Personal Finance

August 3 2024

The Big Money Belief: Abundance Mindset

The Rakstar Personal Finance Finance, Stress, Way of Living

Big Money…Abundance Mindset?

What we think is true versus what is really true?
How do we see others’ riches versus our own riches?
Is Money a Stressor or a Saviour?

I once overheard someone at a Ferrari event ask the person next to them who they just literally met and had passed the Hi How are you, so What do you Do commentary and then just like that, bam, he asked:

What I just don’t understand is… how does someone like you… working as a mid level employee in a company, afford a Ferrari?

Now you may think that this was a rude question but in reality and truth, he was speaking what was on his mind. If he thought this, then maybe just maybe everyone else did. What about the other employees at work? The person’s boss? All scratching their heads dumbfounded. Maybe so?

In order for us to be rich, we must be Rich CEO’s or Investment Managers, Surgeons, High profiled lawyers … but the truth is – here comes the abundance mindset – we must be financially literate.

Think of it as this – You go to school to study and learn and basically be smart so that one day you can buy a house, drive a fancy car, support your family and well – conform to societal norms. But in order to do that, we need the Moolah – the dolla bill – well hundred and hundreds of dolla bills because frankly nothing is cheap anymore. 25 cents chocolate bars seemed like a different world back in the day. I wouldn’t know regardless. LOL!

What we don’t learn is how to be financially independent. How to eliminate financial stress, how to build wealth and how to be our own wealthy person. But the first step in any financial education, learning, masterclass, skill – whatever you want to call it. The idea of having money, lots and lots of it, doesn’t always equate to a fulfilled life. Yes you can have money, lots of it but what’s the point if you are unhappy? I guess that’s where the quote Money can’t buy happiness falls into it. It’s like having a lifetime supply of boston cream donuts, only to have a dairy allergy! What’s the point? You can be a hot shot exec working or some would say slaving for so many years, earning that dough, creating wealth only to realize you are burnt out, tired and have lost your interests, your friends, loved ones – why? Your life was not fulfilled. Working with no meaning or purpose.

So why do they call it Personal Finance?

Well, it’s personal.

No one size fits all.

What is the very first step to financial freedom?

See where you want to go and keep traveling there (metaphorically speaking).

Example: Save up for a nice apartment.

Change your outlook (no not your email). Don’t think of money as a stressor. Think of money as a saviour.

Example: Money is not evil, it’s a positive source of life.

Be Realistic! You won’t wake up as a millionaire, but overtime, in a few years possibly, you can arrive at your fulfilled life. But remember when you start now, change is bound to happen. If you don’t do anything about it, nothing much will change. Unless you leave it to the lotto.

Example: Set a plan of action for budgeting/saving/earning more than what you had before.

Do not surrender to fear. Fear is part of the process. Fear comes before accomplishment

Example: Setbacks are bound to happen.

Where has there been one biography story where the person didn’t encounter hardship. It makes a good story, so keep moving so you get to the next chapter.

Do not let your energy fade. The good one. Day to day actions are needed for a big change. If you lose hope one day, if you forget where you are going, if you forget you won’t go far! Remember your own reason and keep it close to you!

Example: Put it on a sticky note, frame it, take a picture and keep it as your screensaver.

: Photo by Roberto Nickson

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August 3 2024

Toxic Relationship with Money?

The Rakstar Personal Finance Finance, Stress

So, you are in this relationship but you feel it’s one sided. They are the devil and you are the angel. There’s never going to be a happy medium. It’s always want, want, want, take, take, take and never give give give.

But why are you in the ever never ending battle with them. You can’t afford to leave them and if you do, you will go back. You are dependent, reliant and hate it all together.

Mr. or Ms. Money has been flowing in and out of your house. It sees other people and you can’t be angry about that because you know it has its needs. But you have your needs and you need to be taken care of. Don’t let money control you, you control money.

Let’s face it. In a world of recessions, one point or another, we have learned growing up not to spend money. Save your money. Compare prices. Find the cheaper option. The cheaper alternative and sometimes we learn why that cheaper alternative is cheap.

We each grew up differently, with different cultural backgrounds, experiences and at different schools. But there is one common universal theme we may have all experienced in life. Money! Whatever currency you use, there just seems to never be enough. In a way where it becomes such a quotient task, to exchange money for something else, we almost don’t see it as a chore but often as a fright of money going out and not enough coming in.

