Tag: stocks

If You Are Overthinking About Investing and Time is Passing By, This is What Happens

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

Friends, Colleagues, and even Family Members ask me, “Joey, Why are you so committed to investing?”

It is a question that makes me both happy but also sad.

Happy because everyone around me sees my commitment to my financials. But also Sad because they still don’t understand what moves me.

My goal is that by the end of this article, you will understand my point of view towards the future and take action to help yourself along the way.

I got involved in the markets during the 2008-2009 crash. Believe me or not, it was one of the best times to get involved in the markets because it quickly taught me that it was not easy, especially if you were a trader more than an investor.

Although trading is exciting, it takes time to analyze the markets daily. Try to find what is moving and catch the perfect windows to jump in and out. Unfortunately, it is an ideal recipe for burning out quickly.

On the other hand, let’s say that I’m lazy. I don’t want to be stuck to my computer all day looking for opportunities. So use that time in other productive activities while the markets do their thing, and you still get paid for being patient.

Be part of the disruption and get free stocks when you open a Robinhood account. Also, enjoy your fractional shares and commission FREE!

To answer the first question, “why am I so committed,” is because I realized the earlier you begin investing, the sooner you can reach your goal and the less time you have to spend working for someone else. Understand that I said “Investing” and not “Trading.”

Most financial advisors teach individuals about the 4% rule at retirement. Unfortunately, that is a horrible strategy because it involves withdrawing 4% of your capital to live and cover expenses every year. As a result, most people will have little to no money towards the end of their years.

It puts a severe amount of pressure on their kids and family members. Now, they have to cover their expenses and yours as well.

Who wants to put that pressure on their kids?

I’m pretty sure no one does. That is why I have an alternate strategy that will work wonders for everyone.

The idea is to invest in assets that will cash flow enough money to cover your expenses while leaving your capital intact. Then, when we die, our kids or family members can inherit that capital (investments) and make their lives easier.

With Fundrise, you can become a digital landlord anywhere in the United States without the hassle.

How it works:

Although there are several cash flow assets, we will concentrate on dividend-paying stocks and ETFs.

Why?

Because when you invest in dividend-paying stocks and ETFs, you have several ways of making money. The most common one is capital gains as time passes. If they increase their dividends with time, your cash flow also increases. You can also learn how to sell covered calls and other income strategies to bring even more money each month.

While all of this is happening, you are not depleting your capital. Meaning your net worth will never decrease. On the contrary, you can keep increasing your net worth while living the life you want.

So, What happens if you keep postponing your investing?

In simple words, you won’t have enough cash flow to retire comfortably.

One of two things happen:

1. You can’t retire; hence, keep working longer.

2. You have to increase the money you invest to catch up.

With Robinhood you can get cash dividends from well-known and established companies like Coca-Cola (KO).

Let’s look at an example:

Mimi and Joey both begin with a $3,000 initial investment. After that, both invest $300 monthly and receive an average annual return of 8.5%. Mimi is 20 years old, while Joey is 30 years old.

In 10 years, they both have $60,826.

In 20 years, they both have $190,935.

In 30 years, they both have $485,107.

And this is where things take a turn. Joey was 30 when he began investing and is now 60 years old and ready to retire.

Meanwhile, Mimi has another 10 years of compounding before she turns 60 years old, which will end up with a portfolio worth $1,150,226.

Who will have a better life using the 4% rule?

If they both use the 4% rule at retirement, Joey will be receiving $19,404 from his withdrawals. On the other hand, Mimi will be receiving $46,009 for her withdrawals.

You can say that Mimi will have a better life because she will receive more than double what Joey will receive. He will have to figure out how to live on $19,404 a year. However, both of them will run out of money by age 85.

Why?

Because regardless of how big your portfolio is, if you withdraw 4%, you will deplete your account in 25 years.

Just do the math:

Joey – $19,404 * 25 years = $485,100

Mimi – $46,009 * 25 years = $1,150,225

In the end, neither one will have anything to give to their kids, and if they live past their 85 birthday, their families will have to support them for the rest of their lives.

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

What if they cash flow instead of withdrawing capital?

Now, this is where my strategy beats the financial advisors. Instead of withdrawing capital, we can build a dividend-paying stock and ETFs portfolio. The investments can be paying 3%-4% today, but if they increase their dividend payouts yearly, by the time you are 60 years old, you could be receiving dividend payouts well above 6%-8%.

