Money

Long-Term Strategies To Amplify Your Retirement Savings

by Benjamin Roussey|Posted on March 5, 2022 | 3 minute read | Advertiser notice

In order to plan for retirement, it is always better to start saving early on so that you can maximize the benefits of wealth compounding over time and help combat the tough environment all Americans are living in now via supply chain, inflation, high energy costs, and so forth.

However, even though you might have started saving later on in your business or professional career, it might be reassuring to know that there are plenty of folks out there in the same boat as you. The fact is, it is never too late to get started and there are certain steps that you can take to enhance your retirement savings.

The following tips are worth considering, regardless of your present stage in life, so that you can improve your savings for when you need them most – at the time of retirement.

Start Your Savings Mission Today

This is especially important if you have decided to start putting money aside for retirement. If you can start saving as much as possible now, you can leverage the power of compounding in your favor. The earnings flowing from the financial assets created from your savings, using compound interest, can be reinvested in order to generate even more earnings.

However, as experts say, it’s critical to start saving right away once your mind is made up. At the time of retirement, the strength of your financial position is directly related to how early on in life you began saving.

401(k) Contribution

In case you qualify for a traditional 401(k) plan that your employer offers, it might permit you to contribute pre-tax money, which could be a distinct advantage. Suppose that you fall in the 12% tax bracket and have decided on contributing $100 per month (assuming that your pay period is monthly).

Since your contribution comes from your paycheck prior to federal income taxes being assessed, your take-home pay is reduced by only $88 (subject, of course, to further deduction by way of applicable local and state income taxes as also Medicare tax and Social Security). This implies you can invest more of your income without feeling the pinch as much in your monthly budget.

Take Full Advantage Of Your Employer’s Match

If your employer is willing to match your contributions towards your 401(k) plan, make sure that your contribution is sufficient to give you full advantage of the match. For instance, an employer might offer to match 50% of the contributions of employees subject to a limit of 5% of salary. What that essentially means is if your earning is $50,000 annually and your contribution towards your retirement plan is $2,500, your employer is obliged to pitch in an extra $1,250. Basically, that is free money which should not be ignored which is awesome in this inflationary and high energy cost environment.

Reduce Your Spending

Take a good look at your budget. You may want to negotiate a reduced rate for your car insurance or bring lunch to work instead of visiting a restaurant. The idea is that you should explore avenues to reduce spending without adversely impacting your personal or family’s well-being. The money thus saved can then be set aside to enhance your retirement savings.

Set Your Goal

Determining how much money you need to have available when it is time to retire can not only be revealing but also rewarding. Such an exercise can help you better appreciate why you are saving and the ultimate goal towards which you are progressing. As you continue with your savings discipline, you should be able to feel a sense of satisfaction that you are well on your way to a financially secure life of retirement.

Put Away Extra Money

Have you unexpectedly come across some extra money? Be sure not to spend it or spend as little of it as possible. Each time you get a raise, take your contribution percentage a notch higher. Set aside at least a half of the extra money for your retirement plan. And although you may be tempted to use that salary bonus or tax refund to splurge on a smartphone or a vacation, resist that urge and instead make do with small pleasures that will leave most of the fund intact. You can then use the new money to take bolder steps for improving your retirement savings.

Go Slow On Social Security As You Approach Retirement

This is a very crucial step. Each year that you are able to delay receiving a payment from Social Security, prior to reaching the age of 70, the amount that you receive in future will be higher accordingly. Hence, if you go slow on Social Security, the monthly benefits will accrue quickly and lead to a much better income as retirement approaches.

Money

7 Simple Ways to Earn Extra Cash And Boost Your Income

by Benjamin Roussey|Posted on February 9, 2022 | 3 minute read | Advertiser notice

Having some free cash on hand is always an astute idea, even when times are good. No one wants to be caught flat-footed with no way to get the bills paid. It’s not that hard to earn some extra money in a very short period, but it takes discipline and planning. Here are some strategies to get started:

Sell Used Things on Amazon

If you aren’t using Amazon to sell old stuff, then it’s time to get started. Not only does Amazon have a massive audience of more than 250 million active users, but it also serves as the world’s largest online retailer of everything from electronics to clothing.

If your home is cluttered with products you no longer use but still have value, you can resell them for more cashback into your bank account. With Amazon, you can create listings for your items for free and choose from several pricing options.

