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Saving Vs Investing Money

If you have ever saved for something, then you probably know what it feels like to be in a situation where you are saving money versus investing money. The challenge with saving money versus investing money is the concept of change. In this article, I will show you how saving your money is a good thing, and how investing your money is not.

Let’s look at saving money first. When you save money, you are essentially allowing yourself to invest some of that money in a safe place. This allows you to ride out rough times longer than if you had invested the money in an interest-bearing savings account. This is a key concept to saving money versus investing and one that few people grasp.

Let’s say you are saving money for a vacation. You want to take a month off to go on a vacation. What do you do in the weeks before your vacation? You don’t go out and eat out every night. You spend the money saving up a vacation fund. Once your trip is over, when you get back you can use the money you saved and buy a new handbag or any other high-ticket item you desire.

This is the principle of saving money versus investing. The reason saving is a better idea than investing is because you never have to pay interest on your money. Saving allows you to build cash value, which is simply the value that your money will return to you after some time. The money you save can then be used for whatever you wish.

Saving allows you to build wealth slowly while investing might grow your wealth faster. For example, by having a saving account you can have money set aside each month, and it will grow at a fixed rate. The money in your saving account will not earn interest and will not accumulate debt. If you save regularly, you’ll eventually be able to save large amounts of money for the big things in life.

Most people have a saving account and are very thrifty. They’ll put their money into their savings and then use it whenever they need it. You will be very pleased with yourself when you look back and see all the times you have saved. Saving will allow you to live comfortably.

One advantage to saving versus investing is that you don’t have to keep track of what you’re spending or if you should be making a profit or loss. You’ll always get to know where your money goes. However, this isn’t always the case with investing. When you invest, you must have a complete financial record. You must keep track of every single penny of your investment.

Finally, a saving account offers security. You won’t have to worry about losing your house or losing your job when you lose your job due to economic recessions. When you make a saving account, you’re protecting your family. You’ll always have enough money to cover emergency needs. That’s why saving is a far better option than investing. You’ll see in your future that saving money is the only way to truly have security.

Now that we’ve discussed the pros and cons of saving money versus investing, it’s time to look at what you should do with the extra money you would earn if you chose to save over investing. Saving money is probably more important than investing because it gives you much more freedom. You can buy anything you want with your saving, instead of being limited to whatever is inside your bank account. You could go on a vacation, buy a new car, get a bigger home, etc. You’ll have much more financial freedom if you choose to save over investing.

However, there is one thing to remember: you’ll pay interest on the money you save, just like you would with any other type of loan. If you use up all of the interest on your savings, you’ll be left with nothing but the initial investment and some additional fees. However, if you continue to do well with it, you’ll find that you’ll end up making a profit, even if you’re not investing anything.

So there you have it: Saving Vs Investing Money – Making A Profit. Saving money is always a better choice than risking it, but you should still understand how investing affects the value of your savings and how much risk you’re getting by saving. Saving doesn’t make you a “rich” person overnight, either. You’ll need to save for quite a long time to build up any significant amount of wealth. It will eventually pay off, though, so while it may not pay off immediately, don’t let that get you down!

5 Common Investment Mistakes You Must Avoid

Investment mistakes cost you money – that’s why they must be avoided.

There are only two paths to gaining the experience necessary to know how to minimize investment mistakes:

  1. Smart Path: by learning from other people’s investment mistakes.
  2. Expensive Path: by making your own investment mistakes and learning from the school of hard knocks Frankly, I’m no masochist. I prefer the more efficient method of learning from other people’s investment mistakes wherever possible. Learning vicariously helps you avoid losses, which leaves more profits in your pocket and accelerates your journey to financial freedom.

1: Diversify, But Don’t Diworsefy

Diversification is a valuable risk management tool, but only when used properly. Diversification only adds value when the new asset added has a different risk profile.

For example, when diversifying a U.S. stock portfolio, you may want to consider non-related markets like gold, gold stocks, real estate, bonds, commodities, and other asset classes that exhibit low or inverse correlation.

Diversifying is adding more assets with a similar risk profile until your investment performance replicates the averages. For example, adding U.S. equity mutual funds to a diversified portfolio of U.S. stocks is a di-worse-ification.

Your goal when diversifying should be to add independent and sometimes opposing sources of return. This can lower portfolio risk and possibly increase overall return when coupled with other investment techniques explained below.

