Tag: finance

How to Make a Plan for Recession-Proof Investing

by Sandra Hayes

Recession-proof investing is the easiest way to prevent your financial portfolio from taking a significant hit when the economy starts contracting. It is also one of the most challenging tasks for the average person to navigate.

Dumping your money into a savings account, gold ETFs, or mutual funds isn’t the best way to go. You are going to want to follow some of the following steps to give yourself some protection.

Stay Calm

The economy goes through different seasons. Cycles of correction occur all over the world at times. Don’t make rash decisions immediately when you’ve got a successful portfolio. A small dip in your net worth isn’t the end of the world, and your value will rise again in time.

Have an Emergency Fund

Did you know that the average American family cannot afford a $500 emergency? If you don’t have a fund in place to manage an unexpected expense, then you are not in a position to invest. Build up some savings so that you have a minimum of six months of living expenses set aside. Even having one month of coverage is better than nothing.

Pay Down Your Credit Card Debt

When times are good, then that is when you want to be aggressive with your debt. If you don’t need to worry about high-interest obligations when the finances get tighter, then you’re going to be in a better position if a recession occurs.

Have a Doomsday Budget as Your Plan B

What would happen if you were to suddenly have a significant reduction in income? Having a separate budget in place when you need a Plan B will save you time if your paycheck isn’t what it used to be. Write out everything that you need to survive, from rent to groceries. Then cut out the non-essentials, including Netflix, to see where you stand.

Diversify Your Portfolio

If you want to be recession-proof with your portfolio, then about 40% of your money should be in cash-equivalent items. You can choose bonds, CDs, and money market accounts for this economic period. It helps to build a “ladder” of these conservative investments over time so that you have some almost-guaranteed returns coming your way. Make sure you also still have some equity stocks and mutual funds in there.

Stay True to Your Retirement Plan

Even if a recession hits, you will want to keep investing in your retirement plan. Contribute to your IRA, 401(k), or equivalent products as much as possible. When others are panicking, that is when your interest gains will become more useful. Investing is more about the long-term experience anyway, instead of any short-term gains that are possible.

Have a Side Hustle in Place

If you have multiple income streams, then it is easier to withstand a recession. Freelancing, babysitting, or selling items online are all possibilities. Grab a seasonal job when the holidays arrive if it fits into your schedule. When you save the cash you earn from this endeavor, then your emergency fund will build up quickly.

If you need help, then ask for it. Drowning in debt during a recession can make it a challenge to recover when the economy gets better. Start this process today by implementing these steps. 

Short Term Sources of Finance to Keep Your Head Above Water

by Sandra Hayes

If you are struggling to pay your bills right now, then finding some fast ways to make money is a top priority.

You don’t need to drain your savings account or sell your possessions to make ends meet. When you have some excellent short term sources of finance, then you can keep your head above water while managing a potentially turbulent time in your life.

The goal here is to avoid debt whenever possible. Instead of taking out a consolidation loan, let’s look for ways to improve how much cash is coming in right now.

Get-Rich-Quick Schemes Are a Waste of Time

Don’t waste your time pursuing an idea that lets you make money without putting in some risk or hard work. There is no such thing as a free ride in this world, even if you have trust fund privileges.

That’s why you’ll want to consider these ideas if you need a little help at the end of the month to pay your bills.

Drive for Lyft or Uber

Driving for these rideshare companies can help you to earn some cash right away. You’ll need an approved vehicle, authorization to work, and a clean driving record to get started. Then sign up to start working, and you can operate this side hustle during a time that works well for your needs.

Flip Items to Sell on Craigslist or Amazon.

Ryan Grant built a company that does one thing. He purchases items from Walmart, and then they sell them on Amazon. It only took six years for him to build a company that employs 10 people, earns hundreds of thousands of dollars in profits each year, and reached $6 million in revenues in 2018. You might not be able to follow this plan, but you can find items at antique stores, thrift shops, and online sales to flip for a profit.

Complete Tasks on TaskRabbit.

The app TaskRabbit allows you to help local people with their chores. Some of the tasks are simple, like picking up a few groceries. You might also find some options to help with a home renovation project. If you have some tools at home and are good with your hands, then you can put those skills to work as you make some money.

Deliver Items for PostMates

PostMates says that you can earn up to $25 per hour performing deliveries for them. If you earn some tips along the way, then you can make even more. It’s the perfect idea to follow if you have some spare time, and you don’t need a car to do the work. If you live in the city and have a bicycle, then you’ve got a way to earn some extra money.

Answer Questions for People on JustAnswer.

If you enjoyed answering search queries on ChaCha back in the day, then JustAnswer is the evolution of that concept. This platform allows people with enhanced knowledge to earn extra money by answering questions that would typically cost much more from third-party providers. It’s lucrative if you have something to share and need some extra money in a hurry.

There are lots of ways for you to start earning some short-term sources of finance to pay your bills. If you are patient with this process, it could become a full-time income one day.

What Are Some Smart Ways to Invest $2,000?

by Sandra Hayes

You don’t need to be wealthy to begin investing. If you only have $2,000 available to start growing your accounts, that is still enough to start creating a nest egg that can be worth a lot more in the future. 

Every situation is different, so the final decision will always be yours to make. The first step you should take is to establish an emergency fund to cover unexpected expenses. Once you have that amount in place, then you’ll be ready for these additional options.

1. Open a Roth IRA

This investment option is available to all Americans who meet specific income requirements. You fund this individual retirement account with post-tax money, which means you can withdraw it at retirement without owing capital gains taxes. There isn’t a required distribution at either, which means you can keep letting the compounding work in your favor.

2. Take a Vocational Class

Side hustles are easier than ever before to manage thanks to the rapid speed of technological evolution we see in society. Platforms like Fiverr allow the average person to offer services without even needing a website to start making some cash. If you feel like you don’t have any specific skills to offer, then invest that money in yourself so you can turn it into more significant profits.

3. Invest in a 529 Plan

If you have a family, then this investing option makes sense for their future. It is an educational savings plan that works similarly to an IRA. You can invest in several different assets to let your money grow over time. Then you can take the money out when the kids go to college or for other specific educational purposes without taking a massive chunk out of your income. Some states offer upfront deductions or income exemptions.

4. Buy Dividend Stocks

One of the best dividend stocks available right now is the Ford Motor Company. If you have $2,000 to invest right now, then you can turn that into a return that will net you about $100 per year in dividends. It isn’t overly impressive at first, but you can compound that money into additional investments that continue to build dividends over time. You might even get some equity gains out of the deal to give your wealth a bigger push.

5. Corporate Bonds

A corporate bond can provide reliable returns with the right investment. Some companies, such as Johnson and Johnson, have offered returns for over 50 consecutive years. Look for options in this category that will give you a performance that is at least double the rate of inflation to ensure that you get good value from the investment.

It’s never too late to begin securing your financial future. Whether you’re 25 or 55, the money that you save today can help you to achieve bigger and better things in the future. Take some time to review all of your options, and then put your finances to work today so that tomorrow you won’t have as many financial worries.

What Role Does a Finance Systems Manager Play in an Organization?

by Sandra Hayes

The finance systems manager is one of the most overlooked roles in today’s technology industries. This person actively monitors, updates, and maintains the monetary systems for their employer. It requires an education in information management, computer science, or accounting.

The key responsibilities of the finance system manager involves serving as the point person for everything tech-related regarding money. You’ll find them in charge of point-of-sale technology, financial software, CRMs, and anything else that the accounting department requires to keep the company in the black.

Finance systems managers are the unsung heroes of many corporate settings. You don’t see them working, but you know that they’re always there.

Training and Troubleshooting From a Finance Position

The finance systems manager is like the Metagenics of their organization. Their work helps to form the cultural DNA that leads to successful outcomes. It is up to them to train new employees, provide software resources, and hold information sessions to ensure that everyone stays on the same page.

Good health comes from Standard Process products, which is the recipe that these critical managers play in the financial conduct of the company. Their approach to technology ensures regulatory compliance, report generation, and most other accounting responsibilities that take place throughout the year.

Finance systems managers must have the same energy levels that people get with a boost from supplements like those that come from Douglas Laboratories. Any software item will produce an error that the average person can’t fix without help. When such an incident occurs, it is up to this individual to find the fastest and most affordable solution to the issue.

Their hard work is what allows people to be productive. Higher productivity levels lead to a positive employee culture.

Maintenance and Security Concerns for Finance Systems

The primary role of the finance systems manager is to focus on long-term security solutions while having a hand in daily software maintenance needs. That means this job is in charge of every system-wide update or security patch. You almost always see the bulk of their work taking place after regular business hours are over because an update at any other time would make the software unusable.

The finance systems manager is tasked with finding new ways to keep data secure. Their role includes the formation of redundancies in almost every organization. This responsibility means that the individual must create cloud-based backups of information, hard copies, and updated files because this asset is the one driver that can help a company recover after a breach.

Even a power outage can cause data loss under the right set of circumstances. Maintaining redundancies to prevent this issue allows an organization to avoid suffering a significant financial blow after an unexpected situation occurs.

Working as a finance systems manager means you are in a high-stakes position that directly impacts the functionality of a business. This person directly affects security, fiscal soundness, and productivity. It is a rigorous schedule to follow, but the outcomes are almost always rewarding.