Using this conservative estimate, Joey could receive anywhere between $29,106 to $38,808 in dividends. But, of course, it could be higher if Joey learns how to sell covered calls or other income strategies.

As for Mimi, she could receive between $69,013 to $92,018 in dividends. But, again, it could be higher if she learns the strategies previously mentioned.

I think both of them could live comfortably with those amounts, and the best part is they will never run out of money. Their portfolios will remain the same or even increase. Then, when their time is up, and they move on to a better place, their families will inherit their money, or they could give their money to charity.

It is your money, so do with it what you feel is the right thing to do.

Sin companies that pay your expenses and more.

Key takeaways:

  • The sooner you begin, the sooner you will reach your goals.
  • Concentrate on cash flowing assets instead of accumulating money to withdraw in retirement
  • Teach your kids and family members, so they too have a better life
  • The 4% rule is widespread; however, it is flawed
  • The more you postpone investing, the more money you will have to invest in catching up.
  • Begin your investing journey today

Note:

If Joey wants to have the same amount as Mimi by age 60, he will have to invest $750 instead of $300. That leaves Joey with $450 less each paycheck. So don’t be like Joey. Start now!

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, and FACEBOOK for more posts and updates. You can also reach me here with any questions.

If you are not receiving dividends, you are missing out!

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.

How a Covered Call Works for a Small Investor

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

On the famous Friday the 13th, I was scrolling my Twitter account. I felt like talking to people and answering my opinion on various investment issues and the market in general.

I saw a post (I’m not going to mention names because I didn’t ask for permission) where he mentioned covered calls, one of his primary sources of income through his investment portfolio.

Among the comments, there was one that caught my attention and said:

“I’m still learning. I have a $50 call on Verizon ($VZ) which expires in June of next year. Is there a better way to do this than buy and wait?”

I answered:

“Yes. Sell weekly or monthly covered calls. You’ll get income every month apart from dividends every three months (Verizon pays quarterly dividends). Reinvest profits. A call that expires in a year freezes your money.”

He tells me:

“Could you explain a covered call to me like I’m 6 years old? I understand calls and puts perfectly. I don’t understand anything beyond that. So I did that option really to learn and because it was so cheap. So I thought, why not?

I want to say I congratulate you and Thank you very much.

I congratulate you because not many dare to accept that they still do not have the necessary knowledge and are afraid to ask for help, especially in public, as is the Twitter network.

Thank you very much because I just got back from vacation from the island of Puerto Rico and I wasn’t sure what to write. You allow me to help you and others in a similar learning position.

Let’s do it this way first, I’ll give an example of a child investor, then I’ll cover what a covered call is, its risks and benefits, and I’ll finish with two real-life examples that I’m actively managing.

Key takeaways:

* What is a ‘covered call’?

* Risks of this strategy

* Benefits of this strategy

* Real examples

Be part of the disruption and get free stocks when you open a Robinhood account. Also, enjoy your fractional shares and commission FREE!

The Small Investor

You’re 6 years old, and you buy 100 hot-wheels cars for $2. However, you want to sell them in the future at a higher price. A ‘covered call‘ gives you the option to sell them at a higher price in the future while earning you income while keeping the cars in your possession.

Therefore, you sell the option to Juanito to buy the cars from you for $2.50 if the cars are worth $2.50 or more in the future. Juanito pays you a credit, let’s say $0.50, for having the opportunity to buy those cars.

At a stipulated date in the future, say a month from now, one of two things will happen.

1. Cars are worth $2.50 or more. Juanito returns to you to buy the cars. He takes your cars and pays you the $2.50. You keep the $0.50 he paid you for the contract and receive the $2.50 per car in cash.

You have the cash and credit to go back and make another investment. You generated a profit of $0.50 per car ($2.50 sale price – $2 cost) plus the $0.50 credit.

2. Cars have not yet increased in value above $2.50. The contract expires. Since it is not worth more than $2.50, Juanito will not want to exercise his contract since he can get the cars at a lower price. Juanito loses $0.50 that you keep for yourself.

So you keep the $0.50 contract and keep your cars in your possession. It allows you to make a new contract for the next month, generating more income while you continue to reduce the cost of your cars.

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

What is a ‘covered call’?

It is an income strategy that helps investors generate income in addition to dividends (if the company pays dividends) and capital gains on the stocks or ETFs that you already manage in your portfolio.

