In finance, ensuring the protection and growth of your wealth is paramount. However, steering this complex terrain can be daunting, especially without the proper guidance. This is where a Fiduciary Financial Advisor steps in, serving as a trusted ally dedicated to safeguarding your financial well-being.

This article discusses the crucial role of fiduciary advisors and how they prioritize your best interests every step of the way.

Understanding the Role of a Fiduciary Advisor

A fiduciary advisor is always legally and ethically bound to protect your best interests. Unlike advisors held to a lower standard, fiduciaries are obligated to provide advice that serves your monetary needs above all else.

Putting Your Interests First: The Fiduciary Duty Explained

Central to the fiduciary relationship is the duty of loyalty and care. Fiduciary advisors are required to put your interests ahead of their own or their firm’s. This means recommending strategies and investments solely based on what benefits you the most, without any conflicts of interest clouding their judgment.

Transparent Fee Structures: Aligning Incentives with Your Goals

One key advantage of working with a fiduciary advisor is the transparency in fee structures. Fiduciaries typically operate on a fee-only basis, meaning they are compensated solely by the fees their clients pay. This removes the potential for commissions or incentives to promote certain products or services that may not be in your best interest.

Tailored Financial Planning: Personalized Strategies for Your Unique Situation

Every person’s financial situation is different. That’s why it’s so important to have a plan that’s made just for you. Fiduciary advisors spend time getting to know what you want to achieve with your money, how much risk you’re comfortable with, and what your overall economic situation is like. Then, they create a plan that fits your needs perfectly. Whether saving for when you stop working, putting money away for your kid’s schooling, or going through a big life change, a fiduciary advisor can ensure you’re in the right direction.

Diligent Investment Management: Decreasing Risks and Maximizing Returns

Investing wisely is essential for long-term wealth preservation and growth. Fiduciary advisors conduct thorough due diligence to select investments that match your objectives and risk profile. By diversifying your portfolio and actively monitoring market trends, they aim to decrease risks while seeking opportunities to maximize returns over time.

Ongoing Monitoring and Adjustments: Adapting to Life Changes and Market Shifts

Planning your finances isn’t something you do once and forget about. It’s more like a journey that needs constant attention. Fiduciary advisors regularly monitor your financial plan and investments and are ready to make changes whenever needed. This could be because something changes in your life, like getting a new job or having a baby. Or it could be because the economy or laws change. Therefore, fiduciary advisors ensure your plan stays on course to reach your goals.

Legal and Ethical Standards: Upholding Integrity in Financial Advisory Services

In addition to their fiduciary duty, fiduciary advisors adhere to strict legal and ethical standards set forth by regulatory bodies. They operate with integrity, transparency, and professionalism, upholding the highest standards of conduct in their interactions with clients and within the financial industry.

Conclusion 

In a financial world rife with complexities and potential conflicts of interest, entrusting your wealth to a Fiduciary Financial Advisor offers peace of mind and confidence in your economic future. By prioritizing your best interests, providing transparent and personalized guidance, and upholding rigorous legal and ethical standards, fiduciaries empower you to steer the intricacies of finance with clarity and purpose.  

Savings accounts stand out among all financial products and services as essential pillars for personal finance. For instance, Canadian households across all income quintiles maintain an average savings account balance of $1,964.

No matter if it’s for emergencies, vacation expenses, or down payments on homes – your choice of savings account can have an immense impact on your financial journey. With various options offering competitive interest rates and attractive features vying for consideration – finding an appropriate savings account can be both daunting and crucial.

This article seeks to offer an in-depth guide on evaluating savings account rates effectively, giving you all of the tools to make well-informed decisions and boost your savings strategies.

Interest Rate Variability

One of the primary factors when it comes to assessing savings account rates is interest rate variation. 

So what is considered a good interest rate for savings account holders? To get the right answer, it’s necessary to first comprehend all available rate options on savings accounts; these range from accounts with fixed rates that offer stability but may lose out during periods of higher rates to accounts offering variable interest rates, giving you less certainty but more adaptability.

It’s essential to compare rates across different financial institutions and consider factors such as fees, minimum balance requirements, and account features to determine the best fit for your savings goals.

Compounding Frequency

The frequency with which a savings account compounds interest plays a pivotal role in shaping the trajectory of one’s wealth over the long run. Accounts that recalculate interest on a daily or monthly basis have significantly larger growth potential than those that only compound annually.

This divergence stems from the power of compound interest, where earned interest is continually added back to the principal sum, accelerating returns at an exponential rate over time. Higher frequency compounding amplifies this effect, generating noticeably larger balances than less regular compounding over identical periods.

Gauging an account’s compounding schedule is therefore crucial for accurately forecasting returns. Factoring this detail into savings decisions facilitates aligning accounts with personal monetary objectives and maximizing the growth each dollar achieves. Careful consideration of compounding frequency allows strategic selection of accounts optimized for goals and productivity.

Source: Unsplash

Fees and Charges

When contemplating deposit rates, necessarily consider any extra costs and charges, as they play a pivotal role in determining the actual worth of the account. Some accounts enforce monthly maintenance fees, transaction penalties, or consequences for dipping below a minimum equilibrium threshold. If these fees are not carefully accounted for, they can substantially diminish your overall returns from the account. Therefore, it is imperative to incorporate these fees when conducting your assessment.

