In 2019, one out of every 100 homes were purchased by an iBuyer, short for instant buyer, per a new report from real estate brokerage Redfin.
While it doesn’t sound like iBuying is catching on, consider the fact that the number is up nearly double from 0.6% in 2018.
And about 10 times higher than it was back in 2016, when virtually nobody sold their home via an iBuyer service.
Also recognize that iBuying at scale is a very novel concept, and a business that big household names have just recently got involved in.
Some of the larger names in the space include Offerpad, Opendoor, RedfinNow, and Zillow Offers.
Simply put, an iBuyer will purchase your home for a fee somewhat similar to what a real estate agent would charge, only to rehab it and list it weeks or months later to a new buyer.
The advantage is you don’t need to find an agent, list it, stage it, hold open houses, and deal with uncertainty from prospective buyers.
In essence, you can consider these iBuyers institutional home flippers.
If they streamline their operations enough to lower costs, they might grow even more popular and eventually displace thousands of real estate agents.
iBuying Most Common in Raleigh
While iBuyers still account for a tiny piece of the overall pie, they snagged a whopping 7.3% share of home sales in Raleigh, North Carolina last year.
That was nearly double the 3.9% share reported in 2018, a testament to both the viability of iBuying and the good fit cities like Raleigh present to such companies.
Per Redfin chief economist Daryl Fairweather, places like Raleigh are “iBuyer sweet spots” because they are affordable, have newer housing stock, and are easy to price because many of the homes reside in homogeneous tract neighborhoods.
Raleigh is also a city poised to see home price growth, another important detail iBuyers have to consider when looking to turn a profit.
Lastly, it has been a pilot city for many iBuyers, who aren’t live in all cities across the United States just yet.
Similarly hot was Phoenix, AZ, where iBuyers scooped up 5.9% of homes for sale, followed by Charlotte and Atlanta (tied at 5.2%), and Las Vegas (4.1%).
iBuyers had a market share of 3% or more in 11 markets nationally, and at least 1% share in 21 total markets.
Again, because iBuyers haven’t rolled out to all cities nationwide, the numbers are still a bit scattered and lopsided.
In terms of volume, iBuyers purchased the largest number of properties in Phoenix (5,200+), followed by Atlanta (4,300+) and Houston (2,100+).
iBuying Surged in Tucson During the Fourth Quarter
iBuyer market share saw its biggest year-over-year increase in Tucson, AZ, where the number rose from 3.1% of homes in the fourth quarter of 2019 from zero a year earlier.
Again, this may reflect companies moving into new markets, but it also shows how quickly they are gaining traction and beating out traditional agents.
The second biggest increase was in Denver, CO, where the iBuyer share rose to 2.7% from 0.4% the year before.
Despite growing popularity, iBuyer market share did fall year-over-year in select markets, including Las Vegas (-3.4%), Phoenix (-1.2%) and Orlando (-1.0%), compared to Q4 2018.
However, Orlando was the only metro area to see its share fall on an annual basis from 2018 to 2019, declining from 2.6% to 2.2%.
iBuyers Like to Buy Homes on the Cheap
As noted, iBuyers tend to be interested in mid-market homes that are easily bought and sold, but there’s still quite a range nationwide.
The most expensive markets in 2019 were Riverside, CA, Denver, CO, and Portland, OR, where these companies purchased homes at a median $391,000, $386,000, and $377,000, respectively.
The cheapest markets included Tucson, AZ, Jacksonville, FL, and Atlanta, GA, where the median was $201,000, $202,000, and $212,000, respectively.
Overall, iBuyers paid a median $269,000 for the homes they purchased, up three percent from 2018, but well below the national median of $306,000 in January.
In every housing market other than Riverside, CA and Orlando, FL, iBuyers paid below the metro-area median.
In terms of unloading the homes once purchased, iBuyers were able to sell homes 15 days faster in 2019 than they did a year earlier, this despite the typical home sale taking two days longer.
iBuyer-owned properties were listed on the market for a median 38 days in 2019, compared to 53 days in 2018.
Meanwhile, a non-iBuyer home spent a median 37 days on the market last year, compared to 35 in 2018.
If iBuyers get better at what they do, it might become a more practical solution for home sellers, assuming these companies pass the savings onto consumers.
Applying for a life insurance policy often involves multiple steps and can take longer than getting other types of insurance. Let’s take a look at what’s commonly involved in the life insurance application process so you can proceed with confidence.
Term or Whole?
Before applying for life insurance, it’s a good idea to consider such things like how much coverage you need, how much you’re prepared to pay for premiums, and which riders you might like to include. You’ll also need to figure out whether a term life or permanent life policy makes sense for you. Whole life insurance is one type of permanent life insurance.
Term life and whole life insurance have important differences. Term life tends to be simpler and more straightforward. Someone purchases a policy for a certain dollar amount and term, and then has life insurance coverage for the designated time period (10, 20, 25, or 30 years, for example).
If the policyholder keeps up premiums and dies within that term, beneficiaries will receive the appropriate payout. Monthly payments are generally fixed with term life policies.
Reasons people choose term life include:
• Term policies almost always cost less than whole life, sometimes significantly so.
• Policyholders predict they’ll have enough money saved by the time the policy expires.
• Beneficiaries are expected to be financially independent by the time the term expires.
Whole life policies, which also require regular payments, are intended to last the holder’s entire lifetime — there is no expiration date. They can cost up to 10 times as much as a term life policy because part of that money is invested into what’s called the policy’s cash value.
Policyholders can typically borrow against their cash value at an interest rate that’s specified in their policy. They may also be able to cash in their policy to receive money; that action closes out the whole life policy. Whatever is left over after the policyholder dies will be distributed to beneficiaries.
Recommended: 8 Popular Types of Life Insurance for Any Age
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The Application Process
When you’re ready to get the ball rolling on obtaining a policy, the first step is to fill out an application with your carrier of choice. The insurance company will review the application for completeness. If any information is missing, they’ll likely follow up to ensure that the application is completely filled out. Some carriers may conduct a phone interview when someone applies, while others do so only if an application is incomplete.
Recommended: How to Buy Life Insurance in 9 Steps
The Underwriting Phase
Next comes the underwriting phase, which every applicant goes through. There are two tracts of underwriting available: traditional and accelerated. The traditional tract requires a medical exam, and your blood and urine samples may be collected. The accelerated tract typically does not require a medical exam or blood or urine tests.
During this time, the insurance company will review your application for a wide range of factors that may include:
• Your age
• Your gender
• Your current health
• Your personal health history, including prescriptions
• Your family health history
• Your lifestyle and personal habits (for instance, a history of alcohol abuse or tobacco use)
• Your occupation
• How frequently you participate in hobbies that could be considered high risk
• Other factors, including your driving record
The insurance company uses this information along with actuarial tables to determine your risk profile, or how much of a risk you are to insure. Your risk profile can impact how much coverage you qualify for and at what cost.
Medical Exams
A life insurance carrier will sometimes require a medical exam before issuing a policy.
The exam may be similar to a person’s regular annual physical. A medical tech will likely ask questions that are similar to those on the application, and a professional will conduct a physical exam. It can include measuring height and weight, checking blood pressure, and taking blood and urine samples.
In some cases, an EKG may be performed to measure the electrical activity of the heart. Men over age 50 may need to have a prostate-specific antigen test done to check prostate health.
When medical exams are required in applying for life insurance, it’s part of the underwriting process that helps a carrier understand the risk level of insuring the applicant. The tests performed can indicate if a person has high blood pressure and/or high cholesterol, elevated glucose, or other health issues.
Contestability
Some people may be tempted to downplay personal health issues when filling out a life insurance application. That is never a good idea. If someone didn’t fully disclose the truth about their state of health and died within two years of getting a policy, the insurance company can delve into the details. If information is found to be lacking or inaccurate, the carrier could deny beneficiaries the death benefit.
The Takeaway
Applying for life insurance often starts with deciding how much coverage you need, how much you’ll pay in premiums, and whether a term life or permanent life policy is right for you. Once you’ve finished comparison shopping and weighing your options, the first step is to fill out an application with the carrier of your choice and then undergo an underwriting process. During this time, the insurance company will consider a number of factors, including your age, gender, current health, personal health history, family health history, and lifestyle. A medical exam may also be required. The insurer uses this information, along with actuarial tables, to determine your risk profile, which can impact how much coverage you qualify for and at what cost.
If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
FAQ
Are there advantages to applying for life insurance when you’re young?
Yes, because carriers generally base policy price on risk factors, buying a policy when you’re young and healthy typically means lower premiums. Plus, with some term life insurance policies, buyers can lock in pricing when they purchase, and locking in at a low rate can be a financial plus.
Can I change the specifics of a life insurance policy — for example, change the amount of coverage?
Yes, some insurance carriers do allow this kind of flexibility. Current policyholders should check with their carrier. New applicants can check with the carrier to see what kind of flexibility is provided.
Is having employer-sponsored life insurance enough?
Maybe. While having this benefit is good, these policies are generally in the amount of one to two times an employee’s salary. That’s typically not enough to address debt and provide sustained financial help to beneficiaries, which is why it may make sense to purchase a second policy. Plus, employer plans may not be portable: If the employee leaves the company, the policy may be terminated.
What’s the right amount of coverage?
Each person’s situation is unique. Some use the DIME formula to determine the right amount. That acronym stands for Debts, Income, Mortgage, and Education. What will be needed to cover all of those bases? To streamline the process, you might want to calculate your life insurance needs.
Does it make sense to use an agent when buying life insurance?
Possibly. An agent can educate a consumer about what’s involved in getting a life insurance policy. This can be especially helpful if the process seems overwhelming. Many agents work on commission, so using one that does charge a commission can cause the cost of the policy to go up. Higher commissions are typically charged on whole life policies than on term life. However, not all agents charge a commission.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOPT0523006
Owning a real estate property is a significant investment that can be lucrative compared to other assets, such as owning stocks or bonds. One huge advantage is the concept of leveraging when you want to invest in real estate. One can pay a small portion of the total cost and pay the remaining together with interest over a long period.
For instance, most mortgages require an initial down payment of about 20% of the property and occasionally can be as low as 5%. With this arrangement, you can control. You can invest in different ways in real estate and start making money.
Real Estate Investment Trusts (REITs)
Real Estate Investments Trusts (REIT) are among the best vehicles for investors to get into real estate investment without following the traditional transactions. It is a regulated investment where a trust (corporation) uses finances from investors who pool their funds to buy and operate income-generating properties.
Typically, REIT uses the investor’s funds to build or purchase real estate property, which they sell or rent to gain profits. At the end of the financial year, the income generated is shared among the investors or the shareholders. Some of the real estate properties managed under the REIT may include apartments, shopping malls, office buildings, warehouses, and resorts, among many others.
All along, real estate investment trusts have been among the best-performing set investment portfolios.
For instance, from 2010 to 2020, the FTSE NAREIT Equity REIT index averaged 9.5% in annual returns. Between 2017 and 2020, the index stood at 11.25% and was higher than the S&P 500 or Russell 200 performance that averaged 9.07% and 6.45%. REITs can be bought and sold like any other stock in leading exchanges. Therefore, investors looking for returns on their investments and traditional assets should consider these real estate assets. Republic is a real estate company that can offer you more information on different investment assets in real estate.
There are different types of REITs one can invest in, and they include the following.
Mortgage REITs
Retail REITs
Healthcare REITs
Residential REITs
Office REITs
If you’re interested to know how to invest in any of the above types of REITs, you can get in touch with Republic for guidance and advice on what will suit you best.
Any investor anticipating REITs needs to distinguish between mortgage REITs that offer to finance for properties and Equity REITs that own properties.
Real Estate Crowdfunding
What is real estate crowdfunding ? In many respects, real estate crowdfunding is almost similar to equity crowdfunding because the investors buy the property and become shareholders. It is a relatively new phenomenon in real estate, and like any equity investment, the investor does not have to buy the whole property, but instead, they earn part of the profits generated in the investment. Income obtained from building rentals or proceeds from the sale is shared among the investors.
Crowdfunding is a technique of raising funds for a business or venture capital. Its approach uses Twitter, Facebook, Linkedin, and other social media platforms to attract investors.
The principle of crowdfunding is that many people can invest tiny amounts and because many people are involved, and substantial amounts of funds can be raised so fast. One advantage of real estate crowdfunding is that potential investors can become shareholders in real estate property with as little as $5000.
Before the JOBS Act, investors in real estate could only invest in real estate through REITs or buying the property.
Now, crowdfunding has opened new ways of investing in real estate and will reduce the risks that come with an equity portfolio. This means that it allows the investor to diversify risks in their portfolio because all funds are not exposed to all equity markets’ risks.
Some Regulations in Real Estate Crowdfunding
Like any other investment, a real estate crowdfunding investment comes with its risks. Initially, crowdfunding was only the preserve of the accredited investors. These are the investors such as pension funds, banks, insurance companies, and other large investors. An accredited investor means that one should have a net worth of more than $1million or needs to be earning $200,000. However, according to the Securities Exchange Commission (SEC), non-accredited investors can participate in crowdfunding. There are specific limitations placed on non-accredited investors.
