Save more, spend smarter, and make your money go further
Mothers tend to have an opinion about everything, and the older we get, the more we realize just how right they are! This is especially true when it comes to being smart with money. So the next time your mom offers up some wisdom, consider her advice as a gift to you this Mother’s Day!
Stick to a budget
A recent survey shows that 60% of Americans do not have a budget! You can’t possibly manage your finances without one. An app like Mint will help you create a budget, track your spending and set financial goals. Plus, when you sync all financial accounts to the app, everything is in one place. Budgets lead to a better financial future. Mom wants that.
Monitor your bank balance
While it’s easier than ever to check a balance here or pay a bill there, you may think you don’t need to maintain your own records. You do! You may think your mom is a bit old-school for balancing a ledger, but it’s important to check your account monthly. Cross-reference your spending with your checking account to see if your balance is higher or lower than it should be. Look over receipts, payments and cancelled checks and double check the amounts. If there are any inaccuracies, report them immediately.
Secure your future
While 401(k)s may be going the way of mom jeans, many companies still offer them. If you are lucky enough to work for a company that offers one of them, max it out. You can contribute up to $18,000 this year. It’s the best way to build wealth for your future, and minimize the tax bite – a worker in the 25% tax bracket who contributes the maximum this year will save $4,500 on his 2015 tax bill. If your employer matches contributions (50 cents on the dollar up to a maximum of 6% is common), this will help grow your retirement account balance even faster. For a worker earning $60,000 per year, this employer match – aka “free money” – could be worth as much as an additional $1,800 toward that retirement account. Mom will be so proud!
Save before you spend
Saving before spending is one of the easiest ways to boost wealth and meet your long-term goals. If you are paying yourself last, chances are there may not be much left to save after you’ve covered your housing costs, groceries, and utilities. You may have heard your mother say “pay yourself first”: set aside a certain portion of your income the day you get paid before you spend any discretionary income. Direct deposit is an easy way to save automatically.
Homemade gifts are the best
A large portion of the $173 we are expecting to spend on mom this year will be at restaurants, according to the National Retail Federation. If mom taught you how to cook, avoid the crowds and make her brunch at home. You will be putting the lessons she taught you to work while saving money and showing her how much she’s appreciated in the most personal way!
– Vera Gibbons,Mint Contributor and Personal Finance expert
Save more, spend smarter, and make your money go further
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As the old saying goes, “In real estate, location is everything.”
You may not know much about REITs, but you might want to consider one of them as a career. They’re great for people who like real estate, enjoy making money, and need consistent work hours.
Real estate investment trusts (REITs) are companies that were formed to make it easier for individuals to invest in real estate.
Want to know what the top paying jobs in Real Estate Investment Trusts are in 2022?
Well, take a look at this list of 25 best paying jobs for real estate investment trusts and see if you can find one that sounds perfect for you. In addition, each job features information about how much each job pays, what you can expect on the job, any job training needed, and other fun facts!
If you are looking for your next career, this article will give you plenty to think about as well as potential opportunities that may be available to you.
What are real estate investment trusts?
Real estate investment trusts, or REITs, have become an increasingly popular way for investors to get involved in the real estate market. REITs allow people to invest in large-scale real estate projects without having to purchase and manage the properties themselves.
In addition, REITs offer shareholders a wide range of benefits, making them a great choice for those looking to invest in this growing market.
How do real estate investment trusts work?
A REIT is a type of company that owns and operates various types of real estate, and because they are exempt from corporation tax on profits generated through rental income and the sale of rental properties; They are a very attractive option for high-earners.
They pile investors’ money together and invest in various commercial real estate, which increases returns over time. In addition, REITs are generally owned by the general public, and they invest in real estate assets.
Lastly, they make a profit through investments or leasing; a return on investment is typically received as a dividend. Real estate investment trusts are similar to mutual funds in that they hold investments, distribute dividends, and pay taxes.
Is a real estate investment career good?
Real estate investment companies are a great place to start a career in real estate.
Real estate investment trusts (REITs) are one of the most productive industries today. They provide steady and consistent growth, as well as good job opportunities with high salaries. Careers in real estate that can lead to better-paying jobs include appraisers and investment bankers.
Best paying jobs in real estate investment trusts
The market for REITs has grown rapidly in recent years, with the total value of REITs reaching almost $3.5 trillion by the end of 2021 (source).
There are many different jobs in the real estate investment trust industry that come with a variety of salaries. The best paying jobs are reserved for the C-level executives:
Chief Executive Officer: The CEO is the highest-ranking executive officer in a company and is responsible for making major decisions that affect the business. CEOs in the REIT industry earn an average salary of $468,000 per year.
Chief Financial Officer: The CFO is responsible for financial planning and reporting, as well as managing relationships with banks and other lenders. CFOs in the REIT industry earn an average salary of $341,000 per year.
Chief Operating Officer: The COO is responsible for overseeing all day-to-day operations of a company. COOs in the REIT industry earn an average salary of $325,000 per year.
Followed by the attorney, which is one of the highest-paying professionals in real estate investment trusts.
Now, we are going to list the most lucrative jobs in REITs. Then, you can decide… is real estate investment trusts a good career path for me.
The higher paid jobs will come with more education needed and years of experience.
1. Real Estate Attorney Jobs
Real estate attorneys are in high demand for their knowledge of transactional law and contractual issues. They work on a variety of deals involving the purchase, sale, or leasing of real estate. As such, they provide critical legal support to the real estate investment trust (REIT) industry.
Real estate attorneys license in their state to practice law. They can prepare contracts, advise clients on purchases and investments, review documents, represent mortgage lenders at closing, or simply provide legal counsel without the requirement of an attorney’s license.
Consequently, real estate attorney jobs are an excellent opportunity for those looking to work in the REIT industry.
Real Estate Attorney: well over 6 figures (average)
2. Real Estate Developer
Real estate developers are typically involved in the design, construction, and marketing of properties. They are also involved in land assembly and subdivision, zoning regulation, and the establishment of building codes.
Builders are involved in all aspects of the development process, from acquiring land to constructing buildings. Promoters are responsible for finding investors and marketing completed projects. In both cases, real estate developers may work either on their own or with a team of partners.
A developer obtains land and constructs assets for sale, while also selling them off when they become old enough to be sold again.
Real Estate Developer Salary: over 6 figures (average)
3. Director of Real Estate and Facilities
The Director of Real Estate and Facilities is responsible for a variety of tasks within the department. These tasks include, but are not limited to, the following:
Acquiring new properties
Negotiating leases
Overseeing property management
Maintaining the company’s physical infrastructure
Developing and implementing strategic plans
A director of real estate and facilities is a key role in any company that deals with real estate investment trusts (REITs). Therefore, this position often leads to advancement opportunities, making it an excellent career choice for those interested in this growing field.
Director of Real Estate and Facilities Salary: $130,000 a year (average)
4. Director of Acquisition
Directors of acquisitions in real estate investment trusts are responsible for finding new properties to invest in for the company.
Typically, they work with their analysts to conduct due diligence on potential investments and analyze the risks and rewards involved in order to provide a recommendation to their superiors.
The acquisition team is responsible for finding investment opportunities for the company, which can be traditional real estate assets or creative ideas that can become a business. They are constantly on the lookout for new and innovative opportunities that can help bolster the company’s growth.
Director of Acquisition Salary: $125,000 a year (average)
5. Real Estate Agent
As a licensed real estate agent, you would help clients buy, sell, and rent properties. In order to become a real estate agent, you must pass an exam that covers topics such as contracts, ethics, and state laws. You would be responsible for understanding the real estate market and helping your clients make informed decisions about their property transactions.
In the case of REITs, you must be a commercial real estate agent who are in charge of dealing with important financial data. They need to know about the internal rates of return, gross rent multipliers, and capitalization rates in order to do their job effectively. In order to become a commercial real estate agent, you will need some background in business and finance. This knowledge will help you understand your client’s needs and better serve them.
Unlike most professions, the more business deals you close as a real estate agent, the better your pay is. Furthermore, many agents work on commission-based pay, so it’s important to be knowledgeable about the market and have a strong sales skill set.
Agents who are successful can make much more than this amount; however, those who are just starting out may make less until they gain experience and build a client base.
Real Estate Agent Yearly Commission: $100,000 a year (average)
6. Investor Relations Manager
An Investor Relations Manager is responsible for managing the relationship between a company and its investors. They must be able to quickly understand complex financial information and communicate it in a clear and concise way. Additionally, they are responsible for communicating the company’s financial performance and strategy to investors.
They are also responsible for updating quarterly reports on the investor’s online dashboard. This can be a high-stress job because you must keep your investors happy especially during a market downtrend.
Investor Relations Manager Salary: $100,000 a year (average)
7. Project Manager
Project managers are responsible for ensuring that a project is completed on time and within budget.
They work in teams to make sure that all aspects of the project are completed. Thus, they must have strong organizational skills. They also typically have experience in leading and coordinating teams.
This is a highly lucrative job for those building new assets for a REIT. The highest-paid 10 percent earned more than $187,000, while the lowest-paid 10 percent earned less than $59,000.
Project Manager Salary: $90,000 a year (average)
8. Accounting Manager
They do this by preparing financial statements, maintaining accounting records, and overseeing the work of accountants and bookkeepers. In order to qualify for this position, you will need at least a bachelor’s degree in accounting or a related field, as well as several years of experience in accounting or bookkeeping.
