Introduction

Welcome to the world of investing! Whether you’re looking to secure your financial future or grow your wealth, investing can be a powerful tool. However, as a beginner, it’s crucial to understand the fundamentals and develop effective strategies. In this blog post, we’ll explore valuable tips and techniques for those venturing into the world of investments. Drawing upon the insights from my personal experiences and incorporating some proven ideas, we’ll equip you with the knowledge to kick-start your investment journey. So, let’s dive in!

                                        INVESTING FOR BEGINNERS.

Section 1: Understanding the Basics of Investing 

Before diving into the world of investments, it’s important to grasp the fundamentals. It is advisable to  emphasize the significance of building a solid foundation, starting with these key concepts:

1.1. Define your financial goals:

Determine what you aim to achieve through investing. Are you looking to save for retirement, purchase a home, or fund your children’s education? Setting clear goals helps you tailor your investment strategy accordingly.

1.2. Risk tolerance:

Understand your risk tolerance level, as it will influence your investment decisions. It is advisable for beginners to strike a balance between risk and reward by diversifying their portfolios.

1.3. Time horizon:

Consider your investment timeframe. Investments for short-term goals may differ from those for long-term goals. It is always better off aligning your investment horizon with your financial objectives.

Section 2: Essential Tips for Beginner Investors

Here are some valuable tips for novice investors, helping them navigate the investment landscape with confidence. Let’s explore some of these tips:

2.1. Educate yourself:

Knowledge is power in the world of investing. You should realize the importance of understanding different investment vehicles, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Learn about their features, risks, and potential returns.

2.2.Start with a diverse portfolio:

Diversification is critical to managing risk. It is suggestive that you spread your investments across various asset classes, sectors, and geographical regions. This approach helps mitigate the impact of market volatility.

2.3. Invest in low-cost index funds:

I’ve often advocated for index funds as a reliable option for beginners. These funds offer broad market exposure, low fees, and potential long-term returns. By investing in a diversified index fund, you can achieve market returns without the need for extensive research.

2.4. Set up an emergency fund:

Realize the importance of having an emergency fund before investing. A cash reserve ensures you have a safety net to handle unexpected expenses and prevents the need to liquidate investments prematurely.

2.5. Practice dollar-cost averaging:

I encourage beginners to adopt a disciplined approach to investing. Dollar-cost averaging involves investing a fixed amount regularly, regardless of market conditions. This strategy helps mitigate the impact of market fluctuations and allows you to buy more shares when prices are low.

Section 3: Building an Effective Investment Strategy

Now we outline several strategies that beginners can employ to build a robust investment plan. Let’s examine a few of these strategies:

3.1. Create an investment plan:

I cannot stress enough the importance of having a well-defined investment plan. This plan should align with your financial goals, risk tolerance, and time horizon. Consider factors such as asset allocation, diversification, and rebalancing.

3.2. Perform thorough research:

While index funds offer simplicity, I  recommend conducting research when selecting individual stocks or investment opportunities. Understand the company’s financial health, competitive advantage, and growth potential before making investment decisions.

3.3. Regularly review and rebalance your portfolio:

It is advisable for beginners to review their investment portfolio periodically to ensure it remains aligned with their goals. Market fluctuations may cause your asset allocation to deviate from the desired levels. Rebalancing involves selling overperforming assets and buying underperforming ones, bringing your portfolio back in line with your target allocation.

3.4. Invest for the long term:

Do not ignore the power of compounding returns over time. By staying invested for the long term, you can benefit from the potential growth of your investments. Avoid making impulsive decisions based on short-term market fluctuations.

3.5. Seek professional advice if needed:

If you feel overwhelmed or uncertain about investing, I suggest you consult a financial advisor. An experienced professional can provide personalized guidance based on your unique circumstances and help you navigate the complexities of the investment world.

Conclusion

In this blog post, we’ve explored valuable tips and strategies for beginners venturing into the world of investing. By understanding the basics, incorporating some of my proven ideas, and following a well-defined investment plan, you can embark on your investment journey with confidence. Investing is a continuous learning process, and staying informed and adapting your strategies as needed is important. With patience, discipline, and a long-term perspective, you can lay a strong foundation for your financial future.

Investing for beginners is an exciting opportunity to grow your wealth and achieve your financial goals. Start your journey today and unlock the potential of the financial markets!

The post Investing for Beginners: Tips and Strategies for a Strong Start appeared first on One Cent At A Time.

Why Set Financial Goals?

1. Provides Direction

Setting financial goals provides a sense of direction to your financial journey. By having clear goals, you can plan your finances and work towards achieving them. This clarity will help you make informed decisions and prioritize your spending, leading to better financial outcomes.

2. Helps Monitor Progress

Financial goals are measurable, and you can track your progress toward achieving them. This monitoring will help you stay motivated and focused on the end goal. It will also help you identify any areas where you need to improve or adjust your approach to reach your financial objectives.

3. Helps Manage Financial Stress

Financial stress is one of the most significant causes of anxiety and depression. Setting financial goals can help reduce this stress by giving you a roadmap to follow. When you have a plan in place, you can focus on taking steps to achieve your goals, rather than worrying about your financial situation constantly.

How to Set Financial Goals

1. Identify Your Goals

The first step in setting financial goals is to identify what you want to achieve. Whether it’s buying a house, paying off debt, or saving for retirement, you need to have clear objectives. Write down your goals and be specific about the amount you want to save, the timeline you want to achieve it, and the actions you need to take to get there.

2. Prioritize Your Goals

Once you have identified your goals, you need to prioritize them. Consider which goals are most important to you and focus on those first. For example, if you have a high-interest credit card debt, paying that off should be a priority before you start saving for a vacation.

3. Break Goals into Smaller Steps

Breaking down your goals into smaller steps can make them more manageable and achievable. For example, if you want to save $10,000 for a down payment on a house in two years, you need to save $417 every month. By breaking it down into smaller monthly savings goals, you can track your progress and make adjustments as necessary.

4. Set Realistic Goals

Setting realistic financial goals is essential to avoid frustration and disappointment. Consider your income, expenses, and financial obligations when setting your goals. Be realistic about what you can achieve, and don’t set goals that are impossible to reach. Unrealistic goals can lead to discouragement and make it difficult to stay motivated.