2: Don’t Pick Stocks – Asset Allocation Is More Important

Multiple research studies agree that at least 90% of the variance in a diversified portfolio’s returns is attributable to asset allocation. What’s surprising, however, is that most people mistakenly focus 90% of their efforts on the remaining 10% of return by trying to pick individual securities. It makes no sense. Don’t make the mistake of spending all your time on the decisions that will make little difference in your overall performance.

Don’t try to pick the next hot stock or top-performing fund when the experts who live and breathe this stuff are consistent failures at the task. Instead, spend your limited time and resources determining your correct allocation to asset classes and strategies, and you’ll be putting Pareto’s Law (the 80-20 rule where 80% of your results come from 20% of your efforts) to work for you.

3: Don’t Confuse Historical Returns With Future Expectations

Just because your investment advisor told you the average historical returns from the U.S. stock market are approximately 10% annually (or 7% or 8% depending on the time period and whether adjusted for dividends and inflation) doesn’t mean you should expect similarly. The future will likely be very different from historical averages, and your average holding period may not be long enough to replicate average returns.

For example, most long-term historical stock return studies use average holding periods of 30 years or more. Even if your investment career is 30 or 40 years, your average holding period will likely be less than half that length. The bulk of your savings are usually accumulated late in your career and spent throughout retirement. Almost nobody begins investing at age 30 with a large lump sum and retires at age 60 on that investment to create a 30 year holding period. Life doesn’t work that way.

The result is you should expect far greater variability in expected returns than long-term averages would indicate.
Additionally, average returns are a statistical fiction that seldom exists in reality. According to Nassim Taleb, author of “Fooled by Randomness,” the average return on the Dow Jones Industrial Average from 1900 to 2002 was 7.2%. Only 5 of the 103 years had returns between 5% and 10%. Obviously, the “average” is far from typical.

Finally, long-term averages may have little relevance to your current investment situation because the current investment environment may be anything but average. For example, few investors are taught that their holding period returns for stocks are inversely correlated to valuations at the beginning of the holding period. In other words, if stock valuations are higher than average when you begin investing, you should expect 7-15 year returns lower than average. If stock valuations are lower than average when you start investing, then you can reasonably expect 7-15 year returns higher than average.

In short, the investment advice you receive about long-term probabilities and average returns may have little or no relevance to the actual results you get. Don’t make the mistake of basing your investment plan on historical average returns – even if your investment time horizon is long-term. If investing was that simple and obvious, then more people would be successful at it – but they aren’t.

4: Don’t Invest Without a Plan

Don’t make the mistake of spending more time planning your vacation than planning your financial future. Numerous studies show that people who are methodical enough to create a written investment plan can expect to outperform their peers, not by just a few percentage points, but by multiples.

You must create a disciplined plan based on mathematical expectancy because anything less is gambling and not investing.
There are many different investment strategies that honor Expectancy Investing principles, but all of them require disciplined implementation over many years to assure that you come out a winner in the end. That means you should never “invest” in rumors, hot tips, stories, conjecture, future predictions, or an expectation the market will go up. You must have a plan based on provable positive expectancy, and none of these approaches qualifies as a plan despite their widespread use and popular appeal.

Your financial security deserves better.

5: Don’t Forget to Invest in Your Financial Education

You must learn before you can earn. Every investment you make in yourself will pay you dividends for a lifetime. I often tell coaching clients that investing isn’t brain surgery. It’s far more complicated than that.

Investing done right is both an art and a science. For that reason, you must be wary of half-truths and oversimplification that don’t respect the inherent complication of the process. Investing is an art because we’re emotional human beings masquerading as rational decisions makers. Our decisions are affected by our values, moods, crowd psychology, previous experience, greed, and fear. Yet, we persist in the illusion that we invest logically.

Investing is also a science because it requires a proper strategy based on provable scientific principles like diversification, asset allocation, valuation, correlation, probability, and much more. You must balance both art and science to become a consistently profitable investor. You must work on yourself to improve your decision-making process while also developing your knowledge of investment strategy. There’s nothing more financially dangerous than an investor making a million dollars worth of decisions with a thousand dollars worth of financial intelligence.

When it comes to investing, a little knowledge can be a dangerous thing, and a lot of knowledge can be a profitable thing.
So invest in your financial education. It will pay you dividends for a lifetime.

