Category: Money

 

Do you really believe that rich get richer and the poor will get poorer? Well, in a recent survey, it shows that this saying is true for most people, particularly in the US households.

The recent survey conducted shows an increase in the historically high gap income and wealth between poor households and rich ones. Based on a speech given by Governor Lael Brainard of Federal Reserve, it showed that top one percent of households held a twenty-four percent share of every US household income as of year 2015 and a thirty-nine percent share of all US households wealthy. That is a 7 and 9 percentage point increase from values twenty seven years prior.

The rich may actually get richer, yet it does not necessarily mean that the poor will be poorer. The survey found that families with varied income saw a boost in average real incomes between year 2013 and year 2016. That is a contrast from the past three-year period when recession caused stagnant or low average incomes for every income group except one, which is the top of the income distribution. It only means that the financial gaps widen for the reason that while the finances of poor people improve slightly, the wealthy individuals are also making huge financial gains.

Federal Reserve is basically concerned regarding income and wealth gaps. Provided that 2/3 of the economy is actually consumer driven, it is essential that low income households have more discretionary cash to spend.

You could think that high income households would spend more cash since they could afford to do so. The wealthiest people are likely to save bigger portion of any extra incomer they earn relative to the households in low income groups. Aside from that, high income households are more likely to invest in extra funds into the equities and some vehicles that build wealth faster, widening wealth gap further.

Low income families don’t have that luxury. They spend since they should and they cannot afford investing in high return ventures like stocks since they might have to access to their funds anytime to handle unexpected expenses. Low income families will be likely to use the traditional bank accounts with the negligible interest rates.

What could close the wealth and income gap? Generally, recessions do a good job of leveling playing fields, yet a healthier way to close income gap is through the targeted policy. More works at higher wage would bring low income classes up at higher rate, particularly if the jobs as well as stimulus programs are targeted toward the minorities.

No matter what your wealth status is, you could make most of what you currently have through wise financial decisions. Budgeting basically applies whether your household income is a thousand dollar or a million dollar. Keep your spending under control and invest wisely. If you are struggling to make the ends meet, concentrate on your situation. Let the top one percent drive the economy with their spending for the meantime. They could afford extra spending within their budget.

 

There are many net worth software and calculators that will help you calculate your net worth. However, for you to get the most out of these, you must be able to calculate your own net worth by yourself. It only requires understanding about net worth.

Net Worth – What is It?

Generally, your net worth is your assets or everything you own minus your liabilities or what you owe. Assets may include investments and cash, your house, and some real estate properties, vehicles or anything of value you have. Liabilities, on the other hand, are what you own on such assets such as student loan debts, mortgage, and car loans.

Net worth is basically your financial health’s measure since it actually says what you’d have left over once you sold your assets to pay your debts. Each financial move you create must be aimed at boosting your net worth. It means either decreasing liabilities or increasing assets.

Steps to Calculate Your Net Worth

It is an easy and simple process to calculate your net worth, yet it requires that you gather all information that surrounds your current liabilities and assets. Majority of financial planners recommend that all of their clients keep a secured folder with information on all liabilities and financial assets to be updated every year. Organizing and gathering this information can bit a chore at first, yet ensures that you have an access to the information once required.

Even if such a folder may be turned into more, calculating net worth only needs basic financial information about the things you own as well as the debts you owe. Below are the ways to get started:

Calculating Assets

• Begin by listing your biggest assets. For many people, it might include the value of their home, vehicles or any real estate properties. In case of business owners, this list will also include the business value that has its own complicated calculation. Ensure that you use accurate market value estimates in current dollars.
• Gather the latest statements for more liquid assets. Such assets include savings and checking accounts, cash, some investments or CDs.
• Consider listing some of your personal items that can be of value. Such might include coin collections, valuable jewelry, musical instrument, and so on. You do not have to itemize everything, yet you may try listing items that are worth $500 and more.
• Add all of the assets together and get the total assets.

Calculating Liabilities

• Begin with your major outstanding liabilities including the balance on your car loans or mortgage. List such loans and current balances.
• List all your personal liabilities like student loans, balance on credit cards, and so on.
• Add everything and get the total liabilities.

Calculating Net Worth

• For you calculate your net worth, subtract total liabilities from total assets. It does not matter how small or big the number is. It does not matter if the number is negative because your net worth is the starting point to have something you can compare against in the long run.

