Category Archives: Investment Strategy

8 Tips for Setting Up a Home Office on a Budget

Income Streams, Retire Often, Working In Retirement

This article was contributed to Leisure Freak by Michael Everett, who is a chemistry teacher with a passion for house design.

Whether you’re a worker who switched to working from home or a freelancer working after retirement, you’ll need a comfortable working environment you can call your own. Although this space is essential if you want to remain productive, that doesn’t mean you will need to burn a hole in your wallet designing it. After all, not everyone has enough space for a separate room or enough of a budget to get help from professional interior planners. Luckily, you can do it yourself with the help of some of our tips. Don’t worry; these eight tips for setting up a home office on a budget won’t compromise your wellbeing. They will help you remain frugal, comfortable, and happy.

A woman working at her desk in her home office, writing something in a notebook.

Featured image source.

1- Create a budget beforehand

As with any other home design endeavor, you must create a budget. This will not only help you better understand how much money you can spend, but it will also enable you to control your impulses while making purchases for things your workplace needs. Go through your monthly expenses and put aside the money needed for this project. Be realistic about it, and do not spend more money than you can comfortably handle. This budget is the foundation the rest of the tips will significantly depend upon.

 

2- Designate a spot for your home office

As previously mentioned, you most likely won’t have enough space in your home for a separate home office. This is perfectly alright! Even a tiny, peaceful corner of your living room will do. On the other hand, if any of your other rooms have an odd spot you cannot seem to utilize, why not transform it into a cozy working area? Walk around your home and think about where your future office space would make the most sense. Opt for areas that have less traffic and are less noisy to stay productive even when working from home.

3- Remove any unnecessary items

A great tip for setting up a home office on a budget includes decluttering. Decluttering is an accessible way for you to maximize your home office space. Furthermore, it may even earn you some money! Clear out the space in your designated home office by either selling, donating, gifting, recycling, or throwing away any unnecessary items. However, you may rent a storage unit if you’re not ready to part with some belongings. It is also one of the top reasons why Americans rent storage units in the first place. You can use it when working from home and still keep an eye on your belongings. Alternatively, it will also give you the chance to deal with them at a later time.

4- Prepare a floorplan and a list of the necessary items

Preparation is vital if you want to reduce the number of funds you spend on redoing things you’ve done wrong. Measure the area you will turn into a home office and create a precise floor plan. Additionally, make a list of items you want in your new home office. This list should be categorized so that the absolute essentials are separate from things you may want but not need.

Some of the most notable essentials are:

  • A surface to work on
  • A seat
  • Devices such as computers, laptops, and tablets
  • Office and specialized equipment

5- Repurpose, bargain, DIY, or trade for needed items

We do not advise buying new office items straight away, even though you might be tempted to. Be creative and choose either DIY projects or repurpose old furniture or objects. If you have an old table that needs a bit of love, why not give it what it needs and save yourself some money to spend on other things? Also, do not neglect the benefits of used items! They are always more affordable, and you may find some hidden gems. For example, used art tools can be quite beneficial if you plan to start earning from your hobbies. Lastly, if you need to purchase items, always look for ones that are on sale or that you can bargain for.

6- Do not forget about ergonomics

Remember to take care of your comfort and wellbeing despite your desire to cut down on anything unneeded. After all, you will use your home office for many hours during the day! If your monitor is not at eye level, reuse old boxes or books to prop it up. On the other hand, if your chair is uncomfortable, invest in one that is more ergonomic. Whatever is troubling you shouldn’t be disregarded. Keep a close eye on how your home office makes you feel and make any necessary adjustments.

7- Decorate using items you already have

The decor you use in your home office is one of those things that can not only satisfy your eye but may also inspire you. And who doesn’t need a bit more extra motivation to work? You can choose different decor based on your style and budget. We suggest using whatever items you already have by giving them a new purpose or space. Place a clock above your desk to monitor the time or plenty of lovely photos to calm your mind. Plants will add a sense of life, quotes may motivate you, and candles can make your home office smell divine. If you ever decide to purchase something, keep in mind the mentality of “I deserve it” can be harmful if brought to an extreme. Especially if it makes you purchase more items than you may need.

8- Let the light in

While designing a home office, you may forget about an essential factor besides peace and quiet, and that is light. Good lighting can make or break your working mood and create a different ambiance. Make sure to have at least one source of natural light in whichever space you decide to set up your home office. Use mirrors and lighter hues to make the light bounce about the room. However, you most likely will require additional light sources. A good light, whether it is a desk, wall, or floor lamp, will help you stay focused and avoid eye strain. We suggest using lamps you may have already if you’re working on setting up a home office on a budget. When possible, pick those whose intensity can be altered and that do not add glare to your devices. 

 

Thank you Michael Everett for your insights on creating a home office on a budget in a time when work from home opportunities are very attainable.

Author Bio: 

Michael Everett is a chemistry teacher by profession but a passionate house designer at heart. He has been sharing his knowledge as a self-employed content creator for numerous websites, including Zippy Shell Northern Virginia. His favorite hobby is spending time with his cocker-spaniel dog named Ruffles.

Investing in NFTs: Can You Buy NFTs in your Self-Directed IRA?

Investment Strategy, Risk Tolerance,

This post was contributed to Leisure Freak by content creator & digital strategist Akanksha Malik.

Although traditional investment options still exist in the stock market, there are many more new types of investments being utilized. One of these new investment options is Non-Fungible Tokens (or NFTs) which are quickly emerging as an investment choice for many investors.

NFTs are a relatively new way to invest in cryptocurrencies where each token is uniquely identifiable by its owning party. While this can lead to some confusion, there is still much more information on how self-directed IRAs can go forward with investing in NFTs, such as how they can transfer tokens and how they go about buying them, selling them and even storing them. In this article, we are going to discuss the same.  

Investing in NFTs: Can You Buy NFTs in your Self-Directed IRA?

