Goals For your Money

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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Money Storage

Last post was about how to simply manage your money, this post is going to touch on where you should store your money. If you haven’t found out yet, saving your money at a bank only gives you a return of 0.01%.

That means you get ten pennies for every $1,000.00 you save. That’s ridiculous, but don’t worry there’s better ways that are just as safe and give you higher returns. In this post I’m going to share a few that I was able to try.

HIGH YIELD ACCOUNTS

If your not into risky investing you can still get a good return on your money, while keeping your money at the bank. For instance, synchrony offers you 0.55% for storing your money with them.

I believe the best high yield account out right now since the pandemic is Brinks. Brinks is offering 5% for storing your money with them.

BROKERAGE ACCOUNTS

You don’t have to buy stocks to make money, some brokerage accounts give you interest for storing your money with them.

If you have under $10,000 TD Ameritrade will give 1.25% for storing your money with them in a brokerage account, this interest rate might vary.

BITCOIN SAVINGS ACCOUNT

The last way I recommended storing money, is with Bitcoin savings account. For this account you have to own a type of crypto currency that the account accepts, and have an up to date digit wallet for storing the coin.

Nexo has one of the bitcoin savings account available for you, and they offer you anywhere from 8% to 12% for storing your bitcoin with them.

I hope you found this post useful, thank you for reading

The Way I Save

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Why Diversify

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

THE WAY I SAVE

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HOW TO START GENERATIONAL WEALTH

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…

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

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.

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