Tag Archives: investing

Financial Advice for Wealthy People

Wealth (officially defined as the abundance of valuable resources) can be earned and/or inherited. However, regardless of how one manages to secure wealth, if they neglect proper management and maintenance, the money is unlikely to last for very long. There are countless horror stories of people running through large sums of money in relatively brief time periods because they misused their resources and failed to maintain healthy income streams.

An art to money exists; there’s an art to earning wealth and an art to maintaining wealth. The implementation of various financial strategies moreover ensures that the production of valuable resources overpowers the consumption of valuable resources. This, in and of itself, is paramount knowledge for individuals who wish to maintain the wealth they’ve inherited or worked hard for.

Invest, Invest, Invest

According to Investopedia, some of the best investment options for wealthy people include stocks, bonds, and commercial real estate. Generally, stock market investments are considered to be riskier, due to the somewhat 50/50 odds of gaining or losing money. However, there are different strategies which people have to predict certain trends in the stock market and the wisdom in certain investments. Bonds are somewhat similar to stocks, but like the former, with the proper judgment calls, this form of investing can be quite lucrative and beneficial.

Commerical real estate investments come with many options. For instance, by purchasing various blocks of homes, the investor can then rent out rooms or apartments. Over time, the income from tenants will more than pay for the original price of the blocks. This is also a form of passive income, which is also critical for building and maintaining wealth.

Maintain Multiple Streams of Income

Hanson McClain affirms the importance of multiple income streams. By maintaining multiple streams of revenue, wealth is not only preserved, but also increased. No matter how much money someone has, there are still certain guaranteed expenses, such as the cost of living, bills, etc. Truly wealthy individuals have enough money to stop working and still live comfortably; yet, in a somewhat converse paradox, people with the foregoing levels of wealth usually continue working, or at the very least, they have passive streams of income which allow them to continue making money without trading time for profit.

Put Aside (at Least) 20% of Your Earnings

CNBC advises wealthy people to put aside at least 20% of earnings. Saving is always an excellent financial habit, regardless of one’s economic status, yet it is truly critical for wealthy people. Having an increasing amount of funds put aside in the event of emergencies or other unforeseen occurrences is always important.

Saving money furthermore promotes discipline and helps to counteract the temptation to spend, spend, spend. Remember: as one’s net worth, assets, opportunities, and bank accounts flourish, their savings should be following suit. Many wealthy people also have money in multiple places: savings accounts, on-hand cash in safe boxes, etc.

Nine times out of ten, having money stashed and saved in more than one location is advisable.

Authored by Gabrielle Seunagal

The Importance of Investing in Yourself

When most people hear the term “investing,” they generally think of stocks, bonds, or mutual funds. While each of the foregoing elements can be very profitable investments, the best investment that an individual will ever make is in themselves. How does that happen, though? How does someone go about investing in themselves? The preceding questions are very common, however, there are several ways of investing in oneself and the merits of such investments are well-documented.

You Become A Better Version of Yourself

At the end of the day, the ultimate merit of investing in yourself is becoming a better, stronger, and more intelligent version of who you already are. Regardless of one’s current accomplishments or achievements, there is always room for improvement. As the old sayings go, “you attract what you are,” “like attracts like.” Both of the¬†aforesaid statements are more real than most people would like to admit. The reality is that each person attracts what they are in alignment with. Therefore, in order for one to attract the great opportunities, they themselves must be great.

Hence comes investing in oneself. The Huffington Post lists a variety of ways for each person to self-invest. Some of the best methods include reading books, tackling goals on a bucket list, maintaining good health, and setting goals. Each of these actions comes with its own merits and remains applicable in virtually any career or line of work. It is very important for each individual to understand that being the best in their professional endeavors entails investing in themselves at one point or another.

