If you want more financial discipline you are probably looking to curb impulsive spending, save money, or maybe just achieve financial stability.
Building self discipline your financial decisions is an important part of building wealth over the long run.
What’s Ahead:
Why is self discipline the key to becoming a good saver
Being a good saver requires self discipline since there is so much fun stuff to do and buy. You are exposed to more advertising than anyone in the history of the world, and the marketing companies know a lot about psychology and exactly how to get you to part with your money.
So it takes a lot of self discipline in order to fight those tactics and stay on course to meet your goals. You have to have a clear goal and know that meeting that goal is more important than anything you can buy.
It requires a lot of self discipline to overcome the temptation to delay gratification of spending money and to save it instead.
Steps to develop self discipline
Step 1: Set a goal – then break it down into regularly recurring actions
What exactly do you want to achieve? It could be to build a fully funded emergency fund, start investing, pay off your debt, or even achieve financial independence – or anything in between.
Write down exactly what your goal is and the date by which you want to achieve it. For example, you may want to pay off your credit card debt within one year.
Then break down exactly what actions you need to take on a regular basis. Make these actions as small and as regular as possible. A small daily action is better than a larger monthly action.
For example, if you owe $10,000 on your credit card you’ll need to pay $833.33 off each month. Is that doable? If your budget allows for that, great. If not, you’ll need to figure out what exactly you need to do make up the difference.
If your regular payment is $150 and you can pull an extra $200 per month from your monthly budget that means you’ll need to come up with an additional $484 per month. If you have time to walk dogs after work you may decide to pick up a dog walking client for a few walks per week. At $25 per walk you’d have to walk the dog 20 times per month to make up the $484 you need. If you picked up a client that needed the dog walked everyday after work, you’d have the full amount.
You now have a goal and an action plan to make that goal happen.
Here are a few examples of short, mid, and long-term goals, but feel free to fill in the blanks with your own personal financial goals.
Short-term goals
Saving money each month towards your emergency fund
Going out to dinner with friends twice a month
Small household projects (planting a small indoor garden, painting a room, etc.)
Mid-term goals
Saving for a weekend getaway
Paying cash for your next car
Paying off your credit card debt
Long-term goals
Down payment on a house
Paying off your student loans
Putting money away for retirement
Read more: How to prioritize and save for multiple goals at once
Step 2: Track your progress
You’ll want some way to visualize and track your progress. A lot of people find this extremely motivating.
Using the example of paying off your car above, you could make a thermostat and color in a section each time you make a payment, representing the amount of money you’ve paid off (or is left on the loan). Or cover a piece of paper with stars (or anything else) and color in a star every time you send in your payment, each star representing one payment or a set amount of money.
Hang your tracker on the fridge so you can see it every day to remind you of what you are working towards. Make it a little celebration each time you get to fill in more of your tracker.
You can also go digital with your goal tracking. Apps like Empower offer a few different services for investing and checking up on your financial health. But, in this instance, I’m referring to the free tools they offer to keep track of your net worth.
You can create an account with them without opening an investment account. The wealth management and planning tools are the ones that you will probably be most interested in to help determine where you are at currently.
You can connect all of your financial accounts within the tool. These will be things, such as:
Checking account
Savings account(s)
Investment account(s)
Student loan account(s)
Auto loan account
Mortgage account
Credit card(s)
Medical debt account(s)
Sometimes, it can be pretty scary to see what your actual net worth is vs. where you want to be.
But, I use this as a driving force to work harder every month to increase my overall net worth. Because the faster I can get my net worth up, the faster I can get to my long-term goals.
Step 3: Find your tribe
Find people in your life who are working towards similar goals. This will help build self discipline because you’ll have a community that is embodying the new behaviors you want to build.
If you meet regularly with others who are paying off debt, you’ll have more discipline to follow that same path. You’ll have someone to share your successes with and a friend who can help when you are struggling.
Contrast that to when your friends regularly encourage overspending. Just going out to have a meal or a drink with friends can end up costing $100 or more in some instances. Something that sounded so innocuous, has now completely derailed your goal.
This isn’t to say you need to replace your entire friend group – not at all. But it will be up to you set a budget for having fun and then stick to it.
For example, instead of having two-three drinks, only have one. Go out for lunch instead of dinner, or a matinee instead of a night movie.
All of these options still give you the freedom to hang out with your friends and enjoy your life, but it won’t cost you nearly as much. And when you stick to your budget, your future self will thank you for your discipline.
Read More: The Cost Of Friendship – How Your Friends Affect The Way
Tips to meet your financial goals
Determine your needs vs. your wants
Setting up your financial goals and a way to track them are the first steps. But staying on track can get tricky when life happens. This is where needs vs. wants come into play. There are things that all of us want to have. But these are the things that can throw us off track so fast it will make your head spin.
So keeping in mind if the item/service is a need or a want can help you have more financial disciplined. Just remember to think long and hard about any purchases before you pull the trigger. If it is a need, then go ahead and do it. But if the item is actually something you want instead, it’s usually best to hold off even for a bit to make sure you still really want it as much as you think you do.
Reduce, reuse, recycle
When it comes to purchasing wants, you have a few other options that can save you a ton of money. If there is an item that you are wanting to purchase, but it simply isn’t in the budget, what might be some other ways to achieve the same goal?
Reduce, reuse or recycle may just be the best option here. If you have things in your house that you can get rid of (and maybe even make some money off of their sale), then that is one way to get the potential want. Sell your old stuff and then use the proceeds to purchase the new want item.
Or, if you can reuse an item you have in your house already, paired with something else, in order to create a similar item, then why not do that? Sometimes, all a table or chair needs is a fresh coat of paint in order to feel like a completely new item. So get creative and think outside the box about things you already have at your disposal.
And if all else fails, recycle your old items. You may not make any money off of them, but you could potentially get a tax write-off. Plus, it declutters your space, which can make it feel like a completely new room. Sometimes, that is really all you need.
Make it automatic
No matter what you goal is you can probably automate at least some of it.
If you want to save more, schedule automatic transfers from your checking to your savings. If you want to pay off a certain amount of debt each month, set automatic payments to your accounts.
Having these transactions happen automatically will remove the friction that can be caused when you have to manually make that extra payment, or save that extra money. You can always go in and stop or change the automatic payment if you can’t swing it one month, but making it the default will cause it to happen more often than not.
Of course, don’t set yourself up for failure. Setting an automatic payment without a plan to make sure the money is available will cause more harm than good. Create a feasible plan and realistic goal, then set it up to run without any extra effort from you.
Read more: Put your money on autopilot
Put your emergency fund in a high yield savings account
If you are working on building your emergency fund – or already have a solid savings account – you’ll want to make sure you are getting the most interest possible. This will help grow your savings rate since you’ll be earning a little extra interest each month.
Interest rates on high-yield savings accounts are higher than they’ve been in years, and the difference between online accounts and those at your local bank are huge. So, while these high yield savings account rates may not be anywhere close to the average return you will get on investing your money, it’s still nice to make some interest on your savings.
The best high yield savings account, in my opinion, is the CIT Savings Builder.
Read more: How Much Should You Save Every Month?
CIT Bank Savings Builder
CIT Bank Savings Builder has a very competitive APY – compared to the pennies you get from a credit union account.
You only need $100 to open an account and they charge no maintenance fees. To earn the highest APY, you need to get your account up to $25,000, or you need to deposit at least $100 monthly. See details here.
The CIT Savings Builder has a completely online platform, so everything can be done directly from your smartphone, just to make life simpler. They are also FDIC insured up to $250,000 per account type.
CIT Bank. Member FDIC.
Summary
Overall, it is extremely easy for our money to flow through our fingers like water. This is why you have to be cognizant of what you have and where you want to be with your finances.
If you want to avoid debt, save more money, or invest for your future then it’s important to develop self discipline in your finances.
Not sure what to buy for your loved ones this year? Still singing the recession blues? Consider buying nothing at all.
I didn’t buy anything on Black Friday, I didn’t buy anything today, and I won’t tomorrow. This holiday season, I won’t be going near a mall. Under our tree, there will be no plastic toys, no new clothes, and no last-minute matched set of leopard-print mugs for my sister when I panic on Christmas Eve because I have no idea what she wants. There also wont be any dipping into my savings accounts to buy gifts.
Thousands of families will be doing exactly the same thing this year as part of The Compact. The Compact has a simple premise: Everyone who signs on agrees to “buy nothing new” for one year.
Gifts for Kids
For tips on surviving a frugal holiday, I turned to the Non-Consumer Advocate, Katy Wolk-Stanley. Katy is coming into her third year on The Compact. And as a mom of two boys, she knows a thing or two about kids and holiday shopping.
“Christmas is a huge challenge for people who are trying to save money, and for people who are trying to minimize their garbage output and the low-quality stuff that comes into their family,” Katy says.
Here are her guidelines for giving to children during the holiday season:
Shopping is okay. Katy made it clear that “not buying new” doesn’t mean “no shopping”. She swears by Goodwill and consignment shops. Buying used, she points out, not only saves money, but it’s always a “greener” choice than buying a newly-manufactured item. Online, you can surf eBay or your local Craigslist for second-hand treasures.
Swapping is even better. “You could do a gift swap where people get together, bring the toys that aren’t being used, and swap,” Katy says. “You’d have to make it an evening without kids, which has its own benefits!”
