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Money

5 mins read

8 Ways to Intelligently Invest $500

To ensure future financial stability, the best thing for you to do right now is to intelligently invest your money into profitable avenues.

Contrary to popular belief, you do not need to have thousands of dollars at your disposal to begin investing. With just $500, you can start investing and accumulating real, long-term wealth.

Keep reading to know how you can effectively invest your $500.

1.   Purchase a Certificate of Deposit

If you want to save for a short-term goal, certificates of deposit are a great way to invest your money. They’re safe to invest in as you get a guaranteed return on your investment, irrespective of the economy’s status. Interest paid on your certificate of deposit will be based on the initial deposit agreement you made and not market conditions.

2.   Start a Side Business

If your day job isn’t too demanding or you’d like to do something productive on the weekends, you could start a side business. Doing so will not only give you extra income but can also help you hone any other skills you have. You can buy items for cheap and flip them for profit, freelance as a content writer or graphic designer, sell second-hand goods on eBay or Craigslist, or open an e-commerce store.

3.   Pay Down Your Debt

With $500, you can pay down your debt and save thousands of dollars in interest. Getting rid of your debt as quickly as possible means that you won’t have to pay exorbitant interests to your creditors.

4.   Equity Crowdfunding

Crowdfunding refers to raising money from the public to finance a new business venture. In equity crowdfunding, public investors get a proportionate slice of equity in the business in exchange for their investment. Do some research and invest your $500 in a business that you think will provide lucrative returns.

5.   Set Up a Dividend Reinvestment Plan (DRIP)

Purchase dividend-paying stocks and invest them into buying more stocks. Over time, you will begin to accumulate more money through these reinvestments. Your stock can also increase in value over time and boost your overall net worth.

6.   Use Robo-Advisors

Robo-advisors are automated investing platforms that manage your investments. Many financial institutions let you invest through Robo-advisors. When you sign up for one, you will have to answer questions regarding your finances. Based on your answers, the platform creates an investment portfolio tailored to your needs. When you don’t have too much money, Robo-advisors are a great way to get started on investing.

7.   Contribute to a 401(k) or IRA

Contribute your $500 to an employer-sponsored retirement plan, like a 401(k). Make it your goal to maximize your employer’s match to accumulate more money. Talk to the HR personnel in your company to see if you can make a one-time deposit of $500.

You can also invest your money by opening a Roth IRA (Individual Retirement Account), a retirement savings plan that allows you to contribute after-tax money to your investment account.

8.   Buy Savings Bonds

If you’re a prudent investor, purchasing savings bonds is a great way to invest your $500. Bonds are low-risk investments, which means that the return on investment you receive from them will be lesser than your returns on stocks. Usually, you purchase a bond at face value and receive the principal amount plus interest at the time of its redemption.

Investing isn’t as confusing or overwhelming as it seems on the outside. It doesn’t always take too much time, effort, and money. If you still have misgivings about investing your money, talk to a financial expert and ask them for professional guidance.

 

***Important: Please do as much research as you can beforehand before making any investments.***

 

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5 mins read

5 Money Myths That Could Be Preventing You From Building Wealth

They say money can’t buy you happiness—and to a certain extent, that’s true. But poverty doesn’t bring happiness either, does it?

Let’s face it, there are a ton of money myths out there parading around as truth. But the real truth is that most of these myths are keeping hardworking people broke!

The Internet can be filled with financial “tips” that are more myth than fact. You must validate financial tips you find on YouTube, TikTok, Instagram, Reddit, or Facebook by doing your own research and speaking to a professional.

But don’t worry, to get you started, we’ve compiled a list below to call out “truths” as myths.

1) I can start saving later.

Savings is only for the rich, right? Well, not if you want to stop living paycheck to paycheck. Nearly one-quarter of Americans fail to save money every month.

However, the key to saving is to save the right thing. The rate of inflation reduces the purchasing power of your money but also increases the value of your assets, such as real estate or stocks. Rather than saving for the sake of saving, invest your hard-earned cash in assets that will pay you and keep pace with inflation.

2) All debt is bad debt.

This is one of the biggest myths of all. Having an outstanding balance on your credit card or a high-interest loan can cost significantly more than the sum you originally borrowed. However, not all debt is the same.

It is possible to acquire “good debt”—debt with a low-interest rate that builds wealth over time. Good debt will provide future value, like a mortgage or student loans.

But you must avoid overextending yourself, even with good debt: It can become a problem if you cannot afford the payments. The amount of debt you have will play a significant role in determining your credit score, which is used by lenders to assess your credit risk. The higher the score, the better the terms, which saves you money on interest.

3) You’re throwing away money by renting.

A house can be a good investment as equity will be built over time. However, becoming a homeowner is not always financially feasible because it requires you to pay the mortgage, property taxes, homeowners insurance, maintenance, and repairs—not to mention the upfront costs of buying a home.

If you are only planning on living in an area for a few years, renting could make more sense financially. It can also be a great way to save a lot of cash if you live below your means.

4) Credit cards should be avoided.

Credit cards are convenient, but they can easily become a burden if you’re not careful. However, that doesn’t mean you shouldn’t have one.

As long as you pay off your card balance in full each month to avoid interest, making purchases with credit can be worthwhile. In addition to being a great way to redeem points for cash, travel, electronics, or investing, it can also help increase your credit score, making it easier to buy a car or house in the future, with a lower interest rate.

5) You’ll spend less money during retirement.

Many people make the mistake of assuming they have plenty of time to save for retirement. In reality, it approaches faster than you think. And for some, their retirement lifestyle could be even more expensive than their working years.

