Tuesday, 21 January 2020

7 Profitable Business Ideas For 2020

Profitable Business Ideas

In today's article, we're going to share 7 business ideas that we have not discussed previously on this website, these are going to be some different ones that you probably haven't heard of. Often sometimes you'll see videos or blog posts with these business ideas that are very common like drive for uber and make money those are some very basic ones, these are going to be a little bit different I've done some of it in the past and others I just think could be really interesting idea that could be multi-million dollar businesses that you can make out of these or they could just be something to supplement your income, make an extra $10,000 to $20,000 per year, it really just depends on what you make off of it. But we're going to get into that in this article.

Let Get Started


1. Digital Ads Expert

Digital Ads Expert

If you look at the average age of a CEO, you look at the average age of people who are leading a company they're generally old, they're not senior citizens but they're generally old, the 40s, 50s or even older, a lot of these people don't know that much about social media they don't know how to run ads on Instagram, run ads on snapchat, tik-tok, Facebook, youtube, or google. If you can become an ads expert you can make a lot of money and this is something that you can learn for free.

You don't have to pay for a $2,000 Facebook ads course, you can do this for free looking up youtube videos on how to run facebooks ads maybe pay $10 for some udemy course and you can learn quite a bit by just doing some trial and error, helping companies make money through facebooks ads, through Google ads, youtube ads. 

Start learning it yourself online and start to market those services to companies, you can offer those services for free at first by telling some company something like, look, I'm willing to help you run some ads I'm not going to get paid you the business simply pays for the cost of the ads but I work for free for you because I want to just better myself with this and I think I can really help you out. And start to do some trial and error, start to make some money with it and start to use those businesses as reference points for future businesses in the future. 


2. Drone Pilot

Drone Pilot

If a business wants to do some shooting for maybe they want to do like a tour of their campus or they want to get some really nice commercial shots for a commercial, well, in that case, you can't just fly drones around for commercial purposes in the United States, for the most part, so what you need is a licenses to do that. Businesses are going to have to find a licensed drone pilot to get some drone footage for them, you can become that person. I don't want to downplay it's not something that's very easy to do you do have to become licensed you to have to pass a test.

But you can charge a premium amount of money to help people do this I know multiple real estate agents who will pay people to do a flyover of the property and get some pictures and videos of the house or the property that they're selling and that's something that you could do to make some money.


3. Charge Electric Scooters

Charge Electric Scooters

Not necessarily a business idea this is the only one on here that's really not like a specific business but it's still one that I think is something that you could certainly explore and do on the weekends, do just from time to time if you want some extra money for vacation or you want to get some Christmas presents for some people and you want some extra cash. Then I would consider charging electric scooters.

If you don't live in a city this might not apply to you as much but you can get paid a few dollars per scooter to charge these. One thing I want to caution you on this and the reason why it's not really a business is because you're in the hands of these scooter companies, you don't know the future, you don't know if these scooters are going to be around forever or how much they're going to be paying in the future, so because of that it's not something you can plan off of long term, but just kind of like this gig that you can do on the side to make some money.


4. Elections

Elections

This one you don't really hear of it very often but it's something that I made enough money on to essentially pay for a good portion of my freshman year of college which was making money off of the election.

This was a situation where the 2016 election, let's not get political here, but I think a lot of people weren't really big fans of either candidate as least, I mean in the United States, you can apply this to most places in the world but in the United States a lot of people weren't a big fans either candidate I found myself in that position, so I said, you know what? I'm not sure who's going to win this election but I want to make sure that I win in some way because I feel like I might lose either way because I'm not a big fan of either candidate.

I ended up monetizing the election by selling things that were closely related to these candidates without actually infringing upon any copyrights, there's a lot of different political bumper stickers that I was selling that weren't just political logos but things that you can use that are general saying or terms that you can throw on bumper stickers that you can make money on. 

I was selling those on eBay and I was selling a good bit amount I think I was doing over a $100 a day in profit from bumper stickers for what was taking me about 30 minutes a day to just slap some labels on some envelopes and mail them out. You can make t-shirts, you can make different things but I want to caution you on something, don't infringe upon copyrights, you can't just take somebody's campaign logo to slap it on a t-shirt and start selling it everywhere you're probably going to get sued for that don't do that.

Just find a way to do something without actually using copyrighted materials. The 2020 elections are coming up and if you're not in American you probably have an election cycle as well where you can find a way to monetize it.


5. Build Funnels

Email marketing

The best way to explain this is especially when you look at education businesses lets say people who are selling online courses or some other type of digital product, to be honest, about 90% of courses that are sold online like$2,000 showing you how to make a course are really not worth it. But there are ones that are worth it, what you can do in this case is not to sell an online yourself but rather to build funnels for people who are selling digital products.

I have a couple of friends who do this and they're making a lot of money off of this, when we talk about funnels what we're talking here is essentially you're going to help businesses bring in emails. Help them collect emails and then sell them a product, which then you can lead them to another product, and essentially creates this funnels where you're funneling these people in just from an email where they enter their email address and suddenly they're getting pitched all these things and some people get spammed with it a lot.

But honestly, it really does help businesses and they're willing to pay a lot of money, we're talking about thousands of dollars per month to help them with their funnels. 

You don't have to be a rocket scientist to do this there definitely a lot of skill but it's stuff you can just learn over time, learning how to do this and collect emails and send out these emails and build these autoresponders and just work with businesses to make a lot of money. They'll be happy to pay you a lot of money if you're pulling in an extra $20,000 for thems per month and you're going to take $4,000 from that they're not going to mind they're still making $16,000 in a lot of cases.


6. Screen Printing

Screen Printing

To give you prime example here, let's look at college campuses, there are so many clubs at college and they need somebody to print these shits for them where they bring out new shirt every month for their clubs, events, or maybe sororities or fraternities and they need these shirts made, you can do screen printing where you essentially just printing on a t-shirt or on clothing and selling it to this college student in the clubs and organization not only that but churches, schools, you can sell them to different community events.