If you’re interested in real estate crowdfunding as an investor Republic can offer all the necessary information to participate in this lucrative industry.
Ben Shepardson is a Realty Biz News Contributing Writer and has a long track record of success in online marketing and web development. While pursuing a bachelor’s degree in Computer Information Systems, he worked doing enterprise-level SEO and started an online business offering web development services to small business customers.
Los Angeles Mayor Karen Bass’ homelessness team is looking to purchase a 15-story hotel in the city’s Westlake neighborhood, the latest big expenditure planned as part of her “Inside Safe” program.
In a memo sent to the council’s Budget, Finance and Innovation Committee, Bass and her team acknowledged they are seeking to acquire the 294-room Mayfair Hotel, which served for two years as interim homeless housing before closing its doors last summer. The building has been listed for nearly $70 million in recent months.
Bass and her team declined to say how much the city has offered, saying the price will be revealed when the transaction goes before the city’s municipal facilities committee next month. They said the hotel would serve as a critical tool in the city’s fight against homelessness, helping to reduce the leasing costs associated with Inside Safe, which has moved about 1,200 people off the street and into hotels, motels and other facilities.
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If the city finalizes the purchase, the Mayfair would be a key part of the city’s effort to create “permanent interim housing” — city-owned residential buildings where homeless people can live for up to a year before finding their own apartments.
Under the proposal, the city would provide an array of services on the Mayfair’s ground floor — substance abuse counselors, mental health clinicians and public health workers, Bass said.
“There’s no shortcut to do this. You can warehouse people in a shelter if you want, and they’ll stay there for a couple of days and they’ll be right back out on the street,” Bass said. “We have to think outside of the box, and maybe a little bit outside of the boundaries of what the city is normally doing.”
A broker representing the Mayfair referred questions to Alex Moradi, an executive with the ICO Group of Companies. Moradi did not respond to several requests for comment.
However, Bass’ homelessness team confirmed that the city signed a nonbinding letter of intent with Mayfair Lofts, the hotel’s owner, three weeks ago. That company is affiliated with ICO, according to information provided by the county assessor’s office.
Bass has asked the council to allocate $250 million for Inside Safe, which has targeted encampments in Hollywood, Venice, South Los Angeles and other parts of the city, in next year’s budget. That figure does not include any money that would be needed to purchase the Mayfair. If the sale goes through, the cost of Inside Safe could exceed $300 million for the coming budget year.
Councilmember Katy Yaroslavsky, who serves on the council’s budget committee, endorsed the idea of purchasing hotels and motels, saying the city will need “thousands and thousands of units” to address its crisis.
Yaroslavsky said her office has tried repeatedly without success to lease hotels and motels in her affluent Westside district. But paying rent to motel owners is also “not a good long-term strategy,” she said.
“The logistics of trying to negotiate one-off [agreements] with hundreds of motel owners puts us in a bad bargaining position,” she said. “When we go one by one, we’re not optimizing our buying power.”
On Wednesday, Bass and Yaroslavsky went to the mayor’s 16th Inside Safe operation, located along a stretch of San Vicente Boulevard in L.A.’s Beverly Grove neighborhood, which is part of Yaroslavsky’s district. Nearly two dozen tents had taken hold on San Vicente’s median strips and other rights of way.
Jeremy Mosley, who had been living on one of those medians, said Wednesday he was ready to make the move. But he sounded unsure about relocating to a motel in South Los Angeles, more than a dozen miles away.
“I want to see what it’s like. Because this does look bad. I know it does,” he said, gesturing to the furniture, tarps and other possessions that occupied the median.
The mayor’s proposed homelessness budget for the coming year lists four separate line items for the acquisition of interim housing, which add up to $73 million. Bass’ team declined to say whether all or a portion of those funds would go toward the Mayfair.
Those funds are not included in the $250 million being requested for Inside Safe.
The Mayfair was the site of a $37-million renovation in 2018 and 2019, according to the property’s real estate listing. In 2020, it became one of several hotels across the city to participate in Project Roomkey, a federally funded program that moved homeless Angelenos off the streets as part of the nation’s response to the outbreak of COVID-19.
City leaders voted to end the Project Roomkey program last year. But several of the locations that participated in the program continue to serve as temporary housing for L.A.’s homeless population.
Last fall, the council voted to keep the Highland Gardens Hotel operating as temporary homeless housing at least through June 30. That facility, located in the Hollywood Hills, offers 72 rooms, or up to 143 beds.
City Administrative Officer Matt Szabo said the hotel will probably remain as interim homeless housing through 2025, at a cost of about $6 million per year. At that facility, leasing costs are about $4,550 per room per month, according to a report to the council. Once social services offered by PATH, or People Assisting The Homeless, are included, the monthly room cost exceeds $7,000.
Councilmember Nithya Raman, who represents the Hollywood Hills, worked to secure Highland Gardens before Bass took office. Bass, for her part, was closely involved in the effort to retain another Project Roomkey hotel, the L.A. Grand in downtown Los Angeles.
The L.A. Grand was originally slated to close as temporary homeless housing on Jan. 31. Bass’ team succeeded in leasing 481 rooms at that facility for an additional year. The monthly cost of a room, which includes not just lodging but also meals, is $154 per night, or nearly $4,700 per month, according to a memo provided to the council last month.
The council would need to sign off on a purchase of the Mayfair. Meanwhile, at least one former Mayfair resident is objecting to the proposed acquisition.
Cynthia “Mama Cat” Trahan, 62, who lived in the Mayfair for about four months, said Project Roomkey staff treated the hotel’s temporary guests with “very little respect,” searching them when they entered the building and sometimes going into their rooms without permission, she said.
Buying the hotel is “just not a good idea,” said Trahan, who now lives in an apartment in Glendale.
“We should be investing in putting people in apartments, not hotel rooms,” she said.
Watch L.A. Times Today at 7 p.m. on Spectrum News 1 on Channel 1 or live stream on the Spectrum News App. Palos Verdes Peninsula and Orange County viewers can watch on Cox Systems on channel 99.
NFTs or non-fungible tokens have gained a lot of momentum in the last few months. Whether it’s because of the digital art, the technology behind them, the money-making potential, or a simple case of FOMO, people can’t get enough of them.
Each day, we wake up to stories of artists and celebrities buying and selling NFTs for insane amounts. Case and point? Eminem recently shelled out 123.45 Ethereum (currently worth over $400K) for a Bored Ape NFT — and that’s not even the most expensive one in the market.
As someone who’s crawling herself out of student debt and on a budget, paying six figures for a digital asset is simply out of the question.
But are all NFTs that expensive? Or is there a way to start small?
I talked to NFT trader investor, consultant, advisor, and founder Ish Verduzco to find out, and, to my surprise, his answers were very promising.
What’s Ahead:
Do you have to be rich to invest in NFTs?
Last March, digital artist Mike Winkelmann, better known as “Beeple,” made headlines when an NFT of his work was sold for a record-breaking $69 million.
Then, we saw Snoop Dogg and Grimes buying and selling NFTs for six and seven figures, while Paris Hilton joined forces with Bill Ackman to back a $300 million NFT Foundation.
With figures like that, it’s easy to think that NFTs are some sort of exclusive investment that only the rich can afford. However, that couldn’t be further from the truth — at least that’s what both Verduzco and the data say. Verduzco says:
“Yes, there is some level of barrier to entry at the moment. But I wouldn’t say that they’re for the ultra-rich either…I think there’s an opportunity to get in.”
What makes NFTs more expensive than your average investment is that most of them are minted through smart contracts that live in the Ethereum blockchain, which Verduzco says is one of the most expensive ones, partly due to the gas fees.
Gas fees are basically the transaction fees of the Ethereum network. These fees are non-refundable, and must be charged to cover the costs of the energy used by the computers when validating and recording each NFT transaction. Verduzco says:
“To give you a very quick overview, it can cost like $50 to a few $100 just to transact, plus the cost of the NFT itself.”
So, how much money do you need to start investing in NFTs?
A recent study by Canadian concept artist Kimberly Parker, which analyzed public API data from sales on popular NFT marketplaces, like OpenSea, Nifty Gateway, Rarible, SuperRare, and MakersPlace, found that most NFTs are actually sold for under $200.
That’s right, you don’t need six figures — not even four figures, to own an NFT.
Verduzco says that a good amount to get started would be $500, which isn’t outrageous. After all, popular investment firms, like Wealthfront and E*TRADE, require minimum deposits of that same amount for you to start investing in their automated portfolios.
Read more: What Is An NFT? – How Nyan Cat Was Sold For $600,000
Why now may be a good time to get into NFTs
Many crypto and NFT experts — Verduzco included, think that the blockchain and smart contract technology behind NFTs will spread like wildfire across multiple industries, changing the world as we know it.
“It’s going to be integrated into almost everything we do,” Verduzco says.
“It’s not just going to be just art, it’s going to go into music, it’s going to go into film, it’s going to go into transacting things like deeds to houses, and anything that has to do with verification of ownership.”
Here’s a quick example of how this could work:
When you’re buying a house, the bank needs to make sure that the title is free and clear before closing on the loan. This process alone can take two weeks, and you’ll have to pay additional fees to the third-party company conducting the search.
But if the house was registered and sold as an NFT, for example, each transaction pertaining to that property would’ve been accounted for and recorded in the blockchain. So, clearing the title would only take a couple of hours instead of weeks, and you’d be able to get rid of the middleman and unnecessary fees.
Although the concept of NFTs is still in its early stages, Verduzco says that “it’s better to be ahead,” and — if possible — invest in it, so you learn the inner workings firsthand.
This will allow you “to spot more opportunities to make money, or find other people that are in this space who compliment your strengths and weaknesses in order to build projects based on needs.”
How to start investing in NFTs when you’re on a budget
As part of my convo with Verduzco, we bounced off some ideas on how you can get into the NFT game without breaking the bank. These are a few of them.
Read more: How To Create And Sell NFTs – The New Way To Sell Your Art
Explore NFT projects that use cheaper cryptocurrencies
If you visit OpenSea, which is currently the world’s largest NFT market, you’ll see that the vast majority of NFTs listed there use the Ethereum network (aka the most expensive NFT blockchain).
But just because most NFTs use this blockchain, that doesn’t mean that there aren’t other options.
Blockchains like Solana and Polygon (which was created as an efficient solution to the Ethereum network and is compatible with it) use cryptocurrencies that are much cheaper than ether, which is Ethereum’s currency.
Here’s an example:
At the moment this article was written, one SOL, which is Solana’s cryptocurrency, was worth $0.26, while one MATIC, which is Polygon’s cryptocurrency, was worth $2.13. But, if you wanted to purchase one ether, which is Ethereum’s cryptocurrency, you’d need $3,121.93 to do so.
So, yeah, there’s a huge difference there.
These alternative blockchains are also rising in popularity. JPMorgan recently released a report in which it states that the Ethereum blockchain is losing a chunk of its market share to Solana, as the blockchain is less congested (aka faster) and cheaper to invest in than Ethereum.
If you’re interested in buying NFT projects that use the Solana network, you can check out marketplaces like Solsea and Solanart, to find them.
When it comes to projects that use Polygon, you can find them just by visiting OpenSea. To see all the NFTs you can place bids on or buy using this network, simply click on the “Chains” option on the left panel, and select “Polygon.”
Mint a project
When you mint a project, you’re basically investing in it before it actually goes live. So, you could think of it as the Kickstarter of an NFT project. Verduzco says:
“The initial mint is usually like 0.05 Ethereum, which is a relatively small amount. If you happen to make it in that initial mint, then you pay only 0.05 Ethereum, versus if the project goes up in value, and then it costs 0.7, or much higher.”
One good example of an NFT project that is currently in its minting phase, and that I happen to like a lot is the Lucky Goat. You can currently mint this project for 0.0777 Ethereum ($243.43).
What has me rooting for the Lucky Goat (besides the art, of course) is that they donate some of their profits to Heifer International, which is a nonprofit whose mission is to help eradicate hunger and poverty.
So, how do you find projects to mint?
Twitter. If you enter “#mint” or “#NFT” on Twitter’s search bar, you’ll find countless threads of founders and artists sharing their upcoming NFT projects.
Discord. In case you don’t know what Discord is, it is a group-chatting app, where users join servers (aka private groups) to chat about a specific topic. Many NFT founders use this app to talk about their upcoming NFT projects, to get both support and feedback from users.
rarity.tools.Although this website is mostly used by NFT traders to vet projects and find rankings based on their rarity or unique traits, it also has an Upcoming NFT Sales section, where you can check projects to mint.
OpenSea’s homepage. They often share new mints, and you can easily browse through their huge NFT market.
But be careful…
Before minting a project, Verduzo says it’s super important to ensure its legitimacy, so you don’t get rugged (NFT lingo for “scammed”). Sadly, just like in any space, there are always bad players that are just there to do a quick cash grab and disappear.
To avoid this, make sure you research the project thoroughly by finding out all you can about its community, founders, and mission, as well as how long they’ve been around in this space.
Why?
If the project disappears into the mist, your NFT most likely will lose all its value, unless someone else decides to take over the project.
