As manager of Scion Capital hedge fund, Burry applied his expertise in value investing to generate extraordinary returns for investors. In less than a decade, Scion recorded aggregate returns of 489.34% net of fees and expenses.

When the housing bubble imploded, Burry’s contrarian bets on credit default swaps paid off so well that he was featured in The Big Short, a movie inspired by a Michael Lewis book. It featured stories of the economic crisis through the lens of a few investors who bet against the housing bubble.

At the end of the movie, viewers got a hint of where Burry was turning his attention to next. The final line of the movie was emblazoned with his bold next investment:

“Michael Burry is focusing all of his trading on one commodity: Water” – The Big Short

If an investor with proven returns who, like Warren Buffett, is a student of Benjamin Graham and David Dodd’s famous book, Security Analysis, is focusing on investing in water, then maybe you should consider it too?

Why Invest In Water

Although investors typically think of gold and silver as precious resources before water springs to mind, the reality is water is so valuable that it has even led to serious conflicts.

The list of conflicts relating to water include:

• Nearly 3 million people left without access to reliable water supplies in Ukraine
• Clashes in Darfur between farmers and herders over water access
• Attack on Islamic State forces controlling the Tabqa dam

And water related illnesses are responsible for approximately 80% of all illnesses and deaths in the developing world.

In fact, over 2 billion people lack access to adequate sanitation according to the United Nations.

Sewage and waste are causes of water pollution that leads to disease but another huge factor is limited fresh water on earth. While it’s easy to think of the earth as having a plentiful supply of water – after all 71% of the earth is covered in water – the reality is fresh water makes up only 0.76% of all water.

“Fresh, clean water cannot be taken for granted. And it is not — water is political, and litigious” – Michael Burry

And as any value investor worth his or her salt knows: where demand is high and supply is limited, prices rise.

In this case, the demand comes from an ever growing population of humans on earth who demand more of the earth’s limited freshwater resources.

How To Invest In Water

Perhaps the simplest way to invest in water is to invest in exchange-traded funds, though stocks, farmland and water rights are other investment possibilities

INVEST IN WATER-RELATED ETFs

A leading water-related ETF is the Guggenheim S&P Global Water Index ETF [NYSE: CGW].

The fund has the goal to invest in companies spanning the water sector with a view to benefiting from the development of new infrastructure that is designed to ensure efficient delivery and quality of water.

The idea behind the fund is to also to access opportunities arising from population growth, consumption, and climate, as well as to benefit from global demand for water.

Like any exchange-traded fund, it does have an ongoing expense ratio, and it’s a little hefty at 0.64%, which is quite a bit higher than many of the best Vanguard funds.

One of the reasons why the ongoing expense ratio is higher than say the expense ratio of an S&P 500 fund is that the fund invests in global companies as opposed to U.S. companies only.

Some of the top holdings in the fund include:

• American Water Works Co Inc.
• Danaher Corp
• Xylem Inc/NY
• Pentair PLC
• Veolia Environment SA
• Geberit AG
• Idex Corp
• Suez
• United Utilities Group PLC
• Severn Trent PLC

Another way to invest in water is via the S&P Global Water Index [CWW], which also tracks companies around the world that are related to the water business.

To create diversified exposure to the global water market, the 50 companies featured are divided equally across two main groups:

1. Water utilities & infrastructure
2. Water equipment & materials

Utilities and infrastructure companies include areas such as water supply, waste water treatment, sewer and pipeline construction, water purification, water utilities, water testing, and water well drilling.

Equipment and materials companies focus on areas such as water treatment appliances, plumbing equipment, water treatment chemicals, counting devices, fluid power pumps and motors, pumps and pumping equipment.

>> Want To Invest In Water ETFs? Select The Best Brokers For ETF Trading

INVEST IN WATER RIGHTS

Investors purchase water rights, which give them the right to use water from a source such as a river or lake.

As an investor, you can rent out the water right to farmers, municipalities, or even corporations.

The problem with water rights is much like the problem with a non-dividend paying asset, such as gold. And that is, the way to make money is for someone else to pay more than the investor.

However, some investors believe so much in the idea of water-related investments that they exclusively focus on water rights. Aqua Capital Management, for example, is a water rights and investment management company that accumulates water rights in water-scarce regions across the globe.

As water scarcity and droughts increasingly become challenges for arid regions like California and Nevada, some local governments have come up with innovative solutions to recycle water. For example, Las Vegas recycles close to 100% of its indoor water.

INVEST IN FARMLAND

As appealing as water rights may be to some investors, they don’t attract Michael Burry as much as farmland.

A PBS segment ran a piece about how Michael Burry is investing in farmland. Now, this type of investment isn’t for everyone but seeing how Burry is allocating his money is instructive in understanding how value investors think about making money over the long-term.

When Burry was interviewed by New York magazine about his water investment thesis, he stated that:

“Transporting water is impractical for both political and physical reasons, so buying up water rights did not make a lot of sense to me. What became clear to me is that food is the way to invest in water” – Michael Burry

According to the segment, Burry is investing in almond farms. Why on earth is he investing in almond farms you might ask?

Well, it turns out that growing almonds requires lots of water and when water shortages take place farmers will sometimes walk away which results in even less supply of almond growers, and therefore almonds.

The almond growers who remain in business can increase their prices and profit as a result.

Another popular yet water-intensive good is wine. Studies show that 872 gallons of water is needed to produce 1 pound of wine.

The water footprint for popularly consumed items, includes:

Source: Huffington Post

When hedge funds start buying almond and walnut farms because of the high margins, you know they believe in the long-term supply-demand imbalance investment thesis.

INVEST IN STOCKS

Another way to invest directly in water-related projects is to bet on individual stocks. Historically, when industries are fragmented they are ripe for disruption and the opportunity for a roll-up play that aggregates many players becomes lucrative.

For example, American Water Works Company (NYSE: AWK) is a holding company that provides water and waste services to public utilities in 16 states.

Aqua America (NYSE: WTR) is another company that has consolidated its grip on wastewater services by acquiring over 300 companies between 1993 and 2013.

No shortage of competitors exist in the water space, such as York Water (NYSE: YORW) which impounds and purifies water to meet or exceed safe drinking water standards.

A slightly larger company is American States Water (NYSE: AWR) which is the parent company of a handful of utility operators that engage in the purchase, production, distribution, and sale of water.

If the prospect of researching water companies in an online brokerage, such as thinkorswim or tastyworks, seems daunting then the Guggenheim ETF may be a better bet. However, the cost of buying the stocks will be limited to trading commissions costs whereas the ETF will incur an ongoing annual expense ratio.

Michael Burry Water Investments

A key takeaway from Bloomberg’s interview with Michael Burry is that investing in water or farmland is smart in special situations. Not every piece of farmland or every water rights venture will pay off or even pay dividends, but where limited supply meets increasing demand, prices will likely rise over time.

For the hands-off investor not sure where to begin, the best place is generally via an exchange-traded fund that has a lower risk yet lower reward payoff because it is diversified compared to buying shares in a specific company that may have higher upside potential and higher downside risk.

Riskier than stocks are water-rich farmland and water rights opportunities, which may have the greatest upside but equally are the least liquid investment opportunities, so they are probably best for the most sophisticated and experienced of investors – which is why Michael Burry is investing in farmland directly – though shunning water rights!

>> Check Out The Best Online Brokers For ETF Trading

>> Why You Should Not Put All Your Eggs In One Basket

>> What Are The Best Value Stocks?

The article Why Is Michael Burry Investing In Water? was originally posted on Investormint

Investing in the stock market is easy in theory: simply buy-and-hold for the long term and bet on the US economy. So says Warren Buffett.

In practice, it’s so much harder. The fastest decline in stock market history was recorded in the first quarter of 2020 following the outbreak of COVID-19.

For investors to stay the course while watching portfolios crash ever deeper into the red is no mean feat. Here are stock investing tips to help you prepare for stormy days and prosper long-term.

Stock Investing Tip #1: Prepare For Stormy Days

As stock markets hit higher highs, you can feel like the winner at Casino Royale cashing in your chips. And at market lows, the stock market can make you feel like you got duped in game of three card monte.

The challenge is to ride out the storms and anticipate them when the sun is shining. Not everyone can generate market-beating returns for half a century like Warren Buffett did, but at the very least you should be able to earn returns in line with the stock market – a feat most investors fall short in achieving.

So, how can you succeed where most investor fail?

Begin by preparing for those stormy days that inevitably lie ahead. That means creating a disciplined investing plan that you stick to no matter where share prices move.

The tried and trusted method of investing is to dollar cost average into the an index like the S&P 500 over time. 

Rather than time the stock market highs or lows, invest a steady amount each and every month year after year. That has proven to be the the best investing tip to create wealth over the long term.

You won’t buy the bottom or sell the top using this method, but equally you won’t miss out on huge gains by attempting to time the market.

Stock Investing Tip #2: Avoid Panic Selling

Human minds are a powerful thing, but they sure do have a habit of sabotaging us from time to time thanks to cognitive biases.

Prospect Theory is a Nobel prize-winning theory that explains how we humans hate to lose more than we enjoy winning.

When stocks fall, it hurts us more to lose money than it gives us pleasure when they rise and we make money. As stocks fall further, the pain of loss grows and it is easy to hit the panic button and sell – because it eliminates the pain of further losses.

It is especially easy to panic and submit a sell order with your broker when the money you are trading is money you need to live on or expect to use to pay bills in the near future. But what if you didn’t need that money? Would it be easier to ride out a stock market storm until sunny days returned?

But What If The Stock Market Crashes?

Successful investors have seen the ups and downs of the stock market, so even a stock market crash tends not to phase them a whole lot.

In fact, they often pounce on stock market declines as opportunities to buy value stocks. They have the luxury of knowing they don’t need to sell stocks to pay the bills. So how do you avoid the pitfall of panic selling like rich investors?

Define clearly what money is needed to cover your expenses, including an emergency fund, and provide a cushion room for day-to-day living costs in case you lose your primary income stream.

Label your money and bucket it into categories. Once you know how much you need to pay for current and future bills, add a cash savings buffer which will give you peace of mind knowing you can dip into it if you lose a job, and then ask yourself whether any of that money is invested in the stock market.

>> More: 21 Legendary Investing Quotes

Any money that is assigned to cover bills, tuition expenses, day-to-day costs and other living expenses should probably not be invested in a concentrated portfolio of equities.

If you are retired and enjoying dividends or yield from bond investments that’s another story. But if you have money you need soon tied up in a portfolio of risky investments, then take a step back and think realistically instead of optimistically.

Optimistically you might believe you have the intestinal fortitude to handle a stock market crash, but Prospect Theory predicts you might hurt more than you think, which means you might get trigger happy and sell the dips precisely when stocks are on sale.

Rich investors are like predatory bears upstream just waiting for you to swim by and eat you for lunch, or at least your assets. They will be happy to take your money from you by buying the shares you may be selling at bargain basement prices.

By bucketing your money into different categories, you will avoid the temptation to over-commit to investments. Instead, allocate only what you can afford to lose to your brokerage account.

At the very least, sum up your total liquid assets to get a handle on the size of your pie and then consider how much you need to allocate to:

• Mortgage or rent costs
• Grocery and food costs
• Entertainment and vacations
• Utilities and cable costs
• Emergency fund
• Auto and fuel costs
• Insurance costs
• Investments

The last item on the list is investments because it is imperative that you cover the necessities first: food, housing, auto, and insurance.

Stock Investing Tip #3: Buy Intrinsic Value

Are you a professional investor or a speculator? Do you really know what your buying? The answer to those questions is at the heart of understanding intrinsic value.

Share prices are quoted so widely that investors often use them to make buy and sell decisions. But what information do share prices really convey?

Prices are quoted on financial news networks daily and spotlighted when earnings soar or plunge so it’s easy to be distracted by them.

When you log in to your brokerage account, share prices are listed in your stock watchlist. And when takeovers occur, it is often the skyrocketing share price of the acquired company that grabs headlines.

A share price doesn’t convey the true value of a company. Nor does it offer you any insight into where the company is headed. From a share price you can’t discern whether competitors are sneaking up on the company and about to steal its market share.

>> Related: How To Research Stocks

Technical analysts and chartists may find value in analyzing share prices by comparing price levels to support and resistance, moving averages, and overlaying chart studies, such as MACD and RSI indicators. But if you are not an avid trader tied to your desk daily watching every tick what should you do?

Focus On Intrinsic Value

Where share prices are highly visible, intrinsic values are virtually invisible to most casual investors. Hedge funds, institutional investors, and Wall Street analysts pay a lot of attention to intrinsic values because they convey much more information about where a stock price may be headed than do share prices themselves.

Think of share price as the moth and intrinsic value as the flame. In the darkness, the moth may fly up and down, circle around and back, weave left and right but when it sees the flame it naturally is attracted to it.

Similarly, share prices may undulate from one moment to the next and from one week to another with a seemingly random pattern, but a force attracts them, called intrinsic value.

When you examine share prices over time, it may seem to defy logic why some companies stay still while others march higher.

But the mystery can be solved easily.

Companies with increasing intrinsic values generally enjoy rising share prices over time. Risk of corporate governance issues or other outlier events is always a risk but for the most part, share prices track intrinsic value over the long term.

Intrinsic value is also known as fair value, and it can be calculated using a discounted cash flow forecast. Here is the fair value for Alphabet Inc. or Google as it used to be known.

So, the key stock investing tip when you are making buy and sell decisions is to focus on intrinsic value much more so than share price. By doing so, you can make more informed decisions.

After all, if you know a company has an intrinsic value much higher than what its share price reflects then you will be less likely to view it in a negative light and offload it when it may be on sale.

Plus, you will be more likely to make a rational decision about where it is headed over the long term.

Stock Investing Tip #4: Track Your Financial Goals

Can a sports athlete help you think about investing better? Perhaps…

Over a 5 year period, mixed-martial arts fighter, Conor McGregor, went from paying his bills from social welfare income to making hundreds of millions of dollars.

But how did he do it?

Talent is only part of the answer. McGregor says the reason he became so successful is his greater work ethic compared to that of fellow combatants.

He explained how his philosophy of hard work extended beyond physical sessions in the gym. After each sparring session and each wrestling or jiu-jitsu clinic, he took copious notes about what he did right and wrong, and how he could improve.

From his reflections, he learned to improve so that he could move closer to his goals.

Successful stock market investing requires this level of introspection too in order to prosper and meet your financial goals.

What investments made money and which trades lost? Did you buy too much all at once because you got greedy?

If so, what rule can you put in place to lower your initial risk? Perhaps you can buy via dollar cost averaging instead of all at once.

Did you panic and sell when prices dipped only to see them recover to higher highs? Determine the reason behind each purchase and sale order.

Maybe you had too much on the line, and couldn’t stand the pain of losing more. Should you consider hedging your stock portfolio with married puts to limit risk? Would that give you more peace of mind?

If you have a regular stock brokerage account and don’t understand options trading, maybe the investing lesson to learn is how to trade options. Perhaps you could consider opening a demo account on an options trading platform, such as thinkorswim, so you can begin practicing.

By tracking your performance, measuring the results, reporting your gains and losses monthly and documenting the investing lessons learned, you will be on the path to iteratively improving so you can better achieve your financial goals.

Stock Investing Tip #5: Focus On Financial Metrics

Sometimes the 10,000 foot view of how you spend your time can be eye-opening when it comes to building wealth.

For example, consider how many hours you worked to build up your nest-egg.

Now think about how many hours you dedicate to choosing investments for your hard-earned dollars.

If you’re like most people, the time you spent building your savings can be counted in years and decades while the time taken to allocate your money can be counted in minutes or hours.

But common sense says you should be diligent about researching how you invest your money.

To understand what you are investing in, start with the financial metrics. You don’t need to open up a spreadsheet and get too crazy, but at the very least take a look at some important numbers.

In the stock chart below, you get to see the historical revenues for Amazon.com. Revenues are helpful in giving you the 10,000 foot view of where a stock has been, but it doesn’t offer any insight as to where it may be headed.

To know where a stock could be headed next, future earnings growth expectations can be used to place a stake in the ground. When earnings are growing rapidly, share prices generally move higher over time.

A quick glance at the balance sheet will tell you whether your company, like Amazon, is debt free or has a high debt to capital ratio. Companies with high debt levels may suffer more during high interest rate environments.

After viewing some of the basic financial metrics on the balance sheet and income statements, glance at share price history to see how volatile it has been historically.

Even a solid company may not be appropriate for your risk profile if it has a history of wild swings up and down.

Above all, what you want to glean from your research is the fair value of the company.