It's something you can set up in your basement, in your garage, you will want to have some equipment it might cost you a couple thousand dollar to get started but then you can just do some guerrilla marketing around college campuses to start to gain some clients and start to get your name out there. 


7. Build Chatbots For Company Website

Build Chatbots For Company Website

You don't have to be a genius to do this it can still be difficult I don't want to downplay it but it's something that you could look into and that is by helping companies with their websites to have these chat Bots. When you go onto a website today and you have a question but you're not sure who's going to answer the question but then you have the little bar that pops up on the side where it's essentially this computer that you're talking to that helps you with your questions.

A lot of companies have this but still today in 2020 a lot of companies don't have this option you can pitch this to businesses tell them that you can build a chatbot where interested clients, interested customers can talk to this bots that you're able to set up for them and it's very lucrative there's a lot of money in this.



Conclusion

It's not going to be just clicking a button all day and making a lot of money I think the problem with a lot of these blog posts that I see about business ideas or making money, they talk about how to make a $100 an hour by clicking a button. But the truth is, you have to do something that most people aren't willing to do or that most people aren't able to think about and that's how you're going to make more money. You will always get paid for what you worth. And if you're just clicking a button for online surveys you're not going to make $100 an hour there's some type of scam behind it and you'll end up really not wining.

A lot of this business idea in this article does take skill not something you can just walk in and start doing but if anybody can do it then you would be getting paid a lot less. 

Monday, 20 January 2020

Frugal Living Mistakes That You Should Avoid

Frugal Living Mistakes

In this article I'm going to share 5 different money-saving habits that can end up really hurting you, sometimes when we make a financial decision we can be more short-sighted rather than thinking about 20 or 30 or 40 years down the road. If you're making these mistake you want to take this into consideration and hopefully change some of these habits in the future.

Let Get Started


1. Sacrificing Hobbies

That leads me into number one here which is a mistake that so many people are making when going about this financial journey of trying to better themselves financially by building wealth and saving money and the problem is when people are sacrificing certain hobbies or passions in their life so that they can save money.

The truth is, you're not going to be bringing money to the grave with you. I certainly not going to be doing that and you could be 65 years old on your way to your retirement party to kick off your retirement and get hit by a bus, now, I don't want that to sound really, really harsh, but it's the truth we could die any day so it's important to make sure that you are enjoying life and not just squirreling all of this money away for something in the future that you just hope that you can reach because the truth is, I don't know if I want to make it to age 65 or 70 or 75 and I don't know what the quality of my life is going to be like at that point.

Make sure that you are enjoying things in your life not even while living frugally. I think when people are cutting entertainment costs so much at the point where maybe they love movie and they say oh, I don't know if I can spend $8, just spend the money on it, just make sure that's factored into your budget if you're not keeping a budget that's what's really going to hurt you in the long run.

You can read the budget article down below
  1. How To Start Budgeting Plan When You Have No Money
  2. How To Manage Your Money - 50 20 30 Budget Rule
  3. Budgeting for Beginners: Cash Envelope System | Weekly Paycheck
  4. How To Budget Your Money (Best Strategy)

2. Too Many Sales

Being attracted to sales too much to the point where you're spending money that you would not have otherwise spent, and it's on something that maybe you don't even really like. There's a reason why stores put on sales in the first place, it's to get you into the door, that gets you in the door and you end up spending a lot more money than you didn't really think that you were going to spend in the first place.

On top of this, I think a real mistake that people make is when they go into a store and maybe they have coupons, maybe there are some really good sales, for example, on cucumbers for $0.25 a piece that used to be $1, they don't even like cucumber but it's such a good deal that they have to buy it and then they put them in their fridge, they remember they don't really like cucumbers and then two weeks later they open up the fridge they wonder what that really bad smell is and it's those rotten cucumbers in the back of the fridge that they just don't like.

Make sure that when you're buying foods you're buying things that you're actually going to eat and not just buying things that are on sale that look like good deals but are just something that you can throw out in a couple weeks.


3. Too Quickly

Trying to save money too quickly going from living this life where you have many things and many different expenses to absolutely nothing, and trying to live frugally very quickly. I think it's something that you want to gradually maybe ramp up over time and start to cut some certain costs, but if you absolutely just cut all of your entertainment costs, you cut all of your cost, you downsize into a smaller apartment, you get rid of your car, you do all these things to live frugally, and then all of a sudden you have nothing left. And you're living in a shack, that might not be the best option.

Find a way to gradually lower your costs, find a way to gradually bring your total cost of living down as much as possible without sacrificing the quality of your life.


4. Disregarding Health

This is when people make poor health decisions long terms because they want to save somebody in the short term. We could think about food choices when people are literally eating rice and beans every day and not eating the proper nutrients that they need to survive and live a long healthy life and they're not getting their vitamins and they decide, I'm not going to buy those vegetables or that fruit because apples are a little bit more expensive than a loaf of bread. You can end up cutting out some really essential nutrients or some protein that you might need to live a long healthy life.

If you're trying to save money in the short run because you want to retire at age 55 instead of age 65, you might not even make it that far if you're eating absolutely terrible food. This is just something that you really do want to think about when thinking about health.

Make sure that you're making those decisions for your dental health, make sure that you are using mouthwash now so that you can have fewer cavities in the future there are just some basics on that, that a lot of people neglect because they're trying to save $4 on mouthwash but they end up spending $400 at the dentist because they don't use the mouthwash.


5. Opportunity Cost

Thinking about the opportunity cost of every decision that you make. Instead of just think about the actual dollar amount of certain tasks and things throughout your life, think more about the time as well, and make sure you're factoring that time in. Because I've seen people who will walk 8 miles to save $7 on an uber trip. There's a point where it's better to pay that money and have an extra 4 hours in your day instead of having to walk 8 miles through that rain for something that you could have just spent a little bit of money on.

