HOW TO START ACQUIRING CAPITAL

You can acquire capital in multiple ways but in this post I’m going to be sharing what I do to acquire capital, and what my plan is to acquire more.

Well you can use gold, businesses, or you can acquire wealth through stocks like I do. I know that you can just let your 401k or your pension plan do the work for you, but the returns are much higher when you do the work yourself.

For example, my personal rate of return on my 401k for this year is 8.24 percent, while on the other hand my stock portfolio did a 21 percent return this year.

My goal for my finances or plan to acquire wealth is through borrowing from myself. Right now I am focus on stocks, but really I am building for the future.

After I acquire enough capital in my stock portfolio, I plan on taking an equity loan by putting a percentage of my stock portfolio up for colateral. The loan will be for purchasing investment properties, I truly believe that wealth starts by accumulating knowledge.

I took knowledge to the test by reading books, articles, and others forms of content on the stock market. After reading 5 to 8 books I finally started to see my return on investment.

THE MAIN POINT: “Everyone can start building wealth anywhere as long as they acquire knowledge first.”

Thank You for reading

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What is an ETF?

If you are a rather new to investing chances are you probably don’t know what an ETF is and what it can do for you. Well in this post I’m going to breakdown this acronym for you so that you will be able to see if investing in an ETF is right for you.

E – Exchange

ETF’s are a type of security that deals with a number of stocks in a specific index. Investing in an ETF helps diversify your portfolio just like a mutual Fund would. I currently hold an ETF called “JETS” in my portfolio to take advantage of the airlines that dropped during the pandemic. Since I don’t know which airline to purchase specifically, I choose to diversified through this ETF. Its always good to hedge or own each competitor in a struggling sector that has been through difficult times such as the airlines.

T – Traded

If you hold a mutual fund in your 401k you don’t have to pay taxes on it but if you own one outside your 401k or pension plan, you can be paying 15 percent in taxes. A good thing to know about ETF’s, is the fact that ETF’s cost less than Mutual funds because an ETF charges less in brokerage commission than buying individual stocks. Plus as long as you hold on to an ETF, you don’t have to pay a ton of taxes.

F – Fund

the reason an ETF is called an “Exchange Traded Fund” is because ETF’s are traded or exchanged on the stock market, just like any other stock or company.

Some of the biggest ETF’s are known as the NASDAQ, S&P 500, and Dow Jones.

Which are also referred to as index funds. Also, when an news anchor talks about the market he or she is referring to these three index funds or Exchange Traded Funds.

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OPTIONS OR STOCKS

Have you ever wondered if options are better then just holding stocks, well you came to the right place. Before we get to which one is better, let’s learn a little more about options and stocks. Then you will be able to see which one is better for yourself.

OPTIONS

If you want to know the big idea behind options it’s simple. Options are the right to a stock, pretty much a certificate of ownership. Calls and Puts are both classified as options, and can be used for when a stock goes up and down.

Call options

“Calls” are a type of option investors use to make profit for a stock to go up dramatically. Calls are known to make people very rich or loose a lot of money.

Put options

A “Put” is an option investors use in order to make money for a stock to crash and burn or simply go down. Just like Calls, Puts can be very lucrative if dramatic changes occur in your favor.

Cons

Options are super risky and can be addictive. Options are almost, if not equivalent to gambling. A lot of times you see investors promoting options because of the high reward, but they don’t present the fact that they have to pay a large some of money in taxes after those earning. Usually taxes for short term gains are between 15 to 24 percent

STOCKS

Stocks are simply publicly traded companies open for investors. The symbols on the stock market or abbreviation for each company is called the ticker symbol.

Compound Interest

Have you ever heard slow and steady wins the race, this can relate to investing as well. Unlike options, when you hold stock in a company you have the opportunity to take advantage of compounding interest. Companies like Disney or Bank of America, hand out a dividend for their shareholders. When you as an investor reinvest the dividends back into those companies your generating compound interest.

Capital

As you gain a large sum of capital or money over the years in shares, your also able to borrow from yourself by putting your shares up as collateral. Loans can be used as a tax benefit for you but don’t go crazy, you won’t really need to take loans against yourself to avoid paying taxes since you only pay taxes on dividends or when you sell a stock.

Also the only reason you would have to sell a stock is if the P/E ratio has gone over 15 and estimated earning have far exceed actual earnings for a few fiscal quarters, these results usually happen when there are changes occurring in head leadership so beware.