Presentation matters. Some kids will be looking for “new” gifts under the tree, and new to them means boxes and brands. Katy suggests looking in higher-end kids’ consignment shops, where you can often find gifts still in their boxes. For kids and adults, Katy offers lots of creative wrapping ideas, like presenting movie tickets with a box of movie-theater candy. For families, try giving toddlers play silks (long pieces of colorful silk) as a gift, and then use the silks to wrap gifts each year for the kids as they grow older.
Santa buys second-hand, too. My kids still believe in Santa Claus. They’re expecting a pile of Stuff under that tree come Christmas morning. I ordered them a classic dollhouse from “Santa’s workshop” (read: eBay). They’ll get to spend the morning unwrapping each little piece of furniture, instead of a dozen different gifts.
Be creative. Last year, Katy gave each of her boys a kitten. Rather than put live kittens under the tree, she put some stuffed animals they already had under there with paper tags around their necks that said, “Please exchange me for a real kitten.”
Don’t be afraid. Chemicals like lead, BPA, and phthalates are common in older toys (even ones that were new last Christmas). Sharp edges and loose parts can cause accidents. A simple way to avoid these problems? Buy simple toys. Unpainted wood gifts, for example, are free of toxins regardless of their vintage. Another simple option: Don’t worry about it. You probably haven’t carefully researched every new toy that comes in the door. Today’s used toys are no more dangerous than last year’s new ones.
Talk to your relatives. “Just explain that you’re trying to decrease the number of gifts given to your children and talk about why you’re doing it,” Katy says. “Possibly offer some other ideas where a person can be creative and still do something special for a child that they love.” Easy for her to say. I’m a pansy when it comes to tough talks, so last year I sent mom a letter asking her to “tell Santa” what kinds of gifts would be most appreciated.
From the archives: Here’s a classic look at the four things children really want for Christmas.
Gifts for Grown-Ups
Toys, books, clothes and treats will take care of most children’s wish lists. But most of us have adults we’re expected to exchange gifts with too. From the office party to family festivities, we find ourselves shopping for friends and relatives.
Here are a few great ideas to replace the leopard-print mugs and bottles of wine you might have been handing out in past years:
Art. Art may technically be Stuff, but it’s a far cry from imported plastic junk. My most treasured gifts in the past year have been original art pieces by photographer Molly Tomlinson. These gifts can be surprisingly affordable. Many good-but-not-famous artists sell their work for $20 to $50 — no more than you’d spend on a Big Plastic Thing at the mall. To find good original art, go to holiday craft fairs, visit local studios, or search the listings on Etsy.
Time. Many people love gifts of time. You can offer to babysit, to come to their house and help with an organizing project, or to paint their dining room. Last year, my husband gave me a pretty card with a year’s worth of babysitting commitments from friends and family. I burst into tears on the spot, but I’ve been all smiles every month since when we drop our kids off and go out for an evening alone together.
Experiences. Movie tickets. A gift certificate to a favorite restaurant. Museum memberships. While a non-material gift may seem better suited to adults, even little kids can enjoy them. Last year, my mother presented my kids with a yearlong membership to the New England Aquarium. She took them there the day after Christmas, and they were also able to enjoy it several more times throughout the year.
Charity. Charities depend on holiday season donations to make their year-end numbers work. You can help them out and cross some items off your gift list in one blow by donating in a loved one’s name. Charities like Heifer International, Kiva and the Red Cross all make it fun and easy with “virtual gifts”. For example, Heifer lets you give a family in the developing world a cow on your mom’s behalf. Have a cow, Mom!
Fancy food. Who doesn’t love food? From baked goodies to homemade salsa, it’s hard to go wrong with tasty treats under the tree. Just be sure you know the giftee’s dietary restrictions. Anaphylactic shock is no one’s idea of a happy holiday.
Handcrafts. It’s a time-honored tradition to give your own handcrafts to loved ones during the holiday season. You probably don’t have time to knit sweaters for everyone on your gift list, but many lovely crafts are easy and quick. You can get your kids involved in making ornaments, ceramic handprints or other treasures for grandparents. Craft supplies themselves can get expensive, but if you have a skill like knitting you can make beautiful unique gifts.
From the archives: One of the most popular posts in GRS history features more than 30 homemade Christmas gifts you make yourself.
Nothing at all Do you have to exchange gifts with every adult in your family? With your coworkers? Your friends? Think carefully about who to put on your gift list, and who would be better served by a thoughtful card or a warm phone call.
Many people have probably done their shopping already, so it’s too late to change course. But there’s always next year. (Or, if you’re a last-minute shopper like J.D., there’s still this year.) And consider joining The Compact in January. You’ll have lots of company, and a whole year to work up to a non-consumer holiday in 2011.
What happens when a great opportunity comes along, but you don’t quite have the resources to take advantage of it? That’s what Greg wants to know. He and his wife have found their Dream House. They think they can buy the place — but only if they’re willing to take on some short-term debt in addition to the mortgage. Greg wants to know if this is a smart move. Here’s his story:
My wife and I are in our late twenties, no kids (yet), both safely employed and living very comfortably with a combined monthly income of around $5,000 after taxes. We currently have about $28,000 in student loans, and plan to pay them all off within the year. The original amount was $37,000 six months ago, so we’ve been making quick progress with them. One loan is in deferment while my wife is in school, another requires $80 a month for the payments, and the one we are aggressively paying off has no monthly payment due until 2014 because of our extra payments. Basically, we only need $80 a month to satisfy our loans for the next two years. We have no car payments, credit card debt, or anything other than the student loans.
Everything was going as planned until two weeks ago we found a house we absolutely loved. We’ve checked it out, and aside from minor cosmetic things, its move-in ready. It’s a foreclosure with an asking price around $136,000 (houses are cheap in the Houston area!). We’d plan to stay in the area a minimum of ten years, if not longer.
Given our situation, is it wise to scramble to get the minimum amount necessary to buy this house? We hadn’t planned to begin saving up for a house for another six months. Last week, my dad offered us a monetary gift to cover the down payment. We have the ability to pay for inspections, closing costs, insurance and everything else (about $7,000 total, assuming the seller won’t cover some of these costs), but it might mean wiping out our small savings and taking on some short-term debt. We’d also have to pay about $1,600 to break our apartment lease, but at least that can be spread out over three months.
Moving so quickly without any heavy financial preparation was not how we envisioned buying a house, but we don’t want to risk losing what amounts to our Dream House. Since it only recently came on the market, we don’t know if it will be something we can wait on or not.
Being the committed debt-haters that we are, the minor (non-mortgage) debts we’d have to incur to buy the house hopefully wouldn’t last very long anyway. Worst case scenario puts our monthly house/tax/insurance payments well within the range of affordability for us too. Our current loans would go on hold for maybe six months while the minor debt is paid off, then proceed at a slower pace due to the $1200 a month we’d be paying for housing instead of the the $600 we currently pay.
If you were in my position, what would you do? Jump on the chance for a Dream House? Or take a more financially conservative approach and risk losing out on it? Any and all opinions would be much appreciated!
This is a tough call. Folks like Dave Ramsey would say, “Don’t do it.” Ramsey would argue that Greg and his wife should first repay all of their student loan debt and then save enough for a substantial down payment. (Or even enough to pay for the house in cash.)
I’m not nearly that prescriptive. Absolutely, the prudent financial choice is to wait. Dream Homes are problematic — dreams change, and Dream Homes are often more common than buyers believe. Plus, when you have to scrape money together to buy a house, you leave yourself vulnerable to unexpected disasters. By exercising deferred gratification, Greg and his wife could reduce their debt and/or build enough savings to make a substantial down payment.
That said, personal finance is as much about emotions as it is about money. And heaven knows, Kris and I have made a pair of impulse home-buying decisions:
In 1994, we bought our first home. We didn’t really have a reason for buying a house; it just seemed like the adult thing to do. A mortgage broker crunched the numbers, told us what we could afford, and we started shopping. We didn’t shop for long. Within a week, we’d found a house we liked. Two days later, we’d made an offer and had it accepted. Looking back, we rushed things, but it turned out okay because we bought less home than we could afford.
In 2004, Kris and I bought our Dream House. We hadn’t intended to move, but when one of Kris’ co-workers brought in a sale flyer for an old farmhouse, we acted quickly. Within 48 hours, we’d made an offer (and had it accepted). In retrospect, this was a poor financial decision. On paper, we could afford the place, but in reality, my debt-load made things tough. If I could give my younger self advice, I’d say, “Don’t do it!” Things have worked out for us, but they could easily have turned sour.
If Greg and his wife are willing to unwilling to pass up this opportunity, they should at least take steps to mitigate the possibility that things will go wrong.
Take out a small mortgage with a low interest rate. Banks will grant mortgages with housing-expense ratios of 33%. That is, they’ll let borrowers spend up to 33% of their gross (pre-tax) income on housing, including taxes and insurance. But what’s good for the bank isn’t necessarily good for you. Greg and his wife can make things easier by trying to keep their monthly expenses below 25% of their gross income.
Make debt reduction a priority. If they buy this house, Greg and his wife have to be willing to make some short-term sacrifices: cheap vacations, a reduced restaurant budget, and so on. They have to give up a lot of the little everyday pleasures in order to attack their non-mortgage debt. All purchases require trade-offs, and big purchases require big trade-offs.
Build a big emergency fund — ASAP. Speaking from experience, owning a home is expensive. One rule of thumb is that it costs 1% of the home’s value every year for maintenance and repair. This seems accurate to me. Greg and his wife should work hard to create a home repair fund, one that’s separate from their everyday emergency fund.
