Category Archives: Featured

3 Resolutions To Get Your Finances In Shape This Year

It’s the start of the year all over again. “New year, new you,” you’ve heard it a million times. Everyone says it. The time to change things around and turn over a new leaf, form better habits and start living a more fulfilled life, or so you think. Everyone wants a strong body, a fit mind, to worry less, love more blah blah blah. Well what about a fit wallet? Maybe this year, it is time to start building a sturdy base for financial success that will carry you through your life. Why don’t you make this year about ramping up your PFS (Personal Financial Statement)? This is the year to start seeing less red and more GREEN. I want to share with you some of the resolutions you should make during this new year that can help you get growing!

First and foremost, save money. I cannot stress this enough. Whether it’s in a savings account, checking account, certificate of deposit, retirement account, 401k, etc. If you are only going to do one thing this year that is going to put you on the path to saving, open one of these accounts. Even if you only have a little to save, just the act will make you feel better about your future. Furthermore, if you can constantly contribute you will soon watch your money grow and mature, your financial self esteem will increase and you will become more proud of yourself and more confident in your ability to save. Start this habit NOW, so it can become second nature.

Dabble in investments. Saving money is important, but it won’t make you rich. You need your money to work for you. This is another crucial process necessary to grow your wealth. You need to make smart investments with your money, investments that will grow and give you good returns in your future. Examples of smart investments include opening a brokerage account for trading stocks, investing in business projects, friends businesses, your passions, land, properties etc. If investing is too scary of a step at this point, do some research! Learning about different opportunities can help you get your foot in the door. Read a book that will increase your knowledge in the subject or ask friends, family and colleagues about their investing experiences. Knowledge is power and the more you know the better your decision will be regarding certain investments. A book I strongly suggest above the others is ‘Rich Dad, Poor Dad’ if you haven’t read it already. It will change the way you think about money and wealth for good.
The last resolution you need to stand by is ridding yourself of impulsive spending. Take control of your money and your wallet. This is by far one of the most important resolutions because it can impact a lot of your everyday decisions. Make a list and take a hard look at what you spend, what you need and what you can live without in 2015. Do you need a Starbucks coffee everyday? How about a $5 breakfast sandwich? Can you bring your own lunch instead of paying $11/day? Do you actually need to buy new shoes every month or go shopping every weekend? Can you save by eating in? Why don’t you try cooking, it might save you money and calories! Why don’t you try fixing things that are broken or torn instead replacing them? Get creative with your life. Learn to create things instead of buying them. You are more able than you think. Don’t buy artwork for your apartment, make your own art. Stop spending money when you don’t have to or can do something for less. As the millennial generation we tend to fix problems by throwing money at them. Learn to take control of your problems and try solving them yourself before you open your wallet or pull out your card. Buy simpler foods, use less resources, buy a bigger blanket and use less heat at night. Become a minimalist and get rid of excess. Only spend money that you have and not money that you borrow. Leave your credit card at home. Once you do this, go back to the first resolution I mentioned and start saving your money!

Why you don’t have to be Gordon Gekko to Invest in the Stock Market

Before I really understood the stock market, I always assumed investing was reserved for highly intelligent finance geeks, who read textbooks on the in’s and out’s of trading. As if they specialized in a secret science, an opportunity only available for the privileged that had the wealth needed to invest and grow. Like my unrealistic, childhood dream of becoming a celebrity, the thought of trading stocks was always desirable, but always seemed unattainable. However, after attending Bentley University and living amongst many other finance majors for the first time, I started to understand what it actually meant to trade different securities in the marketplace.

One of the biggest game changers was when I realized that I didn’t have to be a chic trader on Wall Street, finance professional or an economics professor to trade stocks. Really anyone can do it, and I mean everyone. Even you! All you really need is a computer, access to the Internet and about $200 dollars to invest. I was very unaware of just how accessible the stock market was. My classmates were pouring money into these brokerage accounts, buying and selling stocks in the dorms, during class and even on their smart phones walking around campus. My intrigue spiked one day, when my friend told me he had been paying off his college tuition by trading securities. He was very successful in his endeavors and had even bought a car with some of his yearly proceeds (not everyone is this successful). After that I knew I had to start putting money aside so I could finally take a chance of my own, and invest myself in the market. I told myself that even if I completely failed and lost everything, it would be a great learning experience. The decision proved to be worthwhile.

My first step, which was a very important one, was to choose the right brokerage online. Obviously I had seen various commercials and advertisements for brokerages of these types, but I wanted to do some comparison before I settled. It is important to choose a company that caters to your exact personal investment needs. This is especially important because every time you trade, you have to pay a percent fee known as commission. Commission is a rate fee that is tacked on to the cost of purchasing or selling stock, and every company has a different commission rate. This rate also tends to vary depending on stock type and/or amount invested. Investors also have to pay for the options in addition to the account, such as consultations, personal attention, branch locations, etc. These additional costs can add up, so it is important to keep all of this in mind when figuring out a brokerage to use. there are many sites that can give you a breakdown of pros and cons for each site.