Risks of ‘covered calls’

There are two types of risks:

1. The most considerable risk we incur is that we limit our profits on price appreciation.

For example, we buy 100 shares at $45 and sell a call at $50. We limit our earnings to $5 per share ($50 – $45) plus the credit we receive. If the stock rises above $50, the person who bought the call will exercise their option to buy $50 from us and sell it at the current market price.

2. The other type of risk is if the share price falls too low from where we buy because the further the price is from our effective cost, the credit we receive also decreases.

Benefits of ‘covered calls’

1. Selling ‘covered calls’ provides weekly or monthly income depending on the company. Some companies, like Verizon, sell weekly options. Others, like MPLX LP, sell options on a month-to-month basis.

2. Regardless of what price does after selling a covered call, the credit we receive is ours to do with as we please.

Buy whole shares or fractional shares of your favorite stocks, whether Tesla (TSLA) or any other company, commission-free with Robinhood.

Possible results

When we sell ‘covered calls,’ there are 2 possibilities:

1. The stock price rises more than the price established by our sale. At this point, the buyer is very likely to exercise his option and take our shares. Then, automatically, the equivalent of the money appears in our account as cash, and our shares disappear.

In this example, we realize capital gains plus any credit we have received. Now we start looking for another investment to repeat the process.

2. The share price remains below the established price by our sale. At this point, the option loses most or all of its value, generating our credit income, and we keep our shares intact so we can repeat the process.

In this example, we have 2 options:

          a. We can wait for the option to expire and go up into the options heaven. It happens on Fridays, either weekly or monthly depending on the availability of the options. Then, when the market opens the following Monday after the expiration, we go back to sell another call with a new expiration date in the future.

b. We can do what is called a ‘roll over’ of the position, which means that we buy/close the current position before it expires for a low price between $1 to $5 and sell/open a new position for a credit to a new date in the future.

As an investor, it is up to you to decide which options to execute. It is your portfolio, and you must manage it your way. Both options are feasible.

Real examples:

Before we get into the examples, there are 2 requirements for this to work.

1. You must be authorized to buy and sell options.

2. You must be able to buy at least 100 shares of the company of your interest.

Each option consists of 100 shares. Therefore, if you do not have at least 100 shares in your portfolio, you cannot sell options contracts against that position. The part that refers to ‘covered’ means that your 100 shares are collateral for that position.

With Fundrise, you can become a digital landlord anywhere in the United States without the hassle.

MPLX LP ($MPLX)

1. The ex-dividend date for MPLX LP ($MPLX) was May 5, 22. If we wanted to receive its dividend, we had to buy the shares on May 4. That’s precisely what I did.

On May 4th, I bought 100 shares at $33 for an investment of $3,300. I sold the $33 call expiring May 20, 22, for a $40 credit.

It left me with two options:

1) the price closes below $33, and I keep the $40 credit and the shares to receive the $70 dividend ($0.70 dividend * 100 shares). By keeping the shares, I could continue to sell covered calls in the future.

2) the price closes above $33, and my shares get assigned to the person who bought my call. So I had $3,300 deposited into my account, and my shares disappeared.

The second option was what happened.

For a couple of hours of holding the stock, I received a $40 credit. After that, the shares disappeared, and my $3,300 returned to my account as cash. It left me with $3,340 to repeat the process.

Get This High Dividend Tobacco Company Cover Your Expenses

Intel Corporation ($INTC)

Like $MPLX, Intel Corporation had an ex-dividend date of May 5, but the difference is that $INTC has options available weekly.

So on May 3rd, I bought 100 shares for $45.40 for an investment of $4,540. I sold the call expiring on May 6 at $46 for a $38 credit.

Since the price of $INTC was below $46 on May 6, the option’s value lost the vast majority of its value, falling to $3. Therefore, I decided to roll over that position before the end of the day, buying the position for $3 and selling/opening a new position for $54 credit expiring May 13.

The price of $INTC is down, with the rest of the market hovering around $43.64 at yesterday’s close. Therefore, I did another ‘rollover,’ closing the position for $2 and selling/opening another position expiring on May 20th for a credit of $27.

I currently have a loss in the value of $INTC shares of ($176). However, I have received $114 in credits in two weeks. Here is the breakdown:

Credit: $38

Debit: $3

Credit: $54

Debit: $2

Credit: $27

Adding the credits ($119) and subtracting the debits ($5) gives us $114. Add to this the dividend of $36.50 ($0.365 dividend * 100 shares) that I will receive on June 1 since I held the shares as of May 5, and we have a total of $150.50 ($114 + $36.50).

