Loral Langemeier claims that she can turn anyone into a millionaire. In her recent book The Millionaire Maker, she writes:
You can give me someone who’s severely in debt, you can give me a single mom on a low income, you can even give me a guy who’s living a big lifestyle on fumes. I can take all of them and make them millionaires.
The Millionaire Maker attempts to codify Langemeier’s “proprietary Wealth Cycle Process”. (That’s how she writes it — with capital letters. Langemeier is big on capitalized jargon, tossing around terms like Financial Baseline, Gap Analysis, Freedom Day, Cash Machine, Wealth Accounts, Forecasting, Wealth Account Priority Payment.)
Langemeier believes there are better places to put your money than in mutual funds. (She calls the buy-and-hold method “park and pray”.) She advocates an active role in accumulating wealth, particularly through entrepreneurship and real estate.
Langemeier’s advice is reminiscent of Robert Kiyosaki’s Rich Dad, Poor Dad, but with more examples. Where Kiyosaki is vague, Langemeier offers seven case studies. Each chapter emphasizes a different aspect of her method, focusing on a family who wants to achieve a financial goal. Some of the families have millions of dollars in assets. Some have almost nothing.
With the correct approach, Langemeier says, anyone can achieve her dreams. She emphasizes a One-Year Freedom Day, a day on which you will have escaped your current financial situation. This means different things for different people. To discover what it means for you, you need to ask yourself some questions: What is your current financial situation? What do you want? What skills do you have? How can these skills help you get what you want?
It’s all very inspirational. But still — sometimes she sounds like she’s pitching a get-rich-quick scheme.
Once you set the Wealth Cycle Process in motion, you can be on your way to having everything you ever wanted much faster than you ever thought possible.
Langemeier is adamant that her system is not a get-rich-quick scheme. She notes that her method requires hard work and sacrifice. She espouses many tried-and-true personal finance concepts:
She preaches the “pay yourself first” mantra.
One of the first steps to her system is to get rid of bad debt.
To that end, she presents a modified debt snowball.
She also asks people to keep a budget. (Though she calls a budget a Forecast.)
“Start now!” she says repeatedly.
She encourages diversification, though her concept of diversification is different than most.
Langemeier decries the lack of financial education.
She warns that it’s a poor idea to “look pretty and stay poor”.
The Millionaire Maker offers conventional advice wrapped in unconventional garb. Langemeier encourages wealth through entrepreneurship. She preaches action. She emphasizes teamwork. “There’s no such thing as a self-made millionaire,” she writes. She believes that for real wealth to occur, one must obtain help from a team comprising a CPA, a lawyer, a financial advisor, and various mentors.
Some of Langemeier’s advice is almost scary. She promotes the use of home equity — hundreds of thousands of dollars at a time — as a source of money for business ventures. She sometimes recommends cashing out retirement savings to do the same. She would argue that it’s easier to make money by starting a business based on your knowledge and passions, than it is to leave the money to the whim of the stock market.
I think these are noble sentiments, but I’d want to be damn sure I knew what I was doing before I pulled six figures out of my house to risk on a start-up. I’m all for entrepreneurship, but this seems risky. And what are these 40% returns she mentions? Sign me up!
The Millionaire Maker is a mixed bag. While it preaches what ought to be preached, and Langemeier provides more specifics than some authors, her message sounds hollow. I want some evidence of her success. Not everyone will be moved by her love of entrepreneurship. But for some — myself included — this book may be a useful tool. Despite its flaws, I find this book motivational. (In a way, it’s responsible for the existence of this site.)
The Millionaire Maker is the sort of book that one ought to read for inspiration; it should not be accepted as the gospel truth. There is some good information here, but there’s some stuff that raises red flags, too.
By Peter Anderson23 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 2, 2018.
As my wife and I go through the Dave Ramsey’s 7 Baby Steps, we’re finally completing step 3, building 3-6 months of expenses (although we decided to save closer to a year of expenses), and we’re now entering step 4 where you are to invest 15% into Roth IRAs and other pre-tax retirement accounts.
While I know some people have questioned the mathematical soundness of Dave’s plans, they have worked well for us, and we’re not exactly Dave Ramsey snobs.
We know when to take his advice, and other times tailor his advice to fit our needs.
For example, I think some of his assumptions when it comes to investing (12% returns?) won’t probably pan out, but his basic advice of investing at least 15-20% of your income is sound.
Investing In A Roth IRA
The first step that we’ll be taking is to invest in a Roth IRA.
Most people will suggest that you invest in a 401k first if the company you work for offers a match on your contributions. Why not – it’s an immediate 100% return!
While my company offers a 401k, they are not offering any matching contributions to our account.
Because of that we’ll be skipping the 401k for now, and moving over to the Roth IRA account that will give us tax free earnings. After we max out our Roth IRAs we’ll most likely be investing back into my 401k up until the maximum.
Where To Get An IRA Account?
So where should you get an account? There are a ton of options out there when it comes to investing. Below I’ve put together a table of some of the best options available for starting your own retirement account whether it’s an IRA, Roth IRA or if you want to just trade stocks.
Each company in the table below has fees, trade commissions and annual fees listed if I was able to find them. If you know of others, or see mistakes, please let me know. Some of the links below may be affiliate links. Included below are both discount brokerages and mutual fund companies.
If you like to be hands off, a robo-advisor might be a good option:
Who Do Other Blogger Experts Use?
Mike with ObliviousInvestor.com invests with Vanguard because he believes that some of the other companies have a conflict of interest and put investors interests second.
Vanguard has a unique ownership structure such that the company is actually owned by the people who invest in their funds. (That is, the clients are also the owners.) As a result, the conflict of interests described above is eliminated entirely. Unlike every other fund company, Vanguard is owned by its clients.Vanguard has consistently been the lowest cost fund provider throughout the last three decades. Vanguard’s funds repeatedly dominate the competition in their respective asset classes.
Jim of WalletHacks.com has accounts with Ally Invest, and likes them because of the good customer service and low fees, but mentions that it really doesn’t matter which one you choose.
it doesn’t matter which broker you pick. It is more important that you start contributing towards your retirement as soon as possible because each year you wait is another year you lose out on gains. Some will charge you $15 a trade, some will charge you $5, but those all pale in comparison to how much you lose if you let that decision paralyze you.
Phil at PTMoney.com opened his first Roth IRA a while back and also chose Vanguard because of their low fees, and because of recommendations from others.
Vanguard is highly regarded amongst most personal finance experts, bloggers, and CFPs as the best place to invest in an IRA or taxable account. When I spoke with Kiplinger and NAPFA back in January, they suggested Vanguard.
Kyle at amateurassetallocator.com has Vanguard listed as his best mutual fund company.
Vanguard appears on almost every list of top mutual fund companies. It is my personal favorite fund company and is where I hold virtually all of my mutual fund assets outside of my company-sponsored 401k. When I leave, I will undoubtedly roll over my 401k to an IRA with Vanguard, just like I did last time. Why do I like Vanguard so much? It’s cheap. Not only does it offer a wide variety of index funds to choose from, but even their excellent actively-managed funds are dirt-cheap compared to the competition.
