Category Archives: Financial

“I Want to Start My Own Business” Day

Today is “I Want to Start My Own Business” Day. If you’ve followed this blog, you’re familiar with our Divorce Your Job & Keep the House series. If not, don’t worry because we’ll be reposting them starting next week Friday. But to intro the reboot we want to recognize this special day and share this wonderful article written by Ben Guinter on figuring out what business to start.

While we recommend starting your own financial services business due to the incredible opportunity that exists because of the unique set of circumstances that exist, we know that
isn’t everyone’s dream. So see the full article below for tips on how to find your idea and move forward.

Watch the video to find out 7 things that make a financial services business a great idea.

Source: Chapter 12: The 7 Elements of an Ideal Wealth Building Opportunity — Wealth Wave


September 11th is “I Want to Start My Own Business” Day

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.b0Et8kJ9.dpuf
If you’re looking for something to do today then stop procrastinating because it’s “I Want to Start My Own Business” Day! If you’ve ever said that statement before, today is the day to take your first step toward that goal! Let’s get right into celebrating “I Want to Start My Own Business” Day!

WHY IS THIS A HOLIDAY?

Well, think about how many times you’ve heard people say that phrase before… there’s a reason why it’s in quotation marks. 😉 People say it all the time and never act upon it, whether or not they have a strong desire to own a business or not. They mention it and forget about it before taking a step toward that goal. So sure, we could just spend today pointing our fingers at procrastinators or we could make it a day of action where you finally put into play a plan on how you’re going to reach your goal of running your own business. It can be a struggle to get started but if you don’t have a plan to achieve your goal then it’s just a passing dream. And if it’s really something that you want, you’ll just end up beating yourself up over not taking any action. But if you were to at least look into what it would take to get started, write out your definite goal and start mapping out your steps toward it then you’ll have a new purpose in life.

You won’t be a procrastinator, you’ll be doing what you want and before you know it you’ll have as much freedom as you desire. Can you imagine what it would be like to be your own boss? You set your hours, you decide what work you want to do and give the rest to your employees. Image what it will feel like to reach your goals! Just don’t abuse your power. 😉

HOW TO CELEBRATE

So, how can you celebrate today? Well, if you are one of those people who really do want to start their own business then your first step is to write down your goal. What is it you want to do with your business? What product or service are you going to offer? How are you going to make it unique? When you get it on paper you can start to mold it into exactly what you want your future business to become and it will be a constant reminder every time you see that paper. The next step would be to write out a plan of action. How are you going to reach that end goal? What are the steps you need to take to ensure your business succeeds? What kind of resources are you going to need and who can help you along the way? You can break these steps down to the simplest of tasks and put them in order so you know what you need to do from start to finish. And by the time you’re done you’ll know exactly what lies ahead of you. Can you guess what the next step is? DO IT! You have your goal mapped out, you know how you’re going to get there and now all you have to do is actually start doing what you planned to do. If you broke the steps down into individual tasks then just start trying to tackle a task a day or each week. Stick to it even when you are a little discouraged and you’ll have your business up and running before you know it! Have a great day and I can’t wait to see the grand opening of your business!

– See more at: http://benguinter.com/iwanttostartmyownbusinessday.html#sthash.1z1FR93G.dpuf

Money Mistakes to Avoid – 3

The last two posts in this series have been primarily about saving early and wisely. But what if you didn’t do that in your past and now have a lot of debt? What should I do first, save or pay off debt?

It’s a question commonly asked by clients and friends facing this dilemma. If you have enough income our first suggestion is to do both. Develop a plan of systematic debt payments and saving contributions that you can manage within your budget. But many people who pose this question feel that they are not in a position to do both simultaneously. In this case, saving money instead of paying off high-interest debt would be a huge mistake.

True if your only savings is your emergency reserve, paying off your debt first can be risky. But it’s a risk you have to take if you ever want to be debt-free. Here’s why. Once again it comes down to the math.

Notice we referenced HIGH-INTEREST debt. If you put money into a typical savings account (with the “high yield” ones currently offering about 1%) instead of making larger payments on a debt that has an interest rate of 30%, you’re still paying 29% and not doing anything to shorten the length of time you’re paying that debt off. Unless you pay the debt off quickly it doubles in about 2 and 1/2 years according to the Rule of 72. By saving instead of paying off the debt quickly you would be trading freedom from debt for a sense of security that depending on other financial circumstances may not be genuine.

So how do you take this risk of paying debt off first responsibly?

One option is begin by focusing on paying off the smallest debt first. Pay more than the minimum on that debt while maintaining minimum payments on the others. Once the first debt is eliminated, you can either roll that payment amount on to the next smallest debt or split the payment amount between your savings and the next lowest balance. Repeat this process until all your debts are gone. An alternative strategy is paying off the debt with the highest interest rate first thus saving yourself added interest payments.

Other options to consider when eliminating debt is consolidation to zero or low-interest rate credit lines or debt relief programs. At the end of it all there is no one size fits all approach to the question of whether to save or pay off debt first. If you are unable to decide which method would work best in your situation, consult with your banker or other financial professional for a personalized plan.

