Tag: Financial Literacy

Have Money Work for You In 2022 (You’re Ready)

January 1, 2022 / Frank Nez

Have your money work for you in 2022 — That next life is waiting for you – Happy New Year! 2022

2022 is here!

We’ve been taught many lessons stringing back from 2020 and transitioning to 2021.

Money has played an extremely important role in our lives.

How can you make 2022 one of your best years financially?

By having a plan.

Here are 3 massive ways you can command your money to work for you.

Welcome to Franknez.com – the blog accompanying you on your journey to financial and time freedom. Cheers to a prosperous, healthy, and abundant 2022.

Let’s get started!

In today’s article I’m going to go over 3 ways you can transform your finances by making some incredible money moves.

The awesome thing is that you don’t need to make a lot of money to make this happen.

It’s all about developing proper money management skills over time.

You already spend a lot of time working to earn your money; it’s tiring!

So why not learn how to put that money to work for you?

Here’s how you can make 2022 your best year financially.

#1. Start your first investment now

start investing in 2022 — Start investing in 2022

You’ve probably always wanted to invest but have never really started.

Perhaps you don’t know where to start.

Bookmark this guide on how to start investing in stocks for beginners, it’s going to change your life.

One of the best ways to have your money work for you in 2022 is by putting it in a safe index fund such as the S&P 500 where it will earn you 8%-10% per year.

Investing your money is easy!

Most people have just never been exposed to how simple the process truly is.

Depending on your level of risk, you could invest in individual stocks that you think will go up in value over a period of time (e.g., Apple, Tesla, etc..).

The S&P 500 for example invests in the top 500 companies in the U.S. so it’s very well diversified: hence making it a safer investment.

I recommend you download the app “Mint” by intuit to track all of your accounts and see how they grow in real-time throughout 2022!

Create a plan to how much of your income you will be allocating towards investments every month.

I suggest having an emergency fund set aside first so that you’re always ready to tackle any unprecedented challenges this 2022.

#2. Diversify with cryptocurrency

ways to invest your money — Ways to invest your money

Cryptocurrency is here to stay and if you think it’s too late to invest in crypto, think again.

Crypto has made a loud statement, but analysts have massive predictions for many of the popular cryptocurrencies, meaning there’s a lot of room for growth.

Is crypto safe?

It is with Coinbase.

Another way you can have your money work for you is by allocating a small percentage into digital assets.

Two cryptos I’m personally long on are Cardano (ADA), and Shiba (SHIB).

Because these two digital assets are very affordable, planting seeds now could bear incredible fruits sometime during this decade.

So even though you might only be able to double or triple your investment this decade with Bitcoin, the opportunity for massive gains with other cryptocurrencies are still out there.

You can view when I buy both stocks and crypto exclusively on the Patreon.

Bookmark: How to invest in crypto for beginners (step-by-step)

#3. Begin to fund your freedom

YouTuber Andrei Jikh – makes a living on YouTube

One way 2022 can become your best year financially is by creating a vehicle that will allow you to escape the rat race.

Have your money work for you buy investing in a vehicle that will provide you with financial security, and earn you back your time.

If you have a job or a career, use your employer as a means to fund your passions to create a sustainable second stream of income.

Most people believe that you should live off of the income your employer provides you with.

But in order to build wealth this new year, we’ll have to shift our mindsets so that the income caters to a greater income vehicle.

That income vehicle will vary from person to person but is the fastest way to financial and time freedom.

Your job/career can fund your dreams and ambitions so that one day you won’t have to rely on that job/career.

One of the greatest investments you can make is on yourself!

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Cheers to a tremendously prosperous 2022! 🎉

Read: 3 Different Ways I’ve Earned 6-Figures [Secrets]

Millennials & Financial Education | Invest in Your Future!

June 15, 2021 / Frank Nez

Millennials and financial education - Invest in your future - franknez.com

Financial education or financial literacy, is the education and understanding of multiple financial areas and topics related to managing personal finances, money, and investments.

