The Importance of Credit Scores: Tips on How to Raise Them

Written by Martin Hamilton in Credit Scores Last Updated October 26, 2023

The importance of good credit is paramount.

If you’re looking to buy a car or a house, rent an apartment, or even apply for a job, your credit score is going to be a major factor in determining your eligibility.

Your credit score is a three-digit number that reflects your creditworthiness, and it’s used by lenders, landlords, and employers to evaluate your financial responsibility.

Having a good credit score can open up a world of opportunities, while a poor credit score can limit your options and cost you money in the long run.

Understanding credit scores and what factors affect them is crucial if you want to improve your credit score. Your credit score is calculated based on several factors, including your payment history, credit utilization, length of credit history, types of credit, and new credit inquiries. By understanding how these factors impact your credit score, you can take steps to improve it and maintain a high score over time. In this article, we’ll explore the importance of credit scores and provide strategies for raising your credit score.

Key Takeaways

Your credit score is a three-digit number that reflects your creditworthiness and is used by lenders, landlords, and employers to evaluate your financial responsibility.
Understanding what factors affect your credit score is crucial if you want to improve it.
By taking steps to improve your credit score, you can open up more opportunities and save money in the long run.

Understanding Credit Scores

Your credit score is a three-digit number that represents your creditworthiness. It is a crucial factor that lenders, landlords, and other financial institutions use to determine whether you are eligible for credit, loans, or other financial services.

Credit scores range from 300 to 850, and the higher your score, the better. A score of 700 or above is considered good, while a score of 800 or above is excellent. A low credit score can make it challenging to obtain credit, and if you do, you may be charged higher interest rates.

Several factors determine your credit score, including your payment history, credit utilization, length of credit history, credit mix, and new credit accounts. Your payment history is the most critical factor, and it accounts for 35% of your credit score. Late payments, collections, and bankruptcies can negatively impact your credit score.

Your credit utilization ratio is the amount of credit you are using compared to your credit limit. It accounts for 30% of your credit score. A high credit utilization ratio can negatively impact your credit score, so it is essential to keep your balances low.

The length of your credit history accounts for 15% of your credit score. The longer your credit history, the better, so it is essential to keep credit accounts open and active.

Your credit mix accounts for 10% of your credit score. Having a mix of credit types, such as credit cards, auto loans, and mortgages, can positively impact your credit score.

Finally, new credit accounts account for 10% of your credit score. Opening too many new credit accounts in a short amount of time can negatively impact your credit score.

In summary, understanding your credit score and the factors that determine it is essential to maintain good credit. By paying your bills on time, keeping your balances low, and maintaining a mix of credit types, you can improve your credit score and increase your chances of obtaining credit and other financial services.

Why Credit Scores are Important

Your credit score is a three-digit number that represents your creditworthiness. It is a crucial factor that lenders, banks, and credit card companies use to determine whether you are eligible to receive credit and at what interest rate. A good credit score can help you obtain lower interest rates, better loan terms, and higher credit limits.

Your credit score can also impact your ability to rent an apartment, get a job, or even secure insurance. Some employers and landlords check credit scores as part of their application process, and a low score can negatively affect your chances of being approved.

Having a good credit score is essential for financial stability and can help you save money in the long run. By maintaining a high score, you can qualify for better rates and terms, which can save you thousands of dollars over time.

It’s important to monitor your credit score regularly and take steps to improve it if necessary. By paying your bills on time, keeping your credit utilization low, and avoiding unnecessary credit inquiries, you can raise your score and improve your financial health.

Factors Affecting Your Credit Score

Your credit score is a numerical representation of your creditworthiness. It is used by lenders to determine your ability to pay back loans and other forms of credit. Your credit score is affected by several factors, including:

Payment History

Your payment history is the most important factor in determining your credit score. It accounts for 35% of your score. Lenders want to see that you have a history of paying your bills on time. Late payments, missed payments, and defaults can all have a negative impact on your credit score.

Credit Utilization

Credit utilization is the amount of credit you use compared to the amount of credit you have available. It accounts for 30% of your credit score. Lenders want to see that you are using your credit responsibly and not maxing out your credit cards. Keeping your credit utilization below 30% is ideal.

Length of Credit History

The length of your credit history is another important factor in determining your credit score. It accounts for 15% of your score. Lenders want to see that you have a long history of using credit responsibly. If you are new to credit, it can take time to build up a good credit score.

Credit Mix

Having a mix of different types of credit can also have a positive impact on your credit score. It accounts for 10% of your score. Lenders want to see that you can handle different types of credit, such as credit cards, car loans, and mortgages.

New Credit

Opening new credit accounts can temporarily lower your credit score. Lenders want to see that you are not taking on too much new credit at once. It accounts for 10% of your score.

Remember, a good credit score is important for obtaining loans, credit cards, and even some jobs. By understanding the factors that affect your credit score, you can take steps to improve it over time.

How to Check Your Credit Score

To check your credit score, you can request a free credit report from one of the three major credit bureaus: Equifax, Experian, or TransUnion. You are entitled to one free credit report from each bureau every year.

To request your credit report, visit AnnualCreditReport.com. This website is the only authorized source for free credit reports, as required by federal law. Be wary of other websites that claim to offer free credit reports, as they may charge hidden fees or sign you up for services you don’t need.

Once you have your credit report, review it carefully for any errors or inaccuracies. These can negatively impact your credit score and should be disputed with the credit bureau.

If you want to see your actual credit score, you may need to pay a fee to the credit bureau or use a credit monitoring service. Keep in mind that there are many factors that can affect your credit score, so it’s important to regularly monitor your credit report and take steps to improve your score over time.

Strategies to Improve Your Credit Score

Improving your credit score takes time and effort, but it’s worth it. Here are some strategies to help you raise your credit score:

Pay Bills on Time

Paying your bills on time is crucial to maintaining a good credit score. Late payments can hurt your credit score and stay on your credit report for up to seven years. To avoid late payments, set up automatic payments for your bills or create reminders to help you stay on track.

Lower Your Credit Utilization

Credit utilization is the percentage of your available credit that you’re using. High credit utilization can negatively impact your credit score. To lower your credit utilization, try paying down your balances or increasing your credit limit.

Avoid Unnecessary Credit Inquiries

Every time you apply for credit, it can result in a hard inquiry on your credit report. Too many inquiries can lower your credit score. Try to limit your credit applications and only apply for credit when you need it.

Diversify Your Credit Mix

Having a mix of different types of credit can help improve your credit score. This includes credit cards, loans, and other forms of credit. However, be careful not to take on too much debt or open too many accounts at once.

Remember, improving your credit score takes time and patience. By following these strategies, you can help raise your credit score and improve your financial health.

Maintaining a High Credit Score

To maintain a high credit score, you need to be diligent and responsible with your finances. Here are two important sub-sections to consider:

Regular Credit Monitoring

It’s important to monitor your credit report regularly to ensure that there are no errors or fraudulent activities. You can obtain a free credit report once a year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Review your report carefully and dispute any errors with the credit bureau.

You can also sign up for credit monitoring services, which will alert you to any changes in your credit report, such as a new account or a missed payment. This can help you catch any potential issues early and take action to address them.

Long-Term Financial Responsibility

Maintaining a high credit score requires long-term financial responsibility. This means paying your bills on time, keeping your credit utilization low, and avoiding unnecessary debt. Here are a few tips to help you stay on track:

Set up automatic payments for your bills to ensure that you never miss a payment.
Keep your credit card balances low and pay them off in full each month.
Avoid opening too many new credit accounts at once, as this can lower your average account age and hurt your credit score.
Only apply for credit when you need it and can afford it.

By following these tips and being responsible with your finances, you can maintain a high credit score and enjoy the benefits that come with it.

Frequently Asked Questions

Who manages credit scores?

Credit scores are managed by three major credit bureaus – Equifax, Experian, and TransUnion. These bureaus collect data on your credit history and use it to calculate your credit score.

How can I improve my credit score?

You can improve your credit score by paying your bills on time, keeping your credit utilization low, and avoiding opening too many new credit accounts at once. It’s also important to regularly check your credit report for errors and dispute any inaccuracies.

What is a good credit score?

A good credit score is typically considered to be around 700 or above. However, the specific range of what is considered a good score can vary depending on the lender and the type of credit you are applying for.

How is a credit score calculated?

Credit scores are calculated based on a variety of factors, including your payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. Each credit bureau may use slightly different methods to calculate your score.

What are the benefits of having a good credit score?

Having a good credit score can make it easier to get approved for loans and credit cards, and may also result in lower interest rates and better terms. It can also help you qualify for lower insurance premiums and rental applications.

How long does it take to improve a credit score?

Improving your credit score can take time, but it’s possible to see positive changes within a few months if you make consistent efforts to pay your bills on time and reduce your credit utilization. However, it may take longer to see significant improvements if you have a history of missed payments or other negative marks on your credit report.