To optimize your savings strategy, seek out accounts that enforce minimal fees or provide opportunities to waive fees through specific actions, like maintaining a minimum equilibrium or establishing direct payments. By proactively managing and mitigating potential fees, you can preserve more of your returns and maximize the advantages derived from your savings account.

Introductory and Promotional Rates

While the introductory rates offered by many savings accounts seem appealing, it is crucial to consider more than just their tempting numbers. Look closely at the duration of the discounted interest as well as the standard rate it reverts to afterward. Some accounts boast benefits that endure longer than their promotions.

Thoroughly assessing an account’s long-term merits alongside fees and traits ensures your selection aligns with your savings objectives. Both short-term allure and far-reaching worth matter; investigate ongoing percentages alongside charges and properties to make an informed choice. No matter how enticing an offer may initially seem, focus on what fits beyond flash to find one built for lasting value.

Account Accessibility and Features

Accounts with robust digital capabilities and convenient access options can enhance the banking experience immensely, making savings management remarkably efficient. Consider savings accounts providing expansive online and mobile functionality, extensive ATM networks, and exemplary customer care.

Additionally, carefully scrutinize features like overdraft safeguards, self-directed transfers, and customized goal-tracking synchronized with your distinct budgets and priorities. Accessibility and functionality fundamentally affect an account’s overall utility. 

Bottom Line

Evaluating savings account rates effectively requires a comprehensive analysis of various factors, including interest rate variability, compounding frequency, fees and charges, introductory rates, and account features. By considering these key elements and aligning them with your financial goals and preferences, you can make informed decisions when choosing a savings account that maximizes your earnings and supports your long-term financial success. Stay informed, compare options, and regularly review your savings strategy to ensure you’re making the most of your savings potential.

Car accidents are not only physically and emotionally distressing but can also wreak havoc on your personal finances. The financial aftermath of a car accident can be overwhelming from medical bills to vehicle repairs and potential legal fees. In this article, we’ll delve into the importance of budgeting for a car accident and explore strategies to mitigate its impact on your personal finances.

Understanding the Financial Impact

The immediate financial impact of a car accident can be substantial. Medical expenses, including ambulance fees, emergency room visits, diagnostic tests, and treatments, can quickly add up, especially if the injuries are severe. Even with health insurance, copays, deductibles, and out-of-pocket expenses can strain your budget.

Then, there are the costs associated with repairing or replacing your vehicle. Whether it’s minor damage or a total loss, repairs can be expensive, particularly if you don’t have comprehensive insurance coverage. Rental car fees while your vehicle is in the shop can further strain your finances.

If the accident results in a lawsuit or legal proceedings, you may find yourself facing hefty legal fees, especially if you need to hire an attorney to represent you. Court costs, expert witness fees, and other legal expenses can escalate quickly, adding to your financial burden.

Budgeting for a Car Accident: Tips and Strategies

Given the potential financial ramifications of a car accident, it’s essential to budget and plan to protect your finances. Here are some tips and strategies to consider:

• Emergency Fund: One of the most effective ways to prepare for unexpected expenses, including those arising from a car accident, is to build an emergency fund. Aim to save three to six months’ worth of living expenses in a separate account that you can access easily in case of emergencies.

• Review Your Insurance Coverage: Make sure you have adequate auto insurance coverage, including liability, collision, and comprehensive coverage. Consider increasing your coverage limits and adding optional coverages like medical payments coverage and uninsured/underinsured motorist coverage for added protection.

• Set Aside Funds for Deductibles: If you have high deductibles on your insurance policies, such as health insurance and auto insurance, set aside funds specifically earmarked to cover these deductibles in case of an accident.

• Create a Post-Accident Budget: In the event of a car accident, create a post-accident budget to track expenses related to medical treatment, vehicle repairs, rental car fees, and legal fees. This will help you prioritize expenses and identify areas where you may need to cut back temporarily to cover unexpected costs.

• Negotiate with Healthcare Providers: If you receive medical bills after a car accident, don’t hesitate to negotiate with healthcare providers to lower the costs or set up a payment plan that fits your budget. Many providers are willing to work with patients to find mutually acceptable solutions.
• Explore Alternative Transportation Options: While your vehicle is being repaired or replaced, explore alternative transportation options such as public transit, carpooling, or ridesharing to reduce costs. If you have rental car coverage through your insurance policy, be mindful of the rental car’s daily rate and opt for a more affordable option if possible.

If you’re struggling to cover expenses after a car accident, don’t hesitate to seek financial assistance from community resources, government programs, or charitable organizations. Many organizations offer assistance programs specifically designed to help individuals facing financial hardship due to unforeseen circumstances like a car accident.

Seeking Legal Representation

In addition to budgeting for immediate expenses such as medical bills and vehicle repairs, it’s essential to allocate funds for car accident representation if you find yourself involved in a liability suit following a car accident. While it may be tempting to forego hiring a lawyer to save money, having legal representation can be crucial in protecting your rights and ensuring a fair outcome in legal proceedings.

When budgeting for legal fees, consider the following factors:

• Initial Consultation: Many personal injury attorneys, such as these lawyers specializing in personal injury cases in Long Island, offer free initial consultations to assess your case and determine if you have grounds for a lawsuit. However, if you decide to hire an attorney, be prepared to budget for any fees associated with the consultation.

