Wouldn’t it be great if you could have two full-time jobs, purely for the benefit of having two full-time salaries? Unfortunately, we only have 24 hours in the day, and it would be nice to sleep at least some of those hours. Even though working around the clock is not an option, it would be great to somehow get a passive/side income (also known as “residual income”). It would give us a reason to not spend so much time watching T.V. or doing other unproductive activities. While there are hundreds of ways you can build residual income, we want to focus on ways that require the least amount of effort and knowledge to get started. We understand you probably have enough going on without trying to create a whole second career for yourself. Here are 6 ways to build residual income in your spare time.   Sell Your Stuff               As we mentioned before it is easier than ever to sell your stuff. You can take it to a physical store or sell it online - there are many options for getting rid of your stuff and getting paid at the same time. Clothes, unused (but still good) electronics, or random housewares you never got around to using – there is a market for everything for stuff that you don’t want (but someone else could benefit from).   Start a YouTube Channel             Gone are the days that you need a high-tech setup to shoot video and put it out there for the world to see. Now, anyone with a camera (even if it’s just on their phone) can shoot a video and post it on the internet for the world to see. A YouTube channel can generate income for you by getting sponsorship deals and advertising revenue (depending on how popular your channel is). One quick tip for building a successful YouTube Channel – solve problems for other people based on your experience and skills. It could be giving recruiting advice for jobseekers or tips on how to run a small business effectively. The internet is full of people searching for ways to solve their problems, so start solving your problems so you can build your brand and your income.   Invest in Rental Properties             This method involves considerably more effort and knowledge than the first two, but it can also pay a lot more consistently. Buying a rental property is now easier than ever. Sites like RealtyMogul allow you to commit an initial sum of money towards the property, and when the property is fully funded, you become an official owner and can start earning a profit on the rental amount. Sites like RealtyMogul make it easy to get started. Owning real estate used to involve lots of effort and required lots of knowledge to do well. Now, these sites set you up for success so [...]

Do you know what your credit score is? More importantly, do you know how you can raise your credit score? Your credit score is a quick indicator to lenders (banks, credit card companies, etc.) that shows how you have managed your money in the past – if you’ve paid your bills on time, if you’ve maxed out your allowed budget, and so on. Previously, we shared what a credit score is and all the factors that determine how high or low it can be for you. Now that you know what a credit score is and why it is important, the next step is understanding how you can increase your credit score to improve the overall health of your finances (and your reputation to potential lenders). In today’s challenging times, many people are having trouble managing money. Maybe your job was furloughed, maybe you took a pay cut, or maybe you lost your job entirely. Stress and uncertainty have become the norm, but that doesn’t mean that you cannot build towards a positive future. In this article, we want to share 4 tips on how to raise your credit score and get to a better place mentally and financially.   Ask for A Credit Increase             The quickest and simplest way to improve your credit score is by asking your credit card company for an increase in your credit limit. This is because one factor that goes into calculating credit scores is credit utilization (how much you owe vs. how much you have left in your limit). For Example: If a credit card has a limit of $5,000, and you owe $2,500, then your credit utilization is 50% (2,500 is 50% of 5,000). If you raise your credit limit to, say, $9,000, then your credit utilization changes from 50% to 28%. This means you are using less of the credit you have available to you, which makes your financial health look better to potential lenders. The important thing to remember is that, just because you increase your limit, that doesn’t mean you can spend more. Keeping your credit utilization low will raise your credit score because it shows you are not maxing out all the credit available to you, which can create a negative perception of you to others.   Keep Old Credit Cards Open             Whenever you think about trying to raise your credit score, one of the first thoughts is to close any credit cards you don’t use anymore and don’t owe anything on. This is a mistake because those open credit cards are helping you. Even though you don’t owe anything on them, they count towards your total credit utilization (like what we discussed in the previous section). If you have a credit card that has a $0 balance and a $3,000 limit, then that $3,000 counts towards your total credit utilization. These cards can also be an “easy win” because you [...]

