Tag: Invest

Picking the Best Air Conditioner for Your Apartment

Looking to cool down your apartment? With spring and summer approaching soon, it’s important to start thinking about how to prepare for those hotter months and stay cool. While many apartments come with built-in air conditioning (AC) units, many do not. So what are your options for cooling down your space? In this article, we’ll go into detail about how to decide what is the best air conditioner for your apartment.

How do air conditioners work to keep your apartment cool?

Air conditioners have been around for a very long time, in fact, the first air conditioning system was developed in 1902.The basics of how air conditioners work are similar to how a fridge works. Air conditioners use an internal refrigerating system to take in hot air and cool it. The hot air, absorbed by the AC unit through various coils and systems, turns into a gas. From there, the unit converts it back into a liquid.

Next, the hot air pushes out the back through vents or a window and the cool air pushes into your apartment. The website HowStuffWorks.com puts it very simply: “Think of it as an endless, elegant cycle: liquid refrigerant, phase conversion to a gas/heat absorption, compression and phase transition back to a liquid again.”

air conditioning

Important things to understand when selecting your AC unit

There are a couple of other things to consider when picking which type of AC unit to use for your apartment. You’ll want to consider things such as cooling capacity, BTUs, energy efficiency and costs.

BTUs

BTU or British thermal units is the amount of energy it takes to heat or cool one pound of water. For air conditioners specifically, the BTU refers to the amount of heat your unit can remove in an hour. Some units take more than others. For instance, a window unit takes anywhere from 3,000 to 25,000 BTUs, whereas a portable system can use anywhere from 8,000 to 12,000 BTUs. Make sure to take the time to research this before deciding on which unit is best for you. Learn Metrics has created a more in-depth chart for understanding different BTUs for different sized apartments.

Cooling capacity

When picking out your AC unit keep in mind its cooling capacity. The size of the area you want to cool will greatly impact your choice. Different units cool different area sizes. Take portable units for example — these are usually only able to cool the area they sit in. Window units on the other hand are a better option if you are looking to cool down an entire apartment.

Energy costs

The cost that it takes to run an AC unit is something else to consider. The price can greatly change depending on how big your unit is and how big of an area you’re trying to cool. On average it can cost anywhere from $14.40 per month to $211.20 to run different types of AC units.

Best air conditioner options for your apartment

Now you know how air conditioners work, how do you know which type is right for your apartment? Here are a couple of different options that you can choose from.

1. Portable air conditioner

Portable units are one option when looking for an AC unit. They come in various sizes and work in many different rooms. Often referred to as “portable swamp coolers” or “evaporated cooling” these two systems work similarly to other AC units but primarily rely on water. Another difference is their setup. For instance, some require their own voltage plug and most require you the ability to vent the hot air out of a window.

Another great question to ask when thinking about portable units is, “Can you use a portable air conditioner in an apartment?” The answer depends on your apartment complex and its rules. In certain apartments they are not allowed, so make sure to check with your apartment before you invest in one. Here are some pros and cons of portable AC units.

Pros:

  • Move room-to-room
  • Cost-efficient
  • Come in various sizes
  • Great if you have a strict HOA or landlord and can’t install a window unit

Cons:

  • Sometimes are less energy efficient
  • Can be noisy

AC unit in a window against a brick wall

2. Window units

Window units are very popular throughout Europe and make another great option for your apartment AC unit. Set in a window, they function much like other AC units and are capable of cooling medium-sized spaces. Here are some of their pros and cons.

Pros:

  • Easy to install
  • Inexpensive
  • Come in various sizes to fit your windows
  • Can come with a heating system

Cons:

  • Not portable and stay in the window you place them in
  • Not energy efficient

3. Wall-mounted

Wall-mounted units are a great option for people who are living in older buildings that tend to get very hot during summer. Here are the pros and cons of these AC units.

Pros:

  • Easy to install
  • Don’t take up a window or block the view
  • Energy efficient

Cons:

  • Don’t cool the whole space
  • Must be cleaned and maintained regularly

Happy woman holding a remote under an air conditioning unit

4. Personal AC unit

Personal AC units are great for cooling down a single person in a smaller space. They are typically very small — meant for bed stands or desks and are not meant to cool the entire space down. These typically only need a plug and water, however, they do not cool as well as bigger units. Here are their pros and cons.

Pros:

  • Great for personal use
  • Move from room-to-room
  • Easy to use and install

Cons:

  • Not energy efficient
  • Need cleaning after each use to avoid germ growth

Man with his face in front of a fan

How to keep your apartment cool without an AC unit

If none of these options work for you, there are other ways to keep yourself cool this summer. Here is a list of other options to consider:

  • Installing fans
  • Purchasing dark blinds to block the sun
  • Putting cooling sheets on your bed
  • Switching out your light bulbs to ones that produce less heat
  • Opening your windows at night
  • Cooking outside

Stay cool as a cucumber

While the summer heat is great for outdoor activities and vacations, it’s not so great for your apartment. Keeping your place cool throughout these hot months is essential. There is nothing worse than being uncomfortable in your own living space. The good news is there are many different options to consider when thinking about the best air conditioner for your apartment.

The post Picking the Best Air Conditioner for Your Apartment appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

9 Ways to Survive With No Dishwasher in Your Apartment

Even if your new rental unit ticked off most of your must-have boxes — great location, lots of light, budget-friendly — you might be disappointed about one thing: There’s no dishwasher in the apartment.

Not to worry! Here are some tips, tricks and shortcuts that take the drudgery out of washing dishes — and you may even end up enjoying the task.

1. Plan meals that use fewer dishes

Instant pot filled with food.

Instead of dirtying piles of cooking utensils, try incorporating some one-pot meals into the rotation. Slow cookers, instant-pots, woks and sheet pans will all minimize the amount of mess.

When baking, measure your dry ingredients first and then reuse the same measuring cups and spoons for wet ingredients.

You can also line your pans with aluminum foil before roasting vegetables or baking lasagna to cut down on washing time afterward.

Also, read a recipe through before you start cooking to see how many dishes you will need. By thinking ahead, you’ll have less to wash when you’re done eating.

2. Clean up as you cook

Washing a dirty pan with soap and water because there's no dishwasher in apartment

As you prepare your meal, get in the habit of tossing food scraps into the compost bin or garbage can. Plan to wash what you use as you’re cooking or place dirty dishes into the sink as you go.

Before you start chopping any ingredients, fill the sink with warm soapy water and soak your dirty dishes so food doesn’t become dry and caked on. Wash your prep tools as your food cooks.

3. Get the right tools for the job

Cleaning tools for dishwashing.

Toss that stinky kitchen dishcloth and pick up a few smart gadgets that will almost make you forget you don’t have a dishwasher in your apartment.

  • A dishwashing brush can handle even the crustiest food remnants, plus it dries completely — no more damp, germ-infested sponges lying around.
  • If you prefer a sponge, get a washable microfiber one that you can toss into the washing machine.
  • Silicone scrubbing gloves protect your hands, plus they provide some scrubbing power.
  • Using a blade brush is a safer way to clean sharp knives.
  • A food scraper or dish squeegee makes dishwashing easier and keeps your sudsy water cleaner.

4. Protect your drain

Sink clogged with water.

The last thing you need when you have no dishwasher in your apartment is a clogged kitchen sink.

Never pour oil or grease down the drain because they can coat the pipes and cause a blockage. Use a sink strainer to catch food particles and empty it regularly while you’re cleaning up.

5. Be efficient by learning how to clean stubborn dishes

Handwashing dishes.

For about $10, you can upgrade your kitchen faucet with a swivel tap aerator, which helps get into the nooks and crannies for more effective dishwashing.

Wash items from least to most dirty: Glasses and silverware first, then plates and bowls. Save the largest, dirtiest things for last. Some dishes, like glassware or anything oily need extra-hot water to get clean, while others do better with cold.

For example, dairy and starch rinse off easily under cold water, which prevents the residue from getting sticky. For scorched pots and pans, head to your laundry room to grab a dryer sheet: Soaking it with the pan in warm soapy water for an hour will remove caked-on grime.

6. Use the right kind and amount of dish soap

Soapy sponge because no dishwasher in apartment

If you don’t like wearing latex gloves to protect your hands, use a natural dish soap that will be gentler on your skin. For very greasy dishes, you might need a more advanced dish cleaner.