The people that don’t have a toxic relationship with money are more content, knowingly and willingly spend it where they want it, without having a single regret.

So the question comes down to this, Rakstars, do you have a toxic relationship with money?

Here are the signs:

You always feel poor

Do you walk in the mall only to window shop? You enter the store, only to walk to the back of the shop, to find the sales rack, because you are shopping solely on price. Do you ever see yourself, taking a look at the price tag and putting it down like a can of overpriced tuna? Why? Does your mind often say, “I can’t afford that. No, it’s too much.” But the rest of the customers in the store shop like it’s a boxing day sale on a typical Tuesday morning?

You hate people who have money

You scroll on instagram to see people dressed up in such high end designer clothing. You meet up with one of your friends that just bought a new house. You watch strangers get out of their expensive sports car. But you just can’t help it but say something bad about them. Or you give them an excuse. It’s instagram – it’s probably fake. They couldn’t have bought a house on their own, they are probably renting it. That car – they must have rich parents!

You have a fear of spending

You just can’t seem to hand over that one dollar to the cashier for a water bottle when you are severely dehydrated because you know you can get water from the tap at home, you are only an hour away. Maybe you can hold your thirst? While you are home to release your thirst, you add water to the milk so that it lasts longer. There is a difference between frugal living and living with the stress of money.

You are scared of letting go

You pay your bill at the very last minute because frankly, you see that the amount in the account is big, it’s nice and who would want to touch that. What if you need that money for something else, it’s all going to go in a quick click. You can’t part with your money. You like to hold on to it, like a favourite teddy bear. You can’t bear to lose it. No you can’t.

You haven’t invested in yourself

You have not gone for a vacation or bought yourself new clothes or ordered take out. You have been a little skimpy on yourself and chose to live this way because you can’t possibly spend money to make your life better, no that would be selfish of you. You work to pay the bills and that’s it. You live a robotic life.

So if any of the above sounds like you, it’s time to rethink your relationship goals. Try to have a talk with yourself and Mr. or Ms. Money about the way you approach it. Sometimes, seeing the big picture, creating a budget and learning to spend money (small change – small steps), can break that fear of spending or using money. Try going to your local dollar store. Walk in and get something that you will definitely use like a broom, a birthday card for a friend or simply candy for yourself. Practice the art of spending. There’s nothing scary about it. Turning this toxic relationship to a synergistic relationship will not only help you not be fearful but will make you one step closer to your financial freedom.

Avoiding the issue will not let you get to where you want to be. Only through education and knowledge can you somehow get past the sweating palm of handing cash over and make you comfortable with letting go.

So Rakstars, make this relationship work for you and not against you.

: Photo by Karolina Kaboompics

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August 3 2024

Spending Money vs Regret: Pick your battle

The Rakstar Personal Finance Finance, Way of Living

In a life filled with decisions based on one aspect, we ought to find ourselves is money the real enemy or is it the choices that we make?

There’s more to life than money. One must hope. But as we delve into the deep roots that lay upon us, pine into the hardworking soul of our day and dazzle into the bed hoping for a good night’s rest, one thing comes to mind. The life you wish you lived. For it seems strange, to think about it, but what is sleep without dreams and what are dreams without goals and what are goals without aspirations and what are aspirations without you.

When you have money, the choices you make are endless. There is no confusion in the world and if you can’t decide, you will just go for both. The lobster and the crab. The house and the yacht. Your partner and the mistress. Why? Because money, like it or not … is power! The power to do anything you want.

Now what if I told you, you have an abundance of money, would you regret anything? Probably not! The way the world works, the way we see things, if we don’t have money then we cannot do x, y, and z, thus, we have regret.

Think about it!

In the next 2 seconds think about what you would choose.

Spending Money or Regret!

Pick your battle!

Regret is like battle scars. The things you wish you did but you didn’t. I wish I spent money on a new piano, I could have pursued my piano career. I wish I had negotiated a higher salary. I should have invested my money instead of saving it – I would have been rich. I wish I spent money on tutoring so I could have graduated. I wish I trusted myself and started my business. I wish…I wish…I wish….There ain’t no wishing stars nearby.

The internal struggle that falls inside our souls is a delicate dance of making the right choices. But how do we know if it’s the right choice? Only time can answer that.

When you spend money on the things that are investments to you – that provide a high value of return – you should spend it. For example, a self-development course or a high quality tote bag that will last you years to come.

