Inside: Embrace financial growth with these top money mantras. Cultivate a wealth mindset, affirm success, and transform your finances for ultimate freedom.
Money mantras have been a game-changer for me, a morning ritual as integral to my day as a cup of steaming tea.
Rather than idly scrolling through my phone or mentally compiling to-do lists, I begin each day by affirming my financial goals and inviting prosperity into my life. This practice isn’t just some esoteric tradition—it’s a targeted strategy that’s led to a tangible increase in my bank balance.
Like the steady rise of the sun, these money mantras illuminate my path toward financial well-being. Each repetition is a step towards cementing a mindset of abundance.
Remember, wealth isn’t just about cash and coins; it’s equally about cultivating the right mindset. Let me tell you, it’s not just my bank account that’s noticed the uptick—the evidence is in the confidence with which I now manage my finances.
Plus with a growth mindset, you will improve your happiness.
Now, it is time to find money mantras that resonate with you!
Top 50 Money Mantras for Your Daily Routine
1. With the power of attraction, I will bring wealth and money into my life.
2. My income is constantly increasing.
3. I gratefully accept all the wealth and abundance the world has to offer me.
4. Money allows me to live the life I want and achieve my goals easily.
5. I am grateful for what I have been blessed with.
6. Money is just a form of energy that flows to me effortlessly and abundantly.
7. Money is a tool that lets me construct my life how I see fit.
8. Large sums of money come to me easily.
9. Every action I take takes me closer to financial success.
10. I am capable of achieving all of my financial goals.
11. Money flows to me effortlessly and abundantly.
12. I am a magnet for financial success and prosperity.
13. My income exceeds my expenses every month.
14. I am worthy of a prosperous life.
15. Financial abundance is my natural state.
16. Wealth constantly flows into my life from multiple sources.
17. Every dollar I spend circulates and returns to me multiplied.
18. I handle my finances with clarity and confidence.
19. My positive energy attracts lucrative opportunities.
20. I am grateful for the wealth and abundance in my life.
21. I make wise and profitable investments.
22. My bank account grows larger every day.
23. The universe is generous with prosperity and so am I.
24. I am financially free and independent.
25. I am aligning with the energy of wealth and abundance.
26. Money comes to me now and always.
27. Making money is easy and enjoyable for me.
28. My wealth is a positive force for good in the world.
29. Financial well-being is mine to claim and enjoy.
30. I am open to receiving all the riches life offers.
31. I am constantly expanding my streams of income.
32. My actions create constant wealth, prosperity, and abundance.
33. Every financial action I take increases my net worth.
34. I am deserving of financial success and security.
35. Money is a tool that enhances my freedom and choices.
36. My financial goals are achievable and realistic.
37. I am in control of my financial destiny.
38. Prosperity flows to and through me.
39. I release all resistance to attracting money.
40. I trust my ability to generate wealth.
41. I attract financial mentors who guide me to abundance.
42. I use money to improve my life and the lives of others.
43. I am empowered to create the prosperity I desire.
44. I am the architect of my financial future.
45. I am worthy of financial abundance and security.
46. Gratitude and generosity are at the heart of my financial affairs.
47. I am surrounded by abundance.
48. My prosperity is unlimited, and my potential is endless.
49. Every action brings me closer to financial freedom.
50. I am an excellent steward of my finances.
How to Integrate Your Money Mantra Chant Into Your Routine
Okay, now you must solidify your money mantra in your life.
Choosing to internalize and act upon these mantras requires discipline, but it is essential for their success.
Each small step taken is progress—whether it’s saving a small portion of your earnings, investing wisely, or learning new skills to increase your earning potential.
Here are some actionable ideas to integrate your money statements into your day-to-day:
Write down your chosen money mantras daily in a journal to solidify their presence in your thoughts.
Customize your phone’s wallpaper.
Use post-it notes on your mirror to keep your money mantras in constant sight.
Place your money mantras on the wall when you roll out of bed.
Keep your money mantra written on a slip of paper inside your wallet.
Put your money mantras all over as your vision board quotes.
Create real-life scenarios where you can live out your money mantras, like calmly budgeting over coffee or tackling financial to-do’s with confidence.
Post your money statement on your social media accounts including X (formerly known as Twitter).
Regularly reflect on your current beliefs, decide what needs to change, and persistently work to align your actions with your new mantra.
Recite your mantras aloud every day, be it during your morning routine or as part of your wellness practices, to constantly reaffirm your financial goals.
You want to be a money magnet as you are manifesting your goals.
The act of doing reinforces belief, and belief paired with action is an unbeatable combination. So select your mantras, make them visible, speak them aloud, and, most importantly, take consistent action toward your financial goals.
How Mantras Can Shift Your Money Mindset
Money mantras have the potential to significantly transform your financial mindset by embedding positivity and empowering beliefs about your interactions with money.
By consistently repeating these money affirmations, you reprogram your subconscious to prioritize healthy financial behaviors and decision-making.
With a mantra such as “I handle money easily and well,” you start creating instances to demonstrate this new belief in action, which serve as evidence to support the mantra.
Whether it’s as simple as calmly reviewing your budget or taking steps to reduce expenses, these actions reinforce the powerful narrative of financial competence.
As you confront and override old, limiting money beliefs, your new mantra gradually becomes second nature, profoundly influencing your approach to money management and fostering a culture of financial literacy within your family.
Integrating Mantras Into Your Financial Strategy
By repeating affirmations such as “I am financially savvy” during routine activities, you rewire your brain to adopt a more positive money mindset and proactive stance toward money management. Instead of focusing on “I am broke.”
For example, when reviewing your bank statements or setting up a savings account, declaring “I am a wealth builder” can transform the experience from mundane to motivational.
Furthermore, concrete actions back up these mantras; intentionally selecting cost-effective options at the grocery store becomes a manifestation of the mantra “I make smart money choices.”
Over time, these repeated positive affirmations, paired with deliberate financial actions, will reinforce a healthier money mindset and can lead to more informed and empowering financial decisions.
What is the best mantra for money?
The absolute best money mantra is one that resonates deeply with your personal financial aspirations and current challenges.
It should be a concise, yet powerful declaration that addresses your core limiting beliefs and transforms them into positive affirmations.
For example, if you’ve historically felt powerless over financial matters, a mantra like “I am in control of my finances and make wise decisions with ease” can be both empowering and personally significant. This is a small step to becoming financially sound.
FAQ About Money Mantras
In my experience, money mantras have proven to be an effective tool in shifting financial mindsets and attracting prosperity. Particularly to increase my liquid net worth.
By declaring intentions like “My income is constantly increasing,” I’ve witnessed the law of attraction work in my favor, with unexpected income sources materializing following my persistent use of these mantras. This practice has not only improved my financial outlook but also reinforced my belief in the power of positive affirmation to create real-world results.
For effective results, financial affirmations should be integrated into your daily routine, ideally twice a day.
Repeat your positive financial statements in the morning can set a constructive tone for your day
An evening repetition aids in reinforcing your goals before sleep.
Consistency is key, and it is often recommended to maintain this practice for at least 21 consecutive days to notice a significant impact on your financial mindset. This habitual action can help to create a powerful shift towards a more positive and proactive approach to your financial goals.
What are your money mantras?
In conclusion, adopting a set of money mantras is an empowering way to reshape your financial narrative and manifest a more prosperous future if you prefer to be financially independent.
These affirmations serve not only as daily reminders of your financial aspirations but also act as a mental reset to overcome deep-seated negative beliefs about money. It is important to take intentional action to reinforce these mantras, thereby transforming them from words on a page to lived truths.
Remember, your mantras are not quick fixes but foundational statements that require commitment and effort to bring about real change.
By steadfastly walking the path of positive financial practices, you will eventually embody the essence of your affirmations—a money-savvy individual who knows that abundance is within reach.
Your financial future is not solely determined by external circumstances; it is shaped by the mindset you cultivate and the actions you take every single day.
Now, make sure you have solid financial goals to go with your mantras.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Many people want to be rich or make a lot of money. However, most of those people will never do any research on how to make money or how money works. If you want to make a lot of money you need to learn about money! You can’t just hope and pray that someday a lot of money happens to fall in your lap. A lot of people also make a good income but have nothing to show for it. Being rich or wealthy is not just about making money but learning how to keep it and invest it as well.
Table of Contents
Do you know much about money?
Most people think they know about money and we all know a little bit about money but very few of us know a lot about money. Very few of us study money. I have a business finance degree and even with that degree I did not learn that much about money. I learned the basics about economics and inflation, and investing, but it was all pretty basic stuff even with a four-year degree in finance.
There are people who have much more education in the finance world than me and you may ask why should you listen to me? Not only do I have some education in finance but I have started, run, and bought multiple businesses in the real world and been fairly successful. Even with higher education, you miss a lot of the real-world education needed to fully understand money. I still don’t know everything but I have learned a lot over the years and like to teach others.
What are the bare necessities you should know about money?
There are so many things to know about money. I am not sure anyone could ever learn it all. Not only are there the basics of money but there are new concepts appearing all the time like crypto. If someone did learn it all it would not take long for something new to pop that they would have to learn as well. My point here is not to overwhelm you but to let you know you don’t have to know everything and don’t get overwhelmed with how many different topics about money there are.
If you learn one thing new, you are better off than you were before. We can all benefit from learning and you don’t need to know everything.
Here are some topics that everyone should know about:
Interest: Interest rates you are charged and how to make money with interest as well
Budgets: What are you spending your money on
Income: How to make money with a career, side gigs, businesses, etc
Inflation: How it impacts you and how to use it to your advantage
Leverage: How using loans can increase your returns
Debt: How using the right debt can make you money while the wrong debt can be very dangerous
Investing: Many people make a lot of money each year but have nothing to show for it, learning to invest is just as important as making money.
Cars, housing, material goods: Buying a house is usually the best choice and most people need a car but what kind of cars or houses should you buy and when?
Education: Many people assume college is the best route but it may not be the route everyone should or wants to take. Education can be very expensive and crippling financially.
These are a few of the topics everyone should know about but there are even more depending on what you want to do and what your goals are. It is not easy to learn about money and it is not easy to make a lot of it and invest it so that you grow it.
Who should you learn about money from?
The tough part about learning the ins and outs of money is there is so much information out there. There are many paths and everyone claims theirs is the right way. I will start by saying there is no best way or right way for everyone. We all have different goals and work in different manners. There are people that tell you all debt is bad and even that credit scores are not needed. This strategy may work for some people, but it is a horrible strategy for others.
Using debt on real estate made me many millions of dollars. If I had paid cash for everything there is no way I would be where I am today. Debt can also get people into a lot of trouble if they do not have the discipline to handle it. I also love exotic cars and needed to find ways to make a lot of money to fulfill my dreams. Others may have much different dreams that don’t need any money at all.
I think if you are looking to learn about money, try to learn from those who resonate with you the best. Don’t choose someone because other people are or they advertise the most. Search out people who teach about money, learn how they made their money, and if that is similar to what you want to do, see what you can learn from them. I also see a lot of people out there giving money advice who never did what they teach and make almost all of their money from giving that advice that they never lived.
How should you learn about money?
You can learn about money through many different sources:
Books
Blogs
YouTube
Social Media
Movies
Friends/Family
Courses./seminars
I have learned about money through all of these sources. I have read many books, some good and some bad but I always try to take away at least one thing from each book I read. I have read many articles on money (and written them as well). The problem with articles and videos is anyone can write them or create them who may know what they are talking about or have no clue. I love watching movies about money and success and seeing what the characters do. Again, this must be taken with a grain of salt because they are mostly fiction. Friends and family have given me a lot of advice as well but not all of it was good advice. I have also taken courses, paid for masterminds, and attended seminars to learn about money and real estate. I have even spoken at a few as well. These can be a great source of education but you must also be careful as seminars can lead to massively expensive courses with little information.
We all like to learn in different ways and I would start with the medium that works best for you but don’t be lazy and pick the easiest one. I think it is also important to find the people who resonate the best with you. If they don’t offer the medium you prefer you might have to bite the bullet and get out of your comfort zone.
Do you want to learn from me?
