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How To Build Wealth at Any Age

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Are you tired of feeling stuck in a financial rut? Do you feel like you need to progress more toward your financial goal? Don’t stress – building wealth is possible at any age, and in this article, we’ll discuss some of the best strategies for US homeowners.

Whether in your early 20s, or late 40s, there is always time to start taking control of your finances and maximizing your earning potential. We’ll cover everything from diversifying your income streams to investing in real estate. Buckle up and prepare to take the first step toward financial success!

Get Creative: Alternative Investments and Passive Income

Let’s face it – relying on a single source of income can be risky. Diversifying your income streams to maximize your earning potential and ensure financial stability is essential. And while traditional markets like stocks and real estate can be great investment options, you can explore other alternative investments to help build wealth at any age.

If there’s one takeaway from this article we want you to have, it’s that homeowners build wealth faster than non-homeowners. We’ll dive more into this topic below but suffice it to say, the data shows that homeowners have larger net worths whether you cut the data across age, race, gender, or even location.

Online Businesses, Crowdfunding, or Peer-to-Peer Lending

One option is to look into alternative investments like online businesses, crowdfunding, or peer-to-peer lending. With the rise of the internet, there are now more opportunities than ever to invest in non-traditional assets.

For example, you could invest in a startup business through a crowdfunding platform like Kickstarter or lend money to others through peer-to-peer lending websites like LendingClub.

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Passive Income Sources

But what about passive income sources? These offer a way to earn ongoing income even if you aren’t technically working. After putting in some initial effort to get it started, passive income may be able to continue with relatively less work (although some maintenance is always required). For instance, renting out a property. Whether you own a second home or just have a spare room, you can earn a steady income by renting it out.

And if you’re interested in starting your own blog or website, you could earn money through advertising or affiliate marketing.

Tax Benefits Associated With Certain Investments

Certain investments come with tax benefits. For example, investing in a rental property allows you to deduct expenses like property taxes and maintenance costs from your taxable income. And if you invest in a business, you can claim deductions for expenses like equipment and supplies.

In addition to the potential financial benefits, exploring alternative investments and passive income sources can also be a fun and rewarding experience. You might discover a new passion or hobby that generates income. And by diversifying your income streams, you’re better protected against unexpected events like a job loss or economic downturn.

Do Your Due Diligence Before Investing in Any Alternative Assets

Of course, doing your due diligence before investing in alternative assets is important. Ensure you understand the risks and potential returns associated with each investment, and seek the advice of a financial professional if you need clarification.

And remember, diversification is key – don’t put all your eggs in one basket.

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Side Hustles: Contracting and Side Businesses

Building wealth doesn’t always have to involve taking on a second full-time job. Pursuing side hustles is an excellent way to generate additional income without sacrificing too much of your free time. Side hustles have many benefits, including flexibility, the ability to use your existing skills, and the opportunity to learn new ones.

1. Freelancer Sites for Those With Existing Skills

Use your existing skills to find work on freelancer sites such as Fiverr, Upwork, or Freelancer. These sites connect businesses and individuals with freelancers who can provide graphic design, web development, writing, and more services. Freelancing provides flexibility regarding when and where you work, allowing you to work around your existing schedule.

2. Alternative Options for Creating Income

If you don’t have specific skills or more free time, there are other options to create income. Completing surveys and other online tasks can be an easy way to earn extra cash. Some apps and websites pay you to watch ads, play games, and complete other simple tasks. While there may be more lucrative options, they can still add up.

3. Buying and Managing Websites or Assets

Another way to generate income is to buy and manage websites or digital assets. This can include purchasing a website or social media page that generates revenue through ads or affiliate marketing. Alternatively, you can buy assets such as cars, vending machines, and appliances and fix them up to flip them for profit. These ventures require some upfront investment but can be a profitable way to earn additional income.

Homeownership: Building Equity and Increasing Net Worth

Homeownership is a great way to build wealth and increase your net worth. It is one of the most significant investments a person can make in their lifetime. Owning a home provides several benefits, including building equity and providing a stable living environment for families.

Building Equity Through Paying Down The Mortgage

Equity is the difference between the value of the property and the amount of money owed on the mortgage. Over time, homeowners build equity in their homes by paying down their mortgages. As the mortgage balance decreases, the homeowner’s equity increases.