When you spend money on the things that do not provide a high value of return such as shoes or decor pillows only to be used once – you shouldn’t splurge.

If we don’t purchase the self-development course, then we cannot improve our communication skills which will cause us to not get the promotion. On the other hand, if we don’t purchase shoes, well, then we will just wear shoes we already have. See the difference!

Now which scenario would you feel regret?

Option 1: Self-development course

Option 2: Shoes

Now on the count of three…let’s say our choice. Ready! 1 -2 -3- Shoe – oh – Yep Self-development course. Option 1! Regret looms like a dark shadow laughing down on us.

But here’s the message: Making the choices that suit your needs in the current time. Balance is key!

Spending money can bring joy and satisfaction whereas regret can feel gloomy. So don’t be stingy! You can save all you want, you really can. But there comes to a point in life, where saving money isn’t going to help you. It’s spending money to gain something in return that can get you one step closer to where you need to be. Such as one step up the corporate ladder, higher grades and even a well-rounded version of yourself. Don’t skimp on yourself because you don’t want to spend money. Spending money is not an enemy. Spending money is what makes the world go round and the economy happy.

You can’t be stingy or skimpy on spending. But you can be smart about your money so you don’t have to be stingy or skimpy. When you budget wisely for the things that truly matter to you – don’t feel guilty. On the other hand, if you pass up your potential and opportunities because you didn’t take the leap and hand over the cash – regret can sneak in.

So the lesson to be learned is…indulge wisely. Life is too short for regrets and financial security is an abundance of enjoyment. Enjoy the dance and spend on things that truly matter to you.

Remember, Rakstars, life is a runway and you’re the star.

: Photo by Liza Summer

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August 3 2024

Pay Yourself First

The Rakstar Personal Finance Finance, Self-Care, Way of Living

Why do people have a world of luxury? I’m saving so much but I can’t afford what others have?

No. 1: Don’t compare what you have and what others have? Your life is not the same as them, nor your neighbour. You do you boo.

No. 2: Are you paying yourself first? No, well, read below:

The Power of Paying Yourself First

Financial freedom is a life we all dream of. But there are ways to achieve it and there are steps that need to be taken. Nothing is as easy as a blink of an eye, but through the test of time, paying yourself first is unlike no other advice we hear.

What does it mean to Pay Yourself First?

Paying yourself. You like the sound of it. So do I. It is the concept of taking a percentage of your income to a YOU account. So essentially, it now becomes part of your expenses. You take your income minus all your expenses including a percentage that you allocate to yourself. This way the money you take from the percentage is now focused on you. This shifts the approach from just spending on whatever and whenever to intentional wealth-building.

Pros of Paying Yourself First

Discipline

In a vast society of many many things, when we prioritize ourselves, we live in a world where we want to be strategic with our money. Who doesn’t like spending money on themselves? You are forced to live within your means while working towards your financial goals. The practice of budgeting and training yourself, where every penny goes, make you more financially conscious about your spending habits, thus investing the money you save for yourself, for something you most desire.

Wealth though Time

Let’s just say you take the amount you pay yourself and throw it into an investment account where compound interest works its magic wand. You have now paid yourself more money. Thus building your one stop step to the wealth machine.

Emergency Fund

This is your BFF. When you pay yourself first, this allows you to maintain that emergency fund because you can contribute to it. Have that peace of mind and reduce your stress load from any unexpected expenses that could have negative consequences on the money side of things..

Mindset Change

When you prioritize yourself and your needs. You are no longer poor. That’s right, Rakstars. You are not poor. You have an abundance of resources at your fingertips. You pay yourself which means you are empowered. You are no longer an observer, you are an architect building that life you so desire. Your mind opens up to all wonders and you can do what you imagined you couldn’t before. Go ice skating, treat yourself to the amusement park or buy that designer item you had your eye on.

Tips for Implementing “Pay Yourself First”

Set Your Financial Goals

What is your short-term financial goal?

What is your long-term financial goal?

Examples can include: Luxury handbag, payment on a house, emergency fund, maybe you want to start thinking about retirement. I know I do!

Automation can be your Friend

We can’t simply remember that the 15th of every month and the last day of every month is pay day! So many things happen in life and it gets crazy busy. Try to make the process smooth by setting an automatic transfer to a different account, so that you can watch it grow.