I may or may not be the person you want to learn about money from. If you are super conservative and just want a paid-off house, there may be other people who fit the bill better. If you are looking to make some big jumps in your finances as far as investing and earning I may be able to help you out. Nothing is guaranteed and there is no get-rich-quick scheme but there are ways to speed things up. I have used them personally and I continue to use them to this day as I am an active real estate investor with multiple businesses. I have written 10 books, most on real estate but I have one on money and mindset.
How to Change Your Mindset to Achieve Huge Success: Why your attitude and daily habits have more to do with making more money and having more freedom than anything else.
I also created an affordable, in-depth course about money as well which includes all the subjects I listed above and then some. Don’t worry, it is not thousands of dollars or even hundreds of dollars. I made it affordable because I think everyone should know about money.
InvestFourMore Money Mastery >> (just a $49 1-time payment)
Do you want to learn how to get paid to work out? If you have a passion for working out and want to turn fitness into a way to get paid, then you are in luck. There are many ways to get paid to work out, and today we will be talking about 19 ways…
Do you want to learn how to get paid to work out?
If you have a passion for working out and want to turn fitness into a way to get paid, then you are in luck. There are many ways to get paid to work out, and today we will be talking about 19 ways to make extra money while exercising.
In today’s post, you’ll learn:
Ways to turn exercise into cash
How to make money running
Apps that pay you to walk
How you can get paid to lift weights
19 Ways To Get Paid To Workout
Below are the best ways to get paid to work out. From popular money-making apps to full-time jobs, there are many people and companies that pay you to work out.
1. Sweatcoin
Sweatcoin is a free app that pays people to walk.
The app rewards daily steps with Sweatcoin currency (coins) that lets you spend the credits on gift cards (such as to Amazon or Starbucks), iPhones, Apple Watches, donate it to charity, and more. Other rewards include a free subscription to meditation apps, a free Scribd trial, wireless headphones, massage memberships, discounts on Barkbox, coffee subscriptions, gym memberships, and more.
This is one of the most popular apps in the world ever, with over 120,000,000 registered members.
2. Stepbet
Stepbet is another popular fitness app that pays you for walking. You can connect your fitness tracker (such as your Apple Watch, Fitbit, Samsung Health, or Google Fit) to the app and even set weekly step goals to keep you motivated.
The app works like this: You select a game to get your step goals, then bet into the pot to join. If you meet your weekly step goal, you can split the pot and get your bet back plus make a profit.
This app makes it easy to stay motivated to walk because you have a financial stake in it as well. This is a great way to get paid to work out from home.
3. Healthywage
Healthywage is one of the most popular fitness apps that pays you to lose weight. Once you’re on the site, you enter how much weight you want to lose. You also enter how long you’ll have to complete the weight loss goal and how much money you want to bet per month.
For example, if I wanted to lose 30 pounds in under 9 months and bet $60 of my own money, my prize range is between $588-$1,116.
There are weekly weigh-ins and support from other contestants to help you get closer to your weight loss goal. If you complete the weight loss goal, you win the prize.
The purpose of HealthyWage is to motivate you to lose weight and make it more motivating and engaging by using a financial incentive.
4. DietBet
DietBet is a platform with the concept of social networking with weight loss goals. DietBet functions essentially as a dieting game where contestants can bet money on the ability to meet their weight loss goals within a certain time frame. Winners get to keep the cash reward.
To get started with DietBet, you join a game that is basically a body weight loss challenge. You place a monetary bet into a communal pot. Whoever wins the pot (and achieves their weight loss goal) gets the divided winnings at the end of the challenge.
To make sure that everyone is playing fairly, you have to submit verifiable weigh-ins at the beginning and end of each challenge via photos or videos.
5. Fit For Bucks
Fit For Bucks is a workout app that pays people to walk, dance, run, and stay active. To get started, download the Fit For Bucks app and connect your activity tracker or Apple Watch. Then you can get moving and start earning rewards for your daily movement.
Rewards include things like free coffee, money towards fitness studios, free haircuts, and more. The goal of this app is to get people active and motivated to move more.
6. Waybetter
Waybetter makes losing weight fun by challenging you with fitness-related games. This app turns what could be described as boring into something that makes healthy habits sustainable and fun to help you on your weight loss journey.
The app works by making games that create micro goals and gives you accountability and support from other like-minded people. Games on Waybetter include things like walking at least 8,000 steps a day, drinking a certain amount of water, decluttering your home, reading books, flexibility challenges, increasing your plank time, and many more.
7. Charity Miles
Charity Miles is a little different than the other apps mentioned in that it doesn’t reward you personally. Instead, your rewards go to the charity of your choice.
To get started, download the Charity Miles app. The app connects with your phone’s Apple Health app and automatically pulls the steps from there. Any fitness devices linked to your Health app will sync to the app. The app turns all of your miles you walk, run, and bike into money for charity.
You can track all kinds of activities for Charity Miles including walks, runs, bike rides, shopping, golfing, dancing, and anything step-related.
8. Rover
One of my favorite ways to make extra money is walking dogs on Rover. Rover is an app that connects dog walkers with dog owners. I have been a Rover dog walker and absolutely loved it. I have been paid for walking dogs (which gave me exercise for the day) and spending time with really cute pets.
To get started on Rover, make a profile and list what services you offer. If you have previous experience dog walking, this is a major plus and will make you stand out from other dog walkers.
If you don’t have previous experience walking dogs, set your rates lower than other people on the app. This will make your rates competitive and you’ll get chosen quicker. These people will leave you reviews (and hopefully good ones, granted your services are great). The more 5-star reviews you have, the more you’ll stand out.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
9. Evidation
Evidation is an app that rewards people for doing things like walking, sleeping, biking, and more. To get started, download the app and connect your Apple Health, Fitbit, Garmin, or Oura app. This will sync your daily steps, which will give you points you can redeem in the app.
You can also earn points in the app by participating in surveys that ask questions about your health. For every 10,000 points you earn, Evidation will pay you $10 which you can redeem via PayPal cash and other cash prizes.
10. MapMyFitness
MapMyFitness is an app that tracks workouts including running, cycling, and other physical activities. While you won’t get paid with MapMyFitness, you can enter challenges and win monthly prizes.
Some employers or organizations will use MapMyFitness to stay active by participating in fitness challenges. These challenges backed by employers may even have rewards.
11. Walgreens Balance Rewards
Walgreens Balance Rewards is a program that gives you redemption dollars at Walgreens for doing things like walking and other fitness activities. With the Rewards program, you can link your fitness trackers which will sync your steps in the app.
You can also earn points for doing things like tracking your blood pressure, sleep, and weight.
12. Guided walking tours
If you have a lot of knowledge of your local town or a historical place, you may want to sell guided walking tours.
To get started, find a historical or touristy spot that would work well with a guided walking tour. Create your walking itinerary and highlight key points of interest and historical facts.
Start small and gradually work your way up to offering larger walking tours. This is a great way to combine your love of fitness with your love of a local spot that tourists love to visit.
Recommended reading: How to Make Money as an Airbnb Experience Host
13. Ski instructor
If you love skiing and enjoy teaching others how to do this sport, you may want to try becoming a ski instructor. This way you can combine your love for the sport and teach others how to ski as well.
To become a ski instructor, you likely need to obtain a recognized ski instructor certification. This will make you more marketable and even allow you to teach more advanced lessons.
Ski resorts are pretty much always hiring ski instructors, and you don’t need to be an expert or an Olympic skier to become a ski instructor either. This is something that you can learn to do.
14. Rock climbing guide
If you like to rock climb, then you may be able to become a rock climbing guide. Earning money doing this requires a combination of skills, certifications, marketing, and networking with other people who also work as guides.
To get started, it’s important to obtain certifications offered by the American Mountain Guides Association. This will increase your credibility and give you more job opportunities.
You may even want to connect with local and online climbing groups to market your business and get the word out that you’re a rock climbing guide. Put up flyers in your local rock climbing gym and make it easy to get in touch with you about your services.
15. Fishing guide
Making money as a fishing guide requires a certain set of skills, certifications, and licenses. It’s also important you have extensive knowledge of the best local fishing spots, seasons, and regulations.
Working as a fishing guide takes a lot of physical activity since you’re doing a lot of walking, wading in water, and (obviously) fishing.
Many places are in constant need of fishing guides, such as lodges and guide companies in Florida and Alaska.
So, you can easily network with local businesses such as bait shops, fishing gear retailers, and local hotels. The more people that know about your services as a fishing guide, the better.
16. Fitness trainer
One obvious way to get paid to workout is to work as a fitness trainer. Working as a fitness trainer involves a combination of skills, marketing yourself effectively, and providing top-notch service to your clients.
To get started as a fitness trainer, it’s important to obtain a reputable certification from organizations like NASM, ACE, or ACSM. Once certified, you can teach others how to workout in person at local gyms or offer virtual training.
You could even sell workout plans as a personal trainer, such as on a social media platform. I have seen many fitness influencers do this over the years.
17. Landscaper
Landscaping is a physically demanding job, but if you love it, you can turn it into a way to make extra money. As a landscaper, you can offer all kinds of services such as lawn maintenance, garden design, and tree and shrub care.
You’ll want to make sure that you take photos of your work and gather a portfolio so future clients can see the incredible work you can do. Word of mouth plays a big role in the landscaping business, so it’s important to give the best service to your clients.
18. Yoga instructor
If you love yoga and want to make money teaching others how to practice, then become a yoga instructor. To get started, you need to obtain a teacher certification from a reputable organization. Reach out to local yoga studios and figure out where people are getting certified in town.
Once you get certified, you can even specialize in a certain niche such as prenatal yoga, therapeutic yoga, power yoga, Bikram yoga, and more. You can teach group classes, private classes, workshops, and even online classes.
You may even want to try developing an online presence which will attract new people to your yoga classes.
19. Share workouts on Instagram
You can make money as a fitness Instagrammer once you have a strong following. It’s important to share high-quality and visually appealing photos and helpful captions. Share workout routines, fitness tips, and inspirational content to keep your audience engaged.
Once you have a good number of followers, you can make money with sponsored content, affiliate marketing, and even selling your own workout training programs and guides. You can even promote your online coaching services and work with people 1-1.
Another way similar to this is to do something similar on a YouTube channel that you create!
Frequently Asked Questions
Below are answers to common questions about getting paid to work out.
How can I make money if I like working out? How can I make money being physically fit?
There are so many ways to turn your love of working out into money. This can be done using apps like Sweatcoin or running a business such as personal training or dog walking.
Can you get paid to run? What app pays you to run?
If you enjoy running, make some extra money or get free stuff by using apps that pay you to walk or run. If you want to make a part-time income, then become a dog walker on Rover and take dogs on walks or runs.
What app pays to walk?
Apps like Sweatcoin, Fit For Bucks, and Rover pay people to walk. Sweatcoin and Fit For Bucks pay in rewards within the app, and Rover pays actual money for walking dogs. Some of these apps are available on iOS or Android devices, as well as on your laptop or computer as well.
Other fitness apps that you may have heard of include FitPotato, Runtopia, Step Younger, and Gym-Pact. I have not researched these, though.
Are there gig economy jobs that I can do while working out?
Yes, some gig economy jobs (such as DoorDash) can be done from a bike, which could be a great workout.
Can you get paid to lift weights?
While you’re lifting weights, apps like SweatCoin will count how many steps you’re walking during your workout. Besides that, you can make even more money by lifting weights by:
Competitive weightlifting and get paid via prizes, sponsorships, and endorsement
Fitness modeling
Social media and content creation (sharing your fitness tips with followers)
Offering fitness workshops
Sell weightlifting programs or training guides
Best Ways To Get Paid To Workout – Summary
I hope you enjoyed today’s article on how to get paid to work out.
If you enjoy exercising and fitness, turn that passion into extra cash by getting paid to workout. This list of ways to make extra money pays you to walk, lift weights, run, and do other physical activities that also benefit your well-being.
As you read above, there are many great apps and jobs that will pay you to work out.
What’s your favorite way to get paid for a workout?
Investing in mutual funds has become a cornerstone strategy for those looking to grow their wealth over time. With a mutual fund, you’re essentially pooling your money with other investors to buy a large portfolio of stocks, bonds, or other securities. This collective investment approach allows individuals to participate in a diversified range of assets, which might be difficult to achieve on their own.