Always be conservative with the estimates, particularly with vehicle and home values. Inflating value of big assets may look great on paper, yet might not provide your precise net worth.

 

Lots of people would want to be a millionaire. But, how can you earn a million dollar salary? Well, jobs in finance, business, and entertainment are among the best compensated, yet not all working in such fields would take home a million dollar salary. Less than one percent of people across America are pulling down seven figure income yearly. Even in the industries where high salaries are common, they are still not the norm and might take years before they work their way up to the pay scale. However, below are the jobs that will help you earn a million dollar salary:

• Corporate CEO

Average CEO basically earns about $175,000 annually. However, other chief executives earn more. In fact, there are others who earned million dollars within a year. But, it depends on what industry he or she is working on. For instance, the CEOs of the companies including American Express, Boeing, Target, and Qualcomm earned more than twenty million dollars every year.

• A-List Actor

Celebrities who are bankable may take home million dollars paychecks. For example, in 2015, Robert Downey Jr. earned $80M, which made him the highest paid actor across the globe. He took home a total of $40M for his appearance in a movie and Jackie Chan also made $50M as part of the movie Dragon Blade, which basically made $120M in China.

• Screenwriter

Screenwriters who are successful may earn $1M or more for scripts and about $500,000 for script touch-ups and rewrites. The usual writer was not taking home a 5-figure income. Median earnings for the writers were $125,000 only.

• NBA Player

Professional basketball players are said to be among the best-paid athletes with about $5.15M annual salary. While huge earnings of basketball players like Lebron James and Kobe Bryant skew that number, majority of NBA players earn more than a million dollars every year.

• Law Firm Partner

Being a law firm partner could translate to huge amount of money for lawyers. Partners in various law firms can earn about $1M every year. Those who have been a partner for many years earn more than the average salary of law firm partners.

• Banker

You do not need a job in C-suite to earn a million dollar salary on the Wall Street. Managing directors at investment banks earned a million dollar salary a year plus some bonuses that they can earn.

Earning a million dollar salary can be challenging and may not be simple. However, if you are determined to be a millionaire and would do anything to earn million dollar salary, try one of those jobs listed above. If your chosen career isn’t near from those of the listed jobs, there are other ways on how to be a millionaire. You can launch your own business or you can sell your products or services to companies. Although it will not make you earn a million dollar salary instantly, you will be in the long run.

Regardless of your experience in saving money, it isn’t impossible for you to know how to save $1,000 in 45 days. Just take little steps and focus on your priority, which is to save money. So, how do you save money quickly? Well, you need to work with what you have.

The basic advice to save $1,000 in just a month and a half is to have a good budget and cutting back on your spending. Make a budget and you will see how much money you’re wasting monthly. Then, you’ll get $1,000 in no time. Some had tricks including stashing away each $5 bill they got and save every dollar bill and loose change. This could not add up to a thousand dollars, yet it will surely help you get there. The top and best suggestion to cut back on expense is to avoid dining out.

Consider Bringing in More Money

There are countless of ways to bring in more money. One of the best ways is to sell your things and some items that you no longer use. Craigslist, eBay or garage sale can be beneficial as it will not only help you get rid of the things you do not need, but also you will earn extra money.

If you are not up for any garage sale, sell your silver jewelry or old gold. This will help you earn hundreds of dollars easily. If your job lets you work overtime with pay, it is also a good way to bring in more money. If that is not an option, you may use your talents or skills to earn extra money through finding part-time jobs. You may also clean somebody’s house during afternoon. You can also baby sit or walk dogs. Teaching someone how to do some things they don’t know is also a good idea. Although it will not pay you a huge amount of money, it’ll add up for your savings.

Save Money Through Getting Deals

Some are making a wise move to cash out life insurance policies to knock out their aim. They will get whatever cash is available from such policies and save money on the premiums through switching to the term life insurance. Other than that, you could save money monthly through shopping around for good deals on auto insurance, home insurance, health insurance, and life insurance.

Other than insurance, you can also find and use some deals when shopping online or in grocery stores. With this, you can save a bit, which can be helpful to achieve saving $1,000 in 45 days.

Believe That You Can Save $1,000 Fast

Whatever tricks you spend or how much cash you could dig up, you will not hit your $1,000 goal if you do not picture yourself achieving it. You need to believe that you can do it and claim it. Today is the best time for you to take control of your money. Learn the ways to save money, make your own budget, pay off debts, and invest for your future.

