Tag Archives: passive income

How to Understand the Stock Market

There are many individuals who aspire to do well for themselves by investing in the stock market. However, making the right investments at the proper time is often easier said than done. Stocks and shares can be quite nuanced on many levels. People want to invest and create a new stream of passive income, but without the right knowledge, they are more hesitant to do so. The majority of the masses want to know and understand where their money is going, as they should.

Thankfully, there is some information out there regarding the stock market. Some of the best intel actually reads as follows:

Know the Basics

First and foremost, individuals who purchase stock shares are purchasing pieces of the particular company. Investopedia explains that stocks can rise and fall depending upon sales and overall market perceptions. This can be somewhat of a conundrum, especially for people who are looking to invest in stocks which they know will generate profit.

Most investors typically purchase stocks from companies which they believe will garner revenue or otherwise increase in value as time passes. Sometimes they’re right and other times, they’re wrong. Some of the savviest individuals consult with financial advisors prior to making major investments.

Select the Proper Brokerage Firm

Selecting the right brokerage firm is a critical part of investing. Using the aforementioned brokerage firm, the investor will then open up a brokerage account, explains The Balance. After setting up their brokerage account, investors can then deposit funds via their checkings or savings accounts. Once that cash has been transferred into the brokerage, the person can decide which stocks they wish to invest in.

Brokerage accounts can typically hold a variety of investments which include stocks, bonds, REITs, ETFs, MLPs, mutual funds, money markets, and certificates of deposit.

Know When to Buy and Sell

In regards to understanding the stock market, timing is everything. In other words, knowing when to buy and sell stocks is critical for investors who aspire to earn profit. City Falon explains that the relationship between buying and selling stock shares is somewhat intertwined; the best time to purchase stock is when others are thinking of selling. Conversely, the best time to sell stock shares is when other people are thinking of buying. This is also commonly referred to as buying low and selling high.

A Final Word

Successful stock market investments certainly require a fundamental understanding of the market, knowledge of which stock shares to purchase, and a degree of intuition regarding the proper times to buy and sell. Doing research, watching videos, and even consulting financial experts prior to making investments is strongly advisable, especially for first-time investors or other individuals who are not particularly familiar with the ins and outs of the market.

 

Authored by Gabrielle Seunagal

How to Earn Passive Income

Virtually everyone has heard of passive income at one point or another. In essence, passive income is defined by Wikipedia as “income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.”

In most cases, this passive income requires a degree of work in the initial phases before the ongoing payoffs. Many people would love to experience this type of revenue, but are unaware of how to lay the groundwork for it. Moreover, passive income is one of the critical components which well-off individuals use to earn and (especially) maintain their wealth.

Going forth are some particularly useful ways in which the average person can earn passive income, thus enriching themselves and increasing their net worth.

Get Serious about Investing

While there are a variety of passive income earning methods, investing is one of the best. According to The Motley Fool, stock dividends, real estate investment trust (REIT) dividends, rentals, and more can be great avenues for passive income. This is because each of these avenues come with ongoing income streams which continue long after the initial payment or purchase.

However, with rentals, there is a degree of work which has to be done. For instance, the property may need to be maintained, cleaned, and otherwise inspected from time to time. Picking the right tenants also makes a difference as well; the ideal tenants will take care of the property they’re renting and pay their monthly rent on time.

Start an Online Blog or YouTube Channel

Not everyone has the big bucks to invest in real estate or stocks. However, these are not the only ways to generate passive income. Online blogs and YouTube channels can be excellent avenues for earning revenue and moreover, they don’t require hundreds or thousands of dollars upfront. However, both online blogs and YouTube channels do require a degree of time before the passive income reaches hefty amounts.

Blogging through WordPress allows writers to put ads via Google AdSense on their page. When readers click on the ads, the blogger earns income. The only catch is the number of readers which view the blog. Ideally, the writer should have a sizeable viewership. The more people who view their blog, the more opportunities to earn passive income.

A similar principle applies to YouTube channels. Starting this year, YouTube mandated certain benchmarks which must be met in order for content creators to monetize their channels. However, after building up a sizeable following base, an online blog and/or YouTube channel can be quite profitable and become a lucrative stream of passive income.

A Final Word

One of the most important things to remember about passive income is that an initial investment is usually required in the beginning prior to the accumulation of ongoing revenue; that investment usually comes in the form of time or money. However, there are a variety of opportunities regarding earning passive income.

Different paths work for different people. For specific advice tailored to one’s own personal needs, consulting a financial advisor is recommended.

 

Authored by Gabrielle Seunagal

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