However, with experience and expertise in the field, it is possible to earn much more than that. Those who work for real estate investment trusts (REITs) can expect to make even more money.
Accounting Manager Salary: $90,000 a year (average)
9. Asset Managers
Asset Management is a process that oversees the operational and financial work of a portfolio of assets. This includes tasks such as budgeting, forecasting, reporting, and analyzing data to make sure the asset is performing well.
As they are responsible for managing the portfolio assets in the real estate investment trust (REIT), they must expect a higher stress job. In addition, their job entails working with other departments in the company, such as accounting, acquisitions, development, and finance.
Asset Managers Salary: $89,000 a year (average)
10. Construction Supervisor
A construction supervisor oversees all aspects of a construction project, ensuring that it is completed on time, within budget, and to the required standard. This position requires a great deal of experience and knowledge in the field, as well as strong leadership skills.
They make sure that everything runs smoothly! Speficially, all the necessary equipment, materials, and supplies are ordered and on-site when they are needed. They also check the quality of the work as it is being done; making sure projects are constructed in accordance with contract documents, standards, codes, and policy.
In order to become a construction supervisor, you need only a high school diploma or GED. However, five years of experience in yard operations or equivalent education and experience is preferred.
Construction Supervisor Salary: $89,000 a year (average)
11. Investment Due Diligence Analyst
An investment due diligence analyst is responsible for conducting an extensive analysis of potential investments for a real estate investment trust. They work with the team to identify opportunities, underwrite deals, and make recommendations. The role is essential in helping the team make sound investment decisions that will benefit the company in the long run.
This job is a key player in the real estate investment trust (REIT) industry.
To be successful in this role, you’ll need experience with REITs or a national brokerage, as well as excellent quantitative skills including the ability to build real estate valuation models and distribution waterfalls.
Investment Due Diligence Analyst Salary: $80,000 a year (average)
12. Financial Analyst
The most common role of a financial analyst is assessing a company’s current and future financial health, which may include issuing stock recommendations, forecasting earnings, and providing risk analysis. Financial analysts may also work with investment bankers to identify new investment opportunities.
However, salaries can vary significantly depending on the size of the company, the city in which you work, and your level of experience.
Financial Analyst Salary: $80,000 a year (average)
13. Business Acquisition Analyst
An acquisitions analyst is responsible for reviewing potential investments and determining the risks and rewards associated with commercial property.
The analysis will include both macro-level information, such as the political and economic environment, as well as more fine-tuned data that is specific to the investment itself.
Many in this role have found a business degree to be well worth the cost.
Director of Acquisition Salary: $78,000 a year (average)
14. Commercial Property Manager
Property management is a growing field, as the demand for individuals who can manage both residential and commercial properties increases. The goal of property managers is to ensure assets are kept in good condition and are appealing to owners and tenants alike.
Real estate investment managers have a very important job, as they are responsible for meeting the needs of property owners, tenants, and investors.
Primarily, they oversee maintenance and repairs, collect rent, screen tenants and enforce lease agreements. They also may negotiate leases, recommend improvements to the property, and coordinate with contractors.
Commercial Property Manager Salary: $75,000 a year (average)
15. Real Estate Photography
Real Estate photography is a specialized field within the photography industry. As such, many photographers start their own businesses in this area.
In order to be successful, it’s important to have strong marketing and business skills. Your portfolio should showcase your best work and be tailored to the types of properties you will be photographing. Additionally, you may choose to offer additional services such as virtual tours or video production.
A real estate photographer would work closely with the marketing team.
Real Estate Photographer: $70,000 a year (average)
16. Marketing Coordinator
Marketing coordinators are responsible for developing and executing marketing campaigns.
They work with the advertising department to come up with ideas. Then, working with the rest of the company to make sure that those campaigns are executed properly. They create all marketing materials, track campaign results, liaise with outside vendors, and organize events.
Given the regulations around REITs, it is highly important that the marketing communications follow the investment directives from the SEC.
Marketing Coordinator Salary: $67,000 a year (average)
17. Maintenance Supervisor
A maintenance Supervisor is a position that requires managing and overseeing the work of others. Thus, ensuring work is completed in a timely, efficient and safe manner.
They are responsible for making sure all company policies and procedures are followed, as well as any legal requirements or safety regulations. Additionally, they manage budgets and expenses, as well as staff.
The ideal candidate will have experience in the property management or construction industries, as well as supervisory experience. A degree in engineering, architecture, or a related field may be beneficial.
Maintenance Supervisor Salary: $65,000 a year (average)
18. Property Appraiser
Appraisers are typically called in when there is a need to settle a dispute about the value of a piece of property, or when someone is buying or selling a home and needs to know how much it is worth.
Most states require that you be licensed in order to practice as an appraiser. The job outlook for appraisers is good; the Bureau of Labor Statistics predicts that employment will grow by 4% from 2020-2030 (source).
Property Appraiser Salary: $60,000 a year (average)
19. Leasing Consultants
Leasing consultants are responsible for meeting and greeting clients, touring potential tenants through a property, and helping them decide whether or not to lease it. They must be knowledgeable about the property they are showing, as well as about the local rental market.
Consequential, this is a good job for someone who is able to close deals, so being persuasive is important.
They should also be outgoing and comfortable working with people from all walks of life. A high level of professionalism is essential, as is attention to detail. Leasing consultants typically earn commissions based on the number of leases they sign, making this a commission-based job.
Leasing Consultant Salary: $50,000 a year (average)
20. Commerical Real Estate Intern
Commercial real estate internships are a great way to get started in the commercial real estate industry. Many internships will give you the opportunity to work with the CEO/COO and learn about all aspects of the business.
In most internships, you will gain vast knowledge while working with every department within the company.
Consequently, interns often have the chance to work with different teams and learn about all aspects of commercial real estate. This is a great way to gain experience in the field. Plus you will get a well-rounded working experience and the opportunity to build your network.
You must be a college student who is detail-oriented, self-starter, creative and strategic thinker in order to be considered for any real estate internship.
Commercial Real Estate Intern Salary: unpaid to $20 an hour
(Source for All Salary Information: Glassdoor.com)
Bonus = Real Estate Investors
Real estate investors use a variety of strategies to make money in the real estate market. Some invest a minimal amount of money, while others take on high-risk ventures.
In order to be successful, investors must be well-versed in real estate investment strategy and have extensive knowledge of the market.
This is why REITs are so popular with most investors. It allows a hands-off approach to real estate investing. Yet, still profit in the real estate appreciation and rental income.
Real Estate Investors Salary: varies on the amount of money invested but most want at least a 6-10% return
What real estate investment jobs are entry level?
Real estate investment is one of the best paying jobs in the world. The job offers a lot of opportunities for growth and allows you to work with different types of people.
It also has a relatively low barrier to entry, making it a great option for those who are starting their careers.
Most people in real estate started at the bottom and worked their way up the corporate ladder with hard work and persistence.
What are the minimum requirements for entry level real estate jobs?
The industry is growing rapidly and there are many different opportunities for those looking to enter the field. However, it’s important to note that entry-level jobs in this field come with specific skill sets and education requirements.
Most require at least a college degree if not at least 5 years of hands-on experience. One of the best places to start without any qualifications and education is as a leasing consultant
If you want to progress quickly in your career in real estate, consider taking a chance on one of the best paying jobs in REITs listed here. In fact, there are many jobs available in real estate investment trusts.
REITs – Which real estate investing job looks appealing to you?
The REIT industry is constantly growing, and with that comes new opportunities for a lucrative career path.
Many of the roles in a REIT are highly challenging, pay well, and are respected by investors. Many people work together as a team to build new projects, manage existing projects as well as work to finance them.
There are plenty of benefits of spending time researching this industry and finding the job for you.
In fact, it is an exciting and rewarding career!
Know someone else that needs this, too? Then, please share!!
Taking out a mortgage is the biggest financial obligation most of us will ever assume. So it’s essential to understand what you’re signing on for when you borrow money to buy a house.
What is a mortgage?
A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money.
A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan.
You’ll repay the mortgage at regular intervals, usually in the form of a monthly payment, which typically consists of both principal and interest charges.
“Each month, part of your monthly mortgage payment will go toward paying off that principal, or mortgage balance, and part will go toward interest on the loan,” explains Robert Kirkland, vice president, Divisional Community and affordable lending manager with JPMorgan Chase. Over time, more of your payment will go toward the principal.
If you default on your mortgage loan, the lender can reclaim your property through the process of foreclosure.
“You don’t technically own the property until your mortgage loan is fully paid,” says Bill Packer, executive vice president and COO of American Financial Resources in Parsippany, New Jersey. “Typically, you will also sign a promissory note at closing, which is your personal pledge to repay the loan.”
Key Takeaways
A mortgage is a loan that helps borrowers purchase a home. The home itself serves as collateral for the debt.
To qualify for a mortgage, you will need to supply proof of income, a list of your assets and debts, info for credit inquiries, and explanations of any financial gifts to purchase the home.
There are a variety of mortgage products available on the market.
Your monthly mortgage payment will include your loan principal and interest, plus your property taxes, homeowner’s insurance, and, if applicable, private mortgage insurance (PMI).
Learning mortgage lingo upfront can help you to be an informed borrower and ask the right questions throughout the application and payment process.
How does a mortgage work?
A mortgage is a loan that people use to buy a home. To get a mortgage, you’ll work with a bank or other lender. Typically, to start the process, you’ll go through preapproval to get an idea of the maximum the lender is willing to lend and the interest rate you’ll pay. This helps you estimate the cost of your loan and start your search for a home.