 

You already have some money to invest for year 2019. But, what are the best investments you can take for consideration for your hard-earned money? Remember that you have to be smart when investing if you like your money to count.

While you are completely aware of the different investing options available, the number of the possibilities is overwhelming. In the world of investing, it’s best known as paralysis by analysis. You spend more time analyzing your options, which you wind up putting it off and don’t invest at all. Then, your extra money will be consumed by unexpected expenses or bills.

If you want to ensure that your extra money does not disappear, you have to invest that right away. A particular amount of analysis is good if this will help you find the best and right investment option for your goals, yet you still have to act quickly.

Below are the best investments to consider for 2019:

• Stock Market

While investing in stock market is some of the basic advice you will ever read, there is a reason behind it. While everybody is aware that investing in stock market has paid off, there are numerous people who do not rely on the financial markets and consider sitting on the sidelines together. But, there are also others who think stock market is overvalued that they’d be crazy to jump in.

So, the best thing you should do is to invest on small amount of money over time with the use of the method known as dollar cost averaging. It requires you to trickle your money into some investments over a particular period of time. It may be a year or 18 months. It can even be 4 years.

Dollar cost averaging works whenever the market is high and you will buy fewer shares and once the market is low, you will purchase more shares. It means that in the long run, you’ll have lower market share price with the use of this method. It is easy to see why it could be beneficial.

• Real Estate

Aside from stock market, another investment strategy that you should consider is real estate. There are numerous ways to invest in real estate without the need for you to deal with the physical property. An option to consider is investing in some real estate notes. You should trust to invest in the real estate notes that are offered by a person. You can also try other real estate investment options that are guaranteed to make you earn more. Yet, make sure to ask for professional advice before making any move.

• Try Investing in Yourself

It might sound a bit cheesy, yet it is actually one of the best investments anybody can make. Through investing in yourself, you’re improving the largest asset you will ever have. There are several ways to invest in yourself that do not cost lots of money. It might sound cliché, yet it is a bet that will definitely pay off. If you like to make most of your investments, one of the smartest moves you could do is betting on yourself.

 

 

Passive income is basically money generated even while you sleep. Simply put, there is no need for you to engage in a job or punch a clock just to earn this form of income.

However, this is not something you can do with a mere snap of your fingers. Effort is still required as you set up your stream of passive income. But, the moment it is sets off from the ground, there is nothing much more for you to do than collect the cash you earned.

Below are the top 5 ways to passive income that you can try:

Rental Properties

Rental properties used to be considered as forms of passive income that require high maintenance. However, crowdfunding has dramatically changed the market of rental properties. You could now buy a share in an extensive array of rental properties which don’t need any maintenance or management at all. Since you can access rental markets from various parts of the world, you could boost your passive income from these rental properties with no need to be limited to what is available in your backyard.

Monetize a Blog

When it comes to monetizing a blog, you can choose between using affiliate links and getting advertisers to pay for their spot on the blog. But, to make your blog work in making money, make sure that it contains quality content that will keep traffic coming. Look for a good copywriter who can help you with writing engaging content. These professionals can also help you find the most interesting topics.

Design and Sell a Course

The internet opened a world where people demands for information. From how-to guides to DIY tips, people want to improve their current knowledge and skills. This is why paid courses come in handy. There are sites that provide paid courses on the internet. You can design your very own tutorials then sell it to those people who need and are interested them. You could upload them and make a passive income out of it.

Use YouTube

There are billions of people using YouTube every single day. To earn a passive income on YouTube, start by monetizing your YouTube channel. It allows YouTube to put adds on the videos you upload, provided that the videos meet copyright requirements. With good lighting, quality editing software, and professional camera, you could go a very long way in making your videos on YouTube. And similar to blogs, you can get paid for promoting and reviewing brands the moment your channel becomes popular.

 

 

 

Peer-to-Peer (P2P) Lending

P2P lending is still new in the world of finances where independent borrowers and investors are allowed to make private loans with no need for a traditional intermediary. P2P loans are being arranged with the use of a clearing house which provides borrower information and facilitates negotiations of loan duration and interest rate. While this requires some legwork, the returns can far outweigh those in traditional passive investments. This is something you can do right in the comforts of your own home, with some projects interesting enough that you would definitely not miss being a part of.