How to Divorce Your Job and Keep the House – THE REVIVAL

Wow it’s been 10 months since our last Divorce Your Job post! embarassed emoji

Unfortunately the personal quest to divorce my job occupied my time and while new blog postings were made, none pertained to this series.

The following infographic from an Entrepreneur.com article shows why this Divorce Your Job series is still relevant despite it’s most recent extended hiatus. In case I haven’t complained earlier about the millenial title that I feel has been inappropriately applied to too wide a span of birth yearsEntrepreneur infographic

In my experience, the two years to entrepreneurial independence is an accurate average. While I haven’t fully divorced my job, I did manage to divorce my job location in favor of somewhere that will better serve my entrepreneurial endeavor.

If you have been following this series, tell us what steps have you taken so far in divorcing your job.

Money Mistakes to Avoid – 2

It’s been two weeks (and a few days – sorry about that) so it’s time for our next money mistake to avoid. Last time we talked about not saving from as early as possible. Hopefully if you weren’t saving before you read the last post you are now.

Mistake #2: Locking away all your savings.

safe

‘But Ms. ME didn’t you tell me last week to open a Roth IRA? Once the money is in there I can’t touch it until I’m retirement age.’

Yes, yes I did tell you that last week. But I did not tell you to put ALL of your savings in there. Let me be clear and restate this comment from the last post.

“Once you have a couple of hundred dollars in that savings account it’s a great idea to go ahead and open a Roth IRA at an early age.”

Notice I said “a couple of hundred dollars” and then I reference opening an IRA with only $100 of those dollars. The remaining funds should stay in your savings account. You never want to lock away ALL of your savings in any account that restricts you from accessing it. In the context of the last post, we were encouraging parents to start savings accounts & then IRAs for their children. From that point on split your saving for your children between the two accounts. If you desire to earn a higher interest rate, using some of the funds from the savings account to open a certificate of deposit can be a valuable option.

Once your children become independent, these initial savings accounts can serve as their emergency funds for when life happens. That way instead of calling mom & dad for help immediately, they can first turn to the help mom & dad have already given them by getting their savings started early.

For everyone who started saving since the last post, the basic advice is don’t put it all away in an inaccessible savings instrument just for the higher interest rate. The trade-off isn’t worth it if you end up having to resort to using credit in an emergency situation.

Money Mistakes to Avoid – 1

If you’re over the age of 18 it’s likely you’ve made some mistakes with your money. Even I have made some because let’s face it no one is perfect. So we’re starting a new series on the money mistakes you want to avoid if you haven’t made them yet.

Mistake #1: Not saving from an early age.

By gringer on Open Clip Art Library. (Created by 'gringer' on Open Clip Art Library.) [Public domain], via Wikimedia Commons

First let me state this mistake is not always our own to claim. I strongly believe that anyone who has a baby should make their first outing into the general public include a trip to your local bank or credit union to open at least a savings account for the child. So if you didn’t have one as a child, this is one time you can rightfully say it is your parents’ fault.

Now I understand some parents become parents unexpectedly and that $25 you need to open an account needs to spent on diapers, formula and all the other necessary baby paraphernalia. That’s when taking it old school and getting a piggy bank to save that spare change will help get you there.

Once you have the account opened for your child, create a regular savings plan. Determine what amount you can reasonably deposit into the account on a regular basis. Then stick to it! The great part about starting this savings plan for your child is that they have a longer amount of time for the money you deposit to grow, no matter how small the amount. I recently had the opportunity to help a business partner grasp compound interest by stating, ‘You’re earning money (interest) on free money (interest)’.

Compound interest Einstein quote
Listen to the genius..

Once you’ve started your child off saving early, it’s important that you include them in the process when they are ready. There’s no set age for this as children all mature differently, but it can be as simple as teaching them what change in your local currency looks like so that when they spot some carelessly discarded on the ground they know to pick it up and put it in that piggy bank you got them earlier. From there you can teach them how to count it, show them how to deposit it in their account, and start helping them to understand how to read their bank statements. So far no complicated math involved.

Oh but there will be some…

But it’s simple Math, something you can use for your own savings no matter when you started and that you can teach your children once they learn how to divide. To get a general idea of how long it would take to double your money simply from interest alone, divide 72 but whatever interest rate their account earns. For example, a savings account earning 1% (one of the highest rates we could find for a savings account btw) would double in 72 years [72/1=72]. Just one more reason it’s important to start saving early.

Of course since you’re adding money to the account it won’t take quite as long to see your money double. But let’s say you want to earn more than 1%. Up until this point we’ve only been looking at regular savings accounts and we haven’t mentioned a specific savings goal. Let’s talk saving for retirement now. Once you have a couple of hundred dollars in that savings account it’s a great idea to go ahead and open a Roth IRA at an early age. That concept of compound interest applies to those accounts also, they can be opened for children, and require relatively low initial deposits, some as low as $100. There are other benefits as listed in this Investopedia article. Talk to your financial professional for more details.

Check back in 2 weeks for another money mistake.