Are These Things Holding You Back From Making Money?

Everyone wants to make more money, but things are holding them back. You probably agree with this and can think of a ton of features that aren’t conducive to earning power. For example, some people don’t have the right qualifications while others lack the opportunities to grow.

While these are pitfalls, it’s usually the small stuff which has the biggest impact. Plenty of people go about their daily routine without realizing they are inhibiting their finances. Yes, you might be the main cause of your lack of wealth.

To help you take action, underneath are the things that are holding you back that you wouldn’t have guessed.

Your Commute

The worldwide average for a commute is close to fifty minutes; however, it differs depending on your location. Some people have to wait for a full two to two-and-a-half hours before they reach the office. Apart from being tiresome, it’s also an excellent way to lose money. Without enough time in your schedule, it’s almost impossible to put plans into action.

A tip: try and be productive in the morning. Rather than reading the news or listening to music, you can send emails relating to your side hustle. Once it gets off the ground, your earning potential will skyrocket.

Your Bills

Although debts are obvious, it’s tempting to see them as short-term problems. As soon as you have the capital, you’ll pay them off and they won’t be an issue. Of course, the fact they are still around and have been for years is a bummer. And, it means there is a chunk of your already small budget that is set aside each month.

You could use it on investments but you have to pay back your creditors. People with several debts can use a consolidation loan to their advantage. By turning it into one arrear, you won’t waste as much money on interest and you’ll pay the advance back quickly.

Your Qualifications

Qualifications are supposed to help you boost your wealth and eliminate debt. In some instances though, they are counterproductive.

Think about the length of time it takes to acquire a certification. Then, you need to find an employer who will see it as a positive and reward you with a proper wage. This is a long time to wait, which is why you need to cut your studying time in half.

An online MBA without GMAT tests is the answer as students learn the tricks of the trade without wasting time. That way, you can start making money asap.

Your Family

Nobody gets to the top of the ladder without help. Your family is the key because they have resources which they are happy to share.

Whether it is money or childcare, you need to cut costs while spending wisely and parents and siblings are helpful in this regard. So, being estranged can limit your options and make your finances vulnerable.

Although it’s harder than it sounds, making up will give you the opportunity to double your earnings.

Do any of the above hold you back? Are you ready to make a change?

5 Fastest Growing Industries to Invest In This Year

Are you an investor who wants to venture beyond index funds to pick individual stocks?

Choosing the company to invest in is usually the most challenging task for any beginner in the stock exchange market. While some fundamental filters are applied to any search for individual stocks such as narrowing your search to leaders in the respective industries as well as sectors with viable competitive advantages, there is another filter that can help you refine your search even more: considering the fastest growing industries.

Here are some of the fastest growing industries that you can invest in this year.

1. Software-as-a-Service

Software-as-a-Service is an industry that has seen rapid growth in recent years. It is also known as SaaS. This sexy name broadly defines companies who are profiting from selling cloud-based services.

Some of the market leading SaaS companies are customer relationship platform company Salesforce, and a customer support platform is known as Zendesk. Both companies trade access to their platforms by charging recurring fees and both companies have seen extraordinary revenue growth. Their revenues have improved by over 20% year after year.

2. Fintech

Often associated with SaaS companies because of their highly scalable business models and their cloud-based services and products, financial technology companies rely heavily on to meet the financial needs of businesses and customers.

Services offered by Fintech companies include providing e-commerce platforms, payment solutions, peer to peer payments as well as rapid financial solutions.Companies in this industry are experiencing explosive growth. E-commerce platform such as Shopify saw their revenue rise by 62% in the second quarter of 2018.

3. Artificial Intelligence

Artificial Intelligence is one the trending topics, and there is a good reason for this. AI applications are found throughout many technologies.

The Alphabet Company is relying on AI across every area of its business. AI shows up in Alphabet’s apps such as Google assistant and in other ways such as auto-generating data to help users compose emails faster.

Alphabet company stated that AI has helped to drive rapid growth as they expect over 26% growth in business. NVDIA’s revenue soared over 60% a year because of inculcating artificial intelligence into their company.

4. Cloud computing

Cloud computing is the use of off-site servers to store, manage and process data.

Fortunately for investors, the two leaders in this industry are Amazon and Microsoft which are still seeing surging growth in their cloud business.

Amazon web services revenue soared over 49% annually indicating accelerated growth.  Microsoft also reported a faster growth rate in its cloud business.

5. Fashion Industry

The fashion industry is also one of the growing sectors. It involves what you use every day.

Clothing can never lose the market. It is just the season you are in that determines the type of cloth you wear. If you are looking to invest in the fashion industry, then better spend your money on stocks as compared to wearables.

