Lending Club makes use of crowdsourcing to provide a low-cost borrowing solution than traditional loan programs. Savings on to the borrowers comes in the form of lower rates. Investors can also make potentially solid returns as well with on online crowdfunding platform.
Borrowers who borrow from Lending Club typically are used to consolidate debt or to pay off a high rate of interest credit card debt. Business owners are able to borrow capital for their business as I did for my Hawaii carpet cleaning business.
Borrowers can save an average of about 35 percent on their interest rates.
While Lending Club provides its borrowers with excellent rates Read More
There are lots of terminologies/jargons in the world of investing. Most of it is completely straightforward but some depend on the idea of how you will sell and buy stocks. While there are several schools of thoughts, there are 2 very broad categories in this world: the investors and traders.
Stock trading is the act of buying and selling stocks frequently, especially when the trader believes that there’s a short-term benefit/advantage to do so. The short-term benefit/advantage is very important. Your goal as a stock trader is to earn money fast. What the underlying companies do or sell aren’t as important as you believe that price per share is incorrect and will soon be corrected to trader’s advantage.
Investing Read More
What Is Value Investing Part 1
There are two major kinds of investing: growth investing and value investing. Growth investing is the idea to select stocks that you believe to grow through time, and thus, have a higher stock price. When the price arises because of growth, you are making more money. Value investing is different. You will still look for stocks with a higher cost in the future in order to make money, but not because of growth. Value investors believe that several stocks are priced above or below its true value. If you believe that a stock sells for 10 dollars every share is actually work 15 dollars every share, you are also believing that it will eventually rise up to 15 dollars. You should purchase it before it arises to 15 dollars, and when it reaches that, you can make money.
Should I use value investing? Read More
Unlike several other investment strategies, value investing is simple. It does not require you to have an extensive background in finance, even though having a knowledge about the basics will absolutely be of great help. If you have money to invest, patience, common sense, along with the willingness to do some accounting and reading, you may become a value investor. Value investing focuses on market price of a stock, which is lower than the value of underlying business.
When you ascertain a company’s value for either investing or buying, it is axiomatic for one to look at the financial statements of the company. However, the thing that is not so inherent is about which statements one needs to look at and about what within them has the value. At its most basic level, value investing is when a potential buyer identifies the worth of the stock, measuring it against its selling price. If the worth is greater than the price, it has to be purchased. The hard factor in this calculation is identifying the intrinsic value of the company. The general comparison would be between the liabilities and assets of the company, or the shareholder’s equity as it is known.
When viewing the assets of the company Read More
You do not need to be rich to be able to start investing your money. As a matter of fact, anyone with a small amount of money will be able to do so with time spent in research. Investing is generally an avenue to grow your money through time, which works by putting up front a particular amount of money, like for instance, in the stock market, and through time as that stock will increase in value, so does your money.
Here are the basic asset classes to invest in. One asset class that isn’t listed here is a business. I myself invested my money in creating an Oahu tree trimming business. Opening a business as an investment is a bit advanced so we’ll save that subject for later.
The best way to define a bond is to think it as a loan. You are loaning your money to the government or a company, and in turn, they will pay you interest for the term of that loan. Loans are generally considered conservative kinds of investments, as you will be able to select the term and length of the bond, learning exactly how much money you are getting back at the end of the term or when it reaches its maturity. There are several kinds of bonds, including corporate bonds, long-term bonds, short-term bonds, inflation and municipal protected bonds, government bonds, and more.
Cash Read More
Compounding is quite magical because of how it can exponentially grow finances, or anything for that matter. The key to compounding is (1), patience, and (2) understanding the mathematical power.
What it compounding anyway?
Compounding is when money that is made from a financial asset is reinvested either into the same asset or another asset to create financial growth from it as well. In other words the money that the asset is making, is put to work to make more money. And this process is repeated over and over again to grow exponentially. The more your money is left to compound and for longer periods of time, the more quicker and larger your finances will accelerate to grow. Read More
Before we delve into accelerating your wealth and/or finances, we will touch a little on the “natural” occurrences of why wealth is distributed the way it is as we mentioned on our first post. It all bases on Pareto’s principle also known as the 80/20 rule.
What is the 80/20 rule (Pareto’s Principle)?
Paretos’ Principle was originally referred to as his observation that the 20% of the population of Italy has produced 80% of the wealth of the said country. If you spend the time to understand this principle, you’ll notice that many things in life are not evenly distributed. For example, 80 of the profit are produced by 20% of a company’s employees. However, it does not necessarily state that everything is in the ratio of 80:20. It could be a 60:40 ratio, or 70:30, 99:1, etc. This is because the main idea behind this is that there is always a minority that produces or supersedes the output of the majority and the minority will likely be able to contribute more results than others.
The said principle has been named after the person who came up with the idea named Vilfredo Pareto. He was an Italian sociologist and economist. He tried testing the principle in various countries and various distribution situations. Through it, he was then able to confirm that the principle can be truly be a model that could be used in predicting, measuring, as well as managing all situations. Read More
Obtaining wealth, money, financial freedom, or becoming a millionaire is easy.
So, why is it that 10% of the world’s population either holds and/or controls 95% of the world’s population? Why is it that more people cannot obtain the wealth of the “upper rich class”?
Well, there’s a few principles and laws at work with those statistics, such as the 80/20 rule also known as Pareto’s Principle. So having 10% of people control majority of the world’s money can be concluded to be a natural occurrence.
But, how do you get to become a part of that 10%? Well, maybe not even a part of the 10%, but how do you become wealthy and/or financially free?
The answer is very simple and it’s not “money” that you need to become financially free, wealthy, or a millionaire – it’s knowledge.
It’s the knowledge of how.
Here, on this blog, I will strive to share with you my findings of how to become financially free or whatever financial goals that you desire. So stay tuned and come back here to this unique and practical resource to accelerate your finances now!