10 Simple Ways To Start Saving Money

Saving money one percent more than previously is better than nothing, so try your hardest and stick it out.

Saving money and budgeting can seem basically unreachable when there appears to be an expense every way we turn. How do people do it? How do they stay committed enough? Well, budgeting can be moderately simple. That is, as long as you are genuinely committed.A person stacking coins on top of a table

These budgeting and savings tips are ones that you can start doing today to bring you a stable financial future. We’re not telling you to eat one meal daily and sell all your possessions merely. You’ll undeniably want to commit to these realistic and attainable saving methods if you’re saving or planning a budget.

Sit Down With Your Money

Update yourself weekly on your spending. Did you spend more than you wanted to on food or entertainment? Are there areas where you didn’t expect to spend? Informing yourself about your financial status weekly will help keep your budget on track. Keep your spending on a mapped-out, goal-oriented course.

Cut Out Cable

With countless economical streaming services available, such as Netflix, Hulu, or Amazon Prime, cable seems to be an additional expense you could live without. Cable prices are only growing and are expected to increase to an average of $123 per month or $1,476 per year. That’s a relatively large amount of money that can be saved for other financial objectives.

Save On Food

Food is an essential you can’t cut out. Nonetheless, what you can cut is unnecessary spending. There are several ways to save on food that you perhaps hadn’t considered or committed to. For example, plan your weekly meals and cook at home, have a potluck with friends instead of going out, or drink your coffee at home. Dollars spent on a meal here and there can add up quickly, so it’s all about strategy.

Travel Financially Smart

With modern leverage lodging rental websites like Airbnb, Travelmob, or Housetrip, you can frequently locate a place to stay for vacation at a portion of the hotel price. Additionally, you can rent a place with a kitchen that you can cook in (to save more money), and you could even choose to rent out your place simultaneously (more money!).

Work More

This one seems apparent, but if your job permits, be sure to do it. Or get a side job or freelance. This also makes for less time for spending. 

Wait 48 Hours Before You Click “Buy”

Stop your impulse buying. Especially in the age of digital shopping, try to wait at least 48 hours before purchasing. You’ll realize that an extra jacket isn’t a necessity.


You can find numerous “do it yourself” instructions online to help you either fix things, make presents, create household beauty treatments, and more. Save money while learning a lifelong skill.

Impress Yourself, Not Others

Saving moneyYou can change your mindset to be impressed with your savings progress rather than trying to keep up with other people’s spending behaviors. Just because someone has a fancy car or purse doesn’t mean you need to buy one. Impress yourself with your money-saving abilities.

Chill With Your FOMO

The same concept pertains to the “fear of missing out” or FOMO. Just because someone can afford to go out for drinks every day, doesn’t mean you can/have to. You’ll be happier in the end with your savings achievements and won’t even be upset you missed that party.

Don’t Get Discouraged While Saving Money

Even if your savings aren’t increasing exponentially, that doesn’t mean you should quit. Begin by taking small steps, and quickly you’ll make a habit and then a lifestyle out of saving. Saving money one percent more than previously is better than nothing, so try your hardest and stick it out.

10 Advantages of Internet Business

Despite all these advantages, an internet businessman must still be very patient. He must understand that with the ease and comfort comes intense competition.

The internet is, without doubt, the greatest technological breakthrough that mankind has ever seen in the last couple of decades. With the internet, we are able to speed up communication significantly that we have nearly rendered the old mailing procedures as obsolete.

Another interesting benefit that we have got from the internet is the fact that every single individual has an equal standing online. This, of course, is in reference to business. The internet has basically transformed the entire business arena into something that even those with little financial prowess can take part and dominate. Aside from these, there are a whole bunch of other advantages of the internet in relation to business and entrepreneurship. Here are some advantages:

The customer base

The internet has virtually made the world a smaller place. With it, internet business advertisements can be seen by billions at any given time. Of course, this would translate to buyers, clients, partners, and customers.

24-hour service

The internet never shuts down; the website coordinators do, but their apps are always awake ready to accept orders.


With the internet, you will be able to create reliable links with people all over the world. You can have business partners who can help you out at any given time.