Everything You Need To Know To Be A Smart Investor

Whether you are just launching your own startup, in the middle of your ongoing job career, nearing retirement age, or in the middle of your golden years, you are more likely thinking of your financial future. This leads to making an investment decision, allowing you to prudently administer your capital so that it can benefit you in the long-term future. When it comes to decision-making in investments, nobody begins like an expert and even the smartest of investors once started from where you are about to today.

From price to earnings ratio, return on equity to market capitalization, there are a lot of daunting processes that you need to learn while investing. The two basic fundamentals of investment are to acknowledge where to begin and how to begin.

To help you out with your investment decisions, here are some of the different types of investments in detail:

Investing in Stocks

When investors talk about funding stocks, they generally implicate investing in the common stock that is another way to define business equity or business ownership. When you have ownership or equity in a business, you are obliged to receive a share of the profit or the loss that is being generated by the organization’s day-to-day operating activities. On average, equities are known to be one of the most rewarding assets for investors that are seeking to gain wealth over time without utilizing large amounts of leverage.

Investing in Privately-Held Businesses

If you are thinking of investing in a privately based business, make sure that you are conducting deep-rooted research on your prospective company. Based on your analysis of the financial statements, market niche, management skill levels along with your track record, you will get to learn why the company is worthy of your investment. If it all looks good on the paper, start meeting with the people representing the business and run a background check including a review of any historical or unfinished civil court cases with which they have been connected. Fix the term and rate of your investment once you find the company suitable enough to invest in. When you do your homework properly, there is definitely no stopping in making money from a privately held business investment.

Investing in IPOs or Initial Public Offerings

The IPO or Initial Public Offering is a process through which private businesses often sell a part of themselves to external investors. Through IPO, anyone can buy the shares and declare themselves as one of the business owners. The kinds of stocks you own that are publicly traded might vary based on numerous factors. For instance, if you are a type of individual that is attracted to companies rendering stable and good cash flow for owners, you are likely to invest in blue-chip stocks. You might also possess an affinity for dividend growth investing, dividend investing, and value investing.

Besides, if you are someone who prefers a staunch portfolio allocation methodology, you might invest in the stock of companies with currently low profits, as even a minute rise in the profitability can lead to a drastic increase in the market price of that stock.

Investing In Bonds (Fixed-Income Securities)

When you invest in fixed income securities or bonds, you are kind of lending money to the issuer of the bond in an exchange for interest over the income. There is a wide range of ways to invest in bonds, from investing in corporate bonds, savings bonds, and tax-free municipal bonds to buying certificates of money markets and deposits.

Similar to that of stocks, many bonds are purchased via a brokerage account. Choosing your broker will need you to make a selection in between a full-service or discount model. Alternatively, you can choose to collaborate with an asset management company or a registered investment advisor that operates on a fiduciary level.

Investing in Real Estate

It goes without saying that real estate investment is undeniably one of the most primitive ways of investing. There is a myriad of ways to make money through real estate investing, however, it usually comes down to either owning property and allowing users to use it in exchange for lease or rent payments or building something and selling it for making huge profits. For most investors, real estate investing has led the pathway to wealth accumulation since it easily can be used for leverage. When applied to the right terms, right investments, and the right price, real estate investment can allow you to control a much larger asset base.

Finally, when it comes to choosing the type of investments, you have to be clear of your needs and goals. Keep in mind that the growth opportunity and the turnaround are the main criteria of a successful investment.

The Best Way to Invest in Your Business May Surprise You

Not having enough energy and vitality is a pricey expense you can’t ignore.

The majority of entrepreneurs think that time is their most valuable currency when in fact, it’s the energy they should treasure the most. Time is most definitely a finite resource, but the true value of how you use this time is held in how it’s invested.  Time wasted is cheap, especially when it comes to your business. To wisely invest and allocate your time efficiently and effectively, energy must be abundant. Unfortunately, many entrepreneurs’ energy levels are running on empty, and it’s costing them everything, ranging from personal health to stagnating in business to not being present for their most important relationships in life.

Entrepreneurs who want to ignite their business, move at a faster pace, make a bigger impact, and get the highest results out of life can bring these things to fruition starting with these five habits.

1.Create a personal philosophy to navigate life and business.