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By making extra payments or refinancing a shorter-term loan, homeowners can accelerate the process of building equity. Equity can also increase by making home improvements, increasing the property’s value.

Renting Out a Room or ADU for Additional Income

Another way homeowners can build wealth is by renting out a room or an accessory dwelling unit (ADU) on their property. These can provide additional income, which can be used to pay down the mortgage, build savings, or invest in other income-generating opportunities.

Homeowners can also take advantage of tax benefits associated with rental properties, such as property tax deductions and depreciation.

Historical Appreciation of Real Estate

Historical data shows real estate has appreciated at an average rate of 3-5% per year. While this may not seem like a significant amount, over time, the appreciation can add up, resulting in substantial gains in net worth.

Many statistics and facts demonstrate how homeownership can help build wealth. For example, homeownership is associated with higher net worth and more significant financial assets than renting.

Additionally, homeownership has been shown to lead to more significant long-term wealth accumulation and lower poverty rates. According to the Federal Reserve, the median net worth of homeowners is approximately $255,000, while the median net worth of renters is only $6,300.

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Asset Diversification Is Key: Investing for Financial Stability

Building wealth through investing is an effective way to increase financial stability and achieve long-term goals. However, it is essential to diversify investments to minimize risk and maximize earning potential.

Diversification of assets helps reduce vulnerability to risks associated with one particular asset class. By diversifying your investments, you can offset losses in one asset class with gains in another. This approach reduces the impact of market volatility on your portfolio and can increase financial stability over the long term.

Several asset classes are generally considered recession-proof (or at least more resistant to a prolonged downturn). These include precious metals, real estate, and high-quality bonds. Diversifying investments across these asset classes can reduce portfolio risk.

Value Stocks or Growth Stocks

Investors may also consider investing in value or growth stocks depending on their investment strategy. Value stocks are undervalued by the market and offer investors an opportunity to purchase a stock with strong fundamentals that others have overlooked. In contrast, growth stocks represent companies that are growing rapidly and are expected to continue growing.

Alternative Assets

Alternative assets such as artwork, wine, trading cards, NFTs, and music can also provide diversification benefits to investors. These assets can be uncorrelated to traditional asset classes like stocks and bonds, meaning their performance is not directly tied to the market.

However, it’s important to note that alternative assets can be illiquid, making them difficult to buy and sell quickly. Additionally, the value of these assets can be subjective and fluctuate significantly over time.

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Leverage Compounding Interest

Compounding interest is another key concept in building wealth through investing. Compounding occurs when interest or returns earned on an investment are reinvested, generating additional returns. Over time, this can lead to significant growth in an investment portfolio.

For example, if you invest $10,000 with a 5% annual return and reinvest the earnings, your investment will grow to over $16,000 in ten years.

Investing can be complex and overwhelming, especially if you are new to the world of finance. Consider hiring a financial advisor to help you navigate the process and make informed investment decisions.

Final Take

Building wealth is possible at any age with the right strategies. We have discussed several key strategies, including diversifying income streams, pursuing side hustles, building equity through homeownership, and investing for financial stability.

It is essential to prioritize financial stability and work towards achieving financial goals. I encourage you to implement these strategies to build wealth and secure your financial future. By taking action now, you can achieve financial success at any age.

This article was produced by Wealth of Geeks.

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AI Will Transform the Workplace. Here’s How HR Can Prepare for It.

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AI Will Transform the Workplace. Here's How HR Can Prepare for It.

Opinions expressed by Entrepreneur contributors are their own.

Our workplaces are about to undergo an unprecedented level of transformation, and HR will take center stage. Artificial intelligence will dramatically reshape HR in a way that goes beyond recruiting, hiring and talent management. Leadership teams at all levels need to embrace this change to transform and lead their organizations forward.

It’s the people, and not the technology, that makes AI initiatives a success. Intrapreneurs, in particular, are the driving force behind it. As I shared in Fearless Innovation, I noticed this when I was working on the innovation agenda for the Great Places to Work study — the most innovative companies were those that had a leadership team that was embracing intrapreneurship and were open to change.

HR is the beating heart of any organization, and as such, it needs to take center stage in both adopting and leading ethical and innovative AI transformation across the organization.

Related: How Artificial Intelligence Is Reinventing Human Resources

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4 tectonic shifts AI will drive in HR

1. A new wave of massive reskilling

As AI becomes more prominent across business functions, the need for new skills will only grow. Forty percent of enterprise leaders believe that their workforce would need to reskill as a result of AI and machine learning. In fact, research shows almost a third of all hours worked in the U.S. could be automated by 2030.

All of us need to reskill to some extent to be relevant in the AI era. Not only would people need to re-train, but generative AI is introducing a whole host of professions that have been non-existent until recently, from AI ethicists to human-AI interaction designers. Some of these roles might sound futuristic, yet they are becoming increasingly relevant as technology advances.

2. The great restructure

As automation takes center stage across more business functions, there will be the inevitable need for organizations to restructure and rethink how they work. This transition will not only involve the integration of new technologies but also introduce a shift in the workforce dynamics. Intrapreneurs will need to identify gaps both in skills and operational processes and forge brand-new roles for themselves and those they manage. HR must play a key role in enabling a smooth and easy transition in this regard. The transition will not be smooth or easy, and it’s only HR that has the capability to make it impactful.

3. Arrival of “digital humans”

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“Digital human” may sound like an oxymoron, but that’s the term that’s starting to appear in business and operational plans. More roles, regardless of industry, are becoming digitally enhanced where some form of AI assistance is embedded in their everyday work. A real-life example is the introduction of the digital nurse — AI-powered healthcare agents which have already been proven to outperform human nurses in certain tasks.

Imagine the impact these digital roles will have on the workforce the more sophisticated and prevalent they become. Eventually, HR will need to create policies and systems in place that account for this new type of “staff augmentation.”

4. Regulating the robot

The threat of AI bias and misuse is serious. Not only can the technology put many jobs at peril, but potential improper implementation can expose organizations to serious liability and negatively affect the workforce. From avoiding bias to inclusivity, HR teams play a critical role in the ethical deployment and management of AI technologies.

HR professionals will be tasked with navigating the delicate balance between leveraging AI for efficiency and ensuring that its application upholds fairness, privacy and non-discrimination.

Related: How to Successfully Implement AI into Your Business — Overcoming Challenges and Building a Future-Ready Team

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What HR intrapreneurs must do to embrace AI the right way

The future of work is being shaped by AI adoption, and its success hinges on the right approach from the outset. My experience shows that for successful organizations, one universal trait stands out: the presence of change agents. Every organization, regardless of size, benefits from intrapreneurs who are open to change and committed to spearheading transformation efforts. These intrapreneurs are pivotal in driving the future of work, as they help orchestrate the integration of new technologies into their business models.

HR and talent leaders should harness this dynamic, encouraging a symbiotic relationship with intrapreneurs to develop customized solutions for AI adoption, ensuring that they are not just keeping pace with technological advances but are actively shaping their trajectory.

Securing a seat at the table:

HR should take a proactive stance in the adoption of AI, even if it is still in its early stages within your organization. By securing a position at the forefront of the AI initiative, HR can and should facilitate and guide the entire organization in embracing this significant change.

As AI has the potential to impact every facet of the organization, it is imperative for HR to not only understand and advocate for this technology but also lead its integration across all departments. HR should encourage and support intrapreneurs and all employees to leverage AI in their daily tasks, demonstrating its value not just for operational efficiency but for personal and professional growth as well.

Master the technology:

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To effectively navigate and regulate AI, HR must first understand it thoroughly. Grasping the full potential of this technology is crucial for reaping its extensive benefits. HR plays a vital role in identifying the necessary tools and skills that employees must acquire and then integrating these learnings into daily work practices.

Before implementing AI more broadly, HR should initiate comprehensive training programs that not only educate but also reassure employees about AI’s role in the future of the business. By leading these educational initiatives, HR can shape the structure and effectiveness of these programs, ensuring they meet the needs of the organization and its workforce.

Related: 3 Ways to Prepare Your Business For an AI Future

Looking ahead

Generative AI has the transformative potential to redefine the business landscape, but realizing this vast potential hinges on more than just the adoption of technology. It critically depends on the talent within the workforce, driven by HR and bold intrapreneurs. These visionary leaders don’t just implement new tools; they exemplify their use, demonstrating the profound impact of AI across every level of the organization.

HR plays a pivotal role in fostering this environment, enabling intrapreneurs to guide and inspire every individual they touch. Together, they turn each employee into a catalyst for change, igniting a widespread passion for innovation that deeply resonates and sustains long-term success.

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

Four-day workweeks might have all the buzz, but one major tech company is going in the opposite direction.

Samsung is implementing a six-day workweek for all executives after some of the firm’s core businesses delivered lower-than-expected financial results last year.

A Samsung Group executive told a Korean news outlet that “considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome this crisis.”

Lower performance combined with other economic uncertainties like high borrowing costs have pushed the South Korean company to enter “emergency mode,” per The Korea Economic Daily.

Related: Apple Is No Longer the Top Phonemaker in the World as AI Pressure and Competition Intensifies

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Executives at all Samsung Group divisions will be affected, including those in sales and manufacturing, according to the report.

Samsung had its worst financial year in over a decade in 2023, with the Wall Street Journal reporting that net profit fell 73% in Q4. It also lost its top spot on the global smartphone market to Apple in the same quarter, though it reclaimed it this year.

Though employees below the executive level aren’t yet mandated to clock in on weekends, some might follow the unwritten example of their bosses. After all, The Korea Economic Daily reports that executives across some Samsung divisions have been voluntarily working six days a week since January, before the company decided to implement the six-day workweek policy.

Entrepreneur has reached out to Samsung’s U.S. newsroom to ask if this news includes executives situated globally, including in the U.S., or if it only affects employees in Korea. Samsung did not immediately respond.

Research on the relationship between hours worked and output shows that working more does not necessarily increase productivity.

A Stanford project, for example, found that overwork leads to decreased total output. Average productivity decreases due to stress, sleep deprivation, and other factors “to the extent that the additional hours [worked] provide no benefit (and, in fact, are detrimental),” the study said.

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Related: Samsung’s Newest Galaxy Gadget Aims ‘To See How Productive You Can Be’

Longer hours can also mean long-term health effects. The World Health Organization found that working more than 55 hours a week decreases life expectancy and increases the risk of stroke by 35%.

The same 55-hour workweek leads to a 17% higher risk of heart disease, per the same study.

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John Deere Hiring CTO ‘Chief Tractor Officer,’ TikTok Creator

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John Deere Hiring CTO 'Chief Tractor Officer,' TikTok Creator

This article originally appeared on Business Insider.

Agriculture equipment company John Deere is on the hunt for a different kind of CTO.

The brand on Tuesday announced a two-week search to find a “Chief Tractor Officer” who would create social media content to reach younger consumers.

One winning applicant will receive up to $192,300 to traverse the country over the next several months showcasing the way John Deere products are used by workers, from Yellowstone National Park to Chicago’s Wrigley Field and beyond.

“No matter what you do — whether it’s your coffee, getting dressed in the morning, driving to work, the building you go into — it’s all been touched by a construction worker, a farmer, or a lawn care maintenance group,” Jen Hartmann, John Deere’s global director of strategic public relations, told AdAge.

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To kick off the search, John Deere tapped NFL quarterback Brock Purdy (who will presumably be a bit busy this Fall to take the job himself) to star in a clip in which he attempts to set out on a road trip in an industrial tractor.

Suited up in the obligatory vest, work boots, and John Deere hat, Purdy’s progress is interrupted by teammate Colton McKivitz hopping into the cab while a string of messages floods in from other athletes and influencers expressing interest in the job.

The clip also represents the first time that the 187-year-old company has used celebrities to promote itself, Hartmann told AdAge.

According to the contest rules, entrants have until April 29 at midnight to submit a single 60-second video making their pitch for why they should be the face and voice of the company.

In addition, entrants must live in the 48 contiguous states or DC — sorry Hawaii and Alaska residents. Interestingly, any AI-generated submissions are prohibited, too.

Videos will be judged against four categories — originally, creativity, quality, and brand knowledge — after which five finalists will be chosen and notified after May 17.

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