Category: personal finance

KNOW THIS BEFORE GETTING LIFE INSURANCE

Posted in finances, Insurance, personal finance, Saving

On the last post about life insurance I presented three questions you need to ask yourself before getting life insurance.

In this post I’m going to be answering each post so that you know enough to get your very own life insurance policy.

What does the insurance company get in return?

I’m sure you asked the question “how much does the insurance agent make on a life insurance policy?”

Of course the agents wouldn’t want you to know this, but the average Life insurance agent receives 95 percent of what you pay the first year in a policy. When you renew your policy they receive 5 to 10 percent in commission on the policy for the next year.

What types of policies are out there?

There are so many life insurance policies, but they all stem from the two major policies Whole life and Term life.

Whole life

This policy is built to spread the cost of coverage throughout your life span and it is solely built off of your contribution so it is more expensive.

The benefit of “whole life” is that it does not expire and has set payments. Also as long as you make the proper payments on the policy the insurance company is bound by the contract agreement.

Another benefit of “whole life” is that the policy builds cash value, which means you can borrow against the policy.

CONS: This policy is expensive.

Term life

This policy is built to cover you over a specific period of time usually anywhere from 10 to 20 years.

The benefit of “term life” is that it tends to be six to ten times more affordable than a whole life policy.

Another benefit is that “term life” can be converted into a whole life policy giving you full life long coverage.

CONS: This policy does not hold a cash value and will expire.

Which policy is the best for you?

My personal opinion is that term life is better because of how you can convert the policy into a whole life plan, but there are cons for doing that. Such as, the policy gives less coverage and if you withdraw money from the policy you leave less for your family after you pass away.

The best policy would be whole life, if you can afford it the policy has no expiration date and holds a cash value. So you don’t run the risk of getting nothing from your insurance policy.

Thank you for reading

The Way I Save

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INVESTING MADE EASY

Posted in finances, Investing, Money, passive income, personal finance, Saving

The key of making money in stocks is not to get scared out of them.

Peter Lynch

The hardest decision you can make is picking something to invest in, but this process can be simplified the more you invest.

Peter Lynch is one of the most iconic investors that simplified investing for average individuals, just by suggesting people to invest in the things they love and understand. Which begs the question why arent you investing in stocks today, and for those who are invested why arent you investing more.

Just start

Just to get this through your head, the hardest decision you can make is the decision to simply start investing. The more you procrastinate the more your missing out on passive returns, and the best way to learn how to invest is simply through experience.

So many entrepeuners will tell you the best way to learn a trade or a new skill is by trail and error (just hurry up and fail). The bigger the fail the better the outcome, remember after every failure ask yourself “why didn’t this work” or “what did I do wrong.” Asking these questions will help you over come the struggles of investing and come out a successful investor.

EQ

When your investing the second most difficult task is keeping your emotions in check. When I began investing the was a company that I had my eye on and I originally bought stock in this company was very innovative because of the their eco approach (how they helped the environment).

Well over the years I saw the stock go up and down, it was like a roller coaster ride. I couldn’t stomach the fact that I could loss everything so I got out.

That company was “Tesla”

If you believe in a company, all you need to do is to first study the background of the creator of the company. If I would of known that “Elon” first created “x.com” I would have realized that he was successful before Tesla.

Only knowing what you need to know helps build emotional intelligence.

Caleb Peters

So remember to hold on, no matter how risky the ride gets because your first decision is normally your best decision.

Thank you for reading

The Way I Save

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Simple Money Management

Posted in finances, Habits, howtogetoutofdebt, Investing, personal finance, Saving

Every good business and rich individual knows how to do one thing very well. Successful people probably don’t touch on this topic a lot, but the route of financial success is simply good money management skills. Managing your money can be difficult at times, but although it’s difficult it can be simple too.

This post is going to be dedicated in showing you simple ways to manage your money, so that you can have the keys for success.

PAY YOURSELF

I know a lot of influencers talk about paying yourself but they don’t particularly share how they pay themselves.

these are the ways I pay myself weekly and sometimes monthly:

• my 401(k) plan

• buying stocks

• other investments.

Essentially I take whatever is left in my savings accounts and use it to do one of these three things. Now since my 401K is already taken out of my paycheck, I really just use my savings for the other two.

SYSTEMS

I know a lot of peoples method or system when it comes to their personal finances, is to simply cash the check and stuff it in a box. Cashing your check is the worst method or system you can use, as Grant Cardone says “cash is trash.”

This is true because it doesn’t pay to have cash, it pays to have assets.

My personal method or system for handling money, is to deposit everything I make into my savings account. All I do is deposit and transfer for bills, that way after paying my bills I’m able to see what’s left for possible investments.