I will keep doing this process until, in the future, the price of $INTC recovers to $46 or higher. Then, my shares get assigned to someone else, giving me my money back in the form of cash and allowing me to start the process with a new position either at $INTC or another company.

Which Oil Stock Is A Better Buy? Exxon Mobil (XOM) or Enbridge (ENB)

Note: We have several things to keep in mind.

1. If we want to keep our shares, depending on the price recovers, we can sell ‘covered calls’ at higher prices like $48, $50, etc. Not only does this continue to leave us weekly or monthly income through credits, but we also ensure more significant capital gains.

2. If the stock price continues to decline with the market, two things can happen:

          a. Credits decrease if we continue to sell covered calls at the same price we started.

          b. We are forced to sell covered calls at lower prices than initially started. It decreases the capital gain when shares get assigned to someone else. However, the credits must be higher since we are approaching the current share price.

I hope this can help you understand and learn other ways to make money in the market. If you want to read from other sources, click on this Investopedia link.

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, and FACEBOOK for more posts and updates. You can also reach me here with any questions.

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 SOLVING YOUR MONEY PROBLEMS TODAY

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

“The distance between your dreams and reality is called action” IG @Corporatebytes

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.

I’m going to start this article by asking several questions.

1. Do you think that, earning more money will solve your money problems?

2. Do you think higher education will solve your money problems?

3. Do high paying jobs solve money problems?

But the real question is, What does solve money problems?

Making more money does not solve your money problems. This is due to individuals tend to find new things to buy with the new money they just received. Many times, this is bought on credit which adds monthly payments to your debts.

Higher education does not solve your money problems either. We have a lot of bright individuals with Masters and Ph.D.’s that earn a lot of money but are deeply in debt.

A higher paying job does not solve your money problems. I see it all the time.

Tell me, how many pay increases have you received in your working life? How many bonuses have you received?

Are you out of bad debt yet? Ask yourself, why?

Truth is, we already know where or on what we want to spend that money before we even receive it. The reason why too many individuals cannot get ahead of the game is that they lack the real answer to the big question, Financial Education / Financial IQ.

One thing is having higher education, high paying jobs or making a lot of money; and a whole different thing to know what to do with that money to become financially free.

In order to increase your Financial IQ, Robert T. Kiyosaki wrote a book to help us all. The book “Increase your Financial IQ – Get smarter with your money” goes in-depth to explain what real Financial education is and how you can use it to get ahead of the game.

Don’t buy luxuries until you’ve built the assets to afford them. He doesn’t agree with the mentality of living below your means. He prefers to build and acquire assets that pay for the lifestyle you want. Don’t pay for luxuries out of pocket. Pay for assets out of pocket and they will buy the luxuries that you want.

Assets come in many forms. They are things that will bring money into your pockets, whether you were working for it or not.

The most common assets are paper assets. Those come in the form of investing in stocks in the stock market. Mutual funds and bonds are also in this category.

Another type of asset is Real Estate. Whether you are flipping houses or owning rental properties (house for rent or apartment for rent).

Owning your own business. Or learning how to make money online by setting up a website, blog, etc.

And finally, the less common known assets of commodities. Include owning oil, gold, silver.

What do you do?

If you want to learn how to make money, I highly encourage you to decide which one of the previous types of assets you are more interested in. Buy a few books on the topic or take some classes. Learn the inside and out of how they work. Set yourself for success.

Instead of watching TV, learn new skills and begin managing your finances.

Useful new skills for this century are podcasting, affiliate marketing, app development, furniture making, graphic design, just to name a few.

Manage your finances by learning about taxes (“Tax-Free Wealth“) or be willing to pay up for a very well educated accountant.

Start your own business. It could be inside a building or an online business. You want a proven system, then check out Timothy Ferriss’s book (“The 4-hour workweek“). A great example of his business with tips and tricks for getting what you need for less.

Learn to invest (“The Intelligent Investor“) or know that you will be paying fees and expenses to people that are as intelligent as you or not even as much.

Review and organize your finances using money calculators, build your own or be willing to pay someone to build one for you. By the way, that someone will be me in the near future. Don’t worry, it won’t be expensive.

Don’t be afraid of using coupons to buy items at lower prices. It is a great way to save money that you can put to better use by investing it and growing your account.