Beginning will be small

At first, setting everything up and allocating a portion/percentage of the income may be small amounts. That’s okay. You’ve started. This is the main thing! When your income grows, you grow as a person – you will see, so will the amount and value you get for paying yourself first.

Rakstars, paying yourself first is an opportunity to invest in yourself. Whether it’s going to conferences, learning a new instrument or purchasing something you had your eye on, you are allowed to prioritize your wellbeing. By making choices and laying out a concrete foundation for your wealth by paying yourself first. Not only are you going to live the life you dreamed but you will enjoy it. You don’t have to wait till your 99 in retirement to enjoy life. Enjoy it now!

: Photo by Karolina Kaboompics

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August 3 2024

The Cash Card

The Rakstar Personal Finance Debit Card, Finance, Way of Living

In a life filled with borrowing money, there’s another world that we often misplace. A card that is a synonym for cash. Something so foreign yet strange. It looks and feels like a credit card. In fact, it works like one. But we are not borrowing money. We are using our own. Can you guess what it is, Rakstars?

Yes you’re right!

A Debit card.

A versatile option that is more than just a plastic rectangle. An object that is a seamless transaction between your bank account and the items you desire to purchase.

What is a Debit Card?

This is a card where you can pay using your funds that are in your checking or savings account whenever you make a purchase. This does not involve borrowed money like a credit card. Thus, allowing you to pay for an item, which simply is your own money.

Pros

Debit cards offer a wide array of benefits:

1. Everyday Transactions

Whenever you are on the go, need a quick bite to eat or pay for that ride, debit cards can be your go to. It provides quick and hassle-free payments, allowing you to use it for those everyday transactions.

2. ATM Access

Do you require cash? Well, if so, you can jump to your nearest ATM and withdraw the cash. Need to put cash in your account, well, you can even deposit funds. As a tip, try to go to the ATM machine that is associated with the financial institution of your debit card, to avoid any costs from other financial institutions ATM machines.

3. Online Shopping

Yes, the area where you tell your online cart to take your money and check out before you can even think twice. Pay with your debit card online in just a few clicks.

4. Budget Control

These plastic cards, not to be confused with credit cards, can actually help you budget your money wisely as you know you are working with a fixed amount of money. Your money. You can only spend what you have in your account or the lack of a better term, the amount you budgeted for. When you actually see money flow out of your account, you can understand why a debit card is like a cashwave card. It ripples and flows away. .

5. No Interest Charges

If I say so myself, this is the ultimate benefit of a debit cards. You are spending your own money thus there will be no interest charges. You can save money on any interest, since you don’t forget that you owe money and since you used your debit card, you could actually afford it.

Debit Cards are as secure as Credit Cards.

Don’t worry, Rakstars, no excuses.

PIN Protection

Debit cards have a PIN number for transaction. PIN stands for personal identification number, which adds security as you are the only one that knows that unique code.

Fraud Protection

If there is any unauthorized transaction, most banks offer fraud protection once you report them, depending on your account.

Just in Time Monitoring

Rakstars, you can stay in control of your spending habits by tracking your just in time monitoring as with the technology of today, banks have mobile apps where you can see your account balances and transactions whenever and wherever you want. So long you are connected to the beloved WiFi.

Rakstars, remember that you can use your debit card aka cash card as a friend, someone who you can bring along to make purchases, manage your budget and simplify your fees. See you at your destination.

: Photo by Cup of Couple

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August 3 2024

Credit Card 101: Credit Scores

The Rakstar Personal Finance Credit Card, Finance, Way of Living

What’s the power for you to obtain that loan?

What’s the most influential power holder in the debt world?

Let me give you a hint, two words:

Credit Score!

Want that dream home? That shiny new car? Or what about that watch? Or if you are really good and a lover of financial stability, then knowing and understanding your credit score is crucial.

What is it?

A credit score is a three digit number – a numerical representation indicating your creditworthiness. When you apply to get credit, lenders will examine your credit scores so that they can determine your credit risk. Credit score is also known as FICO scores.

There are three credit bureaus that keep credit information about you which is then used to calculate the score. Have you ever heard of Equifax, TransUnion or Experian?

Credit score can range from 300-850 with the higher number being the best kind of like an A+ on a report card. Who doesn’t want that? A credit score about 700 or higher is good. So maintain that if you can. It is important to note this score is derived from your credit history, payment behaviors, financial behavior and any outstanding debts. What behavior you may ask? Well, if you pay your bills on time – it shows that you are financially responsible.

