Commit. Plan. Take action.
If you’re interested in making a new investment, consider dividend stocks. Before you start the investment process, it’s important to know what dividend stocks are and what you can expect as an investor. Read on to learn more about dividend stocks, the benefits and drawbacks, the investment process, and the high-dividend stocks you can invest in.
Revenue-based business loans, also known as growth financing or revenue-based financing, are a type of financing that is based on a business’s revenue growth. This means that instead of focusing on credit history or collateral, lenders look at a business’s revenue and projected revenue to determine eligibility for a loan.
These loans are typically used for working capital, which is the money a business needs to cover day -to-day expenses and operations.
Revenue-based business loans are structured differently than traditional loans. Instead of a fixed monthly payment, the loan is repaid through a percentage of the business’s revenue. This means that during slower months, the payment will be lower, and during busier months, the payment will be higher.
The repayment period for these loans is typically shorter than traditional loans, ranging from 6 months to 3 years. This allows businesses to pay off the loan quickly and avoid long-term debt.
There are several reasons why revenue-based business loans may be a good option for your business.
By choosing a revenue-based business loan, you can benefit from its flexibility, accessibility, and quick funding process. It’s important to consider your business’s specific needs and financial situation to determine if this type of financing is the right fit for you.
While revenue-based business loans may be easier to qualify for than traditional loans, there are still eligibility requirements that businesses must meet. These may include:
While revenue-based business loans may be a good option for some businesses, they may not be the best fit for everyone. It’s important to explore all of your options before deciding on a loan. Some other loan options for small businesses include:
When deciding on a loan for your business, it’s important to consider your specific needs and financial situation. Some factors to consider include:
It’s also important to research and compare different lenders to find the best terms and rates for your business.
Business loans based on revenue can be a great option for small businesses that need working capital or funds for expansion. They offer a flexible repayment structure, quick access to funds, and do not require collateral. However, it’s important to consider all of your options and choose the loan that best fits your business’s needs. With the right financing, your business can continue to grow and thrive.
Investing while you still have a debt to pay off is a controversial topic amongst debt-free communities. However, many people still find it difficult to climb out of the debt holes they’ve dug. Many have to search for side jobs, part-time gigs, and other ways to pay off what they owe. In some cases, individuals have started to invest to pay off debt. Is this a good way to reach financial freedom?
If you follow the teachings of Dave Ramsey or any other debt-freedom-focused financial advice, you know that most don’t recommend you invest at all until all your debts have been paid. This is typically because the quicker you pay off your debt, the sooner you’ll be able to put all of your extra resources into investments, retirement planning, and other financial goals.
In fact, paying off your debts early may be one of the best investments you can make. Paying off your mortgage early, for instance, has a guaranteed return on investment. You’ll save money on interest. However, the same guaranteed return isn’t there when you are investing. In some cases, you may even lose money that you couldn’t really afford to (especially if you are holding debt).
I frequent the debt-free subreddit looking for good advice and interesting topics. One Reddit user took to the forum to ask others about their thoughts on using investments to pay off debt. Essentially, they were wondering if they could invest to pay off debt, meaning they wanted to make minimum payments on their debts while using any other money to invest in the stock market. Then, eventually, they’d cash out and pay their debts in full.
Most, if not all, Redditors advised against doing this. Here’s why…
So, all in all, it isn’t advisable to invest to pay off debt. Instead, use all of the “extra” money you have to snowball your debts. Once you’re finally debt-free, then look into investing your money.
Investing your money to build wealth is a great way to help you toward a more secure future. There are, of course, several different ways you can invest your money to help you toward such a goal. If real estate investing interests you, it may help to have a partner when you are getting started. But, as with many things, there are both pros and cons of a real estate investment partner.
If you are new to investing and have decided to invest in real estate, it can take several thousand dollars for your first down-payment. In order to have enough money, you could split that amount with a partner in order to reach your goal faster. Obviously it is an advantage for your partner as well because they get the same benefits as you – being able to invest sooner rather than waiting until they have saved enough on their own for the initial down-payment on a property.
Are you interested in real estate investing but lack the experience necessary to get started? This is another area having a partner can help. Choose wisely among your family or friends to ensure you are getting someone who not only has the experience necessary, but also has had success in real estate investing in the past.
When you have a partner to invest with, you may be able to accomplish your goals more quickly. For instance, if you are investing to flip the property and you both plan on also investing sweat equity, having two of you to do the work can help you get finished faster. The quicker you finish, the quicker you can sell the property, bank the profits, and move on to the next one.
