You have probably heard a lot about penny stocks. I’m sure you have seen ads all over the Internet that advertise things like “Get rich with penny stocks!” or “Turn pennies into thousands!”.
Well unfortunately those ads aren’t very realistic.
I know, I know, it’s surprising to find something on the Internet that may not be true. Is it possible to make a lot of money with penny stocks? Sure. You can make money with anything if you are good at it or lucky, but it’s definitely not for everyone and it’s not really investing.
So what exactly is a penny stock?
This infographic from tribehr.com is full of interesting facts about women and men in the work place.
What? This doesn’t seem to be a politically correct topic. That’s because it probably isn’t, but I am OK with that.
This infographic is about the stats and it’s interesting to see them. Here we are going to look at several determining factors, such as:
- Growth of pay raise size
- Comparison of pay raises
- Recognition from peers
Here is the infographic, please don’t be offended, it’s just the stats!
The wealthy and the not-so-wealthy obviously have different habits. People come into their wealth different ways, but their habits are similar.
You may already have some of these habits. You could already be using some of them.
It’s also important to note that these are habits you should develop, which indicates that you may already have them, you just need to continue to develop them even more.
So, here are 3 of the habits that you need to take control of your finances…
Credit cards are becoming the go to way to pay. With everyone using credit cards, there has been a growing concern for your safety with using them. How do you know when your credit card information is safe and when it’s not? Is it safe to use credit cards online?
Read on to get some answers…
First off, let me clear something up. Using your credit card online can actually be safer than using it at brick and mortar businesses.
For example, one of the common ways people have their credit card information stolen is at restaurants since servers will often take your card out of site to charge it.
So how can you prevent that?
Technology can be an important part of our lives. After all, this is the information age. It’s important to not go broke when trying to keep up with technology, but it’s also easy to spend a fortune if you’re not careful.
Here are 3 tips to keep you up to date with technology, while keeping your finances in check…
First off, just hold on a second!
These are some little-known and some often forgotten ways to get cheap books and even free books. Reading is one of the most productive ways to pass the time and as they say:
Leaders are readers
Read on for 4 ways to get cheap books and free books!
But wait! Your Book May Already Be Free!
Before you buy a book, make sure it is not already free online. Many books that are in the public domain are available online for free…
When you go to buy your first stock, you may be a little confused about the terms involved. Especially the stock market order types. These are simple terms once you understand them and they may be highly beneficial to your stock portfolio.
The main terms you need to know initially are the terms for stock market order types. These are the basic ways you can order a stock…
So often, in talking to couples who have been married for over 10 years, I hear them mention that some of the funnest dates and the best times spent together were in the early years. Usually in the early years of your marriage, you are trying to make ends meet and learning to live together. So generally you are used to frugal living.
It’s not a secret that most young couples are usually living (or trying to live) a frugal life, but sometimes these years are taken for granted. Going on cheap dates and hitting up the dollar theater is actually a lot of fun. Sometimes getting out of debt can be just as fun!
If you are trying to pay off debt, then you should be trying to cut costs and pay as much towards your debt as possible. Temporary frugal living not only helps you get out of debt, but it can be a blast!
These are great quick date ideas for maximizing fun and frugality. Some are even free! Usually the more cost-effective a date is, the more quality time you spend together. Expensive dates tend to have distractions and attractions that take time away from you and your mate and focus more on the things you are paying for.
Is it really worth it? Sometimes, but often it’s not.
The dates below are great ways to save money and spend time together. Some of them involve using things you already have, like fuel in your car, food in the cabinets or other things at home, but the point is that you should be able to do these dates without coming more than $10 out-of-pocket…
Setting realistic financial goals is what separates the successful from the unsuccessful. Goals are good for every area of life, but setting financial goals specifically is important. The process of setting goals is just as important as having them, so let’s look at what it takes to set realistic and effective financial goals.
Determine Your Goals
Just like with any goal, a realistic financial goal needs to be specific, attainable and written. It will only hurt you to set a goal for an amount or a time period that isn’t realistic. It is very important that you write a specific goal, including all of the numbers involved.