Kate spade sales are currently high with its share price index steadily increasing in value. It is one of the most promising companies in the fashion industry. Kate spade stock forecast is favorable; you better take this opportunity.

 Wrap up

Many other industries are experiencing supernormal growth such as electric cars, e-commerce and streaming music.  You have a wide variety of vibrant sectors to choose from.

Budget Vs. Financial Plan: Here’s Why You Need Both

The term “financial plan” can be a little confusing because most people people have never actually seen one. To add to the confusion, there are a lot of misconceptions of what a true financial plan is or isn’t.

For example, while there might be some overlap between a budget and a financial plan, it’s important to know that the two are distinctively different. Your monthly budget helps you keep tabs on your monthly spending habits to understand the full picture of your expenses and how much “room” you have left over at the end of the month. Your financial plan on the other hand is a roadmap to your financial future, telling you exactly what you need to do on a monthly basis to maintain your lifestyle (and your budget) into your future.

In this article, we’ll show you what a financial plan is, what it can do for you and why you’ll need one for your financial future.

Financial Planning 101

The ultimate goal of any financial plan is to align your financial activities with your lifestyle and retirement goals. For most people, this means being able to maintain their lifestyle into the future.

In other words, think of it as being able to maintain the same home, vacations, restaurants, hobbies, and other things that you enjoy both while you work and when you’re retired. Since it’s a pretty big goal, your financial plan needs to account for several things, not just your budget or your investments. Here are the big three:

1. Investments And Wealth Management

While a good financial plan encompasses much more than investing, it is still the foundation of any plan, and essential to building your wealth over time. For this reason, it’s the most commonly recognized part of a financial plan.

The uestion for most people is, “What should I invest in?”. Broadly speaking, the answer is stocks and bonds. However, rather than trying to pick individual stocks and bonds, or paying someone to try to do that for you, research has shown that “indexing” produces better long-term results.

Not only does indexing tend to perform just as well or better than any mutual fund or stock broker, it comes with a major advantage: it’s cheap. In fact, what most people don’t know is that the money you’ll save in fees almost guarantees that you’ll do better than other alternatives over time. If you have mutual funds that you got from a bank or financial advisor, fees could literally take half your life savings with you barely even noticing, because they’re skimmed off the top before your returns are calculated.

Aside from the fees, the other potential wealth killer is taxes. A solid financial plan will tell you how much to invest in various tax-sheltered accounts like RRSPs, TFSAs and RESPs to help you hit your goals with more money in your pocket.

2. Borrowing and Mortgages

It’s true that not all debt is bad. In fact, money you borrow to purchase a home is almost always good. The trick is to understand the difference between good and bad debt, to avoid pitfalls, and to structure things so that you don’t spend more than you need to.

A classic example is having mortgage payments and credit card payments at the same time. Your mortgage interest rate should be in the low single digits, while your credit card interest rate is probably 20% or more. Often, in a situation like this, it makes sense to use your mortgage to pay off your credit card and trigger instant savings.

Optimizing your borrowing decisions has the potential to put more cash in your pocket on a month-to-month basis, and save you hundreds of thousands of dollars over your lifetime.

3. Insurance and protection

At some point, almost every household will experience something unfortunate that can set you back: an accident, illness or even a death. When it happens, the insurance component of your financial plan is there to make sure that a health crisis doesn’t also become a financial crisis for you, your spouse or any dependants.

Just remember that the ultimate goal of your plan is to maintain a consistent lifestyle both now and in the future. Your insurance can cover the bills for as long as you need to still reach that goal.

There are three types of insurance that can act as a safety net for your financial plan: Critical illness insurance, disability insurance, and term life insurance.

Where your budget fits in

Remember that part above about your budget not being the same as your financial plan? Well, it’s not, however it is in fact a very large part of your financial plan.

On one side, there’s the expenses that we all have enjoying our lives: the housing, travel, food, and hobbies which your plan is trying to maintain over the long run.

On the other side is knowing how much you can afford to put towards your plan on a monthly basis. This includes everything from the debt payments, investment contributions, and insurance premiums that make it all possible.

So do you choose the joy of a $5 latte right now or the joy of retiring a few years sooner?

Truthfully, there’s no right or wrong answer here. A financial plan is like a crystal ball that can show you where your budget is likely going to take you so you can make the best decisions.

Life is a balance. You want to have fun and you also want to be responsible. You want to enjoy the here and now and you want to know the future will also be good. Our advice? Make a budget, build a plan, and march forward with your eyes  wide open.

Grow your wealth. Manage your borrowing. Protect your assets. Planswell gives you a free plan that ties investments, insurance and mortgages together so you can maintain your lifestyle throughout work and retirement.