entrepreneurship

5 Financial Risks Worth Taking

Rachel Slifka — Wed, 28 Mar 2018 10:00:07 +0000

They say no big reward comes without risk. That can be a hard pill to swallow, especially when it comes to our money.

Most of us would rather not put our hard earned cash at risk. With the tough economic times of 2008 in recent memory, people are still on edge when it comes to taking financial risks.

On the other hand, leaving your cash in a savings account isn't going to get you ahead of the game. In order to be successful financially, you will eventually have to face some risk. In fact, being too complacent with your cash can be one of the biggest financial risks of all.

Here are the financial risks that can be hugely beneficial.

1. Moving to a new city

Do you feel like your current location is lacking in career opportunities? Or perhaps rent is atrocious and you're finding it hard to get by? A move may be a solution.

There's no doubt about it — moving is expensive. You may have to break a lease and sign a new one, complete with security deposit. You'll probably have to pay for a moving truck, movers, new furniture, and more. Not to mention, your new city could come with a much higher cost of living. But, for some people, moving could be well worth it.

When I moved cities, even though I tried to make it as cheap as possible, I still incurred quite a few expenses. But financially and personally, it was worth it to me. My hometown is small with very few opportunities, so I knew I would have a better shot at earning a bigger income in a larger city. Fortunately, that turned out to be true. (See also: Here's How Much Life in the Big City Will Cost You)

2. Investing in graduate school

Graduate school is a big investment, so it's important to weigh whether or not the expense is worth it in the long run. Tuition costs are ever increasing, books are expensive, and if you choose a full-time program, you are losing out on income you could have earned while working instead.

While it is a big investment, a graduate degree can help you find a higher paying job with more opportunity for growth. And some high paying careers cannot be achieved without some sort of degree in higher education.

Before you sign up for graduate school, take time to truly consider what you want to do and whether it will benefit you financially. Be sure to consider how you can market yourself, even without an advanced degree. While a graduate degree can certainly help in the job process, there are many other factors that determine whether or not you receive a job offer. (See also: 7 Things to Consider Before Paying for an MBA)

3. Starting a business

Starting a business is outside many people's comfort zone. It can cost significant cash to start and to grow a business from scratch. There is also uncertainty in working for yourself if you've only ever worked with for a traditional 9-to-5 employer.

But starting a business can come with many personal and financial benefits. For one, you keep all of your own profit. If the business is successful, you are the one who gets the big payout. For many people, owning and operating their own business is a personal and career preference as well. If you've been dreaming about starting your own business, develop a financial plan before you dive in head first. (See also: Starting Your Dream Business Is Easier Than You Think — Here's How)

4. Investing

The stock markets are full of ups and downs and uncertainty, but the payoff can be huge. Most, if not all, experts would agree that failing to invest is riskier than not investing. While leaving your money in a savings account might ensure it doesn't lose much value in the short term, it won't gain much value, either. In fact, due to inflation, you are likely to lose value over time.

Investing thoughtfully, however, can give you the opportunity to grow your money at a much faster rate. Investing certainly isn't a get-rich-quick scheme, but overall, it can pay off big time with smart decisions. (See also: How the Risk Averse Can Get Into the Stock Market)

5. Buying a home

The housing market isn't necessarily as stable as it used to be, and a home is a major cost. But can it be worth the risk?

There are many factors to consider when deciding if purchasing a home is worth the risk. You'll want to consider resale value, in the event that you need to move. Location, school district, quality of home, and neighborhood are all other important factors to consider. If you are planning to stay in a location long-term, a house may be a smart investment. (See also: 7 Worst Reasons NOT to Buy a House)

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This article is from Rachel Slifka of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What to Do if You're Laid Off Before You Retire

Tim Lemke — Fri, 12 Jan 2018 09:30:09 +0000

You had a plan. You were going to work for a few more years, and head gracefully and gleefully into retirement. But your company didn’t cooperate. You’ve found yourself laid off, and wondering what to do next.

The job market is tough for older people, and if you are a few years away from your intended retirement date, you may be unsure of the best next steps. Can you retire early? If not, what jobs are out there for people your age? Do you even want to work full-time anyway?

Everyone’s situation is different, but there are options for older people who find themselves laid off before their planned retirement.

Look for a new full-time job

There’s no question that folks over 50 may have a tough time in the job market. Ageism exists, especially in fields where employers assume young people will have more technical skills. But it’s entirely possible to find a new position, and there are companies that will value the experience and knowledge of an older worker.

The American Association of Retired Persons (AARP) names several great jobs for people over 50, including accountant, personal trainer, landscaper, and interpreter. Just keep in mind that it may take weeks or even months to land a position you want. This is why it’s important to maintain an emergency fund with at least three to six months' worth of living expenses.

Find a fun part-time job

Recently, my family and I went to Pittsburgh and took a tour of the ballpark. Most of the tour guides were older men who appeared excited to be there, and the team seemed to appreciate the knowledge and enthusiasm they brought to the job.

If you feel like you need to work to stay busy and bring in some dollars, but don’t need to work full-time, try to find something that channels your passion. Maybe it’s working outside doing landscaping or lawn care. Perhaps it’s doing home improvement work, or tutoring students in English. If you can find something you enjoy and get paid for it, that may be better than landing a full-time job. (See also: 6 Great Retirement Jobs)

Seek consulting gigs

While companies aren’t always eager to hire older workers on a full-time basis, they have been known to rely on them for expertise on a contract basis. Companies still must rely on older workers who have institutional knowledge and some specific experience. In fact, it’s not unheard of for workers to be laid off only to return as a consultant, doing similar work. (I once met a guy who was brought back and found himself sitting at his same old desk!)

If you do find yourself laid off, consider marketing your services on a contract or as-needed basis. You may be surprised at how lucrative some of these opportunities are, and you will have some job flexibility that may help you phase into retirement for good.

Adjust your budget

The good news about being laid off when you are older is that your living expenses are generally lower. But you’ll still need to reduce your spending if you find yourself without a job. Track all of your expenses and see where you can cut costs. Savings may come from canceling your cable TV subscription, or reducing your food budget. You may save money on gas and other car expenses if you aren’t working. You’d be surprised where you can find ways to cut costs, and you may even find that you will be comfortable with a lower standard of living, allowing you to retire for good. (See also: 6 Ways You Can Cut Costs Right Before You Retire)

Go ahead and retire

Perhaps you planned to stop working at 63, but you were laid off at 59. You may think you need to keep working to hit your retirement savings goal, but you might be much closer than you think. Maybe your savings goal was larger than necessary and you’re actually right on target. Perhaps you only need to make modest adjustments to your standard of living, like reducing your spending for a few years, or adjusting your investment strategy to boost your income now while still growing your nest egg.

You may find yourself retired early, but those few years may not make much of a difference. If you have a financial adviser, talk with them about how to make your money work for you now and last a little longer. Your adviser may also be able to help you avoid any penalties and taxes from withdrawing money from your retirement accounts early. (See also: 5 Ways to Handle a Forced Early Retirement)

Check if you can collect Social Security

Let’s say you find yourself laid off at age 62. The good news is that you are old enough to begin receiving Social Security benefits, though your payments will not be as high as they would be if you waited another five years (until your full retirement age). At age 62, you’ll receive about 70 percent of the maximum monthly benefit.

If you can wait until you are older to collect, you’ll end up receiving more benefits in the long run. But even a partial benefit is better than nothing, and may allow you to retire early. (See also: 5 Questions to Ask Before You Start Claiming Your Social Security Benefits)

Identify passive income sources

If you are unable to find a new job or unsure if you want to return to the workforce, it may be time to get creative in how you make money. It’s entirely possible to earn money without a “real” job, if you know where to look. Adjusting your investment portfolio to earn money from dividend stocks is a popular option among older Americans. With dividends, companies pay a portion of their income to shareholders, and returns can be much higher than interest from the bank.

Real estate can offer a passive income source as well. If you have the funds to buy an investment property, consider renting it out and earning money from tenants. (Just keep in mind there may be some work and expense associated with ownership.)

If you are computer savvy, you may be able to make money from blogging or hosting videos on YouTube. This content can earn you money from advertising long after you’re done producing it.

The job market may be tougher for older citizens, but that doesn’t mean you can’t earn money. And who knows? Some of these sources may be able to continue to bring you income even after you retire for good. (See also: 5 Ways to Make Passive Income Online)

Start a business

Maybe you spent your work life wishing you could be your own boss, but the stars never quite aligned. Perhaps now is the time to take the plunge and become an entrepreneur. There’s obviously some risk in starting a business, but you may be at a point in your life where you have some money saved and relatively low living expenses. You may have years of work experience that you can bring to the table to get the business launched, and you can now set your own work schedule.

