Tag: High Yield Savings Account

Here’s How To Earn Passive Income In Your Sleep

November 20, 2021 / Frank Nez

Ever wondered how to generate money in your sleep? Here are 6 guaranteed ways to earn passive income no matter where you are in the world.

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!

Earning passive income has never been easier to earn.

Whether you’re looking to earn a few hundred dollars per month, an additional $1,000 per month, or $100k per year, it’s all very possible.

Some of these are effortless, others will require more time and work from you.

#1. Invest In Index Funds

An index fund is a type of mutual fund that tracks the market index of pooled investments.

These index funds provide broad market exposure with low operating expense.

Some of these yield a whopping annual return of 10%-20%!

This type of investment can be short-term but is mainly used as a long-term strategy for building wealth.

Depending on the performance of the index fund, these yield passive earnings (dividends) as the market fluctuates.

Here are some tips to choosing the right index fund for you!

Be aware of the expense ratio. The lower this number is, the smaller the fee is. A low expense ratio would be 0.03% while a hefty one would be 1.00%+
Check the funds performance history. You should be investing in a fund with a great performance history, especially if you’re just starting out. The market is consistently going up and down but if a funds history shows it has a great track of continuously going up, then it’s sure to keep growing in value.
Choose a fund that invests in companies that you follow and are genuinely interested in. This thought process allows you to invest in companies comfortably and confidently. Don’t invest in a company you haven’t done your research on.

Index funds are a great way to earn small passive income that eventually snowballs over a long period of time.

You can invest in index funds by opening a brokerage account.

#2. Open A High Yielding Savings or Money Market Account

Earn Passive Income With A High Yielding Savings Account

Investing your money into a high yielding or money market account will bear money every month.

It will not fail you.

Instead of having your money collect dust in your personal savings account, move some of it to an account that will put your money to work and pay you an interest for holding it.

Here are some tips to how you can make the best out of this strategy:

Choose a bank that is FDIC insured. This protects your assets.
Look for banks with the highest paying interest to make the most of your hard earned money.
Deposit money every month. By depositing earnings every month, interest will accumulate on the deposits made, the initial deposit, and all interest earned! This creates a snowball effect by multiplying your money, also known as compound interest.

This passive income is guaranteed every month and is much more effective than a regular savings account.

This is one of those passive income ideas that require almost no effort at all.

#3. Rental Income

If you own property, you can establish passive income by renting it out.

Each bedroom you aren’t using can generate you passive income year-round!

Write a rental agreement that details the rent amount, due date, whether utilities are covered or not, and conditions of living space in order to set some ground rules clear.

Another great idea is to enlist property you own on Airbnb.

Airbnb is great especially if your property is near a popular tourist hot spot.

List all the awesome areas near your property to attract visitors year-round.

Consider renting out storage space in your home if you have the room for it.

Neighbor.com allows you to find people in your area looking to store their personal belongings.

This makes it easier for you to find prospects without the hassle of marketing your service online.

Renting your space is one of the more underrated strategies to earn passive income.

#4. REITS

A REIT is similar to an index fund and is another great way to earn passive income.

By investing in a REIT you invest specifically in real estate companies.

These funds have a higher dividend gain than most index funds and have better traction when the market isn’t performing at its best.

REITs own income-producing real estate such as offices, apartments, warehouses, hospitals, shopping center, hotels, etc…

The awesome thing about REITs is that you invest in real estate without involving credit, large amount of upfront cash, or closing deals yourself.

Similar to an index fund, you want to invest in companies that are high performers and have the biggest returns in history.

#5. YouTube Content

YouTube content has allowed many people to earn passive income through the use of placed advertisement in their videos.

Find a niche and grow an audience.

Meet the requirements to monetize your videos so you can start making money in your sleep.

This will require your time and dedication so write a plan and take action to see it through.

If you found this article to be of value be sure to give it a social share!

#6. Blogging

Blogging, like YouTube can create passive income when monetized properly.

One of the most common ways blogs are monetized is through displayed advertisement.

Once your blog is monetized with ads, you will begin to earn passive income 24/7, especially if you have a rather large audience.

You can also earn passive income through affiliate programs.

Read my beginners guide to starting a blog here.

Twitter | Instagram | Facebook | YouTube

View my stock and crypto purchases on the Patreon 🎉

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.

Twitter | Facebook | Instagram | Patreon

How Should You Invest Your Stimulus Check?