To most people, explaining a credit score would be like explaining how our lungs work… We know the basic idea We know there are good and bad things that can affect it And that’s about it There are some experts out there that could explain all the ins-and-outs of each, but most of us couldn’t really explain them if we tried. Credit scores are an important part of our lives, but unless you work in Finance, you probably haven’t spent too much time learning the intricate details behind what affects your credit score. Since finances are difficult to discuss and conceptualize, we wanted to break down what a credit score is, how credit scores are calculated, and what factors into establishing your credit score. You don’t need to be an expert in finance to follow this article – this is information everyone needs to be aware of.   What is a Credit Score? A credit score is defined by Investopedia.com as “a number between 300 – 850 that depicts a consumer’s creditworthiness.” Just like in most sports, a higher score is better, because the higher your score is, the better you look to potential lenders. Think about opening a credit card or trying to get a loan for a business or house – your credit score tells the company how likely you are to pay back the money you have borrowed in the past. Low credit scores tell companies that you are a risk for repaying the money you borrow, so they could either deny your loan or charge you a higher interest rate for paying it back. In general, a good credit score is between 670 – 739, and a score of 800 or above is considered as “Excellent.” Now that we’ve covered what a credit score is – let’s talk about what factors affect your credit score. Credit scores are sometimes referred to as FICO Scores because it is a tool and formula created by the data analytics company FICO. The factors are listed in the order of how much they impact your credit score (35% of your credit score depends on #1, and 10% of your credit score depends on #5).   Payment History             Paying bills on time is one of the main factors in either increasing or decreasing your credit score. Making late payments on accounts shows lenders a potential pattern for not paying back the money you have borrowed.  This will make them hesitant in giving you a good deal (or even working with you at all).   How Much You Owe             This factor is based on the amount you owe vs. how much credit you have available. For example, if I have a credit card with a $5,000 limit, and I owe $4,500 on it, then it looks unfavorable to lenders. If you are close to maxed out on the credit you have available, then lenders will [...]

Are you facing challenges right now? These financial challenges could be any kind – whether you are working on a reduced salary or you’ve completely lost your job. This pandemic has caused chaos in every area of life, but none more so than in our financial lives. What was once an area of general safety is now an area of stress, anxiety, and fear. These times have made us shift our priorities and how we approach our finances. But what if it isn’t enough? You may have already made sacrifices to save money. You may have cut unnecessary spending in all areas of your life. You may have started budgeting in an extremely strict way to help save money and you can.   You could have done everything possible to stay financially healthy, but it may be getting to be too much. Now, one of the biggest and most important expenses – your mortgage – is at risk. You are struggling to make payments every month. Some are easier than others, but every month is a challenge. Fortunately, you have options to help stay afloat in these challenging times. I want to share 6 tips for anyone who is in a difficult place financially and is struggling to make their mortgage payments every month.   Decide if you want to keep your home             Before going through any program or process, you must evaluate your house situation – do you want to keep it, or sell it? If the amount you owe is less than what the home is currently worth, the best option for you may be to sell the house. This can be mentally and emotionally challenging for a lot of people, so it is important to have an honest discussion and decide the best thing for you. If you want to keep your house, then you have other options to help with your mortgage payments.   Consider Asking for “Forbearance”             If you are struggling with your finances, you can ask your lender (whoever owns your mortgage, like a bank) for “forbearance.” “Forbearance” is when your lender might reduce your monthly mortgage amount or put a hold on it (where you would not have to pay anything). This solution is only temporary and does not mean you don’t have to pay anything back – it just means you can resume paying the normal amount once your financial situation improves. Another option like forbearance is a Loan Modification Plan. Loan Modifications change the terms of the loan you currently have to make it more manageable based on your current situation.   Consider a Debt Settlement             A debt settlement is where the lender agrees to take less than the amount owed. While this may seem like a good option, debt settlements will lower your credit score and affect any future financial decisions made by companies you want to [...]