Don’t use too much soap, because it can leave a sticky residue on your dishes — one or two tablespoons per load is all you need.

Pouring your soap into a touchless foaming soap dispenser controls how much you use, saving you money.

7. Purchase space-saving drying racks

Dishes drying on a cleaning rack.

Why double the amount of work to hand-dry all your dishes when you can let them air-dry instead?

Since small apartment kitchens usually lack counter space, ditch the bulky dish-drying rack in favor of a more streamlined solution, such as hanging a wire shelf over the sink, or using a roll-up drying rack that stores away when not in use. Or, use a silicone dish-drying mat — it’s better than a fabric one because it prevents mold growth.

8. Treat yourself to a few luxuries

Man listening to music while doing dirty dishes in the kitchen with no dishwasher in apartment

Just because there’s no dishwasher in your apartment doesn’t mean you should dread cooking great meals for yourself or your loved ones. One thing that makes the task easier is creating the right mood for the job.

Pick up some great-smelling dish soap and soft linen kitchen towels, which dry faster than cotton and are naturally anti-microbial. Set up a waterproof Bluetooth speaker or wear wireless headphones so you can listen to your favorite tunes or podcast or light a few aromatherapy candles to make washing dishes more enjoyable.

9. Invest in a countertop dishwasher

Speaking of treating yourself: Sometimes, especially if you have a family to feed three times a day, hand-washing everything is just not realistic. Apartment dwellers have another option: A countertop dishwasher.

These appliances — ranging in size from 16 to 22 inches wide — sit on your counter, hook up to the faucet and wash up to six place settings at once. These dishwashers cost about $400.

Adapt to having no dishwasher in your apartment

While living in an apartment with no dishwasher can seem challenging at first, the transition to a wash-as-you-go lifestyle is easier when you plan ahead, use the right tools and shift your mindset.

The post 9 Ways to Survive With No Dishwasher in Your Apartment appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

Source: apartmentguide.com

Best startup business credit cards

If you want to start a business, you’re going to need a business credit card. While many entrepreneurs fund the initial phases of their small business out of pocket, taking out a business credit card proves that you mean business – literally.

But which business credit card is right for your growing startup? We’ve got a list of the best startup business credit cards that meet a variety of business needs – whether you’re looking for a travel card to help make business trips a little more comfortable or a corporate card to issue to your new employees. We’ve also got tips on how to choose the best business card for your startup, how to increase your odds of getting accepted for a business credit card and how to make the most of your new card once you’ve got it.

Best credit cards for startups

  • No personal guarantee: Brex Corporate Card for Startups
  • Fair credit: Capital One® Spark® Classic for Business
  • Financing a startup: American Express Blue Business Cash™ Card
  • Cash back: Capital One® Spark® Cash for Business
  • Travel rewards: The Business Platinum Card® from American Express

Brex Corporate Card for Startups

Brex 30 Card

Our rating: 4.4 out of 5
Score required: Excellent
Type of card: Corporate travel
Spending categories: Rideshares, travel, restaurants, software subscriptions

Read full review

  • 8X points on rideshares, 5X on travel, 4X on restaurants, 3X on eligible Apple purchases and 3X on software subscriptions when you make daily card payments. Those rewards are 7X points on rideshares, 4X on travel, 3X on restaurants, 3X on Apple purchases and 2X on software subscriptions with 30-day card payments
  • 1 point per dollar on other purchases
  • 30,000 bonus points upon sign up and waived card fees for life (equal to $300+ value)
  • $5,000 credit for Amazon Web Services and 20% discount on annual Zoom subscription, along with other software discounts in your first year
  • $0 annual fee

Our take: With an application process that makes qualifying faster and easier than usual and a unique rewards program that offers up to 8X points on ride-sharing, the Brex Corporate Card is well-attuned to the needs of startup companies.

Why it’s the best startup business credit card with no personal guarantee

If your startup is at the point where you have a significant revenue stream and an office full of employees, you might be ready for a corporate card. Unlike your typical business credit card, which can be used by small business owners of any size (including solopreneurs and freelancers), corporate cards are designed to meet the needs of growing corporations.

In this case, that means no-cap rewards on four major spending categories – 8X Brex Rewards points on rideshares, 5X on travel, 4X on restaurants and 3X on software subscriptions depending on whether you make your card payments every 30 days or on a daily basis with Brex cash – as well as 1 point per dollar on all other purchases. Your startup will also be eligible for discounts on popular services, such as Amazon Web Services, Zoom and Dropbox, as well as a 30,000-point sign-up bonus.

Plus, it only takes a few minutes to get approved for the Brex Corporate Card. All you need to do is provide basic information about your business and link your corporate account. There’s no personal guarantee required, though you do need a minimum of $100,000 in your corporate bank account to be eligible for this card. The Brex Corporate Card has no annual fee and you’ll get five employee cards at no cost, but it’ll cost you $5 per month for each additional employee card beyond that.

As you use your Brex Corporate Card, your credit activity and payments will be reported to Experian and Dun & Bradstreet, both of which will help your business build its credit history.

Capital One® Spark® Classic for Business

Capital One® Spark® Classic for Business

Our rating: 2.6 out of 5
Score required: Fair to good
Type of card: Cash back
Spending categories: N/A

Read full review

  • 1% cash back on every purchase
  • Build business credit with responsible use
  • $0 annual fee

Our take: The Spark Classic card doesn’t offer the lowest APR or juiciest rewards; but it does help cardholders with damaged credit build a better credit score and earn a modest amount of cash back, so they can qualify for more generous cards over time.

Why it’s the best startup business credit card for fair credit

Your credit score shouldn’t hold you back from small business success – so don’t let your less-than-perfect credit prevent you from taking advantage of all the benefits a small business credit card can provide. Use the Capital One Spark Classic for Business credit card to help you build your business and your credit at the same time.

When you use the Spark Classic for Business, you’ll earn 1 percent cash back on every purchase. That’s a little lower than what you might earn with the top business credit cards, but if you practice responsible credit habits like making on-time payments and maintaining a low credit utilization ratio, your score should improve month-over-month – which means you might be eligible for an even better business credit card before you know it.

The Spark Classic for Business has no annual fee, which is one more reason why it’s a great card for people who want to get their business – and their credit – off the ground.

American Express Blue Business Cash™ Card

American Express Blue Business Cash™ Card

Our rating: 3.9 out of 5
Score required: Good to excellent
Type of card: Cash back
Spending categories: N/A

Read full review

  • 2% cash back on up to $50,000 in purchases per calendar year
  • 1% cash back on all purchases after that
  • 0% introductory APR on new purchases for the first 12 months (13.24-19.24% variable thereafter)
  • Spend over your credit limit with no penalty (as long as you stay within the over-the-limit amount)
  • Apply for 30-, 60- or 90-day Working Capital terms after first 6 months of membership
  • $0 annual fee

Our take: The Blue Business Cash card is a great option for small business owners seeking to create cash flow for a new or expanding business, thanks to its flexible credit limit and working capital terms.

Why it’s the best startup business credit card for large purchases

Startups often come with startup costs – which means you’re going to want a credit card that rewards big spending. The American Express Blue Business Cash Card is one of the top business cash back cards on the market, offering 2 percent cash back on up to $50,000 in purchases per calendar year and 1 percent cash back on all additional purchases.

This isn’t the only reason why you’ll want to use the Blue Business Cash Card to help you finance your startup costs. You’ll also get access to a flexible credit limit, making it possible to fund extra purchases during those months when you really need to invest in your business. (Be aware that you’ll need to cover both your minimum payment and your above-limit spending at the end of your billing cycle.) Plus, once you’ve had your Blue Business Cash Card for six months, you’ll be able to apply for working capital terms, a feature in which Amex will pay your vendors up front, and you’ll pay off the costs in 30, 60 or 90 days.

Capital One® Spark® Cash for Business

Capital One® Spark® Cash for Business

Our rating: 4.1 out of 5
Score required: Good to excellent
Type of card: Cash back
Spending categories: N/A

Read full review

  • 2% cash back on every purchase
  • $500 cash back if you spend $4,500 in first 3 months
  • $95 annual fee (waived first year)

Our take: If you want a simple business credit card with a superb cash-back rate, you will love the Spark Cash card.

