Sahel Rafael Tamayo

Can you imagine living your life where you no longer need cash for your financial transactions? Sounds too good to be true? Well, it’s not.

Now more than ever, an increasing number of service companies, businesses, financial institutions, and even some governments are steadily and slowly moving towards the so-called cashless society. Yes, electronic transactions have become and will sooner become the new norm, and it’s not impossible to see why.

If you are wondering why a cashless society works, the answer is simple: it offers a lot of benefits. These include eliminating the challenges that come with managing currency and the costs involved with handling cash. If you have a business, you can also finance it cashless!

Still unconvinced? Continue reading to know more about a cashless society and all the perks that come with it.

Cashless Society Defined

To understand why a cashless society works, you should first learn how it works in the first place. A cashless society eliminates coin-based and cash paper currency and replaces them with electronic payment methods. These electronic transactions include the use of electronic payment services such as PayPal or Apple Pay, as well as debit or credit cards.

Available Payment Methods

Payments take place electronically in a cashless society. The following methods can be used when transacting with individuals, organizations, and other businesses.

• Debit and credit cards

Debit and credit cards are among the most popular alternatives to cash you can simply tap or swipe to pay bills, transfer money, and make purchases.

• Electronic payment apps

All you have to do is download the apps on your smartphone or other devices that serve as your mobile wallet. You can use these for B2B transactions and P2P payments.

• Virtual currencies

Digital currencies or cryptocurrencies are utilized for money transfers and encourage competition to help lower the costs involved.

Perks of a Cashless Society

Among the top reasons why more and more countries are now shifting to a cashless society is mainly because it is very convenient and simple. As long as you have your card or phone with you, you can get instant access to all your cash holdings.

It also means you won’t have to bother visiting an ATM just to get cash or worry that you don’t have cash handy to buy something you need urgently.

Here are other benefits of a cashless society:

• Automatic Paper Trails

Financial crimes including drug-related operations, illegal gambling, or money laundering would be more challenging in a cashless society. Such crimes often involve cash and don’t leave transaction records. In a cashless society, on the other hand, it will be easier to trace these crimes when the source of funds can be easily identified.

• Cost Savings

Handling cash comes with a price. Printing bills and minting coins cost money. Businesses also have to deposit money and withdraw it once it runs out. They also need to work with companies for the safe transportation of cash. All in all, you need to spend resources and time to protect and transport large sums of money.

• Easier Exchange of Currency

It can be a hassle to travel with cash, especially when you need to exchange dollars for local currency. With a cashless society, it saves you from the worries of the withdrawal amounts and local currency since the electronic devices will deal with the exchanges on your behalf.

Are you ready to go cashless soon?

 

If you are a small business owner, you already know the importance of financing not just when getting started but also as you grow your business. Unfortunately, small business loans with affordable terms are not always easy to find. This is where SBA loans can help.

SBA Loan Defined

An SBA loan is a business loan backed by the Small Business Administration. Instead of disbursing the loan itself, the SBA guarantees a maximum of 85% of the amount of the loan provided through a lender approved by the agency. These lenders are often non-profit lenders or banks.

With the backing of the SBA, the bank will more readily approve a small business for a loan that has a low down payment, long repayment term, and a reasonable interest rate.

These loans also come in various forms although the most popular ones include the ‎SBA 504/CDC loan, the SBA Microloan, and the SBA 7(a) loan. These loans can be used to buy equipment, add to working capital, expand your business, and more.

Benefits of SBA Loans

SBA loans are no doubt the most in-demand lending product for small businesses available on the market right now. This is because it is the ideal financial middle ground for owners of small businesses. Some programs even offer flexibility in how you will use the loan proceeds with the loans themselves secured as well.

Here are the top benefits of SBA loans:

1. 1. It’s meant for small businesses.

Banks are usually hesitant to fund small businesses since these are riskier bets compared to larger corporations. They also need extensive underwriting for smaller amounts of loans.

