3 Ways To Manage Your Company’s Finances


3 Ways To Manage Your Company's Finances

One of the most complicated parts of running a business is managing its finances. They can be a source of stress for multiple reasons; not only could there be legal compliance issues at play, but you’ll need to make sure you have enough tucked away and coming in to cover your expenses.

Figuring out how to manage your company’s finances can be difficult, however, especially as a first-time business owner. Quite a few factors have to be thought of while multiple things may need to be managed. You’ll need to keep a few things in mind to make this easier.

How To Manage Your Company’s Finances: 3 Top Strategies

  1. Plan & Forecast

Having a financial plan can be vital to ensuring you manage your finances effectively. In many cases, it can be impossible to do so without it. While this can change somewhat from business to business, you’ll need a framework to keep track of your expenses.

As an example, you could plan to spend:

  • 50% of your revenue on payroll and similar expenses;
  • 30% of your revenue on your growth;
  • 15% of your revenue on developing new products or services, and;
  • 5% set aside for unexpected events.

While you can change the percentages based on your business, having a similar framework can help you manage your company’s finances much better.

  1. Hire A Professional

If you don’t know how to manage your company’s finances effectively and the thought of it stresses you out, you can always hire a professional. You wouldn’t even need to have a full-time employee oversee this; you can outsource it to save on costs.

The main advantage of this is hiring them as and when you need them. If you only need help with taxes, for example, then working with a tax advisor can be well-recommended. It’s a cost-effective way of managing your business’ finances without needing to spend a lot of time stressing about it.

  1. Be Realistic, But Have Ambition

As an entrepreneur, you’ll need to have a lot of ambition; you’ll need it to keep growing. At the same time, however, you’ll also need to be realistic. While that’s predominantly used in reference to business goals, it’s also the case for your finances.

You’ll make countless financial decisions as you run your business. Not all of these are going to be as positive as you’d think. Some might turn out completely different from what you had intended. You’ll need to keep this in mind as you’re making your decisions.

Despite the effort you put into managing your company’s finances, things can sometimes go wrong. The key to this is learning from your mistakes and ensuring you keep moving forward. At the same time, make sure you have backup plan in place for anything that could go wrong.

How To Manage Your Company’s Finances: Wrapping Up

Once you know how to manage your company’s finances, it becomes much less stressful. While you’ll still need to make sure things are done properly, it doesn’t need to be as overwhelming as you’d expect. There shouldn’t be anything getting in the way of making it much simpler.

Business directory

Empowering the money mindset of teenagers and young people


Empowering the money mindset of teenagers and young people

In this episode, Patience talks about the difference between financial literacy and financial mindset and discusses the hearsay about money and young people. She makes a reflective pause on a quote by Maya Angelou, shared some data and finished the episode with some gentle tips to take away.

Patience is a certified mindset coach and NLP practitioner at Otentik Mindset. She is passionate about supporting young people in enhancing and getting new skills that will help them as they approach adulthood.

Working with young people aged 12-25 from diverse backgrounds, having various necessities in need of clarity for their future. She is passionate about supporting and helping young people create a healthy and sustainable mindset.

Helping young people develop achievable and measurable goals to monitor success and motivate ongoing behavioural change is her focus.

She supports young people develop and exploit their strengths to bring successful behavioural changes in their lives.

The focus is on enabling mindset shifting for mindfulness, finances, personal branding, relationship and mental wellbeing.