Starting the mortgage process
Applying for a mortgage is a thorough process, involving many steps on your end. To start, you’ll need proof of income (through paystubs and previous year’s tax returns), a list of assets (including brokerage statements, if applicable), a list of debts, personal data for credit inquiries, and letters explaining any financial gifts you receive for the home purchase such as help with a down payment from family members.
Once you gather your documents, you’ll apply for the mortgage through the lender’s website. Having all the documents ready to go can expedite the process of earning a pre-approval, since they can show their underwriters you indeed have the qualifications to pay for the mortgage.
Types of mortgages
There are several types of mortgages available to borrowers, including conventional fixed-rate mortgages, which are among the most common; adjustable-rate mortgages (ARMs); FHA, VA and USDA loans; jumbo loans; and reverse mortgages.
Conventional loans – A conventional mortgage is not backed by the government or government agency; instead, it is made and guaranteed through a private-sector lender (bank, credit union, mortgage company).
Jumbo loans – A jumbo loan exceeds the size limits set by U.S. government agencies and has stricter underwriting guidelines. These loans are sometimes needed for high-priced properties — those well above half a million dollars.
Government-insured loans – These include VA loans, USDA loans, and FHA loans, and have more relaxed borrower qualifications than many privately-backed mortgages.
Fixed-rate mortgages – Fixed-rate mortgages have a set interest rate that remains the same for the life of the loan (terms are commonly 30, 20, or 15 years).
Adjustable-rate mortgages – An adjustable-rate mortgage (ARM) has interest rates that fluctuate, following general interest-rate movements and financial market conditions. Often there’s an initial fixed-rate period for the loan’s first few years, and then the variable rate kicks in for the remainder of the loan term. For example, “in a 5/1 ARM, the ‘5’ stands for an initial five-year period during which the interest rate remains fixed while the ‘1’ indicates that the interest rate is subject to adjustment once per year” thereafter, Kirkland notes.
What is included in a mortgage payment?
There are four core components of a mortgage payment: the principal, interest, taxes, and insurance, collectively referred to as “PITI.” There can be other costs included in the payment, as well.
Principal – the specific amount of money you borrow from a mortgage lender to purchase a home. If you were to buy a $100,000 home, for instance, and take out a loan in the amount of $90,000, then your principal is $90,000.
Interest – interest, expressed as a percentage rate, is what the lender charges you to borrow that money. In other words, the interest is the annual cost you pay on the loan principal.
Property taxes – your lender typically collects the property taxes associated with the home as part of your monthly mortgage payment. The money is usually held in an escrow account, which the lender will use to pay your property tax bill when the taxes are due.
Homeowners insurance – homeowner’s insurance provides you and your lender a level of protection in the event of a disaster, fire or other accident that impacts your property. Often, your lender collects the insurance premiums as part of your monthly mortgage bill, places the money in escrow, and makes the payments to the insurance provider for you when the premiums are due.
Mortgage insurance – your monthly payment might also include a fee for private mortgage insurance (PMI). For a conventional loan, this type of insurance is required when a buyer makes a down payment of less than 20 percent of the home’s purchase price.
How to find the best mortgage rate
To identify the mortgage that’s best for your situation, assess your financial health, including your income, credit history and score, and assets and savings. Spend some time shopping around with different mortgage lenders, as well.
“Some have more stringent guidelines than others,” Kirkland says. “Some lenders might require a 20 percent down payment, while others require as little as 3 percent of the home’s purchase price.”
“Even if you have a preferred lender in mind, go to two or three lenders — or even more — and make sure you’re fully surveying your options,” Pataky says. “A tenth of a percent on interest rates may not seem like a lot, but it can translate to thousands of dollars over the life of the loan.”
Sign up for a Bankrate account to determine the right time to strike on your mortgage with our daily rate trends. Bankrate makes mortgage loan comparison simple, so that you can weigh the various options and decide what loan product best fits your situation.
Important mortgage terminology to know
Amortization describes the process of paying off a loan, such as a mortgage, in installment payments over a period of time. Part of each payment goes toward the principal, or the amount borrowed, while the other portion goes toward interest.
An APR or annual percentage rate reflects the yearly cost of borrowing the money for a mortgage. A broader measure than the interest rate alone, the APR includes the interest rate, discount points and other fees that come with the loan.
“Conforming” refers to a conforming loan, a mortgage eligible to be purchased by Fannie Mae or Freddie Mac, the government-sponsored enterprises (GSEs) integral to the mortgage market in the U.S. These standards include a minimum credit score and maximum debt-to-income (DTI) ratio, loan limit and other requirements. Fannie Mae and Freddie Mac buy loans from mortgage lenders to create mortgage-backed securities (MBS) for the secondary mortgage market.
A “non-conforming” loan or mortgage doesn’t meet (or “conform to”) the requirements that allow it to be purchased by Fannie Mae or Freddie Mac. One example of a non-conforming loan is a jumbo loan.
The down payment is the amount of a home’s purchase price a homebuyer pays upfront. Buyers typically put down a percentage of the home’s value as the down payment, then borrow the rest in the form of a mortgage. A larger down payment can help improve a borrower’s chances of getting a lower interest rate. Different kinds of mortgages have varying minimum down payments.
An escrow account holds the portion of a borrower’s monthly mortgage payment that covers homeowners insurance premiums and property taxes. Escrow accounts also hold the earnest money the buyer deposits between the time their offer has been accepted and the closing.
A mortgage servicer is the company that handles your mortgage statements and all day-to-day tasks related to managing your loan after it closes. For example, the servicer collects your payments and, if you have an escrow account, ensures that your taxes and insurance are paid on time.
Private mortgage insurance (PMI) is a form of insurance taken out by the lender but typically paid for by you, the borrower, when your loan-to-value (LTV) ratio is greater than 80 percent (meaning you put down less than 20 percent as a down payment). If you default and the lender has to foreclose, PMI covers some of the shortfall between what they can sell your property for and what you still owe on the mortgage.
The promissory note is a legal document that obligates a borrower to repay a specified sum of money over a specified period under particular terms. These details are outlined in the note.
Mortgage underwriting is the process by which a bank or mortgage lender assesses the risk of lending to a particular individual. The underwriting process requires an application and takes into account factors like the prospective borrower’s credit report and score, income, debt and the value of the property they intend to buy. Many lenders follow standard underwriting guidelines from Fannie Mae and Freddie Mac when determining whether to approve a loan.
The reality of owning a small business in the United States today is that most companies will eventually, in the course of doing business, encounter a surety bond. If you’re one of the many companies today that does need a bond to conduct your business legally, you have probably wondered what the financial benefits are to the bonding process. And it would follow that you’ve also considered the legal and financial ramifications of not purchasing the necessary surety bonds for your company.
What is a Surety Bond?
Surety bonds represent an agreement between three parties: the party requiring the bond, the party purchasing and maintaining the bond, and the surety bond company who sells the bond. Typically, the entity who requires the bond is usually a governmental agency, and in addition to the federal government’s bond requirements, most states and localities have their own regulations which legislate bond coverages. Ultimately, the government’s insistence on bonding is generally to protect consumers against misconduct or non-performance on the part of the bonded company. If a consumer is harmed in the course of doing business with a bonded company, the party requiring the bond files a claim against it and, if the claim is valid, the surety bond company pays an agreed upon damage amount (up to the full value of the bond). Because the surety company pursues reimbursement from the bonded company, however, surety bonds are not a form of insurance but actually a form of credit.
Becoming bonded is a simple process and is generally inexpensive, particularly compared to insurance premiums and other small business expenses which can add up quickly. Bond amounts vary widely based on the type of bond that you need. For instance, when it comes to surety bonds in Illinois, a mortgage broker bond needs at least $20,000 while a collection agency needs a $25,000 bond to conduct business. Prices on these bonds can vary based on the dollar amount required and on the company’s credit status and financial history, which will be reviewed by the surety company at the time of purchase. If the company seeking the bond has a very poor credit history, they may not be able to purchase a bond at all, or may have to seek out a surety company that specializes in subpar credit bonds. Since surety bonds are a type of credit and rates are based on the financial health of the applicant, these bonds are at least twice as expensive as surety bonds for companies who have excellent credit.
Incentives of Surety Bond
While at first the prospect of a surety bond can seem potentially cumbersome and like one more hoop you need to jump through in order to conduct your business, rest assured that there are incentives to maintaining a valid bond. Most notably, incorporating your bonding status in your company’s advertisements will most likely increase your sales and business a great deal. In today’s difficult economy, consumers are becoming more and more aware of the importance of doing business with reputable, safe companies in order to maximize their gains from the transaction and minimize their loss, and becoming licensed and bonded represents a company’s willingness to work within the appropriate legal channels for their industry. Be sure to advertise your licensed and bonded status prominently in any promotional activity for your business, and mention it in any conversation you have with new clients and customers.
On the other hand, if you choose not to comply with legal requirements and purchase a bond, there are consequences, and some can be quite dire. Not maintaining the appropriate surety bonds can result in financial consequences first, namely fines from state, local, or federal government. Additionally, the lack of a surety bond can result in your business license being revoked or suspended which will effectively shut down your company until you’ve become bonded and can resume activity. Becoming bonded and resuming business can take up to several weeks due to the legwork required with getting paperwork where it needs to be, and providing documentation to all the parties who need it.
Are There Hidden Costs?