Online lenders, on the other hand, tend to have more relaxed requirements. They are also more willing to fund smaller and younger businesses with lower credit scores, often offering loan products with higher interest rates due to the assumed risk.

SBA loans are also a great middle-ground offering small businesses funding bank loan-type at affordable rates and encouraging repayment and growth.

1. 2. Funds can be used in different ways.

Several SBA loan programs implement various rules regarding the use of proceeds. But with an SBA ‎7(a) ‎program, for instance, a recipient will be able to use the loan for renovation and expansion, new construction, building or land purchase, as working capital, buy equipment, refinance debt for good reasons, and so much more.

Some programs let you finance purchases of long-term fixed assets., use the loan as a seasonal credit line, and others.

3. Loans are secured.

SBA loans often require collateral but nothing is wrong with this. It is almost impossible to look for an unsecured business loan, or one that doesn’t come with collateral, that has reasonable interest rates. With collateral in place, you can inform the bank of what you want to give as payment if you end up defaulting on the loan for whatever reason instead of just leaving things to them.

Thanks to SBA loans, small business owners can finally get the funds they need to grow and expand their ventures.

 

 

With the whole world finally back to normal, and with everyone returning to work, most people are either rethinking their careers or starting one for the very first time.

No matter which group you belong to, the following are the top five careers for 2023 that have been seeing a high demand across the globe.

Data Scientist

Just so you know, data is now the new gold, and this gold rush has led to the development of a job market that won’t go away any time soon. It only means that jobs related to data science will continue ruling this 2023. It is even revealed that data science jobs will remain relevant up to 2030.

But there might be a catch here. Some numerous jobs and roles fall under the umbrella of data science. This can make things a bit confusing for someone who wants to switch career streams or is just getting started.

Machine Learning Engineer

The demand for machine learning engineers has seen significant growth for the past few years. As an increasing number of companies look into machine learning to safeguard their businesses from potential disruptions in the future, the demand for these professionals is shooting up as well.

This is why there’s no doubt that it is one of the top five careers in 2023. And one of the best things about it is that there will be exponential growth in your career graph and you can even solve real-life issues.

Marketing Analyst

The responsibilities and roles of marketing analysts are an off-shoot of data science careers. These experts analyze data sets of market campaigns or segments and use these to generate usable insights.

This is also among those careers that require applicants who have business acumen and scientific knowledge at the same time. One of its biggest perks is that you can even work wherever you like, not to mention that you can also showcase your creativity.

Network Security

Cybercrimes have been estimated to have a global annual cost of $6 trillion. On top of that, cybercrimes also grew by over 600% since the start of the COVID-19 pandemic. What does it mean? It means that now is the perfect time for you to try a career in network security.

Network security experts maintain the security of the internal data of companies and their partners and clients. Since a high cost is at stake when a security breach occurs, this makes this career rather lucrative.

The scope for roles in the field of network security is also expected to grow in the near future, which means there is continuous learning and job security here.

Nurse Practitioner

Nurse practitioners are believed to be one of the most in-demand and top five careers in 2023. It is mainly because quality healthcare has now become one of the most valued professions not just these days but even in the future. Here, you have to become a certified nurse first and continue to hone and add to your skills. This career offers longevity and even the chance to work independently.

 

 

 

 

Side hustles are the hottest craze right now. There’s no surprise there at all. Considering the current economic condition, people are working harder than ever to keep up with the demands of life and make ends meet.

Whether you are looking for your next side hustle, or this is the first time you’ll try your luck with an extra stream of income, here are the top 5 side hustles for 2023 that you might want to check out and consider.

Freelance Bookkeeping

With a potential income of $20 to over $40 per hour, the major role of a freelance bookkeeper is to help business owners in managing and record their everyday financial transactions. These can include payment collection, payroll management, and bill payments.