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What is an NFT?

An NFT is an asset that is supported by a blockchain and can be traded like a traditional stock. The name stands for Non-Fungible Token and describes the idea that each token is unique and has value, unlike traditional stocks.

NFTs are similar to cryptocurrencies, but they’re not decentralized, meaning no one is in charge of keeping them safe, secure or reliable. Instead, NFTs are secured by the blockchain ledger that keeps track of all transactions made with them.

Example: A digital artwork can be stored in a smart contract on the Ethereum blockchain and will be transferred to someone if they pay with Ether (the currency used for Ethereum transactions).

NFTs are different from other cryptocurrencies because they’re non-fungible — meaning each asset has its own unique characteristics and cannot be exchanged with another. An NFT can’t be sold or traded like a stock because it’s an individualized piece of art or physical object that doesn’t have monetary value outside of its rarity and uniqueness.

NFTs are becoming more popular among investors because they offer several advantages over traditional investments like stocks and bonds. One of the main advantages is security — NFTs are almost impossible to counterfeit because they rely on a decentralized blockchain ledger system for storing information about each piece of art.

If someone tries to alter or fake one of these pieces, all of the information about that piece will be changed in response — making it impossible for anyone else to duplicate this work without access to every single piece of data about it.

What is a Self-Directed IRA (SDIRA)? 

A self-directed individual retirement account (IRA) is a type of retirement account offered by most financial institutions. This type of investment account is designed to help you invest your money in the manner that best fits your personal goals and financial situation.

You can set up an IRA anytime, and it doesn’t require any details on your income to open it. You can choose how much you want to contribute, what types of investments you want to make, and when you want those investments to be made.

A self-directed IRA allows investors to make all investment decisions on their own. They are also able to direct their own investments through buying, selling and redeeming shares within the account. A self-directed IRA can even allow for a tax deduction for certain types of assets like stocks and bonds.

Can You Buy NFTs with Your SDIRA? 

The short answer is maybe. This is because there are essentially no rules in place for self-directed IRAs to invest in digital assets. You can use a Crypto IRA to invest in cryptocurrency; however, there are some important things to keep in mind before investing in NFTs.

First, NFTs are a gray area right now as the IRS hasn’t yet issued specific guidance on NFTs, nobody knows for sure if they will count as collectibles. As such, you should consult with your legal advisor before purchasing any NFTs or other digital assets, as they may not be eligible to be held within your IRA account.

Second, it’s important to note that since NFTs are considered property rather than securities or collectibles — meaning they don’t meet the criteria required for traditional IRAs. It’s difficult to determine whether or not you can hold them within an IRA account without violating the IRS rules against prohibited transactions. 

Takeaway

It isn’t recommended to hold NFTs in your self-directed individual retirement account because the risk of having NFTs in your SDIRA is the same as holding any unallowed collectable. When you put your NFTs in an IRA, the IRS considers the value of that item to be distributed to you in the tax year that you made the investment. Therefore, instead of holding an NFT in your SDIRA, you should consider buying it with your separate funds. 

Much Thanks to Akanksha Malik for sharing her knowledge of investing in NFTs with Leisure Freak readers. A subject that I’m sure many have had little exposure to, including myself. Knowledge is always important and keeping up with the latest investment developments in this world is a big part of that.

Investing in NFTsAuthor Bio:

Akanksha Malik is a content creator & digital strategist at Mesha – India’s largest investing club & online community where the world’s best investors gather to share ideas, discover fellow investors, invest in NFTs & crypto, and compete in challenges for real money. She develops content to share her knowledge and insights helping her readers stay updated with the latest in fintech & investments, as well as cryptocurrency trends and upcoming NFT opportunities. Apart from being passionate about her work, Akanksha loves exploring architectural sites and different local dishes during her travels.

Disclaimer- Leisure Freak is in no way advising readers to invest in cryptocurrencies. Invest at your own risk. Crypto is a high risk investment scheme. This article is for information purposes only. 

How to Conveniently Manage Your Private Investments

Investment Strategy, ,

 

This article was contributed to Leisure Freak by writer Samantha Higgins.

It’s not easy managing your private investments, but it doesn’t have to be a pain. There are many ways you can make the process easier and more convenient for yourself. This article will talk about how you can easily manage your private investments by looking at different tools to manage investments.

How to Conveniently Manage Your Private Investments

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How To Manage Your Private Investments

One way to manage your private investments is by using software applications. There are many different software applications that you can use to manage your private investments, such as SPV administration services, and each one comes with its own set of features. Some of the most popular software applications include Personal Capital, Quicken, and Mint.com.

Personal Capital

Personal Capital is a software application that you can manage all your private investments from one location. It also comes with features that allow you to see how much money you have spent on things like groceries or clothes. You can quickly and easily check up on your spending habits without having to go through individual bank accounts. It’s easy to sign up for Personal Capital, but you have to link it to your bank accounts. Once all of your accounts are linked, you can see how much money you’ve spent on groceries or clothes just by clicking through different categories.

Another thing that makes Personal Capital an excellent tool for managing your private investments is that it uses technology to help you make better investment decisions. The software application has a built-in financial advisor that will help you make more informed investment choices.

Quicken

Quicken is another popular software application that you can use to manage your private investments. Quicken comes with many of the same features as Personal Capital, but it also offers unique features that make it stand out. One of the best features is the investment alerts. With investment alerts, users can set up notifications for particular investments, so they know when a change has been made. Quicken also offers a built-in retirement planner that will help you create a custom plan to get you on track to reach your retirement goals. The software application also connects directly with over 14,000 banks, so you can easily track your finances.

Mint.com

Mint.com is a software application that you can use to manage all of your financial accounts in one place. Mint.com comes with many different features, but the most popular one is the budgeting feature. With the budgeting feature, users can create a custom budget and track their spending. The software application also comes with a debt reduction feature that will help you pay off your debts faster. Mint.com is free to use, and it connects directly with your bank accounts and credit cards so you can get a complete picture of your finances.