When it comes to creating more energy and exploding your business, the most important task is to create your personal philosophy that enables you to quit wasting precious mental energy on the things that don’t serve you or your business. A simple way to construct a personal philosophy is to start with the end game. How do you ultimately see your health, life, relationships, and business? Create a philosophy and vision for each area, and be honest. I personally took a day to write out a personal manifesto about who I was becoming and what my standards were when it came to the various facets of life.  When you create your philosophies, you’re able to move at a much faster pace in life because making decisions comes down to whether it aligns and brings you closer to the ultimate end game or not.

2.Build a fortress around your mental and emotional real estate.

When people ask me what are some of the biggest reasons for entrepreneurs struggling with their health, the initial expectations are to mention nutrition or lack of exercise. But in actuality, one of the biggest energy drainers and obstacles to better health is a lack of personal boundaries. To truly become the best entrepreneur and human being possible, it’s essential for you to become more selfish so you can fill your own bucket up. I equate this to putting your own oxygen mask on first in case of a plane crash. You can’t deliver your most impactful work when your bucket is only half full. Guarding your mental and emotional states begins through developing a mental and emotional playbook to help you navigate the various terrains of life. What’s your system and rules for vetting people and opportunities? How do you determine what’s a yes? How will you handle family, coworkers, and friends?

Take a few minutes to think and brainstorm the most common things that could drain you mentally and emotionally. Afterward, write down the root cause of the situations and then a solution for handling them.

3.Move often to keep a healthy and sharp brain.

When you train your body, you train your brain. Cognitive fitness is especially important for entrepreneurs due to the unique nature of the job. Important cognitive traits such as memory, attention, sensory perception, language, learning, motivation, and other executive functions are all improved through exercising due to increasing your brain-derived neurotrophic factor (BDNF). BDNF is “Miracle-Gro” for the brain as Dr. John Ratey describes in his book Spark: The Revolutionary New Science of Exercise and the Brain.

As an entrepreneur who wants to grow your business to new levels, stress will be a likely companion. Without a way to manage this stress, your health will start to decline. Unmanaged stress levels can lead to mood issues, anxiety problems, and blood pressure issues among numerous other things which all equate to a decrease in your cognitive output.

4.Prioritize sleep for maximum creative output.

Though we live in a “hustle-centric” society, sufficient sleep is the necessary connective tissue that must be present in order to reach your peak performing state. A lack of sleep, or even consistent low quality sleep, makes you less creative, less productive, and less resilient to daily stressors. Just as you stuff a blender with an assortment of vegetables and fruits, think of your brain in the same manner while you’re dreaming (REM sleep) and blending your memories from the day. In the presence of sufficient sleep, your brain is inundated with numerous figures from the day — random facts, financial numbers, and personal matters then mesh with your existing knowledge, leading to a better and smarter version of you the next day.

It may be tempting to try to skimp on sleep, but play it safe and stick to the 7-9 hour range.

5.Fuel your body and brain with the necessary minerals and vitamins.

If you go to the movies, you’ll see a perfectly polished film with the main actors garnering the spotlight. While the main actors get the spotlight, it’s the supporting actors and background people who truly make or break the movie. This same process is how nutrition operates. You hear about protein, carbohydrates, and fat. But while they’re important, it’s your micronutrients (i.e. the supporting actors and background people) that truly make or break your health and energy levels. Micronutrients consist of minerals and vitamins which positively contribute to areas like problem-solving and numerous executive functioning behaviors. To effectively eat in a way that is both healthy and provides ample amounts of energy for your professional life, aim for a diverse nutritional strategy where you’re eating across the color spectrums for both fruits and vegetables.

It’s tempting to keep learning about sales, marketing, and other business tactics. But, you can only go as far as your health and energy reserves will take you.

3 Types of Investors – Which One Are You? Take This Test!

Your Investor Type Reveals How You Can Advance Your Investment Strategy To The Next Level

Investor Type 1: Pre-Investor

Unless you were born with a silver spoon in your mouth and a trust fund to match, then you likely began life as most of us do: a pre-investor. A pre-investor is simply someone who isn’t investing. Pre-investors are characterized by minimal financial consciousness or awareness. There’s little thought of investing, and there are correspondingly little savings or investments to show for that minimal thought.