What do you think? Should Greg and his wife jump at the chance to buy their Dream Home? Even if doing so means carrying more debt than they’d planned for a few years? Or should they wait until they know they’re financially prepared? Share your personal experience so Greg and his wife can make an informed decision!
Note: Upon reading this post, Kris made an interesting observation. “You’re missing an important point,” she said. “Are they looking at a one-of-a-kind home? That makes a difference. Maybe their Dream House is a converted fire station or an old farmhouse in a sea of cookie-cutter homes. If that’s the case, they should take it. But if it’s similar to a lot of other homes, they should wait.”
Update: This has been a great discussion. Thanks for contributing. Here’s a response from Greg, answering many common questions. (And here’s another.)
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Investing in stocks can seem like a daunting task.
There are so many things to consider when it comes to investing, and the stock market is constantly moving.
Stock market investing is a popular option to increase net worth and make money.
Many people are looking for ways to invest their money, with the number of individual investors increasing rapidly in recent years.
This guide covers many important factors for how to invest in stocks for beginners.
Starting out as a newbie trader can be scary and overwhelming… don’t worry, all seasoned traders had to start at the beginning too!
Let’s take away that quell those thoughts and focus on why you want to learn to invest in stocks.
This guide will give you everything you need to know about how to invest in stocks as a beginner investor!
What Are Stocks?
In the most basic form, stocks are a form of investment. When you own a stock, you have a piece of ownership in the company’s equity.
The stock market is a real-time financial market in which investors buy and sell stocks and other securites. The stock market is made up of many companies and individuals who are actively investing in stocks.
Stocks are an excellent way for companies and individuals to invest in a company and receive a share of the company’s profits.
Many of the growth stocks (FAANG stocks) are those who investors want their stock price to increase over time. Thus, increasing their overall portfolio’s net worth.
FAANG Stocks is an acronym for: Meta (formerly known as Facebook), Amazon, Apple, Netflix, and Alphabet (formerly known as Google).
Some companies like Chevron (CVX) pay out a dividend each quarter to their investors.
There are thousands of stocks available to trade.
What Can You Invest In The Stock Market?
There are many investment opportunities in the financial market, so it is important to be informed about what you can invest in. Below are some of the places where you can invest your money:
Stocks
Bonds
Mutual funds
ETFs
Commodities
Futures
Options
Now, we are going to look at the most common.
Individual stocks
Individual stocks are a type of investment that you can make yourself.
You can choose how many shares of a certain company you want to purchase.
For example, you like Tesla for how they are innovative in the electric car space. You can choose to invest 20 shares of their stock.
As a long-term investor, you want to hold a portfolio of 10-25 stocks. Find a list of beginning stocks to build your portfolio.
Individual stocks can be bought or sold as a way to dip your toe into the stock-trading waters.
As a short-term investor, you are looking to make money as the stock price increases or decreases.
Mutual Funds
Mutual funds are managed portfolios of stocks.
As a result, mutual funds typically have load fees equal to 1% to 3% of the value of the fund.
One of the most popular mutual funds is VTSAX because of its expense ratio is .04%
Mutual funds are a clear choice for most investors because of the simplicity to invest in the market. This can be a good investment for both novice and experienced investors, as they offer decent returns with lower risk.
They tend to rise more slowly than individual stocks and have less potential for high returns. Mutual funds are a great way to diversify your portfolio and gain exposure to a variety of different securities.
All mutual funds must disclose their fees and performance information so that you can make an informed decision about whether or not to invest.
Exchange traded funds (ETFs)
Exchange traded funds (ETFs) are a type of exchange-traded investment product that must register with the SEC and allows investors to pool money and invest in stocks, bonds, or assets that are traded on the US stock exchange.
They are inherently diversified, which reduces your risk.
This is a good option for beginner investors because they offer a large selection of stocks in one go.
ETFs have a lower minimum to start investing, which is a draw for many investors starting out with little funds. Plus there are many different types of ETFs to choose from.
ETFs are similar to mutual funds, but trade more similarly to individual stocks. With ETFs and Index Funds, you can purchase them yourself and may have lower fees.
Why Stock Prices Fluctuate
Stock prices fluctuate because the financial markets are a complex system. There are many factors that can affect the price of a stock,
There are a number of factors that can influence stock prices, including:
Economic indicators like GDP growth, inflation, and unemployment rates
Company earnings reports
The overall health of the economy
Political and social instability
Changes in interest rates
War or natural disasters
Supply and demand,
Actions of the company’s management
Short squeezings like what happened with GME or AMC
The volatility in the stock market is the #1 reason most people stay out of investments. However, on average, the stock market has moved up 8-10% a year.
What is the best thing to invest in as a beginner?
The best thing to invest in as a beginner is your time.
You need to learn how the stock market works. Just like you would get a certification or degree, you should highly consider an investing course.
Learn and devote as much time as you can to investing in stocks.
How To Invest In Stocks For Beginners?
Investing in the stock market can be a great way to make money! If you’re looking for ways to make money or grow net worth, investing in a stock is a smart choice.
With online access and trading being easier now than ever, it can be easier than ever to start buying stocks.
Let’s dig into how to invest in stocks like a pro.
FYI…You should do your own research before investing.
Step #1: Figure out your goals
Figure out your goals to help with setting an investing strategy.
What are you trying to achieve with stock market investing? Is it supplemental income? A certain level of wealth for retirement? Are you looking for short-term or long-term gains?
Once you know what you’re aiming for, it will be easier to find the right stocks and make wise investment decisions.
Your reason to invest in stocks will be different than everyone around you.
Some people want to supplement their weekly income.
Others want to invest in companies for the long term.
My goal is to make weekly income from the stock market. That is my investment strategy for non-retirement accounts.
You need to spend time understanding WHY you want to buy stocks.
Knowing this answer will help you define what type of trader you will be.
Step #2. Decide how you want to invest in the stock market
When you decide to invest in the stock market, you need to choose what you want to invest in.
You can invest in stocks, which are shares of ownership in a company, or you can invest in bonds, which are loans that a company makes. There are also other options like mutual funds and exchange-traded funds (ETFs), which are collections of stocks or bonds.
Also, you can expand this to what types of investments will you have in various retirement or brokerage accounts. For example, you may invest in mutual funds with your 401k, ETFs with your Roth IRA, and stick with individual stocks for your taxable account.
This is a personal decision.
Many people when they are first starting to trade stocks choose to limit purchasing stocks with a limited percentage of their overall portfolio.
Step #3. Are you invest in stocks for the short term or long term?
The buy and hold investor is more comfortable with taking a long-term approach, while the short-term speculator is more focused on the day-to-day price fluctuations.
Once again, this is a personal preference.
One of the most common themes of many investing gurus is, “Remember that stock prices can go down as well as up, so it’s important to stay invested for the long term.”
However, this full-time trader wants to make money on those highs and lows.
Knowing your overall investment horizon will help you decide how much time you plan to hold onto your investments to reach your financial goal.
Also, you can choose different time horizons for different accounts.
Step #4: Determine your investing approach
Passive and active investing are two main approaches to stock market investing.
Passive investing does not involve significant trading and is associated with index funds.
Passive investing is a way to DIY your investments for maximum efficiency over time.
Thus, you would contribute to your investment account on the xx day of the month with $xx amount of money.
This happens with consistency regardless of where the market stands on that day.
You are less warry of where the stock market will go and focused on overtime it will continue to go up.
Active investing takes the opposite approach, hoping to maximize gains by buying and selling more frequently and at specific times.
Active investing is when an investor is actively acquiring, selling, or holding bought stocks.
This could be with day trading or swing trading.
You may hold stocks for less than a day, a few days, or a couple of weeks.
The purpose of having active investing is to make profits.
In the stock market, investors make efforts to increase their net worth over time or to make income off the market.
Step #5: Define your investment strategy
When it comes to investing in the stock market, there are a few key factors you need to take into account: your time horizon, financial goals, risk tolerance, and tax bracket.
Do you want to be an active trader or stick with passive investing? What kind of investor am I?
There is no right or wrong answer as this is a personal preference.
Ultimately, you want returns to be greater than the overall S&P 500 index for the year.
Once you’ve figured these out, you can start focusing on specific investment strategies that will work best for you.
Be aware of any fees or related costs when investing. Fees can take a bite out of your investments, so compare costs and fees.
Step #6: Determine the amount of money willing to lose on stocks.
Trading stocks online is inherently risky.
You want to consider what your “risk tolerance” is. Simply put, how much are you willing to lose in stocks before you want to quit?
The biggest reason most people quit trading stocks is that they do not know their risk tolerance and fail with risk management.
You will lose on trading stocks. The goal is to lose a small amount on some of the trades and gain a greater amount of more of your trades.
How much risk you can reasonably take on given your financial situation?
What are your feelings about risk?
What happens when your favorite stock drops 25%?
Understanding your risk tolerance and how much you are willing to lose will help you keep your losses small.
Start with a small amount of money when investing in stocks. Also, make sure you have enough money saved up so you can handle any losses that may occur.
How to Start Investing in Stocks
There are a variety of ways to start investing in stocks. Some methods include getting a small account balance and then buying shares, creating an investing club with friends, or researching the companies you want to invest in.
Now, that you have determined how and why you want to invest in stocks. Let’s dig into the nitty gritty of how to manage a stock portfolio.