• Contingency Fees vs. Hourly Rates: Personal injury attorneys typically work on a contingency fee basis, meaning they only get paid if you win your case. Their fee is typically a percentage of the settlement or court award, making this arrangement a practical option for many clients. Choosing a contingency fee structure, such as the one provided by Braker White Injury Lawyers, can alleviate the financial burden of upfront legal fees and ensure that your attorney is fully invested in achieving a successful outcome for your case. This approach stands in contrast to hourly rates, which require payment regardless of the case’s outcome and may not be as accessible for individuals facing unexpected financial challenges after an injury. Clarify the fee structure with your attorney upfront to budget accordingly. 

• Court Costs and Expenses: In addition to attorney fees, you may be responsible for covering court costs, filing fees, expert witness fees, and other expenses associated with your case. Make sure to discuss these potential costs with your attorney and budget accordingly.
• Negotiation and Settlement: Your attorney will work on your behalf to negotiate a fair settlement with the opposing party or their insurance company. Be prepared to budget for potential settlement negotiations and consider the possibility of alternative dispute resolution methods such as mediation or arbitration, which may incur additional costs.

Conclusion

In conclusion, budgeting for a car accident is essential for safeguarding your personal finances against unexpected expenses. By building an emergency fund, reviewing your insurance coverage, and creating a post-accident budget, you can better prepare yourself to handle the financial fallout of a car accident. Remember to explore alternative transportation options, negotiate with healthcare providers, and seek financial assistance if needed to alleviate the financial burden. With careful planning and proactive budgeting, you can navigate the challenges of a car accident without derailing your financial goals.

Expanding your business is a straightforward goal. It makes sense that as you find success, you want to take yourself to further heights, and you’re not going to be able to do this without increasing your means.

The idea of expansion can be uncomfortable for some businesses because of the costs that come with it. This is a natural uncertainty, and it’s part of the reason why some businesses hold off. However, there are more pitfalls than this to be aware of. Learning about these shouldn’t discourage you, just make you more aware of how you can handle your growth in a way that’s beneficial to your success.

Are You Ready?

The first hurdle is still an important one to consider, however. While some businesses might do their best to put off their business expansion for as long as possible in order to hold onto the success that they’re currently experiencing, others might be a little too keen to jump into it.

In the case of the former, it could risk putting you in a situation where, if your current success dips, you’ll find yourself struggling once again. A potential expansion or growth could give you more of a safety net in this regard, distributing your success and making you less dependent on one area of survival. 

On the other hand, if you’re too keen to jump into it, you could risk bankrupting yourself just by making the expansion in the first place. It’s a move that can be costly, and if you try too hard to force yourself into it, you might find that you’re unable to sustain yourself as a result, for reasons such as you’re having to cover the costs of two sites instead of one.

It’s a big process. One that you likely won’t be thinking about too lightly, and conducting the proper research also means having a thorough understanding of where your business is, and what it means for the road ahead.

New Standards

Another element to think about is how the expansion is going to affect what you know about your business. At the moment, you might be operating within a certain comfortable zone, meeting all the standards that you know you have to meet and being knowledgeable about the market as a whole.

Once you expand, all this could change. Not only would you then have to comply with what you’re already used to, but there could be new legal standards that now apply to you as well. As your business expands, it’s natural that there’s going to be more for you to think about, and simply more of your business to oversee. This is daunting, but it’s also why people end up hiring more and more staff as their business grows, especially people they can delegate to.

However, it also helps to have third-party professionals on hand who can guide you through some of the more uncertain areas. Enlisting help from experts in Compliance and Risk Management, for example, can help you to consistently meet these legal standards and keep your business on track throughout your expansion, which can be comforting when you’re specifically trying to avoid the problems that can come with it.

A Different Market

If your business expansion comes in the form of opening up a new branch in a new location, the theory might be different from the practical reality.

In theory, it might just feel like you’re going to double what you already have, seeing the exact same level of success that you’ve found at your existing branch. However, the market in this new area is undoubtedly going to vary in one way or another, meaning that things will unlikely be the same. You might not get the same number of customers, you might need to appeal to a different audience, or you might just be too close to your competitors to seem like a viable option.

Of course, this is all stuff that you’re going to come across in your market research. In fact, a lot of these questions will be answered during that time and will help you to decide where you’re going to go instead. Even when you do find an ideal location, though, expecting differences and potential difficulties can prevent you from creating a forecast that’s too optimistic in the first place. After all, while the term ‘expansion’ might imply just straightforward growth, it might be better to think about it as a change. While your customers might see it as the former, it will be different for those behind the scenes.

The foreign exchange market, known as forex, opens up countless opportunities for private traders to diversify their portfolio and profit from currency fluctuations. The key to success is choosing the right currency pairs and understanding market movements.

Golden opportunities with “XAUUSD”

The trading pair XAUUSD, which represents gold in relation to the US dollar, offers interesting opportunities for market players. A typical inverse relationship characterizes the interaction between the precious metal and the currency.

For example, a fall in the dollar index, which measures the strength of the US dollar against a basket of other currencies, could often lead to a rise in the price of gold. 