Time your purchase
Unlike the stock market, which is open for transactions Monday through Friday, from 9:30 a.m. to 4:00 p.m. ET, the NFT market is a global market that is open 24/7.
“So, it’s not just you and everybody else in the United States that you’re transacting with, it’s everybody in the entire world who has access to the Internet,” Verduzco says.
And, the more people that are trying to conduct transactions on the Ethereum network, the more congested it will be, which automatically translates to higher gas fees. This will hopefully be improved once Ethereum 2.0 (also known as the consensus layer) is fully rolled out.
One way to spend less money when buying NFTs is to ensure you conduct your transactions during the time of the day when the network is less congested.
Verduzco says that 11:00 a.m. to 1:00 p.m. PST is probably the worst time of the day to buy NFTs because that’s when most people around the world are awake. He suggests timing your transactions to random hours when most people are sleeping, like 2:00 a.m. or 5:00 a.m. PST. Though not always practical, it can help save a good amount of money.
You can also track gas prices by visiting the ETH Gas Station.
Become an NFT expert
Since NFTs are still an emerging concept, Verduzco says that one way you can make money in this space, without being an investor, is by learning all you can about them.
“It doesn’t always have to be investing in an NFT collection, in order to get a return,” Verduzco says.
“Understanding everything about the NFT space and becoming very good on one specific skill set, whether it’s social media marketing, community management, creating Discords, branding, or content creation, is going to provide value because, all of a sudden, you open yourself up to many job opportunities.”
In other words, you’ll be able to profit from your NFT knowledge as this technology becomes more widespread, and companies start searching for people who know their way around this space.
Before investing in NFTs…
Make sure your finances are in order
Investing in NFTs represents a higher risk than investing in traditional stocks or bonds, as their value is determined by speculation, so it fluctuates more than with your average investment.
Besides that, once you purchase an NFT, the transaction is final, and flipping them or reselling them could take a while. That’s why it’s so important you only invest money you have to spare, and not money you’re going to need short-term, as this could result in a financial disaster.
Learn as much as you can
“I would suggest investing your time and energy on learning before putting your money up,” Verduzco says.
“Find really cool projects that you like, and then join the Discords, listen to conversations, ask questions, watch a bunch of videos, read a bunch of blogs before you even think about putting Ethereum in your wallet to spend.”
Learning as much as you can about NFTs will give you a realistic idea of what to expect, plus determine whether you’re ready to take the plunge, or if you should wait a little longer before investing in this space.
If you’re curious about learning, you can check out podcasts, like a16z, which has extensive information on this topic, as well as reading books, like The NFT Handbook: How to Create, Sell and Buy Non-Fungible Token, to get started.
Additionally, Verduzco’s Twitter account is like a gold mine of NFT info, as he frequently shares projects, articles, and tips to help people learn more about this space.
Summary
You don’t have to be a millionaire to invest in NFTs, however, there’s a learning curve to be successful in this space.
The most important thing is to learn as much as you can about it, vet projects carefully, understand the risks associated with investing in such a volatile space, and make sure you don’t use money you’re gonna need. This will allow you to make the most out of your experience.
Last Updated: May 27, 2023 BY Michelle Schroeder-Gardner – 47 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
If you’re anything like me, then you probably LOVE the holidays. I enjoy the decorations, the food, the people, and everything that goes along with it.
However, I know not to get ahead of myself even though I love the winter holidays an incredible amount. Holiday spending can quickly get out of hand and it’s quite easy to destroy a holiday budget.
According to the National Retail Federation, the average family in the U.S. spent $730 on the winter holidays in 2013 (it hovers around this amount most years).
Holiday spending can quickly add up when you are paying for food, gifts, decorations, and more. Plus, if you plan on traveling then your holiday spending may be much higher than this $730 amount.
This high price tag sometimes causes families to put their holiday spending on a credit card.
This is a big problem because that debt will eventually need to be paid off. Plus, interest and other finance charges may be added to this amount, which may cause the small amount you may have put on your credit card to inflate into a much bigger number. This can then impact your credit score, your credit history, your debt to income ratio, and more.
These are all things that no one wants to experience, especially since the holidays are not about the money you spend – they are about spending time with your loved ones.
While sticking to your holiday budget at times may seem impossible, I want you to know that you can enjoy the holidays and not go into holiday debt.
Continue reading below to read more about the several ways to lower your holiday spending and stick to your holiday budget.
Create and stick to a holiday budget.
Before you start your holiday spending, you should create a holiday budget. Creating a holiday budget will help you analyze your spending so that you can spend less money and not go into any holiday debt.
You should look at how much money you have set aside for the holidays, how much you estimate you will spend, and possibly even add a little buffer just in case you go over your holiday budget.
Some of the things you may need to budget for include:
Decorations
Food (such as if you are hosting or attending a holiday party)
Gifts and cards
Travel and transportation
Related: How To Live On One Income
Plan a group gift exchange.
Instead of swapping gifts with numerous people, you may want to do a gift exchange where everyone draws names and each person only has to get one person a gift. This can save a person a lot of money, plus more thought and time can go into each gift.
This is something that we do with my husband’s family. All the younger children still get gifts from everyone, but all of the adults just do an exchange. It makes it much easier and more enjoyable!
Earn extra money for your holiday spending.
You may want to look into ways to earn extra money for your holiday budget if you want to spend more money than you have saved.
There are many things you can do in order to earn extra money for your holiday spending. You could sell items from around your home, work additional hours at your job, find a part-time position (tons of places hire during the holidays!), freelance, and more.
Below are several posts that may help you find ways to make extra money for your holiday budget:
Shop early.
I know this might be a little difficult since it’s already November, but starting now is better than waiting until the last day.
I know some who start shopping almost a full year before the holiday they are celebrating. You may call them crazy, but I’m sure it saves them a lot of stress and money later.
The earlier you start shopping, the more money you are likely to save. This is because you won’t be in a rush to find what you need and you will be able to shop the sales as they come. When someone is low on time, they are more likely to buy items they may not need at a price that is higher than usual.
Find the best deals.
Prices can vary from store to store. Before you start any of your holiday spending, you may want to shop around and see what stores have the lowest pricing.
You can find the best deals by:
Shopping online. I like to shop online first. This way I don’t have to waste any gas driving around and I can save time by shopping at home as well. Amazon is definitely my favorite place to shop online.
Using a cash back website. I highly recommend using a cash back website (such as Ebates – signing up under my link will give you a free $10 gift card to a store of your choosing as well, such as Target), so that you can receive free cash back for the money you are already spending.
Finding coupon codes for the products you are buying. Before you buy something, type the store’s name plus coupon code into a search engine to see if any coupon codes will pop in. An example would be “Airbnb coupon codes.”
Buying discounted gift cards. There are many gift card companies online that sell “used” gift cards you can get for cheap. You could gift one of these or just do your shopping with them so that you are shopping on a discount.
Do you tend to stick to your holiday budget? How do you feel about holiday spending?
To hear the storage industry tell it, every kitchen needs plastic containers in a dozen sizes. You need specialized storage, too: triangles for wedges of pie, say, or deviled-egg sarcophagi with little divots to cradle each demi-oeuf. Oh, and lots of foil, waxed paper, and plastic wrap and bags to hold sandwiches and snacks or cover bowls of leftovers.
My boxes of foil and plastic wrap last me up to a couple of years each. And while I’ll cop to owning a few Tupperware and Rubbermaid pieces, it’s all hand-me-down stuff — and note that I said a few. I don’t need much, and I don’t use much commercial wrapping, because there are plenty of other ways to store food.
Note: Before I share these frugal hacks, I need to address the issue of plastic. Some people are very nervous about chemicals leaching into their foods. If this is you, then ignore all mention of plastics below and focus on the other ideas.
Use What You’ve Got
Don’t automatically assume you need special food-storage containers. Why not just put leftovers in a bowl with a saucer or bread-and-butter plate on top? If it fits snugly, it’s no different than aluminum foil or a plastic lid. (What? You thought that “burping” a Tupperware container got all the air out?)
Glass food-storage dishes are all the rage now, but glass jars work just as well. The next time you finish up some jam, pickles or spaghetti sauce, save the jar. (Quart canning jars are good for food storage, too, if you can get them cheaply. More on that below.)
The upside: They’re free. The downside: They don’t hold as much as those big Tupperware bowls — and they don’t stack like them, either, so they take up quite a bit of room in the cupboard. I keep only a couple of them around and recycle the rest.
When cream cheese goes on sale, I stock up on the soft variety. Not only is it easier to spread, it comes in a sturdy and reusable container. I use these for small amounts of leftovers, or fill them with individual servings of pudding. (I’m also using one for odd nails, screws and other bits of miscellaneous hardware.)
Empty margarine tubs work much the same way. They tend to be larger, but that’s fine — you can put small leftovers in a large container, but you can’t put large leftovers in a small container.
Bonus: If you’re sending food home with dinner guests, you don’t worry about getting the Gold’n Soft container back. Nobody’s walking out the door with my Tupperware, though, because it belonged to my mother.
I buy Wyler’s sugar-free lemonade, which comes in little packets inside a plastic container. These containers have proved useful for stacking Christmas cookies as gifts. When I’m making jam and have a small amount left over, I’ll put it in a Wyler’s container and give it to my sister or a neighbor.
It’s in the Bag
I broke my toe last spring. When I looked for a plastic bag to use as an ice pack, I was amused by the variety of choices. I had bags that once held hot dog rolls, bread, and frozen soybeans, corn and mixed vegetables. I had the inner liners from boxes of cereal and crackers. I even had a number of Ritz cracker sleeves.
Here are a few ways I’ve used these items:
Plastic bags. I use these to store leftover meatloaf, chicken or pork chops and to keep home-baked goods fresh (I don’t have a cookie jar). Sometimes I slip a bowl of leftovers inside one of these bags.
Ritz cracker wrappers. Cut up, they’re good for wrapping and freezing the hamburger patties I make when ground beef goes on sale. I secure them with rubber bands — since I still subscribe to a newspaper, I have tons of those things. A cracker wrapper is rubber-banded over the glass measuring cup of bacon fat sitting in my fridge. And I’m writing this from a house-sitting job; I used a Ritz cracker wrapper around the toothbrush in my toiletries bag.
Frozen vegetable bags. I use them to freeze chili — or spaghetti-sauce-sized portions of cooked ground beef or chicken. Or I cut off the ends and cut the bag in half lengthwise; each half is the right size for wrapping those hamburger patties. (Originally I offered these to my sister, who owns a Golden Retriever. She declined because she prefers a bag she can tie shut and also because big dog = big poop. Bigger than 16 ounces? Yikes! Another reason I don’t have a dog.)
Cracker/cereal liners. These are good for storing chicken or chops bought in bulk and then re-wrapped into smaller portions. If you cut the liners open, you wind up with what’s essentially a big piece of waxed paper. It can be cut into smaller pieces to wrap hamburger, whether cooked or in patties. Each summer I cut one of the large cracker liners to fit the cookie sheet on which I freeze gleaned blackberries. I freeze them until they’re solid before putting them in bags, to keep them from becoming one big lump.
And then there are the washed and re-used Ziploc bags. You just knew I’d bring that up, didn’t you? An MSN Money reader suggested buying only the freezer bags, which seem to be made of sterner stuff and will last longer. I can attest: Some of my zipper-type bags are on their fourth tour of duty for frozen blackberries.
However, if a bag has held raw meat then I tend to throw it out. Campylobacter and other nasties are nothing to fool with; to me, it’s worth occasionally tossing a bag vs. risking food poisoning.
Possible Frugal Hacks
Why pay retail? Here are some other ways to save on food storage:
You can often find Tupperware and other storage containers in the “free” box at yard sales. Empty jars, too.
I bought aluminum foil at an estate sale. Or, rather, I tried to buy it: The woman running the sale just gave it to me. If I’d paid, it would have been a quarter and it was one of those big boxes, too.
Once I found waxed paper in the half-price bin at the dollar store. If you are very lucky there will be a clearance bin at your dollar store, too.
Keep an eye on the Freecycle network — I’ve seen Rubbermaid, Tupperware and canning jars offered. Don’t see any? Put up a “wanted” ad.
You can paint these tactics as extremely green/frugal, or you can use them as an easy opportunity to make fun of extremely green/frugal types. Personally, I prefer to look at it as giving “throwaway” plastic at least one more use — and, yes, I’m saving money because I don’t have to pull a length of foil or plastic wrap off the roll. Have you checked the price of commercial wraps lately?
J.D.’s note: Donna’s right: It’s easy to make fun of frugal tactics like this. But remember how last May I spent ten days on a boat with my real millionaire next door? Well, he does all of these things and more. And the photo illustrating this article? That’s our own kitchen drawer — Kris has a vast library of re-used plastic bags and containers.
Since the housing bubble burst, many Americans have found their finances underwater. They’re paying on homes that are worth much less than the mortgages against them. More than a few have chosen to walk away from these debts.
Called a “walkaway” or a “strategic default”, deliberately defaulting on your mortgage is becoming more common as the real-estate market continues to struggle. Some experts believe that as many as 20% of homes currently in foreclosure are the result of walkaways: people who had the means to pay their mortgage but chose not to when their life circumstances changed and they found their homes unsellable.
