The Best Credit Cards That Match Your Conditions

Selecting the best credit cards that match your conditions is no easy job to accomplish.

However, before deciding to select one, you must know everything in details.

Credit cards are financial cards which enable individuals meet daily life expenses.

They also help to make payments conveniently, and build credit.

One should learn the benefits of a credit card compared to a debit card, before acquiring one.

The knowledge of how credit cards operate gives information on how you can manage debt in responsible ways.

The best credit cards in the market are not those that are cheap to acquire.

The best credit cards meet your personal needs cheaply and conveniently, and can give from time to time.

Best Credit CardsThe needs of a student may be different from those of a business executive who needs to travel frequently.

Therefore, different people have varying perceptions of credit cards they consider best.

The main idea here is that best credit cards have to show uniqueness in at least one main category.

It is difficult for specific credit cards to have favorable features, because they are not perfect.

Credit cards that offer the best interest rates in the market have little or no rewards for their holders.

Also, people with bad credit are allowed credit cards which don’t give rewards.

In such situations, high approval odds and low fees are all a customer requires. That lacks in reward offering cards.

Therefore, there is one appropriate method to use in finding the best credit cards.

The criterion is to first assess one’s needs and where they stand in regards to their credit scores.

1. Best Credit Cards for Travelers

Avid traveler need credit cards that can assist them to get elite member status in airlines and hotels.

The cards help them to earn free travel and enjoy a wide range of other perks related to travelling.

Travel enthusiasts and business people whose line of duty requires them to travel frequently prefer credit cards.

The best credit cards are those that allow them to redeem points for travel.

Even though the cards can be used to gain cash back too, they derive more worth from travel benefits.

There are three categories of travel credit cards: general travel, hotel and airline cards.

Capital One Venture Rewards Credit card is the most preferred in the travel industry.

It charges no annual fee in the first year of joining, and thereafter charges an annual fee of $95.

It is affordable for travelers given the benefits that come with owning the card.

Holders of the card are allowed to travel any time they want since there are no blackout dates.

They can stay at any hotel every time they travel, and can fly on any airline at anytime.

Other benefits they enjoy from the credit card are that they are not charged a foreign transaction fee.

Also, the miles they earn do not expire throughout the time they actively possess the card.

They are also not limited to the number of miles they can earn on a cumulative basis.

2. Best Credit Cards for College Students

Students have different financial needs compared to business executives, and normal employees.

This is why they would require different terms in regards to what they can consider as a good credit card.

The best credit cards for college students allow them to earn rewards.

At the same time, they need the best credit cards offering them interest-free financing even though it is short term.

As a student, such credit cards give you the chance to establish good credit scores.

A good credit history will help you rent your own apartment and get low premiums on insurance.

It will also allow you favorable rates on loans you might need in the coming year.

However, by the virtue of being a student, it does not mean that you automatically qualify for a student credit card.

You need to have access to income, and if that’s difficult for you, you could get a secured credit card.

Such a card requires you to deposit some amount of cash to act as collateral.

You need to have the collateral because it protects the issuer of the card, in the event you don’t settle your bill.

Discover It for Students Credit cards

The best credit cards for students in the market are many, but Discover it for students stands out.

The card charges no annual fees, and the holder earns 5% cash back every quarter of the year.

The holder earns that when they shop at different places, like gas stations, Amazon.com, restaurants or grocery stores.

Also, for all the cash back you earn, you are entitled to a dollar-for-dollar match at the end of the first year.

For the next five years, if you maintain a GPA of 3.0 and above at school, you get $20 bonus annually.

For students who are beginning the learning process on how to handle credit, this is the best credit cards that suit them.

If you make a late payment the first time, you are not punished, and you get to receive FICO score for free.

3. Best Credit Cards That Offer Cash Backs

There are many credit cards providers in the market who have capitalized on the cash back reward system.

The reason for its consideration by financial providers is its high demand in the market.

However, the best credit cards in the market depend on the needs of potential holders.

Credit cards have variations in the benefits they offer and their reward programs.

In addition to that, the annual and monthly spending of individuals is different.

Also, the value a person places on the perks offered to the card holder varies from one person to another.

Cash back credit cards are popular among many people because they are easy to understand and use.

The best credit cards in the cash back criteria are mainly from the United States.

Chase freedom and Blue Cash Everyday credit cards are leading the pack.

The unlimited version of Chase Freedom charges no annual fee and is considered the best.

It provides the holder with a sign up bonus and a flat rate as cash back.

Regardless of the amount you spend, even for any little money spent, you enjoy constant amount cash back.

You can redeem the cash back you earn each time you make a purchase for your next free purchase.

Blue Cash Everyday

Blue Cash Everyday also lacks an annual fee, and their cash back is rewarded in Reward Dollars.

From the dollars, you can redeem to purchase merchandise, get gift cards, and statement credits.

As a holder, you also enjoy 2% cash back when you make purchases at specific department stores.

You also get the same percentage when you purchase gas at gas stations in the United States.

Additional purchases made on any other places apart from the selected ones attract 1% cash back.

Their offer is good enough especially when the cash backs accumulate into more cash with time.

When you make annual purchases of $6,000 at supermarkets in the United States, you are entitled to 3% cash back.

There is another credit card worth considering, even though it does not match the standards of one mentioned.

Bank of America Rewards Credit Card, which is among the best for gas spending and grocery purchases.

Such credit cards attract no annual fee and holders enjoy a certain bonus amount when they sign up.

4. Best Credit Cards for Businesses

Entrepreneurs and business require credit cards that can provide them with the capital needs they require, with convenience and within a short period.

Business credit cards come in handy for people in the world of business.

Businesses need capital more frequently to finance their operations, more than a common employee or student would.

Therefore, the best credit cards for them would be those that give them instant capital for their startups.

The capital is also used in cash flow management and the continuous growth of their businesses.

In the startup capital category, business owners require credit cards to settle payments on purchase of inventory.

They also need it to settle advertising costs, and expenses for running the initial organization.

Those that have been in business for sometime are now running a bigger version of their initial companies.

Their demand for ready cash increases, with increase in the size of their business.

They use credit cards to purchase new machinery or repair the ones that are faulty.

They also require credit cards for payment of salaries and settling of debt accumulated over time.

There are many benefits of business credit cards especially when they are used correctly.

They can help you to separate your business finances from your personal ones.

The distinction ensures that you, your business partners and your family are protected on from liabilities of the business.

It is possible for you to go bankrupt, or another business or person could sue you in your line of work.

If the court finds that you used the assets of the company for personal benefits, you risk the limited liability protection you enjoyed prior to the prosecution.

Limited Liability Companies

Businesses can either operate as limited liability companies or corporations.

If you are guilty of misappropriation of your company’s funds for personal gain, you put a risk on your personal assets.

Business credit cards will help you demarcate your personal assets from the company’s.

They also maximize tax deductions, for example in the funding of equipment repairs.

When you use a credit card to fund the repairs within the year, you get a tax reduction when settling the payment later.

Ink Business Credit Card attracts no annual fee, and is best for spending in the office, dining and at the gas station.

It is appropriate for the daily expenses of a business, because it is accepted in most joints that serve companies.

To acquire rewards on business loyalty, consider Starwood Preferred Guest Business Credit Card.

It is offered by American Express, and rewards its holders a bonus on signing up.

5. Best Credit Cards for Airline Sector

Apart from business executives and travel enthusiasts, some people would like a bonus or reward during the few times they travel.

They require credit cards that offer the best rates and rewards in such cases.

Financial institutions have taken advantage of the demand in the market and provided a solution.

Flyers, ranging from frequent ones to business ones, and medium to small airlines require the cards.

Airline credit cards that fit in the category of best credit cards have incomparable offers in the market.

They charge no annual fee and have gone an extra mile to generate airline cobranded credit cards.

Chase Sapphire Preferred Card is the best option for spending in large airlines.

The card also provides a bonus on signing up, which has attracted more holders.

In the British region, the British Airways Visa Signature Card is the most effective for flyers.

Generally, flyers can enjoy the most lucrative perks and rewards, when they use Airline credit cards.

Although some of the credit cards charge high annual fees, they are worth it because of their benefits.

When you utilize the airline benefits that come with the card, you can recoup the expensive fee.

You can redeem earned rewards for a particular airline if your card is cobranded.

If you have a travel reward card, you enjoy the rewards on a wider scope of airfare.

6. The Best Hotel Credit Cards

Avid travelers or locals, who like to spend time in hotels, can have credit cards for that.

The benefits they can enjoy are available both in local and international hotels.

They get to enjoy upgrades of rooms they stay in and free stays when they visit the hotels.

Other benefits include discounts on travel and perks on loyalty membership of the hotels.

They get value for their money; because they can also redeem the points they earn to cover travel expenses.

Like the Airline Credit cards, Hotel credit cards also have their cobranded versions.

With the cobranded hotel credit cards, the holders redeem points they earn and dine in selected hotels.

The hotel brands that have set base in most parts of the world allow the cobranded credit cards.

When creating the cobranded cards, convenience and accessibility of the hotels is considered.

It is unlikely that a hotel which is only found in one town of a country will be put on the select list.

Customers require hotels which they can find in most places, to be able to enjoy the card benefits.

If the select hotel is only found in one location in the whole country, it is inconveniencing.

Chase Sapphire Preferred Card serves a wide range of hotels; hence it is among the best credit cards.

One can use the card to spend in the general travel and hotel scene, regardless of the location.

Providers have succeeded in attracting new cardholders, because of the sign up bonus they give.

Barclays bank is also part of the deal, in terms of providing the best credit cards.

Their Barclays Choice Privileges Visa Signature Card is among the best credit cards in the hotel arena.

It is mainly applicable in privilege hotels, which are frequented by the elite in the society.

Final Word

It is difficult to find credit cards that are the best across the spectrum.

The different categories of business and the varying preferences of people determine the best credit cards.

How to Improve Your Credit Score Fast and Why It Is Important?

Before knowing how to improve your credit score fast, let us get into the depth of it.

The word ‘credit score’ is not new to anyone of us these days.

Irrespective of whether you belong to financial industry or not, credit score is familiar to all of us.

This is because of the immense importance it has on our lives, to be precise financial lives.

From building portfolio to getting loans, credit score leaves a major impact and is extremely crucial to your financial health.

People nowadays, are extremely dependent on credits.

Therefore, it is imperative that you fully understand personal credit reports as well as your credit score.

In this article, we will discuss about the ways to improve your credit score fast and why it is important for you.

What Is a Credit Score?

Using credit signifies that you are borrowing a sum that you promise to repay within a stipulated time.

Credit score is actually a statistical method of determining the chances of repaying back the money you’ve borrowed.

The credit bureaus issuing these scores have distinct evaluation systems, depending on several distinct factors.

How to Improve Your Credit Score FastSome issuers may only consider the information in your credit report to determine the likelihood of repaying back.

Primary factors of calculating your credit score is credit payment history, current debt, credit history time, and distinct credit mixes.

It also brings into consideration how frequently you are applying for a new credit.

Since, your credit score is calculated on distinct criteria, 3 major US credit bureaus issue different scores.

Nevertheless, the factors they are based on are the same information on your credit report.

Those 3 major credit bureaus are Equifax, TransUnion, and finally Experian.

You might also come across the term FICO score while referring to your credit score, although these terms are synonymous.

FICO is the acronym of Fair Isaacs Corporation, which is the software creator of credit score rating.

You credit score can vary anywhere between 350 (high risky) to 850 that is considered low risky.

More Information on Your Credit Score Rating and How to Improve Your Credit Score Fast

You can improve your credit score fast only when you are fully aware of it.

Alongside using FICO or credit scores, majority of the countries that include US and Canada, improvises a scale of 0-9 for your credit score.

When it comes to this scale, two of either words I & R precedes each of the number.

I denotes installment credit such as home loans or automobile financing.

R stands for Revolving credits such as a credit card.

Each distinct creditor issues their own rating score for distinct individuals.

For example, you may have a R1 rating for your Visa, while have R5 for MasterCard.

It happens when you ignore or delay your MasterCard bills for months.

While R & I are rating systems are still used, the current trend is to shift from this multiple credit rating scale.

That is why FICO, which is a single digit rating score is used.

You can refer to this score to improve your credit score fast.

However, the scale goes like this:

R0 / I0: You are new and do not have sufficient credit data for assessing your risk rating.
R1 / I1: You repay back by a month.
R2 / I2: You repay back by 2 months.
R3 / R3: You repay back by 3 months.
R4 / I4: You repay by 4 months.
R5 / I5: You didn’t repay for 4 months, but officially is not ‘9’
R7 / I7: You struggle to make payments.
R8 / I8: The item was sold to collect the debt.
R9 / I9: You are officially declared bad debtor and payment collection is impossible.

How Is Your Credit Score Made Up?

Prior to knowing how to improve your credit score fast, you should know what it is made of.

When you are borrowing money, the lender passes the information to the credit agency.

This is detailed in the form of a credit report that shows how well you could handle your debt liability.

Going through the information that is provided in the credit history report, issuing bureaus can then make up your credit score.

These are based on five distinct important factors.

  1. Past Credit performance
  2. Current debt level
  3. Timeline of the credit
  4. Distinct types of credit taken
  5. Pursuit frequency for new credit

Regardless of the fact that these five aspects are preferred while making credit score, they do not have equal weight.

Hence, it is easy to assume that your credit score is dependent on the repayment of your previous credits.

There are several ways how to improve your credit score fast, however, the most important factor is repayment.

Having a history that states you repaid back your debt fairly and quickly will improve your credit score fast.

There are few other factors to improve your credit score fast such as having less debt.

You should not have too much indebtedness, be it your credit cards or huge pending dues.

You need to have a long credit timeline and history.

The most important thing you can do is to refrain from frequent pursuit of credits.

Keeping these on mind will help you to improve your credit score fast.

The formula for calculating credit score is fairly understandable, however, Federal Trade Commission like a secretive approach.

Why Your Credit Score Is Important When It Comes to Improving Your Credit Score Fast?

The importance of your credit score cannot just be explained in words.

It is one of the most important aspects of your financial health.

Your credit score will simply follow you everywhere and be of immense use at times.

Your credit score will play a significant role during major financial periods throughout your life.

A myth is that credit score is only useful when it comes to borrowing a loan, however, its importance is far beyond.

Keeping a good credit score not only help you get approved for loans, but showcase your financial character.

Be it for a new credit card, mortgage loan or even telephonic hookups, they check your credit rating.

The importance of credit rating is immense when it comes to the financial world.

Credit rating enables stores for accepting checks from you.

It helps banks in issuing you a new debit card or credit card after looking into your credit rating score.

Corporations are better able to manage their operations with the help of credit rating.

Your credit rating score shows the lenders how much risk you pose to them after lending the money.

In accordance to financial theories, if you have higher credit risks, an additional risk premium is added.

This risk premium is added to the price on which you are borrowing the money.

If you have a lower credit score, lenders won’t shun your applications, provided the score is not awful.

However, they will charge you a hefty price on the borrowed sum, which is more than the normal rates.

Difference in Interest Rates

A person with a better credit score is not charged with that much hefty price.

Hence, you can relate how important is your credit score and why you need to improve your credit score fast.

The below mentioned table shows how different credit score holders pay distinct interests on the same mortgage.

This distinction in the interest rates eventually leaves a drastic effect on your monthly repayments.

This repayment includes both the interest rates and the principal amount.

Score Rate Monthly Payments
720-850 5.49% $851
700-719 5.61% $862
675-699 6.15% $914
620-674 7.30% $ 1028
560-619 8.53% $1157
500-559 9.29% $1238

Source: myfico.com

You can therefore, see how your credit score can have a deep impact on your mortgages in distinct ways.

Credit Rating Is Very Fragile: Know How to Improve Your Credit Score Fast

It is very important for you to be fully aware of your credit score as well as credit.

This is because, if you are not aware, you can eventually harm your credit score.

Let us get into the business with a short story for better understanding of your credit and the score.

Paul, a regular Joe made an application for a travel reward card, however, never heard back from the CC agency.

Because the card had a high limit, Paul simply presumed that he wasn’t eligible and never thought about it again.

After a year passed, he went to the bank for inquiring on a mortgage.

The bank representative pulled up the credit report for Paul and sees a bad debt from that same CC Company.

The credit report stated that the company made efforts to collect back the money from Paul over a year’s course.

Eventually they placed it as a bad debt and gave R9 rating.

This is the worst rating one can get for being a bad debtor.

Of course, all of this came in as a surprise for Paul, since he never knew about it.

However, it stood out that there was a simply clerical fault in this case.

The apartment suit number of Dave was missing on the address, the company had in papers.

It was revealed that Dave was approved for the card, however, he never received one.

Moreover, none of the communications could reach Dave since of the address error.

However, the credit card agency charged Dave for the annual fee, however, couldn’t collect it.

Dave never knew even the debt or the card existed at the first place.

The annual fee was charged for a year with interest prior to being written off as a bad debt.

Finally, after a lot of hurdles, Dave could finally solve the problem.

The CC Company acknowledged their fault and sent notice to the credit bureau.

Moral of the Story

Although the annual fee was a mere amount of $150, the error caused Dave a lot of problems.

He was on the verge of not being approved for the mortgage loan.

Since, all the data nowadays are sent through computers, errors like this can easily happen.

This kind of error due to wrong information can bring a lot of harm to your credit score report.

Hence, it is always imperative that you check your credit score rating or credit report timely to avoid this.

Not knowing your current debt status and other reports, can apparently lead you into a dark abyss.

How to Improve Your Credit Score Fast?

When you think of how to improve your credit score fast, remember it is a marathon process.

You are to run a marathon but not sprint.

The time is worth when it comes to improving your credit score fast and any hurry can ruin it.

A bad credit score can cost you tons of money over the course of your life, leading to serious stress.

Many people suffer due to poor credit scores and there are many ways to improve your credit score fast.

Here is how to improve your credit score fast and reap the perks that come with it:

  1. Improve Your FICO Score
  2. Make Loan Payments on Time
  3. Do not Over Extend
  4. Bill Payment
  5. Know your Credits

1. Improve Your FICO Score

When it comes to improving your FICO score, you should always regularly check credit report and set reminders.

It is also important to pay back the debt in due time, if possible before the due date.

Your credit payment history contributes to the FICO score for more than 35%.

It has the most significant impact when you try to improve your credit score fast.

Rapid resourcing is one of the most common methods to help improve your credit scores.

Rapid resourcing is actually updating and rectifying the credit information, which is then sent to bureaus.

You need to get the help of a credit lender for this service as Credit bureau allows only them for this.

2. Make Loan Payments on Time

It is very important to ensure that you are repaying back the loan on time and not delaying.

Repaying back the loan on time helps you to improve your credit score fast.

If you want to know how to improve your credit score fast, this is the best method you need to adopt.

You need to also ensure you are repaying back the correct amount.

3. Do not Over Extend

You should always avoid overextending the credit, if you want to know how to improve your credit score fast.

Unsolicited cards coming in through mails are tempting, but won’t assist to improve your credit score.

4. Bill Payment

You must never neglect your overdue bill payments.

If you have problems in repaying, let your creditors know.

Request them for repayment arrangements so you don’t have to miss out on the payments.

If you let them know, they might be flexible and you don’t run into the risk.

5. Know Your Credits

It is always important to know your credits.

You should always be aware of what your credits are.

Distinct credits from financial organizations may have an adverse effect on your credit score.

You should always try to minimize the current debt.

This is the key on how to improve your credit score fast.

Reaching your debt limits are considered poor and have adverse effects.

You should also refrain from applying for several frequent credits.

This signifies your financial status is in jeopardy and that you are a high risk debtor.

Bottom Line

The aforementioned steps are how to improve your credit score fast.

However, you need to understand one thing and that is, it takes time.

You cannot improve your credit score fast by overnight.

Give it ample time to improve your credit score fast and once you do it, it is worth the time.

If you want to know how to improve your credit score fast, remember credit timeline is important.

A long, good credit history is much better than a short credit history.

Discuss with experts how to improve your credit score fast and then go by the suggestions.

Your credit score is very important these days and neglecting it can have detrimental effects.

You should always be aware of how your credit score is calculated and give special focus to it.

Research online and go through several credit bureau sites to ensure you are streamlined and following everything.

Your credit score is the ultimate decider for your financial requirements.

Now that you know how to improve your credit score fast, don’t wait.

Start following everything today and build a better credit report tomorrow.

It’s now or never.

Balanced Budget Without Raising Taxes

As the United States tackles yet another budgetary allocation, the question that is top of the mind is how best can the target balanced budget be achieved?

The fundamental choice continues to be the toss between balancing spending with taxation.

When this topic comes up for discussion I am sure you might be wondering if the word balanced economy is an exaggeration?

Or how best can a country base its allocations in a way that both supply sides, as well as demand bottlenecks, are addressed simultaneously.

Some of the most important factors influencing these judgement calls include the prevalent economic conditions, the bias of the existing political party and the trade ties that a country shares with others.

Another key deciding factor would be the type of export or import.

For example, if the country is a net oil importer, then obviously a significant part of the Budget would be geared towards servicing this debt.

The Basics of Balancing the Budget

First of all let’s get a clear picture of what a balanced budget is all about?

When we talk of a balanced budget for a country or a nation boasts about a balanced budget it essentially refers to a situation where the expenditure and the revenue generated are equal.

Almost a Utopian situation, it refers to a state where the economy neither has a deficit problem or a surplus condition.

This balance can either be on an annual basis comprising of a span of one financial year, or it could extend for a cycle.

By cycle I mean a complete economic cycle.

This could comprise of a boom or a bust period.

Thus a balanced economic cycle talks of period where the economy might be seeing surplus during upswing in the markets deficit during times of negative returns.

Some of the key benefits of such a situation is…

  • Bring down interest rates
  • Help boost investment and savings
  • Reduce the trade deficit
  • Aid faster economic growth

However despite these, many economists believe that a balanced economy might not be the best case scenario always.

Especially in bust period, a deficit budget is a comparatively more desirable situation.

A cyclical balanced budget in comparison has a lot more supporters.

Most economists who argue for this state take a Keynesian perspective on the issue.

They feel while budget deficit acts as a fiscal stimulus during times of negative market trade, surplus in Budget acts as the restraining factor.

The various schools of economics continue to hold varying viewpoints on the kinds of economy they would choose or what type is more effective in maintaining the economic health of a country.

Many opine that deficits which are large but within limits to recycle savings from a growing GDP or gross domestic product is more of an economic necessity rather than a liability.

By Budget deficit, I mean the difference between the total planned expenditure and the total available budget.

A negative total is the budget deficit while a positive one if Budget Surplus.

Tools to Rein in Budget

There can be many approaches to a specific problem.

Without debating what would have worked better and how, let’s look straight into the several ways that can be employed to rein the Budget and not tip the balance even without raising the tax concerns.

As I mentioned right at the beginning, that the Budget is never the product of just economic concerns.

There are many associated elements, and all together they contribute to the essential policy making. Thus here are some options:

Look at Revenue Generation

Revenue is a strong tool if used effectively.

There are various channels through which an economy can look at generating income and funding its initiatives.

This is a key element in the overall economic construct and identifies points that have the maximum potential to benefit the exchequer in a way that could help meet up all the state’s expenditures.

Many economists have termed it as the least worst way to deal with a deficit conditions.

The finance department of the country needs to burn the midnight oil to devise strategies that can look to achieve this end.

The sale of assets is one key approach.

For example the US Federal Govt’s OMB Department or the Office of Management and Budget compiled a report in 2008 that said the Govt held public land that was worth $833 billion and this was a significantly higher amount compared to the loan obligations it had at that time which was around $209 billion.

Legislators should also explore avenues which have been thus far underutilized and can help them make significant additions to the exchequer.

For example, the US Govt provides many services like flood insurance, inland waterways and National Parks maintenance.

By raising the user fees for these services alone the Govt could rake in a considerable huge sum, given the scale of services and the widespread uses involved.

Floating of Bonds

When we talk of selling the country’s assets to expand the profit picture, it is needless to mention that one fundamental weapon used in the sale of these is the floating of bonds of various types and maturities.

The Govt can thus raise money via the issuance of these bonds.

This is perhaps one of the most basic tools employed to avoid raising taxes or cutting spending allocation.

Historically evidence supports the fact that many a time a debt issuance might be the best tool to boost the economy and directly deal with paying off the Govt’s long-term debt woes to a large extent.

Not just by floating bonds for the public but many a times as we saw in US post the Lehman Crisis, the Central Bank, Fed, in this case, bought the very bonds it issued to improve the cash flow in the market and stimulate the economy.

It was popularly known as the quantitative easing tools employed by the US Fed.

They bought huge amounts of government securities to help the economic recovery.

Expand Tax Base

It is often argued that more than raising the tax levels, it is very important to improve the base for it or rather the total number of people/organisation who can be brought under its cover and be made to pay the taxes that are due.

The Govt should also constructively look at steps to eliminate industry based subsidies, special exemptions and credit refunds.

These measures can instantly spike up the revenue generation cycle and bring in a lot more significant returns with limited transaction costs.

Also effective compliance through incentivizing the tax structure in a way that more and more people come under its net is seen as an effective measure in increasing the overall tax collection.

Tax Hitherto Untaxed Organization

Trying to capitalize on unrealized revenue potential is an operating word.

Many Govt operated institutions with reasonably high income or operating revenue.

If we take the example of the US economy, there are so many federal sponsored firms that are direct competition to the private companies, but have a major advantage in terms of, not paying any income tax.

The likes of credit unions, non-profit hospitals and many insurance companies all fall under this bracket.

There has also been an increase in the number of many non-profit units that are now engaged in profitable ventures.

While there are provisions for these organizations to pay income tax for unrelated business, a lot of them get royalties, rents which is considered exempt from the tax net.

Improve Compliance

It is often noticed that while theoretically there might be X individuals and Y firms that should be paying taxes yet millions of dollars are spent in ensuring that as many as possible actually pay their taxes and the number of total net payers of tax reach as close as possible to the original target set.

Another interesting and important element in improving the tax compliance is the way in which taxation policy is computed and how simple it is in terms of access by the average taxpayers.

By removing the complications associated with tax, payment can easily be instrumental in improving the compliance.

Tweaking the Interest Rates

Yes, even if it does not strike as the most logical solution, constructive tweaking of the interest rate can enhance the tax collection and the associated revenue generation involved in the process.

Interest rates form the core for most business development and have a significant bearing on all kinds of monetary transactions.

Hence, it is extremely important to regulate it in a way that brings out the maximum possible benefits potential for a given economy given the current conditions and the challenges associated with it.

Essentially by maintaining a low rate of interest, the govt can look at stimulating the growth outlook, as well as raise the target revenue generation in the process.

Thus, this can ultimately work towards servicing the national debt in a situation where tackling the deficit conditions might be the Govt’s core challenge.

Low-interest rates can also help stimulate the growth of individual and small businesses.

Also, this can thus be instrumental in generating employment and improving the overall income situation.

This can only be good news in terms of the health of the economy and the country’s Budget, which is nothing but the national record book of expenses and income.

Look at Ways to Grow the Economy

That logically brings us to the next destination on our economic chart, balancing the budget deficit by stimulating economic growth and bringing out maximum possible increase in the economic activity.

This is particularly important in bringing about an all round growth boost for the various elements that make up the construct of a working economy.

Economic growth is a direct result of additional manufacturing activity, increased retail spending and additional consumption of services associated with retail and consumer clients.

These can quickly provide a fillip to the revenue generation and overall collections at the exchequer.

Focus on Higher Job Creation

We need to understand a basic fact that an economy is ultimately dependent on the money that it can collect as taxes or in other words tax collection continues to be one of the most effective means of income for any country.

This is only possible when the people who are liable to pay income tax see a significant rise.

Another important fact is that the additional expense that the state incurs for the well-being of those who are unemployed and additional provisions have to be made for that.

This gain is a drain on the economy.

If the rate of employment rises as a result of the direct impact of heightened growth stimulus, more people will start paying taxes and less and fewer allocations for the unemployed benefits have to be made.