Some pre-investors have a company retirement plan, but that wouldn’t exist had the personnel department not set it up for them. The pre-investors financial world is primarily about consumption, which takes precedence over savings and investment. As wage-earners, they typically live paycheck to paycheck believing their financial difficulties will be solved by the next pay increase. When pre-investors earn more, they spend more, because lifestyle is more important than financial security. For whatever reason, pre-investors haven’t woken up to the necessity of owning financial responsibility for their lives and their future.

This isn’t to judge all pre-investors harshly because it’s perfectly acceptable for a seven-year-old to live in this reality. It’s another thing for a 40-year-old to never graduate beyond it.

Are you a pre-investor? How is your savings and investment plan progressing? Is your financial consciousness ruled by consumption needs, or are you prioritizing savings and investment? What are you going to do to take the next step and begin passively investing so that you can move beyond financial dependence and get on the road to financial independence?

Investor Type 2: Passive Investment Strategy

As we mature and gain responsibility, most people graduate from pre-investor status and enter the investment world through the window of passive investing. It’s the most common starting point on the road to financial security. Most financial institutions, educational services, and web sites support passive investing as the proven, accepted solution. Most of what you can learn from the information available in your local bookstore or on the internet is the conventional wisdom of passive investment strategies.

Passive investing is where the retail world of investing lives. While there are no hard statistics to support my claim, I believe well over 90% of all investors fall into the passive investor category.

The passive investor type usually employs all the basics of sound personal financial planning: own your own home, fund tax-deferred retirement plans, asset allocation, and save at least 10% of earnings. If you follow these foundational principles and begin early enough in life, then passive investing is likely all you’ll ever need to attain financial security.

The passive investment strategy is good for people with busy lives, families, jobs, outside interests, or entrepreneurs building businesses.

Let’s face it: most people’s lives are already full, leaving little time for developing investment skills. It’s difficult to make investing a top priority despite its financial importance.

A common result of having limited time is passive investors often delegate the responsibility and authority for their investment decisions to “experts” such as financial planners, brokers, money managers, or even newsletter writers. Rather than become their own expert on investing, passive investors typically rely on other people’s expertise for their investment strategy. The defining characteristic of passive investment strategies is their simplicity. They require less knowledge and skill making them accessible to the general populace.
“Buy and hold” with mutual funds or stocks, fixed asset allocation, averaging down, and buying real estate at retail prices are all examples of passive investment strategies. There’s nothing wrong with any of these strategies, but they can have negative consequences.

Sure, it’s possible to become acceptably wealthy, but the downside is it usually requires a working lifetime combined with discipline and regular savings contributions to achieving financial independence using the passive investment style. The one exception is extreme frugality because of the high savings rates and low spending rates that accelerate the timeline.

The other downside to the passive investment strategy is you’ll take a lot more risk and can expect lower returns than investors who have reached the next level of investing. That’s because passive investors have no “value-added” or skill component to their expected return stream so they’re dependent on the opportunity in the market for investment return. Rising markets provide great returns, and declining markets provide miserable returns.

The passive investor submissively rides the market roller coaster up and down into the future and willfully bets his financial security on the hope that the roller coaster will end higher than when he started. You can learn more about the buy and hold investment approach here.

Investor Type 3: Active Investor

Active investors build on the foundation of the passive investor. They take the process to the next level by running their wealth like a business. The primary difference between active and passive investors is the active investor not only receives market-based passive returns but also gains a value-added return stream based on skill; two sources of return in one investment.

This allows the active investor to make money regardless of market conditions or direction and to reduce losses during periods of adversity. This holds the potential to increase returns and lower risk. A primary distinction between passive and active investment strategies is passive investors work hard to acquire and save money, but spend far less energy making their money work for them.

Active investors work just as hard at making their money work for them as they ever did earn it in the first place. In other words, active investing is more work, and that’s why it is not for everyone. The reason active investors are willing to spend that extra effort is that they understand the wealth-building game is about return on capital. Small differences in growth rates over long periods of time make huge differences in wealth – far bigger differences than could ever be realized by working toward the next pay raise.

Which Investment Strategy is Right For You?

There is no such thing as the “best investment strategy”. Each type of investing has its trade-offs and there’s no single answer that will be right for everyone.

