Everyone dreams of the “ultimate financial freedom” and making money while not working. It’s a dream we’ve all had, and well, probably constantly have! Unfortunately, many people online have realized this and take advantage of people, trying to sell them get rich quick programs. Today I will discuss affiliate marketing and how it can be a source of passive income. The truth is that to gain passive income you need to have invested in something! The money must come from somewhere and it can’t just fall out of the sky! There has to be some real value invested somewhere to gain a return.
Examples of passive income:
Dividends from stocks you’ve invested in.
Rental income from a property you own.
Profits from a business you own but don’t run directly.
Profit from renting goods you own.
Royalties from books, music, or any other intellectual property.
Income from ads generated through viewing your videos on YouTube.
Commission earned from promoting affiliate products.
Each one of the above examples is a passive income source! But as I’m sure you realize, none of these are get-rich-quick solutions, nor are they going to pay out income overnight. You have to put the time, money, and effort in to see a return down the line.
One of the ways to build passive income through the internet is by promoting affiliate products. It still requires, time, effort, and money but, requires far less than any of the other passive income strategies.
What is Affiliate Marketing?
Affiliate Marketing is promoting other people’s products in return for a commission. So when a visitor clicks on a banner promoting a product and purchases it from the vendor, you earn a commision.
Instead of selling the product directly to customers, you are acting as a gateway to the vendors products.
For example, one of the products I use myself is Six Figure Mentors. It is the program I have been using to help me build my affiliate marketing business. This program offers me many resources that I find incredibly useful and has saved me a stack of time.
It offers me educational resources for learning how to build an affiliate marketing business. It gives me a blueprint to help me design my business from zero to profitable! It also offers me a mentorship program to encourage and guide me through the process.
So because I am using this product and it has helped me start my online business, I am able to share with you what this program is about and that I have found it indispensable.
The question is:
Are you ready to commit to building a successful online business that can earn you money from anywhere, at any time?
Are you ready to start building a business on the side or even full-time?
Where do you start?
If your answer is yes, and you want to change your financial path, make a start and sign up for a business program that can give you the tools and resources to start building an opportunity to earn money online!
In this modern world, it’s easy for your mind to become overwhelmed. There are a ton of things we must do each day. Trying to keep all these thoughts at the forefront of the brain can be tricky. Add to this, thoughts about past events, and where you want to be in the future, and you have a melting pot inside you. On the internet, there are tons of strategies on how to deal with this, but I am going to focus on the ones that I apply daily to maintain calm. How do you declutter your brain? Let’s first see what the signs are that you might have this problem. And we all suffer from this at times in our life!
Signs of a cluttered brain
1 – Loss of focus
Focus is the ability to look at a task and be present at the moment to get it done. Sometimes for long periods. But if you are easily distracted by other things that need doing, and you can’t seem to prioritise things, you end up doing a few half jobs. This is because your concentration levels are low.
2- Decision Making is difficult
When you can’t decide whether to make potatoes or rice for dinner could be a sign of a cluttered brain. When you have a thousand thoughts passing through your mind in a second, can cause an inability to make simple choices.
3 – Unable to let go
Often a cluttered mind shows up as a cluttered workspace or home. In extreme cases, this could become hoarding. From the above inability to make simple decisions, you end up holding onto everything. Because you can’t prioritise, your workspace will have every paper open on it. Your PC will have hundreds of windows open and thousands of emails you’ll never look at again waiting to be opened.
4 – Creativity/Abstract thinking wanes
A lot of work these days is conceptual and requires you to think and compile solutions in the brain. If you know you are good at this but not able to do it anymore, it can mean your brain is fatigued. Perhaps you no longer have the passion to do your creative hobbies? Perhaps they become too hard and less enjoyable?
5 – “I’m Tired”
“I’m tired” are words of a tired brain. Especially if they are spoken early in the morning.
Tips on: How to Declutter your brain and think better
These are the techniques and tools that I have picked up over the years. When I become aware of the above symptoms, I remember to apply this.
1 – Write it down
Having so many thoughts in my mind can really make me anxious. By writing them down seems to move them on. Once they are on the paper, I can see them for what they are. Probably just a set of tasks that I want to happen. To try and stay on top of this, I manage upfront in the morning by writing and prioritising. By doing this, I know where to start. At the end of the day, I reflect on the list and see if I made it happen. Did something else come up? By tracking what I want to do and what happened, also helps me to understand the real priorities of my life.
2 – Stop Multi-tasking
My job managing a software development team, and managing multiple clients means a lot of tasks coming my way. Sometimes I catch myself doing one thing, see another email, and starting on the next task before I have finished the first one. If I allow this to continue, I know that nothing will get done and I will be anxious about the work not done. In these moments I stop, breathe, and relax for about 1 minute.
What is the most important task? Who can I delegate a task to? Who can help me? Sit back and prioritise.
3 – Breath or meditate
At least once a day, for 5 – 10 minutes, I enjoy the feeling of having to do absolutely nothing. I do this each morning to find peace and gratitude for what I have. It helps to clear the mind of all my clutter. I prefer guided meditation. My favourite expert being Andy Puddicombe from “Headspace”. There is even a “Headspace” series on Netflix that will introduce you to the calm.