Share price tells you what price you will buy or sell, but fair value is much more insightful – it can offer insight into where a stock may be headed next.

Stock Investing Tip #6: Manage Risk

It is with good reason that Warren Buffett has described the first rule of investing as not losing money and the second rule is to not forget the first rule.

Lose just 10% of your portfolio and you need to make an 11% gain to get back to breakeven. Lose 50% of your portfolio and you need to generate a 100% return to get back on an even keel.

The percentage you need to gain after losing money is always larger than the percentage you lose to get back to where you began because, after a loss, you have less money to play with.

This focus on risk is contrary to our human nature. Our tendency is to keep our eyes on the prize. But earnings handsome returns come at the cost of ever higher risks.

When an investor gleefully claims to have generated a 100% return, the real question is how much risk was taken to achieve the high return?

Professionals focus on risk-adjusted returns with good reason. Generating high returns is not the biggest challenge to overcome but generating high risk-adjusted returns, that’s a whole other ballgame.

At an extreme, you can think about a lottery win. The return is enormous if you win, but what is the risk?

The probability of failure is nearly 100%, so while the reward is alluring it is highly improbable.

In the stock market, focus on your risk-adjusted return more so than your absolute return, and you will be one step ahead of much of your competition.

What stock investing tips have you learned? Share your investing stories with us in the comments below. We would love to hear from you.

>> Is Facebook Stock A Buy Or A Sell?

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>> What Are The Best Penny Stock Brokers?

The article 6 Stock Investing Tips was originally posted on Investormint

Among the most common home rental scams is when a fraudster attempts to lease a property to you despite having no legal right to do so. The scammer will frequently demand a security deposit and the first month’s payment. After you fork over your hard-earning savings, they abscond with your money never to be seen again.

Another brazen tactic is to meet with prospective tenants at the home location and then claim to have forgotten the keys but demand payment without giving you the chance to view the property.

Many other apartment rental scams exist so the question is how do you avoid them before your pockets are picked for thousands of dollars?

How To Avoid Rental Scams:
Know Market Rates

In cities like New York and San Francisco, rental rates are famously high. A common way to deceive the public is to list a property just below the market rate in order to attract a lot of viewers. For the fraudster who plays a numbers game, the goal is to cast a wide net and hope to catch a victim among the many interested parties.

If the average rental cost for a 1-bedroom apartment is $3,500 in a high-priced city and the renter spots a 1-bed listing with all the amenities desired for $700, the renter will probably be suspicious that the price is too low and conclude something is not right.

But if the listing is priced just below the market price, at say $2,800, they might be more inclined to believe that they found a deal. Sophisticated scam artists know that pricing rental homes below the market price but not too low attracts a lot of interest, and then they pounce on unsuspecting victims.

To avoid becoming the victim of one of the craigslist rental scams, Zillow rental scams, or Trulia rental scams, check out local market rates so you can more easily spot when prices seem to good to be true.

Avoiding Common Rental Scams:
Pay By Check

Cash is a criminal’s best friend. It is easy to hand over and cannot be tracked. Unlike regular checks or even wires that require personally identifying information, which could allow police to quickly locate a criminal, cash is virtually untraceable.

In the old days, cash was the most common and prefered payment method demanded by tricksters but these days cryptocurrencies may be requested, whether bitcoin, litecoin or ethereum.

If your landlord demands cash or cryptocurrencies as payment for a security deposit or first month’s rent, red flags should immediately pop up in your mind, warning that the supposed “landlord” could in fact be a cheater.

It is much better to pay by cash, cashier’s check, or even consider ACH or wire transfers that can be more easily traced.

Even payment methods like Western Union are usually best to avoid because it can be difficult to track down the recipient of your money once it has been sent.

Housing Rental Scams:
Get Your Lease In Writing

In the good old days, a handshake was sufficient to consummate a deal. Warren Buffett famously agreed to buy ‘Mrs. B.’ Rose Blumkin’s Nebraska Furniture Mart with a shake of the hands. But these days, while you can still trust the person purporting to be your new landlord, you should still verify they are who they claim to be.

Not only should you demand a written lease but you should also request an executed lease document, meaning the contract is signed by your landlord. A common tactic among imposters is to attempt to make an oral agreement over the phone and quickly demand payment.

Even if the person you are speaking with is a legitimate landlord, you should still request an executed copy of the lease agreement so that you don’t run the risk of the landlord making you sign but refusing to do so themselves.

A landlord who fails to sign may subsequently deny responsibility for claims that arise. For example, if you were to discover carcinogenic materials on site that should have been removed or leaks that are the responsibility of the landlord to repair, you may end up footing the bill yourself if the landlord claims to never have signed the original lease.

Ideally, visit with the landlord in their office premises and, at the time of signing, make sure you both put pen to paper during the meeting so you can both walk away with a copy of the signed lease agreement.

House Rental Scams:
Hire A Licensed Agent

Scammers may be daring enough to post a fraudulent listing on a free site, such as Craigslist, but few have the gall to list a property with a licensed real estate agent.

It requires much more effort and increases the risk of being caught to reveal personally identifying information to a professional agent, so your chances of being duped diminish significantly when you rent from a licensed agent.

But before you get too gung-ho on renting from a licensed real estate agent, factor the costs of paying an intermediary into your budget. Go ahead and run the estimates through a personal finance budget tool like Personal Capital, Mint or YNAB before hiring an agent. If the numbers check out and you know you will have greater peace of mind, you are almost set to go.

The last step is to verify the credentials of the real estate agent. Scammers know that risk-averse renters will look to hire professionals to lower the chances of being duped and often pose as licensed agents to establish trust with their unsuspecting victims.

Regardless of which state you live in, your real estate agent will be registered with the state so you can quickly double check that they are who they claim to be.

How To Avoid
Craigslist Rental Scams

Craigslist rental scams are among the most common because the site is popular, free, and makes it easy to post listings.

Perhaps the biggest scam perpetrated on free sites like Craigslist is to demand payment sight-unseen.

The listing you view online may feature photos of a legitimate listing from another location. Often, the same scammer will post multiple listings featuring different addresses using identical photos. And in each case, they will demand immediate payment to secure your place.

To avoid Craigslist house rental scams like this one, inspect the unit you plan to rent and never send personally identifying information or payment upfront until you have confirmed the landlord is legitimate.

Rental scams on Craigslist often involve high-pressure sales tactics too. While competition for housing is intense in high-priced cities, be wary of a landlord who puts excessive pressure on you to commit to an agreement and make a payment sight-unseen.

How to Avoid Airbnb Rental Scams

Most people know Airbnb as a vacation rental site, not a site where they’d find long-term rentals. But Airbnb rental scams occur through listings on rental sites like Apartments.com and Facebook Marketplace.

You’ll see a listing that is about 10% below the market rate of other listings you’ve looked at, including extras like utilities and parking. It may also allow pets.

How The Scam Works

1. When you contact the owner, they will tell you that they live in another country, and originally bought the apartment or home for their child who was studying at university there. Now, however, that child has moved back home, so they’re looking to rent the unit. Furthermore, they’ve listed it below the market price because they care less about making money and more about making sure the unit is being lived in and cared for.
2. The scammer usually only asks for basic information such as your name, contact information, number of people who will be staying in the rental, and your desired length of stay.
3. After you reply, they will remind you that they live out of the country, so they will arrange the rental through Airbnb. However, remember that you didn’t find their listing on Airbnb, which is the typical way that Airbnb operates. Instead, the scammer says that they will arrange everything through Airbnb:
4. They will start the process through Airbnb, giving your information, and then Airbnb agents will show you the rental. Before they do that, though, they claims those Airbnb agents will need the security fee (typically a deposit of one-month’s rent) from you.

Once you pay that fee, you won’t hear back from the scammer or that “Airbnb agent,” and you won’t have a rental.

To avoid this Airbnb rental scam (and others like it), be wary of renters who direct you to Airbnb as a rental platform, especially if that rental is not listed on Airbnb.

If you plan to rent a vacation home from a landlord on Airbnb, conduct the entire transaction, from start to finish, through Airbnb.

As a security measure, if you do get contacted in this way, you can contact Airbnb directly. You can also google the name of the person who contacts you, along with the word “scam,” to check their authenticity.

>> Is Airbnb Worth It?

Avoid Room Rental Scams:
Meet Current Tenants

While posting fake listings is common among cheats, you can lower your chances of being duped by meeting with current tenants.

Ask them how long they have lived in the property and how fairly they have been treated by the landlord.

Beyond verifying the integrity of the listing, you can also use this opportunity to enquire about any issues with the property, such as damp or mold, leaky faucets, infestations, unreliable electricity, cable or WiFi.

If the current tenants are moving out because of property issues, the chances of getting a solo meeting without the landlord present is low, but you could ask the tenants for their numbers before leaving to ensure a private conversation is possible at a later stage.

How To Spot Rental Scams

Legitimate landlords generally conduct extensive research on prospective tenants. An undesirable tenant can become a pain not only to the landlord but also to neighbors, so it is in the landlord’s interests to screen tenants carefully.

Usually this means conducting a background check to see what prior rental record and even criminal record exists. Your landlord may even charge a fee to conduct due diligence on you before issuing you a lease.

When a landlord is overly eager to get you to sign a lease without conducting any due diligence on your background, watch out!

It is not necessarily evidence that you are being scammed but it should cause you to question whether the person claiming to be the landlord is the real owner or a licensed agent.

Signs Of Rental Scams

A telltale sign that you may be the mark for a rental scam is when the person pretending to be the landlord signs the lease agreement with a name that doesn’t match official records.

In general, either the property owner or authorized agent needs to be listed on the lease agreement so if you have done your homework beforehand and find neither name on the document presented to you, it is best not to sign.

If you don’t see the owner’s name featured, the agreement may be perfectly legitimate. In certain states, the owner does not always need to be listed on the agreement but their representative, who is a management agent should generally be named then.

Foreclosure Rental Scams

Another less common but equally dangerous trap scammers lay for prospective renters is the foreclosure rental scam.

The way it works is that an imposter claiming to be a landlord invites renters to a property that had previously been foreclosed upon.

Sometimes the criminal will go so far as to change the locks on the vacant building. The victim is shown the property and has no reason to believe anything other than that the criminal is the official landlord – after all, they have the keys to the building!

After sending payment for a security deposit and first month’s rent, the criminal disappears into the night leaving the renter thousands of dollars short and egg on their face for having fallen for one of the most sophisticated scams.

Rental Scams Summary

Rental scams commonly begin when a criminal impersonates a landlord with a view to asking prospective renters to pay money upfront for a property they have no authority to lease.

To lower the risk of falling victim to a home rental scam, conduct as much due diligence on the person purporting to be the landlord, who may be listed officially as the property owner or a licensed agent on official websites.

Where possible, connect with current tenants and avoid signing any documentation until your landlord also executes the lease agreement.

If you do feel like you have been the victim of a rental scam, contact your local police department and report the incident. You will be required to fill out a report so make sure to record as much information as possible.

>> Build Your Credit Paying Rent with RentTrack

>> Get Your FICO® Score

>> Why Was My Credit Card Declined?

The article How To Avoid Rental Scams [Shocking Airbnb Scam!] was originally posted on Investormint

Many people dream of early retirement, but few know how to reach that goal. In fact, a surprising percentage of Americans over 50 don’t have nearly enough money to retire within 15 years.

There is no magic to figuring out how you can retire early but it will require you to commit financially to your vision to more freedom and relaxation.

In fact, the reason most people struggle to retire quickly is that they don’t have a plan or clear steps to retire by a certain date.

By following the early retirement strategies outlined below, you can plan for early retirement and enjoy the flexibility to kick back with your slippers on or explore the world as you wish.

So, what are the best ways to retire early?

Step 1: Define Your
Retirement Vision

The most important step is to define your retirement vision. It’s also the easiest one to gloss over but do so at your peril.

For some, retirement means lazy mornings with a cup of coffee reading the paper. For others, it means whisking off to Nepal to climb Mount Everest.

If you are looking to retire early and travel extensively in your golden years, the cost of retirement will be significantly higher than if you were content to stay close to home.

Once you have a general idea about how you plan to spend your retirements years you can create your retirement vision, such as: I want to retire in 10 years.

Or if you are in your twenties, and purchased cryptocurrencies, like Ethereum or Litecoin, in the early days on and sold them when they spiked higher, your vision might be about how to retire at 35.

No matter what age you are, your retirement vision will influence your next retirement steps, which begin by creating a retirement budget.

Step 2:
Create A Retirement Budget

No matter how much money you have saved up in your nest-egg, retiring early is a pipe dream if you spend too liberally.

Even world famous actors like Nicholas Cage, who amassed a career fortune reputed to be over $100 million, ran into financial difficulties by spending too much.

Athletes like Mike Tyson also earned and lost millions of dollars by not controlling expenses carefully.

So, it doesn’t really matter how much money you have saved if you fritter it away, which is why the next most important step is to create a retirement budget.

Estimate How Much Money You Need

Early retirement requires a lot of financial planning. Before you can start setting your goals, you need to know how much money it takes to retire.

The specific amount of money that you will need depends on several factors, including your lifestyle and health. Most people assume that they need at least $1 million to retire at age 67. Since you plan to retire early, though, you will probably need more than $1 million to pay for basic needs like:

• Housing
• Healthcare
• Food
• Utilities

Plus, you want to enjoy your retirement, so you will need enough cash to take vacations and pursue hobbies.

Calculate How Much You Spend

If you don’t have a good handle on where your money goes, check out the Personal Capital mobile app, which is free and syncs to your bank accounts automatically.

It will show you how much you spend and in what categories, whether food, utilities, insurance, debt, travel, rent, mortgage, gifts, and so on.

Once you have a clearer view of how much you spend now, you will need to estimate whether your expenses will rise or fall during retirement.

When you retire, you will have much more time on your hands, which means much more opportunity to spend money.

If your retirement vision includes travel and adventures, your spending may actually increase.

On the other hand, if you plan to cut back on big purchases during retirement, such as a new car, and expect to have all your debt paid off then you may have find your retirement costs will be significantly lower.

Either way, run the numbers using Personal Capital or Mint, or some other budgeting tool and you’ll have a better idea of whether you can afford to retire early.

Step 3: Calculate Your
Retirement Income

If you have squirreled away a chunk of savings into your retirement accounts over the years, your next step is to calculate your retirement income.

Can You Retire Early With A 401k or IRA Only?

It’s normal to wonder whether your retirement account can cover your costs during your retirement years.

The good news is even if an IRA or 401(k) doesn’t fully get you to where you need to be, social security income may provide the cash flow boost to support a comfortable retirement.

Even in a low interest rate environment it may be possible to earn an annual yield of 4 → 5% on your retirement savings. When interest rates are higher, much higher savings rates are possible.

During the 1980s for example, some savers were able to lock in 30-year government bonds that paid annual yields of over 14% at one time. These days, bond investors can only dream about such returns!

After you have made an estimate of the income you can receive from savings and added it to your expected social security income, see if any other income is on the horizon.

Include Other Income Sources

For example, are you due to receive an inheritance? Do you plan to rent out a room in your home on Airbnb for extra income? Have you plans to do part-time work, which would boost your monthly income?

The bottom line is you may have many income sources to sustain your retirement lifestyle that include:

• 401(k) or IRA
• Social security income
• Inheritance
• Passive income from Airbnb or other assets
• Working part-time

Max Out Your Retirement Contributions

The more you contribute to your retirement vehicles, the more money they can accumulate over the years. For the best results, you should max out your retirement contributions.

In 2019, you can add:

• $19,000 to your 401(k)
• $6,000 to your Roth IRA nor IRA

If you’re 50 or older, you can put even more money into your retirement accounts. For your 401(k), you can contribute an extra $6,000. You can put an additional $1,000 into an IRA.

Remember that the interest compounds on the money that you put into your retirement savings. If possible, start maxing out your contributions while you’re young. It will make a big difference in the amount you have when you retire.

Step 4: Invest To Retire Early

After you run the numbers between what retirement will cost and how much money you need for retirement to cover those costs, you will probably discover a financial gap exists.

In order to close that gap, you will need to save and invest to retire early.

How To Save For Early Retirement

You are not alone when it comes to saving for retirement. Dozens of great budgeting tools, like Tiller Money and Status Money, can help you to budget smarter.

You can set spending limits and receive notifications in many budgeting apps like Mint and YouNeedABudget (YNAB) to alert you when you have spent too much on say entertainment, groceries, or clothing.

