Category: Personal Finance

Are you looking for ways to supplement your income? Perhaps you want to start a work from home business? Read on for the working women’s guide to penny stocks!

Penny Stocks 101

But what is a penny stock?

Simply put, penny stocks are shares of small public companies that you can buy at a very low price per share. How low? The U.S. Securities and Exchange Commission defines every security that trades below $5-per-share as a penny stock.

These stocks are accessible to everyone, and they can yield extraordinary results. So, with a bit of planning, you might be earning a bit of extra money each month!

However, these stocks are volatile and somewhat risky. While it is entirely possible to turn a small investment into a sizable sum of money in a matter of weeks, there are tons of scams to be aware of!

How to Get Started Trading

First of all, check out resources like Investopedia, to educate yourself and learn how to avoid the risks. The cardinal rule when trading with volatile securities is to ONLY invest money you can afford to lose.

Now, the best method to get started is by imaginary paper trading. That is simply you trading real stocks with imaginary money for practice. It might sound silly, but it is the absolute best way to make sure you know how it works before putting real money into it.

For example, check out Match Group, Inc., MTCH stock price. Would you buy or sell? There are several metrics to keep track of there, including:

• Overall score: If this is above the historic median, it means you can buy with lower risk than average.
• Trade price: This is relative to historical stock score levels.
• Overall trend: Does the stock go up? Does it go down? If you can learn to predict the “flow”, you can consistently get out more money than you put in.

An important consideration here is industry, or “trade what you know”. Many traders rush to each new “hot” trend, but this is risky. It is better to focus on one or two industries and study the stocks there for months to get a feel for them.

By focusing on a few industries, you will get to understand how the market shifts and place your investments with more efficiency.

Important Considerations

Keep in mind that trading these stocks is not risk-free. In fact, penny stocks are volatile and risky as far as securities go. As we said earlier, only trade money you can afford to lose.

You should also make sure you set aside at least four hours each week to check financial resources and make informed decisions. If you can’t find that time in your busy working woman schedule, it is best to wait for another time.

Save Money the Smart Way

Finally, keep in mind that trading penny stocks are only one clever way to supplement your income. Check out Thrifty Momma Ramblings for more tips and tricks that will help you save money, snag bargains and discover free promotions for the smart working woman!

If you’re like most young people, you haven’t put much thought into retirement savings. In fact, about 12.5% of millennials figure they’ll work until they die.

The problem with that is the unexpected. Old age often comes with physical or mental health problems. Often these problems make it impossible for the individual to work.

When you’re young and healthy, you assume you’ll be that way forever. The sad reality for most people is that they’re not.

Saving for retirement is easier and more effective over the long term. We’ll show you why with these 3 reasons to create your retirement savings plan ASAP.

Compounding Interest

It doesn’t matter whether you plan to put your money into a 401K or one of the many types of IRAs. They all have the same critical component. You put money into them on a regular basis to help them grow.

Let’s say you put $100 a month in an account starting at age 40. Your friend puts $100 a month into an account starting at age 30.

With interest at a steady 8% which one of you will have more at age 60? You will have $59,000. Your friend will have $147,000! He ends up with more than double the money for starting earlier.

Because of compounding interest, time is an important factor in retirement savings. The earlier you start, the less financial burden you’ll feel.

To learn more about compounding interest, play around with this compounding interest calculator. The powerful effects will surprise you.

It’s Easier to Save Money Over Time

Even without compounding interest, saving over a longer period of time is easier. Let’s look at some numbers without factoring in the interest.

If you put $100 a month into an account for 20 years, you’ll end up with $24,000. To end up with the same sum in 30 years you only have to put $66.67 each month.

You end up using less of your cash flow per month and still save the same amount. Then compounding interest comes along and sweetens the deal even more.

Save More With Long-Term Habits

Interest isn’t the only thing that compounds. Expenses do too, more than you may realize.

If you think about your long-term goals now, you can develop long-term habits to reach those goals. Making a budget and sticking to it now can save you loads of money over time.

For example, living in a home that costs a mere $200 less a month will save you $48,000 over 20 years. Cutting out that $100 cable bill saves you another $24,000. You never watch TV anyway so what does it matter?

Take that $300 and put it into an account with 8% interest and you end up with $178,000! You’ll have to cut out a lot more and make more sacrifices to get to $178,000 in less time.