All of these translate into additional economic gains for the country’s economy.

Cut Spending

Spending cuts continue to be one of the biggest weapons in the armoury of the country’s exchequer to boost the economic situation and enhance the revenue collection for the Govt.

Another interesting element is that they are relatively easy to implement and go a long way in sustaining benefits for the country over the long-term.

For example in the 1990s when Canada faced a significantly high budget deficit, they reduced this gaping difference to zero with the help of deep spending cuts, nearly 20% in the entire tenure that it took to reduce its deficit.

In the modern context, one particular economic mantra inspired by this very fact has been the Austerity drive that you have seen in many parts of South Europe after the 2008 economic crisis.

Many stagnating economies in the region pledged to cut as much as 50% of their spending to rein in the gaping deficit woes and bring about a semblance of order in the existing economic situation of the country.

Yes, it is another fact that most times implementation of these spending cuts could be an uphill task, especially in the light of losing political support and ever growing protest against any such proposed cut.

The huge delay in implementation of the austerity programme in European nations of the years of wrangling on the Social Security program in the United States can well be counted as screaming examples of the extent of turmoil which these spending cut proposals can stir, forget about actual implementation of these measures.

Concluding

The other possible options in dealing with a budget imbalance could include addressing the inflation issues and tackling supply-side challenges of the economy.

The Govt can also work towards improving social, economic mobility.

Not only these are means to achieve a balanced budget, but can go a long way in enhancing the overall health of a country’s economy.

Passive Income Tax Rate

When you look at the various facets of income opportunities available today, passive income is a much talked about alternative.

But often, people are unaware of the exact tax rate and in the process, tend to miss out the advantages of the additional income.

You must understand that the passive income tax rate is very different from nonpassive income.

There are different types of rates applicable for different income opportunities.

You can draw the biggest benefit from these income avenues by understanding your tax liabilities effectively and being able to service your needs and requirement accordingly.

Broadly, passive income tax can be deducted on passive income.

By passive income, the US revenue department refers to all such earnings for which you do not have to earn or make any effort.

It is income that follows its natural course as a result of any previous initiative that you might have undertaken.

At the current moment, you do not have to do anything to maintain the steady cash flow.

Therefore, this gets counted as passive income.

There are, of course, many prerequisites before you categorize the various income options.

Therefore, it is pertinent that you understand the different provisions.

Passive Income Tax Rate & How to Determine It?

So it is important to understand what exactly passive income is and how you can distinguish it clearly.

1. Passive Income

In very simple terms, passive income refers to income or earnings from any activity where the beneficiary has not participated actively.

The source of passive income could range from real estate to fixed deposit to business dealings as well.

This could also include your earnings from certain investments at times.

The crux of the arrangement is such that the beneficiary after the initial legwork can pretty much sit back and relax completely.

Now we all know that passive losses can be only claimed on the passive income tax liabilities.

Most people now try to have simultaneous passive income sources apart from their active ones.

This is exactly why special rules were constituted to put a cap on the amount of tax liability that you can seek to reduce through claiming passive income benefits.

The 1986 Rules

These special rules that were enacted in 1986 specified that you can look at reducing your nonpassive income by as much as $25,000 if your overall income is less than $150,000.

However, this also specifies your active participation in a passive income source like rent from real estate.

But beyond this point, you have to restrict claiming passive loss benefits from passive income.

The losses that cannot be claimed can also be carried forward in consecutive years.

You need to understand to offset the losses; you need to project passive income that can adequately account for this amount.

There are some instances where you can also use the proceeds of a sale to claim tax benefits for passive losses.

But for that, you need to understand the law clearly and make provisions accordingly.

This will make sure you are able to optimize the benefits of a separate passive income tax rate in the best possible manner.

2. Portfolio Income

One of the most popular and interesting investment opportunities is undoubtedly that of portfolio income.

In many ways, it can be considered passive income too as it comprises of various types of dividend, capital gains, interests and royalties.

Though they are all clubbed together as either portfolio income or passive alternatives, the crux of the matter is that this kind of income has a very different tax rate.

Different kind of portfolio income has different rates.

For example, the tax rate for capital gains on an investment that you have held for over 12 months would be between 10-20%.

However, if the capital gains are calculated on investment less than 12 months, then they are taxed at a regular rate.

Social security taxes and medicare expenses are not levied on portfolio income.

So whether you are trying to project your income as portfolio or passive, income will depend on several factors.

But another benefit in case of portfolio income is you can use this to offset tax liabilities and other investment/income losses.

3. Active Income

This is often termed as earned income as well.

It is what you would call as regular income opportunity.

It is one of the easiest types of income and seen everywhere.

You go to the office, earn money and come back.

At the end of the month, there is salary in your bank account.

As the name clearly indicates, this is active income because you are putting in the effort and getting the reward almost immediately.

It is needless to mention that this, of course, comes with the highest income tax rate.

Personal taxes range anywhere between 10-35%, and apart from the direct income tax, there are several other taxes too that are levied on this income as well like social security and medicare taxes.

Therefore, the overall tax on this active income can be sometimes as high as 50%.

Another point where this differs from passive income tax rate is the number of deductions.

Well, the number of deductions is much less in this form of income as compared to other income opportunities like passive income or portfolio income.

So that further exacerbates the need to understand that various prerequisites for what constitutes a passive income and then getting a fair perception of the exact tax rates.

This is important also because the overall deductions that you can claim on a given year, and what losses you can carry forward to the next year is very closely linked to these factors in totality.

You must remember that understanding the various facets of your tax rate is as important as making sure you have a reasonable income source.

This is because only a thorough understanding of tax will help you maximize your income potential and recover maximum value for every dollar that you earn.

This understanding is also crucial in opening up various channels of investment in a constructive manner.

The Effort Element in Passive Income Tax Rate

When you look at the taxation rate of passive income vs active income, one of the most striking elements to consider is the fact that why is earned income or active income come with a higher tax rate.

Technically, you are putting in a lot more effort, devoting decidedly more time and even in terms of engagement, you need to have a far better and greater level of involvement.

So how is it that you need to pay a greater amount of tax in return for your hard work.

Well, you have guessed it right, it is not the time that you devote towards generating passive income that matters but the point is how efficiently are you able to.

In many ways, I would say that the tax department is perhaps telling you something really important.

It is not important for you to work harder but on the contrary, you need to work smarter.

Instead of devoting 8 hours in the office, if you can work at your convenience and generate an income that carries a lower tax rate, then why not?

It will only work better in your favor.

I am sure you already understand by now what it really meant by passive income.

It is, after all, any form of earning for which you do not have to put in any active effort.

Effort or the lack of it is the key factor that distinguishes active from passive income.

One of the possible variants of this kind of income is dividend income.

There are other popular alternatives as well.

These include the likes of:

  1. Income from bank account
  2. Credit card reward points
  3. Royalties
  4. Licensing fees
  5. Rent from real estate

One of the unique features of passive income is it does not necessarily take into account how hard you work or how much effort you put in.

Rather passive income capitalizes on how smartly you can execute a task.

It is completely based on your ability how efficiently you can generate income without putting in a huge effort.

It doesn’t really matter how hard you are working or how many hours you have been devoting for the job.

In fact, it celebrates the fact that you have put in some effort today and can then reap the benefits of it for the rest of your life.

What’s even better is there are many opportunities whereby you can also convert the active income into passive income.

You can generate the cashflow that helps you take advantage of a far attractive tax rate.

Once you are able to turn the active dollars into passive assets, it is needless to mention that you can then take advantage of the more liberal tax policy and look to conserve the cash a lot more effectively.

Why Passive Income Tax Works in Your Favor?

Perhaps I mentioned this already, but it does not hurt to repeat that the tax department’s policy is so geared that it shows a decided bias towards those who are working smarter instead of harder, in other words, it favors those who choose passive income options.

One of the best ways to claim this tax advantage is by choosing the most appropriate channel to generate the income.

In this context, dividend income is one of the most lucrative opportunities.

In fact, if you happen to fall within the 15% tax bracket, you can even enjoy the earnings from dividend absolutely free.

This is because those individuals, who are within this specific tax slab, get taxed 0% on dividend income.

You might now ask what exactly comprises a 15% tax slab.

Well, according to data available online if your annual average income is around $37,000 you qualify for this rate of tax.

As per the existing policies, you can claim a standard deduction of not more than $6000, in case you are filing individually.

On top of that, there are personal exemptions which you can claim close to $4000.

On top of it, if you have a dividend income north of $47,000, you actually stand the chance of paying a big zero in income tax by the end of the year.

Now think about the tax rate at which you are earning at the moment.

The disparity will be visible to you in very clear terms.

But something that I missed out mentioning here is the social security and the medicare rates are still applicable on you.

So you need to account for another 7.65% in tax as well.

Apart from that, the tax rate still remains in favor of passive income

Therefore, it would not be wrong to term the passive income tax rate as one of the best representations of the ways to maximize the value of every dollar that you earn.

It helps you to not just set long-term goals, but add more value to every penny that you set aside in the investment kitty.

So whether you are planning to take an early retirement or compound your existing savings structure, the passive income tax rate can really come in handy in keeping the overall tax liabilities.

While setting long-term targets in one part of the story, the other important aspect is how well you can preserve this entire amount in a way that you pay bare minimum tax for it.

It would mean that you will be able to retain the maximum amount of that money with you and not have to part with it as a tax liability.

The Big Advantages of Passive Income Tax Rate

I am sure all of you understand by now what exactly is meant by passive income tax rate and the reason why passive income comes with a lower tax rate compared to other nonpassive opportunities to earn money for a prolonged period.

But those opting for this kind of tax policy tend to make savings in many other unique ways as well.

That also adds to the charm of opting for passive income and the associated tax rate that goes with it.

1. Limited Cost

If you follow the entire tax rate and way passive income tax is calculated, you will realize that there are no associated costs apart from what is already specified.

Alongside, those who opt for this kind of income, also make a lot of savings in the form of lesser lunches outside, better time spent at home, lower wardrobe costs and far lesser transportation expenses.

Now let’s face it that all of these services carry a certain amount of tax.

Whether you consider hospitality taxes, different kinds of surcharge and the rate of sales tax further exacerbates an individual’s tax liability over an extended period.

You must understand in choosing a specific way of working often means that you can optimize the value of every dollar you earn or save in a comprehensive manner.

2. Flexible & Financially Secure

Let us explore the crux of the entire passive income dynamics.

Why would you choose it over a conventional active income opportunity?

Most times, this is because you get to decide the working hours, you are able to gain more time due to less travel, you inevitably spend more time at work.

But at the same time, you are no longer financially dependent on anyone.

Whether you are earning via rent income or dividend or any other type of passive income avenues, you are able to maintain your financial independence.

A lower tax liability and ability to offset losses over wider time duration makes sure you would be tempted to choose this way of earning money more than any other.

3. You Are No Longer Tied to a Spot

If you have considered working from home ever, you would know that one of the most important reasons that people choose it over many other options is because they are then able to move freely.

Most times, it is only internet connection and a laptop that they needed.

When you consider passive income, the gains are even better.

You do not have to work, you travel as much as you want and choose to stay wherever you want, yet enjoy the benefit of a steady cash flow every month.

The icing on the cake is undoubtedly that your tax liabilities are also distinctly lower than what you would have to pay if you attended office every week and took bare minimum leaves.

Plus, there is no certainty that you will have the job forever.

You never know when you become a victim of a downsizing drive in office.

4. You Can Retire a Lot Earlier

Let’s understand we work, save, invest, work and continue this cycle for almost a lifetime in the hope of creating a cash flow that can sufficiently fund our requirements in a well-structured manner for our old age.

But what if you can create that passive source without much ado and gain financial independence at a much lower age, perhaps 34-35?

Moreover, it would mean that you also have to pay a lesser rate of tax and let’s face it.

Who does not want to take advantage of tax deductions?

Moreover, if time is money, this is one of the biggest income sources for you.

You save decidedly a lot of time, and that in itself can be a huge factor.

That apart, you also have to pay lesser tax, so it is indeed a win-all strategy for you.

The best part is you do not need to have a separate income source, you can easily convert your active earnings into passive income.

Some of the Key Passive Income Tax Rate That You Need to Know

Now let’s say; we have understood the great benefits of taking advantage of passive income tax rate.

But then the question might come that how should you diversify the cash flow source?

Should you depend predominantly on dividend income or can you also explore the option of bank deposit and earning interest for it?

Here is a quick guide on the tax rate of some of the best known passive income sources and how you can get more value for every dollar that you earn.

1. Interest Income

This is perhaps one of the most basic forms of passive income.

Hence, it becomes extremely important to understand the tax rate on this specific kind of income.

Interest income essentially refers to all such income that you earn as interest from various financial institutions and banks.

Whether it the interest that you earn from your savings account or the interest that your money market account yields, it is interest income.

Interest from various deposits and bank certificates are also included in this list.

Normally this interest, when credited to a specific account, is available for withdrawal.

You do not have to pay any penalty and will be taxed as per your normal taxable income.

The income tax rate, in this case, will range between 10-35% depending on the exact amount of your net income.

2. Dividend Income

This one is a very popular passive income source that is often recommended by analysts to generate steady cash.

Essentially dividend refers to any periodic payment by stocks and mutual funds to their shareholders.

This is not dependent on the market condition, and an individual can continue earning them as long as the stock or the mutual fund decides to pay to its shareholders.

Broadly this dividend income is divided into two categories:

– Ordinary Dividend:

These are regular dividend payouts that you see in the market.

The normal existing tax rate is levied.

– Qualified Dividend:

This refers to all those dividends that are paid on stocks that have been held for more than two months but within the 121 days post the dividend date or post the date the stock went ex-dividend.

These are subject to a maximum tax accounting to 15% if regular or normal income tax rate of 25% in levied.

In case, it falls below the 25% bracket, you are not liable for a single penny.

It is absolutely zero.

3. Capital Gains

In the list of the most popular passive income channels, capital gains tax occupies pole position.

Normally this refers to any kind of lump sum money that you might earn if you sell any major asset like stocks or mutual funds.

Normally the amount you earn from the sale is much higher than what you paid for it initially.

Capital gains again can have two primary variants:

  1. Short-term gains: This is the gain that you bag from asset sale that you have held for less than a year. These are taxed at the normal income tax rate that you are eligible for.
  2. Long-term gains: As the name suggests, this essentially refers to the profit that you earned from long-term holdings. The maximum tax rate for them is capped at 15%

4. Child Support

Marriages break, relationships suffer a jolt but what we don’t realize is these types of conflicts also have a financial implication.

The money that a parent pays to the other parent or the child’s custodian for the proper upbringing is also passive income.

This is not subject to income tax as opposed to alimony money that is taxed under regular tax rate depending on the bracket that you are under.

Therefore the passive income tax rate on money received as child support is zero.

5. Social Security

The extent to which this kind of passive income is taxable is entirely dependent on the tax bracket under which you fall.

Depending on your annual income, there are instances that not a penny of the social security retirement benefits is taxed.

For those with income below $25,000 on an annualized basis, as single taxpayers, or below $32,000 when paid jointly, do not have to pay any tax on their social security benefits.

On an average, if you file as a single tax paper and your annual income is worth $34,000 or above $44,000 as a joint payer, almost 85% of this income is included in your regular income.

This is then taxed at the normal rate that you are eligible for.

If your income is in between $25000-34000 as a single tax filer or between $32,000-44,000 as a joint taxpayer, 50% of the social security benefits will fall under the taxable income bracket.

Is Passive Income Tax Rate Complicated?

So I am sure you have understood by now that passive income tax rate is a rather complicated financial arrangement.

You need to have a very clear perspective of the existing tax rate, the return prospects of various income channels and your ability to generate returns from a passive income source.

Don’t get too buoyed by the lower tax liabilities for those with passive income.

You must understand that while it is quite simple to enjoy the benefits of passive income, generating it at the initial stage needs a significant bit of legwork.

You must be convinced about the channels that you choose.

That apart, you also need to make a ballpark assessment of the kind of money that you would require post retirement on an annualized basis.

This will then be able to give you a clearer perspective on the kind of money that you need to generate and what type of passive income platform can help you best.

It is needless to mention that you even need to take into consideration the various tax slabs and the rates applicable.

Retirement Planning Spreadsheet [Microsoft Excel Free Download]

Retirement Planning is a key consideration as you proceed through your professional life.

Just like you need to account for your child’s education, health and house, it is important to account for the money that you need to make your old age comfortable.

One simple way to achieve this is by accounting for every possible expense using a spreadsheet.

A Retirement Planning Spreadsheet is essentially all about encapsulating your entire retired life on an excel sheet or a spreadsheet.

The idea is geared towards creating a future account that enables you to save today and live a comfortable retired life in future.

Key Constituents of Retirement Planning Spreadsheet

While creating a spreadsheet is not very difficult, the point is what should be the key constituents of your retirement planning?

RetirementWell, there are some basic calculations that you must take into account while planning your retirement and these include:

  1. The exact level of monthly income that you would need every month post retirement
  2. How much you need to save now at current levels to get adequate funding for future rates
  3. Apart from the 401k retirement plan, figure out how much you need to save separately
  4. Exact tax liability once you reach the state where you can withdraw the retirement fund

Well, you might say that there is no real exact answer to this question.

But yes these above mentioned calculations will surely help you come up with ballpark numbers that you can use as a reference to guarantee future comfort.

A lot of it is also dependent on the kind of lifestyle you have now and what you intend to follow in future.

The amount you would require to service the future needs would solely be dependent on that crucial aspect.

An Example

For example, if your annual expenses are closer to $100,000 to live comfortably, the money that you need to save to continue the same lifestyle post retirement is significantly higher than what you would need if your annual expense is close to $50,000.

In fact, the money that you would need would be almost half of what you would need in case of the former lifestyle.

If your annual expense is even less than that, say around $25,000, then for the same money, you can spend your retired life pretty lavishly.

Just when you are creating the spreadsheet, you must pay attention to the various details that you must account for.

Only then can your retirement planning spreadsheet.

Also, keep in mind that your spreadsheet has to be extremely practical.

You cannot just assume you will save a specific amount.

Think about your existing expenses and see how you can balance both parameters efficiently.

Also, this planning needs to account for sudden financial needs or medical expenses and even economic downturn which could significantly bring down your overall returns in the longer run.

Therefore your retirement planning spreadsheet needs to adequately account for inflation related spike up in expenses, market related drop in returns and other such uncertainties have to be adequately padded up in your investment plan.

Online Options

Given the widespread use of computers and easy solutions available online, it is now possible to easily download retirement planning spreadsheet from the internet and tweak it as per your expenses to get the right amount that you need to save up.

But given the plethora of options that are available online, often making a choice can be tricky.

So, you might end up downloading an option that does not quite serve your purpose appropriately.

Ease of use is also another factor that you must take into account.

1. User Friendly Interface:

Choose a spreadsheet template that can easily adapt to your needs and yield the desired result for you.

There could be some template with the great features, but compatibility might be a major problem.

Therefore, you must pay attention and choose an option that can help you adapt to your requirement and computer software quite easily.

A user friendly interface would also ensure that you find it easy to use and can properly optimize the available features to get the right kind of result from the entire template.

This also means that you will also be able to access it in any format.

2. Flexible:

Another key requisite for your retirement planning spreadsheet is that it should be extremely flexible.

Everyone has a different type of income source and savings pattern.

Even the expense picture can be very different for various people.

It is, therefore, important to use a spreadsheet template that’s extremely flexible.

It can help you make these complex calculations without altering either your style of savings or making an irrational allocation to heads that you would not consider otherwise.

In short, the whole idea is that it needs to be adaptable and flexible to your needs.

3. Multiple Options:

Sometimes you might be investing in a traditional 401k retirement plan but perhaps given the kind of job profile that you have a SEP plan might help you garner better returns.

So an efficient spreadsheet option is essentially the one that easily helps you to compare the various options that you have at your disposal and make the most appropriate retirement planning for you.

Sometimes as individuals, we often get into herd mentality and just tend to do whatever we see others doing.

The fact is that it might not be very effective all the time.

Therefore a template that can help you compare option sand make an appropriate call based on these various alternatives will be best for you.

It will help you garner better returns for every penny that you spend.

At the same time minimize your tax burden as best as possible.

Therefore, an effective retirement planning spreadsheet is one that can address all your needs and generate options that are most appropriate for you.

While some may argue that they can easily do a back of hand calculation and know for sure how much they need, sometimes it is a much better idea to put it all down in pen and paper.

The idea is once you make a note of these various elements, it is much easier to track them both individually as well as a collective entity.

The whole idea is to guarantee a comfortable retirement for you.

And, the spreadsheet can often go a long way in ensuring this fundamental need.

Click Here to download our Retirement Planning Microsoft Excel Spreadsheet for free.

The Fastest Ways to Make Money

What are the fastest ways to make money is undeniably one of the biggest quests for most.

Everyone wants to get rich quickly and with minimum effort.

Money and riches are invariably one of the top priorities.

Most people would like to have a lot of money.

The question is how you can get about doing it.

Remember the fastest ways to make money is radically effective use of resources.

When you look for information on the internet, you get a varying range of options.

What Are the Fastest Ways to Make Money?Starting from selling your hair to selling to your craft, the options are innumerable.

But just because it is one of the fastest ways, it does not have to be out of this world.

It can be a conventional idea that yields great results

Often it is about creating a strategy and executing it properly.

The fastest way to make money is primarily about identifying the opportunity.

For example, even think of a conventional job, let’s say a software engineer.

The person might be very talented, but till they get the right job, it is no use.

Similarly, you have to identify the opportunity to make money.

That will help you identify the fastest ways to make money.

Difference Between Making Money & Earning Money

Often people get confused about the fundamental concepts of how to make money.

The fastest ways to make money may not necessarily be same as earning money.

There are many ways to make money even without earning.

Let’s say you pay a late fee on your credit card bills every month.

That is because you have not been careful about regulating you credit cycle.

But with little care, you can easily transform this cycle.

Once you start paying your bills on time, you begin saving on the late fee

Essentially that is the money you are making.

In this way, there are many ways of making money on a longer-term horizon.

Let’s say you make constructive progress towards cutting down det.

Now that is a sure fire way of saving interest payments.

That means yet again you make money.

You can make money while you are earning money.

It can be from a part-time job, hobby, financial planning or even interest payments.

Let’s say you have invested in a stock that pays a steady dividend.

So apart from the absolute value, that’s the money you are making.

So what are the best ways to make money now?

There are many options on the Google search page.

The challenge is to look for the believable ones that hold some promise for effective delivery.

In short, you will have to look out for legitimate opportunities.

The online listings also include lots of scams and illegitimate alternatives.

The best way is to avoid traps that promise making money easy or quick.

The fastest ways may not be the easiest.

They often need patience and special skills.

Beware of any proposition that seems too good.

Here is a list of some of the fastest ways to make money.

Fastest Ways to Make Money

Here is the list of the fastest ways to make money:

  1. Participate In Market Research
  2. Put up Rooms on Rent
  3. Sell Old Furniture & Other Old Items
  4. Teach Yoga on Weekends
  5. Organizing Birthday Events
  6. Online Virtual Tutoring
  7. Baby Sitting
  8. Dog Walking

1. Participate in Market Research

This is one of the most common ways to make money.

The consumer products range is exploding with opportunities.

Almost every day you have a new offering from some company.

But all of this is the outcome of a wide series of consumer research.

Manufacturers and product designers are constantly offering matter for new research.

Most times all you have to do is fill up a sheep with basic feedback questions.

This may also include a survey or a brief opinion poll.

The advantage is none of these are very time-consuming.

But at the same time, they help you make money.

The whole layout and overall efficiency do not matter.

These opinion polls or surveys may be conducted by agencies or companies directly.

The idea is to mobilize public opinion and help the feedback in product development.

The earnings per survey are not huge.

However, there is consistency, and most offers are genuine.

Your earning per survey may not be huge.

But at the same time, there is a certain amount of predictability in the revenue model.

So it helps you make money on the side.

It is also among the fastest ways because you can do many at one go.

The other major advantage is that you can continue this work alongside your other jobs.

It does not need a lot of attention or time.

Even if you decide to devote just half an hour every day, you can make a tidy sum.

That goes a long way in helping you address the day to day monetary needs.

When you invest this time of additional money, it generates the much needed additional funds.

The bottom line is this is among the easiest and fastest ways to make money.

2. Put up Rooms on Rent

Let’s say that you have had enough funds to buy a holiday home at a holiday destination.

But for the most part of the year, it lies vacant.

This is because you are not able to take more than 1 or 2 breaks a year.

But do you know you can make money quite fast by simply putting up the property on rent?

This is, in fact, one of the fastest ways to make that extra money.

All you have to do is list your property on Booking.com or Airbnb.

Most of these associations are quite reliable and profitable.

The maintenance of the property also becomes quite hassle-free.

As a result, you get a simple option to make money.

The rent is collected on occupation, and you get your cut.

So this makes it possible for you to earn money in a simple and convenient way.

Most of these websites have sufficient security in terms of property safety.

Those who take it up on rent have to care for the property and keep it clean.

So, on the one hand, you are able to make money, but at the same time, it does not harm the property.

This is, therefore, a simple solution to make money and also one of the fastest ways.

3. Sell Old Furniture & Other Old Items

Over the years, we often end up with series of products that we don’t use anymore.

These range from old furniture to books and many other knick-knacks.

The result is that they keep crowding your storage space without any real purpose.

You have to take care of those, and yet they do not serve any good.

Well, this can be one of the fastest ways to make money.

Are you surprised by this proposition?

Well, the fact is you now have a host of websites that offer to buy your old stuff.

From your unused mobiles to antique furniture, there is demand for every kind of used items.

Even electronic goods, kitchen appliances and other day to day products are bought and sold here.

The advantage is you can get rid of stuff that you don’t use anymore.

On the other hand, it also helps you make money conveniently.

This then becomes a simple way to make some additional money on the sidelines.

The advantage is you are actually profiting from getting rid of waste items.

So in tennis parlance, it is an advantage all.

Moreover, your products on these websites come with a guarantee.

There are sufficient visual references of the exact property.

So there is no doubt about the genuineness of the property.

As a result, there is never any doubt about demand.

There is always a steady flow of customers for these products.

This works as an advantage for sellers too.

Just by associating with these websites, they get a brand of credibility.

Needless to mention this goes a long way in maintaining steady money flow.

4. Teach Yoga on Weekends

You have always practiced yoga but did you realize it can also help you make money.

Special skills always come in handy in this type of scenario.

Let’s say you have a demanding job through the week.

So you do yoga to distress on weekends.

But you happen to have a large garden in front of your house.

You can easily convert your weekend sessions into a group affair for nominal fees.

As a result, you now have a steady income source without too much effort or difficulty.

You are continuing with something that you have always loved.

Now you are also earning money from the same.

Skills like yoga training is a very specialized art.

You do not have too many trainers with proper credentials.

So there is always a high demand for those who can deliver.

For you, it will be at no additional cost.

At the most, you may have to hire a community hall if you do not have space at home.

But it becomes a simple and one of the fastest ways to earn extra money.

But at the same time, you have to make sure that you market your product effectively.

That will help attract a maximum number of interested candidates.

You are not even disturbing your daily schedule.

You can continue with your day job and also make money.

5. Organizing Birthday Events

This is again one of the fastest ways to make money using your talent.

You have always enjoyed organizing your son’s birthday parties.

Be it the choice of theme, the elements you incorporated and the games you chose, it is a real hit.

As a result, you often have friends and family approach you for help.

Now have you ever thought you could even earn money this way?

In fact with so many event organizers mushrooming up, this provides a simple option to many.

Event organizers operate on a large scale and are often not able to personalize small demands.

The cost involved can also be prohibitive.

But on the other hand, your solutions can be thrifty, attractive and easy to execute.

Once you begin to market it properly, you can easily start making money.

Most of these events are not undertaken on a  daily basis.

So your daily routine is not disturbed in any way.

But at the same time, you are able to make money on a consistent basis.