Technical chart formations such as a falling trend line in the dollar index could serve as an indication to traders that a favorable time to buy gold is approaching. Experience and knowledge of technical analysis play a crucial role in recognizing such patterns and acting accordingly. Monitoring key levels and using indicators such as the RSI (Relative Strength Index) can provide additional insight into when the market may be ready for an entry.

Majors versus exotics

The world of forex trading divides currency pairs into two main categories: Majors and Exotics. Majors, including popular pairs such as EURUSD or USDJPY, are characterized by their high liquidity and low spreads. This makes them particularly attractive for traders who value fast and cost-effective transactions.

One example of this is the EURUSD pair, which is particularly popular due to the strong economies of both regions and the associated high trading volumes.

This contrasts with exotic pairs such as USDZAR (US dollar against South African rand), which promise potentially higher profits but are also associated with increased risk. The lower liquidity of exotic markets can lead to greater price movements, which harbors both opportunities and risks.

Exotic pairs are often more sensitive to political and economic events in the respective countries, making them an interesting choice for experienced traders who are willing to use this volatility to their advantage.

Technical analysis is key

Recognizing chart patterns is at the heart of technical analysis and is an indispensable tool for traders. For example, the “head and shoulders” pattern indicates an impending trend reversal when it appears after a prolonged uptrend. This pattern, consisting of three peaks with the middle one (the head) being higher than the others (the shoulders), signals that the uptrend is losing strength. Another important pattern, the “double bottom”, occurs when the price hits a low twice and shows a recovery in between. This can be a strong sign that the market is recovering from a downtrend.

Technical indicators such as moving averages provide additional insight into market momentum. For example, a 50-day moving average can be used to determine the medium-term trend, while a 200-day moving average can indicate a long-term trend. A crossover of these averages can be interpreted as a buy or sell signal, depending on the direction of the intersection.

Exploiting market volatility

Market fluctuations open doors for profitable transactions, but they also harbor pitfalls. Successful traders have developed a good instinct for recognizing when restraint is called for. For example, during political uncertainty or economic announcements, volatility may spike, which can mean both quick profits and losses.

During such periods, it may be wise to reduce positions or wait for clear signals before initiating new trades. Analyzing historical volatility patterns helps to better assess future risks and decide whether an intervention or a pause is the better strategy. For example, important interest rate decisions are often preceded by increased volatility, which presents both opportunities and challenges.

In the palm of your hand lies a device of immense potential, often underutilized in enhancing our financial well being. The smartphone is a catalyst for change, offering accessible applications that can revolutionize our approach to personal finance. Why not leverage this technology to improve the finances of the future? Here are 5 ways your smartphone can transform your financial life.

How Smartphones Can Improve Your Finances?

1. Shopping

Mobile shopping has been refined to ensure its convenience arguably surpasses that of traditional shopping. Whether securing a reservation at your favorite restaurant or ordering gourmet meals directly to your doorstep, the benefits extend well beyond the time saved bypassing the commute. Leveraging the exclusive promotions accessible to app users can lead to significant savings, especially when purchasing groceries and household essentials. For the ultimate bargain, combine the use of cashback apps with promotional codes, and watch the final tally on your spending drop to pleasantly unexpected levels.

2. Budgeting Apps

Keeping a close eye on your spending can feel like a chore, yet it’s vital for adhering to your financial plan and preventing fiscal overreach. It’s easy to lose track of incremental outlays that accumulate over the month, silently eating away at your budget. Budgeting apps are here to rescue you from this pitfall. The market offers a plethora of these apps, equipped with various features designed to assist in financial management. Not only can they monitor expenditures and establish financial boundaries, but they’ll also notify you as you approach your budget’s cap. By integrating such tools into your daily routine, you’ll gain a clear perspective on your financial habits and identify opportunities to optimize your spending behavior.

The only caveat with apps is that they take up space and use smartphone resources. At a certain point, this can become a problem when the smartphone starts to slow down or even lag. There is also a solution and it is quite simple – Cleanup App – Phone Cleaner with a smart search for unnecessary files. The phone cleaner app can find duplicates, temporary files, various caches, etc. Then it generates a list of them and offers to clean them with one click of a button.

3. Price Comparison

Explore seamless shopping with comparison platforms like Junglee and Smartprix. They simplify your experience by aggregating prices and specifications from various retailers – no need to visit each site separately. In the season of lively deals, these handy tools guide you to the most economical finds for your desired purchases. And for an added bonus, certain apps gather coupons and special offers, alerting you according to your set preferences. Ensure you launch your go-to price comparison app and secure the finest deal before finalizing your festive buys.

4. Savings

Are you aiming to tuck away 20% of your earnings each month? It’s a challenging goal if you wait until the end of the month to transfer funds to your savings. Here’s a smart strategy: It’s hard to overspend when money is out of reach. The key is to allocate your savings immediately upon receiving your paycheck. And how do you streamline this process and reduce the urge to splurge? Leverage the power of technology—your smartphone. Utilizing mobile banking apps, you can automate your savings transfer. Simply choose an amount and set a date for the transfer to repeat monthly. With these settings in place, your digital ally will diligently shift funds to savings at the start of the month. Think of it as your electronic piggy bank that secures your savings without a second thought.