When you have a real estate investment partner, it helps make the process go smoother if you get along well with each other. Before deciding to enter into a business relationship together, talk to your family member or friend to ensure you have the same ideas and goals for the property. If one of you wishes to fix the property and flip it but the other wants to rent it out, for example, you must be able to come up with a plan that you can both live with. That may mean one of you gives in to the other about the end result. Or, if neither of you is willing to compromise, you might need to find a different partner.
Investing with a partner requires some planning. If you and your partner are investing to rent the property, have you planned for what could happen if you are unable to find a renter? There are ways to plan ahead for such a possibility by choosing to invest in a turnkey operation.
You must continually interact and communicate with each other about what is happening to your project along the way when you have a partner. Any failure to do so could completely sink your project, your relationship with your partner, and possibly your own finances.
As with any type of partnership where money is involved, you should draw up a legal contract for both parties to sign. This holds true whether you are partnering with a friend or family member. In addition, each party should have their lawyer look over such an agreement before signing it. This way, both parties are protected in case the deal, or property, goes south.
As you can see, real estate investing with a partner is not something you should enter into lightly or on just a handshake. That may have worked for some people in the past, but to ensure you don’t end up getting into a bad situation, think carefully about the pros and cons of a real estate investment partner before you write any checks.
After welcoming our daughter into the world almost a year ago we have been looking into things we can do to set her up financially. In addition to improving our own financial wellness, we plan to do things to help her in the future. That brought us to researching 529 savings plans and their benefits. I wanted to bring what I learned to the blog.
According to SavingForCollege.com, a 529 plan is an investment account that provides tax benefits to the accountholder when used for qualified education expenses. Now, what are qualified education expenses, you ask? The include the following:
Every state in the U.S. offers some kind of 529 savings plan except for Wyoming. These types of savings plans are typically categorized as a college savings plan or a prepaid tuition.
A prepaid tuition plan allows you to pre-pay all or part of the costs of education at an in-state public institution. These plans can be converted to be used at private colleges or out-of-state universities as well. For individuals interested in private college education, there is a separate prepaid tuition plan called the Private College 529 Plan.
College savings plans, on the other hand, work like a 401(k) or IRA. It puts your contributions into mutual funds and other similar investments. Before opening this kind of account it is a good idea to take a look at how each 529 savings plan investments are performing.
There are a few clear benefits of having a 529 savings plan. First, having a 529 savings account does not impact your eligibility for financial aid. So, even with that money set aside, the student can apply for grants and other aid. The money in the 529 won’t be taken into consideration.
Another one of the benefits that draws most people in is the tax breaks you receive for having this type of account. The money grows on a tax-deferred basis and you don’t have to pay taxes on the money when it is withdrawn if it is being used for a qualified education expense. Depending on where you live, you can also get additional deductions and credits for contributions made to your 529 savings plan.
Education savings plans also have generally low contribution amounts. Once you have deposited the initial required amount of money, the upkeep on the account can be as low as $25 per month. You simply need to find the right 529 plan for you.
One of the only cons I can see is that your 529 savings plan is an investment account. When the market is performing poorly, so is your child’s education fund. During the economic chaos of 2008, my grandfather lost much of my college tuition money in the stock market. So, I do have that lingering in the back of my mind as we make our decision about moving forward with a 529 plan.
At the end of the day, we’d like to either homeschool or send our daughter to private school. Public school in our area just isn’t what it used to be. Knowing that we could stash away money for her K-12 tuition at a private school with some tax benefits is great. Additionally, if we decide to homeschool, we can put money into the account for college or whatever she decides to do after high school.
Readers, do you have experience with this kind of account? What are your thoughts about 529 savings plans?
In the fast-paced world of trading, safeguarding your investments is paramount. Whether you’re a seasoned trader or just dipping your toes into the market, understanding risk management and implementing effective strategies can mean the difference between success and financial turmoil. In this article, we’ll explore practical ways to manage your trades safely, protect your capital, and optimize your investment journey.
Before executing any trade, conduct a thorough risk assessment. Consider factors such as market volatility, liquidity, and your risk tolerance. Determine the maximum percentage of your capital you’re willing to risk on a single trade. This percentage should be consistent across all your trades. For instance, risking no more than 2% of your total capital per trade is a common practice.
Example: Suppose you have a $10,000 trading account. Risking 2% means that your maximum allowable loss per trade is $200.
A stop-loss order acts as an emergency exit. It automatically sells your position when the price reaches a predetermined level. By setting a stop-loss, you limit potential losses and prevent emotional decision-making during market fluctuations.
Example: If you’re long on a stock at $50, consider placing a stop-loss order at $45. If the price drops to $45, the order triggers, protecting you from further losses.
Don’t put all your eggs in one basket. Diversification spreads risk across different assets or markets. Consider allocating your capital to various stocks, commodities, or currencies. This way, if one investment underperforms, others may compensate.