Don’t throw your hard-earned money in the grave or online banking. What I mean by that is, don’t leave your money in a savings account or online bank account that pays anywhere from 0.5%-2.50%. Remember that inflation increases on average 3.5% per year. You need to make investments that pay at least 3.5% just to keep up with inflation and not lose your buying power.

There are plenty of assets that can pay you 3.5% and more. Investing is not risky. Risky is depending on one source of income (aka your job), and losing it (getting fired) and no second or third sources of income to help you mitigate the hit. Now, THAT! is risky.

Begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. 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.

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

HOW TO MAKE DAVID OR ZIRA READ PDF BOOKS TO YOU FOR FREE!

by Road-to-wealth, posted in Uncategorized

“No one wants to help you get there, but they’ll all show up when it’s time to celebrate” IG @life_playground

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.

Reading

For some reason, for many, reading is not interesting. Almost as if it were their kryptonite. However, reading is where knowledge is hidden.

That’s why they force you to read at school. For you to learn.

On second thought, I think that is why many do not like to read. They made them read so many books that were not interesting, that they lost the magic and interest in reading.

If you are like me, you read the same paragraph several times. Again and again, because I get lost, get distracted by flies, or I just don’t understand something.

On average, it takes me a month to read a book of 250-350 pages. Some 10-15 pages per day before bedtime. Nor do I try hard to finish faster or read more pages per day. How great would it be for someone to read me the book?

The solution

Today, you can have your book of interest read to you, whenever you want, wherever you want and for free. That is great! How far society and technology have come! Is incredible.

It sounds even hostile, but it isn’t in the least. David and Zira are willing to read your book whenever and wherever you want. And for free. Because they are robots.

They are a reading system that many people do not know exists in pdf books and documents.

How it works

It does not work with pdf documents created by an image.

It works perfectly with pdf documents created by a text source (Microsoft Word or other word processing programs).

How to customize it

First, you must open the pdf book, and you will program it to your liking.

Click on Edit at the top, in the submenu, scroll down to preference.

In the box that opens (categories), click on reading.

You will see that as in the photo, you have the option to customize your reader.

Reading order: Left to right, top to bottom

Volume: adjust as required

Voice: Your two options are:

          Microsoft David Desktop (Male)

          Microsoft Zira Desktop (Female)

Pitch: adjust as needed between 1-10

Words per minute: this is how fast you want the document read. I am using 175.

Too fast can be difficult to hear and/or understand. Too slow may sound unnatural and saddle you to death. Find that sweet spot where you can have the best of both worlds; you are able to listen/understand and it keeps you awake, attentive and engaged.

Click Ok.

How to activate it

Now we move on to the part everyone wants to learn. For the less tech-savvy, we will do the step by step doing all the clicks. In the next part, I will give you the codes for those who like to use shortcuts.

Find the place where you want the reading to begin.

Click on the first word.

Now, at the top, click on View, then all the way to the bottom of the submenu, hover your mouse over Read Out Loud and click on Activate Read Out Loud.

* This is not going to start the reading, you are just activating the pdf.

Click on View again, hover the mouse over Read Out Loud, and you have two options here: 1. read this page only, 2. read to end of document.

Usually, most will choose to read until the end of the document.

Note that in the same process, View – Read Out Loud – you also have the options to pause and/or resume the reading or stop reading completely.

Shortcuts

SHIFT + CONTROL + Y = ACTIVATE READ OUT LOUD

SHIFT + CONTROL + V = READ THIS PAGE ONLY

SHIFT + CONTROL + B = READ TO END OF DOCUMENT

SHIFT + CONTROL + C = PAUSE OR RESUME

SHIFT + CONTROL + E = STOP

Test drive

Some of my favorite books are:

The Millionaire Next Door (Personal growth / Finance)

The Intelligent Investor (Stocks, money, investing)

Tax-Free Wealth (Tax loopholes)

The ABCs of Real Estate Investing (Real Estate)

Before You Quit Your Job (Entrepreneurship, Financial IQ)

Retire Young Retire Rich (Money, Finances, Investing)

Conclusion

For many, this information will be of great help. Unfortunately, too many people today have no knowledge about this breakthrough, which can be exploited in our favor. I started a book 3 days ago using this method and I’m already on page 148. Pausing to summarize and everything. I will finish it in 6 days. Now, that is a breakthrough for me.

I hope it helps. Enjoy!

Begin your Road to Wealth! By reading more books in half the time.

Leave your comment below. If you liked it, pay it forward. 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.