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What’s an IPO?

IPOs are always being listed on the exchange and you can make a considerable amount of money from buying and selling IPOs at the right time, but what are they specifically. Well in this post I am going to break down this acronym, and tell you whether or not you should invest in an IPO.

I – INITIAL

Well let’s begin with the first letter of IPO, which stands for initial. When a private company is planning to grow rather quickly, they look for funding in various places. Take “Publix” for an example, they offer their own employees an opportunity to buy a share of a company. With that money reinvested in Publix the company is able to acquire more assets to grow in profitability.

P – PUBLIC

The “P” in IPO stands for public. After massive expansion, a company like Publix is able to go public with their stock. This means a non-employee of Publix can become a shareholder in the company now.

O – OFFERING

I stands for Initial, P was for Public, and O is for Offering. As an Initial Public Offering, a private company is able to become a public company. The benefits of this transitions helps the company go from a couple hundred thousand in funding, to millions or even billions in funding.

BUT…

When a company is newly listed the information of its business dealings are very slim to none. Which means many investors do not know much about the company’s Assets, Liability, and the companies performance record (profits).

Even with knowing very little about a newly listed company, investors still gamble and invest in IPO’s. Which result in these investors loosing everything.

So taken it from Benjamin Graham when he states that the more you know the better with stocks; this is my translation of what Ben teaches in his book “The Intelligent Investor.”

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HOW TO PICK A STOCK

If your like me a few years ago, you probably want to invest into the stock market but you don’t even know what to buy. Well, you clicked on the right post, in this post your going to learn how to pick the best stocks and be able to determine what a good stock looks like.

Okay for starters, there are plenty of ways to make money in the stock market, But the best way is by holding on to a stock for five or fifteen years. There are two reasons why this is the best method.

  1. You can build capital
  2. You can receive dividends

CAPITAL

Now to build capital you have to do some research before you pick a stock. You cant just pick a stock based on what you think, or what some else thinks (that is a good way to lose your shirt.)

There is a cool site that helps you gather information about a stock and its called “SEC.GOV.” This website was created by the “U.S Securities and Exchange Commission” to help the individual investor make informed decisions on a stock before investing. Every stock that is listed on the market has to give updated information on the companies balance sheet, income statement, and cashflow statement, plus any executive decision.

I personally use sec.gov every quarter, to get updated information on how my stocks are doing. I suggest you to do the same, because this is a good way to learn more about the company and where its headed financially. You deserve to know if the company is making money or losing money.

DIVIDENDS

Part of deciding whether a stock is good, is by seeing if the stock gives quarterly dividends and has been doing so for more than fives years. This is another piece of information that is provided at sec.gov.

At the bottom of the picture above it shows the dividends per share for this particular stock. It also shows you how much dividends was handed out by the company in 2019 after three months and 2018 after three months.

Dividends gets passed out each fiscal quarter, which is every three months. At the bottom left you can see the dividends given after nine months for 2019 and 2018. I showed you this picture just to give you an idea of what your looking for in a stock, when it comes to dividends.

Just to give you a heads up, the reason why you want to pick a stock that shows more than 5 years of dividend payments, is because the company decides whether or not to give its shareholders dividends.

Thank You for reading

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GOOD FINANCIAL HABITS

If you want to be the next millionaire in town, build your income, or save for retirement its important to form good financial habits, but what do good financial habits look like? In this post your going to learn about three key strategies that you can implement for 30 days and form as good financial habits.

Well my name is Caleb and just to tell you a little bit about my self, my first job was hell to me. I was working sixty hours a week in a factory and spent most of my money just getting to and from work, until I found these three financial strategies that I now formed as habits. Now I work at a better place, getting paid more for doing less, and now I can say that my job is not my only income.

Mental Budget

So lets jump into the first good financial habit, the Mental Budget. Many millionaire’s can tell you off the top of their head, what they have earned and where they have spent their money on. You can do it too, but on a smaller scale. All you have to do is calculate what you have earned after tax per month, add up all your monthly expenses (earnings – expenses = actual income.) Then you subtract your expenses from your earnings to figure out your monthly actual income. If you divide your monthly actual income by four, you get your weekly spending budget. For me my weekly spending budget is twenty dollars. Now all you have to do now is focus on your weekly spending budget, so each purchase you make each week you substract from that number to stay in budget.