So if you’re looking for opinions from a lot of the folks in the blogosphere it sounds like a lot of folks prefer Vanguard because of their low cost, good choice of index funds, and good performance, partly due to their low fees. I do have to say, however, that I appreciate Jim’s advice that the choice of fund company isn’t as important as getting started on investing as early as you can. Start now!
Conclusion
Personally I’m leaning towards opening an account for myself and my wife with Vanguard as pretty much everywhere I turn people are recommending them. Add to that their low fees, and fund options, it sounds like it should be a good choice. I’ll be continuing to explore my options in posts over the coming weeks.
As with anything I’d recommend that you do your own research to understand the different companies, research fees and investing options, and make sure you’re making an informed decision.
What mutual fund company or discount brokerage do you use? How do you like it? Do you have other recommendations for places to open an account? Tell us your thoughts in the comments!
When the movie 300 debuted my best friends and our wives all journeyed just under two hours to the closest IMAX theater excited to to catch an awesome flick. We were so pumped right up until we arrived to the ticket window and the show was sold out. Have you ever been so excited for something only to find out you weren’t eligible to get in? For some, the Roth IRA has been “the” thing to have, but many have income limits that prevent them from partaking. Not sure what the Roth IRA eligibility guidelines are? Let’s take a closer look at all the guidelines for Roth IRA eligibility.
Don’t worry. If you think your Roth IRA ticket is sold out, there is a strategy that might let you in through the backdoor 🙂
Are You Old Enough?
For all the kids out there, don’t worry- the Roth IRA is not a Rated R movie. Minors are just as eligible to contribute to a Roth IRA as easy as seniors are. Think of the Roth IRA as the “movie for all ages.”
A minor is eligible to open a Roth IRA so as long as they have “earned income”. Babysitting won’t cut won’t cut; either will mowing your neighbor’s lawn. Your child will actually have to get a W-2 or 1099 showing real money made. This goes for senior citizens, too.
Roth IRA Contribution Limits
Contribution limits have stayed at $5,000 for 2010. For boomers over the age of 50, you are entitled to catch up. Catch up contribution remain at $1,000 for 2010 for a total contribution limit of $6,000. If you’re married, that’s $6,000 for you and your spouse.
MAGI Affects Roth IRA Eligibility
MAGI is not an Oscar nominated flick starring Sandra Bullock, it stands for Modified Adjusted Gross Income. Most people believe that the Roth IRA eligibility is based on your gross income, but that is not the case. Your MAGI calculation will be the triggering number to determine if you exceed the phaseout limits to be able to contribute to a Roth IRA.
For those that fall in the middle of the phaseout range, it can be tricky trying to find out how much you can exactly contribute to a Roth. Below is three examples of how much you’ll be able to contribute based on your MAGI. For the purposes of the illustrations, we’ll be assuming that is an individual filing single.
Phaseout Examples for Roth IRA Eligibility
Example 1: MAGI is $95,000. This is pretty basic. Contribution allowed is $5000. So far, so good.
Example 2: MAGI is $135,000. Bummer! Sorry Charlie, you make too much money to contribute to a Roth IRA. You still have the backdoor Roth IRA option, though.
Example 3: MAGI is $115,000. This is where it gets a wee bit complicated. You might want to break out your calculators on this one or just follow these easy steps.
Step 1. Find the amount of the phase for you. In our example, the phase is $15,000. ($120,000-$105,000).
Step 2. Subtract your AGI from the upper amount of the phase. We would use $120,000-$115,000 = $5000.
Step 3. Divide the amount in Step 2 ($5000) by the phase range ($15000) to arrive at .3333 or 33.33%
Step 4. Take 33.33% of the contribution limit of $5000 for a total contribution limit of $1666.67. So $1666.67 is the full amount that a single/head of household under the age of 50 could contribute to their Roth IRA with an MAGI of $115,000. If you need to take a water break after that one, I totally understand.
Guidelines for the Roth IRA Conversion
Whether you are filing as an individual or married filing joint, the adjusted gross income level of $100,000 will become nonexistent for the Roth IRA conversions of 2010. For higher wage earners, this is a prime opportunity to convert money into the Roth IRA for the possibility to have tax-free growth at retirement.
Don’t Forget the Nondeductible IRA Account
In the past, there was nothing all that attractive about the nondeductible IRA. It was kind of like the movie that nobody went to see until it was nominated for an Oscar. You did get tax deferral, but no immediate tax deduction and you still had to pay tax at retirement. The Roth IRA conversion event of 2010 has given the nondeductible IRA Oscar like status, allowing high wage earners a backdoor way into the Roth. If you are not eligible to contribute new money into a Roth IRA in 2010, you can open up a traditional non-deductible IRA and immediately convert it to a Roth.
A few words of caution: if you already have pre-existing traditional IRA’s, you will have to pay a pro-rate share of the tax if you try to convert the non-deductible IRA. Refer to my post that discusses the Roth IRA conversion tax rules.
Eligibility is a Virtue
With the Roth IRA now a reality for all investors to take advantage of, it’s time for you to really consider starting a Roth. You can always rewind a movie and start it over in case you missed the best part. When it comes to saving for retirement, you get one shot- so make it count!
*Restrictions, penalties and taxes may apply. Unless certain criteria are met, Roth IRA owners must be 59 1/2 or older and have held the IRA for 5 years before tax-free withdrawals are permitted. A Roth IRA should be considered as an option but not everyone reading this blog should open one.
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There are numerous personal finance articles dealing with the perils and pitfalls of the personal loan. When it comes to lending money to friends or family, the most recurrent piece of advice given is “Don’t.” That’s not to say that many of these articles don’t offer potential lenders a lot of good advice on how to best navigate what can be a tricky and touchy situation. Which is why I’m going to focus on the other side of the coin: The protocol of the personal loan from the borrower’s point of view.
Like every other article on the subject, when it comes to borrowing from friends and family the best advice I can offer is “Don’t.” The process is fraught with many bumps in the road that can serve to throw the best of relationships irreparably off track. While philosophically it might be wise to adhere to the advice Polonius gives Laertes in Shakespeare’s Hamlet–
“Neither a borrower, nor a lender be; For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry,”
–in reality that may not be an option. So, you’ve got a big expense and no ready cash to cover it—what do you do?
Exhaust all other options first: spend less, make more
Before ever requesting that anyone sacrifice their hard-earned savings to keep you afloat, you should make sure you’ve done everything you can in making sacrifices of your own. Be ruthless in trimming unnecessary expenses–and make sure you have a realistic view of what’s “necessary.” Cable bills, anything other than basic cell phone services, eating out and other entertainment costs should be slashed from your budget. It’s not cool to expect someone else to fund a lifestyle that is beyond your own means.
Speaking of “means,” effort should be made to increase your income. Whether it’s negotiating a raise at work or finding a part-time gig to score some extra cash, make sure you’ve explored all options for balancing your expenses with sufficient income.