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

LOW-COST FRANCHISES TO FUND YOUR RETIREMENT

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

“Quit feeling sorry for yourself, make shit happen” – Unknown.

DISCLAIMER: Links in this post may contain affiliate links. Please read our disclosure policy here.

Many Americans love the idea and fantasize about one day becoming their own boss. Too many of them are realizing that they don’t have enough money saved for retirement.

On that same token, they are scared of failing by starting their own business. Losing their savings and digging a deeper hole for themselves.

One way to avoid that is by buying a proven concept, rather than starting a business from scratch.

That means, buy a franchise.

The thing is, many of the well-known franchises today, come with a hefty price tag. But I will give you a few low-cost franchises that can help you achieve your goals of financial freedom.

Note: In order to get more details on these franchises, read this article on CNBC.

Since we are talking about low cost, we will begin with our highest “low cost” on this list and work our way down.

1. United Country Real Estate

          With 443 franchises in the U.S., this franchise has a start-up cost of $15,000. Royalty fees range from $1,200 – $2,400 per month.

2. Rhea Lana’s

          With only 89 franchises in the U.S., this franchise also has a start-up cost of $15,000. Royalty fees range from 1% – 3% of gross sales.

3. Image One

          It has 103 franchises in the U.S and has a start-up cost of $15,000. Royalty fees are 10% of annual gross revenue.

4. Help-U-Sell Real Estate

          It has 102 franchises in the U.S. and has a start-up cost of $15,000. Royalty fees are 6% of gross commissions.

5. Motto Mortgage

          It has only 70 franchises in the U.S., with a start-up cost of $12,000. Royalty fees are $0 for the first 6 months, increasing to $4,500 per month after one year in business. With Real Estate heating up the way it is, the low amount of franchises and the low start-up cost makes sense for a great investment.

6. Cruise Planners

          Has 2,569 franchises in the U.S., and a start-up cost of $10,995. Royalty fees range from 1% – 3% of gross commissionable fares. Competition is a bit steep here with over 2K franchises open.

7. TSS Photography

          Has 176 franchises open in the U.S., and a start-up cost of $10,500. Royalty fees will depend on print production costs which varies by state.

8. Showhomes Home Staging

          Only 55 franchises in the U.S., and a start-up cost of $10,000. Royalty fees are 10% of annual gross revenue. Again, Real Estate is hot lately and this investment has a lot of upsides. Not too many franchises to compete, low start-up cost and a very generous royalty program.

9. Complete Weddings + Events

          Has 192 franchises in the U.S., and a start-up cost of $10,000. Royalty fees are 8% of annual gross revenue.

10. Dream Vacations

          It has over 1,200 franchises in the U.S. and the lowest start-up cost at $9,800. Royalty fees range from 1.5% – 3% of annual commissionable sales.

As you see, some of these franchises are well known with over 1K franchises up and running in the U.S. Others, are rather new which will give you an edge to really reach your financial freedom once people get to know you and trust you with minimal competition.

I prefer to receive my income from the (I) Investor quadrant but nothing wrong with being your own boss and be part of the (B) Business quadrant. Both quadrants come with great benefits from a tax perspective.

If you want to learn more about the Cash Flow Quadrants, tax benefits and much more, get your hands on this great book “Rich Dad Cashflow Quadrant” by Robert T. Kiyosaki.

For more on the (I) Investors quadrant, you can learn about:

Real Estate:         

                    Rich Dad Poor Dad: What the Rich teach their kids about money

                    Retire Young, Retire Rich

                    The ABCs of Real Estate Investing

Stock Investing:  

                    The Intelligent Investor

                    How to make money in Stocks

Tax loopholes:

                    Tax-Free Wealth: How to build massive wealth by permanently lowering your taxes

These books have empowered me with the knowledge to set myself and my family for success in the future. The small investment I paid for this type of knowledge, has paid dividends a lot sooner than I expect. The difference is knowledge by itself, is not power. Knowledge with action is power.

Set yourself for success!

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 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

HOW TO BUILD AN EASY, S.M.A.R.T. BUDGET

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

“Don’t underestimate the power of consistency and desire” – Unknown.

DISCLAIMER: Links in this post may contain affiliate links. Honesty above all. Please read our disclosure policy here.
Photo by Pixabay on Pexels.com

My friends! We have a simple goal here, and the goal is to become rich, not just look rich. So, how do we get there? Well, you have to put your money to work for you. In order to do that, you need to ensure that every single cent that you receive as income has a job to do.

