FINANCE & TECH

13 Good Side Hustles From Home You Can Start This Weekend

If you’re looking to increase your income and you’re ready to take action, the side hustles covered in this article could all be started this weekend.Some side hustles allow you to start making money immediately and others involve building a business with excellent long-term income potential.Regardless of your situation, you’re sure to find something that’s a good fit for you.Quick Navigation 1. BloggingBlogging is one of the most popular side hustles, and you could easily get your new blog launched over the weekend. There are plenty of things to love about blogging as a side hustle, including the opportunity to start a blog that covers topics you enjoy. Equally important, blogging offers unlimited earning potential. There are plenty of bloggers making six figures per year, and some even make six figures per month. Of course, those high-earning bloggers are in the minority, but the potential to build a legit online business is certainly there.Blogging can also be a great side hustle if you’re just looking to make some extra money on the side. Many people are simply looking for a way to make an extra $500 per month, and that’s realistic with a blog.The downside to blogging is that you’ll need some patience. Growing a blog from scratch takes time, and most bloggers make very little money in the first 6-12 months. However, once you’ve gained some momentum, it’s a great way to make money online. Why You Might Want to Start a Blog:Unlimited income potential.Flexibility to work around your existing schedule.You can start a blog on the topic of your choice.Potential to make money on your own without the need for client services.Easy and inexpensive to start.How to Get StartedThe first step is to decide what you’re going to blog about. While you don’t need to be passionate about the topic of your blog, it helps if you at least have some interest in the subject. Working on the blog will be a lot more fun if it’s something you enjoy.Next, you’ll need to sign up for a web hosting account to get your blog set up. I recommend Bluehost for new bloggers because their prices are among the lowest in the industry, and it’s straightforward to get set up. The article How to Make Money Blogging as a Side Hustle is a great guide you can follow.2. Start a YouTube ChannelStarting a YouTube channel is another enticing option that offers many of the same benefits as blogging. It’s a flexible opportunity that offers significant income potential. The difference is, you’ll be creating content in video format instead of written format. If you enjoy being on camera more than you enjoy writing, YouTube may be a better opportunity than blogging for you.The highest-earning YouTubers are making tens of millions of dollars per year, and the numbers keep growing each year. As the amount of video content consumed by the average person continues to increase, the earning potential for YouTubers will also increase.Like starting a blog, growing your YouTube channel will take time, and you aren’t likely to start making money right away. The most common way to monetize a YouTube channel is through the YouTube Partner Program, which allows you to make money from ads on your videos. You’ll need at least 1,000 subscribers and 4,000 watch hours to be eligible for the program. Those numbers may seem high, but many active YouTube channels can reach that level within a few months.Why You Might Want to Start a YouTube Channel:Unlimited income potential.Surging demand for video content.Less competition than blogging.Can be a lot of fun.How to Get StartedYouTube for Beginners is a course from Skillshare that was created by an experienced and successful YouTuber. It teaches everything you need to know to start and grow your channel.3. Online SurveysThe first two options I’ve mentioned offer excellent long-term income potential but will take some time before you start making money. Taking online surveys is the exact opposite. You’re not going to get rich by taking surveys, but this is a highly flexible side hustle, and you can start making money immediately.If you’re looking to make an extra $100 per month, or maybe a few hundred dollars per month, taking surveys could be a good option. There are several survey websites and money making apps you can use to start making money right away. Some of the best choices include:Surveys are appealing because anyone can do this side hustle. You don’t need any particular skills or experience to make money in your spare time.Why You Might Want to Take Online Surveys:Extreme flexibility: take surveys whenever you have a few minutes to spare.Anyone can do it. No specific skills or experience required.Start making money right away.Sites like Swagbucks offer lots of ways to make money in addition to surveys.How to Get StartedGetting started is quick and easy. Create a free account at the top sites like Swagbucks and Survey Junkie, complete your profile, and begin taking surveys. Each site will have different rules regarding the amount of money or points you need to earn before withdrawing the cash or redeeming points. Swagbucks allows you to redeem points as soon as you have enough for a $3 gift card, making it one of the best options.4. Flea Market FlippingIf you enjoy finding amazing deals at yard sales, flea markets, auctions, estate sales, or thrift stores, becoming a flipper could be the right choice for you. This side hustle involves buying underpriced items and reselling them for a profit.Finding valuable items at places like yard sales and flea markets is pretty easy with a little effort. Many people are simply looking to get rid of their stuff, and you can find some great deals. Most flippers resell the items online through eBay, the Facebook Marketplace, Craigslist, or other similar sites and apps. Flipping is a flexible side hustle you can do whenever you have the time or need to make some extra money. It’s also possible to start earning a profit very quickly.Why You Might Want to Become a Flipper:Can be fun if you enjoy finding great deals.Good income potential.You can learn the skills quickly.Great fit for people who don’t want to spend all of their time online.How to Get StartedTo get started, all you need to do is head out to some yard sales or flea markets this weekend and look for underpriced items to buy. It’s best to start with products that you know well. With a little bit of experience, you’ll get more familiar and more comfortable with a broader range of products. See this list of the easiest things to flip for profit as a guide for getting started.5. Furniture FlippingMost of the items you buy at yard sales or flea markets to flip will involve minimal work to get them ready to sell. You might clean up an item or make minor repairs, but in most cases, you’ll be making money primarily by finding things that are worth more than they’re selling for. Flipping furniture is different because it requires putting in several hours of work to restore the item before selling it. The idea is to find a low-priced (or free) piece of furniture that has the potential to be much more valuable if it is restored or refinished. Solid wood furniture is ideal because you can increase the value simply by painting or staining it. Upholstered furniture can be reupholstered for a completely new look, increasing the value relatively quickly.If you enjoy working with your hands and turning something old and unwanted into something valuable, this could be the perfect opportunity for you. Learning how to repair or restore furniture is not that difficult, and there are plenty of YouTube videos that will teach you for free.You can find items to flip at yard sales or drive around and look at pieces out for the trash. Once your item is ready to sell, the Facebook Marketplace and Craigslist are ideal for reaching people in your local area.Why You Might Want to Flip Furniture:Work whenever you have time or whenever you need money.High demand for restored furniture.Anyone can learn the skills.Start making money quickly.How to Get StartedTo get started, you’ll need to find your first piece to flip. Take a look around your home or apartment, and you may already have an ideal item. Working on a piece of furniture you already own is a perfect way to start. It means that you won’t have to spend any money buying an item, and it gives you a chance to make a profit quickly. If you don’t have anything, head to some yard sales this weekend and see what you can find.6. InvestingOver the past year, investing as a side hustle has become increasingly popular. Stories of part-time investors making huge sums of money have been in the news a lot. Of course, the stock market’s trajectory over the past year made that more manageable, but this is a side hustle you might want to consider if you enjoy personal finance and investing.It’s critical to remember that investing comes with risk, and you shouldn’t invest money that you can’t afford to lose. However, there’s also a substantial upside if you have success with it.Platforms and apps that are ideal for new traders include:Of course, investing in the stock market isn’t the only option. You could also invest more passively in real estate or other types of alternative investments. Some platforms you might want to consider include:You can also find plenty of alternative investment options here.Why You Might Want to Start Investing:Excellent long-term potential.Opportunity for exponential growth.Valuable skills to learn.How to Get StartedTo get started, decide which type of investing you want to do. This beginner’s guide is a good resource for anyone who wants to get started with the stock market.7. PhotographyAre you a hobbyist photographer? Would you like to start making money from that hobby? There are several different ways to make money with photography, but we’ll look at two great options for getting started as a side hustle: client photo sessions and stock photography.No matter where you live, there are people in your local area looking for a photographer. You could take photos of families, engaged couples, high school seniors, sports teams, and much more. Making some part-time money by offering photography services is relatively easy. Scaling it to a full-time income is much more challenging. If you’re looking for a way to make a few hundred dollars per month on the side and you have some photography skills, consider offering your services to others.Another option is to upload your photos to stock photo websites like Adobe Stock, Shutterstock, and many others. You’ll be able to earn money every time a customer downloads one of your photos.The stock photography market is highly competitive, so it’s not easy to make a considerable amount of money. But if you’re looking for a way to make a few hundred dollars per month, it’s very realistic. To have success, you’ll need to upload many photos and keep taking and uploading new pictures all the time. Why You Might Want to Become a Photographer:Monetize your existing hobby.Variety of ways to make money.Potential to grow into a full-time business.How to Get StartedChoose whether you want to offer services to clients or upload your photos to stock marketplaces (or both).For client work, the best way to get started is with friends and family. Talk to everyone you know and offer a low price to begin to get some business. With a little bit of experience, you’ll get to build up your portfolio and benefit from word-of-mouth advertising.To get started with stock photography, choose a platform you want to use. Ultimately, you’ll want to upload your photos to several different sites to maximize your income potential, but it can be helpful to start with just one, so it’s not overwhelming. Each stock photo site will have an application process to become a contributor. You’ll probably need to upload some samples, so get ten of your best photos ready to go.8. FreelancingYou can offer many different services as a freelancer, including writing, editing, proofreading, web or graphic design, coding and development, marketing, and more.Freelancing is a great way to make money because you can use the skills you already have to start making money quickly. You’ve probably developed some skills at a previous job (or maybe your current job), or even through a hobby.The income potential with most freelance services is also outstanding, making it ideal for growing to a full-time income if that’s something you want to pursue.Why You Might Want to Start Freelancing:Lots of possibilities and many services you could offer.Monetize the skills and experience you already have.Excellent income potential.Flexible working hours.How to Get StartedMy article How to Make Money Online for Beginners covers the steps to follow if you want to start as a freelancer.9. Virtual AssistantWorking as a virtual assistant or VA is one of the best opportunities available in 2021. Many businesses are looking to outsource more work, and as a VA, there are numerous different services you could offer.Many VAs do things like general administrative tasks, blog editing, moderate forums or Facebook groups, management of social media profiles, and much more.Working as a VA is a very flexible side hustle that fits around your existing schedule. It’s something you could do part-time or work on growing your client base and turn it into a full-time business.Why You Might Want to Become a VA:High demand for talented and reliable VAs.Work as much or as little as you want.Monetize your existing skills.Good income potential.How to Get StartedGina Horkey’s Fully-Booked VA is an excellent resource for anyone who wants to make money as a virtual assistant. There’s training for all aspects of running your business, and you’ll be able to learn from an experienced and successful VA.10. Self-Published AuthorIf you like to write, you might want to consider becoming a self-published author as a way to make some extra money. With print-on-demand platforms like Amazon’s Kindle Direct Publishing (KDP), becoming an author has never been easier. There’s no need to send your writing to a bunch of publishers hoping to hear back.Through KDP, you can sell e-books and paperbacks without the need to spend any money on inventory. The paperbacks are printed as they’re purchased, and Amazon handles all of those details.You can write whatever type of book interests you, covering any topic or genre you choose. You probably already have some experience you could use to write a book that others would buy.Why You Might Want to Become a Self-Published Author:Make money doing something you enjoy.Making money as an author has never been more realistic.Completely flexible. Work whenever you want.Potential for passive income.How to Get StartedFrom First Draft to Bestseller is a detailed and thorough course that teaches how to make money as a self-published author.11. Sell on EtsyIf you’re crafty, you might enjoy selling on Etsy. You could sell handmade or vintage items, or even design and sell digital products like printables. Selling on Etsy is a side hustle that may take some time to become profitable because you’ll need to work on getting exposure and growing your shop. The long-term potential is solid, but you’ll probably need to put in a lot of work early on. Why You Might Want to Start an Etsy Shop:Monetize your crafty hobby.Work around your existing schedule.Excellent income potential.How to Get StartedThe course Building an Etsy Shop That Sells is an excellent starting point. Beginners will learn all of the necessary details related to getting started on Etsy.12. MicrotasksThe opportunity to make money with microtasks is very similar to taking online surveys. You’re not going to make a lot of money per hour, but what it lacks in income potential, it makes up in terms of flexibility.Several websites like Amazon’s Mechanical Turk and Clickworker pay people to do small, simple tasks that take no more than a few minutes. Some survey websites like Swagbucks also offer a variety of tasks you can do for money or rewards. You can work on microtasks whenever you have some spare time, as much or as little as you want. And like surveys, anyone can do the work. You don’t need skills or experience, aside from fundamental computer skills.Why You Might Want to Do Microtasks:Extreme flexibility. Work whenever you want, as much or as little as you want.Anyone can do it. No skills or experience needed.Start making money right away.How to Get StartedTo get started, create a profile at a microtasking site like MTurk or Clickworker. The signup process is easy, and you’ll be able to start completing tasks very quickly.13. Rental BusinessOne of the more overlooked side hustles involves renting out your stuff. There are many different things you could rent, including:ToolsBaby gearCar, truck, or bikeRVStorage space Room or unit in your homeParking spaceWith a rental business, you’ll be making money because of your assets, not because of the amount of time you’re working. If you have things that people are willing to pay to use, you might be able to make a decent amount of money on the side without working many hours.Why You Might Want to Start a Rental Business:Turn things you’re not using into income-generating assets.Make money from your assets, not trading your time for money.Lots of different things you could rent out.How to Get StartedTake a look at the things you already have. Try to find anything that might have value that you’d be willing to rent out. You can use a website like Fat Llama to list just about anything for rent or use a specialized platform like RVshare to rent out a specific type of item. Use Airbnb to rent a room or vacation home.Final ThoughtsIf you’re interested in making some extra money outside of a job, why not take action right away? This article covers 13 good side hustles you could start this weekend, and most of them involve minimal startup costs or no cost at all.Pick one that seems like a good fit for you and commit to taking action this weekend! Related Posts […]

