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Jul 312017

What Is SAP?

By |July 31st, 2017|Blog|1 Comment

What Is SAP-

There you are scouring the internet in search of your next stock pick. You come across a stock by the name of SAP, and think it may be a good company to invest in. It’s been around for a long time and even has a consistent dividend payout. But what is SAP? What exactly do they do? And, are they worth your investment?

SAP History

SAP, stands for Systems, Applications, and Products in data processing. This comes from the original German name Systemanalyse und Programmentwicklung which shows the roots of this company even more.

SAP started in 1972 with 5 former IBM employees with the initiative to provide a standard application software for real-time data processing.

In those early years, the 5 worked long hours including many long nights and weekends in order to grow the company to what it is today.

SAP, hasn’t stayed stagnant instead whenever technology changes they change at the same time. In 1974 they converted their RF system from the DOS operating system to OS over an eight-week period. And continue to stay up with technology until today.

In 1988 SAP transformed from a private company to a publicly traded one. After the first year, they were named “company of the year” by Manager Magazine.

Who Is SAP For?

A look at SAP’s products page makes you think that anyone could use at least one thing from them. In reality, they mostly work with mid to large companies in need of software for things such as inventory, analytics, cloud services, and way more.

They also work with small companies if they are in need of any of the same services. They offer so many services odds are that if you run a business they have something that can help you run that business better.

Can You Start The Next SAP?

Have you considered starting a business? Maybe you already have but you want it to grow. Look at these 5 men who started a company over 40 years ago and where the business is now.

They worked long and hard and didn’t give up. They treated their customers like gold because they knew that they are the backbone of the business, without customers, there is no business.

A business we start may never get to the same size as SAP, but we can still take those lessons and apply them to our business. If we do we are as close to guaranteed a success as we can be.

Should I Buy SAP?

After reading about this great company the next question should be, do I want to own a part of it? The answer depends on your investing strategy and your risk tolerance.

The company has consistently continued to grow and shows no real signs of slowing. However, their dividend yield is rather low and only paid out once a year, so if you’re hoping to gain passive income off of this stock you won’t get much.

However, if you’re investing for the long-term than it may be a good option as your money will grow. And, when it’s time to sell you should have a nice profit depending on how long you allow it to grow.

Disease Called Debt

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Jul 262017

5 Ways to Invest Small Amounts of Money

By |July 26th, 2017|General Personal Finance|Comments Off on 5 Ways to Invest Small Amounts of Money

investing tips, investing small amounts of money, investing adviceOne of the most common misconceptions about the investing world is that you have to have thousands and thousands of dollar set aside to dedicate to put in your portfolio. That couldn’t be further from the truth, there are plenty of ways that you can invest with a small amount of money that you’ve got in your bank account.

Investing is one of the best ways to secure a comfortable future for yourself and your family. If you’ve never invested before, it can be a scary and overwhelming to start your portfolio, but it’s not as complicated as you may think.

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Jul 242017

What Is Amazon FBA?

By |July 24th, 2017|Blog|7 Comments

What Is Amazon FBA-Looking for a way to make extra money? One of the many ways people recommend is to sell on Amazon.
But, how do you do that exactly? Do you just list that you’re selling things and send everything to individuals? What is Amazon FBA? Is that the way I need to go?

What Is Amazon FBA?

Amazon FBA is Fulfilled By Amazon. Basically, it means that though you’re the one selling the item Amazon is fulfilling that order. They will ship the order to the customer, deal with any customer service issues, as well as hold your inventory in the interim.

Why Would You Want To Sell Amazon FBA

Amazon FBA sounds great, and it is, but keep a few things in mind. Amazon takes fees every time you sell something, and they take even more fees if they are the ones that are fulfilling the order. On top of that if your inventory sits in their warehouse too long they start charging you additional fees. So why would anyone want to sell Amazon FBA when you can make more money doing Merchant Fulfilled (where you ship to customers yourself)?

Well, if you are only going to sell a few things a month then you should do Merchant Fulfilled. But, if you’re going to be sending in hundreds of items monthly, do you want to store all of those things in your house, package each individually, send directly to every customer with your address on it?

Also, when a customer returns an item, it will come back to you instead and if you don’t have another to exchange it for then you are just out the money whereas Amazon may be able to keep the customer happy and not lose you money.

How Much Can You Make?

One of the big questions I get is “how much money can you make from selling Amazon FBA”, and the answer is it depends. With everything in life the more you put into it the more you get out. If you have only $100 to invest in inventory you may want to wait till you have more as the shipping fees will eat up a lot of your profit.

I recommend starting with no less than $500 worth of inventory and that you send in no less than that in. Also, make sure that you’re set to make at least 50% ROI or it’s not going to be worth it.

At first, it’s going to feel like you aren’t making any money at all, but after a while, you get the hang of things and you can make an extra $100 a month of an extra $10,000 it depends on the work and capital you put into it.

How Do You Get Started?

First, sign up to be an Amazon seller, then download the app and go to retail stores in your area looking for things to sell. It’s going to feel like a treasure hunt at first and you’ll be excited. If you find something worth buying you’ll feel great, if not you’ll become discouraged. Don’t worry, I’ve been doing this for nearly 2 years and there are days I come home with nothing too.

brokeGIRLrich

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Jul 192017

How to Confidently Trade the Financial Markets: The Novice’s Guide

By |July 19th, 2017|Stocks|Comments Off on How to Confidently Trade the Financial Markets: The Novice’s Guide

beginner stock market tips, investment tips, stock market tipsThe financial markets can be somewhat intimidating to a newbie. For starters, there are all those charts, graphs, changing numbers, signals, indicators, trends, analysis and endless data streams that pepper the trading arena. To a neophyte, this can be off-putting. Fortunately, the financial markets are designed for high levels of interaction for traders across the spectrum.