As we mentioned earlier, there’s also a rather hidden cost of failing to purchase a surety bond. Consumers use your bonding status as a sign of your company’s willingness to perform your job ethically and according to fair business practices. Choosing not to uphold your legal obligations to take out a surety bond demonstrates a poor attitude towards business in general and can be extremely detrimental to your public image.
Purchasing the required surety bonds for your business should really be a no-brainer. Bonds typically only cost a few hundred dollars, but the penalties for not carrying the required bonds can be well into the thousands. Don’t expose your business to risk and poor publicity. Save yourself some time, money, and sanity by getting bonded before you even begin doing business.
Bio: This is a guest post from Matt Bruns, a principal for SuretyBonds.com, the nationwide provider in surety bonds, as part of their surety bond education program. Matt is not affiliate or endorsed by LPL Financial.
Return on Equity vs. Return on Assets: Key Differences
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Return on equity (ROE) and return on assets (ROA) determine how efficient a company can be at generating profits. Both formulas that can help investors determine how good a company is at turning a profit. Let’s take a look at both metrics, how to use them, how they differ and what their limitations are.
If you’d like personalize investment advice, consider working with a financial advisor.
Return on Equity Definition
According to the Corporate Finance Institute, return on equity (ROE) is a percentage that expresses a company’s annual income relative to its total shareholder equity. The equation for ROE is the company’s net income for the year divided by its shareholders’ equity. ROE is a great way to calculate a company’s profitability—put simply, how good it is at making money.
A company’s net income is the amount of money it brings in after paying all its financial obligations, such as taxes and operating expenses. Shareholder equity is the sum of a company’s net worth. The idea is that if the company shut down and liquidated its assets and paid off its debts immediately, the shareholder equity would be the remaining amount that would be distributed to those who owned stock in that company.
Here’s a simplistic example to illustrate how ROE works: Let’s say Company A has a net income of $10 million. Meanwhile, their total stockholder equity—the amount the company would pay to stockholders if it liquidated all its assets and paid off its debts—is $80 million. The ROE for Company A would be 12.5%.
Thus, ROE can be a valuable metric to use as an investor. If you’re considering investing in a company, you can look at their ROE over the years to see if its growing or diminishing, which can point to whether leadership is making wise decisions that benefit shareholders. You can also compare that company’s ROE to other companies in the sector to see how their financial performance matches up.
Return on Assets Definition
Return on assets (ROA) is a different equation but serves a similar purpose: determining how effective a company is at utilizing their assets to create more value. The equation used for ROA is taking the company’s net income and dividing it by their total assets.
A company’s total assets include everything that company owns that can generate money. That might be plain old cash, inventory, intellectual property such as patents, real estate and more. If they could sell it for a profit, that’s an asset.
Let’s take a look at what a simple example of ROA might look like. Let’s say Company B has a net income of $5 million and owns $25 million in assets. When you do the math, you see that Company B has an ROA of 20%. That means for every dollar of assets, the company generates 20 cents in profit.
ROA can be helpful because it shows how a company is using its current investments to generate profits. Higher percentages mean the company is better at its assets to make more money; lower percentages mean that its worse at it.
How ROE and ROA Differ
If both of these measurements sound pretty similar to you, you’re not wrong. They do have a lot in common — both in what they measure and the purpose they serve. But they do have some important differences.
The single biggest difference between ROA and ROE is that ROA takes into account a company’s debt, while ROE doesn’t. If a company doesn’t have any debt, these two numbers would be the same for that company. Debt can add new assets to a company’s balance sheet, but of course the company also now has a financial obligation to its creditor.
Companies can use debt to artificially boost their ROE. Companies can generate profits by borrowing large amounts of money and using that to drive greater income. Of course, that money isn’t free and a company with too much debt isn’t healthy. Make sure you examine both of these metrics rather than just relying on ROE.
How to Use These Metrics
It’s important to know that there are some limitations to these metrics. Investors should not make decisions based on any one number. Any one number may not be representative of the company as a whole, and there are many ways that numbers can be manipulated by unethical accounting methods.
ROE particularly can be manipulated due to the fact it’s not impacted by how a company is leveraged—that is, how much debt it has. As mentioned above, company can borrow extensively to boost profits and artificially inflate their ROE. Stock buybacks can have a similar effect. Make sure that you’re taking a look at the company’s entire balance sheet and wider strategy before making any investment decisions.
And you may be asking: How will I know whether a certain percentage is “good?” For ROA, over 5% is good and over 20% is great. For ROE, 15-20% is considered good — in 2022, S&P 500 companies averaged a ROE of just over 21%. However, these standards can differ greatly between sectors and industries.
The Bottom Line
ROE and ROA can both extremely useful metrics for investors determining the financial health of a company. These formulas can help you determine whether a company is using their assets in a productive and efficient way—and thus, whether or not you should invest in them.
Tips for Investing
Investing isn’t always easy to get into, especially for beginners. But you can get personalized, detailed financial advice from a profession to help you build an investment strategy for your current and future life. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One of the most important lessons in investing is to maintain a diverse portfolio. A variety of investments in different sectors, industries, locations and risk levels can help you create a portfolio that minimizes risk while still generating strong profits. Use SmartAsset’s asset allocation calculator to help determine a well-diversified portfolio that works for you.
Save more, spend smarter, and make your money go further
Want to pay off high-interest debt in one fell swoop? Searching for ways to pay for a basement renovation, a bathroom upgrade, or a new tile roof? Since you probably don’t have that kind of money stuffed under your mattress, a natural place to look for more funds is in your single biggest asset: your home.
But before you tap into those funds, you need to know exactly what you’re getting into. Putting your home at risk isn’t for the uninformed or undisciplined.
Home equity loan vs. home equity line of credit
The first step to tapping into your home equity involves understanding your options. There are two major ones: a home equity loan (HEL) or a home equity line of credit (HELOC). Here’s a handy guide to the basic differences between the two, including pros and cons.
Helpful tips on the HEL
A home equity loan is, at heart, a second mortgage. You receive a lump sum at a fixed rate of interest that’s locked in when you procure the loan. You’re expected to pay it back in fixed monthly payments for a fixed amount of time — typically 10 to 15 years.
Pros:
Your interest rate is fixed, which means no shocking increases later.
Because payments are due monthly, this can be a good option if you have a hard time exercising the discipline needed to pay off a loan a little at a time on your own.
The interest rate on a HEL, though higher than that on your primary mortgage, will still be lower than the rates available on credit cards.
If you’re using your HEL to pay off credit cards, in addition to lower interest rates, you’ll have the benefit of consolidating all your debts into one payment.
The interest on your home equity loan may be tax-deductible, but you’ll want to thoroughly read Publication No. 936, the IRS’s guidelines on the home mortgage interest deduction, to ensure the degree to which you’re eligible. If your loan is for home-improvement purposes, rather than, say, college tuition, you’re allowed even greater leeway in deducting the interest.
Cons:
You borrow (and owe interest on) the whole amount, rather than being able to simply borrow what you need.
If you’re using the equity to fund something that will involve multiple payments over time — say, for example, a phased home-improvement project or quarterly payments on college tuition — you’ll have to be sure not to spend the money on other things in the interim.
If you use your HEL to fund something that immediately depreciates, such as a car or new furniture, you may hurt your net worth in the long term. Boosting the value of your home has a better chance of enhancing your overall financial picture over the long haul.
You may be prohibited from renting out your home, according to your loan terms.
You risk losing your home if you can’t make the payments.
Hello, HELOC
A home equity line of credit, by contrast, functions more like a credit card — using your home as collateral. You ask for a line of credit, and the lender assigns a maximum amount you can borrow — a credit limit. Lenders typically determine this amount by taking a percentage of your home’s appraised value and subtracting the amount you still owe on the mortgage; then they factor in things such as your credit history, debt load, and income. The lender then gives you a set of blank checks or a credit card that you can use to withdraw funds.
Unlike a HEL, the line of credit allows you to borrow what you need, when you need it, up to the full amount approved. So why wouldn’t everyone want to apply for a HELOC in case an emergency strikes? Take a look at the pros and cons to see for yourself.
Pros:
You don’t have to borrow in a lump sum; you can withdraw the funds when you need them.
HELOCs can be used as emergency funds in the event of a crisis, like losing your job, since you can access funds on an ongoing basis as needed.
Some lenders may allow you to convert to a fixed rate of interest, or to a fixed-term installment loan, for part or all of your balance.
The rates of interest, though variable, may still be lower than other forms of consumer credit, since they are secured with collateral — your home.
The interest on your HELOC may be tax-deductible, just as it is for the HEL, but consult IRS Publication No. 936 for confirmation of what applies to your particular circumstance.
Cons:
HELOCs typically have variable interest rates tied to the prime rate, so you could end up owing a much higher balance than you had anticipated.
The terms of a HELOC may dictate that you must begin withdrawing funds within a certain time period, and that you withdraw a minimum each time.
The costs of securing a HELOC aren’t pocket change. Expect to pay for a current property appraisal, an application fee, closing costs, and other possible charges, including points on your loan. You may also be subject to transaction fees every time you withdraw money.
Though the HELOC offers flexibility in terms of when you withdraw funds, there is no flexibility in terms of the end date. When the term of your loan expires, the balance of the loan is due in full. If you procrastinate or have difficulty making regular payments over the long haul, you may be hit with an excessively large bill at the end.
Lenders make it very easy to access the funds; you have to be disciplined enough to resist unless there’s an emergency or a planned expenditure that’s worthy of risking your home.