Businesses walk away from bad investments and debts like this all the time, but for an individual to do it takes guts. There’s a huge stigma associated with walking out on your mortgage. Americans feel that there’s something morally wrong with not paying your debts, even when those debts are astronomical or unfair.
As Matt Taibbi puts it in his new book Griftopia:
When you meet people who are losing their homes in this foreclosure crisis, they almost all have the same look of deep shame and anguish. Nowhere else on the planet is it such a crime to be down on your luck, even if you were put there by some of the world’s richest banks, which continue to rake in record profits purely because they got a big fat handout from the government.
That’s why one banker CEO after another keeps going on TV to explain that despite their own deceptive loans and fraudulent paperwork, the real problem is these deadbeat homeowners who won’t pay their…bills. And that’s why most people in this country are so ready to buy that explanation. Because in America, it’s far more shameful to owe money than it is to steal it.
Whether or not you agree with Taibbi’s take on the mortgage crisis, you’ve surely seen that look of shame on the face of anyone you know who’s lost a home to foreclosure. Despite of the social pressure to keep making payments, though, thousands of borrowers are defaulting. The rate of walkaways went from virtually nothing in 2007 to nearly a fifth of foreclosures today. That’s a huge increase.
What Happens When You Walk Away From a Mortgage?
Given how many homes are underwater these days, it’s probably not surprising that I have a friend who is considering walking out on his mortgage. I get asked for financial help or advice a lot since I started this gig at GRS, but I was clueless on this one. Some quick math revealed that continuing to pay his mortgage makes no financial sense for my friend: The house is worth much less than he owes. He can’t sell it. He no longer lives there; it’s just an albatross around his financial neck.
Still, I thought my friend must have other options, so I called up mortgage expert Keith Gumbinger at HSH.com. Gumbinger had some great suggestions for what to do when you’re facing overwhelming mortgage debt.
Gumbinger agreed that bailing out of a mortgage sometimes makes good financial sense — but the consequences for doing so are steep. “You can certainly walk away and let it go to involuntary foreclosure,” Gumbinger said. “That’s your ultimate hammer. But there are consequences in the rest of your life.” Walking away from a mortgage should be the absolute last resort.
Walkaways face some serious issues:
Your credit will plummet, making it tougher to get anything from a rental apartment to car insurance.
You’ll be stonewalled by the mortgage industry for seven years.
The mortgage company can come after you for the money they lose on your property when they’re forced to sell it below market value as a foreclosure. That’s the bad debt you were trying to walk away from, coming back to haunt you.
Before walking out on a mortgage, Gumbinger says you should call your mortgage company. Lenders don’t want you to default on your loan — and stick them with an unwanted house — any more than you want to destroy your credit. They’ll talk to you.
“You should be able to get a reasonable response,” Gumbinger said. This far into the mortgage crisis, most lenders have experienced staff people who do nothing but negotiate loan modifications, short sales, and planned foreclosures with their borrowers. They have clear processes to handle this type of situation. It won’t be fun, but if you stay engaged, you stand to get out of your mortgage with your credit in better shape than a foreclosure would leave it.
Gumbinger warns to carefully document the entire process. Keep notes of who you talked to, and get agreements in writing.
Loan Modifications and Short Sales
Before you call your lender, decide what outcome you’re after. If you’re looking to keep the property but can’t keep up with the payments, call and talk to your bank about a loan modification. There are federal and private programs to help troubled borrowers get their mortgages adjusted. You may qualify to have your mortgage interest rate reduced as low as 2%, or to have some measure of your debt forgiven so that your monthly payments don’t exceed 31% of your income.
If you’re ready to walk away from the mortgage entirely and don’t want to keep the house, talk to your lender about a short sale. In a short sale, you agree to retain possession of the property, keep it in good shape, and sell it on the bank’s behalf. With the bank, you agree on a sale price that reflects the current fair market value of the property, even if that’s much less than what you owe on it.
Note: You probably want an attorney to help you with these negotiations.
Usually, a short sale agreement will have a two- to three-month time limit. After that, you and the bank can negotiate a “planned foreclosure” or “deed in lieu”. Instead of simply walking away and forcing the bank to take costly legal steps to repossess your home, you can give it to them. In exchange for saving them the hassle of taking it, they’ll go easy on you with the legal and financial consequences. Again, use an attorney to negotiate this on your behalf.
Any of these options should bring you a happier ending than simply mailing the bank your keys without a word.
“Because you’ve tried to do the right thing, it does preserve to a greater degree your opportunity to participate in the housing market in the near future,” Gumbinger said. Your credit will still take a hit, but if you do a short sale or planned foreclosure, you may be able to buy another house in two to four years. If you even want to. After being burned by the housing market, many people are happy to become permanent renters.
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I’m not really sure about this whole expensive holiday gift thing. I know it’s supposed to be a way of showing love and appreciation, but I think it is too much pressure. Why not give a cheap holiday gift that they will actually use?
Plus a lot of people struggle with finding a Christmas gift for their loved ones, regardless of price.
Some people say that the best gifts are homemade, but not always. I am going to show you 101+ of my favorite cheap but thoughtful Christmas gifts ideas for someone who is on a budget or does not want to spend too much money.
These cheap Christmas gift ideas are for everyone on your list, from the family member you don’t know what to get them to the coworkers who always complain about not getting anything.
You will find the best advice on how to find the perfect present without breaking your budget.
The holidays are right around the corner, and it is time to start thinking about those gift lists! The holidays are about spending time with those closest to you, for many Americans it can be exceedingly difficult to find a decent gift for those from your close circle.
Why Cheap Christmas Gift Ideas
I know that you’re looking for some great gift ideas this year and we have you covered: adults, teens, kids, fashionistas, athletes, teachers, plus so much more!
There are so many inexpensive Christmas gift ideas that it can be hard to know where to start. This article will help you find the perfect present for everyone this holiday season.
The price range will be cheap Christmas gifts under $10 or nice cheap gifts for Christmas under $20. Some items maybe a little bit more expensive, but well worth the extra cost based on the idea!
Find over 250 cheap last-minute Christmas gifts (delivered by Amazon) on this list that I know the recipient will love!
Cheap Christmas Gifts for Adults
Easy cheap Christmas gifts for adults are those that can be afforded by the budget-conscious and the best part is still are awesome gifts.
These gifts usually have a handmade flair or personal touch to them to reflect the recipient’s personality.
To find cheap Christmas gifts for coworkers, you can pick any present on this list.
DIY Jewelry: This is one of the best ways to make multiple gifts for cheap. You can make many types of homemade jewelry.
Mug with their name on it: Make them smile with a customized mug just for them!
Coloring Books: Coloring isn’t just for kids. Adult coloring books are extremely popular and inexpensive to pick up an adult coloring book and colored pencils.
Magazines Subscriptions: Some ideas include National Geographic or Smithsonian. Great way to find new inspiration and ideas.
A Photo Album of your Memories: This can be a physical or digital photo album. A simple way to portray your friendship and experiences together.
Journal: Write down thoughts, ideas, or quotes that they love in the journal. Pick up a plain journal at Target for $5-$10.
Stickers: Add a few stickers from your collection, some ribbon, and scrapbook papers to decorate it!
Movie Night: A movie night with popcorn and some of their favorite movies is a thoughtful, inexpensive gift that everyone will enjoy. Buy a streaming movie or pass to the local cinema.
Handmade Gifts: If you have a knack for the arts and crafts, making a handmade gift is not only thoughtful but also can be very inexpensive!
Coffee or tea from their favorite coffee shop: There’s nothing better than a cup of joe or tea to start the day off right.
A Bouquet of Flowers: Get a bag of those colorful hair ties, and tie them to the stems for an extra special touch!
Collage Frame: A collage frame can be used as a picture frame, or it can be used as a decoration on the wall.
Holiday Decor: This is an affordable and practical gift for someone who loves to decorate their home for the holidays.
DIY-ed Ornaments: Get creative with this craft and let their imagination run wild!
Homemade Treats: Who doesn’t love cookies, chocolates, or homemade baked goods? Even canned salsa or jelly make great gifts!
Stockings: With any number of crafts available to make-you can’t go wrong with a stocking full of goodies for the holidays.
Cookies: Bake up some of your favorite holiday cookies and package them in a festive container for a sweet treat. Perfect to host a cookie exchange as a fun experience!
Comic Books: It can be no surprise to some adults when they think of all the hard work that goes into creating a comic book and see the end product. What’s even more surprising is that more adults don’t try them.
Handmade Gifts from Kids: If your child loves to paint, draw, or make things with their hands-this is the perfect opportunity for them.
Cheap Christmas Gifts for Teens
Coming up with Christmas gift ideas for teens can be tough. Teens are often too old to play childish games like Monopoly or Jenga, yet they’re not quite ready for more grown-up games like Trivial Pursuit.
There are a lot of inexpensive gift ideas for teens from the mall, but teens often want something more personal and unique to show they are maturing.
If you are looking for cheap gifts for teens, you can try any of these present ideas.
Gift cards are always a huge hit with this age group! Double bonus if you can make it a fun way to spend some time together. Make sure that your teen is comfortable with this idea.
iPod Touch / iPhone / iPad Accessories: A new case, screen protector, and a few apps are always great. Whether it’s to show off or just something fun, this is a great idea.
Journal: This gift will help your teens reflect on the year and all of the good things that happened!
Fun Colors to Write With: The festive design on these pens will make teens want to use them all year round. Fun gel pens are wonderful gifts for all ages; they are inexpensive and come in a variety of colors.
Fashion Designer Scarf: This gift will help your teen express his or her individuality while also staying warm during the winter months.
Room Decorations: Checking out new colors and themes for the room is a fun way to spend some time together. Plus they may be ready for a change from their younger decor.
Makeup: Teens love makeup and skincare items, so make it their job to pick out a few new things they want.
Candles: Having a nice scent can help relax and soothe your teen before bedtime. These versatile gifts come in many shapes. It is also how teens feel more grown-up.
Hand-Painted Mug: Handpainted mugs are perfect for all the coffee and tea lovers in your house, and they are so easy to make! This can be an experience gift, too!
Handmade Jewelry: this is an affordable yet creative holiday present
Trendy Socks: These are always a great gift for anyone. Not only does it keep your feet warm, but it can be fashionable too!
iTunes Gift Card: Let them download a favorite song or album.
Movies: Movies are a great gift to give especially if it’s one of their favorites or they’ve been wanting to see it!
Clothing: The recipient will love getting some new clothes-especially if they’re trendy and stylish, or their favorite store has a sale going on that you know about.
Special Treat: A special treat is a great way to show someone that you care about them and appreciate all they do.
Cheap Christmas Gifts for Kids
Kids are the most precious gift of all. They’re also notoriously hard to buy inexpensive presents for – they normally want gifts that are outside your price range! Fortunately, these Christmas gifts will have your child smiling from ear-to-ear.
Cheap easy Christmas gifts for kids are especially not difficult to find and you have plenty of inexpensive gift ideas, – plus your bank account will thank you for it.
At the end of the day, kids don’t really care what it costs as long as they like it.
Stuffed Animals: Give them the gift of a new favorite toy that they can hug and take with them everywhere-just make sure to tuck in an extra battery for their new favorite toy.
Paper & Stickers: A package of paper and stickers is perfect for kids who love to create their own projects or write notes, letters, or holiday cards. This pack is also perfect for young ones who are just learning how to write.
Colored Pencils & Crayons: Colored pencils and crayons are a fun way to keep kids focused on their art. These pens will help them create original masterpieces.
Customized Shirts: A new shirt is a great way for kids to express their personality, and it can also be an easy outfit of the day solution when they’re running out the door.
Puzzles: Puzzles are a great way for kids to learn new skills and stay entertained on rainy days. They also make excellent stocking stuffers!
Ice Cream Variety Pack: A yummy variety pack of ice cream will make their day.
Play Doh: Kids love play doh, and it’s a great way to keep them entertained for hours! It also makes a great stocking stuffer.
Colorful Pens: Kids love to color, so give them the opportunity with some bright new pens! They’ll have fun for hours doodling on all their things.
Slime: Slime is all the rage right now, and kids can make their own with this kit.
Sippy Cups: Kids love sippy cups because they’re fun and easy to drink from! They also come in a variety of designs and colors.
Kitten: They will love this sweet little creature that they can cuddle up with in winter.
Fidget Toys: Fidget toys are a great way to keep kids entertained and focused with some fun. They come in a variety of colors and shapes, making them perfect for all ages!
Star Night Light: This was one of my daughter’s favorite gifts (even her older teen brother was jealous). Huge hit to light up the wall at nighttime.
Remote Controlled Car: A remote-controlled car is a great gift idea because it can be played indoors or outdoors. It also makes for hours of fun!
Make Your Own Soap Kit: This kit will allow your child to make their own soaps at home with some fun ingredients. They have a variety of colors and scents available which they can use to customize the soap for their own preference.
Board Games for Kids: Board games are a great way to keep entertained while bonding with their friends and family. They come in different levels of difficulty, making them perfect for all ages.