 

Links & Resources
Email: [email protected]
Website: www.otentikmindset.com
Free quiz: www.otentikmindset.scoreapp.com
The Money Mindset Formula mini-course: www.otentikmindset.com/offers/bkzEvms2/checkout
Instagram: www.instagram.com/otentikmindset
Facebook: www.facebook.com/otentikmindset
LinkedIn: www.linkedin.com/in/racineafric1ne
This podcast is bought to you by Parents in Biz
Parents in Business website www.parentsinbiz.co.uk
Read the latest issue of the Parents in Business Magzine www.parentsinbiz.co.uk/parents-in-business-magazine
Parents in Biz Directory www.parentsinbiz.co.uk/directory
How to get involved with Parents in Biz www.parentsinbiz.co.uk/how-to-get-involved

Please rate, review, subscribe and share

 

3 Tips on Preparing and Managing Finances in Your Retirement Phase


3 Tips on Preparing and Managing Finances in Your Retirement Phase

Most people only think about their finances when they are preparing for retirement. This is a huge mistake! Retirement can be a costly phase in life, and it’s essential to start planning for it as early as possible. In this blog post, we will discuss three tips on preparing and managing your finances during retirement. Follow these tips, and rest assured that you will have a comfortable retirement!

1) Create a Realistic budget Using Budgeting Apps

The first step to managing your finances in retirement is to create a realistic budget. This can be a difficult task, as your income and expenses will likely change during this phase of life. However, many budgeting apps can help you track your spending and ensure that you are living within your means. Popular budgeting apps include Mint; You Need a Budget (YNAB), and EveryDollar. Try out a few different ones to see which one works best. Once you have created a budget, stick to it! This will be key to ensuring that you do not overspend in retirement.

2) Why It’s Important to Draft a Will

It’s essential to have a will, regardless of your age. However, this is especially true when you are retired. A choice can help to ensure that your assets are distributed according to your wishes. It can also help avoid any family conflict that may arise after you pass away. If you do not have a will, now is the time to create one. Having a will also ensures you’re able to control what happens to you, like being buried or having a Direct Cremation done. You can consult with an attorney or use an online service like LegalZoom to get started.

A will allows you to state how you want your property divided after death and names an executor—the person who carries out your wishes—to make sure it happens as stated in the will. State intestacy laws determine how your property is divided after death without a will. And, if you have young children, a will allows you to name a guardian—the person who would raise your children if something happened to you and your spouse.

3) Invest in Long-Term Care Insurance

As we age, the likelihood of needing long-term care increases. Unfortunately, long-term care can be expensive, and Medicare does not cover it. That’s why it’s essential to invest in long-term care insurance. This type of insurance will help cover the cost of home health aides, nursing homes, and assisted living facilities. Be sure to shop around for the best policy for you. And, make sure that you understand precisely what is covered before you sign up for a plan. Long-term care (LTC) is a variety of services that help meet the medical and non-medical needs of people with chronic illnesses or disabilities who cannot take care of themselves for long periods.

Retirement can, in some instances, be a costly phase in life. However, by following these tips, you can rest assured that you will be able to manage your finances and enjoy a comfortable retirement. So start planning for retirement now, and you’ll be glad that you did!

Parents in Biz Hub

Saving For Your Children


Saving For Your Children

There is nothing harder than trying to save for your children and their future. It’s never too early to consider saving for your child’s future, and it can start from the moment you find out that you’re about to have a family. You might think that you have time, that you have 18 years to think about it, but you can bet that in a blink, your kids will go from nappies to university! Saving for their future might be very important to you, and it should be. Every single parent wants to send their kids out into the world equipped financially and every parent wants their child to have the right education and the chance to put down a deposit on a house.

If you are considering how you can squirrel away enough money for their future, you’re in the right place. It’s never too early to build a nest egg for your children, and they will always be grateful for the effort that you put into giving them the best possible start in life. Once they’re old enough to understand the value of money, you can talk them through how you’ve been saving for them and their future. You can also talk to them about the practicalities of saving money now, so that they can start saving the same way. It’s very easy to think that taking out direct lender loans and pumping money into their future is smart, but you have 18 years to get this right and you want to come out from the end of it being smarter than ever. Whichever route that you choose to go with saving for their education and their future, you have to consider right now being the time to save for your children’s future.