Go to a retirement income planning event such as those hosted by Hal Hammond. That can help you get some perspective on how you should handle retirement savings. The earlier you start, the easier it will be in the long run.

Start a Retirement Savings Plan

To learn more about how to get started check out our ultimate guide to the best investment plan. Do your future self a favor and get started today!

Sometimes, things happen that are beyond your control. It may be an illness, the loss of a job or loss of a loved one. If you’re self-employed, it may be a slump in the economy or an equipment breakdown.

Whatever the reason, you may find your personal finances need a boost to regroup and reset.

A loan may not be the first on your list of solutions, but there are many reasons why you should consider getting one.

Short term loans are usually below $10,000, although some may be up to $50,000 depending on your credit rating and income. Most loans are paid back within one year.

Read on to learn about the benefits of short term loans, and to see how they may be the solution to your financial needs.

Why Get Short Term Loans?

Even if you’re a good planner, no one can predict an unexpected or unanticipated need. Having access to quick money can avoid a burden on your personal finances. Here are some reasons why you may need to consider getting a loan.

When You Need Emergency Funds

There’s always the possibility of something unexpected going wrong. Ever have a pipe burst causing extensive water damage in your home? What about lightning frying your computer and home office equipment?

And it always seems to happen when you’re short on cash.

Your ability to get a quick loan to fix the problem can make all the difference in stabilizing your personal and business life.

If You’re Selling Your Home

If you’re thinking of selling your home, you may need to invest a little money to get the best price by doing renovations. But you may have already exhausted your savings for a down payment on your new home.

A short term loan won’t require any home equity as collateral. It can help you get a better price for your home. You can quickly pay back the loan and won’t be leaving any money on the table.

To Improve Your Credit Rating

Ever think how nice it would be to consolidate your credit card debt and make just one payment? Consolidating your debt can have many benefits.

A loan can pay off your credit card debt at lower interest rates. And it can help you improve your credit rating.

This type of loan helps you to improve credit scores. Here are some ways you can raise your credit scores by getting a loan:

• Make regular payments
• Pay more than required every month
• Bring balance down quickly
• Stay below 30% of the original loan

If you do pay off credit cards, make sure you don’t max them out again. Take time to consider why you ran up credit cards. Were you overspending or buying on impulse?

Maybe you need to find ways in bring in additional income or create a budget to save money. Find the issue and make a plan to avoid getting into debt again.

Short term loans also help those who have not yet established credit.

To Start a Business

There are a lot of great home-based businesses that can be started with a low investment and offer a great ROI. When an opportunity presents itself but you’re low on disposable income, a loan could be the solution.

A loan can help with start-up costs to carry you until the business becomes profitable.

Even after your business is stable, credit is a way of life for many small businesses. And your business survives on good cash flow. Extra cash from a loan can help you seize unforeseen business opportunities or solve immediate shortfalls for operating expenses.

A loan can free up business revenue that would be used for emergencies, and it can be paid back quickly. It can be used to meet business expenditures and increase working capital.

If your business needs to carry accounts on credit, a loan can sustain you until your accounts receivable come in. One example would be a small motor carrier that would need to carry fuel costs and other operating expenses until he receives payment for his deliveries.

Where to Get a Short Term Loan

Lenders extend short term loans for various purposes. Here are some of the financial institutions that offer these loans.

• Banks and credit unions
• Private and short term lender
• Lenders requiring low documentation
• Lenders approving high-risk loans

If you already have an account with a bank or credit union, they would be your first source for a loan. Most banks and credit unions will require proof of income.

There are lenders who offer loans requiring less documentation for self-employed people or others without documents like income tax returns or business financials required for most loans.

You can use a statement from your accountant about your business activity as proof of income for these loans.

Private lenders are also a possible source of funding. Some private lenders are open to making high-risk loans for applicants with credit issues or low income in exchange for a higher interest rate.

While these loans can bring a quick response, you will need to carefully consider if this would be a wise choice for your needs.

Low Hassel Loans

There are many benefits to applying for a short term loan. Express Capital Funding outlines several advantages of these loans here.

Lenders have a more hands-off approach for loans with a shorter payoff period. So, there aren’t as many requirements as with long-term loans.