Nature Exploration Set: A nature exploration set will help to inspire your child’s curiosity and creativity. The kit includes a journal, binoculars, magnifying glass, and more!
NERF: NERF toys are classics for kids of all ages. They’re great to take on family vacations or just to play with friends.
Dolls: Dolls are a classic toy for girls and they come in all shapes and sizes. From Barbie to Baby Alive, there’s plenty of options available!
Spirograph: A Spirograph can keep kids entertained for hours. They design pictures with the help of an included pen and paper.
Rock Painting Kit: A rock painting kit will allow kids to express their creativity by decorating rocks.
Bead Kit: A beading kit is a great way to teach kids about colors and patterns. It also teaches patience as they work with the small beads
Sewing Kit: Sewing kits allow kids to create their own stuffed animals and clothes for themselves.
Drawstring Backpacks: Helpful to keep their stuff organized on outings, vacations, or events when the kids need to be entertained.
Kids love getting gifts, and these cheap Christmas gifts ideas are perfect for any child!
Best Cheap Gifts for the Foodie Cook
One of the most difficult parts about shopping for a gift is coming up with creative ideas.
This list is full of affordable gifts is perfect for that friend or family member who loves to cook and bake!
Here are some of the best cheap gifts for the foodie cook.
Charcuterie Board Set: This is the perfect gift for the foodie that loves to cook with meat. It provides an assortment of meats, cheeses, fruits, and bread in a beautiful wooden tray.
Mason Jar Set: This gift is perfect for a friend or family member who loves to cook. The set includes six pint-sized jars with lids and can be personalized with the recipient’s name.
Salt and Pepper Grinder: This set comes with salt and pepper grinders for the foodie who loves to cook.
Gourmet Spices: Spice up a friend’s cooking experience with this assortment of spices from around the world.
Frother: Perfect for milk frothing for coffee, lattle, milk shares, hot chocolates, and matcha powder. You need one of these and everyone else around you does too!
Mini Stand Mixer: This is a perfect gift for a friend who loves to cook and bake! The mixer comes with attachments such as a whisk, dough hook, and flat beater.
Fondue Pot: This pot is perfect for families that enjoy eating together! The set includes a fondue pot, forks, skewers, dippers, and dipping sauces.
Cookie Press: This press is perfect for a friend who loves to bake! The set includes a cookie press, dough sheet mold, rolling pin, and recipes.
Oven Mitts: You don’t want your foodie gift receipeint to burn their hands. Replace their worn-out oven mitts with one of these stylish oven mitts.
Hot Sauce Set: Every foodie needs some hot sauce in their fridge. This set includes 3 bottles of the hottest sauces around, plus a recipe book for beginners.
Spice Rub Set: Give your foodie friend the gift of spices especially if they love to grill or have a Traeger! This set includes salt, pepper, cumin, chili powder.
Teapot Set: This is for all those tea drinkers out there. This set includes a teapot and infuser ball.
Tea Bags: Add on to the teapot set and deliver a set of tea bags with a bunch of different flavors.
French Press: French press brewing prevents an over-extraction of flavors; the grounds only add flavor regardless of how little or how much coffee is steeped. Expand their coffee experience!
Coffee Grinder: This is for all those coffee drinkers out there who like to make their own custom blends.
Bamboo Cutting Board: Over time, we all have to replace our words cutting boards at some point. So, this makes a chop-worthy gift.
Tea Towels: These are great for drying dishes, wiping counters and so much more. Find a catchy saying they will love to display!
Sourdough Banneton Proofing Basket: If they are hooked on the sourdough trend, then they need one of these to elevate their breadmaking skills.
Bread Lame Scouring Tool: A must for anyone who makes sourdough breads!
Batter Bowl: This is a great kitchen tool for mixing batters, making pancakes, and more. It will be a welcome addition to the kitchen!
Flour Sifter: This is another one of those necessary tools in the kitchen.
Coffee Mug: For coffee lovers, this is a great gift idea!
Salt Cellar: This is a nice addition to the kitchen and it will hold those hard-to-reach salt and pepper.
Cheese Plane: This tool makes cutting cheese into perfect, uniform slices – making cooking and serving a breeze.
Saute Pan: This pan is great for frying, sautéing, and more! It’s perfect for the average home cook or budding chef.
Zester: This handy tool is perfect for adding flavor to dishes with just the slightest touch.
Meat Thermometer: This is a tool that can’t be beaten especially for the grill master. This one is by far the best on the market!.
Pizza Cutter: This is an essential kitchen tool for any pizza lover!
Ice cream scoop: This ice cream scoop is perfect for any ice-cream lover. It comes in 2 different sizes of scoops and they come in a variety of colors.
Cooking Class: Give them the gift of cooking skills-it’ll be something they can use for years to come!
Best Cheap Gifts for the Homebody
Holiday shopping can be a stressful time, but not to worry. Here are some great gifts for the person who has everything and doesn’t want anything.
Consider these cheap, homey gifts that will please any loved one or host.
Weighted Blanket: For those who love to cozy up with a blanket, this one might be the perfect weight and size for them.
Hot Cocoa Mix: This is an easy way to ensure that your loved ones have a delicious treat from their kitchen.
Wool Socks: This is a great item to have on hand for the winter months.
Tea Infuser: This one will help your loved ones in their journey of self-discovery.
Homemade Snow Globe: Grab a this snow globe kit and make your loved ones their own little winter wonderland.
House Shoes: A pair of these comfortable shoes will be something your loved ones can wear around the house.
Cozy Blanket: These blankets are made to keep you warm and cozy during those cold winter nights.
Popcorn Popper: This is a fun gift that they will all enjoy especially on movie night.
Jigsaw Puzzle: Give them a puzzle that will keep their mind sharp and occupied.
Board Games: More than likely they prefer to have people over to enjoy good old-fashion board games and a night of laughter with friends!
Comfy Pajamas: A new set of cozy pajamas is sure to be a hit with the kids.
Robe: A new robe is a great gift for those who love to lounge around in their comfiest clothes.
These are some Cheap Christmas Gift ideas for those who are on a budget!
Best Inexpensive Gift Ideas for Spa Lovers
The perfect gift for anyone who loves to pamper themselves is a spa gift card. Spa gift cards are the perfect present because it gives the recipient freedom over what they would like to do during their stay.
There are many different spa gift cards available on the market, so it is easy to find one that suits the recipient’s personality and budget.
If you can’t find a group of people to go in on this idea, then turn their home into a spa experience.
Bath Salts: These are perfect for the person who loves to relax and take baths. All they will need is a nice scented candle or bath bomb, their favorite book, and these salts to make themselves feel like royalty.
Candles: These are perfect for the person who loves to relax and read, or just has a nice smelling home. There are many different scents available so it is easy to find one that suits the recipient’s personality.
Aromatherapy: This gift idea is perfect for those who want an inexpensive yet thoughtful gift. There are many aromatherapy oils to choose from, but the two most popular would be lavender and peppermint
Diffuser: These are perfect for someone who enjoys a deep and restful sleep, as well as those who enjoy shut-eye at night to take away any stresses or worries. A few drops of these oils in a diffuser or humidifier will soothe the recipient and ease them into relaxation before bedtime.
Tea: This is perfect for the person who enjoys a good cup of tea. A nice box of loose leaf teas is sure to be appreciated and used for many, many years to come!
Cookies: This may seem like a typical and uninspired gift that most people would choose, but it is thoughtful and they will appreciate the thoughtfulness.
Scalp Massager: This is great for those with a sensitive scalp. It helps to soothe the skin and will leave them feeling relaxed
Shower Speaker: This is a great gift for someone whose favorite song isn’t Top 40. They will be able to listen to their music while they shower.
Manicure Dip Starter Kit: This is a great gift for those who love to paint their nails
Hyaluronic Acid: Help maintain the hydration of the outer layers of skin, which helps to improve its appearance.
Hair Mask: This is a great gift for someone who loves to pamper themselves, especially if they are in need of moisture.
Lip Sleeping Mask: A gentle overnight moisturizer for dry, sore lips.
Microfiber Hair Towel Wrap: This is a great gift for someone who spends a lot of time in the pool or at the beach. It is quick and easy to help dry your hair faster.
Handheld Massager: Seriously, this is the best gift ever. Plus the cost has been coming down each year.
Cheap Gift Ideas for the Fashionista
If you are looking for an affordable, fashionable gift idea that is also fun and creative then this list has something to offer you.
Here are some ideas for the fashionista on a budget.
Scarf: Scarves are always in style and can be found anywhere. You can get a nice one for only about $25, depending on the brand.
Tote bag: A tote bag is a necessity for school, the mall, and even just running errands around town. You can find them anywhere from $5-25 depending on what type you want.
Pandora Bracelet: The Pandora bracelet is a beautiful piece of jewelry that can be bought with any budget in mind, and it’s a great option for people who want to give something that will last. Great gift to add charms each year.
Earrings: Earrings can be a great gift for someone you know who is really into fashion. You can find them at the drugstore or even in some clothing stores, and they cost anywhere from $5-20.
Belt: A belt is great for someone who doesn’t have too many accessories, or if you just want to spice up an outfit with a new piece of jewelry.
Hair Clips: Hair clips are a great gift for someone who spends most of their time at home because you can clip them in your hair to keep it out of the way while you do chores. Also, great for those trendy messy up-dos!
Felt Hat: A felt hat can be a great gift for someone who goes to the beach a lot, or just likes wearing hats because it’s cold outside. They last longer than other types of material and they can be a really inexpensive gift.
Jewelry Dish: Find a small dish at the dollar store and decorate with paint or fabric to make it look pretty!
Re-gift Jewelry: Add jewelry from your old collection that you don’t wear anymore (maybe some old costume jewelry?).
Sunglasses: Sunglasses are one of the most popular Christmas gifts, and they can be found cheaply at many stores. I bought a pair for under $15!
Watch: Watches can be found at many stores for a cheap price. Watchmakers are competing to lower their prices as they try and go against the trend of cell phone watches, which is why you can find a nice watch for under $10.
Sweatshirt: A good sweatshirt is a woman’s best friend. It will keep you warm during the winter and can easily be dressed up or down depending on what you’re wearing-It doesn’t have to be too expensive either, with most stores having sales or clearance racks that are perfect for picking up gifts.
Nail Polish: The best thing about nail polish is that you can buy it in a lot of sizes, from the little bottles that are perfect for stocking stuffers to larger ones that come in packages of 5 or more. Great stocking stuffers!
Yoga Pants: We all know yoga pants are a girl’s best friend. But, y’all the prices of these yoga pants are amazing, and did I mention how many I have given as cheap gifts?!?!
Winter Gloves: Some people might think winter gloves are odd to put on a Christmas list, but they make such great stocking stuffers!
Shopping Bag: This is a great present for someone who likes to shop! I know what you’re thinking, “how do they not have one?”
A New Outfit: Even if the person you are buying for is not a fashionista, clothes still make great gifts. And if you know what their favorite style of clothing is then nows the time to indulge them in some new clothes!
Some suggestions are old and some are new, but all of them will be perfect for the person you want to give a gift to.
Cheap Gift Ideas for the Makeup Artist
Check out these cheap beauty Christmas gifts for the makeup artist on your list. These are great for anyone that has a budget of $10 or less.
Makeup: Find out what brands your friends, family members, or classmates like and buy them the makeup in that brand. You can find this information at their favorite retailers or by asking around to see which brands they wear.
Nail Polish: Buying nail polish as a gift is a great idea because you can buy them the exact color they want to wear and it’s usually not too expensive.
Perfume: If your budget is $10 or less, you can buy a nice perfume that smells great and it will be something they use often.
Bath Bomb: If you’re shopping for someone who needs to relax, then a bath bomb is the perfect gift.
Specialty Coffee Mug: You can find these for fairly cheap and they’re something that people will use every day so it’s great. Find a fun coffee mug with an artsy flair!
Lip Stain: Lip stains are a really popular product because they’re long-lasting and come in so many colors. This is perfect for someone who loves makeup!
Makeup Brushes: Any good makeup artist knows the quality of the brush makes a difference. You can find a decent brush at an affordable price!
Silicone Makeup Sponges: These are perfect for applying makeup evenly and providing coverage.
Reusable Beauty Products: For the eco-conscious, find plenty of reusable beauty products. You will be surprised at this list.
Gather all of these makeup supplies and put them together for a creative gift basket!
Cheap Gift Ideas for the Athlete
Sweating is gross, so this guide has come to help! It’s tough when you have an athlete in the family because they are always on the move.
Athletes will have to replace their equipment and clothing because of use.
Here are some nice, thoughtful gift ideas for the athlete on your list!
Water Bottle: Sometimes I feel like I can never have enough water bottles!
A pack of compression pants: I wear them for my sport because they help with the swelling and protect against injury.
New backpack: I use mine all of the time!
Headphones: These allow people to listen to their favorite music or podcast while getting the sweat on.
Full-zip fleece jacket: I love being able to bundle up when it gets cold! This is a thoughtful guide for the athlete on your list for before and after workouts.
Polarized Sunglasses: These help protect eyes from glare and add style to any outfit.
Music Subscription (ad free): This is a great gift for the athlete who loves music!