Example: Instead of investing solely in tech stocks, diversify by including healthcare, energy, and consumer goods.
Stay up-to-date with market news, economic indicators, and company-specific developments. Knowledge is power. Being aware of global events and their potential impact on your investments allows you to make informed decisions.
Example: If a central bank announces an interest rate hike, consider its implications on currency pairs and adjust your positions accordingly.
FOMO (Fear of Missing Out) can lead to impulsive decisions. Don’t chase hot trends without proper analysis. Often, by the time a trend becomes mainstream, it’s already losing steam. Be cautious and evaluate the fundamentals before jumping in.
Example: During the cryptocurrency boom, many investors bought Bitcoin at its peak, only to suffer significant losses when the bubble burst.
To enhance search engine visibility, incorporate relevant keywords naturally throughout your article. Use terms like “risk management,” “investment protection,” and “trade safety.” Quality content attracts readers and encourages them to share your insights.
Visual aids break the monotony of text. Include eye-catching images, charts, or infographics to illustrate your points. A well-designed visual can make your article more appealing and shareable.
Wrap up your article by summarizing key takeaways. Encourage readers to implement the strategies discussed. A clear CTA, such as “Start applying these risk management techniques today,” motivates action.
Remember, successful trading isn’t about avoiding losses altogether; it’s about managing them effectively. By following these guidelines, you’ll be better equipped to navigate the markets, protect your investments, and achieve your financial goals.
Money is one of the things that can cause the most strife in marriages. Having different priorities about how money should be spent or different methods of handling money is usually the problem. But what if the bills are getting paid and most of your goals align except for investing? What if you have approached your spouse multiple times and they won’t budge? How do you know what to do when your spouse won’t invest?
Since you already know your other half doesn’t want to invest, maybe you need to listen. Ask what is holding them back. Find out what their fears are when it comes to investing. Perhaps they don’t have all of the facts such as what type of investment you are interested in or what the success rate is. Maybe they don’t personally know anyone who has had success in investing so they feel the numbers are faked.
As you talk about your spouse’s fears when it comes to investing it’s best to try to keep them calm and not say things that will upset or anger them. Their concerns are valid even though they may be different and have a point of view that is not the same as yours. Let them know you understand and appreciate their honesty in discussing it with you.
The truth is, until you let your spouse tell you why they don’t want to invest you can’t put them at ease about it and start investing.
Before marriage you probably discussed at least some of your life’s goals such as jobs, children, or traveling. Maybe you even talked a little about money such as paying off certain bills or student loan debt. However, many couples don’t think about the far off goals such as having money when it’s time to retire because it is so far off in the future it seems like it will never come.
But the truth is, the years pass all too quickly and suddenly you are middle aged with no retirement savings. To avoid that you must address the elephant in the room and have the hard conversations about investing. If you have talked about what is holding your spouse back you’ve already tackled one of the obstacles to investing. Now it’s time to discuss your future goals. Do you want to travel in the future? Or maybe you want to retire early and open your own business. Of course, your goals could be as simple as retiring someday with enough money in the bank to sustain your lifestyle. Whatever each of your goals are you should get them out in the open so you can move forward toward making them happen.
Now that you understand each other a little better when it comes to your investment fears and future goals it’s time to start putting together a plan. Determine if you are in a financial position to invest and what would happen if you don’t succeed. Can you both handle the consequences? Will your marriage fall apart because you each blame the other? You need to make your decisions based off of what works the best for both of you. In many cases, investing in commodities like gold and silver could be a great strategy as commodities are something even newbies understand.
If losing a lot of money is one of the fears your spouse has when it comes to investing maybe you could start off by investing only a small amount. Although there are a lot of ways to invest that require significant amounts of start-up money, such as starting a business or purchasing real estate, there are other ways to invest on a smaller scale. In fact, some types of investments, like the robo-investing company Wealthfront, have no minimums when it comes to how much you need to get started.
If your spouse is concerned about choosing the wrong kind of investment, because it’s a hard decision to make, you could get help in that area. Because investing has changed over the years you don’t have to hire financial advisor in fancy suit to make the decisions for you. Look at robo-advisors if you haven’t already done so. They are a great way to have help in your investments and are easy to use. In addition, one of the things they are known for is saving you time. A robo-advisor is a good way to get started investing if you aren’t sure how to begin.
While it’s true money, and investing in particular, can cause many an argument in a marriage it doesn’t have to be that way in yours. You may have different ideas about investing, but there are solutions that will provide you with a better future together even when your spouse won’t invest.
What other kind of approach could you take when your spouse won’t invest?
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