Why it’s the best startup business credit card for cash back

If you want to earn as much cash back on your purchases as possible, consider the Capital One Spark Cash for Business card. Like the Blue Business Cash Card, the Spark Cash for Business offers 2% cash back – but unlike the Blue Business Cash Card, those cash back rewards don’t end once you spend $50K in a calendar year. Instead, you get an unlimited 2% cash back on every purchase.

You also get a welcome bonus – if you spend $4,500 in your first three months as a cardholder, you’ll earn a one-time $500 cash bonus. Just think about how you could use that money to grow your business (or to pay off your credit card balance).

The Spark Cash for Business credit card does include a $95 annual fee, but it’s waived the first year – and don’t forget that business credit card fees are tax-deductible.

The Business Platinum Card® from American Express

The Business Platinum Card® from American Express

Our rating: 4.4 out of 5
Score required: Excellent
Type of card: Travel
Spending categories: Flights, hotels

Read full review

  • 5X points on flights and prepaid hotels on amextravel.com
  • 2X points on travel purchases on amextravel.com
  • 1 point per dollar on other purchases
  • 50% more points (1.5 points per dollar) on purchases of $5,000 or more (up to 1 million bonus points per year)
  • 85,000 points if you spend $15,000 in first 3 months
  • Get 35% points back on a designated airline each year (up to 500,000 bonus points per year) when you pay with points and book your flight on amextravel.com
  • $595 annual fee

Our take: The Business Platinum Card from American Express offers generous bonus points and great travel perks – including the best lounge access around – for frequent business travelers.

Why it’s the best startup business credit card for travel

If your startup requires you to spend a lot of time working out of hotel rooms, you’re going to want a credit card that rewards travel spending. The Business Platinum Card for American Express is ready to help get you where you need to go.

Earn 5X Membership Rewards points per dollar when you purchase flights and prepaid hotel rooms through amextravel.com, 2X points on additional travel purchases made through amextravel.com and 1 point per dollar on all other purchases – unless you make a purchase of $5,000 or more, at which point you’ll earn 1.5 points per dollar. You’ll also be able to access an incredible welcome bonus in your first three months of membership: 85,000 points after you spend $15,000 on qualifying purchases.

Want to maximize those Membership Rewards points after you’ve earned them? We’ve got a guide to help you get started, but here’s one tip: Use Membership Rewards Pay with Points to book a flight with your selected qualifying airline, and you can get 35 percent of your points back (for up to 500,000 bonus points per calendar year).

The Business Platinum credit card also gets you access to the American Express Global Lounge Collection, a year of complimentary Platinum Global Access from WeWork (for cardholders who enroll between Feb. 15 and Dec. 31, 2019) and a $200 airline fee credit, among other perks. Be prepared to pay a $595 annual fee for the privilege of using this card – but if you travel often enough, it’ll be more than worth it.

Compare top startup business credit cards

Rewards Annual fee
Brex 30 Card
  • 7X points on rideshares, 4x on travel, 3x on restaurants and 2x on software subscriptions
  • 1 point per dollar on other purchases
  • 30,000 bonus points upon sign up
$0
Capital One® Spark® Classic for Business
  • 1% cash back on every purchase
$0
American Express Blue Business Cash™ Card
  • 2% cash back on up to $50,000 in purchases per calendar year
  • 1% cash back on all purchases after that
$0
Capital One® Spark® Cash for Business
  • 2% cash back on every purchase
  • $500 cash back if you spend $4,500 in first 3 months
$95 (waived first year)
The Business Platinum Card® from American Express
  • 5X points on flights and prepaid hotels on amextravel.com
  • 2X points on travel purchases on amextravel.com
  • 1.5X points on eligible purchases over $5,000
  • 1 point per dollar on other purchases
  • 85,000 points if you spend $15,000 in first 3 months
$595

How to choose a business credit card

Ask these questions before choosing which business credit card might be best for your growing startup:

How will you use the card?

If you’re going to use your business credit card to finance a large purchase, look for a card with a long 0% introductory APR period. That way, you can maximize the time you have to pay off your purchase without paying anything extra in interest. 

If you’re just going to use it for day-to-day expenses, think about what those expenses are. Look for a card that will reward your everyday purchases – like travel, office supplies or utilities – at a boosted rate.

Lastly, think about who will be using the card. If you want your employees to be authorized users, look for a card that offers free employee cards or custom spending limits. 

What kind of rewards do you want?

Are you hoping to earn some cash back on your everyday purchases, or are you shooting for rewards-funded travel? If you’re searching for a travel rewards card, it’s important to consider additional perks and benefits, like rental car insurance and airport lounge access.

What is your credit score?

Your personal credit will probably be pulled when you apply for a business credit card. If your score isn’t great, apply for a card that’s within your range. Otherwise, it’s a good idea to work on building your credit before you apply. 

Getting a line of credit in your business’s name can also be useful if you’re going to take out a business loan in the near future. Your business has a credit score too, and a positive borrowing history can contribute to a good business credit score, giving you a lower interest rate when you apply for business loans. If that’s important to you, make sure that the card you’re applying for reports to at least one – or all three – of the dominant business credit bureaus. 

How to apply and get approved for a business credit card

Applying for a business credit card is a lot like applying for a personal credit card. You’ll need to provide basic personal information, such as your name, address and income. You’ll also need to provide basic business information, such as your business’s name, address and revenue. Once you’ve filled out the application, expect a hard pull on your credit as the credit card issuer determines whether you are eligible for the card.

If you want to increase your odds of getting approved, here are a few tips:

  • Check your credit score to learn where you stand. If you don’t already have access to your credit score, use a free service to learn whether your credit is fair, good, excellent or needs work – and then use that information to find credit cards designed for people with your credit score.
  • Build your personal credit score before applying for a business credit card. Lenders check your personal credit history before issuing business credit cards, so consider doing some basic maintenance on your credit score before applying. Disputing errors on your credit report, paying off revolving balances and requesting credit limit increases can all improve your score and make you eligible for more business credit cards.
  • Use our CardMatch service to quickly identify which credit cards might be right for you. There’s no impact on your credit score, and you might receive special offers and pre-qualified matches.

Pros and cons of using a credit card for your startup

There are a lot of advantages (as well as some disadvantages) to using a credit card to help fund your startup:

Pros

  • Credit card financing is easily obtainable if you already have good credit and credit cards in your name.
  • You can cover business expenses during periods of low cash flow or finance a large purchase that will help you attract more customers and grow your revenue.
  • You can also use earn rewards on everyday expenses or earn points that you can put towards business travel – both of which can save your business money in the long run.
  • With timely payments, you can use a business credit card to build a credit history for your new business.
  • You can use credit card purchase and travel protections to insure purchases for your business.
  • Many business cards offer valuable perks for small business owners, such as airport lounge access, discounts on business purchases or credits toward commonly purchased items.
  • Credit cards can make expense tracking easier – many cards allow you and your employees to upload and track your receipts from your mobile phone and to download your expenses to Quickbooks and other accounting software.
  • You can automate repeating purchases, such as software licenses.

Cons

  • For financing a business, a small business loan might offer lower interest rates than a business credit card.
  • Likewise, using crowdfunding to get seed money (and customer buy-in) before launching a new product might be a better option than putting all your expenses on credit.
  • If the card requires a personal guarantee, your business credit card could affect your personal credit score.
  • Credit cards have high interest rates. Unless your business card comes with a 0 percent offer for new purchases, it can be very expensive to carry a balance on it.
  • Credit cards can foster sloppy financial habits if you’re not disciplined about paying off your balance each month.
  • Overall, since they’re usually linked to your personal credit history and charge high interest, credit cards can be a very risky means of funding a startup.

See related: Should you fund your startup business with a credit card?

Final thoughts

Getting a business credit card is an important part of growing a small business. For many small business owners, it’s one of the first big steps in separating your personal finances from your business finances. When it’s time to apply for a business card for your startup, think about which problems you’d like your business credit card to solve – and then look for cards that provide the solution you’re looking for. Think of it like writing a job description and finding the candidate that’s the best fit.