5. Alerts and spending limits

Are you unwittingly overspending on your gourmet coffee habits? Perhaps incessant takeout orders are steadily depleting your pay? By evaluating your expenditures and crafting a fiscal plan, you can adeptly oversee your finances. Envision setting weekly budget caps — wouldn’t it be nifty if your smartphone could notify you upon nearing your spending ceiling? Better yet, imagine your bank account automatically preventing further outlays once you’ve hit your budgetary boundary. True, these thresholds can always be adjusted, but their initial establishment fosters a more meticulous and deliberate approach to financial stewardship right from the start.

Conclusion

Your pocket holds more than just a device for snapping selfies or scrolling through social media — it’s a potent computing tool! Discover the financial benefits that your smartphone can unlock and watch your perspective on this handy gadget transform. If your phone has already become an ally in your money-saving endeavors, we’d love to hear your strategies and stories in the comments below. Share your insights and join the conversation!

From cash to checks to direct bank deposits, salary disbursal methods have come a long way as businesses continue to utilize powerful payroll solutions in the UAE and beyond and adopt more efficient ways to pay their employees. 

The latest on the scene is the payroll card, a new payment system that’s winning the favor of business owners and their workforce for its cost-effectiveness, convenience and security. 

What Are Payroll Cards? 

Payroll cards are reloadable debit or prepaid cards that employers issue to their staff. Typically, these cards are tied to the company’s payroll account with a financial institution (e.g., banks or exchange houses) where each employee’s salary is deposited upon every pay cycle.  

What Are the Types of Payroll Cards? 

In the UAE, as an employer, you can choose between two types of payroll cards for your workers: 

• Open Loop Cards

  • These cards can be used at any outlet’s POS system, online store or ATM locally and globally. They usually bear the logo of international payment networks like Visa or Mastercard. In banks, these cards also show the name of the sponsoring financial institution.
  • Nowadays, prominent exchange houses in the UAE offer co-branded, open-loop cards as part of their payroll services in partnership with specific banks.

• Closed Loop Cards

  • Closed-loop payroll cards, on the other hand, are limited to specific salary withdrawal points — usually those of the issuing institution whose logo appears on the card. They also cannot be used for everyday purchases, online or otherwise. 
  • For their WPS (Wage Protection System) corporate clients, certain financial institutions in the UAE also issue these cards to enable their employees to withdraw their salaries exclusively from the issuer’s network of branches and ATMs. 

What Are the Advantages of Payroll Cards? 

If you’re a business owner in the UAE, you stand to gain the following from switching to payroll cards as your go-to salary payment method: 

1. Streamlined Payroll Management

The old means of salary disbursement often involved resource-, labor- and time-intensive tasks that together could be a drain on a company’s assets. These include printing and distributing checks, managing physical cash, or transaction fees for every direct deposit. Using payroll cards can help you sidestep all these hassles and their associated costs. 

2. Better Record-Keeping 

In this digital format, you can effortlessly keep tabs on who is paid, how much and when. In case of any discrepancies or queries from employees, you can quickly refer to your payroll card records (either by accessing them from your wage management solution or by contacting the issuing financial institution) instead of rifling through a mountain of paper receipts. 

From a compliance standpoint, electronic records of salary payments should also go a long way in maintaining a clear audit trail and ensuring you abide by local labor laws. 

3. Easy Employee Access

Paying your employees their wages correctly and on time is a guaranteed morale boost. Add instant access through payroll cards and top it off with an open loop option, and you’ll have yourself a happier, more productive workforce, especially those who might be unbanked (can’t open a bank account) or underbanked (have limited access to banking services). 

4. Increased Security

Where once you had to worry about cash getting lost in transit or checks being stolen, now you don’t have to. Your employees, too, will feel safer for not carrying around their entire month’s earnings on them while commuting home. 

In the unlikely event of a lost or stolen card, enhanced security features like PINs, chip technology, and OTPs (one-time passwords) will ensure the employee’s money remains safe. The cards can also be blocked or temporarily frozen by you or your worker in case of suspicious activity. 

Start Leveraging Payroll Cards 

Digital, cashless payments are the way of the future, and payroll cards can be the beginning of this journey for your business. However, as with any financial solution, be it corporate remittance, foreign exchange or payroll, it’s crucial that you do your due diligence and choose a reputable, experienced partner to make the transition as smooth and straightforward as possible.

When researching to start trading, the majority of people just check some of the basic guides. This is completely understandable; after all, you start from the basics, and the majority of people just read the instructions to see how to turn something on.

After a while, however, you might decide to dig a bit deeper and start covering topics that previous guides have just glossed over. With that in mind, here are some of the investment tips that really need to get more spotlight (even in beginner guides).

1. Investing in S&P 500 companies is your best bet

If you’re already very affluent, chances are that you’re keeping the majority of your investment money in these companies. The problem is that people who are new to this field usually see low returns and determine that it’s just not worth it.

You see, it’s not that it’s not worth it; it’s just that these people invest in order to earn money, not just as a store of value. Now, since they’re not investing a huge amount proportionally, this income will be quite moderate (even small). 

The thing is, however, that this is the safest thing you can do with your money. Sure, these companies can fail and fall, but when this happens, the whole economy goes down, and no stocks are safe to begin with. 