Don't be too hesitant to spend money on some little things that maybe is going to cost you a little bit of money, but if it's saving you a lot of time then that's very much worth it to myself because time as I said earlier, is one of the greatest assets that we have in our lives, it is a finite resource we don't get a time back we can get money back but we can't get our time back. So make sure you're factoring in both of those when making those decisions your lifetime.




I hope you got some value from this article

Sunday, 19 January 2020

Stocks or Real Estate Investing - Which Is The Better Investment?

Stocks or Real Estate Investing

In today's article, we're going to be comparing stocks versus real estate investing to figure out which investment actually better. I've made some money in stocks, I've made some money in real estate but in this article, I just want to take a deep dive into the pros and cons of each to figure out which is best for you.

Let's Get Started


1. Stocks Pro: Low Barrier To Entry

What I mean by that is that typically if you want to invest in one stock or one share of a stock lets just call it Johnson and Johnson for example, at the time of writing this article Johnson and Johnson are trading at about $130 a share. if you want to compare this to let's say a single-family rental property or investing in a real estate syndication, you're going to need $10,000 to get started in those kinds of investments. This is relative because let's just saying you make 15% on Johnson and Johnson and you make 15% ROI on your single-family investment property, you're still making 15% across the board. 

However, I think for the most newbie this is a pro because they can get started today for $130. And if you use like m1 finance or if you use even like a betterment you can almost invest in fractional share as well, to where you don't even have to come out of pocket with a $130 for one share. 

There's a lot of stuff on the market to where stocks may become appealing to beginners because they may not have that $30,000 down payment or the $50,000 payment for the syndication, they may get invested with stocks because of the low price per cost or low price per share.


2. Stocks Pro: Stocks Are Liquid

Liquid simply means that something is able to be bought or sold relatively easily. The reason why stocks are liquid is that there are brokers that have access to 100,000 of people with efficient markets, technology, that are willing to sell or buy that share Johnson and Johnson stocks. There's always going to be someone on the other side of the transaction for Johnson and Johnson, you have Bob in Baltimore, you have Sally in San Antonio, Bob wants to sell, Sally wants to buy, there's an efficient market there.

It's relatively easy to buy and sell the stocks of Johnson and Johnson, that's another pro for stocks is that they're very liquid. 


3. Stocks Pro: No Physical Work Required

It's not like where you buy a fix and flip property or you're renovating a single-family home for tenants there's no work. The only work that typically goes into investing and buying stocks is that you may have to research some stocks, you may have to read some annual reports, you may understand the brokers that you want to invest with but this is not necessarily physical back-breaking work.

A lot of people actually invest in index funds where they literally just deposit their money and let it ride without even looking at it for months at a time.  


4. Stocks Pro: Stocks Are Flexible

What do I mean by flexible? They're flexible in the fact that you can allocate them into retirement accounts like a Roth IRA or even a 401k, there are both great ways to invest with either tax-free or tax-deferred and then you can also allocate money into them just on a speculative basis if you think a certain stocks or a certain index fund or a certain mutual fund is going to grow over time you can just invest in that fund or that stock specifically.

If you think it's going to go down you can shot the stock but the nice thing is that you can actually allocate your money in stocks however which way you want. To be quite fair though, you can stick invest in physical real estate using a self-directed IRA or a self-directed 401k.

What are the first cons of stocks or perceived con?


1. Stocks Con: Not Tangible

People that like investing in real estate the first thing that they'll say about stocks is that they're not tangible, so what does this mean? Tangible I something that you can touch, feel, smell, stocks they used to be paper so if you bought a share of ford maybe 60 years ago you would literally get a certificate or a piece of paper saying hey, you own X amount of share of Ford Motor Company.

Stocks are literally pixels on a screen they're not tangible you can't touch them, feel them, smell them, as opposed to real estate where obviously I'm sitting in a house right now, standing in a house right now, you can live there, you can touch it, feel it, smell it. Tangibility is a big one for people that aren't a fan of stocks.


2. Stocks Con: You Can't Control Them

Let take the Greek economic crisis for example, the Greek economic crisis affected American stocks negatively. So can you control the greek economy or the Chinese economy or the whatever economy? No, you can't, so it's out of your control. Meaning that just because somewhere else in the world is doing poorly economically they may trade with companies in your portfolio, hurting that company ultimately, hurting your portfolio.

The price of a stock is the price you can have foresight into where that stock may go in the future but you can't control it. Real estate you can actually force the appreciation which we'll talk about later in this article. 


3. Stocks Con: Emotional / Irrational

Sometime people become very married to their positions, it can become very emotional and irrational. If you're investing especially in an individual stock and you're not disciplined, it can be an emotional ride and you can actually get very emotional, make emotional decisions. Who here has regretted making emotional decisions or doing something out of emotion as opposed to logic.

I know we've all either been in an argument with our significant other or we've been in a heated battle on the playground or whatever, it could be a sporting event, sometimes our emotions get the better of us and we make rash decisions or say the thing that we don't really mean. Emotion and irrational buying decisions that can definitely be a con for individual stocks and also a certain portfolio.


Now that we've talked about the pros and cons of stocks, let's talk about some of the pros of real estate.

Real Estate is one of the most powerful wealth-building tools throughout the history of the world. There's always bee lords and serf and landlords and people that live in their building or you occupy their space for their business, this is basically the landlord and the tenant relationship.


1. Real Estate Pro: Income Producing

The real estate produces income in the form of residential or commercial leases. People need a place to live, businesses need a place to conduct business and operate, depending on what type of property you're in whether it's like single-family, residential, apartment buildings, flex space, retail and industrial. 

You're creating a stream of income or cash flow, so every month or however your lease agreement works, this property is hooting off cash flow. If you're an efficient manager or having an efficient manager working for you, if you keep your expenses low and your leases are at market rate and you're providing a good place for that tenant to either live or conduct their business you should be making a profit.


