Bitcoin, Cryptocurrency, Entrepreneur, Experiences, Finances, goals, making money, MLM, money, passive income, Retirement, rich, Savings, Taxes, wealth

Income Development

Banner Featured by my Financial Mentor Tim Kim

Streams of Income

Did you know that the average millionaire has 7 streams of income? The answer would be the more the merrier. Diversification is an essential component of every experienced investor. Take for example Tim Kim (read about streams of income here), a self-made millionaire and mentor of mine that I am learning from. He has over a dozen streams of income.

My streams of income

I currently have 4 streams of income including my 9-5. It’s a goal of mine to develop 2 of my income streams, which involves blogging and stock options, this year to a total of $3k/ month. I will keep you all posted on my endeavors.

Journeying to FI

It’s always been in my mind to be financially independent so that I could spend intentional time with my friends, travel the world and meet people from all walks of life, and adding value to everyone I meet. Initially I ran into people who had ulterior motives, which was a teaching lesson all on its own (click here to read more).  Then I met someone who had the level of success I was looking to achieve someday and he was an open book on how he got there. I started following his blog and am currently receiving mentorship from him. The spark and pursuit of this journey of FI was ignited just mid-last year.

Humble beginnings

When I started reading blogs on financial independence, I was really just getting through each month with few dollars to spare. I had a part-time job that was paying meager wages, but thankfully I enjoyed the work! I eventually obtained another job with much better pay, creating 2 streams of income but wasn’t making enough to invest.

Goal Setting

I decided to set my sights and goals higher and applied to full-time positions that would allow me room to invest. One of my goals was to get a full-time job by the end of the year. By God’s grace, I interviewed in December and started my full-time job in January 2018. Now it’s time for me to expand my income streams and develop them. I am currently settings a dream line (mentioned in Tim Ferris’s book 4 Hour work week) and hope to get started on defining what I will be doing each day to accomplish my financial goal.

Reflection

Currently, I am working full-time, working part-time at my church as a worship director (which is a great joy), taking 2 real estate classes, blogging, investing into a Roth IRA through Schwab, investing in Bitcoin/ Cryptocurrency (click here to read more), trading options through Robinhood, and advertising a Social Media Agency. I have room to grow in each of these areas and it is my goal to improve everyday. By the end of this year, I hope to reach 2k/month from blogging and share with you all my progress. Thanks for joining in on the journey!

*This post contains affiliate links.

 

Care to share?

Do you have interest in reaching financial in reaching financial independence? Where are you financially? What are your financial goals for this year?

 

Sources:

https://www.rothira.com/what-is-a-roth-ira

https://stewardingfinances.com/2018/03/14/live-and-learn/ ‎

https://stewardingfinances.com/wp-admin/post.php?post=47&action=edit

 

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goals, money, passive income, Savings, wealth

Simple, Smart Start to Investing

Banner Featured by my Financial Mentor Tim Kim

My introduction to investing

The very first investment I learned of was the Roth IRA. Upon hearing about it through a friend, I decided look more into it. My knowledge of investing was slim to none at this point. I discovered that it was a great investment strategy that many utilize. To briefly sum it up, a Roth IRA is a retirement account that allows you to put taxed dollars (limited) into a mutual fund of your choice to grow tax free so that when you need to access it, you won’t have to worry about paying taxes!

Why invest in a Roth IRA?

The great thing about a Roth IRA is that you can withdraw your contributions tax free. A traditional IRA would be taxed at the rate of ordinary income at the time it is withdrawn, making a Roth IRA favorable to those who speculate an increase in taxes in the future. Any growth within your investment is also tax free, but if you want to pull that amount out before age 59½, you will be taxed on your earnings. You can withdraw contributions to invest in real estate ($10,000), for certain educational expenses, and/ or health insurance if you are unemployed! Contribution growth can range depending on the mutual fund:

Example: Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX) has returned over an average annual return of 10% for investors since inception, 11/12/2011.

How much can I invest?

A Roth IRA allows you to invest a maximum amount of $5,500, post-tax, per year ($6,500/ year if over 50 by the end of the year) as long as your yearly modified adjusted gross income is less than $120,000 (single) or $186,000 (married) for the year 2018.

Where can I start investing?

Highly rated platforms most commonly used to create Roth IRA accounts include: Vanguard, Fidelity, and Charles Schwab (if you choose to enroll in Charles Schwab, and use code: REFER616QU you can earn $100 for opening a retirement account).

  1. Vanguard: Minimum to start is $1,000; most minimums for investments are $3,000.
  2. Fidelity: At least $2,500 is required to start.
  3. Charles Schwab: $1,000; $100 if you do direct deposit, which is a great idea.

To conclude

Investing into a Roth IRA is one of the most popular ways to invest due to its tax-deferred growth. If you choose to invest, make sure to examine the mutual funds available to you: its history, current state and future potentials or lack thereof. Other than that, a Roth IRA is a simple, smart start to investing! Your thoughts are appreciated.

 

Sources:

https://www.rothira.com/what-is-a-roth-ira

https://www.investopedia.com/terms/r/rothira.asp

https://investor.vanguard.com/mutual-funds/list#/mutual-funds/name/month-end-returns

https://www.schwab.com/public/schwab/investing/accounts_products/accounts/open_an_account.html?refrid2=REFER

https://investor.vanguard.com/corporate-portal/

https://www.fidelity.com/customer-service/friendsandfamily3a

https://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/roth_ira/withdrawal_rules

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Foundations on FINANCIAL Literacy

What is Financial Literacy? Why should you care?

Let’s start with the idea of money. Money is a tool that is used to obtain something else. It is currently what majority of people use in order to go about their daily living: buying groceries, clothes, gas, rent, so on… That much is known to us all, but how we utilize it can affect our lives in drastic ways.

Money is a tool. It’s a tool that helps us buy what we need and want. Financial Literacy is simply knowledge that allows one to be a wise steward of their finances. Many of us were not taught Financial Literacy in our general education, therefore we lack understanding of even basic finances when we step out of college and into the world.

I, for one didn’t have someone to really teach me the importance of saving – and where to save – and spending wisely, until I discovered a blogger, Tim Kim. I started there by closely following blog posts, engaging in his posts, and buying recommended books to grow in my understanding of stewarding my finances. Then I decided to change my spending habits and work towards growing my money instead of simply getting by.

Do I want to continue in this lifestyle? Am I able to pursue my aspirations freely?     If money wasn’t a factor, what would I do with my life?

These are the questions I wrestled with. Eventually I decided that it was time to take action. I would work on replacing bad habits with healthy ones to guide me towards my goals. Ultimately, I am passionate about God and serving others. I want to spend most of my time investing into others, particularly young people, and guiding them to make informed decisions. I also feel deeply for orphans and widows; I want to help care for them in a greater capacity through financial means. To accomplish this, I need to start using the money I am allotted with more care and thought as the way I use it now will impact my ability to use it in the future. Developing financial literacy has already helped shape the direction in which I will go in order to obtain my initial goal of $10,000/ month in passive income by age 40.

I have been progressively widening my exposure in the finance blogging world and hope you can benefit from my journey. Please feel free to share your thoughts!

 

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