The process of investing in S&P 500 companies is very simple, and in a guide by Techopedia, Rob Griffin says that investors have benefited from exposure to the S&P 500 as the index has returned 18.86% over the past year, according to S&P data to the end of January 2024. 

One of the biggest benefits of investing in S&P 500 companies is the fact that its index covers approximately 80% of the available market capitalization in the US. In other words, you’re spreading the risk over the biggest, most reliable companies in the biggest economy in the world. As we’ve already said, if all of these companies fail, you have more than just your investments to worry about.

Many companies in the S&P 500 also pay dividends, which means that you have a simple way to create a reliable passive income. Just keep in mind that this is always proportional to the amount of money that you can afford to invest.

2. Consider factor instead of asset class diversification

In theory, diversification just means putting your money in different assets. In a way, just buying two different stocks would already be a diversification, but the majority of guides (and people’s understanding of it) don’t end here. 

When they say diversification, what the majority of people think is keeping a bit of money in stocks, a bit of money in commodities, and keeping some money in alternative funds (potentially even crypto). 

Still, is this different enough?

Some people don’t believe so, which is why they prefer to pick assets according to their factors and not just their class. This minimizes the correlation between the assets that you’ve spread your money across, increasing the overall safety of your portfolio. In other words, you’re improving your level of risk management and making your risk exposure more systematic. 

The transparency of these investments is higher by default. Why? Well, because the value is not tied to a particular brand but actual quantifiable characteristics.

So, what are some of these factors that you can invest based on:

• Value factor: This is a scenario where you choose where to invest based on the price-to-earnings or price-to-book.
• Momentum factor: Here, you’re investing in securities that have performed well in the past, hoping that they’ll carry on with the trend.
• Low volatility factor: This way, you’re investing in assets that have proven to have lower volatility.

There are many other factors worth considering, like size, quality, etc. 

3. Gold and silver are not the only precious metals worth buying

The majority of guides on diversification will talk about how you need to keep 10-15% of all your investment money in commodities and precious metals. After all, they’re quite stable; they have a weak (even opposite) correlation with the majority of other asset classes, and, in a moment of crisis, you can just stuff gold coins in your backpack (or pockets) and leave. This last part is (sadly) sometimes relevant, even in 2024. 

When talking about buying precious metals, everyone has their eyes set on silver and gold. They start by googling the price of gold, places where they can buy gold locally, or even trivia like how much one ton of gold is worth in 2024. 

This is only natural, seeing as how these are the two biggest assets in the game. Not only that, but they’re the most recognizable and have intrinsic value. They’re used as either a currency, an asset, or a store of value for the entire history of humanity

However, gold (or even silver, for that matter) is far from being the only precious metal worth considering. What about platinum and palladium?

These two have a high (and increasing) industrial demand. Moreover, since one of the fastest-growing industries is green technologies, it’s important to mention that platinum and palladium are used in things like catalytic converters and hydrogen fuel cells. 

Keep in mind we’re by no means suggesting that investing in gold or silver is a bad idea. It’s just that other options exist, as well (and a lot of guides pretend like they don’t). 

4. Alternative investments are not as good as you think

Whenever there’s a guide on investing, the majority of it comes down to stocks, real estate, cryptocurrencies, and precious metals. There’s a method to this madness. Namely, these four asset classes are the best-known, and they’re useful to the majority of the population

You see, alternative investments are an amazing idea, but there’s a reason why they’re not as popular. 

For instance, one such asset is designer bags. While these bags are a great store of value, since there’s a limited number of bags in most series, their market value is, more or less, capped. However, a lot of people cannot afford to buy a designer bag as their first investment, while almost anyone can buy a small number of stocks, a fraction of BTC, or a few gold coins. 

Then, there’s the issue of collections and art pieces. Both of these can be unique and incredibly profitable, but the truth is that they require so much knowledge (far more specific and in-depth knowledge) than investing in stocks or crypto. You need to actually be an expert in the field or have someone like that on your retainer. 

Ultimately, there’s one massive problem that all of these alternative investments share – lack of liquidity. Namely, while, technically, you can sell them at any point, this is far harder than just converting crypto or selling a stock via an app. You need to find an actual buyer and, despite professional evaluation, still negotiate the price. 

In order to efficiently invest, you need to go a bit deeper

As we’ve already mentioned, there’s a reason why the majority of guides merely scratch the surface – it’s all you need to get started. Still, if you’re really serious about investing and diversifying your resources, you need to learn more than that. With these four tips, you’ll already be slightly better off.

Money makes the world go around, but sometimes, it feels more like it’s dragging you down. Getting a grip on your finances doesn’t have to be brain surgery. There are simple, proven ways to take charge and make your money work for you. Budgeting might not sound thrilling, but it’s your ticket to less stress, fewer “How will I pay for this?” moments, and more of the things that matter.

The Zero-Based Budget: Every Dollar Has a Job

Think of your income like a big bag of marbles. Every dollar—every marble—needs a specific purpose. That purpose could be groceries, bills, a weekend getaway, or even something as basic as dumping it into your savings. This budgeting method takes upfront effort, but the payoff is huge.

Here’s how it works:

• List Your Income: Every penny, even those from side gigs or the occasional freelance project.
• List Your Expenses: Everything from rent to your morning coffee and those sneaky subscription services you barely use. Be thorough!
• The Math: Income minus expenses MUST equal zero. If there’s money left over, give it a job — even if that job is “extra savings.”