FINANCE & TECH

Top 4 Things I Love About Dave Ramsey Baby Steps

Dave Ramsey has helped thousands of people around the world through the 7 Baby Steps for financial peace and freedom.The process works.His book titled the Total Money Makeover has had some impressive sales numbers. The book has sold over 5 million copies and has been on the Wall Street Journal Best-Selling list for over 500 weeks. (That data is from August 2017, over 4 years ago, so it’s sold more by now.)So, we know that the 7 Baby Steps work. There’s a lot to love above the process, and we will address 4 of those attributes here. We will also cover 4 things that we think could be updated this year (as it has been almost 30 years since the Baby Steps were created).Quick Navigation What Are The Baby Steps?Before we begin, let me lay out what the Baby Steps are for those who are unfamiliar with them:Save up $1,000 to start an emergency fund.Pay off all non-mortgage debt using the debt snowball.Save up 3 to 6 months of expenses to complete your emergency fund.Invest 15% of household income into Roth IRAs and pre-tax retirement accounts.Work on college funding for children.Pay off your mortgage early.Build wealth and give!Now, let’s address the 4 things we love about Dave Ramsey Baby Steps. 1) It’s Evident How Intentional Dave Ramsey Was In Creating The Baby StepsI doubt there will ever be a change to the Baby Steps because it is clear how much thought went into comprising the steps. The 7 Baby Steps really do work. There are three great reasons why the plan actual works:a. The Baby Steps Force You To Get Gazelle Intense When It Comes To Paying Off DebtI’ll mention this later, but I really appreciate that Dave Ramsey keeps the emergency fund smaller to force you to be gazelle intense. Having such a small emergency fund of $1000 really does force you to get out of debt faster because having too much money in the bank can cause you to stagnate. b. Dave Strongly Encourages Your Behavior ModificationToo many financial gurus don’t give it to you straight. They may tell you that you need to invest in real estate or cryptocurrency.  It often feels like a lie that you can achieve financial freedom without putting in a lot of work.Dave Ramsey comes off as blunt many times, but he forces people to confront that the debt is often our fault (with some exceptions). His bluntness, along with the Baby Steps, forces you to self-reflect.c. The Plan Is Simple And Shows How You Need To Focus On One Step At A TimeI’ll mention this more below, but it’s evident that his focused intensity on the Baby Steps plan helps you stay focused on the task. You complete the first 3 steps consecutively and the following 4 steps concurrently in a prioritized order. You don’t have to multitask. Also, you don’t need to think about another step. You just need to focus on the step at hand.2) Dave Ramsey Is Right That You Need A PlanDave Ramsey has many helpful quotes. One of my favorite of Dave Ramsey’s quotes is, “You must plan your work and then work your plan”. Too often we go through life without a plan, but we expect that everything is going to work out just fine. I remember the first time I budgeted.  I thought that I spent a certain amount of money on eating out each month, only to realize that number was much higher.We need plans. It could be a debt payoff plan to stay on top of your debt. It could also be a budget to understand your income and expenses. Or it could be a plan to pay off your home early as per Baby Step 6.Dave Ramsey understood that which is why the Baby Steps plan is so useful. You stick to the plan and you get out of debt. Voila.3) The Baby Steps Get Progressively More ChallengingOne thing I noticed early was that the Baby Steps seems to get progressively more challenging. This helps build momentum. It is much easier to save $1000 than to pay off your house early. By starting and taking baby steps, the baby steps themselves actually don’t feel very babyish. Paying off your home early per Baby Step 6 feels much more like a big kid step, but it’s still just a Baby Step like the others. It’s impressive how Dave structured these baby steps.4) The Community Around Dave Ramsey Baby Steps Is IncredibleYou don’t have to look far to realize that the community around Dave Ramsey is incredible. You can take a Financial Peace University class at your local church. These classes are excellent to encourage you and help keep you accountable while you eliminate debt. You’ll learn the baby steps inside and out with others in your community. You can also be a part of a vibrant Dave Ramsey Facebook Community. Personally, I am a part of many of these communities where I receive a ton of encouragement when sharing wins and losses in the process of debt elimination.There’s a lot to love about the Dave Ramsey Baby Step method.Now, let’s cover a few things that could use a refresh.1) Can Creating A Budget Be Baby Step #1?I am a budget fanatic. I would love to see a Baby Step dedicated to budgeting. Why? Because budgeting helps you understand where every dollar goes. I used “every dollar” like that on purpose because Dave Ramsey himself created a budget app called EveryDollar for that very purpose.What better way to understand how much money you have to put towards your emergency fund than starting with a budget.I am not sure why Dave doesn’t start with a budget, but I would be keen to start the Baby Steps with creating one.2) Dave Ramsey’s Emergency Fund May Need A RefreshDave Ramsey’s emergency fund calls you to save $1,000 in Baby Step 1. Is $1,000 enough? It really depends. First, adjusted for inflation, $1,000 in 1990 is now worth $2,043.26 per the US Inflation Calculator.There’s a plethora of questions you can ask yourself when considering whether the emergency fund is big enough, such as:How much debt do you have to pay off?Do you own a home?How old is your car?How many kids do you have?Do you have insurance?Another question I like to ask is, “where do you live?”. Personally, my family and I live in the Bay Area, California where the cost of living tends to be quite high. $1,000 wouldn’t get us very far.3) Is The Snowball Method The Best Way To Pay Off Debt?As a refresh, the debt snowball method means that you line up your debts from smallest to largest and pay your monthly extra to your smallest debt first then snowball into higher debts. The debt avalanche method is where you line up your debts from the highest interest rate and use your monthly extra to pay off the highest interest first. The savvy debt method is where you pay off 1-2 of your smallest balances first via snowball before reverting to the avalanche method to save the most in interest.Dave Ramsey loves the debt snowball method. It has worked for many people, so why wouldn’t he? He feels the opposite for the debt avalanche where he mentions that it doesn’t work.The challenge is that you could lose thousands in interest if your smallest debts also have the smallest interest rates. This can be possible because higher debt amounts carry a higher risk to the lenders, meaning potentially higher interest rates.You can see how much the snowball method loses in comparison through this debt payoff calculator which compares interest paid from snowball to savvy methods. For reference, we are comparing 4 debts: $23,000 at 22%, $18,000 at 19%, $12,000 at 9% and $8,000 at 7% interest rate. The monthly payment is $1,825.00In this example, you would lose over $3,500 in interest by choosing the snowball method.Does that mean that the snowball method is always worse? Absolutely not. The snowball method may provide the psychological benefit that you need to exterminate your debt.You choose the debt payoff app and debt payoff method that is best for you.4) Should You Follow Dave Ramsey’s Advice And Pay Off Your House Early Or Invest?Dave Ramsey loves mutual funds and paying off your home early. My question is what if your mutual funds are making so much more in interest than paying off your home would save you?Wouldn’t the prudent thing be to continue to pay off your home and then get the higher interest from investing in mutual funds?  It’s not a one size fits all solution, but it is something to consider.There are also often benefits of not paying off your home early such as interest paid being tax-deductible. That said, you would really need to determine whether you would make more money from mutual funds than saving from interest payments to determine what’s best for you.What Do You Think About The Baby Steps?The Dave Ramsey Baby Steps have helped thousands around the globe. What do you like about the Baby Steps? Do you agree or disagree with what we would change in 2021? Related Posts […]