The most important step when saving for early retirement is setting a monthly and yearly goal to deposit a fixed amount in order to close the financial gap that will help you reach your financial goals.

If you find it difficult to stay on track, put up a sticky post-it note to remind yourself of the opportunity cost of not saving.

Here’s a statistic that should make you perk up and pay attention to every dollar you spend.

If you saved $10,000 by buying a used car versus a new car and invested those savings over 30 years at an 8% rate, your money could grow by about 10x.

For every $1 you spend, think about the real cost of it being 10 times higher and ask yourself would you still buy it?

Is the $100 pair of shoes today really worth foregoing $1,000 of retirement savings in the future?

If you still find it difficult to save regularly, check out some of the microsavings apps like Acorns or Digit that help you to squirrel away extra savings each year every time you buy something.

How To Invest To Retire Early

Investing for early retirement is simpler than you might think.

What makes investing challenging for most people at the outset is the endless list of possibilities.

But don’t let all the choices flummox you. For example, should you buy stocks or bonds or options or futures? If you buy equities, what are the best stocks to buy now? And should you invest for the long-term or trade short-term in order to keep your portfolio liquid during stock market crashes?

Unless you have the investing skills of Warren Buffett, follow the wise advice from the Oracle of Omaha, which is to invest regularly in a diversified portfolio.

Shark Tank’s Mr. Wonderful aka Kevin O’Leary is also a highly successful businessman and investor, and he recommends a mix of dividend-paying stocks and corporate bonds.

If you are trying to figure out how to retire now then you will probably choose more bonds than stocks. However, if you plan to retire in 30 years, you can probably own a higher percentage of stocks.

The rule of thumb is to subtract your age from 100 to arrive at the percentage of equities you should hold. So, if you are 30 years old then a ratio of 70% equities and 30% bonds would be reasonable but contact your financial advisor who can better understand your entire financial situation.

When it comes time to invest in a diversified stock fund, Vanguard may be your best bet. It is famous for its low cost equity funds like VFIAX and VTSAX that will give you broad exposure to the major market

Or if you prefer a hands-off approach to investing, Betterment and Ellevest are robo-advisors who can automate the investing process.

Step 5: Plan For Hidden Costs

With your budget created, your retirement income calculated and your retirement investing under control, you might think you are done but there is one more thing to consider: hidden costs.

When you retire early, health insurance costs can come as a shock.

The costs are multiplied for adventurous explorers who travel internationally, and may need to buy extra insurance coverage.

Before you hand in your resignation letter and jet off to the Maldives, build in the cost of annual health insurance, which may be as low as a few hundred bucks per month.

If you haven’t purchased life insurance to provide for your family, now might be a good time to do that too, especially as your income from salary is going to disappear.

For health conscious individuals, Health IQ provides lower rates to reward your lifestyle choices. Or simply shop online at Policygenius to find competitive insurance quotes from top-rated providers.

For each person, hidden costs may differ but it is wise to take some to think about what other expenses may crop up when you are planning to retire early.

Not sure whether you can retire early? Check out this piece: Can I Retire Yet?

The Super Simple Math to Retire Early

If retirement still feels like an impossibility, then you need to take a look at the simple math.

Start by thinking about two things:

1. How much money you earn (post-tax) each year
2. How much money you need to live

When you look at these two factors, you realize that you can prepare for retirement by saving more of the money that you make.

More likely than not, your savings rate will change throughout your life. During your 20s and 30s, you will probably spend a lot of money on things like repaying student loans, buying a house, and raising children. Even if you can only set aside 10% of your income, though, you will inch toward your goal.

As you get older, you can save a higher percentage because you own your home, you earn more money, and your children don’t need as much help from you. During this time, save as much as possible. The money will continue to grow even after you retire.

You can retire early as long as you make the right decisions. Set a goal and work toward it. You’ll get there before you know it.

The article How To Retire Early In 5 Simple Steps was originally posted on Investormint

Depending on how much interest you can earn, your cost of living, and any other sources of income, you may well be able to hang up your boots and retire comfortably.

But before handing in your resignation letter to your boss and buying flip flops for your celebratory trip to a sun-drenched beach, run the numbers.

Here’s how…

How Much Interest On
A Million Dollars
Can I Earn From Savings?

The amount of interest on a million dollars that you can earn depends very much on where your money is parked.

Bank Savings Accounts

If the million dollars is in a bank savings account, you may only earn a pittance.

For a decade after the 2008-09 stock market crash, interest rates on money stashed in savings accounts earned next to nothing.

It wasn’t until Fed rate hikes years after the bear market that pensioners and retirees could pocket a little extra cash but even then an extra 0.50% → 1.00% doesn’t move the needle a whole lot.

Individuals weren’t the only ones stuck in the mud earning peanuts on savings, pension funds too were spinning their wheels for years.

Typically, pension funds project growth of 5% or more annually, so a decade of low rates caused pensions to suffer in states like Illinois and California.

For risk-averse investors, who want to preserve capital yet still want to earn interest on a million dollars, certificates of deposit are often a better bet.

Certificates of Deposit

If your cost of living is low, you may be able to live off interest on a million dollars invested in certificates of deposit.

At the time of our research, many of the top banks were paying just shy of 3% annually on 5-year CDs.

This means that you can earn close to $30,000 per year by locking up your money for a 5 year term.

Unlike a bank savings account that is liquid, a certificate of deposit ties up your money for a fixed duration.

So, if you plan to retire soon and will need access to your money, a CD may not be the best choice for the entire amount.

On the other hand, if you have some time on your side, a CD ladder may be a great option to provide liquidity down the road while earning decent interest rates.

How a CD Ladder Works

A CD ladder works by investing your money over different time lengths.

Imagine for a moment that you invested your $1 million into CDs exclusively.

Rather than invest all your money in a 6-month CD, 1-year CD or 5 year CD, you could spread your money equally across certificates of deposit with different durations.

For example, you could place $200,000 in a 1-year CD, and an equal amount in a 2-year CD, 3-year CD, 4-year CD, and 5-year CD.

Then when the shortest term certificate of deposit matures, you could invest the money in a new 5 year CD.

Repeat the process as each CD matures, and each year you will earn the maximum interest rate on a 5-year CD while keeping your funds much more liquid – because each year $200,000 is available to re-invest or dip into as needed.

>> Find Out How Much You Can Earn Using This CD Calculator

How Much Interest On
A Million Dollars
Can I Earn From Investing?

If you are on the verge of retiring, bank savings accounts and certificates of deposit may be top of your bucket list when it comes to earning interest on a million dollars because the risk to your nest-egg is very low.

For individuals with a longer timeline to retirement, investing offers more reward potential but also more downside risk.

Usually a combination of stocks and bonds are a wise bet with an increasing weighting towards bonds as you get older.

But what types of stocks and which bonds?

Which Stocks Should You Buy?

Shark Tank’s Mr. Wonderful has stated that a combination of dividend-paying stocks and corporate bonds provide an optimal mix.

While technology stocks like Netflix, Facebook, and Alphabet garner headlines on Bloomberg TV, CNBC, and Fox Business, they don’t pay investors dividends.

As Kevin O’Leary, aka Mr. Wonderful, points out, the only way to make money on such stocks is when someone else is willing to buy your shares at a higher price.

Even more significantly, Professor Siegel from the Wharton School of the University of Pennsylvania points out that 95% of the total stock market return over most of the last century came from reinvested dividends.

So, if you know wealth accumulation largely stems from dividend-paying stocks, why chase the latest trend?

Which Bonds Should You Buy?

So you know which stocks to buy now, but which bonds are best?

Government bonds are favored by many institutions because they are perceived to be low risk.

In fact, governments have a history of defaulting on bond issuances, which is why some financial advisors recommend individuals choose corporate bonds instead.

Unfortunately, there is no risk-free bet as companies are known to run into financial difficulties too from time to time.

But when you buy corporate bonds of companies with rock solid balance sheets, meaning high levels of cash and low levels of debt, and who have a global presence like Coca Cola or Apple, you stand a good chance of recouping your principal and earning a handsome fixed income yield along the way.

The takeaway is that a combination of dividend-paying stock and corporate bonds has the potential to pay you a higher yield than CDs, often as much as 3 → 5% annually for conservative portfolios in addition to any upside from rising share prices or bond prices.

How Long Will A Million Last Me?

By spreading your money across a bank savings account, certificates of deposit, dividend-paying stocks, and corporate bonds, you may be able to earn between 3% → 5% annually.

Let’s split the difference and pick a 4% yield which would translate to $40,000 of income annually.

But how long will a million last you when earning $40,000 each year?

The answer depends on your tax rate and spending.

Taxes: The Silver Lining

The income you earn in retirement may be less than your salary during your working years, resulting in lower payments to Uncle Sam when you finally hang up your boots.

Even after you factor in income from social security and interest in your nest-egg, you may still qualify for a tax break, which keeps more income from savings and investing in your pocket.

Spending: Track Your Expenses

If you’ve built up a million-dollar nest egg for retirement, planning how your income and savings will support you in retirement is crucial. But earning income that can offset your expenses puts you in an ideal position to live off your interest.

So, it’s important to track the right expenses so you know where your money is going and to save you time and money during your retirement. Take these crucial steps for identifying the expenses you should track and monitoring them:

Know the Best Ways to Track Your Expenses

Before you focus on what expenses to track, it’s important to have the right tools and strategies for tracking your expenses. Some of the best ways to track your expenses involve using a budgeting app like Mint or Personal Capital and categorizing your expenses.

You can also use budget worksheets and templates if you prefer tracking your expenses from a computer.

Group your expenses into fixed expenses versus variable expenses and use the apps and tools to determine where your money is going every month. Tiller offers great spreadsheet tracking.

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Keep on Eye on Important (and Frequent) Expenses

There are several expenses you can track but the ones you should focus on the most are your frequent and recurring expenses. These expenses build up over time and often go undetected since they can appear minor.

You also want to keep an eye on your variable expenses, including how much you spend on food, travel and transportation. That’s because these types of expenses can change from month to month.

Track Your Expenses Frequently

It’s also important to know how often to track your expenses if you want to ensure you can live off your interest.

There are no set rules to how often you should track your expenses, but it’s crucial to keep up with your expenses often.

Track your daily expenses and review them on a set schedule, such as by the week or month. The more often you track your expenses, the quicker you can spot transactions and spending patterns you can change so you can save more.

Offset Your Expenses With Earned Interest to Enjoy Your Retirement

The great news is that if your income from your savings exceeds the expenses you have, you’ll be able to live off your nest egg sustainably. Consider offsetting your expenses with the interest you earn from your investments.

Knowing what expenses to track helps you to quickly identify spending patterns you can change and make the most out of your retirement nest egg. Just follow these tips to track the right expenses and how to offset them, and you’ll be on your way to enjoying your retirement nest egg for years to come.

Did You Calculate
The Cost Of Healthcare?

Once you leave your job, and depending on your age, you may be required to pay for health insurance.

Look to the short-term and long-term healthcare costs when running the numbers.

If you find that the interest on a million dollars just about covers your lifestyle, it may not be enough to sustain you forever more because one day you may need to spend more on healthcare costs.

For example, you may need to pay for a nursing home or some other long-term medical care.

You can always dip into your nest-egg to pay for emergencies but remember that, by so doing, the interest you earn will be lower in the future because the principal amount will be lower.

Ideally, it is best to have a cushion between what you earn on interest and what you spend so that your nest-egg is growing each year too.

That way if a medical emergency does crop up, you will be able to afford a financial hit.

Did this article Can I Live Off Interest On A Million Dollars help you to think about whether you can afford to live off your nest-egg in retirement? Share your own financial tips, we would love to hear from you.

>> Manage Multiple Portfolios with StockMarketEye

>> Find Out How To Research Stocks

>> What Are The Best Value Stocks?

The article Can I Live Off Interest On A Million Dollars? was originally posted on Investormint

Should you be a stock-picker or invest in mutual funds and exchange-traded funds? Are stocks better than bonds or should your portfolio be divided between both asset classes?

And what about more exotic securities like futures, forex, and options? Should you ignore them altogether or speculate to generate extra income?

The road to finding a time-tested investing method can be harrowing so we rolled up our sleeves and researched the best stock market books for beginners to help you get up to speed faster.

1 – Stock Market
Investing For Beginners

Of all the books on investing, Stock Market Investing For Beginners: Essentials to Start Investing Successfully, ranks among the very best.

It covers the fundamentals of investing in order to equip you with the knowledge needed to take greater control of your financial future.

All the common questions you may have about what to buy, when to buy, when to sell, and how to diversify your investments are covered in length, so you are left in no doubt what next steps to take.

Here’s a sample of what you will learn:

• How to pick winners using valuation techniques
• How to pick winners based on growth rates
• The different types of stocks you can invest in and why to choose them
• How to build a diversified portfolio
• What the “perfect” portfolio looks like

Perhaps the most valuable aspects of Stock Market Investing For Beginners: Essentials to Start Investing Successfully are the five strategies to pick winners and the advice on when to sell.

A golden rule of smart investing is to not put all your eggs in one basket but instead to diversify your investments and lower the risk of one bad investment hurting your entire portfolio. This book walks you step-by-step through the process of diversifying intelligently so you lower these risks.

The bottom line is if you are still puzzling over why you should invest in the stock market and want to know what smart and actionable steps to take, this is the best book to learn stock market basics.

Get Stock Market Investing For Beginners Here >>

2 – Learn To Earn:
A Beginner’s Guide to the
Basics of Investing and Business

It is hard to find a more distinguished author on the topic of stock market investing than Peter Lynch.

He earned his stripes on Wall Street as the manager of the Magellan Fund, which produced averaged annual returns just shy of 30% during the period from 1977 to 1990 when he was in charge.

Lynch took over the Magellan Fund when it had $18 million in assets and, by the time he left, it had $14 billion in assets.

He became famous as a proponent for buying what you know. If you use Facebook every day, maybe Facebook stock is worth considering.

Or if you shop at Amazon or search the internet on Google, perhaps Amazon stock and Alphabet stock are worth exploring.

In Learn to Earn: A Beginner’s Guide to the Basics of Investing and Business, Peter Lynch enlightens virtually anyone of high-school age or older about the basic principles of the stock market.

The fundamentals of stock market investing are not taught in school, argues Lynch. Few people truly understand how economies and markets connect and fewer still know how to invest intelligently.

The failure to understand how markets work means that, when it comes time to retire, many are left with insufficient assets in their brokerage, 401(k) and IRA plans to pay for their golden years.

Yet Lynch argues that few people are unfamiliar with companies like Coca Cola that have paid solid dividends year after year for decades.

If you want an easy-to-read book that is jam-packed with valuable information and written by one of Wall Street’s most successful investors, few books match Learn to Earn by Peter Lynch.

Get Learn to Earn: A Beginner’s Guide to the Basics of Investing and Business Here >>

3 – Stock Trading:
Invest and Trade in the
Stock Market

Calvin North’s book, Stock Trading: Invest and Trade in the Stock Market, is designed with the beginning investor in mind. It offers insight into the basics of stock market trading and explains terms you might not be familiar with, such as stocks, options, bear market, and bull market.

The book explains the ins and outs of the stock market so that you’ll come away understanding what the market is all about and how to find success while investing in it.

It’s important to note that this book is meant for beginners. If you’re already familiar with the stock market and how it works, this book won’t be a good fit for you.

However, anyone who could use a refresher in stock market basics may find it helpful to review the information North provides. And definitely anyone who is considering taking the plunge and investing in stocks for the first time should read this book to help them make good choices from the get-go.

Is This Book Right For You?

North’s goal in writing this book is to help readers achieve investment success in the stock market.

North offers the book as a lower-cost alternative to working with a money manager. By learning the basics of how to invest in the stock market, readers can avoid paying high fees to money managers or making costly mistakes while learning investment strategies.

Financial Lessons In This Book

The book teaches the basics of investing in the stock market. You’ll learn about the different types of stocks available, how to read stock quotes, and how to use the information in a company’s annual report to help you predict how well the stock will do. You’ll also learn the basics of buying and selling, get tips on when to sell to maximize your profits, and get information about how to best develop your portfolio.

If you want to earn passive income through investing in stocks, this book is for you! It is filled with easy-to-understand explanations, tips to help you build your portfolio, and tools to help you get started right away. This book is a low-cost investment that can help put you in the driver’s seat when it comes to stock market investing.

Other financial lessons include:

• Understanding the differences between stocks and other securities
• How to make money over the long-term and in the short-term
• Strategies to make money when the market is not performing well
• The different types of stocks and how to invest in them
• Investment methods of beginners and advanced traders

If your goal is to earn passive income from the stock market, Stock Trading by Calvin North ranks as one of the best investing books for beginners and experienced traders.