The cost of putting advertisements online is the prime reason why the internet business has become tremendously popular in the last couple of years. Internet Businesses with small capital can put their ads online and they can still expect billions to see it. Indeed, putting an online store will only cost several dollars annually.


There are hundreds of applications and software that make selling and advertising fairly simple. You do not need to hire a specialist to be able to sell products. As a matter of fact, you can work alone and still manage to sell.

Low maintenance cost

If you create your own store, you will be spending a lot just to build your store. Add to that, you still need to pay internet, electricity, and water bills. The same cannot be said of an online store.

Easy decision making

Another interesting advantage of the internet business is that you can afford to switch focus. In other words, you can sell decors today, and you can sell packaging supplies tomorrow. You can do this with relative ease and at no cost.

Passive income

Passive income means you earn money while you sit idle. Some websites who are accessed by thousands of people every day earn a lot of money; and they are not even doing anything.

Choose your market

It is easy to choose which group of people to whom you will sell your market. Indeed, if you decide to target another audience, you can do so easily. There are a lot of social networking sites which would allow you to reach out to as many customers as you may like.


Basically, the internet was solely responsible for creating a global community. With a single click of the mouse, you will be able to sell products to millions of individuals as though they are with you.

Despite all these advantages, an internet businessman must still be very patient. He must understand that with the ease and comfort comes intense competition. Indeed, if you do not work hard enough, you will be outmatched by the others, and your business will die.

10 Advantages of Franchising

Franchising has been an important step that is being considered by many business enthusiasts all throughout the world.

Franchising has been an important step that is being considered by many business enthusiasts all throughout the world. In this article, we will discuss the many reasons why people consider having their own franchise.

Higher success rate and lower cost

An advantage of franchising is there is a higher success rate. There is also lower cost associated with franchising. The lower cost is due to the fact that you can buy things from the other stores in your franchise chain. The higher rate of success is due to the chain’s already successful nature. When you come in on the bottom of an already successful business, you can shoot straight to the top along with the rest of the franchise. Franchising is how you would start a business with a safety net. The safety net comes into play when the other stores come to your help with the business.

Chance to start your own business with hands on training and moral support

Franchising is your chance to start your own business. From the other stores you get hands on training in the way things work and how things are done. The other employees at the other stores in your franchise, provide moral support to you as you embark on this new journey. Starting a new business requires lots of moral support. The other stores will provide the training and the moral support that you need to get off your feet. Getting off to a good start is what you want to do and the other stores will get you there. By helping you out, they help themselves also because with your success , their success grows too.Coffee, coin, digital

A tried and tested formula for success that reduces risk factors

You get the other franchise’s business knowledge about formulas that have succeeded and those that have failed. By getting their tried and tested formula, you reduce risk factors for your growing business. This is because you already know the formula works. The way you will learn how to run your business is the way that works for others, so no reason to believe it will not work for you. So you need to work hard at making it work for you too. When you reduce risk factors, you make more profit because you don’t fail. It is harder to fail, when you part of a franchise because of all the help you can get from the other businesses.

You get confidence in your products

You gain confidence in your products because, once again, you know they sell already. A little confidence in your products, goes a long way to success. Your marketing goes to a national level because of all the other business in the franchise. This ensures that your business gets the attention you need to get off to a good start. For your business to gain attention, you need to have a little help. Once your business gains attention, your business gets more and more attention which keeps growing stronger and stronger. Soon your business will be a force to recon with. The business you are growing will be huge, if you only allow for your own success.

10 Advantages and Disadvantages of Working for Family

Read along with this article and determine the drawbacks and benefits of working for family business.

For some people, a family business is the best type of business to establish. On the contrary, a family-owned company is just similar to any other business. It also has a fair share of advantages and disadvantages. Read along with this article and determine the drawbacks and benefits of working for family business.

The advantages of Working For Family:

Solid trust

If you’re working for a family business, you no longer have to worry about trust issues. Unlike being an employee of another company, you still have to exert extra effort to gain your boss’s trust.Person in black long sleeve shirt holding persons hand

Tax advantages

Working for a family business will also spare you from various tax concerns. Oftentimes, tax payments are reduced if a company is owned and run by a family.