Become an Expert on JustAnswer

With so many people looking for answers to questions on the internet, it should come as no surprise that there’s a whole industry built around answering them. On sites like JustAnswer.com, you sign up to be an expert in a specific field and are then authorized to provide answers to particular forms of questions from website visitors.

JustAnswer is one of many sites that bring together people looking for expertise with experts who are willing to share their know-how. No surprises if you’re really knowledgeable about your topic – you’ll make good money.

Find Gigs on Fivver

You can make money on Fiverr, no matter what type of skill you have. $5 per gig is one option, but there are other ways to bring in revenue as well. Fiverr Pro gives you access to the top freelancers on its platform. Regardless of the service you provide, there’s probably a demand for it on Fiverr.

This offers fantastic flexibility for freelancers who want to scale up their services and earn a quick buck. Whether you’re good at writing blog posts, social media marketing or coding HTML and CSS, chances are you will find something that may help you earn some free cash.

Be a Dog Walker on Rover

If you love animals and want to make some free cash easily and quickly, dog walking is one of the best ways to do it. Free up your weekends and earn a few extra bucks walking dogs when you’re not busy. Rover.com makes it easy to be one of those dog walkers and get paid for doing so which can help you whether the storm of inflation and high energy prices.

The pay generally ranges from $15 to $35 per hour based on your experience as well as any certifications or additional training you may have. Of course, this will vary with the dog’s size, how long the job takes, how far you’ll need to travel, and all other factors involved.

Sell Pictures on ShutterStock

Are you a professional photographer? Or maybe an amateur with a good eye for photos? If so, you can make money on both sides of the camera. Sell your photos on sites like ShutterStock and iStockPhoto to earn passive income. For another option, you can check out companies that are looking for photographers to cover various events. You can find a lot of them through Craigslist or by Googling.

Take Online Surveys on Survey Junkie

The secret to getting free stuff and earning a bit of extra cash is always trying new things. That’s why Survey Junkie is a fun site that allows surveys to fit into your schedule. Answer a few short questions online and let them match you up with surveys that suit your needs.

As an online survey taker, you can take advantage of all that free time and make money in your spare time from home! It’s simply an easy way to make unexpected cash without doing much work which cannot come at a more perfect time as costs for goods and food at the supermarket are high and increasing.

Debit Card Cashback

While credit card rewards programs are becoming more enticing, consumers may be missing out on free money that’s right under their noses: cashback debit cards. As a member of these banks and credit unions, you will receive cashback based on the amount of money you spend each month. Take time to compare the best cashback debit cards and choose the one that fits your spending habits, type of shopping, and financial goals.

Money

5 Tips to Become a Multi-Millionaire

by Benjamin Roussey|Posted on January 4, 2022 | 3 minute read | Advertiser notice

Who does not want to be a millionaire? Our capitalistic society has always incentivized the aspiration to make it big, and attaining millionaire status remains a quintessential benchmark of unabashed success.

But the harsh reality is that becoming a millionaire (and more so, a multi-millionaire) is going to be more of a necessity than a mere aspiration, in the foreseeable future. Research studies reveal that millennials might have to continue working well past retirement age if they do not accumulate somewhere between $1.8 and $2.5 million in their working lives. Inflation does not help!

Remember, the biggest reward in becoming a multi-millionaire is not just the money that you earn. It is the combination of knowledge, skills, clarity of thought, ambition, passion, and determination that can help you become a multi-millionaire.

Let me share with you some simple tips that can help you propel towards achieving your dreams of becoming a multi-millionaire. These tips, if followed diligently, can turn you not just into a multi-millionaire, but the kind of person who improves others’ lives while doing influential work.

Be Enterprising

Almost half of the world’s richest people are entrepreneurs. You can open the doors to unlimited earning potential when you hire people and leverage their time to build your own business, instead of trading your own time for money by working for someone else.

Even if you are a part of a new business venture, and not the founder, you can reap tremendous rewards as early employees can often pick up equity in a startup to counterbalance their low salaries.

Be Proficient

Excellence commands a premium, so if you are the best in your field of work, you can demand a hefty compensation for your skills and knowledge. Even though you might still be trading your time for money, that money can be substantial enough to make you a multi-millionaire.

CEOs of large corporations are millionaires many times over, making over fifteen million dollars a year on average. That amounts to a staggering 271 times the annual pay of an ordinary American worker who takes home $58,000 on average and is less than you think when gas prices are high which they are now and have been since the summer of 2021.