If cutting costs and increasing earnings doesn’t resolve your deficit, consider scaling back on your possessions. Yes, it sounds harsh—but consider it from your potential lender’s point of view: Nobody is going to feel comfortable handing over a nice chunk of change to someone who drives a Porsche and owns a 60″ plasma HDTV or a closet full of Jimmy Choos and Manolos.
At this point if you still need money, here are some steps to take to make sure that “a loan between friends” doesn’t end up being a case of money coming between friends:
Be a good risk.
Let’s face it: If you were truly loan-worthy, you’d be able to go through the process and get the funds you need from a bank instead of your buddy, Bob. That being said, you should still ensure that you’re responsible enough to warrant a personal loan. Going through the process of cutting expenses and getting a second job shows that you are taking charge and holding yourself accountable. This makes it easier for a lender to take a chance on giving you money.
Make it legal.
Create a formal agreement between you and your lender that specifies the payoff date and a payment plan. There are various online options you could utilize: LoanBack.com and LendingKarma have customizable loan agreement forms and loan trackers available. Or you could purchase a template from LawDepot.com. But given that money is an issue, it’s probably best to just customize a free loan agreement template with the details of the terms such as interest rates, payment schedule, collateral, etc. Putting it down on paper will ease the mind of the lender as well as making the obligation less tenuous and more tangible for you.
Have a plan.
Make sure you have a way to repay the loan in a timely fashion. No lender is going to be comfortable with an open-ended “whenever” agreement—even your best buddy, Bob. Use a loan payment calculator to break your loan amount into manageable monthly payments and come up with a way to free up resources to make those payments in a timely and consistent manner. Perhaps make weekly or monthly transfers of the money you save by giving up your daily Starbucks latte into your lender’s PayPal account.
Walk the walk.
Once the immediate financial pressure is alleviated, don’t slack off and slide back into the habits that got you into trouble in the first place. You especially want to make sure you’re not flaunting any frivolous purchases in front of your lender. After all, if you can’t afford to pay your rent, you shouldn’t be shelling out money for the latest video game release or a new designer handbag. This is one positive aspect of an impersonal bank loan: A loan officer won’t be giving you the side eye at Thanksgiving dinner like Uncle Fred over that $500 you owe him.
Foreclose on your pride.
Even if your lender is collecting interest on your loan, the fact that you’ve accepted money from them opens you up to their scrutiny and often-unsolicited advice. Whether it’s a lecture on how people were more fiscally responsible back in the day by Uncle Fred or a copy of a book by Suze Orman from Bob, it’s part and parcel of the price you pay for a personal loan.
Accept rejection graciously.
Even if your buddy Bob just scored a big promotion, that doesn’t mean he has to use it to stave off your foreclosure. Recognize that many people are uncomfortable with money issues and the strain they can put on relationships. It’s a personal loan, but it’s not always personal. Bob may have had a bad experience in the past and vowed never again to lend to a friend, no matter how close or trustworthy.
Pay it back.
The most important aspect of receiving a personal loan is to pay it back. Just about everyone has a story about lending money to a friend that ends up with them losing the money AND the friend. Don’t be included in that statistic. Be the happy anomaly that restores faith and trust in a positive outcome when it comes to borrowers and lenders.
Don’t “Lather, rinse, repeat.”
Once you’ve paid off your debt, continue to maintain your frugal tactics to build up an emergency fund so that you won’t find yourself in similar circumstances in the future. Although repaying a loan proves that you’re a good risk for future financial needs, the real lesson that should be derived from the situation is gain more control over your finances so that you never have to put yourself or your friends and family in the awkward position of asking for money again.
Do you have any personal loan horror stories? What lessons did you learn from the process?
The Protocol of the Personal Loan was written by Stella Louise, Editor of the Savings.com Blog & Save, a blog for savvy consumers looking to live well for less.
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Often, there are two camps of people when it comes to wrangling financial documents: Some keep everything, every ATM receipt, every bank statement, sometimes in a drawer or box with little to no organizing principle. Others throw away (hopefully after shredding) just about everything that arrives in the mail.
The best approach is likely somewhere in between. There is a happy medium. Here, you’ll learn how to keep just what you need, organize it well, and dispose of financial documents properly when they no longer serve a purpose.
The Importance of Financial Statements
“Out of sight, out of mind” is a cliche for a reason. Once taxes are filed, paychecks are deposited, and the rent or mortgage is paid, we tend to forget about these transactions, dumping the receipts in a deep file cabinet or throwing them away altogether.
However, the consequences of financial documents and bank statements stick around long after they’ve been settled. For example, the IRS can come calling years after a person files taxes if the organization suspects that income was misreported. Or, in the event of loss or damage, having a record of purchase for big-ticket items like electronics or jewelry can make it easier to file a claim.
Keeping track of financial statements can help serve as protection or proof if a transaction is challenged or misreported. Without the statement, people might spend days trying to obtain duplicate records, when they could have just had them neatly filed in the first place.
Not everything needs to be saved forever, but some things should be safely filed away for a rainy day.
Recommended: Do I Need a Personal Accountant?
What to Keep and For How Long
Like items in a grocery store, each type of financial document has its own expiration date. Some will be relevant years after they’ve been filed; others can be tossed within months. Here’s the general rule of thumb of how long a person should keep each statement:
Tax Documents: 6-7 Years
Keep tax documents — anything related to filing taxes — around for seven years. Why so long? The IRS can audit anyone up to three years after they file if the agency suspects that an error was made in “good faith,” aka an accident.
income tax return up to three years after the fact for a refund.
Additionally, the IRS has six years to follow up on returns if it thinks the filer underreported income substantially, meaning by 25% or more.
It’s not a bad idea to keep the tax return, in addition to supporting documents. That could include evidence of:
• Retirement plan contributions
• Charitable contributions
• Interest payments on a mortgage
• Alimony or child support payments
Record of Sales: 3 Years
From selling stock to selling a home, and every large sale in between, it could be smart to keep these records of sale for at least three years after the transaction takes place. These documents can be called up in tax-related issues.
Paycheck Stubs, Bills, Bank Statements, Investment Statements: 1 Year
If someone isn’t using direct deposit for payday, they should keep their physical paychecks for a year. Once they receive their W-2 and confirm that the amounts match, the stubs can go.
Utility bills, bank statements, and other bills should stick around for a year , just to be safe. Budgeters can use them to compare balances month over month. It also can be a helpful habit to check over bank and credit card statements each month. It’s a chance to catch and dispute fraudulent or incorrect charges. In addition, bills for services like medical treatment and auto repair should be kept for at least for a year for reference.
Investment statements that are distributed quarterly should be kept on hand until the annual statement is revealed and the numbers are lined up.
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Receipts, Resolved Credit Card Statements: Toss It
Unless purchases are logged manually, a person should feel comfortable tossing receipts almost as soon as they acquire them. As long as they don’t plan to return the item, all they should do is confirm the amount against the debit or credit card charge, then send that little slip to the trash.
credit card is paid in full each month, there’s not much reason to keep the statement lying around. Again, it can be used to check charged amounts and spot mistakes or fraud, but once statements are resolved against transactions, it should be okay to ditch the statement.