Financial Advisor

Another way to manage your private investments is by using a financial advisor. Financial advisors can help you better manage your private investments by providing investment advice. A financial advisor will work with you to set up a portfolio that is best suited for your current financial situation. You can either go with an in-person financial advisor, or you can choose to work with one online. An online financial advisor can be more convenient because you don’t have to meet in person, and you can usually get started for free.

Brokerage Account

The final way to manage your private investments is by using a brokerage account. A brokerage account is an account that you open with a financial institution that allows you to buy and sell stocks, bonds, and other types of investments. When you open a brokerage account, you can choose to use an online broker, or you can go with a full-service broker.

Full-service brokers are financial experts that will monitor your investments and make changes as necessary, but they generally charge higher fees than online brokers do for the same services. Online brokers offer many of the same features as full-service brokers because they allow you to buy and sell investments online, but they don’t offer as much personalization or hand-holding.

 

No matter how you choose to manage your private investments, it’s important to make sure that you have a plan in place. Having a plan will help you stay organized and make better investment choices. Failing to plan is planning to fail.

Much thanks to Samantha Higgins for contributing this article to Leisure Freak,  sharing convenient ways to manage your private investments. 

SamanthaHiggins How Manage Your Private InvestmentsAuthor Bio: Samantha Higgins is a professional writer with a passion for research, observation, and innovation. She is nurturing a growing family of twin boys in Portland, Oregon with her husband. She loves kayaking and reading creative non-fiction.   

Ways to Turn Your Home Into a Money-Making Property

Income Streams, Renting Out A Room

 

This article was contributed to Leisure Freak by Amanda Hill.

Owning a home is seldom cheap. Even if you take care of property taxes, utilities, and mortgage payments, you will still need some leftover funds for repairs and renovations. Fortunately, your home doesn’t have to eat up your money but can also help you generate it. This article will go over different ways to turn your home into a money-making property and what to consider before you do so.

Two people holding a model of a home.Image Source

How to turn your home into a money-making property

The main trick to turning your home into a money-making property is understanding its potential. Every house, be it small or big, has some way to monetize it. In fact, most passive income ideas for retires rely on using extra space. The sooner you can recognize the potential of your home, the sooner you can start generating some serious revenue.

Rent out a suite

The easiest way to start making money from your property is to add a rental suite to it. Mind you – depending on where you live, you might have to adhere to some legal regulations and standards. But, if you can, adding a suite and renting it out is an excellent way to earn some extra bucks. Some homes already have the capability for a rental suite and only require minimal renovation to make them operational. On the other hand, there are those where adding a rental suit means building it from the grounds up. So, try to plan out what your property needs before you start renovating.

Researching before the renovation is also essential for organizing your everyday life. It is usually a good idea to move out of your home during the renovation, as they will be too loud. And while it is possible to organize a move in seven days’ time, you really ought to plan it out as soon as possible. You can even use the renovation as an excuse for an early vacation.

Rent out accommodation

If you cannot rent out a full-fledged suite, you can always opt for providing accommodation. A spare bedroom in your home can easily be turned into a room-for-rent, especially if it has its own bathroom.

If it doesn’t have one, you might still be able to rent it. Areas close to universities are always filled with young professionals looking for a quiet room to rent out. But if you go with the shared bathroom option, know that it will be at a lower price. Furthermore, you might have to organize your life in accordance with your tenant. So, all in all, it might bring you some headache.

Run a bed and breakfast

Running a b&b can be a great idea if you live in a tourist-heavy area. The more bedrooms you can spare, the more tourists you can accommodate. But, keep in mind that running a bed-and-breakfast isn’t simply about collecting money from tenants and cooking them breakfast. To run a decent B&B, you have to consider numerous factors and take care of many problems in advance to run a decent B&B. Do yourself a favor and read up on what running a bed-and-breakfast is truly like before you go at it.

Rent out storage space

Does your property come with a garage? If so, a garage can be an easy way to turn your home into a money-making property. You can easily use it as rentable storage space. A lot of people need extra storage room, either for their everyday items or something larger like their car, boat, or furniture. This can be especially useful if you live in a densely populated area lacking storage space. In that case, renting out your garage can be a great source of revenue, especially if you can guarantee safety. You can insure your garage with minimal investment and make it viable storage space. Just make sure that you take care of the legal aspects of storage and take on tenants that seem trustworthy.

Gardening

Let’s say that you have no extra room for any renting. Is there a way for you to utilize your property to generate revenue? Of course, there is, especially if you have extra time. Namely, one of the options is to use your property as a garden. You can easily turn your home into a functional garden with modern gardening tools. Homegrown, well-maintained, zero pesticide food is always in demand. And you’ll likely be able to get a reasonable price for it, especially if you tackle your marketing correctly. The bigger your property is, the more space you can use for gardening. But, if you have limited experience, we suggest that you start small and calculate your expenses carefully.

Run a home business

Gardening is only one instance of a much broader spectrum of using your property for revenue. Namely, there are tons of business ideas where your home can be all you need. Depending on your skills and preferences, you can easily find work that you can do from the comfort of your home. To give you some examples, you can:

  • Work as a translator.
  • Film online tutorials.
  • Make travel plans for people.
  • Take care of pets.
  • Take care of kids.
  • Create and sell items.
  • Design clothes.
  • Massage people.
  • Train people.
  • Plan events.

The more you look into it, the more you will see just how many jobs are available and surprisingly lucrative if you own a property.

Final thoughts

To turn your home into a money-making property, you need to have a firm understanding of the finances behind it. Extra taxes will likely be a part of your business endeavor, as well as additional expenses for utilities and renovation. So, do yourself a favor and have a clear idea of how much money you need to make for your business to be profitable.

Thank you Amanda Hill for contributing this informative post which provides timely money making tips to Leisure Freak.