What exactly is a mutual fund?
At its core, a mutual fund gathers money from many investors to invest in various securities. These can include stocks, bonds, and other financial instruments. The beauty of mutual funds lies in their ability to offer immediate diversification, spreading out the risk across different investments.
When you buy a share of a mutual fund, you’re buying a piece of a large, varied portfolio. For example, a single mutual fund share could include small portions of companies like Apple, Microsoft, and Berkshire Hathaway.
How Mutual Funds Work
Mutual funds are a popular choice for investors looking to diversify their portfolios without the hassle of managing each investment individually. Let’s break down how these investment vehicles operate, focusing on the collective investment strategy, the pivotal role of mutual fund managers, the principle of diversification, and the critical concept of Net Asset Value (NAV).
Pooling Money for Diverse Investments
At its most basic, a mutual fund works by pooling money from multiple investors. This pool of funds is then used to buy a wide array of securities, including stocks, bonds, and other financial instruments. This collective buying power allows individual investors to access a broader range of investments than they might be able to afford or manage on their own.
The Crucial Role of Fund Managers
A mutual fund manager is a professional that is tasked with making the day-to-day decisions about where to invest the fund’s money. Their goal is to select securities that will help the fund achieve its investment objectives, whether that’s growth, income, or stability. Through their expertise, they strive to maximize returns for investors while adhering to the fund’s stated investment strategy.
Emphasizing Diversification and Risk Management
One of the key benefits of investing in mutual funds is diversification. By holding a wide variety of investments within a single fund, mutual fund investors can reduce the impact of poor performance from any single security. This strategy helps manage risk and can lead to more stable returns over time. Mutual funds make diversification easier and more accessible, particularly for investors with smaller amounts of capital.
Understanding Net Asset Value (NAV)
The net asset value (NAV) is a fundamental concept in the world of mutual funds, serving as a critical measure of a fund’s per-share market value.
The Definition and Importance of NAV
NAV represents the total value of all the securities held by the fund, minus any liabilities, divided by the number of shares outstanding. This figure is crucial because it determines the price at which shares of the mutual fund can be bought or sold at the end of the trading day. Investors pay close attention to NAV to assess the performance and value of their mutual fund investments.
Calculating NAV: A Closer Look
To calculate the NAV of a mutual fund, you subtract the fund’s liabilities from its assets and then divide this figure by the number of shares outstanding. This calculation is typically done at the end of each trading day to reflect the current market value of the fund’s holdings. By understanding NAV, mutual fund investors can make informed decisions about when to buy or sell shares of a mutual fund, ensuring they are aligned with their investment strategies and goals.
Types of Mutual Funds
Investors have a wide array of mutual fund types to choose from, each catering to different investment goals, risk tolerances, and time horizons. Understanding the nuances of these various funds can significantly aid in constructing a diversified and effective investment portfolio. Here’s a comprehensive look at some of the key types of mutual funds available:
Equity Funds (Stock Funds)
Equity funds, or stock funds, are mutual funds that invest primarily in stocks of publicly traded companies. They are categorized based on the market capitalization of the companies they invest in (small-cap, mid-cap, large-cap) or their investment strategy (growth, value, dividend income).
Equity funds aim to provide capital appreciation over the long term and can be either actively managed, where a fund manager picks stocks to try to outperform the market, or passively managed, mimicking the performance of a specific index.
Fixed-Income Funds (Bond Funds)
Fixed-income funds, often referred to as bond funds, invest in bonds and other debt securities that pay a fixed rate of return. These funds are designed to provide investors with steady income and are generally considered less risky than equity funds. They can invest in various types of bonds, including government bonds, municipal bonds, and corporate bonds, each offering different levels of risk and return.
Asset Allocation Funds
Asset allocation funds are designed to invest across different asset classes, including stocks, bonds, and sometimes alternative investments like real estate or commodities. These funds adjust their asset allocation based on the fund’s investment objectives and the current market conditions, aiming to balance risk and return. They can be a good choice for investors looking for a diversified investment in a single fund.
Index Funds
Index funds aim to replicate the performance of a specific market index, such as the S&P 500 or the Dow Jones Industrial Average, by investing in the securities that make up that index. These funds are known for their low expense ratios and passive management strategy, making them an attractive option for cost-conscious investors seeking market-matching returns.
Target Date Funds
Target date funds are a type of asset allocation fund that automatically adjusts its investment mix as the fund’s target date (usually retirement) approaches, shifting from more aggressive investments to more conservative ones. These funds are designed for investors who prefer a hands-off approach to managing their retirement savings.
Money Market Funds
Money market funds invest in short-term, high-quality debt securities, such as Treasury bills and commercial paper. They aim to provide investors with a safe place to invest easily accessible, liquid assets, offering a higher return than regular savings accounts, though with slightly higher risk.
Commodity Funds
Commodity funds invest in physical commodities, such as gold, oil, or agricultural products, or in commodity-linked derivative instruments. These funds can offer investors a hedge against inflation and a way to diversify their portfolios away from traditional stocks and bonds, though they can be more volatile.
Environmental, Social, and Governance (ESG) Funds
ESG funds select investments based on ethical, social, and environmental criteria, in addition to financial considerations. Investors who wish to align their investment choices with their personal values may find these funds appealing. ESG funds can invest across a range of industries and asset classes, excluding companies that do not meet specific ethical standards.
Setting Up a Mutual Fund Account
Embarking on your mutual fund investment journey begins with setting up an account. This process is straightforward, but there are a few key considerations to keep in mind to ensure you’re making informed decisions right from the start.
Here’s a step-by-step guide to getting your mutual fund account up and running, along with insights into selecting a broker and understanding the fees involved.
Step-by-Step Guide to Opening an Account
Determine your investment amount: Start by deciding how much money you’re ready to invest. Mutual funds often have minimum investment requirements, but these can vary widely from one fund to another.
Choose a broker or investment platform: Research brokers or investment platforms that offer access to the mutual funds you’re interested in. Look for platforms that align with your investment goals and budget.
Understand the fees: Before making your choice, thoroughly investigate the fees associated with buying, holding, and selling mutual funds on the platform. These can include management fees, transaction fees, and any other charges that could affect your investment’s growth.
Open your account: Once you’ve chosen a broker or platform, go ahead and open your account. This process typically involves providing some personal information and setting up a way to fund your account.
Start investing: With your account open, you’re ready to start buying shares of mutual funds. Consider starting with a diversified fund that aligns with your risk tolerance and investment goals.
Selecting a Broker and Understanding Fees
When choosing a broker or investment platform, consider not only the fees but also the services and support offered. Some investors prefer platforms with robust educational resources and customer service, while others might prioritize low fees or the availability of a wide range of funds. Understanding the fee structure is crucial because fees can significantly impact your investment returns over time.
Making Money and Managing Risks with Mutual Funds
Investing in mutual funds can be a profitable endeavor, but it’s important to understand how returns are generated and the risks involved. Here’s what you need to know about making money with mutual funds and managing the inherent risks of investing in the market.
How Investors Earn Returns
Mutual fund returns can come from several sources, including dividend payments from stocks within the fund, interest payments from bonds, and capital gains from selling securities at a higher price than they were purchased.
The fund’s performance, and consequently, your return as an investor, is influenced by the market performance of its underlying investments. As the value of the fund’s holdings increases, so does the value of your shares in the fund.
Understanding the Risks and Market Volatility
While mutual funds can offer a more diversified and thus potentially less risky investment than individual stocks, they are not immune to market volatility. The value of your investment can fluctuate based on overall market conditions, the performance of the securities within the fund, and economic factors. Diversification can help manage risk, but it cannot eliminate it entirely.
It’s vital to have a long-term perspective and recognize that market fluctuations are a normal part of investing. By staying informed about your investments and maintaining a diversified portfolio aligned with your risk tolerance and financial goals, you can navigate market volatility more effectively and work towards achieving your investment objectives.
Comparing Mutual Funds with ETFs
When expanding your investment portfolio, understanding the differences between mutual funds and exchange-traded funds (ETFs) is crucial. Both investment types offer unique advantages and come with distinct fee structures and management styles.
Differences Between Mutual Funds and ETFs
Mutual funds are investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are typically managed by a professional fund manager and are bought or sold at the end of the trading day based on the fund’s net asset value (NAV).
ETFs, on the other hand, are similar in that they also pool investor money to buy securities, but they trade like stocks on an exchange. This means they can be bought and sold throughout the trading day at market prices that can fluctuate.
Fee Structures and Management Styles
Mutual funds often have higher expense ratios due to active management, where fund managers make decisions on which securities to buy or sell. ETFs tend to have lower fees, partly because many are passively managed, aiming to track the performance of a specific index rather than outperforming the market.
See also: What’s the Difference Between ETFs and Mutual Funds?
Benefits of Investing in Mutual Funds
Mutual funds offer several advantages that make them an attractive option for individual investors, including diversification, liquidity, and professional management.
Diversification
By investing in a mutual fund, you gain access to a broad array of securities in one transaction. This diversification can help reduce your investment risk by spreading it across various assets.
Liquidity
Mutual funds offer high liquidity, meaning you can buy or sell your shares of the fund at the end of each trading day at the NAV, making it easier to manage your investments.
Professional Management
Actively managed mutual funds benefit from the expertise of a fund manager who makes investment decisions aimed at achieving the fund’s objectives. This is particularly valuable for investors who do not have the time or experience to manage their investments.
Fund managers actively select and manage the investments within the fund to try to outperform the market, providing a potential advantage over passively managed funds.
Withdrawing Money from Mutual Funds
Withdrawing money from your mutual fund investments can have financial implications, especially when it comes to retirement accounts.
Penalties and Taxes on Withdrawals
If you withdraw from a mutual fund within a retirement account like an IRA or 401(k) before the age of 59 and a half, you may face early withdrawal penalties and income taxes on the amount withdrawn. For non-retirement accounts, selling shares of a mutual fund can trigger capital gains taxes if the investment has increased in value.
Starting Your Mutual Fund Investment
Beginning your journey with mutual funds involves a few key steps, including understanding the initial investment requirements and the importance of research.
Initial Investment Requirements
Mutual funds often have minimum investment requirements, which can vary significantly from one fund to another. It’s important to choose a fund that matches your financial situation and investment goals.
Importance of Research and Understanding Fund Performance
Before investing, thoroughly research potential mutual funds to understand their investment strategy, past performance, and fee structure. Reviewing historical returns can provide insight into how the fund performs in different market conditions, helping you make an informed decision.
Final Thoughts
Diving into mutual fund investments offers a promising path to wealth growth and achieving your financial aspirations. It’s crucial to engage in thorough research and choose mutual funds that best match your investment goals and risk appetite. Mutual funds are integral to a diverse investment strategy, providing the benefits of diversification, expert management, and liquidity.
Being well-informed is key to investment success. Take the initiative to explore the various mutual fund options, their past performances, fee structures, and their role in your overall investment portfolio. With careful selection and strategic planning, mutual funds can significantly contribute to a robust and prosperous financial future.
Frequently Asked Questions
What are the differences between actively and passively managed mutual funds?
Actively managed funds are managed by professionals who actively select investments to outperform the market, leading to higher fees. Passively managed funds, or index funds, aim to mirror the performance of a specific index, resulting in lower fees due to less frequent trading and lower operational costs.
How do mutual fund dividends work?
Mutual fund dividends come from the income generated by the fund’s investments. Shareholders can either receive these dividends as cash or reinvest them to buy more shares of the fund. The approach depends on the fund’s distribution policy and the investor’s preference.
Can I lose money in a mutual fund?
Yes, investing in mutual funds carries the risk of loss. The value of a mutual fund can decrease if the investments it holds lose value. Market volatility and economic changes can affect the fund’s performance, potentially leading to losses.
How do I choose the right mutual fund for me?
Choosing the right mutual fund involves considering your investment goals, risk tolerance, the fund’s performance history, fee structure, and the fund manager’s track record. It’s important to select a fund that aligns with your financial objectives and comfort with risk.
How often should I review my mutual fund investments?