There is no minimum loan amount. They can be paid back quickly, sometimes within a month or two, but usually no more than 12 to 18 months. This short payback period has several benefits:

• Easier to pay back
• Easier to be approved
• Lower principle limits
• May have lower interest usually
• Don’t need high-value collateral
• The rate of interest is lower than long-term

One other obvious advantage of these loans is that having a shorter payoff period doesn’t tie up future available income.

Short term loans are often unsecured, but first-time borrowers may be required to put up collateral.

Paying Back the Loan

If your credit is good, interest will be lower than long-term loans over the course of the loan payout. But even if you have credit issues, some institutions will be willing to extend a small loan.

Your ability to pay back the loan will impact loan approval. That’s because lenders don’t give credit scores the same weight for these loans as they do for long-term loans.

If getting a loan will put you at high risk financially, you should reconsider. Don’t take out a loan because you are having difficulty making ends meet. You may be setting yourself up for failure unless your situation is temporary, or you anticipate an increase in cash flow.

These loans should not be used for long-term needs like buying cars or high-dollar equipment.

Loans Provide a Financial Safety Net

Short term loans provide the extra security you need to fill the gap when the need arises. Loans allow you to take the next step toward your personal and business goals. And they can help you improve financial health.

At Thrifty Momma Ramblings, we’re all about helping you save money. For other thrifty ideas on how to use your resources for optimum benefit, contact us at here.

Millennials are stuck in a weird financial situation.

Currently, Millennials are between their mid-thirties and late teens. This is the age group that commits reckless behavior or is in the beginning stages of buying a house and excelling in their career.

We’re at the point where Millennials should start investing. Our consumerism society makes it easy to spend money. Trends such as crazy food, fashion, technology, and travel can eat away at your bank account.

Living the luxury life isn’t wrong — you have to share something on your Instagram, right? But there are ways to develop good savings habits so you can do more fun things during these crucial moments in life.

Here are some wealth planning tips, specifically for Millennials.

Stop Going Out So Much

Millennials are at the party age. This is a common age group where you want to drink and have a good time. Even though our parents give us the judgmental glare, they can’t deny they went through the same phase, too.

But party days are no longer rummaging through your parents’ liquor cabinets or buying some alcohol at the nearby liquor store.

Millennials want to go out. They want to drink fancy cocktails. They want craft beer. They want wine and specialty food.

All of this adds up, and you’re left with an empty bank account and bad wealth planning.

If you want to save money, you can agree to hardest part about saving is saying ‘no’ when a friend asks you to join them at a brewery or an expensive cocktail lounge.

This doesn’t mean you can never go out. But limit the number of times you go out.

Instead of going out every weekend, make a day once a month to go out with friends. Or save going out for special occasions, such as a birthday or other life event.

Don’t Buy the Latest Technology

Once Apple and other major tech companies announce the new iPhone and other gadgets, Millennials flock to the store to be the first ones with the gadget.

And phones aren’t the only gadgets. Video game consoles, games, tablets, and smart TVs are perfect examples of expensive tech that Millennials completely eat up.

But this habit can ruin your bank account. However, there’s a difference between an investment and a novelty purchase.

Say you have an older smartphone that’s starting to decrease in quality. It loads slow, the battery dies quickly, and you’re unable to properly use your apps. Therefore, it’s time to buy a new phone.

But rather than splurge on the latest phone, you’re wealth planning. You take about six months and save for it.

Or, you lease the phone through your cell phone carrier. This way, a small charge is added to your cell phone bill and you don’t have to put down a lot of money.

But you don’t have to buy the latest gadgets when they’re immediately released. You’re putting down a lot of money at one time, resulting in a low balance bank account or risk of being in debt.

Get in the Habit of Actually Saving

While cutting down on expenses is great advice, Millennials need to be taught wealth planning. And once you do, this habit will come naturally.

Start by saving $20 a week. By the end of the month, you’ll at least have $80. After a year, you’ll have about a grand saved.

Don’t have $20 each week to save? Start saving some loose change. Even putting away 50 cents a day equals almost $100 in your savings.

Building a savings account doesn’t require several thousand in the bank. Even an extra $500 will prepare you for a dire situation and an unexpected expense.

Depending on your bank, you can set up automatic savings that transfer a certain percentage of the money in your checking to your savings.