Name and reputation

If your business already has a good track record, you will surely be extra proud of your surname. You haven’t exerted any effort yet, but you already carry a surname full of positive feedback. Working in your family company will further increase that reputation.

Less pressure

Try to imagine a business with no problems regarding shares and dividends. That is quite possible if you’re working for your family business. You can easily re-invest your cash from your own business when the going gets tough.

Less training time

The best advantage would be less time for training. Unlike other businesses, working in a family-run company doesn’t require you to undergo training.

The drawbacks of Working for Family:


Because it is a family business, expect you to deal with jealousy from other employees. Other family members and relatives may also be jealous, especially regarding promotions and salary increases. This is hard to avoid when running a family business.Man, face, grim

Sudden loss

According to experts, it’s easier for a family member to steal from their own company; rather than an employee to steal from a company he doesn’t own. This is because family-run companies are overstuffed with trust that they don’t keep a close eye on financial status.

Personal problems

Your niece, the Head Supervisor of the marketing division, might be dealing with marital problems. And her coming to work with that aura indeed affects her decision-making ability. Long story short, your company is in jeopardy.


Because this is a family business, being promoted is not difficult. However, in some cases, family members tend to be promoted despite their incompetency. If you know you’re not ready for the position, declining any promotions is wise; otherwise, suffer the consequences.

Invisible rules

Family-owned companies are also prone to rules and regulation concerns. No matter what type of rules you put up, if other members are stubborn, those rules will be useless. That is why you must be extra firm when creating new regulations for your business.

It is a fact that working in a family-owned business is easier than applying to another company. However, you should also take into consideration the drawbacks that are entailed. Be sure to weigh things carefully before making your final decision.

7 Different Stages Of Financial Independence And How To Achieve Them

Luckily, different stages of financial independence can give you the power to take back your freedom bit by bit so that you can slowly but surely break free from the trap.

Imagine knowing that the next 500 Mondays will be just as dread worthy as the one coming next week. It makes you want to quit your job almost immediately. Unfortunately, you have a mortgage, bills to pay, food to put on the table, and a car on finance. Thus you are resigned to the feeling that you are trapped in your job, and the concept of financial independence or early retirement is nothing but a pipe dream.

Luckily, different stages of financial independence can give you the power to take back your freedom bit by bit so that you can slowly but surely break free from the trap. By identifying your actual financial wants and needs, you can calculate if you have reached stability, can take a lower-stress job with less salary, or can quit the rat race altogether. The way I see it, there are seven stages, and each has specific criteria before you can join the club.

Stage 1: Financially Dependent

Everybody starts at this stage.

It’s when you must have a job to earn money so that you can pay for your expenses in life. That, or there is another person in your life bringing in the money and graciously supporting your cost of living, i.e., your parents.No financial indpendence

Without your job or financier, your income will drop to zero, and you will be faced with the challenge of paying your bills and debts or putting food on the table. You know… the basics and necessities of life.

Maybe you can last a short while, like a couple of weeks, before you need to start making difficult decisions – but that dreaded day is coming if you have no income.

This is pretty much the worst stage of financial independence because you have zero independence. Losing your job would be near catastrophic, and if you wanted to leave a job you didn’t like, you’d need to think twice to ensure you have somewhere safe to land.

The sad thing is that too many people are in this stage. If you’re among them, then your only priority should be to start gaining some more financial independence by focusing on three key things:

  1. Setting up your budget
  2. Paying down your debt
  3. Putting some money aside

Stage 2: Financially Stable

At this stage, you’re still entirely dependent on a job, but you’re in a much better position to handle a situation where you might stop earning for a short period.

You would have a sensible budget that works for you and focuses most of your income on essential debt payments, basic living expenses, and savings.A person looking at a person in a kitchen

Ideally, you want no debts besides your mortgage or a student loan, depending on the interest rate. Everything else must already be eliminated, such as credit card bills, car finance, and other loans with exceptionally high interest rates.