As your startup continues to grow, start thinking beyond business credit cards. The next step might be a small business loan, a crowdfunding project or a group of investors. Business credit cards are excellent tools to help you cover day-to-day expenses while earning rewards, but they aren’t the only way to finance a startup – and you’ll know when it’s time to start exploring other options.

Source: creditcards.com

Should You Prepay the Mortgage or Invest Instead?

It’s been a while since I last posted a mortgage match-up, so without further ado, here’s the latest installment: “Prepay the mortgage or invest instead?” There are likely thousands of articles that deal with this very subject, all with plenty of differing opinions, but we are in unprecedented times. Mortgage rates have never been lower [&hellip

The post Should You Prepay the Mortgage or Invest Instead? first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com

5 Tips for Building a Side Business

You’ve probably noticed that people are embracing entrepreneurship like never before. Due to the widespread availability of technological business tools, there’s never been a better time to become your own boss. With an internet connection and a smart-phone or laptop, you can work from just about anywhere on the planet.

If you’ve been dreaming of quitting your day job to start a business, you might be wondering if taking such a big leap is worth it.

While there’s nothing wrong with holding down a W-2 job and getting a steady paycheck, having income from your own business comes with many upsides. But if you’ve been dreaming of quitting your day job to start a business, you might be wondering if taking such a big leap is worth it.

The good news is that there are incremental ways to become self-employed that are stable and reduce your risk, instead of plunging abruptly into a precarious financial position. In this chapter excerpt from Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers, you’ll learn practical strategies for building a solo business while keeping the security of a regular job.

Tips for building a business on the side

Becoming your own boss may seem glamorous from the outside, but it can have stressful pitfalls, such as little pay, no insurance benefits, and unpredictable clients. However, you can avoid or minimize some of the downsides by maintaining a reliable day job while you grow your solo business.

Having the security of a job and the excitement of becoming a solopreneur gives you lots of upside with much less risk. A steady paycheck may give you the confidence you need to take business risks—such as buying more advertising, equipment, or software—that will make your venture more profitable.

Having the security of a job and the excitement of becoming a solopreneur gives you lots of upside with much less risk.

Aside from maintaining a reliable income stream, being both an employee and an entrepreneur can make you a better worker. In my experience, growing a side business also builds skills and experiences that make you more effective at your regular job. You may even find your side hustle revives an appreciation for your day job. There’s a lot to like about having a salary, benefits, and other perks, after all.

Whether you decide to be both an employee and your own boss for weeks or years, it will take some juggling to manage successfully. Here are five tips to face your career fears responsibly and prepare for the future by adding entrepreneurship to your resume on the side.

Define your vision for success

Before changing your job or making the transition from employee to self-employed solopreneur, take the time to define what you truly want to achieve in your career. Sometimes your ideas about success come from other people, and they can cause you to follow a career path that never truly fulfills you.

Maybe your boss thinks you should regularly work late so you can climb the corporate ladder, or a parent says you should go to graduate school. You might take a lucrative job in a field you’re not crazy about because that’s what your friends are doing. But if that job requires frequent travel when all you truly want is to start a family, care for aging parents, or spend time enjoying where you live, you’ll never be happy.

Never let external markers of success, such as a big paycheck or a fancy job title, become more important than your heartfelt calling and goals for your life.

If you don’t pause periodically to reflect on what success means to you, it becomes easier to follow other people’s priorities when it comes to your work. If your decisions aren’t purposefully leading you toward a life that excites you, you’ll likely wander away from what you genuinely want.

Never let external markers of success, such as a big paycheck or a fancy job title, become more important than your heartfelt calling and goals for your life.

That said, getting in touch with your real desires isn’t always easy, and you might have to listen carefully to hear your inner voice. Try incorporating some quiet time into your daily routine. When you first wake up or when you’re settling down at bedtime, think about what you’re grateful for—but also what you’d like your life to be. Consider your definition of success and any changes you’d like to make to your life in the near and distant future.

Ask yourself the following questions to better understand your values and get clarity on your unique vision for success:

  • What type of work makes me happiest? 
  • Where do I want to live? 
  • What types of people do I want in my work life?
  • What does a good life mean to me?

This exercise isn’t something you do once to figure out the arc of your entire life. You need to come back to these fundamental questions during different seasons of your life and career, because the answers may change, sometimes repeatedly.

Over time, your working life is sure to change, in both good and bad ways. When you find yourself getting restless or feeling like you want more from your job, slow down and become more introspective. It can reveal a lot about what your next career or business move should be.

RELATED: How to Create Your Own Self-Employed Benefits Package 

Create a side gig

Even when you’re clear about what you want, one of the fastest ways to ruin your financial future is to take a flying leap from a steady paycheck. Jumping from a day job into an uncertain, full-time venture too early could mean trouble. You might face significant financial struggles and even get into debt. Many businesses take years of hard work before they’re profitable enough to support you.

If you slowly add entrepreneurial experience to your career, you’re likely to gain a variety of skills that will make you more valuable to employers.

Hanging on to your day job gives you the financial security you need to try out new business ideas, especially if you have a spouse, partner, or kids who depend on your income.

The best side gigs combine work that you’re excited about with something that you’re uniquely positioned to provide. These businesses may also come with a large existing customer base or appeal to customers who are willing to pay you well for the skills and experience you offer.

I was a part-time entrepreneur for a decade before I said goodbye to my employer. I enjoyed having a mix of job stability and entrepreneurial upside. Plus, I found that expanding my career by adding self-employment to a W-2 job made me much better at both.

If you slowly add entrepreneurial experience to your career, you’re likely to gain a variety of skills that will make you more valuable to employers. It may be easier to experiment with business-formation ideas when you have less financial stress or know a side gig could actually complement your existing career.

The bottom line is that creating a business on the side protects your income, diversifies your network, and improves your skills, instead of leaving you financially vulnerable. If you enjoy your entrepreneurial work and find that it pairs well with your day job, the benefits and personal growth can really pay off.

Negotiate your job flexibility

If you plan to start a business on the side, or you already have, you know you’ll be working more, perhaps a lot more. You might need to work early in the morning, late at night, or on weekends to fit it all in. That could stress your relationships or cause you to burn out if you don’t take some precautions.

Consider some different ways that you can tailor your business for your day job, and vice versa.

Once you’re confident about your business idea or begin seeing increasing revenues, you may find that you need more flexibility in your schedule. At that point, consider some different ways that you can tailor your business for your day job, and vice versa.

In 2008, my employer began feeling the financial pinch of the Great Recession. My podcasting and blogging career had started to take off by that point, so instead of allowing my position to get downsized, I proposed a solution that my boss liked. I’d work four days a week for a couple of months and then go down to three days a week for the rest of the year. Then we’d reevaluate where the company stood and discuss whether he could still afford to keep me on as an employee.

My employer would save money by paying me less, and I’d have more time to work on creating content, partnering with brands, and writing my first book, while still having a regular paycheck coming in. If I hadn’t suggested that solution, my company wouldn’t have known that I was willing to cut my hours. I didn’t offer to tell my boss what my plans were for my newfound free time, and he didn’t ask.

You may be able to negotiate with your employer for more schedule flexibility.

You too may be able to negotiate with your employer for more flexibility. You might ask to work fewer hours, to maintain the same total number of hours but work fewer days per week, or to work from home a day or two each week.

If you have a long commute or spend a significant amount of time getting ready, packing a lunch, and getting out the door in the morning, working remotely could save a lot more time than you think. Then you can invest that saved time in your side business.

Find more time in your day

If you can’t get more flexibility or you worry that even asking for it could put your day job in jeopardy, there are other options. One is to structure non-negotiable time for your business into your day. For instance, make a rule that you’ll step away from your desk for a solid hour (or longer if possible) during lunch to accomplish something meaningful for your business.

Find a nearby cafe or reserve a conference room in your office where you can work and eat undisturbed. I did that for many years, and it’s incredible how much you can accomplish in 45 minutes if you truly focus. If you can’t find enough quiet or privacy in your office, you could even work in your car.

It’s incredible how much you can accomplish in 45 minutes if you truly focus.

If working on your business during your lunch hour isn’t possible with your day job, consider coming to the office an hour earlier or staying later. You could also work on your business in a nearby coffee shop or a co-working space (where drop-in memberships can often be had for the same price as joining a gym) before or after your job. The idea is to create a routine that builds in regular time to focus entirely on your venture and to complete essential tasks.

