What a 401K Can Do For You

Money

When you get a job straight out of college it is important to find the right mix of salary, benefits and experience to launch your career. And if you can find a company with a 401K plan, that is even better. You want to make sure that your employer will match your 401K contribution and you want to max out your contribution in order to get to that match. Get as much money from the company as you can. That is free money. You can’t do better than free money.

When you take the match from your 401K, you are growing the base of the account that is going to grow and grow and grow and provide you with real money in your golden years. And when you get enough money in your 401K, you can start trading it on your own. As long as you roll it into your own IRA style account. Or even if you want, you can trade your own stocks in the 401K that you own. You just might lose the match.

So you have to make your own decisions about how you want to manage your 401K. You can take the passive investor approach, where you let your company’s 401K plan administrator manage all the money. And you check it quarterly. Or you can take a more active approach and go on your own.

But the most lucrative and smart approach may be to create your own brokerage account on the side and start day trading. That way you keep your day job, contribute to a 401K and learn how to day trade on the side. If you put in a lot of effort and learn the right strategies and techniques, you can become a profitable day trader. You just have to take the online classes and stuff your head full of the terminology. It is helpful to be able to spend a lot of time in front of screens, learning the trends and patterns.

Day traders are hunters of volatility. You are always on the lookout for more stocks making big moves throughout the day. You need to have the right plan to be able to take advantage of these opportunities. The best way to do that is to learn risk management. Have a plan for each and every trade that you make and make sure that you have a stop-loss on each trade. So that if a trade goes south, you have a built in mechanism to sell the shares before you lose a lot.

The best way to get good is to start paper trading. That means practicing in a simulated trading environment where you are trading virtual currency. That gives you a chance to learn on the job without risking your real money. You can practice trading and learn risk management in a simulator that trades at the speed of the regular market. It is invaluable experience.

So that is your choice. Take the passive approach, get a good job and keep giving to your 401K. Or do that, and get yourself a day trading gig on the side.

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Net Worth: Why You Should Track it closely for Financial Success

Home Business Wiz

A person’s net worth is the ultimate determinant of their sum wealth. The net worth is the result of deducting liabilities from the assets. Calculating the net worth gives one a clear picture of the total cost and earned and spent in a lifetime. Tracking the net worth helps one keep their goals and perspective in check. For example, if a person’s total amount of assets amounts to $200,000 and liabilities equals $300,000, the individual will have a negative net worth of -$100,000. It is crucial to establish the financial status of a person or an enterprise so as not to accrue a deluded sense of net worth and fail to achieve success.

Reasons why it is imperative to track the net worth 

1. Considering that net worth is the honest reflection of a person’s wealth, it is a perfect way to determine if one is making positive or negative financial progress. Bob Berger of Forbes.com, states that a constant or increasing net worth is a sign that investments are bringing positive returns. A declining net worth means that one should deduce which activity is draining the money and work towards adjusting the situation.

2. A clear picture of the net worth eliminates the notion that income is equal to one’s wealth status. A person earning $500,000 per year with liabilities amounting to $200,000 in a year is worth $300,000. The same result applies to an individual making $350,000 with liabilities amounting to $ 50,000 annually. With this concept in mind, it is easier for one to plan the steps towards realizing financial success by reducing liabilities to increase the net worth. Besides, considering the assets only when establishing net value, such as a home or a successful investment, is a misguided way to achieve success. The difference between the property and the liabilities like debt determines the exact net worth.

3. When applying for a loan, most banks and lending firms will evaluate the borrower’s sum net worth to determine credibility. A bad credit loan automatically disqualifies one from receiving the cash. Keeping a positive net worth helps one acquire a higher credit limit that can be helpful in expanding one’s investments and ultimately reach goals.

4. A good net worth is essential in keeping the debt status in perspective. A significant amount of loan offsets a lot of people. However, if one’s net value exceed the amount, then it is clear that the debt level is not extreme. A loan that exceeds the net worth means that one should probably cut down on the amount borrowed and live within affordable ways to amass wealth. A low net value to loan ratio is also a great motivation for one to find means to realize a higher rate that translates to increased prosperity.

According to Investopedia.com, the net worth is bound to experience fluctuations just like the financial health of any other industry. As a result, the net worth will reflect the status of the financial health of the various assets and liabilities. It can be difficult to establish one’s long term goals and short term goals without a clear picture of the money owed and money earned. Determining the ultimate net worth with the help of a financial analyst, or a convenient net worth determining software application will save one the stress that comes from tapping into savings and investments, and accumulating unwarranted debt.

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How to Succeed as a Business Entrepreneur – 6 Top Ways

Entrepreneurship

Having taken the primary and most important step, which was to set the wheels of your business project into motion, the next step would be to discover new ways to make it grow and prosper successfully. 

It is important to realize that you need to dedicate your heart and soul to the initiative for it to receive a great number of responses.

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The most important thought you would need to inculcate is that this would be a result of all the hard work, the creativity and the love that you put in to bring the project to life. So be ready to breathe it, eat it, dream it and live it!

Make it a point to read some quotes every day. Motivational quotes have the power to influence your mindset and allow you to function effectively!

Here are six important pointers to help you become a successful business entrepreneur!

  • Become more vocal

It is imperative that you break out from that shell of yours and become more social. No better time than now to begin engaging with others who are in the same place as you. The best form of help is self-help.

So let’s start there. Make it a point to get to know different people, and tell them about your new project. Speak freely and with confidence. Make it an engaging conversation. Allow them to pass criticism and pick it up from there. When they see the fire and passion in your voice, they will begin to take you more seriously

  • Marketing Online

Another way to spread the word effectively is talk about on the internet. Create a website that elaborately depicts your project in an intricate, catchy yet professional way. Outline your project details effectively and highlight the essentials. Spread the word by sharing the website page on your social media accounts.

You could use your friends’ and family’s help by asking them to do the same as well. Build a strong front by exploring various such upcoming start-ups and mutually help each other to grow together.

  • Lend a Helping Hand

Remember that there are probably many out there like you trying to come up with their own business ideas, and so it’s much easier when you engage with such people. Don’t hesitate to offer them help and let them know when you come across new, innovative ways to sell your project. This will always come in handy because this way you get to learn so much and have a diverse exposure to all kinds of people and projects.

Also, when you lead a helping hand, you can be sure to receive the same when you need it!

  • Good Strategy and Testing

Come up with a good enough strategy to outline your project, beginning from the initial to final steps of development of the project, making sure you’ve kept in mind all the little details. It must be a fool-proof strategy, and you must be able to work out any shortcomings. Investing into franchises is a great way not to only make money but to start a business in the future.

The final step before delivering the product to the public would be to test it amongst close friends who would appreciate and criticize you at the same time. Absorb the good and work on the negatives.

  • Come Up With Good Customer Service

This is the next big thing which would help your business grow! Put in place a team which dedicates itself to satisfy the needs of your customers. This is highly necessary if you want good reviews and expansion of your business. This will go a long way to getting contacts as well.

  • Believe In Yourself

This is the first and last thing on your mind when you work on your project every day. Trust yourself to make right choices and stand by it. It all works out for the best when you believe in yourself and in your dreams.

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