Depending on your specific situation, you’ll have an emergency fund that covers your cost of living for at least three months, ideally 6, and possibly more. This will give you breathing room if your income suddenly stops.

Finally, you’ll also have some savings for your future years, ideally in tax-sheltered or efficient accounts such as your pension or an ISA (Roth IRA if you’re from the US).

Being financially stable may afford you a decent life – one that’s certainly better than someone else’s who must keep worrying about what will happen if they lose their job next week. But it’s tough to break free from the rat race if you stay at this stage.

Developing your financial independence further will require you to find ways to grow your wealth outside of your average day job. Among these would be:

  1. Earnings from investment growth and dividends
  2. Income from side-hustles
  3. Passive income or royalties from your products

Stage 3: Financially Growing

When you have money that is earning even more or from something you already did in the past, you’ll become a member of this stage. Your job may still be your primary source of income, but it isn’t the source of all your income.

Author’s note: This is assuming you meet the conditions for Stage 2. If you have investment income, but you’re in a lot of credit card debt, then you’re not financially growing… at least not to your maximum potential.

One of the easiest ways to get your money earning more money is by investing it into a low-cost index fund that tracks a globally diversified benchmark and grows around 7% each year on average.

Don’t underestimate this “low” rate of return because it’s money you didn’t need to work to earn and with the power of compounding, your money will grow exponentially over time.Selective focus photography of pile of decorative stones

Besides investing, you might have some skills to monetize and earn a little bit of extra money. This will mainly require you to work actively – which has a limit due to time available – but if you’re savvy you might be able to direct those extra earnings into building more passive income streams.

With a bit of focus and discipline, most people can quickly get to this stage, but be prepared to spend a large amount of your time here. At the start, it’s going to be slow, but as you build the momentum, you’ll eventually reach escape velocity, allowing you to leave the rat race.

The accurate indicator is that as each month passes, you will become more financially independent, meaning you are less and less shackled to your job.

The mission is to keep this going until you’ve finally transferred all of your dependence away from your job and can live off your existing wealth and other income sources to the end of your life.

But there’s more!

Stage 4: Coasting to Retirement

As you continue transitioning your dependence away from your job, you will reach a stage where you have enough of a nest egg that effectively means you never need to save again.

There’s just one caveat – the money is only enough to last your traditional retirement and still needs to grow until you reach the age of 67 (or whatever the retirement age for you will be).

Let’s say, for example, you’re 45 years old, and your retirement age is 67, and you’ve calculated that you need £20,000 each year to live while in retirement. Your savings will have 22 years to continue growing and it will hopefully reach an amount that can support your retirement lifestyle.

At a 4% safe withdrawal rate, that would mean you’d need to have £500,000 on your 67th birthday to have money that would, theoretically, last you for the remainder of your life.Woman meditating on floor with overlooking view of trees

Assuming your savings are invested into a low-cost index fund that returns 7% each year on average, you would need roughly £113,000 saved up at 45 to achieve this. Here’s the math:

Savings invested into a low-cost index fund at age 45: £113,000

Years to grow: 22 years

Average annual return: 7%

Savings after 22 years of growth: £500,635

£113,000 x (1.07^22)

This means that once you’ve hit that £113,000 milestone for your savings, you can effectively stop and spend every penny you earn from that moment on without too much concern about your future – since you’ve already set something up for yourself.

Thanks to this, you’ll get your first taste of absolute financial independence because you can choose to keep working your job as usual -keep going – or take a lower paid but lower-stress job to keep you going until you retire.

The choice would entirely be yours!

In my opinion, this is also the stage where you can taste “F**k you money.” While you’re still going to need to work to support your “present-day” living costs – you’re not fully financially independent just yet – you don’t need to be too concerned about your financial future.

A top tip is to build up your emergency fund to an amount that could give you considerable time to live without earning any more money.

Imagine knowing that your retirement years were secure and having the money in an emergency fund to support your living costs for the next 12 months. The moment you get sick of your job, you could say “F**k it,” and move on.

Stage 5: Financial Independence


Fan of 100 u. S. Dollar banknotesAt this stage, you can finally decide to stop working and live off your current wealth and investments for the rest of your life, regardless of your age, albeit that lifestyle might be pretty basic.