For example, some people have successful businesses and need to focus their energy on growing their business. They shouldn’t be distracted by the time commitment necessary for active investing. Other people with lower incomes or who begin investing later in life have little hope for a secure retirement without the benefit of an active investment strategy. Active investing can become almost a necessity if your time horizon to retirement is only ten to fifteen years away and you’re just getting started. Each person is unique and has an appropriate investment style at an appropriate time for them. Many people naturally progress through each of the three types of investing as their skills, experience, and portfolio grow. Sometimes successful entrepreneurs choose to become active investors as a second career later in life to enhance and secure their nest egg. The point being there’s no single “right” answer to investment strategy, but there is a right answer for you.

In Summary: Three Types of Investment Strategy

There are three types of investors: pre-investor, passive investor, and active investor. Each level builds on the skills of the previous level below it. Each level represents a progressive increase in responsibility toward your financial security requiring a similarly higher commitment of effort. The advantage is each level offers a similarly higher level of potential reward and reduced risk for the effort expended.

Below are five questions to help you decide what type of investment strategy is best for your personal situation.

  • Do I have the time and desire to learn the skills necessary to become an active investor?
  • Do I have the stomach to tolerate the roller-coaster ride and potentially lower returns that come with the convenience of passive investing?
  • What’s my primary goal from investing: to enjoy the financial freedom I already attained, or compound my savings to reach financial freedom ASAP?
  • Do I have enough years prior to retirement and sufficient savings already put away to rely on passive investment returns for a secure retirement, or do I require a higher level of return to meet my retirement goals?
  • What difference would it make in my financial future if I could create higher returns with less risk, thus compounding my wealth much more rapidly? What would that be worth to me and how should I prioritize it as a goal?
  • (This course will show you how to match the right investment strategy and asset class to your personal skills, resources, and goals.)

The choice is yours. What type of investor are you going to be?

Why it makes sense to try and diversify your investing style?

Investing greats are often known for their unique style of investing. The moment you hear of value investing, Warren Buffett leaps to mind; Peter Lynch reminds us of growth investing; Howard Marks of distressed debt; George Soros or Stan Druckenmiller are known for their macro trades; Jesse Livermore, a trader. And the list goes on.

It is important to know your own dominant style of investing. There would be something where you would be most comfortable in. For example, my natural inclination is to buy stocks that are compounding in nature and then sit and do nothing as long as they keep on performing both on the business and stock price fronts. The problem starts when we become slightly successful in our style of investing. Due to our ego, we tend to believe our way of investing is the best and others are sub-par. And then, we look for confirmation from the external world.

If we are traders, we deify eminent and successful traders; if we are investors, we do the same with famous investors. And that is why you will find fundamental-based investors deride technical chartists and vice-versa. This also puts subtle biases into our minds based on the authority and commitment and consistency biases.

For example, a generation of investors blindly followed Buffett and avoided tech stocks just because he said it was not within his circle of competence. And guess what, they missed the best companies and winners in the last 20 years – Google, Apple, Microsoft, Amazon, etc.

Most of the people typically start investing in either the technical or fundamental side, based on how they started their journey and what influenced them. And over the years, they keep on getting better at their craft. Very few have the curiosity and courage to take a peek at the other side. And even for those that do, it is not easy to be successful. Trading and investing require two completely different and mostly complementary mindsets, and very few can actually do well in both.

When the market is booming, it seems almost impossible to sell a stock for any amount less than the price at which you bought it. However, since we can never be sure of what the market will do at any moment, we cannot forget the importance of a well-diversified portfolio in any market condition.

For establishing an investing strategy that tempers potential losses in a bear market, the investment community preaches the same thing the real estate market preaches for buying a house: “location, location, location.” Simply put, you should never put all your eggs in one basket. This is the central thesis on which the concept of diversification lies.

10 Ways You Should Invest Your Company’s First Profits

You may have heard of the tradition of saving your first dollar from your first sale. Mom and pop stores have them framed near cash registers or tucked lovingly into office drawers. It serves as a symbol for the toil and joy of building a business.

So you’ve earned your first dollar(s), and now you’re wondering what to do with them. Here are some of the best ways to invest and reinvest your company’s first profits.

1. Business improvement

Most startups spend their initial profits on reinvesting, and your company should be no exception. The key to reinvesting is to have a sound strategy, not to necessarily devote a certain percentage of your profits. Your reinvestment efforts should be in line with your current strategic plan.