Bookkeeping is different from accounting, and you can even begin bookkeeping online without a certification or degree. But as a bookkeeper, you should familiarize yourself with financial software programs and balance sheet reading and creation.

You can also work online and receive your payment either weekly or daily. if you’re good with numbers, this one’s the best side hustle for you.

Food Delivery

Food delivery services have gotten busier than ever. Thanks to the massive growth of these services, most of them need more drivers who can expect earnings of $20 to $25 per hour these days.

Food delivery drivers can often schedule when to drive any time they want. Typically, there are also no limits or minimums to the number of hours they can work per week. If you love to drive and you are also a certified foodie, why not become a food delivery rider?

Freelance Writer

Freelance writing has gotten broader than ever, and now encompasses several jobs which include blog posts, ghostwriting, catalog descriptions, print and online articles, and email newsletters. Some also specialize in web copy, content mills, technical writing, grant writing, resumes, and marketing campaigns.

Freelance writers can earn $500 to $5,000 per month although remember that it might take some time to build and grow your business and portfolio.

Blogging

Successful blogs can generate $10,000 up to a staggering $200,000 a month in revenues from ads and affiliates. You get paid every time readers click the links on your blogs to try a particular service or product.

And believe it or not, some bloggers didn’t even launch their blogs for the sake of making money alone. For most bloggers, it‘s because of their passion for writing. But the moment their blog started generating revenue, things got bigger from there.

Copyediting or Proofreading

Rounding up the list of the top five side hustles for 2023 is none other than copyediting or proofreading. Businesses, websites, and bloggers all need proofreaders, and most of them pay well for such services.

To make things even better, you can start your side hustle with just your laptop no matter where you are in the world. You can even set your rates and charge your clients per hour. Copyreaders or proofreaders can earn $1,000 to $20,000 per month.

Which of these side hustles would you like to try this 2023?

 

 

 

 

 

Ask any real estate investor, and they will surely tell you that the path isn’t always filled with roses. Most of the time, they face major dilemmas at least once or even a few times throughout their careers.

Imagine this: you found a lovely property with excellent value. But what if its location is far from ideal? What if there are high crime rates or the nearby houses in the neighborhood are rundown? What if it’s in the ghetto?

Should you purchase a house in the ghetto in the first place? Would it be worth the risk?

Location Always Makes a Big Difference

This dilemma is perfectly understandable and even common. As they always say in the world of real estate, location is the most important word in the field. But as expected, successful investments in real estate is never as straightforward as that.

Some investors do thrive in lower-end or poor markets, but others try to stay away from sketchy neighborhoods as much as possible. At the end of the day, it ultimately boils down to professional experience and personal preference. It means that you will be the one to determine if the potential rewards will be worth the risks or not.

The Good

Before anything else, your success will ultimately depend on what you plan to do with the house itself. If you feel confident about buying the property, giving it some fixes and repairs, and flipping it as fast as possible to make some profit, then, chances are you won’t be facing a lot of risks.

If you plan to buy the house, renovate it, and rent it out, you need to consider more things before you make your final decision.

Even a nice property in the ghetto will possibly come with a cheap price tag, and this happens to be one of the best appeals of investing in this particular market. You will have an easier time paying off your mortgage, property taxes, and other costs involved with home ownership.

Most importantly, buying a house in the ghetto can also help grow your rental portfolio. As long as you do it right, you can also expect high ROI or returns on investment.

The Bad

Just like anything else in the world, nothing ever comes without a negative side. For starters, houses in the ghetto tend to have lower rent or resale prices. The higher risk of crimes can also affect the cost of your insurance. And if the neighborhood you choose has a downward trend, you might end up dealing with poor or no ROI at all.

Study and Monitor the Trends

Just like other real estate investments, it would always work to your advantage if you consider and factor in the past, present, and future of the specific neighborhood where you plan to buy. For all you know, even if it looks a bit run-down today, positive community initiatives or gentrification may soon help it up.