You would have needed to continue to “Financially Grow” to get here beyond the “Coasting to Retirement” stage. The more of your monthly income you can save and invest, the sooner you’ll get here (obviously).

Let’s say you average £1,500 monthly on general living costs covering housing, bills, groceries, new clothing (infrequently), and other basic activities. At a 3.5% safe withdrawal rate, that would mean you’d need to have roughly £515,000 in your current investments to support that cost of living. Here’s the math:

The annual cost of living: £18,000

(£1,500 x 12 months)

Investments balance: £515,000

Withdraw 3.5%: £18,025

(£515,000 ÷ 100) x 0.35

New Investments balance: £496,975

Grows by 7% on average each year: £531,763.25

£496,975 x 1.07

You might have noticed that in this example, I am using a 3.5% SWR instead of 4%, like in the earlier example. This is because I assume you need your money to last longer, potentially much longer.

While the safe withdrawal theory says your money will keep lasting your lifetime or even increase over time (as seen in the above example), you never know what will happen in the future regarding returns on investment. Therefore the lower rate accounts for this, and you can always increase it if things are playing out quite well.

Author’s note: I’ve assumed that all of your money comes from investments you’re drawing down from. However, other passive sources of income, such as rental income or income from royalties, would also count and could lower the amount you need to have invested.

Now you have “F**k you money” because you no longer need to work if you don’t want to.

Bored of your job or what you’re doing – just quit!

Don’t like your colleagues, your boss, or your customers? – stick it to them!

Got fired – who cares?

You’re financially independent by this point, and any other income you earn on top of what you already have or would’ve been earning – for example, continued growth in your investments – would be “excess” and not “required.” However, it would improve your quantity of life.

This is an important difference between this stage and the next – at this stage, you’re fully independent, but your income can only support the basics of life.

You can enjoy simple hobbies like road trips, hikes, outdoor activities, family days, homecooked foods, and the occasional activity. But you’d need to think twice or plan a little to partake in some things that could be slightly more costly. If that’s what you’re looking for, you’ll want to keep going until at least the next stage.

Stage 6: Financial Freedom

This is the stage that most people are probably wishing to get to whenever they’re thinking or talking about financial independence. It’s where you can afford the relatively average lifestyle you want, including some luxuries you feel are worth paying for.Silhouette photo of woman against during golden hour

You could easily spend money on at this stage: Regular holidays abroad, a decent car, weekly meals out in more excellent restaurants, new clothes more regularly (but not the designer stuff), paid clubs and hobbies for your children.

While the actual amount of money spent each year will vary from person to person – or family to family – a benchmark number for this stage of financial independence seems to be $40,000, probably based on a 4% safe withdrawal rate on a million.

But let’s say £40,000 since this comes from a UK-based writer.

At a £40,000 income, you would have £3,333.33 to spend each month, which is more than sufficient to support a family of 4 people in most areas of the UK, especially if you’re mortgage free.

You’ll be comfortable if you’re living a normal life. You mostly cook meals at home, have a gym membership, go on family holidays once a year, and buy new clothes every couple of months. You know, the same things that you would’ve done when you weren’t financially independent

The only real difference is that you’re not trapped in a day job, and you can do whatever you want with those hours you have back in your life.

As I said before, when most people think about financial independence, they’re talking about this stage. But there is one more stage for those who want to live in more luxury.

Stage 7: Financial Abundance

This stage is when you have much more money than you need and can live a life of luxury. In other blogs, forums, or financial independence communities, you might hear this being referred to as “Fat FIRE.”Business, rich, money

Holidays abroad happen multiple times a year; you have a nice car (better than a decent one), you mostly eat out at restaurants, you have a pretty big house, you can buy designer clothes and accessories, and you can send your children to private school.

How luxurious a life you lead will, of course, depend on your income level, but the benchmark appears to be at least £100,000 a year in spending money. At a 4% withdrawal rate, you need an invested net worth of £2.5 million.

Getting to this would require quite some effort and possibly not worth it for people focusing on early retirement.