But Joey, what does that mean? It means that you have to prepare a plan, follow that plan and tweak it as necessary. If you still don’t understand or don’t know how to budget, don’t be ashamed. You are not alone!

What I learned from wealthy friends is, they know how much they will make, they know how much has to go towards paying the bills. They also know how much they want to save and invest. Finally, they know how much they will have for fun. Yes, when you prepare your budget, ensure to account for some fun and entertainment too.

Let’s begin with the basics. Before we draw our map, we need to understand what we are doing. We will definitely not learn this on Instagram or Twitter. You have several options. If you know Excel, you can do this a lot quicker than most since the formulas will help you automate the results. If you are not tech-savvy, then you can write it on paper and will probably need a calculator to plug in the numbers and results.

What is a S.M.A.R.T. budget? It is an easy acronym that helps you remember what is important when you are planning and preparing your budget.

Specific – you need to be specific with your financial goal and know what do you want to do with your money. That includes the short term (buying something now) and long term (plans for retirement).

Measurable – as you go, you want to see your progress. That is how you will know if you need to step it up or just keep going with the flow. It will also help you see if you overspent or underspent and where.

Achievable – In order for your budget to be successful, it needs to be achievable. If necessary, you can examine your budget at the end of the month to compare your projected numbers against your actual numbers. Make adjustments as you go and if necessary.

Realistic – you need to be honest. For example, you plan to spend $20 eating out at your favorite restaurants but you know you like to order Dominos, take friends or family to Burger King and pay for them, and end up at the Chinese buffet to end the week. Know your tendencies and patterns.

Time-oriented – In order to achieve your financial goals and meet your timeline, you need to break down the big goals into small steps that will gradually take you to where you want to be.

Now that you have a better understanding of what a SMART budget is, know that making your budget is just the first step. You need to keep planning. Discipline and perseverance will help you sustain it and improve it.

Few tricks to making a budget that works are:

* Ensure every penny of your income has a job to do. If you don’t account for every cent you make and don’t give it a job before you even receive it, that penny will find a place to land and most likely will not be where you want.

* Do not charge your credit cards more than you can afford. A big problem is that many of us use our credit cards when we already used up all of our cash. But we are wrong. The right way to use a credit card is having the funds available in your account. That way it won’t hurt you when it’s time to pay off your card. A rule you can use is the rule of 7. When you are tempted to buy something, wait 7 days. Then ask yourself again if you still want it. More than likely you won’t.

* Review your budget several times for adjustments. You want to have this budget ready before you get paid. Do not wait until you start paying your bills, or your money will have control over you instead of the other way around. It is essential that you sit down, review your budget and make adjustments. Stay on top of your game. The great MLB hitters are the ones that prepare for the pitcher they will face. They don’t wait until the pitcher is on the mount to ask for a scouting report.

* Know how much money you have at all times. Staying with the MLB analogy, life is great at throwing us curve balls. We need to know what we have in order to prepare for the unexpected things that happen every month.

* Always track your spending. Your rent, car loan, and some other bills rarely change. We know we won’t overspend there. But dining out, buying groceries, buying on vending machines at school or work can throw us off. By the way, get cashback and great offers in groceries with Ibotta. Just register for free and see how much you will save each month.

Without further ado, let’s see how a budget should look like. At the beginning of the month, we use projected numbers but at the end of the month we use actual numbers to know what adjustments are needed.

Let’s begin with:

Projected income:

All of your income, paycheck, wages or whatever and add any extra income you make, like answering surveys online, washing cars, paint houses, cut grass, etc.

Projected Housing expenses:

Mortgage / Rent, Phone, Electricity, Gas, Water and sewer, cable/internet, waste removal, maintenance or repairs, supplies, other

Projected Loans:

Personal loans, student loans, credit cards, etc.

Projected transportation expenses:

Vehicle payment, insurance, gas, maintenance, other.

Projected savings:

Savings will vary by individual needs. You can use a percentage of your income. If you choose that option, then do this step first before anything. Another option is to use a specific amount. Option three is taking an amount from what is left after paying all bills.

Projected entertainment:

Movies, concerts, sporting events, other.

Projected balance:

This is what you projected as your income and subtract all the expenses and savings. Ensure this number is positive. This is the amount that you will have left for your personal use or whatever you decide to spend it on.