How do I declutter my brain meditate
4 – Build a Routine
Having a routine can keep you on track. Knowing that this is work time and this is playtime will direct your mind from one activity to the next. You may not follow it perfectly but having it there can bring you back in line. Make sure you include exercise and rest in your routine. Make sure you include family time in there too. Although you must be careful of this as “routine’ing” your family could make them feel like a task. And if you live with a free spirit partner as I do, sometimes you should concede the routine to maintain the love! Check out this post on my Daily Mode of Operation (DMO)
5 – Share Your Thoughts
During a busy day, we can forget to talk to people. There is often a great support structure just waiting for you to connect to. When I feel overwhelmed, I do two things. The first is to talk to my team. We need to be on the same page anyway. Just by talking new ideas are formed, and you might be able to solve issues faster. By doing this you automatically declutter your brain. From an emotional standpoint, I talk to my girlfriend. She is always there to listen and advise. Even if there is no conclusion to an issue, somehow the day feels less cluttered. Sometimes it’s just about letting it go.
6 – Learn to say “No”
As humans, we like to help others. I believe this anyway. But you cannot do everything, and you need to have boundaries. Sometimes there is something fun to do. I too find it difficult to say “No”. But to grow and get the clutter out of my brain, I need to say “No”
Conclusion
It’s normal to have clutter in the brain from time to time but knowing how to move past it is important. Once you start to put in place your ways (there are many more ways than the ones I have mentioned above), you can live a freer life. Things will get done and you will move forward.
What is a daily method of operation, and why do it?
Your daily method of operation is your daily plan to help you succeed in your business. It outlines the tasks you need to do each day to succeed. Whether you like them or not!
Benjamin Franklin once said:
If you fail to plan, you are planning to fail.
Planning ranges from long term to short term. This blog focuses on your daily steps, especially if you are starting and have no money.
Daily method of operation in affiliate marketing.
In any business, no matter how good you are or how good the product is, you need exposure to make money. The adage of time vs money comes in to play here. If you have money, you can pay for marketing and advertising. But if you do not, you will need to spend daily time on marketing. If you have ever been in sales or marketing, you know that consistency is the key to building steady business over time. Consistency at the right activities that is!
For my affiliate marketing business, there are 3 ways to gain exposure:
Paid for traffic (Social media advertising)
Organic growth (SEO, takes time to build income)
Online Networking (make money now)
All need DMO.
I play in the last 2 categories because I do not want to spend money on marketing and advertising yet. Organic growth through blogging will drive traffic to my site over time. But if I want to make money now, I need to talk to people! All business is conversation anyway.
Why follow a daily method of operation?
Following a daily method of operation forces you to track what you are doing daily. If the business is not coming in, you can look back at what you have been doing. You will notice what is working and what is not. Tweak the plan and keep at it. Once you are in a groove, you will start to see the benefit. But always remember to start; the DMO does NOT have to be perfect from day 1.
If you feel you struggle to get started, read this blog on Perfection Paralysis.
What things do I track in my Daily Method Of Operation (Example)
By way of example, I am going to share my current daily method of operation. Through previous work done, I know I will find my average customer on Facebook. So, I focus my time here.
What things do I do to bring awareness to me and my product?
Facebook Story
Here, I share a photo from my day, or an interesting quote or comment. Like most of the items below, it shows friends my human side. It helps to grow trust within my friend circles.
Facebook Friends Post and Story Comments
In this item, I read my friend’s posts, and if I can I comment. If I can’t, I’ll share an emoji. This helps to build relationships with my current set of friends.
Facebook Friends Birthdays
A great way to catch up with old friends and colleagues is to wish them a Happy Birthday on Facebook. Sometimes a voice message goes a long way. I do it the day after because everyone does it on that day. It’s a good way to start a conversation. And all business is a conversation.
Facebook Group participation
Join new Facebook groups in areas/hobbies you enjoy. Participate and add value. For example, I am an Aston Villa Football fan. I am on groups and chat with other fans about the game on the weekend. These can lead to friendships and even business relationships if done in the right way.
Facebook Gratitude Post
No one likes a grinch…sure, we all have bad days, don’t let everyone know about it on Facebook. Rather do a post about the thing that is good in your life. This will attract a positive reaction from your friends (market)
Facebook Participation Post
At the end of the day, I like to pose a question. It can be about anything! It’s to get comments and see who’s active and wanting to talk.
Facebook, Add New Connections
If you do not add new people to your friends, eventually you’ll run out of people to talk to. So, build new relationships each day. Add people you have things in common with. (Even if it’s simply friends in common)
Facebook, Chat to Friends
Start are least 10 conversations a day. I use the LORD approach to assist me in conversation. The formula allows me to get conversations started. Chat about Location, Occupation, Recreation, and Dreams. Listen to them. If you see an opportunity, let them know what your business does.
Phone your new prospects
From my conversations, I might share my business with others. I get emails and phone numbers. Do the hard things no one else does. Connect via voice! Ask them if they have questions, and simply listen to them.
Follow-ups
Business hardly ever happens in one sitting. It can take up to 5 exposures for a prospect to feel comfortable. Only when you have trust and rapport will the business follow. Have a system to remember who to follow up with, and when.
Blog
Finally, to build the business to a point where I do less of the one-on-one marketing. I blog 2-3 times a week to generate traffic to my site. This part done over time consistently will start to build a steady stream of traffic to my business.
My Daily method of operation template
This is my template I follow each day. It is a simple excel sheet that I print out each day and track my progress. If the money is not coming in, I look at what I have been doing and tweak.
Conclusion
Although I have talked about how I do this for my business, it can be applied to anything.
I have touched on a lot in the blog. There are probably another 10 articles I can write just from this one. Let me know in the comment below what you want to hear more of.