Author bio:

Amanda Hill worked as a business consultant and project manager for over 20 years. She now focuses on raising her daughters and writing helpful articles for companies like number 1 movers.ca. Her main interest lies in commercial relocation and commercial planning.

How to sell your old furniture for the best price

Downsizing, Income Streams,

This post was contributed to Leisure Freak by antique furniture enthusiast Robert Plane.  

So, you’ve been thinking about downsizing lately? You still haven’t figured out what to do with some of your old furniture? Since you’re reading this, there’s a good chance you’ve decided to sell it. We know it’s not the easiest thing to do. Saying goodbye to pieces of furniture that have been in your home for god knows how long is never easy. Still, we’re going to help you get the best offer. In the article below, you’ll find some tips on how to sell your old furniture for the best price. Stick around for some helpful info.

Sell Your Old Furniture-An old wooden table

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How to determine value?

Since you’re probably new to selling old furniture, here we’ll try to show you how to determine the value of your possessions. First and foremost, see what you already know about the item you’re planning to sell. Here are some questions you might need answers to: Was it made by a famous manufacturer? How old is it? What’s the current shape of it? If you lack answers here, you might want to consult an expert antique dealer. You might want to get a quote from a couple of them. Also, check the online market for similar items and see how they’re priced. Now, your furniture doesn’t have to be antique-kind-of-old to sell it for a good price. 

The inside of an antique shop, representing how to sell your old furniture for the best price.
If your furniture’s antique, you might want to get a quote from a couple of antique dealers.  Image Source

Try to be realistic

While determining the price before putting your item(s) on the market, try to be realistic. What do we exactly mean by that? Well, imagine you have a wardrobe that once belonged to your grandmother’s mother. You don’t want to underprice it, right? Since you’re emotionally attached to it, there’s a chance that you’ll overprice it so much no one will want to buy it. Keep in mind that the potential buyers don’t have that kind of bond with the objects you’re trying to sell. The best price is the one you can achieve by never going too low or too high. Finding something in-between is, as always, the best option there is. On the other side, being a bit more optimistic won’t hurt, not just when selling furniture. Find the balance!

Where to sell? (the price depends on the place)

When wondering how to sell your old furniture for the best price, it’s crucial to figure out where you will sell it. Here we’ll show you a couple of options when it comes to choosing the place where you’re going to sell your stuff.

Organize a good old yard sale (offline mode #1)

Now there’s a picture pretty much branded into our brains. Nothing like a good old yard sale! Raymond Carver covered it in his stories and poems, so it’s pretty safe to say that yard sales scream Americana more than anything else! If you have a lot of furniture to sell and some time on your hands, you might want to try this option. Maybe you’re a natural bargainer, and this option might help you get the best price.

A yard sale. 
If you’ve got some time on your hands, organize a yard sale!  Image Source

Contact a consignment store (offline mode #2)

If you’re a bit short on time, this might be the best option. Contact a consignment store and see if they can send someone over to check your stuff. Please note that you probably won’t get a good offer since they plan to profit from selling your furniture later on. As we’ve mentioned, this comes in handy if you want to save on time.

Put in on the web

If you’re putting your items on the web, uploading quality photos is a must. Put yourself in the buyer’s shoes and imagine what you’d think if someone didn’t include the images in the ad. Also, try not to provide false information. Be honest with the buyer about every little thing that might need some repairing. Buyers know how to recognize fraud nowadays, and they’re more likely to buy an item that seems believable. 

Preparing your items for shipment

Imagine someone bought the king-sized bed you put up for sale a couple of days ago. The buyer is not from your town and says they will organize the shipment; you just need to pack it the right way to avoid getting damaged during the transport. Don’t worry; we’ll tell you how to prepare it with ease. It’s very simple: first of all, clean it like a pro. Secondly, see if you can dismantle it into parts and wrap everything in bubble wrap and plastic sheets. If the bed goes as a whole, put a blanket underneath it and carry it safely to the truck.

A king-size bed.
Make sure to clean the object you’ve sold before shipping it to the buyer.   Image Source

Learn some negotiating skills

Now, this is something that comes naturally to some people. We all have that one friend that’s a great bargainer. Let’s assume you’re not so good at it. The first rule of the process is: try not to lose your cool. Always know you have the option to turn down any offer you find unjust. By being honest with yourself, you’ll seem more confident to the buyers. As we’ve mentioned before, be reasonable when naming the price. That way, you’ll probably earn the trust of your buyers, and there won’t be any need for some serious haggling. Still, it would help to be well-prepared for the ordeal.

Final words

Those were some tips on how to sell your old furniture for the best price. We’re sure that by following the simple tips we’ve mentioned above, you’re bound to get the best offer for your old pieces. Put some of your natural trading skills into action! Most folks have them; they just don’t use them!

Much thanks to Robert Plane for contributing this timely article to Leisure Freak. There’s no time like the present to find ways to downsize, pickup some needed cash, and at the same time put unused or unneeded furniture into the hands of those who can use it. 

Author’s bio:

Robert Plane is an antique furniture enthusiast with an almost religious approach to indie video games and 80’s VHS culture. A weird combination, but one that works.

 

Tips For Achieving Job Success

Career, Income Streams, Working In Retirement,

This post was contributed to Leisure Freak by the site Value of Stocks. The first step in reaching financial independence is earning income which requires having a level of job success. Here are some tips for effectively choosing how best to do that.

It is fairly easy to get lost in this life. Not knowing which path to take to reach your goals is fairly common. We all want to achieve some kind of success, probably in different areas. Wealth perhaps, or financial freedom. There are multiple ways to achieve your dreams and your goals. Not all of them are the same, but they require a solid foundation that is similar and independent from the path you choose to take. 