Regularly setting money aside from birth is one of the smartest decisions that you can make about your savings plan for your children. You want your kids to have the best of everything but that doesn’t stop when you’ve chosen their preschool, monitored their diet and helped them to get into university. One of the biggest mistakes you can make as a parent is just assuming that their finances will one day come together – you’re in control of this, too. At least until they’re 18! So, with this in mind, we’ve got some of the steps that you can take to ensure that your children’s welfare is taken care of beyond their school age.

  1. Teach your children about money. This particular tip will wait until they are older, of course, but providing for their future isn’t just about saving everything into various accounts. You have to equip your children with the tools that they need to save money and spend wisely. There are so many opportunities out there to talk to your kids about money and you can use those opportunities to teach them so much more about money, too. If they are knowledgeable about saving for money, they will copy what you do! Talk about budgeting and saving, how to avoid getting into impossible debt and which debts are positive ones.
  2. Get the entire family involved. Grandparents, aunts, uncles – anyone who wants to give your children money for occasions will always be generous, but you need to get them involved. If they want to give money, ask them to help to fill the savings pot for their university days. Ask them to add to their future house deposit fund. There are so many ways that you can save for your children and getting the whole family involved is one of the most important things that you can do because then you aren’t doing it all alone. All of those holidays that your children will get help from grandparents in will help you to build up their future and prevent you from drowning in toys. If you are expressive over what you would like for your children early, you can ensure that you are able to give your kids savings that will help them in their future – and what grandparents won’t want that?!
  3. Junior ISA. If you haven’t heard of one before, a Junior ISA allows you to save just shy of £4,500 per year tax-free for your children. This is money that can only be accessed by your children when they turn 18. You have to remember, though, that most parents prefer the cash ISA over the stocks and savings ISA. The stocks and savings ISA is usually the one that outperforms the cash ISA, so be aware of that when you are making your choice. The best thing that you can do here is speak to a financial advisor who can walk you through the different types of ISA and all of their benefits. Cash Junior ISAs are a great option because you can build up your child’s savings over time.
  4. You could start a university fund. Opening a university savings account is one of the best things that you can do for your kids. Sure, they could take on student finance loans and pay for their education that way but if you could save up enough for them not to do that, wouldn’t that be the better option? Even if you do save it up, you could also allow them the tuition fee loans and then pay for everything else like their living expenses while they study. That’s one of the smartest things that you can do here, because your children can then live comfortably while they study and they don’t have to run themselves ragged trying to work and study all at the same time.
  5. Startup a pension. No, really. You might think that it sounds ridiculous to start a pension for a baby, but it’s going to be something that you pass down to them when they are of pension age. You can put a maximum of £2,800 per year into a SIPP – self-invested personal pension – and you could really help them to retire in style. You will be long gone by then, but you are leaving them a legacy that they will really benefit from. Of course, not everyone can squirrel away a large amount of money every month for this, but you can still make sure that they have a future to look forward to.

Parents in Biz hub

 

Tips for Managing Your Money as an Entrepreneur


Tips for Managing Your Money as an Entrepreneur

Being a successful entrepreneur is much more than just running a growing business. One large part that contributes to your success, is your ability to manage finances, in both your personal life and your business. The ability to manage finances, combined with your perseverance, passion and hard work will take your life, and your business, to new heights. Managing finances is often where entrepreneurs fall short and find that aspect of life and business is the most challenging. But you shouldn’t let that stop you from thriving. Here are some top tips for managing your money as an entrepreneur.

#1 Set big goals

Good financial management relies on clear, big goals. Goals are important for the survival of your business because they provide a clear purpose and direction for actions to be followed. A good plan will include the plan to generate higher revenues, but also very specific actions that will support the growth you want to achieve. Boosting sales is not the only avenue for growing your profit margin. You need to consider your business as a whole, for example, where debt in the business can be reduced, processes can be streamlined, tasks can be outsourced, costs can be reduced, and how you can budget your cash flow. The same goes for your personal finances. If there is something you want to achieve, then you need to set actionable goals that will help get you there. It can be helpful to review your finances in detail and compare this to where you want to be in the future, to help you put together an effective, and actionable plan.