So why are millennials so quick to avoid the topic of financial education, and why is it essential we empower ourselves with this knowledge no one is teaching us today?

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

The Discipline of Saving Money

Why save now when you can save later! I’ll do it when I make more money. Let me take care of Christmas first. The list goes on when it comes to reasons as to why we cannot save money.

The discipline of saving money at an early age in life will become the most rewarding thing you can give yourself in a time much different from where you are today. So why is it so difficult to save money? I mean we’re able to purchase the latest gadgets, splurge on streaming services, and constantly eat out after all.

Financial literacy teaches us that money is nothing more but a mere tool that opens possibilities and allows us to walk through life without the financial stress most of us can’t seem to stay clear of. I grew restless of living paycheck to paycheck. It was annoying, tiring, and overall an unnecessary stress that needed to be eliminated in order for me to focus on the things that truly mattered the most.

All it took was a shift in mindset and educating myself financially. And of course, the discipline to save money.

We tend to give the dollar a little too much value; we keep it close. One thing we must learn to do is to let go of the money, but not in the manner of spending it. It must be pooled into an account where you will consistently be depositing in order to ensure you begin building a safety net.

This will be useful in case of a sudden emergency (which will occur at some point), a shift in job/career, or for a large purchase such as property.

Investing Is Easier Than You Think

Investing - financial freedom — Learn the power of compound interest

A simple way to invest your hard earned money is by allowing your earnings to start working for you. Investing does not necessarily mean you have to invest in the stock market or real estate. One of the most simple ways to start your very first investment is by opening a high yielding savings account or money market account.

If you have a savings account it’s very likely your current bank is paying you 0.01% in interest a year. That’s a penny a year! They’re already investing your money so why not move your earnings to a high yielding savings account.

These bank accounts can pay up to 2.05% in interest per year. The amazing thing about these accounts is that the longer you continue to save, the more compound interest starts to reward you.

Compound interest is when interest is earned on the initial deposit, every deposit made, and on top of the interest already earned! Guys, I don’t think I’m the only one that wishes they’d known this sooner.

Rates will fluctuate from time to time but it beats leaving your money sitting in an account only to collect dust.

Read: Earn passive income with these 5 guaranteed strategies

The Path to Financial Freedom

Now that you’re consistently saving money, budgeting, and have made your very first investment, you’ve taken the initial steps towards reaching financial freedom.

Financial freedom requires self discipline, and a true desire for a financial stress-free life. By financially educating ourselves, we are able to navigate through our lives with one less thing to worry about so we can pursue and focus on the things we most value.

Take control of your life, teach this to everyone you want to see win, lets secure an amazing future, and be known as a financially educated generation.

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Awesome Money Tips That Ensure Your Bank Account Grows

September 29, 2020 / Frank Nez

Who doesn’t want more money in their bank account? Whether you’re looking to build your net worth, save for a home, or for memorable experiences with your loved ones, these awesome money tips are guaranteed to help you grow your accounts.

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Open A High Yielding Savings Account

One of my personal favorite money tips is to open your very first high yielding savings or money market account.

This type of account is perfect for your emergency fund money because it earns you interest every month.

What are some benefits to a high yielding savings account?

Small passive income
Earnings may keep up with the rate of inflation
Some earnings may be enough to pay for a small expense
You eliminate your money collecting dust

A high yielding savings account is going to slowly grow your money as it compounds over time.

While a traditional bank account will earn you $0.01-$0.02 a year, a high yielding savings account can earn you $10-$200+ a month depending on your APY (annual percentage yield) and how much money you deposit monthly.

This is why I suggest keeping your emergency fund in one of these accounts. You will see your money begin to work for you almost instantaneously.

APY’s change from time to time. When I first opened my account with BMO Harris they had a 2.05% APY!

Can I Take My Money Out?

Yes, you can take money out of these accounts.

However, these accounts usually take up to 3 business days for the transfers to be complete.

This is why money tip number two is to manage a personal savings account.

