Encouraging Children to Monetize Their Interests and Hobbies

Do you remember what it was like being a kid with interests and hobbies that kept you going for many hours?  Imagine if you had taken it seriously and made some money from it right from an early age; you probably would have become a professional artist, writer or even a world-renowned poet.

Whether your child’s hobby is sports-related or writing, you can encourage them to take it seriously and monetize it. We will explore how you can encourage your kids to monetize their interests and hobbies.

Why Should Children Be Encouraged to Monetize Their Interests?

Encouraging children to monetize their interests and hobbies can be an excellent way to teach them about entrepreneurship, fiscal responsibility, and the value of hard work. However you go about it, ensure you approach this process with care and consideration for the child’s age, interests, and developmental stage.

At a tender age, you should refrain from enforcing the monetization aspect but build them up to the point where they want to start earning money. For instance, learning about practical ways for 12-year-olds to make money – is an excellent step because they will be interested in earning extra pocket money at that age.

So how can you start building up your children early to embrace their interests and hobbies? This takes us to our next point.

How Can Parents Identify and Nurture Their Child’s Passions?

As parents, you play a huge role in shaping your kids’ passions and interests. That means if you are someone who enjoys having fun and making things, your chances are your kids might learn to love this too.  If you like reading and writing, you can share your stories with your kids and encourage them to write their own stories too, just for fun. Kids have a fantastic imagination; you can tap into this so easily.

Below are some additional practical ways to help your children identify their interests and hobbies.

  1. Enroll them in different extracurricular activities. Whether it’s chess, piano lessons, art class or even debate class, it gets them involved.
  2. As time goes by, ask them the classes they enjoy the most.
  3. Intensify lessons for the classes they enjoy the most.
  4. Encourage them to practice in their spare time.
  5. Make it fun and praise them when they do a decent job.
  6. Encourage them when you notice your child is improving and honing their craft

If you follow all these steps, your child could be well on the way to becoming a Pro!

How Can Kids Learn the Basics of Pricing and Value Proposition?

Depending on the hobby, your child might need to develop their skills further to offer a valuable product or service. This might involve taking classes, practicing regularly, or seeking mentorship.

You can also work with your child to create a tangible product or define a service they can offer. To do this properly, you will need to learn about the basics of pricing and value proposition, such as the following;


Before selling a product or service, you should know why it is needed. As part of the product or service, include the features and value it provides for the customer.


What are the benefits of your product or service? Your child should have an idea of what their passion helps their target customer to achieve.

Understanding the market

Do your research – look around and see what other people who provide your services also do.  You can add something different that will help you stand out.

Costs and expenses

How much does it cost for your child to run their service – are there any supplies they are paying for – this needs to be included in the final cost.

Profit margins

Help your child to calculate how much money they will have left after covering expenses. This can be a straightforward way to show the financial aspect of their project.


Encourage your child to experiment with different pricing strategies. They can start with a certain price and adjust it over time based on customer feedback and market response.

Once you have done all the above things, encourage your child to learn more about how to improve their processes and save time and expenses.

How Can Children Develop Entrepreneurial Mindsets and Skills?

Your kids can develop entrepreneurial mindsets and skills through a combination of experiences and lessons that you, as their parents, can play a crucial role in.

For example,

  • You can encourage them to be creative and problem-solve – through games and activities you do together as a family. Playing games like Monopoly is an excellent example, as it is a fun way to introduce them to business and money management.
  • You can also encourage your kids to think critically by analyzing situations to make an informed decision.
  • Promote hands-on experience by encouraging your kids to improve at what they love doing.
  • Lastly, you can encourage your kids to start businesses by monetizing their interests and hobbies.

This takes us to our next point.

What additional lessons can kids learn from managing their own ventures?

When your kids are empowered financially, they will have the confidence to start their own ventures.  So, what are the additional benefits kids can gain from managing their own ventures?

We have listed a few below:

  • When your child can manage their own venture, who is to say they will not be a great leader or CEO someday?
  • Teamwork & collaboration skills can be learned when your child works with you to learn and start their venture.
  • Your kids will learn to sell their craft by convincing customers to buy their services. This will give them confidence, and they will grow to become excellent communicators.

How Does Encouraging Monetization Foster Financial Independence

Did you know that if you encourage your child to monetize their hobby, they have a great chance of becoming financially independent right from an early age? This means it can set them on a positive trajectory and set them ahead of their peers.

So, what is stopping you from encouraging your child to monetize their hobbies and interests? You can start by finding out what they love doing in their spare time – and simply encouraging them to keep doing it. You can even enroll them in a professional class; whether it is a cooking or art class or whatever it is, now is the time to start.

5 Interesting Techniques for Raising Money-Wise Children

Being financially savvy is one of the many gifts you can give to your kids. But it’s not easy to raise children who have good money management skills. For one, it takes years of training to instill in them the habit of saving especially in their early years wherein they still have a vague concept of money.

