all kinds of money on interest payments, not to mention dig yourself out of debt much faster.

If you read this blog, you know I am a huge fan of both Warren Buffet and Ben Graham (author of 'The Intelligent Investor', the bible of sound investing).

One of the concepts of value investing is the concept of a 'margin of safety' - or, to purchase at a price which provides a cushion of safety.

Brief Overview

Graham's formula is as follows:

Intrinsic Value = "normal" earnings x (8.5 + (2 x expected 5 yr growth)) x (4.4/20yr AA corp bond)

Sound confusing?

Then don't worry. A smart guy over at Old School Value has created an Excel spreadsheet that will download all the necessary data for you, and perform the calculation. A double threat spreadsheet!

Download it here.

Credit Suisse lost billions of dollars last week. I don't think those millions of dollars would have been lost if they used their education instead of two of the seven sins (e.g. Greed, Sloth). 'Don't invest in something you don't understand' clearly was thrown out the window by oh-so-many banks around the world.

Education about investing is very important because it allows you to build a framework of knowledge from which you can utilise to drive your investment decision making.

As investors, it is our responsbility to be aware of the risks, potential rewards, implications, and costs of all of our decisions.

The good news is you don't need to go to business school to aquire this knowledge. The Internet and the Bookstore are your friends and with a small investment of your time and effort, you can get educated fast.

Morningstar, one of my favourite resources for all things educational, recently published an article entitled 'A Beginning Investor's Reading List'. It is a great summary of books that really capture the essence of what we are trying to do here at Slow Fortune. This article really excited me because I had not read four out of six, and I am eager to read them.

The Only Investment Guide You'll Ever Need
by Andrew Tobias

Buffett: The Making of an American Capitalist
by Roger Lowenstein

The Bogleheads' Guide to Investing
by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf

A Random Walk Down Wall Street
by Burton G. Malkiel

Stocks for the Long Run
by Jeremy Siegel

All About Asset Allocation
by Richard A. Ferri