2. Real Estate Pro: Tangible

Unlike stocks being those pixels on a screen that we talked about, real estate is a real tangible investment you can touch it, feel it, walk through it, sleep in it, for some people it makes them more comfortable investing in a tangible investment rather than something that they can't see or feel. It's one of those things where it's like see it believe it, that's why a lot of real estate investors prefer real estate as opposed to stocks.


3. Real Estate Pro: Depreciation (Tax Benefits)

This is just one of the tax benefits but I want to talk about depreciation specifically. The IRS uses depreciation to recognize that an asset obviously has a lifespan that it wears down over time, so depreciation is considered a paper loss which means that you didn't actually spend any money or incur any money out of pocket but you still get to write off that perceived expenses.

Let's say, for example, you have a single-family home, you're realizing all this rental property income and your tenant is paying you every month, you still may not have to pay the full amount of taxes on that exact gross income because you're allowed to depreciate that property over time. The IRS really like real estate and they want to keep that blood flow or the circulation of real estate going within the United State specifically, and that's why there's a lot of favorable tax advantages to real estate, depreciation being just one of them. 


4. Real Estate Pro: Equity Buildup

Equity is what your ownership percentage of the property is if you owe nothing on it you have 100% equity in that property. 

The nice thing about real estate is that you can use debt to acquire real estate so the income from your tenant is actually paying down your mortgage. Let's say, for example, you buy a $100,000 house, you get into it with a 20% down payment meaning your cash outlay is $20,000, the $80,000 plus interest overtime is being paid down month after month by the tenants that live in that property or use that property. 

Basically, your cash outlay is $20,000, the rent that you're receiving from this $100,000 property is being used to pay down $80,000 debt, thus increasing your equity. You're owning more and more of the property over the course of 15 years, 30 years, whatever, however, fast you pay it off. That way you get 100% equity in the property meaning you owe the whole thing. But your tenants have been the one that's been paying off your mortgage.

At the end of the day, you may control this asset that worth $100,000 or more after those 15 to 30 years or however long that mortgage was on the property. But you own a 100% of it after your debt is paid off.


5. Real Estate Pro: Appreciation

Appreciation is simply is how much your property appreciates over time so over the long-run real estate is typically average and say 3% to 4%, there's obviously a lot of areas in United State where appreciation has been significantly higher than 3% to 4%.

The other thing with appreciation with real estate is that you can force appreciation, meaning that if you have a property that is in area where all the rents are going for $1,000 and you find this old building that may be a little bit under the weather, dilapidated, where the rents are $750 a month you have the ability to raise all the rents of those apartments by $250 meaning you're forcing the appreciation, you acquire the asset for some amount of dollars, you do all the updates that you need to do and now you can rent out those suites for a $1,000 a month and get it to market rates. That is what we call-forcing appreciation.


1. Real Estate Con: Real Estate Is Illiquid

You know how we talk about stock being super liquid you can buy and sell trade there's a butt for every seat, there's a billion Baltimore, Sally in San Antonion they're always going to find a buyer and seller in that market. Real estate is not the same, you can't just buy and sell real estate like you buy and sell stocks, sometimes properties sit on the market for years unless they're deeply discounted at some point, so keep that in mind.


2. Real Estate Con: Lots of Work!

Real estate can be work-intensive so it all depends in your investment style, it all depends on what property type you're investing in, if you find a syndication where someone else is managing it, someone else is running the deal, you just invest $50,000, that is a relatively passive investment, however, if you're the Barbara running the barbershop and you're buying these single-family homes and you don't have a manager in place, well, guess what, who's making the calls, who's doing the maintenance, who's doing all this stuff.


3. Real Estate Con: High Barrier To Entry

When people see real estate they can be intimidated by the price tag, is definitely more expensive than stocks, again, it can be more intimidating, the advice is to educate yourself using resource like bigger pockets, forums, podcasts, the best advice that I can give you to get into real estate is not try and do it all yourself, yes, it's more rewarding and you'll see a higher ROI but if you build a team, if you have a real estate agent, a CPA, contractors that you can trust, you can get out of this high barrier to entry if you just systematize the business.



That is it for stock vs real estate, I hope you got some value from this article.

Wednesday, 15 January 2020

How To Prepare For The Next Market Crash In 2020 Recession

2020 Recession

In this article, we're going to talk about the 2020 recession and how I will help you prepare for the next market crash. So if you've been following financial news you can obviously see all the articles headlines and obvious signs that we're headed for a recession eventually. So in this article, I wanted to talk about my personal prediction of when this recession will happen, defensive strategies that will help you prepare for the next market.

Let Get Started


The Recession Will Not Be A Bubble

My ultimate prediction is that this recession will start sometimes in 2020 and it's not going to be a bubble. it's not going to be like if you remember in 2007 we had the subprime mortgage crisis where people that were making $50,000 were getting qualified for houses that cost $600,000 this is were cops and nurses living in mansions. This is not the issue, it's going not to be like the housing bubble, this is going to be long and slow because we've been pumping in artificial money into the economy for about 5 or 6 years now in my personal opinion.

With that being said, of this being a long and slow recession I want to start with my defensive strategy for everyone first.

Defensive Strategies


1. Pay Off All High-Interest Debt

What I want to say with this is pay off all debt period if possible because these high-interest debts or all debts, in general, those monthly recurring payments of stuff that you bought that you don't need just to impress people you don't like it's going to drain you if you lose your job in a low and slow recession. 

Read: How To Get Out Of Debt Fast - Debt Snowball vs Debt Avalanche

It's going to be like debt by a thousand cuts, you're going to have the house, the car, the furniture that you finance, the thing you put on layaway, all the stupid things that you don't need, consumer electronics, the TV, the appliances all that stuff, the little $50.00 a month payment, it's all going to come back to bit you in the butt.


2. Establish A 3-6 Month Emergency Fund

You should have this anyway regardless of the good economy or bad economy or recession or not, you need a 3 to 6-month emergency fund because you may get laid off during this time period. A lot of companies are cutting their workforce and you may be one of them. If you get laid off this will save your butt. End of story.


3. Do Not Panic Sell

If you already have positions establish in the market do not panic sell, this is the worst thing you can do. You've spent all this time and money investing in these companies and you see them go 10% 15% 20% down you're thinking only crap let me get rid of this falling knife, no, do not panic sell. 

If you look at historic charts you will see that even in 2007 or 2008 when most of the stock market was losing 40% of its value, all those companies doubled overtime over the next 10 years.


Now, let's talk about offensive strategies. Once you've done all of the defensive strategies that I've talked about, you need to go on the offensive.

Offensive Strategies


1. Build Your War Chest (Money)

That war chest is going to have all your money and gold bars and silver. Once you start building your war chest this is the money that you are going to use to invest and this is the money that is going to grow for you. 


Most fortunes are made during a recession. 

If you pick up a bunch of rental properties in 2007 and 2008 they've pretty much doubled in value if not tripled in value at this point and you've also been making a nice cash flow this whole time. You need to save as much money as possible to use to invest and you need to grow that war chest. 


2. Update Your Resume And Network

Go on LinkedIn then get LinkedIn premiums started going to all the network events in your area because if you do lose your job you're already one step ahead and with the hiring process at a new company or you're already making connections that could save your butt during a layoff. This only applies if you think you're actually going to get laid off. 

If you own your own business obviously you don't need to do this but if you're a w-2 employee or an office worker or just someone that's looking for a new job you absolutely need to update your resume and put yourself out there.

Networking is all about who you know not what you know, and when it comes to getting a job. And the best time to find a job is when you already have a job, that's why we're being offensive so even if you're already employed go on the offensive. 



I hope you got some value from this article.

Tuesday, 14 January 2020

The Early Retirement Downsides You Aren’t Prepared For.

Early Retirement

Early retirement has a downside you are not prepared for. When you've got a lot of time on your hands you get deep into your own headspace and when you're in the deep, deep headspace you go down some weird rabbit holes, and you start getting things like "worried". You get a little bit of anxiety about the future


  1. Will, I Enough?
  2. What If My Plan Changes?
  3. What If I Go From Being Okay With Two Kids To Needing Six Kids?
  4. What If I Go Through a Divorce?
  5. What If I Want To Travel Summer?
  6. What If I Meet Someone And We Want To Start This? Extravagant Business And I Need Extra Amounts Of Capital To Do That

What if the choices that I made to get me from where I am now will not get me to where I wanted to be, I should've stayed on the other track and although I've made the wrong decision I don't know.

That's sort of mindset that you will get.

Today we're going to talk more openly about some of the negative things associated with this dark side of early retirement.

Let's Get Started

This is mostly not going to be about money


Identity Crisis

It's one of the big things we go from being respect, consultants, business owners, accountants, maybe you work in the oil field and that's how you identify. people know you as the roofer, they know you as the landscape guy, they know you as the pest-control operator, the accountant. That's how you're branded, that's how you're known and if you just quit your job and jump into early retirement. What you're going to find is that you no longer have the identity that you had before.

Whenever someone asked you what you did for a living, you knew you could say hey I'm the accountant, and they can put you into their archetype and say that's what John is all about. He's the business consultant or he's the real estate agent, or whatever it is that you do, it helps you identify with who you are. You will find that you're lost in early retirement if you don't plan.

By the end of this article, I'm going to tell you some of this strategy I've used to cope with a lot of this downside I'm talking about. Specifically around your health, believe it or not, studies have been shown that when people retire what you will find is that people who early retire their health extremely improve or their health falls off. They have bad health decline, and that's for a few reasons below.


The Lack Of Social Identity And Social Issues With Early Retiring.

You spend a good portion of your life in the working world, your friends were in business, your friend was also kind of tied in with everything you did and those people now work 8:00 to 5:00 and you don't work 8:00 to 5:00 so when you want to go hang out or go golfing they aren't there to hang out with you or to go hiking or to go golfing. So you have to sort of separate yourself from your old friends because you're doing different things than their and your time schedule looks totally different than they do. 


Chasing Free-Time In Early Retirement

The free-time is a double-edged sword. On one sense you're craving that free time in early retirement many of us are chasing that freedom but that freedom actually doesn't solve your problems. You think the early retirement is going to be the silver bullet, it's going to be a trip to Costa Rica and all around the world from Russia, China, and Brazil and all the way back. but in reality, it's not the silver bullet, it's doesn't make you happy.

It gives you a whole bunch of time if you are unhappy and dissatisfied before you quit your job more likely than not you will just have more time to sit and wallow in your unhappiness. You will not have a purpose, early retirement itself is not a purpose, it is not a hobby, it is not something that will drive you and give you intersection of what you're good at, what you're meant to be, earlier retirement will help you facilitate that but it will not solve those problems for you and it does not make you happy. 

Maybe you go from working 8 to 6 and commuting and all the other chores in life you go from not spending any time with your kids or your spouse to all the sudden being home all the time and if your spouse retires with you all of a sudden you might have spouse overload. You might have kid overload, you might have too many spouses in your life, you're not used to spending 80 hours a week with this person you have to learn how to adapt and change in this behavior and people in early retire went the way of divorce.


Earlier Retirement Can Make Some Of Your Issues Worse Not Better.

Just by reaching financial independence your problems aren't just solved. You might be extremely motivated by financial independent and now you are buying a property and building this awesome company, but sometimes you will be wonderful and not every day, sometime you will get this feeling that maybe you didn't make the right decision, that maybe you should still be in the corporate world, maybe you still be out there working.