On the other hand, if you don’t invest enough, you could miss out on potential profits. Try starting with an amount you’re comfortable losing if the stock market does go down.
1. Open an investment account
There are a few things you need to do in order to start investing in the stock market.
The first is to open an investment account with a broker or an online brokerage firm.
There are different types of accounts you can open:
Taxable accounts like an individual or joint brokerage
Retirement accounts like IRA or Roth IRA
These are the most basic investment accounts, here is a list of types of investment accounts.
If you plan to hold EFTs or mutual funds, Vanguard is a great place to start.
If you plan to be an active trader, I would look at TD Ameritrade or Fidelity. Be wary of Robinhood or WeBull.
2. Saturate yourself in Stock Market Knowledge
On the simplest level, it can be incredibly easy to begin your investing career with little-to-no knowledge, research, and expertise.
If you have even a remote understanding of stocks, then learn what you need from an easy-to-find YouTube video, followed by watching some of your favorite TV shows to learn more about the market and its secrets.
With that said, you need to be digesting the basics from start to end of getting your first investment started.
As the title reveals, investing can seem intimidating and complicated. Thus, stock market knowledge is invaluable.
3. Consider an Investing Course
A typical investing course would teach how to invest in stocks (and possibly other investments).
As a beginner trader, it is unlikely you will know the full extent of how the stock market works. There are many intricacies you must learn and understand.
Beginners should learn about stock investing basics, such as diversification and investment criteria.
Many investing courses offer a platform on how to make money by trading stocks.
Personally, I highly recommend buying this investing course.
If you choose not to follow my advice, that is fine. Come back when you have lost more money in the stock market than the price of the courses.
I CAN NOT STRESS ENOUGH… how important it is to have a solid foundation and practice in a simulated account before you use your real money.
4. Research the companies you want to invest in
When you’re ready to start investing in stocks, it is important that you do your due diligence and research the companies you want to invest in.
Look for trends and for companies that are in positions to benefit you.
Consider stocks across a wide range of industries, from technology to health care. It’s also important to remember that stock prices can go up or down, so always consider this before making any investment decisions.
5. Choose your stocks, ETFs, or mutual funds
Next, you have to decide what fits your investing strategy. Are you looking to buy:
Stocks
ETFs
Mutual Funds
Regardless of which type of investment you make, you must look for companies that have attractive valuations and growth prospects. In the case of index funds or ETFs, which fund has the companies you find attractive.
Most importantly, you should also take into account the company’s financial health and its prospects for future growth.
Make sure you understand the risks associated with holding a particular stock, including possible price fluctuations and loss of value.
7. Take the Trade
This is the hardest step for most people is to take their first trade.
Thus, why learning to trade stocks is great to learn a simulated account using fake money. Then, move to a LIVE account using your real money.
At some point, in your investing in stocks journey, you must press the buy button.
For many the investment platform may be overwhelming to use, so check out your brokerage’s YouTube videos to help you out.
8: Manage your portfolio
Managing your portfolio is important to keep your investments in good shape.
If you are a long-term investor, diversify your portfolio by investing in different types of investment vehicles and industries.
If you prefer to swing trade or day trade, then you want to make sure you always have cash on hand and are rotating your portfolio to take profit.
Investing can be difficult for beginners who often lack knowledge about the stock market.
It is important to remember to keep investing money and rebalance your portfolio on a regular basis. This will help ensure that you stay on top of your investments and achieve the desired result.
9. Selling Stocks
For most investors, it is harder to sell their stocks than to purchase them. There are a variety of factors for that. But, you must sell your stocks at some time to realize your gain.
Don’t panic if the market crashes or corrects – these events usually don’t last very long and history has shown that the market will eventually rebound. Most people tend to panic sell when stocks are low and FOMO buy when the market is at highs.
When you are ready to sell, aim to achieve a percentage return on your investment.
This will require some focus on your time horizon and the stocks you want to invest in.
Also, you need to consider any taxes that may be owed on the sale of stock.
If you’re new to stock investing, consider using index funds instead of individual stocks to gain broad market exposure.
10. Journal & Analyze your Trades
Journaling is a way of recording the important decisions you make during trading to help yourself remember what happened in your trades. It can be used as a tool for reflection, learning from mistakes, and reviewing your strategy.
Analyzing your trades means looking back on your trading history with the goal of improving it.
This is the most overlooked step of the investing process.
When it comes to buying and selling stocks, journalling what is happening in the market is an important part of being a successful investor.
Stock Market Investing Tips for Beginners
Ask any seasoned trader, and they will have a list of investing tips for beginners.
They have made plenty of trading mistakes they do not want to see newbies do the same thing.
When starting to invest in the stock market, beginner investors often seek out consistent and reliable investments.
This allows them to slowly learn about the stock market and take calculated risks while also earning a return on their investment. Over time, as they gain experience, they can expand their portfolio to include riskier but potentially more rewarding stocks.
1. Invest in Companies That You Understand
An investor should know the company they are investing in and have an idea of what type of return they expect.
When you are starting out, it is best to invest in stocks of companies that are easy to understand and have a proven track record.
Do NOT invest in stocks based on the advice of friends, what you read in the news, or on a whim – these can be risky moves. Be wary of the popular stocks you can find on the Reddit Personal Finance threads.
2. Don’t Time the Market
In the world of investing, there is one rule that no investors should ever break: do not time the market.
By following this rule, you will always be on top of your investments and will be able to reap the rewards.
There are times to buy stocks and sell stocks. This is something you will learn when investing in a high-quality investing course.
As an average investor, trying to time the market will leave you frustrated by your minimal returns or great losses.
3. Avoid Penny Stocks
Penny stocks are the lowest-priced securities on the market, and they don’t offer any significant upside potential to their investors. While you may hit a home run return on some, many penny stocks tend to trend sideways.
The risk is not worth the return.
If you plan to invest in stocks, avoid penny stocks and focus on healthy companies.
4. Consider Buying Fractional Shares
Fractional share investing lets investors buy less than a full share at one time. Many times, you may not be able to afford the price of a full share.
For example, buying a share of Amazon (AMZN) may cost you upwards of $2800 or more. Thus, you can invest a smaller amount with a fractional share.
You would have to check if your brokerage company allows the purchase of fractional shares.
5. Stay the Course
In order to be successful, a trader must stay the course and maintain their focus. By staying focused, they will have less chance of making mistakes that may lead to big losses or overtrading.
When you’re starting out in the stock market, it’s important to be disciplined with your buying. Don’t try to time the market, because you’re likely to fail. Instead, buy shares over time and stay the course.
That way, you’ll be more likely to see a profit in the long run.
6. Avoid Emotional Trading
In order to be successful in the stock market, you have to maintain a level head.
Responding emotionally will only lead to bad decision making. Instead, stay the course and trust your research and analysis.
Know your weaknesses as well as your strengths.
7. Do Your Research
When you’re ready to start investing in the stock market, it is important to do your research so you can make informed decisions.
There are a lot of stocks to choose from, and it can be tempting to invest in them all.
But remember, you don’t want to spread yourself too thin. Invest in stocks that you believe in and that have a good chance of making you money.
8. Build Wealth
Stock market investing is one of the best ways to grow your money over time.
For long-term investing, you buy stocks in companies and hold them for a period of time, typically years. Over time, as the company grows and makes more money, so does your stock. This is one of the most common ways to build wealth over time.
The other way with short-term investing is to consistently take profit and grow your account over time.
Stock investing FAQs
Here is a list of the most common questions and answers on stock investing.
Q: What is the difference between investing and trading?
Trading is buying or selling financial products with the goal of making a profit. This is normally a day trader or swing trader.
Investing, on the other hand, refers to the process of putting money into an investment with the hope that it will grow. Someone who is focused on the long-term.
Q: Do you have to live in the U.S. to open a stock brokerage account?
No, you do not have to live in the U.S. to open a stock brokerage account. You must find a brokerage company in your area of residence abroad.
Q: How much money do I need to start investing?
The very common question of, “How much should you invest in stocks first time?”
It is recommended to start investing with $500 or more. However, you can start with Acorns with as little as $5.
Check out this investor’s story by starting with a small account of $500 and growing it over $35k in less than 6 months.
It is best to grow your account with your growth or profit.
Q: Do I have to pay taxes on the money I earn from stocks?
Yes, you will be required to pay taxes on the money you earn from stocks.
Q: What are the best stocks for beginners to invest in?
The best stocks for beginners to invest in are those that have a history of staying consistently on an uptrend. These companies’ stock prices have typically risen over the course of the year.
Find a list of beginning stocks to build your portfolio.
Q: How do beginners buy stocks?
Above, we outlined this in detail. In order to buy stocks, there are a few different steps that you should follow in order to maximize your chances of success.
The first step is making sure you have an account. Once you have an account, the next step is to decide which stocks you want to invest in. Then, you must buy your stock. Finally, you must decide when you want to sell your stock for a realized gain or loss.
Q: How many stocks should you own?
The best answer is it depends on your investing strategy.
As a short-term investor, you can only manage a smaller number of trades.
As a long-term investor, you need a more well-rounded portfolio. of15-25 stocks.
More likely than not, the short answer is “as many as you can afford.”
Q: What is the best thing to invest in as a beginner?
The best thing to invest in as a beginner is an index fund.
Indexes are great because they diversify across many different types of investments and don’t require much effort on the part of the investor to maintain. Index funds are also less risky than other investments, especially in the beginning stages of an individual’s investing career.
