Tag: credit

24% Dividend Idea with BTI, Short-Term Hold

by Road-to-wealth, posted in FINANCE / MONEY

Although we covered a more in-depth analysis of (BTI) British American Tobacco in this article, today, I realized a play that can be very beneficial within the next few days.

BTI goes ex-dividend on 22 December 2021. That means that everyone who buys shares on or before 21 December 2021 will receive a dividend payout.

The idea is simple, but you have to afford to buy 100 shares. At the current price of $37.30 on 20 December 2021, it will cost $3,730. Before you ask, Yes, you can still buy shares of BTI if you don’t have the whole amount needed; you won’t be able to complete the entire strategy, though. But you can always learn it for later. Buying shares will only give you the dividend.

Let’s try to catch a dividend here.

Get free stocks when you open a Robinhood account.

I bought 100 at $37.26 for a total of $3,726. Therefore, BTI will pay a dividend of $0.74, bringing in $74. For those of you who are newer, you multiply the number of shares (100) by the amount of the dividend paid ($0.74). That’s how you calculate how much you will receive.

On the 22nd, I will sell a call option, the $35 Call expiring on 21 January 2022, to be exact. It is currently trading for $2.30. If BTI keeps increasing in value, it could sell for that or more. To keep it simple, let’s use the current price.

As long as BTI remains above $35 by the expiration date of 21 Jan 22, my shares will be called away at a standard price of $35 per share.

Let’s do the math:

100 shares at $35 = $3,500

Credit for selling the call is $2.30 * 100 shares = $230

The dividend, as previously established, is $74

Add it all up, and you get $3,804. So my total investment was $3,726, which gives me a $78 profit in exactly 31 days for a little over 5 minutes of work. That is an annualized gain of 24.87% for sitting on my hands.

Are you receiving a 24% profit anywhere else? If not, this is an opportunity you can try with dividend-paying stocks.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

From the comfort of your home, invest anywhere in the united states with Fundrise.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

START LIVING YOUR REALITY

by Road-to-wealth, posted in FINANCE / MONEY

“The biggest risk is not taking any risks” Mark Zuckerberg

DISCLAIMER: Please read our disclosure policy here. Links in this post may contain affiliate links and as an Amazon Associate, I earn from qualifying purchases.

We all want to live before we die, right? That means that at some point, we have to stop trading away our time for dollars. Money is important but we need to stop working for a salary or a wage and figure out how to make money work for us!

First thing is, you need to be honest with yourself. Answer the following questions with all honesty and see where you are. Just a simple Yes or No.

1. Do you operate your household with a budget?

2. Do you know how much debt do you currently have? (Total debt)

3. Do you routinely pay your bills on time?

4. Do you have savings for an emergency? (At least $1,000)

5. Do you have a plan for tackling your debt?

6. Do you regularly charge your credit cards because you spend more than your paycheck?

7. Do you hide bills from your family?

8. Have you been turned down for credit/loans?

9. Do you prefer to buy fun things today than buying assets for the future?

10. Do you think the government and social security should provide enough to cover your expenses in retirement?

See how you did…

If you answered ‘Yes’ to questions 1-5, that’s great! You are already taking control of your cash flow…

If you answered ‘No’ to questions 6-10, that’s also great! … You have the right mindset and probably just need a little push…

If your answers are mixed, you have some work to do…

If your answers are completely inverted, You are headed toward financial disaster. You need to re-evaluate your life big time.

At first, it is difficult to change your bad habits. You bet it is. But your life can dramatically change for the better and it all depends on you. See how you spend your time and that will give you an idea where your life is headed.

I come to figure out in my 30’s, that I do like to read. As a young person, I thought I didn’t like to read. Actually, I figured out that when it comes to making my money grow faster and faster, I can’t stop reading once I start.

Everyone is money-oriented. Some to spend, some to accumulate. The difference is financial knowledge and literacy. The ones that read about money and apply it in real life, get ahead of the game. The ones that not, live through struggle their whole life.

I will make several recommendations of books that I have read and have been illuminated by new knowledge that when I started putting it all together, my life started to change for good. There is no stopping now.