So, if you are passionate about what you do and also do not want to take on the risk of entrepreneurship, mastering your craft with complete dedication will pay in the long run, taking you to the top of the corporate ladder and turning you into a multi-millionaire.

Be Far-Sighted

Think long term whenever you are making any business or investment decision. Focusing on minor short-term goals is akin to missing the wood for the trees. Before any major decision, ask yourself how much would it matter five years from now. If it would not, do not give it much thought.

Be Willing to Learn

Do not be like most people who put in the time but not their best effort. You cannot hope to fulfill your dream of becoming a multi-millionaire if you work merely for the paycheck at the end of the month.

Strive to constantly punch above your weight; giving it your best shot. If you closely study the most successful people in the world, they are the ones who do not let their passion wane or dim, year after year. And that comes through very clearly, in the quality of the work they do.

Be a passionate learner ready to gain from developing your mind and constantly updating your knowledge and skills. This will not only help you earn more money, but will also improve every facet of your life.

Be Goal-Oriented

Use pursuit of profit as a means to an end, and not the end in itself. The pursuit of happiness is much more than keeping going after more, without realizing whether it is a worthwhile goal or not, in the larger scheme of things.

Keep your ultimate goal in mind, and then work backward to see what you need to do in order to attain that goal. Set parameters and targets for both work and personal life, writing them down to understand more clearly what you need, to live a life full of money as well as joy and abundance.

In terms of your monetary goals, you must calculate the money you need to put aside for emergencies in addition to the money you require to maintain your lifestyle. There are several ways to invest and store your savings, including a mix of bank, cash, crypto, gold, or whatever else you feel comfortable with.

Money

6 Money-Saving Strategies to Retire Wealthy

by Benjamin Roussey|Posted on November 11, 2021 | 3 minute read | Advertiser notice

With all the chaos that comes with economic hardships, it can be challenging to plan long-term. For many people, it’s easy to save money when times are good but much harder when home prices are rising in states you may want to move to, fuel costs are increasing, wages are not keeping up, and jobs are at risk because of new policies.

When it comes to retirement, it’s essential to start thinking about your financial future while you’re still working. That way, when the time comes, you’ll be prepared for any bumps in the road. Here are some simple yet effective strategies that will help you save for a wealthy retirement:

Work on Your Spending Habits

Reviewing your recent spending history can help you determine where you’ve been overspending, so you can better identify the places to cut back. Study your bank and credit card statements.

Many banks and financial institutions offer sophisticated spending reports that can help you determine which costs you can reduce or eliminate. If you’re working with a financial advisor, they will be able to help you review your spending history in detail and come up with a plan for both saving more money and reducing your costs.

Save the Promotion Money

A decent raise means you can buy a little more each month. But if your salary is already much higher than average, avoid the temptation to make big purchases. Put any money from a raise in your retirement account, rather than spending it on a significant purchase that’s likely to depreciate or become obsolete faster than you can age your whisky. Bigger prizes require bigger paychecks.

Assuming your IRA is funded by a company-sponsored plan, you’ll owe income taxes on the money when it goes in, but not when you take it out – which is something to remember when one of those pesky TV commercials for luxury cars and other baubles comes on while you’re watching the game.

Make Retirement Investment Compulsory

As a busy working adult, you must take a proactive approach to your retirement. Don’t put off saving for the future. And once you’ve started contributing, it’s essential to do it automatically. Automated investing takes the guesswork out of how much you should be saving for retirement. You can have your retirement savings contributions withdrawn from each paycheck and deposited straight into your investment account with some services.

Diversify Your Investments

When you invest money in stocks, bonds, or mutual funds, it is imperative not to put all your money in one place. Instead of putting most of your savings into one investment, diversify your portfolio by putting some money into various investment types.

If you don’t do this, you risk losing everything if the stock goes down in value. A way to reduce this risk is by using safer investments like high-interest savings accounts. These complement stocks and bonds well while also providing some serious returns on your savings.

Compromise on Your Brand Purchase

Sometimes it happens: you fall in love with a product and feel comfortable sticking to it. After all, you can’t really beat the luxury. But unfortunately for your wallet, brand loyalty can cost you money. And we don’t need to tell you that buying brand-name products can be expensive.