It means you can purchase a house for a cheaper price and later on, it might see a drastic increase in appeal and value as the neighborhood becomes more in demand and desirable. You can even snatch up a few cheap properties that you can fix and attract more tenants that can revitalize the community down the road.

 

Nothing is easy in this life, especially when major decisions are concerned. Even a single decision can have a major effect on your future. Just when you thought you made the right choice, you might end up realizing sooner than later that it was actually the wrong one.

If you’re already an entrepreneur, you might have second thoughts about going to college. Should you go to college when you’re an entrepreneur, then?

Since there is no way you can predict your future, you have to take a smarter approach before you decide for good. Take a look at the different possible scenarios so you can analyze your life and determine whether you should be going to college or not when you’re already an entrepreneur.

You’re in College or University Already and You’ll Graduate Soon

It won’t make sense to throw away your college degree only because you already have a business of your own. You can continue to hone and develop your business now even when you’re attending school.

You can even use this precious time to build more connections, double down on networking, and make friends in different fields. For all you know, you might even end up tapping into this particular network down the road.

You Won’t Incur Debt Thanks to Your Full Scholarship

If ever this is the case, it is recommended to use it for everything as much as possible. After all, not everyone is lucky enough to receive free education, so don’t miss the chance to take advantage of such a rare opportunity.

You’ve Been Accepted to a Topnotch College

There is no reason for you not to go, provided that the debt load won’t become a burden and that you won’t get strapped to a corporate job position for the rest of your life.

Studying in a top-notch college won’t only guarantee a high-quality education but it will also help you gain true expertise you probably won’t get anywhere else. Most importantly, you will also be able to build a stronger network that can benefit you throughout your life.

Going to college is also the perfect opportunity for you to study and master the art of networking. You can even consider it as your time to practice and test the waters. This is the kind of network that doesn’t come with a price.

Even the degree itself will be extremely valuable as well, especially if the time comes that you’ll need a regular job for whatever reason. There’s nothing wrong with having a backup plan in place. Again, while

The Bottom Line

Again, major life decisions like determining if you should still go to college or not when you’re already an entrepreneur are never easy. Although neither of these options will ruin or compromise your chances of becoming successful in your business, one thing is for sure: the choice you make will ultimately shape what will happen for the rest of your life. So, always choose wisely!

Hacks are ruling the world right now. From life hacks to more technical hacks, everyone’s going crazy about hacks that simplify things for them. But have you ever heard of the so-called house hacking?

Yes, there is such a thing as house hacking. It is a modern lifestyle choice inspired by old-school ways and re-imagined thanks to the latest home-sharing platforms.

What is House Hacking?

To put it simply, house hacking is all about looking for ways to make money out of your home. House hacking traditionally meant purchasing a multifamily property and living in one unit, while the rest is rented out. The rental payments will then go to the owner’s mortgage while the owner maintains the property and build equity on it.

Ask any savvy investor and they will surely tell you that multifamily properties and other similar properties are one of the easiest ways to master the ins and outs of being a landlord and property manager while enjoying the perks of their tenants paying for their housing expenses.

Why Try House Hacking?

House hacking is perfect for a temporary reduction of living expenses. it is also a great option if you are still testing out the waters of real estate investing. Either way, considering the exorbitant housing cost, house hacking is an effective method to use an existing asset to afford your lifestyle, set aside money for savings, or purchase more properties while building your home equity.

Popular House Hacking Strategies

Everyone can try their hands at the following house hacking strategies. All you have to do is find the one that suits you best:

• ADUs

Renting an ADU or Accessory Dwelling Unit, also called the luxury house hack, is perfect if privacy matters the most to you or if you have a family. You can build an ADU in your backyard or buy a property with a readymade ADU.

• Multifamily Property

Fourplexes, triplexes, and duplexes are the perfect examples of multi-unit properties. You will live in one unit with the rest rented out. People often apply for loans for these properties, particularly first-time home buyers.