#2 Keep your personal and business expenses separate

When you start and run your businesses, you must keep the expenses for both your personal life and your business separate, right from the start. You can do this by opening a separate business account and paying yourself a salary into your personal account. This will help you keep on top of your finances better, make financial reviews much clearer, assist with taxes at the end of the financial year, and avoid any money crunches in your business. If you wish to claim personal expenses through your business, then do this officially, as if you were working for a large corporation. This helps you keep your files and finances all in order and saves a lot of confusion in the future.

#3 Be willing to take risks

Taking risks in business, and in your personal life, is vital if you want to grow. No money can be made from staying in your comfort zone. Regardless of whether a risk pays off or not, you will always be able to learn from it if you can see it as an opportunity to grow. You will quickly learn what does not work, and how you can think more strategically for the next risk.

This does not mean taking risks blindly. You still need to think and plan, to take a calculated risk that will benefit you personally, or your business. For example, you may wish to invest in cryptocurrency seeing as the market is heading this way. Swyftx now offers staking, which means you have the potential to earn rewards on your money. This can be a great risk to take and make your money work for you. In business, you may wish to invest in new products, new suppliers, or new staff to start with.

Managing your personal and business finances as an entrepreneur is vital to your success. Make sure you get clear goals and actionable steps, keep your personal and business finances separate, and be willing to take risks.

Parents in Biz hub

 

Finding an Accountant


Finding an Accountant

If you’re going to be running a business, then you should probably make sure that you have a good accountant on your side to make you aware of any potential issues that may crop up.

Accountants provide a valuable service to any business, helping them to keep track of their finances, doing bookkeeping, and putting together information for tax returns. However, if you don’t necessarily know how to find an accountant for the first time, you may get swept up by the false promises of someone who is not suitable for you. Let’s take a look at how you find your ideal accountant.

What Does An Accountant Do 

An accountant can help you comply with your tax and Companies House obligations by filing the appropriate forms and accounts. A good accountant will be able to offer tax advice so that you’ll have more money to reinvest in your business. If they can help you to grow your business profits, you may actually end up paying more tax, but you’ll also get to keep more at the end of the day. Accountants offering simple compliance services will be cheaper than those proactively helping your business to grow.

Identify Your Needs 

You need to stop and think about what it is you’re looking for in your ideal account. Are you looking for someone who is prepared to help on a sort of purely voluntary basis, or do you need someone who is more involved and capable of providing you with round-the-clock support?

This will have a massive impact on the type of experience that you have because you have to realise that if you’re just looking for someone on a consultancy basis, there are plenty of accountants who can do that for minimum cost. However, identifying your needs will help you to pick the right accountant for your situation.

Where To Find An Accountant

Check out the professional organisations such as ICAEW (Institute of Chartered Accountants of England and Wales), the Institute of Chartered Accountants of Scotland (ICAS), CIMA (Chartered Institute of Management Accountants), or a cross-border body like ACCA (Chartered Association of Certified Accountants) also (Association of Accounting Technicians) who should cover the basics well. Members of these organisations have passed professional exams, have a minimum level of experience, are obliged to stay up to date with changes in the law, have professional indemnity insurance to cover any problems and are signed up to an ethical code.

Budget

Obviously, you have to make sure that you’ve picked the right kind of costs when it comes to your accountant. Some accountants will charge per hour, whereas others will charge more depending on the services that you need. It’s all about making sure that you get the best budget for your situation.

Budget can literally make or break an accountant’s situation, so you have to make sure that you have found the correct account for your specific needs and requirements.

Shop Around 

If you’re not sure how to find the best possible account for your needs and circumstances, you have to make sure that you shop around. You need to take the time to explore all of the different options they have available to you when it comes to accountants because this will ensure that they can do what you need them to do.

Don’t be afraid to take a look at all of the different options that are on offer because this will give you the tools that you need to find your ideal selection.