Retirement looks different for everyone. For some, it may be a time for leisure and traveling. For others, it offers the chance to pursue a second career they’ve always dreamed of. Maybe you just want to leave a legacy for future generations of your family. No matter what it is, you can do it!

 

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3 mins read

5 Signs That You’re Smart With Money

Since you most likely work hard for your money, it’s important that you are also smart with money in order to hold on to it and put it to work so that it helps you achieve your financial goals.

Here are some signs that you are smart with money.

You Have a Budget

If you are smart with money, you have a plan written down to decide how you will spend your money each month. You know that without a plan, you might run out of money before your next paycheck or before your next invoice is paid.

Over the long term, those who budget effectively will have manageable debt, room to indulge occasionally, and savings to pay irregular or unexpected expenses and retire comfortably.

You Keep Your Financial Goals in Mind

People who are smart with money have short-term, midterm, and long-term financial goals. These goals may range from paying off a credit card to retire by a certain age or saving enough to start a business. Whatever your goals are, if you’ve always got them in mind, it’s easier to ignore unnecessary expenses like impulse purchases that may take you off your path.

You Leverage Credit Wisely

There are many ways to leverage credit to create wealth. However, wealth creation via credit only occurs when the item purchased is an asset that puts money in your account on a regular basis, and continues to gain value that exceeds the interest you are paying on it.

You Avoid Unnecessary Fees

Although fees related to banking and financial services are almost impossible to avoid, there are some that you should never have to pay. Being smart with your money means understanding the financial products you are using.

With your bank, you avoid being charged unnecessary monthly fees and fees for insufficient funds or bounced payments. With your credit card, you avoid paying late fees. Even with services such as PayPal, you use the free “family and friends” option to avoid their transaction fee.

You Shop for Necessities with a Plan

Raise your hand if you have ever walked into a store for a few items and walked out with three times as much as you originally planned to get. I’ve been there too. Failing to plan means planning to fail. That’s why I now create a list beforehand and stick to it (most of the time).  Whether you are shopping for your home or your business,  it’s smart to do so with a list that has your budget in mind.

 

Tony O. Lawson


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5 mins read

16 Black Personal Finance Educators & Experts

Confession: I’m lightweight obsessed with building generational wealth and making the best personal finance decisions.

And why not be obsessed about it? The financial security that I want to create for my children’s children’s children can’t be built on hopes and dreams. It’s gonna take serious planning and preparation.

Part of that planning and preparation involves seeking advice from experts like Peregrin Private Capital. But there are so many people offering to help you “get your money right”. Who do you choose? Who can you trust? Who you gonna call?

To make that decision easier for you we’ve put together a list of melanated money mavens. These financial freedom fighters will help you make smart decisions related to budgeting, saving, spending and investing.

We’ve listed the vets and O.G’s as well as the New Jacks and Millennials. Research them to see who’s advice, opinions and values align best with yours. You see where I said do your research, right? Ok, cool. That way you can never say Tony ruined your life 😉

Personal Finance Educators & Experts

Michelle Singletary is a nationally syndicated columnist for The Washington Post. Her award-winning column, “The Color of Money,” is carried in over 100 newspapers and finance blogs that provides insight into the world of personal finance. If you run a personal business, corporate finance consulting may be useful to you too!

Dr. Boyce D. Watkins is one of the leading financial scholars and social commentators in the country. He advocates for education, economic empowerment and social justice.

Tiffany “The Budgetnista” Aliche is a best selling author, speaker and passionate teacher of fun, financial empowerment. Her company specializes in the delivery of financial literacy education.

personal finance

Jarim Person Lynn is the creator of Brass Knuckle Finance, a wealth building philosophy that promotes a cash based, no debt, high investment return way of life.

Carrie Pink, your “Financial Stylist”, is a lifestyle blogger, finance coach, and mom of five who teaches women how to blur the lines between frugal and fabulous so you can live an overall richer life.

Tonya Rapley is a nationally recognized millennial money expert. Her mission is to help millennials break the cycle of living paycheck to paycheck so that they can become financially free.

Malcom “MJ” Harris is the CEO of the National Care Financial Group, one of the largest Black owned financial services firms in the country.

Dr. Eric Patrick is the “Hip Hop Stock Doc” and the Founder and Chief Investment Educator of Black Market Exchange, LLC. He provides investment education so individuals may understand the stock market at its core enabling them to produce sound investment decisions.

After studying and mastering personal finance, Jalesa Ann paid off over $40,000 in debt, and began on the road to financial freedom. Now she uses her expertise to help other’s become moguls over their money through her company, “My Money Mogul

Marsha Barnes is the founder of The Finance Bar, a personal finance suite and mobile hub based in a retrofitted school bus. The Finance Bar aims to bridge the gap between individuals and financial wellness.

Kristin Sutton, LPC is empower young women to change the way that they think about money. She wants you to start budgeting like a BO$$

Clever Girl Finance is the creation of Bola Onada Sokunbi. She’s a Certified Financial Education Instructor (CFEI), money coach and all round finance junkie. She also saved $100,000 in 3.5 years.

Dominique Broadway is an award winning Financial Planner and the creator of Finances De•mys•ti•fied, an award winning organization that provides Personal Finance Coaching & Financial Capability solutions.

Kara Stevens is founder of the personal finance and lifestyle blog The Frugal Feminista , an online home dedicated to inspiring and informing women of color about financial empowerment, girl power, and “juicy” living.

Dominique Brown is a licensed financial advisor who helps individuals and small businesses overcome their financial roadblocks to financial freedom.

Kendra N. James is the Founder & CEO of The Finance Femme, a business financial consulting firm for women entrepreneurs. Helping entrepreneurs “manage money and control the chaos.”

-Tony Oluwatoyin Lawson