Your business doesn’t necessarily have to involve starting the next Amazon.com. It might be something more low key, like a math tutoring business, a small handyman company, or selling handmade items.

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 College Courses That Will Boost Your Career

Samantha Stauf — Fri, 01 Dec 2017 09:30:09 +0000

The job market is full of college-educated Americans. With so many people boasting bachelor degrees, associate degrees, and even master's degrees, it's no longer safe to assume that a college degree is the magic ticket that will kick-start a career.

According to the Association of American Colleges and Universities, 90 percent of businesses value skills far more than they do any particular degree. That means that individuals, regardless of the level of education they are pursuing, should carefully choose classes that will not only help their degree, but also their future employability. (See also 7 Skills Today's Employers Value Most)

Here are a few great skills-boosting electives to consider.

1. Business writing

Not all business writing classes include the same curriculum, but this type of course typically teaches students how to write memos, professional emails, reports, grant applications, presentations, cover letters, and resumes. These classes occasionally also focus on utilizing word processing software, creating technical graphics, and developing a professional online portfolio.

This elective should leave you with a large collection of sample writing for your online portfolio, a few more writing skills to add to your resume, and an enhanced ability to communicate non-verbally.

2. Communication and public speaking

Communication skills can help you speak with confidence, interact effectively in groups, and deliver speeches and presentations. The ability to communicate effectively can be vital to landing jobs, building professional relationships, and kick-starting a career.

These classes give formal training in group communication, creating and delivering presentations and speeches, and delivering an effective interview. Individuals learn soft skills like how to interact with an audience, how to dress professionally, and how to read body language, too.

Classes that focus on business communication might also focus on communicating effectively over a variety technological platforms, including social media sites, phones, presentation programs, and visual communication programs. (See also: How to Make Public Speaking Less Terrifying)

3. Digital communication and electronic marketing

As of 2017, well over two billion people use social media. Due to that staggeringly high number, the importance of social media communication has grown significantly over the last decade. New jobs, like social media managers, have been created. Even if individuals don't pursue a social media job, expertise in digital communication and electronic marketing is a valuable skill.

Nonprofessional social media experts can still use social media to locate jobs, engage in social networking, and promote their own work online.

Classes typically start by examining the basic principles and concepts behind the use of digital information and communication technology. Once a baseline is laid, students often learn about the marketing and communication use of various digital tools (from email, to text, to social media). By the end of the class, students will know the best marketing and communication strategies using these various digital tools. (See also: 9 High-Paying Jobs That Didn't Exist 10 Years Ago)

4. Computer software skills

Computer software skills can be imperative to career success in many traditional office jobs. People (even those who don't have a college degree) can increase their employability if they have advanced software skills. Community colleges, in particular, tend to have a few courses that focus primarily on walking students through the ins and outs of various software programs.

These courses tend to focus on presentation, spreadsheet, and document processing software. The curriculum also tends to focus on current business standards for document creation and formatting.

5. Web development and programming

While not all office jobs require programming skills, basic knowledge of web development can be a useful career enhancer. Editors, web managers, writers, and various other positions prefer to hire candidates that already know the ins and outs of creating or at least maintaining a website.

These classes cover programming languages such as Python, HTML5, JavaScript, and C++. Individuals can utilize these new skills to create a website, build an online portfolio, spruce up a resume, and pursue projects that require sophisticated website or tool development. (See also: 7 Certifications That Add Big $$ to Your Salary)

6. Entrepreneurship

Budding entrepreneurs or self-employed professionals could benefit from a course that focuses on the practical aspects of startups. Before diving headfirst into their world-changing business idea, hopeful entrepreneurs can arm themselves with knowledge that can help them succeed.

This class typically teaches students about the challenges of opening, running, financing, and marketing a successful startup or small businesses. The class also delves into the typical behaviors and beliefs of successful business owners, and leaves students with the knowledge they need to succeed on their own. (See also: The Top 7 Blogs for Entrepreneurs)

7. All-encompassing professional skills classes

Not all, but some colleges have begun to create classes that focus entirely on helping students build the necessary skills to thrive in a professional work environment. If you can't work a few skill-oriented classes into your schedule, you might want to see if you can find a class that just focuses on general skill development.

Boise State University, for example, offers a series of courses on professional development. Some of the skills these courses focus on include self-awareness, teamwork, leadership, networking, and interviewing. Students tackle individual and team-based activities. Many of the activities are designed to mimic typical workplace scenarios, so that students can develop skills and experiences that are relevant to a professional workplace.

Individuals, no matter their current educational status, may benefit from attending college classes that teach useful career skills. If a college class isn't possible for you at this point, you can search for the multitude of free or cheap books, websites, or video resources out there to help build your skills.

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This article is from Samantha Stauf of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Get Smart About Money With These 18 Free Online Courses

Dr Penny Pincher — Tue, 03 Oct 2017 08:30:11 +0000

A growing number of leading business schools and universities are offering free personal finance courses online. Why not take advantage of these sophisticated resources to grow your knowledge and take your finances to the next level? (See also: 10 Places to Get Free Personal Finance Classes)

These free online courses are sometimes known as Massive Open Online Courses (MOOCs). Many are either based on university courses, or actually are the same university courses that have been offered to paying students on campus. Although you will not get credit toward a degree for taking a free class, you can certainly learn a thing or two that will help you manage your finances and become a better negotiator, entrepreneur, and investor. (See also: 8 Cheap Ways to Continue Your Education Without Going Back to School)

1. Finance for Everyone: Smart Tools for Decision-Making

This introductory personal finance course through the University of Michigan covers the basics of personal finance, teaching frameworks and methods that will better equip you to make sound everyday financial decisions.

Time commitment: 6 weeks, 5–6 hours per week.

2. Behavioral Economics in Action

Offered through the University of Toronto, Behavioral Economics in Action teaches students how economics drives consumer decisions and how to develop tools that lead to better financial decisions.

Time commitment: 6 weeks, 4–5 hours per week.

3. Personal Finance

Purdue University offers Personal Finance; Improve your money management by improving your understanding of key personal finance concepts such as investments, credit, and insurance.

Time commitment: 5 weeks, 3–4 hours per week.

4. Analyzing Global Trends for Business and Society

The Wharton University of Pennsylvania offers an online course on learning to understand global trends, including how you can use that knowledge to make better financial decisions and investments.

Time commitment: 7 weeks, 3–4 hours per week.

5. How to Start a Startup

With Stanford University's video course How to Start a Startup, you'll learn the fundamentals of launching a new business; including how to develop product ideas, make sales, market products, and hire your first employees.

Time commitment: 1,000 minutes of video.

6. Stocks and Bonds: Risks and Returns

Another Stanford video course, Stocks and Bonds: Risks and Returns covers the basics of stocks and bonds, including how value is established, what affects market prices, and what you actually get when you buy a stock or a bond.

Time commitment: Self-paced.

7. Finance Theory I

Finance Theory I, offered by the Massachusetts Institute of Technology, teaches you how the economy and capital markets work, including an introduction to complex investment instruments such as derivatives and options.

Time commitment: Semester-length course.

8. Retail Fundamentals

Learning how retail works can give you an advantage as a consumer. This course from Dartmouth covers the basics of how businesses select inventory and set prices to maximize profit.

Time commitment: 4 weeks, 3–4 hours per week.

9. Economics of Money and Banking

This course from Columbia University teaches the basics of banking and monetary policy and offers insight into the financial crisis of 2007–2009 from the perspective of financial institutions.

Time commitment: 13 weeks, 5 hours per week.

10. Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator

Negotiating effectively is one of the most effective ways to get ahead financially. This course from Yale promises to "help you be a better negotiator" by teaching tactics and tools to reach a better deal.

Time commitment: 9-week course.

11. Personal & Family Financial Planning

Personal & Family Financial Planning from the University of Florida teaches the fundamentals of personal finance and money management including budgeting, credit, and taxes.

Time commitment: 9-week course.

12. Investment Vehicles, Insurance, and Retirement

Khan University's Investment Vehicles, Insurance, and Retirement course teaches the basic principles that will allow you to grow your money through investments and protect your money through insurance.

Time commitment: Self-paced.

13. Securing Investment Returns in the Long Run

In the course Securing Investment Returns in the Long Run through the University of Geneva, you'll learn about active vs. passive investing and how to evaluate the performance of your investments to achieve good long-term returns.