Yoga Mat: Yoga mats are great because they’re environmentally friendly and also come in a bunch of different colors. Sometimes it’s nice to be able to stretch out and do some poses on your own. Plus the experts say we should stretch every day.
Sports Watch: Preferably with stopwatch and alarm clock. THey need to time those tabata crossfit workouts.
Running Gloves: These are thoughtful gifts for someone who loves the outdoors and running.
Foam Roller: A great gift for the athlete who is looking for a little bit of extra relief.
Folding Bike: This is a thoughtful gift idea for someone who loves to bike ride but doesn’t have space for a bike. This one is more expensive, but a great idea to go in with others on!
Sports Massage Oil: This is a thoughtful gift for the runner, cyclist, or anyone who gets sore muscles. Pick a hand massager to go with it!
Camouflage Pillow: This is a great present for an outdoorsy person who has their head in the clouds.
Good Socks: Have you ever smelled the stinky socks?!?! Enough said.
Sports Tape: The runner in your life will need this present to keep them on the go.
Sports Bra: This is a great present for someone who participates in any activity that requires it! One that fits well and is made of quality materials. Plus an affordable price!
Fleece Headband: This is a great present for the runner in your life who also likes to wear their hair up when they’re not running.
Yoga Pants: This is a great present for someone who likes to keep their activities active. Or just wears yoga pants every single day to be trendy. No one needs to know why! These are my favorite brand.
Athletic Shorts: This is a great present for the person in your life who likes to wear their athletic shorts outside of working out. Plus, come on it’s not like they’re going to be wearing them over clothes so people would notice.
Resistance Bands: These are great for the person who likes to keep their workouts active, but doesn’t have a ton of space.
Light Set of Weights: Everyone needs to have some weight training as part of their workouts. Pick up three or five pound weights to help them reach their workout goals.
Armband for Phone: When you workout, you may want to keep your phone with you to track the steps or distance you worked out. This is an armband to keep your phone and simple enough to change your workout music.
Latest Fad Cookbook: In need of a great gift idea for the person in your life who likes to cook but always seems to have not-so-perfect dishes? This is perfect! Gift them this latest fad cookbook and they’ll be able to make all the popular, Instagram-worthy dishes that you see on TV.
Sneakers: Maybe you are lucky enough to score a pair of comfortable, breathable athletic sneakers on clearance!
I’m sure they’ll be appreciative of any one of these gifts!
Cheap Gift Ideas For Teachers
This list of cheap teach gifts for Christmas will help you choose a thoughtful and useful present that won’t break your budget.
Essential Oil Set: A true favorite for teachers who like to use aromatherapy in their classrooms or at home. This is our favorite essential oil set.
Stress-relief Hand Sanitizer: Teachers are always on the go, so they can use a little help to keep them stress-free. Plus, germs are no fun for anyone!
Personalized Mask Lanyard: Personalize your teacher’s mask with their name, school mascot or work logo.
Tiger Balm: This is a classic product for teachers and athletes alike! Tiger balm will help soothe your aches and pains.
Lounge Pants: Nothing reminds a teacher of home like their favorite TV show! A few years ago my mom gave me a really cute pair of lounge pants and I still wear them. The cut is oversized with pockets for my phone and remote which make it perfect for relaxing on the couch.
Smart Plugs: These plugs can be controlled on an app from anywhere. That means the teacher doesn’t have to worry about forgetting to turn their lights off before they left for work.
Personalized Stamp: A teacher’s stamp of approval is the best kind. This personalized stamp will help teachers quickly get through their paperwork.
Amazon Gift Card: Teachers deserve to take a breather and use some of their hard-earned cash on themselves. A gift card is the perfect way for friends or family members to say “thank you.”
Wireless Headphones: Music is a great way to get the energy going and keep kids psyched up, but it can be tough when they’re working on group tasks. Wireless headphones like these ones from Sony
Day-by-day Calendar: The last thing teachers need is to scramble for a blank piece of paper whenever they want to jot down notes. The day-by-day calendar is perfect because it’s got enough space for writing, but it’s compact enough to tuck into a drawer.
Magnetic Dry Erase Whiteboard: After all the long hours spent at school, who wouldn’t want their own personal whiteboard where they can write, draw, and erase?
Lunch Boxes: There is nothing better than a home-packed lunch. These stainless steel containers are compact enough to carry with you, but they’re also roomy enough to hold a sandwich, fruit, and veggies.
Educational Activity Books: If you’re looking for something that’s not only fun, but chock full of learning activities and information, these books are perfect for further learning.
Cheap Christmas Gifts for Mom or Her in your life
All of these are great inexpensive ideas for buying on a budget
Shopping for a great gift for women or moms can be hard, but not too much with these affordable options.
Little Succulents: This is a cute DIY gift. All you need are succulents, a pot with dirt, and some other accessories if desired.
Bath Bombs: These are great for anyone, including people who enjoy a good bath every now and again. They come in various scents so you can find something that is sure to please.
Chapstick: This is perfect for the person in your life who always has chapped lips or complains about dry skin on their hands when they are outside too long during winter months.
A Book: It may seem like the most unimaginative gift, but it’s perfect for someone who enjoys reading and is looking for something they haven’t read yet. Books are also a great way to get someone hooked on a series so you can recommend their next read.
Slippers: These are perfect for the person in your life who is constantly complaining about how cold their feet are.
Candles: This is a perfect gift for someone who enjoys relaxing or reading after dinner and the scent fills up the whole house with aromatherapy benefits.
A Scratch Off Map: This is a great gift for someone who enjoys traveling or seeing the world. It’s very personalized and they can see how many countries they have visited.
A Coffee Mug: This is a great gift for the coffee lover in your life. You can put anything on it such as their favorite book, television show or artist and they will be reminded of you every time they drink their coffee.
A Memory Blanket: This is a great gift for people who are always cold and it can go with them anywhere in the world because it folds up easily.
A Personalized T-shirt: This is a great gift because it’s very personal and you can put anything on the shirt that has meaning to them such as their favorite sports team, favorite food, or where they have traveled.
A Personalized Finger Drum: This is a great gift for anyone who loves to play drums because it has their name engraved right on the drumhead.
Cheap Christmas Gifts for Men
The following items are inexpensive and will make any man, dad, or boyfriend insanely happy! The cheapest gifts can be the best!
Here are some budget-friendly, manly, fun, and creative ideas for Christmas presents.
A New Shirt: You can find many options for cheap shirts. Grab one with a funny saying he would enjoy for an out-of-the-park win!
Belt: Belt prices vary by brand, but can be found for as low as $10.
Wallet: Wallets can also vary by brand and cost, but often end up being around $15.
New Socks:: Many men enjoy their sock collection. You can always add on to replace their worn-out socks.
A Tie: Ties can be found for as low as $5.
Watch: The watch market is a tough one to navigate, but if you know your partner’s style and budget beforehand it can be easier to find what you’re looking for.
A Tie Clip: You can usually pick one up for $5 or less, and it’s something that he’ll wear every day!
Old-school Vinyl Record Player: Old school vinyl is making a comeback and can be found in all sorts of different styles.
Latest Board Game: Board games are always a fun gift idea. You can pick up the latest hot game for less than $20
A Good Book: A good book is always a great gift idea. You can find them for as low as $5 and books are something that never goes out of style!
Cash: Let’s be honest… most men like to have the cash to spend as they please with no questions asked.
Cheap Christmas Gifts for Friends
You may not have a lot of money for this Christmas, but that doesn’t mean you can’t give your friends something thoughtful.
These inexpensive items may not be the most lavish of presents to give a friend this year, but they are sure to be appreciated and useful!
Whimsy Kit: A Whimsy Kit is a small package that includes activities such as drawing, coloring, and collaging. It can be used in classrooms or at home to relax and have fun.
Poster Board & Markers: A poster board and markers are perfect for making holiday cards to send out or decorating with a festive design.
Fun Scrapbook Pens: Fun pens are a wonderful gift for any age to bring color to their writing, coloring, or journaling.
Scented Candles Kit: Scented candles can be used for the holidays, but they also make a great gift for any time of the year. The smell will bring a warm and cozy feeling into your home.
Gold Foil Blanket: A gold foil blanket is perfect for snuggling up in the car when you are stuck in the car!
Cute Pillow Case: A new pillowcase is a fun way to change things up in your bedroom or living room. The best part about these gifts are that they can be given with other items, like the gold foil blanket or a fun pillow.
Comfy Socks: When it’s cold outside, there is nothing more comforting than a good pair of socks. These make a great gift for someone who spends most of their time at home or just loves to relax.
Bracelets: Jewelry is a great way to show someone you care. Bracelets are not only cute but they go with any outfit!
Christmas Ornament: A Christmas ornament makes for the perfect stocking stuffer. They are usually inexpensive and they can be used year round to decorate your home for the holidays.
Christmas Fun Pack: It is always fun when Santa sends a surprise in the mail, so why not surprise your friends with a Christmas Fun Pack!
Shower Steamers: These will make a great gift for someone who is your best friend, especially if they like to take long showers.
Flashlights: These are fun and practical gifts that will come in handy during the dark days of winter.
Tissue Box Covers: A unique and inexpensive gift for the person who has everything, these tissue box covers will make any house seem a little more homey during cold winter months.
Chocolate: For the person that has everything, you can’t go wrong with some chocolate.
Cheap Christmas Gifts for Coworkers:
A quick, easy, and affordable way to get the perfect gift for your coworkers this Christmas is by giving them a coworker appreciation gift basket.
These inexpensive gifts are great for bosses or employees. They can be personalized so it’s a gift that will really stick with your coworkers.
Planner: This is a great way to give your coworkers something they will really use. They can write down their goals, schedule, and use it as a to-do list.
Personalized Stationery: This is such an adorable idea and can be so much fun for everyone involved. These are the perfect gifts that will make your coworkers feel special this holiday
Putting Green: This is a great gift that they can use to practice their putting skills in the comfort of their own office.
Desk Organizer: A desk organizer is a great way to start your day off with a clean and organized workspace.
Timeless Candle: This candle helps you enjoy the holidays or winter season while relaxing in the office.
Coffee Mug: Every office needs a good coffee mug to stay energized and motivated throughout the day.
Personalized Mouse Pad: You could get them their favorite movie, sport or hobby as a personalized mouse pad and they’ll enjoy using it every day at their office.
Luxury Pen: This is the perfect gift for that person who has everything and needs something to help them write down their thoughts and ideas.
Desk Lamp: A desk lamp can help you read in your office when it’s dark outside so all the daylight hours are available for working on projects or catching up on paperwork.
Ink Pen: This is a great gift idea for anyone who likes to write or doodle. You could get them this as a refillable pen and they can use it to write down their thoughts or ideas.
Laptop Tote Bag: This is the perfect gift for anyone who likes to travel and needs something stylish but functional to carry everything in one place.
Plant pot & planter: This is a great gift for someone who likes to spend time in their garden or on the porch. You could give them this as an opportunity to grow something new and have something beautiful in their office that is all their own.
Journal: This is a classic gift that people like to get for themselves or others. You can find many different styles and sizes of journals, making it easy for you to find the perfect one for your recipient.
Watercolor set: This is a great gift if you know someone who loves to paint or draw. It is an opportunity for them to tap into their creative side while also having the materials that they need to create something beautiful or special for someone else.
Keychain: This is a great gift for anyone because everyone needs keys! You can get them a keychain that has their name on it, or you can get them a cute one for someone they love.
Laptop sleeve: This is a great gift for anyone who has to have their laptop with them at all times. They come in so many different colors and designs, so you can find one that fits your friend or family member perfectly!
Monitor riser: If you know someone who has a desk job, they’re probably struggling to stay focused on their screen. This is the perfect gift for anyone who spends time at work looking down all day!
Best Cheap Christmas Gift of them All – Gift Card:
A gift card is a prepaid credit or debit card that can be spent in any number of stores, restaurants, and other venues as desired by the purchaser.
This option is great for people who are the “hard to buy for” type.
Even a $10 or $20 gift card to somewhere they like is better than a gift to sit on the shelf unused.
Giving a gift card is always an easy way out, but it can be more useful than materialistic gifts they may not use.
You can never go wrong with a gift card to their favorite store!
You can Buy Cheap Christmas Presents that Look Expensive
I know that this time of year can be so busy and stressful. It’s hard to find the perfect gift for everyone on your list, especially when you have a tight budget. But there are so many fun and creative ideas that won’t break the bank.
You’ll find the perfect gift for everyone on your list!
Hopefully, you can find cheap Christmas gifts under $20 or less. Most of these power ideas you can pick up on Amazon or Etsy.
Christmas is often a time where people try to get the best gifts for their loved ones. In order to make these gifts more affordable, it’s smart to think about ways that can lower expenses.
One way to do this is by choosing gifts that can be combined with other items. Or even choosing a no gift Christmas.
It is always fun to give a gift to someone special on Christmas. However, sometimes you feel uncertain about what the perfect present is for somebody else.
We hope you’ve enjoyed our cheap but thoughtful Christmas gift ideas!
With these items, your loved one will have a great Christmas! Be sure to check our blog for more money saving tips!