You will also have to make conscious effort in practicing good money habits yourself to serve as a model for your children. Your words of advice to them won’t matter if they don’t see you doing what you teach them to do.

So how can you assure that your children will grow up having a healthy attitude towards money?

Include them in making the shopping list

Creating the list together will let children understand what are deemed important for the house such as toiletries and food supplies. You can first ask them what they think you should include in the list and write down whatever they say. They can then rank each item according to priorities.

You can also discuss to them why you have to let go of some to give space for alternatives that are better in terms of price and quality. By engaging children in making the household shopping list, you give them the opportunity to learn about prioritizing, one of the essential skills needed for good personal finance management.

Involve them when you actually shop for the home.

It’s highly possible that your children will be begging you to buy the toys they see while in the store. While this can be an annoying scenario, consider this as a chance to explain that if you buy the toys, they need to give up something or you won’t be able to buy an important item for the home. It’s also a good chance to teach about delayed gratification, which is another essential for good money management.

Shopping with children also allows you to show to them how you strike a balance between price and quality when choosing products from various brands. You can give practical money tips from time to time, too.

Moreover, you can also give the shopping list to them and let them choose the products themselves to give them a sense of responsibility. Of course, you should be there to guide them and ensure they make wise choices.

Let them know about the bills to pay.

Help them understand the implications of the utility bills in connection to money and to the household’s electricity and water consumption. Most importantly, inform them that they can help reduce the bills and save more money to buy the more important stuff if they take part in conserving water and energy.

Let them know that as simple as practicing the habit of turning off the lights and appliances when they’re not in use or preventing water from unnecessarily running out of the faucet can greatly help in reducing the bills. Of course, you should also practice saving water and electricity.

It will also help if you teach children how to read and monitor the water and electrical meters used to determine the household consumption. The kids can experiment on how fast or slow the meters run depending on how many faucets or appliances are currently being used, and thus, will have an understanding of the grave effects of wasting water and energy.

Help them understand how doing chores can save money.

While it’s a common advice to teach kids about the value of work in order to earn money, it’s not wise to constantly put financial rewards on household tasks. Although most kids hate doing chores, they have to realize that it’s important to do these tasks to keep the house clean.

But most importantly, doing the chores can save the family more money because you won’t have to hire someone else to do the job. If children help in washing the car, for example, the family won’t have to spend for premium car wash services. Moreover, if kids are trained to clean the house regularly or at least to clean as they go, the family can reduce their expenses on professional cleaners who are paid per hour because they won’t have to stay long in the house.

Teach them to save whenever they receive money.

Whether it’s an allowance from you or cash gifts from relatives and godparents, help your children instill the habit of not spending the money right away just in case they need to buy something more important in the future. You can opt to use transparent cookie jars or if you want to further introduce children to the concept of interest income, you can open a savings account under their name.

Final Words: Train Children As Early As Possible

Raising money-savvy kids require time, patience and constant reminders until the good habits become a natural thing to do for them. Don’t forget your role, too, as you have to walk your talk because children often follow what adults do despite the verbal advice given to them.

Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she’s fond of 9GAG, so you might read some random stuff over here.


Is Insurance Mandatory for Super Visa Canada?

The Super Visa program is a popular option for parents and grandparents of Canadian citizens and permanent residents who wish to visit their loved ones for an extended period. Introduced in 2011, the Super Visa allows eligible applicants to stay in Canada for up to two years without the need for visa renewals. One critical aspect that applicants need to consider when applying for the Super Visa is insurance coverage. In this article, we will explore whether insurance is mandatory for Super Visa Canada and why it is an essential requirement for prospective applicants.

Understanding the Super Visa

The Super Visa is distinct from the regular visitor visa, as it offers an extended period of stay, making it more appealing to parents and grandparents who want to spend more time with their families in Canada. To be eligible for the Super Visa, applicants must meet specific requirements, including the financial support of their Canadian host and obtaining private medical insurance.

What is super visa insurance?

Super Visa insurance, also known as Super Visa medical insurance or Visitors to Canada insurance, is a specific type of coverage designed for individuals applying for the Super Visa program in Canada. The Super Visa is a long-term visitor visa that allows eligible parents and grandparents of Canadian citizens and permanent residents to stay in Canada for up to 5 years without the need for visa renewals. To qualify for the Super Visa, applicants must meet various requirements, and one of the mandatory criteria is obtaining private medical insurance.

Is Insurance Mandatory for Super Visa Canada?

Yes, obtaining private medical insurance is mandatory for all Super Visa applicants. The Canadian government requires visitors under the Super Visa program to have valid private medical insurance coverage for a minimum period of one year. The insurance policy must be issued by a Canadian insurance company and meet the following criteria:

  1. Coverage of Health Care: The insurance policy should cover health care, hospitalization, and repatriation expenses during the entire duration of the applicant’s stay in Canada. The coverage must have a minimum amount, typically $100,000 or more.
  2. Validity Period: The insurance policy should be valid for at least one year from the entry into Canada. It should also have no gaps or lapses during the applicant’s stay.
  3. Renewable: The policy should be renewable, ensuring that the applicant can extend their coverage if they decide to extend their stay in Canada beyond the initial year.