5. Track Your Progress

Tracking your progress toward achieving your goals is crucial. You can use a spreadsheet or financial planning software to monitor your progress regularly. Seeing progress can help motivate you to continue working towards your goals, and it can also help you identify any areas where you need to make adjustments.

6. Celebrate Milestones

Achieving financial goals is a journey, and it’s essential to celebrate the milestones along the way. When you achieve a goal, take time to acknowledge your accomplishment and reward yourself. Celebrating milestones can help keep you motivated and focused on the next goal.

How to Achieve Financial Goals?

1. Create a Budget

Creating a budget is essential to achieving your financial goals. A budget will help you track your income and expenses, identify areas where you can reduce spending, and allocate funds toward your goals. When creating a budget, make sure to include all of your expenses, such as rent, utilities, food, and entertainment

2. Reduce Expenses

Reducing expenses can help you save more money toward your goals. Look for areas where you can cut back, such as eating out less, reducing your subscription services, or finding cheaper alternatives to your current expenses. Small changes can add up over time and help you reach your goals faster.

3. Increase Your Income

Increasing your income is another way to achieve your financial goals. You can look for ways to earn more money, such as taking on a side hustle, asking for a raise, or starting a business. Increasing your income can provide more resources to allocate toward your financial objectives.

4. Pay Off Debt

Paying off debt should be a priority when working towards financial goals. High-interest debt can quickly eat away at your income and prevent you from achieving other objectives. Focus on paying off your debts with the highest interest rates first, and then work your way down to the lower interest debts.

5. Save Regularly

Saving regularly is essential to achieving financial goals. Automating your savings can make it easier to save consistently. You can set up automatic transfers to your savings account or your investment account, which will help you stay on track toward your goals.

6. Invest Wisely

Investing wisely can help you grow your money and achieve your long-term financial goals. Look for low-cost investment options, such as index funds or exchange-traded funds (ETFs), which can provide diversified exposure to the market. Make sure to do your research and understand the risks before investing.

Conclusion

Setting financial goals and working towards them is crucial to achieving financial success. By having clear objectives, prioritizing them, breaking them down into smaller steps, setting realistic goals, tracking your progress, celebrating milestones, creating a budget, reducing expenses, increasing your income, paying off debt, saving regularly, and investing wisely, you can achieve your financial aspirations. Remember, achieving financial goals is a journey, and it requires patience, persistence, and discipline. With the right mindset and approach, you can reach your financial objectives and enjoy a more secure and fulfilling financial future.

The post The Importance of Setting Financial Goals and How to Achieve Them appeared first on One Cent At A Time.

Some of your worries can be reduced by knowing what to anticipate. This blog post will walk you through every step you need to do to prepare for getting your first credit card.

Things to Know Before Applying for First Credit Card

1. Understand how a credit card works

A credit card looks quite similar to a debit card, but instead of deducting money from your bank account, it functions more like a short-term loan from the bank that issued the card. If you don’t pay off the card each month, you can have to pay interest.

Purchasing anything with credit is doing it with the understanding that it will be paid for later. A credit card offers flexibility, but just like other loans, there are repercussions if the repayment promise is breached.

Credit cards aid in the development of good credit, which enables lenders to grant you advantageous interest rates, approve you for housing and even result in cheaper insurance premium payments.

2. How to choose the best card 

You probably won’t be able to qualify for the best credit cards, which are the ones with generous rewards and privileges, substantial sign-up bonuses, or lengthy 0% interest periods, as a credit novice.

With your first credit card, you’ll probably have to start modestly with a product designed for those with little to no credit history. Many of these cards don’t have annual fees and offer respectable rewards.

Options Include 

A student credit card

Applying for a student credit card can increase applicants’ odds of being accepted. If the credit card company rejects your application, the company will send you a letter outlining the precise grounds for the rejection. When you receive that letter, make use of the details to aid your subsequent credit card applications.

 A secured credit card

A secured card is a card that needs a cash deposit or checking account with the bank. Depending on the card, the minimum deposit ranges from $200 to $1,000. The majority of secured cards let you increase your deposit to acquire a bigger credit line.

With time you can lower the amount of money you have to put as a deposit, and eventually, you might be able to change the card to an unsecured or regular credit card.

3. Do not apply for too many cards

You face the danger of having multiple hard inquiries on your credit report if you apply for many credit cards quickly. That may lower your credit score and make you appear hazardous to other lenders, which may make it more challenging to acquire loans.

When already using credit cards it does not matter if you are using multiple cards if you are using them responsibly.

Apply for one  at a time and wait one or two months before doing so again. This offers your credit score time to recover from hard queries while enabling you to choose the cards you wish to carry in your pocket with knowledge.

4. First card should be a keeper card

A significant financial turning point, getting your first credit card also signals the beginning of your credit history. However, if you’re not careful, it might have the opposite result.

Your issuer will submit information about your credit card use each month to credit agencies, who are responsible for compiling the credit reports that serve as the foundation for credit scores.

Whether you make your payments on schedule and how much of your available credit you use is among the reported details. Maxing out your credit card and making late payments both lower your credit score.

Spend about 30% of your credit limit each month and make sure your payments are made in whole and on schedule to ensure that your credit card activity is as beneficial as possible.

But the most important factor about your first card is that it determines your tenure of credit history. I applied within the first month of reaching the USA, it was a secured credit card from BofA. I haven’t closed the card, it is a fee-free card, so my credit tenure remains at 15+ years, which is good for my score.

5. Understand terms and their significance

Federal law requires credit card issuers to make certain conditions, such as interest rates and fees, publicly available before you apply. These are shown in a table known as a Schumer box, which is often located on a credit card’s online application page.

Senator Chuck Schumer pioneered the legislation requiring the terms of credit cards to be explicitly specified in any promotional material. We honor his contribution by the appellation “Schumer Box” in his honor. 

It shows what the card will cost you, including the various annual percentage rates (APRs), an annual fee, a cash advance fee, a late payment fee, a returned payment fee, and other expenses.

6. Don’t avoid the fine print

Do not underestimate the financial consequences of failing to read credit card agreements. The most significant of them are “surprise” charges, rates of interest, and payment requirements that you might not have been aware of when you signed the credit card deal. The issue is that once you agree to the conditions of the card agreement, you are obligated to abide by them, good or bad.