Tips For Achieving Job Success

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Think Of Job Success As More Than Money

Find Your Calling

This is perhaps the most important step to achieve success. I am not talking here about financial success but a successful craft in which you can specialize. Finding what you love to do is perhaps one of the most important steps to become happy and successful. No matter how much financial success you achieve, it isn’t worth doing something just for the money and the final outcome. You should focus on doing what you love, and doing it everyday. This is one of the keys to achieve your ultimate goals. Finding your calling is as important as finding the path to financial freedom. It is perhaps the most important step you should take. 

Although the numbers are debatable, it is estimated that 85% of all the people are not happy with their jobs. It is just foolish and masochist to spend your whole day doing something you don’t like, in order to get promoted and still do something you don’t enjoy. Just for the possibility of reaching a certain financial goal. It is rather important that you spend most of your time doing what brings you joy. This may certainly not be the most profitable job you have in the first place. But your love for that activity will ensure that you can constantly get better.

Working for Someone or Be Your Own Boss

It takes a special trait of character to go into business. Entrepreneurs are people that are willing to take a risk, working multiple hours for something that might ultimately fail. This should not discourage you at all. Most of the time entrepreneurs fail, but the lessons you can learn from failing are far greater than the ones, success might teach you. It also has to do with personality, some people like to have a fixed job, and are perfectly happy working for a company for a long time. I am not forcing you into any direction here, it should be a personal decision, and you must take that decision early on in life. Mainly because failing as a young entrepreneur is something uncomfortable but rather easy to overcome. When you reach a certain period in your life, where you have multiple responsibilities. Your family might even be dependent on you, there is very little room for failure. The sooner you start your entrepreneurial endeavour the better.

Start a Company

If you are starting a company there are three main ways to succeed. I will try to explain all of them so you get a better perspective.

1- Better Product/Service

One of the ways to succeed is to start a company which has a superior product or service. This is extremely difficult, because most of the time there are many other competitors trying to reach the same objective. Although it is not impossible it is still a far fetched idea, that might help you achieve this goal.

This is not by far the only way of achieving your goals. There are a number of ways to succeed without being an incredible innovator. Just look at Facebook as an example, at the time, there were numerous other social media platforms that were already up and running. This should also reinforce that no matter how good your idea for the product or service is, you have to execute it perfectly. Business success is much more about execution than the idea itself. Many people might have the same idea, but the execution is the key differentiating factor. This leads us to number two.

2- Better Way of Doing Things

This is the key for most of the business success. It is not about the idea itself it is all about execution. You will also find that some business opportunities lie in identifying a way some things can be done better. Let’s look at Walmart, there were retailers before them. What made them stand out, was their execution. There wasn’t any revolutionary product or service, just a much more efficient way of doing things. 

3- Cheaper Way of Doing Things

This leads us to number three. Executing with the lowest cost. This is another way that sets apart companies, solely based on their profitability. It is inherently tied to the execution part of the business and more specifically regarding efficiency. If for some reason you think there is a better, or more efficient way of conducting a certain business. And that translates into cheaper cost. You can pass that towards your consumers and it should allow you to grow over time.

Conclusion

I hope you were able to learn something from this. I would go even further and I expect you to find what you love doing, and spend the rest of your life doing it. Just like I love to write about finance, and try to help people think outside the box. Life is short and I wish you all the success and happiness you can achieve. Remember life is not about the material things, it is about doing what you love and meaningfully impacting the ones you like the most, family and friends. You won’t be in your deathbed missing all those hours spent doing something you hate, for that hefty paycheck or the large amounts of money you made. Focus on what is important and good luck.

This article was contributed to Leasure Freak by the site Value of Stocks. 

Author bio: Value of Stocks is an independent financial information provider. Focused on analyzing stocks with a value investing approach. Our main goal is to help investors make better investment decisions.

The Pros & Cons of Investing in Physical Gold

Investment Strategy, Risk Tolerance

It is no secret that gold has been historically valued from ancient times until today. Just by describing why people appreciate it, you will already see the pros of this precious metal.

People used gold in trading for a long time, and today, people are storing metal as a valuable investment.

A lot of us agree with experts and investors that it is an excellent store of value. We can buy gold and save it like typical savings but in a more secure and higher-rising-value form.

The Pros & Cons of Investing in Physical Gold

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What can I use Gold for?

You can buy gold now and slowly add more of the metal until you grow your collection. Then, when you retire, you can sell it for cash and live a beautiful vacay life. Or, you can pass it on to your heir. Your recipient can keep the collection and add more to it or exchange it for money to use for education or business.

However, there is a reason why experts say that not only your Portfolio but also your precious metals inventory should be diversified. While gold is well-rounded and can even protect you from inflation, there are things that it cannot do for you.

There are situations that this metal cannot help you. While they are minimal, it’s still valuable and useful knowledge for you to learn the disadvantages.

Here are the PROs and CONs of your gold investment.

On Value.

PRO: Everyone values gold organically.

Gold is treated by society like it treats religion, and because of this, governments and institutions put value in it. For millennia, humanity’s attraction to this precious metal is evidently significant. We have been using it as a symbol of wealth, power, and status.

There are gold items that you can collect that are valued more by their sentiment and historical merit like commemorative coins. Some gold items indeed have raised values because of their added novelty.

CON: It can lose its novelty.

Nobody knows when this will happen, but when it does, gold owners will suffer loss. Humanity’s millennia-spanning crush on gold is emotion-based. Once we have a leap in knowledge, we might see it for its practicality. However, experts believe this will not happen just yet. We can still trade gold for centuries to come. Good for us, this con’s possibility is almost impossible to happen.

On Utility

PRO: Aurum has many uses.

Aside from being jewelry, medals, and statues, which are more novel uses, gold is used in dentistry, electronics, and computers.

It is the best filling for cavities because it doesn’t corrode and doesn’t react when mixed with other metals. Its ductility makes it very easy to shape, and nobody is allergic to it.