Whether you’re a newbie or a seasoned professional, the steps that you need to take to successfully trade financial instruments are essentially the same. Research, analysis, and decision-making are integral components of the trading process. The most important tip for all traders is the following: understand the macro economic variables that impact the price direction of your chosen asset.

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Jul 172017

What Is The Mega Backdoor Roth?

By |July 17th, 2017|Blog|Comments Off on What Is The Mega Backdoor Roth?

What Is The Mega Backdoor Roth-The perfect storm, everything has to be just right in order for a storm to be called that. Some financial programs are amazing if you qualify for them. They sound amazing, the tax breaks, the money you make on them, but there is so much that goes in to being able to take advantage of them. The mega backdoor Roth is one of those programs. The “perfect storm” of saving money.

What Is A Roth And A Backdoor Roth?

A Roth plan allows you to pay taxes on money then save that money for retirement. The reason it’s a good idea to have one is that when you retire and take the money out all the gains are tax-free.

Let’s look at an example, say you invest the maximum starting at 25 until you retire at age 65. When you’re done you’ll have invested $235,000 but have $1,201,741. And those gains would be tax-free, meaning you can spend them as you would like.

Now, some make too much to contribute to a Roth IRA and so they have to do what’s called a backdoor Roth. This is where you invest in a Traditional IRA (taxed) and convert it over to the Roth IRA.

What Is The Mega Backdoor Roth?

The tax law allows for a backdoor Roth conversion, but now they also allow for what’s called the mega backdoor Roth. Why is it called that? Well instead of being able to contribute $5,500 a year this will allow more, a lot more.

The maximum you can contribute for 2017 to after-tax differed accounts is $53,000. Meaning if you contribute the max to your 401K ($18,000) then you still have $35,000 allowed to be invested. That money can all be done through a Mega Backdoor Roth.

Who Has Access To The Mega Backdoor Roth?

Before you start trying to get this done, you should realize that very few people have access to this. You have to have the “perfect storm” of a financial situation. First, you have to be a high-income earner, so much so that you don’t qualify to invest in a Roth IRA without a backdoor conversion.

Second, your employer has to allow after-tax contributions. Most of the time they won’t understand that you aren’t asking about a Roth and that you want to make after-tax contributions to your traditional IRA so be very clear when speaking with them.

Third, you also have to be contributing the maximum allowed. If you aren’t already contributing the $18,000 a year, then focus on that first and if you have money left then you can start working on other types of investments.

How The Mega Backdoor Roth Works

Once you’ve met the requirements then you need to make your after-tax contribution to the traditional IRA. After that do an in-service transfer to your Roth IRA. That’s it you’re done.

Sounds Simple But Isn’t

The process of the Mega Backdoor Roth sounds very simple, but actually being able to do it is difficult. First saving $53,000 in a year isn’t easy, even if you’re a high-income earner. Second, as mentioned before many employers don’t allow it.

So yes this “perfect storm” can save you a ton of money, but only if you can actually get it.

brokeGIRLrich

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Jul 102017

52 Week Money Challenge

By |July 10th, 2017|Blog|1 Comment

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Saving money is at the top of the list for most everyone. But with all the bills that need to be paid, it can feel impossible to save anything even just a dollar. With the 52-week money challenge it can be easier than ever before.

Traditional 52 Week Money Challenge

The traditional challenge consists of you starting in January and saving $1 week one. The second week you save $2, third $3 and so on until the final week where you save $52. This works because it helps you start a saving habit, and do so slowly. We can all save a dollar, we could go outside and probably find a dollar if we look long enough so starting with that small amount seems easy.

As time goes on it gets more and more difficult, though only by another dollar so it doesn’t seem so bad. If you get behind and try to catch up that’s when the problems start and you feel overwhelmed and give up.

Modified 52 Week Money Challenge

A different way to go about it is the modified 52 week money challenge. Instead of having to save by $1 a week you save what you can every week. So, for instance, say week 1 you have an extra $40, then you put that in the savings and mark off week 40. Then week 2 you only have $5 to put in, that’s fine you simply cross off week 5.

Especially with the holidays near the end of the year, it makes sense for you to try to make the largest payments during the first part of the year rather than the last.

Where Does The Money Come From?

As was mentioned already finding a dollar is an easy task. However eventually you get to $52 in a week making it several hundred dollars in a month. Most of us feel if we had that kind of money to save we wouldn’t need a saving challenge like this.

The first thing to do is cut costs. Do you need that coffee? Do you need to go out to eat all the time? Do you need a new book instead of going to the library? These things are not wrong and in fact, I do them quite often (though the books is a huge weakness of mine) however if you’re trying to save a dollar one week skip one of them. If you’re trying to save $40 in a week then skip several until you’ve actually saved that amount of money.

Another way is to make more money. You can ask for a raise at work but that will only do so much. Instead, it’s better to start a side hustle to make that money. Even if you just drive for Lyft or Uber you can make that extra money. Starting a side hustle takes the sacrifice of time and energy. You will have less time to spend with friends and family and when you’re around them you will have less energy than normal. Expect it, but once you see the savings increasing it may all be worth it.

Disease Called Debt

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