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5 Step Guide to Saving and Spending Your Paycheck



Saving and Spending Your Paycheck

The most obvious financial goal is to spend less than you earn so that you have money to save while also having a carryover amount at the end of the month. By making the right financial choices, you can build a savings account, create an emergency fund, and even get out of debt.

But, properly saving and spending your paycheck isn’t an easy feat. From marketing temptation to impulse buys, there are all sorts of factors that play against making the best money decisions.

Are you ready to take charge of your finances? If so, follow this 5 step guide to saving and spending your paycheck wisely.

  1. Have a Plan for Every Dollar

One of the biggest mistakes that people make when it comes to saving and spending their paycheck is not having a plan for every dollar in their bank account. To prevent needless spending and impulse purchases, figure out where you want your money to go each month. This makes it much easier to make a budget and stick to it.

When you don’t have a purpose behind each of your dollars, it’s much easier to spend them on something frivolous. If you find you have money left over that you don’t know what to do with, the wisest plan is usually to save it!

  1. Know Your Schedule

If you have a lot of different lenders and expenses, it’s very easy to lose track of what’s due when. Budgeting should not only include how much money you make and where it goes, it must also include a schedule for making payments on time. A late or missed payment can not only have a huge impact on your credit rating, it can also lead to fees that throw off your budget.

Avoid having to remember all of your payment due dates but scheduling automatic payments. As long as you have a bank account, you can schedule a bill to be paid automatically each month on a set date. This is extremely convenient and helps to ensure that you never miss a payment.

Knowing your schedule also helps in knowing how much money you’ll have and when. Planning to pay all of your large bills with your first paycheck makes it much easier to budget for smaller expenses later in the month.

  1. Pay Off Your Debt

Debt is one of those parts of life that we wish we could run away from forever. But, putting your debt on the back burner only does more harm than good. Paying off your debt should be your top priority. The less debt you have, the better your credit score will be and the easier it is to meet future financial goals.

To wisest way to pay off debt is to pay off the highest interest rate debt first. If you only make the minimum payment on a loan or credit card that has a high interest rate, a good chunk of your money is going towards interest. This means that less is going towards the actual balance, making it much harder to pay off the debt entirely.

Budget so that you can double or triple up on payments. With this method you’ll notice just how much your principal balance starts to drop. Soon enough you can move onto the next debt!

  1. Use Credit Cards Properly

Most people use credit cards as an extension to their paycheck. However, this often causes large balances that are subject to interest. Having a credit card is a great way to earn points and rewards, but if used improperly, these pieces of plastic can do serious harm to your credit.

When using a credit card, there are certain rules you’ll always want to follow. They include:

If credit cards are used properly, they’re a great way to earn airline mileage, discounted hotel stays, and other perks. Using a credit card is also safer than a debit card as lenders back your line of credit. In the event that your card is stolen or misused, you can ensure that you’re covered.

  1. Set Financial Goals

Budgeting is a good first step, but take your financial security and success to the next level by setting goals. Maybe you want to save $200 each month towards a family vacation. Maybe your goal is to pay off your debt and establish an emergency fund. By setting goals, you can always work towards something. As you reach your goals, reward yourself and make new ones! You can never run out of goals that revolve around money.


Knowing how to properly save and spend your paycheck is key to achieving financial security. Follow these 5 steps so that you can avoid the stress that comes with overspending. Here’s to financial freedom!

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3 Strategies for Trading Stocks




Strategies for Trading Stocks

Working hard and saving money is a smart thing to do, but it’s not enough to build real wealth on its own. To maximize your nest egg, you’ll need to invest in stocks and beat inflation. Basic stock investing isn’t too tough, and novice investors can outsource their investment decisions to trusted financial advisor. But for those who prefer to make their own money, there are decisions to make. How aggressive will you be with your investments? What investing techniques will you use? Here are three major stock investing strategies to consider.

Momentum trading 

Momentum trading strategies can vary in certain ways, but they all rely on the central idea that a stock’s inertia matters. A stock that has been rising or falling in value at a certain speed can often be trusted to continue moving in that direction in the near-term. At the right scale, a momentum trading strategy can use that fact to make smart bets on or against stocks based on their momentum and direction. With more hits than misses, a trader is soon making money.

Momentum is an active trading strategy. It is used by day traders and other more active traders, and newbie investors will want to learn more about momentum trading strategies and their variations before trying them out. But a successfully implemented momentum trading strategy can be very lucrative indeed.


Stocks are traded in a specific way on the market. An investor buying a stock offers a “bid price,” or the amount that they are willing to pay for a stock. An investor selling a stock has an “ask” price, which is the lowest amount they’ll accept for a stock. A bid-ask spread can open a window for an investor using the scalping strategy.

Scalping successfully means buying stock at the (lower) bid price and selling it at the (higher) ask price. To do that, scalpers need to exploit order flows or create the spread themselves. Successfully scalping usually means dealing in small volumes of liquid stock and moving quickly to minimize risk.

Buy and hold investing 

Stocks go up and stocks go down. The most profitable thing to do, of course, is to buy stocks when they are cheap and sell them when they are worth much more. If investors are able to “time the market” — get out of overpriced markets, buy back in at low prices after a crash, and repeat — they can make millions and millions. If investors can manage the same sort of buy low-sell high magic with individual stocks, especially volatile and risky stocks, the same rewards are possible.

The problem, however, is that most investors blow it. The market as a whole tends to beat the investors trying to beat it. In other words, it would be better to “be” the market than to try to beat it. And that’s where buy and hold comes in.

With a buy and hold strategy, investors choose large “blue chip” stocks, broad index funds, and other investments that they have reason to believe will be successful in the very long term — just as the market itself is. They then buy those investments and — you guessed it — hold onto them, fighting the urge to sell in tough times and trusting the market and its major players to grow in value in the long term.

Finding your strategy 

Active stock trading strategies are popular among day traders. More passive ones, such as buy-and-hold strategies, are better choices for investors who want to “set it and forget it.” Your best bet for investing will depend on your personal preferences, tolerance for risk, and ability to dedicate time and money to investing. Do your research and choose the right strategy for you.

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Earnings per common share: Know the benefits




Earnings per common share

According to the market experts, earnings-per-common share is considered to be a financial ration. Generally, it is first ratio that investors prefer to check out at the time of analyzing a stock. Although it is simple, this metric has been found to be extremely powerful. It does condense good amount of information in single number and allows comparison of alternative investments by the investors. It also helps to charge specific business performance with time and estimates future investment growth.

What is earnings-per-common share all about?

If we talk about Apple, Earnings Aapl is stated to be the company’s total earnings which belong to the common shareholders that are divided by common number of shares outstanding. For calculation purpose, it is essential to determine first the preferred dividends payable and share numbers.

Preferred shares are termed to be special share class that is entitled to fixed annual dividend. Multiplying the preferred share numbers with dividend payable to them as well as subtraction of resulting figure from net earnings of the company can help find profit portion of the company that is to be given to the common shareholders. The number derived is to be then divided by common share numbers for getting to know earnings-per-common share.

Income calculation

One of the major benefits derived from earnings-per-common share is being provided the opportunity to calculate easily and effortlessly the amount earned by the company on the investor’s behalf. When this is multiplied by stock numbers owned, it can provide the claim on net income of the business. This way, by performing such calculation for all companies present in the portfolio, it becomes possible to compare the profit amount earned by each of them on the investor’s behalf. Since pre-share income is quantified by earnings-per-common share, other measures are made irrelevant. It includes business size, common share numbers outstanding along with other company issued instruments, like proffered stocks and bonds. It does allow fabulous and clear comparison.

Time series

It also helps in creating charts of management performance with time. This is because, earnings per common share is able to eliminate confounding variables with bank loan assumptions or launch of new products by the company. In case, the company earns much more per-common share when compared to the previous year, then it is likely to do a wonderful job. However, there does exist a caveat, which is ‘stocks may split’. This means outstanding shares can be collected by the company and every old share replaced with new ones, thereby splitting effectively each old share. As this takes place, it is necessary to perform additional calculations to compare new and old earnings-per-common figures.

Dividends vs. Earnings

Although, the earnings made belong to the individual, it is up to the board of directors of the company as to how it is likely to be used. It is the board that will take the decision if the entire earnings or part of it is to be paid in dividend form to the shareholders to be reinvested within the business. But over time, the shareholders can enjoy this money and earnings-per-common share is termed to be a wonderful indication of long term income.

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How Do Real Estate Investment Companies Work?




Real Estate Investment

Real estate investment companies are those that can either build properties or can buy groups of properties with the motive of either selling or renting them out to investors.

How do they work?

Real estate investment companies help real estate investors to reap maximum benefits from their properties. Most, if not all, real estate investment companies lay out explicit terms that work in the best interest of the investors. Among those terms, one that truly stands out is the provision where an investor can pool in a particular portion of their benefits from the property to pay for the mortgage. It is beneficial for a property owner especially if their property has lain vacant for extended periods of time.

A real estate investment company has the resources and the connections that allow them to have in-depth knowledge about the sector. They partner up with fellow organizations and share insights that benefit both parties mutually. At times, a real estate investment company can resemble an investment club where participating members take unanimous investment decisions. The decisions surround properties and projects related to real estate where the participating members pool in their funds and invest together.

What sets them apart from other service providers?

Real estate investment companies have certain features that help them stand out from other service providers. They make sure that their investors have unprecedented access to the market which would be impossible to get into if they were on their own! On top of that, real estate investment companies deliver:

  • Quality advise to their investors so that their money is well spent
  • Products and services that are ideal for joint investment ventures

The following section sheds light on two features that set a real estate investment company from other firms:

In-depth knowledge about the real estate market and financial sector

A real estate investment company develops/buys properties so that they can sell the same to their investors, in parts or as a whole unit. They also give management services for the sold properties to their investors in exchange for a fee. All in all, providing such services requires a specific set of skills and high-quality resources. Veteran real estate investment companies are known for their in-depth knowledge about the sector. They also have a deep understanding of the inner workings of the financial market. It is necessary for them to be adept in the said sectors since both are inter-related to one another.

Unmatched communication and negotiation skills!

Real estate investment companies also are backed with professionals who are masters of communication! They should possess the skills for proposal evaluation which assists them in making investment decisions that never fails! Last but not the least, real estate investment companies are masters of negotiation which helps to close a deal in no time!

The services offered by a real estate investment company can differ a lot! A company can be a specialist when it comes to dealing with a certain category of properties which can range from residential complexes to commercial centres. There are also firms that provide debt financing services to their customers to help them in times of distress. In short, based on what exactly they are looking for, an investor can choose a real estate investment company that suits their needs and desires! If you want to know more about real estate companies – SmartOwner can help you out! Be sure to check out their official website mentioned below!

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