Why Does a Credit Score Matter?

Borrowing Power

This allows the ability to borrow money when you need it such as a mortgage for that dream home or a credit card to use. The credit score assess the risk of lending you the money. No one wants to give money out if they can’t be repaid.

Good Interest Rates

If you have a good credit score this can be a benefit to you such as receiving lower interest rates. If Lenders see that you are less risky (high credit score), they will offer you favorable interest rates. This will help save you money in the long run.

Financial Opportunities

With money, comes opportunities. Having a good score can open the doors to things you may want to pursue such as receiving a business loan or purchasing a second property to rent.

How to Improve Your Credit Score

Pay Your Bills on Time

When you pay on time, it won’t impact your score. A friendly tip is to set up automatic payments or even phone reminders to make sure you never miss the deadline.

Credit Utilization

Make sure to keep your credit card balances low compared to the total credit limit. For example, try to have a ratio below 30% to demonstrate responsible management. If your credit limit is $1,000 – don’t go over 300 (1,000*30%).

Diversify Your Mix

Different types of credit is better as it can positively impact the credit score. You can have credit cards, installment loans and retail accounts. Make sure you open accounts that are user friendly, necessary and make sense to you.

Check Your Credit Report

Make sure to check your credit report so that there are no errors (it can happen). If there are discrepancies – dispute it since this is a reflection of your financial behaviour.

Ways to Increase your Credit Score

Make sure when you complete a credit application, it accurately reflects you.
Be responsible with your credit card, pick a credit card that suits your needs and do not spend over what is needed. Live within your means.
Pay the credit card balance in full when it’s due, avoid the interest if possible. Pay the bill on time even if that means making the minimum payment by the due date.
If there is a problem paying a bill, ask for help. Contact the lendor and see if you can figure out a payment plant. Asking is better than not asking.
Keep your information updated such as contact information and address. You don’t want anyone receiving your bills and you miss the deadline since you never received the bill.
Establish responsible financial behaviour – don’t splurge but don’t forget to treat yourself.

Rakstars, remember your credit score is not just a number. This is a tool that can help you in your life. When you treat your credit with respect, you will see long term benefits than to use and abuse it. Keep an eye out for that three digit number, since it does have the power to unlock your dreams. After all, money is power, at least they say.

: Photo by Mikhail Nilov

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August 3 2024

Back to the Basics: Listen up, School is out, Real life is in!

The Rakstar Personal Finance Credit Card, Finance, Way of Living

Credit Card 101

Rakstars, do you own a credit card? Just joking, I know you do. Credit Cards have become the fundamental use of payment. There is nothing better than swiping, inserting or tapping. When you receive your goods that you purchased, there is no other incredible feeling than being rich. Yes, you heard it correctly. Richness and credit cards – don’t they go hand in hand. Money you can use whenever and wherever you like. But just like a cheating lover, so can a credit card be.

We love credit cards because they provide us with security, power, convenience and even more important – rewards. Whether it’s cash back or points, you know it’s better than cash because you are getting something back for using the card.

Credit Cards are great and are easy to use. If they are lost, you simply report the card and issue a new credit card. It’s easy as 123. On the other hand, cash is risky – if it’s stolen – well it’s gone. Hasta La Vista! Thus, we turn to credit cards but you need to be wary. You can’t go into the relationship thinking that it’s all fun and games, until you see the receipts. Yes you know, your credit card statement. That’s when the truth of the relationship starts to show.

Before you immerse yourself with your lovely partner aka credit card, get to know what each credit term means.

Annual Fee

First things first, there can be a fixed cost of owning a credit card, so make sure you understand which credit card you have and if it has a fee associated with it. Don’t worry, not all credit cards do.

Balance

This is the amount of money that you owe back to the credit card company. Basically, all those items purchased added up and now you are staring at the total cost. From feeling rich you now suddenly feel poor. Who knew that vegan fur jacket was actually $600? But it’s so soft.

Credit Limit

This is the maximum amount that you can use on your credit card per month. So let’s say the credit card company offers you a credit limit of $3,000, you can spend up to 3,000 and anything over the 3k mark will be declined, so be careful. Good news is that once you pay off what you owe, it will reset to the full $3,000.

Annual Percentage Rate (APR)

This is where the fun begins. APR is the yearly interest rate that gets charged to your account when you don’t pay the bill on time. Remember you purchase items in one month, you must pay by the next month otherwise you will be charged interest, thus making the items you purchased more expensive. Ain’t nobody gonna give you money for free, boo!