Another option is to outsource a portion of your work. If you can afford to delegate tasks to freelancers, that can help you balance your to-do lists.

When your day job is so unpredictable that it prevents you from working on your side gig for long periods, consider getting a different job with a more reliable schedule. If you’re truly committed to getting your business off the ground, you may need a position with more flexibility so you can do both more easily.

Have a solid exit strategy

Having an exit strategy is a common concept in the business world. Partners and investors want to know what will happen after clearly defined milestones are reached, such as taking a company public or selling it after a certain profit margin is achieved.

But employees should create exit strategies, too. It’s a great way to force yourself to think about the future and what you would or should do next. With a W-2 job, you never know what’s around the corner.

It’s wise to start every professional relationship with an idea of how it could end.

Your company could suddenly downsize after a merger or an unexpected loss of market share. Your department could be reorganized after new leadership begins. All these scenarios have happened to me at some point in my career.

It’s wise to start every professional relationship with an idea of how it could end. This ensures that you’re never caught entirely off-guard. Knowing that you’ve thought about the end of a job or a business partnership can make you feel more secure about a potential split.

If you’re unprepared for an interruption in work or business income, it can be devastating to your emotional and financial life. So whether you’re laid off or you voluntarily quit, prepare for it now.

If you have a financial runway to find new opportunities or you’ve built an income from a side business, quitting or getting fired can be a positive experience. Having a good exit strategy can make the difference between feeling crushed by a job loss or becoming empowered by it.

Source: quickanddirtytips.com

Compound Interest Calculator

Compound interest is one of the most important concepts to understand in investing. It’s something about investing that many people aren’t familiar with, but it plays an essential role in making investments profitable. 

If you’re curious about compound interest and how it works, good for you — you’re on the right track. In this post, you’ll find a compound interest calculator that can quickly and clearly show you how much money you might make by investing in an account that delivers compound interest. 

Use the calculator below to get a sense of your potential earnings, then read the sections below to gain more insight into how you can make money through compound interest. 

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Compound Interest Calculator
First, tell us about your investment plan by filling in the fields below.
Investment Plan:
Starting Amount:
Amount of initial investment: Total amount you will initially invest or currently have invested toward your investment goal.
Years to Accumulate:
Years to accumulate: The number of years you have to save.
Contribution Amount:
Periodic contribution: The amount you will contribute each period and the frequency at which you will make regular contributions to this investment.
Every WeekEvery Two WeeksPer MonthPer QuarterPer Year
Rate of Return:
Rate of return on investment: This is the rate of return an individual would expect from their investment. It is important to remember that these scenarios are hypothetical and that future rates of return can’t be predicted with certainty and actual rate of return can very widely over time.
Compound Frequency:
Compound frequency: Interest on an investment’s interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.
DailyMonthlySemiannuallyAnnually
Years to Accumulate:
Years to Accumulate: This is the amount of time until you withdraw or use your investments.
Your Investment Results:
Ending Amount: $0
$0
Total Investment
$0
Compound Interest Earned
$0
Simple Interest Earned
Investment Growth Over Time
Investment Breakdown
Total Investment
Compound Interest Earned
Simple Interest Earned

  • How to use a compound interest calculator
    • Investment definitions
  • How does compound interest work
    • Compound interest formula
  • Compound interest accounts
  • Compound interest FAQs

How to use a compound interest calculator

Using the compound interest calculator is simple. Follow these steps to see what you might earn through compound interest investing. 

  1. Enter your initial investment. It can be any value that you like, but it’s helpful to make it a realistic amount. For instance, if you’re saving up to invest right now, you can put the amount that you plan on investing once you’ve saved up enough. 
  2. Next, enter the amount you plan on adding to your investment portfolio each month. This can also be any value you like, but it’s most useful if you enter an amount that you can budget for. Even if that’s just an extra $10 a month, it makes a difference. 
  3. Choose whether you want your interest compounded annually, compounded monthly, or compounded daily. (If you don’t know what that means, stay tuned for the definitions below.) 
  4. Input the estimated rate of return. This can vary considerably, but index funds and similar investment vehicles can yield between 2% and 10% returns. 
  5. Input your time horizon — the amount of time until you withdraw or use your investments. 

Once you’ve filled out the calculator, you should see an estimate of the amount you’re likely to have when the period of compound investing is up. If you’re a little confused about how we got this number, or what you need to do to grow your money in this way, check out the definitions, guide, and FAQs below. 

Investment definitions

  • Compounding: This occurs when the money that is made from an investment is reinvested, increasing the total amount of interest yielded the next time your interest is compounded. 
  • Index fund: Index funds are bundled investments that roughly track the growth of a market index, which is a collection of publicly-traded companies. They are often considered lower-risk investments.
  • Interest: The money you make on your investments; essentially, the money you earn for investing in the success of a company, a government bond, or a fund.
  • Principal: The amount of money that you start out with when you begin investing.
  • Rate of returns: The rate at which you accrue interest — for example, 3% returns would mean that, for every $100 invested, you would earn $3. 
  • Returns: The money that you earn on your investments. 
  • Time horizon: The amount of time that you plan on investing.

Now that you have a few key compound interest definitions in mind, we can explain how it works. 

How does compound interest work

Having more money can help make you more money — that’s the principle behind compound interest. Here’s how that breaks down. Let’s say that you have $1000 to invest. You put it in an account (let’s say a money market account) that yields 2% interest, compounded monthly. At the end of the first month, you’d have $1020. So far, so good.

But here’s where it gets really interesting. That 2% rate of return now applies to the $1020 total, not just the principal investment of $1000. So, after the end of month 2, you’ll have $1040.40 — an added $0.40 compared to the previous month. 

That might not sound like a lot, but it starts to add up. Have you ever rolled a snowball down a hill? The same idea applies. As your money grows and adds to itself, the amount that it can add to itself the next time your interest compounds is more. It may not be a get-rich-quick scheme, but it’s a reasonably secure way to start building your net worth in the long term. 

Plus, you’re not limited to money market accounts with rates as low as 2%. If you’re willing to put a little more risk on the line, you can get returns as high as 10% in some cases. We’ll cover that more in a later section. But first, time for a little math homework (just for those who are curious!). 

  • Looking for a longer explanation? Check out our full-length guide to how to earn compound interest. 

Compound interest formula

Compound interest is really mathematically interesting. Here’s the formula: A = P(1 + r/n)(nt)

If you want to try to see what’s going on behind the scenes in our calculator, here’s how to do the math yourself using the compound interest formula. 

  • The A in the formula is the amount you’ll end up with; this comes last. 
  • The P in the formula above stands for your principal, that’s the amount that you start with. 
  • Multiply P by 1 + your interest rate r (given in a decimal; so 4% would be 0.04) divided by n, the number of times your interest is compounded in a given period. 
  • Raise all of that to the power of n times t, where t is the number of time periods elapsed. 
  • For example, if you’re investing for 12 months, and your account interest is compounded daily, n would be roughly 30, and t would be 12 if you want to know how much you’ll have in a year. 

Try the formula out yourself, and see what result you get compared to the result in our calculator to check your work!

Compound interest accounts

Now that you understand the basics of compound interest, you’re probably wondering how you harness it to increase your net worth. The key is to use accounts that offer compound interest. Here are a few examples:

  • High yield savings and money markets. These are essentially savings accounts. They aren’t investment accounts (which we’ll discuss in a minute), but they do use a similar principle to grow your money. Rates on these can be fairly low compared to other options, but your money remains accessible, so you won’t have to worry if you need access to your cash fast in an emergency.
  • Retirement accounts. If you have a 401k or IRA opened right now, good news: you’re already accessing the power of compound interest. Most retirement accounts use a diversified and stable portfolio to grow your money over time, investing in index funds, government bonds, and dividend stocks to help you build your nest egg. 
  • Investments. Of course, one of the most aggressive and effective ways to utilize the power of compound interest is to start investing. There are a number of different ways you can invest — be sure to read our guide to investing for beginners for a more thorough explanation — but all can involve compound interest. For example:
    • Dividend stocks sometimes allow you to reinvest the payout from your dividends, increasing the amount of your dividend the next time there is a payout. 
    • Index funds, like mutual funds and ETFs, also often allow investors to reinvest their earnings, harnessing compound interest in their favor. 
    • If you invest directly in stocks, you can always use the money that you earn to reinvest or invest in another stock — be aware that this is a riskier option, however. 
    • Whether you choose an in-person brokerage or a trendy new robo-advisor, you’ll likely be able to use the power of compound interest to grow your capital. 