Although there are suggestions for how long people should keep a statement, at the end of the day, they should trust their gut. If there’s an urge to hold on to something not listed above, keep it.
Three Ways to Store Sensitive Documents
It won’t matter what a person saves and shreds if they don’t know where to find records in the long run. Safely storing sensitive financial documents doesn’t really mean tucking them away and forgetting about them. Here are a few ways to store and organize financial records:
• Use an old-school filing system. Finding an affordable, fire-safe file box to keep statements in is already a massive step up from the bottom of a junk drawer. Everyone will have their own approach to logical filing, but it could be done by year, type of record, or institution the record comes from.
Some might be tempted to go extra safe and take this paperwork to a safety deposit box at the bank. However, if the documentation is needed, it won’t do a person much good sitting miles away in a bank vault. Keeping it close and safe is probably preferable.
• Scan and save online. Many smartphones come with the capability to scan documents, and there are other well-reviewed scanning apps on the market. Those who tend to lose paper might choose to scan everything and save it online. The only hitch is keeping up with the scanning, and saving all documents to the cloud instead of just on the phone.
• Go paperless. Many institutions offer paper-free transactions, meaning customers don’t get statements in the mail. Online banks vs. traditional banks have made this a priority. Going paperless does not mean having to log on to each site to get financial information, but it does mean a person is less likely to lose papers.
Going paperless with financial statements may require a little more work to access records — people can’t just wait for documents to arrive in the mail. But if done correctly, they can find the papers they need with the click of a few buttons.
Recommended: Are Online Bank Accounts Safe?
The Takeaway
Going paperless with records doesn’t have to be tricky or time-consuming. That’s one of the benefits of opening an online bank account like SoFi Checking and Savings. It’s easy to find the information you are looking for online, as well as to track your spending and saving in one convenient place. What’s more, SoFi offers a competitive annual percentage yield (APY) and charges no account fees, which could help your money grow faster.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. 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. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOBK0523022U
Save more, spend smarter, and make your money go further
Mothers tend to have an opinion about everything, and the older we get, the more we realize just how right they are! This is especially true when it comes to being smart with money. So the next time your mom offers up some wisdom, consider her advice as a gift to you this Mother’s Day!
Stick to a budget
A recent survey shows that 60% of Americans do not have a budget! You can’t possibly manage your finances without one. An app like Mint will help you create a budget, track your spending and set financial goals. Plus, when you sync all financial accounts to the app, everything is in one place. Budgets lead to a better financial future. Mom wants that.
Monitor your bank balance
While it’s easier than ever to check a balance here or pay a bill there, you may think you don’t need to maintain your own records. You do! You may think your mom is a bit old-school for balancing a ledger, but it’s important to check your account monthly. Cross-reference your spending with your checking account to see if your balance is higher or lower than it should be. Look over receipts, payments and cancelled checks and double check the amounts. If there are any inaccuracies, report them immediately.
Secure your future
While 401(k)s may be going the way of mom jeans, many companies still offer them. If you are lucky enough to work for a company that offers one of them, max it out. You can contribute up to $18,000 this year. It’s the best way to build wealth for your future, and minimize the tax bite – a worker in the 25% tax bracket who contributes the maximum this year will save $4,500 on his 2015 tax bill. If your employer matches contributions (50 cents on the dollar up to a maximum of 6% is common), this will help grow your retirement account balance even faster. For a worker earning $60,000 per year, this employer match – aka “free money” – could be worth as much as an additional $1,800 toward that retirement account. Mom will be so proud!
Save before you spend
Saving before spending is one of the easiest ways to boost wealth and meet your long-term goals. If you are paying yourself last, chances are there may not be much left to save after you’ve covered your housing costs, groceries, and utilities. You may have heard your mother say “pay yourself first”: set aside a certain portion of your income the day you get paid before you spend any discretionary income. Direct deposit is an easy way to save automatically.
Homemade gifts are the best
A large portion of the $173 we are expecting to spend on mom this year will be at restaurants, according to the National Retail Federation. If mom taught you how to cook, avoid the crowds and make her brunch at home. You will be putting the lessons she taught you to work while saving money and showing her how much she’s appreciated in the most personal way!
– Vera Gibbons,Mint Contributor and Personal Finance expert
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Transcription of above video follows below. You can find more videos on the Good Financial Cents YouTube Channel.
Today I will answer a common question I get from a lot of people. Do you have a situation, you are working somewhere, you change jobs, either decided to go somewhere else, you were laid off or you were fired. Whatever the reason, if you’ve been there for awhile you most likely participated in the 401(k) plan. Now that you have left that job and you have started your new job, you have to make a very, very important decision on what to do with that 401(k). The common question I get is this:
“Jeff, I’ve got an old 401(k). Does it make sense to roll over into an IRA.”
Depending on your situation, most likely I will say yes, but there are some instances where it could make sense to roll it into your existing 401(k), which I will address in another video. Today I want to make the case why you should at least consider rolling over the 401(k) into an IRA.
1. More Investment Options
First and foremost, you want more investment choices. Most commonly what I see in most 401(k) plans you are going to have approximately 12-15 investment choices to choose from. I have seen some bigger plans that are going to have 40, 50 or maybe even 60 investment choices, but generally that is what I see. If you take that money and roll it over into an IRA, instead of just having those 12-15 investment choices, now your just opened up to the world of all the different investment options that you have. If you want to invest into individual stock, you can do so in the IRA. Most likely, you weren’t allowed to do that in your 401(k). That also applies to other investments that you will be able to invest in too.
2. Simplify Your Life
What about the simplification of your life by the consolidation of paper and account statements. I can remember one particular case, where I had a client. We sat down and he had seven different 401(k) plans. Imagine getting seven different quarterly statements and trying to sort through it. Not only that, but also trying to keep track of the investment strategy of what is going on with those seven different 401(k) accounts. By rolling over to an IRA, and now you’re being able to consolidate into this one account and if you change jobs several times, why not consider consolidating and simplifying your life. I’m all about less paperwork. Less paperwork equals more efficiency and easier to keep track of what is going on in your financial life.
3. Control Your Income
Another aspect you want to consider rolling over into an IRA, especially if you are approaching on your retirement is being able to control your retirement income. Typically, when you take a distribution from a 401(k) plan, they are going to withhold the standard 20% tax withholdings. Once you roll over to an IRA, you have some discretion, as far as how much taxes you want to be withheld from your distributions. When it comes to retirement planning and income planning, the less that you have to pay upfront to Uncle Sam, the better.
Now, in the first year retirement, it is a little bit harder to determine what the exact tax may be, but typically after I have been working with a client for a year or so, we can kind of gauge how much taxes we need to withhold from our distributions to make sure that we have taken enough out for the end of the year.