Credit Bureau

No this is not the FBI, but a reporting agency. They collect information on consumer usage of credit. Nothing to worry about.

Introductory offer

This is an interest rate that is normally given to you, when you sign up for a new credit card just as an introductory offer, thus the name. But remember, these rates are normally lower than the standard rate to attract you to join them. Make sure you are well aware of what the actual rate is once you say goodbye to the introductory offer.

Minimum Payment

You might have seen this at the bottom of your credit card statement. This is the amount that you must pay by the due date to ensure that you are in good standing. However, the remaining amount that you don’t pay – say hello to interest!

Credit Rating

Your credit report card. This is the evaluation of your ability to manage debt. If you ever want to borrow money for big purchases like a house or apply for a loan, this is what they look at before they grant you your wish.

Just like any Rakstar, maximize your benefits and minimize any costs that you can avoid.

Pros	Cons
Convenience: With you at all times, can purchase no matter the cost. Say goodbye to counting out your change at your local barista.	Interest: Paying a percentage on an amount that we borrowed but haven’t paid back. This makes our purchases more expensive than necessary.
Immediate Purchase: That cute top you just have to buy. Well, you can with a quick swipe of course and no we don’t mean Tinder. But in all seriousness, if there is an emergency and you don’t have an emergency fund(link to other article) then it’s wise to use.	Fees: Credit cards have a fee just to use them (not all but some). So make sure the credit card is offering you a benefit of using it, otherwise find a credit card that is worth your while. Spend time researching. As we say, knowledge is power and so it links to our wallets.
Keeping a Record: Budgeting, saving money and being financially free – that’s your motto – well, using a credit card can help you keep on track creating a record for you to plan and see what money is going out.
Rewards: Yes, baby, yes. Using a credit card can create a benefit to earn points to get free stuff, who doesn’t like free!
Finder’s Keeper: Having a credit card is linked to you and only you compared to cash if it’s lost it’s gone. You can simply cancel your card and make sure it doesn’t get into the wrong hands.

Rakstars, here is friendly advice, budget and track your spending. Make sure you are able to pay your credit card bill when it’s due. Otherwise, the interest can accumulate and debt can grow like a mole.

: Photo by Monstera Production

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August 3 2024

Rainy Day? Use your Financial Umbrella

The Rakstar Personal Finance Finance, Way of Living

“I am upset. I have been saving up for a vacation and now the basement has flooded. This is a nightmare! All these unexpected bills are ruining my savings. I’m crestfallen that there is not going to be a vacation due to these unexpected bills.”

Have you heard the saying – a shower of unexpected surprises?

Emergency Fund.

Rainy Day Fun.

They are all the same but it is definitely important to have one. Your financial umbrella will allow you to go through life’s storms with regalness and kindness.

Weather Forecast: Financial Showers

Weather is unpredictable, it can be raining to be warm to sudden cold to snow similar to life’s weather. Whether it’s medical bills, shopping extravaganza or home repairs, these downpours are inevitable. Having this rainy day fund, can help us not get drenched in financial stress.

Financial Umbrella

This is a protection from the rain. It’s basically a pool of your savings that you set aside just in case there are unforeseen expenses. Each month, if you set aside a portion of your income net current expenses, you can contribute to this fund. Thus when it rains you don’t get poured.

The Benefits of a Financial Umbrella

Safety

This allows you to be safe in case there are any setbacks. The fund is like a buffer helping you to bounce back up building financial resilience.

Peace

Rainy day fund gives you peace as you can thrive in life knowing that you have an umbrella protecting you from the rain. This can help to get rid of that stress and anxiety that sits in the back of your mind.

Reduce Debt

When people do not have a rainy day fund, they turn towards loans, credit cards and debt to cover these unexpected costs, which in turn leads to a spinning wheel of debt – interest builds up and you end up spending more money than you need to. Remember, Rakstars, you have to preserve your financial well-being.

After the rain comes blooming flowers

When you have a financial umbrella, this can help you not just for the unexpected expenses but for the choices that you make. After all, you are the reign to your kingdom, thus you can pivot and do what suits you. Want a career change, want to do something out of the norm, invest in personal development – well now you can. With the financial umbrella – you have savings which can help to yield opportunities.