Tools used to aid with budgeting:

Acorns – automated savings, investing and cashback rewards, rolled into one. Just $1 monthly fee. (full report)

Credit Sesame – raise your credit score and follow their tips. You will be able to get lower rates in future loans, hence pay less and save money. (full report)

Fundrise – easiest way to save and grow your money while becoming a landlord without the hassle. The best part is you can start with only $500. (full report)

Gabi – is a service that will help you find the lowest price you can find for your car insurance. I saved $936 when I switched. And it took me no more than 10 minutes. (full report)

Ibotta – Save on groceries, get offers and rewards every week. Bonuses and cashback. (full report)

Inboxdollars – watch videos, answer surveys, search the web, get paid, transfer to your paypal account. I use it for extra income (full report)

Lucktastic – extra income, scratch digital lottery tickets, join different contests to win free groceries, free gas, or cash. (full report)

Swagbucks – extra income, get paid to watch videos, search the web, answer surveys and much, much more. (full report)

LendingClub – is my number one (#1) choice to save, and grow your money substantially. But, it is restricted to the United States and some states can’t invest either. Cross your fingers your state is in and not out. Also, you will need some money saved to begin. In order to get all the bonuses, you need to begin with $5,000. If you don’t want the bonuses, it is recommended you begin with half of that. (full report)

Paribus – will verify your emails, keep track of the price you paid for items and get your money back when the item’s price drops. Also, can get you compensated when your shipment is late. Everything while you sleep or go about your day. (full report)

Robinhood – my number one platform for trading. Commission-free and simple. Plus get a free stock like Amazon or Coca Cola when you sign up. (full report)

S’more – easy extra income, download to your phone, get paid every morning when you unlock your phone. Get extra points when you watch videos or complete surveys. Redeem prices. (full report)

Sweatcoin – more extra income, download to your phone, get paid to walk outside your house or building. The idea is to give incentives to individuals while helping them to get or stay in shape. (full report)

Truebill – save on monthly bills and stop overpaying for them too. This app will search for refunds and it will also negotiate on your behalf to get better deals. (full report)

Wish.com – Is my favorite site to buy items coming from China, cutting the middle man out of the picture. Cheaper than eBay, Amazon, Walmart, you name it. Use code: PJXXZYH (full report)

I will leave you with a picture so you know what it needs to look like. At the beginning of the month is going to be projected, but ensure that you keep track of your numbers throughout the month and do it again at the end of the month with your actual numbers. That is how you know, what type of adjustments you have to make. Also, modify it as necessary. Everyone’s circumstances are different.

I 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 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

FREE STOCK PLUS A BUSINESS IDEA!

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

“A key to success is playing the hand you were dealt like it was the hand you wanted” IG @millionaire_motivator

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.

Everyone likes FREE stuff. Imagine getting a FREE stock on companies like Apple or Coca-Cola.

Well, today everything is possible. And I have a way to do just that.

But first, do you know how to create a WEALTH mindset?

W – Write down what you want

E – Envision your goals

A – Affirm your dreams

L – Listen to your gut

T – Take action

H – Help others do the same

Ever dreamed of becoming a trader and making money on the markets, this is your lucky day. This company is marketed as a commission-free stock trading product. Yes, you heard that right. You can buy and sell stocks commission-free. And they will give you, completely free, a stock when you open an account with them.

Why?

Because in English folklore, there was an outlaw that took from the rich and gave to the poor. And that is exactly what Robinhood is doing!

They are disrupting the brokerage industry by offering commission-free trading and a free stock when you open an account. Finally! Someone on the average Joe side. Now, every penny is a profit and you have no one picking through your pockets.

How do I know this?

Because I put my money where my mouth is! Just like you, I have a goal. The goal is to build and create wealth that will last for generations.

Robinhood Markets Inc. is a U.S. based financial services company in Menlo Park, California. The company also offers a smartphone mobile app, which allows you to invest from anywhere in the world as long as you have internet available.

Bonus: Business idea

Disclaimer: This is not my idea. I saw the idea on Pinterest and I’m sharing it with the hope of helping others that might have this talent and would like to make some extra money.

Are you any good at coding?

If you are, you can look for schools that have limited options for programming. Teach kids basic coding after school hours, using a website such as tynker.com.

How much can you make?

Well, if you do 2 classes per day, a 1 hour class with 10 students per class and charge $10 per student, we are looking at $200 per day. With 261 working days on average per year, that would be an extra $52,200 a year.

Begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. 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.

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