You may be prohibited from renting out your home, according to your loan terms.
You can damage your credit and lose your home if you’re unable to repay on schedule.
Conclusion
Before you rush to apply for a home equity loan or line of credit, first give serious consideration to whether you really need the funds. The terms can sound enticing, and the money seems relatively easy to get, but it all may be too easy. If you’ve ratcheted up high-interest debt and now see your home equity as a way to deal with the problem, you need to recognize that the loan is just a temporary fix. Clearing the decks so you can start spending again will be destructive to your financial health.
Whether it’s a HEL or a HELOC, consider yourself a good candidate only if you have the discipline to use the funds for a dedicated purpose, you’re spending the money on something of vital importance, and you can repay on time. If that’s you, tapping into home equity can be a useful strategy for accomplishing your goals.
Save more, spend smarter, and make your money go further
Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.
Married or not, it’s important to address the problems at the heart of financial disagreements and start communicating. Otherwise these issues may fester and grow.
Instead of judging each other’s spending habits or fighting over money, couples can learn how to start working on financial issues together as a team.
Here are some ways to help you make money discussions productive, and not a fight.
Common Causes of Couple Money Fights
While there are countless variations of money fights you might have, these are a few of the most common triggers:
Sharing important account information
Some couples struggle with privacy limits and financial security, and they may disagree upon what level of access their partner should have to their financial accounts. If one partner feels they don’t have fair access to financial accounts, passwords, and paperwork, resentment can build.
Married couples in particular may find it confusing and challenging to not have a full picture of their complete financial health.
Determining budgeting and spending limits
Maybe one of you likes to spend and enjoy life. And the other likes to save for a rainy day. This disconnect happens all the time. Not all couples see eye to eye on how much they should be spending and this can lead to anger and tension.
Dealing with debt
If one partner brings debt with them to the relationship, it isn’t uncommon for the couples to disagree about who is responsible for paying off the debt.
Tackling debt can be stressful under the best circumstances, and it can lead to turmoil and fighting if a romantic partner feels the debt is an unfair burden on the relationship.
Savings and investing
Some couples can’t agree how much money they should save and how they should be saving it.
One partner may feel investing their savings is the better path to a stronger financial future, but the other partner may find investing too risky and want to keep the money in a high-yield savings account. This can cause turmoil if both partners’ chosen path forward is the only one they are comfortable with.
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Retirement planning
When you’re balancing a lot of different expenses, deciding as a couple how much money to save for retirement and what age they may want to retire can be challenging.
But those who don’t have a plan for slowly and consistently saving for retirement can find themselves continually fighting about retirement savings. This is especially true if one partner is particularly worried about not being financially prepared for the future.
How to Stop Fighting About Money
Before your next money fight erupts, try these tips to help stop the arguing.
Changing the way you talk about money
Working on your communication skills can help keep financial discussions from devolving into arguments.
When you’re discussing money, the main goal of a productive talk is to really listen to each other and try to understand the other person’s point of view, as opposed to jumping to conclusions or making accusations.
One technique that can help with this is using “I” instead of “you” in your statements. For example, one partner might say, “I get frustrated when the bills aren’t paid on time. Can I help you out with that?” rather than, “you never pay the bills on time.”
Another method is trying to avoid using the words “always” and “never” when discussing money matters. These terms can put the other person immediately on the defensive.
Setting up a budget together
Creating a budget as a couple is key. To help establish your saving goals and monthly spending targets, begin by figuring out what your joint net worth is. Then track your income and expenses for several months.
Once you know what you’re spending money on, you can work out a flexible budget, with short-term financial goals and long-term goals.
Planning ahead helps both partners agree on how much needs to be set aside for retirement or a down payment on a house, and how much you each can allocate to spending as you individually see fit.
Being open and honest
It’s tempting to omit key information when we’re trying to avoid conflict. But even if a person doesn’t fib about an expensive purchase or lending money to a family member, failing to share significant financial information can make the other partner feel like they’re being lied to and misled. This can breed distrust and cause financial stress.
Prevent these problems by being honest about financial decisions, even if you know they may upset your partner. As reluctant as you may be to bring these topics up, it can be better in the long run than hiding it from them and committing financial infidelity.
Establishing some boundaries
One way to avoid the need to cover up pricey purchases is to agree to a few simple rules about what spending decisions should be shared and what spending decisions are okay to make solo.
For example, one couple may decide they don’t need to alert each other about a purchase if it’s under $500. Another couple may agree to lend money to siblings when they need it. And some couples may together decide to never lend money to friends or family under any circumstances.
By setting boundaries and limits, and then adhering to them, couples may stop feeling like they have to report their every financial move.
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Setting up a joint account
One of the main benefits of opening a bank account together is that it can provide a clear financial picture. A joint account allows couples to track spending, and it can make sticking to a budget easier, while also helping to foster openness.
On the downside, sharing every penny can sometimes lead to tension and disagreements, especially if partners have different spending habits and personalities. One solution might be to have a joint checking and savings account, as well as two individual accounts with a set amount of money to play with every month.
Having different accounts, including one for their personal use, can give each partner some freedom to spend on themselves without having to explain or feel guilty about their expenditures.
Teaming up against debt
Working together on a reasonable plan to start getting out of debt can help couples alleviate a major stress on their marriage.
One strategy for debt reduction might be the avalanche method. To do it, you make a list of all your debts by order of interest rate, from the highest percentage to the lowest. Then, while continuing to make all your minimum monthly payments on existing debts, the couple might decide to put as many extra payments as possible to the highest interest rate loan.
Or, they might decide to simply eliminate the smallest debt first, or look into consolidating debts into a single loan, which could make it easier to manage.
Whatever plan you agree on, working on debt reduction can give you a shared goal to work toward together.
Scheduling a monthly financial check-in
Even if one partner takes on a bigger role in managing finances, paying bills, and keeping on top of the budget, both parties need to stay up to date on what’s going on in order to achieve financial security.
Rather than only talking about your finances when you’re stressed about bills, a better strategy might be to set a specific time on your calendar each month to sit down together and review your recent spending, income, savings, bills, and investments.
If you can’t swing monthly meetings, then aim for quarterly or biannual financial sit-downs.
Getting help from an advisor
While spending more money may seem like an added stressor, some couples who pay for a financial coach may find that it helps them save more down the road.
And, it might be easier to talk about an emotionally charged subject like money with an unbiased third party who can help diffuse tension and get you both to agree on a smart spending and savings strategy.
The Takeaway
Fighting over money, or finding it hard to talk openly and constructively about it, is a common source of friction between couples. Some strategies that can help include learning how to communicate about financial issues more productively, setting up monthly money check-ins, and letting each partner have some financial privacy.
For couples who are ready to integrate their finances, SoFi Checking and Savings makes it easy to create a joint account that gives you both shared access to your money. Plus, you’ll earn a competitive APY and pay no account fees. That’s something that you can both agree is a good thing!
Manage your money as a team with SoFi Checking and Savings.
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SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. 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. SOBK0523017U
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Return on invested capital (ROIC) is a financial metric that shows how well a company converts capital into profits. It measures the company’s efficiency and effectiveness at allocating its available capital to projects, products and investments that produce profits. Investors use ROIC to assess a company’s profitability and ability to create value. ROIC can be boosted by increasing profits, selling unproductive assets, speeding up inventory turnover and improving their capital structure.
A financial advisor can explain how metrics such as ROIC can guide your investment choices.
What Is ROIC?
Return on invested capital (ROIC) measures the amount of profit a company earns from the capital it receives from investors who own its stock and buy its bonds. It is an important financial metric, expressed as a percentage, that indicates how effective and efficient a company is at generating profits by selecting the best places to invest its available capital.
ROIC is one of a number of metrics investors use, each of which provides a distinct insight into a company’s financial health. Return on investment (ROI), for instance, compares an investment’s earnings to the cost of the investment. The difference between these two is that ROIC measures how well a company is doing in allocating its capital in ways that produce profits, while ROI looks at the gain on an investment compared to its cost to the investor.
Why ROIC Matters
ROIC measures a company’s ability to generate free cash flow, which is an important metric for investors to determine company value. The average ROIC is about 9.13%, according to a New York University analysis. A high ROIC can indicate that company is more valuable than a similar firm with a lower ROIC. A higher ROIC can lead to higher stock prices.
ROIC is also used to benchmark companies. By comparing ROICs among competitors, an analyst can get an idea of how well-run a company is versus its peers.
How to Calculate ROIC
Calculating ROIC involves dividing net operating profit after tax (NOPAT) by the amount of capital invested. NOPAT is the amount of operating profit the company has when adjusted for taxes. Capital invested is the total amount of money investors have given the company in exchange for its shares and debt instruments, such as bonds.
The formula looks like this:
ROIC = NOPAT / Invested Capital
For example, a company that produced a $1 million annual NOPAT while investing $5 million during that year would have an ROIC of 20%. An average of the profits and capital invested over several years can also be used to generate an ROIC reflective of longer-term trends.
Interpreting ROIC
Generally speaking, a company with a higher ROIC has the potential to generate more profit and cash flow and be worth more than a comparable company with a lower ROIC. A company with a lower ROIC will have to invest a larger percentage of its earnings in order to maintain a similar growth rate.
Investors generally look for companies with higher ROICs than their peers. They also look for companies whose ROIC is higher than its cost of capital.
ROICs can vary by industry, however, so comparing companies across industries will not necessarily yield useful information. For example, a pharmaceutical firm will generally have a higher ROIC than an electric utility.