The beautiful thing about early retirement it's like you're fixed you can't go back, you could always go back and get a job, you could always open a business or start an entrepreneurial venture to find that thing that you're after.

You have to realize that it's not going to be the solution to your problem, it's not going to solve those deeper seeded issues and in fact, when you're busy you don't have to think about those issues that are underlying your life. 


Money Itself Doesn't Create Happiness

If you have millions of dollars in your bank account before you retire early, it doesn't make you happy. Freedom of time doesn't make you happy. This is why multi-millionaires and billionaires even, are dissatisfied with their lives because early retirement itself, that freedom of time all of that money that comes with it that you work so hard to get it doesn't solve your issues you may still have an identity crisis.


Jealousy

You will get a lot of jealousy. People who are grinding their jobs who are paycheck to paycheck they can't understand early-retirement they're just angry at you and that anger and hate prevent you from having a meaningful connection with that person.


Unconventional Weird

Who is this kid in his 20s or 30s or even if you're in your 40s retired it's not normal, people don't know how to react to that so they just label it as weird like this guy is weird.


Unproductive Leech

He isn't working and contributing to society, he isn't in the normal mold of society, he's not paying taxes, he's not carrying his fair share and because he's an unproductive leech, how do I get value from him. That person sees you as an unproductive leech they say how can this person add value to my life, he's retired he's not an accountant he can't help me of my taxes, he's not a real estate agent he can't help me buy a house, he's retired so he can't add any value to my life.

Those three categories are very common at early retirement.


  1. Jealousy Type
  2. Unconventional Weirdo
  3. Unproductive Leech

You can start with "hey, I'm a real estate investor" that's how I start. Just because it's so weird to say "hey I'm Canada's youngest early retiree" people don't want to hear that they can't process it, it really just garner's negative attention is what I found in most situation so I don't ever lead with that and you may have that struggle yourselves if you're early retired people are going to put you in one of those archetypes, there may be that one person who's just genuinely happy for you and also their network to be friends and in those cases you're not going to be throw in one of those three categorizations I just threw our for you but it's a real challenge.


How To Be Happy In Early Retirement

Find that thing you're meant to be doing in your retirement, joining hobbies, creating social bonds and structure, the structure is what is needed in early retirement, you can create the structure that will help you find meaning in your life and find happiness and joy. Because there's a lot of things that are dragging down, there's a slot of downside to early retirement that people don't factor in.


Solution To be Happy In Early Retirement

If you've been able to unlock early retirement. I don't care who you are, the traits, the personality, and the skills, those skills that got you towards your early retirement those skills they are the same skills you're going to need to ensure you can cope in early retirement. So what got you here is going to get you the rest of the way.

If you figure out how to spend less, how to earn some more money and how to invest your return you're already there you already have the predisposed skills to make it through this and to solve this problem you just have to spend some time to think through them. What do you want to be doing? What a day look like? What is a month's week look like?

If you reach your early retirement and you're not happy, you will find that you're completely dissatisfied, make a change. And some of those things are like joining hobby groups, pickups a sport. Etc. 



I hope you got some value from this article

Saturday, 11 January 2020

How Much Money You Should Save By Age

How Much Money You Should Save By Age

Everybody knows that it is never polite to talk about money in public and under no circumstance should you ever ask somebody how old they are. So how much money do you have at your current age? Today will are going to talk about exactly how much your net worth should be at your current age, and how much money you should have saved up by now and beyond.

Let's Get Started

When it comes to calculating your entire net worth first we're going to do that by adding up all of your entire assets this includes:

  • Investment Account
  • Retirement Account
  • Home Equity
  • Physical Valuables
  • Some Cash That You Have

Liabilities

  • Student Loan 
  • Credit Card Debt
  • Mortgage Loan
  • Car Loan
  • Debt And Other Loans

Anything and everything where you owe money you're going to add that number up and you're going to subtract it from your assets and whatever number that is, whether it's positive or negative that is your net worth and don't worry if your net worth is negative we're going to cheer it up later but statistically speaking people in their 20s and even, the early 30s can have a negative net worth because they're oftentimes buying a new home, buying a new car, they're starting families they owe some money and as a result, their net worth is negative. So don't freak out if yours is negative. 

They looked at the average net worth of a U.S. family and they found that in 2016 the average net worth was $692,100 which is so hard to believe because that same year they did the same study for a median net worth which turned out to be $97,300, so huge difference. Why is that, well, math is sometimes funny because on average both males and females have one testicle.

When we're looking at Gausain date which is a bail distribution, medians are more accurate. Averages are only more accurate if we're looking at data that has a double exponential distribution. So for this one, we're going to use a median.


Net Worth By 20

Your net worth at 20-years old should be $0. That's right if you have anything above zero dollars you're doing better than the average 20-year-old but we want to be a lot better than the average 20-year-old so here is my challenge to you as a 20-year-old.  


Get Yourself An IRA By 20 Years Old ( individual Retirement Account)

It's not something I got myself until I was 30 years old but I wish I did it when I was 20, my circumstance has changed just this year which I contributed my max which is $5,000, you don't have to put in that much money you can just get yourself a free account with Weeble or m1 finance, and contribute whatever you can and I promise that is going to grow into a lot of money by the time reach 30.


Net Worth By 30

  • Get An HSA Account And 401k Account
  • Credit Score Between 700 to 70

More importantly though by 30 you should have an HSA account if your employer offers it, you should also have a 401k account which my parents didn't set up until they were in their mid-40s and I help set that up for them and the last thing you should have is a credit score between 700 to 750 if you don't, that is okay, it's never too late to start building but start on that and you absolutely do not need to buy a house or you do not need to be married either.

Also by 30 years old, you should have at least 1 year's worth of your salary. For example, for me when I was working in my 20s as a video editor as getting paid roughly $50,000 per year so by 30 I should have at least $50,000 saved and invested somewhere which luckily I did and I did that by saving 50% of my income for 5 years and I invested it into free Robinhood brokerage account where I saved $130,000 and in the course of the last 5 years, it's grown to almost $200,000. Which shows you the power of compound interest of saving and investing as early as possible.