Note: Although it was not the first book I read, it is highly recommended you start with Twelve Pillars for a solid foundation…. but getting back to the article…

The first book I read was:

#1. How to make money in stocks by William J O’Neil – in short, he follows and shows how to use the CAN SLIM formula (yes, it’s an acronym), uses both a few fundamentals and a little bit of technical analysis. He doesn’t use a get rich quick scheme. Slow and steady wins the race.

#2. How to make money in stocks complete investing system: your ultimate guide to winning in good times and bad. Also by O’Neil.

#3. The intelligent investor by Benjamin Graham – he teaches you to keep emotions under control and invest like an intelligent individual. No high IQ needed, or inside information or luck. You can’t ignore that some of his disciples have shown the possibilities when you put it all together. Like who you said? Nothing more than Warren Buffett who says this is the best book in investing ever written by far. Mr. Buffett is currently the 3rd richest person in the world with over $80 billion dollars.

#4. The millionaire next door – opened my eyes to the possibility that anyone with any type of income sources can get to where they want if they so desire. No high income is needed because everything comes down to your spending and savings habits. It shows you a simple formula to measure your wealth! Now, you will instantly know if you are ahead of the game or not. Are you a PAW, AAW or UAW?

#5. Rich Dad Poor Dad by Robert Kiyosaki – has expanded my knowledge to immense proportions. In summary, Robert’s real dad (poor dad) and his best friend’s dad (rich dad), shaped his life with the way they see money and investing. You don’t need big degrees or high incomes to be rich. You just need financial literacy about money and how the rich make money work for them and not the other way around.

I’m telling you, if you start with these 5 books, you will be way ahead of 80% of individuals I know because no one wants to read. If you feel like one of those too, let me show you a trick; read 10 pages every night before you jump into bed. For example, the millionaire next door is 270 pgs, at 10 pgs per night you will finish it in 27 days. Just under a month, you will have new knowledge that if applied, you can start your own road to wealth.

Knowledge is power, only if put into action. You can know it all, but if you don’t start, it just goes to waste. Don’t be one of those 10 years from now saying, only if it would have started earlier.

I’m glad I didn’t wait that long but still would have loved to have all this knowledge when in college. My life would have been even better than what it is right now, which is not bad at all. I mean, I just doubled my wealth in 2 years and 8 months.

Don’t be left behind. Jump on the bandwagon and give me company on this journey in the road to wealth.

#BONUS#: We spoke about habits earlier. If you want to pick up good habits, you might want to check “The 7 habits of highly effective people“.

To our wealth! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it on social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com

YOUR DEBT, IS IT GOOD OR BAD?

by Road-to-wealth, posted in FINANCE / MONEY

“If you can’t explain it simply, you don’t understand it well enough” Albert Einstein.

DISCLAIMER: Please read our disclosure policy here. Links in this post may contain affiliate links and as an Amazon Associate, I earn from qualifying purchases.

Hello friends, we haven’t talked for more than a month. And I already missed you all. I can tell you quickly that I live in a new state due to work. The months of June and July have been crazy. On top of that, I signed up for real estate classes and other types of investments.

Obviously, as long as my knowledge expands, I will be sharing with you so that we can all progress. Among many other things that are new to me, I learned that there are two types of debts. All my life I thought all debt was bad.

Before getting into debt, I have to say that managing your money is just the beginning. Then comes the interesting thing, learn about money and how to make it work for you while you are not present.

We have to recover our cash flow and use it to obtain assets that give us money back, that work hard to generate more money for us. Not objects that take money out of our pockets. That is the magnificent secret of security and financial freedom.

What nobody tells you…

Debts are divided into two types, good and bad. Most people learn to have bad debts.

Debts are like everything in life. Depending on how you use it, it can be good or bad.

A gun can be good or bad depending on the person who uses it.

Drugs can be good or bad depending on how the person uses them.

If you do your part and learn how to use debt, it can be your slavery for life or your independence for life. You choose.

What are bad debts?

Bad debts are personal loans, car or home loans, student loans, and credit cards.

Why are they considered bad debts?

Because they only take money out of your pocket and in the end, they don’t have the same value as when you bought them.

The plan is to get out of all your bad debts, and when you get out of all your bad debts, then you will get more debts. Whaaaatttttt?!?!

It is true, but this time you will get good debt.

What are good debts?

Good debt comes in many forms. Good debts are those that can give you financial freedom in the future. For example, you buy an apartment to rent it. Yes, it is a debt, but it has several points in its favor.