Justify Purchase

Why do you buy the things that you buy. Some people focus on buying name brand products, but ignore the no name brand. Just because you are familiar with a product does not justify the price, don’t buy it if the price makes no sense that’s nonsense. No name brands can be just as good and a better option because the price is justifiable. You shouldn’t pay for a brand, you should pay for a product.

BUY WHAT LASTS

When businesses are purchasing there assets they look for things that last to save on their break down cost. So why not use the same method, when I was in college I started using this method for food. I will focus on purchasing rice and pasta because they had a longer shelf life, then I was able to buy the food that went well with those types of products. You can buy cars that lasts, computers that lasts, shoes, and so on. Focusing on what lasts saves money for the long run and puts it back into your pocket. Have you ever drank a glass bottle coke and kept the glass bottle to see how long the glass will last, Try it.

More Money, More Ways?

WOW! This is a problem, why don’t people know how to make money without breaking their backs for it. Wouldn’t you like to learn how to make your money work harder than you?

Of course you would, who wouldn’t? I guess the only people who don’t want to learn more ways in making money, are those who overthink it.

OKAY! “News Flash” It doesn’t take a degree to learn this.

News Flash

You don’t have to be this guy with his arms crossed, who is probably going to be working for someone his whole life. Forget this guy. Let’s learn a new way.

LET’S LEARN FOREX!

Forex aka the “Foreign Exchange Market” is like the stock market, but (some might say) better. We can learn how to make “MORE MONEY” in Forex by answering these questions:

WHERE DID THE FOREIGN EXCHANGE COME FROM?

HOW DO I MAKE MONEY IN THIS?

WHAT DO I HAVE TO DO TO GET STARTED?

Foreign Exchange is based on switching (exchanging) different types of foreign money, such as euros or pounds.

WHERE ?

The Foreign Exchange began during the biblical times, in this period of time the people exchanging currencies were called “Money-Changers.” The Money-Changers simply charged a fee or commission on each trade.

Holy Land

    The first recorded site for Exchanging was in the “Holy Land” but now since technology came out its on your phone or online through Forex.com.

HOW ?

The way you can make money in the foreign exchange is not just through commission anymore. You can make money in several ways:

  1.  Holding – Waiting for the value of a promising countries’ currency to go up.
  2. Trading in Bulk – Purchasing in quantity, waiting for a slight increase to sell.
  3. Options – You can make money through betting, if a currency is going to go up or down.

how

    With options, you’re going to be trading the right to the currency and you can choose whether its going to go up or down. If your predictions are right, you can make a lot of money, but it is very risky.

WHAT ?

There are several places to start, but the best news is that you can start with as little as $50 at Forex.com. When I started using Forex, I only used $50 to get started and to make sure I was doing everything correctly I downloaded a demo app to learn how to use market information.

Forex

In summary, we talked about where the Foreign Exchange came from (The Holy Land) and how we can make money in the Foreign Exchange, by holding, trading in bulk, and selling options. Lastly, what we need to do to get started in the foreign exchange market is to invest a minimum of $50 on an app called Forex.com, and don’t forget to study with the demo apps for Forex.

Thanks for reading, and don’t forget to like this post and comment!

Be The Bank

www.trading-the-forex.netBanks happened to be one of the most profitable businesses, and not just because of the credit cards they offer. The way Banks our making their money is from interest. They get interest not just from common folks opening up credit cards, but other businesses as well. The way they make money from other businesses is through “Chip Readers.” Chip Readers can take up to 35% per transaction, other Chip Readers take a monthly fee. What I’m going to show you is how to be like the banks and rack up on interest. Ways you can rack up on interest is:10.jpg

  • Loaning out money through sites like Lending Club.
  • Loaning out money for real estate through sites like “Fundrise.”
  • Investing some money into other currencies through companies like Forex

Loaning money out can be very difficult at times, but through sites like Lending Club you are able to get back anywhere from 7% to 14% in interest on the money you invest into a individual. To make sure you are confident about the people you are loaning money to they provide you the credit score’s of the individuals who you think are a good candidate. This type of investing is called peer to peer lending, Lending Club is just an example there are other peer to peer lending companies available. With peer to peer lending there the minimum you can loan is $1000, the companies also take a fee of 2% or 3% of the interest made from investing.