All goals should be written.
You’ve probably heard the popular statistic: only 3% of people write their goals down and that says something about the small amount of people that stick with goals and achieve them. Putting goals in writing holds you accountable to the goal.
An ETF (Exchange-Traded Fund) is a fairly new invention and they are getting very popular. An ETF is similar to an index fund. It tracks a particular index like an index fund, but it is traded like a stock.
This means that an ETF has a ticker symbol and you can buy it by the share. Exchange Traded Funds can also track commodities such as gold and silver. This is a great way to invest in commodities with small investment amounts without holding physical assets. They also give you more liquidity than holding physical commodities…
A bond is a form of investment. Simply put, a bond is debt.
When you buy a bond you are basically offering a loan to a company or government, and the entity that you borrow from is then in debt to you; unlike a stock where you own a share (or a piece) of a company, with a bond you are just loaning the money for a certain amount of time.
This article is for the investor wanting to know what a bond is (for investing purposes not macro economical purposes) so I won’t get too deep into monetizing, but I will say that bonds are often what people are referring to when they talk about the government printing more money out of thin air. This occurs through selling bonds to the public, as well as the government buying their own bonds (monetizing).
So what are the rates of return for bonds?
Once you have paid off your debt (with the exception of your mortgage), you are ready to start seriously investing.
The only exception for investing before you are debt free is retirement.
It’s never too early to start investing some amount into a retirement account, whether it be through your work’s plan or on your own plan.
Retirement should be an automatic amount that is deducted every month, no matter what.
This is the philosophy: Pay yourself first!
Even if you can only afford $10/month at first, you should be investing something into a retirement account…
This is a quick guide on dumping your debt.
Debt comes in many forms, such as mortgages, credit cards, loans and ways you’ve never imagined.
Nowadays, people find new, innovative ways to get themselves buried in it everyday.
It’s an art really. This brings me to my first point:
Debt is not our friend. In fact, it’s the enemy.
Racking up debt by taking out loans and making minimum payments on credit card bills can ruin your life. Fortunately there are solutions to this problem.
Here’s a little secret…
Unexpected events are some of the only events we can expect.
How do you expect the unexpected? You need a plan.
It’s important to be prepared. Financially, there is one major step to take that can leave you feeling secure.
An emergency fund.
An emergency fund is the most important foundation of your financial health. No matter where you are in your financial journey, having an emergency fund will get you closer to your goals and limit your setbacks.
Using a credit card for emergencies can turn an emergency into a catastrophe. Getting into credit card debt will just create more problems, that’s why we plan for emergencies without credit cards, right?
Let’s start with the basics…
No matter what your beliefs are, I think most of us are pretty familiar with this passage:
“give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap. For with the measure you use it will be measured back to you.” (Luke 6:38, ESV)
Giving isn’t only popular among Christians, some other influential figures had been known to have high regards for giving:
“The value of a man resides in what he gives and not in what he is capable of receiving.” – Albert Einstein
And remember, no matter your financial situation, you can always give something…
Once your monthly bills are organized, you can set back and relax.
It just takes a little time to accomplish this and it’s worth the peace of mind.
Don’t be late on your bills because are unorganized.
That is no excuse and the companies that you pay would agree. Get organized! Know what and when money will need to be paid.
There are 3 simple steps…
After you know your net worth, you need to figure out if you are headed in the right direction.
You need to figure out where your money is going. To do this you will need to track all of your expenses. Write down every bill, payment and expense that you pay in a typical month.
Most of the time people spend a lot more than they think they do.
This is why it’s important to…
Determining you net worth is an easy formula, but getting all of the information together may be time-consuming.
It’s worth it.
You need to know you net worth because you need to know where you are starting. If you already know your net worth then you can skip this step.
How do you determine your net worth?
It’s a simple formula…
The most important step to success in anything is the first step. If you don’t begin, you won’t get anywhere.