Saving for a House: How to Use Your 401(k) for a Down Payment

Written by Martin Hamilton in Real Estate Last Updated October 25, 2023

Using a 401k as a down payment on a house

Are you looking to buy a house but struggling to save for a down payment? If you have a 401(k) plan, you may have more options than you think. While it’s generally not recommended to withdraw from your retirement savings early, there are ways to use your 401(k) to help fund a home purchase without incurring hefty penalties. In this article, we’ll explore the pros and cons of using a 401(k) for a house down payment and provide some strategies to help you maximize your savings.

Understanding 401(k) Plans Before we dive into the specifics of using a 401(k) for a house down payment, it’s important to understand how these retirement plans work. A 401(k) is a tax-advantaged retirement savings account that’s typically offered by employers. You contribute pre-tax dollars to the account, which grow tax-free until you withdraw them in retirement. Many employers also offer matching contributions, which can help you save even more for retirement.

Using 401(k) for a House Down Payment While it’s generally not recommended to withdraw money from your 401(k) before retirement, there are some exceptions. One of these is using the funds for a down payment on a house. However, there are some important things to consider before you decide to go this route. In the next section, we’ll explore the pros and cons of using a 401(k) for a house down payment and provide some strategies to help you make the most of your retirement savings.

Key Takeaways

Using a 401(k) for a house down payment can be a viable option, but it’s important to weigh the pros and cons carefully.
There are several strategies you can use to maximize your 401(k) savings and help fund a home purchase.
Before making any decisions, it’s important to consult with a financial advisor to ensure that you’re making the best choice for your individual situation.

Understanding 401(k) Plans

If you’re looking to buy a house, using your 401(k) plan to save for a down payment is one option to consider. But before you start, it’s important to understand what a 401(k) plan is and how it works.

What is a 401(k) Plan

A 401(k) plan is a retirement savings plan offered by many employers. It allows you to contribute a portion of your pre-tax income, which is then invested in a variety of funds. The money in your 401(k) grows tax-free until you withdraw it in retirement.

One of the benefits of a 401(k) plan is that many employers offer matching contributions. This means that your employer will contribute a certain amount of money to your 401(k) plan based on the amount you contribute.

Benefits of a 401(k) Plan

There are several benefits to using a 401(k) plan to save for a down payment on a house.

First, because the money in your 401(k) grows tax-free, you can potentially earn more money than you would if you saved in a regular savings account.

Second, if your employer offers matching contributions, you can potentially double your savings. For example, if your employer matches 50% of your contributions up to 6% of your salary, and you earn $50,000 a year, you could potentially save $9,000 a year in your 401(k) plan ($3,000 from your contributions and $6,000 from your employer’s matching contributions).

However, it’s important to keep in mind that withdrawing money from your 401(k) plan before retirement can have significant tax consequences and penalties. Additionally, if you withdraw money from your 401(k) plan, you will miss out on potential investment growth and compounding.

Overall, a 401(k) plan can be a useful tool for saving for a down payment on a house, but it’s important to weigh the benefits and drawbacks carefully before making any decisions.

Using 401(k) for a House Down Payment

If you’re planning to buy a house, you may be considering using your 401(k) savings to make a down payment. While this option can be tempting, it’s important to understand the rules and regulations, as well as the pros and cons of using your retirement savings for a down payment.

Rules and Regulations

Before you withdraw money from your 401(k) for a down payment, it’s important to understand the rules and regulations governing these withdrawals. Here are some key things to keep in mind:

You can withdraw up to $10,000 penalty-free for a first-time home purchase.
You’ll still have to pay income taxes on the withdrawal, which can be a significant amount depending on your tax bracket.
You may also have to pay a 10% early withdrawal penalty if you’re under the age of 59 1/2.

It’s also important to note that not all 401(k) plans allow for in-service withdrawals, which means you may have to leave your job in order to access your retirement savings.

Pros and Cons

Using your 401(k) for a down payment can have both advantages and disadvantages. Here are some pros and cons to consider:

Pros

You can avoid paying private mortgage insurance (PMI), which is typically required if you make a down payment of less than 20%.
You can take advantage of historically low interest rates and potentially save money on your mortgage payments.
You can start building equity in your home sooner, which can be a good long-term investment.

Cons

You’ll be reducing your retirement savings, which can have a significant impact on your future financial security.
You may have to pay income taxes and early withdrawal penalties on the money you withdraw, which can be a substantial cost.
You’ll be taking on additional debt, which can be a strain on your finances.

Overall, using your 401(k) for a down payment can be a viable option if you’re in a strong financial position and have a solid plan for repaying the money you withdraw. However, it’s important to carefully consider the potential drawbacks and consult with a financial advisor before making any decisions.

Strategies to Maximize 401(k) Savings

If you are planning to use your 401(k) to save for a down payment on a house, it is important to maximize your savings. Here are two strategies to help you do so:

Contribution Limits

The first step to maximizing your 401(k) savings is to make sure you are contributing the maximum amount allowed by law. As of 2023, the maximum contribution limit for a 401(k) is $19,500 per year. If you are over 50 years old, you can also take advantage of catch-up contributions, which allow you to contribute an additional $6,500 per year.

By contributing the maximum amount allowed, you can take advantage of the tax benefits of a 401(k) and grow your savings faster. Plus, if your employer offers matching contributions, you can ensure you are receiving the maximum match by contributing the maximum amount yourself.

Employer Matching

Another way to maximize your 401(k) savings is to take advantage of your employer’s matching contributions. Many employers offer a matching contribution up to a certain percentage of your salary. For example, if your employer offers a 3% match and you make $50,000 per year, they will contribute $1,500 to your 401(k) if you contribute $1,500 yourself.

To take full advantage of this benefit, make sure you are contributing enough to receive the maximum match. If you are not contributing enough to receive the full match, you are essentially leaving free money on the table.

By following these two strategies, you can maximize your 401(k) savings and be on your way to saving for a down payment on a house.

Frequently Asked Questions

What are the rules for using a 401(k) to buy a house?

To use a 401(k) to buy a house, you must be at least 59 1/2 years old, or qualify for a hardship withdrawal. You can also take out a 401(k) loan to purchase a primary residence, which must be paid back with interest.

What is a 401(k) primary residence loan and what can it be used for?

A 401(k) primary residence loan allows you to borrow from your 401(k) to purchase a primary residence. The loan must be repaid with interest, but the interest payments go back into your 401(k) account. The loan can be used for a down payment, closing costs, or other expenses related to purchasing a home.

Can a 401(k) loan be used for a down payment on a house?

Yes, a 401(k) loan can be used for a down payment on a house. However, it’s important to remember that the loan must be repaid with interest, and failure to repay the loan can result in penalties and taxes.

Are there any tax implications for using a 401(k) for a down payment on a house?

Using a 401(k) for a down payment on a house can have tax implications. If you take a distribution from your 401(k) before age 59 1/2, you may be subject to a 10% early withdrawal penalty in addition to regular income taxes. However, if you qualify for a hardship withdrawal or take out a 401(k) loan, there may be different tax implications.

What is the process for withdrawing from a 401(k) to purchase a home?

The process for withdrawing from a 401(k) to purchase a home varies depending on the plan. You may need to provide documentation to show that the withdrawal is for a qualified purpose, such as purchasing a primary residence. It’s important to check with your plan administrator for specific details and requirements.

Is it a good idea to use a 401(k) for a down payment on a house?

Using a 401(k) for a down payment on a house can be a good option for some people, but it’s important to consider the potential risks and drawbacks. Taking a loan or withdrawal from your 401(k) can impact your retirement savings, and failure to repay a loan can result in penalties and taxes. It’s important to weigh the pros and cons and consider other options, such as saving for a down payment separately.

How Money Works And Velocity Of Money

Written by Martin Hamilton in Investing Last Updated October 24, 2023

If you’re looking to understand how money really works and how to create mega wealth, you’ve come to the right place.

In this article, we’ll explore the concept of Other People’s Money (OPM) and how you can use it to your advantage, just like banks and credit unions do.

We’ll also discuss the four things you can do with money and how owning and loaning on the same assets can help you become your own banker.

As we dive deeper into the topic, we’ll cover the role of banks and credit unions, the power of tax deductions, and the concept of infinite rate of return.

We’ll also explain the velocity of money and why banks loan money to individuals, even when they could make more money by investing it elsewhere.

By the end of this article, you’ll have a better understanding of how to optimize your assets and minimize taxes, paving the way to creating mega wealth.

Key Takeaways

Understanding Other People’s Money (OPM) and how to use it to your advantage can help you create mega wealth.
By owning and loaning on the same assets, you can become your own banker and optimize your assets.
Understanding the velocity of money and the power of tax deductions can also help you on your road to wealth.

Understanding Money

To truly understand the road to wealth, you need to understand how money works. There are four basic things you can do with money: spend it, lend it, own with it, or give it away. Many people believe that owning as much as possible and owing nothing is the best way to handle their money. However, this is not necessarily the case.