The second way that I presented on how to gain interest is through “Fundrise” and Fundrise consist of a pool of investors investing into a property and receive an interest of approximately 5-12 percent considering how much risk you want to take. I am personally invested into this program and so far made more money from this account than my high yield savings account, but there is a fee which isn’t much so far they took only $0.44 out of my account. Then again I only have 1000 invested, but doing a little more research on Fundrise “The eDirect offerings — eREITs and eFunds — pay a 0.85% annual asset management fee. In addition, clients of the investment services and management system pay a 0.15% annual investment advisory fee, although this may be waived in certain circumstances.

Foreign Exchange

The foreign exchange market is arguably the largest market across the globe 

Written by: http://www.trading-the-forex.net

one of the greatest ways to invest and it’s because when are economy is plummeting another economy will be thriving. It is similar to when your researching a stock, you have to read about different economies to see when or if their currency will change for the better or worse. When I was dealing with Forex, I was able to get 10 percent back from my investment. There are always tricks and tip to use for Foreign Exchange such as tracking financial news daily, staying away from Forex bots, and using margin wisely. I can’t explain this massive investment all in this post so I’m making a separate post to let you in all the details, but until next time, Let me know if this post was helpful to you

!!THANK YOU!!

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Passive Income

Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and Interest would therefore be considered passive.

quoted by: http://www.investopedia.com

I have read, listened, and saw plenty of CPA’s, Real Estate agents, and Financial Advisors talk about passive income; but their are only a few to do while in college with limited funds (money).

The first one is my favorite which is a High Yield Savings account. So instead of getting a penny $0.01 a month for every $1000 dollars, you have your getting $2 a month that’s a huge difference. The reason why this is my favorite type of passive income is because I am able to invest at a very low risk which means I am less likely to loose my investment.

The Secondary way to create passive income is through Real Estate Pool Investing which gives you over 5% back in interest. Which is pretty cool considering that your only getting 0.09% from your current savings account with your ordinary bank. I currently made $22 from letting my money sit. I’ve been using a popular and reliable platform called, Fundrise. What Fundrise does is raise money for a specific Real Estate Property that gives you back and average of %5 back on what ever you decide to put in. The minimum amount to get started is only $500 and it’s pretty easy to setup.

The last passive income is the stocks market. The reason why I put the stock market as a passive income is because there is a slight trick to making the stock market passive now of course your not going to make as much as active people in the stock market you can still make a significant amount from dividends. Dividends is “money” the company gives the stock holder for per share. Sometimes they give it quarterly or monthly, the best dividend stock out there right now from the time writing this post is “PSEC.”

There many other ways to create passive income. Even some businesses can even be passive. Writing is one of the most passive incomes created, think about the only work you do is to write the book, publish, and promote. This is why many pastors and entrepreneurs write books, it’s an investment that accrues interest over time by promoting yourself.

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Mobile Status

     Not many people have the opportunity to sit down and plan out what to do with there finances and how their going to invest. I find one of the most rewarding things in life is to be proactive with the time. Everyone knows there is only 24 hours in a day and 60 minutes in a hour. Take it a bit further and there is 168 hours in a week and 10,080Mobile  status 2.jpg minutes in a week. The average person works 40 hour weeks, which means their left with 128 hours. I am not going to tell your how to manage your time this isn’t what this post is about. What I am trying to tell you is that you can manage your investments with only 3 hours per week, and still make money to build a future.

     Earning a lot of money is not the key to prosperity. How you handle it is.

Quoted by: Dave Ramsey 

Dave Ramsey is one of the most biggest authors for financial growth and debt recovery. His net worth is $200 million. Dave is also a great businessman who has a website and a channel on YouTube Dedicated to help individuals get out of debt.

So the ways that help you with your finances on the go that hardly take up any time are:

  • Mint
  • Lending Club
  • M1 Finance

 

Mint is an application you can get on your phone for free and it helps you see where your money is going. Mint helps you save and gives you notification regarding your spending. I personally use this app and I find it to be helpful. In the app it even shows passive ways to invest, and even shows you credit cards that give you the highest rewards.

Lending Club is a peer to peer lending application that you can download. They offer 3-8% back in interest per year. The minimum needed to start investing with this company is only $1000. Lending Club shows you everything you need to know about the person your want to invest in, also gives you an option for risk. The higher the risk, the higher the percent.

M1 Finances is an online investing app that takes $0 to start and no cost or fees on your first trade. I heard about this site from my favorite financial planner Jeff Rose. They also have automated investing that allows you to be the passive investor you want to be. They also let you pick stocks that you know and want to invest in. M1 finance is also “TAX FREINDLY” which means you don’t have to pay taxes on your earnings.