Tag: Saving

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HOW TO BEAT THE BANK

Posted in finances, Saving

When you think about “The Bank” what comes to mind is it “money” or “security.” In this post I want you to see the bank as it really is, (infrastructure).

To beat the bank first you have to think like the bank. If you want to be successful, just study how banks make money.

Let’s start with the terminology (words used in banking).

Debit & Credit

Debit, is an entry recording an amount owed.

When you take out $100 from your account, the bank will debit (pay) you $100.

Credit, is the ability to borrow money

So when you save money into a high yield savings account or CD at the bank. The bank is receiving credit (a loan) and in return they give you interest.

If you don’t know what a CD or high yield savings account is then you can click on this link to learn more

How Banks move money

When you save your money in a bank they lend the money back out through credit cards and loans. The bank will also stay liquid only a certain amount for you to make a withdraw.

So in other words the bank will borrow your money and give you 0.006% interest. Afterwards the bank will lend you, your own money through a credit card or loan and charge your anywhere from 5 to 29 percent interest.

How to Compete

The only way you can compete with the bank is by making riskier investments and utilizing everything you have while your still young and cut cost to budget more of the money to the side.

One of the most innovative ways to invest your money now is in crypto, but don’t jump into an investment without knowing enough to base a decision off what you know.

“The more you learn, the more you earn”

Someone quoted this before and people don’t know how to utilize this quote today. This quote is for investments and business, so go out there and learn something NEW!

Thank you for reading

The Way I Save

Don’t forget to like, follow, and if you think this post was helpful just share it with a friend.

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

Don’t forget to like, follow, and if you think this post was helpful just share it with a friend.

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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HOW TO CREATE PASSIVE INCOME?

Posted in passive income, Saving

Passive income is not always easy to develop ínfima to you might lose money trying to create it. So in this post I want to show you how I currently make passive income and how you can start creating passive income for yourself.

Keep in mind it is not easy to create passive income with that in mind, what ever trade you want to go into, study first by reading books. This will reduce the risk in creating passive income.

STOCKS

Stocks can be one of the most passive investments, depending on how you invest. I prefer investing for the long run because slow and steady wins the race. So one of the main factors I like to see when I invest in stocks is dividends.

Dividends are company earnings that are annually distributed amongst shareholders.

Also in some cases dividends is handed out monthly, so make sure to really study your stocks by using www.sec.gov. From the SEC website you can search up company records, all you need to do is go to the search tab and type in “EDGAR SEARCH,” once land on that page type in the company’s name or ticker symbol.

HIGH YIELD SAVINGS ACCOUNT

High Yield accounts are easier to find but to make a significant amount from interest, you have to have over $10,000 in the account in my opinion. These account are made to give you higher returns compared to a regular savings account or bank account.

Remember this is less risky, when it comes to making passive income, so the returns are not really as big as stocks. What I suggest is to create an account just so you can have money ready to use for convenience but still have money working for you by paying you interest.

ROYALTY FEES

There are plenty of places to collect royalty fees, just to give you an example for “The Way I Save” one of the sites that the blog collects a royalty fee from is merchandise. Teespring is a good site to create graphics that can go on any product and if someone purchases your product you collect a royalty fee.

Now each product can give you more or less money the profit margin varies, but it’s fun and simple to set up. If you want to see an example on how it looks click over to the products page of “The Way I Save” located on the menu tab.

Money Storage

Posted in Saving

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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WHATS A BOND

Posted in Saving

Most people will not buy a bond, but after learning what a bond is and what it can do for you, your going to want to purchase some as soon as possible. As a investor you always want to diversify your investments, any 401k manager or financial advisor will tell you that. That is part of the reason why ten percent of your 401k generally includes bonds.

GENERALLY

In general, a bond is issued when a entity (company or government) needs funding for advancement or backed expenses. Just like a certificate of deposit, with a bond you can only redeem your investment at a specific time. Bonds can be redeemable anywhere from 1-30 years. These type of investments are normally considered low risk in comparison to stocks. Typically the interest you gain from bonds are enough to protect you from inflation.

TYPES OF BONDS

Treasury Bonds – Are issued by the government.

Corporate Bonds – Are issued by corporations for profit.

Agency Bonds – Are issued by federal agencies.

Municipal Bonds – Are issued by cities, states, and countries.

The best bond to invest in, is debatable, but what I prefer is municipal bonds. The reason why I prefer municipal bond is because municipal bonds, are generally exempt from state income tax in the state where the bond is issued. Also municipal bonds are generally moderate risk but can be high, which means this type of bond will give you a pretty good return.

Thank You

For Reading and don’t forget to comment and follow thewayisave.blog

Passive Income

Posted in finances, passive income, Saving, Uncategorized

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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THEWAYISAVE.BLOG

What’s The Plan

Posted in SavingFormat Post format: Image

Success can not happen with out dedication and most importantly goal setting. Writing down your personal goals is the easiest part of goal setting. The difficulty in goal setting is achieving your goals. So what’s the plan ?

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Okay so what’s one of your goals ? Maybe you want to build your own business or retire at a young age. That’s great, but let’s take it one goal at a time. We all have big plans for ourselves but we don’t really do the work for setting goals to get there. If you are wanting to retire at a young age do you have a stock broker or investment account yet, if not go look for the best of the best rates and returns first then select your plan. This is just one step you can make now towards your goal. Find your vehicle, some cars go faster than others its the same for your investments, just way out the risks. If you choose a faster vehicle for your investments, you might crash. If you choose a slower vehicle you are less likely to crash because your going the speed limit.

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 As you choose your vehicle and set reachable goals, you want to have a vision behind it all. The bigger your vision, the more drive it will bring when accomplishing your reachable goals. Allow me to give your an example:

my vision for everything I do is to influence and change the bad habits of the world to create an atmosphere where people are selfless more than selfish.

SUMMARY: set reachable goals and a line it towards your vision.