Almost 80% of Americans have some sort of debt. It could be from medical bills, personal loans, or payments for assets like a house or car. This large percentage shows that if you are dealing with debt, then you are not alone. Managing finances in ideal circumstances is challenging, and now we are going through times where economic hardship is affecting every person and every business. People everywhere are now either taking salary cuts, being furloughed, or are losing their jobs altogether. A sudden reduction or loss of income can cause people to fall behind in their bills and get into debt. Unfortunately, if you do not pay your debts on time, then you will have to deal with a debt collection agency. Debt collectors are third-party companies that are hired by the lenders (like a credit card company) to ensure that they will get their money. Debt collectors are typically hired if a debt has not been paid in over 90 days. Dealing with debt collectors can be a stressful experience – due to your situation, you may have not been able to pay anything towards your debt, and now you have someone calling you constantly to try and get money. Even though debt collectors have a job to do, there are ways that you can handle them so you can protect yourself and create a plan to get back on the right track.   Do Not Ignore Them             If you have debt collectors calling you, you probably already feel shameful that it had to come to this. This feeling can lead you to want to ignore the situation. However, even though things may seem stressful, ignoring the situation will only make it worse. Not paying towards your debt at all (and ignoring them when they try to get the payment) will damage your credit score because it looks like you are trying to avoid paying anything that you owe. You may be stressed, but you need to face the situation.   Figure Out What’s Yours             Before you can develop a plan on how to pay your debt, you need to know the exact amount owed and to whom it is owed. When a debt collector calls asking for payment, the first thing you can do is request a letter detailing everything about your debt. Getting this information in writing is part of your rights, and this will show if the debt collector is legitimate or not (legitimate collectors have no problem sending you the detailed information in writing). In addition to the detailed letter, ask the collector for information on how to dispute the claim. Many times, people have been asked to pay back a debt that is not theirs, so you need to know how to challenge any errors you see on the report.   Know What They Can or Can’t Do             Debt collection [...]

Lockdowns. Job Loss. Disease. We are living in some of the most difficult times in recent memory. Whether you have children who can’t attend school in-person or you’re struggling with finances due to a job loss or reduced salary, things are stressful everywhere. That stress can be physical, mental, emotional, or even financial.  Saving money is a critical need for everyone right now. Uncertainty is the standard, for now, and we all need to prepare ourselves as best we can to get through this thing safely.   Your priority should always be your health because you won’t be able to do anything if you’re sick (and you don’t want to worry about paying large medical bills on top of everything else going on). Once you feel good about how to protect your health, next you need to focus on managing your money. We don’t know how long this will last, but we do know we need to be smarter about every financial decision we make. Here are 4  smart money moves to implement now to set yourself up for a better financial future.   Budget by Questioning Everything             Before you start spending less money, you first need to know what you’re spending your money on now. Create a list of everything you spend your money on, starting with the two essentials – bills (like energy and rent) and food. You need a roof over your head and food to eat, but everything else should be up for debate. Whether it’s a streaming TV service or your daily run for expensive coffee, there may be things in your life that, at one time, you couldn’t imagine yourself living without. Now’s the time to re-evaluate how you live and how you can set yourself up for a better life in the future. Look at everything you either spend money on or want to spend money on (like toys, electronics, or anything else that may seem like a luxury to others). These things should be the first things to go – either don’t buy them, sell what you have, or both. The goal here is not to prevent yourself from buying anything fun ever again. You just need to be smarter about how you spend your money now to set yourself up for a better financial situation in the future.   Start or Add to Your Emergency Fund             If you haven’t already – start an emergency fund. You can even take the money you were spending on unessential stuff (from the budgeting activity in #1) and start putting that into savings. You were spending it anyway, so you’re not going to miss it. But now, you’ll get to keep it. If you’re still working, in addition to manually saving money, start saving automatically by setting up an automatic deposit from your paycheck into a savings account. Put aside as much as you can, but even 5 [...]