You don’t have to use this method, all I’m saying is that this works for me so you should try it and see if this system works for you. You can create any method or system for yourself as long as your know how you spend money.

These are just a few concepts I use I hope this helps you when it comes to your personal finances. Like I said from the beginning managing money can be difficult but also simple, so I hope these concepts were simple enough for you.

You can let me know if these concepts work by leaving a comment on this page.

Thank you for reading

THE WAY I SAVE

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The Importance of EPS

Posted in finances, Investing, Money, passive income, personal finance, Saving, Uncategorized

When it comes to choosing a stock EPS is the most important thing to look at before investing and in this post I’ll give you reasons why its important and I’m going to explain what EPS is.

Well for starters EPS stands for earnings per share.

WORTH

One of the main reasons why EPS is so important, is because EPS will let you know whether or not a stock is worth investing in.

A higher EPS shows investors that a company is profitable. When a company is profitable it’s more likely that the investor will receive dividend payments from the company.

DEMAND

When the “earnings per share” increases 25 percent, it also reflects a higher demand from the company. This can be because of the rising popularity of the company or an increasing need for the companies products.

For example, have you ever heard of “Zoom” before the pandemic. In 2020 the eps for Zoom was calculated at 0.27, in 2021 it went all the way up to 2.91, that’s over 25 percent.

CONSISTENT GROWTH

When the earnings per share for the company increases each quarter it represents future profitability for the company or consistent growth.

Before I purchase a stock I look at the estimated earnings per share and the actual earnings per share for each quarter. If a company passes its estimate earnings each quarter it shows The consistency of it’s performance.

Their are plenty of other reasons why EPS is important but these are the main reasons why you should pay attention to a company’s Earnings per share.

THANK YOU FOR READING

THE WAY I SAVE

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How to Leverage your Money

Posted in finances, Habits, Investing, Money, personal finance, Saving, Uncategorized

I’m sure everybody’s heard of the saying buy low and sell high and that’s not just for the stock market that’s for every single thing you purchase. In this post I want to let you know about ways to leverage your money. I’m going to be sharing the ways that I personally have considered or successfully done myself.

BOOKS

So without further ado the first way to leverage money is with books. I have personally invested in several books like for example stock market 101, The intelligent investor, and the richest man in Babylon. With this investment of $57 in just these three books, I have made over a thousand dollars in 6 months.

This is just one example of how reading or listening to books can actually leverage your money. I am still utilizing the information used in these books today, which is also proof that it is a long term investment.

COURSES

When it comes to courses it is another way to leverage your money, but you have to be careful when it comes to choosing of course. I say this because there are courses that charge an arm and a leg for information that could’ve been provided somewhere else cheaper.

Also you have to be strategic when choosing a course what course can you take that can translate into more money for you. For me it was taking an accounting course to help increase my know-how of budgeting and maintaining my personal finances.

MENTORSHIP

Finding mentorship can be priceless and offered for a little to no cost, but there are people in places that charge you for their mentorship.

My advice is to start start with who you know and find people who invest their money in particular ways.

For me I have found plenty of mentors to draw near to who invest in real estate that are not only willing to share what they know, but are capable of partnering with me on deals.

Thank you for reading

The Way I Save

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Goals For your Money

Posted in finances, Habits, howtogetoutofdebt, Investing, Money, passive income, personal finance, Saving, Uncategorized

Many people create goals they want to accomplish at the beginning of each year. Some people accomplish these goals, others forget about the goals that they have set for themselves. The most successful people break down their goals into realistic task and give a time frame for the goal to be completed. If your new year resolution was to make more money this year, then you clicked on the best post for you.

In this post we’re going to break down your goal into making more money into realistic task but first lets be clear about the time frame. We want to complete this goal before the next year, so lets make this a 10 month goal.

TASK NUMBER 1

What are you passionate about and why? When you figure out what you are passionate about you will be willing to work more hours during the day. When you figure out why you are passionate about something it prevents you from getting burnt out or tired, and if you do get tired then its not a big enough “why.”

You don’t have to think too hard to realize what your passionate about because chances are you want to change peoples lives. So all you have to do is figure out what part of peoples lives you want to change. For example, I want to change the way people operate their personal finances so they can have financial freedom. The reason why I want to do this is because 80% of America is in debt and 55% of that debt is in credit cards.

So now that you know you want to impact peoples lives, and what part of their lives you want to impact, figure out how your going to impact them. Is it going to be through books, seminars, music, or a podcast.

TASK NUMBER 2

Supercharge your learning, when you find out what service your going to do, you need to learn more about the service (do not sell yourself short when it comes to the price of your service and do not overprice it.) You need to have a strategic method of learning too, so when you find the service you want to provide ask questions like how? Where? Why? and Who? Then learn the answers to each question. Start with the basics learn how to find the right people to partner with to eventually form a business, you need marketing, accounting, and specialist in the field.