You Can Learn New Skills

Many people often wonder about the most beneficial methods of investing in themselves. Aside from reading, setting and achieving goals, and maintaining good health, investing in learning new skills is arguably one of the best self-investments. Mastered skills can virtually always be transformed into capital which then creates an additional income stream. Multiple streams of income are paramount to financial success; they can furthermore be saved, spent, or re-invested for the sake of capitalization.

Learning new skills is especially important as artificial intelligence and automation become more and more integrated into our daily lives. Many people are learning that their current professional positions will face succession from robots or other forms of artificial intelligence. It is, therefore, extremely important for each person to have the proper skill sets to still be able to support themselves even after artificial intelligence fully makes its integration into society.

A Final Word

Ultimately, the best and surest investment that you can ever make is into yourself. Stocks, bonds, cryptocurrency, mutual funds, etc are all dependent upon myriad factors. However, the decisions you make, the books you read, the quality of your health, and your learned skills will each contribute to your success or lack thereof. Any individual who is serious about doing well and going places in life will invest in themselves at one point or another.

You owe it to yourself to live your best life possible and invest in the only one who can make it happen: YOU!

Authored by Gabrielle Seunagal

Basic Money Handling Tips

The ability to handle money appropriately has never been more imperative. In this day and age, people who are aware of just the most basic ways to manage capital do significantly better than individuals with poor money management skills. The perks of managing capital appropriately are well documented. Any individual who is serious about his or her financial future would do well to learn some of the most basic, yet paramount money handling tips.

Don’t Spend Every Dime You Earn

Virtually everyone has heard someone say that they want to “make more money.” The desire to increase one’s earnings is universal, however, the manner in which one handles the extra capital is what truly makes the difference. Far too often, when someone’s earnings increase, so does their lifestyle. For instance, an individual who receives a raise from his or her boss may then feel the inclination to spend more money. In their mind, why shouldn’t they? They’re making more money and can afford to be less frugal, right? Wrong! Far too many people have this mindset and it hinders them from considerable financial growth.

As the old saying goes, “if you make a million and then spend a million, you’re still broke.” A person who is serious about handling money appropriately should first and foremost put more money aside towards savings or fruitful investments when they see an increase in their earnings. This is not to say that one can never upgrade their quality of life, however, it needs to be done in moderation and with steady progression. Anything more is a recipe for financial disaster.

Don’t Go Into Debt

Similarly to saving and investing capital, landing in debt is another one of the most common financial traps that many people fall into at one point or another. It is only human nature to desire nice things and enjoy a certain lifestyle, however, the finer amenities of life must be earned. This is a concept that many individuals fail to realize. The temptation to swipe one’s credit card repeatedly feels great until the bill comes due and the person can’t pay it. All of a sudden interest kicks in, on top of the original debt, and the cost of a $400 wallet is now $20,870.76 by the time it is completely paid off.

Debt and interest are the enemies of financial success and should be avoided at all costs. Those who wish to experience the best that life has to offer must do so by increasing their earnings in one way or another. There are many ways to create passive income streams, including driving for Lyft or Uber in one’s free time, renting out spare rooms on Airbnb, or doing freelance work on a site like Upwork. Regardless, debt should never be incurred. Persons who are already in debt should work to pay it off immediately.

A Final Word

While the list of money handling tips could go on indefinitely, not spending every earned dime and abstaining from debt are two of the most crucial methods of achieving financial success. Although the foregoing changes can be challenging at first, they ultimately depend upon one’s level of discipline, wisdom, and execution.

Authored by Gabrielle Seunagal

The Importance of Investing

In 2018, one of the most important steps that one can take towards financial success is investing. Not only does investing put one’s money to work, but it also allows the individual to grow his or her own money. Of course, poor investments usually engender lost funds, whereas wise, strategic investments grow one’s income. Some of the wealthiest people in the world invest in one form or another.

Knowing Where to Get Started

As noted by The Balance, many people who are new to the world of investing begin by placing capital in the stock market. There are many upsides to this course of action. First and foremost comes options and flexibility. There are many companies which sell shares of stock for various prices. Investors can purchase as few or as many shares as they please. Some individuals begin by purchasing smaller amounts of stock and gradually invest more capital once they establish levels of comfort and familiarity with the stock market. Of course, each person has their own investment strategy which hopefully works well for them.