Q: How do we make money?
Traders make money in many ways. They can trade stocks, bonds, futures, and options on equities. They can go long when the market goes up and short when the market goes down.
Traders also use trading systems that are usually automated to manage the trades they make to maximize profit.
Trading is a risky investment and it’s not uncommon for traders to lose money. In order to keep losses small, many traders use the trading strategy based on minimizing risk in order to get the desired return.
Learn how fast you can make money in stocks.
Q: Why is Youtube Option Trading So Popular?
Video on how to trade options is very popular on Youtube. This is because of the high volume of interest on this topic.
For many people, learning options is an advanced strategy that takes more time and knowledge to learn.
This is my favorite youtube option trading channel as well as an overall investing strategy.
Additionally, traders are able to get a much higher return on motion trading versus going long or short on stocks.
Q: What is volume in stocks?
Volume is a measure of the number of shares traded in a given period, usually trading days.
This is an important metric if you plan to exit your trade to know there are enough buyers to buy your stock.
Q: How to invest in penny stocks for beginners?
Penny stocks are shares of a company that typically trade for less than $5 per share, which is also known as penny stock trading.
Investing in penny stocks can be a lot of fun and the highest risk, and there are many ways to get involved. For anyone who is new to the world of investing in penny stocks, it can be intimidating to know where to start.
However, there are a few things that you should keep in mind before diving into the world of penny stocks. One of these is researching what types of companies you want to invest in. Many of these penny stocks are not healthy companies and burning through cash.
It is important to always be careful when investing in penny stocks. Keep in mind that the risk of losing money is high and you should invest only what you are willing to lose.
Q: How to invest in stocks for beginners robinhood?
Robinhood is a stock brokerage company that allows users to invest in stocks without paying any fees. It also provides real-time quotes and charts. To invest, the user must have an account with Robinhood that holds at least $0.
Most major brokerage companies have zero commission fees on trading stocks as well.
Beware, Robinhood is known for stopping to trade various stocks during times of volatility whereas other’s brokers do not.
Q: What is a good price to buy at?
This is a hotly debated question as every investor sees the market from their view.
More often than not, people wonder the best time to buy stocks.
As such, you can read is now a good time to buy stocks?
Ready for Stock Market Investing?
If you are new to investing in stocks, there are a few things you take into consideration before diving into the market.
For starters, it is important to understand how stock markets work. You should also know the difference between a stock and an investment.
Investing in stocks can be a bit complicated, but this guide walked you through the basics of how to invest.
Before you invest in stocks, it is important that you understand your investment strategy. That way, you can make informed decisions about where to put your money and how much risk you are willing to take on.
Most people shy away from learning how to actively trade stocks because of the movies about Wall Street they have watched.
You will get a deeper understanding of investing in stocks the longer you educate yourself on the concept.
Overall, it is wise to diversify your portfolio and don’t put all your eggs in one basket.
So, what is your next move to start investing?
One of the best ways to improve your personal finance situation is to increase your income.
Here are the best investing courses to guide your path. With time and effort, you can start enjoying the lifestyle you want.
Learn how to supplement your daily, weekly, or monthly income with trading so that you can live your best life! This is a lifestyle trading style you need to learn.
Honestly, this course is a must for anyone who invests. You will lose more in the market than you will spend this quality education – guaranteed.
Read my Invest with Teri Review.
Photo Credit:
studentloanplannercourse.com
Learn how to reach a six figure net worth in 5 to 10 years, even if you have a massive amount of student loans.
This beginning investment course will help you pay off debt and start your path to six figures.
After taking a second job as a driver for Amazon to make ends meet, this former teacher pivoted to be a successful stock trader.
Leaving behind the stress of teaching, now he sets his own schedule and makes more money than he ever imagined. He grew his account from $500 to $38000 in 8 months.
Check out this interview.
Know someone else that needs this, too? Then, please share!!
I asked, as I sometimes do, what personal finance question my friends and Twitter followers had for me. It was a slow day on the internet and the responses flooded in.
My friend Neil asked, “what do you think about real estate?” A broad question, indeed, and I got him to clarify. “You know… should I buy a house? Why not just rent?”
Why not indeed.
The Dream of Home Ownership I too bit off and gulped down the dream of home ownership when just a small lass. When I graduated from college, I moved to a Southern U.S. city — Charlotte, North Carolina — and like any young professional often in the company of older, established professionals — saw immediately that they all owned houses. And that this was very good.
What they had, I wanted: the houses with the staircases and the pretty backyard decks and the grand old trees in the back and the guest bathrooms with bowls of little colored soaps. I wanted a kitchen, with wide countertops and an arching clamp-hose faucet over the deep sinks and big drawers for flour and pot lids and recycling bins. And art on the walls, and a king-sized bed, and a walk-in closet, and a master bath.
My dream was only made more intense while shopping for condos in New York City, then in Reston, Virginia, with my 20s-era boyfriend. When he went to sign his first title, I went too, and we went out to lunch afterward at a restaurant on 54th street; we spent $112 and when I ate the tiny plate of tiny after-lunch sweets (a little cheesecake, a little truffle, a little gelee), I felt I’d arrived.
Years later, after the boyfriend, I became pregnant and my now-husband and I shopped for homes. My stories of those searches are intense and full of longing and stress; but by my fourth month of pregnancy I was living in house all my own. I vowed to never move.
Tip: Compare mortgage rates from multiple lenders for new home loans and mortgage refinance loans.
Other People’s Dreams I am — I was — the classic case for home ownership. I live in a small city and, when I bought the house, prices were reasonable; my mortgage payment is now less than many pay for renting an apartment. I love working on the yard and painting walls and I even tiled my bathroom myself (with lots of structural help from my father and husband). My husband is handy, and can run wiring and solder plumbing and he built a whole room in the basement. We’re the home ownership success story (though admittedly we have a lot more work to do, and no walk-in closet, no master bath).
But for many people, home ownership should remain the stuff of other people’s dreams.
I think my friend Neil is a good example. His ex-wife longed to buy a home in Los Angeles, where they had made a home after Neil’s upbringing in New York City. The situation was probably even more intense for her than for me in Charlotte; their friends and colleagues owned expansive ranch-style show-homes and sweet artsy bungalows, in neighborhoods where the price-per-square foot probably neared four digits at the peak of the market. The mortgage on those homes would require all of one middle-class salary.
Even for the more economic choices, prices were high and there was no clear benefit to buying over renting; in fact, most mortgages would be more than the cost to rent a nice (and low-maintenance) apartment.
Neil wasn’t good with a hammer or a chop saw, nor did his wife have any desire to keep a fine vegetable garden. There was no dad around to rip out old bathroom floors or teach Neil to solder copper pipes. Neil had no dreams of living in his home forever with his growing family; to date, he has no children and he’s now divorced; he’s not sure if he’ll stay in LA for the rest of the year, let alone the decade. For him, home ownership is someone else’s dream.
Should I Buy a Home? For me, Neil’s question was easy. “No,” I said finally. “I don’t think you should buy a home.”
“But isn’t that the goal?” he asked me. “Isn’t that what you’re supposed to do?”
Well, maybe. But I’ve found my own definition of “getting rich slowly” is often made up of doing few things that one is “supposed” to do; for me, living a double income, office job lifestyle is one such “supposed to” I’ve discarded. For Neil, I prescribed letting go of that “supposed to” of buying a home.
How to Know When You’re Neil Are you Neil? That is to say, should you too avoid adopting the dream of home ownership? Here are a few signs you may be Neil:
You are still a transient. Of course, we know I don’t mean “homeless person.” I believe many of us today graduate college (or high school, if college wasn’t the path for you) as transients, expecting to live in one place for a few years before trying out another, and another, and another, until one feels like home (or until you fall in love with someone who’s rooted to a place, giving you a graft and rooting you, too). If you’re not sure yet if this place is going to be your home for more than the next few years, home ownership is not for you. With closing costs and the uncertainties of the real estate market, it’s very difficult to come out of a two-year home ownership transaction without losing money as compared to renting.
You have no desire to engage in home and garden upkeep. While some such people might hire gardeners and contractors to fill in the holes in their handy skills and passions, most of those who don’t care to pick weeds or fix fences or mow lawns or plant apple trees are better off with an apartment. Purchasing a condo might be an option, if you don’t say “yes” to any of the other items in the “are you Neil” list.
The market in your favorite neighborhood doesn’t make sense. If the cost of a monthly payment on a mortgage would be greatly higher than the price of a two-bedroom apartment or other rental suitable for your family’s needs — say, more than 25 or 30% higher — it’s probably not a good time to buy. While indeed mortgage interest deductions and home buyer credits and the time value of money might be squished around to make the comparative cost similar, do remember that life is uncertain and markets fluctuate and maybe you should wait a bit — or look around for a more sensible neighborhood — before buying something.
You’re not sure about your career or your job. Maybe you’re considering going back to school to become a sommelier. Maybe you’re pretty sure your boss wants to retire and sell the company. Maybe you just don’t love your job and you’re looking around for something new. If you’re not fairly confident your next few years won’t include a significant change in income, it’s probably not a good time to engage with the home ownership dream.