Another reason why this is one of the fastest ways to make money is because of the simple turn around period.

You do not need any previous experience and resource.

Once you can deliver and get a few orders, your enterprise is up and running.

The capital that you have to invest is also fairly limited.

You can always take advance from the clients and execute on a set budget.

This gives you much better control of your profits and the deadline that you set.

In short, you are able to make money by simply furthering your favorite hobby aggressively.

6. Online Virtual Tutoring

This is an interesting and among the fastest ways to earn money.

If you have an expertise on a particular subject, you can easily put that to work.

There are several websites where you can list yourself as an online tutor.

The interesting bit is that these are like open marketplaces.

Just like the buyer and the sellers, the teachers and students meet online and decide on a mutually conducive time for tutoring.

The virtual medium gives you the opportunity to choose any hour that you are comfortable with.

Your student may belong to a completely different country

But that is no problem at all.

The internet makes sure that you are able to function without a hitch.

You are able to make money quite simply and add to your earnings.

Listing with these websites is advantageous as they help to connect with more credible and genuine players.

Your earnings are also relatively more secure.

The chance of a theft or a scam is also fairly limited.

As a result, you can conveniently use your talent to make money.

This is also a legitimate opportunity where you do not have worry about foul play.

It is not just one of the fastest ways to make money but also a secure option.

7. Baby Sitting

When you are looking at the fastest ways to make money, this is one of the options.

Parents and individuals all over the world are constantly looking for reliable babysitters.

The crèche may not be an option for all.

Some prefer full-time nannies more.

There are many websites like care.com brings parents and interested candidates to one platform.

As a result of this, parents can easily go through the resumes of the candidates listed on the site.

Since the website undertakes all types of due diligence, there is relative credibility.

When the chances of scams are less, they also do not mind paying a little higher billing rate.

So it is one of the convenient and fastest ways to generate revenue.

Also once you make a name for yourself, it is never difficult to get potential clients.

The feedback and the review segments make sure that you get continuous opportunities.

Word of mouth too helps those who are good with their work.

As a result, this is one of the fastest ways to make money consistently.

This is also a far more reliable and legitimate way to make money.

8. Dog Walking

Now did you know this is one of most popular and among the fastest ways to make money?

Given the hectic demands of our urban lives, caring for our pets is often a challenge.

However, given the loneliness of our urban lives, the pets like dogs are amongst the necessities.

But caring for them and taking them out for walks can be time-consuming.

So what happens when dog owners do not have time.

They seek the services of professional dog walkers.

These dog walkers get paid for walking dogs on other’s behalf.

Dog walkers operate locally or even through website listings.

The pay is quite good in this case, and it can be easily a convenient part-time engagement.

Needless to mention that this is one of the fastest ways to make money.

It is not just among the fastest but also absolutely legitimate.

You can take up weekly, monthly or longer-term contracts.

Conclusion

Therefore, there are many channels that can help you make money.

The trick is to identify the right niche for it.

It can be something as simple as cutting down debt to negotiating a better salary.

We have listed some of the fastest ways to make money for long-term.

These are not just the fastest ways to earn money; they are also sustainable.

However, if you like to achieve the real financial freedom, then do your best to start with the right program.

Click Here to follow the best program ever.

Cash Flow Management Strategies for Your Business

Cash flow management is among the top most challenges for any entrepreneur.

The simple fact is that it is not just sufficient to get funds to start a business.

One must look at ways to create a steady flow of funds that is necessary to keep the business alive and sustain day to day running of the organization.

It is after all important to remember that effective execution is the only way to make a great entrepreneurial idea succeed.

For that reason it is necessary to keep the finances in place.

Almost 75% of entrepreneurs agreed that cash flow management remains their top challenge.

In fact, study and many leading StartUp data reveals this.

Nearly 47% entrepreneurs consider personal finance stress as primary.

They admit to having either faced the issue or continuing to face it for an extended period till the time business stabilizes.

Cash Flow ManagementAn entrepreneur’s personal finances and the cash flow management at the startup are very closely tied up in the initial stage.

Therefore, one can only fathom the importance of having an effective cash flow management for the proper functioning of business.

Do you know what is the second most common reasons for businesses failing or companies being forced to shut down?

Inadequate cash flow management and running out of sufficient funds.

Detailed study of over 100 startup failures indicates this.

The problem most time is that while gathering funds could be an uphill task.

But spending it efficiently and wisely is a greater challenge.

The importance of this can be well understood by the fact that most entrepreneurs consider gaining expertise in accounting and finance as a crucial element for recording better success.

As Tim O’Reilly, founder and CEO O’Reilly Media once said,

“Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations.”

The fact is that ‘cash is king’, after all, your employees need to paid regularly.

Therefore, it is true about all the rent and the long list of monthly payment outgo that you would have.

As an efficient entrepreneur, you need to keep no stone unturned in ensuring that your business remains a well-oiled machine run with the cash that you are able to generate.

The Problem Areas in Cash Flow Management

You would realize that most businesses or entrepreneurial ventures that fail are often.

The reason is that they are not able to manage their cash flow better and hardly.

They are not able to generate desirable returns.

The two main reasons why this happens is because:

  • Often entrepreneurs set unrealistic targets for the projected cash flow management from a start up. They invariably overestimate the projected income and underestimate the extent of expenses and payment outgo that they need to meet up on a daily basis to keep the business running effectively.
  • Another key reason is the fact that entrepreneurs often are not able to gauge the extent of cash shortage that they might face. This is because of a poor or no proper cash flow management strategy As a result they are forced to suspend operations to balance out the input and output of funds and the overall debt equity ratio that the business is based on.

In this context, one fundamental problem is perception, especially about cash flow management and profitability of business.

Let us understand very clearly that profitability is never same as generating cash flow. It is always important to remember that:

Profit is essentially the difference between the expense incurred and the income generated.

It is invariably based on the numbers recorded when the sale is booked and when the expense is calculated and is never on actual payment received or bill paid.

Cash flow in comparison is the difference between the actual inflow and the outflow.

As a result cash flow goes on to include either working capital infusion that an entrepreneur may resort to or any other type of debt financing that the company has to go through to ensure the smooth functioning of the business without any possible break or stoppage.

Ways to Project Cash Flow Management

That surely brings us to the next port of call in the cash flow management trail.

It is about how exactly do you need to project cash flow to gain a reasonably realistic estimate and not compromise the business basics of your organization either.

One of the simple approaches would be to stick to actuals and project only what can be realistically assess.

So this includes:

  • The actual cash in hand- your personal savings, money in hand and actual bank account balance
  • List out the anticipated fund inflows including customer payments, debt collection, earnings from interest and money that the company might earn from its investment
  • The next logical step after this is to list out the outflow as well in equally detailed manner. This should account for monthly salary payroll, overhead payment, tax liability, possible debt payment and also possible liability from future tax obligations
  • You must also list out the future expenses that you might have to incur like investing in new machinery, expenses for creating brand awareness and other marketing initiatives.

Once all these elements have been accounted for, your next step involves putting them in an excel sheet in a proper order.

This facilitates regular assessment and update of the same without any kind of problem and harassment in following of a proper cash flow management strategy for your business.

– Cash Flow Management Software

As a first time entrepreneur, you can even look at taking advantage of the many interesting and easy to use software that are available for easy accounting.

This regular updating is crucial as it will keep you abreast of any negative cash balance that you might register.

You have to remember that even a small amount of negative cash balance can be a huge problem for the business and in no situation can the business run smoothly with negative cash balance.

The regular accounting helps you to stay on top of this problem at all times.

In fact in the interest of your company’s long term gains, it pays to be exceptionally conservative in this aspect and keep the inflow estimate on lower than expected levels and projected outflow at the higher end.

What this instantly seeks to achieve is a small buffer that will help you tide over possible exigencies that you might face during the course of running the business.

Remember ending up with negative cash flow almost invariably means loss of business, trust and credibility and that is a big ‘avoid’ for a startup trying to buy a successful business model.

Another effective tool to rein in your cash flow management is tracking the actuals.

Compare and contrast the projected numbers with the actual cash flow as and when required.

This will not only help you stay updated on the company’s business but also help you gain a realistic idea on the expected level of cash flow from a specific function or endeavor.

This kind of exercise also goes well in helping entrepreneurs learning from past experiences and creating better buffers for future transactions.

Better Cash Flow Management

So that brings us to the fundamental aspect that what and how should you go about following a cash flow management strategy in your firm to create a strong gateway for future successes.

The two main aspects are managing the receivables better and organizing the payables in a clear manner to ensure that there are no major slip ups.

1. Tracking Your Receivables

1) Remember that in most businesses, you are never paid instantly and that by far, is the most important reason why cash flow management problems come to foray at all.

This is exactly why effective tracking and management of receivables is so important.

The trick is to create some easy to implement and effective alternatives to ensure better flow of the fund that you expect to receive.

2) You can begin by offering discount to customers for faster payment of bills.

3) Make deposit payment mandatory while placing orders.

4) Do away with outdated inventory that might result in greater fun outflow than inflow

5) In the case of non-cash paying customers, accept orders only after a thorough credit check.

Remember it is always better to have one customer less compared to having a problematic customer.

6) Make it a practice to issue invoices as soon as you accept orders and follow them up meticulously for faster delivery of receivables.

This will ensure that the pace of receiving payment will rise instantly and bring in better fund inflow.

2. Payables

The next challenge, therefore, is that you also have to organize your payables in a way that there is no sudden and urgent outflow and every month the payment and inflow happen in a well-regulated fashion.

Putting in a proper system facilitates not just better cash flow management but your company also gains by avoiding late payments in many instances.

This also helps in keeping a check on expenses.

Remember there is no room for complacency, and if not reined in on time it will only result in a bigger gap between inflow and outflow leading to future cash flow trouble.

Just like in case of receivables, create a system for payables too.

Pay close attention to the terms and conditions put forth by the creditor and take advantage of them in every way.

For example, if you have a 30-day period to make payment don’t strain your resources to pay in 15 days.

If you have a 90-day credit period, then organise your payables and receivables in a way that one accounts for the other without unnecessarily straining the system.

Also, try to extend retaining funds as long as possible.

For example, if you make an electronic transfer of funds closer to the due date, you will be able to remain current with suppliers without stretching your resources too much.

In case you are facing any financial crunch, try and communicate with your suppliers about potential extension of your credit till a new inflow comes in.

In this way, you can manage both ends without straining the cash flow management situation.

Don’t always fall for discount offers without paying attention to details.

Go through every possible and minute detail of the deal to ensure that your outgo is never more than estimates with or without discount.

Your reputation matters a lot in taking forward the business.

Therefore, it is extremely important that while you manage your expense, you do not cut corners that are crucial.

So settling for the lowest priced supplier is not a great way to go about doing business all the time.

Perhaps what you need is a supplier who delivers reasonably priced goods with a more flexible payment schedule.

How to Handle Cash Shortage?

Let’s say that despite all your precautionary measures, you still end up with a certain amount of cash shortage.

How are you going to handle that situation?

Speed is one of the best keys to addressing this situation.

The sooner you are able to identify the problem point the better prepared you can be about dealing with a potential shortage.

Even if you have to borrow or take a loan from a bank, it is much better to apply for it well in time rather than being a hand to mouth borrower.

When you apply well in time, you give the impression that you are a well-planned entrepreneur with a foresight about future needs.

That leaves a good impression with a banker and gives them greater assurance of recovering a loan as compared to somebody who applies for a loan today and needs money today as well.

Bankers in general are wary of putting their money in such initiatives.

Another key to creating a healthy cash flow management is creating effective channels of communication with your suppliers as well as customers.

If you are anticipating a credit crunch, try and convince your suppliers to extend credit period.

You can even request your customers to make urgent payment at certain times to tide over the potential crisis.

Resourcefulness is the other name for effective entrepreneurship.

Therefore, you need to look for all avenues to generate money and have the proper cash flow management strategies.

You can even consider raising funds by leasing machinery and office furniture to tide over any sudden crisis.

This also highlights the entrepreneur’s commitment towards the venture’s success.

Organize your bill payment effectively as well.

Sometimes what happens is that you pay smaller amounts and larger bills keep pending for a longer duration.

And suddenly you can be faced with a severe crunch in terms of cash to tide over these payments.

Therefore, it is a much better idea to be organized and regular in bill payment and plan it as per your needs.

Conclusion

In short, cash flow management is literally the backbone of effective entrepreneurship.

Proper cash flow management strategies provide the source of sustenance to take forward a business over the long run and work out efficient strategy to ensure flawless execution of the entrepreneur’s dreams.

Efficient cash flow management strategies are also an indicator of a well balanced and a well-managed business.

As a result, an entrepreneur on the back of good cash flow management can aspire to look at attracting more investment towards further expanding their business.

Financial Success and How to Achieve It in Life

Financial success is a mirage that we all look for.

Whether you are highly qualified or an average clerical worker, whether you come from a big town or a small one, almost everyone you will see is hankering for financial success in some ways or the other.

Of course, the manifestation and the goals that they strive to achieve would be different for different types of people, but the tryst for a better financial stability is omnipresent.

That brings us to the key question, why do you need financial success.

The fact is being financially successful helps you achieve some key targets.

These include:

Security: It kind of makes you feel empowered in taking up any challenge, after all, there is very little that money cannot buy.

It makes you feel more powerful in terms of taking care of your loved ones and preparing better for future comforts.

Money often also allows you to pamper your loved ones in terms of getting the best for them in every possible manner.

Stability: It would not be wrong to say that financial success also brings in a degree of stability in your life.

When you know that you have access to adequate resources to fulfill any type of need of your family, it surely puts you at ease.

Sufficient money also removes any type of uncertainty that you might have to worry for otherwise.

As somebody once said to me, ‘Money cannot be everything in your life, but it sure is something rather important.

Comfort: Access to greater financial resource means you can surely have a better life.

From a comfortable house to comfortable car to better lifestyle to enjoying more amenities, the possibilities are endless.

Better financial condition always ensures that you can have a more comfortable life than you imagined.

In terms of material happiness too, money can often mean a lot more of all of those.

More Time: Money no doubt helps you buying a lot more amenities, gadgets and help if needed.

This means that you do not have to spend your time dealing with the daily chores too much.

This frees up time for you to pursue a lot of personal work or to pursue a hobby and the like.

This means that you can use your time better and also use it for knowledge enhancement.

It would not be therefore wrong to say that financial success is as much about material joys as it for inner happiness.

When money gives you the resources, you can also indulge a lot more into various charitable opportunities that might come your way.

In many ways, this means that you can guarantee a lot more inner peace once you are able to pursue your dreams without any limitations.

It makes you become a better individual and often helps you create opportunities for many other deserving people who might not have access to the type of financial resource that you have.

Financial Success Means Financial Freedom

How To Achieve Financial Success?

The question that would next come to your mind is how you can achieve financial success?

Well, obviously you know why you need financial success now so it is imperative to understand how you can go about achieving it.

Well to put it very simply, you cannot achieve financial success overnight, and it is only a gradual process that enables you to achieve it.

A step by step procedure, as the saying goes, ‘many drops make the ocean, many pennies makes the pound’.

But the trick is not to lose the drive in between and go ahead with greater and better precision.

1. Need to Set Targets for Your Financial Success

This no doubt is the first step to any great mission in life.

Your journey to achieving financial success begins from here.

You need to establish clear and achievable goals.

This, no doubt, is the most crucial part of your financial plan.

In very basic terms it often is the exact amount of money that you must earn within a particular time period.

This goal then helps you undertake a real-time analysis of the time you need to achieve the goal.

You can then set and then you can tweak your overall investment and earnings plan in a way that offers you the maximum benefit.

When you talk about setting up targets, there are three types essentially:

  • Short-term targets
  • Mid-term targets
  • Long-term targets

While your short-term goals will be about the financial needs that you might have immediately, within a year or so, the mid-term ones are spread out over 5-10 year time range.

They can involve anything from higher studies for your children to a bigger house or even your personal vacation outlook.

The long-term ones inevitably involve your retirement plan and even a house perhaps where you want to settle down post retirement.

The reason you need the financial goals or targets is primarily.

Because this helps you understand how much money you need to set aside every month to reach your target.

It also guarantees your financial success despite your current earnings.

By communicating your goals and setting aside targets, you can work towards achieving them a lot more efficiently.

It gives you the leeway to provide for urgent emergencies without disturbing the overall savings plan that you might have outlined.

Setting Goals Toward Financial Success

2. Take Stock of Current Situation

This part of the financial plan goes hand in hand with the overall target setting and goal setting aspirations of an individual.

The moment you set your target, you need to understand how much you earn now and how you need to allocate it.

Often when you are making regular savings, there are times when you forget to value the savings thus far.

Most importantly what you save in comparison to how much you spend and the liabilities that you must fulfill.

This net worth assessment will put the overall financial situation in relative scale.

Then you can gauge how much you need to set aside in reality.

You must remember that you cannot look at your savings in isolation.

They need to be seen in relation to the overall mortgages and other loan liabilities that you might have.

When you calculate your net assets minus your liabilities, it gives you a true picture of the financial state you are in.

If this amount is positive, then you can look to add to it going forward.

However, if the net worth is 0 or in a negative zone, then you have to rework your finances in a way that you can address this aspect at the very beginning.

3. Cashflow

You are highly mistaken if you thought that cashflow is a condition that only entrepreneurs need to worry about.

Just like cash flow is indispensable for running a business smoothly it is equally important for running a family and your house smoothly.

Of course, in the context of your personal savings and household savings, cash flow denotes a detailed structure that determines where your money is spent every month.

First and foremost, you have to calculate the exact amount of money that you have to spend every month.

More often than not, it is seen that instead of a cash crunch problems, most who are undergoing financial distress is essentially symptoms of overspending on credit card and dealing with credit card debt.

As a result of this, your ability to save would also get crimped.

Therefore, once you put down your actual needs and resources on pen and paper, you can assess the relative inflow and outflow of money better.

While the income or inflow of cash would essentially be the salary that you earn but it can also comprise of

  • Alimony settle cash inflow
  • Child support
  • Earnings from investment
  • Rents from property that you might own
  • Gifts
  • Government benefits

The next step no doubt involves understanding your overall tax liability on the inflow and how you can reduce this in case it is too much.

Often the lack of proper financial planning not only impedes your financial success but also increases your tax burden.

Savings also in that context could often be considered as an expense in your cash flow condition.

While you might not be spending the money but by setting it apart, you no doubt also limit its ability to be spent on any other purpose going forward.

4. Create a Plan for Savings & Spending

So once you get a relative idea of the overall cash inflow and outflow accurately, you can draw up the plan for savings and spending quite effortlessly.

This plan needs to be broad and extremely comprehensive.

It should account for everything, from how much you want to save for old age to how much you spend on clothing, just about everything is covered in this Spending-Savings plan.

One aspect that you should not forget while making this plan is the golden rule of financial success.

Your expenses should in no way exceed your savings.

This even includes the overall savings that you might be having and the money you are setting aside for that.

For starters, you could begin with a cash flow worksheet.

In case there is a negative cash flow in the worksheet, you could make adjustments as per the need.

But when you are looking ways to close the gap in the negative cash flow, ways to increase your income is not just about reducing expenses or savings; it could mean something more than that too.

Sometimes it could be about increasing your income too by taking up a part time job or putting up a property for rent as well.

You could even look at managing expenses like looking for value for money phone connection services or buying various day to day articles at a cheaper rate from local deals at departmental stores.

But remember that your plan is as good as you follow it.

For making it work as effectively in real life as it looks on paper, you need to exercise strict financial prudence.

You also need to ensure that you follow the plan on paper very closely to the last T.

According to Robert Kiyosaki, financial success is not the matter of how much money you make.

It is the matter of how much money you keep which is income to expense ratio:

5. Emergency Savings Plan

Often you would have noticed that a sizeable chunk of your savings might be eroded away because of some sudden emergency.

You never plan for these, but the fact is that when they do come upon us, it can severely erode the overall savings plan for the long run.

In many ways, this could severely hamper the overall financial success that you might be looking for.

Therefore, apart from the regular savings that you might have planned for, it is very important to make an allocation for any sudden emergency that might come your way.

This emergency fund always comes handy for accounting for expenses that come up suddenly.

In fact, most financial experts say that this emergency fund should be sufficient to support at least 3-6 months of living expenses for an individual.

Another fact is as this expense is never planned for; you must always use a savings instrument that can be accessed without delay.

It is also important to choose the investment instrument that does not invite any penalty payment for early withdrawal.

Therefore, you don’t just need to plan an effective emergency plan but also the one where there is a minimum liability if you end up using it.

6. Direct Deduction

In the context of creating effective channels of savings, it has always been observed that savings is always more effective and efficient when it is done through direct deduction.

You could opt for an electronic transfer from your account or even the ones that have the facility to submit post-dated checks.

What this ensures is that you are forced to follow a certain degree of fiscal prudence at any cost.

Whatever your monthly outgo might be, your savings would not be crimped.

This is important to ensure that today’s problems do not hamper tomorrow’s plan as well.

Conclusion

The golden rule of financial success is therefore all about achieving financial discipline in our daily lives.

It often entails that you must follow a strict and disciplined approach that you have to ensure in a firm.

Remember while you might not have employees to pay to, you still have your house expenses to cater to.

Unlike entrepreneur, in your personal finance sphere, you never have any angel investors to bail you out crowd-funding alternatives to tide over emergencies.

You should be keen, alert agile and extremely flexible in making alterations and adjustments in your finances depending on the requirement and the demands of the time.

You must never be too rigid in your plans and the choice of the financial instrument for your savings is as crucial.

Do not just make a savings in some financial vehicle because someone suggested.

You must give it a deep thought, research well about the alternatives available for you and then only make a choice.

This will ensure that you are able to balance both your income and expenses in a way that you can provide adequately both for your future and present.

Your financial success is completely dependent on your skills in managing your funds effectively.

Passive vs Nonpassive Income and How to Have Both

When you look at the various income sources, you can broadly classify them into two categories.

These are passive income and nonpassive income.

The moment you think of a passive source, you could consider any form of business or earning where you do not have to be involved on a day to day basis actively.

Nonpassive source of earning, by definition, points to any kind of activity where the level of initiative or activity is more pronounced.

Often the difference and debate about passive and nonpassive income is seen in the taxation perspective in a most pronounced manner.

The rate of tax that you pay is often dependent on whether you have passive vs nonpassive income.

The US revenue department, in fact, has incorporated several tests to identify whether a source of income is passive or nonpassive.

Passive vs nonpassive income have a direct correlation to the amount of tax that you pay.

Additionally, in many ways, it impacts the exact amount of income that you can hope to generate from a profession.

It also often decides on the career path that you eventually zero in on.

Definition of Passive income

Passive vs Nonpassive Income and How to Have BothIf you look at the classification made by the tax department, there are broadly three main classifications of income:

  1. Passive income
  2. Active income
  3. Portfolio income

So, what exactly is meant by passive income?

As the name suggests, it is any income where you are not actively involved.

So, it could be the earnings that you could generate from a rental property or for that matter, a business where you have a limited partnership.

You are not actively involved in the day to day running of the business and have no material involvement in the overall running of the business.

Even for that, portfolio income is considered as passive income by some analysts.

The argument is rather simple.

The dividends and interest that you earn are often without your direct involvement in the entire procedure.

Of course, you might have worked hard in getting the portfolio created but beyond that, the market forces come to play, and an individual’s role is almost non-existent.

If you notice the recent trends, passive income has often been used rather loosely in the modern perspective.

The most basic derivation is any regular source of income where you have little or no role beyond the conceptualization part.

Most times, when people seek to adopt a better-quality life, devote more quality time to family, this is seen as the most convenient arrangement.

You work from home on your own terms, and that is often the biggest pull for opting passive income.

While it might not be something as effortless as a lottery win every time, but surely the capital gains that you incur can be termed as passive.

But if you are trying to classify these from the taxation perspective, then passive income has a relatively more precise positioning.

For example, it does not include a lot of online work from home in that category.

Therefore, a very technical definition of passive income would be any kind of earning where there is no material involvement of the taxpayer.

So, material involvement becomes the key point of consideration when you are trying to differentiate between passive and nonpassive income.

Perhaps this is the reason that often instances of self-charged interest and situation where you earn profits from shares issued to you as an incentive is termed as passive income.

Here are some basic income options that get termed as passive:

1. Property Income

When you go on to define passive income, this is perhaps the most popular format of income that is considered.

Whether you own a commercial property or a residential one, any income that gets generated through these channels will be termed as passive income.

However, it won’t be considered passive if you are a real estate professional actively involved in buying, selling and leasing of property.

Though this income is not strictly passive in the IRS book, you can surely claim the advantage of the passive income loss rules if the property happens to see a depreciation in value.

In the taxation terminology, all holdings in land and otherwise is termed as active or nonpassive income.

2. Self-Charged Interest

Essentially this is the income generated from the interest that is accrued from a partnership or a corporation.

This is a business arrangement that is often undertaken to nullify the impact of double taxation.

So, the interest accrued is seen as a pass through impact that gets taxed as passive income.

Also, care has to be taken to make sure that the loan proceeds too are used for the passive activity.

In simple terms, this is a unique situation that refers to the kind of income that you might gain through a chain of passive involvement or rather lack of involvement in a business venture.

3. Why You Would Choose Passive Income Options

Often when you are trying to figure out the difference between passive vs nonpassive income options, the benefits of each individually comes to play do proper justice to the overall concept.

As we discuss passive income options, let us first understand their benefits:

1. This arrangement makes an investor take maximum advantage of the available tax deduction.

This is because when an individual claims loss on a passive income avenue, they often have the deductions offset against the taxpayer’s overall tax claims.

The earnings of consecutive years are also sometimes taken into consideration for arriving at a reasonable tax computation.

2. Moreover, a tax paper who is involved in multiple passive income avenues has the option to group all of these into one large unit.

Then the IRS would not count your material involvement in each of these activities individually.

On the contrary, they will be able to project their involvement in one economic unit that groups all these passive activities together.

This is particularly important in terms of how the tax liabilities are computed in the overall service profile.

Tax Deduction Advantages

The reason being the grouping activity helps you to claim the various tax deduction advantages in the most beneficial manner.

In case it suits your purpose, you can also look at keeping them ungrouped as standalone entities.

It is a kind of business arrangement that is aimed at bringing about the most sustainable value addition to the overall service profile.

Most times, passive income opportunities are more an extension of the individual’s need to generate multiple earning avenues.

As against popular notion, passive income is not just a chosen channel of earnings for retired persons or aged people.

Often, those at the pinnacle of their professional career could look at exploring these opportunities to value add to their existing income opportunities.

However, the concept of passive income strictly in the IRS terms is not exactly how you would consider the options in the practical terms.

It is needless to mention that if you intend to take the maximum possible advantage of this opportunity, you must understand the tax implications very clearly.

Definition of Nonpassive Income

Now that you understand what is passive income, it is time to understand the comprehensive details about what constitutes nonpassive income.

You must understand that just by referring to it as nonpassive income, you cannot term it as active.

In fact, nonpassive opportunities can be

  1. Active Income: This will include the likes of salary, daily wages and the like
  2. Business Income: This is essentially the earnings generated from a business or an investment where you are actively involved

In general, nonpassive income comprises a significantly large number of active income opportunities.

Here there is no via route to get your earnings.

Your income is directly related to the overall work you are doing.

In other words, you are doing something and getting paid in return.

That is also what you would think is active income.

So, while nonpassive income is not equal to active income, this later one forms a very important part of the former larger group.

Without it, the core concept of nonpassive income cannot be judged or considered adequately.

Therefore, it needs to be seen in appropriate perspective.

It is worthwhile to understand in this context that nonpassive income is taxed differently from that of passive income.

You cannot use the losses incurred in one to offset the losses incurred by other type of income.

So nonpassive losses and income cannot be used to offset passive income and losses and the vice-versa as well.

This is particularly important when you are trying to offset losses in a business operation.

However, you must remember that while passive losses can be carried forward, in the case of nonpassive losses, it needs to be settled against income in a specific year.