Importance of Insurance for Super Visa Holders

The requirement for private medical insurance is important for Super Visa applicants due to several reasons:

  1. Protecting Financial Stability: Canadian healthcare can be expensive for non-residents, and the cost of medical treatment without insurance coverage can quickly escalate. Having valid insurance provides financial protection and peace of mind to both the Super Visa holder and their host in Canada.
  2. Meeting Visa Requirements: Please obtain private medical insurance that meets the specified criteria to avoid the rejection of the Super Visa application. Thus, complying with this mandatory requirement is vital for a successful application.
  3. Access to Medical Services: The insurance ensures that Super Visa holders have access to necessary medical services without incurring exorbitant out-of-pocket expenses, allowing them to seek medical care when needed.
  4. Emergency Assistance: In a medical emergency, insurance coverage facilitates quick and efficient assistance, ensuring that the visitor receives the necessary medical attention promptly.


For those intending to apply for a Super Visa to visit their loved ones in Canada, obtaining private medical insurance is not an option but a mandatory requirement. The insurance coverage provides financial protection, ensures access to medical services, and allows for a smooth and hassle-free visit to Canada. Prospective Super Visa applicants should carefully review insurance options available from Canadian insurance providers and choose a plan that meets the specified criteria to ensure an enjoyable visit.

The Secret to Building Wealth

Building wealth is something almost anyone can do with the right plan. A high income or a large inheritance make it easier to save and plan for old age, but those are not necessities. Your financial attitude, especially when it comes to savings and debt, can help you pursue your life goals. With this information, you can assess your current financial situation and make changes that improve your path to long-term wealth accumulation.

Improve Your Cash Flow

To determine the best way to build your wealth, you need to understand your cash flow. Cash flow is the rate at which money comes in based on the rate at which it goes out. Having more income than expenses doesn’t necessarily mean you have good cash flow, especially if your expenses are due before they’re paid. Improving your cash flow usually involves one or more of the following tasks:

  • Increase your income with a better job or a second job.
  • Reduce your spending by limiting additional spending or canceling unnecessary subscriptions.
  • Coordinate your spending with your payroll.

If you don’t know where to start, set a budget for your monthly expenses and see how you can adjust it.

Increase Your Savings

Everyone needs savings sometimes. Without the safety cushion of available funds, something as simple as a flat tire can lead to increased expenses. Ideally, people should have three to six months of expenses in savings available for emergencies. If you’re just starting out, try to save a little from each paycheck. If you can save 10-20% on your salary, it can add up quickly. In your next emergency, you can use your savings instead of going into debt or falling behind on bills.

Automate Your Financial Transactions

In a world of automated systems, there is almost no reason for you to manually pay bills or put money into savings or investments. Set up automatic billing for utilities and other regular expenses so you never miss a payment. Your banking institution may allow automatic withdrawals from your savings accounts when you get paid. With this system, all you must do is track the money in your account and manually pay for one-time expenses like car repairs. The bonus is that your savings will grow without you even realizing the money is gone.

Be Picky About Your Debt

When you have access to credit, it’s important to be careful with it. It’s easy to struggle financially with too much debt relative to your income. Focus your loan applications on things you really need or that will help you achieve your financial goals. Borrowing money to buy a home or to have a reliable vehicle for work can be a good use of debt. In comparison, putting regular expenses on a credit card to increase cash flow can cause problems.

Keep Learning

Building wealth is a lifelong process. Even if you don’t feel like an expert right now, you can still learn a lot and discover new ways to achieve your financial plans. Once you have significant savings or you are ready to start diversifying your investments, it’s a good idea to consult with a financial planning advisor. Financial advisors can evaluate your income and available funds for investment and help you devise a plan that will work best for your retirement goals and other long-term financial intentions.

Building wealth isn’t just for the rich. If you have extra income, you can use it to improve your cash flow, build savings, and invest in your long-term financial health. Check out the accompanying material for more ideas on the keys to success in building wealth.

Infographic provided by Skyline Advisors, financial planning services

Reasons to Hire a Personal Injury Lawyer

Experiencing an injury or accident can be frightening and not only is the injury painful, but dealing with the legalities is also stressful. There are many cases where hiring a personal injury law firm can help you to deal with the legal repercussions, so you can focus on healing and taking care of the physical wounds or injuries.

Personal injury is a legal term used to describe any harm, injury, or damage to a person’s body, mind, or emotions. Such injuries can occur due to various reasons, including car accidents, slip and fall incidents, medical malpractice, dog bites, and many others. If you have suffered injuries due to someone else’s negligence or wrongdoing, you may be entitled to compensation for your damages.

However, getting compensation is not always easy. Insurance companies and the other party involved may try to minimize or deny your claim. This is where hiring a personal injury lawyer can help. 