FINANCE & TECH

How To Develop Multiple Streams Of Income

If you want to build wealth, developing multiple streams of income should be a priority.In addition to the pay from your full-time job, you could be making extra money from a side hustle, other business ventures, as well as from investments.We’ll take a look at the different types of income, why it’s essential to be making money in a few different ways, and how to develop multiple streams of income so you can secure your financial future.Quick Navigation The Different Types of IncomeWhile there are many different ways to make money, not all of them require the same effort or time commitment. We can break them down into three distinct types of income:Active IncomeActive income is earned by working and investing time. The money you make is a direct result of the time and effort you put in. If you stop working, the income will also stop. Of course, your full-time or part-time job falls into this category. Most side hustles are also examples of active income. The hours may be more flexible than a full-time job, but your ability to earn money through the side hustle still requires you to put in the time and work.Passive IncomeAs the name implies, passive income is money you earn without having to work for it. The money will continue to come in, even while you’re not actively working on it. You can think of passive income as “set it and forget it” or automated income.Although it’s “passive,” that doesn’t mean that no work at all is involved or required. Many passive income streams require work up front, sometimes a significant amount of work. But once that work is done, you can pull back on the time and effort you put in, and the income will continue to flow. Many types of passive income do require you to put in some time or effort to keep making money. However, that investment of time should be minimal for it to be considered passive income.The key is, the income is not directly tied to the amount of work or effort you’re putting in. There is some leverage in place that contributes to the ability to generate cash flow.Passive income is generated from royalties, dividends, and interest. Businesses that pay you a percentage of revenue or profits every month are also considered passive income streams. An online business that you set up a year ago may continue to make money each month with minimal ongoing effort.Portfolio IncomePortfolio income is earned as a result of your investments. You may have an investment portfolio that generates cash flow through dividends or interest income thanks to the money you’ve invested in the past.Your investment portfolio can also include the cash you’ve put away in savings accounts, bonds, or CDs. The money will still be working for you while it’s sitting there earning a little bit of interest every month (although not very much with the current interest rates). You’re not doing anything to earn the money, but it continues to flow for you anyway.Portfolio income requires zero effort, separating it from passive income streams that may require a small time commitment. That means there is no limit to how much you can grow your portfolio income since it requires no time or effort from you.Why is it Important to Have Multiple Streams of Income?We all know that having multiple income streams is good, but let’s look at three specific reasons why this is true. These reasons may be enough to encourage or inspire you to make it a priority to add a new source of income.Increase Your Income PotentialGenerating cash flow in several different ways gives you the potential to increase your overall income. Instead of your full-time job accounting for all of your income, you could see a significant boost by making money in a few other ways. Even if those other sources only account for a small amount of money, it can all add up (especially when you’re investing the extra money, which we’ll cover later).Let’s look at it this way. If you have a salary of $75,000 at your full-time job and you have a side hustle that generates $1,500 per month (a very realistic number), that would increase your income to $93,000 per year. That’s an increase of 24% just by doing some extra work in your spare time. If you add some portfolio income by investing the extra money you’re making, the numbers get even better.Security Through DiversificationWe’ve seen in the past that anything can happen. No one expected a worldwide pandemic to cause the unemployment rate in the U.S. to skyrocket like it did last year. Thankfully, most people who lost their jobs are back to work now, but not all of them are. You may associate a promising career and a full-time job with security, but there really is no such thing. There are always forces outside of our control that could wreak havoc on our financial lives at any time.One of the best ways to improve the security of your income is to make money in a few different ways. If something unexpected happens and you lose your primary source of income, at least you’ll have some money coming in through other methods.Work On Things You EnjoySome people love their full-time jobs, but most people work out of necessity more than passion. We work because we have bills we need to pay and a family to support. Of course, you have some say over what you do for a living, but most likely, there are other things you’d prefer to do with your time if you had the option.One of the best things about having a side hustle is the freedom to choose what you pursue. There are plenty of different options, and it’s entirely possible to decide to work on something you like doing. The work is much more enjoyable and a lot less like a job when you’re doing something fun.Even aside from the extra income, you may find a side hustle very rewarding because you get to do something you enjoy.How To Develop Multiple Streams Of IncomeIf you’ve decided that you’re ready to start working on some additional ways to make money, here are the basic steps you can follow.Step 1: Focus On Your Job FirstYour full-time job probably accounts for the vast majority of your income. It’s essential to keep this in mind and continue to prioritize your job. You don’t want your career to suffer because your efforts to make money in other ways are taking away from the focus on your primary responsibilities.Focusing on your job may mean that the number of hours you’re able to devote to a side hustle is limited, but that’s ok. It may also impact the specific schedule and times that you’re able to work on the side hustle since you can’t be doing two things simultaneously.You may also be able to increase your overall income by getting a raise at your job. Take a look at what you’re making now, the raises you’ve received in the past, the responsibilities you have, the results you’ve produced, and the amount you could make with a similar job at another company. If you feel like higher pay is justified, consider asking for a raise. See our article Tips for Negotiating a Better Salary for plenty of guidance and advice.If you cannot increase your income from your current job or employer, you may also want to consider changing jobs. Unfortunately, sometimes the best way to get a raise is to move to a different employer.A higher-paying job will allow you to make more money without working additional hours. This would increase your overall income and leave time for a side hustle that could raise your income even more.Step 2: Choose A Side Hustle That Fits With Your Interests And ScheduleOnce you’ve maximized what you’re able to make through your full-time job, the next step is to increase your income with a side hustle. There are countless different ways to make money in your spare time. Ideally, you’ll be able to use your existing skills or experience and work on something you enjoy.Choosing a side hustle that interests you is crucial because after working a full-time job, you’ll quickly hate your side hustle if it’s not fun. By incorporating your interests into a side hustle, you’ll be much more likely to have long-term success with it and less likely to quit and give up.You’ll also need to consider your schedule and the hours you can devote to a side hustle. Some side hustles are more flexible than others, and regardless of your existing schedule, you’ll have some options.Step 3: Develop An Investing Plan For The Extra Money You’re MakingOnce your side hustle is generating money, you’ll see an increase in your overall income. Since the purpose of this is to grow wealth, it’s essential to use that extra money wisely, which involves investing.With a solid investing plan, you can add portfolio income that won’t take any time or effort from you.Some investments produce dividends that can be paid out in cash, increasing your income or cash flow. These investments are ideal if you need to supplement your income or look to live off your investments (retire). However, if the extra income isn’t critical to you right now, it’s best if you opt to reinvest the dividends. Reinvesting will allow your portfolio to grow and compound faster, creating better long-term results.In just a minute, we’ll take a look at some specific types of investments you might want to consider.Side Hustles For Extra IncomeWhile there are many ways to make money in your spare time, let’s take a look at a few of our top recommendations.1. Start A BlogBlogging can be an excellent side hustle for several reasons, including:You can start a blog on the topic of your choice, meaning you can work on something you enjoy.Blogging offers a very flexible schedule, and you can work on the blog whenever it fits around your existing commitments.The startup costs are extremely low. The only expenses that are absolutely required are a domain name and web hosting. You can get started for less than $100 for the first year.The income potential is outstanding. A blog is a legit online business that could turn into a full-time income.There’s potential to earn passive income. Building a successful blog requires a lot of work, but there are some passive elements to it once you have an established audience. You can increase your income while cutting back on the hours you work.It’s important to point out that there are also some downsides to blogging. The most significant drawback is that you’ll need to be willing to put in a lot of work before you see the payoff. Most bloggers don’t make much money in the first 6-12 months. There’s a lot of upfront work, but it can pay off down the road.If you want to start a blog, see How to Make Money Blogging as a Side Hustle.2. Work As A Virtual AssistantWorking as a virtual assistant (VA) is one of the best side hustle options right now. Many businesses and entrepreneurs are looking to outsource more work to reduce costs, and there’s high demand for quality VAs.You could offer many different services as a VA, and chances are, you already have some skills that you could put to good use. Your services might include things like:Managing social media profiles for your clients.Moderating Facebook Groups or online forums.Writing, editing, or proofreading blog posts.Creating images and graphics to be used with blog and social media posts.Customer service by email, online chat, or phone.Those are just a few examples, and there are many more possibilities.Working as a VA also allows you to create your schedule and work hours convenient for you. It’s something you can do part-time for a few hours per week or scale up and turn it into a full-time business.If you’re interested in starting a profitable business as a VA, Gina Horkey’s Fully-Booked VA is an excellent resource that would be a wise investment for your money.3. FreelanceOne great way to make extra money is to freelance. Many people start freelancing part-time by doing something they’re skilled at and enjoy, like writing or graphic design. It can be a fun job that pays well while working on your schedule around other responsibilities.Chances are, you already have some skills and experience to use as a freelancer.At first, it might seem impossible to find clients as a beginner freelancer, but it’s not as difficult as you might think. Most freelancers can get their first few clients through their existing personal or professional network. There are also many websites (including Upwork and Fiverr) designed for the sole purpose of connecting freelancers and clients.Freelancing would be classified as active income and doesn’t have the same potential for passive income that you would get by starting a blog. However, freelancing can be one of the most lucrative side hustles because you have the potential to earn an excellent hourly rate. Many of the most popular services for freelancers, like writing, design, coding, and marketing, are valuable services. Many clients are willing to pay well for a talented freelancer that provides quality work.Purchasing access to a course could be a very worthwhile investment if you want to start a business as a freelance writer. Earn More Writing, created by six-figure freelance writer Holly Johnson, is one of the top courses available for freelance writers.4. Start A YouTube ChannelOnline video is extremely popular, and the amount of time people spend watching videos on their mobile devices is constantly increasing. Starting a YouTube channel is an excellent side hustle option to take advantage of this trend.Creating a YouTube channel offers many of the same benefits as starting a blog (the ability to choose a topic you like, unlimited income potential, the possibility for passive income). The difference is, with a YouTube channel, you’ll create video-based content instead of written content.YouTubers can make money in a few different ways:Advertising. YouTube’s Partner Program allows you to make money from the ads display in your videos.Sponsorships. You can find sponsors on your own and charge them for a mention in your videos.Affiliate Programs. Promote the products and services of other brands within your videos and the text description of your videos.YouTube for Beginners is a course from Skillshare that was created by an experienced and successful YouTuber. It teaches everything you need to know to start and grow your channel.5. Write And Sell E-booksAnother option is to become a self-published author by writing and selling your own e-books. Becoming an author is easier than ever, thanks to platforms like Amazon’s Kindle Direct Publishing. You can write your e-book and get it in front of Amazon’s massive audience to earn extra money.As an e-book writer, you can write about whatever topics interest you or whatever you know well. You can also write many different types of e-books, from fiction to fantasy to educational.While Amazon is a popular platform, you can also sell your e-books on your website or blog. If you have a long-term approach, building your own website is a good idea since you’ll be in complete control, and you won’t need to split the revenue with Amazon. Services like SendOwl and ThriveCart make it very easy to sell your digital products.Writing and selling e-books also provides the potential for passive income. You could write an e-book that continues to generate revenue for several years. Once you’ve written the book, most of your work is done. Of course, you can scale up by writing multiple books to increase your earning potential.From First Draft to Bestseller is a detailed and thorough course that teaches how to make money as a self-published author.Investments For Creating Streams Of IncomeSo far, we’ve looked at increasing your income through your job or a side hustle. Once you’re making more money, you’ll need to use it wisely to have a long-term impact on your finances.The single best thing you can do with your extra income is to invest it. Investing allows your money to grow, and many investments have the potential to make money for you passively.Although there are endless options for investing, here are some of the best choices if you’re looking to create passive portfolio income.Real EstateReal estate has proven to be an excellent investment option, and many millionaires and billionaires have made their fortune primarily through real estate.There are several different ways to invest in real estate, including owning rental properties, flipping houses, REITs, and crowdfunding.Investing in real estate can be done on a small scale, or you could make it your full-time job by owning and managing several income-generating properties.If building portfolio income is your goal, be sure to invest in ways that don’t require any work or effort from you. Being a landlord can require a lot of work, so it’s better as a side hustle than a source of portfolio income.Crowdfunding is an excellent option for anyone who wants to invest in real estate without the headaches that come with managing properties or dealing with tenants. Here are a few of the leading platforms:FundriseFundrise makes it easy to add real estate to your investment portfolio. You can get started with as little as $500. Investors’ money is pooled together, and Fundrise purchases, improves (in some cases), and manages properties before eventually selling them, hopefully for a nice profit. Rather than investing in a single property, you’ll be investing in a portfolio of properties.With an investment of $5,000, you can choose from three different core portfolios: long-term growth, supplemental income, or balanced.Read our Fundrise review for more details.GroundfloorGroundfloor is another platform that is ideal for those who are new to real estate investing. You can get started with as little as $10.Unlike Fundrise, where you’re investing in a portfolio of properties, Groundfloor allows you to choose specific projects that you want to invest in. Most of them are residential house flips. You can earn an average of 10%+, but there is more risk since your investment is in a single project that might not go as planned. However, with the low minimum investment, you can build in your diversification by investing in several different projects rather than just a single one.Fundrise is ideal if you’re looking for a low-maintenance way to invest in real estate. Groundfloor presents an excellent opportunity as well, but you’ll need to spend some time reviewing and choosing the projects to invest in.Read our Groundfloor review for more details.Dividend StocksDividend stocks are a great way to generate passive streams of income. When a company earns a profit, it can either reinvest it into the business, pay dividends to shareholders, or a combination of both. Dividends can be received as cash or used to reinvest in the stock (to receive even more dividends).Many companies have established long track records of paying out dividends to investors. Investing in these companies is an ideal way to create portfolio income.You can invest in dividend stocks by using any platform that allows you to trade stocks. Here are a few of our favorites:RobinhoodRobinhood was the pioneer of the movement for commission-free trades. You can trade stocks, ETFs, options, and cryptocurrency with the Robinhood app.Those who are new to investing will appreciate the ease of use that Robinhood offers. You’ll need to do some research to find the companies you want to invest in, and this list of dividend stocks is an ideal starting point.Read our Robinhood review to learn more.WebullWebull is a Robinhood alternative that also offers free trades. One of the main differences is that Robinhood allows you to purchase fractional shares of a stock if you don’t have enough money to buy a full share. Webull does not currently support fractional shares.Another key difference is the advanced reporting and data that are available with Webull. Robinhood’s ease of use means that it’s missing out on some of the features that experienced traders may appreciate.Read our Webull review to learn more.Alternative InvestmentsThe term “alternative investments” can include many different types of investments outside of stocks and bonds. Here are a few that you may want to consider (you can see our article on alternative investments for more options):FarmlandIt may not be the first investment that comes to mind, but farmland has an excellent track record of producing double-digit returns with below-average risk or volatility. FarmTogether is a crowdfunding platform (for accredited investors only) that allows you to invest in specific farms throughout the United States.WineWine is another type of alternative investment that has historically produced solid results with very little correlation to the ups and downs of the stock market. Vinovest makes it possible to invest in an algorithmically selected portfolio of wines for as little as $1,000.ArtworkFine art has the potential to be an excellent investment, but very few people have the money to purchase a piece of blue-chip art that may be worth millions of dollars. Masterworks allows anyone to invest in art for as little as $20.Build Multiple Streams Of Income To Build WealthIf you want to build wealth, you need to know how to develop multiple streams of income.The steps and tips covered in this article will get you started, but you’ll need to have some persistence and patience to have success. The sacrifices you’ll make will be well worth it. Your long-term financial situation will drastically improve thanks to the diversification of your income. Related Posts […]