Review your mutual fund investments at least annually or when your financial situation or goals change. This helps ensure your investments remain aligned with your objectives and allows you to make adjustments based on the fund’s performance and changes in the market.
What is the impact of taxes on mutual fund investments?
Taxes on mutual fund investments can affect your returns, especially for funds in non-retirement accounts. Dividends and capital gains distributions are taxable events. Selling shares at a profit also triggers capital gains taxes. Investing in tax-efficient funds or using tax-advantaged accounts can help minimize the tax impact.
Inside: Understanding the meaning of 4 figures of money can help you to evaluate your yearly income and expenses as well as potential jobs or side hustles.
The term “four figures” often pops up in financial discussions, but it can be a source of confusion for those not well-versed in financial jargon.
Grasping the concept of what four figures entail is significant for a variety of reasons. It can influence budgeting decisions, salary negotiations, and long-term financial planning.
Whether considering the affordability of an expense, the significance of a salary, or the value of savings, understanding the range of four figures helps set realistic expectations and enables better financial management.
Quick Answer
“Four figures” simply refers to a numerical amount that falls within the range of 1,000 to 9,999—representing a sum that has four numeric digits.
How Much is 4 Figures
In essence, when discussing finances, whether planning a budget, evaluating jobs, or making investments, the term “figures” frequently enters the conversation, referring to the number of digits in a sum of money.
Specifically, “four figures” denotes dollar amounts that range from $1,000 to $9,999. This is a classification that falls between three figures (in the hundreds) and five figures (in the tens of thousands).
Low 4 Figures
A low 4-figure income represents the bottom third of the four-figure income bracket, ranging from $1,000 to $3,333.
Many of our popular mini savings challenges fall into this range.
Mid 4 Figures
A mid four-figure income, falling within the middle one-third of the range, would typically be defined as between approximately $3,334 – 6,666.
For most people paid a monthly salary, this is the range of the paycheck when earning $60000 a year.
High 4 Figures
A high four-figure income is in the higher one-third of its range, which falls between approximately $6,667 and 9,999.
Earning within this bracket places an individual or household near the upper limit of what’s considered a high four-figure income, before transitioning into six figure salaries.
Why Striving for a Four Figure Salary Matters
A 4-figure salary refers to an income that is in the range of $1,000 to $9,999. At first glance, this might not seem like a substantial amount, especially when compared to the more commonly sought-after 5 or 6-figure salaries.
Yet, it’s important to recognize that a 4-figure income can play a significant role in various economic scenarios and for different groups of people.
Next, we are going to discuss how often you earn a 4 figure salary, which will make the difference overall.
How Much Is 4 Figures a Year?
When we talk about a 4-figure salary in the context of annual income, we’re referring to an amount ranging from $1,000 to $9,999 per year. This level of yearly income is generally considered quite low, particularly in developed countries like the US or UK, where living expenses can be high.
For single-person households, this sort of income falls below the poverty guideline set by the US federal government, which was $14,580 for the year 2023. 1
Using the context of four figures in a year is better for discussing expenses like the cost of vacation, taxes, or maybe groceries.
How Much Is 4 Figures a Month?
A monthly income that falls into the 4-figure category would amount to anywhere between $1,000 and $9,999. This span covers a broad spectrum of possible earning scenarios, from just reaching minimum wage to approaching an upper-middle-class income bracket in many locations.
Someone earning $1,000 per month is at the very bottom end of this range. In countries with higher living costs, such as the United States, this income level would likely be insufficient to live on without additional support, savings, or aid.
As we move toward the middle of the range, an individual making, say, $5000 per month would have a substantial increase in their standard of living. However, you need an annual sum of closer to $75,000 a year to be near the median household income level in the U.S.2
Towards the upper end, a monthly four-figure income of $9,999 translates to nearly $120,000 a year. This would be considered a strong income in most parts of the U.S. and could afford a very comfortable lifestyle with potential for savings, investments, and discretionary spending.
When you look at fixed expenses, only a mortgage should be costing you four figures a month.
How Much Is 4 Figures a Week?
Discussing a 4-figure income on a weekly basis means earning between $1,000 and $9,999 each week. Within this context, such a salary is fairly impressive, placing the individual well above the median wage for most workers.
The lower limit of this range is $1,000 weekly, which annually equates to $52000 a year.
At the midpoint of the 4-figure scale, an individual bringing home $5,000 weekly would earn $260,000 annually.
Once you crest into the higher part of the 4-figure range, for instance, earning $9,999 weekly, the annual income becomes quite substantial – approaching half a million dollars or $519,948 to be exact.
How Much Is 4 Figures a Day?
Earning a 4-figure sum daily ranges from $1,000 up to $9,999. This daily earning rate translates to a notably high income, typically found in the echelons of top industry professionals, successful entrepreneurs, stock traders, high-caliber consultants, and individuals with profitable investments or ownership in thriving businesses.
At the lower end, earning $1000 a day without breaks would accrue to an annual income of approximately $365,000. While this may not be the norm for most individuals, it is achievable for those with high-paying specialized careers and in-demand expertise.
Midway through the 4-figure daily earning spectrum, a salary of around $5,000 per day would lead to an annual income surpassing $1.825 million.
At the top end of a 4-figure daily income, earning nearly $9,999, one would accumulate close to $3.65 million a year.
Many of my fellow traders and I work on earning $10000 a day. Even if we reach that goal only 20 times per year. We can net $200,000.
Start with learning how to invest $100 to make $1000 a day and see where your financial success happens.
Strategies to Reach a 4-Figure Salary
Upgrading Skills and Qualifications
Upgrading skills and qualifications is crucial in a rapidly evolving job market; it enables professionals to remain competitive and relevant. Moreover, with higher qualifications, individuals often gain access to better job opportunities and can command higher salaries.
Also, enhancing one’s financial literacy and investing knowledge can lead to making more informed decisions that potentially expand one’s wealth. This help help you to become financially stable.
For example, my own journey in improving my investing acumen has improved my overall net worth as well as providing extra income on a monthly basis.
Exploring Part-Time and Side Hustle Opportunities
Whether it’s through seasonal work, remote opportunities, or local part-time positions, the right side hustle can serve as a reliable financial bolster and even progress to a lucrative career over time.
Thankfully, there are so many ways to make money online that you have plenty of options.
The key is finding something that you enjoy and making money with your passion.
Frequently Asked Questions
Earning a 4-figure salary signifies that an individual’s income ranges from $1,000 to $9,999—this could apply to weekly, monthly, or annual earnings. The term doesn’t pinpoint an exact number but instead establishes the income bracket.
A 4-figure salary is often considered a benchmark for part-time or entry-level jobs, temporary work, or side gigs. For some, this income might be supplementary, enhancing their overall household earnings. However, for others, this figure may represent the sole income, which is especially common in part-time roles or jobs in industries with lower average wages.
It’s also worth noting that while a 4-figure salary provides a broad view of one’s income, it doesn’t give insight into the specific living conditions or financial health of an individual. This is because the purchasing power of a 4-figure salary can vary widely depending upon geographical location, cost of living, personal debt, and individual lifestyle choices.
Furthermore, earning a 4-figure salary can have different implications based on frequency; for example, earning a 4-figure sum on a daily basis would indicate a high-earning individual, whereas annually, it could suggest that someone is earning below the poverty line in certain developed countries.
Living comfortably on a 4-figure salary depends heavily on several factors, including the specific amount within that range, how often you are paid, the location where one resides, individual financial obligations, and lifestyle choices.
Ultimately, while it’s possible to live on a 4-figure salary, it generally requires strict budgeting, financial discipline, and potentially additional sources of income for a more comfortable living standard.
Now, You know 4 Figures Meaning
What do you plan to do with this knowledge?
To enhance your financial situation, taking proactive and strategic measures is essential.
Start by negotiating a higher salary through meticulous research on industry standards and clear communication of your value to your employer, highlighting quantifiable successes and achievements.
Furthermore, diversify your income streams by exploring side hustles.
The choice is yours. You can walk away with this knowledge. Or start a side hustle that brings in over four figures consistently like me.
Source
HealthCare.gov. “Federal poverty level (FPL).” https://www.healthcare.gov/glossary/federal-poverty-level-fpl/. Accessed February 1, 2024.
Census.gov. “Income in the United States: 2022.” https://www.census.gov/library/publications/2023/demo/p60-279.html#:~:text=Highlights,and%20Table%20A%2D1). Accessed February 1, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Escape the cycle of being broke with insightful tactics. Learn to invest, save smartly, spot financial traps, and build secure money habits today.
You are desperate right now. You want to know why I am broke.
I get it. This is a situation I have been in before and just recently when I lost my main source of income.
The feelings of you can’t afford anything may send you down a steep spiral of depression.
So, how do we escape?
Here are the tips I used before and plan to use again.
Top Reasons for Why I am Broke
#1 – The Mindset Traps That Keep You Broke
A mindset that cultivates a sense of scarcity rather than abundance can be a massive roadblock to financial prosperity. When you’re shackled by thoughts like “I am always broke,” you unwittingly set the stage for a self-fulfilling prophecy.
The mental narrative that convinces you wealth is unattainable can keep you trapped in a loop of missed opportunities and poor financial decisions.
You may inadvertently sabotage your potential to earn more, save, or invest wisely by clinging to a defeatist paradigm.
Fixing a broken mindset is about shifting from a state of helplessness to one of deliberate, empowering action.
It starts with self-awareness and is further built through intentional positive affirmations and financial education.
Overcome By: Remember, the mind is powerful—it can be your greatest ally or your most formidable adversary. Change your money mindset.
#2 – Living Beyond Your Means: A Fast Track to Empty Pockets
Living beyond your means is akin to constantly filling a sieve with water, hoping it will someday retain more than it loses—a surefire way to financial drought. It’s a lifestyle where your outflow far exceeds your inflow, and every paycheck evaporates into the ether of consumerism.
With the advent of credit cards and buy-now-pay-later schemes, the temptation to spend money we don’t have has never been greater.
The façade of affluence conceals the grim reality of financial instability.
Acknowledging this trap is step one. Living within one’s means doesn’t imply sacrificing joy or reverting to asceticism; it’s about striking a harmonious balance between the lifestyle you desire and the one you can sensibly afford.
Overcome By: Making choices aligned with your financial reality, finding contentment in simplicity, and prioritizing financial health over transient pleasures.
#3 – Chronic Debt: Borrowing from Tomorrow for Today
Chronic debt is a pervasive issue, ensnaring individuals in a vicious cycle of borrowing today and worrying about repayment tomorrow. This pattern often stems from an urgency to fulfill immediate desires or needs without adequate financial resources.
Alarmingly, the trend of increasing consumer debt signals a culture obsessed with instant gratification as consumer debt is $16.84 trillion in Q2 2023, according to Experian. 1
Being in debt should not be normal.
The onus of breaking free from chronic debt lies in reevaluating your relationship with money. It means slowing down the urge to splurge, meticulously planning for future financial obligations, and carving a path towards debt repayment.
Overcome By: Find the discipline to not only stop accumulating debt but also to aggressively tackle existing debts through methods like debt snowball or debt avalanche strategies.
#4 – You Haven’t Learned to Plan and Budget for a Brighter Tomorrow
The lack of a strategic financial plan and a detailed budget is tantamount to navigating unknown terrain without a map. Without these critical tools, your finances are left to chance rather than choice, leaving you vulnerable to the whims of circumstance.
Budgeting is perhaps the most fundamental step toward taking ownership of your financial future. It gives you a clear snapshot of where your money is going, which is essential for making informed spending decisions.
However, many avoid the budgeting process, perceiving it as restrictive or complex. The truth is that budgeting liberates you from the anxiety that comes with uncertainty. It empowers you to align your spending with your financial goals and to find a balance between today’s necessities and tomorrow’s aspirations.
Overcome By: Choose a budgeting method whether it be the zero-based budget, the 50/30/20 rule, or the envelope system, the key is to find a method that resonates with your lifestyle and stick to it.
#5 – No Emergency Fund to Weather Financial Storms
An emergency fund is an essential bulwark against the financial tempests life invariably hurls your way. Without it, a single unforeseen event—a job loss, a medical emergency, or an urgent car repair—can capsize an already precarious financial ship. The lack of an emergency cushion extends an open invitation to debt and financial strain.