Get Stock Trading: Invest and Trade in the Stock Market Here >>

4 – Investing In Stock Market
For Beginners

Stock investing books for beginners may be a dime dozen but great books are hard to come by. Investing in Stock Market for Beginners: Understanding the Basics of How to Make Money with Stocks falls into the category of one of those great investing books.

The reason it ranks as a top stock market investing book for beginners is because it spells out key metrics to examine when to make buy and sell decisions.

You will learn about the seven key financial ratios designed to help you understand whether stocks are overvalued or undervalued.

Plus, you will discover bad investment behaviors, basic stock equations, technical analysis, and how to make the “right” investment.

The overarching idea of this book is to help you understand how to steer clear of investing traps that can cause losses by lack of knowledge and to help you identify comparatively safe investments in order to minimize risk.

Get Investing In Stock Market For Beginners Here >>

5 – Rule #1: The Simple Strategy For
Investing In Only 15 Minutes Per Week

Phil Town’s Rule #1 isn’t just one of the best stock market books for beginners, it’s a classic that ranks among the all-time great investing reads.

What makes Rule #1: The Simple Strategy for Investing In Only 15 Minutes Per Week so compelling is that its author claims to have turned $1,000 into $1,000,000 in only 5 years.

He also shares a story that may resonate with many readers. He struggled to understand stock market cycles and explored whether he should simply hand over his money to a mutual fund money manager.

As Phil narrates his personal story from river guide to imagining a retirement of dining on cold cuts and watching TV instead of exotic adventures and fine wine, he shares the key lessons he learned along the way in an easy-to-understand manner.

Without a strong background in math and lacking much money, Phil describes how he was introduced to “The Rule”, a formula for stock-picking that requires no genius – only some investment research.

When you find a stock that meets the criteria set forth in “The Rule“, you can invest with confidence.

Thankfully these days, so many great screening tools exist that you don’t have to work nearly as hard as before to find great companies. And once you do, the idea is to buy stocks for $0.50 on the dollar over and over again in order to earn handsome profits over the long term.

The bottom line is if you want a clear-cut step-by-step formula for stock-picking, Phil Town’s Rule #1: The Simple Strategy for Investing In Only 15 Minutes Per Week is a must-read.

Get Rule #1: The Simple Strategy For Investing In Only 15 Minutes Per Week Here >>

What are the best stock investing books for beginners that you have read? Share your top stock books below, we would love to hear from you.

>> What Are The Best Technical Analysis Books?

>> How To Retire Early In 5 Simple Steps

>> What Are The Best Options Trading Books?

The article 5 Best Stock Market Books For Beginners was originally posted on Investormint

Unlike Bitcoin (BTC), Ethereum (ETH), and many other cryptocurrencies that can be mined using mining software, Ripple (XRP) bucks the trend.

While Bitcoin miners and Ethereum miners made fortunes buying up huge computing power in low-cost electricity areas to produce digital currencies, Ripple miners don’t exist.

When it comes to Ripple, there is no point buying servers to solve the complex math equations needed to mine cryptocurrencies.

The reason Ripple mining is not possible is based on how Ripple is released to the world, and it’s not the same way other cryptocurrencies come into existence.

How Other Cryptocurrencies
Come Into Existence

Most cryptocurrencies need to be mined in order for supply to grow. Mining is the process of locating a cryptocurrency using high-end hardware and mining software.

The way it works is a miner will use powerful hardware (CPUs & graphics cards) to solve math puzzles on blocks, which comprise encrypted transactions.

Each block is added to a chain, called a blockchain, which is the core concept on which cryptocurrencies depend in order to come into existence.

Miners earn fees for verifying transactions and keeping the blockchain running.

When a block is solved, the supply of crypto coins increases and a portion of them are distributed to the miners.

Over time, it becomes ever more difficult and costly to mine coins, but as long as the price of a cryptocurrency is higher than its mining cost, a profit can be earned by miners.

But if mining is the typical way to increase the supply of crypto coins, why can you not engage in Ripple mining?

Why Ripple Mining Is Impossible

Unlike other cryptocurrencies, Ripple coins are released to the world a different way.

The entire supply of 100 billion Ripple coins already exists and Ripple Labs releases coins steadily over time.

By mid-2022, all Ripple coins are scheduled to be released via an escrow process, whereby 1 billion coins are “released” each month.

Because many coins are used, it is theoretically possible that all Ripple coins in escrow will not be released until approximately a decade later.

The approach taken by Ripple Labs has been met with controversy among cryptocurrency advocates because the founders pocketed 20% of the supply, an amount considered to be exceedingly high.

In their defense, half of the Ripple founders’ supply has already been donated to non-profits and charities, and a chunk of CEO Chris Larsen’s stash was donated to the Ripple Foundation for Financial Innovation.

Ripple vs Bitcoin:
Which Cryptocurrency Is Best?

Unlike Bitcoin, which is truly decentralized, Ripple has been criticized for using a few validation nodes.

But Ripple has become very popular as a significant competitor to Bitcoin because of its ability to support real-time money transfers.

It also known to be significantly faster at processing transactions than Bitcoin and uses less electricity than Bitcoin.

Ripple is also currency agnostic, meaning it can support money transfers in virtually any major fiat currency.

The way it works is the Ripple Path-finding Algorithm searches for the fastest and cheapest path between two currencies.

For example, if you wanted to convert U.S. dollars to euros, the fastest path might be a single hop between one currency and the other, or it might be a multi-hop path between say USD to NZD to GBP to EUR.

>> Related: ZCash Vs Ethereum – Which Cryptocurrency Is Better?

Should You Buy Ripple?

Each of the major cryptocurrencies has unique advantages but none are perfect.

Bitcoin is by far the best known but it is nowhere near as fast Ripple. It also lacks the anonymity of Zcash or Monero.

Ethereum can be bought or sold as a cryptocurrency but it is best known for its smart contracts. In fact, many other cryptocurrencies launch using Ethereum blockchain technology.

Another Ripple competitor, Litecoin, has been long mooted as the best cryptocurrency for payments.

Along with these cryptocurrencies, hundreds of other cryptocurrencies exist, but should you buy them, and if so, what are the best cryptocurrencies to buy?

Like stock market investing, a conservative approach to cryptocurrency investing involves buying a diversified list of cryptocurrencies rather than trying to pick a single winner.

So how do you buy cryptocurrencies?

How To Buy Ripple

The best known digital currency exchange is Coinbase, which supports trading in the major cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

Other digital exchanges, like Kraken and Gemini, support a much broader list of cryptocurrencies.

And increasingly other brokers, like Robinhood, are making cryptocurrency trading more accessible to the general public by waiving transaction costs.

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But fees are only one of the factors that should influence your decision to buy cryptocurrencies. The most important criterion is security.

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Hackers are constantly trying to break through the defenses of cryptocurrency exchanges so the best way to buy Ripple or any other cryptocurrency is to find the  most secure digital currency exchange.

Next, look for low transaction costs in the cryptocurrencies you wish to trade.

Coinbase is probably the easiest one when it comes to buying and selling cryptocurrencies. You can even buy Bitcoin, Ethereum, or Litecoin using a credit card.

Like other top exchanges, it features two-factor authentication and top notch security protocols.

>> Coinbase vs Gemini Review

>> Coinbase vs Kraken: What Is The Best Cryptocurrency Exchange?

>> Litecoin vs Ethereum: Which Cryptocurrency Is Best?

The article Want To Make Money Ripple Mining? was originally posted on Investormint

Chances are you have an Amazon Prime membership like 100 million+ other people, and if so you are in luck.

As a Prime member you have access to Prime Pantry. It is an exclusive benefit to Prime members who can shop online or via the free Amazon mobile app.

But how does Prime Pantry work and can it save you money?

What Is Prime Pantry?

In a nutshell, Prime Pantry is an online store where Prime members can shop for groceries and household products.

When you want to shop for day-to-day items like laundry detergent, diapers, toilet paper, and so on, Prime Pantry is a one-stop online store.

Items usually fall into one of the following categories:

• Food and beverages
• Household and pets
• Beauty and grooming
• Wellness and healthcare
• Coupons and deals

For a fixed shipping fee, items will be delivered to your door in everyday package sizes. You don’t need to buy in bulk so you can simply purchase a cereal box if you wish.

Amazon labels items that are eligible for Prime Pantry shipping so you are not left wondering whether your Gillette Razor or Charmin Ultra Strong toilet paper qualifies.

Orders ship either all at once or over the course of a few days, depending on which option you select in your shopping cart.

And Amazon makes it easy for you to know when your Pantry box has reached full capacity.

Sign up to Prime Pantry

How To Get Prime Pantry
Free Shipping

When it comes to shipping costs, you have a choice between paying a flat rate each time you order or qualifying for free shipping.

The flat rate per order is $7.99 which is expensive if you expect to order monthly. However, you can qualify for free shipping on orders of over $40 by paying a monthly Prime Pantry membership fee of $4.99.

Before loading up your Amazon cart, keep in mind that only Amazon Prime Pantry goods qualify for free shipping. So, if your cart has over $40 worth of goods but you only have $18 worth of Prime Pantry goods, you will not qualify for the free shipping perk.

Do Prime Pantry Orders Arrive In 2 Days?

As a Prime member, you are probably well used to the lightning fast free 2-day shipping policy.

However due to their size and weight, Prime Pantry boxes are transported using ground shipping and orders may take anywhere from 1 → 4 days to arrive.

Prime Pantry orders are shipped separately from Amazon.com orders so non-Prime Pantry orders do not be ship at the same time as Pantry orders

Alaska and Hawaii residents are excluded because Prime Pantry is unavailable in those states due to the limits of ground shipping. Also, you cannot deliver goods to PO Boxes, dorms, Amazon Lockers, or APO/FPO.

Sign up to Prime Pantry

Is Prime Pantry Worth It?

Most people spend at least $40 (the minimum needed to qualify for free shipping when you have a monthly Prime Pantry subscription) per month on day-to-day goods like snacks, sodas, bath gels, shampoos, vitamins, and so on.

As long as you order monthly or even more frequently, Prime Pantry is worth the subscription fee of $4.99.

However, if you expect to order only once every couple of months the flat rate shipping cost of $7.99 will be a better bet by about $1!

Plus, the good news is you don’t need a Prime Pantry promo code to get started because you can try it out risk-free as a first-time user for 30 days.

And if you decide against it, you can turn off Prime Pantry and cancel at any time.

Sign up to Prime Pantry

Prime Pantry vs Amazon Fresh vs Prime Now

If you are tempted to sign up to Prime Pantry, you might be wondering what is the difference between it and Amazon Fresh or Prime Now?

Amazon Fresh vs Prime Pantry: AmazonFresh is a grocery delivery and pickup service available exclusively to Amazon Prime members in certain cities.

Think of AmazonFresh as perishable groceries, such as:

• Dairy items
• Deli
• Bakery
• Fresh fruits
• Meal kits

Prime Pantry and AmazonFresh overlap in some areas. For example, you can order beverages from both. But for the most part, Prime Pantry features non-perishables whereas AmazonFresh lists primarily perishable goods.

Like Prime Pantry, you will need to be a Prime member to be eligible to sign up to AmazonFresh, which costs an additional $14.99 per month over and above your $119 annual Prime membership fee.

Prime Pantry vs Prime Now: Prime Now is a rapid delivery service available to Prime members.

Similar to Prime Pantry, you can purchase goods like bottled water, toilet paper, cans of soda, laundry detergent, and so on.

The difference is that Prime Now is available as a mobile app and delivers orders in as fast as two hours.

The cost of the service is $4.99 per order or, if you are willing to wait a few more hours, you can receive free shipping.

Generally, Prime Now orders will be delivered within a two hour window and you can track on a map where your order is once it has left the shipment facility.

The bottom line is you plan your orders ahead of time and don’t need same-day delivery, Prime Pantry membership probably works out to be less less expensive at a cost of $4.99 per month on orders over $40.

Sign up to Prime Pantry

Prime Pantry vs Subscribe & Save

Another shopping option Amazon provides is Subscribe & Save, but how does it compare to Prime Pantry?

The difference between the two boils down mostly to the size of the orders you place. If you plan to buy goods in bulk, Subscribe & Save is the best choice.

Prime Pantry, on the other hand, is ideal when you simply want to purchase everyday package sizes. Think one cereal box versus a 6-pack of cereal boxes.

You don’t have to choose between the two because they are complementary services. For example, you could enjoy discounts of 5% on Subscribe & Save orders or as much as 20% when you have more than five orders. And at the same time, you could choose Prime Pantry on non-bulk order purchases.

Sign up to Prime Pantry

Prime Pantry Reviews:
The Bottom Line

If you want to avoid the hustle and bustle of grocery store lines, Prime Pantry has much to offer, especially when placing more than one order per month.

For the cost of a cup of coffee each month, you enjoy free shipping on non-perishable items as long as you order at least $40 worth of goods.

Here are some things to note before getting started. First, You will need a Prime membership to take advantage of Prime Pantry, which is a supplemental service.

And the goods available for delivery will mostly be non-perishables like cleaning supplies, hygiene products, canned food, sodas and snacks, laundry detergents, pet food, and so forth.

For perishable goods, you will need to shop at AmazonFresh. Or if you want goods shipped faster to you, Prime Now provides same-day delivery of goods.

Finally, don’t forget to take advantage of the coupons program which is available to Prime members. You can get an even better deal on items you wish to purchase by clipping digital coupons that can be used for Prime Pantry goods.

Sign up to Prime Pantry

Are you wondering is Prime Pantry worth it? Let us know your experiences at Amazon and whether you believe you got value for money from the service.

>> Amazon Stock: Should You Buy or Sell?

>> Which Mattress Is Better: Sealy vs Serta?

>> Use NordVPN to Watch Netflix Anywhere

The article Is Prime Pantry Worth It? was originally posted on Investormint

Whether you are a twenty something, a beginner, a young adult, in college, or an experienced budgeting pro, you can always improve your financial IQ.

The average Joe or Jane citizen claims to read one book each year while the average CEO is reported to read sixty books annually. Why is reading more important to improving your financial well-being?

To build a richer life, make more money, and live more comfortably, new habits and knowledge are needed. And it’s for that reason we compiled a list of the best personal finance books to read.

1 – Best Finance Book
For Entrepreneurs: The 10X Rule

The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone is a book designed for the go-getter who aspires for greater professional and personal wealth.

Cardone explores the habits that lead to mediocrity and the actions needed to create phenomenal success.

If you want to achieve extraordinary results professionally, personally, or physically, you will need to radically alter how you spend your time each day, according to Cardone.

A routine 9-to-5 job won’t translate into enormous riches. To reach phenomenal heights of success, you need to stop underestimating the effort needed and operate by what the author describes as the fourth degree of action: Massive Action.

The 10X Rule is provocative and will prod you to reflect on whether you could be doing more to realize a life of abundance versus an ordinary life which simply meets your needs.

The title of the book offers a hint of what lies within the pages of this bestselling book. You will be asked to think not about how you can increase your salary by 5-10% but how you can find ways to boost your income by 10X.

By aiming ten times higher, your mind is forced to seriously evaluate what it will take to transform your life from its current state to one of significantly more abundance.

In The 10X Rule, Cardone claims you will learn how to:

• Set goals and guarantee they are realized
• Achieve goals you previously imagined were unattainable
• Create happiness professionally, personally, and physically
• Never settle for what you have and understand why that is important
• Be motivated by fear and use it to fuel massive action
• Eliminate procrastination and follow a step-by-step guide to success

Get The 10X Rule Here >>

2 – Top Finance Book For
Adults – Principles: Life and Work

Ray Dalio may not be a household name to the general public but he is an icon in the investment management industry.

As a young, ambitious go-getter, he started a company in his two-bedroom apartment in 1975 and grew it to become one of the most successful private companies in the United States.

That company is called Bridgewater Associates and it made more money for its clients than any other hedge fund in history.

In Principles: Life and Work, Dalio shares a philosophy that he believes can be applied by anyone to create greater wealth and success in life, both professionally and personally.

As an ordinary kid from a middle class neighborhood in Long Island, Dalio claims that what led to his enormous success and that of Bridgewater Associates was a ruleset that anyone can follow.

Dalio believes economics, investing, and life itself can be systemized into rules and understood much like machines.

In this video, for example, he describes how the economy acts like a machine:

The basis of Dalio’s philosophy stems from the importance of what he calls “radical transparency” and “radical truth.”