Let’s build the Financial Umbrella

Always start small

Set a small amount that is reasonable to you each month to contribute to the umbrella. Remember, be consistent – the amount will add up.

Savings Automation

You can set up automatic transfers, so you can contribute to the fund without thinking twice.

Remove the unnecessary expenses

Take a look at your budget, your costs and see if you can cut back on anything. If you can, reroute those funds to your umbrella.

There you have Rakstars, with surprises comes umbrella’s and now you can walk through life not scared of any raindrops. No rain is going to stop your parade. Contribute to your financial umbrella so you can remove the unnecessary stress and debt.

: Photo by Eugene Lisyuk

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August 3 2024

Money! Money! Pass me the Money! (Top 8 Ways to Earn Extra Income!)

The Rakstar Personal Finance earn money, Finance

(Disclaimer: The content on this blog is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making any financial decisions. The author and the blog are not responsible for any actions taken based on the information provided. Use this information at your own risk.)

Picture a world where you have money on your side. You hold the key, and all you need to do is open the doors to the chances that take you there. Making more money has turned into a goal for everyone. Whether you want to build up your savings, clear that debt, or pay for your next trip, pass me the money:

Freelancing & Gigs

The freelancer job growth has created many chances, thanks to the internet. Are you a a writer, graphic designer, programmer, or developer?If you have any skill you think you can sell, you set up a listing on websites like Upwork and Fiverr. They will help you link up with potential clients worldwide. Clients aren’t stuck to one place, which means you can follow your passion and turn it into a great money-making side job.

Online Courses & Tutoring

You’re great at that thing. You know – that thing you’ve explained to everyone time and time again. You are basically an expert by now so why not share what you know through online courses and/or tutoring? Websites like Udemy, Teachable or putting up a flyer at the local community center can help let you make and sell courses on all sorts of topics. Or, you could offer tutoring for subjects you’re good at. This helps other people and puts some extra cash in your pocket too.

Rental Assets

Do you have assets just lying around? No, I don’t mean just a house, but, hey, if there’s a part of it you’re not using, why not? Consider renting it out. Renting out that extra room can bring some money in or if you are not ready to share a roof with someone, try out renting your camera equipment at a fee, or even your car through services like Turo. Turn what you own into an income-producing asset and watch that cash flow. Time to get busy!

Investment

Make your money work for you. Today, investment opportunities are very diverse: from investments in stocks and bonds to the new ways of investing in real estate such as crowdfunding or peer-to-peer lending. But what matters is that you research and choose investment opportunities that are suitable for your risk tolerance and of course, your financial goals. Investing is a better option than letting your money sit in your bank account doing nothing. At least, let it do the money dance!

Work from Home Opportunities

Working from home is increasing these days, that also means that there are many more companies out there that are willing to hire remote employees, freelancers or part-time. Websites such as Remote OK, FlexJobs and Indeed frequently have remote job listings covering a wide range of industries. Options are endless: virtual assistant, content creator, customer service representative—the list goes on. Remote work can offer flexible and supportive ways to supplement your income.

Sell Handmade or Vintage Items

If you have that creative edge for crafting or the ‘third eye’ for vintage finds, consider selling on websites like Etsy and eBay. You can sell anything from handmade jewelry to clothes from another era—many markets are looking for your unique and personalized items. This will be a really fulfilling way to shape a hobby into profit.

Participate in Market Research and Surveys

Businesses look for consumer opinions, which translate to willing-to-pay. Sign up for some credible market research and survey platforms, such as Swagbucks, Survey Junkie or Pinecone Research. While it won’t be heavy in terms of earnings, answering surveys can be one easy and hassle-free way to have an extra buck or two or earn some gift cards. Nothing says making money, then onto the subway to get to your destination.

Offer consulting services

Do you consider yourself an expert in some particular industry or even some sort of skill set? Offer your services as a consultant. There are so many businesses and people, for example, that will pay for guidance or an inside look into how to do this or that better. This can be business consulting, career coaching or even lifestyle consulting. Websites like Clarity.fm match experts with those looking for advice.

Earning extra income is not only about increasing those numbers in your bank balance; it’s about creating opportunities and expanding your finances. Take the leap and find out the potential for financial growth and personal fulfillment.

Your journey to extra income starts with a single step—Rakstars, what will be yours?