The concept of carrying forward does not function here in any way.

So, it would not be wrong to define that nonpassive income is essentially a full-time job.

You are putting in a lot of effort and then seeing the returns from this in the form of the income generated through it.

Whether you are in a business or a service, as professional is almost always in control of the nonpassive income that they generate.

It is common sense that if you put in 8 hours of work, you will surely earn more than what you would from 4 hours of effort.

Also, not all nonpassive income opportunities are office based either.

You can also be home and be part of a non passive or active engagement.

One of the best examples of this might be the job of IT professional.

Given the advancement in technology and the easy access to internet, a lot of IT professionals are working from home.

They are doing so to spend more quality time at home, but their earning is directly proportional to the hours they are putting in to get their job done.

In contrast, if you see the role of an app developer, they surely put in effort in developing an application.

But once that is built, and they have sold it for a profit, it ceases to be a nonpassive income destination.

It instantly becomes a passive income opportunity.

They are at that point of time not actively involved in the amount of money they are earning.

Neither are they in control of increasing it as per their requirement.

Till they are negotiating for the right price of the app, this is an active income destination.

But the moment they have got the money in the bank and start enjoying the interest, it is a passive income.

However, if they used the money they earned to develop a new application or used this income to start some new venture, this will again be counted as nonpassive income.

The point here is that whenever we discuss passive vs nonpassive income opportunities, the quality of your participation becomes the crucial and the biggest deciding factor in the entire game plan.

In fact, in the entire differentiation process of the two distinctly different income opportunities, it is the engagement level that makes all the difference in the core profit that is earned or loss that is booked.

Therefore, the involvement in any venture is a primary factor to consider.

Material Involvement in Passive vs Nonpassive Income

Often when you set out to differentiate between passive vs nonpassive income, material involvement is a key term that you often come across.

I think this is one of those unique terminologies that needs to pe explained with an example for better and deeper understanding of the various income formats.

Let’s say I am an investor.

I decide to invest $30,000 in a business initiative, perhaps a mom & pop store at the corner of the locality I stay in.

But I have no time or understanding of the business. So, I find out someone else who runs a similar store but is in need of fund.

I get an agreement from that person that they would pay me a certain percentage of the profit in return for the money that I am investing in.

This earning would then be classified as passive income.

So essentially this means that as long as the investor is not actively involved in the overall business operation and has no role in its profitability apart from providing the money for it, it gets counted as passive income.

As an investor, I do help the owner manage the same store, my earnings would then be termed as nonpassive income.

According to the US tax department, any situation where the overall involvement is beyond mere capital payment would be termed as nonpassive or rather active income opportunity.

One of the simplest examples to understand the difference between passive vs nonpassive income is perhaps the difference between a venture capitalist and a limited business partnership.

The VC firm involved with a company is very actively involved in the running of the business, they oversee the various business decisions and often have a very important voice in board meetings, etc.

But in comparison to this, when you analyze the role of the limited partners in a business and the income they get, it would be considered as passive income in entirety.

Apart from the money they have invested in the company, they have no material involvement in the entire operation of the business.

Therefore, material involvement is often the catch phrase that seeks to differentiate between passive vs nonpassive income, especially for taxation purposes.

So how exactly the tax department seeks to make this differentiation.

The IRS terms an involvement decidedly material if it exceeds involvement of 500 hours in a business where you are invested.

The minimum hours of the range are seen at 100 hours at least.

In other words, the IRS terms any business activity where you have participated for at least 100 hours as material involvement in the entire business.

Therefore, there are some clearly defined rules that will help you grasp material involvement in a business with relative clarity.

More than the actual implications, this is material from grasping the resultant tax implications of this arrangement.

1. The overall individual participation of a tax paper needs to be above 500 hours on an annualized basis.

Often, this will be counted as material involvement that can actually bring about a meaningful difference to business profitability.

2. This essentially comprises the business activity by the group of investors who are not direct owners in the business.

3. However, a taxpayer’s 100 hours of participation in a business can also be termed as non-passive, in case no one else participates for longer hours than this specific individual, who has put in 100 hours.

Therefore, it is very important to identify the entire business activity in relative levels.

4. In terms of total tax computation and difference between passive vs nonpassive income, it is also important to see the period of this material involvement or active participation.

So, on an annualized basis, it can be 500 hours a year but it is also important to calculate the number of years that this has continued.

It is needless to mention that both the individual levels of participation, the group activities and the groups in which the entire list of passive activity is considered all make a huge difference to this core concept of material involvement.

Ultimately, it is the material involvement aspect that seeks to differentiate between passive vs nonpassive income, at least in terms of tax computation and overall tax liabilities of an individual.

Basically, the material involvement is the IRS’ way of understanding about how substantial is the quality of your overall involvement in the entire business activity.

1. What Is Passive Activity & Loss Rules

That brings us to the other important aspect in understanding the difference between passive vs nonpassive income.

What exactly is passive activity? Let us understand this concept with the help of an example.

Let’s assume you have a rental property, the income generated from this source comes to be termed as decidedly nonpassive income.

In the case of a loss, the taxpayer can then claim losses against income from these passive activities.

You cannot look at offsetting this loss against your active income channels.

Though it is possible to pursue both these opportunities simultaneously, a taxpayer needs to be extremely careful about how they put up the claims and tax liabilities.

In case if you cannot offset your entire passive loss in one year, you can also carry it forward in future to get a comprehensive and complete deduction.

This is a direct fallout of the passive activity loss rules.

It is only pertinent in the case of those income opportunities where they are not materially involved or active engaged.

The moment you are not able to substantiate claims of the passive engagement, or if your material involvement is higher than the predefined standards, it comes to be termed as active involvement, and your tax liabilities get computed accordingly.

So, if you are not able to stay within the predefined boundaries of passive income, you cannot claim deductions on the basis of the passive loss rules.

So, while the colloquial definition of both the income opportunities often merges into each other, in the tax department’s rulebook, there is a clear demarcation.

A proper understanding of this demarcation helps you take proper advantage of the tax deduction.

2. Is Portfolio Income a Passive or Nonpassive Income?

However, there is one more avenue to explore before you understand if you can pursue passive income and nonpassive income simultaneously.

That is the grey zone called portfolio income.

The debate on whether it is a passive or nonpassive out is not completely settled.

Often the income generated from portfolios can involve significant engagement in the initial stage and almost next to nothing involvement in the later phase.

Therefore, this is an opportunity where you do some bit of both of these.

Essentially portfolio income refers to Portfolio income refers to the kind of income that you earn from the various investment that you might have made.

It could also comprise of dividends, royalties and capital gains that you might have earned.

While you may not be working too hard for this income at the moment.

It is important to understand it is not possible to create a portfolio with passive investment.

At some point of time, you would have had to put in significant work to create a reasonable investment portfolio or create a music album from which you can earn the royalty.

Identifying and having a clear sense of what is passive and nonpassive income is very important.

This is because most taxpayers tend to lose money by not being able to categorize their business in the appropriate channel.

After all, nonpassive losses cannot be offset against passive income and the vice-versa.

Therefore, inaccurate categorization of these different income opportunities can severely impact the kind of income and losses that you have to report every year.

This is particularly important to understand because while passive losses can be settled over a few years, active losses need to be settled within a particular financial year that they have been filed.

3. Pursuing Passive and Nonpassive Income Simultaneously

Therefore, we come to the basic point we started this entire article about- can you pursue them together? Yes, it is possible to pursue passive and nonpassive income opportunities together.

But you need to be careful about how you compute the taxes for it.

After all, we all want to take advantage of the best tax saving opportunities, and often an inaccurate analysis of these two different income options could severely impact your tax liabilities.

So our advice is to get in touch with a good CA with an in-depth understanding to help you tide through this.

They will be able to help you understand how to work out your income and liabilities to and take advantage of the maximum deduction.

This is also an important consideration when you think about the future prospects and your need to create a comfortable retirement kitty.

After all, you do not want your retirement money to get eroded paying passive income taxes because you were not careful or clear about the various distinction between the two.

Passive vs Nonpassive Income

Essentially the debate between passive vs nonpassive income reaches a definitive point with the term ‘material involvement’.

This will define how actively you are engaged in generating the income.

Apart from determining how much income you generate through the level of your engagement, the ‘material involvement’ angle also has very serious implication on your overall tax liability for a year.

The passive and nonpassive income have different tax computation rules, and that is exactly why you need to be rather careful about how you group your income avenue.

This is particularly useful if you have multiple channels to earn money and you would want to consolidate them and conserve maximum gains for yourself.

After all, who pays the tax department willfully?

But yes, it is possible to pursue both these forms of income simultaneously.

For example, when you write a book and put in an effort to write a book, your material involvement is in the active segment.

But when the book becomes a success, and you begin to earn the royalty, it is passive.

But in case you are constantly updating the contents to make it relevant, or write another one with the money you earn you are simultaneously involved in passive and nonpassive income options.

Wealth Management: Where Do Young Millionaires Invest?

When it comes to modern wealth management, young millionaires have shown us some fabulous ways on how to manage wealth.

Imagine yourself waking up tomorrow as a millionaire.

What would you do with your money and how would you manage it?

Apparently, it seldom happens when you are both young and millionaire at the same time.

Sounds like a dream come true, right?

Yes, indeed; finding yourself as a millionaire is something that you would always want to happen.

Achieving a millionaire status is like a dream come true to many of us, yet this position brings in a lot of responsibility.

Especially, how to manage your wealth, so your financial stature is not hurt in any ways.

Wealth ManagementThere are a plethora of distinct ways to achieve this financial stature and it takes real wealth management efforts to reach here.

A recent statistics from Capgemini Consulting noted some unique ways through which these young millionaires manage their wealth.

In order to achieve their goals, many young people are investing money to build a strong business, yet few kiss the summit.

Research has proven that these young millionaires seem to be more conservative unlike their boomer counterparts and like to hold on to their wealth.

They are less prone to invest their money in stocks and more likely to stack up cash while investing in other alternatives.

Here we will go through some savvy tips how young millionaires invest their money and it may be helpful for you to achieve your goals faster.

When someone attains a high net individual stature or HNWI, media covers their part of the journey.

However, seldom we can learn about the ways how they did their wealth management.

What Is HNWI?

Let us learn how young millionaires invest their money so you can attain your goals if you are thriving to become the next HNWI.

We all want to achieve the HNWI status, however, do you actually know what HNWI is?

As per the World Wealth Report by Capgemini, a person having investable assets worth $1 million and even more is a HNWI.

This has to be excluding the consumer durables, collectibles, his primary residences etc.

Reports suggest that over the last 8 years, this specific sector has doubled and apparently, the growth is robust.

In the US alone, it has grown upto 7.8% counting to 5.2 million people in 2016 on the contrary to 2015, where it was merely 2%.

The potential growth of these millionaires leaves us wondering how wealth management advisors cater to their needs.

People are keener to seeing how the advisors manage the wealth of these millionaires.

Young millionaires have a completely different perspective of managing their wealth.

They have different needs and a new perspective of how they will do wealth management unlike before.

Especially, those who have played with risks such as opening a venture, investing in real estate or even investing money in the markets.

They just do not blindly make investments like their parents or predecessors did.

How Young Millionaires Behave? Their Wealth Management Perspective

You would find it really interesting to notice the divergence of these young millionaires compared to their parents.

Young Millennials are able to rank higher and keep demanding more from their wealth management advisers.

They just do not show a blind eye to the advisors like their predecessors did.

Younger millionaires exhibit less trust in their wealth managers and have less confidence on the entities they represent.

This shift in their attitude has emerged as a threat to most wealth management advisors.

Planners have realized the threat and are forced to bring a change in their strategy of conducting their business.

However, this is actually a good thing to happen considering the dubious ways they did business before.

What Young Millionaires Want from Their Wealth Management Planners?

Wealth management is a service sector and needs to focus sharply on the needs of clients, not on the gains of a planner.

The planners now are adopting new technologies, unique meeting process and are getting specialized on the client’s needs.

This is in order to stand out from the rest and deliver what these young HNWI fellas are looking for.

These young millionaires frankly deserve this level of service.

Young millionaires are more demanding and they require sophisticated wealth management services.

Millennials are thriving for a robust digital experience, nothing short of it.

They want their financial advisors to understand their needs better and are ready to let them go, in case they fail.

Millennials have high propensity of hiring a new advisor if the existing one is unable to satisfy them.

Young millionaires want to stand out unique from their counterparts.

Hence, they have very specific and unique wealth management needs.

They consider their financial stature as more complicated and think it has a global scope.

They look out constantly for wealth managers who has a thinking of everything on a global scale.

Young millionaires never shy back from hiring other field experts to achieve better customized services for their needs.

They prefer low costing, robust digital experience services from their planners.

They prefer expert wealth management teams having the leverage of automated investing strategies to outpace others.

Young millionaires keep a track of four specific concerns.

Rise in educational costs.

Well-being of their family should anything bad happen.

Higher education Access.

Easy availability of Credits.

How Young HNWI Invest Money and Do Wealth Management?

Young millionaires are nowadays doing the opposite to what they did before.

Most young millionaires took calculated risks prior to amassing wealth, which eventually, paid off.

However, when they achieve a good financial stature, these risk players become risk averse.

This may come to you as a surprise since entrepreneurs are generally risk players.

When they see good amount of cash stashed in their accounts, their attitude towards risks changes.

They begin to realize how hard they worked to enjoy this financial success they are having now and not ready to lose it.

The perspective towards their money and risk attitude changes substantially.

Wealth management is completely different and varies from people to people.

However, some of the common ways young millionaires do wealth management are as follows.

Stashing Cash Is One Wealth Management Process

You heard it right.

Young millionaires like to stash up their cash.

Although, it is true that they do not earn anything on this, but they still like to keep it liquid.

They have a peace of mind upon keeping liquid cash in their account.

It also keep the doors for new investment opportunities open.

According to the research, 17% of young millionaires think they can pounce right away on to new opportunities if they have liquid cash.

Another 31% of young millionaires claimed that they can enjoy the lifestyle they want only if they have liquid cash.

It includes vacation expenses, shopping expenses and fine dines whenever they want to.

However, people who worries more on paying off their bills and debt may not have the similar perspective.

Nevertheless, the motivations of millennials keeping cash isn’t that distinct from the ones who look forward to doubling their cash flow.

Capgemini study reported that 28% young millionaires think stacking up cash is a preventive measure in times of volatility.

This actually related to the study which shows that young millionaires are risk averse.

They do not like playing risks with their cash savings, inspite of the fact that they may not need the cash soon.

Greg Popera, a private wealth management advisor associated to Merrill Lynch said keeping liquid cash comes with a cost too.

When you don’t invest on real estate, stock etc, you are actually depriving yourself from potential higher returns.

It is important to invest some part of savings into bonds, stocks or other investments so you don’t miss out on high yields over time.

Tax Efficient Wealth Management:

There is an old saying, ‘the more money you have, the more problems arise’.

Storing up loads of cash does not signify that you will face no problems.

They might change pattern and can get bigger at times, for example, taxes can bring in problems for you.

Making investments in municipal bonds, Roth IRA, real estate, insurance etc. can help ease these taxes.

It will in return make a good, tax discounted investment portfolio.

Start-Up Investment: A Good Way to Wealth Management

A young millionaire can understand how hard it is to proceed with a start-up.

Those making money from this scaling, starting and selling journey understand just how complicated it is.

They express interest in funding private start-ups both financial as well as strategically.

However, due diligence and proper analysis of the start-up should be done to protect the money.

Real Estate Investments:

Even if it is a bit risky, but investing in real estate is also a good wealth management strategy.

You can benefit from real estate investments such as cash flow, depreciation.

Spreading Bets Is a Good Wealth Management Strategy:

As for the investments, young millionaires do not believe in investing towards any single avenue.

Almost 30% of young millionaires keep their assets with wealth management planners.

They help young wealthy to construct good portfolio by investing into stocks, bonds and other avenues.

However, a sheer 40% of the portfolios are divided into less popular investments like real estate, a venture or other alternative avenues.

Financial planners say that these investments, which include gold, hedge fund etc. behave different to that of a stock market.

The stock market of Britain plunged when it announced leaving European Union, however, gold prices soared high.

Likewise, investing into real estate is creating rental, steady income not dependent to their business or stock markets.

Investing money to businesses or start-ups can lead to potential returns when the company performs well.

However, since these come with risks, young millionaires invest only 13% of their money compared to that of liquid cash.

Consulting with Friends and Researching on the Web for Better Wealth Management

Coming to wealth management, young millionaires look out to take family and friends help alongside researching on the web.

Unlike their older generations, they do not straight away hire professional help.

Compared to 27% of all aged millionaires in USA, only 17% of young millionaire assets are with professional financial planner.

TD Ameritrade reported that 28% of young millionaires take friends’ help on the contrary to 15% seeking professional financial help.

Tej Vakta, senior leader with Capgemini Financial services says young millionaires do not rely on conventional wealth management.

Young millionaires want their wealth management professionals to offer online services so they can track their wealth real time.

Millionaires of all ages now are demanding more for online services unlike before.

On the contrary to 49% in 2015, 67% of millionaires this year demanded online services like robo-advisors.

Investing with Purpose Is Very Important for Wealth Management

Besides boosting their investment portfolio, many young rich people now intend investing for social causes.

They want to ensure their bucks are going to the socially responsible companies.

They look forward to investing in companies that does social welfare such as climate change.

This is also called socially responsible investments, offering aid to companies that work for a cause.

They also ask wealth managers for the exclusion of sectors such as alcohol companies, gun manufacturers and tobacco manufacturers.

Investments such as mutual funds, exchange trading funds, which offer similar avenues are on the verge of rising.

A Bank of America unit, U.S. Trust reported that since 2015, this intention of social investments to make impact is on the rise.

34% Generation X and 60% of young investors started the use of social impact investments since 2015 regularly.

Richard Dale Horn, senior VP of UBS Financial Services stated these investments as Feel Good Investments.

However, it is important to evaluate that you don’t end up investing huge on a single sector.

A proper balance is necessary for better wealth management.

Using Buckets Is a Good Wealth Management Process

A proficient wealth management expert can inform you that it’s not all about the money you have.

What impacts is how you spread out your money.

This specific concept of investment is known as diversification.

It is not just confined to your 401K mutual fund investments, but leaves impact here too.

Young millionaires never rely on one Investment Avenue and look forward to making several investments.

This include bonds, stocks, equities etc. alongside non-conventional investments such as Real Estate.

You can find the best usage of Buckets in the real estate investment sector.

They can hold on to REIT, otherwise known as Real Estate Investment Trust and general regular income not relying on their own business.

This regular income helps in purchasing smart avenues to grow more money and setting up small business to further diversify.

The most lucrative part of using Buckets is that you are diversifying your risk and not have to face a Bernie-Madoff scenario.

If you see one bucket not performing well, cut it off right away and look onto the others.

Young Millionaires Are Curious on Wealth Management

Millionaires under the age of 40 very well understand how important it is to have a wealth management expert.

When you achieve the HWNI or millionaire stature, you presumably have an efficient lawyer and CPA with you.

However, they are always curious and reluctant to listen to only one person’s decision.

Young Millionaires like to know more and never get tired of searching for alternative solutions.

Millenials take the help of family, friends and the internet to leave no stones unturned.

They are always hungry and in a hurry to skyrocket.

Bottom-Line: Road to Wealth Management

There are undoubtedly tons of ways to become wealthy and perform better wealth management.

You can create your company, or invest like Warren Buffet or even create a successful app.

However, what is the common message you get?

Regardless of the fact how you create your money and become wealth, smart planning is what helps you survive in the long run.

I have come across many people who became wealthy, but they eventually lacked proper planning.

You can be the winner if you can leverage the immense power of smart wealth management planning.

It will assist you in shaping your financial life and do proper wealth management in a way that lets you do everything you want.

You can have fun in your life, go after your dreams, help the society and take care of everything that matters.

Wealth management got nothing to do with planning.

It begins with your dreams, high hopes and goals.

Your wealth management planning is simply the roadmap to realizing your goals and ensuring all your dreams come true.

The Best Money Saving Apps to Save Money on Everything

The tryst to save money is omnipresent, whether you go for grocery shopping, garden supplies or designer outfits.

What if you had a money saving app that could guarantee your savings every time you buy.

Well if you thought it is only possible in your imagination, think again?!

Think about all those apps that promise your discounts and cash back.

Now isn’t that savings?

Well, quite a lot of it actually but it is only incremental and over a point of time.

So patience is a keyword here.

We decided to make the task a lot easier for you.

What Are the Best Money Saving Apps?

Money Saving AppsMoney saving apps are the apps that you can install on your phone to get discount or cash back when you shop.

Here is a list of the 10 best apps to save money that are also extremely convenient:

  1. Mint
  2. One Receipt
  3. Goodbudget
  4. DebtTracker Pro
  5. Amazon Local
  6. Expensify
  7. Ibotta
  8. Shopkick
  9. Compare Booking
  10. Best Parking

1) Mint:

Save Money with Mint AppIt is one of the most practical money saving apps.

It is this single app that enables you to keep track of all your financial activity in just one place.

Whether you are looking at your savings or checking your retirement details or want to check your cash flow, it has several security aspects.

It is password protected and you can even deactivate it from your phone from the website in case the phone is misplaced.

It is compatible with most smartphones.

Mint is almost the most popular money saving app.

But it is a lot more than just an app that helps you save money.

It helps you manage all of your financial activities.

Mint enables you have all of your bills and payments in one place.

It helps you not to miss any of the payments due.

You can pay your bill in one go without having to login to several different sites.

This saves you time and money.

It saves time because it makes the payments a lot easier.

It saves you money because you lose money on late fees.

For example, the credit card companies charge you when you don’t pay your credit card bills on time.

The good thing is that Mint is a free money saving app.

Although it is free, it does a lot of things for you that you never have time to do them on your own.

For example, sometimes you are paying a lot of money for the things like your credit cards, mortgage and loan.

Even you are paying more tax for some reason.

Mint finds the same services with a lower fee and enables you so save hundreds of dollars every year on the same services that you have been receiving.

Or, it helps you pay less tax and save a lot of money on your tax.

2) One Receipt:

Many times you want to keep track of all your receipts and control your costs, but invariably you seem to be misplacing them.

This is a very handy money saving app that helps you do exactly that.

It keeps track of all your paper and digital receipts.

In this way, you will ensure that all your receipts are in one place and there is no chance of misplacing them.

You could easily download this app.

However, it is sad to say that they have shut down the site, and so their money saving app is not available anymore for some reason.

3) Goodbudget:

Goodbudget Is One of the Best Money Saving AppsThis is often considered one of the best money saving apps.

This one allows you to sync all your budget and expense plans across devices.

So whether you are saving to buy a new couch in your living room or your husband is making the calculation for a trip to Europe, this one allows you to sync everything together and save the money as a group.

It is compatible with most Android and iOS devices.

As a strong money saving app, Goodbudget can be used for free.

However, by paying $5 per month or $45 per year, you can have unlimited accounts.

You can also have the app on 5 devices and have access to 5 years of history which is great.

4) DebtTracker Pro:

DebtTracker pro Is a Good Money Saving AppLosing control over your debt is often the reason for losing most of your savings.

Though available only for iOS enabled devices, this one is a cool application that can chart out both your savings and debt in a lot more constructive manner.

This money saving app can help you pay off your debt and also help you effectively overcome your financial problems.

You also have visual reminders that help you get a realistic picture of how far you are from your financial goals or how much you have covered in terms of overcoming your financial challenges.

We all know that getting over your debt can be a rather uphill task, but this one enables you to tackle the problem better and route your savings more effectively.

What I can’t get over is that why this app doesn’t have website and is only listed on App store.

The current version of this strong financial app that helps you save a lot of money on everything, has a 4-star rating which is great.

This money saving app is not free and you have to pay $1.99 to buy it.

5) Amazon Local:

Amazon Local Helps You Get a Lot of Discount Everywhere.Another popular and widely used money saving app is the Amazon Local.

This app enables you to look for various deals while you are on the go and search for deals real time.

When used effectively, you can save as much as 75%.

You also have the option to set up specific choices and preferences as per your needs.

You don’t need any specific coupon to take advantage of these deals.

Just buying it through this app will activate the deals for you.

This is equally effective on Android as well as iOS and even Kindle Fire.

Unlike the above 4 apps, Amazon Local is not a financial management app that manages your payments, debts, bills and… .

It is an app that helps you find the best deals and discounts around the area you live in.

This app can save you a lot of money because it helps you pay a lot less on the products and services you need.

Amazon Local even helps you get so many freebies.

It seems Amazon Local is also discontinued and Amazon doesn’t support the service anymore.

6) Expensify:

If you travel a lot for business or otherwise or you are perpetually on the go as in the case of sales persons, this is a very convenient application.

It keeps a record of any receipt that you would have got, records various travel expenses and many other related services.

Moreover, this app can read a paper receipt so do not have to feed in details manually, saving a lot of effort on your part.

7) Ibotta:

This too works both on IOS and Android and helps you get rebates or discount.

It simply takes a photo of your receipts and depending on what you signed up for, helps you take advantage of the various discounts and deals available.

You can also use the various promotional packages that could be available for consumers.

8) Shopkick:

Available on both Android and iOS phones; this application is a convenient money saving app.

Using this app, you can earn points, buy products, ask friends to join your circle and earn rewards by simply walking to a store as well.

This app is so popular that close to 6 million people are using it at the moment and the number is perpetually on the rise.

9) Compare Booking:

This one too is quite prominently placed on the list of best apps to save money.

It helps you compare your bookings across a range of websites and helps you take advantage of the most favorable deals available.

They are effective for searching some of the best bargains on hotels the world over.

The advantage is they compare some of the best known global websites like Expedia.

This, therefore, lends quite a bit of credibility to the entire app’s authenticity and therefore, more and more people are convinced about using it and saving money on every booking they make.

10) Best Parking:

This one works effectively on Blackberry along with Android and iOS.

The interesting bit about this money saving app is that it is very accurate and helps you clock in significant savings.

It gives you ideas about the cheapest and the closest parking options.

In the case of any inaccurate report, they even back up their services with a Starbucks gift card worth $5.

Therefore, people find it as an extremely credible option to look for parking especially on a crowded weekend when everyone is out and looking for parking options close to their destination.

These money saving apps, therefore, can help you get real time gains across a wide range of products from grocery to parking.

Most of these are very effective across operating software like Android and IOS and even Blackberry at times.

This enhances their user friendliness and the convenience associated with the applications.

How to Save Money Fast and Easy

The question, how to save money, is a prime issue for almost all of us.

However, ways to save money is what keeps becoming elusive.

Increasingly, the tactics of saving money seem more difficult, and the extent of your savings never seems to meet your target.

So the question, therefore, is how to save money effectively?

The trick is not to save a lot more money but save it in a manner that can reflect the result in a more pronounced manner in your overall balance sheet.

How to Save Money Fast and Easy

Here is 12 ways to save money fast:

  1. Keep Your Savings in the Bank
  2. Do Your Research
  3. Clear the Clutter
  4. Don’t Spend Your Bonus
  5. Discount Coupons
  6. Look at Making Gift Rather Than Buying It
  7. Stick to Your Shopping List
  8. Save Money on Utility Bills
  9. The Savings Instrument
  10. Start Paying off Debt
  11. Time Your Shopping Sprees
  12. Pay Attention to Your Health

How to Save Money Fast and EasyOne of the best ways to save money is to set a target first and then ensure you stick to it.

The problem is often not in setting a goal but rather a goal that is realistic.

It often happens that we randomly fix a savings goal without giving a lot of thought to it.

As a result, it is either a very small amount or a rather large amount.

It either falls short of your savings goal, or your savings goal is rather inadequate.

So the answer to, how to save money fast is often about how to save money effectively.