Let’s say you have achieved stage 6, Financial Freedom, and have a net worth of £1 million. If you were to keep saving and investing £1,000 each month from that point, it would take you another 13 years to surpass £2.5 million, assuming a 7% average annual return.

If you were to save and invest £3,000 a month, it would take 11 years.

At £5,000 a month, it takes nine years.

Don’t forget you’re starting from £1 million, not £0.

A little bit of luxury in life isn’t bad, but if you need to keep working another decade before you can “afford it” then you might want to think about the true value of those things – don’t lose sight of your original goal!

Final Scribbles

When I first started on my journey towards financial independence, I found it daunting due to the massive number I would need to reach.

Even by investing my savings, I was looking at quite several years before retirement was a real prospect for me. Even though I would be retiring early, in my mind, it wasn’t early enough, and I found it highly demotivating.

But, by breaking the goal of financial independence into stages and realizing that I wanted the last but one stage of “financial freedom,” the mission became much more digestible.

Whenever I feel hopeless about the whole mission, I remind myself of these stages, and when I see where I’ve managed to get myself since starting in 2015, I remember that everything is going very well.

Once I remember that small fact, I become much more focused, motivated, and, more importantly, patient.

Hopefully, it can do the same for you, too – keep going!

Get Rich Investing In The Stock Market For Your Grandchildren

We experience highs and lows in the stock market, just as we experience highs and lows in the real estate market.

It’s slow and methodical, but you can get rich investing in the stock market. You must do your homework, understand the stock market, and monitor your stocks or the companies they represent. That is a tall order, some folks do it and it has shown proven results, others don’t and they sell before their stocks make money.

Over A Long Period Of Time

Over a long period of time, the stock market has been a good investment. The average return has been about 6%, but that adds up over time. Be aware of the reasons the stock market bombed in the past, and that should help you choose your stocks and understand the behavior of the market at specific times.Get rich investing in the stock market for your grandchildren 1

During the depression, we did not have unemployment insurance, disability insurance, and other safeguards to keep money circulating during financial crises, during the stock market crash of 1987, we did not have proper stock trading stops in place to help guard against a crash, and during the start of the internet dot-com companies hype took over all reason and many people lost money purchasing companies that had no history, no money or expertise behind them. After the 1987 crash, for those who stayed in, many of their stocks recovered in about three years.

The Best Stocks For Amateurs

The best stocks for amateurs to research are large companies with an excellent history and good management. If it is growing slowly and has a lot of cash behind it, it could be paying dividends that will help your portfolio until products get to market. If you are an amateur, seeking a stock specialist’s advice may help you understand the stock market.

Researching Your Stock

The Internet has made it easy to research stocks and track them. Most of the major portals have stock and other investment research. Most of the research is free.

Monitoring Your Stock

At least once a month, read the news about your company, ask your broker to give you research reports if you cannot search the internet, and understand what type of stock you have and its fundamentals. Any stock can change over time, especially if another company purchases it or a major product stops selling.

Only Time Will Tell

Sit back and relax. If you have a quality company, growth takes time if the company is well-balanced and well-managed. Our recent run-up in home prices came as a 20-30 year high, depending on the area of the country you were in.

We experience highs and lows in the stock market, just as we experience highs and lows in the real estate market. You must understand why the highs and lows are occurring, so you don’t make a mistake and buy or sell at the wrong time.

Household bills and Finance in Marriage

With Internet security’s continued development and improvement, paying household bills is much easier than it was a few years ago.

Who takes care of the bill payment center at your house? Does it matter who the financial guru is at home? With Internet security’s continued development and improvement, paying household bills is much easier than it was a few years ago. With services such as online auto or automatic bill payment, electronic bill payment, and online payment reminders. Paying a bill online is a breeze.

The question remains: Who takes care of the household finances, the husband or the wife? The obvious answer to the question is whoever is more organized and better with money, but it goes beyond this simple answer. The household finances should be a shared responsibility between both husband and wife. It’s ok to have one person, usually the more organized person, take care of paying bills and budgeting, but both should be involved with the overall process.