FINANCE & TECH

Tablo Dual HDMI OTA DVR: Watch And Record Live TV

Several years ago my family was looking to cut the cord on cable TV to save some money.At the time we were looking at a variety of over-the-air DVRs that we could buy that would allow us to record all of our favorite broadcast television programming.A commenter on this site recommended that we check out the Tablo TV over-the-air DVR from Nuvvyo.  We reached out to Nuvvyo, and they were kind enough to send out their original 2 tuner network DVR. We did a full review of that device, and in the end we were so impressed with it that we kept it as our main over-the-air DVR and live TV streaming device.  We’ve had it now for almost 7 years, and it’s still going strong. In short, we love it!This month I heard from the folks over at Nuvvyo wondering if I’d like to do a review of one of their newer HDMI DVRs, and I jumped at the chance.  So today, we’ll be looking at a full unboxing of the new Tablo Dual HDMI OTA DVR.Quick SummaryOTA DVR with direct HDMI connection.2 tuner DVR with live TV grid guide.Stream live TV to secondary TV.Expandable storage up to 8TB.Automatic Commercial Skip option.Unboxing The Tablo Dual HDMI Over-The-Air DVRSo what does the Tablo Dual HDMI OTA DVR come with in the box?  Here’s a complete list: Tablo DUAL HDMI OTA DVRTablo RemoteAAA Batteries (x2)Power Supply5′ Ethernet Cable5′ HDMI CableQuick Start GuideThe only things that are not included with the device, that you will need to buy separately, include:A 1TB to 8TB USB hard drive (for recording shows or pausing live TV).An ATSC HDTV antenna, for bringing in the broadcast signal in your area. Here’s a quick unboxing of the Tablo Dual HDMI DVR.The Tablo Dual HDMI comes in a nicely designed box that lists all of the device’s features and benefits.  It is HDMI connected and also includes a remote, unlike previous Tablo devices. It also includes an HDMI cable, and a network cable to hook it up to the internet for downloading TV guide data, firmware updates, cover art, etc.The back of the box shows what you’ll need to get started, and how the device is setup once you unbox it. Here’s a first look at everything included in the box.The Tablo box includes the Dual HDMI DVR device, a remote control, power cord, batteries for the remote, HDMI cable and a network cable.The device itself is pretty small. It has vented air holes on the top, a small blue LED light, and a small IR port on the front.The back of the device has a power port, networking port, HDMI port, USB port for the hard drive and an antenna connection.The device itself is pretty small, coming in at just under 1.5 inches in height, and just over 5 inches in length and width.This is one of the first Tablo devices to include a remote control. All of the other DVRs Nuvvyo make are network devices that are controlled either by the app on the mobile device, or by that particular device’s remote (like Fire TV or Roku).  In this case this device is meant to be hooked up directly to a TV, and as such it includes a remote for Navigating the Tablo DVR interface.Below are the cables included in the box. You’ll need them when setting up your device. You’ll plug it directly into your TV’s HDMI port, and to the ethernet port if you have one available.Tablo Dual HDMI Device Specs & FeaturesSo just how big is the Tablo Dual HDMI DVR device?Size: Dual & Quad HDMI DVR: Height: 1.45″, Width: 5.31″, Depth: 5.15″.Weight: Dual Tuner: 228 g or 8 oz. Quad Tuner: 230 g or 8 oz. When compared with the existing original Tablo device we already have, it’s about 1.5″ inches smaller in width.The specs have also gotten better with more memory and a better processor. Here are a few of the specs for the new Dual HDMI device.2 ATSC digital tuners. (4 tuners in the Quad device)1 HDMI 2.1 port to connect to your TV.10/100/1000 Gigabit ethernet port.1 USB 3.0 port supporting up to 8TB in storage.1 Coax antenna port.WiFi included: 802.11ac dual band WiFi with MIMO.Upgradeable firmware.Quad Core processor.2GB RAM.16 GB Flash.Audio Format: Stereo (PCM) audio or AC3 Passthrough (5.1).Video Format: MPEG2.Tablo Dual HDMI DVR Features & FunctionalitySo what are some things that the Tablo Dual HDMI can do? Watch, pause and record live over-the-air TV.Record up to 2 shows at the same time.Schedule recordings (either manually or by using their premium guide service).View and manage existing recordings, by show or movie title. Skip commercials, either manually, or with their premium add-on “Automatic Commercial Skip” feature.Limited whole home streaming to secondary TVs using apps on compatible Smart TVs,  Roku, Amazon Fire TV, & Android TV.View and record series of TV shows, movies, sporting events.View 14 days of rolling Live TV guide and show information (with add-on TV Guide data service) or 24 hours worth without premium subscription.Watch TV in the native MPEG2 – 1080i HD broadcast video quality.Setting Up Your Tablo Dual HDMI DeviceSetting up the Tablo Dual HDMI device is relatively simple.  Here’s a quick video from the folks at Tablo, describing the process from start to finish.Connecting The Tablo Dual HDMI To Your TVTo get started you’ll just put the batteries in the remote, and set the Tablo device near your TV so that it can be plugged in via HDMI.Next, place your antenna in an optimal location and plug your antenna’s coax cable into the coax port on the back of your Tablo.Your USB hard drive should be connected next. Make sure to place it next to your Tablo, and not on top. If placed on top it may restrict airflow which can cause it to overheat.Next, plug one end of the HDMI cable into your TV’s open HDMI port, and the other end into the Tablo.The ethernet cable can be plugged in next, if a hardwired connection is available. If not, then you’ll need to set up a WiFi connection during the setup process.Lastly, you’ll plug in the power adapter. Once plugged in the Tablo Dual HDMI will turn on and the blue LED on top will light up.Setting Up The DeviceOnce the device is connected and the TV is turned on the Tablo will begin the setup process.First it will ask you to connect the device to the Internet. If you want to connect it via WiFi, it will ask you to select the correct network and enter your password.  Once your device is online it will check for firmware updates and ask if you’d like to install them. In my case it did find an update, which I agreed to install. Once any firmware updates are installed it will take you through the process of connecting your TV antenna, and entering your zip code where the device will be used.Once the device has scanned for and found all of the channels in your location you can choose which ones you want to appear in your TV grid guide. I typically leave the ones with a bad signal off of my channel list.Once the channels are added it will walk you through formatting the hard drive to get it ready for use with the Tablo.Once the hard drive is formatted the device is ready to go.  Every new device comes with a 30-day trial of the TV Guide Data Service, as well as the premium Automatic Commercial Skip subscription.Things You Will Need To Use Tablo DVRAs you’ve probably already gathered from the above setup of the device, everything you need to get started is not included in the box. There are a couple of things you’ll need to purchase or have already to complete the package.Digital ATSC antenna and coax cable.USB-connected portable hard drive (USB 2.0 or 3.0, 1 TB to 8 TB in size). See their recommended drives post.If you don’t already have an antenna or USB hard drive you will have to purchase those separately.  When I was setting up this device I already had an antenna that we have been happy with, the Mohu Curve (Now called Mohu Arc). We tend to recommend the antennas from Mohu as they’re American made and they have always worked well for us.We also purchased a 2TB Seagate portable hard drive on Prime Day for about $30 or so. So all in, you could expect to spend anywhere from $50-100 for a good antenna and a decent sized hard drive if you don’t already have spares laying around.Using The DVRUsing the Tablo Dual HDMI device is simple. Just fire up your TV, and turn it to the correct input. You’ll see the main screen for the device where you can watch Live TV, view recordings, search for shows, or change device settings.Typically when you turn the device on it will go directly to the “Prime Time” shows tab, but in the settings you can tell it which tab it should default to on startup.  We set ours to go directly to the “Recordings” tab. The different sections in the app will allow you to search for shows, watch live TV or manage your scheduled recordings or already recorded shows. Here are the different sections, and what you can expect to find in each.Live TV: This tab shows you a Live TV grid guide that lists currently live and upcoming TV shows. By clicking on a particular TV show or movie you can get a synopsis of the program, record an upcoming show, set a series to record, and more.Recordings: This tab will show you a listing of your already recorded TV shows and movies so you can watch them.Prime Time: This will give a listing of prime time TV shows scheduled for the next 2 weeks in your market.TV Shows:  A listing of all the TV shows in your market for the next 2 weeks. Movies: A listing of all the Movies in your market for the next 2 weeks. Sports: A listing of all the sporting events in your market for the next 2 weeks. Scheduled: This shows you a listing of shows you have scheduled to record, along with any conflicts that might arise if more than two shows are set to record at the same time.Settings: This is where you can change your device’s settings including device name, network settings, editing channel lineups, screensaver settings, setting up the remote, scheduling settings, and updating guide data if you think it needs a refresh.Watching live TV on the Tablo Dual HDMI is pretty simple. Just turn on the TV and device, go to the “Live TV” tab, and click on the channel you want to watch.  If you want to know more about a live or upcoming show, or schedule a recording, just click on the show itself in the grid, and then click on “Info”.  A window will pop open with full details about each episode, as well as allowing you to schedule a recording for all episodes of the show, or only new episodes. If you pay for the premium TV Guide Data, you can also set recordings to start early or end late (for sports for example), or set it to keep only a certain number of the most recent episodes.  We use that feature to record one news station’s 3 most recent local newscasts.Once you have recorded a show it shows up in the “Recordings” tab, listed in alphabetical order. You can sort your recorded shows by most recent recordings, sports, TV shows or movies. Once you click into a show it will have a listing of all the recorded episodes by season and episode number, along with a description of the show generally, and each episode individually.  For example, I enjoy watching the old Lawyer crime drama Perry Mason. I got hooked on it while watching it with my mother as a child. We have 277 episodes taped over 9 seasons of the show, all listed nicely by episode number within the interface. Just select the play button on the episode you want to watch, and you’re set to go.Tablo Dual HDMI CostThere are a couple of things to take into account when it comes to the cost of the Tablo DVR. First, there is the cost of the device itself, and then there is the cost of the premium subscriptions for TV Guide Data Service and Premium Service (Automatic Commercial Skip). Personally I think the TV Guide Data Service subscription, which gives you 2 weeks of live TV data and other advanced DVR features is crucial. I wouldn’t love Tablo as much as I do without it.  The Automatic Commercial Skip we do without because it’s almost as easy just to fast forward through commercials viewing the video thumbnails.Here is the pricing for the Tablo devices, and for the premium subscriptions.Tablo Device CostThere are currently 6 Tablo devices that you can purchase with varying features, onboard storage, connectivity and number of tuners.  They include the 2 HDMI connected devices:Tablo Dual HDMI OTA DVR: $149.99Tablo Quad HDMI OTA DVR: $199.99There are 4 network-connected Tablo devices, all with either 2 or 4 tuners.  Two of them also have some limited onboard storage.Tablo Dual Lite OTA DVR: $149.99Tablo Dual 128GB OTA DVR: $169.99Tablo Quad OTA DVR: $199.99Tablo Quad 1TB OTA DVR: $239.99The device we received and are reviewing cost $149.99. NOTE: The Tablo online shop often sells refurbished Tablo units for a big discount. Our original networked Tablo was a refurbished unit when we received it. It’s going on 7 years strong now. Recommend checking it out if you’re looking for a cost savings.Tablo Subscription CostsThere are two service subscriptions available for all devices, TV Guide Data Service and Premium Service (Automatic Commercial Skip). Both services have monthly or annual billing plans.  So what do you get with the TV Guide Data Service? 14 days of guide dataRich cover artSeries and episode synopsesSchedule recordings by time, episode or seriesSchedule full series recordingsAdvanced recording settingsFilters to view content by type, genre, etc.In my mind the full featured guide is well worth the cost, and I sprang for the lifetime subscription years ago (although it was a bit cheaper then). Unfortunately the HDMI devices don’t have the option of a lifetime subscription currently.TV Guide Data CostSo what is the cost?Monthly: $4.99Annual: $49.99Lifetime: $179.99 for network connected devices only.If you choose to forgo the guide data subscription, you’ll only get 24 hours of a basic live TV grid guide, and scheduling programs will be a manual process similar to an old fashioned VCR, setting it to record at a certain time and day.Premium Service (Automatic Commercial Skip) CostThere is a “Premium Service” add-on that gives you Automatic Commercial Skip functionality. It also has monthly or annual payment plans.Monthly: $2.00 Annual: $20.00There is no lifetime plan for commercial skip. Tablo Dual HDMI Pros And ConsSo what are the pros and cons of this particular Tablo device?ProsThere is a lot to like about the Tablo devices, and in particular about the Dual HDMI device.Direct HDMI connection to your TV, which is great if you mainly watch on 1 TV.  Watch TV in the high-quality native MPEG2 – 1080i HD, not a compressed stream.Ability to expand storage up to 8TB.Watch, pause or record live TV.Stream to other compatible TVs in the home.Live TV grid guide that gives rich information about every TV show, movie or sporting event, including cover art.Ability to record entire series of shows, only new airings, or record all of a certain show.The HDMI versions of Tablo DVR comes with a remote.5.1 Surround Sound support.Ethernet or WiFi connections available.ConsThere are a couple of things with the HDMI connected Tablo devices that are less than ideal.No out-of-home streaming to mobile devices, Tablo apps or computers for HDMI Dual or Quad devices. Only network connected Tablo devices have this functionality.In-home streaming only via Fire TV, Roku or Android TV devices. No PC, Mac or mobile device streaming.No option for lifetime TV guide subscription. You can only get that with the network connected devices.No on-board storage, needs an external hard drive. The cons of the HDMI devices are easily overcome by just buying one of the network connected devices as they don’t have the same limitations.  If you’re going to be watching on more than 1-2 TVs, I’d recommend doing that.Tablo Dual HDMI – A Capable DVR For Cord CuttersAs a long time owner of the network connected Tablo over-the-air DVR, I’m a big fan of their products.The Dual HDMI DVR that we received to review has a lot to like about it. It has a lot of the same great over-the-air DVR functionality as the originals, but it also comes with the ability to connect the device directly to your TV via HDMI, as well as giving you a remote to control the device. It also allows you to watch the TV broadcast in the native MPEG2 broadcast signal, ensuring the highest quality video stream.The only downside for some is that the Dual HDMI device doesn’t offer out-of-home streaming, and only offers limited at-home network streaming. If you have a lot of TVs and devices to stream to at your house and on-the-go, it may make this device a non-starter. You may want to look at one of Nuvvyo’s network connected devices.On the other hand if you’re using this device only on 1 or 2 TVs, or as a secondary device at a cabin or lake home, it might be just what you’re looking for. Check out Nuvvyo’s full line of over-the-air Tablo DVRs at their site. We highly recommend their products, and will continue using them as our main over-the-air DVRs. […]

FINANCE & TECH

Invest Like The Richest Members Of Congress To Make Big Returns

One of the great things about being a member of Congress is having power. The more power you have, the more influence you have. And the more influence you have, the more money you can make.

Most senators, representatives, and delegates make a salary of $174,000 per year. However, the speaker of the House makes $223,500 per year. And the president pro tempore of the Senate, majority leaders, and minority leaders in the House and Senate make $193,400 per year.

These are healthy salaries that come with fantastic benefits. But in no way do these types of salaries create mega-millionaires out of members of Congress during their time in office. Instead, it’s their outside investments that make them way richer than the average American.

Invest Like The Richest Members Of Congress

Given members of Congress know things the average person doesn’t know, it is wise to follow how some of the richest members invest. After all, if you can’t beat them, join them!

It’s like investing in companies that reject you. I was rejected by so many tech companies in 2011 and 2012 that I was able to amass a comfortable nest egg in just those names alone.

In a recent Periodic Transaction Report, House Speaker Nancy Pelosi’s husband, Paul, placed a bet of up to $6 million on Apple, Amazon, Nvidia, and Alphabet (Google parent) ahead of a House committee ruling on regulating Big Tech power.

Paul Pelosi bought 50 Apple calls on May 21 with a strike price of $100 that expire on June 17, 2022. He also bought 20 Amazon calls that have a strike price of $3,000, which also expire on June 17, 2022. 

On June 18, Paul Pelosi exercised his Alphabet call options giving him the right to buy 4,000 shares at a price of $1,200 apiece. The Alphabet call options were originally purchased on Feb. 27, 2020. 

Paul’s strategy of buying options and investing up to $6 million in just four names is extremely aggressive. Below are the transactions that were disclosed in a filing on July 2, 2021.

Regular people do not invest $6 million in call options to buy stock. However, when you are likely worth more than $150 million, as Nancy and Paul Pelosi are, perhaps investing $6 million in call options in just four stocks is no big deal.

Of course, Nancy Pelosi’s office told the media the speaker has no involvement or prior knowledge of these transactions.

Inside Information Is A Grey Area

If you don’t think there’s regular pillow talk between Nancy and Paul, I’ve got an $8 bottle of water to sell you. Oh wait a minute, that’s a bad example because bottled water is a ~$300 billion business!

Whenever you tell a married friend a secret, the vast majority of time, they will tell their partner. So if you never want your secret getting out, never say a word about it!

One of the best ways to get rich is to create a marriage partnership where one partner has power and the other partner has capital.

The union of capitalist and politician is perhaps the most powerful combination today for wealth creation. There are plenty of examples from President down to local city government.

Paul Pelosi owns and operates Financial Leasing Services, Inc., a San Francisco-based real estate and venture capital investment and consulting firm. Meanwhile, Nancy has served as a U.S. representative from California since 1987.

With the power to enact legislation, how is it possible for members of Congress not to have inside information?

Their staff members are talking to dozens of people from these companies in order to enact proper legislation. From body language to keywords, members of Congress can make inferences.

How Inside Information Might Spread Unintentionally

Black and white insider trading is receiving a tip from someone in the know about something that will happen. You then invest according to the inside information and hope the government doesn’t catch you. See billionaire Raj Rajaratnam’s case or ex-New York Congressman Chris Collins as examples.

Then there are grey areas of passing along insider information. If you play poker, you know there are some tells in a person’s body language without the person saying a thing.

Besides marrying a member of Congress, here are some examples of how inside information can be revealed without directly revealing anything. These types of conversations and interactions happen all the time.

1) A Leisurely Hit

I was playing tennis with this one guy who worked at Trulia back in 2014. He mentioned they were extra busy due to a potential partnership. He didn’t say what, but I figured they were probably going to get acquired since there was a race for market share between Zillow and Trulia. Redfin wasn’t really a contender back then.

Lo and behold, Zillow ended up buying Trulia for $3.5 billion the next week. I didn’t buy the stock, but I could have. Did I have inside information due to a chance encounter? I don’t think so.

Related: Use Poor Pricing Estimates By Zillow And Redfin To Your Advantage

2) Guiding Without Guiding

Let’s say you’re in a management meeting with a publicly-traded company. A C-level executive knows the quarter is going great. But of course, he cannot specifically say earnings will likely beat estimates.

Instead, the executive says, “We are seeing surprise robust demand from new regions where we previously did no business. These new regions could one day be our main earnings driver going forward.”

From this statement, you can infer your earnings estimates need to be revised up. And given better-than-expected earnings is usually a strong catalyst for a stock, you buy more stock. Time will quickly tell whether the C-level executive can be trusted or not.

Is this inside information if the C-level executive is telling multiple investors the same thing? Probably not. What if the C-level executive gave a winky wink? Who knows!

3) Attending A Party

Let’s say you’re at a mutual friend’s party with unlimited amounts of free alcohol. All of you guys went to business school together so you’re all chummy.

You work at a hedge fund. Your business school classmate is the VP of Business Development at some publicly-traded company. You guys are doing shots for old times sake and having a blast!

At 2 am, you casually ask your buddy, “So how’s business?”

Without telling any specifics, your buddy says, “Business is doing great! We’re planning on expanding into China. To do so, we’re looking to partner up with a leading local player.”

The next day, you go to work on analyzing who those partners might be in the industry. There’s only two “leading” local players so you invest in both.

As an investor, you have a right to do your research and try to connect the dots.

4) A Busy Husband

You’re out getting mimosas at Blue Water Grill with your girlfriend. You ask her, “How are you and Bobby doing?” Bobby is a senior lawyer at a publicly traded company.

She says, “Not too good. Bobby has been working late every night for months because they’re looking to sell one of their subsidiaries. We never have date nights anymore!”

Given you tell your venture capitalist husband everything, he goes out and buys your friend’s husband’s company. He knows the subsidiary has been a thorn in the company’s side for two years. Any news of its sale, even at a poor price, will likely push the stock higher.

Is it your fault you shared your day with your loving husband? Probably not.

Of Course Politicians Are Aware Of Sensitive Information

Now that I’ve provided you with some grey area insider information examples, how can you not believe some members of Congress know stock-moving information that you and I don’t.

They are talking to reporters who may trade information from their sources for more access in the future. Politicians are also connected to rich and powerful donors who have various interests.

Remember, people are constantly trying to shower politicians with benefits to gain favor.

This constant temptation is one of the reasons why we’ve seen so many politicians fall from grace over the years.

If you live in a building that is also home to the world’s best baked cookies, you can’t help but eat some cookies yourself. Eventually, someone will find out because your belly starts protruding.

In politics, someone always knows something valuable. This information is used as currency for trade or as leverage for something more.

Buy And Sell What Congress Members Buy And Sell

When I first saw the report about the stock options Paul Pelosi had bought, I was pumped! I’ve been a long-time shareholder of Apple, Google, and Amazon. Further, I had bought more during this year’s dip as reported in, How I’d Invest $100,000 Today.

Unfortunately, I failed to buy Nvidia’s stock a couple of years ago, despite attending a house party right behind the CEO’s mega-mansion in San Francisco! The CEO is even Taiwanese. It was a clear sign to buy. Oh well.

You probably don’t want to base all your investment decisions on how the Pelosis invest. However, their track record of building wealth speaks for itself. If you want to get rich, you might as well at least study how the rich invest.

Pay attention to what members of Congress are buying and selling. It’s the same strategy as seeing what some of the best-performing hedge funds are investing in. You can find out by checking their 13F filings online each quarter.

You won’t get the initial benefits, since these people and funds have already bought these securities. However, at least you can use this information to help with your investment analysis.

Instead of getting all bent out of shape about the rich and powerful, think of ways you can benefit as well.

You don’t need to be an investment guru to get rich investing. You just need to identify those who are smart and who have great access. If you have to pay a fee to benefit from their status and abilities, then so be it.

Resist The Temptation To Trade With Inside Info

Finally, it goes without saying that insider trading is illegal. It’s not worth ruining your reputation and your life over money. If you really want to legally conduct insider trading, consider running for Congress instead.

Know the rules.

The super-wealthy legally bribe their children’s way into elite private universities by donating tens of millions of dollars for a new building. Don’t go the half-ass route and bribe sports coaches or admissions officers like the parents did in the Operation Varsity Blues scandal. The top brass want their cut.

The rich and powerful operate under a different set of rules from you and me. Consider investing like the rich and powerful or invest in funds run by the rich and powerful.

Life shouldn’t be so hard for the rest of us.

Related posts:

Recommended Split Between Passive Versus Active Investing

If You Can’t Beat Institutional Real Estate Investors, Join Them

Readers, where is the flaw in investing the same ways as the richest members of Congress? Do you believe the reports that members of Congress don’t know anything more than anybody else? If you’re already rich and powerful, why risk your reputation to try and make even more money with privileged information?

For more nuanced content, sign up for my free newsletter here. […]

FINANCE & TECH

The Need For Liquidity Is Overrated (If You Are Financially Competent)

You’ve heard the recommendations of always having an emergency fund equal to 3-12 months of expenses. Just in case something comes up, your emergency fund will be there to bail you out. However, perhaps the need for liquidity is overrated.

Not only may we not need as much cash as we think, we may also not need our investments to be highly liquid as well. After all, the last thing we want to do is constantly go in and out of our investments. It’s usually better to invest for the long term for compounding and tax minimization.

If you are financially competent, there will rarely be a case where you’ll ever run out of money in an emergency. Further, there are plenty of instances where the lack of liquidity has saved many real estate investors in the past.

Having six months of living expenses in cash is good enough for most people. In this ultra-low interest rate environment, unless you’re trying to buy a house, having too much cash becomes a drag on returns.

The Need For Liquidity Is Overrated

As someone who believes it’s best to invest in stocks and real estate for as long as possible, having an investment that can be easily sold could be very detrimental.

Think about all the folks who wigged out between 2008-2012 and sold equities or real estate back then. Or more recently, what about the people who sold anything around March 2020? They’re all kicking themselves now!

In 2012, I tried to sell my old rental house for $1,700,000. The worst of the downturn was behind us. I had recently engineered my layoff. And I figured it was better to downsize rather than hold a ~$1,100,000 mortgage.

As a result, I signed a 30-day exclusive listing contract with a real estate agent friend. He and his wife came over to stage our house.

We got a standard inspection done and pulled a 3R report for our disclosure statement for about $500. My agent ended up hosting three open houses and around 10 private showings.

Our best offer was a verbal offer with no number, just an indication they were willing to offer “much less than asking.” I told them to bugger off and pulled the listing after 29 days.

Thank Goodness For Illiquidity

In retrospect, if I could have just pressed a button to sell for $1,700,000, I probably would have. Thankfully, the real estate market was so illiquid that I saved myself from myself.

Instead, I sold the property for over a lot more five years later. At the time, I felt selling the property for ~30X annual rent was too good to pass up. Further, I no longer wanted to deal with tenants and maintenance issues as a fist-time father. Thank goodness real estate was so illiquid! 

I then reinvested $550,000 of the proceeds into real estate crowdfunding, $500,000 into various stocks, and $500,000 into various municipal bonds. It was great to earn income 100% passively. 

Why You’ll Likely Never Face A Serious Liquidity Crunch

Just like the fears of running out of money in retirement are overblown, the fear of illiquidity is overblown. If you lose your job, lose money in an investment, or find yourself in an emergency, you will find a way to come up with the necessary cash.

Just reading this post makes me confident you will be able to withstand a future liquidity crunch. Let me share some reasons why you likely won’t be forced to sell all your assets and live down by the river.

1) You have multiple types of insurance. 

With health insurance, homeowner’s insurance, rental insurance, auto insurance, short-term disability, long-term disability, life insurance, and an umbrella policy, it’s hard to succumb to a financial disaster unless you are not insured.

Sadly, medical debt is the #1 reason for bankruptcy in America, not poor spending habits. To counteract egregious medical debt, make sure you thoroughly understand what type of health insurance benefits you are getting for the monthly premiums you are paying.

2) You have risk-free investments.

Everybody knows that it’s important to save for an unknown future. Therefore, every financially competent person saves and invests as much as possible to protect against uncertain future expenses.

For proof, just look how the U.S. national saving rate shot up to 32% in April 2020 when the pandemic was at its worst. We can save more if we want to.

My recommendation is to have around 5% your net worth in low-risk assets such as CDs, municipal bonds, US treasuries, and cash. This way, you’ll be able to survive long enough until the good times return.

The only people who don’t save are those who believe they have a bright future. They have either built a business with massive profit upside or they’re on the fast track towards superstardom at their respective companies. In such cases, they’ll never need any savings.

Unfortunately, unpredictable bad things happen all the time the longer you live. Saving aggressively is a must.

3) You’re well diversified.

I don’t know any financially competent person who has 100% of their net worth in a single asset class. Financially competent people are well diversified in stocks, real estate, farmland, art, wine, commodities, crypto, collectibles and more.

Even if you did tie up 80% of your net worth in your primary residence, like the average American does, that still means you have a 20% buffer to sell before you need to tap your savings or take out a home equity line of credit.

Below is one of my recommend net worth allocation frameworks for self-starters who are willing to work on their X Factor. I may have to update this asset allocation for post pandemic life.

4) You’re not too proud to hustle.

The invention of Upwork, Uber, Lyft, TaskRabbit, Thumbtack, Craigslist, Etsy, eBay, Amazon, and WordPress make it possible for you to make extra side-hustle money if you find yourself in financial despair.

The other day we hired a person from Craigslist to install a wireless doorbell and several fire alarm systems in hard to reach places. He made $85 gross in one hour and had four jobs to do that day. 

Several years ago I gave over 500 Uber rides that made me roughly $30/hour gross on average and sometimes $100/hour net due to driver sign-up income.

There’s probably thousands of dollars worth of clutter in your house you can sell on Craigslist. And if you’re really gung-ho, you can try to sell your craft on Etsy, buy and re-sell products on eBay or Amazon.

Or you can start a website like this one. It’s so cheap and easy to start today compared to when I did in 2009.