Improving ROIC
Improving profits generally boosts ROIC. This can involve increasing sales, reducing costs or a combination of both. Firms can increase sales by various means, including selecting products, projects or investments that will be in higher demand from customers. They can reduce costs by, among other techniques, negotiating lower-cost contracts from suppliers, achieving operational efficiencies or using less expensive components.
ROIC can also be increased by reducing the use of capital. This can be accomplished by selling under-performing assets, speeding inventory turnover or modifying the firm’s capital structure to employ a more optimal mix of debt and equity.
Bottom Line
Return on invested capital (ROIC) can be used to identify investment opportunities in companies that are highly efficient at turning capital received from shareholders and bondholders into profits. It’s calculated by dividing net operating profit after tax (NOPAT) by the amount of invested capital. ROIC varies widely by company and across industries.
Tips on Investing
There are many financial metrics that you can use to help with financial decisions. A financial advisor can show which ones are relevant to any particular decision and how to apply them. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Companies use metrics like ROIC to measure their performance. The performance of your investment portfolio can be projected with SmartAsset’s Investment Return and Growth Calculator. By entering the amount in dollars you are starting with, the amount and time schedule for any additional contributions and the anticipated rate of return, you can see how your investment will grow over time much your portfolio will be worth at a given point in the future.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
Save more, spend smarter, and make your money go further
Let’s do a little investment simulation. Don’t worry—I’ll do the math.
Jane has a $5000 consumer loan and a $20,000 stock portfolio. Her net worth is $15,000. (Ah, the simple life of a person in a word problem.)
If the stock market goes up 10%, Jane makes $2,000 and her net worth goes up to $17,000 ($22,000 in the portfolio, minus the $5000 loan).
If the market goes down 10%, Jane loses $2000. Are you with me so far?
Jane decides to pay off the loan. Her net worth is still $15,000, but now it’s $15,000 in stocks and no debt. Then the stock market goes down 10%, and Jane only loses $1500. By paying off the loan (a financial nerd would call it “deleveraging”), Jane’s portfolio got less risky: The same change in the market caused a smaller change in her portfolio, even though her net worth stayed the same.
It doesn’t matter that Jane borrowed the money for a dining room set. As long as she owes the money, she’s taking on more investment risk than if she didn’t owe it. Her net worth fluctuates more with each day’s stock returns because of the debt. That’s not necessarily good or bad (maybe Jane wants to take on more risk in the hope of getting a bigger return) but it’s a mathematical fact.
This is all grade school math, right? But if we replace “consumer loan” with “mortgage,” somehow it makes otherwise intelligent people, investors and financial planners alike, forget basic arithmetic.
“Investing on mortgage”
I’ll include myself among the mathematical amnesiacs, because I only came to understand this principle because of a recent blog post by Michael Kitces, director of research for Pinnacle Advisory Group, who writes the Nerd’s Eye View blog.
The post is written with financial planners in mind, not consumers, so I’m going to summarize it as follows: If you have both a mortgage and an investment portfolio, you’re probably making a big mistake. A big, fat, Greek default-style mistake.
Let’s go back to Jane. Now she has a $100,000 mortgage, a $100,000 house, and a $200,000 stock portfolio. Her net worth is $200,000 (the portfolio plus the house, minus the mortgage). When the stock market goes up 10%, Jane makes $20,000. When it goes down 10%, she loses $20,000.
Say Jane takes $100,000 from her portfolio and pays off the house. Her net worth is still $200,000, but her portfolio has dropped to $100,000. Now when the stock market goes down 10%, Jane only loses $10,000. Her portfolio got less risky, but her net worth stayed the same. (Yes, we’re assuming remarkable stability in the real estate market.)
Jane would tell you that she wasn’t borrowing money to invest in stocks, she was borrowing money to buy a house. Well, her portfolio and her bank don’t give a hoot. As long as she owes money, her investment performance has a bigger effect on her bottom line than if she didn’t owe.
After paying off her mortgage, Jane comes to you for financial advice. She’s thinking of taking out a new fixed-rate home equity loan to plump her portfolio back up to $200,000. What is she, insane? If she’d decided not pay off her mortgage in the first place, she’d be in exactly the same position, with the blessing of most financial planners and, until recently, me.
Whether Jane knows it or not, she is borrowing against her house to invest in the stock market, and she should understand the risks.
So what?
That sounded like a lot of academic drivel, I know. But if you’re a homeowner with a mortgage, it has real implications for your financial health. Assuming you’re in a position to save money beyond your mortgage payment, you are making a scaled down version of Jane’s decision every month: Pay down the mortgage, invest for retirement, or both?
“Each and every year I get to make a conscious decision about whether I want to implicitly buy stocks on mortgage by keeping the mortgage and buying stocks,” says Kitces. Or bonds, for that matter. Look at what you’re really doing:
Using borrowed money to buy bonds is stupid. Sure, mortgage rates are low. Bond rates are lower. Would you take out a 4% mortgage to buy bonds paying 2%? Me neither.
Using borrowed money to buy stocks is dangerous. Stocks are risky. Stocks bought with borrowed money are more risky. If you walk into a reputable financial planner’s office and tell them your financial plan is to borrow a bunch of money to invest in stocks, they will sit you down and give you a parental lecture about imprudent risk-taking. But if you’re using mortgage money to juice up your portfolio, somehow that’s okay?
Implicit in the idea that it’s okay to buy stocks “on mortgage,” as Kitces puts it, is the belief that stocks will definitely outperform in the long run. Jorie Johnson, a certified financial planner in Manasquan, New Jersey, doesn’t take a client’s mortgage into account when setting up their investment portfolio for this reason. “As long as you have a reasonable expectation of doing better in the market than your mortgage interest rate, you should be putting the money in the market,” she says.
However, this a point both technical and practical. If your goal is to shoot for the moon in your retirement portfolio by ratcheting up the risk with borrowed money, there’s a cheaper way to do the same thing by maintaining a smaller, but riskier, portfolio: Pay down the mortgage, but own more stocks and fewer bonds. You’ll lower your risk of ending up with negative home equity, save on mortgage interest, and achieve the same level of portfolio risk, with the same expected returns.
“Taking on more portfolio risk is the equivalent of having less portfolio risk but more leverage,” says Don St. Clair, a certified financial planner in Roseville, California. “If you’re not willing to take some of your portfolio and pay off your debt and jack the risk of your portfolio back up, then you shouldn’t be willing to keep the same portfolio and not pay off your debt.”
The good old days
So, if you shouldn’t use borrowed money to buy stocks or bonds, what should you use it for?
Kitces just bought a house, and here’s his answer. “I’m really going to spend the bulk of the next ten years knocking this mortgage down to zero,” he says. “We are radically ratcheting down savings into investment accounts and really ratcheting up payments toward the mortgage.”
This feels intuitively wrong, doesn’t it? Everybody knows you should make retirement saving a habit and do it faithfully, month after month. Accelerating mortgage payments so you end up with a paid-off house and very little in other assets beyond an emergency fund and your 401(k) match can’t be a good idea, can it?
Just a couple of decades ago, it wasn’t just a good idea; it was conventional wisdom. “It was really straightforward: You built a giant down payment, you took on as little debt as possible, and whatever you did take on in debt, you knocked it out as quickly as possible,” says Kitces. “And when you actually got it done, you literally held a party and burned the mortgage note in your fireplace.”
Can anyone really say that isn’t still good advice? Oh, don’t explain it to me. Explain it to the Las Vegas homeowner who is $100,000 underwater. Nobody needs to be told how toxic negative equity is in 2011, right? If anything, positive home equity offers more flexibility than a 401(k) balance. “They have home equity line of credit options, the ability to move, the ability to relocate, and the financial freedom to make decisions,” says Kitces.
My money is trapped!
Now, wait a minute. Presumably, your investment portfolio is inside a 401(k) or IRA or some other box with “do not open until retirement” stamped on it. It would be crazy to pay the 10% penalty and a huge wad of taxes just to knock off a chunk of your mortgage.
I agree. So while you have a mortgage, what do you do with this money? You invest it in a way that reflects the fact that you’re playing with borrowed money. In other words, Johnny Mortgage’s portfolio should be invested heavily in bonds and cash. Remember that they’re not really bonds and cash. They’re stocks wearing disguises, because a portfolio of low-risk assets bought on leverage is still high-risk.
Even though it doesn’t often feel like it, a mortgage has an end. Later, when the mortgage is nothing but fireplace ashes, you can direct 100% of your former mortgage payment into your retirement savings.
But mortgages are special
Mortgages are weird. Nowhere else in the world of finance can you get a 30-year fixed-rate loan with tax-deductible interest and the option to refinance if rates drop. Of all the kinds of debt, I’d probably agree that this is the best one to use to invest on leverage.
That still doesn’t make mortgage debt cute and cuddly. As the 23% of homeowners who are underwater know, mortgage debt can still bite you right where it hurts. Nearly all of those homeowners would have been better off paying down the mortgage rather than investing, or just keeping their investments in cash. (Yes, I know plenty of them did neither, which compounds the injury.)
Oh, there is one last wrinkle. In most states, you can walk away from a mortgage. The bank will take your house but can’t come after your other assets. As a forward-looking strategy, however, strategic default sucks. (Sorry for the parent lecture.) “Is your strategy for wealth creation really that you should buy real estate with as much debt as you can, because if it goes badly you can stick it to the bank?” says Kitces. “I don’t think that’s really how we’re telling people to build wealth.”