Pay Yourself First: Your Future Self Will Thank You

Too many of us see savings as what’s left over at the end of the month. The problem is, there’s often nothing left over! The “pay yourself first” method flips that around. Imagine your savings as another essential bill the moment your paycheck hits.

Benefits?

• Less Guilt: You’re not “depriving” your present self – you’ve already factored in fun stuff.
• Automation Is Your Friend: Set up auto-transfers from checking to savings so it happens without you thinking.
• Momentum: Seeing that nest egg grow is addictive (in the best way)! It motivates you to save even more.

The Envelope System: Cash is King

If spreadsheets make your head spin, the envelope method might be your jam. It’s especially great for those prone to impulse spending. Why does it work? There’s something very real about seeing a dwindling stack of cash compared to swiping a card. Plus, when the envelope is empty, it forces a spending pause.

How to do it:

• Categorize: Decide your spending buckets (groceries, gas, dining out, etc.)
• Label Envelopes: One for each category.
• Fill ‘Em Up: Put your budgeted amount in cash into each envelope.
• When It’s Gone, It’s Gone: No dipping into other envelopes! If you find yourself short in one area, analyze where your money’s going and make adjustments for next month.

The 50/30/20 Rule: A Classic for a Reason

This is a good starting point for those new to budgeting, according to Sen. Elizabeth Warren. It provides enough structure to reel in spending, with the flexibility to make it your own. It’s not super strict, which helps it stick.

Here’s the breakdown:

• 50% Needs: Housing, basic food, utilities, transportation, minimum debt payments.
• 30% Wants: Dining out, hobbies, subscriptions (think streaming services or gym membership).
• 20% Savings & Debt: Emergency fund, extra payments on loans (including bad credit secured loans). This 20% is your path to serious financial progress!

The ‘No Budget’ Budget: Only If You’re Disciplined

This is more of a mindset than a strict system. Think of it as the training wheels off approach. The key is intense scrutiny of your spending habits.

How to make it work:

• App Power: Use budgeting apps to track money in and money out as it happens.
• Check-in Often: Don’t just wait for the monthly statement. Weekly or even daily check-ins are better.
• Automate What You Can: Fixed bills are less likely to derail you, setting you up for success.

The Sinking Funds Method: Plan for Those Big Splashes

Sometimes, life throws you expenses you can’t squeeze into a regular monthly budget – a new car, an unexpected medical bill, or even that dream vacation. That’s where sinking funds come in. Think of these as mini-savings accounts, each with a specific goal.

How it works:

• Identify Your Goals: What big expenses do you anticipate, even those down the road a few years?
• Do the Math: Divide that goal amount by the number of months you want to save for. That’s your monthly sinking fund contribution.
• Get Separate: Small savings accounts (or even labeled envelopes, cash-style) keep sinking fund money organized.

Example: You want $5000 for a trip in 12 months. You’ll put roughly $415 into your “Epic Trip” fund each month.

Conclusion

Budgeting isn’t about restriction; it’s about freedom. Freedom from money worries, freedom to splurge guiltlessly (within your plan), and freedom to reach those big goals, whether it’s a house down payment or an epic vacation. Finding the perfect method may take some trial and error, but don’t give up. The feeling of being in control of your finances is priceless.

By: Chris Bemis

When you’re navigating the job market or budgeting for your future, knowing what your annual salary translates to in terms of an hourly wage can be incredibly helpful.

In this article, we’ll break down the math and explore what $70,000 a year means on an hourly basis.

We’ll also dive into related topics such as post-tax income, biweekly earnings, monthly income, and whether $70,000 a year can be considered a good salary. Plus, we’ll share tips on how you can potentially increase your hourly wage.

$70,000 a Year is How Much an Hour?

Determining how much an annual salary of $70,000 translates to on an hourly basis can provide a clearer perspective on your earnings. This calculation can be particularly useful when evaluating job offers, budgeting, or understanding the value of your time. To figure out your hourly wage from an annual salary, follow this straightforward formula:

$70,000 (annual income) / 52 (number of weeks in a year) / 40 (standard hours in a workweek) = $33.65 per hour

So, if you earn $70,000 a year, your hourly wage is approximately $33.65 before taxes. This calculation assumes you work a standard 40-hour workweek for all 52 weeks in a year.

Understanding your hourly rate is not just about the numbers; it can help you make informed financial decisions and plan your budget effectively. Whether you’re considering a job change, negotiating a raise, or simply curious about the value of your time, knowing your hourly wage is a valuable piece of financial information.

What is $70,000 a Year After Taxes?

Understanding your take-home pay is crucial when planning your finances. The amount you receive after taxes depends on various factors, including your tax filing status, deductions, and the state you reside in.

On average, individuals can expect to pay around 20-30% or more of their income in federal and state income taxes. Let’s take some data from the IRS website on what your tax rate will be according to your income. This does not account for any of the factors listed above.

• 37% for incomes over $578,125 ($693,750 for married couples filing jointly)
• 35% for incomes over $231,250 ($462,500 for married couples filing jointly)
• 32% for incomes over $182,100 ($364,200 for married couples filing jointly)
• 24% for incomes over $95,375 ($190,750 for married couples filing jointly)
• 22% for incomes over $44,725 ($89,450 for married couples filing jointly)
• 12% for incomes over $11,000 ($22,000 for married couples filing jointly)

So at a $70,000 annual income, we will assume a tax rate of 22%.