Manage A Personal Savings Account

By managing a personal savings account you are able to grow another account that will keep you and your family financially secure during a rainy day.

This account is best used to keep liquid assets.

What is a liquid asset?

Liquid assets or liquid money is money you can access immediately. Unlike a high yielding savings account you can withdraw or send money from this account instantly.

By having both a personal savings account and money market account you will feel obligated to inject money into both accounts.

By doing so you will begin to see your accounts grow!

How much money should I keep in here?

Your emergency fund money should be the big nest which means your personal savings account should have enough money for unexpected expenses.

This could be a few thousand dollars depending on your standard of living. In most cases, $1,000 to $2,000 at hand may suffice. Your emergency fund on the other hand should be anywhere from 3-6 months worth of living expenses.

Learn to Invest Your Money

Money tip number three is to learn how to invest your money. This money tips is going to ensure your accounts continue to grow in the long run.

Investing your money in the right places will bring higher returns than any savings or money market accounts.

Where can I invest my money in?

Back into your business
To start a business
Real estate
Gold and silver
Stock market

Read: How To Invest In The Stock Market (Step by Step)

Highly successful people all use a variety of ways to invest their money. You need to find what best could work for you, and do your research like there’s no tomorrow.

It is important that you take the time and put an effort towards learning about your desired investment option. This will make the ride a whole lot smoother.

How do I set money aside for investments?

You may allocate money from your personal savings account towards investments as long as you continue to feed that account.

Make sure your liquid assets don’t run low and only move money for investments when you’re able to.

Set a threshold you cannot go below so that you have liquid assets available in case of an unexpected emergency bill.

Let me know in the comments section below which form of investment you’d like to start taking on for yourself!

Keep Track of Your Money

Money tip number four is to keep track of your money at all times.

For this I suggest downloading an app from Intuit called MINT.

Mint allows you to see all of your accounts, bills, and more on an easy to read dashboard.

Money tip number four - Keep Track of Your Money with Mint App by Intuit

How does this money help grow my bank account?

By keeping track of you money you begin to create a sense of accountability and responsibility towards your duties.

This strategy will help you achieve your goals as you see your accounts slowly begin to grow.

Maintain A Low Overhead

Money tip number five. Maintain a low overhead.

Simple – don’t live beyond your means.

Often times people will increase their income and increase their standard of living as well. Avoid the quicksand of income creep lifestyle.

By maintaining a low overhead you provide yourself with the means necessary to save and invest quite easily.

When should I increase my standard of living?

Increase your standard of living once you’ve met specific financial goals and you’ve developed a sense of financial security. When you’re ready, take things up one level.

If you increase your standard of living dramatically, you risk settling and stunt your financial growth. So, maintain a low overhead in order to grow your bank accounts.

Read: How To Set Financial Goals: 10 Simple Steps!

Find A Side Hustle

Money tip number six on how to grow your bank account is to take on a side hustle.

Side hustles are a great way to increase your household income. By increasing your income you can allocate the additional earning towards a financial goal.

Use this money to fund your emergency fund, your personal savings account, or your investment portfolio.

A side hustle can be a guaranteed way to grow your bank account if managed properly.

Discipline Your Spending Habits

And lastly, money tip number seven is learning how to discipline your spending habits.

Your spending habits are everything. Yet most people don’t understand this.

When you discipline your spending habits you are making a conscious choice to use your money as a tool. A tool that can create way for you and procure financial abundance.

The amazing thing is that this strategy works no matter what your annual income is. Learn to manage $1,000 and you will know how to man $10,000.

If it sounds simpler than it seems that’s because in all actuality it is. It’s all about your habits.

Read: 6 Money Habits You Can Develop to Win Financially

Think of millionaire’s who’ve lost it all

Ever wonder how in the world lottery winners have been able to lose millions of dollars only to wake up right where they first started?

The answer to that revelation is lack of discipline with their spending habits. This goes to show just how important it is that you understand the fundamentals of paying yourself first instead of others.