Net Worth by 35 - 2x Annual Salary Saved And Invested

By 35 you should have twice your annual income saved and invested. 


Net Worth by 40 - 3x Annual Salary Saved And Invested

By 40 you should have 3 times your annual income saved and invested somewhere. 

Read: How To Start Investing In Dividend Stocks For Passive Income

For me $50,000 per year times 3 I would need $150,000 by 40. Now let's say you just turned 40 and you realize life and you're not happy with your job or your situation or your income, well, just know this, statistically speaking you are within $1,000 of the most amount of money that you're going to earn from your current position unless something drastic changes like you change jobs or you get some major unforeseen promotion which usually doesn't happen.

I realized this at 26 years old that I hit my ceiling I wasn't going to grow in that industry and I was like "I have to get out". So at 28, I quit and I changed directions to try to grow in a new industry where I thought I could have maybe more potential. So again, if you're in your 30s and you're not happy please consider changing directions now because after 35 it becomes significantly harder to leave your job.


Net Worth By 50 - 4x to 6x Annual Salary Saved And Invested

Around this age is when compound interest takes over and it starts to grow your money faster than you're able to contribute to it. So for example, if you have $500,000 invested somewhere and it's growing at just 10% that 10% represents $50,000 per year and most people cannot contribute $50,000 per year so this phenomena stat around this age. 


Net Worth By 60+: 8x to 10x Your Annual Salary Saved And Invested

By your 60s and well into retirement you should have 8 to 10 times your annual income saved and invested.

If you want to know your magic number just take your annual spending and then multiply it by 25 and that's how much money you need to be invested, at, least 4% to support you in retirement.


  • Annual Spending X 25 At 4%

That is the rule of 25 it's a really cool thing. Now I tell people to aim for a 50% savings rate where most institutions will ask for just 15%, which is still good but if you're ready our article, 50% is what we want you to aim for. So set this new year's resolution for 2020 today. 


Conclusion

Before you aim for that 50% savings rate the first thing I want you to do is at least get yourself a job that pays you to know less than $50,000 per year otherwise it's going to be extremely difficult. 

But it's our net worth really that important? Not really, what's more, important is learning how to live and be happy with less money, you can do that, that's an extremely important skill to master in life. Focus on the biggest wins first, rather than focusing on saving first. Get that job that pays you a lot even if you hate it even if you can barely tolerate it because you're going to use it as fuel to motivate you to start that side business that you always wanted to do.



Alright, I hope you learn something from this article

Thursday, 9 January 2020

10 Side Hustle Ideas For 2020 That You Can Start Today

Hustle Ideas For 2020

We're going to talk about the 10 best side hustles that pay well in 2020. I'm pumped for this article because I've seen a lot of these side hustles that I'm about to talk about in action with other creators, with other friends, with other people I've met this year on my journey and they're only going to become more in demand in 2020 and beyond so definitely don't take these side hustles lightly that I'm about to talk about in this article today.

Read: 15 Side Hustle Ideas To Make Money as a College Student

There are side hustles in here, where if you were to work maybe 30 hours a week, you could earn up to an extra $3,000 per month which really, for most people including me, is about a full-time income. So without further ado, let's go ahead and get to number 1 on the list of 10.


1. Beta Testers

  • Usertesting
  • TrymyUI
  • Userlytics
  • Respondent.io

Not to be mistaken with scammy surveys that you could take online that pay you like $0.20 for a half-hour. These websites are definitely great options if you want to be a beta tester and help out a new business or a new company figure out if their new website or their new application is legit and the user experience is nice. These are a couple of the website, 

Usertesting

Usertesting is a company where you can earn potentially up to $60 per test.  Now, this is how you would do a test: Is you would visit a website or an app, complete a set of tasks, speaking your thoughts out loud, and you get paid.


TrymyUI

The other one is Trymyul Tester, it's really cool because it's virtually the same thing, you can get paid to use websites and apps and give your honest feedback. So you will get paid approximately $10 for each test that you take, which lasts up to 20 minutes so in an hour you could make $30 an hour, That' s a good amount of change. 

What I like about this site, for example, is that you get paid every week and through PayPal so it's a really easy payment system. 

Userlytics

Another one is userlytics where it's the same idea, you get paid to test websites and applications, you interact with a web or mobile app and then you get paid via PayPal, these various amounts. $5 to $20. 


Respondent.io

This is more study based and so the qualifications are a little bit more strict because they really want people who are a little bit more of an expert and have a background in this study research, but essentially it's the faster way to find high-paying research opportunities. So you get paid for basically participating in research studies. So, this application process is a little bit more stringent, but they have paid up to $10 million to respondents and the average hourly pay is $140.

Read: 8 Uncommon Side Hustles To Make Money In 2020

Now, if you think about that, if you just work one or two hours per week in addition to your 9 to 5 job, that's an incredible amount of side income per month for eight hours of work additionally per month.  Definitely check out these 4 websites if you're interested in being a beta tester and making good money with a couple extra hours of work per week.


2. Online English Teaching

  • VIPkid
  • Palfish

VIDkid

Being an online tutor for people who want to learn English. Like vipkid, and I really do think that that is a great company to start. You do need a college degree and some experience to apply and work for them and the people that are tutoring and teaching online through VIPkid average a monthly salary of about $2,000 per month.


Palfish

With palfish you help tutor kids that live in China and it's cool because it's like conversational English, you do have to curriculum but it's not like super strict and that you have to really worry about focusing on the curriculum every single class. You do want to be prepared, you do want to do well with the student, but the cool thing about palfish is that you can literally make money from your phone. You can make $20 an hour. You do need a bachelor's degree, any type of bachelor's degree, with palfish. So palfish is definitely a great application that I can say "I've seen it work."