But if you want to start saving for your future and for retirement, you need to really be responsible.

Open up a separate retirement account. Invest in stocks or bonds so your savings can accumulate faster. If your employer offers retirement savings or a 401k, take advantage of those benefits.

And whatever you do — don’t touch that money unless you retire. Consider opening a special account that charges you a large fee if you take any money out.

Saving money can mean having a small savings account or a retirement account that will last you a lifetime. The most important thing to do is save money, regardless how you do it.

Make Smart Purchase Decisions

It’s inevitable — you’ll have to splurge occasionally.

Even when trying to save, the burden of Christmas presents and birthday gifts is still upon you. Even small purchases make an impact; how often did you forget to go to the grocery store and opt to just eat out?

But when you do splurge, make the most of it. Meaning, be smart about your purchases. Making impulse and last-minute spending decisions could leave you in debt. Instead, think of purchases that matter.

For major purchases, such as buying a car, make sure you research the car and test it out. Don’t settle for the hot sports car — buy a car that will last you years.

Be sure to understand the lease, your interest rates, and if the new car will affect your insurance.

For smaller purchases, make sure you’re spending well. Meaning, don’t buy clothes unless you need to. A perfect example: say your new job requires a certain dress code and you don’t have many clothes in that category.

When going out to eat, avoid appetizers and upgraded side options. Only eat out at nice restaurants during special occasions.

Time to Get Better at Wealth Planning

With the way Millennials are spending, it’s easy to be broke or fall into debt. Make smart purchasing decisions and start saving.

There are many money saving options that create a rainy day fund and helps prepare you for retirement. The longer you procrastinate to save, the harder it will be. Start saving today and be prepared for anything life throws at you.

For more money-saving tips, visit our blog.

The holidays are an exciting time to decorate the house and fill it with a little extra joy.

But, a poor organization can sometimes turn this into a stressful task.

Thankfully, there are few simple holiday storage tips every mom can master. These include the best-kept secrets for anything from messy wires to tricky trees.

Check out the top five ways to keep all your holiday decor in order.

1. Separate Your Storage

As you’re pulling things out, or packing them up, try to think about where to store them in your home.

Group all the big, outdoor decorations together. Do the same for tree decorations versus tabletop details. Lastly, make a separate group for stockings and trimmings you may have hanging around the house.

This takes a little extra time as you’re setting up or breaking down.

But, once you have everything separated, you’ll be saving plenty of effort in the years to come!

2. Cut Down on Packaging

There’s no reason to keep using the bulky packaging everything comes in when there are closet organizers and simple holiday hacks available.

This is as simple as wrapping lights around pieces of cardboard so they don’t tangle. It also means taking the time to wrap fragile ornaments in tissue paper, which is less bulky than bubble wrap.

Don’t forget to keep all the hooks in one place, either. Consider putting them in a small pencil case or makeup bag.

3. Get Rid of What Is Old and Broken

If an ornament is cracked or a set of lights isn’t working anymore, you won’t have a use for it next year.

Make a little trash pile as you take everything out at the start of the holidays, and when you’re going through it all again at the end.

This makes a significant difference in the amount of space decorations take up.

4. Go Green

Trade the old fake tree you have to pull out every year for a family outing to get a fresh tree.

Or, consider getting festive holiday flower arrangements instead of putting little reusable decorations everywhere. This is a bit pricier, but nothing is worth more than your time.

Getting fresh, natural decorations each year means there are fewer things to store.

5. Wrap with Care

The less you worry about holiday storage, the more you can focus on buying gifts and wrapping them! Unless your festive packaging materials aren’t organized.

Don’t leave this out of your cleaning process. Go through all the old wrapping paper you have, as well as tape, ribbons, and tissue paper.

Designate one drawer or bin to keep everything together – big families might need a little more space.

But, the point is to only keep wrapping materials you will actually use, and to keep them tidy in one place.

Holiday Storage, Hosting, and More: How to Relax This Holiday Season

Storage is just one thing to worry about when the holidays roll around.

Between cleaning the house to have guests over and preparing big, fancy meals, it can be hard to take everything in.

We know you want to create special memories for your family, but you should be able to enjoy them too!

Click here to discover how to relax during this year’s holidays.