: Photo by Vlada Karpovich

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August 3 2024

Meet Your Financial BFFs: Emma – Emergency Fund, Ronnie – Retirement Savings and Georgina – Goals (The Squad Goals, If You Will)

The Rakstar Personal Finance Finance, Goals, Retirement Savings

Do you BFF’s give you an investment to your finances? I think not! Too many breakups, shopping sprees and a whole lot of ordering at night. Well Rakstars, let me introduce you to your new BFF’s. The ones that help you do the money dance when times get tough. They stick with you when it hurts. Don’t worry you know that these are your true friends. These BFFs have a special place in our hearts, they help us financially and personally. So what are you waiting for, it’s time to meet Your Financial BFFs:

Emma the Emergency Fund, Ronnie the Retirement Savings & Georgina the Goals

(Squad Goals, anyone?)

Financial well-being is a new world, it’s essential to have a friend group that has your back. Enter group chat—Emma (Emergency Fund), Ronnie (Retirement Savings) and Georgina (Goals). These three complement one another in securing your financial future.

Emma The Rescuer

Something happens. Oh Damn Girl! You look into your account, you didn’t account for it – but as you scroll through your accounts, Emma is here for you. You smile at her cause she is the dependable friend who always has your back in times of crisis. This is your Emergency Fund. Stuff could be anything from medical expenses, car repairs, or sudden unemployment, Emma comes in to save your day. This financial safety net provides you a peace of mind so that you can help be in charge of the situation and navigate life’s chaos. Remember to thank Emma by paying her back! (Once you got yourself sorted out, remember to top up your account in case of a future situation).

Emma’s Personality

Easily accessible savings
Try to cover 3 to 6 months’ worth of living expenses.
Acts as a protection during unexpected financial outcomes.

Ronnie The Wise Owl

Ronnie is all about long-term planning. They are the one that motivates you to envision a future of financial independence. When you consistently contribute to your retirement accounts you are investing in a future where you can retire comfortably. Say yes please! Enjoy those smoothies on a beach in Hawaii. The power of compounding works its magic, making your retirement savings grow over time and voila, you are living life baby. Thanks Ronnie!

Ronnie’s Personality

Long-term investment for financial security in retirement.
Compound interest amplifies your savings.
Diversify to manage any risk and optimize those returns.

Georgina The Let’s do It Coach

Georgina is like the gym coach in your squad pushing and pulling you to strive for the greatness of endless opportunities. Whether it’s purchasing your first home, starting that business, or traveling to Paris (Emily in Paris, anyone?). These goals help utilize your money to be put to good use rather than sitting in an old piggy bank or in between the couch. If you can set clear and precise objectives, you can create a map for your finances and possibly a roadtrip! Each milestone achieved is a victory, motivating you to stay disciplined and focused on your aspirations.

Georgina’s Personality

Personalized financial milestones.
Provides direction and purpose to your financial decisions.
Celebrates achievements along the way.

The Power of Your Trio BFFs

It’s all about synergy. I mean that’s what makes a good friend group good. Your friends will work together to build a financial foundation for you. Emma provides immediate protection, Ronnie secures your long-term future and Georgina adds meaning to your journey.

Now just like friends, you have to help and hang out with them to maximize the fun. Here are some suggestions:

Consistently Contributing:

When you contribute to your emergency fund and your retirement accounts on a regular basis, you can be well prepared and equipped to face the future. Consistency is vital to building a strong financial foundation.

Keep A Check (no not a cheque book):

Set up some time to review your financial goals and make adjustments accordingly. Sometimes we think we need a jacuzzi but what we really need is a trip to Mexico. Life changes so here comes your financial plan.

Savings Automation:

Technology has become smart where we can automatically transfer money to our emergency funds and retirement accounts. Automation can ensure that you’re consistently building your financial reserves and you do not forget.

Celebrate Good Times, Come On:

Celebrate all your accomplishments and achievements along the way. It could be big or small or it could be reaching a savings goal or hitting a wonderful milestone in your retirement savings. Positive partying keeps you motivated.

So there you have it Rakstars, your financial BFFs—Emma the Emergency Fund, Ronnie the Retirement Savings and Georgina the Goals—they are not just friends; they are the guidelines of your financial well-being. This squad will empower you to face the present with strength, secure the future with confidence all while chasing your dreams with a good purpose. Make sure you nurture these relationships back and make smart financial decisions. Let your squad lead you to a brighter and better financial future.

You got this, Rakstars!

: Photo by Cottonbro studio

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