Have you ever had to ask someone to borrow money? Borrowing money is one of those topics that most people avoid talking about – we don’t know how to handle the situation and we don’t feel comfortable either asking for money or being asked for money. However, borrowing money is something that happens thousands of times today. Asking to borrow money makes us feel like a failure, where we cannot pay something for ourselves and we need to ask someone else for help. Asking to borrow money may make some people feel like they are a burden to others. It does not have to be this way. Even if you are in a situation where you cannot pay back money that you are owed, borrowing money can be simple when handled correctly. Here are 4 solid ways to borrow money to help you regain your financial health.   0% Purchase Credit Cards             With the economy struggling in these challenging times, more options are available to people to help with finances. One of these options is the 0% purchase credit card. These are cards that offer a period anywhere from three months to two years, where any purchases made will not have any interest tied to them. Interest on purchases can make the amount owed increase substantially, so being able to purchase large items (furniture, holiday shopping, etc.) without interest is great. However, it is important to remember that the 0% interest period is not forever – if the amount you owe is not paid back in the timeframe, then interest will be applied to whatever is still owed. Credit cards are the most common way to borrow money, but this also makes them the most likely to be misused. It is easy to apply for a credit card, and it is also easy to forget about it and have your debt increase rapidly.   Bank Loans             Another way to borrow money is through your bank. People feel comfortable dealing with their bank because there is already a relationship there – they have your financial history and have many options available to you based on your situation. Banks are a great resource to borrow money because they handle everything legally – they will not try and scam you or use illegal tactics. The only con with banks is the fees for their products – borrowing from a bank can result in high fees for applications and services. However, sometimes borrowing from a bank legitimately is better than borrowing from an illegitimate lender that could be handling things illegally.   Home Equity Loans           A home equity loan is also known as a “second mortgage”, where you can get a lower interest rate and spread out the borrowed time over a longer period. Think of a home equity loan as a credit card – you get approved a certain amount (in [...]

Have you ever planned to lose your job? We’re not talking about where you resign or give a 2-weeks’ notice – we’re talking about being unexpectedly laid off or terminated. Losing your job suddenly and without warning can feel like a punch in the gut – you are caught completely off-guard and you don’t know what your next move is. This pain has never been more relevant than in today’s pandemic environment. One month, everything is doing fine, and businesses are running as usual. The next month, thousands of businesses are shut down, the workforce has been reduced dramatically, and for those who still have a job, their salary has been cut. When you lose your job unexpectedly, you feel pain in different ways – your pride, your confidence, and your self-image all take a hit. However, the most powerful pain you can feel is the anxiety related to your finances. You used to have a consistent income that you could rely on to pay your bills and buy groceries, and now that income has been taken away. You’re feeling lost, confused, and stressed about the future. Fortunately, even in these uncertain times, there are ways you can manage your money to keep yourself going. We want to share 4 ways to manage money after a job loss.   Apply for Unemployment             Applying for unemployment has been looked at negatively with some people saying they’d never file for unemployment. In your situation, you must change your mindset. Unemployment was created specifically to help people who are not currently working so they can receive some sort of income until they get another job. Apply as soon as you can so you can feel secure that, regardless of how long it takes, you will receive some income in the meantime.   Budget Like Your Life Depends on It           The next step in managing your money is understanding your budget for your essential expenses – anything that will help you survive (food and shelter). You must eliminate any unnecessary spending, and the first step is to start at zero and figure out how much your expenses are for your main bills – rent, bills (electricity, water, etc.), and groceries. “Groceries” here means food to eat – not unessential items like expensive coffee or sweet treats. You don’t know how long you’re going to be unemployed, so you need to make every penny count. This also includes using any savings (”emergency funds”) you have available. Note – there is a difference in savings and a 401k or retirement plan. Using a 401k or Retirement Plan before retirement age (59 ½) means you will pay penalties and therefore not get your full amount (which you earned). Stay away from the temptation to use anything from your 401k/retirement fund unless it is an absolute emergency.   Your Job Now is to Find a New Job           [...]