4. RMD’s
Another consideration regarding distributions from IRAs and why you should roll over from your 401(k) is if you are approaching 70-1/2. Once you hit age 70-1/2, you have to start what’s called required minimum distributions. Within the IRA, now you have discretion, as far as what investments you want to liquidate or remove from the IRA. Maybe there is something that is not performing as far and you would like to take that or liquidate it out of the IRA. With the 401(k) and those limited investment choices, you are not going to have as much say on what gets liquidated.
Those are quickly just four reasons why I think you should consider rolling over your 401(k) into an IRA. Once again, going back to point number one, having more investment choices to me that is it. Have more choices. I compare it to going out to eat and I can go to a restaurant that has five things versus going to a 65 item buffet. Anytime I have more choices, generally I am going to be happier because depending on what mood I’m in or what is going on, I will have more options to choose from.
Helping people prepare for for a successful retirement is what I do every day. A bulk of the retirees typically will have some sort of pension or retirement account that represents the majority of their investable assets.
Deciding the proper strategy to do with that money is the most common thing we do and more times than not, it makes sense to roll that retirement account into a traditional IRA. When we’re deciding on an income plan with the IRA it never fails that I get the question, “How much interest does an IRA make?”. I always crack a smile when I hear this because it’s such a common question that hear, that I thought it would be best to explain how you actually make interest on an IRA.
Why an IRA is a Good Choice for Retirement Funds
While everyone is different, and you shouldn’t roll your money into an IRA without carefully considering your choices, there are some very valid reasons to do so in retirement.
Flexibility: The biggest reason to use an IRA for your retirement portfolio is the flexibility that comes with an IRA. With most IRAs, you have the ability to choose your own investments. You can choose funds that work well for you, and that might not be available in your current 401(k). It’s easier to make changes to your IRA than it is to make changes in a less flexible retirement plan sponsored by your former employer.
Access: Because you can choose your own IRA custodian, it can make access a little easier. As a retiree, you need access to your account. Choosing your own custodian might allow you easier account access, plus there is a good chance that your new IRA custodian offers an array of tools that can make your in-retirement income planning a little easier. A 401(k) or 403(b) at your former employer means that you have to stick with the custodian the company chooses.
Lower cost: While consumer pressure has resulted in lower fees for many employer-sponsored plans, the reality is that you can often find even lower fees with an IRA. Combine the lower administrative costs of an IRA with the fact that you have the flexibility to choose lower-cost funds and ETFs for your IRA, and your money will be more cost-efficient since your real returns won’t be eaten away by the high fees you were paying previously.
The right IRA is easier to manage, less expensive, and provides you with more choices. Consult with a knowledgeable financial planner to help you find the right place to keep your IRA, and to help you figure out how to allocate your assets within an IRA so that you are more likely to accomplish your goals.
The Best Rates On Your IRA
I wrote a post about the best rates on a Roth IRA, which is a great guide for those who are still in the the accumulation stage of investing. If you are already retired, though, your needs are different. The best rates on your IRA mean something different if you rely on your nest egg for the income you need to support your retirement lifestyle.
Getting the best rates on your IRA is about understanding what you can keep in your IRA, as well as knowing how to use asset allocation to your advantage during your retirement years. Unfortunately, there isn’t a lot of education out there for retirees on this subject, so there is a measure of confusion about how to use an IRA to your best advantage.
Why is There So Much Confusion?
Many investors associate IRAs with the IRA CD you see advertised at your local bank. A CD is a product that offers a fixed rate of return. Your CD will pay according to a stated interest rate. Unless the financial institution has a relationship with a brokerage firm, then CDs or savings accounts are the only investment option that the IRA can have. That means that your yield is going to be relatively low.
An IRA CD is often offered with a 10-year term, and the rate is higher than most of the other CD offerings from the bank. However, most of these rates are nothing to write home about. As a result, retirees get the idea that IRAs offer yields that are too low for their needs.
The reality is that an IRA is an extremely flexible tax-advantaged retirement account that allows you to keep a variety of assets. The most common assets are stocks and bonds, in the form of funds. However, in some cases, it’s possible to use IRAs to invest in real estate, businesses, and even precious metals. (You will need to find a custodian willing to work with you for more exotic IRA holdings, and your administrative costs will be higher.)
Most retirees, though, are better off sticking to stock and bond funds in their IRAs. These assets usually offer better returns than IRA CDs while still allowing you to maintain an acceptable level of risk.
IRA Interest Rate = Total Return
They say a picture is worth a thousand words. Let’s see if this sketch helps paint a clearer picture on how you are able to make money on an IRA:
Total Return for Interest Rate on an IRA
*Dividends are not guaranteed. Interest and bond payments are subject to the claims paying ability of the issuer and may be subject to certain terms or restrictions. Investing is subject to risk. Appreciation is not guaranteed.
Let’s keep it simple: almost every retiree’s portfolio consists of a portion of stocks and bonds. Stocks and bonds are called asset classes because they are two different types of investments. The mix of stocks and bonds, called asset allocation, depends on a number of risk profiles, including your own risk tolerance and when you expect to need the money. When you have a portfolio that consists of these two asset classes, you have two main components that will you give the total return (or interest rate, as most of us think of it):
Income (from stock dividends, bond interest payments, and distributions)
Appreciation (or depreciation).
You need to understand how these operate inside your IRA in order to get a sense of your true interest rate, as well as if you want to make better decisions about what to do with your money.
Income From a Portfolio
Typically, when you hear “income” regarding an investment portfolio, the most common thing that comes to mind is bonds. Bonds pay what is called a “coupon payment,” which is based on the stated interest rate on the bond. These coupon payments can be paid monthly, quarterly, or semi-annually- all depending on the issuer of the bond. When your bond matures, you receive the principal back, and you can reinvest in another bond if you wish.
The other income component from a portfolio is dividends from stocks or preferred stocks. If you own a percentage of stock in your portfolio then there’s a good chance that some of the stock you own pay dividends. Here’s a tidbit on stock dividends from Investorguide.com:
Dividends are determined by the company who issued the stock and they may fluctuate greatly. Dividends are cash payments that the company pays to stock holders based upon profits and are paid out on a per share basis. In other words, a business may determine that the dividend payout to stockholders for the first quarter is $.25 per share. So, a person who owns 1000 shares would receive a dividend payment of $250 for the first quarter.
The income portion of the portfolio is the closest you’ll get to a fixed interest rate on your portfolio. I want to stress that even the income portion of a portfolio can change pretty quickly based on many factors. Increasing or decreasing interest rates will have the largest effect just as they would on CDs at your bank.
Additionally, it’s possible that a company will cut its dividend, reducing how much you receive. Many retirees choose to invest in stocks known as dividend aristocrats, or invest in funds composed of dividend aristocrats. These are companies that have increased their dividends at least once a year for the last 25 years. While there is always the possibility that these companies will cut their dividends, there is a lower chance of that because of the long history, and the fact that many of these companies have to be pretty sound to keep raising dividends.