It is a great house hacking strategy for markets with lower prices. However, profit may be difficult in expensive housing markets with rents that can’t even cover mortgage payments.

• Short-Term Rental

As long as the county and homeowners’ association law allows it, any type of property can be transformed into short-term rentals. All you have to do is list the property on online platforms and have it rented out as often as you want. This house hacking strategy often generates positive ROI, especially in areas with high traffic.

• Single-Family Rental

Buying a large single-family home is the easiest way to try your luck in house hacking. You just stay in one room and the rest is rented out. Just make sure that there is sufficient space in the common area and that there are enough bathrooms for a more comfortable experience for everyone.

Yes, house hacking is a real thing, and yes, you can also try it for yourself!

 

Believe it or not, small business owners have a salary, too! But the only difference here is that they decide on the amount themselves. The only tricky thing here is determining how much to pay yourself when you own a small business.

It takes time for businesses to rake in profits, which is why most owners don’t usually take a salary during the early stages. There’s nothing wrong here as your business settles in. However, it is never recommended as a long-term approach.

To prevent any negative effects on your finances, paying yourself a salary is a must. Since this doesn’t have any definite guidelines, most business owners don’t have the slightest idea of what amount is considered appropriate.

Here are a few tips to help you determine your salary as a small business owner:

Start with the Net Income of Your Business

The net income of your business is its profits. It’s the amount that remains after you deduct the expenses from the revenue. Calculate your net monthly income first as this will help you determine how much salary you can pay yourself.

Most businesses have fluctuating monthly incomes. Some months may see more profits than others because of unexpected expenses or differences in revenue. Consider this when calculating the average net income per month over the latest period like six months.

If your business doesn’t show profitability yet, taking a salary might be too early. If it earns monthly money, you can get your salary from the net income.

Allot 30% for Taxes

You will also owe taxes on your business profits. Business taxes are complicated topics, and the amount to pay will depend on various factors. The general rule of thumb is to allot 30% of profits for taxes, which often works great for newer businesses. You can also work with an accountant or learn accounting yourself to get a more precise figure.

Never wait until your taxes are due before you determine how you will pay for them. Small business owners may face serious problems if they get behind on their taxes. If you are unable to make the necessary tax payments, you might need to borrow money or prepare a payment plan to do so, both of which are not ideal.

Remember that you also need to calculate tax liability and pay estimated taxes every quarter for your business. You will be facing a penalty if you don’t do so and you only pay your taxes after a year.

Divide the Residual Money

This is the point when you finally have the monthly income of your business after the taxes are accounted for. The rest will be yours to divide depending on how you want to.

A portion of this should be allotted for a reasonable salary you will pay yourself. The remaining will go to business savings to be used for future expenses. These may include additional employees, marketing campaigns, new equipment, training programs, and website updates.

Paying yourself might not be easy if you are just getting started but sooner or later, this is something you do for the benefit of both you and your small business.

 

Emergencies are no fun, especially if you are strapped for cash. This is why almost all financial tips always include having an emergency fund in place.

But the big question is, how much should you have in your emergency fund in the first place?

There is no such thing as a definite answer here as it ultimately depends on your unique situation. However, setting aside 3 to 6 months’ worth of your present monthly income will help you stay afloat in the event of an unexpected significant expense or a job loss.

How Much Should You Save in Your Emergency Fund?

The number of months of expenses allotted in your emergency fund largely depends on your circumstances. These include your personal financial goals and habits if you are self-employed or have a stable job, and what other available funds you have in case an absolute emergency happens like your retirement savings.

Now, you are probably wondering why you should only save up a couple of months’ worth of expenses instead of saving up regularly to have more years’ worth of income in your checking account.

But again, it is a matter of financial planning. Despite having your emergency fund in an FDIC-insured and high-interest money market account, chances are you won’t enjoy significant returns after some time compared to investing the money.