Since 50% of all marriages end in divorce and the number one cause of divorce is money, this should be an important job in the family. If the husband takes care of most of the finances, the wife should always be well informed of how much money they have to spend on the family’s debt. A husband can’t expect a wife to control her spending if she doesn’t know they are broke. The same goes for the wife; if she takes care of most of the finances, she should often update the husband on the current financial situation. Men tend to enjoy “toys,” which usually carry a hefty price tag; they need to know if you can’t afford to purchase big-ticket items.

Taking care of household bills and personal finances is a significant burden and responsibility. The couple should share the workload. Keep each other well informed of your current financial situation, and always talk before making any significant purchases. Maybe you can be one of the 50% that stays together!

Importance of Financial Goal Setting

Setting and achieving personal financial goals to achieve long-term financial success is essential. Let your money work for you each month instead of working so hard for your money.

Financial goal setting can be challenging but well worth the rewards you will reap if you are successful. Setting and achieving personal financial goals to achieve long-term financial success is essential. Let your money work for you each month instead of working so hard for your money.

When setting goals, identify and write down your goals. Keep in mind you need to make specific, realistic goals that are attainable. Everyone’s financial situations are different; thus, financial goals will differ. For some people, goals may be focused on getting out of debt, others may be debt free and want to save for a home or car, and others may be ready to focus on retirement goals. Regardless of your life stage, determine your goals and write them down.

Next, break down your goals into three different categories. The first category should include several easy short-term goals which can be attained in 1 year or less. For example, pay off a small credit card balance. The second category should include medium-term goals which can be accomplished in 1 to 3 years. An example might include paying off a car loan or saving to pay cash for a car. Finally, include a few long-term goals that can be accomplished over five years. For example, saving 10,000 toward retirement.

Next, educate yourself and do some significant planning. Since you have your goals written down and sorted into categories, figure out how you will accomplish these goals. If your first goal is to pay off a credit card, you will have to come up with some extra monthly money to pay down the balance. This might include searching for a part-time job or finding extra money in your monthly budget. Research other financial websites, magazines, and publications to get ideas for accomplishing your goals.

It is now important to evaluate yourself and your progress while continuing the process of setting and achieving goals. Give yourself a financial checkup every week, month and year. If you fall short of your original goals, develop a different plan. You won’t be able to achieve your goals overnight, setting and achieving goals is a difficult task that even professionals struggle with. Stay motivated and focused, and you will be successful!

Why You Should Always Pay Yourself First

You’ve heard it over and over again: Pay yourself first.  Why is this so important?

You’ve heard it over and over again: Pay yourself first.  Why is this so important?  First, it establishes good saving habits.  If you continuously pay yourself first, despite whatever is going on in your life at that time, you will be much more likely to achieve your goals.

Second, the power of compounding.  Sometimes called the 8th wonder of the world, the power of compounding is truly remarkable.  The best way to explain this concept is to show you an example:

Person 1 invests $2,000 per year beginning at age 19 and ending at age 27.  Person 2 invests $2,000 per year beginning at age 27 and continues to invest until retirement age. Assuming the same rate of return (10 percent) in each of the two examples, a person who invests early and for just eight years will have more money at 65 years old than someone who starts late and invests for nearly 40 years.