Appreciation on a Portfolio
The second factor that will contribute the return on your IRA portfolio is appreciation (or depreciation). Simply put: making money. With stocks, that is pretty simple. You buy stock XYZ and $5.00 and sell it at $10.00, you have appreciation. That is pretty straight forward. What most investors don’t realize is that appreciation potential does not just apply to stocks. You can make it on your bonds, too. Say what?
When people think of investing in bonds, they just think that you buy a bond and collect the interest. Just like a CD. While this is true, most investors don’t realize that you can trade bonds in the secondary market and the value can go up or down.
Many bonds are issued at par (or face value) which is $1,000. The value of the bond has a “teeter totter” relationship with the movement of interest rates. After the bond is issued, if interest rates go up, the value of that bond will go down. Reverse the interest rate movement, and the value will go up. Your bank CDs actually do this, too; it’s just not as obvious.
Another factor to consider in the value of the bond is the strength of the issuer. Remember when Lehman Brothers was on the verge of bankruptcy? Their bonds went from $1,000 to less than a $100 before they eventually went bankrupt.
They way you can make appreciation on a bond is by buying in the secondary market if it’s now selling below the $1,000 issue value. You can wait until the bond is worth more than the issue value, and then sell it for a profit later.
Example: You buy a bond at $950 that will mature in 3 years at $1000. Not only do you get the appreciation, but you also get the interest payment, too.
For Best Results: Avoid Active Trading in Your IRA
As always, you are most likely to achieve your best results when you avoid actively trading in your IRA. While IRAs offer flexibility, and a way to buy and sell assets on a tax-advantaged basis, the reality is that frequent buying and selling can result in lower returns.
Not only is there a better chance that you will trade at the wrong time (the worst is panicking and selling low), but you might also choose the wrong individual securities for the long term.
Many retirees have better luck by investing in low-cost funds and ETFs in an asset allocation that helps them meet their needs. These funds can help even out income from the portfolio, and they offer diversity and a certain degree of protection. Plus, it’s a lot less work on your part.
Count Your Interest Blessings
The interest you earn on your IRA has many variables. That’s why it’s important to meet with a CERTIFIED FINANCIAL PLANNER™ to help make sense of your income needs and to help you position your accounts to potentially make the highest rates on your IRA.
More Disclosures:
Certificates of Deposit at FDIC insured and offer a fixed rate of return. Certificates of Deposit that are sold prior to maturity in the secondary market are subject to market fluctuation, so that upon sale an investor may receive more or less than their original investment.
Stock investing involves risk including loss of principal.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rate rise and are subject to availability and change in price.
Price, yields and availability of securities are subject to change. Certain call or special redemption features may exist which could impact yield.
Hypothetical examples are for illustrative purposes only. Results will vary.
Inside: Learn how to invest $100 and make $1000 a day using these proven strategies. Find out the best ways to invest 100 dollars. Many from the comfort of your own home.
One of the biggest mistakes that people make with money is not investing.
You see, if you invest $100 and earn 10% interest a year, in just 12 months your investment would be worth $120!
It takes money to make money.
We all have heard that before.
Many people want to make some extra money, and that is why they are turning their attention to investments. There are a lot of ways to invest your money safely, but most importantly it should be done with a goal and for the long term.
The article will help you to invest $100 now to start making $1000 a day. Will this happen overnight? Nope. That would be some get-rich-quick scheme.
You must be willing to invest the time, resources, and money to start making $1000 a day.
If you are looking to invest $100, this guide will help provide you with the knowledge and strategies to generate a constant stream of income of $1000 a day.
Is Investing $100 To Make $1,000 A Day Possible?
There is no one-size-fits-all answer to this question, as the success of any investment depends on a number of factors. But, yes, many people have found ways to invest $100 to make $1000 a day.
There are a few strategies that investors can use to increase their chances of reaching $1,000/day. That is the part that takes commitment.
Best Ways to Invest 100 Dollars
There are a lot of different things you can invest your $100 in. You could put it into stocks, bonds, or even real estate. Those are the most effective strategies with the least amount of time commitment.
However, there are other options as well, which we will go into detail shortly.
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 should I invest $100 in right now?
Whatever route you decide to take, remember that investing is a good way to learn and make money.
Not only will you likely see an increase in your overall wealth by investing your money, but you’ll also be happier because of the positive impact it has on your life!
How to Invest $100
You can take your $100 and invest it into the stock market or a savings account. Something that immediately starts paying you to make a return.
The other way is you could use that money to buy books and courses on how to make money with any of the ideas below.
Another option would be to invest in a service that others might not have thought of. This could be something like a start-up business or an online course that teaches you how to make money through investments.
There are plenty of ideas on how to invest $100 it just depends on your short-term and long-term goals.
In fact, learning how to make money online for beginners is a hot topic!
The step-by-step guide to making money with this simple trick
If you’re looking for a step-by-step guide on how to make money with this simple trick, look no further! In this ultimate guide, we’ll cover everything you need to know about the process.
The first step is to invest $100 per month in order to get started. By doing this, you’ll be setting yourself up for a lifetime of financial security.
In order to make money with this simple trick, you’ll need to follow these simple steps:
Decide How You Plan to Make $1000 a day
Invest in Learning How to Do It
Invest your $100
Stay Persistent
Start making profits!
Will everything work out as simply as that? No, but you have to commit to a plan in order for it to happen!
Once you’ve invested in your future, it’s time to learn how to be successful and start making some serious profits!
Invest $100 Make $1000 A Day – Strategies for Success
People have different strategies for success, and the best way to succeed is by figuring out what works for you.
A strategy that might work well for one person may not be suitable or acceptable in another’s situation.
In this article, we’ll explore a few different strategies for success and how they can help you make money from home or on the job. In fact, many of them I implement to make money.
Idea #1: Savings Account
The best way to start investing is to open a savings account. For every $100 you deposit in a savings account, you will earn about a small amount of interest. This may not seem like a lot, but it can add up over time.
In reality, investing $100 into a savings account is a habit that will continue to lead to saving higher amounts of money. While you may not be able to make $1000 a day off your first 100 dollars, your efforts will multiply as your saving percentage increases.
In addition, many banks offer special promotions for new customers, such as a $500 bonus for signing up.
To get the most out of your savings account, be sure to shop around and compare rates at different banks. CIT Bank offers some of the highest interest rates available, so be sure to check them out!
Idea #2: Retirement Accounts (401k or Roth IRA)
Investing in your 401(k) is a great way to secure your financial future. Not only do you get matched contributions from your employer, but the tax benefits make it easy for employees to invest. Contributions are tax-free until retirement, so it’s a good place to put money while you’re working a side hustle or contract gig.
A solo 401(k) is a great way to take advantage of these benefits if you don’t have an employer.
In addition, investing in a Roth IRA is a smart idea as well.
Idea #3: Invest in Cryptocurrency
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies have experienced a wild ride over the past year! In the past five years, bitcoin prices have swung from a high of $68,000 in November 2021 to the lowest dip of $3236 in December 2018 (source). Many experts believe that crypto will be adopted widely in the future, and some predict that one Bitcoin will be worth $200,000 or more.