It means that despite setting aside a year’s worth of money in your savings account with a high yield, it might work better for your financial goals to have this money stashed elsewhere where it will be less accessible but will have a higher return on investment or interest rates.

Scenarios When 3 to 4 Months’ Worth of Expenses are Recommended

You can survive emergencies if any or most of the following are applicable in your case:

• • You are in excellent health.
  • You don’t have significant credit card debts, student loan debts, and other bills.
  • You have a family or partner you can turn to during emergencies.
  • Your job is stable or you work in a field where finding a new job is easy if ever you lose your current one.
  • You live in an area with a remarkably low cost of living.
  • You have insurance to cover all or some of your expenses if ever an illness or accident renders you unable to work at the moment.

Scenarios When 6 Months’ Worth of Expenses are Recommended

• • You’re financially responsible for children, a partner, other dependents, and pets.
  • You don’t have family members or a partner who can provide support during emergencies.
  • You didn’t save up for retirement or you don’t have other investments to sell if a true emergency arises.
  • You have significant medical debt or ongoing medical expenses.
  • Your area has a higher cost of living.
  • Your line of work or hobbies is prone to accidents.

Scenarios When 12 Months’ Worth of Expenses is a Must

• • You have plans to take a leave from work while trying for a child or expecting one.
  • You’re the family’s sole source of income.
  • You don’t have resources or family you can turn to for assistance.
  • Your income is high enough and you can easily set aside this much for your peace of mind.
  • You have several debts that you can’t restructure during emergencies.
  • Your job is tricky to replace if you need to switch jobs or get laid off.

 

 

Does your home look and feel like it needs some revamp soon? Home renovation projects are an exciting undertaking. But as you might already know, these jobs aren’t cheap. This is why it is important to budget accordingly to ensure that you don’t end up wasting more than what you can afford.

How much should you budget for renovations, then?

How Much Does It Cost to Renovate Your Home?

Depending on where you live, your level of experience and skills, and the specific room you plan to renovate, home renovation projects approximately cost $10 to $60 per square foot. Some projects may even cost as much as $150 per square foot. What does it mean for you?

It means that if you are living in a cozy house with 1,000 square feet, renovating it might cost you anywhere around $10,000 to $60,000. A 2,000-square-foot house, on the other hand, can cost you $20,000 to $120,000. With such staggering figures, it always makes sense to plan.

Take note that there are several factors that several factors affect the cost of home renovations. These include the size of the room in question, the type of work required, how big the project is, and the cost of materials. If you wish to have your basement transformed into a gaming room, or you want to have a Jacuzzi installed on your rooftop, the project’s cost might be significantly higher than usual.

If you plan to renovate your basement, bathroom, and kitchen, it might cost you $30,000 to $81,000. However, if your priority is your bathroom, you might stick with this project first and delay the rest.

The easiest way to come up with a budget for the home renovation is to specify all renovation projects you like and price them accordingly. Request for bids for every project and rank them based on priority. Create a detailed project for the particular project you like to do first.

How Much Should You Spend on Renovations?

The general rule of thumb here is to avoid crazy spending half your home’s price to renovate one or two rooms. This won’t likely add a balanced value to your home. The easiest way to determine how much you should budget for your home renovation is to consider your current budget every month and take things from there.

For example, your house is worth $250,000 and you have a household income of $80,000. Ideally, you should spend $60,000 on renovations to upgrade some rooms and do the necessary repairs and fixes. If you save up to $2,500 every month for the renovations, you will be able to finish half of the project in your first year of saving.

How Should You Pay for Home Renovations?

Cash is your only option if you wish to be smart with your renovation projects and the expenses involved. While there are fancy options for financing that often mean you will be getting into debt, it’s not always a wise choice. Home renovations aren’t even worth borrowing on your home equity just to pay it back with interest on top.