He applies this philosophy at his firm, where employees receive “baseball cards” that highlight both their strengths and weaknesses. This approach he believes leads to more meaningful relationships and work.

Within the pages of Principles: Life and Work, Dalio shares hundreds of practical lessons to help individuals and companies become more effective and create richer outcomes.

Get Principles: Life and Work Here >>

3 – Best Book For
Getting Out Of Debt:
The Total Money Makeover

The Total Money Makeover: A Proven Plan For Financial Fitness by Dave Ramsey is a must-read for debt-laden consumers who overspend.

If you are saddled with debt from student loans, auto loans, personal loans, or a mortgage, and trying to figure out how to improve your financial health, this is the book for you.

In The Total Money Makeover, Ramsey attacks head-on the idea of “keeping up with the Joneses.” Just because your neighbor bought a new car doesn’t mean you should too in order to keep up appearances.

Instead, Ramsey advocates getting out of debt and shows you how to lower your debt levels through a 4-step process that includes:

1. List your debts from smallest to largest
2. Make minimum payments on all your debts except the smallest one
3. Pay as much of your smallest debt off as you can afford
4. Repeat the process until all of your debts have been paid off

If you want an automated way to help you achieve this method, called the Debt Snowball Method, check out this Tiller Money spreadsheet.

While some critics argue that it is better to pay off your highest interest debt first, Ramsey claims that research shows eliminating an entire bucket of debt feels better and helps people build momentum to pay down debt at a faster rate.

So, if you have credit card debt, a car loan, and a personal loan, the goal would be to pay off your personal loan or car loan entirely because it will make you more likely to get out of debt sooner – even if your credit card debt is costing you more each month because of higher interest rate charges.

If the idea of being more disciplined with how you spend money resonates with you, The Total Money Makeover is one of the top personal finance books to buy.

Get Total Money Makeover Here >>

4 – Personal Finance Book
For Beginners: MONEY Master The Game

Tony Robbins is best known as a speaker, life coach, and consultant to some of the best known celebrities, sports stars, and dignitaries from Princess Diana to Andre Agassi.

Usually his work concentrates on how to break bad habits, control your mind, rebuild broken relationships, be more confident, and discipline yourself.

So it may seem unusual for him to write a book purely about money, but following the stock market crash of 2008-09, Robbins believed people needed to learn about money in a simple, powerful way that wasn’t cluttered with financial jargon.

His book, MONEY Master The Game: 7 Simple Steps To Financial Freedom is a blueprint for how to improve your financial wellness.

Where most other personal finance books for adults, twenty somethings, or college kids are written from the perspective of the author, MONEY Master The Game is based on extensive research and interviews with 50 of the world’s richest people, including Warren Buffett, Ray Dalio, and Steve Forbes.

Robbins dispels financial myths that can steal away your financial future and shows you step-by-step how to become financially free by creating an income plan.

In the book, you will be guided through a 7-step plan designed to create financial freedom for you and your family. Not only does Robbins make complex financial concepts easy to understand but he provides an actionable plan to use from day one.

Get MONEY: Master The Game Here >>

5 – Best Finance Books of All Time:
Rich Dad Poor Dad

Rich Dad Poor Dad by Robert Kiyosaki is a timeless classic and a must-read for anyone who is working a 9-5 job yet aspiring for more wealth.

Kiyosaki shares the story of his real father who he describes as poor and his “Rich Dad” who taught him the skills of the ultra wealthy.

His actual father was by no means a professional slouch. He had succeeded in his career when it came to a lofty professional title but financially he was poor.

In Rich Dad Poor Dad, Kiyosaki explores the professional journeys of both his real father and his so-called “Rich Dad”, who had fewer academic credentials but had attained much greater wealth.

If you earn a regular salary, Kiyosaki will contrast your income potential with the earning possibilities of investors and business owners.

You will also learn about smart passive income streams so you can make money even when you are sleeping.

In Rich Dad Poor Dad, Kiyosaki shares his own story from unsuccessful Xerox salesman to multi-millionaire real estate mogul, successful author, and investor.

For readers who want to open their minds to new ways to make money and enjoy a page-turner in the process, few personal finance books are as compelling as Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That The Poor and Middle Class Do Not!

Get Rich Dad Poor Dad Here >>

6 – Best Selling Finance Book:
The Richest Man In Babylon

The Richest Man In Babylon has long been regarded as one of the best books on finances.

What began as a collection of leaflets provided to consumers in the 1920s culminated in a book of timeless financial principles, priceless suggestions, and financial tools designed to help you become more financially successful.

You will learn how to control your expenditures, guard your nest-egg from loss, insure a future income, and enhance your capacity to earn.

The more you read the more you will discover pearls of wisdom, such as the Five Laws of Gold and how Work is the Key To Golden Shekels.

If you are looking for a book that reads as easily as a novel but is jam-packed with valuable financial lessons, The Richest Man In Babylon is a timeless classic.

Get The Richest Man In Babylon Here >>

7 – The Automatic Millionaire

Hailed as one of the greatest books on getting rich, The Automatic Millionaire by David Bach shares the story of a low-level manager and a beautician who earned no more than $55,000 per year collectively.

What makes their story extraordinary is how they retired with over $1 million, owned two homes debt-free and put their kids through college.

The natural conclusion is they must have adhered to a strict budget but in The Automatic Millionaire you will see how they achieved their financial goals without:

• Budgeting
• Earning a lot of money
• Summoning a lot of willpower
• Having an interest in money

In fact, this New York Times Bestselling book, which has sold over 1.5 million copies, claims to be a simple one-step plan that can be designed in one hour and it lives up to its promise.

If you are worried about securing your financial future and want a simple plan to achieve your financial aims, The Automatic Millionaire won’t disappoint.

Get The Automatic Millionaire Here >>

What finance books have you read that you would recommend? Let us know what the top personal finance books are in your opinion, we would love to hear from you.

>> Best Stock Market Books For Beginners

>> Top 5 Warren Buffett Books

>> Best Books On Technical Analysis

The article What Are The 7 Best Personal Finance Books? was originally posted on Investormint

When you are job hunting, paying your bills can be a struggle. Without a nest-egg to dip into or a trust fund to pay your way, a credit card is an obvious choice. But can you get a credit card without a job?

It turns out that credit card companies are not so worried about whether you are employed as they are concerned about your income and debt levels. The good news is that means you can get a credit card even if you don’t have a paid position.

So how do you boost your chances of getting a credit card with no job or income?

How To Get A Credit Card
Without A Job

When you apply for a credit card you will be asked to state your total annual income. Even if you don’t earn a fixed salary, you can legitimately claim income from other sources.

When you add up all your income streams, you might be surprised to find you have money from many areas, including:

• Dividend income from stocks
• Interest on savings and bonds
• Social security income
• Alimony income

Even if you have no job, you are permitted to state income to which you have reasonable access. For example, married couples with a joint bank account could reasonably list the income of a partner.

That means even if you don’t have a job or any income, you could still be approved for a credit card. However, income is not the only criterion banks use to evaluate your creditworthiness and set credit limits.

The amount of debt you are saddled with is a key factor used during the approval process too. And here’s what you need to know about how debt relates to the likelihood of being approved for a credit card.

No Job, No Problem –
But Do You Have Too Much Debt?

Credit card issuers care about your income but they also emphasize how much debt you owe when evaluating your creditworthiness.

An applicant with $100,000 of debt may have no problem receiving approval if they have income of $1,000,000. But an applicant with no income and the same amount of debt could struggle to get a credit card.

A key ratio credit card companies use to make approval decisions is the debt-to-income ratio of an applicant. For example, if your mortgage debt payments are $2,500 per month but your income is $1,000 per month, your debt-to-income ratio is 2.5.

If you are struggling to keep up with interest payments on student loans, personal loans, auto loans, or other credit card debt, a 0% Balance Transfer card may be able to to ease the financial strains, at least for a limited time.

Discover-It® and Chase Freedom both offer credit cards that could help you lower your interest rates to zero for a certain time period. If you are in job-seeking mode and need to batten down the hatches on monthly expenses, these cards may just fit the bill.

Get A Credit Card With
No Job Using A Co-Signer

If you have no job, you are still eligible to apply for a credit card and may boost your chances of approval by adding a co-signer to the application.

Applying for a credit card with someone else can be a double-edged sword. On the one hand, you benefit by being able to cite their income. On the other hand, you run the risk of not receiving an approval if they have poor credit.

Before asking a friend or loved one to become a co-signer, have a direct conversation with them to better understand their creditworthiness.

Equally, they will need to trust that you will pay your credit card bills on time and not ratchet up a lot of credit card debt because they are on the hook if you can’t pay.

Become An Authorized User
On A Credit Card

Another option is to become an authorized user which gives you the right to use someone else’s credit card.

If Auntie Mary kindly adds you as an authorized user to her Chase Sapphire Reserve credit card, you are permitted to swipe it to buy things but you are legally free from the obligation to make payments.

While parents may commonly add children who are in college as authorized users, it is a big request of a loved one to add you when you have no job because they take on all the responsibility of paying the bills and need to trust you won’t pile on credit card debt by jetting off on first class flights to Bermuda and the Maldives for beach vacations!

Need Money?
Consider A Personal Loan

If you have no job and are considering applying for a credit card, a personal loan may be a good alternative to credit card debt.

Borrowers with excellent credit scores could look to SoFi personal loans as an option.

Another possibility is to visit your local credit union to enquire what personal loans they offer. You cannot find personal loans from Chase or many other big banks, so a credit union may well be your best bet.

Got Savings?
Apply For A Secured Credit Card

If you lack the income to qualify for a regular credit card, a secured credit card could be a solid alternative provided you have some savings.

Secured credit cards require you to deposit money which in turn acts as your credit limit.

It is a way to build up your credit score by making timely payments until you are eligible to be approved for a regular credit card.

However, you must make those payments otherwise the upfront deposit will be used and may ultimately be forfeited if needed to pay the bills.

Secured credit cards are a way for credit card providers to take little to no risk while offering you a way to boost your credit score.

If you are struggling to receive approval because you have no job or poor credit, start by visiting MyFICO to understand what steps you can take to improve your creditworthiness.

Paying your balances in full and your bills on time goes along way towards boosting your credit score.

Are you clear about how to get a credit card when unemployed? Let us know if you have found other creative ways to pay your bills without having a job.

>> American Express Gold Card Review

>> Why Was My Credit Card Declined?

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article Can You Get A Credit Card Without A Job? was originally posted on Investormint

Can you buy a house with a credit card? The short answer is yes, you can.

But there are a lot of things in life you can do which are not good ideas, and this is probably one of them.

It’s tempting to buy a house with a credit card when you think of all the points or miles you could earn as part of a rewards or loyalty program.

And it also provides a way to get around the hassle of filling out forms when applying for a traditional mortgage.

But the costs of buying a home using a credit card could hurt your wallet much more than you think and offset any cash back, miles, or points benefits.

Here’s why…

The Cost Of Buying A House With A Credit Card

Buying a home with a credit card isn’t as simple as swiping a card at a grocery store checkout.

You will need to show evidence that you can afford a home downpayment when working with a title company during a home purchase.

That means you will need a cash advance from your credit card.

But cash advances are among the mostly costly financing options. Fees of up to 5% are applied to cash advances, meaning that you could pay as much as $2,500 extra if you needed to show proof of $50,000.

No matter what credit card you look at on the market, you won’t find one that offers special rewards for home purchases.

Even if you could earn 1% and transfer your points to a rewards program to get double the points, you would still end up in the red.

But wait there’s more…

Is It A Good Idea To Buy A House With A Credit Card?

Let’s say you found a great home on Roofstock and you also have a sufficiently high credit limit to put the purchase on your credit card.

The problem is your credit limit is most likely higher than your cash advance limit, which is needed to make the purchase.

Plus, you will start paying interest from the day the cash is borrowed, and it will compound daily.

Worse still, the interest paid on cash advances tends to be higher than the interest rates applied to purchases.

In fact, even if you wanted to use your credit card to make a downpayment, you would run into a brick wall because using debt to finance a downpayment is not permitted.

Creative Financing Options For Home Buyers

If you are considering a credit card to make a home purchase, other creative financing options may be more suitable.

Seller Financing

When the home seller becomes the lender, you get to avoid traditional lenders altogether.

Instead of paying the monthly mortgage due to your bank, you would deposit funds into the seller’s bank account.

Usually, you will need to agree terms with the homeowner ahead of time like the repayment schedule, interest rate, and the fallout from a default.

FHA Loan

If you don’t qualify for a conventional mortgage, an FHA loan may be an option.

The Federal Housing Administration (FHA) underwrites loans to borrowers who otherwise may not be approved by a traditional lender.

Many traditional lenders offer FHA-backed loans but keep in mind that you will need to pay a 1.75% insurance premium upfront.

Private Mortgage

A private mortgage won’t be an option for everyone but if you have a deep-pocketed friend who is willing to get you on the property ladder, it is one of the best creative financing options for homebuyers.

By loaning you money, the lender may be able to earn a better return on their savings than is available from a traditional bank savings account or certificate of deposit.

And by borrowing from them, you may be able to secure a mortgage at a lower interest rate than what a conventional bank or credit union charges.

To avoid any sticky situations later on in the event of delinquency or default, set out the terms and conditions of the loan ahead of time.

Dip Into Your Retirement Accounts Without Penalty

Normally, you cannot withdraw money from your retirement accounts, like your 401(k) or IRA, until you reach retirement age. Early withdrawals are usually subject to a 10% penalty fee.

But when you are buying a home for the first time as an individual or married couple, you can dip into your IRA to the tune of $10,000 or $20,000 respectively without penalty.

You will need to act fast if you go down this path because the funds you withdraw need to be applied to a home purchase within 120 days of withdrawal or else penalty charges apply.

If you don’t have an IRA but have a 401(k) instead, you can tap into as much as 50% of it, up to a maximum $50,000. But you will need to return the funds to your 401(k) within 5 years or the 10% penalty charge will apply.

Think of borrowing from your 401(k) as an interest-free loan for five years. Unlike an IRA where you can make a penalty-free permanent withdrawal, you must pay back the amount to your 401(k).

Buy An Option To Purchase A Home

Sometimes it makes more sense to postpone the purchase of a home until can afford the downpayment. But what if you are renting a place that you love and want to own it one day?

A creative option for homebuyers in this situation is to propose a “call option” to the homeowner.

The way it works is you “buy a call option” which gives you the right to buy the home at a fixed price by a certain date.

Let’s say you plan to buy the home within the next couple of years, you could propose a deal whereby you pay 2% of the value of the home today and, in exchange, have the exclusive right to buy the home for a fixed price within the next 24 months.

If you decide to buy the home during that time period, your deposit would be credited towards the home purchase.

Of course, if you renege on the deal, the current homeowner keeps the 2% deposit, which you would forfeit.

Boost Your Credit Score

To avoid buying a home with a credit card or other creative financing options, explore what credit score you would need to get more favorable rates from traditional lenders.

You can visit MyFICO to request a free credit report. Or alternatively, many budgeting apps, like Status Money and Mint, make it easy to access your credit score free of charge.

If your credit score is suffering, check out whether some easy-to-fix issues, like errors on your credit report, are to blame. These can usually be resolved by contacting any of the major credit reporting bureaus: Equifax, TransUnion, or Experian.

Another common cause for a low credit score is too much credit card debt. If you are struggling financially to keep up with credit card payments, consider a 0% Balance Transfer credit card.

Low-balance transfer cards provide a grace period, sometimes as long as 18 months, whereby you pay no interest.

During the period, you won’t benefit from traditional credit card perks, like cash back, points, or miles, but you do buy yourself a runway of time to get into a better financial situation.

The other catch of balance transfer cards is they usually sting you with a fee to move your money, but often this is a lot less than what you would pay in interest charges on your current card, especially if the interest rate is at the high end of the range.

The Bottom Line

Should you buy a home with a credit card? The bottom line is technically you can buy a house with a credit card but the fees you pay for a cash advance may be prohibitively high, so it is usually a better idea to secure a traditional mortgage.

Not sure where to turn? Try out local credit unions, which often have favorable rates, or private lenders like SoFi, who offer mortgages as well as student loans and personal loans.

If you find none of those to be a fit, a creative financing approach to buying a home may be worth exploring as well as big name banks when you have established a good credit score.

Disclosure: Information related to credit cards has been collected by Investormint and has not been reviewed or provided by the issuer of this card.

The article Can You Buy A House With A Credit Card? was originally posted on Investormint

Unlike that time you put your fingers into the cookie jar and got a slap on the wrist as a youngster, lying to credit card companies can lead to bad outcomes because it is 100% illegal.