The data tells a stark tale:
A statement from the Consumer Financial Protection Bureau highlights that nearly a quarter of consumers (24%) don’t have an emergency savings account. 2
Additionally, 39% have less than a month’s worth of income saved for emergencies, setting the stage for potential financial disaster. 2
This precarious situation has become more pronounced with the increasing cost of living and high inflation rates witnessed in 2021-2023.
Overcome By: Structured, automatic savings transfers to facilitate the gradual growth of your emergency fund without it feeling like a financial blow. The goal is to build a reservoir robust enough to cover several months of living expenses, providing a comfortable buffer that can help you bounce back from setbacks without the need to borrow money at high-interest rates or liquidate precious assets at inopportune times.
#6 – Lack of Understanding of The Power of Investing
Understanding the power of investing is key to grasping the potential of a seed. A seed, given the right conditions, can grow into a flourishing tree. Similarly, investing allows your finances to grow beyond the confines of stagnant savings.
Yet, many people fail to harness this power due to a lack of understanding or fear of the unknown. This was me for many years until I decided to learn to trade stocks.
A common misconception surrounding investing is that it’s solely the playground for the rich or financially savvy. This myth steers many away from multiplying their wealth via investments, leaving them to rely solely on their primary source of income. Moreover, a lack of understanding often leads to panic during market volatility, resulting in ill-timed decisions to buy high and sell low—contrary to sound investment strategies.
Overcome By: Invest money consistently into a low-cost mutual fund or ETF that tracks the overall S&P. Then, continue your investing education on how to invest in stocks.
#7 – Wasteful Spending Habits
Wasteful spending habits are the quiet thieves of financial security. They nibble away at your earnings, leaving you wondering where your money has gone at the end of each month. This pattern often goes unnoticed, as it’s usually composed of small, seemingly insignificant purchases that accumulate over time.
The danger of wasteful spending is its subtlety.
It’s the daily coffee on the way to work, the meal out because cooking feels like too much of an effort, or the impulse buys during the sale season.
Individually, these do not seem like considerable expenses, but together, they can consume a substantial portion of your budget.
To curtail this financial leak begins with recognizing and acknowledging these habits. Tracking every penny spent can be an eye-opening experience, illustrating just how quickly the ‘little things’ can add up. With this awareness, one can then consciously decide where to cut back.
Overcome By: Adopting a minimalist approach, where value and purpose become the benchmarks for every expense, can help combat wasteful spending. Questions like, “Do I really need this?” or “Will this purchase add value to my life?” can serve as useful filters. Take up a no spend challenge to see your mindless consumption.
#8 – Fail to Recognize the Patterns That Lead to a Near-Empty Wallet
Failing to recognize the patterns that deplete your wallet is akin to ignoring the signs of a leaking roof until it caves in—it’s a disaster in the making. Often, it isn’t one significant financial blunder, but rather a series of small, recurring missteps that lead to the near-empty wallet syndrome.
For instance, routinely underestimating monthly expenses can lead to a perpetual state of surprise when the bills pile up.
Similarly, neglecting to keep tabs on bank account balances may result in overdraft fees that, over time, take a sizable bite out of your funds.
Disregarding the accumulative effects of late payment charges or routinely paying only the minimum on credit card balances can exacerbate financial distress.
Overcome By: To reverse this trend, one must become a detective in their own financial mystery. Start by scrutinizing bank statements and tracking expenses. Look for patterns, like repeated late-night online shopping sprees or habitual dining out, which contribute to the thinning of your wallet. Use budgeting apps or spreadsheets to flag these patterns visually, making it easier to identify and amend them.
#9 – How Fear and Denial Contribute to Ongoing Money Issues
Fear comes in several forms: fear of failure, fear of taking risks, and even fear of facing the truth about one’s financial situation. It can immobilize individuals, preventing them from making necessary financial changes or taking action that could otherwise mitigate or reverse money woes.
For instance, the fear of losing money might dissuade one from investing in potentially lucrative opportunities, leaving them stuck in the low-yield safety of a savings account.
Further, there’s the psychological phenomenon of denial—a defense mechanism that numbs the pain of reality. When faced with mounting debt or budgetary failure, denial kicks in, allowing individuals to live as if the problem doesn’t exist. Unfortunately, ignoring overdue notices or dodging calls from creditors doesn’t make debts disappear.
Denial only deepens the financial hole, often leading to larger, more complex problems.
Overcome By: To confront these challenges, it’s crucial to adopt a stance of brutal honesty with oneself. This means acknowledging fears and confronting financial shortcomings head-on. Professional help, such as financial counselors or advisors, can provide support and guidance to navigate these tricky emotional waters.
#10 – No Clear Financial Goals and Plans
The absence of clear financial goals and plans is like embarking on a voyage without a destination. It not only leads to aimless wandering but also ensures that you miss out on the focus and motivation that well-defined objectives provide.
When you lack clarity on what you’re saving for or what you wish to achieve, there is little impetus to resist the temptations of immediate gratification or to weather the short-term sacrifices that long-term gains often require.
Setting clear and measurable financial goals lays the groundwork for creating effective plans to reach them.
Overcome By: To break this cycle, begin by reflecting on what you value most and where you would like to be financially in the future. Whether it’s achieving debt freedom, owning a home, funding education, or planning for retirement, having specific goals in mind will define the purpose of your financial activities. Craft a plan that outlines the steps needed to accomplish them.
#11 – Laziness is your Game
When you approach your finances with a laissez-faire attitude, it’s akin to ignoring the health of a garden; without regular attention and effort, it’s bound to wither. Financial laziness can manifest in various ways, from failing to review bank statements and ignoring budgeting to neglecting opportunities to cut costs or boost income.
Each act of omission is a step closer to the financial doldrums.
Procrastination or avoidance might seem less painful at the moment, but they ultimately compound the problem. Contrary to what some might think, simple acts of financial diligence, such as cash management or regularly doing household chores, do not require Herculean effort.
Moreover, they set a foundation for sound financial habits that thwart needless spending.
Overcome By: Schedule time for financial management much like an important meeting.
#12 – Keeping up with Others is Breaking Your Bank
The urge to keep up with others—often termed the ‘Keeping up with the Joneses’ or ‘Keeping up with the Kardashians’ phenomenon—is a profound pressure that exerts an invisible, yet powerful, force on financial habits. This social comparison can lead to an insidious form of competition, one that disregards personal financial realities in favor of an illusory social standing.
It’s an impulse driven by comparison, where the benchmark of success is set not by personal satisfaction, but by the possessions and lifestyles of others.
The decision to upgrade to a luxury car, splurge on designer clothes, or redo a perfectly functional kitchen stems not from need, but from a desire to project an image that matches or surpasses those in your social sphere.
Financial guru Dave Ramsey encapsulates this philosophy with his common saying, “Live like no one else will now, so in the future, you can live like no one else can.” This means making money moves that are right for you, not those dictated by social pressures, which can sometimes involve humbler living now for a wealthier future.
Overcome By: Breaking free from the shackles of this social competition requires introspection and a bold reaffirmation of personal values. Adjusting focus towards personal financial goals and aspirations, rather than mirroring others’ spending decisions, is key.
#13 – Need Help Differentiating Needs from Wants
The blurring line between needs and wants is a common financial pitfall that can lead individuals deeper into the morass of money woes.
Needs are essentials, the non-negotiable items necessary for survival—food, shelter, healthcare, and basic utilities.
Wants, on the other hand, include anything that is not vital for basic survival but enhances comfort and enjoyment of life.
The difficulty in distinguishing between the two often stems from habituation. What starts as a luxury, like eating out at restaurants, getting a high-end smartphone, or subscribing to multiple streaming services, can quickly become perceived as essential. This is particularly difficult in a consumer-driven society, where advertising and social media constantly inflate our perception of what we ‘need’ to lead a fulfilling life.
The result? A budget that’s stretched thin on non-essentials, leaving little room for savings or investment.
Overcome By: Regularly reassess expenses and ask the hard questions about whether a purchase is genuinely essential or merely a desire dressed up as a need.
#14 – You Don’t Make Enough Money to Cover Your Expenses
When your income doesn’t cover expenses, the strain can be relentless. This financial imbalance is often the stark root of the “I am broke” refrain. In such cases, every dollar becomes precious, and the financial breathing room feels nonexistent.
The reason is straightforward: if what comes in is less than what goes out, deficits and debt are the inevitable outcomes.
Addressing this challenge requires a two-pronged approach—increasing income and/or reducing expenses. For many, reducing expenses is the immediate reflex, and while it’s an essential strategy, there’s only so much you can save, but no limit to how much you can earn.
Overcome By: Focus on making more money. This could mean asking for a raise, seeking better-paying job opportunities, pursuing a side hustle, making money online, or acquiring new skills that offer higher income potential.
Long-Term Solutions to Build a Secure Financial Future
Building a secure financial future is an aspirational goal for many, but achieving it requires a strategic approach characterized by foresight, discipline, and an understanding of personal finance.
Becoming financially independent doesn’t happen by magic chance; it’s the result of deliberate actions taken with consistency over time.
Here are the foundational blocks for constructing a sturdy financial edifice:
Invest in Financial Literacy: Knowledge is power, and this is especially true in the realm of finance. Educate yourself about budgeting, investing, insurance, taxes, and retirement planning. Reliable resources include books, online courses, podcasts, and workshops.
Set Clear Financial Goals: Define what financial success looks like for you, whether it’s being debt-free, owning a home, or achieving financial independence. Detailed goals provide direction and motivation for your financial plan.
Create a Robust Budget: A flexible budget isn’t a one-time exercise but a living document that should evolve with your financial situation. It should reflect your income, fixed and variable expenses, and financial goals.
Establish an Emergency Fund: This is the bedrock of financial security. Aim to save three to six months’ worth of living expenses to protect yourself from unforeseen circumstances without falling into debt.
Pay Off Debt: High-interest debt is a major impediment to financial growth. Utilize strategies like the debt snowball or avalanche methods to tackle debts efficiently. Once you’re debt-free, avoid accumulating new debt.
Diversify Income Streams: Relying on a single source of income is a risk. Look for opportunities to create additional streams of income, such as side businesses, freelance work, or passive income from investments.
Invest Wisely: Make your money work for you through smart investments. Consider diversified portfolios, retirement accounts, and tax-efficient investment strategies to grow your wealth over time.
Plan for Retirement: The future is closer than you think. Contribute regularly to retirement accounts like 401(k)s or IRAs. Take advantage of employer match programs if available, as they’re essentially free money.
Protect Yourself with Insurance: Ensure you have adequate insurance coverage for health, life, property, and potential liabilities. This helps to guard against catastrophic financial losses.
Breaking the Cycle of Being Broke
Just like becoming broke is often a gradual process—a few uncalculated loans, hasty investments, and numerous credit card swipes. Suddenly, financial stability seems like a far-off dream.
The same goes for breaking the cycle of being broke. It is about moving from living paycheck to paycheck with no savings, drowning in debt, and making questionable spending decisions to become financially stable.
Even though our society may see being broke as normal, it is possible to embrace financial prudence to defy such norms. It’s time to delve into the reasons behind the perpetuation of brokeness and unveil practical steps toward lasting financial freedom.
What do I do if I’m broke?
Finding yourself in a financial predicament where the end of your money arrives before your next paycheck is a stress-inducing scenario.
When faced with the stark reality of being broke, here’s a step-by-step guide to help you navigate through and set the stage for a more stable financial future:
Assess Your Situation: Take stock of all your available assets and resources. This includes checking account balances, any savings, and items you could potentially sell for quick cash. Understanding what you have can help you gauge your immediate next steps.
Prioritize Your Expenses: Sort your expenses by urgency and necessity. Essentials like rent, utilities, and groceries come first. Non-essentials or discretionary spending should be paused or significantly reduced until your financial situation improves.
Reduce Costs Immediately: Eliminate any non-essential expenses. Cancel or suspend subscriptions, memberships, or services that are not vital. Consider cheaper alternatives for necessary expenses, and utilize community resources, such as food pantries, if needed.