People often go for the brand name without considering the actual price versus the quality (or lack thereof) of what they’re buying. But in most cases, the brand you’re buying is overpriced. Of course, you can’t really beat the luxury of premium brands. But don’t forget that even when quality is comparable, the price tag isn’t always that way.

Make Use of Money-Saving Apps

Most budgeting advice starts with the necessity of tracking your spending. Your first instinct is to whip out a piece of paper and start scribbling down your expenses. And you might go beyond the bare-bones (like, $3-$4 coffee at Starbucks) and break down more details (“$2 Octane tea every other Monday”).

Most people lose steam here, though, because it’s too much data to process. An app makes this easier because you can track all your transactions in one place. No need to sweat over whether you should track cashback, too, and it can do the math for you if you want an even more detailed breakdown.

Many of these money apps worth downloading can make you more aware when you spend money, empower you to make smarter spending decisions and even give you the chance to save or invest something in the future.

Final Word

Your retirement savings may not be your most important financial goal, but having your retirement savings grow into a substantial nest egg is critical. The way you save for retirement is one of the most paramount decisions you will make.

Money

7 Easy Ways to Earn Quick Money

by Benjamin Roussey|Posted on October 16, 2021 | 3 minute read | Advertiser notice

Today you have a wide range of choices in terms of earning a quick income online as well as offline. Some freelancers work from home, entrepreneurs who can run their entire business from a laptop, and there’s a whole new world of digital nomads who don’t even need a location-based job. The Internet is overflowing with opportunities on how to make some quick money. Some methods are more likely than others to work. Here are seven proven ways you can earn some side cash quickly.

Online Surveys

If you’re one of the many people looking for a way to make an extra few bucks on the side or looking to earn $1,000 or $2,000 a month, then internet research is for you. Simply put, online surveys and research help companies get direct feedback from real consumers.

For this reason, these types of jobs are typically used for marketing and testing new products and services. They’re also great opportunities to receive payments in the $10 to $100 range which can help you deal with this inflationary environment, higher costs, and higher energy costs. As with all jobs, not all sites or companies are the same. Understanding the different types of survey sites will help you choose which ones to sign up for.

Earn as an Interpreter or Translator

If you’re bilingual or even trilingual, you might be able to make some extra cash. Everyone needs translators and interpreters for their community at some point or another—from immigrants needing help with essential documents to ex-pats coming into the country. Not only will you be able to make money in whatever fashion you choose, but it will also be an opportunity for you to gain new insights into other cultures and lifestyles.

Drop-shipping

Doing drop shipping is an easy way to make money online because you are not required to purchase any inventory or warehouse any goods. Also, drop shipping does not require you to sign up for complex affiliate programs, websites or pay for advertisements on search engines. All you will need is a cheap domain, an e-commerce platform, and a seller account with a marketplace like Amazon, Walmart, Sears, and so on.

Become a Delivery Partner

It’s not exactly a new idea that you can make money from your bike, motorcycle, or car, but more and more companies out there are employing drivers to carry out deliveries on behalf of more established brands.

They’re called gig economy companies because they casually offer their services with flexible schedules, so you’ll be able to earn extra cash whenever you have a free hour or two. With the vast seasonal demand for deliveries over the holiday period, plenty of seasonal jobs should go around.

Drive for Uber

Driving for Uber is an excellent opportunity to pad your pocketbook. You can make an average of $250-$300 per week driving for Uber. This may not be your dream job, but we’re sure it will provide you with some extra cash if you’re looking to rack up some extra dough. Plus, enjoy the convenience of being your own boss, the freedom to work when you want. All you need is a clean driving record, a reliable vehicle, and the desire to listen to music and meet new people.

Make YouTube Videos

If you want to cash in on the video craze, it’s easy to make money on YouTube. The trick is finding a niche that isn’t already overcrowded. You can start by searching for any subject on YouTube. This includes every kind of craft, from metalworking to crochet. Choose a topic you’re passionate about and focus on creating content that appeals to your target audience.

The more specific you can be, the better. The key to attracting subscribers is by offering helpful and engaging videos that give visitors things they want to watch over and over again. Once your channel hits 1,000 subscribers, you’ll be able to monetize your channels with ads.

Create Engaging Blogs

Whether you’re just looking for an alternative way to earn money or you want to create your own passive income stream, blogging can be a salient option. Turn your business skills into profit by sharing advice through a blog. You can touch on any topic, as long as it reveals a lesson that will help your readers.