In conclusion, finding an accountant can be a challenging thing to do. There are many different ways that you can do things, multiple options to take, and a selection of different routes that will impact your situation. You have to make sure that you take the time to explore all of the options available because otherwise, you won’t find the best accountant for your needs. There are many different types of accountants out there, and they all specialise in different things. You have to pick what’s going to be best for you as a business and make sure that you sit down and discuss exactly what is that you need on a regular basis in terms of support.

Recommendations and Resources

Brawta Accounting 

Join the Parents in Biz Hub

Startup section

What is the Purpose of an Invoice?


What is the Purpose of an Invoice?

You’ve all seen an invoice before, I suspect. Most businesses use them; you get them from tradespeople, cleaning services, most professionals. They come in all shapes and sizes, but what on earth is an invoice for? What do they do?

But, hold on, what is the purpose of an invoice? Why bother? Why not just have a bill or something? Well, the invoice plays a specific role in a business, and once you know that, you’ll be well on your way to understanding the subtleties of good business. Let’s take a look at what you’ll need to know.

What is an Invoice? 

So, let’s cover the basics and take a look at what an invoice is.

An invoice is considered to be an itemised list of all of the services or goods that have been provided for somebody. Take note, the itemised portion of this is the most important thing.

Your invoice will contain a detailed breakdown of all the goods and services you have provided, along with each individual cost. The total cost will be put down below, and there will also be a timeline with which to pay the invoice.

What is the Purpose of the Invoice? 

Your typical invoice plays a role in both areas of the transaction, with the business and the customer both benefiting from using one.

First and foremost, there is a mutual benefit in the sense that both parties have a copy of the invoice for their records. Evidence of transactions or purchases, an invoice is a neat and uniform way to know precisely what has been done for each side.

The fact that the invoice is time-stamped means that you can more accurately keep track of what transactions were made and when. The itemised nature of the invoice means that you know exactly what services or goods were paid for and sold.

Because of how an invoice is designed and set up, you have access to a sophisticated method of accepting payments. Invoices add a level of professionalism to your business and mean that when it comes to conducting yourself in the best way, you make a good impression upon clients.

In conclusion, an invoice is a vital component of your business. It provides you with everything you could need when it comes to getting the best possible choices, and it offers you a sleek and easy to work with format for submitting bills to clients. Your business would be sensible to accept using invoices as standard practice, as they provide an easy-to-understand format and an itemised list of the services or goods you provided. A typical invoice is good for bookkeeping, professionalism, making payments simple, and forging positive relationships with clients. As you can tell, the benefits are substantial, so you should definitely consider using an invoice system if you do not already. When you take the time to explore what’s on offer, you’ll see the benefits.

Recommendations and Resources

Invoicing for small businesses software Quickbooks

Send online invoices instantly

Join the Parents in Biz Hub

Startup section

5 Steps to Financial Independence in 2021


5 Steps to Financial Independence in 2021

Do you want to get financial independence in 2021? A lot of people do, as the coronavirus pandemic has really illustrated how scary financial dependency can be on anything. Financial independence is definitely a desirable prospect right now.

Being able to achieve true financial independence, which is living without any debts, and being able to do so entirely of passive income streams and savings does require a little bit of effort at work. With that being said, here are five steps that you can take to reach financial independence in 2021.

  1. Planning

If you’re going to achieve financial independence, you have to make sure that you have planned to do so. Unfortunately, financial independence is not something that you can just get up and decide to do one day just like that.

Instead, you have to go through a rigorous process of planning and preparing. What does financial independence look like to you? Is it living without any debt? Is it being able to live off your own savings? Every person will have a different picture of financial independence according to what stage of life they’re at. For example, recently cryptocurrencies like Bitcoin have hit the headlines and therefore there is a chance that you might be considering investing in cryptocurrencies for the first time. Correspondingly, if you would like to learn more about the potential advantages of investing in cryptocurrencies like Bitcoin, taking a look at this guide to reputable Bitcoin banks (bitcoin bank seriös) on the Kryptoszene website can provide some helpful pointers. As with any financial matter, doing your research is crucial and cryptocurrencies are no different in this respect.

The first thing that you’re going to have to do is make sure that you plan. Think about what financial independence means to you, how this is all affected by your current situation, and what you need to do to get things done properly.

  1. Budgeting

Budgeting is a very important part of financial independence because you have to start saving and putting money away. You can’t do this unless you have a clear understanding of your own budget and financial situation.

Basically, this involves sitting down, looking at how much you make every month or year, and then looking at what your expenses are for that same period. You need to know exactly what you need to buy, how much it’s going to cost, and what’s available to then put away at the end of all of it.

  1. Get Rid of Debt

If you want to be truly financially independent, then you have to make sure that you pay off any outstanding debt you might have. The problem with outstanding debt is that it becomes a massive issue and prevents you from becoming financially independent because you have to pay what you owe to people. Whether it’s student loans, credit card loans, or a purchase that you’ve made on credit, you need to make sure that you pay it off quickly.

Ultimately, however, you do need to consider that there are sometimes charges for paying back too much too early, so instead, try and find the maximum that you can pay back every month without incurring a fee for early payments.

  1. Be Frugal

Living cheaply doesn’t necessarily mean that you have to skip out on the nice things, or even that you have to go without things, but there is something to be said for frugality.

Ultimately, it’s all about making sure that you live a frugal lifestyle as possible because this is the fastest way to start saving money. You have to really stop and think about what you’re doing, and the way in which you intend to do things, because otherwise, you may find that you don’t necessarily get access to what you want or need.

Ultimately, you just have to stop and think about how much you spend, what this means for your overall budget, and if you could spend a little less from time to time. It means you can put more away, which means you’re one step closer to being financially independent.

  1. Think About a Career Change

Ultimately, your plan for financial independence may require you to think about getting a career change. You may love your job or business, and you may love where you are, but you may also not be financially independent.

Changing up your business model or career may well find you looking for a job which pays more, or is going to give you assets that are laid to cut back on some of your spending.

To succeed with a career change, you need to focus on marketing your “transferrable skills” from your current role into your new one. A service like ARC Resumes can help you in this regard. Taking a course for your intended new career will also help as it shows you are prepared to take this new role in your life.

Closing Thoughts

Becoming financially independent can be quite a challenge for people. It’s not always the easiest thing to do, especially if we are living in such challenging circumstances. However, most people will have come from this entire pandemic with the resolve to become financially independent, because the idea of having to keep on living in the way that they did is no longer appealing.

There is absolutely nothing wrong with wanting to be financially independent, it’s just how you go about doing this. Obviously, you have to be safe and sensible with your finances, because you should never put your home or your career into jeopardy unnecessarily. But, there are steps that you can take to achieve financial independence in 2021.

Primarily, you have to think about what financial independence means to you. It’s important to take a look at all of the different options that are available, in order to find what works. You’ve got quite a few choices, which means you can do whatever you need to do to make it all work out in the best way possible. There are many different things to consider, multiple choices to explore, and a broad selection of other options to think about.

Ultimately, reaching for financial independence is no bad thing. It’s all about making sure that you want the very best of options, and that’s completely understandable. In the wake of the coronavirus pandemic, a lot of people are going to be reassessing their financial priorities, and you will just become one of them.

Parents in Biz hub

 

3 Ways to Get More Sales Online


3 Ways to Get More Sales Online

Generating sales online can be difficult. You have to make sure you have the optimum kind of sales strategy in place in order to get the best possible results. Understandably, this is quite difficult if you’re never done it before which is why you may need to get your hands on a couple of pointers.

If you’re not sure what to do for the best, then don’t worry because we’ve got you covered. Here are some of the best and most interesting sales tips that we can come up with.

Promote Your Products

Now obviously, you can’t do anything if you don’t promote stuff properly. You have to make sure that you promote all of your products to give yourself the best possible options.