Time commitment: 4 weeks, 1–3 hours per week.

14. Fundamentals of Personal Financial Planning

Fundamentals of Personal Financial Planning from UC Irvine aims to teach you how to set and reach your financial goals by improving your knowledge of personal finance.

Time commitment: 30 hours.

15. Free Online Personal Finance Course

This personal finance primer from the University of Arizona will teach you how to navigate the perils of today's consumer economy by mastering personal finance principles.

Time commitment: 15 hours.

16. Econ 252: Financial Markets

Become a smarter investor with this economics course from Yale, which aims to help you understand the inner workings of financial institutions such as banks, insurance companies, and securities markets.

Time commitment: Semester-length course.

17. New Venture Finance: Startup Funding for Entrepreneurs

If you are thinking about starting a business, New Venture Finance: Startup Funding for Entrepreneurs from the University of Maryland will help you figure out how to fund your venture.

Time commitment: 3–5 hours per week.

18. Marketing in a Digital World

Marketing in a Digital World, from the University of Illinois at Urbana-Champaign, will teach you how digital tools are revolutionizing the way products are bought and sold, and how this is providing unprecedented advantages for consumers.

Time commitment: 4 weeks, 6–8 hours per week.

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This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Online Forums That'll Help You Reach Your Financial Goals

Annie Mueller — Tue, 19 Sep 2017 09:00:06 +0000

You've got financial goals, but why be lonely while you're reaching them? Find your tribe! Grow your group! Commit to your community! And reach those money goals faster with the help and advice of online friends who are focused on reaching the same goals with you.

Goal: Get better at money

Start here to master the personal finance basics.

1. Reddit personal finance

If you want to start being more aware of your money and more proactive in how you manage it, you can't find a better place than Reddit's personal finance subreddit. It's an active, friendly group full of down-to-earth people sharing real advice and tips and asking for insight from others.

2. Mr. Money Mustache Taxes forum

Getting better at finance means getting at least a little bit better at understanding and managing your taxes. The Mr. Money Mustache Taxes forum can help. Topics vary widely with the common theme of taxes bringing them all together. You'll see threads on everything from making IRA contributions, to dealing with an inheritance, to calculating self-employment tax.

Goal: Invest more

3. BiggerPockets forum

For real estate investment help and support, check out the BiggerPockets real estate investing forum. You'll find questions, answers, and plenty of advice on the subject. Topics cover everything from real estate taxes, to investment strategies, to landlord responsibilities.

4. Quora Returns On Investment

Quora is a massive Q&A website with a huge array of topics; dive into Returns On Investment to read questions and a variety of answers on the best methods and strategies for investing your money. You can also check out the Stock Market Investing page for even more information on investing.

Goal: Pay off debt

5. Money Saving Expert forum

This is a large and active forum with many financial-themed topics. Of particular interest for your debt repayment goals are the Debt-Free Wannabe and Mortgage-Free Wannabe threads. Join hundreds of members who are working their way toward their debt-free goals. It's encouraging to know you're not alone, and you can also find advice and tips for ways to be as efficient as possible with your repayment plans.

Goal: Stick to a budget

6. Frugal Village forums

How deep do you want to dive into changing your lifestyle to be a more frugal one? The Frugal Village forum can take you there. Topics get into detail, so you can explore the one you're most interested in. There are also several threads dedicated to specific money and frugal living challenges. For extra incentive, take on a challenge with your forum friends to cheer you on.

Goal: Save more money

7. Tip Yourself app and community

The Tip Yourself app (for iOS) gives you the option to, well, tip yourself. Forego that pricey coffee, new book, or other impulse purchase and give yourself the money instead, designating the amount in the app where you can watch the dollars in your own tip jar increase. The community feature makes this app fun to use; you can see what others are doing, comment and like their tips, and receive the same kind of encouragement for yourself. While you could easily do this yourself with a savings account, the interactive, community-oriented nature of Tip Yourself adds an element of fun that might spur you to save more than you normally would on your own.

8. CafeMom — The Family Piggy Bank

CafeMom is a popular site with all sorts of specialized groups; this particular one, The Family Piggy Bank, brings together moms who are doing their best to save, invest, and plan for a happy financial future for their families. You can join a daily savings challenge, ask a question, or find out how other families are saving money on everything from holiday gifts, family travel, food budgets, and life insurance.

Goal: Increase your income

9. Mr. Money Mustache Entrepreneurship forum

The forum on Entrepreneurship at Mr. Money Mustache is active and full of advice. You'll read real stories of people who are building up their own businesses in order to increase their income. You don't have to be a full-time entrepreneur or business owner to benefit from the knowledge shared here. In fact, it's a great community to be part of for encouragement as you turn your hobby or side hustle into something more profitable.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Think Like a Billionaire When You’re Broke

Paul Michael — Wed, 24 May 2017 08:00:08 +0000

It’s not easy being broke. As of 2014, there were almost 47 million Americans living below the poverty line. That’s roughly 15 percent of the population.

To simply tell these people to "start thinking like a billionaire" may seem tone deaf, or even cruel. But it actually is great advice. Millionaires and billionaires, especially those who are self-made, tend to think in a completely different way. It all comes down to a different view of the world. And it’s time to embrace that mindset.

Don't think about the money you don’t have

To illustrate this point, consider the test Dr. Tina Seelig gave her Stanford University students. She challenged them to make as much money as possible in two hours using only $5 of "seed funding" tucked in an envelope. Working in teams, they could spend as many hours as they wanted planning, but once they tore open the envelope, the clock started ticking. The most successful results came from the teams that realized a very important part of the test — namely, that the $5 was a red herring.

Concentrating on the small sum of money put them in a box, so they ignored it, and instead looked at ways to make money from scratch. Some of the ideas were incredible. One team made $650 by selling their time; they sold their three-minute presentation slot to a firm looking to recruit students in the class. Brilliant. Now that’s how a billionaire thinks — looking at the opportunity, not the handicap.

The lesson here is that the money you do not have right now should not, in any way, hold you back. If you don’t have funds, find a way to use what you do have to make money. What can you sell? Is it your time? Is it knowledge? Is it a service? The lack of money in your account should not place a limit on your ideas.

Never say "I can’t afford it." Instead ask "How can I afford it?"

You may have heard it often growing up. "Dad, can I get a new bike?" "No, we can’t afford it." That’s how poor and middle class people often think. They look at their current financial situation, and make a quick calculation. But that’s the wrong approach.

If you need something, or your kid wants something that isn’t just a frivolous whim, don’t automatically say, "No, we can’t afford it." Instead, counter with a question. Namely, "OK … how can we afford that?"

Maybe it’s a new stove, or replacing the old, worn-out car. If you immediately shut down the possibility, you’ll never get it. A billionaire doesn’t place these limits on ideas or dreams. They look into funding sources, ways to create capital, and many other money-generating avenues. And we’re not talking about pulling out your credit card for something you can’t afford and don’t need.

For necessities — or important dreams — it doesn’t matter if the object in question costs $100 or $100,000,000. The process is still the same. How can you afford that? What can you do to make it happen? Start thinking. (See also: How to Come Up With $1,000 in the Next 30 Days)

See change as opportunity

Most of us are afraid of a major life change, be it a job loss, financial obligation, or a move to another state. These are stressful and difficult situations. But a billionaire sees any kind of change, even those most of us would consider negative, as an opportunity.

If it’s a job loss, it has created a glut of free time to use for a new venture. What can you do with that time that could create money in new and exciting ways? Think back to those college students with the $5 challenge. Some of them decided to make money waiting in line for people. They were making $20 a shot. Considering the minimum wage is currently $7.25, that’s almost three times the amount for literally doing nothing.

Fear of change is natural. But fear is a negative response to any situation, and in the long run, it will cripple your thinking and your ability to bounce back. Whatever the situation, take control and think positively. How can you turn it to your advantage? What do you have now that you did not have before this major event happened? Then, run with it.

Every penny saved is a penny earned

Billionaires do not blow money. People have this idea, which comes from a select few who hog the limelight, that the superrich are super wasteful. But they did not become rich by throwing money away.

There is a now infamous anecdote about a billionaire who went into a New York bank asking for a $5,000 loan, and put his Bentley up as collateral. It was approved, and the bank employee parked the car in their underground garage. Two weeks later, the man returned from vacation, and paid back the $5,000, plus the $15.41 it accrued in interest. When asked why he, a rich man, would require such a small loan, he replied "Where else could I have parked my car in New York City for two weeks, for only $15?!"