5) You’ve developed multiple streams of income.

There are an endless number of investments that provide passive income in case you lose your job or your business blows up. Given you’ve been diligently saving and investing for years, you should have some passive income to hold you over until you can find a new main source of income.

It took about 12 years after college for me to generate a livable passive income stream. After 20 years, the passive income was finally enough to provide for a family of four in expensive San Francisco.

Therefore, it’s highly feasible that if you start generating passive income early, by the time your company decides to age discriminate by laying off 40+ year old workers, you’ll be just fine.

6) You negotiated a severance or received a severance.

Even if you didn’t have the foresight to start investing early on, you should at least be able to negotiate a severance.

Standard severance packages range from 1-3 weeks per year you’ve worked plus 2-3 months of base salary according to the WARN Act for employees at larger companies.

If you work at a company with deferred stock and cash compensation, a good severance negotiation will allow you to keep your unvested compensation.

In other words, you have the potential to earn WARN Act pay, a severance payment, and deferred compensation to hold you over until a recovery.

7) You’re eligible for unemployment. 

In most states, after you negotiate a severance you’re also eligible for unemployment benefits. Conversely, folks who get fired or quit are often times not eligible for unemployment benefits.

The logic goes that they left due to cause or voluntarily. There are cases when you can receive unemployment benefits if you get fired for cause. However, it is an uphill legal battle that takes effort.

In almost all states, you get to receive unemployment for up to 26 weeks. In addition to unemployment pay, your unemployment agency will provide job search help and career training.

During severe economic times, unemployment benefits may get extended due to federal government assistance. For example, back in 2009, the federal government extended unemployment benefits up to 99 weeks. In 2020 and 2021, the federal government offered enhanced unemployment benefits for several months.

Below is a sample of the states with the highest unemployment benefits when we had maximum benefits of an extra $600 a week. In some cases, one could make more off unemployment benefits than from a full-time job.

The current enhanced unemployment benefits of $300/week run out Sept 6, 2021. If you’re thinking of negotiating a severance, now is the time. The value of a severance has gone way up due to higher unemployment benefits.

8) You can slash costs and downsize. 

No rational person facing a liquidity crunch will keep spending and living like they once did. Instead, you will easily slash all extraneous costs. You will subsist on ramen noodles and water for as long as it takes.

Other expenses that will be reduced or eliminated include vacations, entertainment, and clothing. You’ll even sell things you haven’t used in months on Craigslist or eBay.

If you own a home, you can either rent it out and downsize into a studio apartment. Or, you can rent out rooms for extra cash. A home’s value, after all, is based on a multiple of its cash flow.  

Finally, you can open a home equity line of credit to boost your liquidity.

Related: Housing Expense Guideline For Achieving Financial Freedom

9) You’ve got a vast support network.

Let’s say worst comes to worst and you’ve completely run out of money. Since you’re always focused on helping others, people will gladly line up to help you out.

Maybe they’ll give you an interest-free loan or hook you up with a job at their company. Maybe a friend will give you some freelance work.

People absolutely love to help those they like, especially those that have brought some type of joy into their lives. Any emotionally competent person who is kind and helpful will have a good support network of helpers.

10) You’re not too proud to live in mom’s basement.

If for some reason you were completely selfish all these years, surely your parents will help. They will unconditionally take you into their home and provide for you and your family until you can get back up on your feet.

The stigma of living with your parents as an adult child has subsided, especially post-pandemic.

As a parent, if my son or daughter is down on his luck, you bet your buns of steel I’d gladly accept him back. This way, he can at least save on rent and build back his savings. I’d love to use this time to reconnect with him.

In addition to living off your parents, you’ve learned how to properly ask your parents for money as an adult child. So many adult children have been able to extract from their parents money for a car and a down payment. Surely, it’s much easier to ask for money if you’re facing homelessness.

If you’ve never asked for help before, now is the time. Don’t let honor and pride make your life more difficult than it already is. People are more than happy to help others who are down on their luck

11) You track your money like a hawk.

If you are regularly checking your net worth composition at least once a month with the help of a free online wealth management tool, then you’re always going to know how your money is being allocated.

As a result, there will seldom be a surprise expense you cannot cover. You are fully aware of your monthly cash flow and liquidity. The people who have money issues tend to wing it and not stay on top of their finances.

The more you can track your finances, the better you can optimize your finances.

12) The government may bail you out.

Whenever there is extreme hardship, the government tends to bail its citizens out. Just look at what has happened during the coronavirus pandemic.

In addition to enhanced unemployment benefits, the government launched multi-trillion dollar stimulus packages that provided stimulus checks for millions of Americans who made below a certain threshold. Some people got $1,200 checks. Some families got much more.

Besides these stimulus packages, we’ve had bank bailouts, housing bailouts, natural disaster relief, and more. It’s good not to depend on the government for bailouts. However, feel better knowing that the government has a history of bailing us out.

Related: Earn Higher Returns With An Illiquidity Premium

Reviewing My Liquidity During The Global Financial Crisis

I realize it’s easy to say “liquidity is overrated” during a bull market. Bad things happen all the time, no matter how much we plan ahead for the future.

Financially, I thought I was rock steady until I got obliterated in 2008-2009. My net worth declined by ~35%.

However, even back then, liquidity wasn’t much of an issue. If I had lost my job, I would have received a severance package to last me through the recession. Further, I could have applied for unemployment benefits that would have lasted for an incredible 99 weeks back then.

If needed, I could have sold my house and moved back home with my parents. But before I did that, I could have sold stocks or bonds. And of course, if absolutely necessary, I would have proudly returned to my minimum wage job flipping burgers at McDonald’s!

By 2009, the S&P 500 had stopped going down. And by 2012, the S&P 500 recovered all of its losses. The key is survive until the good times inevitably return.

More Insurance For Your Finances

If you are worried about your future, the one thing you must do is start treating people right ASAP.

Get involved in your community through your local church or school. Volunteer at organizations whose mission it is to help the less fortunate. Become a mentor to others.

Ask your bosses or colleagues whether there’s anything you can do to help without expecting anything in return. Connect with people on LinkedIn before you find yourself unemployed and in a liquidity crunch.

Your goal is to build up as many “credits” as possible just in case the worst happens.

Who knows. Maybe after 12+ years of writing for free on Financial Samurai, perhaps some readers may lend a helping hand the next time I’m down on my luck.

We’ve got doctors, lawyers, physical therapists, real estate agents, venture capitalists, money managers, child psychologists, parents, and so many more reading this site. There’s a great community who can help each other.

The more you can help others today, the more help you will get tomorrow when you may really need it.

Liquidity is always good to have. However, unless you’re saving up for a big ticket item, having more than six months of living expenses in cash is probably unnecessary.

Readers, do you think the need for liquidity is overrated? What are some things you will do before being forced to sell your primary home or investment? Share a situation where you faced a liquidity crunch and were forced to sell something you didn’t really want to. 

For more nuanced content, sign up for my free newsletter here. […]

FINANCE & TECH

Rising Rents, Rising Fortunes For Landlords, But Is It Fair?

I have a love-hate relationship with being a landlord.

On the one hand, being a landlord has been instrumental to our path to financial freedom. Rental property income accounts for roughly half of our existing passive income.

On the other hand, having to deal with difficult tenants and maintenance issues is a source of stress.

As I’ve gotten older, my desire to be a landlord has waned. Therefore, I started investing more money in REITs like O and OHI, a real estate ETF called VNQ, and real estate crowdfunding. Being able to invest in real estate and earn income 100% passively without having to deal with any issues is my ideal scenario.

Now, national rents are rising and so are the fortunes of landlords. Once again, I find myself conflicted as a mom- and-pop landlord who wants to provide the best source of housing for my tenants.

At the same time, I also want to do the best I can to provide for my family. To do so requires optimizing rental income to keep up with the market given the cost of almost everything is always rising.

National Rents Are Rising Fast

Take a look at this chart created by Bloomberg with data from Apartment List. It shows U.S. rents are now above their pre-pandemic track with no signs of slowing yet. The steepness of the white line is intense and puts upward pressure on inflation.

Of course, rent increases in cities vary on a case-by-case basis. Big cities like New York and San Francisco are lagging 18-hour cities like Phoenix and Dallas. However, as a whole, mainly due to tight housing supply, there is upward pressure on rents.

As a Financial Samurai reader, you may have gotten lucky by reading and acting upon, Rental Properties: The Investment Case For Buying More on September 20, 2020, right before the surge in rent prices. I wrote the post mainly because I could start to sense an uptick in demand after quickly finding a new tenant for my old home.

Today, I continue to believe buying rental properties is a wise investment due to the powerful combination of rising rents and rising principal values. The housing market has years of momentum left, although it should slow from current levels.

Further, inflation is simply too powerful of a force to combat long-term. You want to ride the inflation wave, not stand in front of it and let it pummel you!

Mom And Pop Versus Institutional Landlords

Unlike the smooth lines in the rent chart above, true rental price growth is more like wide steps. Rental leases are usually for a year. And rents are sometimes not raised once the initial lease period is over.

Even if you were able to buy a rental property during the middle of the pandemic and rent it out, you won’t benefit from the rise in rents until you increase your rent yourself. This is where many mom-and-pop landlords, including myself, run into walls.

I don’t like raising rents, so I don’t, even if the cost to operate my rental property has increased. Instead, I typically just eat the rising costs and patiently wait until there is rental turnover. Then, I discover the market at the time and charge accordingly.

In contrast, institutional landlords are profit-maximizing machines. Part of the reason is that they have shareholders who demand maximum performance.

Unlike mom-and-pop landlords, institutional landlords are not building personal relationships. Everything is strictly business.

How To Raise The Rent Without Awkwardness

There is a way to raise the rent as a mom-and-pop landlord without feeling bad or needing to send out an uncomfortable notification. The solution is to make rent terms clear during the initial lease agreement. If both parties agree, then expectations are set.

In the initial rental lease, you can propose a rental escalation schedule after the initial lease period is over.

For example, you might state the first year’s rent is $3,000/month followed by $3,100/month in the second year and $3,200/month in the third year. Or you can put in the rental lease that rent will automatically increase by 3% a year after the first year.

By setting terms upfront, both sides can better calculate their budget. And if both sides agree to the terms, then there shouldn’t be any awkwardness during the length of stay if both sides are following the terms of the lease.

Happiness is about setting proper expectations and not deviating from them.

Rent Increase Example

In my latest rental lease agreement, I provided a $300 discount to my asking price of $6,850/month for the first year. I wasn’t sure about what the true rental market was for a four-bedroom, three-bathroom house in my area. But I figured it had to be between $6,000 – $7,000 based on my research. $6,550/month was in the ballpark so I went with it.

As part of the lease agreement, I then stipulated that starting in the second year, rent would increase to $6,850/month if everything was in good standing.

They were happy to sign because they felt like they got a deal for the property they really wanted. It was a competitive situation between them and another set of tenants.

I was happy to sign because they seemed like a great family with a strong household income. Further, I expected their household income to continue to rise, which it has based on how the husband’s company stock has performed (+70% in 12 months).

Given both sides have followed the rental lease agreement, I don’t see any reason for conflict once the second year starts. Further, they are following my recommended housing expense guideline for financial freedom.

Are Rising Rents And Property Values Fair To Tenants?

Fairness can be a tricky subject to tackle, especially when it comes to housing. Housing is a human right that gets further out of reach if home prices rise quicker than income for too long.

However, when it comes to answering whether rising rents and rising property values are fair to tenants, let me share my perspective as a previous tenant. I would think most landlords were once tenants as well.

When Rent Became Unfair

When I was a tenant in my 20s, all I wanted was a quiet and safe place to stay. I had a budget of up to $1,800 a month and rationally looked for properties within my means. I was always thankful when a landlord accepted me as their tenant. Therefore, I always paid on time and took care of each place.

It was only when I had an alcoholic neighbor upstairs who would frequently drink and blast his stereo until 3 am that I felt the rent I was paying was unfair. I often had to get into the office by 6 am and work 12-hour days. Therefore, sleep was extra important to me.

No matter what I said to the landlord or to the neighbor, the noise disruptions kept happening. Every week, I’d see the blue recycling bin overflowing with beer cans, crowding me out.

Therefore, after a while, I didn’t think it was fair to keep on paying the rent I was being charged. I certainly wasn’t going to pay a higher monthly rent if they asked.

I had a decision to make. After six months of no noise improvement, I could either find another place to rent or buy a place after my lease was over. I decided to take a risk and buy in 2003.

I didn’t want to completely not pay rent because I signed a contract. A Financial Samurai always honors a contract.

What Landlords Owe Tenants

When I was a tenant, the appreciation rate of my landlord’s property did not matter to me. I had no ownership of the property. From a financial standpoint, what mattered to me was the value I was getting for the rent I was paying.

If the landlord asked for a rent increase, I would determine whether the new rent was worth the price compared to other alternatives in the market. I’d determine how big of a hassle it would be to move. I’d also search for comparable rental properties and move if there was a better deal. Finally, if I had a great urge to buy, I’d leave as well.