Compound interest is a mathematical force that can help you build your net worth over time. You can get started today by finding the right investing or saving vehicle for your personal finances. And don’t forget to download the Mint app, where you can conveniently track your investments all in one place. 

Compound interest FAQs

How do I calculate compound interest?

You can calculate compound interest in one of two ways: you can use the formula listed above to calculate it by hand, or you can use the compound interest calculator to figure out your total more quickly. Just be sure you know the necessary variables:

  • The principal amount
  • Your interest rate
  • How often it’s compounded
  • The number of compounding period that will occur

What will $10,000 be worth in 20 years?

That totally depends on how much interest your account produces and whether you invest more as time goes on. 

Let’s assume an average return rate of around 7%, and assume that you don’t add in any more money. In that case, your $10,000 could turn into $40,547 — still an impressive amount. That’s the power of compound interest. 

How do you calculate compound interest monthly?

To calculate compound interest monthly, simply set the “compounding frequency” setting on the calculator above to “monthly.” Alternatively, you can use the formula above and set n equal to 1 and t equal to 12 to find out how much money you’ll have if interest is compounded monthly for a year. 

Sources

Wealthsimple | Investor.gov

The post Compound Interest Calculator appeared first on MintLife Blog.

Source: mint.intuit.com

The ABCs of Financial Empowerment

A quick Google search of ‘financial literacy’ will yield thousands of results, listing an infinite amount of do’s and don’ts that should (and shouldn’t) be followed to guide you along on your financial journey.

However, when you think of financial empowerment – what comes to mind? As defined by Merriam-Webster, empowerment is “the act or action of empowering someone or something: the granting of the power, right, or authority to perform various acts or duties.” No matter what your current sentiments are related to your finances, we will explore three key areas to not only embrace; but to help you prepare for a strong financial future.

Awareness

Now more than ever, we all have a laser-sharp focus on our money and where it’s being spent. The pandemic has generated a hypersensitivity to how we treat our finances while also determining what essential expenses look like and where they fit into our budget.

Before life as we knew it to be shifted, many of us don’t have to look too far back to remember a time where we didn’t check our accounts as often, our savings plan would fluctuate month-over-month or our emergency fund was used to bail us out of some impulsive spending.

To make sure those days are forever of the past, make it a habit to take inventory and audit all of your accounts. Take at least 15 – 30 minutes to review over any transactions and deposits across all active accounts. Not only does this help improve your self-accountability, but you are also able to make any disputes if anything appears incorrect and resolve quickly.

Another small but impactful tip is to acknowledge your financial health. What top three areas will be your main point of focus? If this is something you don’t know offhand, review your transactions from the last three months and categorize them. How much of your money went to impulsive buys or things that could have been purchased at a later date? Are you seeing an influx in overhead expenses or credit card payments? Are there any spending patterns you can explicitly see? Allow this exercise to serve as an eye-opening experience.

In order to determine where you want to be, you must first truthfully acknowledge where you are. This sets the blueprint and overall expectations with your personal finance journey. Knowing where you are may not feel pleasant but avoidance will lead to bigger consequences.

Betterment

Even though we don’t like to admit it, there’s always room for improvement and our finances are no exception. The first thing that guarantees mastery is actually following the budget that’s created. This serves as a guardrail – it’s used to keep us on track so we can greet our financial destination with open and inviting arms.

Once that’s in motion, explore ways to enhance your financial experience. Begin by automating recurring expenses, such as cellphone service or utility bills. That’s why it’s so important to be as honest and accurate as possible when setting a budget. Nothing should come to you as a surprise outside of any emergencies. When you trust yourself and the financial work you’ve put in, your finances have no choice but to follow suit.

If you haven’t already (or need to get back on track), work to beef up your emergency fund and savings account. Emergency expenses have a tendency to appear out of nowhere, so you want to dedicate a set dollar amount or a percentage every pay period. Setting up an automatic transfer to these accounts establish a routine while putting your mind at ease in the process.

Is there a hobby or skill you’d like to put to use and monetize? No matter how grandiose or small, this can definitely expedite achieving your financial goals. The money earned from a passion project can go toward savings, paying off debt or simply getting back to a place of comfort financially. Vacation funds or prepping for large purchases such as a car or home can also fall within this category. If you want to seek the assistance of a professional, search for financial advisors or coaches that could help you with reaching your goals. Preparation is key and your future depends on it!

Confidence

The foundation has been laid and you’ve been committed to crushing your financial goals. The budget and savings goals are in motion; so what’s next? It’s time to celebrate! Walk into your financial future with your best foot forward. When times seem bleak, remind yourself of your goals early and often.

Reinforcement such as daily reminders on your phone, having goals posted somewhere in your home you can see daily or reciting positive financial affirmations will serve as a second wind when you want to throw in the towel. Be sure to celebrate wins along the way such as debt payoff, reduction or hitting a new savings goal. Never been able to invest before and now you have the additional income to get in the game? Celebrate that!

The best way to generate excitement is to rally your family and get them involved. Create family challenges to get your children excited about saving funds and reallocating money. Come up with creative ways you all can commemorate knocking out a goal by ordering from your favorite restaurant or saving for a family staycation.

In order to walk in confidence, you have to build up the courage to begin no matter where you are or how many times you’ve had to start over. Each step counts – each successful budget, savings goal and consistent reduction of overall expenses. Be sure to keep in mind, financial freedom looks different for everyone and has the ability to pivot over time. While some may want to vacation throughout the year, save for their children’s college fund or wipe debt out completely, all are significant and take sacrifice. What is the key to achieving such a pinnacle level of confidence? Time.

 

Be kind to yourself and understand mistakes should never be equated to failures. Your commitment to this financial journey will always be rewarded.

The post The ABCs of Financial Empowerment appeared first on MintLife Blog.

Source: mint.intuit.com

Mint Money Audit: Managing Money When You Make Enough

Anna’s email requesting help with her finances began with a unique confession.

“Farnoosh, my money problem garners little sympathy,” the 32-year-old wrote. “My issue is that I make too much of it.”

Now, THIS is interesting, I thought. I immediately followed up with many questions.

Here’s what I learned through our conversation:

The Denver-based Mint user earns $220,000 per year as an engineer. Anna’s also benefited from years of big bonuses and her net worth, not including her home equity, is close to a million dollars.

After paying taxes and health benefits and maxing out her 401(k), Anna takes home between $8,000 and $10,000 each month. Her expenses mainly consist of a $1,200 mortgage payment, car insurance, gas, food and utilities, amounting to maybe a few thousand dollars per month.

The rest either goes into savings where she stashes about $5,000 to $10,000 for unexpected expenses or into a brokerage account where she has roughly $800,000 invested. A wealth management firm manages that portfolio and charges, she says, an annual 1% fee.

Anna has no consumer debt, besides her mortgage, which amounts to about $338,000. It’s a 30-year fixed rate loan with a 2.85% interest rate. The home has appreciated in recent years with about $100,000 in equity (including Anna’s initial 20% down payment).

So, what is the problem, exactly?

“My big worry is that I don’t have the habits to manage money well,” Anna told me. Her sizeable bank balance has her feeling financially free, although she worries about getting carried away with spending sometimes.

“When I see money in my bank account I rationalize that ‘yea, that vacation is doable. I don’t hold back on the things that may seem frivolous,’” she says. But It seems she wants more financial grounding and to be able to evaluate expenditures and price tags more critically.

Anna’s situation may be unique, but I think relatable in the sense that we all would like to feel more thoughtful with how we spend, save and invest. And while some may do well with earning money, it should not be assumed that they can also manage that money well.

I applaud Anna for wanting to be sure that, even with an impressive net worth, she is actually making wise financial decisions.

Here’s my advice.

Take a Deep Breath

No need to panic when spending on things and experiences that you enjoy. From what I can tell Anna’s prioritizing the serious financial stuff first like contributing the max to her 401(k) and saving all of her annual bonuses in a brokerage account. She has no credit card debt and pays all her bills on time. That’s terrific.