One way to use your money to create wealth is by using other people’s money (OPM), just like banks and credit unions do. By owning and loaning on the same assets, you can become your own banker. This means that you can put your money into a financial vehicle, such as a max funded index universal life insurance policy, to keep it liquid and safe. If structured correctly and funded properly, this can provide an average net return of 10% after all fees and taxes.

When you put your money into a bank or credit union, it is in a lended position. The bank or credit union will turn around and loan that money back out again. By borrowing money at a lower rate and making a rate of return that is usually double or triple what you are paying on any debt, you can create mega wealth just like banks do.

Banks make money by borrowing money and then loaning it back out again at a higher rate. They make a spread, which is the difference between what they pay in interest and what they charge in interest. For example, if they pay 4.5% interest on a CD, they might turn around and loan that money back out at 7.5% interest to a business owner or someone with an equity line of credit. This creates a 3% spread, which is how banks make millions, billions, and trillions of dollars.

Banks Don’t Just Put Your Money Into a Vault

However, banks do not just put your money in a vault. They turn around and loan it back out again, just like you can do with your own money. By borrowing money at a lower rate and making a higher rate of return, you can create mega wealth. This is the concept behind OPM and why it is so important to understand how money works.

The velocity of money is another important concept to understand. Banks and credit unions loan you money because they understand the velocity of money.

They know that by loaning you money, they can make a profit and increase the velocity of money in the economy.

In summary, by understanding how money works and using other people’s money to create wealth, you can achieve financial success. This means putting your money into a financial vehicle to keep it liquid and safe, owning and loaning on the same assets, and borrowing money at a lower rate to make a higher rate of return. By understanding the velocity of money, you can also take advantage of opportunities to increase the velocity of money in the economy and create even more wealth.

The Concept of Other People’s Money (OPM)

As Doug Andrew, a financial strategist and retirement planning specialist for five decades, and someone I’ve gleaned valuable information from in my financial advocate career explains, using Other People’s Money (OPM) is a powerful tool to create wealth. Banks and credit unions have been using this concept for years to make millions and billions of dollars. By borrowing money at a lower rate and investing it in assets that generate higher returns, individuals can create Mega wealth.

To understand how OPM works, it’s essential to know the four things that individuals can do with money: spend it, lend it, own it, or give it away. While owning assets is a good thing, it’s not always the best strategy to create wealth. One way to create wealth is to own and loan on the same assets. This means that individuals become their own banker and use their assets to generate more wealth.

Doug Andrew suggests that individuals can keep their money liquid and safe by putting it into a Max funded index universal life insurance policy. By structuring and funding this policy correctly, individuals can average returns of 10% netting after all fees and tax-free. This strategy is explained in several videos on Doug Andrew’s channel.

When individuals put their money into a bank or credit union, it’s in a lended position. Banks and credit unions don’t just put the money in some Vault; they turn around and loan it back out again. Therefore, individuals can borrow money at a lower rate and make a rate of return that’s usually double or triple what they’re paying on any debt. This creates Mega wealth, just like Banks make wealth.

Banks make millions and billions of dollars by borrowing money and investing it in assets that generate higher returns. They pay interest to their customers and turn around and loan the money back out at a higher rate. This creates a spread, which is the difference between the interest they pay and the interest they earn. Banks make a spread of 100% to 200% more than the cost of the funds.

The velocity of money is the rate at which money changes hands in an economy. Banks and credit unions loan money to individuals to create new assets, which, in turn, generate more wealth. They understand the velocity of money and use it to their advantage. By loaning money to individuals, they create new assets that generate more wealth, which, in turn, creates more opportunities for lending.

Using OPM is a powerful tool to create wealth. By borrowing money at a lower rate and investing it in assets that generate higher returns, individuals can create Mega wealth. Banks and credit unions have been using this concept for years to make millions and billions of dollars.

How Money Works

To simplify how money works, there are four basic things you can do with it: spend it, lend it, own with it, or give it away. While owning as much as possible with your money may seem like the best option, there is another strategy that can help create mega wealth: using other people’s money (OPM) to your advantage.

Banks and credit unions use OPM to create wealth by borrowing money at a lower rate and then lending it out at a higher rate. By doing this, they create a spread and make a profit. As an individual, you can also use this strategy by owning and loaning on the same assets. This means putting your money into a financial vehicle, such as a max funded index universal life insurance policy, which can provide returns of up to 10% after fees and taxes.

When you put your money in a bank or credit union, it is in a lended position. The institution then turns around and loans that money back out again, making a profit on the spread. By borrowing money at a lower rate and investing it in assets that provide a higher rate of return, you can create mega wealth just like banks do.

The velocity of money refers to how quickly money changes hands in the economy. Banks loan money to individuals and businesses, who then use that money to invest in assets or spend it on goods and services. This creates a cycle of money changing hands and helps to stimulate economic growth. Banks understand the velocity of money and use it to their advantage by loaning money to those who can invest it and create a higher rate of return.

By understanding how money works and utilizing strategies like OPM and the velocity of money, you can create wealth and achieve financial freedom.

The Role of Banks and Credit Unions

Banks and Credit Unions play a significant role in the financial industry. They are financial institutions that accept deposits from individuals and businesses and lend money to those who need it. Banks and Credit Unions use other people’s money (OPM) to create wealth, just like how Doug Andrew, a financial strategist, does.

When you deposit your money in a bank or credit union, it is in a lended position, meaning they turn around and loan it back out again. Banks and Credit Unions make money by paying you interest on your deposits and then loaning that money back out at a higher interest rate. The difference between the interest they pay you and the interest they charge on loans is called a spread.

Banks and Credit Unions also borrow money at a lower rate and make a rate of return that is usually double or triple what they are paying on any debt. This creates wealth, just like how Banks make wealth. By borrowing money using a preferred interest expense and loaning money out, they create Mega wealth.

Banks and Credit Unions are able to make millions and billions of dollars by borrowing money and making a spread. They borrow money from individuals and businesses and then turn around and lend it back out at a higher interest rate. They make a 3% spread on every million dollars they borrow, which is a smart way to make money.

Here is an illustration of creating wealth by 3% spread.

Let’s say you are a bank that lends money to borrowers at an interest rate of 6%. If you borrow $1 million from the bank and lend it out to borrowers at an interest rate of 9%, you would earn a 3% spread on the borrowed money.

Assuming you lend out the entire $1 million and all borrowers repay their loans on time, you would earn $90,000 in interest income from the borrowers (9% of $1 million). You would then pay the bank $60,000 in interest expense (6% of $1 million) for the money you borrowed from them. This would leave you with a net interest income of $30,000, which is equivalent to a 3% spread on the $1 million you borrowed from the bank.

If you repeat this process multiple times with different borrowers, you could potentially earn a significant amount of money through the 3% spread on every million dollars borrowed. However, it’s important to note that there are risks involved with lending money, such as the possibility of default by borrowers, which could result in losses for the lender.

Banks and Credit Unions also understand the velocity of money. They loan you money to get a construction loan to build a new house because they understand the velocity of money. They know that they can make more money by loaning it out than by putting it in an insurance company.

In conclusion, Banks and Credit Unions play a crucial role in the financial industry. They use other people’s money to create wealth and make a spread by borrowing money and lending it back out at a higher interest rate. They also understand the velocity of money and use it to their advantage.

The Concept of Owning and Loaning

When it comes to money, there are four basic things that you can do with it: spend it, lend it, own with it, or give it away. While many people believe that owning as much as possible is the best strategy, financial strategist and retirement planning specialist Doug Andrew suggests a different approach: owning and loaning on the same assets to become your own banker.

Andrew recommends putting money into a Max funded index universal life insurance policy, which can yield an average net return of 10% after fees and taxes. By doing this, you are putting your money in a lended position, just like when you deposit money in a bank or credit union. However, rather than simply letting your money sit there, Andrew recommends borrowing money at a lower rate and making a rate of return that is usually double or triple what you are paying on any debt.

This strategy of owning and loaning on the same assets is similar to what banks and credit unions do with other people’s money (OPM) to create mega wealth. By using a preferred interest expense, you can create more wealth by having liabilities and loaning the money out, while also owning assets.

Banks make millions and billions of dollars by borrowing money and making a spread, which is the difference between the interest they pay on deposits and the interest they earn on loans. For example, a bank might pay you interest at 4.5% on a CD, but they turn around and loan your money back out at 7.5% to make a 3% spread. By paying $45,000 in interest on a million dollars and making $75,000, the net cost is only $30,000 after tax deductions in a 33% bracket. This creates a 2.5 times return on investment.

The velocity of money is another important concept to understand. Banks loan money to individuals for things like construction loans because they understand the velocity of money. They could put the money in an insurance company and make a safer return, but they loan it out instead because they know that the money will come back to them quickly and they can make a spread.

By understanding the concept of owning and loaning on the same assets and the velocity of money, you can use other people’s money to create mega wealth.

Creating Mega Wealth

To create Mega wealth, you need to understand how money really works and what the velocity of money is. There are four basic things you can do with money: spend it, lend it, own with it, or give it away. However, owning and loaning on the same assets is a concept that can help you create more wealth.