I understand not everybody has the same options. But we all rationally decide the best use of our money and time.

Fundamentally, landlords owe tenants a safe and functioning place to live. This means working plumbing, electricity, and heating.

If the plumbing and electricity don’t work, they must be fixed. If there is water or wind seeping through the windows or walls, the issues must be addressed in a timely manner. All other agreements should be included in the lease.

The landlord does not owe the tenant a cut of the property’s price appreciation. Nor does the landlord owe the tenant a discount to market rent. However, in order to keep great tenants, a landlord will sometimes keep rent the same or reduce rent.

Related: Being A Landlord Tests My Faith In Humanity Sometimes

Example Of Reducing A Tenant’s Rent

During the middle of the pandemic, one tenant in my condo rental property, unfortunately, came down with some type of cancer. She said she needed to go back to Boston for treatment for six months. She had a roommate who would stay behind.

Due to the pandemic, the remaining roommate didn’t want to find another roommate. The remaining roommate also didn’t want to move out after three years. She loved the location across from a big park. She also enjoyed the deck. Further, the tenant with cancer wanted to come back to the same place.

We all agreed that in six months things would likely be better. Therefore, we came to a mutual agreement where the overall rent was reduced by 25% for the six-month period the one roommate was gone. The remaining roommate would pay the majority of the rent for having the place to herself.

Despite receiving less rent, the arrangement worked for me due to simplicity. No effort was required on my part to supervise the move-out process and find new tenants. Further, the tenants have been great during their tenure.

The tenants were very appreciative of the compromise. I haven’t raised the rent on them since they moved in, nor do I plan to in the foreseeable future.

A Positive Way To Look At Things For Tenants

Although a 15% year-over-year gain in home prices translates to a $49,000 gain for the median homeowner, there is a positive way to look at rising home prices for tenants.

You may laugh at this positive outlook, but I try to see the positives in everything.

Due to the pandemic, millions of tenants have stayed home much longer than during pre-pandemic times. Therefore, utilization rates for their homes are much higher.

For example, one set of tenants went from working in the office for ~10 hours a day (includes commute) to working from home for nine hours a day. Over the course of a month, that’s 180 more hours in my rental property or a ~25% higher utilization rate.

Then, when you add in not going out to social gatherings for a whole year, that may result in another 10% increase in property utilization for a total increase of 35%.

If a tenant’s rent stayed the same or increased by less than 35%, the tenant is getting better value for their money.

On the flip side, the landlord will likely incur more deferred costs due to the higher utilization of toilets, ovens, microwaves, faucets, showers, rugs, wood flooring, and HVAC.

Another positive way to look at things for renters is that property prices are rising faster than rent increases. For example, if a property appreciates by 10% but rent only increases by 2%, the renter is getting an 8% better deal.

Try Not To Rent Forever

Renting is great if you don’t know where you want to live long-term. Perhaps you just graduated from school or your job situation is in flux. However, once you see yourself living somewhere for longer than five years, I would strongly consider owning.

The combination of rising rents and rising property values will naturally build wealth over time. In comparison, the return on rent is negative 100% every single month. Renting gets you a nice place to live, but there is no investment optionality.

If you cannot afford your own home, then you should try getting neutral real estate inflation by owning some type of real estate. You can do so by buying publicly traded REITs, private eREITs, real estate ETFs, home building stocks, online realtor stocks, and home decor stocks.

Let’s say the median home price in America is $400,000. If it goes up 5%, that’s $20,000. If the median household income of $70,000 goes up 5%, that’s only $3,500. The median household income would have to go up by 28.5% just to stay even with a 5% median home price appreciation. Further, the household income is in pre-tax dollars.

Over the long term, there is simply no way the typical American’s household income growth can keep up with home price growth due to valuation differences. If you add on a bull market in housing, where price growth rates are in the double digits, then the first-time homebuyer or renter really falls behind.

The main solution is to aggressively invest your disposable income in stocks or other risk assets that have the potential to appreciate. Unfortunately, when an activity is optional, it’s very easy to not do it.

The Sneaky Rental Trap

Be careful about the inadvertent rental trap as well.

Because rents often don’t keep up with the market due to landlord reluctance and rent control, renting tends to become better value for tenants over time. However, please be aware of the opportunity cost of renting, which is the price appreciation of real estate.

Back in 2002, I remember talking to one of my favorite sandwich shop owners. He told me something very poignant after I ordered a Reuben.

He said, “Sam, instead of making sandwiches for the past 30 years for eight hours a day, I should have bought this building that I’m renting from when I had the chance. If I did, I would have made more money and retired much sooner!” The owner was in his late 60s at the time.

I’m pretty sure in 30 years, there will be another sandwich shop owner somewhere who wishes he had bought real estate today.

If you don’t want to buy property, that’s fine. Make sure you invest in something to keep up with and hopefully beat inflation. One day, you will no longer want to trade your time for money. When that time comes, you’ll be thankful for your investments.

Suggestion: If you’re interested in investing in rental properties without the hassle, check out Fundrise. Through its private eREITs, Fundrise is building a portfolio of institutional quality rental properties around the country. Fundrise is targeting lower-cost areas that are seeing improving demographic trends with rising rents.

Readers, are you benefitting from rising rents as a landlord? Do you think it’s fair to renters or first-time homebuyers that housing prices are appreciating so much? What are some reasonable solutions to a housing affordability problem? […]

FINANCE & TECH

A Great Investor Connects The Dots, Let’s Discuss How

One of the hardest things for an investor to do is to consistently outperform the S&P 500. Most fail, which is why the general recommendation is to invest mostly in index funds.

However, as humans, we always have hope! And it is that hope of outperforming the broader market that keeps the active money management business alive. Like the lottery, we know the odds are against us, but some of us play the game anyway.

I’m one of those delusional people who regularly has 20% or so of his capital invested in individual securities. I got lucky finding a 50 bagger back in 2000. Unfortunately, I’ve been hunting for my Moby Dick ever since.

A recent high-performing stock example reminded me why we should always try to connect the dots when investing. A great investor tends to see things before the average investor does. As a result, a great investor tends to also be much wealthier.

Connect The Dots To Outperform

What is the one thing so many of us have gained since the pandemic began? Perhaps it’s the ability to multi-task with screaming kids in the house? Or maybe it’s realizing what we want to do with our one and only life?

Nope.

The one thing many of us have gained since the beginning of 2020 is weight. Here is the ideal weight chart if you’re curious.

According to one poll from the American Psychological Association, about 42% of people gained more weight than they intended during the pandemic.

Of those surveyed, the average weight gain was a significant 29 pounds. Meanwhile, 10% of those surveyed said they gained more than 50 pounds!

When we’re at home more often during a stressful world event, of course it’s natural to eat more and exercise less.

Given the mortality rates from COVID-19 are higher for overweight people, I tried my best to lose weight. Instead, I gained at least a couple of pounds. Irrational, but also rational.

The Now Obvious Investment

It was quite apparent that by July 2020, weight gain was becoming an accelerating trend. Therefore, a great investor would have connected the dots and concluded that buying an apparel company made sense.

Of course, you couldn’t just buy any apparel company. You had to buy an apparel company with a great brand, a growing online retail presence, a strong balance sheet, and mass-market appeal.

Let me introduce to you Levi Strauss & Co (LEVI). The company was founded in San Francisco on May 1, 1853. LEVI first went public in 1971 but had been private until its second IPO on March 19, 2019.

The Haas family helped fund my business school (UC Berkeley) and are big donors all around the SF Bay Area.

LEVI is up a whopping 129% in the past 12 months, compared to “only” 38% for the S&P 500 during the same period. The company recently reported strong 2Q2021 results with sales up 148% year-over-year.

As we know, 2Q2020 was a tough time as many of its stores closed due to the pandemic. Therefore, the comparison period was easier. However, the company essentially said that due to expanded waistlines, demand for its jeans and clothing was very strong.

Well damn! If I had connected the dots, I could have more than doubled my money. So sad.

The Risk: Who Needs Clothes Anymore?

A great investor also has to be careful not to be delusional as well. It’s easy to say we all should have bought LEVI in the summer of 2020 when our pants were getting tighter.

However, back in the summer of 2020, who needed new clothes anymore?

Millions of people suddenly were allowed to work from home indefinitely. As a result, there was no need to buy business casual clothing from Dockers (owned by Levi’s). Sweatpants and t-shirts are much more comfortable than jeans and button downs.

The upgrade cycle to larger clothing sizes wouldn’t have been enough to get overall sales growing again. Instead, a savvy investor would have had to find more catalysts before buying.

How To Become A Great Investor And Connect The Dots

To properly connect the dots, a great investor needs to go through a top-down process. He has then got to methodically go through what datapoint could mean what for which investment.

1) Back in 2020, an investor would have first had to make a prediction about the overall market’s direction. Check baby, check baby, 1, 2, 3!

2) Then an investor would have had to determine whether the government’s support was enough. Check!

3) Then an investor would have had to analyze the overall apparel market and what millions of people staying home all day meant. Fail!

4) Finally, the investor would have had to do a deep dive into LEVI before coming up with an investment decision. Fail!

In other words, a great investor would have had to connect the dots within the dots. Further, even if the great investor had successfully bought Levi stock last summer, he would have had to resist selling until now.

In just one quarter, Levi’s stock rose by 50%. The temptation to take profits would have been strong.

Connecting The Wrong Dots

Do you know what I decided to invest in instead of Levi Strauss & Co last year? Lululemon (LULU). I had held the stock for several years by mid-2020 and decided to add to my position.

My simple thesis was that comfort clothes were in and dress clothes were out. We own some overpriced Lululemon clothing in our family so were customers as well.

LULU performed well in 3Q 2020, then came crashing back down. Over the past 12 months, LULU is only up 21.52% versus 38% for the S&P 500 and 129% for LEVI. What an underperformer!

I connected the wrong dots. Investors didn’t want to pay up for LULU clothing during a pandemic nor did they want to pay a 60% higher P/E multiple than Levi’s stock.

In retrospect, I now realize I was in my own bubble because our finances weren’t rocked in 2020.

I didn’t lose a job because I didn’t have a job. Financial Samurai operated as usual because it’s on the internet. Finally, our passive retirement income streams stayed steady.

Due to these factors, I wasn’t price sensitive to $120 yoga pants. But enough clients were to slow down sales. A great investor is aware of his or her biases when investing.

Connecting The Dots With Real Estate

As you may know, I’m bullish on the housing market and I’m a buyer of rental properties. I want to experience the double benefit of rising rents and rising property values for decades. This way, my kids won’t get pissed off at me when they’re older.

It’s the year 2046. The kids and I are sitting around the breakfast table talking about the good old days. Over waffles, I start getting poked by my son who is asking me why I didn’t buy real estate back when prices were “so cheap.”

“Dad! If you had bought more property in the early 2020s, you wouldn’t have to keep grinding away on Financial Samurai today! You’d be thinner, have more hair, and not snore so much. You could also finally enjoy full retirement with mom. Heck, we wouldn’t have to still live at home with you guys either!“

With the average one-bedroom apartment costing $6,500 in San Francisco 25 years from now, we had decided it was best for our kids to live with us until they found their respective life partners. Frugal for the win!

First dot to connect: My kids don’t have the ability to invest beyond their custodial Roth IRAs and investment accounts today. When they are adults, they will likely wish they could rewind time and buy real estate 25 years ago. Therefore, to prevent them from thinking I was a dummy, I will buy more real estate in the 2020s.

The Second Dot To Connect With Real Estate

The 10-year bond yield is back down to ~1.36% from a high of 1.75% on March 31, 2021.

This tells us that inflation expectations are declining and mortgage rates are coming back down. The housing market should cool this summer, as it normally does every year. 

However, I forecast a post-Labor Day bump in real estate demand after two months of cooling off. It seems like everybody is traveling right now and YOLOing.

Lower mortgage rates act as a tailwind for real estate prices. Therefore, I’m actively looking for real estate investment opportunities from now until September 6.

After another surge in real estate demand post Labor Day, there’s going to be another two-month slowdown during the holidays and winter. At this time, I will aggressively look for more opportunities again.

I’m thinking there’s a 30% chance the 10-year bond yield continues to head lower, a 50% chance the 10-year bond yield hovers around 1.3% – 1.6%, and only a 20% chance the 10-year bond yield gets back to its high of 1.75% by the end of the year.

Therefore, with an 80% chance mortgage rates will either stay the same or go lower again, I remain bullish on real estate. 

If you haven’t refinanced your mortgage yet, you should definitely check online and call your bank. I use Credible to see what the latest rates are. The lending platform provides no-obligation quotes in minutes. I currently have a 7/1 ARM at only 2.125%.

As you can see from the chart below, mortgage rates are heading back down. A 15-year fixed rate mortgage looks especially enticing if the fees aren’t high.

The Third Dot To Connect With Real Estate

One of the best strategies I’ve used to make an investment decision is to compare what’s going on with a public security before making a private investment in a similar space. Specifically, I’m looking for strong-performing public securities that may act as leading indicators for private investments.