Most business owners choose to reinvest their profits in business improvements – for example, infrastructure, equipment, streamlining business processes, or finding ways to improve the customer experience. These are all valuable strategies because they can increase your profits in the long run, allowing you to expand business operations.

2. Marketing

Digital marketing is always a smart investment of profit when it’s done well. Many of the startups I’ve seen over the years wait several months before they do any real investment into marketing. Sometimes it’s because they just don’t know where to start. You can’t lose by investing in performance metrics. Always keep track of your campaigns and adjust them accordingly. If you have little experience with marketing, consider outsourcing to an agency.

3. Invest in your team.

Building a better workforce will streamline your business, improve productivity, and create the kind of company culture that will attract hard workers. Reinvest profits in human resources initiatives such as training and continuing education. As your company grows, you can expand to include benefits packages and other discounts. Investing in your employees early on will help you reduce turnover. Keep in mind, hiring a new employee costs a lot of money – about six to nine months of a lost employee’s salary, on average.

4. Invest in yourself.

Find ways that you can improve yourself in subject matter expertise. For example, many startups are spearheaded by people with a good eye for innovation but who don’t necessarily know how to manage people. This is actually one of the most common criticisms founders face. Classes on management or basic business operations can be invaluable for people who don’t come from a formal business background.

5. Hire help

To that end, entrepreneurs are also guilty of trying to wear all of the company hats. Recognize when you need help, and ask for it. New hires can provide the technical skills and know-how to keep your operations running smoothly. This is one of the best investments you can make in the long run.

6. Consider coaching

If you’re unsure of how you should create your strategic plan, consider using some of your profits to hire a career coach. These professionals can provide guidance on executive leadership, creating a business strategy, talking to investors, and handling conflict between employees, among other things.

7. Outsource your least favorite tasks.

We all have a dreaded task that sucks some of the joy out of running a business. For some, it’s balancing the books or running payroll. For others, it’s assessing and tracking the efficacy of marketing campaigns or content creation for the company blog. Fortunately, you can outsource most of these to third parties. Find someone qualified and hand over the task.

8. Improve your SEO.

First, if you launched a company without a website, create one. Second, spend some time, money, and energy getting that website to the top of Google’s Search Engine Result Pages (SERPs). For the uninitiated, Search Engine Optimization is a tricky beast, but you’ll get the hang of it (or find someone qualified and outsource it). The small business administration offers a useful primer on the topic, as well as other resources. If you’re looking for a way to see a significant return on investment in a relatively short time, this is one way to do it.

9. Create a cash buffer.

While reinvesting in your business is great (and necessary), make sure you’re sitting on enough cash to handle problems that may arise. While your business insurance policies will cover disasters and catastrophes, it’s always advisable to have liquidity available for when you really need it.

10. Don’t diversify too early.

Many budding entrepreneurs make the mistake of diversifying their investments too early in the process. 401k plans are great, but you could be using those dollars to grow your business. Stocks and bonds are important, but so is building your empire. To invest your first profits, start with what you know. No one knows your business as you do, so it seems like the natural place to start.

Diversification and 401ks can come later. For now, enjoy your first profits by putting them back into the fruits of your labor. Take care of your employees and customers, and your profits have a better chance of growing organically. With time and proper investment, you’ll soon be poised to open another location or expand to a new market. Reinvestment will always be a smart business move.

Smart Investment on Small Budget

Many people are often confused about investments. There is a general belief that investment means having a large amount of money from the start. However, the truth is that any investment can be initiated with even a small amount of dollars. A small business is considered the best investment for those with a small budget. This is because they provide you a better return in a shorter period of time than other investments do.

To start a small business, you first have to find a location that is conducive to your business. You also need to get a license for the business and get a place to operate from. Once you have these things in place, you can now think about starting your business. When you are starting a small business, you can begin by doing some marketing research to figure out how much you need and can invest in the business. It is best that you don’t spend a lot initially so that you don’t get overwhelmed by the initial costs of starting your small business. Once you have an idea on how much you can spend on the business, you can go to your local bank to ask for loans. You can also consider getting a small loan from your friends and relatives.