As you hone your skills and explore the topics that interest you, blogging can become a fun and engaging hobby. Before long, you’ll find that blogging is an opportunity to share your knowledge with others—and perhaps even earn some money while doing so.

Finance, Money

Investing With Little Money: 5 Ways to Get Started

by James Flores|Posted on September 29, 2021 | 2 minute read | Advertiser notice

Wondering if you can start investing with little money?

Absolutely!

You don’t need to be a millionaire to reap big investment rewards. Even with little savings, you can try various ways to grow your money.

We have prepared this guide to help you start investing as a beginner.

5 Ways to Start Investing with Little Money

Follow the tips below to become a smart investor.

1. Save Money Using the Cookie Jar Approach

To begin investing, you need to save some money. Start by stashing $10 to $15 away in a cookie jar every week. Alternatively, you can put your savings in an online savings account.

You may increase this amount as you get into the habit of saving money so that you can move it into an investment vehicle ASAP.

2. Get Help from a Robo Advisor

Robo advisors can take the guesswork out of investing. They ask some questions to determine your goals, risk tolerance, and expectations to help you create a low-cost portfolio of bonds and stocks. They also use smart rebalancing techniques to optimize your portfolio for taxes.

Robo advisors usually charge an annual fee of up to $500 to start investing with little money. In return, they offer automated investment plans to increase your balance.

3. Enter the Stock Market

Today, you can start investing in the stock market with just a dollar without having to pay trade commissions. You should consider investing in companies with partial shares, as it allows you to diversify your portfolio while saving money.

4. Put Your Money in Mutual Funds

Investing in low-initial-investment mutual funds is an excellent idea if you want to start small. Companies usually require you to automate the monthly payments between $50 and $100. You can do this through payroll savings. Discuss how to set it up with your human resources department.

5. Enroll in Employer’s Retirement Plan

If you’re on a tight budget, you can invest 1% of your monthly income into your employer’s retirement plan. See if the company offers a matching contribution.

These are only a few ways you can start investing with little money. The key is to just start somewhere. No matter how tight your budget is right now, it’ll get easier with time and you’ll be happy you took the leap.

Money

8 Pragmatic Ways to Invest $10,000

by Benjamin Roussey|Posted on August 9, 2021 | 3 minute read | Advertiser notice

If you go out seeking financial guidance, the one piece of advice you will receive from everyone without fail is going to be about the significance of investments. But, does the word ‘investment’ evoke pictures of men in suits, stock tickers, and million-dollar deals in your mind? Does it make you wonder how and where to begin investing when you do not have a lot of money to spare?

So here we go – here are some useful tips on how you can start investing in a practical manner with a reasonable amount, say, $10,000.

Reduce Your Debt

If you are carrying a high-interest consumer debt, one of the most pragmatic investments would be to use the $10,000 to pay off or reduce that debt. Consumer debt or credit card debt, carrying a high interest rate, is the scourge of sensible wealth creation. If you are making minimum payments on your credit card outstanding bills, you will end up paying a staggering amount of money in compounded interest.

Savings Account

You can open a high-yield savings account that will earn you a significantly higher rate of interest than a regular savings account. An online bank that does not require a minimum balance in a savings account, would be the pragmatic and safe choice. You can start generating interest on your entire balance without taking any undue risk with your investment. With that said, these banks have a provision for insuring your account with FDIC insurance up to $250,000.

Certificate of Deposit (CD)

If you can commit your funds for a specific period of time, a Certificate of Deposit (CD) may be a more practical investment for your $10,000, with a higher yield in terms of the interest which is ideal when energy costs are increasing as they are now. You must be aware that any premature withdrawals might attract a penalty, and you will need to stay invested for the precise number of months you agreed to, while making the deposit. You can choose the tenure for a term CD, which could be a few months and up to five years.

Real Estate

Investments in real estate are popular with investors because of their immense potential for wealth gain which is fantastic during periods of inflation which is the case in 2021. Although it might seem that investing in real estate requires a great deal of money and may not be feasible with just $10,000 in your pocket, there are new and affordable ways like crowdfunding to invest in real estate. With crowdfunded real estate investments, you can generate a passive income without worrying about property maintenance, tenant management, or litigation issues. Experienced real estate investment teams handle all the nitty-gritty like screening potential borrowers, managing renters, and repairing or upgrading the properties.