There are some key steps that you must follow to realize this:

  1. You must be careful about setting a savings goal.
  2. Now your savings goal should not be any random figure.
  3. You must make a careful calculation about your future expenses, current savings and arrive at a reasonable number.
  4. Once you decide on the savings target, it is important to stick to it.
  5. Decide on how to meet your savings goal. It is always a good idea to keep aside small sums of money every day or every week.
  6. If you keep postponing savings till the last moment, invariably you will fall short of your target.

Saving Money with the a Realistic Vision of the Future and Also the Present Possibilities

Therefore, the easy ways to save money is always about systematic savings made with a realistic vision of the future and also the present possibilities.

This is how effective goal setting can go a long way in enhancing your savings in a constructive manner.

This method of savings ensures that saving money never becomes a burden on you and you are able to always add to your savings little by little.

The smallest of money that you keep aside can often yield great results, thanks to the laws of computing.

Additionally, it is very important to maintain disciplined savings record.

It is not sufficient to just calculate how much money you need to save; you have to work towards ensuring that you actually do that.

One of the best and most sustainable ways of savings is being strict with yourself and not allowing any leeway for potential slip ups and any kind of shortcuts.

Discipline is really a cardinal word in both creating a savings target and also sticking to it.

Once that is done, we guide you on some simple ways of how to save money.

1. Keep Your Savings in the Bank

Keep Your Savings in the BankWe all have a different approach to savings. Some prefer a piggy bank, and some could be comfortable in stashing them aside in their safe. But keeping your money in the bank is one of the easiest ways to save money.

Not only is your savings more secure there and not prone to theft, but a bank also allows you to enjoy several perks and helps your money grow.

Even the basic type of savings account will yield you a certain minimum interest.

So the smallest penny that is added to your account is your gain.

Moreover keeping your money in your bank account would mean that this savings is accounted for and you can also use a part or whole of it to claim tax benefits and many other facilities like bonus for new customers and the like.

You can easily compare all the available alternatives that you might be having and go ahead with the option that is best suited to address your needs.

Also in case, you have an account, it always helps to look out for other bank accounts that might offer a more attractive interest rate or better terms of operation if you save your money with them.

The trick is to keep your eyes and ears open all the time.

2. Do Your Research

One of the best and fastest ways to save money is to do the research on your own.

Do not just go by the herd mentality.

Do not go and invest in a particular savings instrument because your neighbor suggested so or perhaps your brother earned a lot.

It is always important to do a thorough research on your own and decide the most effective channel of savings your money on your own.

Think hard about all the possible savings tools that are available to you and then take a call on the kind of returns that each one offers.

It is always wise to go for an option that offers the best possible returns from your perspective.

Do not just choose a savings tool that others might have used.

Remember that one man’s poison could be another man’s cure.

That is the advantage of doing your own research.

Not only you are more in control of how much return you can earn, but also this gives you a better idea of the kind of instrument that you need to choose to get the kind of returns that you require to save money in a better and more efficient way.

3. Clear the Clutter

Save Money on Garage SaleSome of the best ways to save money are not always about keeping money aside.

You can also save money by clearing away unwanted things and clutter around you.

Sometimes you would realize that you might have 3-4 old mobile phone sets that you do not use any longer but are in good shape.

So stop stacking them any further.

It is always a great idea to go sell them to people who might need it and are looking for some.

Thankfully, you have many websites now where you can sell used products.

Not only does it help you in clearing clutter but using the money to save more.

Another list of products that fall in this list is the collectibles.

I am sure, over a point of time you might have accumulated many such collector’s items too that you do not require any longer.

It is a very good idea to take stock and get rid of these at the earliest.

It helps you in clearing the mess and also earns some money from investments in past that hold no value anymore for you.

Often this whole exercise also helps you take better stock of your needs and expenses.

One of the other ways to make and then save some free cash is selling the relatives’ and friends’ things that they don’t need.

You can ask them to give you the things they don’t need, from the gardening tools and machines to toys and shoes and clothes.

You don’t have to tell them what you want them for.

Just tell them that you need the stuff for some reason.

They don’t need those stuff, so they don’t care.

Then you can sell them online through the sites like Kijiji and Craigslist.

It becomes a lot of money.

You can then save it in your bank account.

4. Don’t Spend Your Bonus

Save Your BonusOne of the biggest ways to save money would be to save all sudden lump-sums you get.

What do you do when your company pays you a bonus?

How do you spend a big amount that you got as an inheritance or may be a savings maturity?

Well, the guide to all those sudden windfalls that you get is quite simple.

You should just go ahead and save it.

Look at the most effective means of saving this money and invest it there.

Do not use this amount for spending.

Remember your spending and expenses were being taken care of even without this additional amount.

Moreover, it never helps if you think you will spend now and save later.

Just imagine how much return the money that you spent now could have yielded in future.

There is no limit to spending, but savings almost always get side-stepped.

This is exactly why when you get a windfall or sudden inheritance, the best approach is to re-invest and enjoy the returns that the principal yields.

It is never wise to use up your entire principal and save nothing for the future.

5. Discount Coupons

Save Money with CouponsIf you are planning to save money, keeping money aside every month is not the only way to save it.

Let’s get one fact straight.

Savings is a lot about cutting down expenses also.

Keep a note of the various discount coupons that you can avail of and the many reward programs that you would qualify for.

While you might not realize it on per spend, but the fact is all these small savings that you make on every set of purchase will eventually add up to your net savings in the long run.

Moreover, the benefit of your reward programs is that this is not just a one-time savings.

For every purchase that you make, you earn loyalty points, and these can mean significant savings over a point of time when the time comes to redeem these points and cash in on your savings.

It can often surprise you about the amount that can add up when you keep saving little by little.

Look for deals which allow your cash back too.

Probably you do not realize, but even $1 cash back and 100 such transactions would mean $100 gain.

Think how much time and effort is required to save the same amount of money.

This will enable you to then value these savings and profits a lot more than you would have done otherwise.

Additionally, the interesting aspect of these cashback deals is the fact that they mean dual savings.

First, you save by buying a discounted product and next you earn cash back.

Therefore, this always helps you to maximize your net savings.

However, it does not happen overnight.

You have to undertake research, keep note and remember to execute the deals at the right place in the right manner and most effectively as well.

6. Look at Making Gift Rather Than Buying It

Save Money by Making GiftsWhen you are making your monthly expense sheet, have you ever wondered the kind of money that you spend every month in buying gifts every month?

Perhaps you do not realize it, but the expense is quite a significant bit of your entire monthly budget.

Now imagine if you could make these gifts instead of buying, you would be able to do it all in perhaps one-third of the total cost and also better customize it as per the person’s preference you are gifting to.

You serve a dual purpose with this exercise.

Not only are you able to cut down on the expense part but also your gifts become a lot more personal and can make a better and bigger impact.

People would be so thrilled that you took the effort to make them a gift instead of buying just about anything over the counter.

Additionally, making a gift will cut down costs so drastically that for the same amount that you spent to buy one person’s gift will now be sufficient to buy gift materials for 3-4 individuals.

Now add the extra amount to your monthly savings and look at the difference.

You will be surprised by the outcome of this tactic to save money.

7. Stick to Your Shopping List

Of the many ways to save money is about having a disciplined approach in your overall spending.

Have you ever realized how you often end up spending a lot more than you budgeted for?

One simple way to solve your overspending trend is to create a shopping list.

Always ensure that you make a shopping list and stick to it.

Not only will it cut down wastage but also ensure that your expenses stay within budget.

Perhaps you do not realize, but the wastage associated could also be the best ways to save money.

Let’s face it; it happens with all of us.

When we see a particular thing in the shopping mall, we feel that it could be of great utility but when the thing ultimately lands on to our kitchen counter, it remains to lie there for the longest possible time, serving no purpose at all and finally often it get thrown.

So the best way to cut down this additional expense, as well as the resultant wastage, is undoubtedly sticking to a plan and buying strictly according to your shopping list.

8. Save Money on Utility Bills

Using Programmable Thermostats to Save Money on Utility BillsIf you are wondering about how to save money fast, let me reiterate again, saving money is a lot about cutting down cost and in this regard, the utility bills that we get every month play a very crucial role.

Closely analyze your utility bills, be in the electric bill, the heating charges, the phone bill or any other miscellaneous services.

Think about what all expenses you have incurred and make a point by point note of how much money you can save by being careful with your usage.

Simple acts like switching off fans and lights when not in use, using energy efficient appliances and light bulbs, using the dishwasher and washing machine on full load and many such related services can help you make a significantly large saving over a point of time.

It is possible that initially, you might not even take note of the kind of savings that you are making but patience is a key.

Over a longer period, say 6-8 months, you will be able to get a much clearer and distinctly lower utilities bills by observing simple conservation policies.

The added benefit is you are also doing your bit towards reducing carbon footprints in the environment.

One of the best ways to save money on gas is using the programmable thermostats that can save you as high as $200 per month in winter.

You can program it to lower the temperature at morning when everybody leaves until an hour before you return.

It doesn’t make sense to keep the house warm for several hours during the day when nobody is home.

It is the same with your office.

You can program it in summer to turn off the cooler when nobody is home.

Believe or not, but if you do it properly, it can save you several hundreds of dollars every year.

9. The Savings Instrument

The savings instrument that you choose can play a crucial role in your quest towards saving money fast.

While we all know that systematic savings will yield steady returns, I am sure none of you mind a few thousand extra in your savings kitty.

The good news is achieving it is not that difficult.

The only problem is you have to be careful in terms of the instruments that you choose, do a full-fledged research and undertake the complete analysis of the risk associated.

Well, you must have heard that to save money fast, you need to have a higher risk exposure.

The more money you make, the higher the risk exposure goes.

While that is not entirely wrong, even conventional and low risk investment instrument can also yield significant returns.

The trick is tapping them in the right manner and investing in a disciplined way.

You must remember that you need to take a comprehensive view of the returns vs risk ratio.

Only that will be able to justify the exact wisdom in choosing a particular instrument over another one in the long run.

For example, if you choose stocks to save money, look for the dividend paying counters.

In that way, you earn both ways, when the stock price goes up and also the regular dividend that the company might be offering you.

When you choose mutual funds, go for the ones that have given higher returns over 10-15 years period. Do not just choose an instrument because someone suggested it to you.

It is very important that you closely calculate the average returns and also choose an instrument that gives you the option to save systematically in a phased manner.

10. Start Paying off Debt

I am sure that you already understand by now but let me reiterate, the best way to save money is most importantly saving your unnecessary expenses.

Debt in this regard plays a big role.

Think of the amount that you pay off every month as just interest on your debt.

While the principal that you used as loan or credit card expense could serve as instant gratification, think of the amount, you could have saved by not paying the small installments due every year for the past ten years.

Often the amount that you get is huge, and it can be often shocking.

So start the practice right now.

Start paying off all your debt in a systematic fashion, avoid the use of credit card as much as possible.

It is a huge temptation no doubt, but over the longer term, you will only lose more money in that process.

If you can afford expenses of $500 only every month, so be it.

Do not get into the trap of credit cards and incur unnecessary debt.

They are almost the easiest ways to get into a bad debt and questionable financial quagmire in years to come.

11. Time Your Shopping Sprees

An interesting way to save money could no doubt be taking advantage of the sales and buying when you have discount offers.

But the problem is many times, you have to do with improper quality, unsatisfactory designs and as a result, spend a lot more in buying from non-discounted items.

One simple option could easily be choosing to buy just after the holiday season is over.

Demand is unusually low, and often you get great options at a significantly large bargain.

This is often because the season just went past and people would not need any of these holiday supplies right then.

Shopkeepers, on the other hand, have to make do with additional inventory, and they do not mind parting with as many as they can, even on a slight discount.

So while your Easter egg decoration kits could cost the moon, the day before Easter, a day after it is only good for next year and is available at a rather huge bargain.

Therefore, all you need to do is plan ahead and shop in a manner that can help you earn the maximum returns or take advantage of as many offers as you can.

12. Pay Attention to Your Health

In the list of best ways to save money, are you wondering why I am mentioning health?

Well, I am sure you have heard the old saying that talks about ‘health is wealth’.

Well indeed think about the amount of money you can save every month by cutting down your health expenses every month.

You can help save a lot more by paying more attention to your health, conducting regular health check-ups and living a disciplined life.

This ensures that your expenses towards your health are much lesser and savings a lot higher.

Therefore, the best answer to how to save money would be undoubtedly maintaining a disciplined and prudent approach in not just the way you save money but also in the way you handle your expenses.

An analysis would reveal that you can save a lot more money by cutting down expenses rather than trying to invest more than you can afford to.

Moreover, trying to save money in an unrealistic fashion could also result in compromising your current expenses.

So, one of the best ways to save money would be to balance your expenses and investments in a well structured manner with a comprehensive view of the future needs.

Bad Credit Loans with Guaranteed Approval: Is There Such a Thing?

The very mention of bad credit loans often stirs up questions about bad credit score.

This invariably refers to bad credit history.

This means the loan repayment history of the person is questionable.

Therefore, guaranteed approval for these types of loans seems improbable.

However, you do have many bad credit loans with guaranteed approval.

So, the first question is, do these options exist in reality?

Well, it can provide a glimmer of hope for many with bad credit score.

But, their credibility is important or else you can end up in a tricky situation.

Sudden financial expenses or an emergency in the family often leads you to these.

You are in urgent need of cash and have exhausted conventions options.

During those times, the bad credit loans can help you tide over the immediate crisis.

But the point is what is the risk associated with these?

Often you hear about very high-interest rates and many others.

But, most importantly who approves them?

This is important because the type of guarantee also determines your repayment schedule.

Your credit history is often a determinant of the level of risk.

It is needless to mention that a bad credit history always entails tighter payment terms.

Therefore, a guaranteed approval for these loans seems slightly improbable.

But I am sure you have seen many advertisements for instant approval.

Before you rubbish these as a scam, it is important to understand the inside story.

Let’s see how bad credit loans came into being.

What Is Bad Credit?

Bad credit loan is often used to provide loan options to those with bad credit.

So, the question is, who or what is referred to as bad credit.

Normally it refers to individuals with questionable credit history.

A low credit score essentially signals bad credit.

Bad credit is generally an indicator of high risk.

It means that the borrower runs the risk of missing payment.

The creditor also expects a greater rate of default from these borrowers.

There is also a bigger risk of missing payments at regular intervals.

But a bad credit history is dependent on several factors.

So, bad credit loans with guaranteed approval will take these into consideration.

Often bad credit is an outcome of lack of awareness.

The availability of money and timeliness of payment are both necessary.

So even if you have the money but don’t pay on time, you have a bad credit score.

Now, this can be a problem when you apply for a loan.

A bad credit loan can be a solution in these instances.

Normally, borrowers with a credit score below 579 represent bad credit.

Studies indicate 61% of these borrowers are likely to be delinquent.

The range of score between 580 and 669 also possesses moderate risk.

But the chances of their turning delinquent are merely 28%.

However, they too find it difficult to secure loans.

So, the question is how do you get around the problem.

You know you can pay back your loan but aren’t getting any because of the low score.

Sometimes, the bad credit loans with guaranteed approval can be the way out.

What Is Guaranteed Approval?

So the question is what is guaranteed approval?

In any case, you know the credit score reflects the greater risk of default.

How can it be approved then?

Bad Credit Loans with Guaranteed ApprovalWell, remember most of these guaranteed approval options also involve higher APR.

Since your credit score is lower, you will have to compensate the higher interest rate.

The logic is the higher interest will make borrowers more prompt.

While the loan addresses the immediate financial need, the higher APR makes for better repayment.

There is nothing as guaranteed approval.

It is merely a trade-off.

The approval is directly based on the creditor’s assessment.

They weigh the possibility of your repaying the loan and to what extent.

Depending on this basic factor, the approval comes through.

You have to understand that the interest payout is the creditor’s guarantee.

Often borrowers with a lower score can provide collateral for the money.

But, the trade off is that the creditor will take over the collateral in case of a default.

Often, for the borrower too, this adds as a driver for prompt payment.

They want to recover their collateral back.

Moreover, for many with low credit score, availability of funds may not be a problem.

In many cases, the problem is making the payment in right time.

So, in that situation, the bad credit loan with guaranteed approval is the best option.

What Are Bad Credit Loans?

So the next question is obvious.

What are bad credit loans?

In very simple words, these are loans available for bad credit.

It is predominantly a personal loan designed to address individual needs.

If you have a low credit score, these unconventional loans help you tide over the crisis.

There are many avenues to get these type of bad credit loans.

Apart from some typical financial organizations, you also have money lenders.

Online peer to peer lenders are fast emerging as a popular destination for these.

However, the rate of interest for these loans is decidedly higher.

Individuals can get these from traditional financial organizations as well.

The credit score often helps decide the final rate of interest.

In many ways, bad credit loan is a way to provide credit at a reasonable rate.

Bad Credit Loan: Operation Module

What exactly is the operation module for these bad credit loans?

In many ways, that also addresses their guaranteed approval also.

The high-interest loans make perfect business sense for lenders.

This is exactly why they agree to lend to individuals with bad credit score.

A poor credit score signals that repayment is the biggest risk in the whole transaction.

They can either make the payment, default on a few installments or completely forego.

So the lender compensates for all of these eventualities with a higher rate of interest.

So let’s say the lender has 50 customers and ten of these default.

But the money they recover from the rest 40 customers makes up for the losses.

This is only an expectation.

It is possible that these 10 customers also eventually repay.

In that case, the relative rate of profit is much higher.

Moreover, the creditor is able to help the borrower in terms of need.

So, they also earn a loyal customer for the longer term.

The dynamics are quite different when you have a great credit score.

In that case, the relative rate of interest is much lower.

So, the overall earnings from every penny lent are significantly limited.

This is exactly why the operation module of bad credit loan is geared to emergencies.

Additionally, it mostly addresses personal needs.

What Leads to the Need for Bad Credit Loans?

Well, we all want to be in an ideal situation.

We want credit scores above 750 and want sufficient savings in our account.

But that is mere utopia.

The scary truth is almost half of American population has a credit score below 620.

Not just that, almost 60% Americans have less than $500 savings.

So in case, they are in a financial crisis, the options become limited.

Therefore, you can pretty much consider crisis as the key catalyst.

This is what leads people to explore all possible options to look for funds.

Let’s understand borrowers with low credit score have one thing in common.

They have the inability to pay the right amount of money at the right time.

This means that the overall monthly cycle has some moments of crisis.

This is often the juncture where they look for bad credit loans.

Moreover, emergencies can crop up from anywhere.

There is no way you can plan for these emergencies.

But at the same time, you have to deal with them.

At any given point in time, there are a wide number of people with this problem.

Immediate cash becomes the need of the hour.

Most people with low credit scores also have lower savings.

So, these loans are the best option to fall back upon.

However, it is very important to be discreet about your choices.

The terms of your payment and the rate of interest are key monitorable.

You are getting the money in need, but the long-term impact is important.

Bad Credit Loan Options

So when you opt for bad credit loans, what type should you choose?

Well, borrowers have the option to go for secured or unsecured loans.

These generally represent the different degree of risk involved.

1. Unsecured Loans

In this type of bad credit loans, the borrower has to only sign a pledge.

This means there is no collateral associated with this loan.

Your promise or the contract with the lender is the only legal document.

In this case, if you default, the lender can use the contract for recovery.

In several cases, third-party collectors also intervene for loan recovery.

The risk is relatively higher in this case.

As a result, the rate of interest is much higher.

But if you really need money on short notice and do not have other options, this can be handy.

From the borrower’s perspective, this can be a rather tight situation.

Normally the third party recovery agents are quite ruthless.

In many situations, they can even resort to violence.

So that is a major factor that you must take into account.

This kind of bad credit loans with guaranteed approval carry maximum risk.

2. Secured Loans

As the name indicates this is a relatively more secure option.

In this case, the borrower has to provide collateral worth the borrowed amount.

This collateral is basically dependent on the kind of money you are borrowing.

So it can include anything from a car to jewelry and even your house.

This means that the lender can seize the collateral in case of default.

So, from the creditor’s perspective, this offers a lot more security.

The lender has something material to fall back on in case of the delinquent borrower.

So, one of the most common options is the one that you go for in pawn shops.

Risks in Case of Bad Credit Loans

In case of bad credit loans with guaranteed approval, the risk is a keyword.

There is risk involved in practically every element of the transaction.

So how do you deal with it?

Well, think of booking accommodation via a third party website like Airbnb.

There are many risks involved.

You are never sure about how good or reliable the place will be.

So how do you deal with this?

Well, you go for the best possible companies.

You look at relative ratings and customer testimonials.

Based on these, you shortlist a set of options.

Among these, you choose the one that offers the best deal.

In many ways, choosing the right loan option is also similar.

Credibility is one of the key weapons to deal with risk.

Look for credibility in every possible way.

So look out for trusted players and carefully analyze their track record.

Don’t just fall for the cheapest option.

It is always important to go for the best.

Companies understand that you are in urgent need of cash.

But don’t let them misuse your necessity.

At any given instance, you will have a significant number of offers.

But it is important to find out how many are worth following up.

Consider the firm’s reputation and pay close attention to testimonials.

The customer viewpoint is the best signal of consistency.

Almost everyone will promise instant cash.

But, it is important to gauge who will actually stick with the promise eventually.

Look for Loans on Installment Option

This is a very crucial element in bad credit loans with guaranteed approval.

When you are applying for one, payday loans look attractive.

However, a closer study reveals that installment loans have better terms.

The biggest risk in payday ones is the repayment schedule.

The simplest alteration or change can lead to a long drawn out repayment schedule.

Most lenders offer relatively flexible terms for installment loans.

Moreover, your relative leverage is also far lesser in this case.

These installment based loans are more customer friendly.

It is primarily designed in a way that it does not burden your finances too much.

But slowly and steadily it allows you to get over your liability.

Factors to Consider While Applying

You need to keep in mind some basic factors while applying for these loans.

How much can you spare- One of the biggest factors to consider is your repayment ability.

Remember bad credit loans also put you in some kind of obligation.

You cannot take your low credit score as an opportunity to default.

Always make a clear calculation of the amount you can borrow.

This will help you avoid lucrative looking traps.

Often lenders try to lure you for something more than you can afford.

The only way you can avoid it by knowing how much you can spare.

Most genuine lenders will also help you make a rational call.

However, if the lender looks extra generous, it is better to avoid.

Credit checks crucial- Bad credit loans with guaranteed approval does not happen without checks.

If the lender you have chosen says they don’t organize checks, beware.

This will surely land you in a fairly risky situation.

It is always wise to go for players who undertake soft checks at least.

Most importantly, soft credit checks have no adverse impact.

Often a soft check also indicates a lender’s good indication.

It shows that the lender is serious in terms of helping you.

However, it is better to avoid hard checks.

These could be detrimental to people with weak credit score.

Often it can further bring down their credit scores and lead to more trouble.

Look at the Terms of Payment

This is also a very important factor for bad credit loans.

Remember here the terms of payment keeps changing with individuals.

There is nothing in black and white.

So, it is better to go for as clear and flexible terms as possible.

A relatively lengthy repayment schedule is always helpful.

It helps you make adjustments and recover your financial strength.

Always go for lenders with flexible terms of payment.

Even if the rates are attractive, don’t choose players who demand repayment soon.

They are less likely to make adjustments.

This might rob you of the time required to settle down your financial position.

Therefore, Bad Credit Loans with Guaranteed Approval Are Not Completely Fake.

However, the borrower and lender should be both careful.

It is always better to be professional and remember the core fundamentals.

This will make sure you will slip much lesser.

Moreover, it ensures that you can service your financial needs despite the weak score.

Ideally, it is better to maintain a credit score above 750.

But if you can’t and do not have sufficient alternatives, look for options.

Often the bad credit loans can help you tide over emergencies.

But don’t let your emergency overwhelm your judgment.

Always pay the terms and repayment schedule.

That will help you identify reliable bad credit loans with guaranteed approval.

RBC Wealth Management and Whether the Reviews Are True or Not

The RBC wealth management is among the oldest firms offering investment assistance.

They have been in business for over 100 years now.

In fact, they have now expanded operations across the world.

However, that does not seem to be enough.

If you surf the internet about RBC, there are conflicting views.

In fact, several RBC wealth management reviews raise concerns about the billing process.

It seems the fee structure has also raised quite a few eyebrows.

But then again, you think it is a 100-year-old company.

It surely has been doing something right.

How else can it sustain for so long?

So, the question now is how valid are the RBC wealth management reviews?

The current market position is an important consideration.

Given the market situation, a lot more people are interested in exploring the option.

As a result, most are making a beeline for established firms like RBC.

The question is, would that be a valid call?

The RBC Wealth Management Story

Let us first understand what RBC Wealth Management is all about?

The RBC Wealth Management is a global organization.

The business model is created around nurturing relationships over the long-term.

The company calls itself committed to client growth.

Started in 1910, they started steady expansion in the 2000s.

The opening of the London office truly started their global journey.

They moved out from the American continent into Europe.

In fact, this further spurred their onward journey across the world.

Diversifying knowledge and deepening understanding are the key triggers.

They are looking to woo investors with a global mantra for excellence.

Going by the 2013 Investor Satisfaction Index, they are amongst the top players.

On a scale of 1000, they scored 820.

The industry average at this point was 798.

So, as per 2013, the investor satisfaction topped industry average.

The question then is what the basis of this performance was.

How or what led to the performance?

Well, in this context, it is necessary to understand the business model.

Their approach to investors is critical.

RBC Wealth Management

The RBC Approach

If you check RBC Wealth Management website, there are some interesting observations.

Comprehensive solution customized to your long-term wealth plans is the key.

They insist that their wealth management follows unique value creation model.

The client’s personal aspirations and legacy go a long way.

This is how they choose to create a unique wealth management solution.

The RBC wealth management insists personalized strategies are important.

This is how they make sure that they go with the client at every step.

It helps them create a long-term investment approach.

Implementing customized solution is their key to excellence.

Most times, the company allocates customized advice team.

They focus solely on providing solutions aimed at the client’s convenience.

The client’s growth is as important as their wealth expansion.

This is the RBC formula for achieving holistic results.

They have formulated a strategy to help achieve your goals.

Their wealth management theory aims at financial empowerment.

But an important point to consider is how investors are looking at it.

Do the RBC wealth management reviews point to the same trend?

The RBC Approach: The Client’s Perspective

Well, a quick search online reveals conflicting results.

While they might have topped 2013 investor satisfaction index, it is unanimous.

There are, in fact, many investors who are not quite convinced.

While personalized service is a consensus, gains are not.

Many of the reviews point to a questionable performance.

For many customers, they have been worrying about inadequate performance.

In fact, many have expressed their dissatisfaction.

The RBC Wealth Management is primarily a customer-driven company.

The whole success strategy is directed towards creating customer satisfaction.

But unfortunately, the reviews point otherwise.

There are complaints about their customer service and performance.

But, that one question most have pointed to is the fee structure.

A quick review of the top 50 feedback indicates anomaly here.

While most have appreciated the personalized care model, the fee is a major worry.

Most customer reviews call the fees structure unreasonable.

The lack of transparency is the driving theme.

The anomaly of fee structure is a crucial matter to probe then.

The RBC Wealth Management: Fee Structure

Some customers also maintained that they don’t have any fiduciary responsibility.

The other argument is that fees are very high.

It is more a method to fill own coffers.

According to these irate customers, the fee structure is not rational.

They feel the company is overcharging them.

Therefore, it is important to analyze the fees.

The RBC is, in fact, the 10th largest in terms of fees.

It is the top 5 player in Canada as per performance and fees.

The basic rate is $9.95 per trade.

This is irrespective of the trade on the mobile or online platform.

In fact, the trader can undertake up to 150 trades every quarter @ $6.95/trade.

Apart, there is a series of maintenance fees.

This is precisely for those with assets below $150000 across the RBC umbrella.

There are many lucrative packages and deals for customers.

Moreover, you must understand that all investment tools have service fees.

This feel generally handles the expenses with regards to the investment tool.

The expenses include advisory services as well.

The idea is to generate a revenue stream to service client needs.

With over 200 branches across the US alone, they are banking on the volume game.