In this article, we will discuss why you should hire a personal injury lawyer.

Knowledge and experience

Personal injury lawyers have the knowledge and experience necessary to handle your case. They are familiar with the laws and procedures involved in personal injury cases and can guide you through the legal process. They also have experience dealing with insurance companies and can negotiate on your behalf to ensure you receive fair compensation.

Maximize your compensation

A personal injury lawyer can help you maximize your compensation by assessing the full extent of your damages, including medical expenses, lost wages, and pain and suffering. They can also determine the long-term effects of your injuries and calculate the amount of compensation you deserve.

Handle paperwork and deadlines

Personal injury cases involve a lot of paperwork and strict deadlines. A personal injury lawyer can handle all the paperwork and ensure that everything is filed correctly and on time. They can also keep track of deadlines for filing documents and motions, ensuring that your case stays on track.

Investigate your case

A personal injury lawyer can investigate your case to determine liability and gather evidence to support your claim. This can include interviewing witnesses, reviewing police reports, and consulting with experts to determine the cause and extent of your injuries.


If your case goes to trial, a personal injury lawyer can represent you in court. They can argue on your behalf, cross-examine witnesses, and present evidence to the judge and jury. Having a lawyer by your side can increase your chances of a favorable outcome.

Hiring a personal injury lawyer can help you navigate the legal process and ensure you receive fair compensation for your damages. They can handle paperwork and deadlines, investigate your case, and represent you in court. If you have suffered injuries due to someone else’s negligence, it is important to seek legal advice as soon as possible.

Here are some situations in which you may need to hire a personal injury lawyer:

You have suffered a serious injury
If you have suffered a serious injury, such as a broken bone, a head injury, or a spinal cord injury, you may be entitled to significant compensation. A personal injury lawyer can help you navigate the complex legal process involved in pursuing a claim and ensure that you receive fair compensation for your damages.

Your injuries are long-term or permanent
If your injuries are long-term or permanent, you may require ongoing medical treatment and care. A personal injury lawyer can help you calculate the full extent of your damages, including future medical expenses, lost wages, and pain and suffering.

You are not sure who is responsible for your injury
If you are not sure who is responsible for your injury, a personal injury lawyer can investigate your case and determine liability. They can gather evidence, interview witnesses, and consult with experts to determine the cause and extent of your injuries.

The insurance company is denying your claim or offering a low settlement
Insurance companies are in the business of making a profit, and they will often try to deny or minimize your claim. A personal injury lawyer can negotiate with the insurance company on your behalf and ensure that you receive fair compensation for your damages.

You are not familiar with the legal process
Pursuing a personal injury claim can be complex, and there are strict deadlines and procedures that must be followed. A personal injury lawyer can guide you through the legal process, handle all the paperwork, and ensure that your case stays on track.

You are facing financial hardship due to your injury
If you are facing financial hardship due to your injury, a personal injury lawyer can work on a contingency fee basis. This means that you only pay if you win your case or reach a settlement. This can be a great relief for people who are struggling to make ends meet due to their injury.

In conclusion, if you have suffered a personal injury, it is important to consult with a personal injury lawyer to determine if you have a case. A personal injury lawyer can help you navigate the legal process, calculate the full extent of your damages, and ensure that you receive fair compensation for your injuries.

5 Examples of Great Merchandise You Can Sell on Your Online Store

Increasing brand awareness is a big part of what makes a business successful, and while engaging with your followers on social media and creating excellent marketing campaigns is part of that, selling merchandise on your online store can help with this type of promotion as well. You can sell this branded merchandise alongside your usual products, and you can also use them for events such as trade fairs, charity fundraisers, festivals, and so on. Here are some examples of the best merchandise you can sell that your customers will have a use for.

1.    Apparel

Branded clothing is always a big seller, as many people like to show their support for their favorite brands through their sense of style. Furthermore, these items are practical and can be used time and time again. If it’s cold, a comfortable, cozy sweater is what many people will reach for. T-shirts with a company’s logo or tagline are also popular choices, as are hats and socks. You can see a variety of branded clothing ideas at anthembranding.com if you need some inspiration.

2.    Reusable Water Bottles and Travel Mugs

More and more people are growing concerned over their impact on the environment, and as a result, many are trying to find ways to be eco-friendlier in their everyday lives. The use of reusable water bottles and travel mugs in recent years has been steadily increasing, so why not show your customers that your business is trying to help the environmental effort as well? Of course, a green initiative for your company is the best way to do this, but in terms of merchandise, selling branded reusable bottles and travel mugs for your customers to use is ideal.

3.    Stationery

Pens, pencils, notebooks, stamps, and folders are all practical items that people can use every day. Whether it’s to jot things down at home such as a grocery shopping list, or helping them to stay organized at work, having quality stationery at hand is always useful. These are items that your customers are likely to need, so why not offer them some stationery with your brand’s logo on it? Or some other quirky designs that reflect your company’s style? You could even include diaries and calendars in your branded merchandise collection, too.

