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Wealth Hacks

The Guide Through Every Stage Of Life Using Investment Vehicles

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The moment you enter the workforce and start making money, you should already start thinking about where and how to maximize your investment vehicles. Whether you’re a freelancer, a full-time employee, or a business owner, making your first investment can bring you closer to your financial goals.

There are many investment vehicles to choose from, such as stock and bonds, real estate, VUL insurance, mutual funds, and many others. For a lot of people, creating an effective investment strategy can be overwhelming. Some want quick returns and forget that there’s a lifetime ahead of them to make their investments and other resources work for them, while others are content with having bank accounts that earn little to no profit.

But when it comes to investments, it’s not about which one you should put your money in – it’s about which investment vehicles are right for your individual financial situation and goals.

Before Investing: Factors to Consider

The key to becoming a smart investor is to match your resources, requirements, and priorities in relation to a particular period or stage in your life. This means your investment decisions will have to be based on several factors, including your monthly income, assets, expenses, financial goals, and risk appetite for investment, among others.

Since investing can take a considerable chunk of your finances, you need to check your cash flow. Do you have a regular office job or a flourishing business that gives you a stable source of income? With the income you’re getting, are you still left with surplus cash that you can use toward investing? It’s important to ask these questions as these allow you to set proper expectations about your financial responsibility as an investor.

It’s also advisable for you to take stock of your financial position for the short term. Ideally, you should have saved six months’ worth of salary to help you minimize the impact for when your ability to earn – and consequently, invest – is affected by economic factors or personal emergencies. It simply isn’t wise to go into investments when you’re struggling with your finances, especially when there’s no real guarantee that your return on investment (ROI) is going to be quick. The idea in investing is to part with money, which you can afford not to use or spend for months or years.

Your readiness to invest may also depend on how much you’re paying your billers to cover for your monthly expenses, such as housing, education, transportation, food or groceries, and the like. Aside from these, you have to factor in your lifestyle and personal expenses, too. If you’re spending more than what you’re earning, it’s a red flag indicating that you don’t have a healthy financial status and may not be ready to invest.

Here’s a sample of the recommended expense-to-income ratio for various types of expenses:

Housing: 20% to 25% of your income

Transportation: 15% to 25% of your income

Living Allowance: 20% to 25 of your income

Debt Payments: 5% to 10% of your income

Savings: 10% to 15% of your income

When it comes to your financial goals, you can tap on your investments to help you reach those objectives. If you’re a new parent, some of your high-priority goals may be to buy a house, establish your child’s educational fund, and make sure you have readily-available cash in your bank account.

In this case, you’d do well to put your assets in different investment vehicles. Doing so helps you manage the risks that come with investing, and as a result, gives you more chances of achieving your goals as the money you invested starts growing.

Speaking of risks, it’s another factor you need to consider when you decide to invest. Since almost all forms of investment come with a risk, you need to determine if you’re open to the prospect of having your investments depreciate at some point in time. This is known as your risk appetite. If you’re not too comfortable with the thought of incurring possible losses, then you’ll have to be conservative in investing. Consider investments with lesser risk.

Your timeframe for investment vehicles may also influence how much risk you’re willing to take. Generally speaking, your risk appetite decreases as you age. If you start building your investment portfolio while you’re in your 20s, you can have more time to recover any money you might lose than if you choose to invest when you’re already nearing retirement.

Which investment vehicles Should You Invest In?

Once you’ve assessed the various factors described above, the next step is choosing the right investment vehicle. This is one of the biggest dilemmas that investors tackle, especially if you’re barely getting started. You might find the decision process easier if you first line up your goals, and from there, make a comparison of what investment vehicles might be suitable for your timeline.

It’s likely that you’ll be coming up with short-, medium-, and long-term goals. Naturally, each of these will require investments that are aligned with yet a different set of factors, such as interest rates, liquidity period, and overall value for your hard-earned money.

For short-term goals, the most common types of investment may include fixed deposit, liquid funds, or short-term debt funds. Meanwhile, you may opt for balanced funds and equity-linked savings schemes for your medium-term goals. Obviously, your long-term goals will give you the widest range of options, from stocks and bonds to real estate.

Indeed, investing your hard-earned dollars is a major venture that requires a lot of homework, careful planning, making projections, weighing your options, and so on, to grow your money over time. In our featured infographic, we discuss more of the things you need to consider, so you can have a clearer perspective about investing at whatever life stage you may be.

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

Investment Guide Through Every Stage of Life

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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