The best course of action for credit card users is to educate themselves on the meaning of the major terms and clauses in their card contracts and then utilize that knowledge to take the appropriate actions to maximize the benefits of their credit cards.

7. Don’t mislead in your application

You must respond to a series of intimate questions about your life and finances during the application process.

To appear more “creditworthy,” it may be tempting to overestimate income, understate debt, or lie about other elements of finances.

If you lie on a credit application, you could face jail time and hefty fines as punishment. Because a credit card application is a legal document, it is still possible by law to accuse you of fraud for making false statements.

8. Be responsible with your credit handling

Your credit card is a great financial tool if handled responsibly. It’s crucial to develop the practice of utilizing credit wisely.

Consumers frequently use credit carelessly. When we make impulsive purchases, purchase stuff we cannot afford or maintain a standard of living much above our current means, credit cards become an issue.

Living within your means and not exceeding your budget are essential components of good credit management.

Keep a list of all the purchases you make with your credit card, so there are no shocks when your statement comes in the mail, Additionally, you’ll be able to control your expenditure. Verify that you are only charging what you can afford to spend.

9. Do not miss the due date

Missing payment dates hurt your credit score. Your potential consequences could include

Late payment penalties

These fines have legal caps that are updated yearly. The majority of credit cards have late payment penalties of up to $40, but make sure to review your card’s terms and conditions.

Higher interest rate

When a credit card payment is past due, the issuers typically impose a penalty interest rate. Many issuers impose penalties on the amount of unpaid debt at as much as 30%.

Damage to your Credit

Usually, no harm comes to your credit if you pay a day late. Lenders normally notify credit bureaus of missed payments after they are more than 30 days past due. These missed payments could remain on your credit report for up to seven years from the default date.

10. You should not use the full credit limit

Your credit utilization ratio is the proportion of your available credit that you are using. This has a significant impact on your credit scores.

Your credit utilization rate evaluates how much of your total credit limit is across all accounts you have used. Not only should you not go over the credit limit on your card, but if at all possible, avoid going any closer to the limit. 

It is ideal that credit utilization is under 30%. The lower your credit utilization ratio is, the better. By doing this, you can make sure that your outstanding balance won’t be too close to your credit limit whenever the issuer reports the status of your account to the credit bureaus.

11. Know your credit report and score

There are tons of credit cards in the market. They have widely available public data on the minimum credit needed for any particular card.

Any application for credit will be in your report and can potentially damage your credit score if you keep on applying and keep on getting rejected.

Know what your score is and apply for a card that accepts similar credit scores. Your chances of getting approved will improve this way.

12. Maximize credit card rewards

In reality, the fees paid by the merchant’s bank when you use your card to make a purchase finance credit card rewards programs.  The costs, which amount to around 2% of each purchase, are paid to the bank that issues your card finance the rewards programs.

Cash back, points or miles are the three reward types that credit cards typically offer. Depending on the card you hold, you can win different incentives.

Cashback

Most cash-back cards permit you to accrue a certain amount of cash based on your expenditure 

Points

Other reward cards offer miles or points but don’t offer cash back.

Miles

The majority of co-branded airline cards include miles in their distinctive membership rewards scheme.

13. Know if you can spend to earn the sign-on reward

In order to earn the rewards and bonuses, you need to spend a minimum amount on your card within a certain time frame. For example, Card A can have a $200 bonus if you spend $2000 within the first 30 days of account opening.

Check your spending power before applying for that card. If you can’t spend $2,00 within 30 days you will not earn the bonus.

14. Know how to deal with credit card fraud

If someone uses your credit card details fraudulently:

It’s not your money at risk; it’s the money of the credit card corporation. You’ll have plenty of time to contest any erroneous charges and take them off your unpaid balance, usually immediately.

How to Respond If You’ve Been a Victim of Credit Card Fraud

Alert the Issuer of Your  Card.

You should add a fraud alert to your credit report.

Change your passwords and check your card accounts.

Inquire with the credit bureaus

15. Check with your family for additional cards

Check if your partner or your child needs a card to build their credit, some cards, especially from AMEX report additional cardholders to credit bureaus. Also in order to make sure of the minimum spend requirement towards the sign-on reward it’s advisable that multiple members of the family use the card to increase spending.

The post 15 Things to Know Before Applying for First Credit Card appeared first on One Cent At A Time.

To help you set yourself up for a year-long journey of self-efficacy, we’ve provided you with 51 options for new year’s goals.

Also as a personal finance blog, we are listing up actions you can take to make sure you are positioning yourself for financial success. 

 Save this post,  and make notes.  We would also suggest you keep a  track of your new year’s goals by using a planner.

51 New Year Goal To Achieve In 2023

1. Make a budget

The key to achieving almost every other financial objective is budgeting. Making a budget is an excellent way to keep track of your cash flow and expenses. Sticking to one helps you with planning what you would do with the surplus. Using budgeting software on your smartphone is one of the simplest methods to keep track of your earnings and outgoing costs. There are several cost-tracking applications on the Apple App Store and Google Play Store.

2. Make savings a priority

One cannot emphasize enough the importance of savings in achieving financial security. If you have just started earning and have no idea about what to do with your money rather than your expenses, just start with saving for this year’s new year goals  Be strict with your expenditure so that you prioritize savings more than impulses.

3. Pay off a loan

When creating a financial strategy for the year, consider including debt settlement as one of the objectives. Start with a short-term loan that you can pay off without it getting cumbersome 

4. Increase your credit score

One of the most crucial figures pertaining to your personal finances is your credit score. Consider your credit score as a grade that demonstrates to lenders how responsibly you handle debt. This figure is taken into consideration by lenders when determining whether to lend you money and the interest rate at which to do so. Banks are more inclined to lend you money or issue you a credit card if your credit score is higher. Moreover, raising your credit score might help you save money since it can get you a reduced interest rate.

Related: How To Improve Your Credit Score

5. Open up a credit card 

Get yourself a credit card for this year’s new years goals if you do not have one, even if you do have one you can apply for a 2nd or a 3rd. Credit cards can quite be advantageous in your financial journey as you do not have to carry cash. Secondly, it boosts your credit score making money easier and cheaper to borrow.