Example 1: Example 2:
Age Annual Investment Year-End Value Annual Investment Year-End Value
19 $ 2,000 $2,200 $ 0 $ 0
20 $ 2,000 $4,620 $ 0 $ 0
21 $ 2,000 $7,282 $ 0 $ 0
22 $ 2,000 $10,210 $ 0 $ 0
23 $ 2,000 $13,431 $ 0 $ 0
24 $ 2,000 $ 16,974 $ 0 $ 0
25 $ 2,000 $ 20,872 $ 0 $ 0
26 $ 2,000 $ 25,159 $ 0 $ 0
27 $ 0 $ 27,675 $2,000 $2,200
28 $ 0 $ 30,442 $2,000 $4,620
29 $ 0 $33,487 $2,000 $7,282
30 $ 0 $36,835 $2,000 $10,210
31 $ 0 $40,519 $2,000 $13,431
32 $ 0 $44,571 $2,000 $16,974
33 $ 0 $49,028 $2,000 $20,872
34 $ 0 $53,931 $2,000 $25,159
35 $ 0 $59,324 $2,000 $29,875
36 $ 0 $65,256 $2,000 $35,062
37 $ 0 $71,782 $2,000 $40,769
38 $ 0 $78,960 $2,000 $47,045
39 $ 0 $86,856 $2,000 $53,950
40 $ 0 $95,541 $2,000 $61,545
41 $ 0 $105,095 $2,000 $69,899
42 $ 0 $115,605 $2,000 $79,089
43 $ 0 $127,165 $2,000 $89,198
44 $ 0 $139,882 $2,000 $100,318
45 $ 0 $153,870 $2,000 $112,550
46 $ 0 $169,257 $2,000 $126,005
47 $ 0 $186,183 $2,000 $140,805
48 $ 0 $204,801 $2,000 $157,086
49 $ 0 $225,281 $2,000 $174,995
50 $ 0 $247,809 $2,000 $194,694
51 $ 0 $272,590 $2,000 $216,364
52 $ 0 $299,849 $2,000 $240,200
53 $ 0 $329,834 $2,000 $266,420
54 $ 0 $362,818 $2,000 $295,262
55 $ 0 $399,100 $2,000 $326,988
56 $ 0 $439,010 $2,000 $361,887
57 $ 0 $482,910 $2,000 $400,276
58 $ 0 $531,202 $2,000 $442,503
59 $ 0 $584,322 $2,000 $488,953
60 $ 0 $642,754 $2,000 $540,049
61 $ 0 $707,029 $2,000 $596,254
62 $ 0 $777,732 $2,000 $658,079
63 $ 0 $855,505 $2,000 $726,087
64 $ 0 $941,056 $2,000 $800,896
65 $ 0 $1,035,161 $,2000 $883,185
Less $ invested ($16,000) ($78,000)
$1,019,161 $805,185
Money increased 64 fold 10 fold

Need I repeat it?  Pay yourself first, and start early!

Why to Read About the Stages of the Business Life Cycle?

Every company goes through a certain development life cycle, and each stage has characteristics that significantly impact the quality of the investment and the result. To understand more clearly the return on investment, the nature of asset price movements, and other interrelationships, it is important to correctly define the company’s stage of life.

The main stages of a company’s development

Idea development

Every company begins with an idea and the development of the first product. This is the most interesting stage for venture capitalists and the least interesting for investors in public companies. At the very beginning, the future company refines its strategy, develops its first product, and finds its first money for development.

This stage is characterized by experimentation and great uncertainty. About 90% of startups close in the first year of their life and do not pass the “valley of death.” However, future large companies usually pass it and reach a new level: finalizing products and starting their first large-scale sales.

Business Development – Expansion and Peak Growth

After an idea is finalized and a medium- and long-term development strategy is defined, the company begins to work on its scale: it enters new geographic markets, acquires other companies, invests in new marginal products, etc.

This process is the most interesting for investors. As a rule, many companies go public through an IPO precisely at this stage. The company’s logic is simple: the IPO allows the company to receive money from the placement and the opportunity to use it to accelerate development further. Also, at this point, the investor gets a bigger yield due to the rapid growth, with still existing significant risks: until the first profit, the company is in the ranking of “idea” and “bright future.”

Reaching the maturity and stability of the business

With the appearance of the first profit, dividends and business risks decrease, and the company comes close to its peak development point. For investors, this type of business moves from the ” growth ” category to the “value company” category.

The absence of significant growth characterizes this stage of business development. The company has implemented all of its large-scale projects and has come to the state of a stable business unit with well-tuned business processes.

As a rule, clients of such businesses are constant. Developments and innovations are of a point-by-point nature.


Each company is at a certain stage of its development. This stage of life has several important features to consider when investing. We have identified three stages of business development: the startup stage, the development stage, and the maturity stage. The second and third stages of business life are the most interesting for investors in public instruments. In the second stage, the company becomes a “growth story,” which stands out for its high potential returns and risks. In the third stage, the business moves into the “value” stage with more predictable cash flows and lower target returns.