One example I discussed in a previous newsletter was Airbnb’s IPO on December 10, 2020. The stock IPOed at $68/share and closed up 113% to $144.71/share. At $144.71/share, Airbnb was valued at more than $100 billion.

However, Airbnb raised funds from Silver Lake and Sixth Street Partners in April 2020 at only a value of only $18 billion. In other words, Airbnb management panicked big time during the spring of 2020.

The demand for Airbnb stock in late 2020 was a clear signal to buy private hospitality commercial real estate. So I did. Real estate prices never move as quickly as stock prices. Today, we are seeing a clear resurgence in travel demand.

What’s The Next Public Equity Example?

As someone who is bullish on rental properties, I own and track the performance of American Homes 4 Rent (ticker AMH).

AMH describes itself as, “an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.”

AMH stock is up 42% year to date and 49% over the past 12 months. In other words, AMH stock has only just started taking off over the past six months. The market is starting to come around to the bull market rental property thesis.

What The Dots Tell Us To Do In Real Estate

1) Continue To Hold Our Rentals

The recent performance of AMH is telling owners of single-family homes or rental properties to, at the very least, continue to hold. Rents and property values are rising.

There is no way I’m going to sell my rental properties now that we are rocketing out of the pandemic. People are flocking back to big cities as the herd usually arrives once all is clear.

On the other hand, if the latest variant again leads us to another lockdown, the demand for single-family homes will get another boost.

2) Invest In A Private REIT That Bought Earlier

For those with motivated capital, you should identify private REITs that aggressively purchased single-family rental properties in 2020 or 1H2021.

Although I still believe AMH will do well, it’s relatively harder for me to put new capital to work after a 46% YTD ramp. I’d rather go back in time like Marty McFly.

For example, on April 4, 2021, The Wall Street Journal made a fuss that institutional investors were buying up single-family homes.

A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.

Back in April 2021, you might have scoffed at Fundrise for buying the Amber Pines community for an average price of $258,064 per home.

However, with the median-priced home in America between $380,000 – $399,000 today (depends on who you ask), Fundrise’s $32 million purchase is looking better by the day. DR Horton, the homebuilder that sold to Fundrise, should have held on!

There’s a great saying in real estate, “the profit is made on the purchase, not on the sale.” With a lower denominator (purchase price), your percentage gains get stronger and stronger. The Amber Pines community should provide a solid recurring yield for Fundrise investors.

3) Find A Sponsor Who Purchased Earlier

Another investment strategy is to participate in a private real estate syndication deal where the sponsor purchased the property in 2020 or early 2021. The sponsor is then looking to syndicate some of its acquisition to other investors.

I was on a webinar last week where a sponsor did just this. It bought 100% of a Hilton hotel in the Dallas MSA in late 2020. It is now syndicating 10% of its position to investors on the real estate platform.

Participating in the deal is like jumping back in time and buying the property at December 2020 prices. Not bad given we’ve seen a strong recovery since then.

When someone on the webinar logically asked why a sponsor wouldn’t just keep 100% of the position, the sponsor responded, “this has always been part of our business model.” For 70+ years, the sponsor has been investing and syndicating deals in the hotel space.

To find a sponsor that takes down 100% of a property first with 100% of its own money is already rare. This means it has total skin in the game. I won’t fault such a sponsor for syndicating some of its ownership for diversification.

Can’t Always Get Every Investment Right

Even a great investor will connect the dots wrong at some point and lose money. That’s just the nature of investing. You got to take the licks and keep on going.

However, the hope is that over time, we are able to learn from our mistakes. The more experience we have, the more we tend to recognize investment opportunities.

One of the biggest problems I have as an investor today is the lack of time. Being a parent to young children is a full-time job. Therefore, I know I will never be a great investor, which is why the majority of my public capital is in index funds.

But for those of you who have time, I strongly suggest practicing connecting the investment dots on a daily or weekly basis. There are obvious investment signs everywhere. You just need to spend the time to find them.

Related posts:

Focus On Trends: Why I’m Investing In The Heartland Of America

To Get Rich, You Must Practice Predicting The Future

Stocks Or Real Estate? Which Is A Better Investment

Readers, what are some overlooked investment opportunities right now? What investment opportunities seem obvious to you, but perhaps not to others? What could I be missing in my bullish rental property thesis? […]

MONEY

5 Things Jeff Bezos Didn’t Have to Worry About When Retiring Early

lev radin / Shutterstock.comEditor’s Note: This story originally appeared on The Penny Hoarder.Jeff Bezos is now a retiree. Kinda, sorta, that is.
Bezos officially stepped down from his role as Amazon CEO on July 5, after announcing his plans to resign in February. As he stepped away from steering the company he founded in 1994, his net worth was $211 billion, making him the richest person on the planet.
At 57, Bezos is seven years younger than the average retiring worker in America, who calls it quits at 64. The median net worth for someone between the ages of 55 to 64 is $212,500. That means Bezos retired with roughly $210,999,787,500 more than his peers.

Just to be clear, Bezos isn’t totally retiring. Like a lot of early retirees, he’s transitioning to a different type of work. He’ll still serve as executive chairman of Amazon. He’ll devote more of his time to passion projects, like fighting climate change and overseeing The Washington Post.
He’ll also celebrate his new chapter with a big trip: He’s planning an 11-minute getaway into space when his rocket company, Blue Origin, does its first human spaceflight this month.
So yeah, suffice it to say that Bezos’ retirement is going to look a lot different from yours. Still, it’s possible for regular people to pull off an early retirement like Amazon’s founder.
5 Things to Expect if You Retire Early (and You’re Not Jeff Bezos)
wavebreakmedia / Shutterstock.comRetiring early used to be a lot more affordable for middle-class people because pension plans were widespread. But today, you’re most likely to retire with a defined-benefit plan — which means you’re guaranteed a retirement benefit — if you work in public service. Otherwise, you’ll need to live off your retirement savings, Social Security benefits and any other income sources you have, like earnings from a part-time job.
If you’re planning to retire early, you need to be prepared for the financial realities that members of the three-comma club don’t have to worry about. Here are five things to expect if you’re a non-billionaire who wants to retire early.
1. Health Care Costs Will Be Expensive
Burlingham / Shutterstock.comBillionaires like Bezos obviously don’t have to worry about paying for health care. But for ordinary folks, medical expenses in retirement are a big concern. Typically, you aren’t eligible for Medicare until age 65. Paying for private health insurance when you’re in your 50s and 60s can take a big bite out of your budget.
According to ValuePenguin, a Silver Plan purchased from a national or state marketplace created under the Affordable Care Act costs $1,016 a month for the average 60-year-old. Someone who’s 64 can expect a monthly premium of $1,123. Health care costs typically rise faster than overall inflation, so if you want to retire early, it’s essential to budget for medical expenses.

2. You’ll Actually Have to Pay Taxes
Dragon Images / Shutterstock.comBillionaires like Bezos, Warren Buffett and Elon Musk recently made headlines when ProPublica reported that the richest Americans pay just a tiny fraction of their incomes in taxes. According to the report, Bezos’ “true tax rate,” i.e., the amount he paid on his growth in wealth, was just 0.98% each year for 2014 to 2018.
Ordinary people can expect to be taxed at a much higher rate than Bezos, even in retirement. Withdrawals from traditional 401(k)s and traditional IRAs are taxed at ordinary income rates. In many cases, you’ll be hit with a 10% penalty if you take a distribution from your retirement accounts before age 59 ½.
Even your Social Security benefits aren’t off-limits. Up to 85% of your benefit is taxable if you’re a single filer with more than $34,000 of income or you’re married filing jointly with an income above $44,000. Of course, you can still work when you collect Social Security, but there are limits to that.

3. Social Security Planning Is Tricky
fizkes / Shutterstock.comBezos probably hasn’t given a lot of thought to his Social Security claiming strategy. That’s a luxury ordinary people don’t have. About half of seniors rely on Social Security for at least 50% of their income, according to the Center on Budget and Policy Priorities. The average Social Security check in 2021 is $1,543 a month.
Deciding when to take Social Security gets extra complicated if you’re retiring early. Financial planners often recommend waiting as long as possible to start taking benefits. Waiting until age 70 results in a monthly benefit that’s 76% higher than you’d get if you started benefits as early as possible, which is generally age 62. But if you no longer have a paycheck, you may have no choice but to start benefits early.
Keep in mind that Social Security cost-of-living adjustments are puny compared to the actual cost increases seniors face. In 2021, Social Security benefits rose by just 1.3%. Taking benefits early could stretch your budget to the limits in your later retirement years. Your benefits won’t keep up with inflation, so they’ll pay for less and less over time.

4. You May Have to Choose Between Early Retirement and Helping Your Kids
pixelheadphoto digitalskillet / Shutterstock.comBillionaires don’t have to make hard choices like saving more for retirement versus helping your kids save for college. But you probably do.
Most people only have so much money they can afford to invest. When you’re planning to retire early, you need a nest egg that can sustain you for at least 30 to 40 years. A general rule of thumb is that you should plan to replace 70% to 80% of your pre-retirement income.
If you’re serious about retiring early, that may mean you can’t contribute to a 529 plan for your children or grandchildren, or help out with their tuition. It’s essential to be upfront in this situation and communicate as early as possible with your kids about your plans.

5. Early Retirement Isn’t Always a Choice
Ricardo Reitmeyer / Shutterstock.comNo matter how carefully you’ve fine-tuned your retirement plans, life can pull a whammy on you. By some estimates, as many as half of all older workers are forced to retire earlier than they planned due to illness, layoffs and caregiving responsibilities.
When you aren’t rich, a forced retirement can devastate your finances. Even if you want to work as long as possible, it’s essential that you plan for the possibility of an earlier retirement. That means saving and investing as much as your budget allows during your working years, since your retirement could be longer than you expect.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.
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MONEY

6 Sane Ways to Lower Your Pet Bills

Africa Studio / Shutterstock.comYes, your pet is just like family. But you don’t need to waste money caring for your furry friend.
The American Pet Products Association estimates that in 2021, U.S. pet owners will have spent an estimated $109.6 billion on their pets.
Don’t go crazy adding extra cash to that total. Instead, consider these ideas to keep your pet and your budget happy.

1. Look for low-priced vet care
Syda Productions / Shutterstock.comThere is a host of no-cost and low-cost animal medical care providers. They offer inexpensive vaccinations, spaying, neutering and more.
Contact rescue or other animal-welfare groups, including the one where you adopted your pet. You can get a rundown of animal shelters and rescue groups in your area at Petfinder.com. The American Society for the Prevention of Cruelty to Animals (ASPCA) also has a list of low-cost spay and neuter programs for which your pet may qualify.

The Humane Society has a list of charities that provide needy pet owners with financial assistance for the medical care of pets. Click on your state to find a charity near you.
2. Consider pet insurance
Vitalinka / Shutterstock.com
As we’ve previously reported, the cost of pet health insurance depends on many variables, including your pet’s species and breed, where you live and your pet’s age.
To give you an idea, the average accident and illness premium for dogs was $594.15 annually in 2020, according to the North American Pet Health Insurance Association. For cats, it was $341.81.
Such insurance can make sense if your pet is a member of a breed that has a history of high-cost medical needs.

3. Don’t forget to coupon
Anton27 / Shutterstock.comSome major coupon sites that often have pet food and supplies include Coupons.com, The Krazy Coupon Lady and Living Rich With Coupons.
Check online pet food suppliers, too, including Chewy and EntirelyPets. They often offer major discounts on prescription food and other in-demand products.
If you are signed up for cash-back sites — such as Rakuten, Swagbucks or Mr. Rebates — you can save even more on your online pet supply purchases in the form of a cash-back check. If you’re not signed up for one or all of these sites, you are missing out on a painless way to save money online. Check them out.
Also read: “8 Ways to Save Money on Pet Food.”
4. Consider boarding alternatives
PongMoji / Shutterstock.comRather than pay to board your dog or cat when you go out of town, consider taking your pet with you on trips. PetsWelcome helps you find animal-friendly accommodations.
Also, check with Rover or with your veterinarian to find a low-cost, in-home pet-sitter. Or, arrange to swap pet-sitting duties with friends who also need their pets cared for when they’re away from home.
5. Create low-cost toys
Konstantin Aksenov / Shutterstock.comRetailers sell a variety of pet toys at a high cost, but it’s just as easy to devise low-cost alternatives. You can make a cat scratching post by wrapping sisal rope around a post. A twisted towel can make a great toy for tug-of-war with a dog.
Just make sure you avoid toys or materials that could prove toxic or result in choking. Talk to your vet or those at local animal shelters for other ideas.
6. Prioritize prevention
Branislav Nenin / Shutterstock.comAs with humans, pets are less likely to need expensive medical attention if they have good health habits.
Get the recommended immunizations for your pets, stick with recommended dog and cat foods, keep cats indoors and make sure dogs get the exercise they need.
Be aware of the common hazards your species and breed face. Check out “10 Pet Dangers You Don’t Know About.” Get tips from the animal-safety advocates at American Humane.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.
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