One way to do this is by using OPM (other people’s money) like Banks and Credit Unions do. By putting your money in a Max funded index universal life insurance policy and structuring it correctly, you can average returns of 10% netting after all fees and tax-free through diversification and rebalancing.

When you put your money in a bank or credit union, it’s in a lended position. Banks and credit unions don’t simply put your money in a vault; they turn around and loan it back out again. By borrowing money at a lower rate and making a rate of return that’s usually double or triple what you’re paying on any debt, you can create Mega wealth just like Banks do.

Banks make millions and billions of dollars by borrowing money and making a spread. For example, if you deposit a million dollars into a bank, they’ll pay you 10,000 and then turn around and loan it back out at 7.5%, making 75,000. By borrowing money at 42%, which is a net cost of 30,000 on every million, and making 7.5%, you can create Mega wealth just like Banks do.

The velocity of money is the rate at which money is exchanged from one transaction to another. Banks loan you money because they understand the velocity of money. They know that by loaning you money to build a new house, they can make a profit faster than by putting the money into an insurance company. By understanding the velocity of money, you can create Mega wealth and optimize your assets while minimizing taxes.

Understanding Interest Rates

To truly understand how money works, you need to understand interest rates. There are four things you can do with money: spend it, lend it, own it, or give it away. Many people believe that owning as much as possible without owing anything is the best way to go. However, owning and loaning on the same assets can create more wealth.

One way to keep your money liquid and safe is to put it in a Max funded index universal life insurance policy. If structured correctly and funded properly, this policy can average returns of 10% netting after all fees and tax-free. By diversifying and rebalancing, you can create even more wealth.

When you put your money in a bank or credit union, it’s in a lended position. Banks and credit unions make money by borrowing money at a lower rate and then loaning it out at a higher rate. They make a spread, which is the difference between the interest they pay and the interest they earn.

Banks and credit unions are not just benevolent institutions paying interest. They turn around and loan the money back out again. By borrowing money at a lower rate and making a rate of return that’s usually double or triple what you’re paying on any debt, you can create Mega wealth.

Banks make millions, billions, and trillions of dollars by borrowing money. If you deposit collectively a million dollars into a bank, you’re lending them a million bucks. Banks turn around and put 30 to 40% of that money in insurance companies, where they can earn a much higher rate of return.

The velocity of money is the rate at which money is exchanged in an economy. Banks loan you money because they understand the velocity of money. They know that by loaning you money, you’ll use it to build a new house or start a business. This will lead to more economic activity, which benefits everyone.

In summary, understanding interest rates is crucial to understanding how money works. By borrowing money at a lower rate and making a rate of return that’s usually double or triple what you’re paying on any debt, you can create Mega wealth. Banks and credit unions make money by borrowing money at a lower rate and then loaning it out at a higher rate. By understanding the velocity of money, you can use other people’s money to create wealth.

The Power of Tax Deductions

To create Mega wealth, you need to understand how to use other people’s money (OPM) like Banks and Credit Unions do. One of the ways to do this is by taking advantage of tax deductions.

When you borrow money from a bank or Credit Union, you’re in a lended position. The bank or Credit Union will turn around and loan that money back out again, making a profit on the spread between the interest rates. For example, a bank might pay you 4.5% interest on a CD, but then loan that money out to a business owner or someone with an equity line of credit at 7.5%, making a 3% spread.

But banks don’t just make money on the spread. They also take advantage of tax deductions. For example, if a bank pays $45,000 in interest on a million-dollar loan, that interest can be tax deductible in a 33% bracket, making it a net cost of only $30,000. This means that if the bank can borrow money at 4.2% and make a profit of 7.5%, they can create Mega wealth.

You can do the same thing by borrowing money at a lower rate and using it to invest in assets that earn a higher rate of return. By doing this, you can create Mega wealth just like Banks do.

To take advantage of tax deductions, you need to structure your investments correctly. One way to do this is by using a Max funded index universal life insurance policy. If this policy is funded properly and structured correctly, you can average returns of 10% netting after all fees and tax-free. This is because you can borrow money from the policy at a lower rate and invest it in assets that earn a higher rate of return.

In summary, to create Mega wealth, you need to understand how to use other people’s money and take advantage of tax deductions. By borrowing money at a lower rate and investing it in assets that earn a higher rate of return, you can create Mega wealth just like Banks do.

The Concept of Infinite Rate of Return

When it comes to creating wealth, one of the most important concepts to understand is the use of other people’s money (OPM). Banks and credit unions have been using this strategy for years to generate mega wealth, and you can do the same.

To start, let’s simplify how money works. There are four basic things you can do with money: spend it, lend it, own with it, or give it away. Many people believe that owning as much as possible without owing anything is the best strategy. However, owning and loaning on the same assets is a powerful way to become your own banker and create more wealth.

To keep your money liquid and safe, you can put it into a max-funded index universal life insurance policy. When structured correctly and funded properly, this can result in an average net return of 10%, tax-free. By diversifying and rebalancing, you can optimize your returns.

When you put your money in a bank or credit union, it’s in a lended position. These institutions don’t just hold onto your money; they turn around and loan it back out again. By borrowing money at a lower rate and making a higher rate of return, you can create mega wealth just like the banks.

Banks make money by borrowing money at a low rate and lending it out at a higher rate. They typically make a 100-200% return on their funds. However, when you use OPM, you cannot calculate the rate of return because it’s not your money. This is known as an infinite rate of return.

The velocity of money is another important concept to understand. Banks and credit unions loan money to individuals and businesses because they understand the velocity of money. By loaning out money, they can generate a higher rate of return than they would by simply putting the money into a safer institution like an insurance company.

In conclusion, using OPM and understanding the velocity of money are key strategies for creating wealth. By putting your money into a max-funded index universal life insurance policy and using borrowed funds to generate higher returns, you can create mega wealth just like the banks.

Understanding the Velocity of Money

To understand the velocity of money, you need to know how money works. There are four things you can do with money: spend it, lend it, own with it, or give it away. Many people think it’s best to own as much as you can with your money and not owe anything. However, owning and loaning on the same assets can help you become your own banker and create mega wealth.

When you have money that you want to keep liquid and safe, you can put it in a Max funded index universal life insurance policy. If structured correctly and funded properly, this can average returns netting after all fees and tax-free at 10% by diversification and rebalance. By putting your money in an institution, you are putting it in a lended position. Banks, credit unions, and insurance companies loan out the money they receive, so your money is in a lended position.

You can borrow money at a lower rate like banks do and make a rate of return that’s usually double or triple what you’re paying on any debt. This creates mega wealth, just like banks make wealth. You can own assets but create more wealth by having liabilities, loaning the money out, and borrowing money by using a preferred interest expense.

Banks make millions and billions and trillions of dollars by borrowing money. A bank or credit union’s greatest asset is their liabilities. If they stop paying interest, they would wither up and die. They pay interest on deposits, but they turn around and loan it back out again. They make a spread, which is the difference between the interest they pay and the interest they receive. Banks make a 100% to 200% spread, which is how they make money.

The velocity of money is how quickly money changes hands in an economy. Banks loan money to people to create new businesses, buy homes, and make investments. They understand the velocity of money and loan money to people, even though they can make it safer in a multi-trillion dollar institution like an insurance company. By loaning money, they can create more wealth and keep the economy moving.

How to Earn Money from Home: A Comprehensive Guide

Written by Martin Hamilton in Work From Home Last Updated October 23, 2023

What are the Best Ways to Earn from Home?

There are many ways to earn money from home using the internet.

Some of the best ways to earn from home include starting a blog, selling on Amazon, selling printables on Etsy, selling stickers from home, running Facebook ads for local businesses at home, selling Canva templates, becoming an online tutor, becoming a virtual assistant, writing an eBook, starting an online store, proofreading, bookkeeping, flipping items for profit, freelance writing, earning affiliate income at home, teaching English from home, writing romance novels at home, becoming a transcriptionist, voice over acting, and working in customer service.

Start a Blog to Make a Living from Home

Starting a blog is one of the real ways to make money from home. It is an affordable and easy way to earn money from home. Blogging allows individuals to take control of their finances and earn more money. It means they can work from home, travel whenever they want, have a flexible schedule, and more. To start a blog, one can easily learn how to create a blog with a free How To Start a Blog Course. The course teaches how to determine what to blog about, how to create a blog on WordPress, how to make money blogging, how to make passive income from blogging, how to grow traffic and followers, and miscellaneous blogging tips that will help one be successful.

Sell on Amazon to Make Money Online

Selling on Amazon is a great way to make money online. The world’s largest online retailer has many people who sell items and earn money from home. One can learn more about starting an Amazon business by signing up for free training that will teach how to sell products on Amazon and make $100 to $500 per day.

