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Investing Time and Money: What Kind of Investor Are You?

January 23rd, 2017 Posted in learning about money
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Before you dive in and start investing your money, you need to think about what kind of investor you want to be. There are so many different types of investor, and there are lots of tactics, techniques and approaches to investing as well. By knowing about these things before you started, you can develop an approach that works best for you from the start. One of the four types of investor you will find below could be you, so read on now.

The Calm and Patient Investor
Some people are naturally calm, and they like to invest in a patient and measured kind of way. This can work very well for some people, but others simply aren’t cut out for it. It’s the kind of investment strategy that you automatically slot into, or you automatically don’t. You can’t really control how calm and measure you are when investing your cash or selling stocks. If you remain calm and stay on top of your investments at all times, you can often ride out the bad times and find the good times. However, it can backfire. No strategy or approach to investing is foolproof.

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The Silent Investor

Some people like to invest, but they don’t necessarily like the work and energy that goes into it. This is especially the case for people who are investing in startups and small businesses. That’s why many people become angel investors. They look for new business opportunities and invest their money if they like the sound of a business or an idea. But they don’t necessarily get their hands dirty when it comes to the running of the company. Instead, they let the managers and other owners get on with running the business and creating a return on their investment. There are also lots of crowdfunding opportunities for angel investors out there.

The Risk-Averse Investor

Being a risk-averse investor might sound like a contradiction because investing is all about taking risks, right? Well, yes that is true. But there are still lots of investors out there who invest their money in a way that is very careful and cautious. They assess everyone opportunity very carefully. And they never let go of their money unless they are sure of what they’re doing. They might also be more likely to pull out of an investment or sell their shares at the first sign of trouble. This can sometimes lead to missing out on chances to make money. Or it can limit losses, so it works both ways.

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The Mix and Match Investor

If you’re a restless kind of person that likes to try lots of new things, you might be a mix and match investor. These are the people who invest in lots of different ways. For example, they might trade on the stock markets and also build up a portfolio of investment properties at the same time. That’s just one example. There are so many different types of investing out there, and you can combine or juggle them in any way you choose to.

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Penny Stretching: Making the Most of Your Money in Every Situation

January 3rd, 2017 Posted in learning about money, Money Tips
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Let’s face it, we’re all trying to look for a bargain and make our hard earned money go as far as possible. In almost every situation where we spend money, there’s probably some way to get more value out of our purchases. Whether it’s bargaining at a market stall or grabbing a multi-pack deal instead of a single item, here are some of the best ways to stretch every penny that you spend.

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Open a Savings Account

There’s no such thing as being too frugal. Opening a savings account with interest rates is a good way to get money passively and stretch your pennies. It’s an easy method to get the most out of your money, but it’s a very slow process. It’s kind of like investing, with the exception that you aren’t risking your money because it’s just a savings account. However, it is undoubtedly slow and if you aren’t actually saving large sums of money, then the interest you get will be rather low. Stashing your money in a savings account is a good way to practice frugality and you’ll have a nice sum of money in case you run into emergencies.

Enter Various Competitions

Most competitions are free to enter and can offer some very big cash prizes, such as Maria Casino’s Discomfort Zone. You simply register to the competition, vote or do whatever the competition asks of you, and then you’re entered in for a chance to win prizes or money. There are hundreds of competitions that you can enter online, in local stores, newspapers or magazines. Just remember to read the fine print and make sure it’s not going to cost you more to win or receive your prize than it does to just buy the item. Many people operate scam competitions so be sure to search for information online before you apply.

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Look for Deals

There are several websites on the internet that list the best bargains that people have found. They’re usually a mix of brick and mortar store sales and online bargains. You can find almost anything for sale on a megastore like Amazon or a marketplace such as eBay. Second-hand or refurbished electronics are a good place to start if you’re looking for a quality piece of equipment that’s backed by manufacturer guarantees and eBay’s buyer policy. Just make sure to read the fine print on eBay listings because some people will add sneak clauses such as “This item is damaged. You are buying a damaged item.” just to try and trick people.

Use Those Coupons

Some people find it embarrassing to walk into a store and hand the cashier coupons for money off—but there’s absolutely nothing embarrassing about being frugal and using “free” money. There are some sites on the internet that will give you coupon codes for cheap items, offers on restaurant bookings and activities such as waxing or even skydiving at discount prices. If you sign up for supermarket store cards, they usually reward your spending by sending you coupon codes. Make the most of these, and you’ll find yourself saving hundreds a year on groceries.