#1. The payment of your loan does not come out of your pocket. You have a lease that pays your debt. In the end, when the loan is repaid, you are the owner of an apartment and it can produce passive income for the rest of your life and perhaps your children after your die if you have not sold it. Best part is, nothing came out of your pocket. That is how wealth can be passed down from generation to generation.

#2. You get equity or value in the apartment over the years. So, if you decide to sell, you can earn capital gains.

#3. You have government tax breaks because you are providing a service/lodging.

#4. You can repeat this cycle as many times as you want, until you receive enough in passive income to the point where you do not depend on a job and can retire early and enjoy life.

Now that is real security and financial freedom.

As you can see, this type of debt is what the rich use to get richer.

If you focus on blaming the government, you think that social security should maintain you in your retirement years, you dedicate yourself to studying and continue to accumulate student debt; I am sorry to tell you that you will never rise from being poor or middle class.

To enter the group of those who have wealth, you have to learn about money and how it works. Do not be left behind.

For today, we have learned that not all debts are bad. I will return soon with more so we can all progress.

Until next time.

To our wealth! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it in social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com

YOUR ULTIMATE GUIDE TO FINANCIAL FREEDOM YOU WILL EVER NEED

by Road-to-wealth, posted in FINANCE / MONEY
DISCLAIMER: Links in this post may contain affiliate links. Honesty above all. Please read our disclosure policy here.
Photo by maitree rimthong on Pexels.com

Let’s learn how to take control of our financial freedom today. Use the exact same blueprint I used for my financial freedom.

WHAT IS THE BEST MONEY MAKING APPROACH?

There are thousands’ of money making models out there, so I guess you are here to see which of them is the best fit for you. If you need someone with a financial background, like a B.A. in Accounting, you get one here, for free. I’ve been trying different approaches at growing my money in order to not depend solely on my job; especially after retirement.

I learned that the average millionaire has 7 to 8 sources of income. Following on their footsteps, I have become financially free. What I mean by free is, my passive income is making me an amount of money which surpasses my expenses.

DO YOU NEED A BACHELORS IN FINANCE TO DO THIS?

Now remember, it was not done in a month or two. It took some work, sacrifices, discipline and time. It takes money to make money, right?

HOW DID I DO IT?

1. Automate your savings and grow them at the same time

First thing I did was opening a savings account that will help me grow my money over time. It has an easy set up and it is one of those set it and forget it type of models. Just let it compound over the years.

It has several features:

A. Saves your money automatically by rounding up your debit/credit card to the next dollar. When it hits $5, it transfers it out from your checking account into the app account. Then the next feature takes place…

B. The money that you just saved will automatically be invested in the stock market. You can choose if you want to be more heavily invested in stocks, bonds or a mix of both. This step needs to be done only once. It will automatically do it for you after first time set up. Also receive dividends from the stocks you hold.

C. Found money feature lets you buy at your favorite brands and stores through the app and they will give you cash back or reinvest into your account.

Get your ACORNS account.

2. Easy source of income with Real Estate

Then I saved $500 to open an account where I can get some exposition to Real Estate. The reason why I prefer to do it digitally is because I became a landlord without the hassle.

For this type of investment I have a longer time horizon, meaning years. I’m planning on getting money out after I retire, not before. And since Real Estate takes it’s time to develop, I will take my time to let it panned out.

The $500 will get you in with the Starter Portfolio where you can split your money between two portfolios. In order to start using all the features available you need to save $1,000 to reach the next level called Core. By all means you can start here if you have the money available.

After reaching Core level you choose between 3 investment plans…

Supplemental Income

  • Aim to earn returns via quarterly dividends, with less appreciation.
  • Invest in an income-oriented real estate private equity strategy
  • Portfolio allocated primarily to debt real estate assets

Balanced Investing

  • Aim to earn returns via a blend of dividends and appreciation
  • Invest in a balanced mix of income and growth strategies
  • Portfolio allocated across both debt and equity real estate assets

Long Term Growth

  • Aim to earn returns via appreciation in share value, with fewer dividends
  • Invest in a growth-oriented real estate private equity strategy
  • Portfolio allocated more towardequity real estate assets

If you want to get into Real Estate, FUNDRISE is your way to go.