Need More Inexpensive Christmas Gift ideas?
Know someone else that needs this, too? Then, please share!!
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If you have been trading for a while, then there is a good chance that you have made some trading mistakes along the way.
Unfortunately, it is part of learning how to trade.
After all, trading is a skill that takes time to learn.
Trading mistakes are part of the learning process. I know that sucks to hear, but it is the truth.
The outcome goal is to learn from those trading mistakes.
Then, you can realize what you did wrong so you do not repeat those same mistakes.
However, more than not, it is more common to repeat the same mistake over and over again.
If you are ready to recognize trading errors and learn how to overcome them, then keep digging in. Take notes and adjust your trading plan accordingly.
We will cover emotional trading mistakes, technical trading errors, and option trading mistakes.
What Are Trading Mistakes?
Trading mistakes are errors made by traders when you enter trades, either to purchase stocks or options.
More than likely, you will see the same type of trading error happening over and over again.
Trading mistakes are very common, but they do not have to lead to complete panic.
In order to minimize the chances of making a costly mistake, traders should adhere to their trading strategy. Additionally, traders should always trade with a clear head and stay disciplined.
There are plenty of trading mistakes you can avoid by being smart and adjusting your trading plan where needed.
Why Understanding Trading Mistakes Is Important for Long-term Success
Trading mistakes are the result of traders taking losing trades, which can result in poor overall performance.
Mistakes that occur during trading often include not paying attention to the market, not understanding risk, not having a well-thought out trading strategy, and being bad at managing the trade.
Whatever the reason, trading errors occur and it is how we react to them that matters.
Long-term success in trading is not a goal that can be accomplished overnight.
Achieving long-term success with active trading requires patience, discipline, and practice.
It is easy to get caught up in day-to-day successes and forget to commit to a long-term plan. As traders, it is important to be able to recognize our mistakes so that we can learn from them and move forward.
Top 5 Trading Mistakes
As you will see, we compiled a long list of trading mistakes. Each trader will see some of those trading errors in themselves. Some are small trading mistakes while others are detrimental.
First, we are going to focus on the top five trading mistakes first. This will make or break your success as a trader.
The following are five common trading mistakes that traders make and how to avoid them.
#1 – No Trading Plan
Trading without a plan means you enter a trade without knowing your next step.
No trading plan means that traders are not able to set clear goals, establish risk-reward ratios, and avoid common pitfalls that can occur during a trade. This makes it difficult for traders to know when they should be buying, selling, or holding.
Trading without a plan is risky because it can lead to losses that are much higher than they need to be.
When starting out in trading, it is important to remember that we can only focus on what we can control. This means that we should not worry about things we cannot change, such as the past or the behavior of other traders. Instead, we should form a trading plan and stick to it so that we can succeed in the long run.
Creating your trading plan will happen with many revisions. The goal of the trading plan is to set your overall strategy for trading.
Also, you need to have a specific trading strategy for each trade you enter.
Avoid by: Spending time to develop a trading plan. Revise as needed. Stick to it.
#2 – Risk Management Plan is Missing
A risk management plan is essential for traders and it should be included in any trading plan.
Without a risk management plan, traders are more likely to make emotional decisions that can lead to costly mistakes. For many traders, this is the hardest thing for them to manage.
It is possible to create a risk management plan as your overall trading plan.
In your risk management plan, you must decide (in advance) how much money you are willing to lose based on the amount of profit you perceive to make. For instance, you are willing to risk $300 in order to make $1000.
Many day traders focus on a 2:1 reward-to-risk ratio. Personally, I look for stronger reward-to-risk ratios greater than 3:1.
Avoid by: Understand how risk is a part of making a profit. Set your risk tolerance and do not deviate from it.
#3 – Not Keeping a Trading Journal
One of the most important aspects of successful trading is keeping a journal.
This not only helps you keep track of your trades and performance, but it can also help you remember what worked and what did not. Journaling is so helpful and such an overlooked task.
Your trading journal is the perfect place to take notes, keep track of your wins and losses, and record market movements so that you can learn from past mistakes.
At the end of every trading session, you should take some time to analyze your trades.
What went well?
What didn’t go well?
Why did you make that particular trade?
What was your entry strategy?
What was your exit strategy?
Where was the overall market momentum?
Did you control your emotions?
What grade would you give yourself?
This analysis is important so that you can learn from your mistakes and improve your trading skills. Stay motivated to continue learning about trading and keep more profit.
Avoid by: Start journaling. Spend time after exiting a trade and the market day to understand what happen and why you did a certain trade.
#4 – Watching Too Many Stocks
Watching too many stocks can lead to a decrease in returns and overall confusion on what is happening with your watchlist.
As a result, it is important to be selective.
The same can be said of stock scanners. If you are watching too many variables and possibilities, you can quickly become overwhelmed.
When you develop your trading plan, you need to decide how you find stocks.
Personally, I prefer to focus on a handful of stocks and a few key metrics. Then, watch them closely and trade accordingly.
As a new trader, I would pick about 5-10 stocks to analyze.
Avoid by: Revise your watchlist to half what you are currently watching.
#5 – Actually Exiting Trade as Planned
Above we talked about creating a trading plan and having a trading strategy for each trade taken.
But, the trading mistake happens when you do not exit the trade as planned.
This could be because of “hopemium” that the stock price will recover and you will get back your loss.
Our “hopemium” is that the stock price keeps rising and you will make more money.
Either one can be damaging to your trading account.
You created a plan. As a disciplined trader, you must follow your plan either to maximize your current profit or protect your risk against further losses.
Avoid by: Exiting at your set targets. Period.
12 Typical Emotional Trading Errors
Trading is 80% mental and 20% execution. Okay, I am not sure that there is an official study to back it up. But, I do know as a trader that emotions play heavily into your overall profit.
The typical emotional trading errors that traders make when they are in a trade are overconfidence, jumping into trades before the proper analysis is completed, and inability to take losses.
This is where most of the trading mistakes are made.
When first starting out in trading, it is easy to get caught up in the prospect of making a lot of money quickly. However, most traders find that trading is not easy to do and make common emotional trading errors.
Let’s dig into these emotional mistakes first and then we will follow up on the technical trading mistakes.
1. Letting emotions impair decision making
Emotions are an important part of decision-making, but it can be dangerous to allow them to influence our decisions. We should also take into account that emotions can often lead us astray.
It is clear that emotional trading can lead to bad decision making and, ultimately, financial losses.
When investors let their emotions take over, they are not thinking logically and may make impulsive decisions. For example, they may sell stocks when the market is down in order to avoid further losses, even though the stock may rebound soon after.
In order to be successful traders, it is important to stay calm and rational when making decisions.
Overcome by: Stick to your trading plan and take emotion out of the equation.
2. Unrealistic Profit Expectations
You go into every single trade expecting a home run! Enough money to achieve your dreams overnight!
These types of profit expectations will have you throwing your risk management plan out of the window and set you up for failure with greed, overconfidence, and impatience.
Be realistic about your expectations with trading activity.
Overcome by: Go for base hits. Small consistent wins.
3. Greed
Greed is a deep-seated need for more profit without regard to the chart or market conditions.
The common rationale is hopefully the stock will go up. Typically, you hold your position too long and end up losing some of your gains.
Greed can manifest in many different ways, and people with greed often neglect their own needs in order to attain more.
Overcome by: Set an OCO bracket to exit the trade at your specified level. Take you out of the equation.
4. Fear of Missing Out (FOMO)
You fear that you missed out on a trade, so you decide to jump in. As a result, you are risking more than you should.
This trading mistake is common, especially with online trading communities.
As a result, you may buy at the high and watch the stock reverse.
Overcome by: Realize that there will be missed opportunities. That is part of the game. There will always be another chance.
5. Fear
In many cases, fear is a reaction to why or why not we enter a trade.
For any trader, they may become frozen unable able to make a decision as their mind is wrapped in fear. At the same time, they are either missing out on potential profits or unable to exit a trade due to mounting losses.
Overcome by: This is a real emotion that you must overcome. Take the time and read resources to help you overcome being paralyzed by fear.
6. Overconfidence after a profitable trade
The overconfidence that comes with success can lead to a loss of profits.
When a trader has a winning position, they may become overconfident and make bad decisions because of the previously profitable trade.
For example, they may not take their profits off the table when there is an opportunity to do so or increase their position size when they should be taking profits. This could lead to them losing all of their winnings and more.
Overcome by: Take a break from trading for a few days or a week after a big win.
7. Entering a Trade Based on Your Gut
The process of entering a trade based on your gut is, essentially, following your “gut feeling” and buying or selling shares after the market opens. This is seen as a more risky and less profitable strategy than following a more traditional market timing approach.
Trading is all about making calculated decisions and sticking to a plan.
Trading based on your gut feeling or emotions will only lead to costly mistakes.
Overcome by: Before entering into any trade, make sure you have a solid strategy in place and know all the rules. Only then should you start trading.
8. Not reviewing trades
Not reviewing trades is a common problem for many traders. Traders who don’t review their trades tend to be more likely to make mistakes in their trading and over-trade, which can result in losses.
You will make the same mistake over and over again until you realize the root of the problem.
This is how you move from a losing average to a winning percentage.
Overcome by: Let your journal be your friend. Document everything including your emotions.
9. Following the Herd
Many people enjoy following the herd with stock trading, especially online platforms on Reddit, Discord, or Twitter.
You may decide to follow a certain group of people in order to be fed stock picks or updates.
This can be risky because there is no sound foundation to base your trade upon.
Overcome by: Trade your style and let that fit you.
10. The Danger of Over-Confidence
The “beginner’s luck” experienced by some novice traders may lead them to believe that trading is the proverbial road to quick riches.
Over-confidence is the belief that one’s abilities, knowledge, or qualities are better than average.
This over-confidence is a risk factor for certain types of mistakes and other negative outcomes as it leads to complacency, a lack of preparation, and an overestimation of one’s abilities.
Overcome by: Realize your limitations and watch for overconfidence to appear.
11. The Importance of Accepting Losses
Losses are always a part of trading life, but they can be overwhelming when they occur.
It is important to recognize that losses are in fact an inevitable part of growth and development as a trader.
Overcome by: Journal all of your losses. Look for patterns to appear. Adjust your trading strategy as appropriate.
12. Quit Your Job Too Fast
Quitting your job too fast is not a good idea, as it will force you to place trades that may not be the best set-ups.
Day trading can be a very risky venture, and it is possible to lose everything you have invested.
It is important to be aware of the risks before getting started. More importantly, do not quit your job too fast. This can lead to losses in your investments and could potentially put you in a worse financial situation than you were before.
Overcome by: Keep trading as a side hustle. Hone your trading skills and build up a reserve fund that will cover your monthly expenses. You will know when you are prepared to leave your 9-5.
Common Mistakes in Stock Trading
According to a study by the U.S. Securities and Exchange Commission, technical trading mistakes are actually fairly common among individual investors.
Mistakes in technical trading can be two-fold, either due to lack of knowledge or poor execution.
The most common mistakes are buying at the top and selling at the bottom, overtrading, and not taking the time to properly understand how trading works.
Now, let’s dig into all of the common trading mistakes I see.
1. Overtrading
Let’s start by talking about overtrading. This is a mistake that I see many people make. It is also a mistake that could have been easily prevented if you had just done your research before placing the trade.
Overtrading or placing more orders than you should do is the most common mistake.
Many new traders will simply open up their platform, look at the market, and place a trade. They are often chasing after the last couple of candles or they see an opportunity to get in “on the cheap”.
The problem with this approach is that you have no idea if this is a good trade or not. You are simply taking a shot in the dark and hoping for the best.
Overcome by: Only place the A+ setups that you like. Once you have traded so many times per day or week, stop trading.
2. Buying High and Selling Low
We all have heard the saying, “buy high and sell low.” However, too many novice traders do the complete opposite.
This trend happens with one of the emotional mistakes of FOMO; we already dived into that concept earlier.
Overcome by: Follow your trading plan on when to enter and exit the trade. Practice your strategy in a simulated account and master it.
3. Lack of Trading Knowledge
The lack of trading knowledge is a problem for many traders who are not familiar with how the stock market works. This can cause them to make mistakes when buying and selling stocks, which could result in losing a lot of money.
Just because you made a profit once on one stock does not mean that is a repeatable action.
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies involved.
Without proper training, you are likely to make costly mistakes that can cost you money. Trading courses and tutorials are available online and through other resources to help you gain this knowledge and become a successful trader.
Overcome by: Take an investing course. Spend money on your education and not your losses. Here is a review of my favorite day trading course.
4. Following Too Many Strategies
Following too many strategies is a common problem in the investing world, which can lead to poor performance and more costly mistakes.
There are a million and one different approaches on how to trade the stock market, which indicators to use, whose advice you should follow, so on and so forth.
And then, many traders try and couple the strategies together only to quickly learn they may cause more losses than profits.
One way to avoid following too many strategies is by using a set of rules to decide which strategies are appropriate for investing.
Overcome by: Develop your trading plan. Outline the investing strategies you will use. Test any new strategies in SIM first.
5. Do Your Research
The solution to this problem is simple: do your research!