Related: How To Pick The Best Credit Card From a Thousand Cards

6. Start saving for an emergency fund

 Investopedia states emergency funds are a financial security that creates a safety net around your family. An emergency fund is intended to serve two functions. First of all, it can aid in covering any unforeseen costs. Second, if you lose your work, it could be able to temporarily replace your income

Uncertain about the amount to save? As a general guideline, you should set aside between three and six months’ worth of spending. I personally do and recommend an 8 months’ worth of expense

Related: What is Emergency Fund, Do I Need One?

7. Buy Insurance

If you still did not buy insurance this is your sign to decide on the insurance that you want to buy. Even if insurance is based on a probability factor, this is one tool that will protect you from financial losses

Your lifestyle will determine the kind of insurance coverage you need and how much coverage you require. Health insurance, life insurance, automobile insurance, renters’ insurance, house insurance, and disability insurance are the most prevalent forms that most individuals have.

Related: Investing as a Form of Insurance

8. Decide on asset allocation

The process of allocating your investments among various assets, such as stocks, bonds, and cash, is known as asset allocation. Asset allocation analyses a portfolio to try to strike a balance between risk and return. The choice to allocate assets is a private one. Depending on how long you have to invest and your risk tolerance, each stage of your life will require a different allocation strategy.

9. Plan of investing if you aren’t already

If you have not planned about investing, start now. As intimidating as it might sound to a beginner here one cent at a time I make your investing journey as easy.

Note: It’s critical to assess your risk tolerance and choose investments that can help you achieve higher risk-adjusted returns and inflation-adjusted returns.

10. Prioritize spending money on experiences rather than a thing

Materialistic gains might give you joy, but this year try spending on experiences. Go out on a date with your partner rather than buy that sneaker you’ve been eyeing for a while.

11. Plan on your retirement

If you are in your twenties and thirties retirement might sound like a joke to you now. But thinking about your retirement objectives and how long you have to achieve them is the first step in retirement planning. It takes decades to get to the position of financial cushioning that will lead to a fun – comfortable retired life.

12. Improve your financial literacy

When it comes to making prudent financial decisions, increasing your financial literacy is a sensible step that is sometimes disregarded. Financial literacy plays a major role in your capacity to handle your money effectively. Its objective is to assist people with a fundamental grasp of finance to have a better awareness of the complexities of budgeting, tax minimization, and investment

13. Explore  a side hustle

With all the financial goals on the list like saving, investing, and paying off a debt does it not become overwhelming for your current paycheck? Here is where a side gig comes into play. A well-researched side hustle can ease you off with an extra source of income

14. Nurture an interest

Remember that wish you had while in high school to be able to play a stringed instrument? Start it this new year. 

15. Learn a new skill

Constantly upgrading yourself will help you boost your confidence and your self-worth. Try learning a new skill, be it related to your career like upgrading your excel skills, or something very different like baking.

16. Make a vision board

Have visual interpretations of all the goals and intentions that you wanna achieve this year as a vision board. Save that up as your screen saver in your digital devices so that you can take a look at it daily and be reminded of your goals.

17. Practice mindfulness

When our mind wanders, we get disconnected from our present selves and quickly become preoccupied with compulsive thoughts about the past or worry about the future. And it stresses us out. The ability to be completely present, and aware of where we are and what we are doing,  is mindfulness. This year start practicing mindfulness in everything that you do.do it in the present, with no intentions of the outcome, no worries about the future

18. Start journaling 

Journaling is a great way to keep track of the time that is passing. If not every day, journal about the days that were a highlight in the week. Keep a record of the day you had a good experience and also the day you felt you could no longer move forward

19. Get into a discipline 

Discipline is very important to keep the good going. Without discipline, no amount of life coaching can pave way for your well-being. Whatever you decide to do, you have to keep on doing it. Day one it is the motivation that strikes the match, rest discipline is what keeps it going

20. Start making to-do lists the day before

Did you ever realize how much time you just took just to decide the tasks that you have to accomplish for the day? Make this habit a thing of the past by making up your to-do lists the before.

Related:101 Ways to Beat Procrastination and Increase Productivity

21. Have a task timeline ready for about the upcoming 6 months

Have a detailed timeline of the major tasks you have to take over in the period of 6 months to a year. Use a calendar app for this purpose.

22. Think less

Life is gonna be as it will be, no given amount of thinking can change certain things from happening or not happening. Effective planning can make the curve lot smoother but uncertainty is always one step ahead. So this new year make it a point not to think too much and spiral into the web of feelings just to degrade your own mental health

23. Reward yourself

Reward yourself for every little achievement that you do. It always doesn’t have to be extravagant. Had a long predictive day, reward a cozy night and Netflix and chill to yourself 

24. Brush up your soft skills

Be it the professional aspect of your life or the personal, soft skills are what make you stand out from others. This year brush up on yours. 

25. What do you not want to repeat? 

In a list of what are the things that you want to achieve this year also have a column of things that you do not want to repeat. For example, avoid a bad financial decision you took or a certain diet that did not work out for you.

26. Be grateful

Be grateful for what you now have, where you are in life, and for whatever you made out of yourself. and who you are at this time rather than stressing about what you could be.

27. Travel bucket lists

This year have a bucket list just of places that you want to visit.

28. Try  a new restaurant each month

Try out a new restaurant each of the 12 months of the year.  Explore different cuisines from all over the world 

29. Self-care

Self-care and self-love in this era of distracting and misleading social media are so important to keep the mental equilibrium in place. Take care of yourself, love yourself a little more than the past year, cut yourself some slack, and take it easy

30. Eat healthily

This new year aim to eat healthily. Include more greens and fiber for good gut health. Cut off processed and packaged food and switch to organic at-home prepared meals.

31. Make your own breakfast 

Ditch the habit of ordering takeout whenever you’re hungry. Start prepping your own meals starting from the most basic like breakfast. Not only will it reduce the cost of meals but also is a lot healthier option

32. Cut down on caffeine after sunset

Avoid intake of caffeine after sunset for more ease in falling asleep

33. Commit to a healthier sleep cycle

Get your circadian rhythm straightened, sleep by 11 pm max, and try to get up early.

34. Practice body positivity

With all the pressures from society to look a certain kind, fit a certain box be kind towards yourself. Be positive about how your body looks and be grateful for its functions so complex for your life processes

35. Get into motion

With all the sedentary lifestyles that we are leading it isn’t a surprise we develop lifestyle diseases at such an early stage of our lives. Take out time each day to be in motion.  Target to walk 5000 steps daily, do some freehand exercises first thing in the morning, stretch out, do strength training, take the stairs, etc.