The story isn't real, but the strategy definitely is. This is how a billionaire would actually think about such a situation. Sure, they can afford the finest parking in the city, but why pay through the nose for it when they can get it for almost nothing?

You can think the same way. What are you paying for, right now, that could be reduced in cost? What ways are there to save money on everyday purchases? From extreme couponing, to haggling and bartering, you have many options available to you.

Time really is money

Donald Trump once stated that he never wastes time. Even when he’s on the golf course, he’s doing business. He sleeps as little as possible, because every moment he’s awake is an opportunity to make money or create something.

Look at the ways you spend your time, and see how it can be maximized to work for you. If you’re on the bus going to work, are you staring out of the window, or reading a book that could teach you a new skill? Do you have hobbies that are productive?

Even playing video games can make you a small fortune, if you record yourself playing and post the videos to YouTube and Twitch. Indeed, the average "pro-streamer" makes between $3,000–$5,000 per month from 40 hours per week of game time. Think about that. They are literally being paid a living wage to play video games. Something that many people believe to be a waste of time has been turned into an income stream.

Consider every detail

It’s been said that billionaires look at the bigger picture. It's often called "the 30,000 foot view," which basically means seeing the layout, but not the houses, driveways, and storefronts. This is, in fact, the complete opposite of how a successful business operator thinks. Yes, the big picture is important at the get-go. But the details are what drives the success or failure of a venture. Often, it’s a small detail that was overlooked that causes something to fail.

Look at your own budget, and lifestyle, with that same eye for details. Are you paying $1 too much for something, especially a monthly bill? Did you examine the contract for your lease? Is there something in it that gives you a chance to save money? Did you get every deal you were supposed to get at the grocery store? Check the receipt.

Back in 2005, a software company hid a $1,000 prize in the terms and conditions of its user agreement. It took five months, and over 3,000 sales, before someone actually read the agreement and claimed the money. Details count. Pay attention to them, and you could see incremental changes that really start to add up.

Remember, billionaires and millionaires may live extravagant lives, but don't let that stop you from thinking the same way they do. It will make you wealthier in the process.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Inspiring Quotes About Money From Successful Women

Emily Guy Birken — Mon, 08 May 2017 08:00:12 +0000

It's no secret that most people tend to think of finance as a boys' club. But women have been blazing trails, disrupting entrenched ideas and industries, and making serious bank for centuries. It is unfortunate that their words of wisdom have been so often overlooked.

The following quotes from female financial gurus will inspire anyone to improve their lives, their careers, and their bottom lines.

1. "Be thankful for what you have; you'll end up having more. If you concentrate on what you don't have, you will never, ever have enough." — Oprah Winfrey

At a net worth of $3.1 billion, Oprah Winfrey is one of the richest women in America — but she didn't start out that way.

Winfrey was born into poverty and raised until age six by her grandmother before bouncing back and forth between her mother and father. She suffered sexual abuse at the hands of family members, and at age 14, she had a baby who died within days.

Her early life was not characterized by abundance, and yet Winfrey still learned to be thankful for what she had, rather than what she lacked. Her sense of gratitude helped her to focus on building her career rather than feel bitter over her childhood of abuse and neglect.

Winfrey's attitude about the power of gratitude is actually borne out by scientific research. People who are thankful for what they already have are more successful, more emotionally resilient, and often even physically healthier. That's because they recognize there is no way to "have it all." Feeling grateful for what they do have makes it possible to focus on appreciating the life they live right now, while also working toward the life they want to live.

The fact that Winfrey overcame such a difficult, scarring childhood and feels grateful for the goodness in her life is part of what makes her so beloved. We can all learn to appreciate the abundance we already have while we work to build the life, career, and relationships we want.

2. "One thing I've learned is that I'm not the owner of my talent; I'm the manager of it." — Madonna

Madonna may be the original "Material Girl," but the singer, songwriter, actress, entrepreneur, and writer has parlayed her incredible talent into an estimated net worth of $560 million — meaning she never again has to wait for a man to present her with diamonds.

Madonna's description of her talent may sound surprising. If she is not the owner of her own creativity and money savvy, then who is?

As it turns out, Madonna's view of her abilities is reflective of something called the "growth mindset." Rather than viewing her talent as an innate and fixed part of herself, Madonna sees it as something that she can manage and grow. If she believed that she "owned" her talent, then it would be easy for her to rest on her laurels and assume there is nothing new she could do with her music or writing.

But as the manager of a prodigious talent, Madonna accepts the challenge of trying to push her creative boundaries and recreate herself over and over again. This mindset has allowed her to have an unparalleled career that has spanned close to four decades.

That makes it an attitude we should all try to emulate. Whatever abilities we have can always be managed and improved by refusing to see them as static, which can lead to great success.

3. "My best successes came on the heels of my failures." — Barbara Corcoran

Most people know Barbara Corcoran from her role on the show Shark Tank, but the Manhattan real estate investor, who is now worth $40 million, started off as a serially unemployed teacher and sometimes-waitress. After failing at 22 different jobs, she borrowed $1,000 from her boyfriend in 1973, and started a real estate business that she called The Corcoran Group. The boyfriend didn't last, but the business did. It grew to a $66 million company, which she sold in 2001 before embarking on her writing, speaking, consulting, and television career.

Corcoran understood throughout her series of early failures that each of those missteps did not reflect poorly on her. They were simply different options to try until she found the right fit for her career. Since she did not internalize these failures, she was able to take the lessons she learned from them and find success.

We should all take a page from Barbara Corcoran and learn to see each failure as a potential steppingstone to success. Picking yourself up after a failure may be difficult, but that is the only way you will ever succeed.

4. "Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity. Luxury is the opposite of status. It is the ability to make a living by being oneself. It is the freedom to refuse to live by habit. Luxury is liberty. Luxury is elegance." — Coco Chanel

The iconic creator of the Chanel brand, Coco Chanel was born to an impoverished family in France. She died in 1971 with a net worth of $100 million. Her commitment to fashion and luxury made her one of the most influential people of the 20th Century, and her fashion line is worth $19 billion to this day.

Growing up, Chanel knew the deprivations of poverty. This was part of the reason why she was so determined to enjoy luxury throughout her adult life. For Chanel, luxury was not defined by the corseted, heavy dresses that had been haute couture for many years before her own success. For Chanel, luxury in fashion had to be comfortable and true to the wearer. Trying to impress with excess was vulgar, and that was the true opposite of luxury.

By Chanel's definition, luxury is available to anyone, no matter their income. And this is an important distinction to remember as you pursue your own successes. You can easily enjoy the luxurious comfort of being yourself, even if your budget runs more Old Navy than Chanel.

5. "Money doesn't fall out of the sky. We had a business plan, an extraordinary proposal, and it was the right timing." — Sheila Johnson

Sheila Johnson is the co-founder of Black Entertainment Television and current owner of the WNBA team the Washington Mystics. Her net worth is currently estimated to be $710 million — but she wants to make sure that anyone who aspires to her kind of wealth understands what it took to get there.

Johnson is not a multi-multi millionaire by accident. In 1979, she and her husband Robert Johnson created the television channel BET in order to provide a crucial outlet for African American voices in media. They knew exactly what they could offer, and they worked hard to create an excellent proposal in order to secure the funding they needed. They were also lucky to jump on the growth of television programming in the late '70s and early '80s. BET grew to the point where the Johnsons sold the channel in 2001 for $2.4 billion.

Johnson makes it clear that there is no such thing as overnight success. You need to have a plan, you need to time things right, and you need to be able to persuade people to invest in you.

6. "Did we ever plan on being billionaires? No, but we wanted to be millionaires." — Diane Hendricks

With a net worth of $4.9 billion, Diane Hendricks is the richest self-made woman in America. She and her husband Ken Hendricks created the Wisconsin-based ABC Supply Co. in 1982, which sells roofing, windows, gutters, and siding for residential and commercial buildings.

Their success is all the more impressive considering the fact that Ken was a high school dropout and Diane only completed a high school education. The husband-and-wife team built their empire through hard work, financial savvy, and a shared vision. They both wanted to be millionaires and aimed their sights at that impressive goal.

The fact that they were both on the same page in terms of growing their business, along with their lofty goals for their finances, eventually made them billionaires. They did not shy away from wanting financial success, so they were always ready to pounce when opportunities presented themselves.

If you hope to emulate the Hendrickses, you would do well to partner with someone who shares your same goals and work ethic. Your level of success just might surprise you.