Gold is one of the best conductors. It can be used in small portions for smartphones, TVs, and GPS devices. It also helps in the speeding up of data transfer in computers.

CON: It’s too expensive to use practically.

It is impractical to use Aurum in technological industries simply because it is too expensive for its working value. Companies have no reason to use gold substantially when there are cheaper alternatives like silver and copper.

Just take, for example, the use of gold in food. It isn’t added to the fancy dish because it makes it taste better or more nutritious. The gold flake topping is just there to make the food look “fancier,” and so it can sell at a higher price.

For now, the use of gold for investment is mostly based on people’s “placed” value in it. It is expensive because we think so and not because we know it is useful.

Gold Exchange Traded Funds (ETF)

PRO: You can own gold digitally.

You can sign up and exchange your money for digital gold. There are online companies with physical reserves of Aurum, and you can own a part of that stock. When the market situation is perfect, you can buy more shares for lower values or sell your stocks for an excellent profit.

CON: You don’t actually own that gold.

When you sign-up for an ETF, you have shallow control. You have no access to the physical reserve, and all you have in your hands is a sheet of paper.

If the company you are partnering with fails in its system, you can say goodbye to your stocks.

Physical gold

PRO: You have full control of your gold.

When you collect gold physically, you have your investment in your hands, and you have full control of it.

You can add to it, sell part of it, and do anything that you find will bring your financial advantage at once. 

This is the classic no-frills proven way of owning gold, and many experts endorse this way of investing more than any method.

CON: Security costs.

Owning high-value items in your house is a risk for crime. You will have to fortify your storage with all the security technology that you need to mitigate theft.

Security devices can be costly, but you have to buy them, or else you risk your investment and the lives of your family and you.

Should I invest in Gold?

Yes. Yes, you should. Most of the cons of gold are just threats to the security of value, control, and storage, and they can all be mitigated by investing the right way.

Experts highly recommend that you own physical gold. And the good news is that there are sites that make it easy and safe for you.

You can own gold with a touch of a finger and, even more than that, you can have other items like silver, platinum, and copper in all forms. You can get precious metals in the form of Bullion, coins, numismatic, commemorative, bars, rounds, fractional coins, and others.

Find the right subscription for you. There are sites offering Bullion boxes or monthly mystery crates that are pre-curated by experts. With this service, you will be able to grow a collection that will give you many opportunities to profit.

This informative post was contributed to Leisure Freak by Charles Stevens of Bullion Box. 

Author bio- Charles Stevens, Chief Operating Officer of Bullion Box Subscriptions.Charles oversees operations at Bullion Box Subscription, an industry-leading precious metal retailer, curating gold, platinum and silver bullion and coins.

Leisure Freak received no payment for this contributed article nor any commissions if readers decide to use Bullion Box services.

How Trading Can Help Contribute to Early Retirement 

Investment Strategy, Risk Tolerance

Early retirement is without doubt not happening overnight. Jump starting this process can entail quite a few challenges and among those, a reduction in your monthly income, at least in the beginning. Developing a reliable long-term income strategy is therefore essential for a successful early retirement. 

The main problem we are all facing is that, with the passing of time, we will lose the purchasing power of our savings if we don’t put them to work. But what if we could find a profitable way to turn our savings into more? Learning the foundations governing the financial word is key to ensuring our purchasing power over time and to generate an extra source of income to increase the value of our portfolio.

Added to discovering the beauties and complexities of the financial market, we would have a more comprehensive view on what is happening to our current economy following the Covid-19 outbreak, and have the opportunity to expand our horizons both personally and professionally.

What is Trading?

Trading is the activity in which transactions, such as the buying and selling of stocks, commodities, currency pairs and other instruments, are carried out with the goal of profiting from the financial market. 

To maximize their returns, traders engage in multiple small operations daily to collect steady profits over time. There are a variety of trading styles based on time availability, making trading extremely flexible and versatile. 

By having complete control over the operations and the strategies behind them, the opportunities to secure a profit are endless in this market. Dedicating even a fraction of time to this activity, can guarantee a second income source to contribute to early retirement. The advantages? Trading can be carried out comfortably from your home computer, at any time of the day and for however long it suits you. 

How to Start Trading?

Diving into this new activity can seem frightening and challenging but with the right attitude and training, even something as complicated as trading can be broken down and made easy to understand. A leading academy comes to mind when deciding to enter this word with no foundation whatsoever: Trading from Zero.

Trading From Zero is an online trading academy focused on bringing together all aspects of theoretical and practical knowledge with the goal of empowering individuals to be autonomous in the decision-making processes and have the ability to freely trade in the market without the need for intermediaries.

By learning the foundations and the tools used to face the markets in combination with the work of our professional traders, you will have all the knowledge necessary to make more conscious investing decisions and increase your chances of retiring early. Put simply, by learning how to trade, you can generate an extra income to retire early.

The Trading From Zero Team prides itself for being constantly learning and always updated in terms of knowledge and operations, significantly facilitating student’s learning process. The combination of detailed theoretical classes with the exceptional practical component, makes the entire course very valuable in terms of quality and usefulness.

How Trading Can Help Contribute to Early Retirement 

Trading From Zero Course Outline

Beginner’s Course

This is an intensive 4-week course to lay the foundations of trading. No prior knowledge or experience is required. The course’s 10 live theoretical classes explore concepts such as the difference between operating through a third party and on your own, all there is to know about technical analysis, what are the most commonly used trading styles and much more. There is an entire section dedicated to time management that has proven very useful for early retirees as well.  

There is also the possibility to download a free demo software where all the knowledge gathered can be put into practice. In case any sessions are missed, all the classes can be viewed on the website along with additional materials and practice exercises. Access to content is lifelong. To take advantage of an 86% discount on the course for Leisure Freak readers, click here. 

Can you Live from trading?

It’s certainly possible.

Depending on your risk profile, your training and your time availability, you have the chance to reach financial freedom and retire early.  