Your relationship with your partner is rocky. I’ve been watching several of my friends deal with the tough decision over what to do with the family home when a relationship is over. In one case that worked out for the best — the family made a nice profit from the sale. But that was a rarity. If you’re married, you might end up having to sell and take a significant loss, even if you’d rather stay in the house solo; if you’re not married, things could be even more wonky. One woman I know lost her grandmother’s home after a pre-marriage breakup (with someone who obviously turned out to be enough of a jerk to keep her grandmother’s home, though that analysis is one-sided and second-hand, so take it with salt). Be honest with yourself, and know that, much like puppies and babies, houses do not fix broken relationships.
You would have to cash in retirement or emergency savings to buy the house. A home buying fund should be separate from those savings for emergencies and retirement. You’ll have more emergencies, in all likelihood, with a home than without. And you know how we feel about retirement savings. If your dream is that intense, then you can use your intensity to fuel your frugality while you save up for the down payment.
It also makes sense to run the numbers through a rent vs. buy calculator to see if the results would influence your decision one way or another. Have you struggled with the decision to rent or buy? Where did you come out on the Neil/not Neil spectrum?
In life, you and your marriage partner may find yourselves facing many troubles and situations. While many of these are easier when together, that is not always going to be the case.
There are times when life is taken from a person quickly, leaving the partner without them. You never know what’s going to happen tomorrow.
You can’t predict the future, but you can prepare for the worst. Nobody wants to think about losing their spouse, but it’s a conversation that you should have
To soften the blow of this, insurance is often used to offer financial stability when the cost of the funeral, hospital stay, and bills are too much to handle alone. The cost of a funeral alone can easily add up to $10,000 or more. This can be a heavy bill to leave behind for your family to pay.
When the surviving partner dies, though, that same insurance might not be enough. For many, a survivorship life insurance policy is the go-to for coverage, security, and stability when it comes to dealing with everything left behind.
Common Use for Survivorship Life Insurance Policies
Most insurance policies work by providing money to a specific person after the one who was insured passes. This helps to ease the financial burden left behind by a death, which includes several expenses and more stressful bills that are without that extra paycheck.
With survivorship life insurance, though, two people are covered to pay for the costs associated with an estate. Unlike your ordinary life insurance, this only pays out when both parties have passed, as the name would suggest. It is mostly to cover the taxes and expenses with an estate so that the heir does not have to pay.
An estate comes with costs that could otherwise ruin its value, or at least drop it dramatically. When passing this to an heir, those costs could cause them to receive far less than promised.
Depending on the situation for which this person is receiving the estate that can be damaging. Not only that, but you would also not be giving the person as much as you had hoped. There is a reason they were chosen to receive your estate, obviously, and not giving them the full amount was probably never your plan. With this, you can ensure that they receive as much of the full amount as possible.
There are thousands of families members that find themselves with drastically less heritage than they assumed they would receive because of unpaid expenses, taxes, fees, and much more. If you want to leave your legacy with your children or loved ones, a survivorship insurance policy will protect your savings and allow your inheritance to reach its full potential.
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Estate Planning with Life Insurance
Having any type of final expense insurance is not difficult.
In fact, it is often easier than your average life insurance because it can be issued as a no medical exam life insurance policy. These policies are exactly what they sound like, you’ll be able to get the insurance coverage that you need, regardless of your health or any pre-existing medical conditions.
This can help you to insure your estate without issue so that whoever is receiving it is not stuck with massive bills that chip away at the overall amount. The ease of getting it also makes it easier on you, obviously. While other types of life insurance have stresses and because you to go through several steps to finally be insured, this makes it easier. When going for this type of insurance, it is possible to get it and get out without becoming stressed, worried, or bothered by what must be done.
With the importance of your estate, it is necessary to ensure it goes to your chosen heir in a complete amount. Having survivorship life insurance is the option to keep your estate at full value and help your heir get it without spending large sums of money.
It’s always best to meet with a trusted estate planning attorney to see if you are in need of a survivorship life insurance policy. There are a lot of different factors that you have to consider when deciding if you need a survivorship life insurance policy or a traditional plan. An estate planning attorney can help walk you through the process and make the best decision for you and your family.
Advantages and Disadvantages of Survivorship Life Insurance
Because there are so many different life insurance options, it’s important to understand the pros and cons of each option. Life insurance is one of the most vital purchases that you can make for you and your family, you should make well informed and educated decisions.
Not having the right type of policy, or not having a policy at all, is one of the worst mistakes that you can make. It could leave your loved ones with a mountain of debt and no way to pay for it. That’s not the inheritance that most people want to leave behind after they pass away.
One of the advantages to these survivorship life insurance policies is the standards that most companies used to issue them. If you go with a plan that uses medical underwriting, it’s going to be very different from a traditional term life insurance policy, because it’s based on the health of two people instead of just one.
This means that even if one person doesn’t have perfect health, you’ll still be able to get coverage as long as the other person is in good health. For anyone with any serious health complications or any pre-existing conditions, this can be extremely beneficial.
Another major advantage to these policies is the monthly premiums. In most cases, a survivorship life insurance policy is going to be cheaper than buying two separate policies for each person. These plans will give you life insurance coverage for less expensive monthly payments.
Just like other life insurance plans, there are disadvantages to these policies. The biggest disadvantage is obvious, you won’t receive any payment for the loss of your spouse.
When the first person dies, the surviving spouse will be left with all of the funeral expenses, medical bills, unpaid debts, and much more, but they won’t receive any funds from the life insurance policy. For a grieving spouse, it can be difficult to pay for all of these expenses.
This is where a traditional policy is an excellent tool. One alternative to the survivorship life insurance is purchasing a traditional term life insurance policy for both you and your spouse. These policies only cover one party instead of two.
In most cases, a term policy is much less expensive than most applicants think. Aside from how affordable they are, it’s also much more beneficial when your spouse dies, it will leave you with the money you need to pay off any debts or pay for any funeral expenses.
Just like with most other policies, you can always go with a no medical exam term life insurance plan. They are easy to apply for, and you can get insurance coverage quickly. In some cases, it can be as quick as a couple of days.
Getting Life Insurance
It’s easy to see why everyone should have a quality life insurance policy, but getting an affordable plan can be a long and stressful process. There are hundreds of companies that offer dozens of different insurance products.
In the private student loan marketplace, Discover Bank provides some of the most tried-and-true options, including loans for undergraduate, graduate, and multiple pre-professional programs.
Discover also offers competitive interest rates and some of the most flexible repayment options of any private lender. And there’s one bonus that makes Discover stand out: borrowers get cash rewards for good grades.
What’s Ahead:
Pros & Cons of Discover Student Loans
Pros
No loan fees — Discover doesn’t charge the fees that can ratchet up the cost of other servicers’ loans, like origination, application, and late fees. They don’t even charge prepayment penalties.
Multiple repayment options — Student loans from Discover have deferment and forbearance extensions, and eased repayment options for borrowers experiencing economic hardship. This kind of flexibility is rare for private lenders.
Large loan limits — With many loans Discover offers, including undergraduate and graduate loans, you can borrow up to the full cost of your education. However, there are aggregate limits for all Discover loans; Discover makes sure you don’t borrow more than you need, and you may not be able to borrow above a certain maximum.
Cons
Cosigners can’t be released — Unlike several private lenders, Discover keeps cosigners on the hook for repayment responsibility until the loan is fully repaid. If your loan is supported by a cosigner, this is important to keep in mind.
Narrow loan terms — While some lenders offer a range of short and long repayment term options, Discover repayment terms are limited to 15 or 20 years. This means you could potentially accumulate more interest.
No prequalification process — With prequalification, you can check if you qualify for a loan without going through a hard credit check. Discover requires the hard credit check, which “dings” your credit temporarily.
Read more: Soft Pull vs. Hard Pull – How Each Affects Your Credit
Types of Student Loans Discover Offers
Undergraduate Programs
If you’re enrolled at least half-time in an associate’s or bachelor’s degree program, Discover can help you out with costs. One unique feature of Discover’s undergraduate loans is the multi-year option, where you can pre-qualify to borrow loans for future semesters at the same school and in the same degree program. Since most Bachelor’s degree programs take at least four years, this could save you a ton of time.
Freshmen are also eligible for extra good-grade perks. In addition to the 1% cash reward Discover offers all its borrowers for 3.0 GPAs or higher, undergraduate freshmen can get an additional 1% of their loan amount as a cash reward.
APRs: Fixed: 5.49%–13.99%; Variable: 2.99%–12.59%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 15 years
Graduate Programs (Master’s and PhD Degrees)
These loans are for students enrolled at least half-time in eligible master’s or PhD programs in a range of subjects. Eligibility may depend on a credit check, but qualified borrowers can take out up to 100% of their cost of attendance, which can be substantial for graduate school.
APRs: Fixed: 5.49%–14.99%; Variable: 3.99%–13.99%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 20 years
MBA Programs
Like other graduate programs, business school can be pricey; fortunately, it has its own Discover loan options. Eligible borrowers should be enrolled at least half-time in a business school program leading to an MBA.
APRs: Fixed: 5.49%–11.99%; Variable: 4.24%–10.99%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 20 years
Medical School
Discover supports medical students in these specialties: allopathy, dentistry, nursing, occupational therapy, optometry, osteopathy, pharmacy, physical therapy, physician assistant, podiatry, and veterinary medicine. If you’re in an eligible program for a specialty on this list, you may qualify.
APRs: Fixed: 5.49%–9.99%; Variable: 3.99%–8.59%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 20 years
Medical Residency and Relocation
These loans help cover the costs of post-grad medical residencies and internships, including moving costs. The eligible amounts differ based on the specific programs, but a variety of graduate health profession programs are included, as are veterinary and dental residencies.