The Factors To Decide RBC Wealth Management Fees

That brings us to the point about how we can determine it.

Well, you must understand, it is important to understand the company’s standing.

That is why let’s look at the primary parameters.

If you see, the popular perception is that wealth management is the bastion of wealthy.

But, is it really so?

The reality is that it refers to any type of financial service aimed to enhance your prospect.

Irrespective of the client’s financial statements, it is designed to improve your scope.

Hiring the right firm can help create better growth.

A comfortable retirement is the primary objective of the most firm.

Whether you are creating a value-based legacy or preserving wealth, you need these tools.

Often they help protect your future generation from serious wealth depletion.

These instruments also help you create a proper value chain for your future generation.

That is a primary purpose of most wealth management firms.

Therefore, the fee structure is also keenly linked to it.

It goes on to identify how this measures Vs. peers and if you can get more value.

Quality Of Investment Tools

Most RBC wealth management reviews indicate high fees.

But there is no mention of details.

You need to remember that wealth managers are not mere brokers.

The ambit of service is relatively higher.

It often comprises handling the investor’s complete portfolio.

In many ways, the investor’s future is often completely dependent on wealth management firm.

This often includes taxes, bank accounts along with pensions and policies.

This clearly means detailed planning and in-depth understanding is necessary.

Moreover, the competence of investment managers is crucial.

There is also a need to liaison with a gamut of financial market experts.

So it becomes important to take a comprehensive standpoint.

That alone can justify the fees structure.

Extent Of Services

There are some wealth management firms that offer the full gamut of services.

In comparison, there are others with the limited service profile.

You also have to look at this in the RBC wealth management reviews.

Let us face it; all services come at a cost.

A full-service firm handles a complete package.

So, they help you create trusts and manage portfolios.

Naturally, these full-service firms also have to employ quality staff.

It is needless to mention then that these will only come at a cost.

But most high net worth investors would look at the cost as an investment.

It is this quality of staff that determines the success of their investment.

When the toss up is between better investment and higher rates, you will choose the former.

In comparison, a limited services firm often employs a lower level of professionals.

These are software-based and rely a lot on automation.

As a result, the gain prospects here have completely different dynamics.

Perhaps, in context with RBC wealth management, this is a key factor.

Before taking a call on the viability, you need to consider the quality.

It is only natural that the more extensive the service, higher the fees.

So, if the reviews point to the expensive fee structure, look at the services.

It is very important to detail the extent of services that they provide.

Investors should undertake in-depth study of RBC wealth management.

A clear documentation of their services will help investors take a better call.

Compare the services provided and the price paid.

This will highlight the relative cost-return ratio.

That is what goes on to determine the relative success that you can expect.

In many ways, that is the biggest factor.

Commissions & Direct Fees

The relative ratio between commissions and direct fees is crucial.

It often helps you understand the final payout.

In many ways, it’s the key factor in deciding the kind of fees.

This is after all the 5th global asset management firm, in terms of revenue.

It provides specialized services and boasts of deep client relations.

You will expect a degree of transparency to get to this.

After all, a company has to do something right to be voted one of the best global firms.

Undoubtedly, the fee structure plays a very important part.

Whether it is commissions or direct fees, clarity is crucial.

Transparency in this regard also becomes very important.

Moreover, the profile of the target client is also important.

Normally commissions are decided as a percentage of service offered.

A direct fee structure has a fixed schedule of fees.

If you notice the trend, the commissions are a way of luring brokers.

The interest is in their court.

The more they sell, the better they earn.

But here, it is important to notice how keenly RBC is monitoring their advice.

The fee-based structure works out relatively cheaper.

But in this case, personalization is limited.

It is primarily about a common opportunity for all.

The RBC Wealth Management website lists out the fees clearly.

So, as an interested investor, you need to pay attention.

Sometimes, for investors with moderate means, this can be a problem.

Given the extent of their relative principle, the fees appear higher.

Therefore, investors also need to calculate the base on which they are earning returns.

In many ways, that is a crucial context.

Credibility

The wealth management firm that you are considering must also be properly vetted.

It is essential to know that you have put your money in safe hands.

The advantage of full services firm is that they employ certified accountants.

This means that competent professionals take care of your money.

In contrast, you will notice that a limited services firm offers some generic services.

However, the BBB or Better Business Bureau testimonials are one of the best ways.

They provide oversight services.

Often a testimonial here is a very credible account of a firm’s competence.

Moreover, this kind of public vetting also enhances acceptance.

It shows the relative popularity of the firm that you decide to choose.

In this context, it is important to mention RBC Wealth management is not BBB accredited.

Normally, this is an accreditation that companies seek on their own.

If RBC wealth management is not accredited, it could mean they have not applied.

It may not reflect on the credibility aspect directly.

But on the other hand, you must remember, companies have to fulfill BBB requirements.

Only then they can be BBB accredited.

This is more like a mirror for the public.

It helps them ascertain the kind of standing a business has.

So in this context, I tend to question like most RBC wealth management reviews.

Why will they not seek this accreditation?

Does it mean that they don’t fulfill some of the requirements?

But a bigger question is, does it impact your savings?

In fact, the accreditation in itself is also seen as a means to justify this.

It is more like an investigative exercise.

The idea is to identify a potentially strong player.

So a BBB accreditation is surely a great benefit.

But at the same time, its absence cannot be linked to incompetence.

Does RBC Wealth Management Safeguard Privacy?

The lack of BBB accreditation raises one big question.

Does the RBC Wealth Management safeguard your privacy?

How safe are investor details with this investment channel?

That is a crucial element to consider.

The idea of BBB accreditation is exactly this.

No firm will come and say that they don’t protect your privacy.

But at the same time, a BBB accreditation is like a reiteration of the norm.

However, in its absence, it is a valid and a very crucial concern.

That alone can determine the viability of investment in RBC Wealth management.

Honesty of a Firm Is Crucial

As I was going through RBC Wealth Management reviews, there was an interesting point.

Some reviews point towards the honesty element.

The question is when the concern is your money, this is absolutely important.

If you are not even sure about the firm’s honesty, how can you trust your money with them?

Customers have complained about repeated lack of transparency.

They have blamed RBC for not sharing their portfolio details.

Many have highlighted how they are not even consulted.

The question is how a firm can take investment calls on my behalf and not inform me?

Often the exorbitant fee issue can be linked to the relative return extent also.

When the returns are not in sync with the fees you are paying, it starts hurting.

Therefore, honesty is an aspect; you surely need to pay attention to.

RBC Wealth Management Reviews Raise Relevant Points

Therefore, we can conclude that the RBC Wealth Management reviews raise relevant points.

Clarity and transparency are crucial when you are dealing with your investment.

It is very important to entrust your money to a firm that can justify that.

The lack of a BBB accreditation for RBC is a red flag in this context.

However, when you are going through reviews, the investor profile is important.

Remember that HNIs and moderate budget investors have different expectations.

You cannot ignore that RBC has ranked high on investor satisfaction index consistently.

Therefore, I would conclude that they perhaps service a segment of investors lot better.

Invariably the reviews highlight this anomaly.

Therefore, your financial strength is crucial.

You can choose RBC Wealth management for large-sized AUMs.

Wealth Management Fundamentals to Address Your Investment Basics

The term wealth management refers to managing investments.

This is a combination of financial, taxation and accounting advice.

It is essential because this is the single most effective way to grow your money.

Managing your wealth requires some definitive expertise.

Wealth managers sometimes even expand the range of their services.

It also includes the likes of estate planning and retirement savings.

There are many who also advise about philanthropic activities and related work.

So, wealth management is not only investment advice.

It provides a direction to your savings.

You can save with a target in mind.

Wealth managers help you create goals and provide direction to achieve them.

So, it is just growing your money.

Instead, it is about growing your money with a purpose.

You can plan for your immediate needs and future requirements.

Proper wealth management also helps you to work towards financial independence.

It becomes your ticket to achieve self-sufficiency in financial terms.

In simple words, it means a strategy to limit your losses.

It also means a strategy to make your money grow.

Wealth management is essentially a consultancy service.

Depending on their specialization, some offer market strategies while other give investment options.

Primarily, it is advice directed towards managing your money.

That is why it covers some trust operations and insurance services.

The wealth managers guide their clients in financial dealings.

In some organizations, you can have a single wealth manager.

While there is somewhere you will have a host of them serving you as a team.

The Basics of Wealth Management

Wealth Management

So, wealth management is primarily a combination of multiple elements.

It needs balanced asset allocation with a set target.

This normally follows detailed analysis and planning.

A wealth manager essentially has to bring in a happy marriage of all these elements.

So, when we are dealing with basics of wealth management, you need to look at them all.

An integrated operating module will help bring sustainable results.

Appropriate planning leads to effective execution.

The right choice of wealth managers is also crucial.

It enables formulating a sustainable plan with definitive results.

That is a critical combination.

However, the point is how you bring all these three on a common platform.

Well for that, you need to pay attention to how every element connects with the other.

What Is Asset Allocation?

In wealth management, this phrase is quite often.

A rough look at different financial literature can completely confuse you.

So, does asset allocation refer to portfolio adjustment or is it limiting loss?

Of course, it also involves forecasting trend and making the necessary allocation.

It is also important to calculate the return prospects.

The origin of asset allocation is primarily rooted in the growth projections.

Analysts predict growth targets for various asset classes.

Most investors divide their resources amongst all of these as per that forecast.

The expectation is pretty much a combination of all the factors we listed.

So, you want to earn a profit, limit losses and achieve investment targets.

But the reality is, Markets seldom conform to these expectations.

So, asset allocation is never as straightforward as those forecasts.

It is a far more dynamic and complex game plan.

So, investors have to balance these estimates with their targets.

That’s what primarily dictates their asset allocation.

Moreover, market estimates can be broad, but asset allocation is never that way.

Individual objectives solely determine the asset allocation.

A robust allocation takes individual specifications into consideration.

That is a crucial input.

So, you can draw a similarity between balance sheet management and allocating assets.

It is an exercise where an individual adjusts financial liabilities and assets.

Isn’t that almost like a company’s balance sheet?

In this case, mortgages, loans, home expenses are the liabilities.

Meanwhile, real estate, bank deposits, Mutual Funds and other savings are the assets.

Interpreting Liabilities

This could often be the primary roadblock in wealth management.

Yes, interpretation of liabilities in asset allocation is tricky.

While a home loan or a mortgage is fairly simple and straightforward, everything isn’t.

There are some liabilities which are a considerable drain but can be difficult to ascertain.

Ambiguity is the buzz word in this case.

It can be anything like your credit card debt that is snowballing into a huge liability.

It can be something even vaguer.

Even the quality of your lifestyle can turn into a liability.

So, liabilities could even spring from aspirations.

If aspirations do not match with actual capabilities, it becomes a liability.

Let’s say your retirement income permits one holiday a year for next 10 years.

But you aspire to see the world in 80 days.

Well, that will surely become a liability.

The additional expenses create undue pressure on your assets.

So, asset allocation is never about adjusting to market action.

It is primarily about maximizing your portfolio.

Of course, you take liabilities and market estimates into account.

But, this is primarily directed at benefiting your personal account.

Therefore, asset allocation is a combination of strategy and patience.

So, overall liabilities and concerns impact the broad strategy.

Therefore, your asset allocation is also impacted.

But, asset allocation is never a onetime process.

It is a continuous development.

You have to continue making the changes as per the changing dynamics.

Wealth Planning

Wealth planning is the next step in asset allocation.

Essentially this is about taking steps to preserve your wealth.

You have to take into consideration the various eventualities.

Look at the factors that can impact your wealth.

These comprise of tax liabilities, debt and similar eventualities.

The question is you need to make your planning foolproof.

You should not let your investment fall prey to these uncertainties at any cost.

Remember poor planning can completely ruin a great asset allocation strategy.

Planning and asset allocation go hand in hand.

If asset allocation is balancing asset and liabilities, planning leads to execution.

Effective wealth planning involves determining the instrument of savings.

Just like it is important to analyze how much to invest, it is necessary to know where.

So, this is a crucial phase in overall wealth management.

It provides you answers to the where and when of your target investment.

Often the location of your asset and the time you hold it becomes crucial.

Nurturing them properly ensures steady growth.

Wealth planning, therefore, needs you to take a realistic call about future requirements.

Well, none of us has a magic mirror.

You can never predict the exact expense sheet.

But effective wealth planning can help you make a basic estimate.

It will not expose your lifetime earnings to unnecessary risks.

So, it is vital to make these calls on a constructive basis.

Thoughtful wealth planning is not just about anticipating expenses.

It is also about creating a meaningful contingency plan.

Wealth Planning in Asset Allocation

Probably, I can illustrate this point better with an example.

Let’s say you have decided on 80% equity and 20% fixed income allocation.

But does it mean all your investments need reflect this ratio?

Of course, not.

This is where effective wealth planning comes to play.

The overall asset allocation needs to project this bias.

But individually, every tool does not need to highlight this bias.

So, you could be holding only equities in some and only fixed income in others.

But the broad bias maintains the 80-20 ratio.

I am sure; this will help you understand core structure of planning.

Effective planning can also help you avoid misappropriation of wealth.

It helps make sure that your asset remains in safe hands.

Wealth planning can be a safety valve in case of family dispute or business conflict.

Even in divorce dealings, effective wealth planning can help.

Even documents pre-nuptial pacts are effective steps for wealth planning.

Moreover, wealth planning is crucial when dealing with real estate.

Tax exemption and liabilities are also part of wealth planning.

In many ways then, wealth planning is a reiteration of the entire investment goal.

It also keeps a tab on the changing legal scenario.

It helps you to keep a check on your financial health and review it from time to time.

This keeps you alert and aware of the various developments.

Wealth management can lead to financial independence.

But before that, effective financial planning has to provide the key.

It helps maintain clarity of purpose and intent.

Selecting a Wealth Manager

This is one of the most significant factors in effective wealth management.

You have allocated assets, created a wealth plan but all of this is theoretical.

The wealth manager is the person who executes it.

You must understand that nothing is pre-planned in the financial world.

Uncertainty is principally the name of the game.

So irrespective of the plan, the only person who can make it happen is the wealth manager.

So, a wealth manager needs to be dynamic, sharp and spot on with the strategies.

But the tedious schedule has its own challenges.

Perhaps that is why, today, we are seeing sea changes.

Increasingly we see a wide number of managers resorting to passive options.

ETFs, Index funds are seeing very high inflows.

The net inflows to these instruments in 2014  over $200 billion.

In the same period, actively managed funds saw an outflow of over $10 billion.

It is hard to find successful active wealth managers.

In that situation, these passive funds provide a scope for genuine returns.

Especially in the bull market scenario, this can be a stupendous opportunity.

If you are into wealth management, in many ways, this is an hour of reckoning.

This is why the choice of an appropriate wealth manager is crucial.

The realities of the investment world are changing quite fast.

Value more than the method is taking a center position.

The wealth manager has to be dynamic about embracing these changes.

It Is Not Wrong to Be Wrong for Success

When it comes to wealth management, you can say everything that yields profit is right.

Therefore, successful investment managers should not worry about their decisions.

Their investment calls can appear wrong, but if it yields success, who cares.

The tricky market conditions often lead to job preservation techniques.

These wealth managers then work on strategies that help them save their job.

The low incentive for active managers is another key concern.

Investors like Warren Buffett are now taking strong initiatives in this regard.

Berkshire Hathaway is taking significant steps in encouraging them.

The idea is to create long-term opportunities.

The wealth managers should not be buoyed by short-term volatility.

That again means it will be wrong to lose sight of the overall goal.

The incentive structure or the lack of it also creates a significant rift.

Engaging appropriate wealth managers in meaningful exercises is crucial.

That has a direct link to the extent of returns you can expect.

Wooing Assets the Right Way

That brings us to the next most important aspect of wealth management.

How exactly do you zero in on assets?

Historical evidence links wealth management to a degree of contrarian trading.

The market needs to be mindful of the right combinations.

Successful investment decisions are always in sync with basic market understanding.

Most assets price in a reasonable amount of conventional wisdom.

Timing, sentiment and luck play a crucial role in how investments pan out.

Sometimes, they become greater triggers than skill.

Moreover, you need to align the investments to an investor’s objective.

Assets need to represent both value and growth.

Together these also should hold the promise of delivering sustained gains.

This way the assets will remain dynamic.

Therefore, choosing the appropriate asset is a key to effective wealth management.

Creating the right balance continues to be the name of the game.

The Risk Factor in Wealth Management

This brings us to the final most important factor of effective wealth management.

It is the ultimate risk conundrum.

We all know wealth management is all about the balance.

It is about creating the right pull and push between demand and supply.

Therefore, risk begins to play a crucial role in this context.

Well, wealth managers look at risk in absolute terms.

There is never anything relative to risk.

Remember the ultimate goal is primarily to preserve capital.

Wealth management seeks to bridge the customers’ needs to the available resources.

Don’t let your focus shift from value.

Remember the risk is in chasing the trend.

The risk is relying too much on just price mechanism.

Never forget the fundamentals.

Don’t look at relative movement.

Look for the absolute extent of gains.

That is how you can handle risk with a tight fist.

The risk is never about giving in.

It is more about not securing your corners well.

Therefore, wealth management is risk management in many ways.

One of the most important principles is preserving capital.

Come to think of it, how do you do it?

Often preserving capital is all about managing risks.

It is about manipulating the risk element, about minimizing the shock factor.

Risk has to be dealing in a constructive manner.

Remember here again the fundamental laws of leverage come to play.

Wealth management, in this case, is as complex or simple as buying a stock.

You have to assess the risk and provide room for taking in the shock as well.

Also, then calculate the collateral damage.

That should not exceed the income opportunity.

That will then help you get a realistic idea of the profit prospects.

Wealth Management Is a Complex Labyrinth

Therefore, we can conclude that wealth management is a complex labyrinth.

It is an amalgam of several factors together.

That alone creates a harmonious mix of basic elements in investment.

Balance and seamless integration are the primary objectives.

This coupled with steadfast focus yields value.

Often asset allocation is a function of present capabilities and future needs.

The future need can be both tangible and intangible.

It can be quantifiable like child’s education expenses.

But at the same time, it can be aspirational in nature too.

Careful asset allocation with thorough investment planning is important.

The proper selection of wealth managers helps you focus on profit.

It brings in an element of disciplined and systematic risk distribution.

That alone can tilt the risk-reward ratio in your favor.

The fundamentals of wealth management underscore the core principles of investment.

If you want to grow and preserve your wealth, you need to balance these factors.

Effective wealth management incorporates all these factors to create perfect harmony.

So asset allocation, wealth planning and efficient manager are the foundation stones.

They alone can make sure that your approach will lead to effective wealth management.

Stock Market Crash of 1929 and The Lessons You Must Learn

Whenever there is mention of a stock market crash, it is hard not to discuss the stock market crash of 1929.

It is undeniably one of the marquee events in the economic history of the modern world.

In fact, the 1929 stock market crash was the key event that pretty much changed the roadmap of stock market transactions.

In many ways, it unveiled a new chapter in the trading tradition in not just United States but the world over.

Often the stock market crash of 1929 is linked to over-valuation of stocks, stretched margins and an overall euphoric market situation.

The consensus seems to suggest that the markets were overbought when the crash happened in 1929.

After this big market crash, a great depression happened.

Since that time, the economists are talking about it as one of the most famous events in the economy history.

In this great depression, the Dow Jones Industrial Average lost 25% of its value in 4 days.

This market loss became close to $30 billion

The value was equivalent to the total cost incurred during World War I.

These numbers can give you the clue about the huge losses of this potent market crash.

In fact, the 1929 stock market crash was the worst in the stock market history.

What made the crash even more striking was the depression that started soon after.

The US economy experienced a severe depression period in 1929, after the crash occurred.

It was the worst depression as well.

The impact of this massive stock market crash was felt for more than five years.

In fact, the US markets could not revive to those levels till about the 1950s.

That makes us wonder what the triggers of this massive stock market crash of 1929 were.

Why Should We Care About the 1929 Stock Market Crash?

A close study of the triggers can bring to focus the actual factors that further exacerbated the extent of the 1929 fall.

However, the question is why should we learn about the 1929 stock market crash and the similar market crashes and their reasons?

We have to do it because there are some important concerns here:

  1. What if something similar happens again?
  2. Are we doomed to be affected by it anyway and there is no way for us to stay away from it?
  3. Are there any strategies that we can follow to stay away from the disasters like the 1929 or 2008 stock market crash?
  4. Is there any safer way for us to invest and increase our wealth?

When the crashes like this happen, they affect everything and everybody.

However, there are some good and easy ways not to lose everything during these kinds of markets collapses.

You can even not to be affected at all if you know how to make money and invest your money.

This is the main reason of writing this article.

First, I am going to explain why the 1929 stock market crash happened.

Then, I am going to explain about the simple strategies that you can follow to stay at the safe side always.

So please keep reading and make sure to read the last part of this article.

What Is the 1929 Stock Market Crash?

The 1929 stock market crash is the biggest crash in the history of stock trading, investment and economy.

Indeed, this stock market crash began on October 24, 1929.

Eventually, this came to be called as the Black Thursday.

The sheer volume and multitude of the fall were huge, and this overwhelmed the investors.

There was all round panic in the market.

Sorrow, anger and confusion ruled.

Investors were at a loss, the bloodbath in the markets saw no end.

The markets opened at 305.85 on that fateful Thursday, and within minutes, the stocks slumped 11%.

Trading was 3x the average volume, and the onslaught of the bear was hard to contain.

Nothing seemed to help or contain the crash.

The slump had the ferocity of water gushing downstream.

Just about nothing seemed strong enough to contain the crash.

Bankers bought stocks feverishly to contain the correction.

For the moment at least there was some respite.

The Dow Ended the Day down 2%

On Friday as well, this positive spirit seemed to continue, but a short trading session on the following Saturday completely wiped out any reminiscence of that gain.

Then came the Black Monday and Black Tuesday.

The correction intensified further.

Almost every sector was bleeding and screaming correction.

Just about every element in the market seemed to wipe off any signs of gain.

It nosedived 13% on Black Monday, and the following Black Tuesday saw an additional 12% fall.

There was just no place to hide on Wall Street.

The bear run was complete and comprehensive.

The bulls were nowhere to be found.

It is obvious that a stock market crash of this magnitude completely overwhelmed the investors.

There were under the spell of a panic attack, completely confused and did not know what to do.

Close to 16,410,310 shares were sold in this period.

What Triggered the 1929 Stock Market Crash?

But that was a mere description of the saga that unfolded over the 4 days of the stock market crash.

The bigger question still remains unanswered, what caused the stock market crash 1929?

If we scan through the newspaper clippings and various journals of that period, you would feel it was the handiwork of the margin sellers.

Panic- margin calls- short selling made a heady and potent mix and led to the drastic and severe slump on Wall Street.

But if you ask me, that is only the tip of an iceberg.

It is still more of details about what happened that day and how it impacted trading action after that.

But the reality goes deeper.

If you ask me, my biggest question is what triggered the huge 11% drop on Black Thursday.

In many ways, that is where the entire saga began.

This is where the bubble started unraveling.

It was an end of the euphoric run that gripped Wall Street thus far.

A big chunk of the foreign investors was already out of the market.

20% Below Their September 3 Highs

The markets were already 20% below their September 3 highs and investors worried that more was still to come.

There was no guarantee how long the bloodbath might continue.

What added to the mayhem was the speculation that preceded the 1929 stock market crash.

Stock prices had reached overvalued zone, prices were trading many times above fair value zone, and the overall price of the securities was stretched many times.

Finally, the euphoria reached its eventual end, the speculation could not sustain beyond a level, and the bubble burst with a bang.

The Dow slumped, and the selling wave on Wall Street continued to overwhelm sellers.

Even the defensives finally started giving in.

There was absolutely no place for investors and traders.

Whether you were a long-term investor or day-trader, there wasn’t a single avenue left for market players to rest in.

Another major trigger for the severe downward spiral was the heavy liquidation that accompanied the selloff.

After all, a major bubble spread across asset classes had come crashing to the ground.

Starting 1922 the stocks were continuously on the way up.

They bypassed logic, rationale and valuation.

Pure investor greed was driving the markets up 20% every year.

No one questioned this huge upmove.

People took the advances in the market almost for granted.

And finally, it all crumbled to practically nothing on the fateful Black Thursday.

The Margin Buying Cookie Comes Crumbling

One of the biggest reasons that this asset bubble crumbled was the widespread participation in the market.

Almost everyone you knew had invested in the market.

Whether or not you had the money, you could buy on the margin.

People could borrow money and invest on the margin.

Brokers were more than ready to loan you at 10-20% margin.

Given the rate at which the market was progressing, everyone wanted to own a piece of the stock market success story.

Just about no one imagined the stock market crash that finally took place in 1929.

The excessively bullish sentiment in the market resulted in the over-valuation of the stocks.

The prices were stretched to a point where even economic factors were not supporting.

Almost around this point, the US economy was just beginning to show signs of fatigue.

It failed to back up the economic challenges in a meaningful manner.

As a result of this, what happened left the world stunned and traumatized by its sheer depth of damage.

The stock market crash 1929 began with the 11% drop in Dow value on Black Thursday.

Initially, though the damage could be contained somewhat, it was only a lull before the storm.

Over the next few days, a downward spiral ensued in the market that promised to remain for a while.

The trading trend had reversed radically.

From a point where there was no stopping the markets at all, there was a point that even the mention of an upmove could send the markets into a tizzy.

The downtrend on the street continued for a long time to come.

The trend saw some spark of a change only in the 1930s, but a complete revival was not seen till the 1950s.

Key Levels to Watch During 1929 Stock Market Crash

In the context of the stock market crash of 1929, there are some key levels to watch out for.

  1. The stock market peaked on September 3, and the Dow hit a high of 381.17
  2. The total extent of loss from the peak to the trough was close to 90%, 89.19% precisely
  3. The maximum extent of the pain was suffered by small and mid caps
  4. Many small and midcap companies declared bankruptcy after this stock market crash
  5. In the aftermath of the devastating stock market crash 1929, many small cap payers were also unlisted from the market
  6. The Dow regained the Sep 3, 1929 level of 381.17 only on November 23, 1954

The 1929 Stock Market Crash & the Great Depression

Every major economic or geopolitical event in the world has had a very distinct impact on the generation that had to live with this.

So if we think about the impact of the stock market crash of 1929 on the average US citizen, a simple word to describe it would be massive.

An entire generation came face to face with the harsh reality of the stock market crash.

Not just the sheer extent of the loss, 89.9%- which is huge anyway, but also the after effects of this severe crisis left everyone completely dumbstruck.

It totally changed their perception about stock markets, investing in stocks and their overall relationship with the stock markets.

From the 1920s, where people would just about do anything to remain invested in markets, the times went through a volte face.

Suddenly stock market trading was not such a great alternative.

Stocks were no longer a hot property.

The economic implications of the stock market crash were perhaps the most damaging one.

Investor sentiment underwent a radical change from optimism and growth to overall gloom and desperation.

While the first half of the 1920s was all about economic growth, low unemployment and excellent business opportunities, the second half completely changed this picture in entirety.

While from the beginning of the 1920s till 1929, the stock prices zoomed up close to 10x, in just a matter of days the losses equaled to 90%.

The Economic Growth Got Impacted As Well

It is needless to add that the economic growth too got impacted in this process.

The economic growth had created a liquidity flush in the early 1920s.

That, no doubt, abetted the cause of speculation and introduction of speculative elements in the overall gameplan.

Everybody was literally invested in the market through margin buying.

The worry was that the ratios of these margin investments.

In several instances, investors were putting down as much as $1 capital forever $3 worth investment in the stocks.

The mathematics is there for you to calculate.

The implications in case of a loss were huge.

But such was the euphoria in the market, no one was even thinking of a possibility where the stocks would begin to correct, forget a crash.

You have to understand that no one at this crucial juncture was buying stocks based on their fundamental appeal.

Blind Investment

They were all buying because they expected prices to go up.