Investors can purchase a range of cryptocurrencies through reputable platforms such as Coinbase and Bitstamp. The most common crypto are Bitcoin, Ethereum, Litecoin, and USDC (a stablecoin pegged 1:1 with USD).
Idea #4: Invest In The Stock Exchange
Like an active trader – either as a day trader or swing trader.
When you invest in the stock market, this is a way to make money on your investments.
In fact, you can make money fast in stocks. But, you need to have a solid trading plan first.
My favorite course is Trade and Travel with Teri Ijeoma. In fact, check out my Trade and travel review and begin your journey to making $1000 a day.
Idea #5: Peer-to-Peer Lending
If you’re looking for a solid investment opportunity, peer-to-peer lending may be a good option for you.
Peer-to-peer (P2P) lending service that connects borrowers and investors. Because it’s a peer-to-peer platform, it can be more profitable for the investor.
Both Lending Club and Prosper are examples of investment platforms in this space.
Idea #6: Become an Entrepreneur
There are many options for entrepreneurs to make money. You can start a restaurant, retail store, or offer your services for a fee.
Another great way to make money is by investing in something you’re passionate about. For example, if you love cars, you could open a car detailing business. This requires some planning and dedication but can be very rewarding.
As an entrepreneur, your goal is to invest in ways that have the potential to turn over $1000 per day.
Idea # 7: Invest in Yourself
When you think about it, the best investment you can make is in yourself.
If you have 100 to invest, find what you are missing and fill it with new knowledge. Learning never stops – it’s a continuous process that will help you grow as an individual and stay ahead of the competition.
This is one area where you have the possibility to make well beyond just $1000 a day.
In fact, many of the best millionaire quotes focus on investing in yourself.
Idea #8: Invest Money in Index Funds
Outside of retirement accounts, many people overlook investing in the stock market as an individual.
Index funds have been a popular choice for investment managers for many years. They are a type of mutual fund that tracks the movements of an index, such as the S&P 500 Index. Because these types of funds follow an index, they provide diversification and typically come with lower fees than actively managed funds.
For these reasons, investors may want to consider using index funds when building their taxable investment portfolio.
Idea #9: Enroll in a Course or Certification
There are many different courses and certifications you can take to improve your skills.
This “new skill” could help you transition into a different career. A “certification” might help you get promoted in your current position, or it might allow you to begin working in a new field.
Either way, you are investing $100 or more today to make 10x your money in the future. Consider what skill can be useful in your professional or personal life and invest in a course.
Idea #10: Clear Your Debt
Paying off debt is a guaranteed return on investment.
This may seem a little backward but hear me out…
If you add an additional $100 to paying off your debt consistently, that means you are that much closer to freeing up a huge amount of debt payments to go somewhere else.
In this case, your overall debt payment can be invested in other ways and you will quickly improve your rate of return.
Idea #11: Work As A Sales Person
Commission payments are a large part of income for salespeople. In fact, US News reports that the average sales professionals earn an average salary of $73,500 in 2020.
This is a competitive field, but it can be very rewarding for those who are driven to succeed.
You probably will have to invest in a business degree to make this career field worth it.
Idea #12: Write A Book
Books are a great way to make money. They are one of the few investments that can be made with the intent to generate passive income. In other words, you put in some work at the beginning and then receive payments over an extended period of time without having to do anything else.
Writing a good book is an easy way to make money in 2023. As an independent self-publisher, if your book sells 100 copies per day at $10 each, you will make $1000 on every copy sold.
Publishing companies can help pay an advance for your work and handhold you throughout the process. You might need skills beyond writing if you want your book published at one of the larger publishing companies.
If you are serious about becoming an author, it is best to go through a publishing company and have them edit your work for you. This will ensure that your book is high quality and likely to sell more copies.
Remember: publishing a book is not cheap! It takes a lot of hard work and dedication, but if done correctly it can be an excellent way to make 1000 dollars a day or more.
Idea #13: Become a Book Nerd to Build Skills
Investing in books is a way to improve your knowledge and increase productivity. It’s impossible to become an expert in every field, but it’s possible to become one by reading about them. Books can change the way you view life and give you fresh perspectives on how to handle finances, as well as other aspects of life.
An investment of $100 in 2023 would yield $1000 or more depending on the non-fiction niche books you choose.
So, what are you waiting for? Start reading!
Idea #14: Online Flipper
So you want to flip 100 bucks to 1000? Well, it’s not as hard as you might think. In fact, with a little bit of effort and some basic knowledge, you can turn that hundred into a thousand in no time at all! Here are a few tips to help get you started:
Find something to flip. This could be anything from furniture to clothes to electronics. Keep an eye out for items at local retailers that are on sale and look like they could be resold for more online.
Know your market. What is the average price for the item you’re looking to sell? Knowing this information ahead of time will help make sure that you don’t sell your product for too little (or worse, too much).
Have the proper tools ready before starting your flipping business. This includes having a good camera or phone with which to take pictures of your products, a computer or laptop with which to list them online, and PayPal or another payment processing system set up and ready to go.
Be prepared for some work! Flipping isn’t always easy–you may have to spend time researching what items are selling for how much online, traveling long distances to find good deals or dealing with frustrating customers.
A great way to get started is to learn more from the Flea Market Flippers! They are very successful and teach others how to flip items
If you’re willing to put in the effort, flipping can be a great way to make some extra money on the side.
Idea #15: Invest in Real Estate
There are a number of great reasons to invest in real estate in 2023. In fact, real estate is one of the best investments for making money.
To start investing today, set aside a few hundred dollars each month and invest in real estate over time. This will help you build your wealth slowly and steadily.
Ways to Invest in Real Estate:
Rental Properties: Investing in rental properties can prove profitable with monthly renters and appreciation from rental income or capital gains as a property is worth increasing over time. However, rental properties require more upfront money and more work to maintain than other types of real estate investments.
Flip Houses: Another option is buying properties at low prices, fixing them, and selling them for a quicker profit.
REITs: Real estate investment trusts are a great way to access real estate much like mutual funds. These are highly regulated. However, learn about the best paying jobs in REITs.
Crowdfunded Options: Crowdfunded real estate can be accessed by anyone with a little bit of money – you don’t need to be a millionaire to get started! The returns tend to be more significant than the stock market so it’s a good choice for beginners. Plus, EquityMultiple lets you invest in real estate without worrying about managing a property yourself. It’s possible to make $1000 per day through EquityMultiple, depending on the time frame and market conditions.
Between crowdfunded real estate, rental properties, and REITs – there are plenty of options to choose from when it comes to investment vehicles. Each has its own unique advantages and disadvantages, so it’s important to do your research before settling on an option.
Overall, though, investing in real estate is a great way to grow your wealth and secure your financial future!
Idea #16: Get a New High Paying Job
There are many high paying jobs in the world, but the skill necessary to get one of those jobs is managing people. People who manage other people are able to get paid more because their skills are rare and in high demand.
Management positions are typically the highest paying, but there are also many other responsibilities as well. other lucrative options to consider.