36. Make meditation a way of life

Try guided meditation to manage stress and focus better

37. Don’t neglect your dental health

Though you might be reluctant to do your health screenings at regular intervals, dental health awareness is really not as par. This year resolute not to neglect your dental health. With regular brushing and flossing, also make it a point to visit the dentist’s office once in a while

38. Dedicate some time each day to cleaning  chores

Assign 15 minutes each day to cleaning. Cleaning each day contributes to a clutter-free space. A clutter-free space reflects a clutter-free mind. 

39. Cut down on screen time

Apart from your what’s a necessity try and cut down on screen time. 

40. Reduce your waste

Go for sustainable living by reducing waste. Cut on the packaged food and shift to fresh foods that are home-cooked for better health benefits and also reduced plastic consumption

41. Avoid the negative influence

Stay away from people and environments that have a negative influence on you, make you worry, and make you feel any less. 

42. Relax 

Find time to unwind. Relax 

43. Constantly learn

Keeping yourself open to learning lifelong elevates you as a person. This year make it a point to keep a receptive mind so that you constantly learn something

44. Get more organized

Planning ahead and organizing your work will increase your efficiency and productivity. You may accomplish significant goals and objectives by maintaining good organization and creating successful strategies.

45. Get better with stress  management 

Without proper stress management, your body could be on high alert all the time without it. Chronic stress can eventually cause major health issues.

46. Do an electronic declutter

Once in a while go through your electronic devices and make them free of any united files applications. Not only will it save up space but also lets you manage and access files on  your devices better 

47. Focus on relationships

This year focus on relationships a bit more than usual. Put your phone to good use by calling up your friends and family. Make time for each. Value the importance of family in your life.

48. Inculcate a reading habit

Reading gives you life lessons. It sharpens your thinking and increases your creative ability. This year aim to finish off one book each month

49. Set intentions rather than tangible goals

A number-oriented goal is what leads to pressure and therefore anxiety and fear in case it is not achieved. This year try setting intentions like you want to get healthy and not burn a certain number of calories. It is a much more holistic approach

50. Renovate

 This year plan to renovate your study space or your kitchen. Give it a new look and a new feel to your old self.

51. Revisit your goals list to tick off

And lastly, keep on revisiting this list to tick off the goals you have achieved on the way. Be proud of your accomplishments.

The post 51 New Year Goal Ideas For 2023 appeared first on One Cent At A Time.

On top of this, looking at where your money goes can help you to identify any problem factors that may lead to overspending.

Card Payments

Card payments can be incredibly convenient, whether you make a payment online or use a credit card terminal within a store.

Some of these might involve personal purchases for your home or family, but others may be run through a business account, such as buying materials from a supplier.

Keeping these cards separate, so that you don’t use personal money for your business, or vice versa can be a good place to start.

You may also want to keep your money in a savings account, only transferring your allocated spending money to your main account.

This way, if your card is declined, you know you need to put some items back, rather than finding out later that you overspent.

Cash Payments

Paying by cash can be a great way to stop yourself from spending too much money.

Unlike with using a card, you will be able to see exactly how much you have in your wallet, so when it runs out, you know that you have reached your limit for that day or week.

However, one of the downsides of using cash is that there is no means of getting it back should it become lost or stolen.

This is another reason why leaving excess money in your account or secured at home, can be preferential to taking it all with you at once. 

Spreadsheets

When it comes to any type of spending, you might also want to create an expense spreadsheet each month.

This can allow you to view how much money you gained that month, from work, support payments, or even a pension, and then compare it to your outgoing costs.

Extensively listing everything that you spent money on, from large mortgage or rent payments, right down to a single pack of gum, can help you see how you allocated your money.

You may find that a disproportionate amount went on frivolous items, such as expensive coffees, or because you kept forgetting your lunch.

From here, you can then figure out what needs to be worked on, what to try and avoid spending on, as well as potentially what caused you to spend excess money in the first place.

Tracking each of your spendings doesn’t mean you need to stop buying luxuries or to save every single bit of money you have.

Instead, it is about making sure that you are using your money sensibly, paying bills and putting savings aside, having some fun, and making sure that you reach your next paycheck without struggle.

The post How Can I Keep Track of My Spending? appeared first on One Cent At A Time.

As with your physical health, a better set of habits can strengthen your financial health. You need to master those skills and habits. you need to acquire that mindset. Only then you can effectively manage your finances on a day to day basis.

Even with all the skills and habits, often we do better when we have a tool in hand. Finding personal finance problems and their cure becomes easier when we use a personal finance tool.

There are many free personal finance tools in the market, Yodlee, mint, quicken, etc. So, using one of these free tools is perhaps the most practical advice I can give you.

Lately, I have been using Personal Capital, a free tool to manage your income, spending, budget and investments. You can read my full review of personal Capital. I suggest you start using personal Capital to see much needed improvements in your financial management skills. I never realized I was paying high fees for 401(k) plan, till I browsed through Personal Capital alerts. Among all the tools, this is most robust, secure, useful and easy to understand.

Now let’s go through the essential habits of personal finance.

50 Habits of Personal Finance

Base your financial practices on these principles. I am sure you’d get success. Even if you don’t get a million dollar in your bank account you’ll earns elf-respect and confidence that’d be worth many a million dollars.