Trading From Zero can offer you clear theoretical classes along with the essential practical experience. Our courses are led by professionals who stand by each and every student at any time, so that everyone has the chance to learn first-hand the effort and discipline required to ensure a serious and professional management.

Learning to invest in the stock market today, and living from trading tomorrow, is possible and can become your reality as long as you receive the necessary preparation.

This article on how trading can help in early retirement was written by a friend and Leisure Freak reader Federica Longi who is currently working at Trading from Zero in Madrid, Spain.

Leisure Freak received no payment for posting this article nor any commissions when readers enroll in Trading from Zero courses. Post author Federica Longi and Trading from Zero has graciously offered a large discount to Leisure Freak readers who choose to enroll in their trading course. The discount applies by using the special “click here” link in Beginner’s Course section of the article provided above.

Recession Lessons Learned Hold Up During Pandemic Market Drop

Bucket Strategy, Investment Strategy, Retire Early,

I was still in my first long career and just months away from my FIRE date in 2008 when it became obvious it was all going to hell. I learned valuable personal finance lessons regarding once in a lifetime economic dumps when everything is unprecedented with no signs of stability in sight. But back then I was still employed and had options. Retiring early and living off of a portfolio presents different challenges when that “just enough” portfolio can be severely stressed. I took the recession lessons learned and applied them to my early retirement portfolio strategy. Here’s a quick rundown on how it has held up during this pandemic crisis and its related market drop.

Recession Lessons Learned Hold Up During Pandemic Market Drop

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Year To Date Numbers Look Rotten

Pulling some numbers for use as an example from the first of the year (1/2/20) to (3/19/20) before the market stimulus bump shows substantial investment market damage.

  • DJI, Dow Jones: -33.6% 
  • GSP, S&P 500: -29.2%
  • IXIC, Nasdaq: -24.3%
  • VTSMX, Vanguard Total Market Index Fund: -30.0%
  • Leisure Freak Tommy’s retirement portfolio: -17.4%

Fortunately the stimulus market bump occurred and the end of quarter numbers did improve from the week before but still the worst quarter since 1987. 

  • DJI, Dow Jones: -23.2% 
  • GSP, S&P 500: -20.0%
  • IXIC, Nasdaq: -14.2%
  • VTSMX, Vanguard Total Market Index Fund: -20.3%
  • VTI, Vanguard Total Market Index Fund -22.4%
  • VTSMX, Vanguard Total Stock Market Index Fund -20.3%
  • Leisure Freak Tommy’s retirement portfolio: -12.2%

2008 Recession Lessons Learned – Portfolio Diversification Matters 

My being somewhere between leanFIRE and FIRE had me a bit more conservative to reduce risk. I used the recession lessons learned to attempt lowering financial pain from another extended market dump during my early retirement. Although I have no problem working in retirement when I want to, I never want to NEED to work for survival. I’m sure that post pandemic there will also be plenty of new lessons learned from this crisis to carry forward. 

I know plenty of people who are all in with stocks, mostly through Index and ETF funds. I would watch the market go gangbusters of late and think, what if I had only been all in stocks or stock funds too? One of the recession lessons learned was that diversified portfolios recovered much quicker than those all in stocks. 

Great Recession Diversified Portfolio Recovery Details

Stocks/Bonds Maximum Loss Time to Breakeven
20/80 9% 22 months
40/60 23% 25 months
60/40 35% 37 months
80/20 46% 42 months
100% Stock 55% 59 months

Another 2008 recession lesson learned was that sometimes bonds will track with stocks instead of going the opposite direction as in past history. That may be the case this time too. Diversification can lessen portfolio decline but not stop it. As listed above, my portfolio is down 12.2% for the first quarter of 2020 with this COVID-19 pandemic. But that’s much less than the sampled stock indexes.

The numbers look bad and may get much worse. 

If I was fatFIRE I might be able to stomach large losses and continue on. I wondered if being all in stocks over the past few years meant the excessive gains they have enjoyed are far greater than what has trimmed thus far during this pandemic market dump. So I took a quick look at the numbers on 3/20/20 prior to the stimulus market bump when things were at their recent worst.

  • DOW closed 3/20/20 at 28,869. That takes it back to what it was 11/1/16
  • S&P 500 closed 3/20/20 at 3,258. That takes it back to what it was 1/1/17
  • Nasdaq closed 3/20/20 at 6,880. That takes it back to what it was 11/1/17
  • VTSMX Vanguard Total Market Index Fund closed 3/20/20 at $56.01. That takes it back to what it was 12/1/16

I used the Vanguard date of 12/1/16 because it went the farthest back and I looked at my portfolio amount. I haven’t added any money to my portfolio during this timeframe and on top of that it has been paying out to me monthly since then. Comparing my 12/1/16 portfolio amount to 3/20/20 it was down -16.4%, which was 1% better than it was when looking at the first of the year to 3/20/20. That’s even after paying out to fund my and my wife’s early retirement lifestyle since that time. There were also associated CFP wrap fees on 90% of the portfolio since then. So unless I am missing something, being all in stocks appears to be a lot riskier when a major market dump occurs. That would account for a longer post recession portfolio recovery time frame.  

My FIRE Portfolio Allocation

I do keep a diversified allocation of stocks and bond funds like many people do. But I do something else. I use a bucket strategy where I keep two years expenses in cash and short-term bonds along with another year in a savings account. It was 2 years ago (3/2018) when I set this asset allocation.

  • 18.5% Cash/Cash Investments
  • 29.5% Bonds Fixed Income
  • 48% Equities
  • 4% Alternatives

I did not see the astronomical portfolio growth over the past couple of years that I would have with a larger stock allocation. But I also didn’t experience the higher level of losses now. I hope things come back to some version of normal sooner rather than later. With all the unknowns I now really appreciate having the cash as my FIRE portfolio survival insurance. It’s calming to know it’s there to  support our retirement lifestyle without resorting to depressed priced asset sales for a couple of years. 