What do you think? Is there any defensible reason to buy stocks or bonds “on mortgage”? Or has everyone already forgotten 2008?
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Affirmations have been all the rage over the past few years, and people are using them to achieve their goals.
“I am in control of my finances”
“Money comes easily into my life”
or even “I love money!”
What about you? Do affirmations work for your goal? I’m not one to shy away from a challenge, so let’s find out!
Are you struggling to make more money, even though you work a lot? Do you feel like your finances aren’t where they should be and that there is something missing in your life?
If so, here are some money affirmations that can help.
Affirmations are statements that you say to yourself over and over again.
They can help you manifest your goals by re-affirming them in your mind on a daily basis. They become part of who you believe yourself to be and bring about desired outcomes with ease.
You may have heard these before, but do you consistently say them to yourself? Journal them? Write them everywhere?
I’ve compiled some of my favorite money affirmations for money below. I hope these help give you the encouragement and inspiration to re-affirm what’s important in your life!
What are money affirmations?
Affirmations are a powerful way to change your thoughts and, in turn, your life.
They are simple, positive statements that you repeat to yourself regularly. The purpose of affirmations is to attract whatever you desire into your life- including money!
Why are money affirmations important?
It’s important to remember that affirmations work subconsciously.
You may not see results overnight, but with time and repetition, the desired outcome will manifest. Wealth affirmations specifically focus on money and what a person will do with it after they have made it through the manifestation process.
Affirmations on Money
Although using affirmations is a great way to achieve financial success, they should not be used as the only tool in your arsenal. Manifesting your goals takes time and effort, and affirmation is just one piece of the puzzle. Make sure to take actionable steps towards your goal and be patient!
Affirmations can also be used to create SMART financial goals– specific, measurable, attainable, relevant, and time-bound goals that you can track over time for motivation purposes
How can money affirmations help you attract more money into your life?
Affirmations are one way to help you focus on your thoughts and dreams.
When you repeat an affirmation, you plant a seed in your subconscious mind that will grow over time.
This helps to manifest what you want into reality.
These seeds will grow over time and bring about new thoughts, beliefs, and habits into a mindset of abundance. Money affirmations have a “magnetic” effect that attracts like-minded thoughts to your life–helping you achieve your financial goals faster!
There are many ways to bring more money into your life, but using affirmations is one of the most effective methods. Affirmations can help create strong positive emotions that attract money and other forms of abundance into your life. When used consistently, money affirmations can be a powerful tool for attracting wealth and prosperity into your world!
Below we will give you exactly what can I say to attract money.
What is a way specific money affirmations can be used to attract more money?
When it comes to attracting more money into your life, there are many different affirmations that can be useful.
Many people ask, “What are the best affirmations for money?”
Below are a few examples to get you started:
“I am abundant and prosperous.”
“Money flows easily and effortlessly to me.”
“I am safe and secure with my finances.”
“My income is constantly increasing.”
“I have all the money I need and more.”
Do affirmations work for money? Absolutely, yes.
How often should you repeat money affirmations in order to see results?
The more often you repeat your affirmations, the better.
However, don’t feel like you have to do it all day long. Just a few minutes each morning and evening should be enough to start seeing some results.
Remember that affirmations are just like any other habit- the more you do them, the easier they become and the better the results will be. So stick with it!
Do money affirmations really work or are they just a waste of time?
There is a lot of debate on the internet about whether or not money affirmations actually work. Some people swear by them and claim that they have had great success using them, while others say that they are nothing more than a waste of time.
One thing that is for sure is that money affirmations do have some very powerful success stories behind them.
People like Oprah Winfrey and Lady Gaga were successful before they ever became public figures, and a lot of their success can be attributed to their belief in themselves and their determination to work hard at everything they do.
In fact, many of the billionaire morning routines include starting their days with positive affirmations.
Can affirmations make you rich and come to abundance?
When it comes to getting rich, many people believe that affirmations are the answer.
The idea behind using affirmations is that if you repeat something often enough, you will start to believe it and eventually it will come true. However, this isn’t magic – rather, it’s a matter of shifting your beliefs.
And while affirmations won’t make you rich overnight, they can cause desired results to appear over time.
Mindset and Affirmations
The key thing to remember with affirmations is to maintain a positive mindset.
You want to be focused on attracting wealth and abundance into your life, not just thinking about what you don’t want. Money affirmations can help raise your vibration and shift your beliefs so that you can start attracting more money into your life.
Remember…Mindset is everything.
How do affirmations work?
Affirmations work because we keep repeating them to ourselves. It’s like a self-fulfilling prophecy!
Our subconscious mind picks up on the positive affirmation and starts to change our behavior over time.
The more effort we put into it, the better chance that our subconscious will start accepting these new thoughts as truth.
Affirmations are conscious and subconscious–both play a role in helping us manifest what we desire. Positive affirmations help us get rid of negative thoughts and replace them with more confident ones. We need to be mindful of our words and truly believe in order for the affirmation to work its magic!
The subconscious begins to accept positive reinforcement over time as long as we continue putting in the work. Eventually, this helps us change our mindset and see things in a different light. “I can” replaces “I can’t.”
This is because affirmations work best when they’re phrased positively!
What do experts say about using money affirmations to attract more money?
When it comes to attracting more money into your life, there are many things you can do to help increase your chances of success. Some people may swear by the power of affirmations, while others find that other methods work better for them.
However, most experts agree that using some type of affirmation is a good way to start visualizing your goals and keeping them at the forefront of your mind.
Affirmations can also help open up your mind to opportunities in a confident way, attracting more opportunities for you. While they won’t create wealth on their own, if used correctly they have the potential to help people create more money.
Keep in mind that affirmation is not a magic solution – it takes hard work and dedication no matter what method you choose – but if you’re looking for an edge, using daily affirmations could be the right choice for you.
What is the science behind money affirmations and how do they work?
When it comes to the science behind money affirmations, there is a lot of research that supports their efficacy.
A study published in The Journal of Positive Psychology found that people who regularly use positive self-statements (such as daily affirmations) have increased well-being and decreased levels of anxiety and depression.
The reason why affirmations work is because they help to change your beliefs and the vibrations you emit into the universe.
When you think positively about yourself, you are sending out positive vibes into the world which can attract more good things into your life.
Your words are powerful magic wands when it comes to shaping your own reality. What you focus on expands! So by repeating money affirmations, you are essentially telling the universe that you want more money in your life and that you are ready for it to come to you.
Affirmations are an easy way to change the way that you think, and they can be used as a tool to remove any barriers that are holding you back financially in life. If you’re feeling stuck under a scarcity mindset, start using some money affirmations today and see how they can help you achieve your goals!
Here are 125+ money affirmations you can start using today!
Money Manifestation Affirmations
When you repeat money affirmations, you are programming your mind to believe that it is easy and natural for you to be prosperous and successful.
You are sending a message to the universe saying, “I am open to receiving wealth and abundance.” As you continue to recite these affirmations, you will start to see changes in your life as you attract more money into your experience.
Manifesting a healthy relationship with money is important.
1. “I have more than enough money, and that’s okay.”
2. “It is easy and natural for me to be successful and prosperous.”
3. “My income is constantly increasing.”
4. “I easily attract new sources of income into my life.”
5. “I gratefully accept all the wealth and abundance the universe has to offer me”.
6. “When I put in the work, the universe will provide.”
7. “I anticipate money to work for me.”
8. “Money + abundance happen to me.”
9. “With the power of attraction, I will bring wealth and money into my life.”
10. “I love having plenty of money.”
11. “The more I give away, the more I receive.”
12. “Wealth can come to anyone including me.”
13. “I am enough and my intention attracts money to me.”
14. “My prosperity is unlimited.”
15. “My path leads to riches.”
Money Affirmations that Work Fast
Money affirmations are a great way to attract more money into your life.
They are positive statements that help you focus on your goals and visualize yourself achieving them. Repeating these affirmations will help you program your mind for success and abundance.
16. “Money is a positive force in my life.”
17. “I will make $100 today.”
18. “I will make $1000 tomorrow.”
19. “By design, I will reach my potential.”
20. “I am a magnet for wealth and abundance.”
21. “I believe in myself.”
22. “Money flows easily and abundantly to me.”
23. “Money is my friend, not my enemy.”
24. “By releasing my money blocks, I open myself to letting money flow in.”
25. “I welcome various ways to make money.”
26. “Money allows us to live the life we want and achieve our goals easily.”
27. “I am in control of my future.”
28. “I attract money easily in my life.”
Powerful Money Affirmations
Money affirmations are a powerful way to attract more money into your life.
Repeating these affirmations will help you to change your mindset and start to see yourself as someone who has abundance, rather than someone who is always short on money.
These power money affirmations reassure you that no obstacle is too big and that you have the power to overcome any hurdle.
29. “I am blessed with an ever-flowing stream of prosperity.”
30. “I release all fear and doubt around money.”
31. “More money is coming to me.”
32. “I am confident in my ability to handle any money-related challenges that come my way.”
33. “As a powerful creator, attracting money into my life with the power of my thoughts and feelings.”
34. “I will invest $100 make $1000 a day.”
35. “I know that I can overcome any obstacle and attract more money into my life.”
36. “My guiding belief is my motivation and my reality.”
37. “I am a money magnet; money comes to me easily and effortlessly.”
38. “I am capable of overcoming any money-obstacles that stand in my way.”
