Tag Archives: business

by 0
Building Income

It depends on what the goals are and what level of revenue you are generating. Small business can also become large businesses.  First I would have you calculate your worth per hour in your current field.  Let’s use the classic example of a laundry mat. A laundry mat may generate a 50% profit. On average it is 30% to 40%. They have low overhead and maintenance costs but expensive utility bills. Thought to be resistant to poor economic conditions. You would need to watch out for competitors moving in to the area. The population of the area may reduce or move. More to consider….. The purchase of a laundry mat can occur with owner financing, business loan, or other funding. Business loans can have large interest rates eating away the profit you may obtain. Some would argue to get business partner funding or owner funding. Owner funding usually requires some…

Read more

by 0
Building Income

Options trading and stocks  Please read about the Greeks before reading further. Options trading is another way of earning income. This is a similar strategy to just buying and selling stocks which you could also do. If you are risk averse I would avoid options and individual stock trading. Only play with 10% or less of your money.  Stock trading you buy a stock at what should be a lower value and sell at a higher price later making income. For example you buy apple stock at $140 per share and sell at $150 a share. Say you buy 10 shares. That cost you $1400. You then sell that 6 months later at $150 a share. You get $1500 or a net profit of $100. Now that is only a 7% yield for that time frame. If you had similar success this could be 14% yearly. If the stock drops…

Read more

by 0
Building Income

What side gigs are and why do them Monetize your time and build wealth. Most professionals have a primary form of employment, and some work in private for themselves.  Those that are employed over the years many have started side positions or side businesses to produce income.  There are several reasons and advantages as to why this happens. I would also recommend obtaining a skilled CPA when making these moves. If you are in an employed position generally that comes with benefits and retirement accounts.  These retirement accounts usually include a 403b plan or 401k plan and a 457b plan.  Generally, will not have access to both a 401 K and a 403b.  Those 2 plans are similar except the 403b planned generally only let’s to invest in annuities and mutual funds and the 401 K has more options for investment.  Generally, he will also get a certain percentage of…

Read more

by 0
Building Income

Why the generic bank account is a bad investment Banks will only give you a low interest rate and at times may even charge fees. It is much more beneficial to invest extra money outside of your emergency fund into some type of higher yielding account. Banks may yield 5% if you are lucky and even some stocks will only get you 1%-8%. What I don’t understand is why people are fine with this low growth when you could be making 10% or more. Even the SP500 itself yields about 10%. Cash example: You have 10k in either the bank or in a mutual fund making 5% in the bank and 10% in the mutual fund. Bank per year=$500. Mutual fund per year=$1000. The only advantage to having money in the bank is that you have a guarantee of 250k from the government if the bank is robbed.  Liquidity should…

Read more

by 0
Building Income

Real estate: is it a goldmine? You can certainly search the internet for topics of wealth building and people that can advise you for a fee. What I have learned is that real estate is what you can make it.  What makes it attractive for investors is that you can have a great yield (5% to 100%) on the money you use to purchase. You can write off depreciation of a property and maintenance. You can gift assets and be taxed less by the government. Property prices increase with inflation. You own a physical asset and can borrow against it. Maybe they enjoy fixing up houses.  What are the negative aspects of this strategy? This is where many of these websites or advertisers fail to explain. What I found is that real estate is a lot of time and work. This asset is not quickly available if you need your…

Read more

by 0
Building Income

Why you should always monetize your time…consider a side hustle. Any professional should always monetize their time because time is the finite resource that you do have. You only have a certain amount of time to devote to earning income.  Anything that you were doing with your time that does not earn income or bring you some type of improvement in your life or pleasure you should probably not be doing.  Calculating the amount you earn per hour is highly beneficial for deciding on if you should take a certain position or ask for more money or if you should be doing the activity that you were planning on engaging in. For example:  It takes me approximately 2 hours to clean up my driveway after a massive snowstorm. If I were working as a moonlighter/contractor for those two hours I would earn anywhere from $320 to $640. It is not…

Read more

by 0
Building Income, Saving Money

If you have seen my other post about real estate you know the benefits of investing in it as well as the negatives. In my opinion the way we live is backwards. We should be buying property first when we are young not renting and we should be renting when we are older. Example: Young adult: You are 22 years old and just finished college. Starting your first professional career in banking. You earn $50000 per year. You do all the right things maximizing retirement, emergency fund, doordash on the side, making some extra money, start SEP ira, have a Roth IRA, and have an HSA account. You have $0 for a home down payment and you don’t have a lengthy job history for the bank to give you a home loan. You will be stuck living in a rental. You end up paying $1000 per month. You are spending…

Read more

8/8