APRs: Fixed: 5.99%–8.99%; Variable: 4.49%–7.24%
Loan amounts: $1,000 to $18,000 for allopathy, dentistry, optometry, osteopathy, pharmacy, podiatry, and veterinary medicine programs. $1,000 to $5,000 for nursing, occupational therapy, physical therapy and physician assistant programs.
Loan terms: 20 years
Law School
Students enrolled at least half-time in a degree-granting law school graduate program are eligible to borrow up to 100% of their school costs for each year of school.
APRs: Fixed: 5.49%–13.99%; Variable: 3.99%–12.59%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 20 years
Bar Exam Expenses for Law Students
Recent law school grads, or students in their final year of law school, are eligible for this loan that gives them resources and time to study for the all-important bar exam.
APRs: Fixed: 6.49%–13.99%; Variable: 4.99%–12.99%
Loan amounts: $1,000 to $16,000
Loan terms: 20 years
Parent Student Loans
For students whose parents are helping out with their education, Discover has parent-specific private loans with competitive terms. Parent loans can cover either undergraduate or graduate student costs.
APRs: Fixed: 9.49%–14.49%; Variable: 7.99%–13.49%
Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
Loan terms: 15 years
Consolidation Loans
Discover also offers private consolidation loans. Technically, these are refinanced loans rather than consolidated loans, but you still get a potential lower monthly payment and a simplified payback process.
Read more: Student Loan Consolidation and Refinancing Guide
Borrowers who choose this option should be aware Discover has longer payback terms for refinanced loans — 10-year or 20-year terms—compared to most lenders. You might make smaller monthly payments, but at the expense of racking up more interest.
APRs: Fixed: 4.99%–9.49%; Variable: 3.99%–7.99%
Loan amounts: Minimum $5,000; maximum up to the aggregate amount of your loan debt
Loan terms: 10 or 20 years
Eligibility
To apply for a Discover loan, you must:
Be enrolled at least half-time and on track towards a degree
Be making “satisfactory academic progress” according to your school
Pass a credit check — as with most private loans, your credit rating helps determine the interest rate you can get
Be a U.S. citizen, permanent resident, or international student with a citizen/resident cosigner
Be 16 years of age or older
In many cases, especially with undergraduate loans, you’ll need a cosigner. Make sure your cosigner is in it for the long haul, since Discover requires cosigners to keep their name on the loan until it’s paid.
Read more: What Does Being a Cosigner Really Mean?
Interest Rates
Discover provides a range of interest rates competitive with the industry average for private student loans, though on the higher end of the spectrum.
Borrowers can choose between fixed and variable rates. Fixed rates stay the same over the life of the loan. Variable rates may rise or fall within a predetermined range depending on the market.
You’re eligible for lower interest rates if you or your cosigner have good credit (think high 600s or above). Rates also vary based on the amount of the loan and the length of the term.
Perks and Benefits of Discover Student Loans
Rewards for Good Grades
Discover wants you to do well! As long as your GPA is 3.0 or higher for the year, you’ll get a 1% cash reward for each loan. The reward applies annually if you take out a loan each year. And you can spend the extra cash any way you want.
No Fees
You don’t pay application or late fees — every payment you make goes toward the loan.
Auto Debit Rewards
For enrolling in automatic payment during your repayment period you’ll get a 0.25% reduction on your interest rate.
Repayment Terms
Private loans are known for having less flexible repayment terms than federal loans, but Discover is one exception. The bank makes multiple forms of repayment assistance available to borrowers, including payment extensions and reduced payments as needed.
Interest-Only or Fixed Plans
For in-school repayment you can choose an interest-only plan or a fixed plan. On the interest-only plan you make payments on the interest but not the principal while in school. You’re rewarded with a 0.35% interest rate discount.
The fixed plan requires monthly payments of $25, saving you money on interest later. Those who want to pay early can do so — there’s no prepayment penalty.
Deferment
Deferment lets you delay payments while in school and during your six-month grace period. This option accumulates more interest than the in-school repayment plans.
You can defer for longer periods of time during a medical residency, active military duty or qualifying public service.
Forbearance
Forbearance gives you a chance to postpone loan payments for up to 12 months during times of financial hardship. As with deferment, interest continues to accrue.
For borrowers struggling to make payments, Discover has a few more choices beyond forbearance:
A temporary interest rate reduction gives you a lower interest rate and payment (a $50 monthly minimum) for up to six months.
A temporary payment reduction allows you to pay down the interest only (a $50 monthly minimum) for up to six months. To get this reduction you should be less than 60 days behind on payments.
Early repayment assistance lets you postpone payments for three months (within the first three months of your repayment period).
Payment extension is for people who are at least 60 days behind on their loan payments — if you make three minimum monthly payments within 90 days, your loan will be brought back to “current” status.
Alternatives to Discover Student Loans
Discover isn’t the only private lender option for students out there. Here’s how Discover stacks up against some of the competition.
Earnest
<img decoding="async" class="alignright size-full wp-image-67137" src="https://www.moneyunder30.com/wp-content/uploads/2019/01/Earnest_210x100.jpg" alt="Best Personal Loans Of March 2021
This guest post from Shelley Turner is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.
They’re coming! Like it or not, the holidays — and all the stress of buying the Perfect Gift — are just around the corner. I actually like brainstorming gift ideas, and have been told I’m pretty good at it. Today I’ll share my secrets with you.
The best gifts are appropriate for the recipient, yet don’t cost a small fortune. You want your gift to say “I know what you like”, not “I didn’t have a clue of what to get you for a gift for but here it is anyway”. I once received a leopard-hair belt. Anybody who knows me, or has seen how I dress, understands that there’s never been (nor ever will be) a time that I’d wear a leopard-hair belt. A gift like that screams “I just bought you something because I had to”.
Gift-giving ground rules Before you buy, take a few minutes to think about what your recipient has in her house or on her desk, what she spends her time doing, what she likes to talk about, where she likes to eat, and even what she keeps in her refrigerator. Even if you don’t know her that well, this exercise will help you get some ideas of what the recipient likes.
I’m not a collector, so I prefer practical and useful gifts. However, if your gift recipient is a collector, that’s a perfect opportunity. Even if his collection is filled with expensive items, you can often find a small token within that collection that you could give him. The trick to buying a great gift for somebody, no matter what the occasion, is to buy what your recipient would enjoy — not what you’d enjoy.
Often, a consumable gift that provides momentary pleasure and then disappears is best, especially around the holidays when people usually get many gifts. Consumables can be given, enjoyed, and remembered without becoming Stuff.
My husband’s 90-year-old grandmother is a perfect example. What can you give a 90-year-old woman who already has everything she wants and needs? Not much. However, I know she really enjoys a good cup of coffee. And I found some European butter cookies and a some jars of preserves made in her native Denmark. I give her this same gift every year. She tells me she waits eagerly for our gift because not only does she enjoy consuming it during the winter, but because it’s a small reminder of her home country.
Inexpensive gift ideas No matter which gift you choose, if it’s something your recipient uses over and over, you can give a great gift without spending too much. Here are some of my favorite inexpensive gift ideas. These have all been well-received and cost less than $20. You can tailor the gift idea to fit your budget. Some of these can be used as hostess gifts for holiday parties you may be attending.
Personalized note cards
A book by her favorite author
Monogrammed wine stoppers
Travel journal
Engraved metal bookmark
Monogrammed soap bars
Bread basket with quick bread or muffin mix inside
Dog or cat breed-specific items — calendars, notepads, keychains, etc. of their pet
Cookbook (specific subjects like fondue, vegetarian, appetizers, etc or you could get a book representing their hometown like the Chesapeake Bay, etc.)
Personalized insulated tote-style lunch bag (put his favorite snack inside)
Sports team items — pick her favorite team mug, hat, t-shirt, scarf, etc. (fill a mug with her favorite hard candy)
Gourmet chocolate bars tied with ribbon or raffia
Favorite bubble bath & bath pillow
Wallet with gift cards or cash inside
Amaryllis or Paperwhite bulb package
Old-fashioned jar filled with favorite candy or snack
Hand-made soap with an interesting soap dish
Handmade crocheted or knitted scarf or hat
BBQ sauces, hot sauces, grilling rubs, etc (some have funny labels)
Ice cream dish with favorite topping
Decorative candy bowl with favorite candy
Ornament representing current hobby
Charm to add to an existing charm bracelet
T-shirt from favorite restaurant
Crabtree & Evelyn hand therapy (super-rich hand cream)
Nice colored pencils and/or sketch notebook for artists
Small decorative bowl and package of dip mix
Hand towels with initials embroidered (especially if newly married)
Here are a few more ideas with a bit of explanation:
Magazine subscription (hundreds of subjects to choose from — and you can give crossword puzzle and comic book subscriptions too). Buy the current issue and put a note on it that you got him a one-year subscription.
Lolita glasses are painted wine, beer, or margarita glass that have themes painted on them based on hobbies. There’s a recipe painted on the bottom of each glass too.
Year of Napkins! This requires advance planning, but makes a unique gift for a very reasonable price. For each holiday throughout the year (plus Happy Birthday), pick up one pack of luncheon-sized napkins. When you’ve collected all the holidays, package them in order of the holidays in small CD crates, baskets, etc. Usually you can find the napkins in the clearance section right after the holiday. Decide how many of these you want to put together in advance so you can buy as many as you need during each holiday.