401k Plans

With 401k plans, you enjoy tax benefits as you pay taxes only when you contribute, thus reducing your taxable income. This is a Godsend to hear for many because taxes may be increasing on Americans who are already dealing with higher gas prices and higher costs of goods. With that said, it’s one of the easiest options to begin investing in a small or moderate way, and if your employer offers to make a contribution to match your first investment, you can start with an adequate amount that they are willing to match. Most 401k plans offer stocks, index funds, and retirement plans.

Index Funds

The prices for individual shares, especially the blue-chip ones, may seem too high for you when you are thinking of investing just $10,000. To begin with, and with a moderate sum to invest, one of the better ways to invest is with an index fund. The funds keep costs low as they work in tandem with the market benchmarks, thus avoiding any speculative practices. The minimum threshold to invest in some of these funds is quite low, making $10,000 an adequate amount of money to begin investing with. The low costs, simplicity, and diversified portfolios make index funds a safe and pragmatic investment choice.

Robo-Advisors

There are fully automated Robo-advisor platforms that take into account your investment goals and your risk appetite to select a mix of funds for investing your money. If you want to invest your money without putting in the effort and time needed to ensure a balanced investment portfolio, this might be the pragmatic choice for you. Most of these platforms charge an advisory fee of around 0.25 percent per annum, and you can open an account for very little, sometimes as low as $1.

Business Bonds

You can begin investments from as little as $10 in some of the small business bonds, which also yield a return that is higher than investments in most other brands. The lure of a higher yield also entails higher risk, so you must be clear about the extent of exposure you are willing to accept in pursuit of your pragmatic investment goals. Look for business bond investment propositions backed by collateral to cut down on the risk factor.

Lifestyle, Money

10 Wealth Creation Principles That Always Work

by Benjamin Roussey|Posted on June 20, 2021 | 3 minute read | Advertiser notice

A lot of people mistakenly assume that true wealth is simply growing your financial net worth. If you think like that, you could not be more wrong. Wealth is a balanced and holistic concept. In this post, we have listed 10 principles that can help you in achieving true wealth in a deeply personal as well as a purely financial sense.

1. Be Deeply Motivated

You cannot sit back and let luck take over when you want to build wealth. Your motivation needs to come from somewhere deeper than regular external trappings. You need to find a cause that will transform your life and drive you to overcome all obstacles which keep you from attaining financial freedom. Internally driven goals can be:

Charity
Freedom
Growth
Leadership

2. Add Value to Whatever You Come Across

Everyone is better off when they add value to the world. Giving more will only help you in the long run. This is an important step in building true wealth. You can greatly improve your life when you help others get better. Exploitation may bring you initial riches, but they won’t provide fulfilment and happiness.

3. Don’t Compromise on Integrity

People think they need to sell their soul to get rich. That’s not true. You don’t need to do things that would prevent you from meeting your father’s eye. You don’t need to harm others, encroach on their property, or violate moral law despite what we may see the FBI doing and all those rioters undermining their own cities. You don’t need to lie, cheat, insult, or damage the environment in your pursuit of wealth – we’ve seen that too much in certain cities in America that many people have moved away from.

You don’t even have to stretch the truth even though we see that all the time in California and New York politics and the White House. Never compromise on your integrity for expediency. There is no amount of money that can replace a clear conscience, a good night’s rest and a peaceful mind.

4. Be Brave and Courageous

You need to have courage to be responsible and a self-starter. You need to be brave to develop new skills and walk new paths. Courage is needed to put extra efforts for standing out from the crowd. In short, you cannot build wealth if you don’t have what it takes.

5. Stay Disciplined

Wealth is an accumulated mass of many small things that are compounded together over a person’s lifetime. Your daily habits play an important role in making and breaking your success. Investing, reinvesting, saving and growing your business and financial intelligence are vital to building wealth. You need to be consistent and persistent in your efforts. You risk falling prey to procrastination without discipline in your life.

6. Don’t Indulge in Conspicuous Consumption

Wealth is not instant gratification. Instead, you become wealthy when you invest your today’s wealth for a more comfortable tomorrow. You should consider living modestly in terms of time, energy, and money. Happiness is not directly related to material trappings. They only keep one from fulfilling their purpose. You have a decision to make every day – consume today or be wealthy tomorrow.