4.    Coffee Mugs

Another popular choice when it comes to branded merchandise is coffee mugs. Again, these can be used both in the office and at home, and everyone has a favorite mug that they love to use. It’s easy to get your brand’s logo onto these items, and if you happen to sell wines or beers, or other beverages, why not sell some branded glassware, too? You could even take it one step further and sell branded tea and coffee pots, too.

5.    Badges & Pins

Last, but not least, you could have some branded enamel pins and badges created for your customers to purchase via your online store. These can be put on people’s coats, jackets, and even their bags as a sign of support for your brand, and can also make excellent small touches to gift bags at your next corporate event, too!

If you want to start selling branded merchandise to your customers alongside your other products, consider the suggestions above and see how popular they can be.

Incremental Income Ideas To Generate Real Wealth

You probably have friends or colleagues who maintain a line of side hustles. They do it so they can bring in a variety of income streams no matter what they are doing with a day job. If you are wondering how you can make money on the side without having to spend every spare moment on it, you are not alone. With incremental income, you can learn how to create financial security using passive methods. Here are a handful of considerations to keep top of mind.

Understanding Passive Income

Passive income is money that you earn without having to work for each individual dollar you get. Although passive income is usually related to time or money you invest, you can continue to make money long past that original investment.

Since the income is not tied to your active labor, you can have multiple passive income streams running simultaneously. Most passive income opportunities require you to put in a little time or more money to keep them going, but it is marginal compared to what you would need to do for an active income job.

Benefits of Earning Passive Income

If the idea of earning passive income seems appealing, that is not surprising. Passive income — or even having multiple streams of income that are a combination of active and passive — offers plenty of benefits.

These include:

  • Financial security
  • Freedom to make choices, such as moving or starting a business
  • A path to retirement

It’s a myth that to retire, you must save every dime you plan to spend. If you have enough income through passive methods to support your lifestyle, you can start living on that income anytime you like.

How to Earn Passive Income

There are a wide variety of passive income streams. Some of them need a lot of money to start, but many of them don’t. You can try these examples or come up with others:

  • Sell your skills: Having a day job is one way to sell your skills, but you can turn your knowledge and experience into passive income, too. Write an e-book series. Create a set of video tutorials and charge people for access. You can even monetize a blog, YouTube or TikTok channel. That way, the work you put in will continue to earn money for you — even if you are not investing in it directly.
  • Rent out your property: One way to start earning passively is to accumulate property that you can use for rental income. If you own a home and decide to move, see if you can afford to get a mortgage while you rent out your old house. You can also do this with your car, spare bedroom, expensive equipment and more. Set availability to your convenience. When you are done with any of your assets, you can sell them to recoup even more of your investment.
  • Start investing: If living on your investments is your goal, start building them as soon as you can. Taking a few extra dollars and putting them into a savings account or a certificate of deposit can help you get into the habit of saving.

When you are ready, try investing a little money into stocks that have good growth potential. As you accumulate experience and funds, you will likely feel more comfortable making choices using larger amounts of money. In time, the returns might be enough to give you more financial freedom — eventually giving you the ability to live on that income.

Building wealth is easier when you look for ways to do it a little at a time. You don’t need to spend a million dollars to become a millionaire, just creativity and the willingness to see it work over time. By starting with a few incremental income ideas, you can begin creating financial security for yourself today.

This infographic was created by Renovo Financial, a real estate lending group

How Employees Can Benefit From a 401(k)

What Is a 401(k) Plan?

A 401(k) plan stands as a retirement savings scheme, commonly provided by numerous American employers, offering valuable tax benefits for individuals. Its nomenclature is derived from a specific section within the U.S. Internal Revenue Code (IRC).

Under this arrangement, the participating employee consents to allocating a portion of their earnings directly into an investment account, with the potential for the employer to match some or all of this contribution. Within this framework, the employee enjoys the flexibility of selecting from an array of investment choices, typically revolving around mutual funds.

Key Points to Remember:

  • A 401(k) plan is an employer-sponsored retirement account that allows employees to contribute a portion of their income, with the possibility of employer contributions.
  • There exist two fundamental types of 401(k) plans—traditional and Roth—distinguished primarily by their taxation methods.
  • In a traditional 401(k), employee contributions are pre-tax, meaning they reduce taxable income, but eventual withdrawals are subject to taxation.
  • Roth 401(k) contributions are made with post-tax income, with no tax deduction in the contribution year, but withdrawals are tax-free.
  • Employers can contribute to both traditional and Roth 401(k) plans, further enhancing retirement savings opportunities.

If you have been planning for retirement, you would know there are many types of tax-deferred retirement plans. One such popular plan is a 401(k) offered by employers and it is much more than an employee perk. The best thing about this plan is that while it provides greater stability within the business to the employers, it allows the employees to better achieve their long-term financial goals for retirement.

Have a look at some of the benefits a 401(k) can offer you as an employee:

Simple Payroll Deduction

AARP found out that Americans are 15 times more likely to save for retirement if they are given an option to a payroll deduction savings plan. 401(k) is one such plan where the employee contributions are deducted from every individual’s paycheck automatically based on their salary. It is usually a certain percentage of their income, and it gets easily deducted by the company.

Tax-Advantaged Savings

A 401(k) plan offers both pre-tax and after-tax contributions.

  • Pre-tax contributions – There are contributions like traditional (pre-tax) salary deferrals, matching, safe harbor, and profit-sharing contributions that don’t get taxed when they are made. Their amounts, and any earning thereupon, are tax-deferred until distribution.
  • After-tax contributions– Unlike pre-tax contributions, these are taxed when made and tax-free when distributed. These include Roth deferrals and voluntary contributions.

Greater Contribution Limits

You can make higher annual contribution limits with 401(k) plans when compared to IRAs. It allows you to save at a faster rate and plan your retirement before IRA account holders.

Benefit of Compound Interest

Compound interest is a great tool for building wealth. Once your savings are invested, you start to earn interest on it and soon you get more interest on this compounded amount. So, owing to compound interest, your earnings on 401(k) contributions can quickly grow over time and you end up with a substantial amount at the time of retirement.

Dollar-Cost Averaging (DCA)

The regular contributions that are automatically deducted from your salary work on the DCA strategy. From every contribution, you buy a different number of investment shares (fewer when they are expensive and more when they are cheaper). So, it makes it easy for you to participate in the long-term gains of an investment.

Tax Credits

Another advantage of this plan is that it allows low and moderate-income workers to be eligible for a Saver’s Credit. The maximum contribution amount that may qualify for the credit is $2,000.

Ease of Portability

Lastly, if you decide to leave your current employer, you are entitled to an immediate distribution of your 401(k) account. You can also roll this amount to your new employer’s 401(k) plan or a personal IRA.

Saving for your retirement is one of the most important things that you should do during your working years. You can’t expect to work forever and you need a plan to meet your living expenses once you stop earning a paycheck. The above-mentioned 401(k) benefits can make it easy and affordable for you to achieve your retirement goals.

Quick & Easy Steps To Organize Your Financial Documents

People invest a lot of effort in managing their finances, but they seldom keep track of the financial documents. It’s hard to get hold of documentation when you have bank and credit card statements, checks, tax bills, and more to manage. But failing to organize them can land you in a fix at the end of the year when you have to close your financial statements and file taxes. Missing documents can also bring trouble if you need to apply for a home mortgage or personal loan. It makes sense to keep your financial documentation well-organized at all times. Luckily, you can do it by following these quick and easy steps.

Your Financial Documents

Start with what you have

The best place to start organizing your documents is by checking whatever you have at hand. Check all the papers before filing them because some may require urgent attention, while you need not even retain some. Take the opportunity to declutter your paperwork because the extras only complicate things. Organize all the important papers chronologically and ensure that you do the needful for the ones that need to be addressed on priority. For example, if there are credit card dues on statements, you must clear them right away and add new statements in the file. If a tax deadline is around the corner, sort it out on time.

Maintain hard and soft copies

Digitization has made things a lot simpler when it comes to organizing financial paperwork. You can have everything on your device and in the cloud. Even as digital statements offer convenience and save space, you must still have hard copies of all statements. It is easy to install a printer and get prints of financial statements when you want. Check https://setapp.com/how-to/how-to-add-a-printer-to-a-mac to connect it with your Mac. Similarly, a scanner is a good investment if you wish to make digital copies of paper documents. Maintaining hard and soft copies gives you peace of mind that you will have your paperwork in place even if a file is lost or your device crashes.

Seek professional guidance

You may have excellent filing skills, but loads of financial paperwork can easily overwhelm you. There’s always a risk of missing out on a key document or retaining one you may never need. If you are serious about organizing them properly, seeking professional guidance makes sense. Let an accounting professional have a look at your papers and sort them out. They can guide you about organizing them in the future so that you can handle them on your own. Further, a professional can easily pick a missed tax refund or an investment that needs to be liquidated from your paperwork. It can save you from a lot of trouble in the long run.

Managing and organizing your financial documents may take some effort, but it is worth doing. You will have clean records, and it will be easy to access the information you need right when you want it. Cleaning up your financial accounts and taxes will also be a breeze.

Proven Ways to Protect Your Finances

Are you worried that you would not be able afford to live the life you live today if you were to lose your job or to retire? Do you have dreams of buying a car or a home, or taking a holiday in a pristine destination? Well, you can live the same way you do today, and your dreams can still come true—that is, if you are financially secure.

So, how do you become financially secure? The first thing towards achieving your financial security is to ensure that you have enough resources to cater to your needs in the years to come. Having taken care of your future, you can then enjoy living life the way you desire.

However, getting to the point where you have planned your future expenses and can live easily is not a walk in the park. It calls for a lot of diligence and top-notch guidance so that your future will be financially protected.

Personal Finance Management

The following are some proven techniques you can employ to protect your finances and secure your future:

Cultivate amazing money-saving habits

You should be determined to save as soon as you get your paycheck; do not wait until the end of the month, as you may find yourself spending money on some unnecessary things. With little liquid money at your disposal, you are less likely to waste, and you will be compelled to save more for your future, therefore contributing to securing your finances.

It is advisable to put aside enough money for an emergency fund. There are always unforeseen events that happen, for example a car breaking down, a house repair due to things like a tree falling on your roof, and more. To have good security, ensure your emergency fund can take care of at least six months of your expenditures to keep living. In this way, your emergency fund will offer a fallback plan if an emergency happens.

You also need to acquaint yourself with the various benefits that your job offers, for example tax benefits, health insurance options, retirement benefits, and more. All these will go a long way to help you save some money. It is also crucial to be actively involved in financial decisions if you are married, and to familiarize yourself with the financial implications of a divorce in order to protect your financial interests.

One thing that will help a lot is to start saving early on in life, especially when your obligations are still so few. Make sure you save as much as you can manage to put aside, and you will be grateful in the future.

Settle your debts

The decisions you make concerning your debt are critical and may make the difference between a financially secure future and an insecure one. Smart debt decisions may even be of greater value than investing decisions. Additionally, doing away with your debt frees up a bigger chunk of your income, minimizes your risks, and is great protection during bad economic times.

You should avoid piling up credit card debt as much as possible and ensure your credit record is clean and in the best possible state in order to qualify for the friendliest interest rates for your mortgage, car loan, and more. With a good credit score, you also benefit by getting better rates for your insurance premiums, as well as lower or no deposit requirements for your utilities, like telephone, water, and Internet.

However, if your credit score is in a bad state, all is not lost. You can work with experts like Boostcredit101, who will help you to repair it and enable you to enjoy the benefits of having an impressive credit score.

Take out insurance policies

Getting insurance coverage is crucial to protect you from huge burdens or life’s disasters. For example, we get auto insurance, life insurance, and property insurance to protect us from disasters of a great magnitude that could possibly render us bankrupt.

Can you picture the impact of a car crash that results in several injuries and a wrecked car, or a health case, or a natural calamity? These will all have huge and devastating effects. Having insurance coverage for such things will make them easier, since the insurers will get you through to the better part of the catastrophic occurrences.

Streamline your estate plan

One key way to protect your finances that many often forget or overlook is developing and sharing your estate planning documents. It is critical to do so to ensure your family or heirs can control and manage your property, finances, and other assets. Some key documents that are in line with organizing your estate that you should develop and share with your family or dependents include the following:

Will/testament – This is a legal document that defines how your estate is to be distributed in the event of your death, and identifies one or more individuals as the executor(s) to oversee the running of the estate until its ultimate distribution.

Power of attorney – This document enables you to name a trusted person to oversee your finances if you become incapacitated or unable to make decisions for yourself.

Medical directive – The document details how you should be taken care of medically, and the interventions to be made when you are incapable of making sound decisions.

Living trust – This enables quick and easy distribution of your property to your heirs without involving a costly and lengthy probate process.

Engage a top-notch financial planner

You may not be well experienced or equipped with financial skills, thus the managing of your finances and property may be a challenge. The best thing to do to help you protect your finances and even multiply your wealth would be to work with a well experienced financial planner, one who is committed to achieving your financial goals the same way you are. Such a planner will help you to protect your finances and secure your future.


You can protect your finances by having good savings habits, eliminating your debt, ensuring your insurance will help you handle catastrophic occurrences, planning your estate, and working with a good financial planner.

How to Set Up Your Retirement Plan Through REITs Investing

Most of us are always finding ways to generate more income or create alternative streams of passive income to retire comfortably. In fact, investing in stocks will definitely be one of the options that you would have considered.

Investing in stocks can require substantial time and amount of work to research. It is still a great way to grow your wealth. If you are not interested in analysing the financial figures and understanding business in general, then perhaps investing in REITs can be a great alternative for you.

Real estate investment trusts (REITs) are professionally managed investment schemes, setup to manage, acquire and finance income producing properties. They are less complicated to understand since fundamentally their role is to rent out the properties in their portfolio, and in return, investors get a share of the rental income

Retirement Plan

Plan Your Retirement Through REITs Investing

One of the greatest benefits of investing in REITs is the consistent dividends they provide. Generally, REITs will distribute most of its rental income, net of expenses, to unit holders of the REITs. For instance, in Singapore, REITs are required to distribute at least 90% of their income in order to enjoy tax exemption benefit.

As such, you can work out the amount of dividend income you can receive based on the principal investment you have made. Consequently, you can work out how much you need to have in your investment account by the time you retire, in order to generate sufficient dividends that can cover all your expenses.

Work Out Your Expenses

For example, if your expense is $3,000 every month, then you will require $36,000 of dividends income every year. Based on a 5% dividend yield, this means you will require an investment portfolio worth $720,000 ($36,000 divided by 5%) by the time you retire.

Compound Your Investment Portfolio

Based on the end goal of $720,000 worth of investment portfolio, we can work backwards to calculate the investment capital you need to make. The idea is to let time compound your wealth for you.

Again, using a 5% yearly dividend return, assume that we reinvest all these returns throughout the investment horizon. Say you are 25 years old today, and plan to retire at age 65. This means that you will have a 40-year investment horizon.

By working backwards, you will need about $100,000 today for investment. Thereafter, you will reinvest all your dividend profits back to purchase more REITs units. In 40 years’ time, you will have about $700,000 worth of investment portfolio. This is represented by the blue line plotted on the chart below.

This means that at age 65, you will be able to start using the yearly dividend payout of $36,000 to pay for your expenses and not worry about your financial well-being. At the same time, your $700,000 asset will still be preserved in your portfolio of REITs.

This calculation excludes any potential capital gains from your investment portfolio.

In another scenario, let’s say you don’t have $100,000 for now, and you can only invest $10,000. And say, perhaps you can save and invest an additional of $5,000 every year to your portfolio. Again, at 5% dividend returns annually, and reinvesting all these profits back, your portfolio will reach an estimated $700,000 worth in value in 40 years’ time.

The only thing that you have to take note of in this case is that, since you started with lesser investment capital, you will need to put in more money over the course of the 40 years period. The yearly $5,000 additions will accumulate to a total of $200,000. Meaning, you would have invested a total of $210,000 instead of just $100,000 if you put in the lump sum in the beginning.

Nonetheless, the compound effect still works in favor for you over the long investment time frame. And most importantly, you will not need to rely on any pensions or social security when you retire. And you can still maintain a relatively comfortable lifestyle if you practice prudent and disciplined investment in REITs during your lifetime.

Getting Started with REITs Investing

To get you started, we will highlight three key elements you need to assess when investing in REITs.

1. Industry

Understand that REITs usually focus on holding properties in specific industries. They can generally be categorized to the sectors below:

  • Retail
  • Offices
  • Industrial
  • Residential
  • Healthcare

They can hold properties from a mix of industries to diversity risk. Understand that within each sector, we need to understand the nature of the subsegments that exist in them. For instance, in the retail sector, shopping malls in the tourist areas or luxury-brands-focused are closely related to the economic environment. Whereas shopping malls in the suburban areas will be more defensive, as they usually house businesses that sell necessities by being closer to homes of the consumers.

2. Price-To-Book Ratio

Net Asset Value (NAV) = Total Assets – Total Liabilities

Generally, REITs finance their property acquisitions through debt and equity, with the latter being the investment from the unitholders. Debt will hence form the liabilities side of the equation. Since REITs main activity is to manage properties for rental income, most of the value of their assets will be associated with the property values. Therefore, NAV tells you how much cash will remain if all assets are liquidated to pay off its liabilities. Essentially, it means how much will be left for the unitholders in total.

Net Asset Value Per Unit (NAVPU) = Net Asset Value / Total Outstanding Units (Shares)

Price-to-Book Ratio (PB Ratio) = Unit (Share) Market Price / NAVPU

Price-to-Book ratio is a key metric when investors evaluate a particular REIT. Generally, a value of less than one implies that the REIT is undervalued, since investors will be paying lesser than what the properties are worth, net of its liabilities.

However, you will observe that great assets, especially those defensive ones will usually hover at a PB ratio of above one. On the other hand, some REITS with lower quality property portfolios will consistently trade at PB ratio of less than one.

So, do track the historical PB ratio and assess how they behave in the past in order to assess for good entry points for investment.

3. Gearing Ratio

Gearing Ratio = Total Debt / Total Assets Value x 100%

This metric measures how much leverage a REIT employs when financing its properties. Typically, the higher the leverage, the riskier the investment is for investors since the REIT will have more difficulty in fulfilling its financial obligation during a crisis. Hence, a gearing of around 30 – 45% will be ideal. Investors have to be wary if a REIT’s gearing is anything more than 45%.


In summary, REITs are a relatively safe form of investment with real property assets. Compared to typical stock investment, such Trusts are simpler to understand, hence easier to evaluate for investors.

Over the long run, with prudent and disciplined investment, by reinvesting the dividends back to your portfolio, you can achieve a substantial portfolio value. And this will provide you with passive dividend income every year that can pay for all your expenses. You will no longer need to worry about your financial well-being when you get old, because you know that you can live off these passive streams of income.

Start learning more about how to invest in REITs today.


Charlie is the founder of Carepital. He is passionate about making business and investment knowledge accessible to all. He feels that living life on our own terms is what makes a fulfilling life. To progress this mission forward, he embarks on a journey to share his thoughts and research via Carepital, in hope that many can pursue their own passions and financial goals at the same time.