3. Be the Bank

Just as Real Estate has stood the test of time, so have Loans. With this advance in technology now you can become the bank, lend $25 per loan and get paid.

The downside here is you need money to open this account. If you want just the basic stuff you need $1,000 to be exact; although they recommend you begin with $2,500 in order to mitigate risk of losing. If you want to get free notes with full features and $75 bonus, then you need to save $5,000.

Now to the good part. They claim historical returns over the long term is 3%-8% but as you can see on the picture below, I’m currently at 11.55%. If you open an account shoot me an email and I will show you a few tricks to weed out bad investments. Free of charge of course.

LENDINGCLUB is your pass to play the Bank, but with real money, getting paid for real; not Monopoly money.

Note: Currently only residents of the following States may invest in LENDINGCLUB notes: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NV, NY, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY.

4. Build a wealth mindset

Ever dreamed of becoming a trader and making money on the markets? Today is your lucky day because you can open your account, and receive a free stock like Sprint, Apple, Microsoft or many others.

The simplest way you can do this is by buying dividend paying stocks. I suggest you take a look at this list.

Great Dividend Stocks include stocks with both consistent multi-year dividend growth and steady price appreciation.

Dividend Achievers are stocks that trade on the NYSE  or NASDAQ and have increased its annual dividend for at least 10 years or more.

Dividend Aristocrats, are stocks that have increased its annual dividend for 25 years or more.

Dividend Kings are stocks that have increased its annual dividend for 50 years or more.

You can buy some of this stocks and know that price will increase over time but almost surely your dividend will increase yearly. Giving you bigger payouts.

Get your ROBINHOOD account today.

5. Extra Income

The following accounts I don’t use to build wealth but to get some extra cash every month. They are similar but offer many options when it comes to receiving your money.

SWAGBUCKS will pay you for giving your opinion on surveys, watching videos, and a wide variety of other ways.

INBOXDOLLARS will also pay you for giving your opinion on surveys, watching videos, and many other ways.

LUCKTASTIC is the modern way to play Lottery by scratching digital tickets. You can win cash, gift cards or tokens.

6. Fix your credit score

If you want to become wealthy, one way you need to get started is by improving your credit score. Credit Sesame will give you tips by email to help you get where you need to be.

7. Save, get cash back and much more…

Ease on your pocket by getting the best you can in Car insurance. Gabi will compare your current insurance and will find you if any other Insurance Company is offering the same insurance at a lower price.

Get offers, save and get cash back in your groceries. It is a great way to stay in budget and keep your fridge full. Ibotta will give you this and much more. Give it a try.

Paribus is a program that will scan your emails and get you cash back when the item you bought drops in price. It also gets you compensated when your shipment is late. Don’t delete your emails anymore and rip the benefits of this program.

MY RATING SYSTEM

I give ratings to my investments from 0 to 10. Main variables are:

* Ease of set up

* Ability to make money

* Consistency

* Price

* Special features

ACORNS 9/10 (only downside is if the market sells off, although we know it will be temporarily, everything else is great)

FUNDRISE 9/10 (it is a slow investment, need patience but it’s totally worth it)

LENDINGCLUB 9/10 (only hurdle is the amount of money to get started, once you get over that hurdle you will not stop smiling)

ROBINHOOD 8/10 (super simple platform, need more features if you plan to day trade)

SWAGBUCKS 7/10 (need time for surveys, you can let videos run in the background)

INBOXDOLLARS 7/10 (need time for surveys, you can let videos run in the background)

LUCKTASTIC 6/10 (at least for me the cash prices have been low, although I read about others making $100, maybe I’m not lucky enough, lol)

CREDIT SESAME 10/10 (everything you need to improve your credit score you can find here)

GABI 10/10 (super easy to do and save me over $900 for the year by switching to the new insurance company)

IBOTTA 9/10 (easy to use and offers many options)

PARIBUS 10/10 (easy set up and you have to do nothing but wait)

CONCLUSIONS

Hopefully, you’ve already put an eye on a money making technique that you liked. If you are still unsure, start from the simplest techniques and move up. I recommend you open an account for each type of approach. They are uncorrelated and that will help you grow faster when the cycle comes around. Like the Chinese saying goes “the best time to plant a tree was 20 years ago, the second best time is today”. Today is your day to plant your tree.

Hope it helps! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it in social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com