1. Spend less than what you earn.

2. Practice simple living and consume less, get rid of clutter.

3. Try to earn more and invest the incremental value for faster financial freedom.

4. Pay-off credit cards in full every month. Use credit cards wisely.

5. Spread your risk by diversifying your investments.

6. Save as much as you can.

7. Prepare a budget, and stay within.

8. Use every stuff you buy, don’t buy things you don’t need.

9. Pay all your bills on time.

10. Always shuffle your investments, take out money from investments with lowest return and re invest regularly.

11. Be prepared to adopt forced hardship to avoid debt or to become debt free. You can also live within $10,000 a year.

12. Never miss a good opportunity to spend your money.

13. Consume less and create more.

14. Control you impulse buying habits.

15. Teach your kids money as early as possible.

16. Go cheap on vacation expenses and rich on creating experience. 

17. Keep your money safe in bank, not under the mattress.

18. Take care of PC security when dealing with online financial accounts. Dispose off computers safely.

19. Involve your family in financial planning.

20. Set long-term and short-term saving goals and prioritize them.

21. Utilize employee benefits as much as you can. Match 401 (k) contribution to the maximum.

22. Less clutter and more space at home is good for health and money.

23. File your tax returns on-time every year.

24. Be truthful while filing taxes. Do not evade.

25. Earning money illegally is a bad karma.

26. Family should come first before money. 

27. Health should come first before money. 

28. Keep track of your net worth regularly.

29. Always have a sizable and accessible emergency fund.

30. Manage your own money, avoid hiring experts, only you can take best care of your money.

31. Have a co-signer or co-owner in your investment accounts and checking accounts.

32. Always have a beneficiary on every financial account. Don’t let your money be orphan when you die.

33. Set your retirement goal, age and $amount, save for retirement.

34. Don’t borrow money unnecessarily.

35. Earn money by doing what you love, you will automatically be earning more.

36. Never cut back on things you cherish for.

37. Pay your Bills on Time. 

38. Home cooked meal saves money compared to dining out, remember some meals can be prepared even in 5 minutes, so you’ll always find time to cook at home.

39. Keep on learning, work hard, be a valuable employee, to not get fired.

40. Switch jobs to get a raise.

41. Earn extra money on side if your time and family permits.

42. Remember for every millionaire, there are a million starving. Help the poor. Give!

43. Be and feel rich socially, emotionally and spiritually. You don’t have to be that rich monetarily any more

44. Be happy and productive at work. Percentage of happy people among rich and poor are equal, so being rich doesn’t always bring happiness.

45. Get the education that makes you happy and increases your earning potential.

46. Remember that most important things in life are free, happiness, peace, friendship, love, etc.

47. You only need money till you are  alive, don’t just accumulate, give as well.

48. A smaller family requires lesser maintenance cost, when you are cash strapped put off family expansion plans.

49. Losing weight saves money. Obesity increases consumption, spend and health risks.

50. Always be insured for your health, home, auto and life. Insurance keeps your wealth safe and protects from disasters.

Hope many of these resonate with you. Some you may have been practicing already.

How many of these you follow or plan on to follow, readers? 

The post 50 Habits of Personal Finance appeared first on One Cent At A Time.

A few of the mutual funds I bought between 2003 and 2005 got almost tripled their value before I sold them off. I had mentored people towards their first investing since then, A little disclaimer, I am not a financial expert and even I don’t take my advice for granted, always consult with someone you trust before taking any of the steps I mentioned below.

The following ideas are lessons I learned along my investment journey.

With wise investment, we grow gradually, One Cent at a Time. We can’t become rich overnight, we succeed slowly and steadily.

If you have come here for getting an instant investing success formula, you will be disappointed.

Note: Often we do better things when we have a good tool at our disposal. Finding investment problems and their solution becomes easier when we use a personal finance tool. There are many free personal finance tools in the market, Yodlee, mint, quicken, etc.

Lately, I have been using Personal Capital, a free tool to manage your income, spending, budget, and investments in a single app.

You can read my full review of Personal Capital. Especially I was impressed by the fee analyzer tool it has, the fees analysis helped me shuffle a few of my mutual funds to lower the fund fees.

For the record, I saved over $100,000 potential fees in my retirement fund following personal capital investment transfer recommendations.

There are many more investment options today than there were a few years ago. Cryptocurrencies and Forex have captured a lot of investment market share today.

I’d like to start with a brag about my decision to invest in a P2P loan instrument.

P2P loans are an investment you make by lending money to individual borrowers.

The same way you loan out to relatives and friends.

The difference is, you give small amounts to various borrowers, which are managed by loan brokers (Prosper, Lending Club, etc).

Brokers take a commission on every sale and also a percentage of the lender’s earning.

My Investment with Prosper grew by 6.72% year-over-year till I pulled money out a couple of years ago.

Compare that with a savings account rate of less than 1% or a three-year CD rate of 1.6%. P2P lending is a little riskier than those options but it’s not as much as in stocks.

Here are 20 investment strategies for beginners

1. Start now; there has never been a better time to start.

Don’t think of getting a better-paying job first, you can save from whatever you are earning.

If you are used to procrastinating that day never comes.

Start now, with the little paycheck that you have.

The sooner you start, the better your investment will be when it matures

2. Get expert advice; they can take you through all the investment options that are available for you.

You will be able to learn which ones are the best for determining how to reach your goals and so forth.

Having made a choice, you will then be made to understand how and where your money is being invested. One free way to get an investment planner is through Personal Capital.

Open an account with them and link your investment accounts.

If your total investment is above $100,000 you’ll receive regular free consultation and portfolio checkups by their certified financial planners.

I get free consultations every year along with my personal capital account. Here’s my complete review of the tool.

3. Start simple; having been told of the options you have, it is a good idea to start with the simplest ones as you learn the rest of them in due course.

You can make mistakes at the beginning, so start with a small investment, a $100 maybe. Buy stock or an ETF. Just start and cross the hardest barrier.

4. Know your goals; What are your investment goals?

This will go a long way in deciding who to invest with and how your money will be invested.

You will know when you will be getting your returns and the estimate of what percentage it will be. Investment is different from savings; investment is long-term while saving is short-term.

People invest for college, retirement, etc.

5. Know the investment vehicles; What will you invest in? You can invest in 401k, brokerage accounts, college saving funds, cryptocurrencies, and so forth.

Some of these have tax breaks that will make them an advantage to you. You can invest in stocks, bonds, mutual funds, and real estate

6. Open an investment account; once you have decided on the investment, opening an account will be as easy as signing a form and getting funds into the account.

Have a reliable platform to buy/sell your investments. I use TD Ameritrade and Charles Schwab accounts, which offer sophisticated analysis capabilities for every level of trader and the ability to back-test and paper-trade ideas before risking even a cent.

7. Consider target-date funds; this is a great option for someone who doesn’t know what to invest in yet.

One of the reasons this could be the case is because of the many options that you are bombarded with when you want to invest.

Target date funds are a mix of many investments that include stocks and bonds.

When you invest in this, your money will be invested in less volatile investments as you age and get to your retirement age.