Individuals can also invest in real estate, privately held businesses, publicly traded businesses, and more.

Benefits of Investing

F&C Investments notes the plethora of merits associated with making wise investments. First and foremost comes the probability of seeing a return on one’s capital. A person who wisely invests $10,000 could possibly earn $100,000 or more in a matter of years. However, risk is an inherent factor that comes along with investing in any entity, be it real estate, mutual funds, or stocks and bonds. While some people are able to turn a profit on their investments, there are others who lose every penny. Although there are no guarantees, the potential for growth is a considerable upside that all investors should be aware of and aspire to achieve.

Another benefit of investing is the creation of a new passive income stream. Passive income is economically defined as “earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved.” The majority of people have at least one stream of non-passive income, however, non-passive income, alone, is simply not enough. Passive income is especially paramount for individuals who aspire to boost their net worth or simply increase their wealth and earnings. The majority of well-off individuals have at least one avenue of passive income.

A Final Word

While each individual can benefit from strategic and fruitful investments, they should first ensure that they are in a position to handle the risks that come along with investing. For instance, capital needed for important expenses such as rent, childcare, utilities, groceries, and bills should not be invested. Those who wish to invest but currently lack the funds to do so should gradually prepare themselves by putting a certain amount of money aside. As they work to acquire their desired amount of funds, the person at hand can take time to learn which entities they wish to invest in.

Authored by Gabrielle R. Seunagal

The Benefits of Multiple Income Streams

Any individual who wishes to achieve financial health must first obtain multiple streams of income. In business and in life, a singular source of revenue is simply not enough. Many people work as employees for various businesses or corporations. They are generally paid a salary which allows them to live (somewhat) comfortably. More often than not, so long as working people are able to pay the bills, they have no other financial concerns. However, what appears to be a safety net can, and sometimes does, break and leave the once safe person plummeting into financial peril.

Multiple Income Streams Counteract Finacial Loss

Turnover is a reality of the professional world. Not every person who is hired to work for a certain company or perform a certain task will retain that position for the rest of their lives. In many cases, they will not. Sometimes, the individual at hand will be terminated or otherwise laid off for whatever reason. Regardless, as pointed out by Business Insider, a person who relies on an exclusive stream of income, only to have it evaporate, will then be faced with wondering how to pay bills, put food on the table, and have a place to call home.

However, an individual with more than one source of revenue will remain considerably better off, even if one stream lessens or disappears altogether. There are several ways to engender multiple sources of capital including, but certainly not limited to, making fruitful, wise investments, freelancing on platforms like Upwork, or even setting up side gigs, such as driving for Lyft or Uber, or renting out space in your home on Airbnb. There are myriad opportunities and options for those who seek them; each and every adult owes it to themselves to take every possible chance to strengthen their financial security and counteract any future losses.

Multiple Income Streams Boost Well Roundness

Well-rounded people tend to fare well, especially in business. More often than not, individuals who are well-rounded must market their skills or otherwise prove themselves in order to profit financially. However, a person with multiple streams of income is more likely to be educated and well-versed in a variety of areas, as opposed to their less diverse counterparts.

Most people work to earn capital and then use said capital to make purchases. While certain purchase, such as groceries, clothing, personal care items, etc, are necessary for basic living, a percentage of one’s revenue should go towards creating new streams of income. Sometimes, this can be as simple as investing in certain stocks, bonds, or mutual funds. In other cases, an individual might take a class so that he or she can learn a new skill and later market that skill to earn a profit.

There are always ways to diversify revenue streams if one is creative enough.

A Final Word

The world is changing each and every day. The most successful people are usually the ones who can easily adapt to change. Financially speaking, one of the best methods of adaption is to always have the safety net of multiple income streams.