They wanted to just have a share of those gains and profit for it.

The lure of easy money was just too difficult to deny.

But several economic hassles were raising their ugly head at this juncture as well.

The filip that production initiatives got in the first half of the 1920s led to a production spree.

As a result, many industries started reporting over-production by the time 1930s dawned upon the world.

Not just that, oversupply also started creating several other kinds of an economic bottleneck.

The result was that the value of money had suffered significantly.

Easy money also meant that setting up a production unit was no big deal.

All that enterprising business persons had to do was invest in stocks, earn some easy profit and then route that into setting up a business of their own.

The worry was that this over-production started spreading across industries.

Be it steel, iron, manufacturing, agri-products, you name it, and there was an over-supply problem to be dealt with.

What followed was the obvious end.

When Fear Takes the Control

Losses began to unravel.

To make it even worse, share prices too began to retrace their profits somewhat What was particularly worrying was that cash was rather scarce.

Almost every additional penny was being redirected into the markets.

Cash on the sidelines began to dwindle significantly.

As a result, when the need for money arose, the solutions were rather drastic.

Almost the entire portfolios had to be liquidated to address the funding concern.

The scramble for money was overwhelming.

Most individuals were severely stretched.

There was pretty much zero flexibility, and the people were at a certain point of time desperate for the additional cash requirement.

The mounting losses also added a panic element to the confusion and desperation that was already evident in the stock market.

As the Dow continued its downward spiral, the stock market crash of 1929 continued its trail of devastation.

From a high of 381 in September, the Dow dropped down to a paltry 41 mark by the next July.

In terms of sheer percentage losses, this was perhaps the worst bear market in the overall history of the financial market dealings across the United States.

Such was the extent of losses that it took close to 25 years to undo the damage the stock market crash resulted in.

Regulatory Action Post Stock Market Crash

Such was the intensity of the 1929 stock market crash that a probe into it became a necessity.

In 1932 after the downtrend finally bottomed out, the US Government established the Pecora Commission.

It was created with the whole purpose of understanding the reason for the crash.

A close study on the various triggers and the causes of the stock market crash of 1929 were undertaken.

The year after, once the probe was complete, the US Congress passed the famous Glass-Steagall Act.

This was the crucial piece of legislation that made certain banking sector regulation mandatory.

This was the Act that sought to differentiate between investment banks and commercial banks.

In this context, I would like to explain that the commercial banks are essentially the ones that took deposits and extended loans.

The investment banks, on the other hand, were those institutions that are responsible for underwriting securities.

They deal with issuing a whole host of stocks, bonds and securities.

They are often the link between financial markets and the banking operations.

Steps to Stop Panic Sale in Markets

However one of the most lasting outcome of this probe on the stock market crash of 1929 was the steps that Governments across the world decided upon to stop the panic sale.

They globally highlighted the importance of instituting measures to suspend trading during a rapid fall in the market.

Markets across the world wanted protective measures against the potential panic sale that can set in anywhere and anytime.

Most importantly, the 1929 stock market crash brought forth the perils of rapidly declining stock market fall.

However, the fact remains that the one-day 22% Dow fall in 1987 was worse than 25% decline seen across the Dow Jones in 1929.

Though in terms of a single percentage loss this was huge, the overall extent of loss was far contained in 1987.

It is needless to mention that the presence of certain important regulatory measures surely enhanced the investor safety.

The Plight of the Retail Investor

Another reason why these steps to stop panic sales were important, was the plight of the retail investor.

Whether you consider the case of the 1929 stock market crash or the 2008 Lehman crash, it is invariably the retail investor who gets worst hit.

They are invariably the last to enter, and the first to exit the markets gripped by fear and under the spell of severe losses.

Additionally, they are also invariably the most stretched economically.

They do not have the wherewithal to face a financial calamity of this stature.

They also didn’t have the required understanding to deal with such sensitive phases in the market.

The institution of appropriate regulatory measures would make sure that the retail investor’s interest is well taken care of.

It might not be possible to completely avert the overall chance of a potential financial calamity, but with these regulations, you can surely limit the impact.

Perhaps it is for this reason that while in the case of the 1929 stock market crash, it took the markets 25 years to recoup the lost ground, the gap’s becoming increasingly smaller with every passing decade.

In the case of the 2008 Lehman crisis, the Dow hit fresh highs in less than 10 years of the huge financial tsunami hitting markets globally.

Impact of the 1929 Stock Market Crash

Therefore, it is now time to clearly understand the various implications of the stock market crash of 1929.

Just how did this massive crash and the resulting economic depression impact world markets as a whole and the US markets specifically?

Perhaps it would be an understatement to say that the depression that followed the 1929 stock market crash, literally devastated the US economy.

The economy that was roaring in the earlier half of the 1920s was completely out of gear.

While the first half of the 1920s saw record low unemployment levels, the phase post the stock market crash was an exact opposite.

  1. The unemployment rate was up 25%.
  2. The annual wages slumped over 40%
  3. Economic growth in the United States declined by 50%
  4. Word trade too slumped, it fell by a whopping 65%
  5. Prices declined at an alarming pace of 10% a year
  6. Deflation became the biggest reality that markets had to learn dealing with

1929 Stock Market Crash Impact on Europe

If you thought that the devastating stock market crash of 1929 only impacted the United States market, you are severely wrong.

While global markets were not as closely knit as you see today, but the obvious linkages were there.

At least, Europe decidedly felt the heat of all that happened in the United States.

In fact, the stock market crash and the depression that followed in 1929 was almost single-handedly responsible to bring upon the great depression in Europe as well.

While it would be wrong to assume that there were absolutely no triggers in Europe and everything just crumbled like a pack of cards, the link cannot be denied.

When the Dow started declining, every mature market at that point of time sat up and noticed.

What further exacerbated the crisis that followed the stock market crash was the lack of Government understanding.

Whether you consider the Government of UK or US, none of them could properly fathom the exact extent of the crisis and the economic depression that followed suit.

The meltdown in the economic activity in the United States decidedly had its impact in the United Kingdom and the rest of the European markets too.

In fact, during the 1930s labor problems, strikes and the multitude of unemployment related issues became the order of the day.

People in US and Europe alike felt the heat of a slowing economy and the perils of a challenging economic predicament.

The lack of liquidity was one of the biggest problems to deal with internationally.

The World War II Post the 1929 Stock Market Crash

If ever any war could take the credit for addressing the economic challenges of the world then it’s got to be the World War II.

Can you even imagine that the kind of death and destruction that war brings forth can actually have any positive role in shaping the economic future of the world? Well, the World War II surely had that kind of impact as it shattered global peace close on the heels of the devastating stock market crash of 1929.

The first biggest positive was the American mobilization that helped move over 10 million people from the civilian labor force.

This mobilization that started in 1941 had a rather surprising and extremely dramatic effect on any parts of the US economy.

In many ways, economic experts today feel that the World War II ended the great depression in US and UK lot faster than it otherwise would have.

It was partly due to the World War II.

In that war, the Government’s capital investment in United States jumped to 67% from mere 5% in 1940.

It is, therefore, needless to mention that with so much of capital spending underway, it became far simpler to rescue the US economy from the throes of the terrible depression that gripped it in 1929.

Also, the War and its outcome, helped people divert their attention and efforts to several constructive ventures.

All this capital heavy initiatives undeniably brought forth significant gains and positive triggers for the US economy to get out from the dungeons of depression.

The Greatest Financial Crisis Ever

Therefore, we can easily conclude that the stock market crash of 1929 was one of the greatest financial crisis that hit world markets.

Not just in the extent of damage that it resulted in but also in terms of the implications, it was a marquee moment.

Governments, investors, traders and the general public came face to face with the harsh realities that the stock market crash brought through.

One of the biggest lessons learned from the 1929 stock market crash is undeniably the role of valuations.

Don’t cloud your investment decision with any other pre-condition and never let euphoria drive your investment calls.

Do We Really Have to Lose Our Shirts When the Economic Crisis Like 1929 Happen?

Absolutely not.

Stock market crashes like 1929 can only make problems who don’t follow a strong and safe investment strategy.

First of all, those who invest with the money that they cannot afford to lose, get into serious problems when the markets crash.

The second group who lose their shirts after a market crash, are those who put all their eggs in one basket.

The Markets will always crash according to Robert Kiyosaki:

What Is the Solution?

So here is what you have to do to stay away from losing everything when the markets crash:

1. A Reliable and Strong Source of Income

You have to build and maintain a reliable and strong source of income that makes money for you consistently, no matter what the economy does.

If so, then you will always have your steady stream of income.

Although the disasters like the stock market crash of 1929 can affect everything, there are still lots of businesses that are always at the safe side.

A strong online business which is based on a proven and well-developed system, is such a business.

There was no online business back in 1929, but now we have this option.

There are so many things that people always like and always spend money on, whether the economy is good or not.

Education is one of them, specially the business and money related educations.

People always want to improve their income and lifestyle.

They are always ready to spend money on this.

They spend money to learn how to make more money and have a better life.

Therefore, online business education never dies.

Fortunately, it is now so easy to start and promote an online education business.

Click Here to start your own online business education now.

2. Increase Your Wealth by Following the Proper Investment Plans

Making a lot of money is not enough.

You have to invest the money you make to (1) safeguard your wealth and (2) increase it and be ahead of the inflation.

Investing all the money you make in one market is not a good idea at all.

For example, if you invest all your money in the stock market, then you will be in trouble if a crisis like the stock market crash of 1929 occurs.

You should always choose the markets properly and balance your investment using different markets.

So, here is how you have to invest a portion of your extra income:

  1. Your Own Business:

    If you have a reliable and strong source of income through a business, the way that I explained above, you should always invest a portion of your income in the same business to increase your income month after month.

    This is possible only when your business is scalable. Online businesses like ours are strongly scalable.

  2. Currency and Real Estate Markets:

    You have to invest a significant portion of your extra income in the currency and real estate markets.

    Currency and stock markets support each other if you choose them properly and have a proper investment plan.

    I have explained this in details here: A Short Term Investment Strategy That Makes You a Millionaire

  3. Stock Market:

    Investing in the stock market needs lots of experience and knowledge.

    It is not a piece of cake as some people think.

    Most people buy the shares of a company blindly just because so many others are doing the same.

    These are the people who will lose their shirts in the stock market crashes like 1929 and 2008.

    Therefore, if you don’t know how to do it and you don’t have access to those who are expert enough in this kind of investment, you’d better to save your money.

    It is better to be safe than sorry.

    Besides, there are other good options that can increase your wealth much more than the stock market.

    I’ve explained them above.

  4. Always Save Money:

    Most people think that they have to invest their extra income entirely.

    This is also a big mistake.

    You should always have some liquid asset which is either cash or an asset like gold that you can easily convert to cash.

    The cash that you save in your bank account is the best.

    I don’t agree with having precious metals and stones because you can’t cash them easily when a crisis comes.

    You should always save some money from your extra income every month.

If you follow the above plan, you will always be at the safe side.

At least, when the economic tsunamis like 1929 stock market crash happen, they won’t affect you that much.

You will be able to recover very easily while many others can never get back up.

This is the big lesson that the stock market crash of 1929 has taught us.

We should never forget it.

What Is the Right Way to Make Money on FaceBook?

The answer of the question that whether FaceBook ads make money or not, is NO.

I mean it is not possible to make money posting ads on FaceBook, the way that some people claim.

But, please read this article to the end, because I am going to tell you how it is possible to make money on FaceBook.

How do we know this?

There are some very experienced entrepreneurs, business owners, investors, marketers, bloggers and programmers in our team.

They’ve already spent lots of time and money to find out whether the FaceBook ads work and can generate sales and make money, or not.

And, if FaceBook ads don’t work and are wasting of time and money, then is there really a way to make money from FaceBook and its massive traffic?

The below article is the result of their experiences.

Why Don’t FaceBook Ads Make Money?

The reason is that people don’t go to FaceBook to buy something, nor do they go there to find a solution for a problem or an answer for a question.

They don’t even go there to learn something.

FaceBook is completely different from the sites like YouTube.

There are so many who refer to YouTube to learn something or find a solution for a problem.

But FaceBook hardly has such an application for the public.

Some people upload educational videos on FaceBook too.

But people watch these videos accidentally.

For most people, FaceBook is just a place to chat, find new friends, connect to old friends… and things like that.

FaceBook is more an entertainment website.

Most professionals and those who don’t want to make the most of every second of their time, avoid FaceBook, because FaceBook is a big time waster.

I am sure you’ve noticed this as well.

Once you refer to FaceBook, you get busy with the photos, people, useless videos and things like that.

You wake up and see that several minutes of your time was wasted.

So you get out and close the FaceBook tab.

It is the same for 99% of people.

Therefore, posting ads on FaceBook usually don’t make any money, because nobody bothers to order anything.

People ignore and skip the ads.

You can target special categories of the FaceBook users.

You can even target special countries, cities and areas.

But this also doesn’t help you make money from your ads.

So, doesn’t it mean that you can never make any money with FaceBook as one of the biggest websites over the Internet?

You can make money with FaceBook, but not the way that most people say.

Indeed, the best way to make money with FaceBook, is free.

How to Make Money on FaceBook

As I explained above, FaceBook is not where you can sell something to people so easily.

However, it is still possible to make money on FaceBook and even by posting ads on it.

What you have to keep in mind is that you can’t just sign up for an account with FaceBook and then make money by posting ads on it.

Such an advertising will be wasting of time and money.

Although advertising on FaceBook can be much cheaper than the other online advertising platforms like Google Adwords, still it is not cheap and can cost you a lot.

Therefore, make sure not to spend any money on FaceBook as long as you don’t know the right way of making money with it:

1. Create a FaceBook Page

FaceBook can be a big help for the business owners.

Specially it is a great help for those who have online business.

You can see that all the websites have a FaceBook page where people can like and follow.

A Facebook page is where you can easily communicate with your followers.

You can inform them about the events, new products, posts and articles and anything you want your followers to know.

After creating a FaceBook page, you can post the widgets or icons on your site and invite the website visitors to like your page and follow you.

After a while, you will have a community of your fans on FaceBook.

You can communicate with your website followers and fans through a mailing list and RSS feed too.

However, a FaceBook page looks like a must, because there are so many who visit their FaceBook home page several times per day, sometimes even more than they check their emails.

– The Advantages of Creating a Community of Your Fans on FaceBook

Creating a FaceBook community is the first step of using the FaceBook’s potential to make money.

And, as I explained, this has to be done through creating a FaceBook page.

Please note that FaceBook pages are different from the FaceBook personal accounts.

Almost everybody has a FaceBook account nowadays.

But a FaceBook page is a separate place where you can create on FaceBook and through your FaceBook account.

You can name your page anything you want.

Your FaceBook page will be a place that is focused on your business.

You don’t use a FaceBook page to communicate with your friends.

You use it to keep your business fans updated.

– Building a Line of Trust

You can look at our FaceBook page as an example.

We share our new posts there.

This is what we do on our Twitter page too.

Our followers receive an email automatically when we publish a new article on our site.

However, some people like to follow us on FaceBook or Twitter, because it is where they follow all their other favorite websites, communities and people.

Therefore, a FaceBook page creates a community of people who like to hear from you and your business.

Most of these people are interested in your website, the products and services that you offer and your business.

It is more likely that these people buy your products or services, compared to the other FaceBook users who don’t know you, your page, your site or blog and your products and services.

After a while of following you on FaceBook that also helps them have access to your site or blog easier, and if you offer good solutions to their problems, they will trust you more and more every day.

Therefore, they will pay for your products and services with peace of mind.

Offering good and strong products and services that resolve your followers’ problems, along with the money back guarantees, is what you need to make money from FaceBook while you are making money through the other resources as well.

2. Make It Easy for People to Like Your FaceBook Page

Creating a FaceBook page is not enough.

You have to make it easy for people to like it and follow you through it.

There are some good ways to do this.

a. Choose a Short Name and URL for Your FaceBook Page

Try to have your FaceBook page’s name and URL, short, easy to remember and enter to the web browsers address bar.

It has to be as short as possible, because you will have to insert it on your business cards and your email signature:

FB.com/LuckScoutcom

Yes, FaceBook has a very short URL at FB.com that redirects to its main URL at FaceBook.com.

Therefore, to keep your page URL as short as possible, you can use the FB.com when you want to insert your FaceBook page address on your business cards, flyers, ads and also in your email signature.

Having your FaceBook page URL in your business cards, ads, flyers, brochures and also in your email signature, helps more people find your page and follow you on FaceBook.

b. Place Your FaceBook Page Widget and Icon on Your Site

This is what all webmasters and blogger do.

It is the best way to redirect people to your FaceBook page.

Using the FaceBook widgets, your website visitors can like the page to follow you, without leaving your site, because some of these widgets have the like button that will be displayed on your website pages.

By clicking on the like button, people will opt in to follow you on your FaceBook page without having to leave your site.

This methods is free and is the most efficient way to build your FaceBook community from the people who know you and your site.

c. Promote Your Page on FaceBook

You can pay FaceBook to bring your FaceBook page ad before the eyes of the FaceBook users.

It is not a free method and it is becoming more expensive every day.

Although it can help you grow your FaceBook community, it is not an efficient and effective way.

Why?

First, because it is a paid method and is expensive.

You are not going to make money through your FaceBook pages so easily.

It has a long process.

Therefore, the money you spend on FaceBook ads, doesn’t return so easily.

Second, those who like your page through the paid ads, will not be quality followers.

They don’t know you.

They just click on the like button when they see your ad.

Many of them know nothing about you, your website and your products and services.

There are so many FaceBook users who like any page they see without following them properly.

Many of them even don’t know what liking a page means.

They don’t know that they will see your page’s posts on their FaceBook home page, if they like your page.

As they like so many pages every day, they don’t pay any attention to the pages’ posts and updates.

Therefore, you are paying for something that won’t have any return.

Of course, you can narrow down your ad’s target to the people who have special interests that are closer to your page’s missions and topic.

At the same time, you can even focus your ad on some special countries and areas.

But still it is not worth to spend money on ads, because you are not going to get quality fans.

Someone who knows you, your website, and your products and services is a good fan for your FaceBook page.

He shares your posts with his friends and followers who have so many things in common with him.

And this is a big help to grow your FaceBook community easier, faster and for free.

d. Promote Your FaceBook Page Posts

In addition to promoting your FaceBook page through the paid ads, you can also promote each of your page posts.

This is a good way to attract the FB users attentions to your posts.

But as I mentioned above, it is not a free method.

It is expensive and is becoming more and more expensive every day.

These ads are the FaceBook’s source of income after all.

They make money through these ads.

There was nothing wrong with paying FaceBook to help your community grow faster, if it would have the results that you expected to see.

But as I explained above, advertising your business, website, blog, and your products and services, on FaceBook, makes no money.

Or even if it does, it doesn’t leave you any profit.

So you’d better to forget it.

Unfortunately, many of the so-called internet marketing gurus, exaggerate about the money they make through posting ads on FaceBook, because they want to sell their courses to you.

I am not saying that you can’t make any money with FaceBook.

You have to do it the right way, not by blindly spending a lot of money on advertising.

I will explain more in this article.

Please keep reading 🙂

Therefore, the free methods of promoting your FB page, like having the icons and widgets on your site and having your page URL on your business cards and ads and email signature, are the best.

3. Offer Strong Products and Services

While you are promoting your FaceBook page and growing your community through the methods I explained above, you should have proper products and services to offer.

Without having strong products and services, your not going to make any money.

How are you going to make money when there is nothing offered on your site that is worth spending any money?

Products and services that resolve people’s problems, are the best.

You have to be able to resolve the problems.

You have to be able to offer good solutions for the problems that people have, otherwise nobody is going to pay any attention to you, your site and your FaceBook page.

It is great if you are able to create such products and services on your own.

It is great if you are expert in something and you can resolve the related problems for people.

Then people will pay you to resolve their problems.

And if the products and services you sell, really resolves the buyers’ problems, they will appreciate you and will recommend you to the others.

First, you have to give them the trust and the confidence they need to have, if they want to pay you.

You have to assure them that your products and services are some good solutions for the problems they have.

Second, you have to assure them that you will return their money if they decide that what they have bought from you, doesn’t work for them.

If so, they will pay you with peace of mind.

What If You Can’t Create Such Products and Services on Your Own?

You can sell the others’ products and services and make commissions.

You can buy those products and services, use them and then sell them to the others, and make commissions if you are happy.

A product that satisfies you and resolves some problems from you, can do the same for the others too.

Therefore, you promote them on your site and FaceBook page.

– Selling High-Ticket Products

High-ticket or big-ticket products are so profitable, because they have a much larger return.

Your profit margin is strongly dependent on the products and services you offer.

If you can create big-ticket products and services on your own, then you are several steps ahead of those who try to make a living through selling small-ticket products.

If you can’t create such products, then you can easily sell the others’ high-ticket products as an affiliate to make commissions.

This is a lot easier to make money because the vendor takes care of the buyers and offering the products and services they buy.

Creating the high-ticket products needs investing millions of dollars which is what most people can’t afford to do.

Therefore, it is good to make money on the others’ high-ticket products.

I will explain more about this later in this article.

I am going to write a more detailed article on high-ticket products.

So make sure to submit your email to receive the notification.

High-ticket products are the products that can make you a millionaire.

So if you like to make the most of your time and effort on promoting your site, blog, FaceBook page and other things you do, you have to sell the high-ticket products.

4. Make Money on FaceBook

After following the above steps, FaceBook helps you make more sales and more money.

Still you don’t have to spend any money on FaceBook ads.

When your FaceBook community grows and reaches a reasonable number of fans, they will spend money on your products and services.

It is a process which can be long sometimes.

On one hand, new fans have to be added to your FB community every day.

On the other hand, your fans should keep on following you until they know you more and reach the level that they can trust you and spend money on your products and services.

While this process keeps on moving and repeating, you can also advertise your products on your own FaceBook page and for your fans to attract their attentions more.

FaceBook has some options to do this.

You can create paid ads that FaceBook displays and offers to your page fans and their friends only.

However, experience shows that this doesn’t make a big difference as well, and spending time and money on such kinds of ads, is not necessary at all.

Why?

The reason is that those who are the real fans and they know and trust you through following you on FaceBook and your site, don’t have to be faced with your paid ads to buy something from you or hire you to receive your services.

They all will do this on their own when it is the time to.

All you have to do is keeping them updated through your daily blog and FaceBook posts.

There will be so many who will love what you publish on your site.

They eagerly and enthusiastically read each of your posts.

Depend on the conditions they have, many of them wait for the right time to place an order.

They will do it finally.

Therefore, your paid FaceBook ads can’t make any difference for them, nor can they convince them to place an order sooner.

It is the same with all the other online social media like Twitter.

5. Your FaceBook Money Making Engine

By following and repeating the above stages, which is very easy, you will have a big FaceBook community that can make money for you steadily, automatically, and for free.

Once you set up your FaceBook page and post the widgets and icons on your site, all you will have to do is sharing the URL of your new articles on your FaceBook page.

You can publish some updates, videos, pictures and… on your FaceBook page.

But your fans are more after reading your articles.

So, you have to create a FaceBook page and then keep on publishing the informative, strong and unique articles that resolve the people’s problems.

At the same time, you have to offer some good and strong high-ticket products that people can buy and use.

This makes your FaceBook Money Making Engines that make money for you for free.

You won’t have to spend any money on FaceBook ads or any other kinds of social media advertisements.

– Your YouTube + FaceBook Money Making Engines

YouTube can do the same too.

It can also be a very strong money making engine.

It is much stronger than FaceBook.

I’ve already talked about it here: How Much Do YouTubers Make with Our Money Making Engine?

By combining the YouTube and FaceBook systems and using some other strong tools and resources, you can create a strong money making machine that works and makes money 95% on autopilot.

6. We Help Our Followers Build Their FaceBook Money Making Engine

Our top members who become eligible to have access to our LuckScout Millionaires Club, will learn how to build several money making engines that FaceBook is one of them.

Not only we teach them how to do this, but also we support them practically.

– FaceBook Is One of the Engines that Makes Money Automatically, for Free, Forever

Once set up and promoted properly, FaceBook can start making money 95% automatically and for free.

You won’t have to spend a single cent on it.

– Our High-Ticket Products and Services

Most of those who read this article, either have no products and services on their own, or even if they do, they are poor products, have a low attraction, can’t resolve any of the people’s problems, and are not good products and service in general.

Creating good and strong products or services, is not everybody’s cup of tea.

You can’t just wake up a morning and create a product that makes thousands of dollars.

Strong products that are demanding and have a very high conversion rate, have to be created by the experts who have spent several years on learning and experiencing in the related niche and topic.

Still not all the products they create and develop, succeed to make profit.

But the good news is, you can easily sell the other’s high-ticket products that is already proven that they have a very high conversion and success rate.

For example, you can join our network and use our automated system that promotes hundreds of products from $3 to up to $30,000.

While the system can work fully on autopilot, we teach and help our members to build and develop their own money making engines that make money for them for free, forever.

The FaceBook money making engine is only one of the systems that our members use to make a lot of money without spending a single cent.

Hire the FaceBook System to Make Money for You Automatically, for Free, Forever

So, to answer this question that whether you can make money on Facebook ads, I have to say NO, according to the above explanations and several years of our experience.

But to answer whether it is possible to make money on FaceBook, now you know that the answer is yes.

However, you have to follow the above process if you like to make money through your FaceBook page.

Spending money on ads, makes the business owners feel good, because they think, they are doing something positive and helpful for their business, when they advertise.

The problem is, many ads are wasting of time and money.

Sometimes it is your website or blog that is generating sales at the same time that you are advertising on FaceBook.

Therefore, you will think that it is your FaceBook ads that are making money for you.

However, if you track your ads properly and calculate their conversion, you will see that FaceBook ads have a zero conversion rate in most cases.

So, instead of spending money on FaceBook ads, follow the above instructions to build your FaceBook community and make money through it for free.

It takes some time to start making money through your FaceBook community.

But once you succeed to develop the system and make people pay attention to your site, products and services, and your FaceBook page, the community will promote itself.

Your fans will spread the words for you, and the FaceBook’s strong system facilitates and boosts your community’s growth.

Achieving Financial Freedom Is Not What Most People Think

“Financial Freedom” is like all the other things that most people have a wrong impression about.

It neither equals making a lot of money, nor does it mean having no debt.

There are so many who make a lot of money, but they are not financially free.

There are also so many who are in debt up to their eyeballs, but they are financially free.

As usual, I am not going to write an article like what you find almost on all the other sites.

I am not going to give you a useless list of the steps that you have to complete to achieve financial freedom.

Do you know why?

Because most of those who write and publish articles on different topics, including financial affairs, are not expert in the things they write about, nor have they been able to achieve the things like financial freedom or even making money online.

They only write about them, but they never give a clear road-map toward achieving them.

What I am going to tell you here, is what the famous and really successful people like Robert Kiyosaki also admit.

Before I tell you how to achieve financial freedom, I have to inform you about some important points.

They help you understand the real meaning of what you are going to achieve.

Why Doesn’t Making a Lot of Money Equal Financial Freedom?

The fact that you make a lot of money, doesn’t necessarily mean that you are financially free.

One important reason is that, usually those who make a lot of money, spend a lot of money as well.

Therefore, nothing will be left for them at the end of the month and year.

They have so many expenses, so that they can’t save any money at all.

They may have a luxury life apparently, because they spend a lot of money to live in fancy houses and drive luxury cars.

But they save no money at all, so that they can’t invest.

As a result, they will be in trouble if they lose their income or can’t make money for some reason.

That’s why I said that making a lot of money doesn’t necessarily equal being financially free.

When you have no savings and no passive income, you can’t keep the same lifestyle if you lose your income.

Why Doesn’t Being Debt Free Equal Financial Freedom?

Unlike what you read on most of the other sites, becoming debt free doesn’t make you financially free.

Again, one reason here is that you can be debt free while you have no savings at the same time.

Therefore, you will be trouble if you lose your income, no matter you are in debt or not.