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Investing? It May Be The Key To Unlocking Your Future

December 30th, 2016 Posted in financial education, learning about money, Money Tips
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The future’s a scary place isn’t it. Human beings have an inquisitive nature and need to know the facts; they need the knowledge to ground them. Unfortunately, we can’t predict the future, and that’s a terrifying concept for most.

Especially when money is concerned.

Everyone wants to know that their finances will improve in the future. Everyone wants to know that their hard-earned cash is safe. There’s no straight and clear answer here, but there’s a number of things you can do to take a peek and see what the future holds.

Chief among them, is investing your money. An investment is something you put your cash into in the hope that there will be a profitable return. Simply putting cash into a savings account is an investment. Other investments are bonds, shares, and property. Running a set of investments is called a portfolio.

Unfortunately, investment isn’t risk-free. Banks can fail, and markets can fall through. That has happened and may happen again. It’s not a blind gamble, though; there is an entire archive of information available to you about investing. There’s always going to be risk, though. That’s where the portfolio comes in.

Spreading your investments across different subjects is going to not only increase your chances of success, it’s going to stabilise your income so you don’t suffer when one aspect is under performing.

Firstly, you’re going to need some starting capital to invest. Ideally, this should be around $3,500. This is so you can access the basic Vanguard funds to provide you with more options. You will need to scrimp and save to build your starting fund, and this will be hard work, but the benefits will be worth it.

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Whilst you can put your money into funds, you can also put your money into real, tangible assets. You can purchase gold bullion, which will be stored in a vault for you or you can purchase a property. Either way, they are an investment and options for diversification.

If you would like to find about more about investing in gold take a look at Gold IRA Strategy, Tips, & Rules (The Ultimate Guide) by Sarah Smith

A property investment might be a great option for you. Not only will you hold the deed to a location and a real thing, but it can constantly earn money from you. You can rent this out to commercial or residential tenants and the rent they pay back to you goes to paying off the mortgage on the site. Not only that, but the surplus is your profit. It’s a big responsibility, though, as you’ve got to keep your tenants happy, less they move to a better site and leave you empty handed. Property is huge and diverse and could see you investing into ranches and farms one year before moving over to something like a 1031Gateway property the next.

Investing is a huge world and something that never ends. Although you can’t predict where your cash will end up, it can allow you to peek behind the curtain of your financial future and allow you to have slight control over your future. Do your research and let investing give you a secure future.

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Won The Lottery? You’re Not Out Of The Woods Yet!

December 13th, 2016 Posted in financial education, financial literacy
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You might think that after winning the lottery, you’ll never have to worry about your finances again. However, after a little bit of research, you’ll quickly find that this isn’t always the case! Countless jackpot winners through history have found themselves in situations where they wish they’d never even bought that winning ticket! Though your win may have covered a few immediate financial problems, you’re not out of the woods yet! Here’s how to protect your winnings and make them work for you.

Choose Between a Lump Sum or Annuity

This is one of the first things that a lottery winner will have to decide on, and many different factors go into it. With the sheer amount of money you have coming your way, along with the earnings you’d gain from it, you could quickly find yourself in the highest tax bracket, and staying there for a long time. Talk to a financial advisor, and figure out if you’d stand to make more from investing the lump sum than what the annuity will pay over time. Generally, you’ll find it much easier to make projections with an annuity compared to a lump sum. Though the decision may seem like an obvious one right now, there are a lot of factors you’ll need to chew over before settling.

Get Used to Saying No

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If you choose to go public as the winner of a lottery jackpot, you won’t have long before you’re bombarded with messages from various family members, friends from way back, and various other people all asking for your money. One of the less pleasant aspects to being a lottery winner is having to learn to say “no” here and there. You’ll have plenty of time to consider hand-outs which you genuinely want to go ahead with, so don’t feel pressured by all that attention! There are people out there who won the lottery years ago, and are still getting requests for money. A jackpot is a lot of money, and in order to create a solid financial plan, you need to have a period where you leave your winnings relatively untouched.

Don’t Rush Through Financial Decisions

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One of the most common financial mistakes made by lottery winners is that they make large financial decisions without taking the time to think them through properly. Aside from the choice of how you’re going to receive your winnings, investments, and miscellaneous things like structured settlements, the sudden financial freedom can really go to a lot of people’s heads, and lead to some seriously rash behavior. Despite how you’ve always envisioned a win like this, you don’t have to give massive, extravagant gifts, buy luxury homes, or commit to any risky investments as soon as you have access to your money. You should take it slow, gradually learning what it means to have a massively different economic status, before you start thinking about the steps that are going to make the most sense for you and those you care about.

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