TASK NUMBER 3

What ever money you have now, chances are your going to need more. So find things to flip, sell, or invest in that will give you enough cushion to start your business. I didn’t say it will be easy, but it is doable. Simple ideas to flip would be cars, shoes, or furniture.

I hope you enjoyed reading this post and I also hope it inspired you.

Thank you for reading

The Way I Save

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Why Diversify

Posted in finances, Investing, Money, passive income, personal finance, Saving

There are plenty of reasons why you should diversify your investments, but in this post your going to be reading about the advantages of diversification.

Diversification is the practice of spreading your investments around.

ONE ADVANTAGE

The first advantage of diversification is when you diversify your stocks or money you are able to take advantage of growth opportunities in different sectors of the market.

You don’t have to know which stock to pick you just have to know which industry is going where. Once you figure that out, you can simply purchase a Mutual Fund, ETF, or Index Fund that is already diverse in that particular industry.

SECOND ADVANTAGE

The second advantage of diversification is that when you diversify your stocks or money it keeps you stable during tough times. With this pandemic, businesses are going under and investors that aren’t diversified are losing money.

Since I knew businesses are being affected during this pandemic, I invested in gold when the shutdown occurred which saved my investments.

When one sector goes down there is always another sector that is going to be prospering, you just have to diversify.

THIRD ADVANTAGE

The third advantage of diversification is knowledge. When one sector or industry is going down that’s your trigger into buying either one good business or one outstanding ETF in that struggling sector.

Now each time you log on your brokerage account, if your diversified enough, you should see where the market is headed. You can see which sector has gain momentum and where to put more money.

Thank You for Reading

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HOW TO START GENERATIONAL WEALTH

Posted in finances, Habits, Investing, personal finance, Saving

Just remember it starts with you, on that note don’t rely on your parents to leave you something when they pass away, because if your parents are like mine they don’t have anything to pass down to you. So start your creating your own Wealth.

ACQUIRE

All you have to do is buy. Ask anyone who has more money than you how they got their money, and most likely they will tell you they acquired something of value. That’s it creating generational wealth is not hard your just over thinking it.

Acquiring stuff can be even easier if you operate you bank account differently. All you have to do is three things.

1.) Lower your expenses

2.) Create a budget to save at least $100 a month.

3.) Only touch it to invest it.

If you took an accounting class you should know that assets are better than liabilities, but the problem is people like to classify miscellaneous things as an asset. Which is why it’s hard for many people to get ahead or create generational wealth.

ASSETS

Assets can be a house, stocks, a business, Gold, or simply anything that is giving you income right now.

Sadly people like to look at things that have potential to give them money as assets, but their only lying to themselves.

Look at everything you own and determined what is adding not just value, but income in your life. After determining what your biggest asset is simply create a habit of buying more of it.

DONT FORGET TO WRITE A WILL

There are plenty of places that can create your will, but why not do it yourself. Nowadays your just a click away to creating your “Legal Will,” from places like http://rocketlawyer.com.

I hope that in this new year you make a personal goal to acquire assets to increase the capital you own, and create generational wealth.

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WHY I WON’T HOLD CRYPTO YET…

Posted in finances, Investing, personal finance, Saving

There are plenty of cases of people getting rich off of crypto currencies but still there is no research available for people to get rich with crypto on purpose. However there are articles out to educate you and keep you up to speed on crypto, but those articles do not explain the dramatic price fluctuations that crypto has. Is crypto a good investment? Well not for me and I’ll tell you why.

First of all lets start this post off by explaining crypto currencies. Crypto currencies are just like trading on the foreign exchange market, when it comes to contrasting foreign currencies and crypto currencies the only thing different with crypto is that it is not backed by anything just yet. Unlike foreign currencies which are normal backed by a government, banks, or goods and services.

NO BACKING

So my number one reason why I wont hold crypto is because there is nothing supporting the currency just yet.

EXTREME FLUCTUATIONS

Also when it comes to crypto currencies there can be major fluctuations in the pricing, on December 7, 2017 bitcoin was being traded at $15,268.98 finishing the year off with a 3,500 percent return. However the for the next year on December 6, 2018 bitcoin was trading at $3,530.06 that is a $11,738.92 loss, which is a 2,600 percent loss.

NOT ENOUGH KNOWLEDGE

Lastly crypto currencies are still fairly new which means there is a lot of risk when dealing with these trades and unlike stocks there is barley anyone who can give you advice on trading crypto currencies. There is simply not enough knowledge on crypto currencies yet.

HOW TO START ACQUIRING CAPITAL

Posted in finances, Habits, Investing, Money, personal finance, Saving

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.”

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What is an ETF?

Posted in finances, Investing, Money, passive income, personal finance, Saving

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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