They aren’t exactly flexible but in case you are not sure where to start, this would be it.

8. Start auto investing; this should start immediately, through regular contributions from your paycheck and so forth. be sure to contribute something you can do without every month-not everything in your paycheck.

Most brokerage accounts support automatic monthly investment options.

9. Develop a hands-on approach. Commonly, many people think that all you have to do with investments is invest and leave it alone.

It is important however to track your investments and check to see that your investments are growing. It doesn’t mean that you check every week, but once in a year or six months would be good enough.

10. How much do you want to invest in the start? This will go a long way in deciding how you are going to handle your budgets and any increments you will make your investment when the time comes.

11. Make it a habit; it’s an investment you have…you have to increase it accordingly as time goes. You cannot just sit back and relax or forget about it.

12. Take baby steps. Since it is an investment, don’t expect that anything much will happen soon. Take your time to learn about the other investment options and invest your money in them.

13. Know packaged mutual funds; this is an option for beginners to think about. They can be less risky if you want them to, or volatile depending on your choice.

The transaction costs are very low and every fund is managed by portfolio managers who rebalance your portfolio to make sure the proportion is consistent with your investment

14. Pick stocks wisely; You can’t time the stock market accurately. Stocks are a great option and do not require a lot of capital. If you are going to choose wisely, you will have a stable and predictable income.

You can hire someone to help you with choosing stocks and pay them in the long run but you can choose it as you learn in the process.

Don’t buy stocks on impulses, like after reading a related article on alphas and the fools.

15. Take time to learn, buy some books and strategize if your investing knowledge is limited.

Do some online research and check out the companies you are interested in. Make sure you are aware of their earnings, their customers, etc

16. Play safe; place a margin of safety, don’t do it too much as you will not do anything.

17. Avoid impulse investing; Take your time, consult with experts before buying a fund or stocks.

18. If you are in debt, do not go overboard with investment. Although I personally do not prefer investing any money till high rate loans are paid off, I see people investing in learning while paying off their debt.

If you are just out of college and have a large student loan to pay off.

You can certainly set aside a small sum for investing, while a majority of your income goes for loan repayment.

19. Beat inflation; Whatever you invest in, try to beat the inflation rate, or your wealth actually loses money over time. Putting your money in a savings account is not an investment.

20. Create an emergency fund first, before you start building your investment empire, create your emergency fund, and don’t forget to create an insurance cushion to protect your money.

Can you share your stories about when you first started with investment? What mistakes you did and what worked well for you? What are your investment strategies for beginners?

The post 20 Investment Strategies for Beginners appeared first on One Cent At A Time.

It’s often a result of a lack of credit history. It becomes hard to build an identity in a country where they want to meet their goals. It’s why building a credible credit history is essential for setting up a life in the USA.

You need to understand how credit system works in the USA

But first, what is credit? Simply put, credit refers to the borrowing capacity you have. It’s a summary of your financial behavior and decisions. There are many times when your credit score can either make or break certain important financial transactions. 

Having a good credit history allows you to get loans and other forms of credit easily. If you have good credit, lenders often consider you to be less of a risk, as you would be able to pay back the loan more quickly and on time. On the flip side, if you have poor credit, you may get fewer options. But having zero credit history is bad for you, too.

As such, you must do what you can to build your credit score, especially if you want to gain access to other financial products like car loans or home mortgages. There are several companies that specialize in helping people establish their credit scores, or can give you advice on how to improve your overall credit profile.

A vast majority of your history depends on your ability to repay your loans. So, naturally, you need to loan out to prove that you can pay off loans.

So you need to take out loans first. The based way is to get a secured credit card in your name or becoming an additional user on somebody else’s credit card.

Here are tips for establishing a credit history without the use of a credit card.

Acquire a secured credit card 

Every new immigrant faces the challenge of establishing a credit score. That’s not all. It might be challenging to get a co-signer. However, don’t despair!

You can begin by obtaining a secured credit card. It will enable you to establish a credit history without having to use the traditional credit card.

To get a secured credit card, the lender offers you a credit card immediately you make a specific spending limit.

You ought to deposit in the bank account before getting the credit card. It’s essential as it plays the collateral role as well as a spending limit.

You must note that before getting the credit card, the issuer will verify your income source. When you have a stellar secured credit card, you will be building a good credit score. With time you will acquire a regular credit card.

You ought to inquire and make sure the credit card issuer reports the payment to credit bureaus.

Pay the rent on time 

Did you know that late rent payments can tarnish your credit score? You must pay rent on time as the landlords often report the amount to credit bureaus.

You can decide to pay rent via electronic rent services. It’s because they always report rent payments to rent bureaus. Thus, you get to establish your credit history.

Read these statistics to better understand how you can build a good credit history.

Pay bills on time

Your utility bills, medical bills, even the traffic or parking tickets, treat them with urgency and pay them off.

While paying them off doesn’t increase your credit score, but it can crash your history if not paid.

Having a secured credit card alone can start boosting your credit history. Within a year or so all credit related concerns should be gone, provided you paid your credit card bills on time all along.

Acquire a credit builder loan 

Did you know that savings secured installment loans or credit builder loans always aid immigrants in establishing their credit history?

It’s because they make loan arrangements with banking partners. After that, they offer loans to qualified immigrants as well as individuals with legitimate SSNs.

You can take this opportunity to enroll with expert debt relief institutions to repay all your debts fast.

It’s easy to realize the American dream with the right steps at hand. Get credit cards for no credit to start building a credible credit history.

If you want to establish a good credit history, you also need to know what factors go into determining your FICO score.

These factors include your payment history, outstanding debts, number of credit accounts, and whether you have filed bankruptcies in the past.

In the process of building your credit score, you should also make it a habit to check your free credit reports from all three agencies—Experian, Equifax, and TransUnion.

Then, if you’re confused or are concerned about inaccuracies in your report, you should contact the agency immediately to correct it.

Summary

So you should try to build your credit by following these steps

1. To build credit you need to take a credit, you can do it by a secured credit card, signing up as an additional user as someone else’s credit card. Taking up a credit builder loan
2. You need to give it a little time; 6 months to 1 year and have to continually payoff your bills – of any kind, every month.

The post Tips on How Immigrants Can Establish a Credit History appeared first on One Cent At A Time.