39. “Money is a close ally in life.”
40. “Being independently wealthy is a part of my life.”
41. “I am grateful for what I been blessed with.”
42. “I am rewriting my money story.”
43. “Money helps me experience time freedom.”
Positive Money Affirmation
These affirmations underscore the importance of taking a holistic approach to financial health. Self-care is essential, as is developing a strong sense of self-worth.
When you feel good about yourself on all levels, you’re more likely to make healthy financial decisions.
44. “I am worthy.”
45. “I release my limiting beliefs surrounding money.”
46. “Building self-worth will lead to better financial choices.”
47. “I visualize my future self and believe it has already happened.”
48. “Money is just a form of energy that flows to me effortlessly and abundantly.”
49. “I am able to easily afford whatever I want.”
50. “Money is an avenue to have a positive impact.”
51. “I am so lucky that I am able to earn more money than I could possibly fathom.”
52. “Money is attracted to me by virtue of the powerful vibrations I radiate.”
53. “I am not ashamed or feel guilty about having an abundance of wealth.”
54. “Money comes to me in huge quantities through my ability to attract it from the universe.”
55. “It is safe for us to be wealthy and successful.”
56. “I am thankful for the positive impact money has had on my life.”
57. “I love my positive outlook on my life and the riches that come from it.”
Financial Affirmations
While you may be feeling down about your current money situation, know that there are ways to change it. Use a variety of positive financial affirmations for different money goals, such as attracting more money into your life or becoming debt-free. You can also personalize the affirmations to fit your own needs and situation.
These financial abundance affirmations help guide you to where you want to be financially. Learning how to become financially independent starts with believing that you can.
You may not be where you want to be yet, but with time and effort, your wealth situation will improve.
58. “I will have money left over at the end of the month.”
59. “My payday is approaching.”
60. “Money does not control me. I control my money.”
61. “Money comes to me in unexpected and wonderful ways.”
62. “My finances are always in perfect order.”
63. “My income will exceed 6 figures.”
64. “I have complete control over my financial destiny.”
65. “All my needs and wants are always taken care of.”
66. “I love having lots of money to spend.”
67. “Don’t let feeling behind today stop you from building the life you want tomorrow.” — The Financial Diet
68. “I am financially free.”
69. “I am worthy of financial success.”
70. “With hard work, I will attain the financial future I desire.”
71. “I am excited to maintain my budget and reach my money goals.”
72. “Step by step, I will achieve my financial goals.”
73. “Money is a tool available to anyone and I will use it to my advantage.”
Saving Money Affirmations
While your current money situation may be less than ideal, you can use these affirmations to change your mindset and start attracting more money into your life.
Repeating these affirmations will help you focus on the positive aspects of wealth and abundance, and eventually bring more financial security into your life.
74. “Money in the bank makes me feel secure.”
75. “My money situation may not be what I want right now, but I am in better shape than I was last month.”
76. “I will save 10000 in a year.”
77. “I might make a pretty low-income at the moment, but I am still saving money.”
78. “My worth is not determined by my net worth.”
79. “I am saving for my future self.”
80. “Making small sacrifices now will build my increase my savings later.”
81. “Through investing I am able to make passive income.”
82. “A penny saved is a penny earned.”
83. “Financial stability brings me peace.”
84. “I say no today in order to say yes tomorrow.”
85. “I will stay debt-free because money is constantly flowing into my life.”
86. “My saving rate is beyond my dreams.”
87. “The challenge of saving more money lures me in.”
Money Flows to Me Easily and Effortlessly
One of the simplest and most effective ways to attract more money into our lives is through the use of affirmations.
Repeating positive statements about money can help change our underlying beliefs and open up new opportunities for financial growth.
Money comes in both expected and unexpected ways, so it’s important to stay open-minded about how it could enter your life.
88. “I let go of any resistance to attracting money.”
89. “Financing my life is an easy task for me.”
90. “I will double 10k quickly.”
91. “My money situation right now may be tight but it’s changing for the better”
92. “I am surrounded by an aura of wealth and abundance.”
93. “Money comes in many different forms, and it can come to us in both expected and unexpected ways.”
94. “Money is an energy that flows to us in many ways.”
95. “I attract money easily and effortlessly.”
96. “I am open to the flow of money my way.”
97. “Money magnet is my name.”
98. “Money attraction is easy for me.”
99. “I can rely on left hand itching to bring me money.”
100. “I turn money into more money.”
Money Affirmations for Success
These help you cultivate positive beliefs about your ability to earn and manage money. These positive thoughts will help support your efforts as you work towards financial success.
101. “It’s easy and natural for me to be prosperous and successful.”
102. “I am surrounded by people who support my financial growth.”
103. “Money is a tool that lets me construct my life how I see fit.”
104. “I have unlimited opportunities to make more money.”
105. “I am not afraid of achieving success.”
106. “Becoming rich doing what I love is a gift.”
107. “I have super-abilities to be successful.”
108. “Success is the best revenge.”
109. “I don’t need to be a millionaire to be successful.”
110. “I have control of my financial future.”
111. “The sky is the limit to what I can achieve.”
112. “A positive money mindset will serve me well.”
Wealth Affirmations
There are many different money affirmations that can be used to attract more money into your life.
Wealth and abundance come in all shapes and sizes, so it’s important to find an affirmation that resonates with you. “I am worthy” is a good place to start if you want to build self-worth and confidence, which can lead to better financial choices down the road.
You may not be where you want to be yet, but with time and effort, your wealth situation will improve.
These are positive affirmations for success and wealth.
113. “I am open and receptive to wealth and abundance.”
114. “Wealth and prosperity are my birthrights.”
115. “I am open to receiving all wealth life brings me, not just what is coming today or this month.”
116. “Abundance can come in many different forms!”
117. “Wealth is a step towards how to FI.”
118. “I have more than enough money, and that’s okay.”
119. “Financial freedom will happen sooner than I believe.”
120. “The more wealth I have, the more I give back to others.”
121. “There is plenty of wealth to be made.”
122. “Money can be shared when saying ‘I appreciate you.’”
123. “Wealth flows to me easily.”
124. “Having more than enough money does not mean I love money.”
125. “My wealth is limitless.”
How Do You Write Affirmations For Money?
Regardless of how money comes to us, it is important to remember that we always have the ability to attract more of it into our lives. By repeating positive affirmations about money, we can increase our chances of attracting more abundance into our lives.
Following these guidelines will help you write effective affirmations that move negativity out of your life and bring more money into it!
When you’re writing affirmations for money, it’s important to remember a few key things.
Step #1 – Need a Present Tense
First, always use the present tense; this will help your unconscious mind process the affirmation more easily.
Step #2 – Change to Positive Words
Second, make sure your words are positive–for example, “I only spend money on things I love” rather than “I don’t have to worry about money.” This will help you attract financial abundance and success into your life.
Step #3 – Believe it is Already Yours
Finally, before affirming any goal or intention, take a moment to really feel what it would be like to have that already in your life. Our unconscious minds respond better when we can imagine and experience what we want in advance.
There are a number of books that focus on mindset and how to change it for success. The list below contains some of the best ones that I’ve found.
These books teach you to believe in your ability to shape your own destiny and achieve great things.
Remember you need these essential mindset books to help you change your perspective and achieve success. Remember, it’s not about avoiding or getting rid of obstacles, but turning them into advantages.
Embrace the challenges in life and continue moving forward!
Mindset is everything.
This is a simple but profound statement that has been discovered by Carol S. Dweck, Ph.D. She found that success in school, work, sports and almost every other area of human endeavor can be dramatically influenced by how we think about our talents and abilities.
The key to success is having the right mindset – a growth mindset.
In order to achieve success, you need to change your mindset.
This book will teach you how to change your mindset and get the most out of life and some colorful quotes that you will quote.
You will learn how to change what you don’t love, use external forces to kick some serious change in you and find your inner power. You will learn how to embrace your inner vibes.
Each morning start your day with a positive affirmation from this Daily Rituals book. Follow the simple exercises.
By practicing these rituals regularly, you will train your mind and raise your vibration levels.
Color your way to manifest your money affirmations. Unplug yourself and get a well-needed mental break.
Attract the abundance of wealth into your daily life.
Make Money Affirmations Quotes
The best part of all of these powerful money affirmations … you can turn them into quotes!
You can use a simple post-it note and pen! Or upgrade and make them in Canva.
Not artistic? Etsy has you covered! Don’t worry Etsy has plenty of money affirmation quotes.
In fact, we are thinking about designing a package of money affirmations quotes for our readers!
Hang them on your wall as a constant reminder.
How can you tell if money affirmations are working for you?
One way to tell if money affirmations are working for you is to look at your bank account.
If you find that you have more money in your bank account than usual, it is a good sign that the affirmations are working.
Another way to tell if the affirmations are working is by looking at your overall mood and attitude towards money.
If you find yourself thinking about money less often and feeling happier and more positive, then the affirmations are definitely working for you!
Money affirmations take time to manifest, so don’t become discouraged if you don’t see immediate results.
Repeating abundance affirmations can help you to open up to the flow of wealth in your life.
By affirming that you are open to receiving all the wealth life has to offer, not just what is coming your way today or this month, but also the wealth of tomorrow, you start to invite more money into your life.
Check out these millionaire quotes to keep you aiming for the stars!
At the end of the day, you don’t need to feel guilty or ashamed about having an abundance of wealth–that’s perfectly okay!
Know someone else that needs this, too? Then, please share!!