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Apache is functioning normally

December 2, 2023 by Brett Tams

Inside: Do you find it difficult to stick to a budget, despite trying your best? If so, you’re not alone. Budgeting can be a tricky task, but by understanding flexible vs variable expenses, you will better manage your money.

Creating a budget is a fundamental step in shaping your financial well-being, and understanding how your expenses fit within this budget is essential.

These are expenses that can be easily modified or eliminated when monetary constraints arise, thus playing a significant role in stabilizing your financial health.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What is a flexible expense?

A flexible expense is a budget item you can adjust or modify as per your financial situation. This wiggle room inherent in such costs is not vital for survival, unlike the rigidity of fixed costs such as rent or health insurance.

Typically, flexible expenses mirror variable expenses.

You can manage these flexible expenses depending on your financial goals or constraints, making them an important part of budget planning.

Fixed Expenses	Variable Expenses	Flexible Expenses
A fixed expense is a cost that remains constant and is paid at regular intervals, such as mortgage payments, car insurance, or cell phone bills, making it predictable and crucial for budgeting purposes.	A variable expense is a cost that changes over time, fluctuating based on individual decisions and circumstances, encompassing both essential spending like groceries and discretionary purchases like movie tickets.	A flexible expense is a non-essential cost in your budget that you can adjust, reduce, or eliminate to save money, encompassing diverse categories like vacation spending, beauty treatments, electronics, dining out, and entertainment services.

What is an example of a flexible expense?

There are countless opportunities for flexible spending, some of which we might not even realize. Common examples include:

Vacations: A sunny beach holiday might be highly appealing, but not always financially feasible. There are alternative, less expensive options such as a staycation.
Beauty treatments: Items like haircuts, manicures, and massages fall into this category.
Electronics: The urge to upgrade to the latest smartphone or tablet model is understandable, but if your current device works fine, that’s an expense you can postpone.
Food and dining: While we all need to eat, the amount spent on eating out, or grabbing a latte on the go can be adjusted.
Entertainment: Expenses here include streaming services, cable television, concerts, or movie outings. There are plenty of free things to do that don’t cost money.

Remember, the trick lies in distinguishing between what you need and what you want.

Distinguishing fixed expenses from flexible expenses

The main difference between fixed and flexible expenses lies in their ability to change.

Fixed expenses, like your rent, or more specific elements such as a lease payment, represent costs that you’re obligated to cover regularly. They’re usually consistent in amount and include items such as utilities, phone bills, insurance premiums, and car payments. Handling these sensibly is crucial as postponing or canceling these could lead to severe consequences.

On the flip side, flexible expenses vary and can be adjusted or cut out entirely depending on your financial situation. These can range from dining out and entertainment costs to clothing purchases and vacation expenses. By taking control of your flexible expenses, you can ensure financial stability, even when incomes fluctuate.

Flexible Expense List Questions to Ask

Are you incurring this expense out of necessity or is it more of a luxury or desire?
Do I have control over the total amount spent on this expense or is it a constant obligatory payment?
Can this expense be eliminated or reduced without drastically affecting your lifestyle or basic needs?
Does this expense vary from month to month or can it be controlled based on your financial situation?
If you were to face financial constraints, could this expense be readily cut back or postponed?

If you answered yes to these questions, then you have a flexible expense.

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Which budgeting method works best for flexible expenses?

Choosing the best budgeting method varies greatly depending on your financial habits, goals, and discipline.

Regardless of the budgeting method you choose, remember that flexible expenses are the last thing that you prioritize in your budget.

Option #1 – Envelope System

The “Cash Envelope System” works well for many, where you allocate a specific amount of money for each flexible expense category in separate envelopes. You only spend what’s set aside in each envelope, assisting in keeping variable and flexible costs in check.

The envelope system allows you to save in advance for flexible expenses you want like a vacation or new car or even new clothing.

Option #2 – Pay Yourself First

Alternatively, the “Pay Yourself First” budget prioritizes savings. Something we like to do around here at Money Bliss.

Right after receiving your paycheck, you immediately transfer a designated amount into your savings or investments. The remaining money is then divided among your fixed, variable, and flexible costs.

Option #3 – Zero Based Budget

Lastly, the “Zero-Based Budget” is a method where every dollar you earn is allocated to a particular expense category, leaving you with a zero balance at the end of the month.

This 3 layer system starts with your fixed expenses, then moves to variable expenses. If you have money left over, then you can work on including those fun money flexible items or a deposit into savings account.

In essence, the best budgeting technique is one that fits your needs and aids in achieving your financial goals.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

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YNAB vs Mint

How do you budget for flexible expenses?

Budgeting flexible expenses may seem daunting initially, but with a systematic approach, it becomes manageable.

Here are the steps to follow:

Calculate Your Income: Identify your total monthly income after taxes, this is your starting point.
Identify Your Monthly Expenses: Take your bank and credit card statements; evaluate your spending habits to identify your expenses. Start with your fixed expenses as those are priority. Then move to variable and flexible expenses as your budget allows.
Set a Budget: Employ the 50/30/20 rule (or any other method that works best for you) to divide your income between essentials, flexible expenses, and savings.
Track Spending: Regularly monitor your spending against the budget set.
Adjust and Control: After monitoring, make necessary adjustments to control your expenditures.
Consistency: Continually follow these steps for a few months, change gets easier over time, and so will managing flexible costs.

Budgeting, especially flexible budgeting, allows for financial adaptability, enabling companies to seize unexpected opportunities or navigate emergencies without severe monetary strain.

How tracking your spending can help

Learning to recognize your overspending by diligently tracking can offer an enlightening picture of your financial habits. It aids in understanding where your money is being utilized and exposes any neglected ‘financial leaks’. A no spend challenge can help you pinpoint these issues.

Planning and then tracking your spending is crucial in forming an effective budgeting strategy. This is where a calendar can come in handy.

Tracking can be achieved manually via saving receipts, noting down amounts, or through digital means such as online budgeting tools or apps like YNAB or Tiller Money. With regular tracking, you can regulate your spending. Thus, ensuring you stick to your set budget, and make informed future financial decisions.

Tiller Money

Your financial life in a spreadsheet, automatically updated each day.

Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.

Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.

Pros:

Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.

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Tips and tricks for handling flexible expenses in your budget

Optimizing your budget while dealing with flexible expenses need not be a daunting task. Here are some tips to help:

Prioritize Savings: Always try to prioritize savings. One of our money saving challenges can help you.
Use Sinking Funds: This is money set aside to be used at a future time for a specific purchase.
Control Impulsive Spending: Limit frequent shopping trips, reduce eating out, and avoid buying unnecessary gadgets.
Substitute Luxuries with Alternatives: Option for budget-friendly alternatives like watching movies at home instead of the cinema, or cooking at home instead of dining out.
Utilize Budgeting Tools: Make use of budgeting apps or financial management tools that can track spending and help maintain your flexible expenses.
Practice Mindful Spending: Stay aware of your financial goals and make purchasing decisions that align with those goals.
Utilize Discounts: Seek opportunities for discounts that can contribute to these savings. For instance, some car insurance companies provide a discount for annual payments rather than monthly.

Remember, the goal isn’t to eliminate flexible spending entirely. But to strike a healthy balance that aligns with your long-term financial health.

Quicken

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

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FAQ

By tracking and managing these expenses, you can have more control and insight into your finances as this is where most unmindful spending happens.

It enables you to understand better where your money goes each month and helps avoid unnecessary spending. When you curtail these expenses, you free up money that can be used to pay off debts, save for future goals, or invest.

Therefore, skillful handling of flexible expenses allows you to maintain a well-rounded and healthy financial state.

Rent generally falls under the category of fixed expenses rather than flexible ones as it is typically a set amount due regularly.

Ready to Solidify Your Budget with these Examples of Flexible Expenses

Conclusively, budgeting with flexible expenses is an essential skill for effective financial management and becoming financially stable.

The key lies in balancing your needs and wants, recognizing and eliminating unnecessary spending while prioritizing necessities. Making use of budgeting tools, like the 50/30/20 rule, can also be advantageous and strategic.

Remember, it’s crucial to be aware not only of your income but also of where your money is spent, as gaining control over your flexible expenses can help avoid financial strain and achieve your financial goals. Always strive to adapt your spending habits to best fit your financial situation.

Now, learn how to handle unplanned expenses.

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

December 2, 2023 by Brett Tams

Penny stocks offer a unique glimpse into the lesser-seen side of the stock market. These stocks, tied to small and sometimes obscure companies, present a blend of opportunity and challenge, attracting investors with their potential for high returns despite inherent risks.

In the history of penny stocks, there are tales of spectacular gains and equally dramatic losses, reflecting their unpredictable nature. This market segment appeals to a certain type of investor: one who is not just willing to take on risk, but who is also keen on conducting thorough research to unearth potential opportunities in overlooked corners of the market.

This introduction to penny stock trading aims to strike a balance between the excitement of potentially lucrative investments and the sober reality of the risks involved. As we delve into this topic, we’ll explore both the allure and the cautionary aspects of trading in penny stocks, offering insights for those curious about this intriguing area of finance.

What are penny stocks?

Penny stocks are defined by the Securities and Exchange Commission (SEC) as shares issued by small or micro-cap companies for any amount below $5 per share.

They typically trade on the over-the-counter (OTC) or dark market. But you may find some on U.S. securities exchanges, foreign exchanges, and in rare cases, on major stock exchanges.

They are designed for investors who can withstand a high level of risk, as the low price point is a tell-tale sign of bigger issues going on within the company. It could be anything from cash-flow issues to impending bankruptcy or fraud. You could also be dealing with a startup with little to no track record or a company with management woes.

Profit Potential in Penny Stocks: What to Expect

Penny stocks, often trading below $5 a share, can seem like a gateway to quick profits in the stock market. They’re attractive because of their low entry cost and the dream of buying a stock for pennies today that might be worth dollars tomorrow. However, it’s crucial to temper expectations with reality.

While there are occasional stories of penny stocks skyrocketing in value, these are more the exception than the rule. The overall success rate for investors in penny stocks is generally lower than in more traditional stock investments, largely due to their volatility and the opaque nature of many companies represented in this segment.

Navigating the Risks: The Realities of Penny Stock Investments

When considering penny stocks, it’s important to understand the risks involved. These stocks are known for their low liquidity, which means it might be difficult to sell your shares at the optimal time.

Moreover, the penny stock market is often a playground for manipulative tactics like ‘pump and dump’ schemes. In such scenarios, stock prices are artificially inflated through misleading or overly optimistic statements, only to be sold off by insiders at a profit, leaving other investors with losses.

What’s more, the lack of comprehensive financial information about these small or micro-cap companies adds another layer of risk. With less regulatory oversight compared to larger, more established stocks, it’s harder for investors to make fully informed decisions.