7. Create Supportive Environment

Life has an endless stream of distractions that can sidetrack your plans for building wealth. You can overcome these distractions with focused, persistent and consistent action. The best way to do this is by creating a support system which helps keep you focused on your financial goals.

Your relationships, family environment, financial habits, work environment, and daily rituals should be designed proactively for keeping you interested in creating wealth. They should support and reinforce your plans.

8. Build Wealth by Applying Leverage

You cannot get wealthy on your own. You cannot build wealth by trading time for riches. You need to work smarter instead of harder. These are a few principles of leverage you need to apply:

Marketing Leverage
Network Leverage
Knowledge Leverage
Financial Leverage
Time Leverage
Systems and Technology Leverage

9. Make Your Wealth Work

Wealth is not a one-off standalone concept. It is similar to a business entity. You need to run your money the way you would run a business. Use competitive advantage, accountability, accurate record keeping and leverage to get where you want.

10. You Don’t Possess Wealth

You need to understand that you are a steward to your wealth and not the owner. You would eventually need to move it to others. Money comes with tremendous responsibility. You need to ensure that you create maximum benefit for others who come across the wealth created by you. This can be done using your temporary stewardship wisely.

Money

9 Ways to Spend Your Money Wisely

by Benjamin Roussey|Posted on June 18, 2021 | 3 minute read | Advertiser notice

Are you expecting to receive some money? What are your plans for it? You can always splurge these surplus funds on a luxury trip or buy an expensive gadget. But there are smarter ways to spend your money which will give you both peace and happiness. These are a few options for you to consider.

1. Get Rid of that Pesky Debt

One of the best ways to employ money you didn’t expect is to use it to pay off your debts. This can be student loans, regular bills, or credit cards. Debt repayment is really the best return on money. Typical credit cards carry a 15% interest annually. You could save that amount and make your wealth grow by paying off the cards.

2. Spend it On Job Training or Education

You are the greatest asset to invest in. Job training and education are more often than not required for personal and professional growth. You may finally get that promotion you were eyeing by completing that certification. People that love their jobs and are satisfied with their career growth tend to be happier.

3. Build Your Emergency Nest

It can be a true nightmare to have to pay for a major expense when you least expect it. But, there is nothing you can do to prevent emergency situations. If you have a medical bill or a car repair, you will have to pay for them. You can use your additional money to create an emergency fund.

You should also think about making monthly contributions to the emergency fund. Tax refunds are the best way to jump start savings funds. Think about your emergency funds as buffers. You can also earn some interest by parking the rainy-day fund in a savings account.

4. Spend Freely on Hobbies

When was the last time you entertained yourself actively without looking at a screen or doing something where content was shoved down your throat? There are times when you want to Netflix and Chill, but you should consider using the extra money to pick up a hobby.

Think about whatever you like and invest in it. It could be purchasing a new music instrument, enrolling into language class, buying tools to finally build that tree house or new utensils for baking.

5. Plan a Vacation

You should have at least one decent holiday in a year. This is to keep you healthy and happy, both physically and mentally. Holidays are expensive. But, you don’t have to mess up your financial goals. You can utilize a little bit of the surplus fund or use the entire amount to pamper yourself and your loved ones.

6. Make the Money Work

You may consider investing in financial markets. You can create a comfortable retirement fund by starting right away. It is never too late to start planning for the future. Here’s a tip – never place all your money in individual stocks if you are not a diligent investor. Instead, you may want to play around using exchange traded funds and mutual funds to spread the risk a bit because in this violent world with crime going up – we are all already taking enough risk.

7. Buy Those Healthy Meals

Healthy food costs money. If you have the cash, you should consider taking a step in the healthy direction. Go organic. While you are at it, you may want to buy a gym membership as well. You will automatically start feeling better when you eat healthy. Health is something nobody really appreciates until they lose it. Using your money towards taking care of your health is a poignant way to spend it even when food costs are going up.

8. Go Have Fun

Live a little with your windfall. You are allowed to have fun. But, before you think about spending it on stuff, ask yourself whether you really need more stuff. Won’t you rather spend the money on experiences? Maybe take a rollercoaster ride at the local fun park or throw a party for your friends. You could also just use it at a spa to give yourself a memorable experience.

9. Visit Friends and Family

Satisfying relationships and happiness are correlated. But, it is expensive maintaining good relationships with family and friends. We all have family members or friends that moved away and never visited again. You still love them. You are still in touch with them through digital mediums. Why don’t you go visit them?