If post pandemic recovery goes like that of the great recession then I hope to see similar favorable recession portfolio recovery timeframes for a portfolio with a diversified stock/bond/cash allocation. A leanFIRE to FIRE early retirement means I don’t have a lot to cut from our lifestyle to reduce spending during a sustained market dump. That’s why I took the 2008 recession lessons learned to heart to help ensure my early retirement portfolio survival during once in a lifetime or never before seen world and market events. 

I’m not trying to tell anyone what they should have done before the pandemic hit. 

If I could go back in time I would have gone to all cash last month. But that’s not how things work. I have no idea how the recession lessons learned or my portfolio will hold up with the next market close or even my own personal survival. I am only sharing this to support FIRE as a worthy goal. When some are saying this pandemic market dump means the end of FIRE or the end of early retirement, I feel it’s times like this that reinforces the need for the good personal finance habits of FIRE. I believe that FIRE is still a worthy goal. These are the times that really test our financial strategies and offer lessons to use going forward. 

 

Update 4/30/20: Anyone who experiences job loss due to the pandemic can check a new estimated stimulus unemployment benefit calculator. Zippia analyzed each state’s unemployment policies to determine how much unemployed workers can expect to receive under the coronavirus stimulus by state and salary. Remember, in addition to state level benefits, unemployed workers now receive an additional $600 a week for the next 4 months regardless of income. (The calculator is not a paid or sponsored link)

Passive Income Ideas for Retirees

Funding Retirement, Income Streams

Passive income is always a great way to supplement your main source of income and earn more money each month, and many people use it to retire early. That said, you don’t have to stop generating passive income after retiring. In fact, most retirees have even more time to spend managing alternative forms of income than they did while they were working.

This article will cover some of the best ways for retirees to earn substantial passive income and continue to make money throughout retirement. Once you take the time to set them up, these ideas offer a surprising amount of income and require very little ongoing work.

Passive Income Ideas for Retirees

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Renting Out Space

Renting out space is one of the simplest strategies for adding passive income, and many retirees have extra rooms in their homes. Depending on your location and the size of the space, you could earn hundreds of dollars per month by renting out a single room.

Websites like Airbnb are the most common way to rent out space as a secondary source of income, and they facilitate important aspects of the transaction like payment and vetting tenants. Even small rooms can be worth a lot of money if you live close to a major city.

Renting Out Storage

While most people think of short-term tenants when they think about renting out space, you can also earn money by renting out extra space for storage. Storage space typically doesn’t demand as much money, but there are a few reasons to consider this approach.

The most obvious benefit of renting out space for storage is that you don’t have to host visitors in your home. While the vast majority of guests are respectful, living with a stranger will likely impact your comfort at home. Some people are willing to give up some of the money they could have earned in order to maintain their lifestyle.

There are a growing number of services designed to connect renters with storage space, although demand and availability still vary widely from one location to another. Look into the options in your area if you’re interested in renting out extra space for storage.

Peer-to-Peer Lending

Most loans are provided by a bank that offers money upfront, but you can now earn money as a lender by contributing to a peer-to-peer lending fund. These solutions offer lower interest rates to borrowers relative to those available with most banks and credit unions, and they give lenders the opportunity to earn more in interest than they could with a savings account or certificate of deposit.

Lending obviously comes with certain risks that aren’t involved in other methods of saving and investing, but peer-to-peer lending services mitigate risk in a number of important ways. Like conventional lenders, they perform credit and background checks to ensure each applicant is a qualified borrower.

Depending on the service you use, you may be able to make offers on individual loans or contribute to a fund that’s used to cover a wider range of loans. As with any other investment, diversifying loans helps mitigate risk and prevent a single bad borrower from ruining your investment.

Similarly, you can target higher returns by bidding on loans with a higher level of perceived risk. More risky borrowers are more likely to default, but you’ll be compensated for that risk with a better interest rate. The right balance for you depends on your risk tolerance and whether you could afford to lose the money.

Peer-to-peer lending services often work with people who couldn’t qualify for traditional loans, so this form of passive income also provides an opportunity to help people in difficult financial situations. Of course, it’s up to you to determine which applicants you can trust to pay back the loan.

Investing in Real Estate

Investing in real estate is a common financial goal for people of all ages, but retirees are in the unique position to dedicate their time and resources to this kind of passive income. Real estate can be a time-consuming field, so it isn’t always easy to manage if you’re also working a full-time job.

If you’re new to real estate, consider starting with a rental property to start earning consistent income after making your initial investment. Keep in mind that you’ll need to budget for operating costs and other expenses, especially if you’re planning to manage multiple properties.

In addition to the money you earn in rent, real estate offers the potential to increase in value over time. Of course, these changes are dependent on the housing market in your area, so it’s important to understand market trends before investing.

It will likely take years to break even on your rental, but property is a worthwhile investment that will continue to hold value throughout the rest of your life and beyond. Properties are also relatively liquid, so you should be able to find a buyer if you ever change your mind.

Flipping Properties

While most new investors focus on rental properties, you can also make money by buying old or rundown properties, fixing them up, and selling them at a higher cost. Flipping homes involves a wide range of skills and knowledge, so it’s not right for everyone. That said, you could potentially earn a substantial amount of money if you’re able to identify good values.

If you’re new to flipping properties, consider working with someone who has firsthand experience on similar projects. They’ll probably be willing to work with you if you offer funding along with a cut of the profits, and their expertise will help you manage renovations while minimizing unnecessary costs.

People of all ages can pursue lucrative passive income projects, but retirees often have even more time to invest in a new source of income. These are just a few of the most effective ways to generate a reliable income without going returning to your career or taking a part-time job.

 

This informative post was contributed to Leisure Freak by Logan Allec at Money Done Right.

Logan is a CPA, personal finance expert, and founder of the finance blog Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money.