Making Informed Decisions

If you’re considering diving into the world of penny stocks, it’s vital to do your homework. Thorough research and a well-thought-out strategy are key. Look for penny stock companies with solid fundamentals, transparent business models, and potential for growth.

Be wary of stocks that exhibit sudden price jumps without any underlying business changes. Remember, a disciplined and patient approach, along with a readiness to react to market changes, is essential in navigating the high-risk, high-reward world of penny stock trading.

How to Get Started with Penny Stocks

Step 1: Conduct Thorough Research

Before you jump into penny stocks, it’s essential to do your homework. Start by understanding what penny stocks are and how they differ from traditional stocks. Research the companies behind these stocks thoroughly.

Look into their financial health, business models, and market potential. Pay special attention to their balance sheets, earnings reports, and any news that could affect their stock prices. Remember, information is power in the world of investing, and this is especially true for penny stocks.

Step 2: Set Realistic Investment Goals

Determine what you want to achieve with penny stocks. Are you looking for quick profits, or are you more interested in long-term growth? Setting clear and realistic goals will help guide your investment decisions and keep your expectations in check. Be aware that while penny stocks offer the possibility of high returns, they also come with a high risk of loss.

Step 3: Choose the Right Trading Platform

Select a trading platform or broker that caters to penny stock investors. Look for platforms with low fees, as penny stocks are typically low-value investments and high transaction costs can eat into your profits.

Ensure the platform provides adequate tools and resources for researching penny stocks. Some platforms may have restrictions or higher fees for trading penny stocks, so it’s crucial to read the fine print before making your choice.

Step 4: Start Small and Diversify

When you’re ready to start trading, begin with a small investment to test the waters. Penny stocks are highly volatile, so it’s wise not to put all your eggs in one basket. Diversify your investments across different stocks and sectors to spread the risk. Remember, diversification is a key strategy in mitigating risk in any investment portfolio.

Step 5: Learn from Mistakes and Stay Updated

Even the most seasoned investors make mistakes, especially in the unpredictable world of penny stocks. Take note of any missteps and learn from them. Stay updated on market trends and news that could impact your investments. Continuous learning and adapting your strategy based on your experiences and market changes are crucial for success when investing in penny stocks.

Common Mistakes to Avoid With Penny Stocks

Falling for hype: One of the biggest traps with penny stocks is getting swayed by hype. Avoid making decisions based on promotional emails or hot tips without doing your own research.
Ignoring red flags: Don’t overlook red flags like inconsistent financials, frequent changes in company leadership, or lack of transparent information.
Overtrading: Resist the urge to trade too frequently. Overtrading can lead to impulsive decisions and increased transaction costs.
Neglecting exit strategy: Always have an exit strategy for each investment. Decide in advance at what point you will sell, whether to capture profits or cut losses.

How to Find Promising Penny Stocks: Effective Strategies

Locating promising penny stocks is a nuanced process. While some penny stocks are available on major stock exchanges like Nasdaq, most are traded over-the-counter (OTC). Understanding where and how to find these stocks is crucial for potential success in this high-risk, high-reward market.

Explore OTC Markets and Major Exchanges

Most penny stocks are traded on OTC markets such as the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets, where listing requirements are less stringent than on exchanges. However, some penny stocks are also listed on larger exchanges like Nasdaq, adhering to their stricter regulations and offering slightly more stability. Familiarizing yourself with both OTC and large exchanges broadens your scope for finding potential stock picks.

Leverage Financial Information Sources

To aid in your search, utilize financial information sources like Google Finance or Yahoo Finance. These platforms provide valuable data on OTC stocks, including price movements, volumes, and company news. They are excellent starting points for initial research and tracking stock performance.

Selecting the Right Broker for Penny Stock Trading

Choosing a broker that aligns with your goals is crucial. Consider factors like fee structures, trade surcharges, volume restrictions, and trading limitations. Broker fees, especially for low-value transactions like penny stocks, can significantly impact your profits. Ensure the broker you choose allows you to trade penny stocks, as not all do.

Assessing Broker Resources and Tools

In addition to fee structures, assess the resources and tools each broker offers. Some brokers provide specialized resources for penny stock traders, such as advanced screening tools, research reports, and educational content. These can be invaluable in helping you make informed decisions.

Tips for Choosing a Broker

Compare fee structures: Look for brokers with low fees and surcharges for buying penny stocks.
Check for volume restrictions: Ensure the broker doesn’t impose restrictive trading limits that could hinder your strategy.
Research broker reputation: Choose a broker with a good reputation for customer service and reliability.
Evaluate educational resources: Consider brokers that offer educational materials and resources specifically designed for penny stock traders.

Finding the Best Broker for Your Penny Stock Investments

When it comes to choosing the best broker for penny stocks, there isn’t a one-size-fits-all answer. The ideal broker varies based on individual trading styles, preferences, and goals. Here’s a comprehensive list of the best online brokers for stock trading of 2023 can be a great starting point.

It’s important to verify that the brokers you’re considering do indeed offer penny stock trading, as not all brokers provide this service. Make sure to choose a broker that aligns with your investment strategy and provides the necessary tools and resources for penny stock investors.

Risks and Considerations of Penny Stock Trading

Before you dive into the world of penny stocks, there are some risks you should be aware of.

Trade Volume and Fees

It’s no secret. The trading volume for penny stocks is relatively low because of their risky nature, so you may find it difficult to buy and sell at the most optimal times. You also want to pay attention to the fees that brokers sometimes tack on to penny stock trades.

If you find that they are substantially higher than what you’d pay to trade regular shares, move on to brokers that don’t employ this practice.

Exchanges

If the shares aren’t listed on a major exchange, like the NYSE or Nasdaq, proceed with caution as the regulations are little to non-existent. In turn, you have much more to lose, as there’s no way to gauge how the penny stock company will perform in the short or long term with little information to go on.

Return on investment

When trading stocks, there’s no guarantee that you’ll turn a profit. In fact, the odds definitely aren’t in your favor if the company the shares are tied to is in the midst of a financial storm or rough patch.

While this isn’t a definitive nail in the coffin, you have to think about the time between the purchase of shares and when the penny stock price appreciates and if it’s worth the wait. This could take months, if not years.

Penny Stock Scams

Be on the lookout for scam artists that promise to make you wealthy from trading penny stocks overnight. They do this by promoting a particular penny stock heavily or issuing warnings that a particular penny stock should be avoided at all costs. Either way, these deceptive marketing tactics can drive stock prices up or down in a jiffy and wreck your earning potential.

Strategies for Trading Penny Stocks Successfully

Setting clear goals and risk tolerance

Ensure that you clearly understand your investment goals and risk tolerance before you get started. This can help guide your decision-making and ensure that you are comfortable with the level of risk you are taking on.

Using stop loss orders and other risk management techniques

Stop loss orders and other risk management techniques can help to limit potential losses in penny stock trading. These techniques can help to protect your investment and keep you from making rash decisions in the face of market volatility.

Being patient and disciplined in decision-making

Successful penny stock investors are often disciplined and patient. They take the time to thoroughly research potential investments, avoid the temptation to chase after quick gains, and stick to a well-thought-out trading plan.

Bottom Line

Penny stock trading offers a unique blend of risks and rewards, appealing to those willing to navigate its volatile waters. It’s crucial to approach this market with thorough research, a clear strategy, and realistic expectations. Remember, while the potential for high returns exists, so does the risk of significant losses.

Your Next Steps

Educate yourself further: Continuously expand your knowledge about penny stocks. Resources like financial websites, investment books, and online courses can provide deeper insights.
Stay informed: Keep up with market trends and news. Regularly visit financial news platforms and consider subscribing to newsletters focused on penny stocks.
Connect with a community: Engage with online forums or local investment groups where you can exchange ideas and learn from experienced penny stock traders.

Trading penny stocks isn’t for everyone, but with the right approach, it can be a rewarding part of your investment portfolio. Always invest wisely, understand the risks involved, and never stop learning.

Frequently Asked Questions

How much money do you need to start trading penny stocks?

It depends on the broker you open an account with. Each broker has different minimum deposit requirements for opening an account. Most of them don’t have any requirements at all.

Are penny stocks hard to trade?

Penny stocks can be volatile and unpredictable. They are also subject to market manipulation. Most active traders who trade them are day traders, and only about 10% of them are actually profitable.

Why are penny stocks risky?

Penny stocks can be highly volatile and are typically subject to greater risks than larger, more established stocks. They may also be more susceptible to fraud and manipulation, which can lead to significant losses for investors.

Is Robinhood good for penny stocks?

You can trade penny stocks on Robinhood. However, the only penny stocks supported by Robinhood are stocks that trade on either the NASDAQ or NYSE. While most penny stocks are not listed on these major exchanges, exchange-listed penny stocks are typically viewed as the safer alternative to OTC stocks.

Source: crediful.com

Apache is functioning normally

November 30, 2023 by Brett Tams

Editor in Chief Sarah Wheeler sat down with Kenon Chen, executive vice president of strategy and growth at Clear Capital, to talk about appraisal modernization and how technology is just part of the solution.

Sarah Wheeler: What are some of the biggest challenges right now?

Kenon Chen: The challenge that’s in front of everyone continues to be the market itself, and then housing affordability. With mortgage rates continuing to remain high and home prices remaining high because of low supply, we’ve had another year of a reduced market. It’s difficult for lenders who don’t have a lot of extra cash to invest in making big changes right now — they need to stay focused on running their business in a smart way. But that’s why I think it’s really on solution providers like us to run ahead and create great opportunities that don’t require a lot of extra work and time and investment.

For us that means really simple APIs that are easy to integrate with, providing flexible options for how lenders can consume the products. That’s also making sure we’re partnering with the ecosystem to solve problems before the lender even asks for it and working with partners to make sure they can consume these products within the solutions they’re already using. That’s been a big part of the focus: getting the whole ecosystem to work together better so it doesn’t put all the onus on lenders to have to integrate a lot of different places to just get one solution together.

SW: How are appraisers adapting to some of these challenges, including new rules on valuations from the GSEs?

KC: Change is always hard. The GSEs implemented a number of policy changes that are an evolution from what appraisal has been for decades. So now we have multiple risk-based options: waivers, waiver plus property data, desktop appraisals, hybrid. Lenders and appraisal companies have a lot more menu options and their tech choices have to take them down the right path.

We’ve invested in the property data collection process and scaled it for a national level with mobile tech to capture all of the data right at the site. We’re using computer vision, AI, to capture the whole property into the space. We’re creating a digital twin and bringing the property into the digital realm, building a formation model and driving from that place as opposed to starting from a clipboard.

That’s required changes for everyone involved and we’ve been rolling that out as the market change happened at the same time. We see lenders really looking to the future and preparing for when volume returns — investing now to have a competitive edge in the future.

SW: How hard is it to change the way valuations are done at a fundamental level?

KC: Many lenders’ loan origination systems are really just providing a document repository and maybe some screens. But what ends up happening is that underwriters have to open up a lot of different documents, go to a lot of different sites. And one, that’s inefficient, but two, I think there’s something powerful about aggregating all the data first, running models on it, and then bringing back findings that focus underwriters where they need to look.

Most lenders’ loan origination systems are not designed to do that, for collateral especially. That’s been an area that’s a lot more PDF-based, because you have a PDF-based appraisal, you have a PDF base SSR. So that’s why we’ve invested a lot in a tool with an API that you can bring all your findings in at one place, as well as underwriting tools that put the right information in front of the right person at the right time. But all of that takes years of investment to create something that is really battle tested and can have proven results.

SW: Is the end goal of appraisal modernization to replace appraisers?

KC: The GSEs say all the time that they didn’t redesign these processes to replace appraisers, but to add more objectivity to the process, to create efficiencies in the process. Regardless of the tech used, there are human eyes reading, observing and looking at the data or a model, but starting with objective truth about the subject property is essential. And having a process that’s repeatable and standardized and consistent in every community — that’s where tech really helps.

We’ve been able to roll out standards through our mobile app that guides appraisers so that they’re grabbing the same data in the same way at every home. The evolution of mobile tech and AI and then greater connectivity when it comes to APIs to bring that data to people at their desks is what’s allowed us to approach this differently and do it at scale.

SW: Getting accurate square footage and floor plans has been a thorn in the side of the GSEs and agencies for years. Is that now solved?

KC: We went shopping for a solution back in 2016. There was a refi boom in Oregon and Colorado and appraisals were taking six weeks at the time. There was so much pain caused by elongated turn times — borrowers having to live In hotels when they were in between properties. We thought there has to be a better way.

Looking at the amount of time just driving, a time study showed appraisers were spending sometimes 30-40 hours a month just driving. Instead, we wanted to bring homes to the appraiser. We tried everything but we didn’t find anything that scaled to where anyone could do it with a mobile phone. Then we discovered CubiCasa and it actually worked. We had a partnership that led to acquiring the company. It’s now been adopted by real estate agents, brokers, photographers. We have about 30 Multiple Listing Services who have partnered with us as well.

MLSs want more accurate data and public records not always up to date. CubiCasa provides better data, shortening the days on market for the property. Consumers can really understand the property before they visit. It’s really rare that an app helps both the real estate process and the mortgage process and also makes secondary investors more comfortable.

SW: What keeps you up at night?

KC: Tech is always changing. And the conversations around generative AI have captivated the industry because seeing how fast things are changing and how fast these new capabilities are coming is now a lot more visible. So it’s always necessary to innovate, but in a way where you’re not introducing risk into the system. For us, it’s always about innovating in a thoughtful way, not just to try the new thing for the sake of trying a new thing, but making sure it really will have the outcome, the benefits we’re looking for and that it can be really useful to our clients.

Apache is functioning normally

November 30, 2023 by Brett Tams

Building your dream home in Oregon is an exciting journey, shaped by the state’s diverse landscapes – from Portland’s urban scenes to the serene Willamette Valley.

This Redfin article is curated with insights from seasoned Oregon builders, and navigates you through essential steps. From local building codes to sustainable practices, these practical tips empower effective project management, bringing your vision of an Oregon home to life.

7 essential pre-build tips for your Oregon home

1. Set a realistic budget for your Oregon build

Building your dream home in Oregon requires careful budgeting due to the state’s cost variations. Researching current prices for land purchase, design, permits, construction, and interior finishes is crucial. For land, costs range from $10,000 to $150,000+ per acre based on location. Design and permitting fees can be $5,000 to $20,000 and $1,000 to $5,000, respectively. Construction costs vary from $150 to $350+ per square foot. Interior finishes, including basic ($20,000 – $50,000), mid-range ($50,000 – $100,000), and high-end ($100,000+), add to the budget.

These estimates are general, so consulting local professionals is essential. Be mindful of unforeseen expenses and market fluctuations, ensuring a well-prepared budget for your Oregon home construction.

2. Make sure you account for Oregon’s climate

Building in Oregon requires meticulous consideration of its diverse climate, ranging from coastal to mountainous regions. Collaborate closely with your builder to create a weather-conscious construction schedule, accounting for variations in rainfall and snowfall. Coastal areas like Astoria experience higher precipitation, while desert regions like Bend are drier. Plan construction activities during the drier seasons, typically summer and early fall, to avoid weather-related delays.

Be proactive in protecting materials from rain and snow, and maintain flexibility in your schedule due to Oregon’s unpredictable climate. Regular communication with your builder is crucial for a successful and adaptable construction process.

3. Be informed about Oregon’s building codes and regulations

Understanding Oregon’s diverse regions involves navigating specific building codes tailored to each area. In coastal regions like Newport, emphasis on structural resilience against storms may require reinforced roofing and foundations. Wildfire-prone areas, such as parts of Southern Oregon like Medford, demand adherence to fire-resistant building standards, influencing material choices and landscaping practices. Cities like Portland, located near fault lines, necessitate compliance with seismic design codes for earthquake resilience.

Stay informed about local regulations. Tailoring your understanding of building codes ensures compliance with local regulations and addresses the unique environmental challenges of your chosen Oregon location. Regular consultations with local authorities and experienced builders provide valuable insights into region-specific codes for a successful construction process.

4. Conduct thorough contractor research and get local expertise

Building in Oregon’s competitive construction industry requires meticulous contractor research. Verify track records, experience, and reputation to ensure the selected contractors are licensed and bonded, providing a safety net for homeowners. For example, when building in regions like Eugene or Bend, leverage local expertise. Local builders possess insights into environmental challenges, permitting nuances, and regional hazards, contributing to a smoother construction process.

This regional knowledge ensures contractors are well-prepared to navigate the specific demands of each area, from eco-friendly considerations in Eugene to high desert challenges in Bend. Regular consultations with local builders and authorities enhance your understanding and facilitate informed decisions throughout the construction journey.

5. Look into builder associations and certifications in Oregon

While general contractor licensing isn’t mandatory, affiliations with associations like the Oregon Home Builders Association can signify commitment to quality. Certifications, such as Earth Advantage, highlight a builder’s dedication to sustainable practices.

6. Choose the right location

Oregon’s diverse landscapes demand thoughtful location selection. Whether it’s the urban vibrancy of Portland or the tranquility of Bend, factor in climate, terrain, and local regulations to align your choice with your lifestyle.

“Constructing a home in Central Oregon comes with unique challenges, notably the region’s unpredictable daily weather,” insists website design company Mooney Marketing. “The weather can swiftly transition from sunny skies to snowfall within minutes. To navigate this, we strategically oriented our house to face South, maximizing sunlight in winter, and adjusted our roof pitch to direct snow away from the driveway. This thoughtful planning is essential, especially considering that snow can persist in our yard until May. If you appreciate cold weather and snow, Central Oregon is an ideal location for your home.”

7. Employ sustainable building practices

Embrace Oregon’s commitment to sustainability with eco-friendly options. Explore features like solar panels, rainwater harvesting, and native landscaping to create an environmentally conscious and efficient home.

“Sustainability in Central Oregon goes beyond trend – it’s a commitment to environmental consciousness and energy efficiency,” asserts Oregon tiny house builders Spindrift Homes. “We embrace eco-friendly construction by using materials with minimal ecological impact, including locally sourced and reclaimed options. We integrate energy-efficient technologies, such as solar panels and advanced insulation, to reduce long-term energy consumption. This reflects Central Oregon’s dedication to a resilient and eco-conscious built environment, harmonizing modern development with environmental preservation in this picturesque region of the United States.”

9 construction and design tips to consider

1. Embrace sustainability and resilience

“Oregonians prioritize sustainable construction, drawing inspiration from lush landscapes and a commitment to environmental stewardship,” shares construction company Kimball Construction. “The diverse climate necessitates careful material consideration for resilience against rain and heat. Homes often embody the Pacific Northwest aesthetic, featuring local wood and expansive windows for abundant natural light. Navigating stringent building codes, particularly in earthquake-prone areas, underscores the emphasis on safety and durability. Building in Oregon is a harmonious blend of innovation, nature, and community values.”

2. Blend indoor comfort with outdoor beauty

When integrating indoor and outdoor spaces in Oregon, a key tip is to focus on creating a seamless transition between the two. This can be achieved through the use of large glass doors or retractable walls that open up to an outdoor living area. Incorporating similar flooring materials both inside and outside can also enhance this sense of continuity. Additionally, consider the use of covered patios or decks that provide protection from Oregon’s rainy weather, while still allowing for an outdoor experience.

“Our focus on timeless design, natural light, and smart technology ensures seamless integration of indoor and outdoor spaces,” states Woodland Construction Group.

3. Invest in energy-efficient features

To address Oregon’s diverse weather, prioritize energy-efficient features tailored to specific regions. In rainy cities like Portland, focus on well-insulated walls to combat moisture. Optimize natural light and insulation with energy-efficient windows. In colder areas like Bend, invest in a high-efficiency HVAC system for effective heating. Enhance sustainability by incorporating solar panels, particularly in eco-conscious regions like Eugene.

Consulting with local energy experts ensures a region-specific approach, contributing to both your home’s resilience and Oregon’s environmental goals.

4. Use durable construction materials for Oregon’s varied climate

Given Oregon’s weather conditions, characterized by frequent rain and occasional storms, prioritize durable building materials that can withstand these elements. In coastal areas like Cannon Beach, where exposure to salt air is a factor, consider materials like cedar siding known for its resilience against moisture and pests. Additionally, in Bend, where snowfall is common, metal roofs provide durability and effective snow shedding.

These materials not only ensure longevity but also demand minimal maintenance, making them ideal choices for Oregon’s varied climates.

5. Prepare for rainy seasons

During Oregon’s rainy seasons, proactive measures are essential to mitigate water-related risks and fortify your home against potential issues. Implement strategic landscaping solutions, such as graded slopes away from the foundation, to facilitate proper water drainage. Consider integrating rain gardens, especially in regions like Salem, to absorb excess water and prevent soil erosion. Well-placed drains, particularly in cities like Astoria with higher rainfall, further contribute to effective water management around your property.

By incorporating these measures, you enhance your home’s resilience, ensuring it remains safeguarded during Oregon’s periods of increased rainfall.

6. Employ fire resilient building strategies

Bend’s new west-side neighborhood Discovery West shares “we employ cutting-edge building practices to fortify the resilience of homes located near the wildland-urban interface, particularly in response to the escalating threat of wildfires driven by climate change. Striking a balance between aesthetics and safety, our community employs key fire mitigation techniques, including meticulous material choices in landscaping and construction, incorporation of fire-resistant plants, strategic tree spacing, and the implementation of small vent screen openings to reduce the risk of embers infiltrating homes.”

7. Add native plants to your landscaping

Elevate your property’s aesthetics while contributing to conservation efforts by integrating native Oregon plants into your landscaping. In regions like Medford, consider drought-tolerant choices such as manzanita and yarrow. These plants not only enhance visual appeal but also adapt well to Oregon’s varying climates, ensuring a sustainable and low-maintenance landscape. Consulting with local horticulturists provides insights into additional native species that thrive in your specific Oregon location.

8. Design a home that is in tune with Oregon’s environment

“Harmonize your home with its natural surroundings by incorporating native landscaping, embracing natural color palettes, and aligning with the neighborhood’s aesthetic,” shares custom home builders Rogue Brothers Construction. “The key lies in choosing an architect and builder with the expertise to bring your dream to life. Collaborating as a team with your architect and builder ensures your home not only withstands the elements but also enhances the beauty of its environment.”

9. Ensure your home is properly insured

Safeguard your Oregon home by considering insurance beyond the standard coverage. Additional protection against natural disasters like landslides or heavy rains is crucial in this region.

Ready to build your Oregon dream home?

Building a home in Oregon is a rewarding journey, requiring strategic planning and collaboration with local experts. These insights from Oregon builders equip you to navigate the unique challenges of the state, ensuring a successful home construction journey in the heart of the Pacific Northwest.

Source: redfin.com

Apache is functioning normally

November 30, 2023 by Brett Tams

Inside: Fixed expenses are a vital part of any budget, and understanding how to account for them is essential to staying on track. This guide will teach you about fixed expenses and how to use them in your monthly budget to keep expenses under control.

Budgeting is the cornerstone of financial stability.

Whether you want to or not, it will take away the stress of money.

A budget is a practical tool that enables you to plan your spending and savings, ensuring a fair share of your income goes towards critical expenses. It also gives you more control over your money, reducing stress and enabling you to meet your financial objectives.

This is something you want, right?

In this post, we will uncover information specifically related to fixed budget expenses.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Decoding Your Expenses – Fixed and Variable

Understanding expenses forms the bedrock of effective budgeting practices. There are two key types of expenses to consider: fixed and variable.

Fixed expenses are those that remain constant every month, such as rent or car payments.
Variable expenses, on the other hand, fluctuate monthly based on usage or consumption, like groceries, utilities, or gas.

Balancing these two types of expenses forms a significant part of personal budgeting.

What is A Fixed Expense?

A fixed expense is a cost that remains typically constant and is paid at regular intervals. These intervals may be weekly, monthly, quarterly, or annually.

Given their consistency, they contribute to financial predictability and ease of budgeting.

What is an Example of a Fixed Expense?

Here are common fixed expense examples that cover a wide spectrum but predominantly include costs required to maintain a basic standard of living. Here are some examples:

Rent or mortgage payments: This encompasses the regular cost of housing.
Insurance premiums: This could be for your car, health, life, renters, or homeowners insurance.
Loan payments: Regular installments for obligations like student loans and car loans belong to this category.
Utilities: Though they may fluctuate occasionally, regular payments like water, gas, and electricity are often treated as fixed costs.
Subscriptions: Recurring payments for services such as gym memberships or streaming platforms.
Savings: For disciplined budgeters, fixed contributions to saving accounts can be considered a monthly fixed expense. This is how Money Bliss readers save so much money!

The list can extend to include other less common fixed expenses, such as alimony, child support, or back tax payments, depending on personal circumstances.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

What is a periodic fixed expense?

A periodic fixed expense is a cost that is regular and predictable but does not occur monthly. These expenses still retain the characteristics of fixed expenses.

They may be caused by quarterly, semi-annual, or annual payment terms and require careful budgeting and planning. Examples include annual subscriptions, car insurance paid semi-annually, or yearly property taxes.

It’s essential to account for these expenses in your budget, dividing the total cost by the number of months until payment to ensure you’re adequately prepared when they’re due.

How to Budget for Fixed Expenses

Budgeting is a crucial financial activity as it helps manage income effectively and ensures all necessities are covered.

Most people use the zero based budget or the biweekly budget as a starting point.

1. Start With Fixed Expenses in Budgeting

Starting with fixed expenses in the budgeting process is essential, as they make up the majority of one’s budget and are typically consistent for longer periods.

When writing out your budget, prioritize fixed expenses such as housing costs, insurance, and childcare. You can use our personal budget categories to find out which expenses you shouldn’t forget.

Upon allocating your income for the month, ensure these bills take precedence over discretionary spending to avoid budgeting errors.

Quicken

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

2. Prioritizing Between Fixed and Variable Expenses

Prioritizing between fixed and variable expenses can often feel like walking a tightrope.

The first step is budgeting for your fixed expenses. Since they make up the majority of your budget and are for longer periods of time, it’s crucial to ensure these costs are taken care of first.
Next, plan for your variable expenses. These costs fluctuate every month and can be adjusted easily.
Finally, you will account for flexible expenses.

As always, don’t forget to save and invest, as this will help with financial sustainability and wealth development.

3. Tools and Techniques for Efficient Budgeting

Today’s digital landscape offers myriad tools and techniques for efficient budgeting, which is great news for you!

Apps and digital tools can facilitate the tracking of expenses in real-time, thus making it easier to discern patterns and identify savings opportunities. Using a line-item budget can help you dig into where your money is going and plan every dollar you earn.

Here are our favorite budget apps.

Regularly reviewing and updating your budget can help you stay on top of changes and future uncertainties.

Tiller Money

Your financial life in a spreadsheet, automatically updated each day.

Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.

Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.

Pros:

Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.

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How do I determine whether a cost is fixed or variable?

Determining whether a cost is fixed or variable often comes down to its consistency and its correlation with a factor such as output, usage, or time.

Fixed costs remain constant over time or within certain activity levels; examples include rent and insurance premiums. They do not fluctuate with changes in production or the number of goods sold.
Variable costs, on the other hand, fluctuate in direct proportion to levels of spending, such as groceries or gas.

Understanding this difference can help with accurate cash flow forecasting and effective financial management.

Strategies to Save on Fixed Costs

Now, the key is to try to lower your fixed expenses as much as possible. This will make the biggest difference in your budget.

For example, if your rent for a one bedroom apartment is $1850, maybe you move in with a roommate, and your rent is lowered to $800 per month. That is a savings of $1050, which you can save for a down payment on a house.

Ways to Curb Fixed Expenses

Optimizing your budget often entails finding ways to reduce your fixed expenses. Several strategies can help achieve this:

Renegotiate Your Bills: Reach out to service providers to negotiate lower rates for services such as insurance premiums, Internet, phone service, and more.
Refinance Your Loans: If interest rates have decreased, consider refinancing your mortgage or student loans to lower the monthly payments.
Downsize Your Living Situation: One major way to cut costs is to find a smaller or cheaper place to live.
Cancel Unused Subscriptions: Regular payments for services you don’t use, like gym memberships or streaming platforms, can silently drain finances.
Automate Savings: Regular, automated transfers to a savings account can enforce discipline and consistency in managing money.

Remember, while these strategies can help you cut costs, each individual’s circumstances are different, so personalized considerations should be made.

Which fixed expense would be most difficult to change if money is needed for car payments?

Car payments are a real struggle for most people. Right now, the average car loan is between $516-725 per month depending on a used or new vehicle. ¹

As such, your largest fixed expenses are usually the most challenging to change.

If you require more money for car payments, the most difficult expenses to alter would likely be your mortgage or rent payments. Reducing these costs often necessitates significant lifestyle changes, such as moving to a cheaper home or obtaining a roommate.
Other difficult-to-change fixed expenses could include insurance or student loan payments, depending on the terms of your loans or policies.

It’s important to have an emergency fund set up for unforeseen repairs like these to avoid having to drastically change your lifestyle.

Practical Tips for Achieving Financial Stability

Achieving financial stability often boils down to effective management and strategic planning. Here are some practical tips:

Pay Your Bills on Time: This reduces unnecessary fees and interest costs. If this is a challenge, setting up automated payments may help.
Save Regularly: Aim to set aside a certain percentage of income on a regular basis. Automated savings plans are a useful tool for this.
Prioritize Spending: Distinguish between your wants and needs to help prioritize your spending.
Get Insured: Protect yourself from large, unexpected expenses by ensuring appropriate coverage on insurance.
Stay Informed: Regular budget reviews and financial check-ups can help you stay on track and adjust your plans as necessary.

Remember, financial stability is a journey, not a one-time achievement. It requires consistency and patience. So, celebrate your small financial victories along the way!

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

Start 34 Day Free Trial

YNAB vs Mint

Frequently Asked Questions

Yes, rent is considered a fixed expense. It is a recurring cost that typically stays constant, regardless of changes in your income, spending, or other factors.

The rental or lease agreement specifies the monthly rent expense, which does not change until the lease period ends or is renegotiated.

If fixed costs become variable costs in a personal budget, it can add some unpredictability to your expenses. For instance, if you have a variable-rate mortgage, your payments may change due to the mortgage agreement.

To restore control, consider opening separate savings accounts for each variable expense category, turning these unpredictable expenses into ones that can be anticipated and budgeted for each month.

Fixed costs refer to expenses that do not change with fluctuations in your budget. They are incurred regularly and remain relatively constant, independent of your spending.

These costs are critical expenses necessary to live your life and cannot be quickly modified or eliminated.

Does This List of Fixed Expense Examples Help You?

In conclusion, examining and reducing your fixed expenses can be a transformative step toward achieving financial stability.

Contrary to popular belief, fixed costs are not immutable. With diligence and thoughtful consideration, you can explore cheaper alternatives for health insurance premiums, cell phone plans, and other consistent expenses.

Lowering your fixed costs enables automatic, consistent savings which can then be directed towards settling debt or securing your future. The beauty of this approach lies in its subtlety as this won’t feel like an imposition on your lifestyle.

Therefore, understanding and managing your fixed expenses can indeed play a crucial role in your journey to financial soundness.

It’s not just about making frugal decisions, rather it’s about making smart ones that can reap substantial benefits in the long run.

Now, do you have the traits needed to be financially stable?

Source

LendingTree. “Average Car Payment and Auto Loan Statistics 2023.” https://www.lendingtree.com/auto/debt-statistics/. Accessed November 27, 2023.

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

November 29, 2023 by Brett Tams

In the past, investing was thought of as something only wealthy people did. And unfortunately, many people used this as an excuse to put off saving for retirement, saying they would do it when they earned more money.

But if you wait to start investing, you lose out on the benefits of compound interest and shortchange your retirement savings. So, it’s best to get started as soon as possible, even if you only have a bit of money to tuck away every month.

One of the easiest ways to invest money is by using micro-investment apps. This article will explain what micro-investing is, how it works, and six micro-investing apps we recommend trying out.

10 Best Micro Investing Apps

Micro-investing apps make it easy to get started with small amounts of money and learn the basics of investing. We’ve compiled a list of the best micro-investing apps on the market today. Whether you’re a beginner or a seasoned investor, you’re sure to find an app that fits your needs and investment goals.

1. Robinhood

Account minimum
Margin accounts,
ETF’s, crypto

Great for beginners!

Robinhood aims to make investing accessible to everyone, which is evident in the fact that the company doesn’t charge any commission or management fees.

2. Axos Invest (Formerly WiseBanyan)

Account minimum
New investors

or goal-based investing

You can get started with Axos Invest (formerly known as WiseBanyan) for just $1. The company doesn’t charge any trading fees for the most basic version. But if you upgrade to one of the premium versions, the company does charge fees.

3. SoFi Invest

Account minimum

$0 for Automated Investing

$1 for Active Investing
Active and Hands-Off Investors

SoFi is a well known brand in the personal finance space, and their investing app is another high quality product.

4. Plynk

Account minimum
$2 per month
New investors

Plynk is designed to guide your learning while you begin to invest. The Plynk app offers investors access to a selection of stocks, ETFs, mutual funds and four cryptocurrencies. And you can start investing with just $1.

5. Webull

Account minimum
Active traders and investors

Webull is a stock trading app offering free stock trading as well as free trades on ETFs, options and cryptocurrencies.

Webull also allows users to trade fractional shares, making it a great choice for micro investing.

6. Stash

Account minimum
$1 per month
New investors

or tax-advantaged
retirement accounts

Stash is another hands-off micro-investing app designed for beginner investors. After you sign up, Stash will ask you a series of questions to determine your tolerance for investment risks. You will be labeled as a conservative, moderate, or aggressive investor.

7. Public

Account minimum
(1-2% markup on crypto)
Young investors

Public.com is a blend of both investment and social media platforms. It’s designed for younger and socially oriented investors who would like to own fractional shares of stocks and ETFs.

8. Betterment

Account minimum
Low balance investors

Goal-based investing

If you’re looking for something a little more hands-on, then Betterment might be a suitable option for you. Betterment gives you the option to work with a financial advisor who can make investing recommendations.

9. M1 Finance

Account minimum
Experienced Investors

M1 Finance might be the best micro investing app for more experienced investors. It is ideal for those looking for customized investment portfolios with some automated options, as well as those looking to set up commission free retirement accounts.

10. Acorns

Account minimum
$1 per month
Hands-off investors

(e.g., College Students)

If you want a hands-off approach to investing, Acorns will be your best bet. After you sign up, you’ll connect your credit card or debit card to Acorns.

What is micro-investing?

According to one survey, more than 47% of Americans are not saving for retirement. When pressed about their decision not to invest, over 34% said they don’t have enough money to invest.

The basic premise behind micro-investing is that you only need a few dollars to start investing. When you use a micro-investing app, you invest in very small increments by buying fractional shares.

With a micro-investing app, you can invest as little as $5. And with micro-investing, you don’t have to know anything about the stock market. The money you save is put in a portfolio of stocks that the company creates for you.

Is micro-investing even worth it?

Micro-investing will not get you rich, and it’s not going to help you fund your retirement goals. For that reason, it’s easy to write micro-investment apps off as not being worth your time.

But every day you put off investing is one less day that your money can grow in the market. So, you can wait until you feel like you have “enough money,” or you can work with what you have today.

Here are just a few benefits of using a micro-investing app:

Invest with very little money: Micro-investing platforms allow you to invest, even if you only have $5 to spare. So if you can skip your morning latte, then you have enough money to give micro-investing a try.
Save it and forget about it: It’s hard to set aside money in a savings account. You know it’s there, and it’s easy to access and spend. With a micro-investing app, it’s easy to save your money and forget about it.
Build positive habits over time: Anytime you’re trying to build a new habit, it’s best to start small. Micro investing allows you to ease into investing, and you can start saving more money when you’re ready.

See also: How to Invest: A Basic Guide to Making Your Money Grow

Pros and Cons of Micro-Investing Apps

While it’s true that micro-investing provides many benefits, they’re not necessarily the right choice for everyone. It’s worthwhile taking the time to understand the all nuances before committing financially.

Pros

24/7 Access

Using a micro investing app allows you full access to your investment account around-the-clock. You won’t ever have to worry about opening hours or holidays getting in the way of your ability to monitor and manage your funds.

Easy Fractional Investment

Traditional investment in stocks and ETFs requires large amounts of funding, but micro investment means you purchase fractional shares quickly and easily. This means you can begin your investment portfolio with your spare change, rather than hundreds or thousands of dollars.

Low Account Minimums

Another factor which makes micro investment apps attractive are the low account minimums. Most micro-investing apps have $0 minimum balance requirements, so you can begin investing with as little as you wish.

Safety

As with traditional investment accounts, legitimate micro-investing platforms will be registered with the U.S. Securities and Exchange Commission. On top of that, all savings and checking accounts with micro investing companies are FDIC insured.

Cons

Fees Can Be High

Account fees can vary, so it’s important to watch out for this. Don’t assume that an account with low minimums will also have low fees. If you’re only investing small amounts, paying high fees might not seem like a good deal in the long term.

Limited Investment Choice

Most micro investment apps won’t allow you to handpick the stocks inside your portfolio. While you will have choice regarding which set portfolios you invest in, you’re less likely to be able to pick and choose specific stocks.

Won’t Change Your Retirement Plans

One thing to keep in mind is that using a micro investment app won’t do much to affect your retirement on its own. It’s more about learning good investment habits, and getting familiar with maintaining and growing a portfolio.

Features of the Best Micro-Investing Apps

So, how do you decide which micro investing app is the right one for you? We’ve compiled a list of the most important features below to help you know what to look for. The best micro investment apps will have the following qualities:

Ease of Use

Fundamentally, the best micro investment apps will be easy and intuitive to use. They are often free of the usual clutter and jargon of some traditional brokerage accounts. With simple, easy to navigate interfaces these apps should provide an enjoyable user experience for all.

Low Minimum Investments

Good investing apps should allow you to access the market with just a few dollars. This is possible because they’re designed to allow you to purchase fractional shares of ETFs and other assets. Not all investing apps will come with a low minimum investment, however, so be sure to check if you’re a low budget investor.

Diversified Investment

The best investing apps will provide users with the chance to invest in diverse portfolios which are automatically generated. Asset allocation and diversification can be challenging even for experienced investors, so this is a great feature of these apps.

When you’re starting out as an investor, the sooner you can learn about diversification the better. And these apps should make it relatively easy for you to both practice and learn about asset diversity.

Educational Tools

As most micro investing apps will be marketed to newcomers, education is an important factor. If you’re just starting out with investing, then the best micro investment app for you will likely provide a wealth of educational resources and advice.

Keep in mind, however, that most micro-investing apps won’t offer access to a professional financial advisor.

Recurring Transfers

The best investing apps allow you to easily set up automatic transfers from your bank account to fund your investment account. A recurring transfer can remove some of the human error involved in managing your account and allow you to quickly build up a habit of funding your account.

Additional Services

While some apps are minimalist and simple, others come with the option of additional financial services. In addition to brokerage accounts, some offer access to a savings or checking account, as well as IRA and custodian accounts. Depending on your own financial goals, an app with additional services might be worth the extra fees.

Final Thoughts

Micro-investing apps make it simple for anyone, even those with just $5 to spare, to begin investing in the stock market. The apps we’ve covered in this article provide a great starting point.

While micro-investing might not cover all your retirement needs, it’s a smart way to begin saving, especially if your budget is tight. The crucial thing is to start investing and gradually increase your contributions over time. This way, you’re setting yourself up for a better financial future.

Frequently Asked Questions

Which micro investing app has the lowest fees?

Among the micro-investing apps listed, Robinhood, Axos Invest, SoFi Invest, Webull, Public, and M1 Finance all offer commission-free trading, which means they do not charge fees for buying or selling stocks and ETFs. So, you can consider any of these apps if you’re looking for a platform with low fees for micro-investing.

Which app is best for small investments?

Choosing the best app depends on your own budget, needs and goals. The market for micro investment apps has grown rapidly, and there are a lot of different options out there.

The list we’ve compiled in this article are our top picks, and are among the best micro investing apps available. These apps make it easy and convenient to begin investing. They also provide various unique features, low fees, good customer support and educational resources.

Who should use micro investing apps?

Micro investing apps are a fantastic way to begin investing small amounts while you learn the ins and outs. But who will benefit the most from using these apps?

Beginner investors: These apps are perfect for young investors and newcomers because you only need a small amount of money to start.
Passive investors: Most of them are actually robo-advisors which invest on your behalf based on your needs and budget. This automated investing allows you to establish a diversified portfolio based on your goals that you can simply set up and forget about, letting it work away in the background.
Emotional investors: Automated investing means you can’t make rash emotional decisions based on market swings. Instead of constantly worrying about market performance, you just invest small amounts and build your portfolio slowly over time.

Can you get rich from micro investing?

Micro investing is primarily a strategy for saving and building wealth gradually over time. While it’s a valuable tool for starting your investment journey with small amounts of money, it’s important to have realistic expectations. It’s unlikely to lead to rapid wealth accumulation or “getting rich” in a short period.

How do I start micro investing?

Investing today is more accessible than ever before. Nevertheless, it still seems an intimidating world for those who have no experience or education. If you don’t know where to start, you can follow these steps to begin investing with confidence:

1. Decide Between DIY or Automated Investing

If you’re not yet comfortable choosing your own investments, and managing your own portfolio, you’ll want to start with robo-advisor investing. It’s totally normal for beginners to feel uncomfortable choosing stock to invest in, and automated investing is the safer option in any case.

2. Identify Your Investment Goals

This is often the hardest step for new investors, but it’s one of the most important. Figuring out your short and long term financial goals will help bring purpose and structure to your investment decisions.

Generally speaking, investing is successful when considered a long term project. You’re much more likely to find success with investments by holding stock long term, rather than trying to figure out when the best time to buy or sell is.

3. Determine Your Monthly Investment

The traditional advice is to save and invest 20% of your monthly income. With the rise of micro investing, however, you don’t even need to invest much to begin with.

It’s important to pick an amount you can reasonably commit to. Of course, you can always change your automatic investment amount, or just add on extra when necessary, but it’s always better to set it and forget it. Even if it’s a small amount, consistency and time and the key ingredients to good investing.

4. Choose an Account That Fits Your Goals

Once you’ve got your budget and goals determined, it’s time to choose a platform to begin investing with.

Keep in mind that you can always switch the platform you use for micro investing, use more than one, or even open a brokerage account. Just make sure to take all fees into account before you sign up and get committed.

Are there any limitations on the types of investments I can make with these apps?

Micro-investing apps typically focus on stocks, ETFs, and sometimes cryptocurrencies. While they offer a wide range of investment options within these categories, they may not provide access to more complex financial instruments like options, futures, or mutual funds.

Source: crediful.com

Apache is functioning normally

November 28, 2023 by Brett Tams

Let’s chat about the stock market. Specifically, let’s think about average investors like me and you. And let’s ask: how much money do we need to invest to become a millionaire?

First, we need to set some ground rules. It’d be easy to say, “If you invested in Apple stock in 2002, you could have 1000x‘d your money…boom, you’re a millionaire.”

But that’s not how reality pans out. In fact, we need to apply logical rules to our investing framework. The rules that I espouse on The Best Interest (and that matter for today’s article) include…

Dollar-cost averaging. It’s too hard to determine when the market is overvalued or undervalued. Instead, the long-term investor should commit to a consistent investing schedule (e.g. $300 every month, or 10% of every paycheck, or $10,000 yearly). In fact, waiting to “buy the dip” is demonstrably dumb.
Investing (in stocks) for decades. Simply put, stocks are not a short-term investment. They’re decades-plus. The data shows why.
Diversifying, a.k.a. buying the whole market. History proves how challenging it is to find the “needle in the haystack” in the stock market. This article dives into further detail.
Buy-and-Hold’ing. We don’t sell our investments when the headlines get scary. We hold. The past month has provided a terrific real-life example of why that is, as did the transition from 2022 to 2023.
We reinvest our dividends. This rule is a bit in the weeds but a complete no-brainer.

Make sense? Let’s now put these rules to work. I went back to 1950 and grabbed all the S&P 500 data (which will act as our proxy for “the stock market”) through today.

Then I asked, “If an investor followed our rules, how much would they have needed to save and invest to become a millionaire?”

***Important note: I’m also inflation-adjusting all this data to 2023 values. Being a millionaire in 1950 was drastically different than being a millionaire today. Hence, everything you see below is adjusted to modern terms to make our understanding easier.

We know compound interest is a powerful tool, so we expect millionaire status to get progressively easier over longer investing periods. But we also know the market can be volatile. Two 20-year periods can provide drastically different investment returns.

So let’s compare 10-year periods against 20-, 30-, and 40-year periods. And we’ll look at all 10-year periods from 1950 to today (same for 20-, 30-, and 40-year periods) to show how much variability/volatility exists.

The Data: Becoming a Millionaire in the Stock Market

This chart shows every 10-year period from 1950 to today.

We label each period by its first year; the X-axis shows that.
We then look at the stock market returns for each period to ask, “What annual investment would have gotten us to $1 million over this period?” The Y-axis shows that dollar amount.
e.g. the left-most bar represents the period from 1950 to 1959. Over that period, a $42,463 annual investment would have grown to a $1M portfolio.

For these 10-year periods, the average investor (the dotted red line) needed to invest $71,595 yearly to reach $1 million.

But the data that sticks out to me is the number of periods with a required investment above $100,000 annually. The 1965 and 1999 starting years are prime examples.

This is a glaring problem! If you’re investing ~$150,000 for 10 years (for a $1.5M total investment) and only end up with $1 million, you lost significant capital. Not good.

My takeaway: even over 10 years, the stock market can be volatile. We need to zoom out further. Let’s look at the 20-year data.

The average investor (in red) must commit $27,203 annually to become a millionaire. For those keeping track, that’s a $544,069 outlay over 20 years that grows into $1,000,000.

This data shows a few periods at or above the $50,000-per-year mark ($50K times 20 years = $1M). In other words, these periods showed near-zero, outright zero, or negative returns over 20 years. Examples include the period starting 1955, ’58-’60, ’62

But most periods provided legitimate, absolute returns. That’s great.

But can the average person save $27,203 per year? Then repeat that for 20 years? And this begs a bigger question that we won’t chase down today: is $1M the right goal in the first place. This is good food for thought.

Let’s move on to the 30-year chart.

The average investor (in red) must commit $11,347 annually to become a millionaire. That’s a $340,432 outlay over 30 years that grows into $1,000,000.

None of these periods flirt with zero or negative returns. The “worst” period was 1952 – 1981, which required a ~$23K annual investment (or ~$695K total) to grow into $1M.

And finally, the 40-year data…

The average investor (in red) must commit $4725 annually to become a millionaire. That’s a $189K outlay over 40 years that grows into $1,000,000.

Again, none of these periods flirt with zero or negative returns. The “worst” period was 1969 – 2008, which required a $7500 annual investment (or $299K total) to grow into $1M.

The Power of Long-Term Investing

The 30-year and 40-year charts are particularly encouraging if you break them down into monthly terms.

$1000 per month is powerful.

For most 30-year periods, $1000-per-month made you a millionaire.
For all but three 40-year periods, $1000-per-month made you a multi-millionaire.

“But $1000 per month is a lot!”

I hear you. But between 401(k) contributions, employer matching, IRA contributions, after-tax investing, etc…$1000 per month is a reasonable goal.

If you’re in your 20s or 30s, set your baseline investing goal at $1000 per month. You’ll be setting yourself up for terrific long-term success.

What If You Don’t Have 3+ Decades?

If you’re reading this at age 50, you might not have 3 or 4 decades to wait for the stock market’s compound magic. What to do?

Let’s consult our trusty bucket method. Think about your current assets and savings based on when you’ll need them in the future…

The money you need in your 50s –> Avoid the stock market. Too risky.
The money you’ll need from age 60-65 –> you can introduce some stocks, but as we’ve seen today, positive returns aren’t guaranteed.
The money you’ll need from age 66-70 –> stocks are becoming increasingly enticing…
The money you’ll need from age 70+ –> 100% stocks is reasonable.

In summary, a fair portion of this 50-year-old’s assets should not be exposed to the stock market. Bonds, for example, are more appropriate.

Despite that, some of their money still has a 20-30+ year timeline. That money should be exposed to a risk asset like stocks.

Financial planning provides the backbone for these types of allocation decisions.

Just Start…

My investing journey started at age 22 with my first employer’s 401(k). Unsure what I was doing, I decided to learn.

11 years later, here I am.

There’s no guarantee the stock market will make me a millionaire. But history is on my side, and I’m controlling what I can (e.g. my monthly savings rate) to make it happen.

I encourage you to do the same.

Thank you for reading! If you enjoyed this article, join 7000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.

-Jesse

Want to learn more about The Best Interest’s back story? Read here.

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Source: bestinterest.blog

Apache is functioning normally

November 28, 2023 by Brett Tams

Companies issue earnings frequently, often on a quarterly basis. But knowing how to read an earnings report isn’t easy, and it requires a bit of legwork to get up to speed and understand the financials that businesses are reporting. Even so, it can be important, as those financials may help dictate your next investment moves.

Again, by learning how to read an earnings report, you could unlock invaluable information about the state of a company over time, as well as come to your own conclusions about whether the company’s stock is a worthwhile buy for you.

The Basics of Earnings Reports

When you invest in a stock, you are investing in a small sliver of ownership in a publicly traded company. To be publicly traded, companies are required to file quarterly (and annual) financial statements with the U.S. Securities and Exchange Commission (SEC).

For the uninitiated, looking at an earnings report may be akin to trying to read hieroglyphics. But you can break down the essentials and with some practice, it should all start to make sense.

Understanding the Essentials of Earnings Reports

Again, earnings reports are financial filings that keep shareholders and regulators apprised of the financial and legal standing of a company, typically filed quarterly. Financial transparency also allows current and potential investors to make decisions about the company through their own analysis and judgment.

Earnings reports contain information about company performance and critical metrics such as profits and revenue (or similar terms, like “net income”), and how those metrics compare to previous quarters or years. They also generally include some guidance or comments from company leadership.

The Timing of Earnings Releases

Generally, when you hear someone speaking of a general “earnings report,” they are referring to the forms 10-Q and 10-K, which are quarterly and annual financial filings, respectively. Both disclose a company’s revenue, expenses, profit, and other financial information each quarter.

The Anatomy of an Earnings Report

Some earnings reports are more in-depth than others, but they tend to all have at least some common elements. That includes an income statement (which, again, contains information related to profits, revenues, and losses), balance sheet, cash flow statement insights, and a statement of shareholder equity, which could be a breakdown of a company’s complete financial picture, along with assets and liabilities. In all, the report could be dozens of pages long.

Going deeper, here are some of the key elements.

Income Statement: How much money a company made over a period of time. Usually, the current quarter’s information is compared to previous quarters or multiple quarters.

Balance Sheet: What a company owns and what they owe—its assets and liabilities.

Cash Flow Statement: This section details the exchange of money between the company and the outside world over a given period of time.

Statement of Shareholder Equity: Changes of interest for the company’s shareholders over a given period of time. Here, you’ll find information on the value of all outstanding shares along with the potential dividend payment made by the company during the previous quarter(s).

For many investors, the income statement is of particular interest. This document details how much a company earns, how much it spends, and how profitable it is over a certain period of time. These numbers can reveal a lot about where a business is at and where they’re headed.
💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.

Beyond the Numbers: Interpreting Earnings Reports

Understanding the basics of an earnings report is one thing. Using what’s gleaned from those reports is another.

Reading Between the Financial Lines

What does an earnings report actually tell you, as an investor? It’s not always so clear. In that sense, it’s important to try and put the numbers in the report into context so that it can help you plan your next market move – if you make one at all.

Looking deeper at the financials, though, here are some key terms and items to look for, which are typically found in the income statement.

Revenue: A company’s sales. This is also known as the “top line,” because it sits at the top of the cash flow statement. This figure does not take into account the costs of running a business, so may not be the best indicator as to the overall financial health of a company.

Cost of Revenue/Cost of Sales: Directly under the revenue or sales figure you’ll find a section that details the costs of producing the goods sold, such as production and manufacturing. To be clear, these are not all of the costs associated with running a business, only the costs directly associated with the sale of the product or service.

Below this figure, you will find the section referred to as “gross profit” or “gross margin,” which is the cost of revenue subtracted from the revenue. It is called “gross” because the figure is not net of all costs associated with running a business—only the costs associated with sales.

Operating Expenses: These are the costs of running a business that cannot necessarily be attributed to a company’s operations for a given period. Research and development, marketing expenses, and salaries of administrative personnel are all examples.

Here, it is possible to account for depreciation expenses, such as the wear and tear on assets such as machinery and tools or other assets that are used over long periods of time.

At this point in the cash flow statement, a company may account for adjustments to income due to interest earnings or expenses (such as earning interest in a savings account or paying interest on debts) or income taxes. Sometimes, this information is listed separately.

Earnings: This is a company’s profits, also known as the net income or “bottom line,” because earnings exist at the bottom of the cash flow statement after all costs are subtracted. This is the money that the company made in the previous quarter after all costs of running the business are accounted for. Ultimately, this is going to be the number that most concerns shareholders, as a profitable business model is what attracts many investors.

Not all businesses are profitable all of the time, so it is possible that an earnings number can reflect a loss. When a company is recording a loss, the number is written inside of parentheses.

Earnings Per Share (EPS): While the earnings figure is certainly important, it’s helpful to have some context as to what that means to investors. The EPS calculation divides the earnings figure by the number of outstanding shares to derive a figure that represents what it would look like if those earnings were to be evenly spread across all shareholders.

For example, an EPS number of $1 would indicate a $1 earning per share of outstanding stock. However, a $1 EPS does not necessarily mean that’s what the company pays out to each shareholder.

Instead, it’s a way for investors to compare profitability across businesses within the same industry, to a business’s past profitability, or to expectations for a company’s future profitability. More than anything, it is used as a tool for analysis.

For a more qualitative look at a business, you could take a look at the section titled Management’s Discussion and Analysis. Here, executives summarize both the numbers detailed in the financial statements and what’s going on in the business that might not be outwardly obvious simply by looking at the numbers.

For example, executives could take this time to discuss a merger or other market factors that may have led to skewed numbers for that quarter.

Assessing Financial Risk Factors in Reports

All businesses are facing some sort of risk, be it from growing competition in a specific sector, or increasing interest rates. Often, company leadership might discuss those risks in the commentary in an earnings release, or in an accompanying earnings call. Other times, investors can suss out potential risk in the numbers themselves (are revenues in a specific area falling, and why?). The important thing to know is that if businesses are facing some sort of risk, investors may be able to find clues as to how big of a threat those risks are in the filings.

The Earnings Season Explained

Investors are likely to become familiar with the term “earnings season,” and for good reason.

What is Earnings Season and Why it Matters

Earnings season refers to the four times during the year when companies release quarterly earnings reports, and many of them tend to do so around the same time. As such, it’s a sort of “season,” as investors get to dig through several earnings reports and try to suss out trends and make decisions regarding their portfolios.

The Impact of Earnings Reports on Stock Prices

Earnings season can be a volatile time for stock prices, as a company’s performance, put on paper and released to the world, allows everyone to see how it’s doing – and decide whether to buy, sell, or hold their stock. As such, an unexpected earnings report – good or bad – can create volatility in the market. That’s why investors will want to pay attention around earnings season.

Earnings Calls: What to Expect

Investors are able to take part in earnings calls, which often requires tuning in either online or by phone. While every earnings call is different, they tend to have the same elements: Company management (usually the CEO or another C-suite executive) discusses the top-line financial results for the period, and then discusses what’s ahead.
💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.

Getting the Most Out of Earnings Reports

As an investor, you’ll want to do what you can with the latest earnings reports. That includes pulling out the most pertinent information, knowing what to anticipate, and then synthesizing it all into actionable insights.

Analyzing the Report: TL;DR for Financial Reports

For most investors, the top-line financials, and perhaps any comments from company leadership, are the most important things to check out in an earnings report. For instance: did the company generate a profit? Was it more or less than expected? Are executives bullish or bearish about the coming quarter? If you’re strapped for time, those are the things you’ll want to know as an investor.

Upcoming Earnings Report Calls: What to Anticipate

Companies generally announce earnings calls well in advance – sometimes even months in advance. That gives investors plenty of time to plan to attend, and to make any pre-earnings market moves. It may be a good idea to read financial media or analyst reports, too, to get a sense of what to expect. Expectations are a huge element in the market, and even if a company reports strong numbers, they may be below expectations, causing share values to fall.

Leveraging Earnings Reports

At the end of the day (or earnings season), earnings reports are tools that investors can use to plan their next moves and hone in their investment strategy. But there are also sub-strategies that they can use during earnings season, too.

Strategies for Investors During Earnings Season

While some investors may find it profitable to day-trade or even swap options during earnings season, many investors may want to try and get a sense of where expectations lie, and position themselves accordingly. For instance, if expectations are that a company’s report will show it lost money, then an investor may want to sell their holdings, anticipating a fall in share prices the day earnings come out.

The opposite can also be true, however. Perhaps the safest play, though, is to stick to a buy-and-hold strategy, and not let any market volatility – earnings-induced, or otherwise – change that strategy.

Things to Consider for Quarterly Reports

As noted, considering top-line financial metrics and company leadership’s posturing is important for investors. But you may also want to think about the context of the earnings report – which quarter, or time of the year is it covering, for instance. If a retail company reports strong Q4 earnings, for instance, that may have been influenced by the holiday shopping season.

Or, if a food company is struggling with higher costs during the summer because of a drought causing shortages, that’s something else. There are lots and lots of factors that can affect a company’s performance.

Using Earnings Reports to Forecast Market Trends

It may be tempting to try and use earnings reports to forecast market trends, but tread carefully – nobody knows what the market is going to do next. There may be some things to be gleaned about what the future holds, but be careful and perhaps consider consulting with a financial professional before making any moves based on hunches.

Again, earnings reports are critical tools and troves of information for investors, but they are backward-looking, and the world is a wild place – you never know what’s going to happen next.

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SoFi Invest®
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

Apache is functioning normally

November 28, 2023 by Brett Tams

Inside: The Penny Challenge is an easy way to save money every day. By making small contributions of pennies each day, you can easily save hundreds of dollars. Plus a free printable!

Mastering the art of saving can be quite daunting, particularly for individuals living paycheck to paycheck. The idea of setting aside large sums of money daily might seem intimidating, leading to inertia and a lack of progress in saving attempts.

However, the Penny Challenge creates a refreshing approach to saving. You are saving pennies!

Thus, it takes away the pressure of dealing with large figures, making the saving process more accessible and manageable. Starting with as little as a penny a day, this challenge silently builds a savings habit and a more positive money mindset.

Rather than feeling overwhelmed, you gain slow and steady momentum in your saving journey, eventually accumulating a significant sum of $667.95 in 365 days. This subtle method of saving demonstrates that even slight changes in financial behavior can lead to impactful results.

The simplicity of the Penny Challenge is its greatest strength, making it an efficient and easy way to kickstart your savings journey.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What is the Penny Challenge?

The Penny Challenge is a delightful saving endeavor that begins with saving just one penny on the first day. The idea is to incrementally increase your savings by one more penny every day.

So, on day two, you save 2 pennies, on day three, 3 pennies, and so on. By the end of the year, on day 365, you’d save $3.65.

All adds up to a substantial $667.95 by the end of the 365 days!

History and Popularity of Penny Challenge

The Penny Challenge, while not heavily documented, appears to have its roots prior to social media where people started sharing it as an easy and fun way to save. It rapidly gained popularity because of its simplicity and the significant accumulation of savings from mere coins.

Today, people from all walks of life participate in Penny Challenges, tracking their progress and sharing their successes online. It’s not only popular among individuals but also families, helping children understand the concept of saving.

How the Penny Challenge Works

Around here at Money Bliss, we have plenty of money saving challenges to install habits of saving money.

The Penny Challenge is a suitable strategy for beginners, and even seasoned savers, making a significant impact on one’s back account by the end of the year with over six hundred dollars with just pennies.

Daily Contributions: Saving a Penny a Day

The core of the Penny Challenge is rooted in daily contributions.

Starting with one cent on the first day, you’ll boost your savings by an additional penny each day.

This means you’ll end up with three cents on the third day, four cents on the fourth, and so on. Remember, each penny is a stepping stone to building your wealth, so no amount is too small to fit in your piggy bank.

This habit-building exercise is particularly beneficial for those just starting out or anyone looking to make the most of their loose change.

Penny Challenge Chart in Action

Day	Penny Savings	Balance
Day 1	$0.01	$0.01
Day 2	$0.02	$0.03
Day 3	$0.03	$0.06
Day 4	$0.04	$0.10
Day 5	$0.05	$0.15
Day 6	$0.06	$0.21
Day 7	$0.07	$0.28
Day 8	$0.08	$0.36
Day 9	$0.09	$0.45
Day 10	$0.10	$0.55

Don’t be fooled! Pennies add up over the course of the year!

Monthly Contributions: An Alternative Approach

If daily contributions seem daunting or easily forgettable, consider the alternative monthly approach. Instead of saving each penny per day, you can make a lump sum deposit each month equivalent to the total you’d save daily.

For instance, in January you’d put away $4.96, in February $12.74, and so forth. This approach lessens the daily burden and keeps your saving habit on track.

Month	Penny Savings	Balance
January	$4.96	$4.96
February	$12.74	$17.70
March	$23.25	$40.95
April	$31.65	$72.60
May	$42.16	$114.76
June	$49.95	$164.71
July	$61.07	$225.78
August	$70.68	$296.46
September	$77.55	$374.01
October	$89.59	$463.60
November	$95.85	$559.45
December	$108.50	$667.95

If you like simplicity and want to start on any month, this approach is for you! The assumption is you save for 30 days regardless of the number of days in the month.

Month	Penny Savings	Balance
Month 1	$4.65	$4.65
Month 2	$13.65	$18.30
Month 3	$22.65	$40.95
Month 4	$31.65	$72.60
Month 5	$40.65	$113.25
Month 6	$49.65	$162.90
Month 7	$58.65	$221.55
Month 8	$67.85	$289.20
Month 9	$76.65	$365.85
Month 10	$85.65	$451.50
Month 11	$94.65	$546.15
Month 12	$103.65	$649.80

Raisin

Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.

You can open a free Raisin account in just a few minutes!

Compare Rates

Penny Challenge Variations

Great news! There are plenty of ways to maximize your savings deposit with one of the advanced strategies.

Modified Versions of the Penny Challenge: 26 Week and 52 Week Challenges

For those who wish to tweak the Penny Challenge to fit their lifestyle better, there are modified versions such as the 26 Week and 52 Week Challenges. Many people prefer this as they are paid on a biweekly basis for budgeting.

For the 26 Week variation, you’d start with the max you would save which is $3.65 on week one, and decrease the saving amount by one cent every subsequent week, ending with $95.04k.
Similarly, the 52 Week variation begins with saving 3.65 on week one and ends with $3.13 on the 52nd week. Thus, saving $179.67.

These modifications are ideal for shorter time frames or lower savings targets.

Reverse Penny Challenge & its Benefits

The Reverse Penny Challenge works in the opposite direction to the traditional method. It starts by putting away $3.65 on day one and then decreases the amount by one penny each day.

The primary benefit of this approach is that it gets the more significant amounts out of the way early. For some, this method might be more digestible, and it can be particularly beneficial for those who find their finances tighter towards year-end.

All of our reverse money saving challenges are extremely popular since you may lose motivation to the end or other unexpected expenses pop up.

Coffee Habit Backwards Reward Challenge

Let’s be honest… most of these savings amounts are less than your cup of coffee at Starbucks or your Amazon order.

So, on those days you choose to spend money on coffee or a just-because purchase, then you must deposit the same amount into your penny challenge funds!

It’s just pennies, right?!?!

Other Popular Money Saving Challenges:

Grow your savings account with one of the other popular money savings challenges!

Acorns

Invest spare change, invest while you bank, earn bonus investments, grow your knowledge and more.

Every purchase you make means an opportunity to invest your spare change! So coffee for $3.25 becomes a $0.75 investment in your future.

Get Started

Penny Challenge Free Printable

Downloading the free printable penny saving challenge is a beneficial next step!

To access the free printable, you must subscribe to our email list. Then, you will be emailed the password to our free library – full of many printables to help you on your money journey.

FAQs about the Penny Challenge

By participating in the Penny Challenge and putting one penny in a jar every day, increasing the amount by a penny daily, you would end up with $667.95 at the end of the year.

It’s a simple yet effective way to accumulate a substantial amount from seemingly insignificant daily contributions.

If you were to save exactly one penny each day for a year without increasing the amount, you would end up with just $3.65 at the end of the year.

In contrast, the Penny Challenge’s incremental daily savings can significantly boost to a handsome $667.95 a year.

Every Penny Counts: Significance of Small Savings

While a penny might seem insignificant, the Penny Challenge proves that even the smallest denominations can cumulate into a significant sum.

This challenge reinforces the age-old adage, “A penny saved is a penny earned.” Teaching us that regularity and persistence in saving, regardless of the amount, can make a meaningful impact. It’s a testament to the potency of small daily habits in shaping your financial future.

Diving headfirst into the world of saving can often seem daunting, but any type of challenge makes it approachable and fun.

Seeing the Penny Challenge through to the end provides more than just financial gains; it instills a powerful habit of saving and exhibits the enormous potential of minor daily contributions. Upon reaching your savings goal, not only will you feel a sense of accomplishment, but your brain will also crave the repetition of this gratifying experience, motivating you to save more and tackle larger financial goals.

Remember, the journey of a thousand miles begins with a single cent!

Check out these mini savings challenges!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

November 28, 2023 by Brett Tams

Crate & Barrel will never let you down. And now that it’s Cyber Monday, it won’t let your wallet down either.

The coveted retailer is commonplace for wedding registries and, of course, holiday gifts. Now, Crate & Barrel is hosting its first-ever Cyber Monday Warehouse Sale where you can find up to 30% off sitewide.

From dinnerware sets and sectional sofas to the most festive of candles and the plushest of blankets, we’re all about its online catalog right now.

So, the New York Post rounded up a cheat sheet of the best Crate & Barrel finds that are all on sale and waiting to be placed into your online shopping cart.

Now through Nov. 29, enjoy up to 50% off furniture, up to 20% off best-selling sofas and sectionals, free threshold shipping for orders of $99 or more and up to 30% off favorites (including entertaining items, holiday decor, kitchen brands and select bedding and lighting).

More, find up to 60% off clearance items while supplies last. In short, it’s a shopping soiree we’re marking as one word: sensational.

Crate & Barrel

The Hague Mid-Century Sofa has a contemporary charm we love — and it’s $300 off for Cyber Monday. Its flared arms, tapered conical legs anad nestled cushions make it a bit more upscale than other models you may see online, too.

Crate & Barrel

It’s not the time to skip on Crate & Barrel’s outdoor patio furniture offerings. For a limited time, invest in the Jeannie Teak Outdoor Chaise Lounge by Leanne Ford. We love its well-made silhouette and resort-grade cushion, most of all.

KitchenAid Artisan Series Matte Milkshake 5-Quart Tilt-Head Stand Mixer

Crate & Barrel

As a top gifting pick, the KitchenAid Artisan Series Matte Milkshake 5-Quart Tilt-Head Stand Mixer is on sale for $100 off at Crate & Barrel in a sea of beautiful colors to best suit your kitchen and aesthetic. From mixing cake batter and whipping cream to kneading bread dough, it’s a surefire staple.

Le Creuset Signature 7.5-Quart Enameled Cast Iron Chef Oven

Crate & Barrel

Meet one of the most beautiful pieces of kitchenware we’ve ever seen: the Le Creuset Signature 7.5-Quart Enameled Cast Iron Chef Oven. This Cyber Monday, enjoy nearly $200 off this stovetop decor piece and versatile cooker.

Faux Hemlock 74″ Pine Pre-Lit LED Christmas Garland

Crate & Barrel

No, it’s not too late to pick up elevated Christmas decor. We’re all about the Faux Hemlock 74″ Pine Pre-Lit LED Christmas Garland, especially now that it’s just over $100 right now.

Nespresso Lattissima One Silky White Espresso Machine by De’Longhi

Crate & Barrel

The Nespresso Lattissima One Silky White Espresso Machine by De’Longhi is one of the most aesthetically pleasing coffee makers that crafts barista-style brews in a flash. Trust us when we say, a Nespresso machine is the *best* gift we’ve ever received.

Cuisinart Custom 14-Cup Food Processor

Crate & Barrel

If you’re on the hunt for a newly minted food processor, we have the Cyber Monday deal for you. The Cuisinart Custom 14-Cup Food Processor is on sale for $50 off at Crate & Barrel and from a brand we trust.

Crate & Barrel

Pick up the J.K. Adams Heritage Serving Board at Crate & Barrel — the serving essential for your next charcuterie. It’s just shy of $100 for a kitchen grab you’re sure to use on repeat.

Crate & Barrel

Upgrade your indoor botanical center with the Wesley Metal Plant Stand. We love the traditional, timeless look of these sleek and tall planters. Oh, and there are two sizes to choose from (or, our idea: purchase both for added dimension).

Crate & Barrel

If you’re all about finding cookware on sale for Cyber Monday, we recommend the Zwilling Clad Xtreme Hard-Anodized 10-Piece Cookware Set at Crate & Barrel. This set includes 8- and 10-inch fry pans, 2- and 3-quart lidded sauce pots, a 3-quart lidded sauté pan and a 6-quart lidded Dutch oven.

Crate & Barrel

The Doret White Jersey Quilt Full/Queen is your solution to clean, white bedding — at a discount, nonetheless. Not to mention, Crate & Barrel has some exquisite duvet covers, if we do say so ourselves.

Crate & Barrel

The Cassi White Table Lamp has to be one of the most beautiful table lamps we’ve seen. Worth the splurge, its neutral charm is just what we love to adorn our dressers and coffee tables for a little home decor refresh.

Crate & Barrel

The Breville Smart Oven Air Fryer Pro is a kitchen appliance the New York Post team raves about (simply because it’s one of the best air fryer and toaster oven hybrids). Now, you can score it for even less.

Crate & Barrel

The Cuisinart Espresso Defined Espresso, Cappuccino and Latte Machine is easily one of the coolest coffee makers we’ve seen, thanks to versatility and entertaining hotspot. Additionally, you can choose your ideal brewing temperature, espresso volume, milk volume and standby time.

Crate & Barrel

Pick up a multi-purpose furniture piece — the dining table and the home office desk. Thanks to Crate & Barrel’s Seb Oak Wood Desk/Dining Table, you’ll be scoring this stunning two-in-one showpiece for just under $1,000.

Check out the New York Post Shopping section for more content.

Source: nypost.com

What is a flexible expense?

What is an example of a flexible expense?

Distinguishing fixed expenses from flexible expenses

Flexible Expense List Questions to Ask

Which budgeting method works best for flexible expenses?

Option #1 – Envelope System

Option #2 – Pay Yourself First

Option #3 – Zero Based Budget

How do you budget for flexible expenses?

How tracking your spending can help

Tips and tricks for handling flexible expenses in your budget

FAQ

Ready to Solidify Your Budget with these Examples of Flexible Expenses

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What are penny stocks?

Profit Potential in Penny Stocks: What to Expect

Navigating the Risks: The Realities of Penny Stock Investments

Making Informed Decisions

How to Get Started with Penny Stocks

Step 1: Conduct Thorough Research

Step 2: Set Realistic Investment Goals

Step 3: Choose the Right Trading Platform

Step 4: Start Small and Diversify

Step 5: Learn from Mistakes and Stay Updated

Common Mistakes to Avoid With Penny Stocks

How to Find Promising Penny Stocks: Effective Strategies

Explore OTC Markets and Major Exchanges

Leverage Financial Information Sources

Selecting the Right Broker for Penny Stock Trading

Assessing Broker Resources and Tools

Tips for Choosing a Broker

Finding the Best Broker for Your Penny Stock Investments

Risks and Considerations of Penny Stock Trading

Trade Volume and Fees

Exchanges

Return on investment

Penny Stock Scams

Strategies for Trading Penny Stocks Successfully

Setting clear goals and risk tolerance

Using stop loss orders and other risk management techniques

Being patient and disciplined in decision-making

Bottom Line

Your Next Steps

Frequently Asked Questions

How much money do you need to start trading penny stocks?

Are penny stocks hard to trade?

Why are penny stocks risky?

Is Robinhood good for penny stocks?

Related

7 essential pre-build tips for your Oregon home

1. Set a realistic budget for your Oregon build

2. Make sure you account for Oregon’s climate

3. Be informed about Oregon’s building codes and regulations

4. Conduct thorough contractor research and get local expertise

5. Look into builder associations and certifications in Oregon

6. Choose the right location

7. Employ sustainable building practices

9 construction and design tips to consider

1. Embrace sustainability and resilience

2. Blend indoor comfort with outdoor beauty

3. Invest in energy-efficient features

4. Use durable construction materials for Oregon’s varied climate

5. Prepare for rainy seasons

6. Employ fire resilient building strategies

7. Add native plants to your landscaping

8. Design a home that is in tune with Oregon’s environment

9. Ensure your home is properly insured

Ready to build your Oregon dream home?

Decoding Your Expenses – Fixed and Variable

What is A Fixed Expense?

What is an Example of a Fixed Expense?

What is a periodic fixed expense?

How to Budget for Fixed Expenses

1. Start With Fixed Expenses in Budgeting

2. Prioritizing Between Fixed and Variable Expenses

3. Tools and Techniques for Efficient Budgeting

How do I determine whether a cost is fixed or variable?

Strategies to Save on Fixed Costs

Ways to Curb Fixed Expenses

Which fixed expense would be most difficult to change if money is needed for car payments?