3. Focus Group


What exactly is a focus group? It's where you're able to participate in a research study, and it is with a group, and it could be on any topic like advertising, dining, technology, just all kinds of stuff that companies and different people want to find out the different trends. And so the idea is you would go and meet with a group either in person, or you could do it virtually on a webcam, online, and there are different websites, and they are listed above where you can find out what city the focus group is in and how much you would get paid, but I personally know other creators and entrepreneurs that have done this before and they have said they've made up to $250 for just 2.5 hours of works.

One of my friends told me that was specified with a company called Vanguard, and then he also made $1,000 for participating in a study that was 8 hours long. Let me tell you, that's a lot of money for 8 hours. 


4. Youtuber

This industry has proven over and over in the past decade that it is a very lucrative opportunity, not only if you're trying to build an online business but to build a brand. It's the only platform really that easy the creator to produce content on their platform and so the reason why I say youtube is because if you have any type of expertise, even if you don't think you have an expertise you probably do I'm willing to bet, there's something that you know and that you can share with people that other people don't know and they want to learn from you. So the idea is to create a Youtube channel giving value based on what it is you know, there are so many ways to make money with youtube

  • Affiliate Marketing
  • Adsense
  • Creating Your Own Digital produces
  • Brand Deals
  • Sponsorships Deals

I most say that it is very slow in the beginning, you won't be getting tons of views and subscribers and traffic, but if you work on this youtube channel for a year consistently you'll be amazed at what you can accomplish and the money that you can make, the income that you can make, from a small youtube channel and as it continues to grow everything will start to multiply. 


5. Write Website Content

The idea of this job is you're writing for different influencers, you're writing for different companies, you're writing for a business that needs people to create content on their blogs or on their websites. This could even be copywriting, copywriting is basically the writing or the language that goes on an advertisement or in an email that's emailed out to people's email subscribers that are subscribed to their email list, so there's a lot of demand for writing that companies need for people like you. You don't even have to be an expert writer, have a degree in English, if you're a competent writer then you can easily qualify for this job and build up the skills that you need to be a website content creators.



There's a couple of websites that I'm wanting you to take a look at, where there's really no excuse if you want to get into the field of, being a blogger, being a writer, making this your freelance side hustle, there's no excuse and I'll list the website below


Alistapart.com

They tell you exactly how to write for them, what they're looking for, a couple of different tips if you're just getting started, what they publish, how to submit and stuff like that. 

iwriter.com

For example, if I need a writer or someone to create some type of content for me, I can go on this website and hire someone to write. But if you want to go on there as a writer, you can go to the writer's application and fill it out. So that you can get your feet wet with writing some content on this website 


6. Medical Coding

This obviously is in the medical field, so what this means is you don't have to be like a registered nurse in order to do this but a medical coder basically codes any type of diagnostic or event that happens in hospitals, you do need to get a certification to do this job and which is available. 

You can easily find out how to take a course to get certified for this, but a medical coder most of the time is a field or a job where you can work from home. For example, this company called imedx, they have a lot of positions available where you can work from home

The idea is if there is a surgery in the hospital if there is a diagnosis, whatever the cases maybe you learn how to properly code these events and so that way it can go into the database of these different hospitals so definitely if the medical field interest you. You can check out medical coding.


7. Transcriptionist

A really great website to get started is with rev.com. And so the cool part about this is there is no age requirement you can actually if you want your teenager to get a side hustle and to start making an extra money you don't have to be over 18 you could be under 18, I'm not sure what the minimum age is, but the idea is there are 3 levels to being a transcriptionist. 

You're like a rookie, and then there's a middle level, and then there's a higher level where you need, at least 800 audio minutes and so when you first start out you can choose to be a write transcriptionist, you can choose to write captions, subtitles, or even be a translator, and you get paid more by the category you move up, you get paid $0.35 to $0.90 per audio minute, let's say the person turns in 31 minutes of audio you would get paid by transcribing that minute and how long it takes you to do it. 


8. Urbansitter

For those of you who have small children or for those of you who have been into babysitting before and don't have children, it doesn't matter this still applies. So with an urban sitter, if you go to urbansitter.com 

You have the opportunity to become a babysitter or a nanny and get paid for babysitting. So this could be, as you're watching your own children, you could look after other children and get paid to do it. And the way it works is really cool because you keep 100% profit of what you actually make while you're babysitting, and so urban sitter doesn't take a cut. Obviously, you can set your hours of which you want to work and it even says top sitter earn a $1,000 a week and set their own schedule. "$1,000 a week! That is amazing! So if you are a stay-at-home mom, or maybe you have a part-time job and watch your children on the side, this is a great opportunity to make extra income.


9. Home Stay

Homestay is similar to Airbnb, Airbnb is getting extremely saturated, especially for people who want to host their apartment, their rooms, there are different chair stays on Airbnb, and so homestay is a little bit less known and you, as the renter of a room or a house or whatever you have, can get paid a little bit more since the competition is not so high,

I mean Airbnb takes an outrageous amount from the payment, so homestay is a really great option for you and for the traveler or the person that is visiting and needs a room or an apartment to stay. If you do have a spare room or a place that you can rent out for a night or a couple nights to somebody else. 


10. Rent A Friend

The idea is if you think you're somebody who is kind of social, or maybe you're in college and this is something you're supposed to be doing anyway, being social. So the idea is you would go to rentafriend.com and let's say you're new to a city and you want to hire a friend to come with you to a sporting event or, they have here on the website:

Skiing, parties, hiking, music, poetry, teaching, like anything you want, any type of activity where you want a friend you can go to this website and connect with people I mean it sounds kind of weird but I think this is actually kind of cool because when you're new to a city it's really intimidating and this is somewhere where it's a trusted website. Everything is always updated.






I hope you got major value from this article and are ready to start racking in that side hustle money in 2020.