This will help you find more money to invest on a regular basis and start making more money each day.
Idea #17: Affiliate Marketing / Influencer
Affiliate marketing is a great way to make money online. In fact, many affiliate marketers earn six figures or more per year. So what is it?
Affiliate marketing is the practice of advertising a company in exchange for payment. Affiliate marketers work with blogs to post about products and services, which makes them eligible for receiving payment when someone clicks on the link and purchases something from the company they’re advertising for.
It’s not likely that you’ll make this kind of money right away, but as your influence grows, you can certainly make some good cash through affiliate marketing programs.
The costs associated with getting started are relatively low–you can probably get started for less than $100–and it takes about the same amount of time to build up your blog’s audience and reader base from scratch. So if you’re looking for a solid way to generate some extra income online, give affiliate marketing a try!
Idea #18: Start Your Own Blog
With just $100, you can start your own blog and make money.
Blogging is a great way to make money and requires little in the way of cash or startup costs. In fact, many bloggers start their sites for free and then upgrade to more expensive hosting plans as their blogs grow in popularity. The cost of starting a blog is minimal and you’ll need to find your topic to write about first, but it’s possible over the course of years.
There are many different types of blogs that can be started with their own benefits – from personal finance advice to cooking tips – so finding the right one for you is essential.
To monetize your blog, consider offering services or digital products to consumers interested in what you have to say on the topic of your blog’s content. For example, if you’re a great cook, you could start a cooking blog and sell recipes through an online store; or if you’re an expert on personal finance, you could create e-courses teaching people how to save money and invest for their future.
Blogging is a long game; SEO traffic requires patience, but the payoff will be worth it in time. It can take anywhere from 6 months to over 18 months for bloggers to start seeing results. However, those who stick with it and reinvest their profits back into their sites can make $1,000/day from their blogs.
So what are you waiting for? Start blogging today!
Idea #19: Charity
Philanthropy is an excellent investment, so donating to charity is a wise choice.
Not only do you help others in need, but you may also be rewarded with tax breaks or other benefits.
Additionally, many charity works are good investments because of the promise of reward. For example, building a well in a developing country can provide access to clean water for years to come.
Look for ways to give where your donation can be matched.
Idea #20: Save For College
You can invest $100 and make $1000 a day by saving it.
One way to save for college is to invest in a 529 plan. A 529 plan allows you to save money for college tax-free. In addition, many states offer tax deductions or credits for contributions made to a 529 plan. Another benefit of a 529 plan is that the money invested grows tax-deferred. This means that you don’t pay taxes on the earnings from your investments until you withdraw them from the account.
Many parents find it difficult to save for college because they face high tuition costs and other expenses associated with sending their children to school. However, if they start early and contribute small amounts on a regular basis, they can accumulate enough savings overtime to cover most or all of their child’s education costs.
Idea #21: Use Gig Economy Apps to Earn Money Fast
Now, it’s easier than ever to find work. There are a number of apps and websites that can help you find short-term or long-term work. These include apps like:
These apps provide a new way for people to make money when they’re not working traditional jobs.
How can I invest $100 and make money everyday?
There are a variety of different ways that you can invest your money in order to make a profit.
The most hands off approach for many is investing in index funds. As a buy and hold strategy, you are likely to earn 6-8% plus on your investment.
As you hold onto the index fund for the long term, you are able to participate in any upside should the stock prices go up.
Invest $100 to Make $1000 a day is possible!
It’s true–you can make a lot of money by investing just a small amount at first. For example, if you invest $100, you could earn up to $1000 in profits! This is possible by following the strategies outlined in this article.
When you need to know how to make 2000 fast, this is how you do it!
Of course, it’s important to remember that investing isn’t limited to those who have a lot of money. In fact, anyone can benefit from this type of activity financially and make more money in the process.
So don’t be discouraged if you don’t have much saved up already. You can start by investing $100 into the stock market and then reinvesting your profits as soon as possible, in order to grow that initial investment. And who knows? With a little bit of hard work and patience, you could be making thousands of dollars per day before you know it!
This is how you can double $10k quickly.
Don’t delay in investing. You have to start at one point to start making money.
Then your next goal will be how to turn 10k into 100k.
Know someone else that needs this, too? Then, please share!!
Most mortgages carry a 30-year term, even if they’re adjustable for some period of those three long decades.
But in some cities, it’s reasonably possible to pay off your mortgage a lot earlier thanks to low home prices and decent wages.
Now, this isn’t to say you should pay your mortgage down aggressively…it’s just that you could, if you were so inclined.
Unsurprisingly, most of the cities in the top 10 list can be found in the central states, like Ohio, Michigan, and Missouri. But there are also spots in Pennsylvania and New York where home buyers can get free and clear in no time at all.
The Fast List
The data nerds over at Realtor came up with the list above by calculating median home prices in the top 50 markets in the U.S. and lining them up with the recommended 28% housing DTI ratio.
The result is a short 5.4 years to pay off a median priced home of $128,000 in Cleveland, Ohio. Sure, your football team won’t be very good, but at least you’ll have a football team.
And if you focus on tackling the mortgage, you’ll only have to pay taxes and insurance on your digs in little more than half a decade.
That’s certainly pretty cool if you’re not one to carry lots of debt. And you might get a decent water view on the “North Coast,” a term I’ve never heard until today.
You can pull off the same magic in cities like Rochester, NY, Pittsburgh, PA, and Buffalo, NY.
There are plenty of other major metros on the list as well, including the likes of St. Louis, Indianapolis, Cincinnati (hard to spell, but decent football), and Kansas City (great baseball).
In Indy, some 71% of the homes are affordable to prospective home buyers, and St. Louis was deemed a top 10 up-and-comer by Realtor.com thanks to strong projected home sales and future home price appreciation.
So if you don’t want to worry about the mortgage for more than a handful of years, as opposed to into your old age, check out those cities. You may even be able to take out a 15-year or 10-year fixed mortgage at the outset to save a ton in interest and grab a lower mortgage interest rate.
Conversely, if you want to keep your mortgage forever, look at these 10 superstars.
The Slow List
In Los Angeles, it will actually take you nearly the full 30-year term to pay off your mortgage. The annual income of around $100,000 in the 90210 requires a lengthy 29.4-year amortization period.
So no 15-year fixed for you unless you’re making big bucks. You’ll need a 30-year mortgage.
The same goes for much of the Bay Area, including San Jose and San Francisco, and in sunny San Diego. That explains why lenders are increasingly offering zero down mortgage options like the POPPYLOAN.
Hot cities such as Denver are starting to get a hair expensive too seeing that it’ll take the average buyer 21.3 years to pay off the mortgage without breaking the bank or raiding the retirement nest egg.
It’s a little bit better in places like Miami and Portland, but these cities are clearly getting more expensive as homeowners from nearby states (and countries) flock to affordability.
However, there are still some relative bargains to be had in places like Sacramento, California and Austin, Texas where it can take less than 15 years to get mortgage-free while still saving for retirement and living comfortably.