As we know from Lao-tzu: “A journey of a thousand miles begins with a single step”.
This is the first article in a series on beginning your path to financial success. Always remember that finances often seem more complex than they really are. It’s important to know that you control your financial future.
You can choose to be financially free.
A mutual fund is like a bucket full of multiple different stocks, bonds, securities or a combination that you invest in collectively. When you buy into a mutual fund, you are buying into all of the securities in the fund by making one single investment. It is a great way for instant diversification.
There are different types of mutual funds…
There are stock funds, sector funds, passively-managed, actively-managed, load, no-load, money market funds, balanced funds and that’s just naming a few of them.
This may seem confusing, but if this seems more complicated than you would prefer, there is a simple rule that you can live by…
An index fund is a fund that tracks an index, such as the S&P 500, the Nasdaq 100 or the Dow Jones (the 3 most popular American indexes). So what exactly is an index?
What is an Index?
An index is a representation of a portion of the stock market.
For example: The Dow Jones Index is comprised of 30 companies, these are 30 of the largest and most influential companies in America. So if you were to invest in a Dow Jones index fund, you would be able to invest in a single fund, but that single fund would be invested in all of the companies on the Dow Jones Index.
There are larger indexes, the largest among popular indexes probably being…
The stock market can be scary for new investors, but it’s not quite as complex as the folks on Wall Street want to pretend it is. This brings us to the most basic question about the stock market: What is a stock? A stock is a share of a public company.
What is a “public company”?
There a private companies and there are public companies. Private companies are owned by individuals or by other companies. Public companies are owned by, you guessed it, the public! This is a way to have multiple people contribute to a company financially.
Here is an example…
Car payments are a beautiful thing, aren’t they?
Of course they are…when you are the one receiving them.
When it comes to car payments, you have 2 options.
You can take out a loan, put yourself in debt and pay interest on your monthly payment to a financial institution or you can opt for the better option…
IRAs are great for retirement accounts, but that’s that all!
There are many little-known uses for an IRA to shelter money from taxes.
Normally when you pull money out before retirement, you are penalized with an additional 10% tax, but here are some ways to avoid that extra fee…
First off, an IRA (Individual Retirement Account) is NOT an investment.
An IRA is a shelter for investments. A tax shelter.
In an IRA, you have the options to buy stocks, bonds, mutual funds, money market accounts, CDs and, in some cases, real estate.
The purpose of using an IRA as an investment account to hold all of these securities is simple…
The envelope budget system is an easy budget for people who want/need to physically see where there money is going.
It’s a very simple process; in fact, all you need to get started is a few envelopes.
You will use a different envelope for each category in your budget. When you receive income, you simply put the correct amount in each envelope for that particular category.
It’s a cash system…
Discipline is the difference between financial success and financial failure. Getting disciplined means staying on track and staying focused on your goals. This applies to almost every aspect of your finances.
From budgeting to investing, discipline and sticking to your limits are the most important things, because without discipline, it won’t matter how much money you earn or how much money you invest.
You can earn a million dollar salary and invest regularly, but it you are not disciplined in spending and investing approach, you could lose everything. As far as your budget is concerned, discipline will make it or break it…
Now you should have all your income and all of your expenses for one month. Now it’s time to start telling your money where to go.
To really start getting detailed, you need to ask yourself what the main purpose of your budget will be.
If getting out of debt is the main reason, then the emphasize should be placed on using as much money as possible to pay down debt.
If retirement, investing or saving is your motivation for a budget, then it should be geared towards exactly that. Having strong goals will help you stay on track with your budget.
A budget doesn’t have to be boring. They can actually be fun. Best of all, they are not difficult! When you are getting started you have to know 2 main things to create a budget:
- How much you make
- How much you spend
So let’s start with your income. How much money do you bring in after taxes and deductions? This is called your net income. This is the actual money you have to spend every month. This includes any income you would make in a month.
If you have an irregular income, like people in the commissioned or service industry, then you have two options…