Finance, Money

Annuity vs. Mutual Fund: Which Makes More Sense For Retirees?

by Benjamin Roussey|Posted on June 12, 2021 | 3 minute read | Advertiser notice

Two of the most prevalent investment options for retirees are mutual funds and annuities. Like all financial and investment products, investing in either of these options comes with a set of benefits and drawbacks.

Let us discuss in detail and try to find out which one of these two investment options makes sense for you if you are about to retire.

What is an Annuity?

In an annuity, you can invest an amount of money, as a lump-sum payment or in parts, as a part of a contract between you and your insurance company. In return, you can choose to receive guaranteed proceeds either for a fixed tenure or for as long as you live. Whether the payments start immediately or after a fixed period, depends on the terms and conditions of the annuity you invest in.

Based on the likely rate of return, annuities broadly fall into two types of categories, namely, fixed annuities and variable annuities.

Fixed Annuity

A fixed annuity, true to its name, provides an assured return for the tenure of the contract. The insurance company guarantees reimbursement in advance, regardless of the market performance.

Variable Annuity

The variable annuity payouts are neither fixed nor assured. They may increase or decrease based on the market performance.

A key advantage of annuities is that investors defer taxes on interest, dividend, or capital gains for the duration of time their money is in the annuity. The taxation, at withdrawal, is only on the capital gains and not on the amount contributed towards the annuity. Also, as their name suggests, the annuities can be annuitized. You can make a guaranteed income stream for a fixed period.

Annuities are basically insurance products and not investment securities and hence the insurance companies provide the guarantees to back them. However, you should keep in mind that the Securities and Exchange Commission (SEC) regulates only the variable annuities and not the fixed ones.

Annuities are a useful means to defer taxes on investments and generate assured regular income in retirement which is even more vital in a rising cost and energy environment because of new policies.

What Is a Mutual Fund?

In a mutual fund, investment companies collect money from investors and invest it on their behalf. The money goes into a mix of investment securities and money market instruments to maximize returns.

You can set up and use a 401(k) account, a brokerage account, or an individual retirement account (IRA) to invest in mutual funds. Investment specialists and money managers run mutual fund portfolios and are responsible to generate the maximum possible returns for their investors consistently.

There are several types of mutual funds, each based on its investment strategy and the nature of securities that it invests in:

Equity Funds invest entirely in stocks
Index Funds imitate the investment mix of a market index, and their performance is directly linked to that of the index
Exchange-Traded Funds trade on stock exchanges
Money Market Funds invest in debt instruments
Fixed Income Funds invest in bonds
Balanced Funds invest in both stocks and bonds
Sector Funds invest in a particular sector
Global Funds invest in overseas markets

Annuity or Mutual Fund: Factors to Consider Before Investing

Here is a comparison that may help you choose between the two types of investments:

Safety

If you do not foresee having a steady income post-retirement, a fixed annuity may be the best option for you. In a fixed annuity, the insurance company guarantees to pay you a particular amount until the end of your contract period. Variable annuities do not guarantee a specific amount, but some may have a minimum rate of return guaranteed by the insurance provider.

With mutual funds, there is no guaranteed income. The rate of returns on the money you invest varies a great deal depending on the market performance.

Expenses

Annuities have some of the highest associated expenses among the investment products.

Mutual funds, especially index funds, are very low on expenses.

Tax-Deferral

Tax on any income from annuities is deferred until the time of withdrawal. On withdrawal, only the capital gains are taxable.

In mutual funds, you are liable to pay taxes on dividends and capital gains. However, if you invest through an individual retirement account (IRA) or a 401(k) account, you are liable to pay tax only at the time of withdrawal.

Return on Investments

Mutual funds may offer variable returns based on market performance, while annuities offer assured returns. On the other hand, there are many charges and fees associated with the annuities, which, when deducted from your gains, tend to make the returns on investment much lower.

Liquidity

With mutual funds there is no lock-in period, making it easier for you to sell and exit anytime you wish.

With annuities, however, there can be a lock-in period, as long as 10 years sometimes. Any early withdrawal can attract high surrender charges which hurts even more in a slow growth or no growth economy.

The Bottom Line

If you are looking for absolute safety, annuities are the best option for you. But if you do not mind some added risk with the potential to earn higher returns, you should invest in mutual funds.