Many Americans have less than $1,000 in their savings account—hardly enough to subsist on should they be out of work for several months. An emergency fund should consist of about 3-6 months’ worth of expenses, or so the experts say.

Why?

Because anything can happen at any time, and you’ll still need to provide for yourself and your family.

Let’s look at a few ways you can quickly boost your emergency fund so you can reach that 6-month goal.

1. Sell A Luxury Item

The first tip is quite simple: sell something! It can be gold/diamond jewelry, a cell phone, a car you don’t use, anything you can afford to part with.

Often, we get hung up on our stuff, but at the end of the day, it’s just stuff!

You can part with just about anything and still live, but you can’t live off of no income should you be put out of work. It’s time to weigh the priorities against one another and make the right choice

Maybe you have a collection of old baseball cards worth a lot of money.

Maybe your grandfather left you some rare collectibles that you can sell for quick cash.

Or, maybe you just don’t need the newest iPhone and would rather have money in your emergency fund.

Whatever the case may be, there’s likely to be something around your house you can sell.

Most items don’t hold their value over time (like vehicles), but others increase as time goes by, and collectibles can be worth a pretty penny.

There are quite a few second-hand selling apps you can download.

2. Ditch Bad Habits Like Smoking

Vices like smoking and drinking are the bane of financial progress.

Smoking is expensive in itself, but the consequences of a daily smoking habit can be even more costly in terms of medical bills, your home and car value, and your personal effects.

Cigarette smoke damages surfaces, upholstery, and most certainly the human body.

An average pack of cigarettes is about $7 but can cost more or less, depending on your state.

Either way, at 2-3 packs per day, a heavy smoker is spending a lot of money each month that could be deposited into an emergency fund instead.

If your car breaks down, your house catches fire, or you’re suddenly out of work, cigarettes won’t keep you alive and working!

Tobacco less alternatives are available for those looking to quit, and there’s an endless community of support available to smokers online.

With cessation apps, encouragement from those you love, the support of the non-smoking community, and tobacco less options, you’ll be on your way to a smoke-free life in no time.

Other vices like drinking and drug use or gambling are also a good consideration.

Each of these habits has a negative effect on your life aside from the cost, making the overall impact even more impressive.

3. Do A Quick Job Or Project

Maybe you have specific skills or you’re just good at general labor; whatever the case, there’s probably a quick job in your area that you can do.

Sites like Craigslist will post “gigs”, or short-term projects you can do to earn some extra cash.

Quick jobs can also open up a world of opportunity since you’ll be meeting new people and showing off your skills.

Even if you only earn a few hundred extra dollars for the entire project, that’s a few hundred dollars you didn’t have before you started.

And, you guessed it—that money goes right into the emergency fund!

A few hundred dollars can mean the difference between missing rent, starving, or falling behind on your bills.

Remember that building up an emergency fund takes time.

You can’t (and won’t) do it overnight, unless you hit the lottery or suddenly inherit millions from a rich relative; both of which are highly unlikely.

4. Take Up A Second Job

This might seem daunting, but taking a second job doesn’t have to mean working in a factory or a fast-food establishment.

Jobs like Uber, DoorDash, GrubHub, and other ride-shares/delivery services allow you to work on your own schedule, at your own pace.

You’ll earn money while driving around during the evenings and delivering people and food.

Or, you can start a website or blog, or start making crafts. There are literally millions of different options for taking up a second job from home, but if you’re feeling stuck, here’s a list of possibilities.

The post 4 Ways to Add Money to Your Emergency Fund Fast appeared first on One Cent At A Time.

Beginner investors are often sucked in by wild claims of huge profits for very little effort. But for every Instagram influencer showing off his Maserati and piles of cash, there are thousands of people who lost their pants when they misunderstood the power of leverage.

One needs to learn a lot and they should create some kind of an investment strategy to succeed.

Now, let’s see the 6 most common mistakes beginner investors make.

Not Practicing Enough

Demo accounts are there for a reason. If you decide to dip a toe into a volatile market like Forex, it would be really stupid not to practice with a demo account first.

Practice makes perfect. The more time you spend tweaking your trading strategy, the less likely you are to lose a ton of money.

Take your time learning the intricacies of whatever platform you decide to use.

Learn how everything works, so you don’t get caught out when put under pressure. Some types of trading require split-second decision-making.

This is not a great time to forget how to do something crucial.

Listening to So-Called ‘Experts’

There are a lot of people out there who claim to be experts in all types of investment.

Sadly, a lot of them are only experts in fleecing individuals out of their life savings.

Never be sucked into investing your money in a dubious investment scheme by a telesales con artist.

Don’t pay much attention to hot stock tips on social media, either.

The only way to make sensible investment decisions is to do your own research. Investigate companies you are thinking of investing in.

Learn more about different investment vehicles, so you can make an informed decision based on facts not fiction.

Chasing Losses

In some respects, investing is like gambling, so it is hardly surprising that newbie investors end up chasing their losses when it all goes horribly wrong.

Never get sucked into the idea of trading to recover losses.

It’s always a bad idea. If you make a bad decision and lose your investment, take a step back and consider what went wrong and why.

Investing further money in the hope of recouping your losses will only lead to a bigger loss because you’re panicking instead of thinking rationally.

Investing Money You Can’t Afford to Lose

This one is a no-brainer really, but it’s surprising how many inexperienced investors trade with money they can’t afford to lose.

Sensible investors only invest using disposable income. This is money they don’t need to pay the bills or fund their retirement.

If they lose the money, it’s unfortunate, but not a disaster.

If you decide to try investing, use some of your vacation savings or a slush fund you don’t mind losing.

That way, you won’t end up in serious debt if you make a bad decision.

Not Diversifying Your Portfolio

Sensible investors diversity their investments, so a significant drop in one market doesn’t cripple them.

Look at buying a wide cross-section of investments. Spread your money over different asset classes and share classes, to spread your risk.

Invest in gold and silver along with stocks, bonds and ETF’s. There are many other alternate forms of investments.

Trading Too Often

Trading night and day is bad news.

Take your time and think carefully about each trading decision you make.

Get a good night’s sleep before you start trading, so your mind is fresh.

Consider trying mirror trading, so you can learn from the experts. This is a great way to dip your toe in without too much risk.

The post 6 Common Mistakes Beginner Investors Make appeared first on One Cent At A Time.