The main purpose of starting a small business is to earn money. In order to earn money, you have to make sure that you invest in the right things. There are several ways to make investments such as savings, stocks, bonds, mutual funds, etc. Some of the more popular investments include property and shares, real estate, gold and silver coins. A small business is also a great source of passive income because of the long-term growth it potential has. If you plan to have a home-based business, then you need to be more careful with your investments because there are chances that the market might collapse in the future. Therefore, investing in a small business is one way to ensure long-term profits.

Investing Post COVID-19

Investors, both long-term and short-term, can benefit from investing with the newer Intermediation of Financial Instruments technology from the new Financial Interaction Framework Software known as COVID-19. The product, which was released in the fall of 2020, was developed by the Financial Interaction Platform Consortium for the NASDAQ Stock Market Association and the Financial Industry Regulatory Authority.

COVID-19 is a time that an investment system that provides an investor with visual results for various investment options. It also includes a cost-benefit analysis that shows a return on investment based on how much a company charges per transaction, and in what transactions the transaction costs are spread over the total cost of each transaction. Additionally, it includes profit and loss analysis, market analysis, and historical data to provide information for short-term and long-term investors.

COVID-19’s cost-benefit analysis can be performed at any time, and the results can be viewed in real-time. As soon as the investment option is selected, the results will show how the company performs in the market. The period of time that the market performance is monitored depends on the market condition and the investment level of the investor.

Investing post-COVID-19 can show a profit or loss on the investment option selected. The amount of profit and loss will show the current value of the investment, and how the investor will make money if the investment is held through its full term. This can help investors evaluate the risk of the investment in a more effective way.

For investors, knowing how much money they stand to gain or lose will allow them to invest in the right investment and will make a more accurate and thorough analysis of their investments. Investors can use this analysis to assess whether or not they should hold on to the stock or mutual fund. If the investment is going to be held for the short term, the cost of holding will be less, but there will also be a long time for the investment to pay off.

Investing post-COVID-19 allows investors to evaluate the level of risk when it comes to their investments. To determine whether or not the investment will be a winner, an investor must examine the cost of holding the asset over its full-time frame. The risk will be higher if the investor’s trading strategy will fail. Investors can also choose the time frame of the investment so that the long-term savings will not be taken out of the short-term investment.

New investments in the field of short-term financial instruments are the driving force of today’s economy. Investors today want to be able to make instant decisions and have quick returns on their investments. With the ability to manage investments with the aid of Intermediation of Financial Instruments, these investors can be confident in their decisions.

It is vital that investors know how much money they stand to gain or lose with the new Investing Post COVID-19. To learn more about this new time invested technology, contact us today.

Investing – When is the Right Time to Invest?

Investing is a matter of life and death. There are many aspects to investing. You need to know how to invest to become rich and make a killing. A lot of people are just not that savvy about investing and end up losing their hard-earned money.

One of the main factors that can help you become wealthy in investing is knowing when to invest. When should you invest your money? What is the best time to buy and sell? Is it even possible to invest when the markets are at a peak?

Knowing the right time to invest can take a lot of research, but the research is worth it. It’s easy to become way too over excited about investing and end up losing all your money. You need to avoid this and learn to calm down before you dive into the world of investing. Here are some basic guidelines that you can use to find out when is the right time to invest.

Currency pairs: Investing in one currency pair for the entire time you can be one good way to figure out when to invest. If you want to make money you need to diversify your investment portfolio. Stocks are like currency so if you invest in stocks as your investment vehicle, it is probably a good idea to look at stocks and currencies as well. Don’t invest everything in one currency and take a look at the stocks.

Volatility Index: The volatility index is a good way to figure out when to invest. This means the higher the volatility index is, the better. The reason for this is the higher the volatility index is, the more volatile the markets are and the better it will be for you to invest.

Past and future of the market: Is this the right time to invest? Think about the past and future of the market. If the market is trending to increase, it will continue to increase. If the market is trending to decrease, it will continue to decrease. If the market is trending to change direction in an upward or downward fashion, you are going to want to invest in one of the opposite markets.

Time period: Does this market have a history? Are there historical data? If you think about this data, it will tell you when to invest. If there is no historical data, it’s best to invest now. But remember, you need to invest now to be sure you get the best value for your money.

So before you panic and end up with no money, you need to learn about the right time to invest. You may not be the best investor out there, but by getting a better understanding of when to invest, you will be in a good position to get a return on your investments.