Here’s what you need to know before you are tempted to fudge the numbers…

Are You Tempted to Lie About Income Earned?

Lying on credit card application income forms is tempting.

Boost your salary a smidge and a credit card company may offer you more credit.

Round down those student loans, auto loans, home loans, or personal loans and you could get access to even more spending power.

With a higher credit limit, you could buy that brand new Cartier watch or Louboutin shoes.

It doesn’t take much for the mind to drift off to a dreamy world of new, luxury goods.

Heck, if you get approved for enough credit, you might even be able to swipe your card and drive away in a new BMW – no more Ubers!

But before plunging head first into the deep waters of credit card debt, step back for a moment and consider the consequences of lowering your actual cost of rent or increasing your true salary on credit card application forms.

Why You Should Not Lie On Credit Card Applications

Sure, it’s tempting to inflate your income a bit to nudge the odds in your favor of getting approved for more credit. But the risks of lying on credit card application forms are grave.

Worst case, you could be slapped with a $1,000,000 penalty for lying on credit card application forms and be sentenced to 30 years in prison.

Credit card companies view lying as outright fraud and take it very seriously.

The reason is obvious. If you are not approved for a higher amount, it is because you most likely cannot afford the compounding costs of credit card interest.

Credit card issuers run calculations to assess the statistical likelihood that customers will pay them back.

When an application is denied, it is because the credit card company crunched the numbers and assessed the risk of delinquency or default to be too high.

> Related: Find Out Your FICO Score

By attempting to skirt the rules, you take on a great deal of risk. You are essentially betting that you are the rare customer who can defy the odds.

Much like the majority of people who think they are a “better-than-average” driver, so too most people may believe that they will be the customer for whom the rules of statistical analysis don’t apply.

But the laws of mathematics are likely to catch up with you if you run the gauntlet of misreporting financial data, so the best advice is to stay honest and jot down accurate figures.

If you earn $80,000 per year and report $83,000 it’s probably not going to have a big impact one way or the other (but you still shouldn’t do it!). However, if you earn $22,000 annually and report income of $83,000 annually, you are asking for trouble.

The Power of Credit Card Companies

Even if you understand the penalties associated with credit card application fraud and are still tempted, consider this…

When you apply for loans or credit cards, banks and providers have every right to ask for documentary evidence to support your income and debt claims.

If you think you can submit salary levels and debt amounts at will because you think those numbers will never be checked, you may be right.

But you may be wrong!

All it takes is for your bank or credit card provider to demand actual bank statements or loan statements for you to be exposed.

And that’s when the proverbial house could come crashing down because once you’ve been found out the dominoes could fall.

In the past, applicants who have been caught lying have been subjected to stiff penalties so there is no reason to think you could escape the long arm of the law.

Even if you get past the application stage and think you are free and clear, creditors can examine your financial situation at any time.

Over time the risks increase and the likelihood of getting away scot-free diminishes.

Worst case if you had to declare bankruptcy, you could still be exposed when legal representatives compare your tax filings with income claims and spot mis-matches.

The bottom line is the risks are simply not worth the rewards.

How To Increase Your Credit Card Limit

If you are tempted to lie on credit card application forms, it’s probably because you want to boost your credit card limit.

To do so legally without resorting to false statements, strive to increase your credit score.

If you have a fair credit score or bad credit, the odds are against you receiving approval for a high credit limit.

To be approved for high-end cards like the Chase Sapphire Reserve℠ card, you will generally need good → excellent credit.

The best strategy to boost your credit score and ultimately gain access to more credit is to demonstrate financial responsibility to creditors.

Pay your balances off each month if you can afford to do so. Make timely payments when bills are due. And be careful of how much credit you use.

When you use more than 30% of your credit limit, you risk being penalized with a lower credit score. High credit utilization is viewed dimly because it suggests that you may be struggling financially to keep your head above water.

Stick to the basics of financial responsibility and you stand a better chance of receiving approval for a higher credit card limit the legal way.

Have your ever been tempted to lie on a credit card application income form? What did you decide to to? We would love to hear from you.

>> Capital One Spark® Business Cash Back Card

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>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article Worried About Lying On Credit Card Application Forms? was originally posted on Investormint

Should you invest in stocks or bonds or real estate?

A dizzying array of selections are available in each asset class:

• Stocks: Dividend-paying, growth, and value
• Bonds: Government, municipal
• Real Estate: Residential & commercial

But don’t be dazzled by the investment options available to you because we’ve done the hard work for you so you won’t be wondering any longer how to invest $10k!

#1: How To Invest $10,000
In Real Estate

Real estate has its fair share of ups and downs when economies slow and stock markets crash, but as an asset class overall it is a solid bet if you follow some golden rules.

The first rule is to define the term asset as something you put your money into that produces cash flow. By that definition, a house you own is not an asset unless you were to rent it out to tenants on say Airbnb.

Investments in residential property, commercial property, and REITs can all produce the regular cash flow you seek.

If you are not swimming in cash, the high costs of buying residential property and commercial property may make you think real estate investing is out of your reach. But these days real estate crowdfunding sites make it possible to get started for as little as $500.

Best Way To Invest In Commercial Real Estate

Rich Uncles is one of the best crowdfunding real estate sites. It provides exposure to the commercial real estate sector and you don’t have to be a multi-millionaire to get your toe on the property ladder.

In fact, as long as you meet certain income criteria and have $500 available to invest, you can get exposure to top tier, triple-net lease commercial properties.

Best Way To Invest In REITs

Not long ago you would have needed to qualify as an accredited investors with a 7-figure net worth or $200,000 in annual income for two consecutive years in order to get access to private market real estate investing.

But these days, only $500 is needed when you invest with Fundrise, an online platform that pools assets from many investors. The monies are then allocated to real estate developers in need of financing.

Unlike traditional real estate deals, which limit your investment to a single property, you can invest $10,000 in real estate through Fundrise and diversify your money to lower overall risk.

#1 Way To Invest In Residential Property

If you have been trying to figure out how to invest $10k in real estate, crowdfunding sites like RealtyShares is worth checking out.

However, if you have more money and want exposure to residential property, Roofstock is a top real estate site that enables you to buy property 100% online.

The pesky problems faced by real investors in the past are largely solved by Roofstock. For example, Roofstock will scout for properties, rate neighborhoods, create financial projections, and even connect you to property managers.

No longer do you need to lift up your sleeves to find a tenant because Roofstock features properties that are income-producing on day one.

#2: How To Invest $10,000
In The Stock Market

When it comes to stock market investing, an eye-watering selection of investment opportunities exist, including:

• Stocks
• Bonds
• Mutual funds
• Exchange-traded funds
• Futures
• Options
• Commodities
• Forex

Where on earth should you begin?

Invest In The S&P 500

According to one of the wealthiest investors of all time, Warren Buffett, the best way to invest 10k is to buy an index fund and hold it for the long term.

You don’t have to be particularly smart, says Buffett, to make a lot of money over time but you do need to be patient. You must be willing to park your money in the stock market and not touch it.

The S&P 500 (ticker symbol: SPY) represents the top 500 companies in the United States, and your investing journey begins by placing a buy order at your favorite broker, such as thinkorswim or tastyworks.

It turns out that patiently watching your money grow over time is a challenging feat for most people, who are prone to an action bias, meaning the more they trade the better they think they will do.

When you invest in an index fund or a very low fee total stock market fund from Vanguard, like VTSAX or VFIAX, your bet is that America will do well over time and ultimately the stock market will reflect the increase in economic prosperity.

The hardest task will be to sit on your hands and take no action during a stock market crash or a big economic downturn, but over time the “smart money” has historically done well by staying invested.

Stay Away From High-Fee Mutual Funds

Mutual funds have their merits but they are not all created equal so you should be wary before investing your hard-earned $10,000 into them.

Here are just a sampling of the mutual fund fees you need to watch out for:

• Mutual fund load fees that can span as high as 5% of the amount invested
• Trailing 12b-1 fees that pay financial advisors regularly
• Fund fees that pay operational expenses and managerial fees

Combined these fees can seriously hurt your investment returns, so instead consider an income-generating stock market investment strategy.

Invest In Dividend-Paying Stocks

Did you know that as much as 95% of total stock market returns over most of the 20th century stemmed from reinvested dividends, not price gains according to Jeremy Siegel of the Wharton School of the University of Pennsylvania.

As attractive as it is to buy Amazon or Facebook or Alphabet, the reality is that none of those companies pay a dividend while so-called “boring”, dividend-paying companies like Coca Cola are the ones that have created the bulk of long-term value for patient investors.

So, if you are going to purchase individual stocks as opposed to buy an index fund, dividend-paying stocks are the way to go.

Generate Income From Covered Calls

Covered calls are among the best ways to proactively generate income when you own a portfolio of stocks.

What is a covered call? A covered call is nothing more fancy than a combination of a long stock and the sale of call options against the stock.

For example, if the share price of a stock you own is trading at $46 per share, you could sell a call that pays you a fixed amount of money to agree to sell the shares at $50!

That’s right, someone will actually pay you to agree to sell your shares at a higher price.

Why would anyone do that?

Imagine the stock rallied from $46 to $60, the “catch” is because you agreed to sell your shares at $50, you miss out on the share price gain from $50 to $60 but you do still get to keep the money you pocketed by selling the call.

The person you paid gets to enjoy the gain in share price from $50 to $60 minus the amount paid to you.

Top online options brokers like thinkorswim make it easy as pie to sell calls against stocks you own.

#3: Best Way To Invest
$10k Short Term

While investing in the stock market and real estate are powerful ways to grow $10,000 long term, they are not great strategies when you need to keep your money liquid.

If you know that you have an upcoming purchase to finance, whether a wedding, a home, a car, or some other big purchase, keeping your principal safe is priority #1.

After that, the goal is to squeeze a little juice out of the lemon to create some lemonade in the form of interest.

And the problem with investing in the stock market is your portfolio balance may go on a rollercoaster ride short-term.

Similarly, when you invest 10k in real estate, you often need to tie up your money for long time periods so it’s generally not a good strategy when your time horizon is short.

So, what is the best way to invest 10k short term?

Invest In Certificates of Deposit Or Bonds

Certificates of deposit are similar to savings accounts, but your money is tied up for a fixed time period.

The lock-up time can be as short as a few months or can be as long as many years.

To maximize your rates of return while also maximizing your liquidity, consider creating a CD ladder.

Or if you want greater liquidity and no lock-up time period, government bonds are one of the most liquid markets of all.

To earn a slightly higher interest rate, municipal bonds are a popular choice but make sure that your local government has its financial house in order before loaning them money. Some states, like Illinois, are in a world of financial hurt and you would be wise to think twice before parting with your money.

The bottom line is if you have a long term horizon, real estate and stock market investments may fit the bill. However, if you need short term liquidity and want to earn some interest while parking your money somewhere, bonds and certificates of deposit may be your best bet.

What is the best way to invest 10k that you have discovered? Share your ideas below, we would love to hear from you.

>> How To Retire Early

>> What Are The Best Online Brokers?

>> Find Out The Best Stocks To Buy Now!

The article What Is The Best Way To Invest $10,000? was originally posted on Investormint

If you are like most people, you exchange hours of your life that you can never get back for income to pay your bills. But how do you make that same money without lifting a finger? How do you become the yacht owner kicking back with their feet up while someone else slaves away from 9 to 5?

Smart passive income streams are the key to greater wealth and, these days, plenty of ways to make money online and offline exist without being chained to an office desk.

Read on to view 7 of the best passive income opportunities…

Passive Income Stream #1:
Automate Your Investments

Most people have just one way to make money: work. But when you toil for money, you limit the amount you can make because there are only so many hours in day. Even if you work three jobs and barely sleep, your total income is capped to a fixed level.

Rich folks make more money than the average Joe or Jane Bloggs because they don’t exchange their hours for dollars. Instead, they make investments that yield income passively.

By investing in publicly traded companies, like Facebook or Alphabet, rich people harness the efforts of thousands of employees. And as these companies grow, investors make money without shedding a drop of sweat or writing a single line of code.

But how do you find the best companies to invest in? Unless you are a professional investor, it is nearly impossible to beat the market, so your best bet is to automate your investments.

To earn passive income from investing, check out the top robo-advisors like Betterment, Personal Capital, and Ellevest. Each of these robo-advisors will create a diversified portfolio for you that matches your risk tolerance and financial goals.

If income is your priority, you may find more bonds than stocks in your portfolio. These bonds and any dividend-paying stocks can generate the passive income you need to pay your bills, and perhaps even one day retire.

#2: Invest With
Real Estate Crowdfunding Sites

Not long ago, the best ways to make money in real estate included buying residential or commercial real estate.

Residential real estate investing used to be a tough slog. You had to find the property, get a loan from a bank, refurbish it, and rent it. Then you were responsible for all the maintenance when things went wrong and you had to manage pushy tenants too.

Or you needed deep pockets to buy commercial real estate and take on even more risk by putting a lot of your eggs into a single basket.

But these days, you can invest in property using the best real estate crowdfunding sites.

For as little as $500, you can gain exposure to residential or commercial real estate, and avoid all the manual slog of renovating a place.

Depending on which type of property investing takes your fancy, an online real estate crowdfunding platform most likely exists to help you create passive income.

Here are just a few of the top crowdfunding real estate sites:

• Rich Uncles specializes in commercial real estate
• Fundrise features eREITs
• LendingHome caters to investors seeking high yield
• Realty Mogul is a marketplace featuring residential and commercial opportunities
• Roofstock is designed for investors who want to own property

#3: Earn Passive Income From
Peer-to-Peer Lending

Have you ever wanted to be the bank earning money from loan repayments instead of paying off pesky loan balances each month?

If so, peer-to-peer lending might be the closest thing to actually being a bank because you can loan money to others and earn passive income when they pay you back.

Peer-to-peer lending is one of the best ways to make passive income but how do you know which borrowers are creditworthy and will pay you back?

As it turns out, marketplace platforms like Prosper rank borrowers by risk level. The more risky the borrower, the higher the interest rate you will earn, but commensurately the higher the chances of loan default.

If you are a nervous nelly, you can choose the most creditworthy borrowers and earn more modest returns.

Either way, peer-to-peer lending offers a source of passive income that is hard to match.

#4: Make Passive Income From
Dividend-Paying Stocks

Here is a startling fact: During most of the last century, 95% of the total stock market returns were due to dividend reinvestments.

According to Professor Jeremy Siegel of the Wharton School of the University of Pennsylvania, who conducted the study, dividends as opposed to capital gains are the key to stock market riches over the long-term.

Sure, it’s easy to be tempted by a quick buck when you see stocks like Amazon soar in bull markets, but a smart passive income stream is created by selecting a diversified group of dividend-paying stock like Ventas instead.

On any given year, high-flying stocks like Amazon or Twitter may enjoy eye-wateringly high returns but over a long timespan, the returns from dividend-paying stocks usually win out.

#5: Generate Passive Income
From Home

Got a spare bedroom in your home or apartment that is gathering dust?

If you are trying to figure out how to make passive income, your home may be an untapped goldmine.

Airbnb is tailor made for people looking to pocket extra income from renting out a bedroom or home to others.

You don’t have to own an investment property to make money with Airbnb. Although some Airbnb renters will want the privacy of their own home, others will be perfectly happy to simply rent a room and share your kitchen and dining areas.

In some high-priced cities, like New York and San Francisco, renting out a room or home on Airbnb can add up to thousands of dollars in extra income each month.

If the idea of renting out your place to a complete stranger doesn’t appeal to you, the good news is renters are rated on Airbnb, so you can see which ones have a good reputation before you open your doors.

#6: Passive Income Opportunity:
Refer Your Friends

Got a lot of friends who would like to save money? If so, then referral marketing may be an easy way to earn extra bucks each month.

Lots of companies grow through word of mouth referrals. And to give you an extra nudge to tell your friends, many pay you a referral fee when your friend signs up too. Not only do you get paid, but your friend also enjoys a discount.

Uber is probably the best known company to adopt this growth strategy but it is by no means alone. For example, when you download the Personal Capital app and log in you will see a Refer a Friend button on the home screen.

In some big cities like San Francisco where tons of ambitious companies are looking to grow fast and willing to pay a premium to do so, you can potentially earn hundreds or even thousands of dollars extra each month from referrals.

#7: Make Money From Content

You’ve got skills and knowledge that other people need. And all that information in your head can make money, but how?

One powerful passive income opportunity is to write a book that keeps on selling long after you polished off the last paragraph.