You can’t survive even for one month when you lose your income and you have no savings and passive income.

So, you will have to borrow money and you will go in debt because of losing your income.

As a result, you will have to file bankruptcy eventually.

Consequently, having no debt doesn’t help you survive when you lose your job and you have no savings.

Are You Financially Free When You Aren’t Time and Location Free?

When you make a lot of money, but you can’t take a break, and you have to work non-stop, then you are not free.

When your business needs your close and constant supervision, you are not free even if you make a lot of money.

What if you can’t work for some reason?

What will happen to your business and income then?

As you see, freedom doesn’t mean that you can buy anything you want.

It has a much wider meaning.

If your job or your business controls your time, then you are not free.

If you can’t leave your job or business for a while to travel to another place for some reason, then you are not free.

What Is Financial Freedom Then?

You’re financially free only when you can keep your current lifestyle after losing your job and income.

Not when you make and spend a lot of money at the same time, and not when you are debt free.

You are financially free only when you have achieved money, time and location freedom at the same time.

1. Money Freedom

Money freedom means you have enough savings and passive income that you can provide anything you want.

Your savings and passive income have to be enough to support your current life style.

It means if you lose your main source of income, or you decide to stop working for any reason, you don’t get into trouble at all.

You completely have to be financially supported and secure.

Money freedom means, “money” is not a problem for you anymore.

But, there are two more things that are linked to money: Time and Location

2. Time Freedom

If you have money freedom, which means you make and you have a lot of money, but your time is 100% controlled by your business, you are not yet 100% free.

It means you have to work day in day out to keep the money coming.

This is not freedom.

It means you are the slave of your own business, company or job.

For example, physicians are like that.

They make a lot of money.

But, they have to work long hours to keep the money coming.

I have a friend who is a dentist.

Although his life looks good, he says they won’t have any food on the table if he stops working for 10 days.

If you look at his life, you will say that he is financially free, because apparently he makes a lot of money.

But, he is not financially free in reality, because he doesn’t have time freedom and he will be in trouble if he stops working even for a short while.

3. Location Freedom

It is the same with the location freedom.

If your job makes a lot of money, but it has chained you to a special place, and it needs your non-stop presence, it means you don’t have location freedom.

It means, your income will be stopped, or at least, your business will be faced with some serious problems, if you leave.

Therefore, you have to stay and supervise all the time.

You can be happy with the money you make; even you can be happy with a partial time freedom you have; but if you are chained to a special location, then you are not location free, and so, you are not 100% free.

Only when you are money, time and location free, you can say that you’ve achieved financial freedom.

How Is This Possible?

It seems somehow impossible to achieve such a financial freedom that I described above.

People know that it is possible to make a lot of money by having a good job and business and working so hard.

However, something that looks too hard to accept, is achieving time and location freedom at the same time.

I mean, people accept that they can make a lot of money.

What they can’t accept is, making a lot of money while they can work at anytime they want (time freedom) and from anywhere they like (location freedom), or, while they can even stop working for an unlimited time, but they won’t be faced with any financial problem at all.

Well, this is possible only when you develop some sources of income that keep on making money, even when you stop working.

It is called passive income.

How Can You Achieve Financial Freedom?

You can become financially free only when you have passive income.

Passive income allows you to stop working whenever and for as long as you want.

It is true that you may lose your main source of income if you stop working, but you won’t get into trouble because your passive income still covers your expenses.

1. How Can You Create a Passive Income?

I’ve explained it in details here: Passive Income Streams That Make Money for Good

Briefly, first you should generate a reliable and strong source of income that makes a lot of money for you, consistently.

There is no doubt that sometimes you have to work hard to generate and maintain such an income.

But, you have to do it to become able to save some money, which is the second stage of generating a passive income.

Then, your savings allow you to invest in different markets, specially the real estate market.

You can rent your properties to generate passive income.

Besides, if you choose your properties properly, you will make money on their value appreciation as well.

It is even OK to borrow money from the banks to buy the real estate properties.

You can repeat this process, until you generate a steady stream of passive income, while you maintain your main source of income also.

Therefore, if you stop working after having a good and reasonable amount of passive income, you won’t be in trouble.

You will have money freedom, because you have both nonpassive and passive income.

You will also have time freedom, because your passive income allows you to stop working without getting into trouble.

Also, as your properties make money for you while you don’t have to be present all the time, you can go wherever you want, and so you have location freedom too.

This is the financial freedom you’ve always loved to achieve.

2. Your Main Source of Income

As I mentioned above, you’ll have to work hard to generate the initial source of income that you have to have, to become able to save money.

You can run your own business, but usually it doesn’t allow you to take some time off.

You will have to work hard.

Most of the businesses don’t give you time and location freedom.

If they don’t make enough money, then they can’t give you money freedom as well.

However, following a strong online business system, can be a great idea.

It not only makes a lot of money, but also it gives you time and location freedom, because it can be done through the Internet and from the comfort of your home.

Here is more details of our chosen online business system: A Profitable Online Business Idea That Can Be Mostly Automated

Conclusion

As you saw, the financial freedom I described above, is different from what you can read on the other sites.

You have to do your best to achieve it before you become retired.

It is OK to work hard for a limited time, to make yourself, money, time and location free, and have a great retirement.

To become able to generate passive income, it is even OK to borrow money from the banks.

If you do it wisely and properly, your passive income can easily cover your mortgage payments.

Therefore, you can be in debt, but financially free at the same time.

Your money, and your investments, can work hard to pay off your debts and make more money for you.

Passive Income Streams That Make Money for Good

Passive income is one of the most important part of our Wealth Building Strategy.

Do you know what it means?

It is the income that you don’t work for it, and it comes by itself.

How is this possible while we all know that people have to work hard to survive?

How can we make money doing nothing?

Well, there are so many ways to do that.

But one of these ways is the best, because it hires an honest and hard-working employee that never stops working and making money for you.

It can create a never-ending passive income stream.

Do you know who this employee is?

It is your money.

Yes, your money can work so hard and make more money for you.

Making your money make more money for you, is the best possible way to generate passive income.

You’ve come to this page, because you are looking for the ways to generate passive income.

However, instead of listing the known and regular ideas that you can find on all the other sites and articles, I’m focusing this article on a much better and smarter strategy that creates a steady stream of income that lasts forever if you want.

The first and most important thing that you have to know and set your mind on, is that you’re financially free only when you make money without working.

If you still have to work to make a living and cover your current expenses, even if you make a lot of money every month, you are not financially free yet.

And, the point is, this situation can turn into a disaster if you don’t change it.

What happens if you lose your job and income?

What if you can’t work anymore for some reason?

You will become poor overnight.

The solution is in passive income.

If you haven’t been able to create some strong and stable passive income streams, or you haven’t taken any actions to do that so far, then you’re only one step behind getting poor and broke.

Passive income which is also known as residual income, is the income that comes by itself.

Of course, “residual income” is an accounting term and is different from passive income.

But most people think that they are the same.

The word “passive” has a very deep meaning here.

It shows you the way and tells you how to become financially free.

Most people think that there is only one way to make a lot of money: Working Too Hard

This is true when you have no capital and you want to raise some money.

But, after a while of working hard and when you have become able to save some money that enables you to invest, you should manage your money in a way that it works hard for you, and you don’t work hard to make money anymore.

The question is whether it is possible to have an income that comes by itself and without working.

The answer is yes.

There are so many who have such an income.

Indeed, there are so many who make millions of dollars per year or even per month, while they don’t do anything more than some management and supervision.

How is this possible?

It is very easy.

They have some belongings and properties that make money for them.

For example, they have some residential or commercial buildings that they rent.

Or, they’ve written some good, demanding and popular books that they republish every year and make a lot of money with.

Or, they have some movies, songs, and… that still make money for them.

How to Generate Some Steady Streams of Passive Income?

Now that you know how important it is to have passive income, you should learn how to create and then boost it to secure your future.

What I am going to teach you here, is different from what you read on the other sites.

Almost all of the articles that are focused on this topic, have the same format.

They all list some known ways of creating passive income.

They don’t tell you how and they don’t consider that, something they teach, can’t be applied by most people.

For example, how many can write popular and demanding books and eBooks that can be sold for several years?

How many of you is able to create some unique software that people keep on ordering them for good?

There are so many ways to generate passive income.

But how many of them can be followed by ordinary people?

Most of them are too hard to be followed by most people.

So here is my way of generating some stable passive income streams that everybody can follow, not just some special people who have some special skills.

If you like to secure your future, you have to take actions now.

It can be late too late to think about creating some sources of income that cover your expenses, after losing your job or after your retirement.

You’d better to do it now.

The best and easiest way of generating passive income that can be followed by everybody, is through forcing your money to make more money.

This is what everybody is able to do. But the other ways like creating books, eBooks, software, movies, songs, videos and… are too hard for most people to do.

Now I tell you how to use your money to create new streams of passive income every year.

1. If You Already Have a Good Income

If you currently work and have a good nonpassive income, but you haven’t developed any sources of passive income yet, then you are one step ahead of others.

What you have to do is saving some money to become able to create new sources of income with it.

This is what I explained above.

Your money is the best and most reliable employee that can work so hard and make more money for you.

So, cut some of your expenses down and work a little harder at the same time, to become able to save some money: How to Increase Your Income and Why You Have to Do It

Then, invest your money in the real estate market and buy some properties that (1) their value goes higher as the time goes by, and (2) you can rent and make money through them.

This is exactly how you can create some source of passive income.

You not only make money from renting your properties, but also your capital will be increased as the value of your properties goes higher.

You have to consult the reliable real estate expert to find the right properties that have the above two features.

Make sure not to make any mistake when buying the real estate properties.

This is very easy to do if you spend enough time to research.

Consulting with the reliable and experienced real estate agents, is a must.

Don’t think that you can do it on your own.

I could also recommend you to invest your savings in currency or stock markets.

But I don’t do it, because they are risky and they can hardly make money.

You have to know a lot to make money through the currency and stock markets.

Also, it is very difficult to find some really experienced, knowledgeable and reliable currency and stock market analysts that show you the right way.

But you can easily find so many real estate experts in any area that you want to invest.

Repeat This Process as Long as Possible

You can repeat this process as long as you still work and make money.

Saving money to become able to invest and make more money, which is the easiest way of creating passive income, is an important task that you should always focus on.

The more passive income streams you create, the more financially secure you will be.

Read this article to learn more about my investment strategy.

There are some more important tips on buying the real estate properties there.

2. If You Don’t Have an Income or Your Income Is Not Enough

There are many people who don’t have an income.

There are so many more people whose income is not enough to save any money to become able to invest and make more money.

None of these people can earn any passive income as long as they have such a bad financial situation.

Your nonpassive income is the foundation of creating of your passive income.

Therefore, if you don’t have a nonpassive income right now, or you have it but it isn’t enough to save money consistently, then you have to take some serious actions as soon as possible.

The easiest way to generate a source of income is our online business system.

It is fast and easy and has an unlimited potential to make money.

Forget about the other ways like starting your own business or working for the others.

You will have a very low success rate and your income won’t be enough to do any investments.

Therefore, I strongly recommend you to start your online business as soon as possible.

Click Here to learn more.

Also, I recommend you to read the below article carefully to learn how our Wealth Building Strategy works and why our online business system is the best way of achieving financial freedom.

You have to educate yourself to understand how the whole system works: A Profitable Online Business Idea That Can Be Mostly Automated

Passive Income Makes Your Life Much Easier

If you’ve spent your life to work hard, make money and then spending all the money you make, then you will have a hard-time if you lose your job and your income for some reason.

Securing your future through creating passive income streams is something that nobody teaches you in any school, college or university.

You are the responsible of your family future.

You are the one who has to secure a good financial situation for your family and yourself.

As you saw, it is very easy to create new sources of income that don’t need you to work.

You can easily find some ways to save some money.

It is OK to work hard sometimes and for a limited time to improve your financial situation.

It is also OK to get loans and mortgages to become able to invest in the real estate market.

That is the only case that banks will trust you very easily, because they do know that the real estate investments are so secure and safe and they won’t lose their money if they participate in your investments.

So, you can work harder, cut some expenses and take some risks to become able to create passive income and secure your financial situation.

Your hard-work will get paid when you start making money while you don’t have to work at all.

Nothing is more joyful than having financial freedom in your life.

A Profitable Online Business Idea That Can Be Mostly Automated

Computer and the Internet have made it possible to start an online business and make money from home.

The Internet and the massive traffic it has, is a great source of business and income.

Fortunately, the Internet is getting more and more popular every day.

There are millions who have an online business and make a living through it.

And, there are so many talents who come with a new and profitable online business idea every day.

Although the Internet is also a good chance for the scams to rip people off, still there are so many legal, legitimate and extremely profitable opportunities and ideas that you can follow and make a fortune with.

There are so many businesses that you can do online.

But unfortunately, many of them are nothing but wasting of time and money.

I am listing some of the online business ideas below and am explaining why they are not good and they don’t work.

Then, I will explain about another great idea which is so profitable, and has already created so many millionaires.

I will also explain how you can start the business and how we help you make the most of it.

Some of the Well-Known Online Business Ideas That Can Hardly Become Profitable:

There are some online business opportunities that look so demanding and are popular among people.

The reason is that there are so much advertising on them by the companies that run and handle these kinds of opportunities and ideas.

They make people think that they can make a lot of money through these opportunities.

However, in most cases, it is the companies that make a lot of money out of the people’s efforts.

These opportunities are usually some win/win games for the companies, and a win/loss or loss/loss game for the customers and clients.

Here is the list of some of these online business ideas and the reasons why they don’t work and they can’t make any money for people:

1. Online Currency and Stock Trading

Online currency (Forex) and stock trading, look like some very easy ways of making money from home, mainly because all you have to do is, (1) installing a trading software (platform) on your computer, (2) opening a trading account and depositing some money in it, and, (3) buying and selling the currencies and stocks to make profit.

You don’t have to sell any products to anybody, no recruiting and advertising, no marketing and talking to the potential customers on the phone or replying emails.

Also, you don’t have to build a website and reply any emails .

You don’t have to deal with anybody.

When you look at the price chart and you see the prices’ ups and downs, it look so easy to buy when the price starts going up, and sell when the price starts going down.

So, at the beginning, it looks like a perfect and extremely profitable online business idea that has none of the hassles of the other businesses.

But, it is different in reality and when you try to make a living through it, let alone making a fortune and getting rich.

Why?

– Why Online Currency and Stock Trading Are Not Proper Online Business Ideas?

I am not saying that it is impossible to make money through online currency and stock trading.

There are some people who do it.

However, the most important fact you have to know is that, trading, as an online business, has such a low success rate compared to the other businesses.

Those who consistently make profit through currency and stock trading, are way less than 1%, and their number goes down every day, because the brokers get greedier every day and scam their clients more.

It was much easier to make money 5-10 years ago, but it has become much harder.

Those who make profit consistently, have some different approach and conditions nowadays.

The consistently profitable traders, are long-term investors.

Trading is not their full-time job and their main source of income.

They trade (invest) in currency and stock markets to increase their wealth, not to make a living:

  1. A Short Term Investment Strategy That Makes You a Millionaire
  2. Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

It needs a completely separate article to explain about the reasons of the retail currency and stock traders’ failures.

There are some articles on this site already.

But the last word about this subject here in this article is that, if still there is someone who thinks I am wrong, he can spend his time and money on retail trading (the way that retail brokers and scam trading mentors say, not the way that I say in the articles I listed above), and come back here after losing a lot of money and wasting a lot of time.

I know some people who are still losing money after 25 years of trading.

One of them lost almost 90% of his retirement savings in Germany’s stock market.

I know another person who lost about $7,000,000 in currency market.

There are so many others as well.

The correct way of trading that makes profit consistently, is completely different from what most people think and what brokers and trading scams advertise.

2. Online Surveys

This is another way to waste your money online.

Maybe there were some people who have made some money through online surveys, but not anymore.

This only makes money for the websites that sell the online survey lists, to those who want to make money through online surveys.

So, if you are looking for a profitable online business idea, forget about online surveys because you can’t make any money through them.

3. Website Developing and Programming

There are so many professional web developers and programmers who make thousands and sometimes millions of dollars.

So, it is a great online business opportunity, but not for everybody; only for those who are experienced web developers and programmers.

Therefore, in case you want to make money through this online business idea, first you have to become a great web developer and programmer who can strongly compete with the others.

In case you can achieve to become a perfect web developer and programmer, there will be so many ways to offer your services and find hundreds of clients and tons of different projects.

For example, there are some good platforms like Upwork.com that connect you to your potential clients.

However, you need to collect so many 5-star reviews to become able to compete with the other fellow web developers and programmers.

If you become skilled enough while you are creative and talented, you can create your own products and sell them online.

Therefore, you can become a self-employed web developer and programmer who creates and promote his online business ideas.

For example, you can create different website and blog templates and themes that can be used for different purposes.

Or you can create WordPress plugins to resolve different problems or add some features to the WordPress platform.

– A Great Online Business for Professionals

Indeed, there are so many ways to make money online when you are a really professional and experienced web developer.

But only when you are really professional and experienced.

There is no place for the amateur and ordinary developers.

And, it takes a lot of time and energy to reach to the level that you can make a living through web developing and programming.

Life doesn’t have to be that hard.

The Internet has made it so easy to make money, make a living and even make a fortune and get rich without having any experience in anything at all.

I will tell you how.

4. Freelance Writing

This is also so similar to web developing and programming.

You can make a lot of money through it.

But you have to have enough experience and skill, and you should be able to offer a high quality work to become able to make a reasonable amount of money as freelance writer.

However, if you expand your mind from working for the others, to writing for yourself as a blogger, then that will be a great online business idea that can literally make you a millionaire when you are a good, enthusiastic and talented writer.

Blogging is a great way of making money online and promoting any kind of business.

When you are a good writer, then you can start your own blog, write for your blog and make a lot of money through it.

Therefore, you can easily turn an ability and skill that can hardly make money, into a great online business idea that can make you a millionaire.

5. Affiliate Marketing

Affiliate marketing is almost one of the very first online business ideas that was born with the Internet.

In a nutshell, you can become an affiliate with a company, and then make money through selling their products and services.

They pay you a commission whenever you sell something.

They handle the transactions, shipping, customer service and everything.

All you have to do is driving traffic to their products through your affiliate links.

Although there is a complicated algorithm behind the affiliate programs, they look so easy to understand at the front side.

However, to make money through affiliate marketing, you have to be a good online marketer who is able to drive targeted traffic to products and services, otherwise you can’t make any money at all.

You have to either spend money on advertising on pay per click search engines and social media sites like FaceBook, or you have to have a popular website or blog that has loads of traffic.

Therefore, while affiliate marketing is a great online business idea which can be so profitable, it is not everybody’s cup of tea also.

6. Creating eBooks and Online Courses

Creating and selling eBooks, is among the most popular online business ideas.

There are so many who have been doing this since the Internet became accessible to the public.

Many of them have made hundreds of thousands or even millions of dollars.

Creating and selling eBooks that are focused on the popular and demanding topics, is one of the best ways of establishing passive income, because the eBooks can be sold online forever while you do almost nothing.

The good thing with this idea is that it is so cheap and your costs are almost zero.

You can sell millions of copies of an eBook online without having to spend any publication fees.

However, you have to be able to write a good eBook on popular topics if you want to make any money.

Above all, you have to create a good and popular website to market your eBook.

Sometimes you have to spend a lot of money to advertise your eBook and still it is not clear whether you will make any profit or not.

If people don’t buy your eBook eagerly and they don’t recommend it to each other, then you won’t make any profit.

This is something that makes this online business idea, one of the hardest ways to make profit.

– Online Courses

It is the same with the online courses.

A popular online course, can be a great source of profit.

Like eBooks, it can be sold online without having to spend a lot of time and money, if it becomes popular and demanding.

A video course can be sold to an unlimited number of students, because it can be watched and used online by an unlimited number of users.

However, it has the same cons as creating and selling eBooks:

It is not a business idea that can make profit for everybody.

Creating an online course that makes money consistently is not that easy.

It needs a lot of knowledge and experience, and sometimes a lot of money to take it off the ground and make it profitable.

7. Blogging

Blogging is a great online business idea.

There are so many bloggers who make thousands or even millions of dollars through blogging.

Blogging is one of the ideas that I always encourage people to follow, even if they don’t want to make any money online, or run an online business.

The reason is that blogging is a reason to write and make your brain work.

It improves your other skills, makes you keep in touch with the people all over the world, and it can be a good booster for your business too, no matter what kind of business you have.

To make money through blogging, you have to be an enthusiastic writer who is able to write about a specific topic (niche) like business, money, Internet, computer, success, economy, investment, and things like that.

Surely, it is not an easy task, and so, blogging is not everybody’s cup of tea as well.

For example, you will have a hard-time to start a blog and make it make money for you, if you are a retired 60 years old person who needs to have some extra income to have a better retirement, and, at the same time you have never written any articles and you’ve never had a chance to develop some good writing skills.

Above all, you can’t make money through your blog after a few months or even after a few years of blogging, specially if you choose a niche that is not so popular and demanding.

A Really Profitable Online Business Idea That Works for Everybody, Not Just for the Experts, or for the Company That Offers It

What I listed above, are good online business ideas.

But they have some serious problems that prevent majority of people from making money with them.

Here is the problems they have:

  1. Some of them don’t make enough profit.
  2. Most of them are hard to start and launch.
  3. Many of them are hard to promote and make them profitable.
  4. Many of them are for the professionals who are the Internet and computer experts.

So, the above opportunities can’t benefit everybody.

The question is whether there is a really profitable opportunity that doesn’t have the above problems?

Before answering this question, let’s list the features of a perfect online business idea that is highly profitable:

  1. It has to be easy to start, maintain and promote.
  2. It has to be extremely profitable.
  3. Its income has to be scalable, so that its profit can be increased as much as possible.
  4. It has to be easy to follow and start for everybody, not just those who have special computer and Internet skills, or special online marketing and business experiences.

1. How Is It Possible to Offer Such an Easy to Start, Maintain and Promote Online Business?

The idea of such an online business is not new.

When the Internet entrepreneurs found out that the Internet is a great place to start profitable businesses, they thought it would also be possible to offer some kinds of online businesses that are similar to franchise.

They thought the success rate of such an online business could be much higher, because it made people follow a proven business plan and system.

That was the time that companies offered a special kind of affiliate program that also taught the affiliates how to do the marketing to make profit.

But, such a system worked only for those who were or could become skilled and experienced online marketers.

Couldn’t the sharing and automation features of the Internet and computer, offer something more?

Could an online business work automatically?

A business can never be 100% automated, and the human supervision and intervention is necessary, at least in some parts.

But an online business can be automated in most parts, because it is done with the computer and through the Internet.

Some of the sections that can’t be automated, can be done by a team who handles most part of the work for the members.

If so, ordinary people who have no computer and Internet skills, can make money through such an online business system.

Most parts of the system are automatic and the other parts of the system that can’t be fully automated, can be done by the team.

Therefore, members only need to sign up and join the system.

It is only during the set up stage that the members have to spend some time to learn the system and set up their online business.

This stage can also become simplified with the help of the experienced coaches and senior members.

Therefore, such an automated online business idea, meets the first condition which is being easy to start, maintain and promote.

2. How Do They Make This Online Business Extremely Profitable?

There are three main ways of making our autopilot online business system, extremely profitable too:

a. Promoting the Big-Ticket Products

The first and most important way is promoting the big-ticket products and services that have a very high commission:

If you sell a $45 eBook through ClickBank as an affiliate, you will earn a $33.75 commission under the best condition that the vendor offers a 75% commission to the affiliates.

If you sell a $19.95 book through Amazon, then you can make as low as $1.20 in each sale, because Amazon usually pays 6% commission.

How many of these products you have to sell to make $10,000?

You have to sell about 300 copies of the eBook or 8,333 copies of the book to make $10,000.

Selling 8,333 copies of a book is a lot of work and if you want to do it through the Pay Per Click search engines, you have to spend hundreds of thousands of dollars to advertise.

Although selling 300 copies of a $45 eBook is much easier, but that is not easy either and you have to spend a lot of time and money.

Something which is the most important is that, you won’t make any profit at all, specially now that Pay Per Click advertising is becoming more and more competitive and expensive.

But, what if you sell a $29,995 product that makes a $10,000 commission for you?

You may say that selling a $29,995 product is much harder than selling a $45 or $19.95 product.

But it is not.

Such an expensive product has its own customers and when advertised and offered through the right keywords, and in the right niche, it will have the same conversion rate as a $45 or $19.95 product.

For example, if you spend $2 per click to advertise a $45 eBook and you sell one copy after 200 clicks, you can sell one $29,995 product after 2-300 clicks and by spending maybe even the same $2 per click (depend on the nature of the product and the keywords you have to choose for it).

Therefore, you will become profitable by selling only one $29,995 product.

So, selling the big-ticket products, is the first and most important way of making our online business highly profitable.

Indeed, our online business system currently has several big-ticket products and hundreds of small products to sell and make commissions for the members.

It is not only that. There is another important way to maximize the profit of our autopilot online business system.

It is the idea of life-time allocation of the customers to the affiliates.

b. Life-Time Allocation of the Customers to the Affiliates

With ClickBank or Amazon, you will earn a one time commission if your referral buys the product.

But, you will have no share and no commission from the future purchases of the same customer that you referred.

It means you spend lots of time and money to refer customers, but then Amazon or the ClickBank vendor steals you customer.

They send so many ads to the same customer that you originally referred, and the customer can make several more purchases, but you won’t get paid at all. You can’t even have access to the email addresses of the customer your refer.

In our autopilot highly profitable online business system, the customer will be allocated to you forever.

Therefore, whenever he makes a purchase, they will pay you a commission.

c. Handling and Automation of the Marketing and Promoting of the Business, Customer Service, Sales, And… By the Company

This part makes the life of the affiliates and members much much easier.

They just participate and get positioned.

The company sets up the business for them and starts selling the products and taking care of the customers and payments for the members.

Therefore, the members make money without creating their own products, dealing with customers, building websites, selling anything, having any special computer skills and any business or management experience, and without leaving the comfort of your home.

These are all the features that has created an autopilot profitable online business system that its income has no limit.

3. What If the Members Want to Make Even More Money?

While the members can hire the system to make money for them, they can also boost their income if they want.

There are so many ways to do that.

For example, members can spend a portion of the money that they make, to promote their own business and make money.

When you have a business which is strongly scalable, the business itself will be the best investment opportunity for you.

It means, you can invest money in it to make it have a much higher income.

You can also create your own blog and build a community around it.

You can lead your followers the same way that you were led when you joined the program.

While doing this will boost your income dramatically, you don’t have to it, because the system is automated and makes money for you, as I explained above.

In general, there is no limit to expand a great online business idea and make it even more profitable.

When it comes to the Internet and the world wide web, the sky is the limit, specially now that there are some great business ideas available to anybody.

So, Here Is What You Should Do:

Now that you know how our online business idea works, you can participate and start making money with it, no matter if you are a 25 years old computer engineer or a retired 65 years old grandma or grandpa who is looking to have a good source of income to have a better and more comfortable retirement.

This program makes you financially free and even millionaire if you want.

You just need to join and start as soon as possible.

 Click Here to learn more.

How Will We Support You?

We help you maximize your online business profit.

Once you sign up for the course, and pass the stages, you will have free life-time access to our LuckScout Millionaires Club and our webinars.

We will share, the secrets with you that you can never find anywhere else on the Internet.

For example, we help you create online money making engines that boost your profit dramatically.

We help you use the YouTube, FaceBook and Google traffic to generate a lot more income than what the system makes for you on its own.

We help you create a strongly profitable blog that makes money for you consistently, even when you stop working.

After a short while, you will have a steady steam of passive income that makes money for you on its own.

We are serious about creating a millionaires community through our Wealth Building Strategy.

The online business system that I described above, is dramatically profitable enough.

Therefore, we choose it to help our followers create the strong source of income they need to have, to complete the first phase of our Wealth Building Strategy.