Negotiate with Creditors: If you’re struggling to pay your bills, proactively reach out to creditors to discuss payment options. Many are willing to work with you on a revised payment plan to avoid defaults.
Seek Additional Income Sources: Consider taking on a side job, selling unused items, freelancing, or offering your skills for short-term gigs. Even small amounts of additional income can make a significant difference when you’re broke.
Consider Assistance Programs: Look into local, state, and federal assistance programs. You may be eligible for temporary aid to help with food, housing, or utility bills.
Borrow with Caution: If borrowing is unavoidable, be cautious and choose the most cost-effective options such as loans from family or friends, a personal loan with a low-interest rate, or a hardship withdrawal from your retirement account (as a last resort).
Remember, being broke can happen to anyone, so there’s no shame in it.
The key is to take swift, decisive action to mitigate the immediate crisis while also planning longer-term strategies to prevent recurrence. By addressing the issue head-on and adjusting your financial habits, you can initiate the journey from being broke to becoming financially buoyant.
FAQ: Navigating Away from Being Broke
Finding yourself consistently broke at the end of each month is an indicator that there’s a disconnect between your income and your spending habits.
It’s often the result of several factors or behaviors that, when combined, result in a cycle of financial scarcity. Here are common reasons why this might be happening:
No Budget or Poor Budgeting
Overspending
Impulse Purchases
Lack of Emergency Savings
Failure to Track Expenses
Living paycheck to paycheck
High Debt Payments
Remember, understanding why you’re broke at the end of the month is the first step towards financial stability.
Saving money when funds seem stretched to their limit is a challenge that requires creative strategy and discipline. Even with a tight budget, there are ways to eke out savings without significantly impacting your day-to-day life.
If saving a significant amount seems daunting, start by saving your change. Physically save coins or use apps that round up your purchases to the nearest dollar and save the difference. Check out my mini savings challenges.
Saving money when it seems there’s barely enough to cover the bills begins with a commitment to take whatever steps are necessary, however small they may initially seem. Every dollar saved is a step towards financial resilience and a buffer against future financial challenges.
Investing can be a powerful tool for building wealth over the long term, and it’s often considered a key component of achieving financial stability. However, for those who are currently struggling to make ends meet, the decision to invest should be approached with caution.
Investing typically involves committing money with the expectation of achieving a future financial return. It has the potential to outpace inflation and increase your wealth due to the power of compound interest. Nevertheless, it often carries the risk of losing the invested capital, a risk that those in financial distress may not be in the position to take.
Feeling Broke without Money – Time to Make A Change
Feeling broke is a stressful and demoralizing experience, but it’s also a clarion call for change. It signals that your financial health needs attention and that your money management strategies may require a significant overhaul.
However, the situation is not without hope; with determination and the right approach, it’s possible to transform your financial landscape.
The journey away from the precipice of being broke begins with honesty, introspection, and a willingness to adapt. It’s about confronting uncomfortable truths, devising a clear plan, and taking decisive action. From crafting and adhering to a precise budget, cutting unnecessary expenses, to seeking additional income streams—all these steps are essential in the path to financial stability.
Remember, feeling broke isn’t a permanent state. Mindset is everything.
It’s a challenge to be met, an opportunity for growth, and a chance to steer the course of your financial ship towards calmer and more abundant waters. Your future self will thank you for the changes you implement today, so take that first step now.
>>>It’s time to make a change—because you deserve the peace of mind that comes with financial security.
Source
Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed January 25, 2024.
Consumer Financial Protection Bureau. “Emergency Savings and Financial Security.” https://files.consumerfinance.gov/f/documents/cfpb_mem_emergency-savings-financial-security_report_2022-3.pdf. Accessed January 25, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Top-35 mortgage lender New American Funding (NAF) is in negotiations to acquire Chicago-based retail shop Draper & Kramer Mortgage Corp. (DKMC), multiple sources told HousingWire.
The sources said negotiations are in the late stages and remaining details are expected to be finalized this month. As part of the deal, NAF would acquire the residential mortgage arm of Draper & Kramer, a property and financial services group established in 1893 by Arthur W. Draper and Adolph F. Kramer.
The board at DKMC, which has separate businesses in the property management and commercial finance spaces, among others, wants to exit the residential mortgage business, the sources told HousingWire.
A lengthy call between NAF executives and DKMC sales staff took place on Thursday.
According to one sales professional at DKMC, rumors about the board pushing to sell the mortgage company started to spread earlier this winter. Despite making money in prior years, the company had furloughs and cutbacks in the beginning of 2023, an employee said.
“Sentiment was that the business model wasn’t working in these times. The board didn’t have an interest in keeping a residential mortgage division,” the employee told HousingWire.
This source said there was no company-wide announcement regarding an M&A deal. Some salespeople, however, had the opportunity to talk to NAF executives, who asked them to decide if they want to transition to the new company and to “clear” their pipelines. They did not provide details on bonuses or other compensation.
Non-sales staff, including processors and underwriters, are expected to be given the opportunity to join NAF, sources said.
Representatives at Draper and Kramer did not respond to requests for comments. A spokesperson for NAF said the company would not comment at this time.
If the deal goes through, the companies would have about 2,130 loan officers, which includes 1,884 from NAF and 251 from DKMC, per data collected as of Jan. 22 from the National Multistate Licensing System.
In terms of volumes, California-based NAF, founded in 2003 by Patty and Rick Arvielo, originated $7.4 billion from January 2023 to September 2023, according to Inside Mortgage Finance estimates.
Mortgage tech platform Modex shows $8.2 billion originated in mortgage loans for the whole year of 2023. HousingWire reported that the company was entering the joint ventures arena in April, offering multiple JV models in a margin-compressed and highly regulated industry.
Meanwhile, DKMC originated about $2 billion in mortgages in 2023, according to the Modex data. The data shows that conventional loans comprised about 67%, and about 84% were purchase loans. The IMF data does not list the company among its top 100 mortgage lenders for the nine months of 2023.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
At the start of 2022, I panicked after realizing I was in my early thirties with only about $4,000 saved for retirement. Once the panic subsided, my solution was to use side hustles to fast-track my retirement savings. Within two years, I was able to use my freelance and 9-to-5 income to grow my retirement savings by over $100,000. Here are some strategies I used to achieve my goal.
1. Draft a retirement plan
Over the years, I hadn’t put much thought into when I wanted to retire or how much I would need. I got started by reading online articles and using a retirement calculator.
Drafting a retirement plan was a cathartic process — it challenged me to think about what lifestyle I want during retirement and how much that could cost. I landed around the $2 million mark, which was initially a shock to my nervous system because I only had around $4,000 saved. I arrived at this number by inputting my ideal retirement age, life expectancy, monthly contribution, monthly budget and other variables into a retirement calculator.
The retirement calculator also helped me break down how much I needed to save monthly to reach my lofty goal.
2. Create an investing strategy
Before hunting for freelance gigs, I wanted to make sure I had an investing strategy in place. It’s easy to spend freelance money before it hits your checking account; I would know because I’ve done it one too many times.
“As a side hustler, your go-to accounts for saving for retirement are the IRA, the Roth IRA, the SEP IRA and a solo 401(k),” says Alleson Tate, a certified financial planner and founder of Avere Wealth Management in Atlanta. These types of accounts can help maximize retirement and health care savings.
To hit my monthly savings goal, I planned to divide my side hustle income into five pots: my emergency savings fund within a high-yield savings account, my 401(k), an IRA, a health savings account and a standard brokerage account. I also planned to max out my allowable contributions to my 401(k), HSA and IRA as my income increased.
3. Budget
Eventually, I found multiple consistent freelance writing gigs by focusing on securing high-paying clients who would provide consistent work over an agreed period of time. I was a regular contributor for some online platforms and also had private clients to whom I provided articles. I used job boards, cold emails and tapped my network. Although most of my freelance income was consistent, some contracts didn’t get renewed. This meant I had to have a solid budget in place and revisit it regularly to stay on top of my saving goals.
Tate suggests using a 50/30/20 budgeting system to manage your side hustle income, which NerdWallet also recommends for primary income. With this method, 50% of take-home income goes to needs, 30% to wants and 20% to savings, debt and investments.
“Everyone’s percentages need to be adjusted according to their own lifestyle and financial priorities,” Tate says. “But that would be a really great starting place.”
I was frequently adjusting my budget allocations. Some months, I was investing too much and didn’t have enough in my emergency fund, while other times, I wasn’t leaving enough for bills. I went overboard with the leisure and self-care bucket a few times, and during months when I had less side income, I had to reduce my savings.
4. Plan for taxes
During my first year of aggressive side hustling, I wanted the instant gratification of seeing my retirement savings grow. I decided to prioritize saving and waited to pay Uncle Sam in one lump sum during tax season. Before making that decision, I should have read the IRS’ fine print about self-employment taxes. Reading that could’ve saved me the penalty I had to pay that year.
The self-employment tax rate is 15.3% for 2023 and 2024. To avoid an underpayment penalty, you’ll generally need to owe under $1,000 in taxes after minusing any withholdings and refundable tax credits. Or, you would need to have paid withholding and estimated tax of either 90% of taxes from the current year or 100% of taxes from the previous year. You can do this by paying the IRS estimated quarterly taxes or by withholding enough taxes from your W2 income.
To help calculate this, Abraham Ziadeh, a CPA and owner of a certified public accounting firm in Pembroke Pines, Florida, suggests using bookkeeping software, an accountant or a CPA.
I chose the W2 route and worked with a financial advisor to calculate how much I need to withhold to avoid another penalty.
I also decided to learn about ways to reduce my self-employment taxes. One strategy my tax advisor suggested was to change my business structure from a single member LLC to an S corporation. If you have consistent income and satisfy the requirements, incorporating your business could help you save on taxes, especially if you choose an S corporation structure, Ziadeh says.
Leveraging a self-employed retirement account was another way to reduce my tax bill. I went with a SEP IRA, since you can contribute a higher amount than you can with a Roth. Tate says SEP IRAs are her preferred accounts since they reduce your taxable income and have a relatively high contribution limit.
That said, it’s important to choose an account that works best for your financial situation.
This article was written by NerdWallet and was originally published by The Associated Press.
Every year, I set goals and review my goals from the previous year. Not only do I set goals and review them but I publish them here for the world to see! This helps keep me accountable for my actions and keeps the goals fresh in my mind.
When I set goals, my main objective is not to achieve those goals but to do better. Many of my goals I do not achieve and that is okay because I know I did more and better with the goals than if I did not have them.
My previous goals and how I did
It is crazy to think of how much I have accomplished over the years and I know that setting goals helped me do much more than I ever thought possible. I own more than $22 million worth of real estate and have accomplished many of my dreams. I still have a long way to go and I will keep this going as long as I can. Every year I write this article that goes over my previous goals and my future goals. You can see those other goal articles from previous years below:
Things have changed over the years as my business has changed and new things have come into my life. I started a real estate brokerage, started investing in commercial real estate, wrote many books, started brick-and-mortar businesses, and much more.
What were my goals for 2023?
I don’t make the same goals every year because not every goal works. Some goals may seem like great ideas until I realize achieving them was too easy or not impactful on me or my business. Some goals may be too difficult to measure or track and some are just oo boring. These were my goals for 2023
Sell 20 properties
I usually make a goal to flip a certain amount of homes which means I sell a flip. I felt the need to bring a goal like that back since I need to be selling properties fairly quickly to keep my business model sustainable since I am buying new ones and spending a lot on repairs. I did not sell as many properties in 2022 as I usually do. These may be rentals or flips that I sell in 2023. I have sold rentals in the past that were not the best performing and that is my plan now as well. I have had some properties that I had big plans for but those plans fell through for various reasons. I need to sell those and move on to other properties while keeping the good ones.
I believe I only sold 10 properties in 2023! This was way below my goal and a few things made this difficult. For one, I was not able to buy as many flips as I hoped to. Rising interest rates also made it more difficult to sell some of the multifamily flips that I had planned to sell. This was not the end of the world because I am making money on those properties every month but I do have a lot of capital tied up in them that I would like to get out eventually.