On Amazon, you can self-publish a book and earn an income any time someone buys it.

If you target a popular area like health, it may be difficult to stand out from the crowd but if your expertise is in a niche category you may be able to earn a pretty penny.

Another way to create content that sells is to start a podcast. It wasn’t long ago that you would have needed to be a radio host to be heard by the world, but these days all you need is a microphone and a computer.

Or if you like being in front of the camera, YouTube is another channel that pays content producers a passive income stream when viewers spend a certain amount of time watching videos.

Keep in mind that when you publish videos on YouTube or start a podcast, it is hard to build up an audience overnight but consistent content production can lead to a loyal following that pays you handsomely. In fact, some of the top podcasts earn tens of thousands of dollars per episode for their hosts!

Do you have other ideas how to make passive income? What are the best passive income sources you’ve come across? We would love to hear from you.

The article 7 Passive Income Streams To Get Rich While Sleeping was originally posted on Investormint

With options, you can do so much more than rely on dividend income or rising share prices to make money.

Whether you are looking to generate extra cash flow or protect your stocks from falling share prices, call and put options can help you to achieve your financial goals.

But when you compare call options vs put options, how do they differ and what do you need to know to make smarter trading decisions?

Calls vs Puts: Options Basics

Unlike stocks, calls and puts are traded in contracts. Usually one contract is equivalent to 100 shares.

If you buy 100 shares of ABC stock for $30 per share, it would cost you $3,000. But when you buy a call option or a put option it might cost you say $2 per share or $200 per contract.

The lower cost of buying options compared to buying stocks makes options very attractive.

Stock Trade vs Options Trade

To compare the profits of stock trades vs options trades, imagine the stock priced at $30 per share rallied to $100 per share.

In that scenario, you would make $70 per share or $7,000 in profits having invested $3,000.

But when you buy a call option for $2 per share or $200 per contract, you could make almost as much ($6,800) when the stock rallies to $100 per share yet risk a much smaller amount.

Whereas the stock buyer had to fork over $3,000 to buy 100 shares, the call buyer only had to shell out $200 to control the same 100 shares.

What’s the Catch Trading Options?

If you are new to options, this might be the time you think to yourself “wait, this sounds too good to be true”!

There is a catch and it is that options expire after a certain time period whereas stocks do not.

So, if the stock doesn’t move as you had hoped but instead stays at $30 per share, you lose nothing but time buying the stock whereas you could lose the entire $200 purchasing the call option.

The takeaway is that when you buy options, the underlying stock needs to move up or down to make money.

However, when you sell options, you can make money even if the stock doesn’t budge by even a dime.

Sound complicated? Let’s make it simple by highlighting the differences between calls and puts.

How Are Calls And Puts Different?

When you want to own a stock like Facebook, you begin the trade by buying shares. But when you trade calls or puts, you are not limited to simply buying options. In fact, you can start a trade by selling options too!

So, you can both buy call and put options and you can sell call and put options to begin trades.

Depending on your outlook for a stock’s share price, each option trade has its merits.

When you expect stocks to rise, you can buy call options or sell put options.

And when you think stocks will fall, you can buy put options or sell call options.

But why would you buy calls vs sell puts? And why buy puts vs sell calls?

Here’s the short answer…

The bottom line is if you expect a stock to soar higher, buying calls will make more money than selling puts.

And if you expect a stock to decline in price, buying puts will make more money than selling calls.

How Much Can You Make Buying & Selling Options

When you buy call and put options, you continue to make money as the underlying stock rises or falls respectively.

However, when you sell calls or puts, the most you can make is a fixed amount called the option premium, which you receive at the beginning of each trade.

How Much Can You Lose Buying & Selling Options

Another big difference is the risk levels you take on when buying options vs selling options.

Calls vs Puts: Rights & Obligations

When you buy options vs sell options, you will either enjoy certain rights or take on certain obligations.

For example, when you buy a call option, you pay for the right to buy the underlying stock at a fixed price for a certain time period.

Rather than shelling out $30 per share to buy a stock, you could pay $2 for a call option, and if the share price were to rise to $40, you could exercise your right to buy the stock for $30!

Similarly when you buy put options, you could pay $2 per share to buy a put option on the stock trading at $30 per share and, if it fell to $20 per share, exercise your right to sell the stock at $30 per share – even though it is trading in the market at $20!

Obligations When Selling Call Options

However, when you sell options, those rights are replaced by obligations. For example, when you sell a call option, you may be obligated to sell stock if the share price were to rise above a certain fixed level agreed upon at the start of the trade.

Because you incur this obligation when selling calls, it is usually smarter to own stock before selling calls, otherwise the strategy is labeled as a naked call.

So, if the share price were to rise above a certain level, and you were obligated to sell the stock, you would have shares to sell. If you didn’t own the shares originally, your broker would place short stock in your account.

How To Get Paid To Buy Stocks At Lower Than Market Prices

When you sell put options, you may be obligated to buy stock if the share price were to fall below a certain threshold price.

Selling puts is a popular way to get paid to agree to buy stocks at lower prices.

For example, you could decide to sell strike $25 put options on a stock trading at $30 per share.

If the stock were priced above $25 at options expiration, you would keep the option premium collected when selling the puts.

However, if the stock fell to say $20 during the time period before the options expired, you would have a contractual obligation to buy the stock at $25 per share.

Why would anyone agree to this?

Selling Puts vs Buying Stocks

When you compare two scenarios when the trade began, you will see the attraction of selling puts.

On day one, you could buy stock for $30 per share but if it fell to $20, you would lose $10 per share.

Or you could sell puts that obligate you to buy stock at $25 per share and, if the stock fell to $20 per share, you would lose just $5 per share minus whatever premium you received selling puts.

So, your loss is lower when selling puts at strike prices below the current share price compared to buying the stock in the market today.

You may then ask why buy stocks at all? Why not always sell put options?

While it is better to have sold puts when share prices fall because losses are lower than buying stocks at the outset, more money is made buying stocks vs selling puts when share prices rise.

If the stock rallied to $40 from $30 per share, the stock buyer makes a $10 profit while the maximum the put seller can profit is the premium collected.

Do you have a good understanding of the differences between call options vs put options? Have you traded options before, what trading tips can you share? Tell us in the comments below.

>> Best Online Options Trading Brokers

>> How To Trade Options

>> Which Options Platform Is Best: thinkorswim vs tastyworks?

The article Call Options vs Put Options For Dummies was originally posted on Investormint

As a kid, Buffett used to buy six packs of Coca Cola for a quarter and sell them individually for $0.06 each, earning a 20% profit on his hustle.

In later years, he bought farmland, a textile mill called Berkshire Hathaway, an insurance company, See’s Candies, a furniture store, a railway, and made countless other investments.

While he jokes that some investments were no better than a used cigar with one puff left, his investments on the whole have grown in value to hundreds of billions of dollars and made him one of the richest investors in the world.

Buffett has said that one of the most important traits needed to become a successful investor is temperament. Sometimes the market will be irrationally exuberant and assets will be priced too high and, at other times, bargain prices will be available to deal-seeking investors.

The trick to becoming extremely rich is to know when stocks are on sale and which companies to buy. To help you along the way, we have researched the best Warren Buffett books to read.

Let’s dive in…

1 – The Snowball: Warren Buffett
and the Business Of Life

Of all the books written about Warren Buffett, The Snowball is probably the most unique.

What makes The Snowball different is that Buffett gave Alice Shroeder, the author, unprecedented access to speak with his wife, children, friends, and business colleagues.

He gave her rare access to interviews where he shared stories about his childhood and even opened his files to her.

With this unprecedented access, Shroeder shares insights about his struggles, failures, triumphs, opinions, work, and wisdom.

The narrative is about as close to a Warren Buffett memoir as any biography on the famed Oracle from Omaha.

You will discover how the son of a Congressman grew up during war times and managed to accumulate massive levels of wealth while bringing his partners and countless Berkshire Hathaway shareholders along for the ride.

As you read the book, you will peer into the mind of the Sage of Omaha and discover how a billionaire investor thinks, so you too may be able to make smarter investing decisions.

You will also learn how he managed to build an empire of wealth from his modest headquarters in Omaha.

Even if you are not an avid investor, you will most likely find The Snowball to be a page-turner. It goes far beyond uncovering Buffett’s investing prowess and delves deeper into his complex personality, principles of life, and hopes for his legacy.

Get The Snowball: Warren Buffett and the Business of Life Here >>

2 – Buffett: The Making of
an American Capitalist

In Buffett: The Making of an American Capitalist, Roger Lowenstein explains Buffett’s investment strategy to aspiring stock market investors.

Followers of Buffett know that he has a long term outlook rooted in finding companies that are undervalued and sticking with them until the value is realized.

This book is a powerful guide to help you learn about company moats and other key factors he looks for when buying shares.

You will learn how Buffett targets companies with large and dominant market shares so they create monopolies that sustain pricing power over decades. And you will learn about the reasoning behind some of his favorite investments, like Coca Cola, and his commitment to never sell shares of some companies.

Beyond learning about his stock picking, you will gain deeper insights into his apparent contradictions, such as why he lives a modest lifestyle as a billionaire, avoids Wall Street trading like the plague, and is a brilliant dealmaker yet has a grandfatherly image.

Thanks in part to three years of access to friends, family, and business associates, Lowenstein also shares the very human side of the famed Omaha investor and reports on Buffett the man as much as Buffett the investor.

Get Buffett: The Making of an American Capitalist Here >>

3 – The Essays of Warren Buffett

In The Essays of Warren Buffett, Lessons for Corporate America, you will have access to perhaps the most comprehensive compilations of Buffett’s essays.

Lawrence Cunningham’s book is frequently cited as the most autographed book by Buffett about Buffett.

The book is commonly lauded as a masterpiece for its arrangement of essays written by Buffett. Among reviewers it has frequently been cited as the gold standard in its genre.

The Essays of Warren Buffett earns high marks for its flow of ideas and valuable wisdom about markets, economies, and investing as a whole.

In the book, Buffett discusses his philosophies on other matters too, such as why he issues no dividends at Berkshire Hathaway.

He also shares thought-provoking stories about investing in farmland and real estate that will inform readers about how to make better investment decisions over the long-term.

The bottom line is if you want a book that arranges the writings of perhaps the world’s most famous investor and distills it into an easy read, this is the book to get.

Get The Essays of Warren Buffett Here >>

4 – The Warren Buffett Way

Robert Hagstrom’s The Warren Buffett Way has become one of the most popular books about Berkshire’s CEO.

The book explores the investment and business strategies that have led to Buffett’s spectacular success as an investor.

It also explains the behavioral aspects of investing that hinder many self-directed investors from maximizing their investment returns.

For example, you will learn about the theory of “loss aversion” and why investors overweight the pain of losing money.

And you will discover how Buffett maximizes returns by staying rational through market cycles of euphoria as well as periods of gloom and doom.

What Hagstrom explores in the book is how investors can stomach the pain of uncertainty and loss in the face of rollercoaster share prices and stay focused on the long-term.

Get The Warren Buffett Way Here >>

5 – Warren Buffett and
the Interpretation
of Financial Statements

For investors who want a deeper dive into the nuts and bolts of what the Oracle of Omaha considers when making investment decisions, Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage is a must read.

You don’t have to be a financial whiz kid to get a lot out of this book by Mary Buffett and David Clark.

Newbies will have their eyes opened to big ideas and principles applied by Buffett when scrutinizing financial statements.

Some of the financial lessons you will learn in this book include:

• Time-tested dos and don’ts for analyzing financial statements
• How Research & Development costs can doom a business
• Finding out how much debt is too much for a business to handle
• How to value a company using financial statements like Buffett
• Which companies to avoid no matter how cheap they seem

Get Warren Buffett and the Interpretation of Financial Statements Here >>

What are the best Warren Buffett books to read in your opinion? Share your list of Buffett books, we would love to hear from you below.

>> How Did Warren Buffett Get So Rich?

>> Lessons From Warren Buffett’s Shareholder Letter

>> How To Retire Early In 5 Simple Steps

The article Top 5 Warren Buffett Books was originally posted on Investormint

The short answer is it depends on where your money is going? A domestic wire transfer may be faster than an international transfer.

Domestic wire transfers can be lightning fast whereby money arrives within a business day or two.

However, when you are sending money abroad, it make take a little longer, often three to four days is typical.

To understand how long it takes to transfer money, you first need to know what is a wire transfer.

What is a Wire Transfer?

A wire transfer is simply an electronic transfer of money between banks or credit unions.

When you are sending money abroad, your bank will notify a foreign bank that money is on its way using a secure system, called SWIFT.

The system used to actually send money is called CHIPS or Fedwire.

When domestic bank-to-bank transfers take place, it’s done through the Fedwire system, which uses the Federal Reserve System and a unique bank identifier called the ABA routing number.

How Long Does A
Wire Transfer Take?

When you are sending money domestically, same-day transfers are possible. However, it will usually cost you a pretty penny for the convenience and speed.

In order for money to arrive on the same day, you will also need to initiate the transfer before a certain time of day.

Regular domestic transfers take up to two business days while international transfers usually take anywhere from three to four days.

Because of the delays in transferring money abroad, companies like Revolut have innovated using technology to make international money transfers (note: not wire transfers) free.

Other overseas money transfer companies include Xoom and Remitly. Like Revolut, they compete with Western Union when it comes to fees and speed.

Why Use A Wire Transfer

When the security of your money is a priority to you, a wire transfer is generally the best choice to move money to another account.

International SWIFT and IBAN wire transfers are not completely free of security risks but domestically in the United States, it is very difficult for a thief or hacker to successfully pull off a wire transfer scam.

Because personal identification is needed to set up a bank or credit union account, a crook would need to impersonate you in order to get ahold of your money.

You should be careful wiring money via Western Union or a cash-based money transfer service whereby the person picking up the cash may differ from the intended recipient.

For merchants, wire transfers are a better choice than checks, which can take significantly longer to arrive.

If you run a business whereby the creditworthiness of your customers is a concern, a wire transfer is also better than a check which may bounce.

How To Do A Wire Transfer

Whether you are sending money via a Chase wire transfer, Bank of America wire transfer, Wells Fargo wire transfer, or any other bank or credit union, the steps will be similar.

Sending Funds

When sending funds, you will need the following information:

• Bank name where the money is being sent
• Account number of the person to whom money is being sent
• Receiving bank’s ABA number

International wire transfers may require a SWIFT number or IBAN code.

Receiving Funds

When receiving cash funds via money transfer, you will need your driver’s license, passport, or other identifying information, which may include a utility bill.

For a wire transfer, the money should simply be deposited directly into your bank account so no extra effort is required on your part.

How Much Are Wire Transfer Fees?

At major financial institutions, wire transfer fees usually start at $15 and can go as high as $50.

Fees depend largely on whether the wire transfer is domestic or international, and the bank you choose. It also varies by whether the wire is incoming or outgoing.

Some financial institutions, such as USAA, Capital One 360, and Fidelity, even make domestic wire transfers free when certain conditions are met.

Others like Wells Fargo, Citibank, Bank of America and Chase charge around $15 for domestic incoming wire transfers and as high as $30 for outgoing domestic wires.

If you want to send an outgoing international wire transfer, it’s hard to find a bank charging much less than $35. The high end of the range is $50, which is the fee U.S. Bank charges.

Exchange Rate Fees

If you are sending money overseas, it is best to ask your financial institution whether exchange rate fees apply.

When U.S. dollars convert to some other currency, a spread markup may be applied which can be a significant cost, often as much as a few percentage points of the overall amount sent.

Credit Card Fees

When you rely on your credit card for a wire transfer, you will usually pay through the nose.

Cash advances fees are charged and they incur higher interest rate charges than the rates charged on purchases, so it is probably best to fall back on your credit card only as a last resort.

Other Ways To Send Money

Cleared funds, meaning money that can be withdrawn, are used for wire transfers.

Funds that are not cleared are categorized as pending, and are restricted from use.

If you need cleared funds but a wire transfer isn’t a feasible option for some reason, a bank cashier’s check is another way to send money.

Other ways to send money include money orders, online payment services, and money transfer services.

Typically, you cannot send as much money via money order, which is also considered a little less secure than a wire transfer.

Peer-to-peer payment services like Venmo, Paypal, Google Wallet, and even Facebook Messenger all make it possible to send money online to another person.

While money transfer services like Xoom, Remitly, Revolut, MoneyGram, and Western Union all facilitate sending money overseas.

Wondering how long does a wire transfer take at your bank or credit union, contact them directly to enquire whether money arrives faster if you send it early in the morning versus the afternoon. And let us know where you have found the cheapest wire transfers, we would love to hear from you.