Sometimes we just want to hear that we’re on the right track with our money and I have a very simple way to measure this:

If you manage each paycheck by saving, investing and paying all your bills first, then by all means, you’re entitled to have fun with whatever is left without any fear or regret. Am I right?

If you’ve done the good work of taking care of your future with your money, then don’t hesitate treating yourself and others with the remaining funds today. Splurge away and enjoy your hard-earned money. And remember to enjoy the moment.

Ditch Your Money Managers

I do think Anna could find a better home for her investments.

Paying one percent of her managed assets to this firm may not seem that high of an annual fee. But when you think about Anna’s balance of $800,000, that’s $8,000 this year. What about next year and the decades after that as she contributes more to the account? That fee, compounded over the next 30 years, will amount to – conservatively – over one million dollars. Ouch.

That doesn’t even factor in the expense ratios for each mutual fund that’s in her portfolio.

If all Anna seeks is investment assistance, she may be better suited stationing her money with an automated wealth platform or robo-advisor where her money is largely invested in low-fee index funds or exchange-traded funds (ETF) and the portfolio management fee is typically 0.50% or less.

Of course, breaking up with your financial advisor is not always so simple. It’s especially hard for Anna, as she equated her money managers to “father figures.”

If I were Anna, I would just explain to my advisors over email something like, “I want be more conservative with my money and that includes being extra mindful of the various fees that I’m paying. To that end, I’ve decided to manage my money more independently. I’m sure you can understand. I appreciate your help over the years. Please let me know next steps.”

Planners know the drill and are used to having clients end relationships.  Stay strong. Nobody can really argue with the fact that saving money is a good thing!

Establish Short and Long Term Goals

Anna wants to spend and save with more conviction. I think having some concrete, tangible goals can help.

For example, she shared that she’d like to get married, have a family and own two homes – one near her office downtown and another in the mountains as a getaway.

So, the next step is to understand what these goals cost. What are, say, the going prices on a vacation home in her state? How much might she want to stash in a separate account for the future down payment on this property? Knowing the underlying costs of her goals can better direct how much to spend elsewhere.

Next time she’s planning a vacation, she may be more inclined to price compare or hunt down better deals, as opposed to just judge whether the trip is financially “doable” by the amount of money in her bank account. Now she’ll have the image of that second home and its costs and will make a more informed choice.

Contribute to a Cause

Last but not least, when you feel you make more than enough, like Anna does, this is a great opportunity to be extra charitable. If she’s seeking a way to give her money more meaning and feel purposeful in her financial life, this is a truly wonderful way to go about it. Discover a cause that you’re passionate about and make an impact as a volunteer and donor.

Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at farnoosh@farnoosh.tv (please note “Mint Blog” in the subject line).

Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.

The post Mint Money Audit: Managing Money When You Make Enough appeared first on MintLife Blog.

Source: mint.intuit.com

15 Home Business Ideas & The Free Courses You Need To Get Started

Are you looking for a work from home job or some at home business ideas?

If so, then I have a great list of free resources, such as courses and guides, that will help you find the best option and learn how to get started. Plus, all of the courses and guides in this article are free!

home business ideasIf you’re looking to make extra money, or even a full-time income, working from home is a great option. There are lots of realistic home business ideas that allow you to work on a flexible schedule.

In fact, around 50% of U.S. businesses are home based, and that number is expected to grow well into the future.

But, many people don’t know what kind of options are available or how to get started with their in home business ideas.

This article is a good starting point because I’m going to tell you about 15 different profitable home based business ideas and link to free courses, workshops, and guides that will help you kick off each of these ideas.

There are lots of valuable paid courses out there, but if you’re not sure about an idea, you might not want to spend hundreds of dollars on a course. That’s why free courses and guides are a great way to start.

You can learn more about each of these small business ideas, learn some of the basic skills, how much money you can earn, and more. You get to test these ideas a little bit before you invest a lot of time and money.

No matter what kind of business you decide to start, I think you’ll really enjoy starting one from home. 

I have been working from home since 2013, and I wouldn’t change it for anything! I absolutely love and enjoy running a business from home.

It has allowed me to travel full-time, save enough money to retire early, love what I do each day, and more.

Many people love running home based businesses for those reasons, but it also cuts your commute, allows you to earn money in your spare time, be your own boss, work on a flexible schedule, and more.

So, to help you get started, today I will explain some of the best small business ideas from home and which free online courses can help you get started.

Here is a quick list of the free work at home courses and resources I’m sharing:

  1. Selling Printables on Etsy Ebook
  2. Sell on Amazon Starter Course
  3. How To Start a Blog Course
  4. Build A Voiceover Action Plan From Scratch Minicourse
  5. Start An Online Advertising Business From Scratch
  6. Start Your Virtual Bookkeeping Business
  7. Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days
  8. General Transcription Mini-Course
  9. Become a Proofreader 76 Minute Webinar
  10. Court Transcript Proofreading Mini Course
  11. Podcast Virtual Assistant Workbooks
  12. Make Money Writing Romance Novels ecourse
  13. Pinterest Virtual Assistant Training Workshop
  14. Jumpstart Your Virtual Assistant Business
  15. Self-Publishing Your First Book

Below, I will be diving deeper into what each option is like, as well as more information about each of those free resources.

Below are 15 home business ideas.

 

1. Sell printables on Etsy.

Are you looking for a smart home business idea that allows you to use your creativity? Are you wondering “What can I sell from home to make money?”

If so, I recommend checking out this option. See, creating printables on Etsy can be a great side hustle because you just need to create one digital file per product, which you can then sell an unlimited number of times.

Printables are digital products that customers can download and print at home. Examples include grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, and patterns.

You can sign up for this free ebook that helps you figure out where to start when it comes to selling printables on Etsy.

Related content on successful home business ideas:

  • 12 Passive Income Ideas That Will Let You Enjoy Life More
  • 15 Of My Best Working From Home Tips So You Can Succeed
  • 15 Outdoor Jobs For People Who Love Being Outside
  • 24 Of The Best Work From Home Jobs & How To Avoid Scams

 

2. Sell items on Amazon.

Yes, you can make money selling items on Amazon. Actually, this is one of the home business ideas with low start up costs because you can literally start selling items from around your house. Make money while you declutter your home, what’s not to love?!

The first year that my friend Jessica ran her Amazon FBA business, working less than 20 hours a week total, she made over $100,000 profit!

This free course shows you how to start a profitable Amazon business in a 9-part video course. You’ll learn:

  • The exact steps to follow to set up your Amazon Seller account
  • Two easy and affordable ways to find items to sell
  • How to choose profitable inventory that customers actually want to buy

Click here to sign up for the FREE Amazon FBA Starter Course!

 

3. Start a blog to work at home.

For obvious reasons, blogging is my favorite on this list of profitable home business ideas.

It is a business that allows me to travel full-time, have a flexible schedule, earn somewhat passive income, and more.

Blogging changed my life for the better, and it allows me to earn thousands of dollars a month, all by doing something that I love.

My blog was created on a whim as a way to track my personal finance progress. And when I first started my blog, I honestly didn’t even know that this was going to be one of the best small profitable business ideas out there. At least that’s been the case for me! 

You can easily learn how to start a blog with my free How To Start a Blog Course.

Here’s a quick outline of what you will learn:

    • Day 1: Reasons you should start a blog
    • Day 2: How to determine what to blog about
    • Day 3: How to create your blog (in this lesson, you will learn how to start a blog on WordPress – my tutorial makes it very easy to start a blog)
    • Day 4: How to make money blogging
    • Day 5: My tips for making passive income from blogging
    • Day 6: How to grow your traffic and followers
    • Day 7: Miscellaneous blogging tips that will help you be successful

 

4. Become a voice over actor.

A voice over actor is the person you hear but rarely see on YouTube videos, radio ads, explainer videos, corporate narration, documentaries, e-learning courses, audiobooks, TV commercials, video games, movies, and cartoons.

In 2014, Carrie Olsen replaced her salaried day job to become a full-time voice over actor. People are constantly asking her how she got her start and how they can too.

So, she created Build A Voiceover Action Plan From Scratch Minicourse — This free course will help you learn about becoming a voice over artist, even if you’re brand new!