Sell Printables on Etsy

Selling printables on Etsy is a great idea because one just needs to create one digital file per product, which they can then sell an unlimited number of times. Printables are online products that customers can download and print at their own home. Examples include grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, and patterns. Printables are very popular because they can allow a customer to manage their household easier, be more creative, have what they need, and all they need to do is print it at their home. One can learn more about selling printables on Etsy by signing up for a free ebook.

Sell Stickers from Home

Selling stickers from home is a fun way to earn money from home. One can sell both printed and printable stickers online. Stickers are currently extremely popular and will most likely be for years to come. Stickers are used for so many different reasons, and one doesn’t need a ton of equipment to start a sticker business. One can learn more about making money selling stickers online by visiting How To Make $1,000+ A Month Selling Stickers Online.

Run Facebook Ads for Local Businesses at Home

By running Facebook ads for local businesses, one can help small businesses reach new customers. This is a skill that one can learn online as well. Facebook is one of the largest advertising spaces that exists, so this is an area that will just continue to grow and be popular. One can learn more about running Facebook ads for local businesses by visiting How To Work From Home Selling On Amazon FBA.

Sell Canva Templates from Home

Creating Canva templates can be a great way to make extra income because one just needs to create the templates once, and they can sell them an unlimited amount of times. One can learn more about selling Canva templates by visiting How I Make $2,000+ Monthly Selling Canva Templates.

Become an Online Tutor to Learn How to Earn Money from Home Without Any Investment

Course Hero is a website that helps high school and college students with course-specific questions. Using the website, students connect with Course Hero tutors on a wide range of subjects and classes, which makes this a great side hustle for people with different skill sets.

Become a Virtual Assistant to Earn Money Online

Becoming a virtual assistant is a great way to earn money online. Virtual assistants provide administrative support to clients from a home office. They can perform tasks such as email management, scheduling appointments, data entry, and more. One can learn more about becoming a virtual assistant by visiting How To Become A Virtual Assistant.

Write an eBook

Writing an eBook is a great way to earn money from home. One can write an eBook on a topic they are knowledgeable about and sell it on platforms such as Amazon. To learn more about writing an eBook, one can visit How to Write an eBook.

Start an Online Store

Starting an online store is a great way to earn money from home. One can start an online store on platforms such as Shopify and sell products they are passionate about. To learn more about starting

Frequently Asked Questions

What are some safe and reliable ways to earn money online?

There are many safe and reliable ways to earn money online, including:

Freelancing: Offering your skills and services on freelancing platforms like Upwork, Fiverr, and Freelancer.
Online Surveys: Participating in online surveys on websites like Swagbucks, Survey Junkie, and Vindale Research.
Selling Products: Selling products on e-commerce platforms like Amazon, eBay, and Etsy.
Affiliate Marketing: Promoting products on your website or social media and earning a commission for each sale made through your unique referral link.

How can I make money from home quickly?

If you want to make money from home quickly, consider:

Virtual Assistant: Offering administrative services to businesses and entrepreneurs on platforms like Zirtual and Fancy Hands.
Online Tutoring: Teaching students online through websites like Chegg, TutorMe, and VIPKid.
Delivery Services: Delivering food, groceries, or packages for companies like Uber Eats, Instacart, and Amazon Flex.
Online Focus Groups: Participating in online focus groups on websites like UserTesting and Respondent.

What are some legitimate online side hustles to make money?

Some legitimate online side hustles to make money include:

Online Writing: Writing articles, blog posts, and other content for websites on platforms like Textbroker and iWriter.
Social Media Management: Managing social media accounts for businesses and individuals on platforms like Hootsuite and Buffer.
Online Transcription: Transcribing audio and video files for companies like TranscribeMe and Rev.
Online Data Entry: Entering data for companies on platforms like Clickworker and Amazon Mechanical Turk.

What are some effective ways to make money online from home?

Some effective ways to make money online from home include:

Blogging: Starting your own blog and monetizing it through advertising, affiliate marketing, or sponsored content.
Online Coaching: Offering coaching services in your area of expertise on platforms like Coach.me and Skillshare.
Online Store: Starting your own online store on platforms like Shopify and WooCommerce.
Online Photography: Selling your photos on websites like Shutterstock and iStock.

How can I earn extra income while working full-time?

If you want to earn extra income while working full-time, consider:

Freelancing: Offering your skills and services on freelancing platforms during your free time.
Online Teaching: Teaching English or other subjects to students online through websites like VIPKid and Teachable.
Online Writing: Writing articles, blog posts, and other content during your free time on platforms like Textbroker and iWriter.
Online Consulting: Offering consulting services in your area of expertise on platforms like Clarity.fm and Maven.

What are some proven methods to make $100 or more per day from home?

Some proven methods to make $100 or more per day from home include:

Online Surveys: Participating in online surveys on websites like Swagbucks, Survey Junkie, and Vindale Research.
Freelancing: Offering your skills and services on freelancing platforms like Upwork, Fiverr, and Freelancer.
Selling Products: Selling products on e-commerce platforms like Amazon, eBay, and Etsy.
Affiliate Marketing: Promoting products on your website or social media and earning a commission for each sale made through your unique referral link.

How to Start a Business: A Clear and Confident Guide

Written by Martin Hamilton in Business Startup Last Updated October 24, 2023

Before You Begin: Get in the Right Mindset.

Starting a business can be daunting, and it’s essential to get in the right mindset before you begin. Here is a list of 11 sections with all you need to know to help you get started:

Consistency Is Key

Consistency is key when starting a business. It’s easy to get motivated initially, but it can be frustrating when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away. Consistency is what will keep you moving forward even when things get tough.

To create consistency, you can start by setting small goals for yourself. These goals should be achievable and should help you build momentum. Once you’ve achieved these goals, set new ones that are a bit more challenging. Over time, you’ll build up the confidence and consistency you need to succeed.

Take the Next Step

When starting a business, it’s important to take the next step, even if you’re not sure what that step is. Some business owners dive in headfirst without looking and make things up as they go along. Others stay stuck in analysis paralysis and never start. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first.

Some steps may take minutes, while others take a long time. The point is to always take the next step. By doing this, you’ll build momentum and start to see progress. Remember, the journey to success is rarely a straight line. It’s full of twists and turns, but by taking the next step, you’ll be one step closer to achieving your goals.

1. Determine Your Business Concept

What Kind of Business Should You Start?

Starting a business is an exciting journey, but it can be overwhelming to determine what kind of business to start. You need to consider several factors before making a decision. First, think about your funding, time, and interests. Do you have enough money to start a business, or do you need to seek funding? How much time do you have to invest in your business? Do you prefer to work from home or at an office or workshop? What interests and passions do you have? Can you sell information (such as a course), rather than a product? What skills or expertise do you have? How fast do you need to scale your business? What kind of support do you have to start your business? Are you partnering with someone else? Does the franchise model make more sense to you?

Answering these questions will help you narrow down your options and determine the kind of business that suits you best. Keep in mind that starting a business requires hard work, dedication, and patience. You need to be passionate about your business idea and willing to put in the effort to make it successful.

Consider Popular Business Ideas

If you’re still unsure about what kind of business to start, here are some popular business ideas to consider:

Franchise: Starting a franchise can be a great option if you’re looking for a proven business model with a recognized brand. However, it can be expensive to buy into a franchise, and you may have to follow strict guidelines set by the franchisor.
Blog: Starting a blog can be a low-cost option if you enjoy writing and have a passion for a particular topic. You can monetize your blog through advertising, affiliate marketing, or selling digital products.
Online Store: Starting an online store can be a good option if you have a product to sell and want to reach a global audience. You can use platforms like Shopify to set up your store and start selling products online.
Dropshipping Business: Starting a dropshipping business can be a low-risk option if you don’t want to hold inventory. You can use platforms like AliExpress to find products to sell and have them shipped directly to your customers.
Cleaning Business: Starting a cleaning business can be a good option if you enjoy cleaning and have an eye for detail. You can offer cleaning services to homes, offices, and other businesses.
Bookkeeping Business: Starting a bookkeeping business can be a good option if you have a background in accounting and enjoy working with numbers. You can offer bookkeeping services to small businesses and entrepreneurs.
Clothing Business: Starting a clothing business can be a good option if you have a passion for fashion and design. You can create your own clothing line or sell existing clothing brands.
Landscaping Business: Starting a landscaping business can be a good option if you enjoy working outdoors and have a green thumb. You can offer landscaping services to homes, businesses, and public spaces.
Consulting Business: Starting a consulting business can be a good option if you have expertise in a particular area and enjoy helping others. You can offer consulting services to businesses and individuals.
Photography Business: Starting a photography business can be a good option if you have a talent for taking photos and enjoy capturing special moments. You can offer photography services to individuals and businesses.
Vending Machine Business: Starting a vending machine business can be a good option if you’re looking for a passive income stream. You can place vending machines in high-traffic areas and earn money from sales.

Remember, these are just a few examples of popular business ideas. The key is to find a business idea that aligns with your interests, skills, and goals. With hard work and dedication, you can turn your business idea into a successful venture.