 

 

Do you feel like you are always running out of cash? Now, don’t waste time and learn the top 10 ways to save money.

1. Start Today

Never wait until you make more money before you start saving. Making more money means more expenses. Take it into your heart, mind, and soul that you want to save and start right away.

2. Write Down All Your Goals

Writing your goals makes them seem more real, which increases your chance of actually achieving them. Try to be specific. For example, it is admirable to want to save for your future but it is a bit vague. However, writing down a pledge to save $3,000 for your Maldives vacation next summer will likely become a reality.

3. Start Small

Those small savings can add up and get bigger over time.

4. Have Your Bank or Boss Save on Your Behalf.

You can do it by taking money out of your paycheck for specific goals or retirement. This way, you can be sure that you wouldn’t forget to set aside some money for these purposes.

5. Deposit Your Paycheck to Your Savings Account

It will make you think twice before taking out any cash. However, be sure that you don’t go beyond the number of cash transfers allowed in the account.

6. Secure an Account for Every Goal

Whether it is for a new computer, car, vacation, or retirement, having separate accounts will make it easier to track the progress you made. It also works well for bigger recurring expenses like insurance premiums.

7. Deduct Credit Purchases from Your Checking Immediately

This way, you will not be surprised once the bill arrives.

8. Put Spare Change in a Glass Jar

Place this jar on top of your dresser and be amazed as you witness your money growing bigger by the day. For all you know, those occasional coins you get every now and then could be the key for you to have enough budget for holiday gifts this year.

9. Continue Writing the Check After Paying Off Your Credit Card Bill or Loan

Don’t stop even when you finished paying off your loan or credit card bill. Continue to write te check then send this to an investment or savings account.

10. Gift Yourself with an Instant Reward

Every time you managed to say no to that burger, toss your money into your cash jar. It will seem like less of a chore to save if you could readily see the fruits of your labor, so to speak.

After you have established the momentum, it will be easier for you to keep going and continue with your saving habit.

There are many people who shun from the idea of saving money because they find it too hard or even impossible. What they don’t know is that all it takes is discipline, perseverance, determination, and motivation to actually create a sizable savings that you can use for any goals or needs you might have in the future.

 

If you think it’s impossible for you to be a millionaire, you could be surprised at the different ways for you to get there. However, before getting too excited, if you think being a millionaire means fancy cars, upscale lifestyle, and lavish house, better think again. If you had millions and spent it that way, you would blow through it quickly.

A million can be more achievable than you think and these are the ways to be a millionaire:

• Develop Your Expertise or Career

A lot of millionaires are millionaires for the reason that they have worked hard for it and found ways to earn lots of money. They earned professional designations, degrees, and certifications to boost their knowledge and they’re willing to spend more time doing low paid apprenticeships and internships to learn their crafts. As they take the path to becoming experts, they started earning more. Several of them spent more and those types do not usually become millionaires. The ones who become richer make a commitment in saving more as they earn. People who are in this category could IT experts, corporate executives, administrators, computer programmers, architects, accountants, attorneys, and so on. Think of the best career path that will help you get on the millionaire track.

• Make Intellectual Property

It basically includes things such as trademarks, art, scripts, songs, patents, books, and many more. Numerous professors use their expertise in writing books and consulting in their field. Some professionals use their expertise to make workshops, seminars, and training programs where they could sell their books and some materials. If you have some ideas or you’re good at what you do, think of the ways you could make subscriptions, franchises or licenses to expand what you’re doing.

• Have Your Own Business

Businesses have its own value whether you’re involved or not. If you’re in a service business, making a duplicate business model can be a bit challenging. Usually, the business is actually your expertise and you’re in the business. You need to determine to train some to do what you want so you could work on your business instead in your business.

• Always Save Diligently and Do Not Forget to Invest for Your Growth

Anybody can be a millionaire once they spend less than they’re making, investing appropriately, and saving diligently. How much you have to save actually depends on how much time you basically have as well as what rate of returns you’ll earn. You may check out some online millionaire calculators that will help you calculate your own numbers. A big mistake people make that keeps all of them from reaching the status of being a millionaire is they upsize the lifestyle once their income increases. Once your income increased, the first thing you must boost is basically the amount you are contributing to your savings.

Learning how to be a millionaire is easy, but applying all those tips can be challenging. However, if you are dedicated and committed to what you’re doing, it’s not impossible to be one of the millionaires out there.