As a millennial we aren’t the most trusting people when it comes to other people handling our money so I skipped out on a brokerage house that offered expensive advice. I wanted to learn about the market myself. We have an endless heap of knowledge known as the internet at our fingertips. I just figured I would research all the stocks myself and this would help me understand the market better and further my knowledge. Also with such low commission rates it makes sense for us millennials because we don’t have all this extra money to just toss around, the fees do tend to add up if you trade a lot.

What I learned after my first few weeks of trading was that once you put some skin in the game, you are more motivated to learn and understand where your money is going and how the system works. It was definitely one of the big motivating factors. You tend to watch the news more and pay attention to worldly events and the market. I always wanted to know what the market was doing. You will quickly learn that stock prices are more heavily influenced by the news rather than how the company may actually be doing according to numbers. So if you pay attention you can make predictions on when you may want to buy a certain security or sell, sell, sell.

The first $200 I ACH’d into the platform bought me a learning experience that I really don’t think I could’ve gotten anywhere else. It was worth every penny. This blurb of an article is just a little piece of insight to get anyone who is thinking about trading stocks or learning more about the process to consider the benefits and the knowledge that you can gain from learning to invest and what I wish someone told me before I knew anything about investing. Good Luck!

Why You Need The App Venmo Now

So if you haven’t heard of Venmo, stop reading and look it up right now. What do you think? Every one of us millennials should be using Venmo all the time. Venmo is a practical smart phone app that allows for friend groups to keep track of finances and pay each other back instantly. Venmo is linked directly to a bank account of choice, allowing for rapid money transfers from account to account with a click of a button. Just think about how much easier this will make your life. An app like this takes the awkwardness out of IOU’s and the ‘you owe me this from god knows how long ago’ situations. With Venmo, you can split bill with your buddies, break up grocery costs with your roommates, taxi fare, drinks, dinners, shopping etc. There is even a part of the app that lets you request money owed. This is like a virtual IOU reminder for your friends letting them know how much they owe. Having Venmo is like having electronic cash right in your pocket, and the best part, payments can be accurate, down to the exact cent.

Although Venmo may not directly save you any money, considering the fact that being a mooch is no longer an option, it does allow you to be more responsible with your finances. Another benefit to the electronic component of the payment system is that all transactions are listed on your online banking account website, making spending tracking easy, especially when using mint.com as well or other budgeting resources.

Another great feature of the app is it links to your Facebook account as well. This means that there is a social component to your account as well. With every transaction you are able to send a message or details of the payment that can be posted publicly or kept private. Usually my roommates and I try and one-up each other with how ridiculous and funny we can make our comments. Facebook also makes it easy to find the people you need to pay back because your Facebook are also your Venmo friends.

Venmo will save money in the long run and allow you and your friends to be more stringent. You can keep tabs on your electronic finances. When everyone has the app, paying the bill is only as hard as drunk-texting. And we millennials have gotten very good at that. So go, download this app if you don’t already have it. You won’t regret it.

How The “Little Things” Can Control Your Financial Health As A Millennial

The other day I was in my apartment after a long workday and the Internet was down. Seeing as though I didn’t have much else to do without our beloved muse, I decided to re-watch one of my favorite movies: “Vanilla Sky.” For those of you who have not seen the film (shame on you), Tom Cruise gets in a horrible accident and is left with a deformed face. He must then go through life wearing a mask, reinventing his identity and hiding himself from his former life. The movie ends with a quote that I will never forget, “the little things in life…there’s nothing bigger, is there? In the context of the movie, Cruise’s character was referring to all the little moments in life that add up and can bring you happiness. While this is definitely true, I also think it can be applied in other areas of life, such as your finances! 

It’s the little things expenditures in life that add up and can lead to the biggest sum of debt. It’s the Starbucks, the fast food, the taxi rides, the drinks, the hair products, toothpaste, the gum or the dates that you pay for and buy every week that add up. Compared to more serious investments like your monthly rent, these expenses don’t seem very damaging to your wallet, but over time these costs combined can be very detrimental. 

What’s a couple bucks here and there? A couple of bucks here and there is $3,000, 5,000 or 10,000 dollars worth of small instant gratifications spent over a year. One thing you can do to prevent these small costs from getting out of hand is to plan ahead and budget exactly how much you have spent in the past, over a certain time frame. I’m predicting the results will blow your mind. Just the other day I was looking at some of my daily spending habits. Every day I get breakfast for about $4.50. Multiplied by 261 workdays in a year, I am spending $1,174.50 on a breakfast that could cost me $0.75 if I prepared it for myself at home. Lunch was even more costly, at a daily rate of around $9, meaning I have been spending $2,349 a year. If I cut that down to $3 a day, I could save $1,566 a year. Taking this out of your yearly salary on an annual basis makes that delicious lunch much less tasty. 

Every day I see some of my co-workers take their twice-daily trips to Starbucks. If we are saying on average a Starbucks order costs $3- $4, so x2 can be as much as $7-8. This then equates to $2,088 a year. Is it really the coffee they want? Especially when we have a Kurig machine right in our break room providing the office with FREE COFFEE in over 15 different flavors. Now some of this can be justified with needing a break from work and a friendly ritual with co-workers, but the point I am trying to emphasize is that you should really consider just how necessary these small purchases are in your life or if there are ways you can cut down on your spending with cheaper alternatives. If you want to be financially successful throughout your life you need to always be analyzing your wants over your needs. Do I really need this or do I just want it? 

A good way to counter this mentality is to focus on the why you are spending so much money on these things and if you can do without them in your life. Try to find substitutes if possible with smaller unit prices. If you’re out of college, maybe you want to buy your first car, a trip or a house in the near future. Setting larger goals will help detract from spending so much on the smaller stuff, especially after you have realized just how much every dollar counts. Staying away from instant gratification purchases will make you happier and more successful in the long run. Just remember that its the little things you buy that can be the biggest threat to you’re financial health, so always be aware!

So you want to be Rich? 9 tips to get you started

The other day I read a fact on the internet: “The middle class today is 20% poorer than the middle class 30 years ago, in 1984.” At first I was startled by this statistic, but then I thought about it more. It all started to make sense to me. I thought about money… how money in this day and age, has become such a taboo topic. It’s like, we sit around looking at Instagram and Facebook photos of everyone flashing their wealth or attempted portrayals of lives they want to appear to be living. Money is a tool, and while it may seem to cause more problems than good, we all want it. If you are serious about obtaining this tool, as we often don’t like to admit, continue reading. I have compiled a list below of tips to help you take yourself more seriously and make more money.

1. Go where the money is. Wealthy people don’t become wealthy by staying in one place, simply hoping to win the lottery. You have to be proactive by relocating yourself to areas where larger influxes of money are more common. Money breeds money, it’s a natural fact of life. So if you want to increase your chances for making some, you first have to find where it is being made.

2. Don’t show off. Showing off your money is for people who either don’t have it or have just come into a lot of it too quickly—new money, for lack of a better term. As I’ve mentioned previously (and will continue to mention) investing your money is key! Yes, while it may be a fun drunk activity to try to impress girls by buying bottle service in meatpacking with your $10k bonus, but everyone sobers up eventually and you want your money to be there when you do too. Be smart, and let your money work for you in the future. Whether it be investing in your 401k or in a small business venture, both options have a greater return value than a one-night stand with a social climber.

3. Show up. Another quote for you today: “80% of success in life is just showing up.” Even when it’s a struggle, you don’t want to miss a day taking a step toward achieving your goals. Perseverance is very important, even when you feel discouraged. In sales they use the phrase “pounding the pavement” to represent this idea. This means physically going out and making sales happen, shaking hands and kissing babies… basically doing whatever it takes to get ahead. Keep this in mind. Alcoholics don’t go to one AA meeting and call themselves sober. It takes time and effort. Always show up.

4. Find a mentor. If you don’t know how to make money on your own, there are plenty of people out there who do. Network and ask successful individuals for advice and guidance. A lot of times people will be more willing to help out than you might think, or they might have other connections that may lead you to future job opportunities or business ventures. Remember money breeds money.

5. Avoid debt when there is no return on the charge. My father once told me “don’t put it on your credit card unless it will pay you back or last you for more than a few months.” He was right. Only invest with money you don’t have if it’s going to pay you back the same amount or more. Do not ever put yourself in a position where you have to work for your money. You always want your money to be working for you. So be smart, invest wisely, and think thrice about what you are swiping your credit card for.

6. Shoot big. So you want to be wealthy!? Instead of aiming for $1 million, aim for $10 or $20 million dollars. Lofty goals will keep you hungry and make you less likely to settle after your first big paycheck. Many people stop working hard after they feel comfortable enough. This is why lottery winners never stay millionaires for long. If lotto winners had a financial savvy mindset (side note: they likely wouldn’t be playing the lottery in the first place), they would invest their money. And the disappointment that 80% go bankrupt after a few years (fact), would not exist.

7. Understand that Money doesn’t sleep. Just like the Michael Douglas in the classic Wall Street. You have to be a hard worker. Even though your job ends at 5pm, this does not mean the opportunities to make more money do as well. Opportunities to make more money are always arising, day or night, you just have to go out and find them.

8. Treat money like its a girlfriend. Keep a close eye on your wealth and money. If you don’t make your money your number #1 priority, it is going to leave you and walk right into the hands of someone else. So don’t ignore money because after a while it will end up ignoring you.

9. If you want to be rich avoid embracing the idea of being poor. If you want to truly be happy, this does not make sense. Yes, yes I know the saying that goes something like “it’s not about they money, it’s about being happy.” Well let’s be honest for a brief moment here. Whoever said that, definitely did not live in our generation. Money can bring you a lot more happiness than financial insecurity. No matter how happy you think you are, nothing is worse than not knowing when your next meal will be or how you will make next months rent. Stress resulting from financial insecurity can make even the most optimistic person unhappy. Money gives you more freedom in life… freedom to live how you want to live. As selfish Americans, we know how important our freedom is.