2. Research Your Competitors and Market

Primary Research

To gain a competitive advantage, you need to know what your potential customers want. Primary research involves obtaining data directly from potential customers through questionnaires, surveys, and interviews. This data will help you make informed decisions about your product or service.

It is important to avoid surveying friends and family as they may not be representative of your target market. Instead, consider using online survey tools or hiring a professional research firm to conduct the research for you.

Secondary Research

In addition to primary research, you can also gather information from existing sources. Secondary research involves analyzing data that has already been collected and compiled. This can include census data, market reports, and competitor websites.

Conducting a SWOT analysis can help you identify your strengths, weaknesses, opportunities, and threats. By analyzing this information, you can make informed decisions about the direction of your business.

During a SWOT analysis, ask pertinent questions to identify and address weaknesses before they affect your business. For example, you may discover that your product has a weakness that you hadn’t considered, or you may identify an opportunity to improve on a competitor’s product.

By conducting both primary and secondary research, you can gain a thorough understanding of your competitors and market. This knowledge will help you develop a competitive edge that creates sustainable revenue.

3. Create Your Business Plan

When creating a business plan, it is important to have a well-rounded document that includes various sections. These sections include an executive summary, company description, market analysis, organization and structure, mission and goals, products or services, background summary, marketing plan, and financial plan. A business plan serves as a roadmap for establishing a new business and helps potential investors, financial institutions, and company management understand and absorb the proposed new business. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems.

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. The most common exit strategies include selling the business to another party, passing the business down to family members, liquidating the business assets, and closing the doors and walking away. The best option for you depends on your goals and circumstances.

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses. Some common scalable business models include subscription-based businesses, businesses that sell digital products, franchise businesses, and network marketing businesses.

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax, and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax. It is important to research and understand the tax requirements for your specific business and to start planning for taxes early on to avoid any issues down the line.

In summary, when creating a business plan, it is important to consider various sections, including an exit strategy, a scalable business model, and tax planning. These sections will help you create a well-rounded document that serves as a roadmap for establishing a new business. By considering these factors, you can increase your chances of success and ensure that your business is set up for long-term growth.

4. Choose Your Business Structure

When starting a business, choosing the right business structure is essential. It can impact the amount of taxes you owe, daily operations, and whether your personal assets are at risk. Here are the most common business structures to consider:

LLC

An LLC, or Limited Liability Company, is a popular business structure that offers liability protection for the owners. LLCs can be owned by one or more people or companies and must include a registered agent. These owners are referred to as members.

Pros

LLCs offer liability protection for the owners, which means your personal assets are separate from your business assets.
They’re one of the easiest business entities to set up, and you can have a single-member LLC.
LLCs have the flexibility to choose how they are taxed.

Cons

You may be required to file additional paperwork with your state on a regular basis.
LLCs can’t issue stock.
You’ll need to pay annual filing fees to your state.

Limited Liability Partnership (LLP)

An LLP, or Limited Liability Partnership, is similar to an LLC but is typically used for licensed business professionals such as attorneys or accountants. These arrangements require a partnership agreement.

Pros

Partners have limited liability for the debts and actions of the LLP.
LLPs are easy to form and don’t require much paperwork.
There’s no limit to the number of partners in an LLP.

Cons

Partners are required to actively take part in the business.
LLPs can’t issue stock.
All partners are personally liable for any malpractice claims against the business.

Sole Proprietorship

A Sole Proprietorship is the simplest business structure and is ideal for solo business owners. The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

Pros

Sole proprietorships are easy to form and require no additional paperwork with your state.
You’re in complete control of the business.
The business is easy to dissolve.

Cons

You’re personally liable for all business debts.
It can be difficult to raise money for a sole proprietorship.
The business may have a limited lifespan.

Corporation

A Corporation is a more complex business structure that offers liability protection for the owners, just like an LLC. A corporation can be taxed as a C-corporation (C-corp) or an S-corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

Pros

Corporations offer liability protection for the owners.
The life span of a corporation is not limited.
A corporation can have an unlimited number of shareholders.

Cons

Corporations are subject to double taxation.
They’re more expensive and complicated to set up than other business structures.
The shareholders may have limited liability.

Helpful Resources

Starting a business can be overwhelming, but there are many helpful resources available to guide you through the process. Here are some resources to consider:

5. Register Your Business and Get Licenses

When starting a business, it is important to address legal issues such as choosing a business name, registering your business, obtaining an EIN, and getting appropriate licenses and permits. Here is a checklist of items to consider when establishing your business:

Choose Your Business Name

Choosing a business name is an important step in establishing your business. Make sure it is memorable but not too difficult. It is also important to choose the same domain name, if available, to establish your internet presence. However, keep in mind that a business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

If you are operating under a name that is different from the legal name of your business, you may need to file a fictitious business name known as “Doing Business As” or DBA. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA. You may need to file a DBA with your state, county, or city government offices. The benefits of a DBA include the ability to open a business bank account under your business name, use it as a “trade name” to brand your products or services, and get a business license.

Register Your Business and Obtain an EIN

You will officially create a corporation, LLC, or other business entity by filing forms with your state’s business agency, usually the Secretary of State. As part of this process, you will need to choose a registered agent to accept legal documents on behalf of your business and pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN), and business bank accounts.

Next, apply for an employer identification number (EIN). All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS, and you will typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements for licenses and permits are determined by your industry and jurisdiction. Most businesses need a mixture of local, state, and federal licenses to operate. Check with your local government office and even an attorney for licensing information tailored to your area.

Helpful Resources

Here are some helpful resources to assist you in registering your business and obtaining appropriate licenses and permits. Simply do a Google search on each topic.

Best LLC Services
How To Register a Business Name
How To Register a DBA
How To Get an EIN for an LLC
How To Get a Business License

By following this checklist, you can ensure that you have taken all the necessary steps to register your business and obtain the appropriate licenses and permits.

6. Get Your Finances in Order

Open a Business Bank Account

Separating your business and personal finances is crucial to keep track of your business transactions. To open a business bank account, you need to provide your business name and your business tax identification number (EIN). A separate business bank account can also help you obtain a business loan or line of credit. Check out the best business checking accounts to choose the right one for your business.

Hire a Bookkeeper or Get Accounting Software

Managing your finances is essential for the success of your business. You can hire a bookkeeper or get accounting software to help you with your finances. If you sell products, you need an inventory function in your accounting software to manage and track inventory. The software should include ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools and include features such as check writing, managing receivables and payables, tracking income and expenses, generating invoices, running reports, and calculating taxes. If you prefer to outsource your bookkeeping, there are many bookkeeping services available that can do all of this for you. Check out the best accounting software for small business to choose the right one for your business.

Determine Your Break-Even Point

Before you fund your business, you need to determine your startup costs. Make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate, and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

To determine the point at which your business makes money, you need to know your break-even point. This figure is calculated by dividing your fixed costs by your contribution margin. Your contribution margin is your total sales revenue minus the cost to make the product.

For example, if you’re starting a small business that sells miniature birdhouses for fairy gardens, and your startup costs are $500, your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each, you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

Helpful Resources

Here are some resources that can help you with your finances. Do a search in Google to find your best options.

The Best Business Checking Accounts
The Best Accounting Software for Small Business
How To Open a Bank Account

By following these steps, you can get your finances in order and set your business up for success.

7. Fund Your Business

When it comes to funding your business, there are two categories of funding: internal and external. Internal funding includes personal savings, credit cards, and funds from friends and family. However, financing the business with your own funds or with credit cards can be risky and may result in losing a chunk of your wealth if the business fails. Allowing family and friends to invest in your business can also result in strained relationships if the company goes under.

External funding options include small business loans, small business grants, angel investors, venture capital, and crowdfunding. Small businesses may need to use a combination of several sources of capital. It’s important to consider how much money is needed, how long it will take before the company can repay it, and how risk-tolerant you are.

There are various funding ideas available, such as invoice factoring, business lines of credit, equipment financing, SBA microloans, grants, and crowdfunding. Invoice factoring involves selling your unpaid invoices to a third party at a discount. A business line of credit, which is similar to a personal line of credit, can be applied for, with the credit limit and interest rate based on your business’s revenue, credit score, and financial history. If expensive equipment needs to be purchased for the business, it can be financed with a loan or lease. Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies, and machinery or equipment. The federal government offers grants for businesses that promote innovation, export growth, or are located in historically disadvantaged areas. Crowdfunding allows you to raise money from a large group of people by soliciting donations or selling equity in your company.

To choose the right funding source for your business, consider the amount of money needed, the time frame for repayment, and your tolerance for risk.

Helpful Resources

Here are some helpful topics to Google and get good results to consider when funding your business:

Best Small Business Loans
Best Startup Business Loans
Best Business Loans for Bad Credit
Business Loan Calculator
Average Business Loan Rates
How To Get a Business Loan

8. Apply for Business Insurance

When it comes to your business, having insurance is crucial. Regardless of whether you have employees or run a home-based business, you still need to have insurance coverage. The type of insurance you need will depend on your business model and the risks you face. You may need more than one type of policy, and as your business grows, you may require additional coverage. In most states, workers’ compensation insurance is legally required if you have employees.