Heeding the words of wise women

The rags-to-riches stories of self-made women can offer incredible insight, hope, and inspiration to anyone who dreams of a successful life. Their words make it clear that opportunities are available to anyone, provided you have the drive, the mindset, the gratitude, and the audacity to chase your dreams.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Millennials Have Changed Money (So Far)

Mikey Rox — Fri, 02 Dec 2016 11:00:10 +0000

Every generation of Americans have changed the face of this nation in its own way.

In the 1990s, our country was very different from it was in the '70s, which, itself, was a far cry from the 1950s. Today, Millennials are overhauling our political, social, and financial landscape so much that it's barely recognizable from just 10 years ago, and that's not necessarily a bad thing (depending on where you stand on certain issues.)

As far as money is concerned at least, the "Me Generation" is making it easier to earn money and more efficient to spend it, while reinventing entire aspects of personal finance, like investing. They're living up to the old idiom of putting their money where their mouth is — and here's how.

1. Cash Back Is Growing While Coupons Fall Behind

I used to be a major coupon clipper, once saving more than $80 on my grocery bill on double-coupon day at my local supermarket. My couponing prowess (and interest) has consistently waned over the years. Instead, substituting my savings with cash back deals through my bank and grocery apps, like Ibotta, Checkout 51, and SavingStar, has skyrocketed.

I'm not alone. Millennials are hopping aboard the rebate train in droves.

If you're not familiar with the concept of the cash back service, it's basically the opposite of the upfront savings that coupons provide. Instead, these rebate providers pay out the consumer on the back-end, after the shopping trip is complete.

SavingStar, for instance, offers deals from popular grocery brands like Cheerios, Yoplait, Dove, and more. For some chains, it'll link deals directly to shoppers' loyalty cards. For other stores, shoppers can submit a picture of their receipt through the app or website. In either case, shoppers earn cash back into their SavingStar accounts, which can be paid out to a bank or PayPal account, or as gift cards from Starbucks, iTunes, and AMC Theatres.

Of course, cash-back-adopting Millennials would maximize their savings by using both coupons and the rebate services, but, ya know — kids these days.

2. Investing Is Being Completely Reinvented

As an investor myself, I've avoided putting money in stocks (I just don't trust that market), preferring to invest in real estate or other entrepreneurs' business ideas. Michael Banks, founder of investing and personal finance blog Fortunate Investor, says I'm in good company. Millennials are turning the investment industry on its head by rethinking long-held strategies, perhaps out of necessity.

"As the generation with the largest student debt and toughest-looking future, traditional investing is out of the picture," Banks says. "Instead, more Millennials are relying on micro-investing — investing small amounts of money frequently — to accomplish their savings goals."

Micro-investing allows would-be investors with little starting capital to bypass the roadblocks that usually keep them out of the game — minimum investment levels, trading costs, market research, and really just not having a ton of money.

"Investing has always had a high buy-in value, which you would think eliminates the generation that is doing everything they can to save whatever they have — but a handful of apps are changing that, and opening the doors for Millennials to try their hands at creating their own investment portfolios," adds Banks.

3. Hardly Anyone Under Age 35 Walks Into a Bank Anymore

Your grandma probably still goes to the brick-and-mortar bank. Heck, maybe even your dad likes to roll in from time to time for a withdrawal and a lollipop, but you'll be hard-pressed to find a Millennial in a bank, unless it's to grab cash from an ATM for after-work drinks (or working there). Rather, they prefer the easy-breezy mobile banking that accommodates their fast-paced lifestyle.

According to a recent study, 75% of Millennials are at least somewhat reliant on a mobile banking app to interact with their bank for tasks such as depositing or sending checks, checking their balance, and paying bills.

"This seems like somewhat of a no-brainer, but the power of convenience and control often goes overlooked," writes creative media agency Brokaw. "Within mobile interactions, there are multiple avenues in which banks can increase their influence and exposure, including text messages and push notifications. Take FirstMerit Bank's text banking and alerts, for example: It allows their customers to request activity alerts for different aspects of their account right from their phone."

Legit, though — mobile depositing is one of the best inventions of the 21st century. I will stand by that until my retinas are replaced with laser scanners that do all my banking for me. Which is totally gonna happen, ya know.

4. The Monetization of Ideas

Think you need to push product to turn a profit? Old school. Millennials' intellectual property is their bread and butter — and they're fiercely protective of it.

"The increasing monetization of ideas is one trend Millennials are driving, which doesn't look to be slowing down anytime soon." explains Monica Mizzi, editor of LegalTemplates.net, a website that equips people with the tools to be their own legal advocates. "The boom in startup culture can be largely attributed to the throng of Millennials who are taking the plunge to make their 'one in a million' idea come to life."

Successive studies highlight that a growing number of Millennials are bucking the trend of traditional employment to try their hand at entrepreneurship. With this has come an increasing interest in using nondisclosure agreements to protect their business ideas.

"While using an NDA to protect business ideas is not a novel concept, growing market competition has led Millennials to become more proactive in legally protecting their ideas — even before they have come to fruition," Mizzi continues. "It's not uncommon to hear reports of big companies pinching ideas or being 'inspired' by their competitors' ideas, so Millennials wanting to become entrepreneurs are more conscious of ensuring their ideas are never compromised."

5. Instant Financial Transactions Are Becoming More Common

When do Millennials want their money? Now!

Domestic instant transaction service has become commonplace for this demographic — I get paid instantly via Venmo when I deposit money from my Lyft earnings (like a boss!) — and its expansion to international exchanges is inevitable. The problem is, sending money internationally is a bit trickier with more complex compliance and regulations needs. But at least one service right now, Remitly, has built compliance and regulation rules into their app making it possible to meet Millennials' need for speed and convenience.

6. Digital Currency Has Real Value

Digital, or cryptocurrency as it's formally known, went mainstream with the runaway success of Bitcoin — a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency (as explained by Wikipedia). In layman's terms, it's cyber money that you can spend wherever cyber money is accepted, which is a real thing in this day and age.

But Bitcoin isn't the be-all or end-all of digital currency. Imitators have popped up, relevant in their own rights. Using a digital currency called Steem, for example, users of brand-new social network Steemit (which looks a lot like Reddit) get paid for posting and curating content. And it's become wildly popular. After launching this past May, Steemit (which has a 26-year-old CEO) already has nearly 120,000 registered users and posts nearly 1,000,000 unique visitors per month. They've also paid out more than $4,000,000 in rewards to users to date.

While digital currency is still in its infancy despite these successes, you can expect to see more and more of it infiltrating sectors of industry. Will it ever replace cash or credit? Probably not. But it's certainly an interesting concept as a new form of legitimate currency as we've move forward with Millennials at the helm.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways Millennials Can Become Bosses Sooner

Mikey Rox — Wed, 09 Sep 2015 21:00:29 +0000

Our generation receives a lot of flack for being spoiled and entitled, but there's no denying that we're ambitious. We want to be in control of our lives and careers, and for some, this means becoming the person who calls the shots. The best way to do that is through entrepreneurship (I had to slip that in there), but if you're hellbent on taking the corporate path, here are five ways you can claim your rightful position at the top faster than all those naysayers think you can.

1. Volunteer for Leadership Roles

To move up faster and become a boss sooner, you have to show your employer from the very beginning that you're capable of a leadership role. This isn't the time to second-guess yourself or hide in the background.

Jonathan Coughtrey, content manager of the personal finance blog Action Economics!, advises volunteering for leadership roles whenever there's an opportunity.

"I became a supervisor over a crew of six people in my company when I was 23," he says. "This year — at age 28 — I was promoted to management and I am responsible for the day-to-day implementation of all the work on our project, which encompasses 75 people per shift."

If you're young and fresh out of college, your boss may underestimate your ability and unfairly question whether you can effectively lead or manage a team. Volunteering for leadership-type assignments, however, showcases your abilities, giving your employer the opportunity to see you in action. You might have knowledge and traits that some senior employees lack, putting you in line for promotions sooner.

"I had to learn more about our procedures than the other crew members, and this knowledge helped me become a subject matter expert and go-to person," Coughtrey continues. "Upper management noticed this and when opportunities opened up, my name was on the top of the list."

2. Develop the Qualities of a Boss

It takes more than education and stellar performance reviews to become a boss early in your career; you also need to act like a boss. Employers look at the big picture when deciding whether to promote an employee to a management or supervisory role. Do you think you have what it takes to lead people and contribute to the company's success?

Some Millennials make the mistake of only setting their eyes on becoming a boss, and they fail to consider what it actually takes to get to this point.

"Focus on what traits and accomplishments are needed to get to where you want to be," says Brock Murray, co-owner and director of web marketing with seoplus+, a digital marketing agency. "A good boss leads by example, communicates well, shows passion, discipline, organization, creativity, and goes above and beyond the status quo."

Learn how to embody these traits and you'll not only win the boss title, you'll also win respect and become an effective leader.

3. Learn How to Build Face-to-Face Relationships

As a tech-savvy generation, you're a pro at e-mail, text messaging, and social media, to the point where you might not remember the last time you picked up the phone and had an actual conversation. (I'm with you, brothers and sisters; I rarely use the phone for voice activities myself.) However, while knowledge of technology and the digital world is highly beneficial in today's corporate world, being a boss requires familiarity with all types of communication. People of older generations often prefer face-to-face communication, so you have to be adaptable.

Tim Elmore, founder and leader of Growing Leaders, a leadership prep program for students, explains the danger of relying too heavily on technology.

"Leaders of younger generations are from the most social generation in history," he says. "They are in constant contact with peers and family through iMessages and social media. But, they are also highly isolated because so much of their relational contact is through technology. This has led to poor people skills, low emotional intelligence, and the inability to handle interpersonal challenges."

This doesn't imply ditching social media or text messaging, but at the same time, don't be afraid to take advantage of opportunities to meet face-to-face or network, which can improve your communication and people skills, and help you become a well-rounded boss.

4. Ask for What You Want

Because of your age, your employer might think becoming a boss is the farthest thing from your mind. So even if he knows you're capable of this role, he might hold off offering you a promotion. Additionally, you might hesitate expressing your desire to move up for fear of coming off as overconfident or arrogant. But according to career and leadership coach Kamara Toffolo, who's also a Millennial, you're only holding yourself back by keeping quiet.

"Often your own boss has no idea you want to be a boss yourself, so have the conversation," she advises.

Toffolo also believes it's important for Millennials to realize they don't have to sit idly on the sidelines and think hard work alone will get them to the top. This doesn't always work.

"Ask them how you can groom and prepare yourself for a management role and become an attractive candidate," she says.

5. Pave Your Own Path

Of course, advancing up the career ladder at work isn't the only way to become a boss. If you're feeling unfulfilled, boxed in, or like you're losing your mind, don't be afraid to jump ship and become the boss of your own company.

"The biggest mistake most Millennials make is assuming that the path their parents took will still work for them. Starting in the mailroom and working your way up to CEO just doesn't work anymore," explains Nick Fox, career coach and founder of Success Hacking. "It wasn't until I jumped ship to run my own business that I realized that the greatest way to become a boss is to forge your own path."

If you're living at home or have minimum expenses, or if you don't have a spouse or children, now might be as good a time as ever to build a business from the ground up and be in complete control of your income and time. It's much harder to take a leap when you're older and carry more responsibilities.

"When you're young, you have a lot of leeway to make mistakes," says Fox.

In other words, the time is now.

Are you a Millennial who's making moves to become his or her own boss? Share your story in the comments below.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 6 Youngest Entrepreneurs to Make It Big

Damian Davila — Fri, 05 Sep 2014 09:00:05 +0000

Kids these days.

…are super rich. Just when you think getting a job couldn't get any more competitive, a 17-year old invents a mobile application that Yahoo buys for an undisclosed amount. And he is not alone. Children and teenagers around the country are getting up earlier than ever to get that worm.

Here are six of the youngest entrepreneurs to make it big.

1. Ashley Qualls

Girls can code, just ask Michigan native Ashley Qualls. Back in 2008, at age 14 she started the website whateverlife.com to provide Myspace layouts and HTML tutorials for other teens. It all took off from there. Through advertising income alone, Ashley is able to make about $70,000 in monthly revenue from her 7 million monthly visitors. She has received several offers to buy her company, including one for $1.5 million, but she has turned all of them down.

2. Dave and Catherine Cook

Back in 1997, siblings Dave and Catherine (a high school junior and sophomore respectively) launched the social media site, MyYearbook.com. By being able to go head to head with titans such as MySpace and Facebook, the teen whizzes have received extensive media coverage over the years, including CNBC, Mashable, ABC, CNN, MSNBC, and Fox. By 2006, the site had raised $4.1 million in venture capital funding and had 3 million members worldwide.

The original site has gone through several rebranding exercises and mergers, but Catherine continues to attract the media attention with her lessons on entrepreneurship and marketing.

3. Caine Monroy

Not all young entrepreneurs come from the tech world. Meet L.A. resident Caine Monroy, who at just nine years old became a successful business owner. Back in 2011, Caine spent most of his summer inside his dad's auto parts store building an elaborate arcade made entirely out of cardboard and tape. Almost the entire summer went by and he had yet to have a customer. Fortunately, his only customer came in the form of filmmaker Nirvan, who bought a door handle for his car and a $2 FunPass to Cain's Arcade. Nirvan was so inspired by Cain's entrepreneurship that Nirvan made a short film on Caine's Arcade. Through this film, Caine has inspired other kids to become owners of their own arcades, raised over $220,000 for his college studies, and become a TED speaker.

4. Maddie and Margot Bradshaw

Here is another pair of power siblings. At age 10, Maddie Bradshaw used $300 of her own money and started making and selling decorated bottle cap jewelry. Her entrepreneurship has turned her business into a national brand called M3 Girl Designs, selling 50,000 necklaces in less than two year's time.

Maddie's younger sister, Margot started designing bottle cap necklaces at age 6. Margot and Maddie's designs can be worn as charms on various accessories, such as necklaces and hairpins. Both sisters had a reported $1.5 million in sales and 25 people on staff in 2008. Maddie also authored a how-to guide for young entrepreneurs.

5. Hart Main

What started as a healthy sibling rivalry, turned into a full-on online business. In 2010, 13-year old Hart Main from Marysville, Ohio decided that there was a market for manly scented candles. He put $100 of his own money and his parents pitched an extra $200 to develop his candles, which include scents such as NY Style Pizza, Bacon, and Grandpa's Pipe.

As of 2012, over 25,000 ManCans have been sold in over 60 stores around the country. The name ManCans comes from the fact that the candles are developed on empty soup cans that have been first donated to a soup kitchen and then cleaned up for production. Due to the success of his manly scents, in 2013 Main expanded his brand of candles with SheCans.

6. Sean Belnick

What were you doing when you were age 16? If you were to ask Sean Belnick, he would answer that he made his first $1 million. Back in 2001, Sean and and his father jumped on the dotcom bandwagon with Bizchair.com, an online retailer of office furniture. Sean noticed that several middlemen would buy from his father's business and then sell those goods with a markup. So, Sean decided to cut all middlemen and sell all office furniture directly online.

Unlike other dot coms, the Georgia-based Bizchair.com weathered the storm and achieved $15 million in sales in 2005 and over $40 million in 2007. Bizchair.com's clientele includes the Pentagon, Fox's American Idol, Google, and Microsoft. He advises aspiring entrepreneurs to start as early as possible, "I started when I was 14.There was a lot of great information on the Internet. Just do the research and find a way to do what you want to do."

Now if you excuse me, I gotta go Google how to sell manly scented tanning lotion.

Have you heard of other very young entrepreneurs? Please share in comments.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Starting Your Dream Business Is Easier Than You Think — Here's How

Jim Wang — Thu, 13 Feb 2014 11:36:35 +0000

One of the great pleasures of owning my own business and working for myself is that I get to talk to a lot of aspiring entrepreneurs.

They want to be entrepreneurs, but they aren't quite there yet. They read all the business articles online, they constantly make plans, they aspire to own their business and maybe one day they will get there. (See also: 10 Home-Based Side Business Ideas)

I've heard Mark Cuban, and others, call them "wantrepreneurs" on Shark Tank because they are perpetually in the pre-business phase. Having ideas is great, but executing them is what separates true entrepreneurs and wantrepreneurs.

Unfortunately, so many of them never start a business because they put up barriers in their own mind. One of those barriers is that they think "starting a business" is an arduous task that will take them months and months, if not years, of planning and preparation.

In reality, the paperwork of starting a business is almost trivial compared to everything else you'll need to do to start and run a business. But before you embark on filing anything, make one sale.

Make One Sale

Before you go down the route of "starting" a side business, make a sale. Just one.

If you wanted to start a snow shoveling service, would you start by incorporating your business, getting insurance, paying for advertising, or opening a bank account?

No, that's crazy. You would find a shovel and go door to door looking for people to pay you to shovel their driveway.

That's what you should be doing with whatever business you're considering. Make one sale. You will learn a tremendous amount about your market by selling your product or service to one person. After you make one sale, sell it to a second.

After you've made the first dozen sales, you'll know whether you have a business on your hands, a nice hobby, or a dream that can't be realized. It's valuable to do this before you waste time and money doing the paperwork of forming a business. (See also: Awesome Money-Making Hobbies)

Also, it's important to actually sell a product or service, not ask people if they would buy it. Most people are polite and tell you they would buy. But few people are so polite that they'd actually pay you for something they don't want.

Once you've made enough sales to be sure this is a business, it's time to make it legitimate.

Startup Paperwork

So you've made some sales and you're ready to make it official. You need to do some paperwork. (See also: 250+ Tips for Small Business Owners)

State Licenses

The first step is to research the licensing and bonding requirements of your state. Some businesses need a license to operate. If you're starting a blog, you don't need to get a license or a bond to operate. If you're starting a tattoo parlor in Maryland, you need a Tattoo License before you can do business. Check your state's laws for what you'll need as it's different for each state.

Insurance and Bonds

The next step is to research your insurance needs. A surety bond covers guarantee of service but liability insurance protects you from accidents, lawsuits, and other business disasters. Some businesses need a surety bond, nearly all businesses should have liability insurance. If you intend to hire employees, workers comp insurance may also be necessary, as it protects your business from any medical or legal expenses associated with accidents on the job.

LLC, EIN, and a Checking Account

If you're starting a simple business that has no licensing, bonding, or major insurance requirements, the rest is easy. It's a three step process:

Incorporate as a Limited Liability Company (LLC)
Obtain an Employer Identification Number (EIN)
Open a Business Checking Account

Do you need to incorporate?

It depends. Incorporating is a must if there are any potential liabilities associated with your business because it shields you from your business, if set up properly. You are often not required to incorporate and can operate as a sole proprietor. As is the case with any type of legal advice, check with a professional and with the requirements of your state.

Incorporate as an LLC

Incorporating is often a straightforward process, but it depends on your state because the complexity varies. In Maryland, it's a one-page form (Articles of Organization) with a handful of fields.

One minor bit of advice, in the area where you write in the "purpose" of the company, use this: "To engage in any lawful activity for which a limited liability company may be organized."

Some states leave this Purpose field blank, some states automatically fill it out with a similar phrase (California automatically fills it out with "The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be organized under the California Revised Uniform Limited Liability Company Act." Don't get caught up in writing something descriptive here, it'll only slow you down.

The cost associated with incorporating will include the one-time filing fee. In some cases, it may also include annual fees too. In Maryland, every business has to file a personal property tax return that has a minimum $300 tax. (See also: Is Starting a Small Business for the Tax Deductions Worth It?)

Obtain an EIN

An EIN is like a Social Security Number for your business — you can get one for free by applying with the IRS.

Once you get an EIN, use this instead of your Social Security Number on all forms for your business. Congratulations! You've graduated from sole proprietorship to an LLC.

Open a Business Checking Account

Once you have the incorporation confirmation letter (original with stamps) and your EIN, go to your favorite bank and open a business checking account. Look for one with low minimums and no fees. Most banks make their money off business accounts with merchant processing and other add-ons, so the base checking product shouldn't cost you anything. (See also: Best Credit Cards for Small Businesses)

Use this checking account as the center of your business banking world. Any revenue you receive should go into this account. Any bills you pay should come out of this account.

Now Go Back to Selling

Once you do those three steps, you're officially a business. Don't forget to file the necessary tax forms and get back to the important part of business, getting more of it.

Good luck!

Guest Post Blurb:

Jim shares insights and lessons learned with new bloggers at Microblogger.com. Be sure to sign up for his free (and very in-depth) Create a Lifetime Income Blog course to learn from his experiences.

This article is from Jim Wang of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Work Experience Without Having a Job

Kelly Kehoe — Fri, 30 Aug 2013 09:48:29 +0000

"Need experience to get a job; need a job to get experience" is one of the most frustrating paradoxes faced by those who are still in school or in the midst of a career change. Although unemployment numbers are slowly falling, the race to land an entry-level job is not only hyper-competitive, but also somewhat deceptive, since some employers require a couple years of experience before applicants qualify for even an entry-level position. (See also: Awesome Accomplishments: 50+ Questions to Ask Yourself and Figure Out What You've Done)

If you're currently searching for a job but don't have extensive work experience to back you up, boost your resume and make valuable contacts in the industry you want to work in by exploring some alternatives.

Internships

One of the most popular ways of getting your foot in the door is by completing an internship. Depending on the industry, these may be paid or unpaid, part time or full time, short term or for several months, and for college credit or just for another bullet point for your resume.

Internships.com and InternMatch are great resources for finding internships in your area (remote/virtual internships are also available). If you go above and beyond what is expected of you during your internship, your boss might write a letter of recommendation, which will help you stand out from the crowd when you apply for your next job. Or better yet, your internship could potentially lead to a full time, paid position with the company.

Volunteer

If you want to make a difference in your community and gain valuable experience while you're at it, consider becoming a volunteer. Like many internships, this isn't paid work, but compared to the regular job market, volunteer positions are much more readily available. Although there are certainly differences between regular jobs and volunteer positions, you could perform similar tasks at a nonprofit as you would in a normal work environment (office work, teaching, researching, event planning, etc.). At the very least, you'll likely improve your communication skills and make connections that can serve as references later on when you're job hunting. (See also: Translating Volunteer Experiences to Workplace Credentials)

Take Specialized Classes

Being a college student or graduate is almost mandatory for decent-paying jobs these days, but employers want more than employees who learned everything in a classroom. Consider taking some hands-on classes that relate to the industry you want to work in. This can be anything from wood or metal shop to culinary classes. Many community colleges offer trade-specific classes, and some high schools have a Regional Occupational Program (ROP) for their students. ROP offers hands-on courses to prepare students for careers in industries such as health care, engineering, manufacturing, tourism & hospitality, and more.

Start Up Your Own Startup

Entrepreneurship isn't for everyone, but if you're really determined to get your foot in the door, you could run your own side business until you amass the experience needed for your dream job. This is probably the most complex way of getting experience, but you may find that working for yourself is more rewarding after all. Either way, entrepreneurship will help you add valuable experience to your resume, as well as show you both the employer and employee's perspectives in your industry. (See also: 6 Reasons Your Great Startup Business Is Doomed)

Freelance

If running a business isn't your cup of tea, and you offer services rather than products, consider getting into freelancing.

Upwork is a popular website for new freelancers, although there's one thing you should know about bidding sites — it's a race to the bottom. You'll be competing with other freelancers, many of whom are willing to charge minimal prices just to get work. An alternative to this is building a portfolio in which you have several pieces of your work available for potential employers to peruse prior to hiring you. As an independent contractor, you could also offer your services for free for a couple clients when you're just starting out (in exchange for portfolio samples and references). (See also: New Year, New Resume)

Final Word

Landing a new job — even in a struggling economic climate — isn't impossible. It's admittedly harder for those who don't have firsthand experience required by many employers, but as you can see from the points above, there are ways around this problem.

How have you gotten experience without first having a job? Tell us your job search story in the comment section below!

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This article is from Kelly Kehoe of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Key Characteristics of the Entrepreneurial Mind

Kentin Waits — Fri, 30 Dec 2011 17:59:36 +0000

Link:

http://www.openforum.com/articles/5-essential-characteristics-of-the-entrepreneu...

Inventors, business owners, and corporate superstars who reshape and remake companies are some of our strongest cultural heroes. They reflect an essential part of the American story—the story of the average person who sees an opportunity, seizes it, and in the process creates something new.

But what do these entrepreneurs share? What qualities or ways of thinking characterize the entrepreneurial mind, and can this type of innovative thinking be cultivated in others? Let’s explore some of hallmarks of entrepreneurial thinking to better understand how it works and how we can challenge and bend our own thinking to achieve better results.

1. Creativity

The seed of all true entrepreneurship is the ability to see things differently. From new products to new processes, entrepreneurs are driven by the uncanny knack to see holes in the marketplace and devise innovations to fill them. Though it’s not the only essential quality to success, creativity may be the foundational mental skill. Entrepreneurs ask the “what ifs” that drive inquisitiveness, and they’re able to let go of what they already know to source fresh information and new ways of thinking about a problem.

2. Suspicion of Predictors

Entrepreneurs tend not to labor under the assumption that data is the sole predictor of an outcome. Especially in new markets and with new products where data is largely interpretive or extrapolated, entrepreneurs are undaunted by the typical predictors that may put off fainter hearts. One study by Inc. magazine found that nearly 60 percent of Inc. 500 CEOs had not written business plans prior to the launch of their companies, and only 12 percent had done market research. These entrepreneurs realize that creating something new is a heated evolutionary contest, and no one can know the outcome with any amount of certainty. It’s as if their thinking, freed from the “no’s” of the data, can begin to build, test, and refine.

3. Comfort with Uncertainty

Similarly, a distrust of prediction and analysis creates an atmosphere where uncertainty rules. Indeed, uncertainty is the very essence of entrepreneurship. Entrepreneurs are comfortable existing in that space between raw idea and successful product, and they tend to thrive in the wide middle ground of experimentation, revision, and testing.

4. Openness to Experimentation

A comfort with experimentation goes beyond educated trial and error. The ability to experiment with products, processes, and outcomes no matter where the results may lead is the key element of this quality. It’s difficult to fully appreciate how much of what we call “experimental” is actually quite predictable. Most people are comfortable testing new products or systems with a range of one or two possible outcomes. When the results fall nicely within the range, we move on to the next step. But for entrepreneurs who are bringing something new and novel to the marketplace, experimentation can be truly…experimental. Removing expectations and letting the results lead you in completely new directions is the attribute that marks a truly entrepreneurial mind.

5. Functional Humility

Egos can destroy the very best ideas. Entrepreneurs who are committed to solving a business problem or reinventing a product or service display a functional humility. They understand that their egos are only useful in moving the idea forward, not dictating outcomes or wrestling to make results conform to a preconceived notion. The very best entrepreneurs may constantly generate and promote their own ideas, but they think and act collaboratively and are staunchly solutions-focused.

So can everyone have an entrepreneurial mind? Probably not. But with time and practice, we can begin to think more like entrepreneurs. We can start to make subtle shifts in old, reflexive thinking that keeps us from exploring a new idea or taking the leap and launching our own business. Entrepreneurial thinking may be less of a destination and more of journey as we push our own boundaries and explore exactly what we’re capable of. There are few things more elemental than how we think—what kind of beneficial chaos could we create if we began to think differently?

This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Entrepreneur’s Dilemma: For Love or Money?

Justine Grey — Wed, 28 Dec 2011 23:57:05 +0000

Link:

http://www.openforum.com/articles/the-entrepreneurs-dilemma-for-love-or-money

We’ve all heard the phrase, “follow your passion and money will come.”

When you’re thinking about starting your own business, this phrase might not be very comforting. There are no guarantees of monetary success with entrepreneurial endeavors. In a troubled economy like this one, however, there really isn’t a guarantee when you work for someone else either. So, if leaving a day job to pursue your entrepreneurial passion seems like a good idea, what’s holding you back?

Likely, many things are. One of the big trip-ups to starting a business is the concept of passion itself. Deeply ingrained in our DNA is the want to do things we love. To tinker. To create. To solve problems. To help others. To build. But what if your passion doesn’t have big potential to rake in a lot of income? Should you still follow your heart and build a business around it? Or, should you abandon your passion and look for entrepreneurial opportunities with bigger income potential?

Of course, it depends on what your overall income needs are and your monetary goals for the future. Financial planners advise us to have enough savings for six months, a retirement account, and funds available for health care, disability care and medical emergencies. This, in addition to whatever income you need to cover everyday living, like food and a mortgage. It also depends on how you imagine your working life in the future. With a few key questions, you can start making a plan.

Have you considered all the ways to profit from your passion?

There are more than one or two ways to profit from your business idea. You just have to find them. Consider all the revenue streams you can manifest. For instance, can you teach a class or hold online seminars as part of your business? Perhaps you can add products or services to your original idea. By following your heart, you’ll look at all the ways you can generate money from your idea and help make the dilemma of love vs. money a non-issue.

Does the business have a legitimate chance of success?

Ultimately, any business idea can seem like a good one; especially when you’re passionate about it. But reality dictates that we do look closely at the validity of our ideas. This is one moment where your head and heart need to separate and let money step in between. If your business idea really doesn’t have a valid chance at success, consider revamping your plan.

Consider:

Who is the market for your product or service? If it is a small niche, is it big enough to sustain consistent sales?
Are you offering something people genuinely will be interested in (and will pay for)?
Have you done enough research to know who your market it?
Can you start your business within your current resources and expect to become profitable within a reasonable timeframe? If your business requires a lot of start-up money, how soon can you expect to be making money to pay yourself back—and then earn an income?

Can you refocus your passion in a more profitable way?

Perhaps following your heart just isn’t going to be profitable enough. Fine. That’s OK and it’s better to figure it out sooner than later. But that doesn’t mean you still can’t build a business that allows you to also live your passion.

For example, a local tax preparer who is also a ballerina, wants to open a dance studio for underprivileged children. However, after creating several business plans with different scenarios and financial angles, she sees the income potential is not good—at least, not good enough to support her family of five with a comfortable lifestyle. So she buys a custom screen printing and embroidery business from an accounting client, and begins making custom dance wear to sell to other dance businesses across the country. She uses funds from the screen printing business to finance a small group of ballet students in the evenings. In the end, this entrepreneur found a way to be financially successful, while still following her heart and living out her dream of helping kids through dance.

You can follow your heart and the money, too. Have the mindset that failure is not an option, plan early, and be flexible. Entrepreneur icon Steve Jobs said it best, “There really is no reason not to follow your heart.”

This article is from Justine Grey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Entrepreneurs Versus Managers: Which are You?

James Clear — Mon, 10 Oct 2011 18:25:20 +0000

Link:

http://www.openforum.com/articles/entrepreneurs-vs-managers-which-are-you

"Successful entrepreneurs know their weaknesses as well as their strengths."

The line above is a classic small business maxim that I believe most of us would agree with. Self-aware people are well-positioned for success and when it comes to being self-aware I have noticed two distinct types of business owners: entrepreneurs and managers.

We All Start The Same

In the beginning, everyone is a hustler.

You're a fire starter. You have to be. You can't bootstrap an idea into a profitable business without a little elbow grease.

Things start to change, however, once you accomplish a small amount of success. When you cross that valley of the unknown and realize that you're actually going to stay in business...well, then it gets interesting because most people settle into one of two categories.

Entrepreneurs vs. Managers

Entrepreneurs are go-getters. After they build a business, they are ready to push the envelope once again.

Day-to-day operations bore them to a certain degree. Sure, they are interested in continuing to grow their first company, but in their mind the daily grind of business is something to be delegated.

Entrepreneurs start companies because they want to change things. They expose gaps in the market. They are always moving on to the next idea.

Once entrepreneurs build one profitable business, they say, "Watch me. I did this once and now I'm going to do it again."

Managers believe in the business they built so much that they want to cultivate it on a daily basis. Once their first business is profitable, they view it as their personal responsibility to take it to the next level.

Managers may delegate some things and they certainly might tell themselves that they delegate often, but truthfully major business decisions usually go through them before they are approved.

Once managers build one profitable business, they say, "We're profitable. Now watch me take this worldwide."

You Can Be Successful Either Way

Let's get one thing straight: both entrepreneurs and managers can be wildly successful with their businesses.

It's not about one style being better than the other, it's about choosing the style that's best for you. I'll give you an example using two of the most successful business men of our time.

Richard Branson vs. Steve Jobs.

Branson is an entrepreneur. His Virgin brand now encompasses over 400 different businesses. 400! When he succeeds with one business idea, he is on to the next. In fact, the following quote from Branson is one of the reasons I wrote this article.

"An entrepreneur is not a manager. An entrepreneur is someone who is great at conceiving ideas, starting ideas, building ideas ... and then handing them over to really good managers to run the business." -Sir Richard Branson

Steve Jobs was a manager. Last month, Apple had the largest market cap of any company in the S&P 500. Jobs built a $300+ billion dollar business by operating in a manner very different from Branson.

Jobs was famously a micromanager and a perfectionist. Employees have noted him calling out tiny details in design changes (all of which had to be approved by him), grammatical and spelling errors in company documents, and so on. He would even answer customer service complaints as the CEO from time to time.

Which Are You?

Branson and Jobs have both been incredibly successful at building their businesses, but they have done so in very different ways.

For some of us, being a manager is the path to success. For others, being an entrepreneur is the best bet.

If you're an entrepreneur, then keep building businesses. If you're a manager, then focus on a single subject matter and become brilliant. This is about finding your strength.

Which type is best for your small business? More importantly, which one are you?

This article is from James Clear of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: