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Wealth Hacks

Liquid Woes: Here’s Why You Should Never Sit On Too Much Cash

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According to a recent NerdWallet survey, Americans sit on an average $32,286 in cash. Yet, a whopping 39% say they aren’t investing.

And yes, while nest egg is great, being too liquid also comes with a lot of downside. According to NerdWallet’s calculations, every $10,000 kept in cash over 30 years (vs. investing) comes out to $44,000 in lost returns.

“They’re potentially losing tens of thousands of dollars in compound interest,” financial expert Chris Hogan told FOX Business’ “Morning’s with Maria.”

Here’s why you should never sit on too much cash.

Interest rates (and inflation)

Interest rates are at an all-time low. Back in the day, 5% was common. These days, the average savings account offers a pathetic 0.6% return

Needless to say, those kind of rates won’t beat inflation over time. In other words, your money literally loses value just by sitting in your savings account. 

Despite this, the average saver—somehow—thinks it’s better to sit on the cash.

Of the participants in the study, 32% responded that they prefer to be able to access their money easily, so they choose to not invest. Another 28% said they didn’t know how to invest.

How much you should save

So what’s the alternative? Instead of having a nest egg, keep three to six months of expenses “parked in a money market account, not a savings account,” he said.

A money market account is basically a savings account, but you need at least $10,000 minimum deposit.

You can also consider moving it to a mutual funds or ETFs trading on the stock exchange, since most of them allow you to withdraw your funds anytime—and they offer much better returns than a savings account.

All in all, any cash over this 2% inflation threshold can be invested across various asset classes, most of which offer great returns on your investment.

How to choose an investment

The trick here is to research and invest in the funds that fit your bill and investment horizon.

The takeaway from this move is the massive compounding growth your investments will gain over time.

One of the best examples of this is Grace Groner’s, a regular American who bought three shares of Abbott for $180 back in 1935.

Due to compounded interest, the value grew to a $7M fortune less than seven decades later. Now that’s what you call a #WealthHack.

Wealth Hacks

5 Time Management Hacks For Your Work/Life Balance

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(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)

Everyone strives to maintain that perfect work-life balance. Having a fulfilling career and healthy home life is a tough combination to achieve, but if you learn how to manage your time well, it can be one. Here are five time-management hacks to keep your work/life balance in check.

HAVE A REALISTIC SCHEDULE

Setting a schedule the night before is a classic trick that is entirely effective. A to-do list allows you to cross off the things you have accomplished and gives you a sense of gratification. It also is a great motivator to keep completing tasks until you have finished everything for the day. The key is to be realistic about what you can accomplish. Don’t jam your schedule leaving little to no room for breaks or downtime. This will do the opposite of helping you maintain a solid work/life balance.

Try this tech: timetrade for Salesforce

BREAK TASKS UP

It can be so overwhelming to look at a huge task you need to do if you don’t break it down into smaller tasks. Instead of trying to clean your entire home in one day, clean different areas of your home on different days. This way, you won’t be overwhelmed by these larger projects and you can actually finish them on time.

Try this tech: Monday.com

SCHEDULE “ME TIME”

If you are constantly working and always on your phone or laptop, there is a good chance you are not relaxing or giving yourself a much-needed break. When you get home from work, put your phone away and revel in some “me time.” Do something to unwind and disconnect from work completely. Take a bath, read a book, watch TV or exercise. Just do something that will help slow your mind down and create a degree of separation between your work and home life. This is one of the most important hacks to maintain a healthy balance.

Try this tech: Toggl

DETERMINE YOUR PEAK HOURS

Are you typically up before the sun or staying away until 2 am? Knowing what time you operate the best at will help you schedule your most tedious and important tasks at this time. If you are a morning person, perform your tasks the require the most focus in the morning. You can use the afternoon or night to do repetitive tasks like making calls or catching up on emails. You may discover that what usually takes you an hour to do in the afternoon only takes you thirty minutes to do in the morning.

Try this tech: Screen Time

BOOST PRODUCTIVITY

Two of the biggest things we neglect are sleep and exercise – two things that can actually significantly improve your productivity. Studies and research have proved that exercise can help keep you alert, making it much easier to accomplish tasks. Of course, getting enough sleep and getting in short naps throughout the day can do amazing things for your mental health and helps you from feeling fatigued and burnt out. If you are more productive at work, you can get home earlier from work and have more time for yourself.

Try this tech: Noom and Mindfulness

Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here.

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Wealth Hacks

VIDEO: Mark Cuban Shares The Best Advice He Never Got

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Billionaire entrepreneur Mark Cuban sat down with Business Insider to talk about strategy, success and more. When asked what advice he would give his 20 year-old self, this is what he had to say.

 

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Wealth Hacks

Riding The Flow Of Life And 4 Other Ways To Make Great Things Happen

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(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)

Going with the flow can be a scary idea for some people, simply because it means letting go of expectations —the number one killer of confidence. If you feel like you are constantly disappointed, it can be hard to just ride the flow. If you go with the flow, this does not mean that you have no power to create the life and career you want.

Here are four ways to make great things happen just by riding the flow of life.

PLAN LESS; FREE FORM

Do you have a plan for every hour of every day? If so, you are leaving little room in your life for riding the flow and being spontaneous. Maybe something larger would appear by just taking the action steps necessary to go in the DIRECTION you want to go, but not necessarily know the outcome in advance. Personally, any plan I’ve ever put on paper has never been the plan that ended up being successful —it was constantly pivoting while riding the flow. It is perfectly okay to have a solid plan for the day, but don’t overwhelm yourself by planning every moment of your day. Let yourself flow with the day.

CONTROL YOUR THOUGHTS, IT’S THE ONLY THING YOU HAVE CONTROL OVER

Practice gratitude, positive affirmations, and positive visualization to help your channel your thoughts into positive ones. There’s a reason why athletes, entertainers, and CEOs all take training in this discipline. A negative state of mind will keep you from going with the flow. Being able to look at things with a positive mindset will help you stay in the flow.

DON’T PLAY THE VICTIM

Image result for no victim

Many people don’t even know when they are lost in the victim role. They think they are strong and in control, but in reality, they are not. They are blaming their negative circumstances on everyone and everything else. This keeps you from riding with the flow because other people and other situations are controlling the direction you go.  You are in control of your thoughts and direction in life, even if you do not have control over everything that comes your way.

BE MORE COOPERATIVE AND WILLING TO HELP

Make the best of every situation that happens to you by being more cooperative. Look at everything from every angle and not just from your own perspective. A lesson can always be learned. Go with the flow and be patient when something does not go your way. Not every bad thing ends up being the bad thing you thought it was — it’s just a time where you were forced to follow a different course that was probably always the right way in the first place.

CHOOSE YOUR RESPONSE

Keep in mind that your reactions and responses dictate how you experience life. As things happen, learn to choose the best response possible so you continue to move in the positive flow of life. Choose patience, understanding and react positively and you will find that your experiences are much more rewarding, as well as less stressful.

Trying to control every situation in life will lead you to a lot of disappointment and will cause you to miss out on some of the most fun experiences in life. Some of the best memories are made when there is no planning involved. Going with the flow doesn’t mean relinquishing all control, it just means that you allow positive things to happen to you without forcing it.

Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here

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