Product promotion can take the form of advertisements, social media connections, telling people about it, and making sure that everyone knows that you’ve got something yourself. If you do this, then you’re going to have a much better chance of getting your products out there and increasing the number of sales you have.

Network

If you want to try and promote the products that you have, you have to make sure to network. Networking is so important because it gives you the opportunity to connect with your audience in a brand and exciting way.

Go to sales conventions, join social media, do what you need to do, but the important thing is that you talk to people. You build relationships, your network well, and it means that when you want to get something sorted, you can do so easily.

Networking is a pretty vital skill, and definitely, one that you need to have in your arsenal, so you should get the hang of what it’s all about.

Experiment

Experimentation can often be a big part of getting something right. There are a lot of instances where you’re going to have to experiment to find out exactly what it is that you want to do.

Don’t be afraid to experiment with a lot of options to figure out what’s for you. Eventually, you will hit on the ideal action to take that will promote your product in the way that you want it.

Experimentation can often take time, but it’s definitely worth it in the long run, which means you need to stop and explore all of the different options in order to find what works for you.

In conclusion, improving sales online often takes time and effort. However, the results can be definitely worth it if you take the time to examine all of the options that you have. It’s definitely a case of making sure that you experiment with what’s on offer in order to find the ideal combination of details and ideas to work for your specific business. There is no guaranteed blueprint for any business that wants to promote their products and improve their sales, it just takes a lot of figuring out what works for you, because you have to run with your own unique angle

Parents in Biz hub

Making Your Money Work For You


Making Your Money Work For You

Making enough money to sustain your family and your business is hard. No way around it; it’s a simple fact of life. In today’s ever-fragile economy, practically nobody is safe from the effects of coronavirus on the world economy, and jobs are more at risk than they have been since the 2008 financial crash. Due to this fact, many business owners are paring down and becoming more careful, more frugal, and playing it safe. While playing it safe is sometimes necessary to achieve your goals and stay financially risk-free, making your money work for you takes guts, and isn’t for the safe-players.

What Does ‘Make Your Money Work For You’ Mean?

Making your money work for you means investing it. Money invested in assets means it can expand as the asset accumulates value. Take your home, for example. When you bought your home, it was worth what you paid for it. In ten years’ time, with good maintenance and the occasional renovation, it will probably be worth more. You have invested money in an asset which has then grown in value, and therefore the money you earn from selling the house will turn a profit. This is called return on investment or ROI. Your wealth has built up over time, simply by being invested in a valuable asset.

How Do I Invest If I’ve Never Done It?

Your home is only one example of a plethora of investment opportunities out there. Investment in assets doesn’t stop at homeownership; assets can also include land, cars, jewellery, or shares in a company. Many people own shares in the company they work for or have strategically invested in small businesses which are on the rise. Take Netflix, for example: if you had invested $990 in Netflix shares when it went public in 2002, you would now be sitting on $340,956. You didn’t go out and graft for that money, it simply increased over time, as the value of the company it is tied up in began to rise.

Of course, it’s not usually that simple. Buying shares or investing in cryptocurrency such as bitcoin, for example, is a risk. However, if you’re to do your due diligence when it comes to researching the various investment options such as cryptocurrencies by looking at reviews and informational resources such as these bitcoin billionaire opinie, or others, then you can better understand the risks that you could be taking with your finances.

You are not guaranteed to get any return on investment, and if the business fails, you will lose money. That is why those new to the business should take advice from companies who use safe channels, such as Forex Trading, to invest. As well as this, it is important to start small, building up your investments once you gain experience and knowledge in your field of investment.

How Do I Get Paid From Investments?

This depends on the type of investment you have made. If your home is your investment, you will be paid either by selling it or letting it out to a tenant. If you buy shares in a company, you will be paid each year in dividends. Stock and cryptocurrency investments fluctuate, and depend on the channel you invest through.

Making your money work for you is an incredible way to sustain your income and help you achieve your financial goals!

Business directory

 

1 2 3