Here is one of the properties I sold:
Buy 12 Flips
I think we only bought 6 flips in 2022! That was the fewest number of flips I have bought in many years but that number is also a little deceiving. Some of the flips I bought were multiunit properties that will take more work than a normal flip and some of the properties that I considered to be rental property purchases in 2022 may end up being long-term flips too. I have a few duplexes and triplexes that I was thinking of keeping or selling and I think I may sell them after fixing them up a bit.
I did not buy 12 flips in 2023 either! We only bought 7 flips which was not much better than 2022. The silver lining of this is that most of the flips we bought we in the last half of 2023 so we may see some light at the end of the tunnel for finding more deals. The lack of inventory has made it very hard to find properties that will be a worthwhile flip.
Here is one of the flips I bought:
Buy $2,000,000 worth of rental properties
I have had goals to buy a certain amount of rentals (my goal to purchase 100 rentals) and to buy a certain amount of square footage of rentals (my goal to purchase 1 million square feet of rentals) but this year I am changing it to a dollar amount. I liked both goals but they both had issues. The 100 property goal was for houses I started buying large commercial properties. The 1 million square feet of rentals goal was cool but then I bought some crazy big properties that were mostly money pits. We will see how this goal goes.
I did absolutely horrible with this goal as well! I only bought one rental property and it was a small one and a business too. The small laundromat in Kersey Colorado had an apartment in it and that is the only rental I was able to -purchase for $300k. I did have another property that I almost bought for $1.3 million but the seller backed out at the last second. Even though the market for selling rentals is not very good, there still are not many deals out there to buy either!
Refinance $2 million worth of debt
This is one goal that I have been accomplishing and makes a huge difference in my finances. By refinancing private money into bank money, I free up those private money lenders to lend me more private money and reduce my interest payments while locking in loans for the long term. I have some new lenders to try this year and I can reach out to my old ones as well on a few properties.
Well, this is another goal that I completely missed. I had some ideas to refinance properties but those ideas fell through. I knew it would be tough refinancing properties with traditional bank loans and I was hoping to use some DSCR loans. The issue I ran into with DSCR loans, is that most of them have huge prepayment penalties and it is very hard to find them on commercial or mixed-use properties.
Make $500k in revenue from Investfourmore
I have this same goal again! I have some new things to try and I may really focus on that business this year myself as well. I think there is a lot of opportunity there that I have not been fully tapping into. I would love to have people in my office who work on this business.
Are you getting used to me missing my goals because it happened again! I actually saw a decrease in revenue from investfourmore. Investfourmore is this blog, my YouTube channel, social media, real estate coaching products, and a few other things. One of the big problems with Investfourmore is that real estate is really hard right now and I think many people have lost interest or given up. While my revenue did not go up, I was able to accomplish some great things in 2023 with my brand.
Add 250k social media followers
I think this goal is diable and at the same time challenging as well. The tricky part with social media is you never know what will do well or how your account will do. Some things I think will never do well end up being awesome and some that I think are awesome do horrible! One of the sub-goals in this is to hit 100k subscribers on YouTube. I have 90k now and gained 10k in the last 2 months but without crazy evictions, YouTube stops pushing my channel as much and that crazy run is over for now. Hopefully, I can get more steady and consistent growth without craziness.
Here is a goal that I was much more successful at achieving. I hit 100k Subscribers on YouTube! I did not add 250k social media followers, but I added about 100k through YouTube, Facebook, and TikTok. Instagram has actually been losing followers because I think Instagram shadow banned me and hates me. I am not sure why.
Raise Revenues at my store from $65k to $95k per month
I bought a liquor store and mini-market in 2022 which was a goal of mine for a while. I have always wanted a brick-and-mortar store for some reason. I got my wish and it has been fun but also challenging. The store makes money even after paying rent to myself who owns the building as well. While it makes money, I think it can do so much better! One big change is we can serve more food options since I just upped our food license to a grocery with a deli which allows us to prepare some foods. We will see how that goes!
This goal I hit in the summer of 2023 and then sales dropped back down again. Sales are seasonal at the store and that was to be expected. While sales were way up, our profits were not as much as they should have been due to some staffing issues and cost problems. Making money is not all about revenue, but the bottom line, or profit as well. The store is going great.
Interesting 2023 accomplishments that weren’t goals
While I did not accomplish many of my goals I was able to do some new things I was not expecting. I have wanted a laundromat for many years and tried to build one from scratch in a small town in Northern Colorado. That did not work out because of the build and utility costs. However, I was able to buy one small laundromat and car wash in June that was already existing and then I took over another laundromat in September! The small laundromat has had many challenges but the larger one is doing pretty well. It was very exciting learning the business and trying to improve sales.
My goals for 2024
As always I am going to change up how I do my goals this year. I am always tweaking and changing things as I said previously. I am going to do something new which maybe I should have done before but for some reason, I did not. I am going to post an income goal. I have always been about investing and revenue in some of my businesses but I have never done a total income goal. Many people think I make way more money than I do.
I want to make one million dollars in taxable income in 2024
I have multiple companies that have made close to or more than one million dollars in revenue a year but taxable income is not revenue! If I am able to make one million dollars in taxable income it will mean that I brought in way more income than that because my rentals and other businesses provide a tremendous amount of writeoffs and deductions. I plan to do this with a mix of online profit, store profit, flip profit, rental property profit, and laundromat profits. I broke down that goal into smaller goals like making $100k profit at the store.
I want to sell 20 properties in 2024
I am repeating this goal again because there are about 5 rentals I would like to sell that are underperforming or have a lot of equity compared to the cash flow coming in. I also have 7 flips that should sell in 2024 and I plan to buy more that will sell in 2024 as well. It is not the end of the world if I do not sell this many but it would be nice and free up capital to buy properties with more potential or value-added possibilities if I can find them!
Here is one of the properties I sold in 2023:
I want to buy at least 12 flips in 2024
I made this goal in 2023 and did not reach it either but I think I can in 2024 or at least come close. It is fun doing flips and I love creating videos and buying more flips allows me to make more videos! I am hoping with interest rates going down (fingers crossed) more inventory will come on the market and I will be able to find more deals.
I want to buy $2 million worth of rentals
I am repeating this goal again too! Rental properties that make money have been in short supply in my market. There have been a few properties that came up for sale that were close to good enough deals for me and other investors jumped on them. I am thinking I may have to try a different market soon but I am not giving up on Colorado yet. I did make a post about the most landlord-friendly states which could help others and myself make a decision if I decide to invest in other markets.
I want to refinance $2 million worth of debt
I am still looking to refinance some of my properties that have private money loans on them. Luckily my lenders are very flexible and are willing to keep taking the interest I am paying them. If interest rates come down a bunch that would be awesome but I am not sure how far down they will go. I would also love to find a DSCR lender that doesn’t have huge prepayment penalties!
Social media and blog goals
I have many goals for social media. I want to continue to grow my YouTube channel and I would love for it to take off and focus my time on it but my other social media channels like Facebook and TikTok drive people to my YouTube channel. I also have not been writing as much on Investfourmore.com because I have been focussing on social media and I think that is one reason I have not been as successful online as I had hoped. I want to write more on my blog and make sure I am taking advantage of the brand I have built over many years!
Here are some of the social media goals:
150k YouTube Subscribers
400k Facebook followers
100k Tiktok followers
Increase traffic on Investfourmore to 50k users a month
I still want to hit that $50k a month revenue goal as well!
Conclusion
Setting goals is very important and something I do every year and keep track of all the time. To be honest, I could have kept better track of my goals in 2023. I had them written on a whiteboard and I looked at them but I did not set time away to plan as much as I should have. Another goal of mine is to focus more on my goals in 2024!
To learn more about goals and why I use them check this out.
Want to learn how to get paid to do nothing? Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life. It may seem too good to be true,…
Want to learn how to get paid to do nothing?
Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life.
It may seem too good to be true, but there are real ways to use your free time or things you already have to make money with minimal ongoing work.
There are actually quite a few things on this list that I regularly do so that I can make money doing nothing.
Now, some of the ways below may take initial effort or even some maintenance over the years. But, you may be able to earn money while sleeping or while at the beach with minimal effort needed from you.
Best Ways To Get Paid To Do Nothing
Do you want to earn money while you relax? You can get paid without a 9-to-5 job. Let’s look at some ways to make money while doing nothing.
Here are some ways out of the list below that you may be interested in:
Sell printables online – These can be made once and sold an unlimited amount of times. Learn more at How I Make Money Selling Printables On Etsy.
Pose as an art model – It’s simple; just sit still! Art schools pay models around $25 per hour.
Real estate – You can invest in real estate funds. Your money might work for you, and you don’t have to manage properties.
Take online surveys – You can answer these whenever you have free time and the questions are extremely easy. Best online survey sites include Branded Surveys, Swagbucks, and Survey Junkie.
Rent your stuff – You’ve got stuff other people might want for a day or two. Think about renting out things like your storage room, baby gear, RV, and more.
Learn more about the different ways to get paid to do nothing below.
1. Sign up for a rewards credit card
Earning money without working hard can sound really nice. One way to do this is to get a rewards credit card. When you use this kind of card, you can get points or cash back for buying things you would buy anyway.
When you sign up for a new card, you might receive a big signup bonus. Some cards give you bonus points, like 50,000 or even more, as a welcome gift! However, you usually need to spend a certain amount of money first (such as $4,000 in the first 3 months).
Here is a table with the different types of rewards you might get:
Reward Type
What You Get
Points
Use for travel and gift cards.
Cash Back
Money back on your purchases.
Mile Rewards
Miles to fly on planes for free airfare.
I have a few rewards credit cards and I earn points every time I use my credit card, such as by paying a bill or going grocery shopping. I actually just signed up for a new rewards credit card this week that has a great signup bonus value of over $800.
Two rewards credit cards that I personally like are:
Important note: Using credit card rewards is a good idea as long as you use your credit card responsibly. It’s not smart to go into debt just for rewards because having debt with interest is not free or helpful. To truly make money from credit card rewards, be sure to pay your full credit card balance every month.
2. Get paid to stand in line
If you don’t mind waiting, you can earn money by standing in line for other people. Some companies and individuals pay for this service, especially when they’re busy or want to attend popular events without waiting.
Here’s how it works: You take someone else’s spot in line, like waiting for tickets or securing a spot at a busy restaurant. You do the waiting for them so they don’t have to.
You can earn approximately $25 to $35 per hour by just standing in line. The exact amount depends on your location and how much people need line sitters.
To get started, search for websites that link line sitters with clients, such as Taskrabbit, Same Ole Line Dudes, and InLine4You. Join the sites, create a listing for your services, and wait for someone to hire you.
3. Dividend-paying stocks
One of the best ways to make money without a job is to invest in dividend-paying stocks.
When you invest in dividend-paying stocks, you’re buying a piece of a company that gives you money regularly. Think of it like getting a small thank you for holding on to the company’s stock. These payments usually come from the company’s profits and they’re called dividends.
Here’s how it works. You buy stocks that pay dividends, and then, every so often (usually every three months), the company sends you money. It’s a way to earn without doing much after your initial investment.
Now, a table to show you what to look for:
Term
Meaning
Dividend Yield
How much you earn compared to the stock price
Payout Ratio
The part of profits used for dividends
Ex-Dividend Date
The day when you must own the stock to get paid
Keep in mind, not all dividend stocks are the same. Some may lose value and payments could stop if the company isn’t doing well. So, it’s important to choose wisely, and you might want to seek guidance from someone who knows a lot about stocks.
For me, I love earning dividends. It’s like being rewarded for saving for retirement, and it is so easy.
Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide
4. High-yield savings accounts
When you put your money in a savings account, you want it to grow. High-yield savings accounts are like your regular savings account but with an extra boost for making your money grow faster.
The interest rate or annual percentage yield (APY) is what the bank pays you. The higher the APY, the more money you make. Good news! Some of these accounts offer APYs much higher than the usual, like more than 5%! That’s a lot better than the average savings account.
I personally use Marcus by Goldman Sachs and they have a very high interest rate. You can get up to 5.50%, at the time of this writing, through my referral link bonus. So, at this rate, if you have $10,000 saved, you could earn $550 with a high-yield savings account in a year. Whereas with normal banks, your earnings would only be $46.