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The article How Long Does A Wire Transfer Take? was originally posted on Investormint

If you are looking for a more meaningful life that liberates you from the shackles of ego or want to live a more purposeful, meaningful, and creative life, you will be guided in many of these books down a path of self reflection to help you achieve your spiritual aims.

One of the best books, The Book of Joy, was born from a week spent together by two of the world’s most respected authorities on spirituality and humanity, the Dalai Lama and Desmond Tutu.

The Book of Joy:
Lasting Happiness in a Changing World

The Dalai Lama and Archbishop Desmond Tutu came together to bring one of the best books on meditation to the world.

In The Book of Joy: Lasting Happiness in a Changing World, they share unique insights into their life’s experiences.

Both reflect on their lives, each of which was filled with pain and tumult. Yet readers are treated to a transformative journey where you learn how they each found joy, courage, and peace amid the turmoil.

What You Will Learn In The Book of Joy

The purpose of the book is to answer the question how do you find joy when life is filled with so much suffering?

Both authors are among the most joyful people in the world so how did they conquer the challenges of life to find sustained happiness?

When you read The Book of Joy, you will learn the Eight Pillars of Joy, which in the view of the Dalai Lama and Archbishop Desmond Tutu are foundations of lasting happiness.

From their stories, you will learn acquire wisdom about the daily Joy Practices that anchor their spiritual lives and provide an emotional foundation for readers.

It ranks among one of the best books on meditation and self transformation.

Get The Book of Joy Here >>

The Untethered Soul:
The Journey Beyond Yourself

In The Untethered Soul: The Journey Beyond Yourself, Singer helps you to release painful memories of the past, stay in the present moment, achieve happiness and improve your relationship with the world around you.

The author, Michael Singer, strives to help you to transform your relationship with your inner being and earned a #1 New York Times Bestseller in the process.

What You Will Learn In The Untethered Soul

Through the process of Gyana, Singer shows you step-by-step how to connect with the Source via yoga and the intellect.

You will learn the essence of spiritual teachings and follow an instructive meditation process to unbind past hurts and restrictions with a view to freeing your soul.

If the experiences of other readers is anything to go by, you may be challenged both intellectually and psychologically by a process of introspection.

Those suffering from lack of self-belief and the limits of ego will be guided down a path towards inner freedom and a richer, more creative life.

Get The Untethered Soul Here >>

10% Happier: How I Tamed The Voice In My Head, Reduced Stress Without Losing My Edge, and Found Self-help That Actually Works

In 10% Happier: How I Tamed The Voice In My Head, Reduced Stress Without Losing My Edge, and Found Self-help That Actually Works, Dan Harris shares a riveting spiritual journey that almost any working professional will relate to right away.

As a news anchor in a hyper-competitive world where the latest news stories and scoops make or break careers, Dan Harris had a virtual breakdown on live TV.

He discovered that the inner voice which had compelled him to progress in his career was also his biggest liability.

If you struggle with your inner dialog and find it to be a hindrance to your own personal and professional success, 10% Happier is a page-turner that should help you find inner peace.

What You Will Learn In 10% Happier

In 10% Happier, Dan Harris shows you how to virtually rewire your brain and even lower your blood pressure.

Like most people who start on a path of meditation, Harris assumed the inner voice interrupting his early meditations signalled that he was doing it incorrectly.

Over time he acknowledged that inner voice and found a way to rein it in.

By so doing, a life of substance abuse and high blood pressure that culminated in an on-air breakdown was transformed to a spiritually enlightened life.

The lessons Harris discovered along the way can be applied by almost anyone.

Of all the books on the list, 10% Happier ranks among the easiest reads as well as one of the best books on meditation and mindfulness.

Get 10% Happier Here >>

Meditations From The Mat:
Daily Reflections on the Path of Yoga

For newbies, yoga may seem like an easy weekend excursion that involves some stretching, relaxation, and holding a few poses.

But experienced yoga practitioners know that both body and mind are part of the journey.

Yoga is not for the faint of heart.

The more you take the plunge into the world of yoga, the more poses you learn and the more you discover how they can be beneficial to you.

In Meditations From The Mat: Daily Reflections on the Path of Yoga, 365 daily reflections help you to integrate mindfulness into everyday life all year round.

What You Will Learn In Meditations From The Mat

Yoga teacher, Rolf Gates, provides instructive, daily meditations that are based on yoga practices.

Not only will you learn about the types of yoga poses and practices, but you will also discover the healing benefits of yoga.

Gates shows you how to apply yoga teachings to real-life situations as part of illuminating stories.

Whether you are learning the lotus position for first time, or more advanced yoga poses, including shavasana, kapotasana, uttanasana, navasana, or salabhasana, Meditations from the Mat will complement your journey of yogic discovery.

Get Meditations from the Mat Here >>

Little Book of Mindfulness

Dr. Patrizia Collard wrote this book to help meditation beginners find easy ways to practice mindfulness.

In the Little Book of Mindfulness, she shows you how to let go of stress without relying on mantras or chants, or even carving out special times of the day to meditate.

What You Will Learn In The Little Book of Mindfulness

The Little Book of Mindfulness is one of the best books on meditation for beginners.

It is jam-packed with over 30 techniques that take no more than 5-10 minutes per day.

Your day-to-day activities are a key focus of the book, so that you can improve ordinary commonplace day-to-day experiences.

For example, you can learn to eat with more pleasure and appreciate the world around you to a greater extent.

Ultimately, the goal is to help you to find ways to apply mindfulness even in the most mundane of life’s daily experiences and find more peace, joy, and gratitude in your life.

If the idea of living more in the present appeals to you then the Little Book of Mindfulness is a must-read.

Get the Little Book of Mindfulness Here >>

What meditation books have you read that you would recommend? Let us know what the best books on meditation are in your opinion, we would love to hear from you.

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The article What Are The Best Books On Meditation? was originally posted on Investormint

Even though purchasing a home is costly at the best of times, there are solutions to help you buy a home with poor credit.

Nevertheless, if you are not in a rush to buy a home, take the time to improve your credit score because mortgage rates are usually lower for borrowers who are more creditworthy.

And even a small difference in interest rates short-term can make a big difference over the long-term when you add up your mortgage payments.

So, what are the secrets to buying a house with bad credit?

Can You Buy A House
With Bad Credit?

Some people may have poor credit but a decent savings nest-egg. If you are lucky enough to be cash rich despite having bad credit, you could consider making a larger down payment on your home purchase.

At the end of the day, the bank or credit union you borrow money from to buy your home will categorize you based on a risk rating. And the lower your mortgage amount, the lower the risk to the bank – all else being equal.

But what if you are interested in buying a home with poor credit and don’t have cash saved up?

How To Buy A Home
With Bad Credit

To qualify for a mortgage when you have bad credit, you could add a co-signer who is creditworthy.

The co-signer is taking on the risk of loan default when they sign on the dotted line, so it’s by no means a commitment to be taken lightly.

After all, a bank or credit union who says no to lending money to you but yes to lending money to you and a co-signer is essentially transferring default risk to your co-signer.

If you fall behind on your mortgage payments, your co-signer will be saddled with the burden also to make good on the loan.

Worst case, if the loan goes into default or the house goes into foreclosure, your co-signer may suffer significant damage to their own credit score.

So, if you are trying to figure out how to buy a house with low credit, a co-signer is an option but ideally for their sake at least, not your first choice.

Which means when you are purchasing a home with bad credit, some other options are worth checking out first.

Steps To Buying A House
With Bad Credit

The first step to buying a house with bad credit is to explore a Federal Housing Administration loan, otherwise known as an FHA loan.

You may be eligible to qualify for a mortgage with a credit score as low as 580 but you must be able to make a down payment equivalent to at least 3.5% of the total price of the home.

FHA loans are available to people with lower credit scores than 580 but then a 10% deposit must be made.

The cutoff to qualify for an FHA loan is usually a credit score of 500.

Because the downpayment is low and your credit score does not have to be great to qualify for a mortgage, an FHA loan is one of the easiest ways to buy a house with bad credit.

Are FHA Loans For First Time Home Buyers Only?

No, you don’t have to be a first time home buyer to qualify for an FHA loan.

What Is The FHA Loan Limit?

In high cost areas, the FHA loan limit is $679,650 and the minimum amount is $294,515.

Is Private Mortgage Insurance Required on FHA Loans?

PMI or Private Mortgage Insurance comes in two forms with an FHA loan:

1. 1.75% of the loan amount upfront
2. 0.45% → 1.05% annually

Can I Buy A House
With Bad Credit?

If you are wondering can I buy a house with bad credit without a co-signer or via FHA loan, the short answer is perhaps… if you have a generous and rich benefactor.

Aunt Sallie or Uncle Tom may be the answer to your homeownership challenges if they have deep pockets.

You could ask them or another wealthy person for a private mortgage which could turn out to be a win-win.

For example, if Aunt Sallie were to loan you $500,000 at a rate of 5% per year, it might be a much better rate of return than she can earn in a bank or from a certificate of deposit.

At the same time, you may not be able to borrow from a bank or credit union at a rate as low as 5%, so it creates a win-win for you both.

Ideally, you should draw up a legal agreement so worst case scenarios are planned out ahead of time.

You would both need to think about difficult circumstances like how long Aunt Sallie would let you forego on payments if you are unable to pay her back.

While it’s got some kinks to iron out, a private mortgage can be one of the best ways to buy a home with bad credit.

Alternatives To Buying A Home
With Bad Credit

If a private mortgage, FHA loan, large downpayment, or co-signer are not viable options, what other alternatives do you have to buy a house with poor credit?

A good place to begin is the source of the problem, your credit score.

Spend time investigating why your credit score is poor and look to fix it. Sometimes, a poor credit score can be due to errors on your credit report.

Step 1: Check Your Credit Score

The first step is to check your credit score online at MyFICO.

Many credit card issuers also provide credit scores free to cardholders. For example, Chase Sapphire Reserve cardholders can view credit scores at no cost.

Even free budgeting apps like Mint make it easy to check your credit score online at no cost.

Step 2: Fix Credit Report Errors

You can never be too careful with your personal information these days, and credit report errors are a good place to be extra diligent.

If you find some information you believe to be inaccurate, write to the credit bureau informing them of the error.

Common credit report errors include:

• Closed accounts reported as open
• Identity theft resulting in false accounts
• Accounts tagged to a person with a similar name
• Financial accounts reported incorrectly as delinquent
• Incorrect credit limits listed

Step 3: Pay Off Your Credit Card Balances

Few better ways to increase your credit score exist than to pay off your credit card balances in full.

If you are struggling financially to keep up with credit card payments, consider a balance transfer card whereby you can enjoy lower interest payments during a grace period.

For example, the 0% Balance Transfer card from Discover provides a grace period as long as 18 months.

The downside of a balance transfer card is you stop earning rewards points but the upside of paying no or low interest for an extended period is usually worthwhile.

Keep in mind also that transferring a credit card balance is generally not fee-free. A 3% → 5% fee on the balance is not uncommon but may well be cheaper than paying a high rate of interest for a few years.

Step 4: Make Timely Payments

A few key factors will influence your credit score. Making timely payments is near the top of the list.

When you pay your bills regularly, mortgage lenders are more likely to view you as financially responsible.

By paying off your credit card balances each month, your credit score may increase, which in turn may lower mortgage interest rates.

Usually, you will qualify for lower rates as your credit score increases from bad (below 580) to excellent (above 720).

Buying a home with bad credit is no mean feat. Do you have any other ideas about how to buy a house with poor credit? Share your thoughts in the comments below.

>> Get Your Credit Report & FICO Score

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>> Roofstock: Buy Property Online

The article How To Buy A House With Bad Credit was originally posted on Investormint

You might be justifiably worried that a pickpocket or thief has got hold of your debit card and is using it to buy stuff.

Worse still, what if you are held liable for things a thief purchased?

The fallout of a lost debit card doesn’t stop there. Overdraft fees and penalty charges from bounced checks are among the other bank charges that may hurt your balance.

But don’t sweat just yet. The good news is you can take clear steps to protect your finances and limit financial liability.

Here’s how…

Step 1: Tell Your Bank
About Your Lost Debit Card

Whether your debit card is lost or stolen, let your bank know right away.

As a matter of law, you are not responsible for any unauthorized charges provided that you promptly inform your bank or credit union about your lost or stolen debit card.

The financial institution’s representative may ask you if you would like to freeze your card so no further charges are processed.

The safest choice is to agree to lock your debit card. It may be a nuisance to have no card for a few days but it’s better than risking fraudulent charges.

It’s also a good first step because you can quickly reactivate your debit card if you later discover that it slipped through the cracks of your car seat.

The most important thing to avoid is panic when your debit card is lost because scammers are famous for creating bogus websites online that are designed to catch consumers off guard when they are most vulnerable.

A common ruse among hackers is to create a website that looks similar to a bank website, but which in fact is just a dragnet that catches personal information.

When your adrenaline is flowing fast after finding out your debit card is lost, take care to ensure the number you dial or website you visit is the official institution.

Step 2: Check For Fraudulent Charges

Once your bank or credit union has enacted a temporary freeze, you can relax knowing that you will not be liable for any unauthorized or fraudulent charges.

But you should still examine your recent transactions to verify whether any fraudulent activity has taken place.

If you spot an unusual name or charge on your list of financial transactions, inform your financial institution so they can investigate further.

Some banks may not freeze your card and will proceed with canceling it right away. Others may automatically cancel your card after a specific time period.

If your card is canceled for whatever reason, whether because you can’t find your lost debit card or your bank does so on your behalf, ask for overnight delivery of a new card.

That way you will avoid the inconvenience of arriving at a grocery store or gas station only to remember that your card is no longer active.

It’s also a good reason why you should always look to keep at least two cards in your wallet, one for emergency periods.

Step 3: Send Your Bank
Written Confirmation

Regardless of whether your account is with a big name bank or a local credit union, send them written confirmation by email or snail mail if you prefer. Simply recap what you told the bank representative over the phone.

Standard information required by the bank will include:

• Whether the card was lost or stolen
• Date or time when debit card was last seen or used
• List of unusual or unrecognized charges

By notifying the bank, you stand a better chance of being compensated for fraudulent charges because the document will serve as official notice.

Step 4: Switch Automatic Billing
To Your New Card

The next step is to switch over any automatic billing you had previously set up to your new debit card.

If you are struggling to remember all the places you set up automatic billing, think about any money-saving apps you use to track your monthly spending.

For example, you might have Mint or Status Money or the Personal Capital app which can help you to quickly identify regular charges.

Typically, cardholders tie utility and cable billing to debit cards but car payments, insurance charges, and even gym memberships may be worth checking too.

Step 5: Calculate Your Liability

After you contact your bank, you should have much greater peace of mind because you are legally not responsible for any charges that are processed after alerting your financial institution.

That’s the good news.

The bad news is you may be liable for charges that were processed prior to notifying your financial institution.

Most banks and credit unions are very consumer-friendly when it comes to questionable transactions arising from lost debit cards.

But you will want to get your ducks in a row nonetheless and figure out what, if any, liability you may suffer.

Now here’s a silver lining. Your liability is not necessarily the sum of all unusual charges that hit your bank account.

In fact, the most you will be responsible for is $50 if you notified your bank or credit union within two days of realizing your card was missing.

However, if you wait two months, you may very well be responsible for all unauthorized charges!

Between 2 days and 60 days, your liability is limited to $500.

Keep in mind that debit cards usually offer less favorable protection terms than credit cards, so if you do plan to replace your card, you may wish to select a credit card instead.

Step 6: Take Steps To
Prevent Future Loss

The Federal Trade Commission has advised consumers to take the following steps to help prevent future loss:

• Commit your pin number to memory and do not write it on any paper you carry in your wallet.
• Examine your debit card transactions regularly so you can verify the charges processed on your card are accurate.
• Review your bank transactions regularly so you can quickly spot any unusual or fraudulent activity.

Step 7: Cut Up Old Debit Cards

It is a good idea to discard your old debit card but before you do so cut the card through the account number.

And as a matter of good practice to protect your personal information, consider taking the following steps too:

• Save receipts to compare and reconcile transactions against monthly statements.
• Guard your account information from prying eyes when in public.
• Don’t disclose your account number over the phone unless you initiate the call.
• Carry only the cards you will need and leave others in a safe place.

Have you ever experienced a lost debit card? Do you have any tips on how to protect personal information? Share your ideas in the comments below.

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The article Lost Debit Card? 7 Steps To Protect Yourself was originally posted on Investormint