5 Investing Tips for People Who Know Nothing About Investing

Yes, we’re here to share a boring article about investing tips. But we think it’s worth the three minute read!

These days, you can hardly open your browser without being confronted by a headline about making $1 million in a year or quitting your day job to travel the world. It all seems too good to be true. All our lives we’ve been taught that the keys to success are dedication and hard work, but now we’re seeing people increase their wealth with savvy investments and other passive income streams.

So the question becomes, how do they do it? And how can those with little knowledge of investing start off on their journey? To help you take that first step, we’ve compiled our favorite investing tips. While we can’t guarantee you’ll be rolling in the dough by following these investing tips, we do think they can make meaningful improvements to your financial situation!

  1. Become financially secure.

It might seem like a no-brainer, but it’s important to be honest about whether your current salary and expenses provide enough leftover income for you to invest. You should be ahead of all of your monthly bills and have several months’ worth of income saved in an emergency fund before the thought of investing crosses your mind. Once you’ve done that, you can begin to figure out your long-term financial goals and how much extra cash flow you can contribute to investments. In the meantime though, keep reading to learn about options for investing smaller amounts of money.

  1. Set financial goals.

You’ll be in a better place to decide what type of investments are right for you once you’ve determined your long-term financial goals. What is your motivation for investing? Are you trying to save for a second house, retirement, or higher education? Determining these long-term goals will help you figure out which investment options best suit your needs, and it will help you come up with a reasonable timeline for achieving your goals.

  1. Pay off any high-interest debts.

Investing can seem attractive when you’re trying to get ahead of your debts, but it’s still a risk best taken when you’re financially stable. High-interest debt can be extremely costly, so take a look at your current debt load and make a concerted effort to attack the debts with the highest interest rates.

  1. Take advantage of employee retirement options

There are several types of retirement plans, such as a 401(K) and an individual retirement account (IRA), but we’ll spare you the details for now. The first thing to know is, don’t pass up your employer’s matching program. In short, employers often contribute funds to match a percentage of what you are contributing to your retirement account, so taking advantage of these offerings at your job is a great way to build financial security. And you can leave most of the legwork to the professional investors who manage your account.

  1. Start small.

Investing can seem intimidating to those of us who are unfamiliar with it, but with advances in technology, it is becoming easier and more accessible to those of us who are just starting out. You can start off small by investing an amount that you feel comfortable with; it can be as low as $5. Apps like Acorns and Stash are great for passive, first-time investors. By linking with your bank account, you can set up recurring daily, weekly, or monthly investments, and you can boost your investments by transferring more funds at any time. Stash is less hands on and provides a portfolio of exchange-traded funds for you to select from. It’s a great option for new investors or those who want guidance on where to invest their money.

See, that wasn’t so bad was it? Now it’s time to put these investing tips into practice!

 

Disclaimer

The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from the website owner – Meed. Meed is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the article information relates to your unique circumstances. Meed is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.

8 Money Tips from Millionaires You May Never Have Considered

A few of these money tips simply may be reminders, while others may be things you’ve never considered. Millionaires make being rich look easy, but in reality many of them have long-established habits in place that help them retain and increase their wealth.

Some of the richest people in the world started from nothing, so don’t be discouraged if you’re in a financial bind. Try these simple money tips to help change your relationship with your bank account.

  1. Pay yourself first.

Many of us are in the habit of paying our bills first when we receive our paychecks, but that often leaves us with little to put towards savings. If you pay yourself first by setting aside money for your savings, you’ll be less stressed in the long run and better prepared for emergencies. Try saving at least 10% of your monthly income to start.

  1. Keep a balanced budget.

Do you know where your money is going? Are you living within your means? Millionaires don’t get where they are by spending frivolously. Take a closer look at your monthly earnings and set some spending limits. This will help you curb unnecessary spending and save money for a more lavish lifestyle later on.

  1. Earn passive income to increase your earnings.

Multiple streams of income are a great way to increase your earnings, and passive income is one way to achieve that. You can create passive income in numerous ways. Try becoming a referral source by asking local businesses you frequent if they have a referral fee. Many will reward you with a small incentive for passing business along.

If you have credit cards, take advantage of cash back rewards. Use your credit card on essential purchases to earn airline mileage or fuel rewards. And don’t forget about SocialBoost (coming soon!) which provides the opportunity for Meed users to earn money from the bank every month just for getting friends and family to become Meed users too.

  1. Invest in yourself.

One trait that many millionaires share is that they never stop learning. Mark Zuckerberg and Bill Gates lack college degrees, but they make up for it through self-education. Make sure you’re current on trends if you’re in a specialized field and become more well-rounded by seeking information outside your expertise. This could include setting aside an hour to read each day or finding a mentor you can learn from.

  1. Be prepared for emergencies.

Not only will an emergency fund reduce stress, it will also help you avoid falling into debt due to an unexpected crisis. Make sure you have life, car and health insurance, and create another savings account for emergencies outside of that. Strive towards having at least 12 months of income set aside.