March 31, 2021 / Frank Nez

Americans just received stimulus checks of $1,400 per dependent. While some households will use the money to cover their bills and other needs such as food, some of you are looking for ways to invest it.

Here are 5 ways you can invest your stimulus check:

Build your emergency fund
Open a high-yield savings account
Invest in stocks
Pay down debt
Use it for a startup

#1. Build your emergency fund

Use your stimulus check to build your emergency fund.
Franknez.com

If you don’t have a minimum of $1,000 in your emergency fund be sure to put this money away first.

This is money that is available to you should some unprecedented occur. This money is helpful when you’re obligated to take care of a car repair, medical expense, or other emergency.

If you only need to allocate a small portion of your stimulus check to complete your emergency fund, even better. You can move some money over to a high-yield savings account.

#2. Open a high-yield savings account

If you’re a returning reader you more than likely already have one of these open.

Unlike an average savings account, a high-yield savings account pays you small interest on your money. Some banks vary from 0.40% to 0.70%

Here’s a list of banks you can check out:

To put things into perspective, if you bank with an average bank such as Wells Fargo, Bank of America, or Chase, they’ll pay you 0.01%.

Opening a high-yield savings account is easy and very safe. Most banks are FDIC insured up to $250K meaning your money is protected.

If you’re afraid of your stimulus check collecting dust but want to make a safe investment with very little volatility then a high-yield savings account is right for you.

#3. Invest in stocks using your stimulus check

Stocks are a great way to multiply your money. Although you must know investing in stocks can be quite volatile.

This should not refrain you from investing in the market however. More people are opening their own brokerage accounts and purchasing shares.

Just recently we’ve seen new retail investors put their stimulus checks in heavily shorted stocks as a means to create a short squeeze. We’ve seen this happen with GameStop.

If your stimulus check just so happens to be an extra check, consider investing it in stocks. Right now is the perfect time to buy as most of the market is on sale!

Read: How to invest in the stock market (step by step)

#4. Pay down debt

If you’re a little behind on credit cards or other debt, you can use your stimulus check to pay down debt or completely pay it off.

The great thing about your stimulus check is that even if you only receive one, that means you can break down $1,400. Maybe move $400 into your emergency fund and use the other $1,000 to pay off debt.

Money is a tool you can use. Don’t forget you can break it down accordingly.

And we’re only talking about $1,400. Some of you received twice if not four times the amount. This means you have more means of allocating your stimulus check to accounts where you see fit.

#5. Use your stimulus money for that startup

Have you been wanting to start a business from scratch? Maybe you’ve been wanting to start an online business but need a website.

You can use your stimulus check for that startup. Create a professional website using BlueHost, and even start using a professional email with less than $100.

That stimulus check could have just been the best investment of your life. Starting a business is so rewarding. Not only do you make your own schedule, but the income earning possibilities are extraordinary.

Read: How to start a blog in 2021 (It’s super easy!)

While some people may need their stimulus check to survive, you don’t. You’re here for a reason. Put your money to work in assets that are going to provide you with some sort of return.

Twitter | Instagram

How To Stay Afloat During A Recession

April 1, 2020 / Frank Nez

We are super excited to share these amazing tips to keep you grounded during hard times. Kudos to you for looking out for yourself. Here’s how to stay afloat during a recession.

Don’t forget to subscribe to our newsletter!

Budget

Coupon
Cut unnecessary expenses such as subscriptions and streaming services (e.g. Disney Plus, Netflix, Hulu, etc.)
Avoid eating out – includes takeout

Use coupons to your advantage for discounts on your groceries and other necessary household items. By momentarily cutting off subscriptions and streaming services, you give yourself more breathing room. Avoid eating out as it tends to cost more money than cooking at home. Some restaurants or delivery services might offer free delivery at the moment but they are in the same situation during a recession. Take care of yourself first.

Build Your Emergency Fund

build your emergency to stay afloat during a recession

Put money in a high-yielding savings or money market account to earn you interest.
Stack some of your earnings in a personal savings account as liquid money.

By putting money into a high-yielding savings or money market account, your money gets to work for you. Compound interest will begin to accumulate and earn you money every month whether or not you keep depositing earnings. Tip: The more you deposit, the more your return is.

It is important that you keep stacking your money for your necessities. Move money into your personal savings account to keep as liquid money, or money you can pull out within a matter of seconds in case of an emergency. It usually takes 3 business days for earnings to come in from a money market account so it would be wise to keep some cash at hand in a personal savings account.

Live Below Your Means

Hold off on any moving plans, stay put
Avoid liabilities such as a new car / new home
Rethink your current standard of living

If you were planning on upgrading your standard of living this year you might want to hold off on those plans. Stay put, chances are your rent or mortgage is currently lower than where you want to go.

Avoid liabilities altogether. This means the new vehicle, the new home, the new tuition, etc. It is important to stay out of debt during a recession. Liabilities require you to take money out of your pocket and prohibit you from saving and investing it.

Rethink your current standard of living. If you’re able to momentarily downsize then you’re in a great situation, do it to reduce your costs on rent and utilities. Another great tip is to work together with people you trust and split the cost of rent in order to live adequately to cut back expenses and continue to save money.

Use Gift Cards During A Recession

Gift cards are an amazing way to treat yourself for free. Most people tend to use gift cards when the economy is booming and everything is great. If you’re like us, you probably have a few saved. Perhaps you just never got around to using them or have a little sense of self control most don’t.

Gift cards are great during a recession because it allows you to make a purchase without taking money out from your wallet. You’ll never get to appreciate them the same again.

Recycle / Cash In Change

recycle to stay afloat during a recession

Recycling is a great way to keep you afloat during a recession. You’re essentially getting cash back on all your recyclables. Plus, it’s great for our environment; let’s not forget that. Although recycling money may not be a lot, it is certainly a good way to earn $10-$20 every month.

Cashing in loose change is also a great way of gathering money that’s been collecting dust. If you’ve already been filling up the piggy bank now is a great time cash it in.

Work Temp For An Essential Company

Essential companies seem to be the only places hiring during our current coronavirus pandemic situation. Although we are currently facing this issue, it is unlikely we will be coming across this challenge for every recession.

Take precautions, but see what is hiring and how it may convenience you. Go where the money is and keep stacking your money.

Develop An Extra Source Of Income

Developing an extra source of income is one of the best ways to keep you afloat during a recession. There are many ways people are earning money online by working from home. Find your side hustle! Read: “Ways You Can Earn Money During The Coronavirus Lockdown” to see how you can begin making money on the side and from home.

An extra source of income will help pay for your necessities or allow you to put extra cash away into your money market account or personal savings account.

Millennial’s can also earn money by:

Delivering food
Providing ride-sharing services
Opening an eCommerce store
Writing as a freelancer using Fiverr
Tutoring online

We composed more ways on the excerpt below with more details to help you on your journey to earning extra cash!

Read: 7 Easy Ways Millennials Can Start Earning More Money

Sell / Pawn Unused Items

Sell items that you don’t use anymore to keep you afloat during a recession. This strategy is a quick way to put cash in your pocket.

Consider selling (old, extra, or unused):

MP3s / iPods
Cellphones / Smartphones
Blu-ray, DVDs, Headphones, Televisions
Gaming consoles / Games / Movies
Books / Board Games / Magazines

You can sell on Facebook market, eBay, Amazon, Craigslist, etc.

Rethink Transportation

It would be wise to make transportation arrangements in order to cut back on fuel expenses and avoid unforeseen car repairs. If you work locally perhaps it would be best to bike to work. Maybe your work is a few blocks away, walking is another alternative. If your work is cities away carpool with someone one week and alternate driving.

Use A 0% APR Credit Card

We don’t usually condone the use of a credit card but there are times where they become handy, especially when used responsibly. We suggest using a credit card with 0% interest in the event that there are no savings in your account. The 0% APR will help you pay off the credit card without any additional interest per the providers agreement. Do your research to see which cards fit your needs during a recession.

Here are other benefits to using a 0% APR credit card:

Payoff other credit card debt
Apply payments to principle on loans eliminating accruing interest
Most 0% APR credit cards have terms up to a year

Qualifying for one of these bad boys requires you to have great credit score so make sure you keep track of yours.

Read: Best Ways To Use A Credit Card Responsibly

Withdraw From Your 401K

This strategy is last on our list as it is only suggested as a last resort. The government has currently signed off a stimulus package that allows you to withdraw from your 401k without any fees. Although this is only temporary, it is certainly an option in order to keep you afloat during a recession. We recommend keeping a portion of these earnings in a money market account to earn you interest while it’s out of your 401k.

Also Read: How To Better Prepare Yourself For The Next Recession