Finances are one of the most difficult topics to talk about in any situation. Whether it is discussing salaries at work or budgeting at home, discussing money can make for a tense conversation. Unless you work with money professionally (financial analyst, accountant, etc.), money is something we get the concept of, but could have trouble managing it effectively. And that’s when nothing is going wrong. Unfortunately, sometimes life happens and throws us for a loop. No situation creates feelings of stress and anxiety as much as dealing with money problems… Maybe your job was furloughed, or your salary was reduced drastically because of the COVID-19 pandemic Maybe your entire business livelihood was affected by the pandemic (lower sales, closing down your business, etc.) Or maybe you received an unexpected bill for a major expense like a medical issue or house repair Regardless, if you’ve never dealt with a financial setback before, the first time can be nerve-wrecking. It can be easy to feel overwhelmed by the situation. It creates a lot of uncertainty and negative emotions, but those negative feelings don’t have to shape or define you. We want to share some tools you can use to overcome any financial setback.   Think Positively             When you have a financial setback, negativity will start running your thoughts. The only way to overcome the situation is to believe you can overcome the situation. You can choose to sit around and feel sorry for yourself, or you can commit to working towards fixing the situation. You won’t be able to use any of the following tools if you are approaching the situation with a negative/defeated attitude. Believe in your ability to get yourself back on track.   Analyze Your Current Financial Situation             Once you have mentally committed to approaching the situation positively, the next step is to figure out where you are financially. You need to know all the money you currently have, when new money will come in (like your job salary), and any big expenses you originally planned for. Knowing where your money *could* go (bills, travel, etc.) leads you to the next step.   Budget Like a Boss             The CEO of a company may not know where every penny of the company’s money goes, but they will always make sure they are spending that money strategically based on what makes financial sense. You must be the same with your personal finances. In a way, financial setbacks are a blessing because they force you to think about your money differently. When things are “going well”, you may feel it is ok to get an $8 coffee every morning or buy a couple of different streaming services for movies and TV shows. When you have a financial setback, you should be merciless when looking at what expenses to cut. You cannot afford, figuratively and literally, to spend money on [...]

Have you noticed how much stuff you have? When you spend all day in your house, you notice the little things that seemingly weren’t there before – imperfections in the walls, closets packed to the brim, and just so much stuff everywhere. With the pandemic forcing thousands of people to work from home, everyone is starting to wonder where all this stuff came from and how they can get rid of it. You could throw it away and be done with it, by why not try and make some money off your used stuff? You may not want it anymore, but there are tons of people that would want it and would gladly pay for it. Here are 6 apps that are a great way to sell your used stuff.   Facebook Marketplace                 This is one of the more popular options since it is part of an app that over 2 billion people use every day. You can post anything from used DVDs to entire cars. To increase your chance of selling your items, you can join groups in your area that specialize in buying/trading goods. Just set your price, describe your product, post, and wait for offers. Odds are you are using Facebook anyway, so why not make some money and get rid of your stuff at the same time?   Decluttr                 Decluttr specializes in letting you sell used technology like DVDs, games, and CDs. The app is easy to use – once you post your product, you get an instant value for it. If you accept it, Decluttr will send you a free shipping label to put on a box with your items and drop off at the nearest UPS location. Another huge benefit – this app has an “A” rating with the Better Business Bureau, so you know they are safe and trustworthy.   Letgo                 Letgo has gained popularity recently due to its easy navigation. Letgo does a lot of the work for you so you can focus on getting rid of your stuff. Just post a picture of your item and Letgo will automatically sort it into the proper category for you. There’s also an option to automate certain messages, so you can spend less time typing and more time selling.   thredUP                 Let’s face it – the first items that will usually go when decluttering are your clothes. A great way to simplify your life is by getting rid of any clothes that either don’t fit, you don’t like, or you never wore in the first place. thredUP’s specialty is selling used clothing, and they’ve gotten good at it. Once you sign up for an account, thredUP will ship you a bag to put all your clothes in, and you’ll get paid once your order is processed. If [...]

Without even realizing it, most people are familiar with protection-first thinking. If you remember travelling on an airplane in a not too distant past, you would recall this important point in the safety demonstrations “In the event of sudden decompression, secure your own oxygen mask before helping others.”   EMERGENCIES ARE SUDDEN For money emergencies, developing a protection-first plan with a financial professional can help secure your own financial safety before other priorities. In life and in finances, emergencies are sudden. Everyone thinks, “It won’t happen to me.”   EMERGENCIES HAPPEN But consider this short list of potential emergencies: job loss, accidents, long-term illness leading to loss of income, home or car damage or natural disaster. It doesn’t take long to think of someone in our circle of family or friends who has faced one of these crises in the last year. An emergency can happen to anyone.   THE MAJORITY OF AMERICANS ARE NOT PROTECTED 41% Americans have savings of $1,000 for an emergency. 37% say they would have to turn to credit cards, friends or family, or personal loans to pay for it, putting them in the black hole of debt.1   MEDICAL DEDUCTIBLES ARE ON THE RISE In the United States, the number one cause of personal bankruptcy is medical costs.2 Furthermore, before the final straw of bankruptcy, many more people struggle to keep up with their medical bills. This is true whether or not a patient has an employer-sponsored healthcare plan.   HEATH SAVINGS ACCOUNTS CAN HELP In fact, from 2005-2015, the amount employees paid towards their deductibles increased by 229 percent – vastly exceeding wage growth.3 More people could safeguard themselves against high medical costs through a health savings account (HSA), but too few people understand the benefits of these accounts even if it is available to them.4   A BETTER PLAN By putting your own financial protection first, you create a plan to cover unplanned life events. This can include putting layers of protection in place, life insurance, disability insurance and emergency savings, even before paying down debt.   WHY PROTECTION FIRST? Even though it’s common to think that your most urgent need is to pay off debt, what happens if you’re paying off debt, but not generating any emergency savings? If you lose your job or are unable to work, you may have to take on new debt to keep paying even just your basic expenses. Then you’re back to square one. A better plan is to help protect yourself from sudden changes through protection layers, including emergency and long-term savings. -- About the Author Jerry specializes in retirement, insurance and tax off-set strategies for professionals and small business owners. His focus is to help clients identify their definitions of legacy and financial security while simultaneously implementing innovative strategies to help make those financial goals a reality. For more information on his services, he can be reached at:   JGM Consulting LLC  [email protected] (714)644-9066 Lic#0H33733 www.jgmconsultingllc.com   Brought to you by The Guardian Network © [...]

Every  new year brings promise, but sometimes this annual ritual can feel more like Groundhog Day. You start the year determined to keep your resolutions, but before too long, you default back to bad habits. For many people, this is especially true regarding old behavior patterns with money. People develop their relationship to money from a young age, and it’s reinforced by family dynamics. By the time they become adults, it can feel permanent. Yet, it is anything but. Increasingly, psychologists are looking to the brain’s neuroplasticity as the pathway to change patterned behavior.1 Neuroplasticity is “the ability of the brain to modify its connections or rewire itself.”2 In other words, anyone can reshape mental (and physical) habits towards money.   IDENTIFY YOUR TRIGGERS Let’s say you’ve developed a shopping vice. You’re spending too much money on things that you don’t need. One approach to curb this is to examine the triggers that lead to a shopping binge. Do you shop before a big date or a job interview to calm your nerves? Is there a favorite store on the way to work?   STOP THE PHYSICAL REPETITION Habits are reinforced by repetition. To break a habit, you have to stop doing it over and over. When you feel prompted to shop by a familiar trigger, it’s time to change your next action in the chain of events. If the store on the way to work pulls like a magnet, find a new route. If the problem is compulsive online shopping, add website blockers to your browser to bar the sites that eat up time and money.   CONSIDER A SPENDING FAST Another way to stop bad financial habits is to go cold turkey with a spending fast. For instance, perhaps you always treat your friends to dinner, whether you can afford it or not. For a set period of time, resist the temptation to grab the check when it lands on the table (especially if it’s going on a credit card). Bear in mind that studies show it takes at least sixty-six days for a new habit to become automatic.3 So if you fall off that horse, keep getting back on it!   PRACTICE MINDFULNESS Acting on old behavior is usually preceded by old, negative thinking. Often people are hardly conscious of negative thoughts; they simply act on them without examination. By practicing mindfulness, however, we can avoid the effect of mental autopilot. Mindfulness involves bringing your attention to your immediate experiences and helps us examine anxious thoughts more rationally.4 If you’re feeling anxious about an upcoming date, for example, perhaps you’re at risk of splurging on new clothes. But if you look at this thought mindfully, perhaps you’ll see you have plenty to wear already. Or better yet, you may imagine yourself enjoying the date, regardless of what you’re wearing.   ENVISION THE BIGGER GOAL Lastly, take the time to write out what you want. Make a plan and add in the financial numbers that will make [...]