  1. Automate your spending.

You can’t miss money you never see, so try to automate your spending where possible. This will prevent you from missing bill payments and incurring late fees, but also can be used for long-term savings if you have a 401K or retirement plan at work. With the Meed app, each time you earn SocialBoost income, half of it will go directly into your Meed secured savings account.

  1. Be decisive.

Napoleon Hill interviewed hundreds of millionaires for his book Think and Grow Rich, and one trait he claims they all have is the ability to make quick, yet smart decisions. Impulsive, irresponsible decisions often happen because of “decision fatigue,” when we spend too much time fretting over simple decisions, so our brains have less energy to spend on more important ones later on.

You can reduce decision fatigue by simplifying your wardrobe or meal planning in advance. This will free up space to give financial decisions the consideration they deserve.

  1. Be grateful for what you have.

Self-made millionaire Tony Robbins makes gratitude a part of his morning routine. This may seem difficult if you’re struggling, but it’s important to appreciate what you have in order to bring more abundance into your life. Try incorporating it into your morning routine to get your day started off right.

Even if we don’t all reach millionaire status in our lives, these money tips can help us afford the luxuries of the wealthy more often. And more importantly, these money tips can help us build a foundation for long-term financial security for ourselves and the generations after us.

To learn more about how Meed can help you achieve financial freedom, sign up with us at https://meed.net!

Learn How to Earn with the Hip-Hop Stock Doc

Where did you learn how to earn? Probably nowhere. Most of us grew up without financial education.  Our schools didn’t require it.  And maybe our parents never learned either. Or they always handled the family finances for us. Then before they knew it, we were out on our own before they could teach us. So unless we’re part of a motivated minority who taught ourselves, most of us still have no idea how to manage money or build wealth.

But have no fear. With the internet and social media today, learning how to live it up for the long-term without going broke is easier than ever. Recently I chatted with Eric Patrick, a.k.a. the Hip-Hop Stock Doc, to find out how he went from pharmacist to money expert without any formal financial education. Not only is he self-taught, but he now teaches finance to others in ways that even the biggest arithmophobiacs can comprehend.

Learning How to Earn Outside the Classroom

Learn how to earn with Eric Patrick of The Black Market ExchangeAlthough Eric’s parents were bankers and he always excelled at math, his family never talked about finance much at home. It was just a few years ago when his career path changed course from medicine to money mentorship. He credits his wife for teaching him about budgeting and saving and for sparking his interest in finance.

As he learned from his wife, he recognized the need for an offensive strategy to complement her defensive strategy. He realized you can only decrease your expenses so much, but increasing your cash flow can be infinite. So, he delved into investing. However, once Eric started studying investing, he realized it was all the same old format. And it wasn’t relatable or digestible enough for the majority of people.

To change this scenario, Eric began sharing what he learned by connecting it to a universal language he and  his target audience liked and understood – hip-hop music. When people heard songs about poppin’ bottles in  the club, Eric wanted them to think about who made those bottles and how to earn an additional income  stream by investing in them.

Still, while Eric’s innovative and engaging teaching methodology in an otherwise dense and intimidating topic proves successful with his audience, I wondered what he thought about requiring formal financial education in schools, especially for those of us less motivated to educate ourselves later on. As kids, the pressure of a report card, and a parent’s wrath, is often all the motivation we need!

What About Financial Education in Schools?

Considering two-thirds of adults are financially illiterate around the globe, formal financial education requirements seem necessary to help people build fundamental personal finance skills from a young age. If Phys Ed is a requirement, why isn’t Fin Ed?

Eric says more financial components are making their way into schools, but much more progress is needed to teach people even basic financial life skills like budgeting, credit-building and doing taxes. Fortunately, educators have a wealth of lesson plan inspiration right at their fingertips with the creative and engaging tactics already used by successful financial bloggers like Eric.

Providing basic knowledge of personal finance in schools can have monumental impact, particularly for underserved communities where children do not have the luxury of being born into financial security. Future entrepreneurs stand to benefit as well since business success depends on solid money management skills.  But for those of us whose school days are over, we can always learn how to earn from people like Eric!

Other Tips

But what if you don’t like hip-hop? Or you just want more tips? Well, Eric’s financial wisdom spans a wide range. Here are a few additional pieces of wisdom he shared.

When talking about how much his wife helped increase his financial knowledge, Eric emphasized the value of having financial accountability partners. Whether it’s your significant other, your sibling, your friend or whoever, creating and sharing financial goals with someone you trust can provide major benefits even if you’ve never had formal financial education.

Also, compete with yourself to build wealth. Make it a game. Start with simple goals and then gradually up the ante.  For example, start with a goal of saving $10 in week one.  Then increase the amount for week two. Turn your goal-setting into a leisurely hobby and a habit.

In addition, today banks and other financial services providers are introducing apps and other technology all the time that are making saving and money management easier and more automated than ever.

The most important directive from Eric though is just to start somewhere. So on behalf of Eric, get motivated and go get that money!

Learn more about Eric and The Black Market Exchange: http://www.thebmex.com/team