$70,000 (annual income) x 22% (tax rate) = $15,400

So, after taxes, you would have approximately $54,600 left as your annual income.

$70,000 a Year is How Much Biweekly?

Many employers pay their employees on a biweekly schedule, which means you receive a paycheck every two weeks. To calculate your biweekly income, you’ll need to divide your annual income by the number of pay periods in a year. Most often, there are 26 pay periods in a year for biweekly paychecks.

So, the calculation would look like this:

$70,000 (annual income) / 26 (biweekly pay periods) ≈ $2,692

At $70,000 a year, you would earn approximately $2,692 before taxes with each biweekly paycheck.

$70,000 a Year is How Much a Month?

If you’re curious about your monthly income at an annual rate of $70,000, you can calculate it by dividing your yearly income by 12 (since there are 12 months in a year):

$70,000 (annual income) / 12 (months) = $5,833

So, at a yearly salary of $70,000, your monthly income before taxes would be approximately $5,833.

Is $70,000 a Year a Good Salary?

Whether $70,000 a year is considered a good salary depends on various factors, including your location, cost of living, and personal financial goals. In some areas with a lower cost of living, $70,000 can provide a comfortable life. However, in more expensive cities, it may not stretch as far.

To determine if it’s sufficient for your needs, consider your monthly expenses, such as housing, utilities, transportation, groceries, and savings goals.

Additionally, factors like job benefits, opportunities for advancement, and job satisfaction play a significant role in evaluating the overall value of your wage.

Let’s take a look at how a $70,000 a year salary compares to others in the United States.

According to data from the US Census Bureau for 2022, the median income for Nonfamily households in the United States was approximately $45,440 – which means that half of all individuals earned more than this amount, and half earned less.

So, if you have a salary of $70,000, you have a salary that is in the top 50 percent of all earners in the United States.

With a salary of over $60,000, you are doing very well and in the top echelon of earners in the United States.

How to Increase Your Hourly Wage

If you’re looking to boost your hourly wage, there are several strategies you can consider:

• Skill Development: Enhance your skills or acquire new ones that are in demand in your industry.
• Negotiation: When starting a new job or during performance reviews, don’t hesitate to negotiate your wage.
• Further Education: Consider pursuing additional education or certifications that can increase your market value.
• Job Switch: Sometimes, switching to a different job or company can lead to a significant salary increase.
• Freelancing or Part-Time Work: Explore part-time job opportunities or freelance work to supplement your primary income. Apps like Fiverr or Upwork can be a great spot to post your skills and get hired for part-time work.
• Start a Side Hustle: Look to make more money by starting a side hustle. A lot of these you can do from your phone. The list includes dog walking/sitting apps, food delivery apps, picture-taking apps, secret shopping apps, and plenty more. It is a great resource to see all the different side hustle apps that are out there.

Will a Salary of $70,000 Help Me Become Rich?

A salary of $70,000 can certainly help you build wealth and achieve financial success, but whether it will make you ‘rich’ depends on various factors, including your financial goals, lifestyle choices, expenses, and savings/investment strategies.

Here are some considerations:

• Financial Goals: The definition of “rich” varies from person to person. For some, it means achieving financial security and having enough to comfortably cover living expenses and retirement. For others, it means accumulating significant wealth. Your specific financial goals will determine what “rich” means to you.
• Lifestyle Choices: Your spending habits and lifestyle choices play a significant role in your ability to accumulate wealth. Even with a high salary, if you spend excessively or accumulate debt, it can hinder your path to becoming rich. Budgeting, practicing mindful spending, and living below your means are essential.
• Savings and Investments: Building wealth often involves saving a significant portion of your income and making smart investments. A high salary provides the opportunity to save and invest more, which can accelerate your wealth-building journey. Consider contributing to retirement accounts, investing in stocks or real estate, and diversifying your investments.
• Debt Management: Reducing and managing debt, such as student loans, credit card debt, and mortgages, is crucial for building wealth. High-interest debt can erode your financial progress, so it’s important to prioritize paying it off.
• Cost of Living: The cost of living in your area can significantly impact your ability to save and invest. In high-cost-of-living areas, it may be more challenging to build wealth, even with a high salary.
• Investment Strategy: Your investment strategy, including asset allocation, risk tolerance, and long-term planning, can greatly influence your wealth accumulation. Consulting with a financial advisor can help you make informed investment decisions.
• Time Horizon: Building substantial wealth often takes time and consistent effort. The longer your time horizon, the more potential you have to accumulate wealth through the power of compounding returns.

In summary, a $70,000 salary provides a solid foundation for building wealth, but it’s not the salary alone that determines your financial success. Becoming ‘rich’ is a subjective goal, so it’s essential to define what it means for you and create a financial plan to pursue it.

Conclusion

In conclusion, understanding what your annual salary translates to on an hourly basis can provide valuable insights into your financial situation. It’s not just about the number, but how it aligns with your financial goals, lifestyle, and location.

Remember, if you’re aiming for an increase in your hourly wage, there are steps you can take to make it happen.