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How To Stop Living Paycheck To Paycheck (For Good)

May 9, 2020 / Frank Nez

We’ve been there. You want to save money but somehow it seems to be more difficult than it should be. Most importantly, you’re taking care of your expenses but have very little leftover before the next paycheck. As a result, you’re holding out until the next pay day. What if you never had to worry about living paycheck to paycheck again? The great news is that it is absolutely possible. Here’s how to stop living paycheck to paycheck (for good).

Look At Your Bank Statements & Budget

It is very important to know what you’re spending your money on. Look at your bank statements to see where you may begin to set limitations and write them down. Budget the amount of money you spend on eating out, on games or music, online shopping, etc. This will vary for each individual.

Cutting back on expenses will allow you to gain control of your routines and habits in order to pocket extra cash in case of any emergency.

Increase Your Income

There are many ways to increase your income. You may work for a promotion or raise, or take up a side hustle to earn extra money. For instance, by earning an additional $100-$300 a month will mean you’re up $50-$150 bi-weekly before the next paycheck. The catch here is to not fall into income creep lifestyle. Otherwise, you won’t be able to execute this properly.

Beware Of Income Creep

Income creep is when one lacks the will to retain spending additional income after a raise, sale, promotion, etc. As a result, you continue to live with the stress of never having enough. Income creep is the reason why people earning six figures a year also live paycheck to paycheck. If you continue to add or create more expenses as you earn more money, you will be stuck in this quicksand; a never ending loop. Delay your gratification and your future self will be glad you did!

Live Below Your Means

Living below your means is the responsible and most effective way to manage your personal finances. We’ve learned that this strategy goes hand in hand when you increase your income as they compliment each other very well.

So what does it really mean to live below your means?

To live below your means requires you to not increase your standard of living (bigger car, bigger home, etc.) as your income increases. Living below your means allows your expenses to stay relatively the same which opens opportunity to save money and invest it as well.

As you continue to practice these winner habits, you will gain an intuition and an understanding of when it is best to increase your standard of living. In the mean time it is very important that you learn how to stop living paycheck to paycheck first.

Increase All Your Monetary Accounts

The privilege to stop living paycheck to paycheck will depend on how well you manage your monetary accounts. As a result of implementing these strategies (budgeting, earning more income, and living below your means), earnings will roll over in your checking account due to the money consistently being replenished. By disciplining yourself to stay on this path, you will no longer be living paycheck to paycheck.

Stack the amount of money in your checking account in order to gain access to funds from which you can save and invest. In other words, increase all your monetary accounts. Tip: Pool money from your checking account into several accounts that will allow you to earn more income passively. More on that below.

If you’re curious on how to invest money in the stock market, check out this amazing post here. We walk you through step by step.

Other Means Of How To Stop Living Paycheck To Paycheck

Downsize

Stop living paycheck to paycheck by cutting back on rent and allow breathing room to save money by downsizing. Make an effort to seek the best options regarding your long-term success. Delayed gratification will come a long way.

Pay Off Debt

By paying off debt you open up opportunities and have a chance at experiencing financial growth. If you pay off a credit card, you no longer have to worry about the monthly expense. Say you owe a small amount on your vehicle. Get a payoff quote and eliminate that expense. By freeing up this money, you can beak the monthly payment into segments and pool it into checking and savings. Stop living paycheck to paycheck by eliminating payments to lenders every month.

Generate Passive Income

Generate passive income so that your small bills are paid. What if I told you the interest you earn in a money market account can literally pay your monthly Netflix subscription? We published a post on 5 guaranteed ways to earn passive income that will help you learn more so that you can take care of your bills without tapping into your earned income. Stop living paycheck to paycheck by earning extra cash on the side.

Make It A Habit

Make it a choice and a habit to stop living paycheck to paycheck. After all, it’s in your power. Implement these strategies in order to change your life and begin feeling what it is to truly be financially free. Go back in time today and secure your financial future!