In the meantime, start with anything consistently, and build on it.
Join my Facebook Group here to stay up to date with Blogs and more: Launch Digital Freedom
A lot of people either do not earn enough money to live or are not fulfilled enough by what they do. Or both! In either case, they have two options. Accept it, and reduce living expenses, or utilise their spare time to escape the “trap”. The latter can be considered a side hustle. We are here to take a dive into what it is all about and how to do a side hustle success.
Side Hustle Meaning?
There are two kinds of work outside your job. They can be classified as moonlighting and side hustle. Moonlighting is usually working for another employer. A side hustle is typically something you build on your own or a piece of freelance work. Often, it’s a start-up.
Both can be tricky to navigate with your current employment. The way to deal with it is to see all your pieces of work as part of your Business. And remember that the number 1 client is the one who pays the most. In the beginning, it will be your full-time work. Never use their time or resources to work on your side hustle, and always prioritise their work.
Is a Side Hustle Worth It?
Everyone has different circumstances. It’s best to put this into a pros and cons list.
Chalkboard drawing – Measure of Pros and Cons
PROS
Benefit Your Day job Believe it or not, it can help you with your current job. If you know you have something else to do, you will find ways to get your day job done more efficiently. This has a knock-on for you to spend your free time focused only on your side hustle. Also, the soft skills you learn in your side hustle can complement your day job. Perhaps leadership skills learned can be implemented at work and move you up the ranks!
Money You make more money. This can be used to increase your lifestyle and savings. Who couldn’t use a little extra anyway?
Passion Often our jobs are a means to pay the bills. We make choices when young and naïve and feel we get stuck in a none rewarding job. If you choose the right niche inline with your passion you can feel whole again. You can feel like you make a difference.
CONS
Burnout No one can sustain a 16 hour a day lifestyle for weeks or months on end. The occasional long day is not a problem. Make sure you find time for rest and relaxation.
Time You’ll have less time with friends and family. If you are going to start a side hustle, have a crucial conversation about it. Make sure your family knows your schedule upfront and what to expect of you.
Side Hustle Success Secrets
Secret 1:
Spend no money: What I mean by this is, try to find a use case first. Even speak to people who are already doing successfully. Make sure that what you are about to do really will work and get you extra money. There are lots of scams out there. I have been burned myself.
Secret 2:
Just Start: It can be slow and tedious at first. Anything new takes time to learn. You are going to want to give up. Breath and just do one thing at a time. Come up with a Daily Method Of Operation.
Secret 3:
Ask For Help: Sometimes it’s hard to ask because you feel like you should know it already. It’s simply not true. How can you know everything at the beginning? Ask for HELP. And we forget humans want to help! It’s hard-wired into us. Check out this post on how to overcome Perfection Paralysis.
Secret 4:
Limit time: You will be more creative as well as save time and money!
Parkinson’s Law dictates that a task will swell in (perceived) importance and complexity in relation to the time allotted for its completion. It is the magic of the imminent deadline. If I give you 24 hours to complete a project, the time pressure forces you to focus on execution, and you have no choice but to do only the essentials.
Secret 5:
Have fun: Even if you are just doing this for money enjoy it. It’s a journey, so make time to reflect on your successes and make time for family and friends.
Conclusion
There are countless ideas out there to start making money. My current side hustle is this blog, building an online business in marketing. 2 great resources that helped me get started in the online world.
1) Noah Kagan (Facebook employee no 30 and Founder of AppSumo) course:
Monthly 1k Course The revolutionary online course that turns ideas into businesses and businesses into goldmines.
So, to find out what passive income is, it’s best to start with the opposite. Active Income! Yeah, sounds like hard work. And essentially it can be. The hours you put in allow you to earn money. Depending on the type of work you do, you typically get paid a certain amount of money. Hours for Dollars. The top athletes in the world work hours for dollars, but they can earn ridiculous amounts of money. Lionel Messi earns around $126 Million Dollars a year. But the average person with a good job will earn around $25 000 to $100 000 per year.
Typically, this type of work means you hit an earning ceiling. You can only work so many hours a week, so you can only earn so much.
Examples of Active Income
Salary: Work from 8 – 5 each weekday, get some holiday. You are trading your skills for money.
Hourly Wage: It’s often not set hours. You work when you can, or when needed. The benefits here are you can earn overtime and work in shifts.
Commission: These are typically sales jobs. Often you can earn a small basic salary, but the true benefit here is that the better you perform (more sales), the more you make.
Tips: These jobs offer the ability to make tips from assisting others. Delivery’s, waiting tables, and car guards fall into this category.
Is income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income.
Wikipedia
Passive income means that you are receiving a consistent amount of money for doing nothing! Sounds good right? But life is never that simple, there simply is no such thing as a passive income that did not start without action! And even a so-called passive income will require your time, some of the time. It may take years to truly start to be passive.
Examples of Passive Income
Dividends from Investments: Typically, a bought passive income. You can accumulate shares over a long period of time or a one-time lump sum. If you can invest 5 Million Dollars over time, you could get around 5% per annum and make 25k per year.
Affiliate Income: This is online marketing. Typically, you will build an email list through online adverts or SEO and then provide value and offers to the list. This can be easily scaled once you have a recipe that works.
Rental Income: If you have the means or the money, you can acquire a property and rent it out to a tenant. It often requires money upfront, but there are some tricks of the trade that can give you no money down deals.
Courses: The nice thing about a course is you write it once and sell it many times. If you pick the right topic for your market, it can sell for years beyond the work you do up-front. This can also be done by getting the services of a facilitator or you can put it online of course!
Is Passive Income better than ordinary income?
Well, the short answer is YES! Who does not want money coming in while you are doing nothing? But just remember that you always need either time or money to build a passive income. They also do not just grow overnight.
Freedom through Passive Income
There are 3 types of freedom.
Time freedom: Being able to decide each day exactly what you want to do this second, minute, or hour. If you decide you want to go to a movie at 11:00 am on Monday morning, you do it.
Location freedom: Being able to decide where you want to be today. If you decide you need to visit a friend in Tokyo, you get on a plane and go.
Financial freedom: Being able to pay for anything you desire and not think about the cost. Look at the menu and decide you want the lobster (SQ)
To be honest, financial freedom will probably get you all the freedoms you want. To be financially free, you only really need to earn $1 more than your expenses in passive income.
How do we do this?
A coach of mine once told me to throw a pencil on the ground. After doing so, she said, “Oh no, you missed”. When I said, “But you didn’t tell me where to aim” she proceeded to tell me “That’s the point! If you don’t know the target, you are unlikely to reach your goals”.
So, pick your number; how much money do you need each month in passive income to live the life you want? When do you want to be earning that?
Let us say the number is $15k per month in 5 years from now. There is your Target, now all it takes is planning.
Which passive income model suits you best? Which ones can you see yourself doing? Then find someone who has already done it. Follow them and immerse yourself in the work. Learn everything about it, and just do it.
It may take time in the beginning, but in the end, it will be worth it.
Why would you want to manage two jobs in the first place? Having a steady income is peace of mind for most people. It gives you the opportunity to live your life to the fullest. You don’t have to worry about financial insecurity or an excessive amount of expenses. Of course, the cost-of-living increases once you have a small family of your own.
You may search for alternative ways to gain an extra source of income. With the extra expenses that come along with having children, that one source of income may not be enough. It is possible to secure a second source of income with the cost of extra effort.
Why Should I Search for a Second Job?
Searching for a second job can seem ridiculous for individuals with heavy workloads! There are many benefits to doing so.
The first thing you should do before job searching is analysing your current work schedule. Identify any available time slots for a second job. Keep in mind that most jobs do not allow 30-minutes or 1-hour shifts. So, ensure that you have at least a few hours available for your new job. Being realistic about your working hours is important because extra work can lead to stress and strain in your personal life.
After you have created a schedule for a second job, reach out to your connections. They know you best. Place your current job details and relevant experience on your resume when you begin to apply to job opportunities. If you have a busy schedule with your current job, consider searching for freelance or contract work. These jobs will work around your schedule and provide a source of secondary income.
Benefits of Having Two Jobs
Having two jobs can be stressful at first but will become rewarding. From a new source of income to new networking opportunities and even a chance of promotion. There are plenty of benefits to working two jobs. Here are a few reasons why you should do so:
1. Second Stream of Income
When expenses and bills feel overwhelming, you may wish for an extra source of income. Throughout our lives, there are many expenses that we incur. These include college debt, car loan debt, mortgage, rent, bills, and recreational activities. Wealth is the basis of society, and we need enough accumulation of money to enjoy life.
Having a second job will provide a steady stream of secondary income. It can rid you of debt or pay for new financial stressors, such as your child’s college tuition. When adding this income to your budget, you may even find that you now have enough funds to plan a new vacation. Or even spare money to buy that car you always wanted.
2. Income Security
The job market is currently unstable but improving by the day. You may worry about the state of your current employment. From budget cuts to the worldwide crisis, there are many factors that can affect whether you will stay employed with your job in the future. If you ever lose your job or resign for any reason, a second job will ensure that you have an alternative source of income.
While you are working a second job, you will have time to search for a new job to replenish lost income. In short, having a second job protects against unpredictable events. It grants income security if something happens.
By working a second job, you will be entering an unfamiliar environment with a blank slate. Always use a good work ethic. This will allow you to connect with other professionals and potential employers. Networking is always great for ensuring that you can gain another job should you lose this one. In your new workplace, there may also be opportunities to grow.
4. Discovering a New Passion
Having a second job in a new field may reveal certain traits about yourself that you had not known. Maybe you work best in a creative environment as opposed to an office? Many people enter different fields of work before settling on the right job for them. Finding the right job is a sort of trial-and-error process. Try and align with your passions. You may find that your second job does not feel like a job at all.
5. Skill Enhancement
Different jobs need employees to have specific skills for employment. For instance, a tech expert may need computer skills. A therapist may need interpersonal skills. By entering a new job, you will be able to gain and hone new skills. This will not only enhance your resume but make you stand out to future employers.
Maintaining a Balance While you Manage Two Jobs
Manage the work and family balance.
Many employees find that it is already difficult to put all their efforts into one job. To balance two jobs, consider making a planner of important tasks and dates. By adhering to this planner, you will gain better control of your life and manage your time better.
Be sure to allow time in your daily tasks to spend with your family and for yourself. Self-care is vital in ensuring that you do not become overwhelmed. Self-care can include simply taking a long shower or even treating yourself to a fancy dinner.
It is also important to schedule days off from both jobs in advance. While this may seem unorthodox, it helps manage your employer’s expectations. You also have time off to look forward to. Time management and planning are key to managing your time between two jobs.
With most of your time being shared between two jobs, your family may feel as though you are not making time for them. While this feeling is rational, it is important to speak with your family about your new commitments. Provide them with a rundown of the details of your alternative employment and what is expected of you.
Gaining your family’s approval before entering a new job is vital. Even though it is an extra source of income, you also have responsibilities towards them. If you don’t have time during the week, plan weekend time with family. This can include going to the park or eating at a restaurant. Of course, younger children may not completely understand why you need to work two jobs. Be sure to let your family know that you will be there for them even while you are working.
Things That Are Easy to Forget While Working Two Jobs
While working two jobs and dealing with added responsibilities, it can be easy to neglect certain tasks. For instance, tasks, such as exercising may go out the window. Like with your family, you should make time for these activities during your free time. They are vital to maintaining optimal mental and physical health.
1. Getting Enough Rest
With back-to-back work hours, you may not get enough sleep each night. Planning your weekly schedules beforehand can counteract this. By dedicating time, work-related tasks have to finish. If you finish your tasks before their deadlines, use the time to catch up on sleep or get some well-deserved rest.
2. Exercising
The importance of a job differs per individual. Most people can agree that family is the utmost priority. When an important occasion arises, such as a wedding, take time off. You must enjoy the journey!
Gain a few hours of exercise each week to maintain energy. Depending on your jobs, you may not have the opportunity to do so. Pick routines that are adaptive. Running can happen between tasks. Yoga can be practiced at any given time. You can even turn your exercise into a family activity and spend some time with them. If you are into training, try and do it from home.
I got a great hybrid gym plan for this cool site HybridAthlete.
3. Eating Healthy
While engaging in work-related tasks, you may feel tempted eat junk food. It’s easy to grab a packet of chips or an energy drink. While such foods may provide a temporary boost of energy, they are bad for our health. By eating three meals a day, you will have enough energy to engage in both jobs. But these meals should be well-balanced and provide an excellent source of nutrients.
4. Important Life Events
The importance of a job differs per individual. Most people can agree that family is the utmost priority. When an important occasion arises, such as a wedding, take time off. You must enjoy the journey!
5. Budgeting
With an alternative source of income, you may be tempted to spend your money as it is received. Unfortunately, doing so can cause more harm than good. Align your savings goals with your combined income. Determine whether you have enough money to make unneeded purchases. Try not to spend more than you have. Good budgeting will prevent this and allow you to build wealth over time.
Outlook
Now that you have many reasons why you should search for a second job, the decision lies with you. Do you need a secondary source of income? Do you have enough time to commit to a new workload? Are you unhappy in your current employment?
If you answered yes to any of these questions, it may be time to begin your search for a second job. Be sure to reach out to other professionals or past employers who can provide you with a lead on where to apply. Remember, working two jobs may be stressful, but it has plenty of benefits.
Many people tend to ask themselves what their retirement would be like without enough savings when it comes to retirement. It can be very tough as the consequences of such failure come in plenty. Even though the outcomes may not always be disastrous, they are often saddening.
In some cases, not saving adequately for retirement can kill older adults’ dreams of still working. You can think about an individual who desired to travel across the world in their retirement but instead ended up sitting at home and watch their pennies. While many people like to save their earnings, they may not have enough for their retirement.
If you are in such a difficult situation, know that you are not alone. This article comes in handy for individuals who are about to retire. It explores different tips and aspects that can help you have enough money saved for retirement.
Signs you don’t have enough money for retirement
It takes a lot of consideration before deciding to retire. And the leading factor is the budget one has, including a carefully planned spending and investment plan for your future life. Besides, ensure you have controlled debts and a list of the period you will be spending your savings.
That said, we have identified the following signs that will tell you that you don’t have enough money for retirement, thus not ready for it.
1. You are having problems settling your current bills, such as a mortgage, rent, and many others. Retiring in such circumstances will only make things a little bit harder. Therefore, you need to re-evaluate your abilities to cover your daily expenses.
2. Plenty of debt. Becoming a retiree with numerous unsettled debts will badly strain your savings. To avoid such problems, you need to continue working until you become debt-free for a comfortable retirement period.
3. You don’t have a well-outlined financial plan, either monthly or long-term. For you to retire with peace of mind, you must have a well-thought-out plan. This is what many people fail to do, and their retirement period turns into a nightmare.
4. Failure to decide what to do with your retirement time. Usually, retirees who don’t have enough money to travel and enjoy their time become so lonely. Eventually, they end up depressed, making their life miserable.
5. Elderly parents or children still depend on you. Many people who desire to retire are always caring for either their children or elderly parents. Realistically, you can’t ignore their demands by retiring, yet you don’t have enough savings.
Not enough money for Retirement
What happens if you don’t have enough money for retirement?
Below are the consequences one is likely to face if they don’t have enough money for retirement:
1. You may continue working until you die.
2. Your family and beloved ones can become emotionally and financially stressed.
3. It becomes hard to support your kids and elderly parents at home.
4. Trade your valuables at home for other items and tiny apartments
What is the minimum amount of money to retire?
Different retirement experts have different perceptions about how much one should save for their retirement. Most of them suggest that you should have savings of about $ 1 million, up to 90% of the yearly pre-retirement income, and twelve times your pre-retirement income. But the big question is, what is the most suitable amount for you? And how can you tell if you are on the right side?
There are numerous variables one needs to consider to find their minimum amount of money to save for retirement. For instance, one may check-out for their current age and the desired retirement age or even health. The best way is to have a proper planning scheme showing amount of money you will spend on food, clothing, transportation, entertainment, health, and many others when you retire. By doing so, you can have a rough idea of how much approximately you can save.
What happens if you run out of money in retirement?
Worrying about running out of money during retirement is a significant concern for most people closer to retiring. Indeed there is a genuine reason to get concerned about. When you run out of money while in retirement, it doesn’t always mean you are cashless. It can imply that you have spent all of your retirement money savings but left with your home equity and other income sources you may be having.
And this may be a pension or social security if you had one. In most cases, individuals who use up all their retirement savings continue to enjoy and survive on Social Security earnings. Besides that, you may find others working part-time jobs. If you don’t have any backup money to sustain you, try out these options:
1. Start reducing expenses as early as possible. 2. Increase the income level by doing part-time jobs 3. Invest your little amount of money in giving rise to more money
How can I make sure I have enough money for retirement?
Planning for retirement can be a common topic in the air that leads to anxiety among many people. This is even way too far from their golden years of retirement. It is important to save enough and do the necessary things to get sufficient money for your retirement if you are working. You can adopt the following tips to ensure you don’t find financial woes in the future.
• Formulate a goal: Here, decide what your needs will be and how much you will spend. This will give you an overall figure that you can work hard to achieve.
• Invest your money in bonds, mutual funds, and stocks to reduce risk and get a safe return on investments.
• Reduce and avoid aimless spending. Be sure to come up with handy budgeting methods that may positively impact your finances.
• Get a part-time job if you have reduced responsibilities to get an extra income. Besides that, you can start running a small business to receive additional funding. The good thing with this technique is that one remains active and motivated to achieve better results. (If you want to get started on an online business now, check out this post and get started)
It can be saddening when its time to retire and you do not have enough money. This article brings out clearly the impacts of retiring while you don’t have enough money and also helps you prepare for your retire to avoid being caught up in such situations.
Investing your money is a critical skill we all need to learn. The quicker the better. Money must be invested to build your wealth. If your money sits in your wallet, it has no potential to earn any rate of return. When you do not invest, you will miss several chances to increase your financial position. There is of course a chance you can lose your money from the investment, but that is why you must learn some strategies. You will fail from time to time, but that is how we learn. There are traditional and alternative investment options and its good to know about them.
Here are the reasons you should invest your money.
Growth – By investing your money in vehicles that give you a return, your money will start to compound over time.
Retirement – Everyone wants the option to not have to work one day. To not rely on family support to get you through the month. Putting away money throughout your life is necessary to gain this freedom. The better your choices today, the quicker you will reach your goal. What if you don’t have enough when you retire?
Start a business – A business can be an expensive thing to start. If you need to go into it full time you will need to support yourself while you are earning no money. Savings can come in handy down the line and make the decision to so your passion full time easier. There are some businesses that don’t cost a lot to start!
Traditional Investment Vehicles
Financial symbols of stock market
Before we get into what alternative investment strategies are, let us see what we mean by traditional. The well-known ones are bonds, cash, real estate, and shares.
Bonds
As an investor in bonds, you are typically buying debt issued by companies or governments. You get an annual return until the debt is paid off. Due to the fluctuation of interest rates, the bonds become more or less valuable over time. They tend to be lower risk, so they are a good choice when nearing retirement age.
Cash
This money is usually put into short-term, low-risk investment vehicles like deposit accounts, money market accounts and high yield bank accounts. It’s always a good idea to have some of your investments in cash when an emergency arises.
Real Estate
Here, the investor buys property to make money. There are several strategies here including buy to let, flipping (When you buy a cheap run-down home, fix it up and sell at a higher price) and REITs. These are normally long-term investments and can be highly leveraged.
Shares
Companies often sell shares to the public to raise capital. This capital is used by the company to invest in and grow the company further. When you buy these shares, you are a shareholder and part-owner of the company. Hopefully, over time the value of the shares grows and provide you with dividends.
Alternative Investment Options
Financial growth and business success with the best investment choices from professional financial advice for picking the right equity stocks to invest in for r
These are good investment vehicles, but its only part of the picture. Here are some alternative ways to invest your money.
Collectables
These include paintings, stamps, wine, cars and much, much more. If you have a passion in an area and learn the value of your passion you have a good chance of making money through appreciation over time.
Hedge funds
These tend to trade relatively liquid assets. There are many strategies, but the aim to provide a higher rate of return on investment. The skill required include long-short equity, market neutral, volatility arbitrage and quantitate strategies.
Private Equity
Instead of becoming a public company, some private companies want additional investment. There are a few kinds. Venture capital, growth capital and Buyouts.
Private Debt
These are investments not funded by the banks or traded on the open market. Private debt is leveraged during the growth phases of companies. The extra capital can be used to push to a new level.
Cryptocurrency (Bitcoin)
This is a modern form of currency that can also be a store of value. Bitcoin was the first and still the most invested in. What makes them appealing is a decentralised model that is not controlled by an entity. The blockchain is spread across many nodes on the network to manage transactions.
money on the table
Gold/Silver
Gold and Silver will forever be the original money. It still has many uses today and it maintains its values over time. Many people including me like to invest in coins and bars and keep them locked in storage. It can be seen as a type of hedge or insurance against the markets.
In Closing
As you can see from this article there are many types of investments. Plenty more that have not even been mentioned here. Everyone is unique and has their own skills and risk profile. So, take your time to always learn about new types of investments. Make your own choices. You will inevitably make mistakes, but the more you learn and the more you try, the better results you will get.
A great source of knowledge on investing and terms is Investopedia.com. Visit their site to find out more.
I am not a financial planner or advisor. This blog is not advice on how you should invest your money. Consult your financial advisor or accountant before making any financial decisions.
Every human being spends money on daily basis. The big question has always remained, how many know how to manage money? The skill of money management or the lack of it is financial literacy. Financial literacy gauges how well one can manage one’s money. Many consumers cannot answer the simple question, “What is basic financial literacy?”
Financial literacy is the ability to understand and effectively use various financial skills. Skills such as investing, budgeting, and personal finance management.
It has also been defined as the ability to understand how money works. This simple definition encompasses broad ramifications. These include, how well does a consumer resist the temptation of spending money? Has the consumer invested in themselves, family, or charity? Someone who lacks these skills is financially illiterate.
Patience in spending shows impressive financial literacy. They are frugal, always prepared, and keep track of their spending.
Evidence accumulated recently suggests that financial literacy is one of the essential determinants of any human being’s economic well-being. One will only make effective financial choices if their decisions are financially informed. A significant part of wealth inequality experienced during retirement can be explained by our differences in financial knowledge that we gain at our early stages of life.
Recently, financial services and products have had a widespread increase throughout society. Early generations purchased goods and services with cash. In recent decades, other methods of payment, such as credit products, have gained massive popularity.
Basic Financial Literacy
Mortgages
Credit cards
Student loans
Health insurance
Home equity lines
Credit insurance programs
Buying clubs
Self-directed investment accounts
The recent growth in usage of these credit products has made it imperative for consumers to understand how to use them.
You can categorize various skills under the umbrella of financial literacy. There are, however, popular and basic-financial literacy skills that have to fall under this category. They Include:
Household and personal budgeting
Learning how to manage and pay debts off
The ability to evaluate tradeoffs between different investment and credit products
These skills require a working knowledge of at least key financial concepts such as compound interest and the time value of money.
Why Do I Need Basic Financial Literacy?
Did you know that an estimated sixty-six percent of Americans today are financially illiterate?
This is how common financial illiteracy has ravaged society – Financial Industry Regulatory Authority (FINRA) research
Finance, in modern society, is essential. Lack of financial literacy is very damaging, especially to an individual’s long-term success.
A financially literate person is less vulnerable to financial fraud than their counterparts. They possess a strong financial foundation. This aids them in supporting various essential goals in life. These include retirement, education, responsible debt usage, and running of a business enterprise.
It appears that decision-making is gaining more buoyancy among consumers when it comes to finances. Five converging trends have demonstrated the importance of making informed and thoughtful financial decisions:
Gold and Silver
1 – Consumers are tasked with shouldering an increased number of financial decisions.
Recently pensions are more have become rare, especially to new employees. They instead now participate in 401(k) programs where they decide how much to contribute and what to invest in.
2 – Investment and savings options are more complex
The dynamic financial landscape has introduced more financial participants and factors that influence it. Combining all these factors can lead to contrasting views. These create and implement the following financial roadmap.
3 – Lack of government aid
Past generations relied on Social Security as a major source of retirement income. It is no longer enough, and not all generations will receive it. It acts as more of a safety net for basic survival. This creates a need for more effective, efficient, and responsible financial decisions.
4 – Overwhelming choices of finance
Consumers have a wide array of financial sources to choose from.
Banks
mortgage companies
insurance firms
credit card companies
credit unions
financial planners
and other financial service companies are tough competition for assets.
This poses a huge confusion to the consumer with whom the final financial decision lies.
Financial illiteracy is a problem faced by developing countries as well as in developed countries. One must grasp financial abilities and principles to succeed in the game. Consumers from both worlds lack strong knowledge of the financial basics. Negotiating and managing the financial landscape is key to avoiding financial pitfalls.
The level of financial literacy varies with levels of income and education. Consumers on the higher income and education notch are ignorant of financial issues as those on the lower gap. The latter exhibiting greater economic literacy.
A financially illiterate person is faced with the likelihood of falling to several pitfalls. They are likely to accumulate unsustainable debt burdens. This is owing to a lack of long-term preparation or poor spending decisions. These pitfalls have been associated with bankruptcy, poor credits and housing foreclosures. Financial fraud victims are likely to be financial illiterates.
Basic Financial Literacy
Strategies to Improve your Basic Financial Literacy
Developing strong financial literacy is a measure of improving your finances. It involves learning and practising several financial skills. These include:
Money management
Budgeting
Debt Repayment
Investment
Credit options available in the market.
Here are strategies to consider to improve basic-financial literacy skills
1 – Budgeting
Plan your expenses upfront. Track how you performed against your expectations. Adjust according to your findings. You can do this on excel or paper. You just need to do it!
2 – Saving
Financial planners prefer terming it as paying yourself first. Accumulating savings involves a reverse budgeting strategy. Set your saving goals and decide the amount of money you want to save. Do it monthly and separate it from the amount required for your monthly expenses.
3 – Bill payment management
Consumers should always set a priority when it comes to paying their monthly bills. They should take advantage of automatic debits available from checking accounts and bill pay apps. You can also sign up for email, phone, or mail payment reminders.
4 – Get your credit report
Consumers are advised to acquire their annual credit reports. They can then review them and dispute any errors by discussing inaccuracies with the credit bureau.
5 – Confirm your credit score
Consumers with good credit scores obtain loans at the best interest rates and credit cards. You must monitor your credit score beware of financial decisions that can raise or lower your credit score.
6 – Debt management
Make use of your budget to remain on top of debt by decreasing your expenditure and increasing repayment. You can also consider taking advantage of a debt reduction plan.