 

5. Run Facebook ads for local businesses.

Did you know that you can make a living from Facebook? With Facebook advertising, you can help businesses expand their reach.

And, yes, this is a skill that you can learn without any prior experience in marketing or advertising.

The going rate for Facebook Ad management is $1,000 – $1,500 per month, per client.

Last year, business owners spent over $88,000,000 per day on Facebook ads. This is expected to continue to grow, and it is one of the largest advertising spaces that exists.

My friend Bobby Hoyt knows a lot about this topic. Bobby is a former high school teacher who paid off $40,000 of student loan debt in a year and a half. He now runs the personal finance blog Millennial Money Man full-time, as well as a digital marketing agency for local businesses that he started in 2015.

Bobby has a free webinar on this topic too. His webinar, Start An Online Advertising Business From Scratch, will teach you how to start this business even if you’re brand new, how to find paying clients, and more.

 

stay-at home business ideas

6. Start a bookkeeping business.

A bookkeeper is someone who tracks the finances of a business. They may handle payroll, billing and invoicing, etc.

These are all skills you can learn without being an accountant or having any previous experience.

Ben, from Bookkeeper Launch, helps people get started as bookkeepers even when they don’t have any experience. Ben is a CPA who founded his business after realizing that many businesses needed better bookkeepers. 

Start Your Virtual Bookkeeping Business will teach you more about running your own virtual bookkeeping business. You’ll learn:

  • Is a bookkeeping business for you?
  • What exactly is a bookkeeping business? What kind of work do they do?
  • How much money can you make as a bookkeeper?
  • How do you find clients?

 

7. Search for items to resell.

Have you ever found something that you thought you could resell to make a profit?

Melissa’s family earned $133,000 in one year by buying and selling items that they’ve found at thrift stores, yard sales, and flea markets.

Some of the best flipped items that they’ve sold include:

  • An item that they bought for $10 and flipped for $200 just 6 minutes later
  • A security tower they bought for $6,200 and flipped for $25,000 just one month later
  • A prosthetic leg that they bought for $30 at a flea market and sold for $1,000 on eBay the next day

This is one of the home business ideas that anyone can start because you can start off selling things in your own house — I know we all have lots of stuff in our house that we could stand to get rid of. Then once you get a feel for the work, you can start purchasing items to resell.

Melissa has a great free webinar, Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days, that will help you learn how to make money by flipping items.

 

8. Transcribe audio or video content into text.

Transcription is when you turn audio or video content into a text document. You listen to what’s being said and type it up.

There are many businesses looking for transcriptionists too – since general transcriptionists convert audio and video to text for virtually any industry, there really isn’t a typical client. Some examples include marketers, authors, filmmakers, academics, speakers, and conferences of all types.

Beginning transcriptionists earn around $15 an hour and it goes up from there.

You can learn more in the Free General Transcription Mini-Course. In this course, you will learn what it takes to become a transcriptionist, how much money you can earn, how you can find jobs, and more.

 

9. Become a general proofreader.

Proofreading is one of the most flexible and detail-orientated home business ideas that work. All you need to work as a proofreader is a laptop or tablet, an internet connection, and a good eye for finding mistakes.

Proofreaders look for punctuation mistakes, misspelled words, lack of consistency, and formatting errors.

You take content that other people have written and then go over it with a fine-tooth comb. You might be proofreading blog posts, print articles, academic articles, website copy, ad copy, books, student papers, emails, and more.

In one year, Caitlin made slightly over $43,000 by being a freelance proofreader.

Caitlin put together a FREE 76-minute workshop, where she answers all of the most common questions about becoming a proofreader, and she even shows you how to use the most popular tools used by proofreaders around the world. You can sign up for free here.

 

10. Become a court transcript proofreader.

Becoming a court transcript proofreader is a more focused version of the last idea.

Here’s what it’s like:

“Court reporters use digital stenography machines in combination with computer-aided transcription software to write verbatim records of various legal proceedings. They report depositions, trials, hearings, arbitrations, case management conferences, compulsory medical examinations, examinations under oath, and pretty much any other type of legal proceeding. Because of the sensitive nature of legal proceedings, it’s imperative that as many errors as possible be eliminated from transcripts — an especially major error could ruin an entire trial!”

Due to this, many court reporters also use court transcript proofreaders.

There is more training that goes into becoming a court transcript proofreader, and that is why I separated it from the general proofreading job above.

Caitlin, mentioned above, also has a great FREE 7 day course just for people who are interested in becoming a court transcript proofreader.

 

Home business ideas with low startup costs

11. Become a podcast virtual assistant.

There’s a big demand for podcast virtual assistants right now.

This is because there are over 800,000 podcasts out there, and that number just continues to grow. Podcasts are still a pretty new area, and that opens the door for lots of home business ideas that help out with all of these podcasts.

While the podcast host is responsible for recording themselves, other tasks like editing and publication take time, so many podcasters outsource their work to freelancers or virtual assistants. Also, some podcasters may not know how to do those things, or they may choose to focus their time on other areas.

Some of the different services you can offer as a podcast virtual assistant include:

  • Audio editing
  • Marketing and promotion
  • Publication
  • Distribution
  • Show note creation

You can sign up here for free information that will tell you more about how to become a podcast VA. In this free resource, you’ll learn exactly what a podcast virtual assistant is, the services you can offer, and starting rates.

 

12. Write romance novels.

My friend Yuwanda Black has found one of the most interesting home business ideas – she writes romance novels, and in one month, she was able to make over $3,000!

With her free Making Money Writing Romance ecourse, she teaches you how to make money writing and self-publishing romance novels.

It is taught from first-hand experience, which Yuwanda has because she’s written and self-published 50 romance novellas since 2013. And, she continues to publish today.

 

13. Work as a Pinterest virtual assistant.

Working as a Pinterest virtual assistant is a growing field as more and more business owners are using Pinterest to grow their business.

Pinterest VAs help businesses improve their reach by doing things like:

  • Designing Pinterest images for a website
  • Helping business owners set up their Pinterest account
  • Scheduling pins because this can be time consuming for the average business owner
  • Brainstorming a marketing plan

Click here and click on “Free Training Workshop” to learn how to become a Pinterest virtual assistant and find your first client. In this free course, you’ll learn what you need to do to get started, what services to offer, and how much to charge as a Pinterest virtual assistant.

 

14. Work as a virtual assistant.

If you’re looking for home business ideas with low startup costs, then virtual assisting is a great one!

Virtual assistance is a field that is growing very quickly and it is one of the very popular stay-at home business ideas.

Not only does the internet allow us to complete more of our daily tasks online, more and more people are working online. This presents a good opportunity for more virtual assistants.

Virtual assistant tasks may include social media management, formatting and editing content, scheduling appointments or travel, email management, and more. Basically, you can get paid to do any task that needs to be done in someone’s business, but doesn’t need to be done by them.

If this is one of the home business ideas you’re interested in, I recommend checking out Jumpstart Your Virtual Assistant Business. In that link, you’ll receive a free worksheet and workbook that will help you decide what virtual assistant services you can offer (there are over 150 choices!).

 

15. Write your own eBook for work from home ideas.

Writing your own eBook is a great way to make money from home, and there is probably something super helpful that you could write about (even if you think otherwise!).

In fact, my friend Alyssa self-published her first book and has sold more than 13,000 copies.

She is now earning a great passive income of over $200 a day from her book ($6,500 in one month alone!).

Learn more at Self-Publishing Your First Book. This free series will teach you what it takes to publish a book, including the strategies used to launch a book, writing tips, and more.

 

What is the best home business to start? What are the most successful small businesses?

As you can see, there are plenty of different home business ideas out there, and this list is only scratching the surface. There are full-time home based business ideas, and then there are part-time business ideas.

The best business home based ideas are going to be different for everyone. For example, some people are naturally good proofreaders, while others will have a knack for finding the right items for reselling.

I would think about what kinds of things you’re good at, what interests you, the skills you already have, etc. That may narrow the choices down some. 

But, what I love about the home business ideas on this list is that the free courses and guides listed mean you can learn more about any of them without a big investment. You can explore ideas without feeling like you’re wasting your money.

What home business ideas are you interested in?

The post 15 Home Business Ideas & The Free Courses You Need To Get Started appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com