You must be thinking, “What’s the catch?” Well, most of these accounts are from online banks. No biggie, just that you won’t have a bank branch to visit. They also tend to not offer other features, such as bill pay and checks – it’s simply a place to park your money and earn a lot more in interest.
5. Sell printables
If you want to earn money while doing nearly nothing on the internet, you can try selling printables online. Printables are files that you make once, like planners, invitations, flash cards, and worksheets, and then sell over and over again.
Yes, you will have to make the printables and open a store, but after a while, you can start making money from the same printables over and over again.
This is because printables are digital products that sell with just simple downloadable files.
I recommend reading How I Make Money Selling Printables On Etsy to learn more.
6. Share your opinions
You can earn money in your free time by joining paid market research studies. Keep in mind, it won’t replace a full-time job (they usually pay only $1 to $3 for each survey you complete), but you might make some extra cash.
When I was paying off my student loans, I did online surveys almost every day. I did them before work, during my lunch break, or after work. What I like about answering online surveys is that I can answer them whenever I want, such as while watching TV or eating lunch.
Some of the survey companies I recommend include:
Please head to Best Paid Online Surveys to read more.
7. Rent out your extra storage space
If you’ve got extra room at your place, you can make money by renting it out.
Think about renting out parts of your home, like an empty closet, your driveway or parking space, or your garage. Websites like Neighbor allow you to list these spaces for someone to store their belongings (such as a car, sofa, boxes, and more).
Neighbor is like the Airbnb of storage space. Instead of having guests over, you’re renting out your storage space to store other people’s belongings.
8. Sell stock photos
Selling stock photos is a good way to earn money through passive income without actively working for it.
You upload photos you’ve taken with your camera or phone to a platform like Depositphotos. When someone buys one of your photos, you get a commission.
Websites, companies, and blogs use stock photos for all different kinds of reasons. Businesses use them to improve their content, websites, or overall appearance, as they may not have the time to take photos of everything they need.
I personally use stock photos in my blog posts all the time, and I know many, many others who do as well. The photos throughout this article are all stock photos, so you can see how useful they are to website owners.
Stock photography includes pictures of things like:
Travel, landscapes, and outdoor scenes
Business settings like laptops, offices, and people working
Family moments, including parents and children
Household items, such as living areas and kitchens
Animals, including pets and wildlife
Vehicles like cars and boats
Sports, from professional events to casual games
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
9. House sitting
For some people, house sitting is the ultimate dream job. You may be able to watch houses around the world in dream destinations after all!
House sitting involves taking care of someone’s house while they’re away. It’s a way to earn money without much effort. Your responsibilities include staying in the house, making sure everything is safe, collecting mail, and sometimes looking after pets or watering their plants. Many times, people just want it to look like someone is living in their home so that no one will try to break in.
You can find house sitting jobs on websites like TrustedHousesitters and Care. You may also find these types of jobs through dog walking gigs, such as on Rover.
10. Invest in REITs
Investing in a Real Estate Investment Trust (REIT) is like buying a small piece of many buildings without the hassle of managing them.
REITs are companies that own many real estate properties, and they earn money by renting out space in those properties. Imagine shopping malls, apartments, and offices as examples.
Here’s how it works:
Choose a REIT – Look for REITs with good histories, like those experts trust.
Invest Your Money – You can start with a small amount of money.
Earn Money – REITs make cash from their buildings. They share this cash with you through dividends.
11. Pose for art classes
If you can stay still for a while, you might like posing for art classes. When you pose, art students look at you and draw or paint your picture. It’s a way you can make money by just sitting or standing.
Most times, art models get about $20 to $30 each hour. You’ll usually be there for around three hours or more.
What will you do? You will hold a pose. A pose can be something like sitting in a chair, standing, or making an interesting shape with your body. These poses can last from five to twenty minutes. Don’t worry, you get breaks so you can stretch and rest.
Who can do this? You don’t have to look a certain way. Artists need all kinds of people to learn how to draw humans well. You just need to be okay with being looked at while you are posing.
Where to find these jobs? Check with local art schools, colleges, or community centers. They usually need new models. You can also look online for art model jobs in your area.
12. Listen to music
If you enjoy music, you can actually make some money by listening to songs. You can use apps and websites that pay you just for listening. Companies want your opinion on new music, and they’ll pay you for your time!
Slicethepie is a popular site that pays you to listen to music. Other popular sites include Playlist Push, Current Rewards, and Hit Predictor.
Here’s how it typically works:
Step
Action
Find an app
Look for apps that offer payment for music listening.
Sign up
Create an account on these platforms.
Listen and rate
Start listening to music and provide your honest feedback.
Earn
Collect your earnings, usually through points that can be converted into cash or gift cards.
13. Get paid to work out
Yes, you can get paid for being active, even while doing your regular workout!
Apps like HealthyWage make staying fit exciting by allowing you to bet on your fitness goals. You set a weight loss target, bet on yourself, and join others with similar goals. If you achieve your goal first, you win money from the prize pool. It’s a friendly competition with a chance to earn a financial reward.
14. Become a notary
If you want to earn money with little effort, you might think about becoming a notary. As a notary, your job is to be a witness when people sign important papers and to check that the people signing are really who they say they are.
So, yes, you are still working a job, but you are simply watching people sign papers.
What notaries do:
Meet people who need papers signed.
Check their IDs to make sure they are who they say they are.
Watch them sign the document.
Use your notary stamp and write in your record book.
You can make anywhere from $9 to $21 per hour, but it depends on things like where you live and if you have to go to people or they come to you.
15. Mattress tester
Testing mattresses is a unique side hustle where you can make money by just testing out mattresses.
As a mattress tester, you’ll test beds and write reviews about your sleep quality, comfort, and any other observations. Your feedback is valuable as it helps companies improve their products to better meet customer needs.
Some mattress companies pay individuals like you to test their products. This helps them figure out how comfortable their mattresses are and how they can make them even better.
You can find these gigs by researching local sleep clinics or mattress companies that offer paid studies or testing.
I have actually been paid to test mattresses in the past, and it is easy! I was only paid with free mattresses, but at one point in a single year, I think I received 5 or 6 mattresses. I ended up giving away a couple to friends and family because the work was so easy.
16. Join a sleep study
Similar to testing out mattresses, you may be able to get paid to join a sleep study.
Sleep studies are research projects that help doctors understand sleep patterns and disorders. If you’re interested in earning money while contributing to science, participating in one of these studies is an option. Typically, sleep studies seek specific types of participants, such as a particular age group or weight range. Your initial step is to determine if you meet their requirements.
After being accepted into a study, you’ll visit the center for tests. During the study, you might wear special equipment while you sleep. This equipment helps researchers monitor and track your sleep patterns.
The payment you receive depends on how long the study is, which might be for one night or even several weeks.
Many universities, like the Harvard Division of Sleep Medicine, pay for sleep studies.
17. Put an advertisement on your car
If you want to earn extra money without doing much, think about turning your car into a moving billboard. Companies will pay you to put their ads on your car.
To start, join a car wrap advertising company like Carvertise or Wrapify. They’ll place a special sticker, called a car wrap, on your entire car or specific parts of it. These companies seek drivers to display ads on their cars, and the more you drive and the places you go can increase your earnings.
Your car’s make and model, condition, and paint quality are important. They decide how well the ads will stick and look.
The type of ad wrap you choose changes how much you get paid too. The options are:
Full wrap
Partial wrap
Just the windows
Here’s what you might be able to earn:
Car Wrap Type
Possible Earnings
Full Wrap
$200 to $1000 per month
Partial Wrap
$150 to $250 per month
Window Ads
$100 to $250 per month
Keep in mind that the earnings can vary. It depends on factors like how frequently you drive and where your car is visible.
Recommended reading: 6 Best Ways To Get Paid to Advertise On Your Car
18. Rent out a spare room in your home
If you have an extra room in your house and want to earn passive income streams, you can make money by renting it out. This is a smart way to earn cash without much work.
I have had several roommates over the years. We would rent out our spare room to long-term renters and people that we personally knew (such as friends and my sister).
To find a roommate and earn rental income, you can advertise your space in various places. You can announce on your personal Facebook page, place an ad on websites like Craigslist, create a rental listing on Airbnb, and more.
Whether you have a house or an apartment, this may be an option available to you.
19. Use cash back sites
When you shop online, you can earn money back on what you spend by using cash back sites.
Think of it like getting a discount, but instead of saving money right away, you get some cash back later.
I use cash back sites and apps pretty much every single time I shop – it’s easy, free money for me.
Popular cashback sites include:
Rakuten – Gives you a percentage of your money back.
Swagbucks – Earns points that you can exchange for cash or gift cards.
Fetch Rewards – I use this site for every single grocery receipt I have.
Ibotta – Another easy grocery scanning app to use.
For example: To get cash back, all you need to do is create a Rakuten account, visit their website, and click on the store where you want to shop (such as Target, Best Buy, Old Navy, etc.). They will then redirect you to that store, and you can shop online as you normally would to get cash back.
These types of sites typically pay via free gift cards or PayPal cash.
20. Rent out your RV
Renting out your RV can be a way to earn extra money on something that might be sitting around collecting dust (and rust!).
By renting it out, you could potentially make $100 to $300 a day or even more.
RVing has become very popular these days, and people frequently rent RVs to explore on vacations or even to try out a specific RV model before making a purchase.
One RV rental platform that I recommend is RVshare. RVshare is basically an Airbnb just for RVs. It’s a site where you can list your RV for rent and RVshare will handle all payments and bookings for you.
Similar to this, you can also rent out your car on Turo!
Recommended reading: How To Make Extra Money By Renting Out Your RV
21. Receive a pension
Getting paid to do nothing may sound like a dream, but if you have a pension, it’s a real thing that can happen when you retire.
A pension is money that you get regularly after working for a certain number of years.
When you work at a job that offers a pension plan, your employer puts money into this plan for you. When it’s time to retire, this money comes back to you, usually every month.
The amount you get usually depends on three things:
Age – Generally, the older you are when you retire, the more you get.
Salary – How much you earned at your job can affect your pension.
How long you worked there – The longer you worked, the higher your pension.
Sometimes, you might have the option to receive all your pension money at once, known as a “lump sum.” It’s a substantial, one-time payment instead of monthly checks. Make a wise decision by considering what works best for you. If you’re unsure, seeking advice from someone knowledgeable about finances could help you decide.
Frequently Asked Questions About Getting Paid to Do Nothing
Below are answers to common questions about how to get paid to do nothing.
How can I get money for doing nothing?
You might be surprised, but there are ways to earn money with little to no effort. For instance, using a cash back credit card for your everyday spending allows you to get a percentage back. You can also do any of the things above, such as selling digital downloads online, finding a job that will pay you a pension once you retire, investing in dividend-paying stocks, and more.
What are jobs where you do nothing and get paid a lot?
So, it can be hard to work an actual job that pays you a lot of money to do nothing. After all, if that existed, then everyone would be doing it, haha! Some jobs do pay you, though, for simple tasks, such as being a notary.
Can I really make income by just being idle?
Yes, you can make passive income through methods like earning interest from a high-yield savings account or renting out your spare space.
Where can I find jobs that don’t expect much work from me?
Look for gig economy jobs where you can earn money based on the tasks you choose to accept, such as delivering food or charging electric scooters. There are so many other side jobs that aren’t even mentioned on the list above, such as creating an online course, becoming a taste tester, micro-investing (such as with the Acorns app), becoming a background actor, watching ads, affiliate marketing, delivering groceries, writing a book review online (such as for Kirkus Media), playing games, talking with an online companion or strangers, and more.
How to get paid to do nothing online?
Some ways to get paid to do nothing online include selling digital files and stock photos. These will both require initial work from you, but eventually, these will sell with little work needed by you.
How To Get Paid to Do Nothing – Summary
I hope you enjoyed this article on how to get paid to do nothing and found one or more gigs that fit what you’re looking for!
As you can see, there are many ways to get paid to do nothing (or almost nothing).
You can grow your savings effortlessly with high-yield savings accounts or make money by renting out extra storage space. Investments in stocks that pay dividends or REITs can give you money regularly without needing your daily attention.