Work With an Agent To Get Insured

Working with an insurance agent can help you determine what coverage is appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

Here are some of the most common types of business insurance coverage:

Liability insurance protects your business against third-party claims of bodily injury, property damage, and personal injury, such as defamation or false advertising.
Property insurance covers the physical assets of your business, including your office space, equipment, and inventory.
Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event, such as a natural disaster.
Product liability insurance protects against claims that your products caused bodily injury or property damage.
Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment, or other wrongful termination.
Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.

Helpful Resources

Here are some helpful resources to help you find the best insurance for your business. Search each topic in Google to get a list of your best options.

Best Small Business Insurance
Best Commercial Auto Insurance
How To Get Product Liability Insurance
Your Guide to General Liability Insurance
13 Types of Small Business Insurance

By working with an agent and understanding the basic types of business insurance coverage, you can protect your business from potential risks and ensure its success.

9. Get the Right Business Tools

As a business owner, you want to make sure that your business runs smoothly and efficiently. One way to achieve this is by using the right business tools. These tools can help you save time, automate tasks, and make better decisions. Here are some essential business tools that you should consider:

Accounting software: Keep track of your business income and expenses, prepare financial statements, and file taxes easily with accounting software. Popular options include QuickBooks and FreshBooks.
Customer relationship management (CRM) software: Manage your customer relationships, track sales and marketing data, and automate tasks like customer service and follow-ups with a CRM software. Examples include Zoho CRM and monday.com.
Project management software: Plan, execute, and track projects with project management software. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
Credit card processor: Accept credit card payments from customers with a credit card processor. Popular options include Stripe and PayPal.
Point of sale (POS) system: Process customer payments with a POS system. Some accounting software and CRM software have built-in POS features. Examples include Clover and Lightspeed.
Virtual private network (VPN): Ensure a secure, private connection between your computer and the internet with a VPN. This is especially important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
Merchant services: Use merchant services to deposit money from customer purchases into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
Email hosting: Create a professional email address with your own domain name with email hosting. Examples include G Suite and Microsoft Office 365.

By using these tools, you can streamline your business processes and focus on growing your business. Choose the tools that best fit your business needs and budget, and make sure to research each option thoroughly before making a decision.

10. Market Your Business

Marketing your business is crucial to its success. Here are some strategies to help you promote your business and reach your target audience.

Create a Website

Having a website is essential for any business, even if you have a physical store. A website can help you attract new customers and provide information about your products or services. You can easily create a website in just a few days using website builders such as Wix, Squarespace, or WordPress. Make sure to include important pages such as an “About Us” page, product or service pages, FAQs, and contact information. If you have a physical store, include a page with your locations and hours.

Optimize Your Site for SEO

Search engine optimization (SEO) is the process of improving your website’s visibility on search engines like Google. By optimizing your site for SEO, you can increase your chances of appearing at the top of search results when potential customers search for keywords related to your business. Some ways to improve your SEO include using relevant keywords, creating quality content, and building backlinks.

Create Relevant Content

Creating quality content is an effective way to attract and engage potential customers. Consider creating blog posts, videos, customer testimonials, and demos to showcase your products or services. Make sure your content is relevant to your target audience and provides value to them. You can also use content marketing to improve your SEO and attract more traffic to your website.

Get Listed in Online Directories

Online directories such as Yelp, Google My Business, and Facebook are popular among customers looking for local businesses. Make sure to list your business in as many relevant directories as possible. You can also create listings on specific directories that focus on your industry. This will help potential customers find your business more easily.

Develop a Social Media Strategy

Social media is a powerful tool for promoting your business and engaging with your audience. Consider creating social media accounts on platforms such as Facebook, Instagram, Twitter, and LinkedIn. Post content that’s interesting and relevant to your target audience, and use social media to drive traffic back to your website. You can also use social media to offer promotions, discounts, and special deals to attract new customers.

Helpful Resources

Here are some helpful resources to help you market your business. Simply Google each topic and filter the best results. You may want to search videos on YouTube for great tutorials.

Best Website Builders: These tools can help you create a professional-looking website quickly and easily.
How To Make a Website for Your Business: This guide provides step-by-step instructions for creating a website for your business.
The Best E-Commerce Platforms: These platforms can help you set up an online store and sell your products or services online.
Best Blogging Platforms: These platforms can help you create and publish blog posts to attract and engage your audience.
Best Web Hosting Services: These services can help you host your website and keep it running smoothly.

By following these marketing strategies, you can increase your business’s visibility and attract more customers. Remember to focus on providing value to your audience and creating a strong online presence.

11. Scale Your Business

To scale your business, you need to focus on growing your customer base and revenue. This can be achieved by expanding your marketing efforts, improving your product or service, collaborating with other creators, or adding new products or services that complement what you already offer. It is also important to automate or outsource certain tasks to free up time and focus on scaling the business.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. Hiring additional staff, contractors, or freelancers can be helpful. Here are some resources for building a team:

Hiring platforms such as Indeed and Glassdoor can help you post job descriptions, screen resumes, and conduct video interviews to find the right candidates.
Job boards such as Craigslist and Indeed allow you to post open positions for free.
Social media platforms such as LinkedIn and Facebook can help you find potential employees.
Freelance platforms such as Upwork, Freelancer, and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing, or bookkeeping.

Partnering with other businesses in your industry can also be beneficial. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company, or venue to offer your customers a one-stop-shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center to save money on shipping and storage costs and get products to customers faster. To find potential partnerships, search for businesses in your industry that complement what you do or serve the same target market as you but offer different products or services.

Helpful Resources

Here are some helpful resources to aid in scaling your business. Just google each topic and filter the best results for your usage.

Best Recruiting Software
How To Hire Employees
Where To Post Jobs
Best Applicant Tracking Systems

Remember to keep an eye on your finances and ensure that you’re still profitable while scaling your business. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue. Utilizing technology to automate certain business processes, including accounting, email marketing, and lead generation, can also give you more time to focus on other aspects of your business.

What are the Best States to Start a Business?

To determine the best states to start a business in 2023, Forbes Advisor analyzed 18 metrics across five categories, including business costs, climate, economy, workforce, and financial accessibility. According to their report, Indiana ranks as the overall best state to start a business due to its low taxes, reasonable cost of living, and prime workforce. Other states that performed well include Utah, North Carolina, and Texas. Check out the full report for more information on the Forbes website.

Bottom Line

Starting a small business can be a challenging yet rewarding experience. It requires dedication, research, and a solid business plan. Once you’re up and running, staying organized and focused is crucial to success. Remember to pivot when necessary and remain adaptable to changes in the market. With perseverance and hard work, your small business can grow and achieve your goals.

Frequently Asked Questions (FAQs)

How to Start a Small Business with No Money?

Starting a small business with no money is possible, but it requires creativity and resourcefulness. There are several funding sources for brand-new businesses, including the Small Business Administration (SBA), private grants, angel investors, crowdfunding, and venture capital. However, most of these sources require a business plan to secure funding. You could also potentially get started for free by dropshipping or selling digital goods like e-books, online courses, audio files, or software. If you have expertise in a particular area or niche, this is a great option for you.

What is the Best Business Structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry, and what you want to accomplish. However, any successful business structure will be one that helps your company set realistic goals and follow through on set tasks. Some common business structures include sole proprietorships, partnerships, limited liability companies (LLCs), S corporations, and C corporations. It’s important to consult with an attorney or accountant to determine which business structure is best for your business.

Do I Need a Business Credit Card?

You don’t need a business credit card, but it can be helpful for new small businesses. A business credit card allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I Need a Special License or Permit to Start a Small Business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state. It’s important to research the specific requirements for your business and location to ensure compliance with all necessary regulations.

How Much Does It Cost to Create a Business?

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees, or purchase inventory. However, you could potentially get started for free by dropshipping or selling digital goods. It’s important to create a detailed business plan and budget to determine the specific costs associated with starting your business.

How Do I Get a Loan for a New Business?

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva. It’s important to have a solid business plan and financial history to increase your chances of securing a loan.

Do I Need a Business Degree to Start a Business?

No, you don’t need a business degree to start a business. However, acquiring a degree in business or a related field can provide you with the understanding and ability to run an effective company. Additionally, you may want to consider taking some business courses if you don’t have a degree to learn more about starting and running a business. You can find these online and at your local Small Business Administration office.

What Are Some Easy Businesses to Start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files, or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

What Is the Most Profitable Type of Business?

The most profitable type of business will vary depending on a number of factors, such as your industry, location, target market, and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies, and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea. It’s important to do thorough research and create a solid business plan to increase your chances of success.

Frequently Asked Questions

What are the key steps to starting a small business?