Before you enter a trade, take the time to do some analysis on the asset you are looking at. Look at past price action, news events, and any other relevant information that you can find.
Understand why the market might move in your favor and be able to build a case for it. The more data points you have supporting your position, the better off you will be.
If you are able to build a strong case for why the asset will move in your favor, then you can enter with confidence. This is because if the market does not move in your favor, you will know that it isn’t because of a lack of research on your part.
When you enter with confidence, this will make it easier to hold through the inevitable volatility and price swings.
Overcome by: If you enter without knowing why something is likely to move in your favor, then you are setting yourself up for failure. Do your research.
6. Not Using Stop-Loss Orders
Stop orders come in several varieties and can limit losses due to adverse movement in a stock or the market as a whole.
Tight stop losses generally mean that losses are capped before they become sizeable. However, you may have your stop loss too tight and get stopped out before your stock has room to move.
A corollary to this common trading mistake is when a trader cancels a stop order on a losing trade just before it can be triggered because they believe that the price trend will reverse.
Overcome by: Plan your stop loss in advance. Stick to it as it is part of an overall risk management strategy.
7. Letting Losses Grow
Active traders can be harmed by refusing to take quick action to close a losing trade.
It is important to take small losses quickly and limit your risk in order to stay profitable.
Stop losses can help you avoid larger losses.
While the stock may come back to your buy price, you have increased your risk far beyond what you planned. If your planned loss was $300 and now you are down over $500, it will take that much longer to overcome that growing loss.
Cut your losses. Review the chart. See what a better entry point may be.
Overcome by: If the stock moves past your pre-determined stop, then exit the trade. Don’t trade on hope.
8. Chasing After Performance
Many day traders are tempted to chase stocks, which is a bad reputation in the day trading world.
This happens when they see a stock that has had a large price increase and they think that it will continue to go up. In reality, this is not usually the case, and chasing stocks can lead to big losses.
What goes up must come down, right?
Overcome by: Wait for a better time to enter the trade according to your trading plan.
9. Avoiding Your Homework
It is important to do your homework. If you avoid doing your homework, then don’t expect fast results
Many new traders often do not do their homework before making any investment decisions.
This can lead to costly mistakes that can be avoided by doing some basic research. Trading is a complex process and should not be taken lightly – make sure you are fully prepared before risking your hard-earned money.
Overcome by: If you have not enrolled in an investing course, do that. Set daily goals on how to improve your trading performance that is not based on profit or loss.
10. Trading Difficult and Unclear Patterns
It is important to stick with the patterns and indicators that are clear and unmistakable so you don’t get caught up in any ambiguous or unclear trading signals.
With a little bit of research and understanding, these market patterns can become quite clear.
By forcing a chart to fit in what you want, then you are putting your trading capital at risk.
Overcome by: If you cannot read a clear chart or pattern, then quickly move to the next stock.
11. Poor Reward to Risk ratios
The most common mistake made by traders is poor risk management. This usually means taking on too much risk in relation to the potential rewards, which can lead to heavy losses if the trade goes wrong.
It is important to always have a solid plan for how much you are willing to lose on any given trade and never deviate from it.
What is the Reward to Risk ratio you look for:
1:1 Reward to Risk
2:1 Reward to Risk
3:1 Reward to Risk
Many beginner traders do not want to take on as much risk because their appetite for potential rewards may be lower. It is important for beginners to consider their trading strategies and risk management plans so that they can make the most informed decisions possible.
Risk-to-reward ratios are an important part of trading, and experienced traders are typically more open to risk in order to maximize their potential rewards. This means that they may be more likely to make high-risk, high-reward trades.
Overcome by: Stick to Risk to reward ratios that fit your trading plan.
12. Ignoring volatility
Volatility is the fear and unknown in the market.
The most important thing to remember about investing is that the stock market can be volatile.
A measure of volatility is from the VIX.
Overcome by: Decide how you will trade when the VIX is high and the news is negative.
13. Too Many Open Positions
Entering too many positions is one of the most common mistakes investors make. A portfolio should consist of a handful of top-performing investments that have proven to be good bets over time.
It is unwise to open too many positions in a short amount of time because it could lead to confusion.
This can be risky because if one or two of the positions go south, the entire portfolio can suffer. For this reason, it is important to carefully consider each position before opening it and make sure that all positions are contributing positively to the overall goal.
Overcome by: As an active trader, stick to under 5 open positions. As a long-term investor, look to build a portfolio of 25 stocks over time.
14. Buying With Too Much Margin
Most brokers offer 2:1 or 4:1 margin to cash. While this is tempting to use, it can also give you a margin call.
Margin can help you make more money by increasing your position size, but it can also exaggerate your losses.
Exaggerated gains and losses that accompany small movements in price can spell disaster for a new trader using margin excessively.
Overcome by: Use your cash only. Stay away from using margin.
15. Following Meme Stocks
These are the stocks made popular by many Reddit personal finance groups.
You have probably heard of Gamestop, Blackberry, AMC, or Bed Bath and Beyond as a meme stock.
While these stocks have risen to crazy highs, they have also fallen just as fast. Chasing the high may leave you with a big and painful loss.
Overcome by: Stick to your stock watchlist.
16. Buying Stocks With No Volume
Buying stocks with no volume is a risky idea that involves placing an order on a stock without knowing how much interest there will be in the shares. This can result in losing money if there are no buyers for the shares.
It is important to validate the price of a stock by looking at volume. The volume shows how much interest there is in a stock and can be indicative of future price movement.
When volume is low, it’s best to stay away from buying stocks as it could be a sign that the stock price is not stable.
Overcome by: Trade stocks with a volume of at least 500,000 or higher.
17. Ignoring Indicators
Indicators are things that tell us the market is going up or down. Examples of indicators would be the stock market at a particular point in time, a company’s performance with regards to earnings, the price of a product or service.
Every trader has their own set of indicators they use.
If you have outlined indicators you use in your trading, make sure to follow them regardless if it is against the way you want the stock to move.
Overcome by: Stick to your trading plan for each stock individually.
18. Trading Too Large Position Sizes
Trading too large position sizes is a risk that traders may run into when they hold positions in their portfolios for extended periods of time.
Position size is the amount of money placed on a trade, and the risk is that a trader may lose more than their capital on the trade if it does not go well.
Overcome by: Base your position size on the amount you are willing to lose. Not how much you want to make.
19. Inexperienced Day Trading
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies you are using. Without proper training, it is easy to make costly mistakes.
Too many day traders turn trading into an unnecessary risky game.
To be successful, a day trader must have a solid foundation in how to invest in stocks for beginners.
Overcome by: Practice in a simulated account and make all of your mistakes there before moving to live money.
20. Inconsistent trading size
Inconsistent trading size is when traders are unable to predict what their position size should be in order to meet the trader’s desired profit goal.
Trading size is one of the most crucial aspects of a trading strategy and should be considered carefully. Larger trade sizes come with an increased risk, so it’s important to be aware of your position size when making trades.
Overcome by: Don’t risk too much on one trade. Stick to your risk management plan.
21. Trading on numerous markets
Trading on numerous markets is when a trader invests in stocks, bonds, commodities, crypto, and other securities.
Every type of market moves differently and takes time to understand how to be profitable.
Overcome by: Find your niche and stick to it.
22. Over-leveraging
Leverage is a powerful tool that can be used to magnify gains and losses in a trade. It is important to be aware of the amount of leverage being used in order to effectively manage risk.
Brokers play an important role in protecting their customers by providing margin calls and other risk management tools.
Overcome by: If you feel over-leveraged, sell some positions before your broker gets involved.
23. Overexposing a position
Overexposure is a term used in the investment world to describe the risk that comes with exposing your position too much in the market. When you have overexposed your position, you are putting yourself at risk of losing money if the stock or security you are invested in falls in value.
You are taking on too much risk.
Overcome by: Stick to your risk management plan. Always have cash reverse on hand in case the market reverses.
24. Lack of time horizon
There are different time horizons for various types of trading strategies. It is important to think about the time horizon you are comfortable with before investing in any type of investment.
If you are a day trader, you plan to close your trades before the end of the trading session. As a swing trader, you typically hold trades for a couple of days maybe up to a month. As a long-term investor, you plan to hold your stocks for longer than a year.
Overcome by: Match the time horizon of that investment purchase with your investing goals.
25. Over-reliance on software
Although some trading software can be highly beneficial to traders, it is important not to over-rely on it.
Automated trading systems are becoming so advanced that they could revolutionize the markets. As a result, human traders need to be aware of the potential for these systems to make mistakes and use them in conjunction with their own judgment.
Overcome by: Set alerts before you want to enter or exit a trade. Then, review if the move still follows your trading strategy.
Top Options Trading Mistakes Beginner Traders Make
These options trading mistakes are specific to option trading.
Trading options is an advanced strategy. If you have losses trading stocks, wait before you start trading options.
1. Not having a Trading Plan
Every trader needs a trading plan that outlines strategies, game plans, and trade metrics.
When you are trading without a plan, you are essentially gambling and hoping for the best.
This is not a recipe for success in the world of stock trading and is especially true for options traders.
A good trading plan should include chart analysis so that you can make informed decisions about when to buy and sell stocks. If you are using HOPE instead of a trading plan, then you need to find out the right way to interpret the chart because that will give you a better idea of what is happening in the market and how likely it is that your investment will succeed.
Overcome by: Create a specific trading plan based on your option strategy.
2. Not properly Researching Option Contracts
Learning to trade options is like going to school for a whole different trade.
There are way too many technical aspects to discuss in this mistake.
Spend time learning what criteria you want from an options contract to be successful.
Overcome by: Learn how options work and practice trading options in the simulator before going live.
3. Trading without an understanding of the underlying asset
Before you start trading options, trade with stocks.
Every stock moves at its own beat. You need to learn how it moves.
Jumping into options prior to knowing the stock can cause extreme losses. Learn how the underlying asset moves first. Be successful in trading stocks before moving to options.
Overcome by: Learn to trade the stock with shares first. Then, practice in a simulator. Once familiar, then trade live with options.
4. Buying Out-of-the-Money (OTM) Call Options
Options trading is a risk-based strategy. It’s important to know which strategies are right for you and what the risks of each option type are before putting on an option trade.
One common mistake that many traders make when it comes to option trades is buying out-of-the-money (OTM) call options.
This is because OTM call options are inexpensive and have a range of around 100,000 to 1 million. To avoid this mistake, it’s important to know what the risks of buying OTM call options are and which option strategies are appropriate for you.
Overcome by: Focus on trading In-the-money (ITM) call contracts. Know your strategy.
5. Not Knowing What to Do When Assigned
When you enter into an options contract, you are essentially agreeing to buy or sell the underlying asset at a specific price on or before a certain date.
If the market moves in a way that benefits the buyer of the option (the person who contracts to buy the asset), they can choose to exercise their option and purchase the asset at the agreed-upon price. However, if the market moves in a way that benefits the seller of the option (the person who contracts to sell), then they may “assign” their contract to someone else – meaning that they no longer want to buy/sell the asset, but would like someone else to take on that responsibility.
This can be jarring if you haven’t factored it into your decision-making when trading options, so it is important to be aware of the possibility.
This is why traders need a higher trading level to sell options contracts or verticals.
Overcome by: Be okay with buying the shares if you are assigned. That is a part of your trading plan.
6. Legging Into Spreads
It is a common mistake for traders to get legged into spreads by entering positions when the market price has moved away from their position. They may have gotten caught up in the belief that they are being a “smart” trader by trying to profit from the spread.
The problem is that they are not taking into account that their cost basis must go up in order to maintain the position. If the market price of the underlying goes up, their cost basis must go up as well.
Overcome by: If you are not comfortable with this advanced strategy, then exit your options contract and place a new one.
7. Trading Illiquid Options
Trading illiquid options is a mistake because traders are taking on too much risk, with potentially disastrous consequences.
Illiquid means that the option cannot be bought or sold at the given time.
In other words, the option is not tradable. When traders trade illiquid options, they are taking a risk that their trades will not be executed because there is no liquidity in the market at that time. They have to hope that the market will become liquid again, and they can then sell their position or buy back their option at a lower price.
Overcome by: Check option volume and open interest at your strike place. Verify you have interest in moving your contract.
8. No Exit Plan
It is important to have a plan in case your trading strategy doesn’t pan out as planned.
This will give you the peace of mind that you won’t be left high and dry without an exit strategy.
With options is it more difficult to limit your risk to reward. As a result, you must decide your exit plan in advance.
Overcome by: Develop your trading strategy and include how and when you will exit the option contract.
Ready to Avoid these Trading Mistakes?
Investors are often their own worst enemy when it comes to trading.
They make emotional decisions instead of logical ones, and this leads to them making costly mistakes. Plus there are many technical errors new and seasoned traders are still making.
In order to be successful in the markets, investors must first learn to accept their losses and move on. Only then can they put that mistake behind them and focus on making profitable trades in the future.
In this post, I shared some of the more common trading mistakes that people make and how to avoid them.
Now, you have to work to avoid these trading mistakes and be profitable.
Know someone else that needs this, too? Then, please share!!