7 – Save and invest in your future
You can take advantage of the 401(k)-retirement plan if your employer offers it. Consider investing in a diverse portfolio of stocks, commodities, or fixed incomes. Seek financial advice to determine how much money you require for a comfortable retirement. Develop the necessary strategies to reach your goal.
Budget is a smart way of managing available finance. Coming up with one allows you to shop for specific items that are essential and utilizable at that period. Sticking to the planed list when purchasing goods and services has proved to be a challenging exercise, and many give up and spend money aimlessly. Impulse buying remains the primary cause for failure to stick on a budget. Emergencies and forgotten items are two more reasons people spend funds in ways they had not planned. We’ll show you how to stick to a budget.
Spending your finances without a management plan can seem justifiable, but it destroys your financial status, throws you off balance, and you lose control. Unbudgeted spending can be disastrous as it requires you to go back for your savings. When you have depleted your savings, the left option to finance your spending is loans. The pile of debts creates financial stress, and before you know it, you become financially insecure.
8 Successful Ways on How to Stick to a Budget
1. Do not Spend more than you Have
Every fraction of your income is allocated to its purpose on a budget. The amount of money assigned to complete a particular activity should be enough to support it. When the funds are inadequate, you go back to your budget and re-evaluate if you aimed too high or minimize the number and some commodities forgone to keep the account in line. Resist the urge to source finances from external sources to boost your funds. Do not compromise on your savings to finance other personal projects unless that is the planned intention for saving. If what you have at your disposal is more than enough, you can always add to your saving in case you urgently in the future.
2. Shop Online
Shopping cart isolated on the computer keyboard. Online shopping concept
Users who buy items online have little or no interaction with marketers online. When navigating with a cart, promoters have no interruption who persuade you to carry more items compared to local stores. A customer does not have a chance to try different things, limiting their option in selected commodities. Physical absence is a significant factor in eliminating impulse buying. Online items are also offered at low, relatively competitive prices, and commodities are high quality. Free shipping services provided by online sellers will help you save on your time, fuel, and energy. If the shopping exceeds your budget, you do not have to initiate a purchase. You have an option of temporarily abandoning your cart and cone save it later when your finances are in order and finalize the purchase.
3. Lower your Credit Limit
Limit the maximum amount of money that your financial institution allows you to use before maxing out. Consumers who have fewer credit card funds will be strict on their budget to avoid running out of credit. You cannot spend beyond your limit. Eventually, this will amount to less debt when paying back for the credit service to your financier. Exceeding the limit set would provide relief but impact heavily on your credit scores and the vastness of the debt. Find out more about Basic Financial Literacy, it will help you to make the right choices.
4. Think Long about your Purchases
Rushing your shopping process can make you pay for unnecessary items that you pick along with the required items. Since you paid little thought to the things you choose, you spend more money than budgeted. To avoid this error, take your time as you budget, which will help you narrow down to only essential items. The shopping list will guide you throughout the shopping process. If you encounter a new product and are somehow moved to purchase the item, take your time, and think before buying it. Evaluate its uses or applicability; it might have no utility in your home and save you an extra coin.
5. Eat at Home
A meal prepared at home has a variety of benefits. Besides the healthy ingredients, the homemade meal will save you money. Buying foods from restaurants and the food market is expensive. You do not pay for only food but for all the other services, including renting and maintenance expenses. You do not have control over the portion you are served and could keep o ordering until your stomach is full. Make your meals and leave your house after you have eaten to avoid feeling hungry in the streets. If you are working in an office, make it a habit to carry your lunch from home and brew your coffee in the office other than buying in the streets.
6. Use Cash (run out of money, you are done for the week)
Prefer cash transaction to credit cards. When you transact using cash, you avoid funding goods or services that do not make sense. Losing money on unimportant issues could be a somewhat painful experience. You calculate on every purchase and rethink because you are parting with such a massive amount of your cash and end up holding to it more. As a buyer, you will get better deals in the market if you are using cash. Negotiate the price to the amount your money in the pocket can finance. Cash also allows you to portion your money and carry a tiny amount with you on your shopping activities.
7. Compare Brands (Find Cheaper)
Make it a habit of comparing prices from different stores before you make your purchases. You will realize that different stores price their commodities differently. Some stores have fixed prices while others can offer discounts to their customers on purchases. Second-hand stores have refurbished or older gently used items to get at low prices and still serve the purpose. ensure you get the best deals out of every purchase that you make. Do not compromise on quality as you go for cheap commodities; it could be expensive in the long run.
8. Go Minimal
You do not have to quit shopping altogether to save money and stick to the budget. Minimizing the number of commodities, you buy in a shopping exercise can help you stick to the budget. Going minimal allow space for priority goods and services. You are more focused on the vital products, and the process of allocating the scarce resource becomes simple. If you have different commodities that are not useful around your home, you can resell them and retain more money. Perishable things will go bad if they are not utilized on time. There is a possibility of items going out of fashion, and if you had concentrated on purchasing maximum items, it would be challenging adapting to the new lifestyle.
Becoming financially independent can be tasking but rewarding to a patient and focused individual. If your income is under your control, then you can enjoy a stress-free lifestyle. The benefits of budgeting and sticking to it are not to be underestimated as they create more balance in life. Your savings are essential in times of emergencies, retirement, and re-investing. When you take your time to manage your finances, the chances of spending money that you do not have and accumulating a considerable number of debts on unwanted goods are eliminated. Manage your money correctly and track your expenditure and account for every dollar spent.