Starting a small business can be an exciting but challenging experience. To start a business, you need to follow several key steps. Firstly, you need to come up with a business idea that solves a problem or meets a need in the market. Secondly, you need to conduct market research to determine if there is a demand for your product or service. Thirdly, you need to create a business plan, which outlines your business goals, target market, and marketing strategy. Fourthly, you need to choose a business structure, such as a sole proprietorship, partnership, or corporation. Lastly, you need to register your business and obtain any necessary licenses and permits.

What are the most important things to consider when starting a business?

Starting a business requires careful planning and consideration. Some of the most important things to consider include your target market, competition, pricing strategy, marketing plan, and financial projections. You also need to consider your legal and tax obligations, such as registering your business, obtaining any necessary permits and licenses, and paying taxes.

What are some industries with low startup costs for a new business?

Starting a business can be expensive, but there are some industries with low startup costs. Some examples include online businesses, freelance services, home-based businesses, and service-based businesses. These industries typically require minimal overhead costs and can be started with little to no investment.

What are the basic requirements for starting a business?

The basic requirements for starting a business include a business idea, market research, a business plan, a business structure, and registration and licensing. Additionally, you need to consider your financial projections, marketing strategy, and legal and tax obligations.

What are some tips for starting a business with little to no money?

Starting a business with little to no money can be challenging, but it is possible. Some tips for starting a business on a shoestring budget include starting a service-based business, using free or low-cost marketing strategies, bartering for goods and services, and leveraging social media to promote your business.

What are the four fundamental elements of a startup business plan?

A startup business plan typically includes four fundamental elements: an executive summary, a company overview, a market analysis, and a marketing and sales strategy. The executive summary provides an overview of your business plan, while the company overview outlines your business goals and objectives. The market analysis provides information about your target market and competition, while the marketing and sales strategy outlines how you will promote and sell your product or service.

Best Investments to Inflation-Proof Your Portfolio

Written by Martin Hamilton in Investing,Newsletter Last Updated October 25, 2023

Inflation can cause economic uncertainty and stock volatility, which typically don’t bode well for equities.

However, historical data suggests that certain parts of the stock market tend to fare better than others during periods of rising consumer prices. In this section, we will examine nine “inflation-proof” investments that can help fortify your portfolio from inflation’s potential drag on the broader stock market.

These investments include a collection of stocks, exchange-traded funds (ETFs), and other assets. Keep in mind that many investments designed to beat back inflation can take it on the chin when consumer prices decelerate.

Thus, many of these stocks and funds might not be ideal buy-and-hold-forever investments. If you’re nimble and like to take a more active tack, however, they can be useful tools to stash in your investing toolbelt.

United States 12 Month Oil Fund LP

The United States 12 Month Oil Fund LP (USL) is a fund that invests in oil futures tied to West Texas Intermediate (WTI, aka U.S. crude oil), purchasing contracts over the next 12 months of futures. The USL is one of the most direct ways investors have of buying into oil and its inflation-fighting goodness. The fund has assets under management of $84.4 million and expenses of 0.90%.

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) is an actively managed ETF that invests in a number of commodity-linked futures. By investing in PDBC, you’re exposed to everything from gasoline, WTI and Brent crude, to gold, copper, and zinc, to sugar, wheat and soybeans. PDBC stands out for its ability to provide diversified exposure to raw materials without making your taxes a nightmare. The ETF has assets under management of $5.6 billion and expenses of 0.59%.

Diamondback Energy

Diamondback Energy (FANG) is an independent energy exploration and production stock that deals with oil and natural gas, operating primarily in the Permian Basin in West Texas. The stock is one of the best energy stocks to leverage oil’s strength as one of the best inflation-proof investments. Diamondback Energy has a market value of $26.7 billion and a dividend yield of 7.8%.

Vanguard Real Estate ETF

The Vanguard Real Estate ETF invests in real estate investment trusts (REITs) that own and operate income-generating real estate properties. REITs are an attractive option for investors looking for inflation protection because they are required to pay out at least 90% of their taxable income to shareholders annually in the form of dividends. The Vanguard Real Estate ETF has assets under management of $62.5 billion and expenses of 0.12%.

Alexandria Real Estate Equities

Alexandria Real Estate Equities is a real estate investment trust that specializes in life sciences and technology campuses. The company’s properties are leased to tenants in the biotechnology and pharmaceutical industries. The stock is an attractive option for investors looking for inflation protection because of its focus on life sciences and technology, which tend to perform well during periods of rising consumer prices. Alexandria Real Estate Equities has a market value of $30.4 billion and a dividend yield of 2.5%.

Vanguard Short-Term Inflation-Protected Securities ETF

The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) invests in U.S. Treasury Inflation-Protected Securities (TIPS) with maturities of one to five years. TIPS are designed to provide protection against inflation by adjusting their principal value based on changes in the Consumer Price Index (CPI). VTIP has assets under management of $26.4 billion and expenses of 0.05%.

Series I Savings Bonds

Series I Savings Bonds are a type of U.S. Treasury bond that provides inflation protection. The bonds are indexed to inflation and pay a fixed interest rate plus an additional rate that adjusts for changes in the CPI. Series I Savings Bonds are an attractive option for investors looking for inflation protection because they are backed by the U.S. government and are exempt from state and local taxes. The bonds have a minimum investment of $25 and a maximum investment of $10,000 per person per year.

Fidelity Stocks for Inflation ETF

The Fidelity Stocks for Inflation ETF (FCPI) is an actively managed ETF that invests in companies that are expected to benefit from rising inflation. The ETF invests in companies that have pricing power, strong balance sheets, and the ability to pass on higher costs to consumers. FCPI has assets under management of $60.5 million and expenses of 0.29%.

Horizon Kinetics Inflation Beneficiaries ETF

Horizon Kinetics Inflation Beneficiaries ETF (INFL) is an exchange-traded fund that seeks to provide investors with exposure to companies that are expected to benefit from inflation. The fund invests in a diversified portfolio of companies across various sectors, including commodities, real estate, infrastructure, and energy.

Some potential benefits of investing in INFL include:

Inflation protection: The fund invests in companies that are expected to benefit from rising inflation, which can provide a hedge against inflationary pressures.
Diversification: INFL invests across a range of sectors, which can help to spread risk and provide exposure to a broad range of inflation beneficiaries.
Professional management: The fund is managed by Horizon Kinetics, a well-respected investment management firm with a long history of managing portfolios focused on inflation protection.
Low cost: INFL has a relatively low expense ratio compared to other actively managed funds, which can help to improve returns over the long term.

It’s important to note that investing involves risk, and there is no guarantee that INFL will achieve its investment objectives. Before investing, it’s important to carefully consider your investment goals, risk tolerance, and financial situation, and to consult with a financial advisor if you have any questions or concerns.

Frequently Asked Questions

What are the best assets to invest in to protect against inflation?

Investing in assets like gold, real estate, and commodities can be a good way to protect against inflation. These assets tend to hold their value even when the value of currency decreases. One more you may not have considered is Indexed Universal Life. I wrote an article you may be interested in entitled Indexed Universal Life: A Reliable Retirement Plan? It’s not just for retirement, but a great investment that beats most others.

What are some businesses that are resistant to inflation?

Businesses that produce essential goods and services, such as healthcare, utilities, and consumer staples, tend to be resistant to inflation. These businesses can maintain their profitability even when prices rise.

Which stocks are known for being inflation-proof?

Stocks in industries like healthcare, utilities, and consumer staples are typically considered inflation-proof. Additionally, companies with strong pricing power and the ability to pass on cost increases to consumers can also be good inflation hedges.

What are the top 3 investments to safeguard against inflation?

The top 3 investments to safeguard against inflation are typically considered to be gold, real estate, and commodities. These assets tend to hold their value even when the value of currency decreases.

How can you inflation-proof your savings?

One way to inflation-proof your savings is to invest in assets like gold, real estate, and commodities. Additionally, investing in stocks in industries that are resistant to inflation can also be a good strategy.

What are some stocks to include in a 10-stock inflation protection portfolio?

Some stocks to consider for an inflation protection portfolio include Johnson & Johnson, Procter & Gamble, Coca-Cola, PepsiCo, and Walmart. These companies produce essential goods and services and have a history of maintaining profitability even in times of inflation.

This weeks action steps:

Start using a spreadsheet to list your probable investments into. Make notes of the benefits of each one and a timeframe of when you will be ready to invest money into them.

See you next week!

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Recent Posts

The importance of good credit is paramount.

Key Takeaways

Understanding Credit Scores

Why Credit Scores are Important

Factors Affecting Your Credit Score

Payment History

Credit Utilization

Length of Credit History

Credit Mix

New Credit

How to Check Your Credit Score

Strategies to Improve Your Credit Score

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Regular Credit Monitoring

Long-Term Financial Responsibility

Frequently Asked Questions

Who manages credit scores?

How can I improve my credit score?

What is a good credit score?

How is a credit score calculated?

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Benefits of a 401(k) Plan

Using 401(k) for a House Down Payment

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Sell on Amazon to Make Money Online

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What are some safe and reliable ways to earn money online?

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Before You Begin: Get in the Right Mindset.

Consistency Is Key