Remember that you can also go in with others to purchase bigger gifts, such as theater tickets, cooking classes, and other “experiences”. If you’re very organized, you can shop all year and pick up interesting gifts along the way. My sister-in-law has a birthday in January, but I often find stuff she’ll love in the summer, so I buy it and keep it until her birthday.
Check the clearance racks all year to get even better deals. Unless you really enjoy going shopping the week before Christmas, you may find that buying gifts ahead of time will not only save you money, but also make the holiday season a little more relaxing, as well.
Reminder: Another way to save money on gifts is to make them yourself. Here’s a list of 34 great homemade Christmas gifts almost anyone can put together. And over at The Simple Dollar, Trent has been documenting his own quest for family-produced Christmas presents.
A note on packaging When packaging your gifts, you’re not stuck using a gift bag or plain wrapping paper unless you want to. Tulle (that material used to tie up rice/birdseed to throw at weddings) is great for wrapping unusually-shaped items, such as the bowls & dip mixes, candy bowls & jars, ice cream dishes, bottles of hot sauces, soap, etc. It’s really inexpensive to purchase by the yard, comes in many colors, and your recipient can see what you gave her without unwrapping it. Tulle is especially good for hostess gifts so they don’t have to open them upon receipt.
Some other tips:
Magazines roll up perfectly in those tall wine bottle bags.
Chinese-food boxes and small tin buckets are inexpensive and fun to use.
Bread baskets work nicely to hold all kinds of items and they can reuse the basket later.
When packaging your gifts, use your imagination!
Gift giving can be fun — if you allow yourself to be creative and take a few minutes to think about your recipient. The bottom line: If he’ll enjoy it, it’s a great gift for him!
If you owe federal income tax and can’t pay in full, the IRS Fresh Start program can help you get caught up. Fresh Start was established by the federal government in 2011 to offer some relief to taxpayers and curb predatory practices by the IRS. Under the Fresh Start Initiative, eligible taxpayers can enroll in a payment plan to clear their tax debt or negotiate an agreement to pay less than what’s owed. Either one could help you get back on track financially if you have an outstanding tax bill. You can also talk to a financial advisor about how to manage your tax liability going forward.
Understanding IRS Fresh Start
The IRS Fresh Start program or Fresh Start initiative was established in 2011 to help eligible taxpayers manage past-due tax debts. The program is designed to aid people who don’t have a prior history of unpaid taxes and aren’t subject to a federal tax lien.
Fresh Start offers help in one of four ways:
Payment plans
Offers in compromise
Currently not collectible status
Penalty abatements
The main goal of the Fresh Start program is to help individuals and business owners resolve their federal tax debt, without being unfairly penalized by the IRS. That includes allowing taxpayers who might otherwise be subject to a tax lien to avoid that scenario.
IRS Fresh Start Tax Relief Options
As mentioned, there are four avenues taxpayers can use to get tax relief through the Fresh Start initiative. Each one is designed to meet a different type of need.
If you’re interested in seeking tax relief through Fresh Start, here’s how the options compare.
Payment plans: The IRS offers short- and long-term payment plans, also referred to as installment agreements, to eligible taxpayers. Short-term plans must be paid in full within 180 days while long-term plans may allow you up to 84 months to repay tax debt, depending on how much you owe.
Offer in compromise: An offer in compromise allows you to repay tax debt for less than what you owe. You must be able to prove a financial hardship that prevents you from paying what you owe in full. If approved, you’d need to be able to pay the IRS an agreed-upon amount to settle your tax debt in a series of periodic payments.
Currently not collectible status: Currently not collectible status allows you to claim financial hardship and temporarily pause your obligations to repay your tax debt. While your account is marked as currently not collectible, the IRS cannot take any collection actions against you and must halt any levies, including bank account levies and tax refund offsets.
Penalty abatement: When you fail to pay taxes on time, penalties and interest can accrue. Penalty abatement allows you to get some relief from penalties if you owe a significant amount of tax debt.
Who Qualifies for IRS Fresh Start Relief?
Generally speaking, you may qualify for help through the Fresh Start program if you:
Owe federal income tax
Don’t have a history of unpaid taxes
Are not yet subject to a federal tax lien
Cannot pay your tax bill in full
If you’re specifically interested in a payment plan, your ability to qualify can depend on how much you owe. You may qualify to apply online for a long-term payment plan if you owe $50,000 or less in combined tax, penalties and interest, or for a short-term plan if you owe $100,000 or less. Business owners can apply online for a long-term payment plan if they’ve filed their tax return and owe $25,000 or less in combined tax, penalties and interest.
The IRS approves Offers in Compromise on a case-by-case basis. To apply, you’ll need to have filed all required tax returns and made the required estimated payments. You can’t be in a bankruptcy proceeding and you must have filed a valid tax extension. Approval is based on your:
Ability to pay
Income
Expenses
Asset equity
The IRS encourages taxpayers to explore payment plan options before applying for an Offer in Compromise.
You’ll need to contact the IRS to apply for currently not collectible status if you’re experiencing a significant financial hardship. The IRS may ask you to file any past-due tax returns if you haven’t done so and you’ll likely need to provide documentation proving your hardship situation. Late payment penalties and interest will continue to accrue on your account.
If you receive an IRS notice for back taxes, the notice may include instructions on how to apply for penalty abatement. You’ll need to call the IRS and provide some information to the IRS about your taxes and financial situation. You can also submit Form 843, Claim for Refund and Request for Abatement if you’re not able to call.
IRS Fresh Start Advantages and Disadvantages
The Fresh Start program is designed to offer some benefits to people who are dealing with unpaid tax debt. Specifically, this program can help you to avoid:
IRS levies
Federal tax liens
Wage garnishments
Criminal penalties
Once you qualify for Fresh Start relief through a payment plan or Offer in Compromise, you’re automatically sheltered from those types of outcomes since you’re making an effort to resolve your debt with the IRS.
Claiming currently not collectible status can also create some breathing room financially if you’re experiencing an extreme hardship that leaves you unable to pay what you owe. Penalty abatement, meanwhile, can reduce some of what you owe in penalties to the IRS.
Fresh Start is not a perfect solution, however. If you enroll in a payment plan, then penalties and interest will continue to accrue until the balance is paid in full. So, the total paid can exceed more than your actual tax balance due.
If you’re interested in an Offer in Compromise, it’s also important to keep in mind that getting approved can be challenging. The IRS wants to collect as much of your unpaid tax debt as possible. If you’re unable to provide sufficient proof of a hardship that keeps you from paying in full, you may be denied. In that case, you’d have to reconsider a short- or long-term payment plan.
The Bottom Line
IRS Fresh Start can help you get out of a tax debt hole if you owe money to the federal government. If you also owe state income tax, you’d need to reach out to your state tax authority to discuss repayment options. The most important thing to remember if you owe taxes is that some action is better than none since your obligation to pay won’t go away.
Tax Planning Tips
Staying on top of your tax situation can help you avoid being hit with a surprise bill when it’s time to file your return. Talking to a financial advisor about how to minimize your tax liability can ensure that you’re paying enough to stay in favor with the IRS, without paying more than you need to. 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 have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The simplest way to avoid IRS tax penalties and interest is to pay what you owe by the filing deadline. If you don’t have cash readily available to pay, you might consider getting a personal loan to pay instead.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
ISAs can have a HUGE impact on your ability to convert real estate leads at a high level, but how do you know who to hire? How do you know which systems to put in place in order to ensure their success? Find out on today’s Real Estate Rockstars with Oak & Ocean’s lead inside sales agent, Travis Halverson. Travis covers scripts, systems, and lead sources. Tune in and learn exactly how to hire and train an ISA so the you can turn more contacts into clients.
Listen to today’s show and learn:
What an ISA is [3:17]
How to track an ISA’s success [4:18]
How to make an ISA’s follow-up more effective [5:50]
One of the best problems for an ISA to have and how to solve it [7:27]
The most successful real estate agents [9:30]
A way to make meaningful touches with Follow Up Boss [10:40]
An easy system for following up with the best leads first [12:50]
Simple scripts for non-committal buyers [15:38]
A potential problem to avoid when your buyer wants to use a VA loan [19:21]
When ISAs should follow up after passing off a lead [20:14]
The follow-up Oak & Ocean ISAs do for past clients [22:39]
How to start prepping to hire your first ISA [28:22]
The right person to hire for an ISA position [29:26]
Where to find potential hires for an ISA position [30:55]
Different ways to compensate ISAs and what Travis prefers [32:30]
Travis’ favorite CRM, lead source, and texting service [35:54]
The oldest lead Travis ever converted [38:14]
Using templates to save time with touches [39:40]
How much time and money you can save with the right system [41:19]
Why you need a system now [42:49]
What all new ISAs need to remember [44:21]
Travis Halverson
Travis is the Lead Inside Sales Associate at Oak & Ocean and manages a team of 6 client care specialists. He takes pride in making sure that all of our clients are met with that 6-Star Ritz Carlton service from the first “hello” all the way to the first meeting with one or our amazing agents. He has gained vast knowledge of lead generation tactics from his network and contacts in other real estate markets across the country. Travis has made it his mission to ensure that all of his team members abide by Oak & Ocean’s core values of Results.Resilience.Respect. In his free time he likes to spend time with his girlfriend and go to the movies.
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Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui