Important Things to Remember When Managing a Team

managers

Managers play a central role in the growth and development of the team they manage, as well as the individual members of their team. They are responsible for many things, like facilitating the team, building the work culture, bringing out each member’s potential and nurturing their talent, and making objective, fair decisions.

When managers are unable to meet their responsibilities, it’s not just the team that suffers; the whole organization feels the burden. The best employees slowly disengage until they decide to quit. The employees who stay will perform the minimum standard at best; at worst, they will actively sabotage their work.

It is the leader’s duty to manage their team well and increase employee engagement to boost productivity and retain talented employees. To do this, a manager must keep in mind several things.

Set Clear, Challenging Goals

The team needs specific, clear goals in the same way a builder needs a blueprint to form a house. Without goals, each member won’t know what tasks they need to perform and what they are trying to achieve with their efforts.

Managers need to be transparent and meticulous in creating and communicating the organization’s goals. Not just that, they also have to relate this on a team and employee level. For example, the company’s goal is to be the number one brand in the industry. How can ordinary employees to contribute to this?

It is the leader’s responsibility to come up with team goals that stem from the organization’s greater goal. These team goals must be specific, measurable, realistic, and time-bound. Most of all, they must be challenging to lead to greater performance, according to Edwin Locke’s goal-setting theory. The higher the goals, the more rewarding it is to complete them.

Setting clear and challenging goals improves employee performance and allows better and more specific feedback that can boost employee motivation and good behavior.

Create a Healthy and Open Work Environment

The employees’ willingness to attain the organization’s goals determines their job motivation. But what sustains it depends on several factors. One of the most important factors is the work environment.

To create this environment, managers must encourage open communication and cooperation between employees. They must listen to the team and give value to the each member’s contribution. Most of all, they have to be authentic and transparent. They should not be afraid to put their trust in their employees and ask for help when they need it.

A healthy and open work environment empowers employees to generate more ideas and confidently share them with the rest of the team. It also creates a culture of teamwork, where each member is working not just for individual gain, but also for the benefit of the whole team. In an environment like this, even disagreements can be had respectfully and constructively.

Managers are also responsible for creating a safe and healthy work environment. They must be proactive in making sure that the organization complies to safety standards set by the law, such as ensuring employees pass workplace drug tests, maintaining cleanliness in the office, and preparing for emergency situations.

Provide Valuable Trainings and Opportunities

It’s part of the manager’s duty to ensure that each and every member of the team is equipped with right knowledge and skill to perform their job well. As the organization grows, every team and employee is expected to develop with it.

Greater goals will demand higher skill levels and expertise. Rather than looking for new talents, managers should nurture the ones who are under them. Providing trainings and opportunities will bring out employee potential and increase proficiency. Employees will not remain stagnant.

In a classroom, developmentally advanced students need to be constantly challenged and engaged to keep them interested. The same goes for your most talented employees.

Most of them aren’t really in it for the money; they can find that at other companies. What they want is constant growth and development, as well as appreciation and recognition for their exceptional performance. You can keep your best employees if you can secure those without faltering.

Retaining top talent is a continuous, laborious job for managers, but the returns are more than worth it. “Employees with all three—good fit, high engagement and 10+ years at an organization—dominate performance. They perform 18 percent higher than the average employee and 35 percent higher than a worker who lacks all three elements,” says a Gallup survey on why the talented employees leave.

Recognize Effort, Reward Achievement

Abraham Maslow, one of the most influential psychologists of all time, proposed a hierarchy of needs to explain the human motivation. At the second tier of the pyramid are the esteem needs—recognition, status, importance, and respect from others. Maslow posits that all humans have a need to feel respected, accepted, and valued by others, which leads them to engage in activities, like a job or a hobby, to gain recognition.

Most employees don’t enter and stay in a company for the salary alone. If it were only that, people will not make such a big deal about entering a reputable company with a good work environment.

Employees want to be appreciated and valued for their work. When they are respected and accepted by their leaders and coworkers, they take pride in their work and are more motivated to do well.

One mistake that many managers commit is failing to recognize employees who have worked hard and only rewarding those who have exceptional achievements. While employees have different needs that motivate them, being appreciated for working hard is a universal need. Managers can reward exceptional performance, but they shouldn’t forget those who do the daily grind.

Build Your Dream Team

As a manager, you should take the lead and be what you want your employees to be. Instead of competing with your employees, you must work to make them better and put your trust in them. The leaders are the links between the organization and the employees.

Rarely do employees build direct relationships with the organization. They build their loyalty and commitment through their leader. If their manager doesn’t do their job, then employees will leave and look for a good organization with responsible managers.

Problems with Business Money Transfers

Money Transfers

Money Transfers are a common part of the business landscape: whether you’re paying a supplier or receiving cash from a client, it’s likely that you find yourself on one side or another of the transfer cycle on a regular basis. But there are lots of reasons why business Money Transfers can go wrong if they’re not properly executed. The transfer channel you use might not be fully secure against fraud, for example, while moving money internationally can also cause headaches. Here are some of the main obstacles to a successful transfer, and how to avoid them.

Trust and Security

Moving a large amount of money from one place to another inevitably necessitates an element of trust. You’ll most likely have to use a third party in order to get the job done, such as a bank or an online payment provider like PayPal. And while these services often have plenty of measures in place to ensure that you don’t get defrauded while moving your money, even the most rigorous and secure sites can’t defend against user error. When moving money online, then, always ensure that you conduct business on a secure, private computer where passwords and other sensitive security data can’t be monitored.

Charges and Fees

If you’re moving a large amount of money from one place to another, it’s possible that you’ll be required to pay a fee. After all, fees and charges are how many of these platforms make their money. Some banks might not charge you for transfers, but some will – so it pays to be prepared. Usually, it’s wise to do your research on which platforms are the best for you well in advance of the transfer date. You should also speak to the sender or recipient, too, and ask them which platforms they would prefer. If one of you has to pay a fee but the other doesn’t, depending on the business relationship you have it may be worth negotiating to split the cost.

Moving Cash Abroad

When an international dimension is introduced to the monetary transaction, though, the whole thing becomes a bit more complex at the drop of a hat. It’s likely that you’ll have to pay a fee in addition to potentially losing out on the exchange rate (depending on the destination), so it’s worth shopping around. It’s also a good idea to prioritize customer service so that you can get any queries handled quickly. For international transfers out of the USA, it’s a good idea to work with money transfer companies in New York in order to get the best possible service.

When it comes to money transfers, it’s wise to ensure that you’re on the ball as much as possible. From preventing fraud from taking place to ensuring that any cash you move is done so in a way that keeps fees as low as possible, there are lots of things to look out for when making a business transfer either domestically or internationally.

Buying an Investment Property in Surrey BC

Investment Property

Surrey BC Real Estate

Surrey is quickly becoming a booming metropolitan area. While real estate prices are currently considered affordable compared to other regions in the Greater Vancouver Area, price tags and Investment Property are expected to rise. With more economic growth expected to happen across Surrey in the next few years, now could be an excellent time to invest in a Investment Property. You can earn money by renting the property, and you’ll benefit as the home’s value goes up giving you more money to open bank accounts.

Surrey is an up and coming city for families – this makes it an excellent place to invest in rental property. Homes in Surrey are selling quick, on average a home is on the market for only 17 days. The city of Surrey is massive, and there are plenty of detached home, condos, and town homes available for sale. So whatever your budget for an investment property, there should be a listing that meets your needs.

Getting a Mortgage in Surrey

Once you’ve found a property to invest in, you’ll need to secure financing in order to pay for it. It is always highly recommended to work with a Surrey Mortgage Broker.

Securing financing for a rental property can be tricky, which is one of the reasons we recommend using a mortgage broker instead of walking into your local bank branch. Banks are limited to offering only their own products. So even if they approve you, you may not be getting the best deal available.

A Surrey mortgage broker works with multiple lenders and banks. When you work with them, they compare the mortgage products from all their connections, and present you with only the best choices. This help ensure that you’re getting the best product, and the best rate. Additionally, working with a mortgage broker is free. There really is no reason not to work with a mortgage broker in Surrey for securing an investment property.

Interest Rates in Surrey

Mortgage rates for investment properties in Surrey that are non-owner occupied, are often just slightly higher than the interest rate you would receive for your primary residence. Of course that is assuming you already meet all the lender’s requirements, have acceptable credit and reasonable down payment.

It is important to note than in order to get a mortgage for an investment property in Surrey, you’ll need to be able to pass what is known as the stress test. The stress test is being able to qualify for the Bank of Canada’s 5 year benchmark rate, or your proposed contract rate plus 2% – whichever is higher. To put in simple terms, if at the time of your mortgage the lender is offering you a rate of 2.5% and the benchmark rate is currently at 5.25%, you’re going to need to be able to prove to the lender that you would be financially capable of paying your mortgage down if the rate was 5.25% (Although you will only be required to pay 2.5%)

Pros and Cons of Rental Property in Surrey

Investing in rental property is a big step, and it is important to weight the pros and cons before making such a big decision. Below are some of the top pros and cons of purchasing rental property in Surrey BC.

Pros

Steady Income – Of course, the main reason people invest in rental property is for the monthly paycheck. Unlike risky investments, a good and stable tenant will pay you on time every month so you can count on the steady income.

Tenants Pay your Mortgage – While you are the one who has applied for the mortgage, with tenants in the home, they are actually the ones who end up paying down the mortgage via their rent. Eventually once the mortgage ends, you’ll completely own a huge asset that someone else paid the loan for!

Protection Against Inflation – Inflation, the rising of prices due to money losing value is inevitable. As the cost of food, and gas go up with inflation so does your home value and the amount you charge for rent. But your fixed rate mortgage payments will stay exactly the same, essentially “protecting” you from inflation.

Cons

Tenant Risk – Being a landlord is a tough job. Whenever anything goes wrong, you are the one the tenant calls. Whether it’s 4pm or 4am, the tenant’s problem is your problem. While you can outsource management tasks to a third party company, they are not cheap.

Possible Crime in Surrey – While crime rates have gone down in Surrey recently, there are still neighborhoods that are a lot rougher around the edges than others. Before diving into an investment property, make sure to do some investigating on the neighborhoods it’s located in. Surrey is a huge city made up of six very different town centres. The safety of each centre can greatly vary.

Non-Liquid Investment – While real estate can provide a steady income when it runs smooth, it is not always easy to get rid of if liquidation is required. Selling a home often takes months and months, which is not ideal if you are in a pinch and need cash right away. On the other hand something like stocks (while possibly more risky) can be sold for cash almost immediately at any given time.

A Guide to Contracting in the UK

Contracting in the UK

Becoming an independent contracting in the UK can be a daunting prospect – say goodbye to your steady salary, employee benefits and normal working hours. However, say hello to greater flexibility, higher earnings and more personal freedom. If this is your first time dipping into the world of contracting in the UK, then read this guide to help ensure you understand the requirements.

Guide to Contracting in the UK

Your CV

Since you’re going to be working for a much higher number of different employers than a full-time employee, your CV is going to be under frequent and intense scrutiny. That means it needs to really sell you and your skills. Put your skills first and foremost, since these are what clients are going to be looking for. Also, use case studies on your CV that highlight your skills and show how you have helped other clients. Finally, make sure your CV looks clean and professional – clients will be turned off by poorly designed or formatted CVs. There are plenty of guides available to help you write a great contractor CV.

Networking

This dirty word is a large part of contracting. You should be collecting business cards like they’re Panini stickers. Whenever you get a new client, give them several of your business cards to give to clients of theirs. Keep in touch with former clients and prod them every few months to see if they are in need of your services.

Use Agencies

For most contractors, the majority of their work comes from agencies. These are matchmakers for clients and contractors, facilitating fruitful partnerships and, importantly, steady work for you. There are agencies which specialise in certain industries, so find the right ones for the type of work you do and sign up to all of them. The more you sign up to, the greater your pool of potential clients will be.

Read AlsoTips to Build a Friendly Environment at Work

Payroll

As a contractor, you have control over how you are paid. Contractors might choose to become a limited company or will use an umbrella company for administrative purposes. Using an umbrella company brings the advantages of having the administration of payroll, invoicing, tax, etc., taken care of by specialists. You can set payroll up quickly to sort out contractor pay as simply as possible. Using an umbrella company is also a great way of making sure that you remain compliant with IR35 and you will be paid PAYE, as if you were a full-time employee.

The Contract

Contracts are the basis for the agreement, the services you are providing and the conditions in which they are provided, so make sure that you get the contract right for both parties. It is essential that terms are defined, commercial obligations are clear, and you decide on how arbitration should take place. There are several resources available to help you with contract writing, so make use of them.

Time

You are very unlikely to be able to work full-time, or even part-time for an employer, and also be a contractor. Embracing the life of a contractor often means giving up employment in order to make sure you have the time to deliver work for all of your clients and find more clients to work with. Be prepared to make a decision between your employment and your contracting work.

Why You NEED to Invest in Your 20s

For most young people, being in their 20s comes with changes and figuring out life. This is the age bracket where people have a high likelihood of getting into too much debt or merely figuring their investment journey. At this age, you have the luxury to take on more risk than older people as you still have a couple of years ahead of you to right the wrongs.

Even with student loan debts, being in your 20s is an advantage as you can get into the investing world and make the most out of it. As a millennial, the idea of making your money work for you is exciting and should be a motivation for all the 20-somethings out there. So, why should you invest at such an age?

1. The Time Advantage

There’s a huge time advantage when you decide to go down that road. As much as you may be repaying your student loan debt as well as battling with a low salary due to your lack of experience, time is still in your favor. Growing an investment as early as this age could help you reinvest such that by the time you are in your 50s and 60s, you have substantial money in form of investments.

2. Less Responsibilities

At such an age, the responsibilities are not as many as at a later time. Your expenses may also not be as much as this is when you are still trying to figure out what investments will work for you. Making a crucial investment decision determines how your future will look like. Have a detailed budget that focuses on minimizing your expenses. This does not mean you should not go for vacation or a night out with friends. This means, however, that everything should be in moderation.

3. More Interest Gained

Putting away some savings comes in handy. What’s even more liberating is knowing that the money saved is earning interest. As such, the earlier you start saving, the more interest your money earns. Get financial institutions that offer such services and make a comparison on what works best for you.

Read Also: How to and Where to Invest When you are Broke?

 4. More Informed Choices due to Technology

 Technology is such a powerful tool when investing. Millennials (twenty-somethings) are quite tech-savvy. They are informed on the latest trends and are quick to learn different apps. As such, with the rise of varying online trading platforms, it’s easier for them to learn and discover the countless opportunities available. At such an age, not everybody understands investment tricks, however, you can look up stash invest reviews for comprehensive lessons. Social media comes in handy with opening your mind to a world of incredible opportunities. With investment discussions going on online, you get to find out what works for you.

5. Complements on Employment

What happens if you dislike your job? Or suddenly lose your job? If you had no other plan b, you go back to the drawing board which could make life unbearable. Investments come to complement your job in cases like these that you may have no control over. Look for a steady investment that will act as a complement to your career.

6. You Have the Chance to Learn

As a young investor, you have the chance to learn about investing. You have years to learn about investments and how to approach different options such as the stock market. Through successes and failures, you get to fine tune your journey as you learn how certain decisions affect the curve. Learning through your mistakes helps figure out your journey and perfect it such that you are able to figure out what strategies work for you.

Read AlsoIs playing the Lottery a Type of Investment?

7. Higher Risk than Older People

It’s easier for a young investor to take on a high-risk opportunity than an older investor.

When in your 20s, you can withstand higher risk because you still have time to make things right. However, during retirement, you may not have the luxury to explore all opportunities available as some are higher than others as they may end up in you losing your lifetime savings. Therefore, invest when still young for discovery of mega investments that could result in high returns.

While investing is a brilliant idea, here are a few factors to consider before you consider investing:

  • Never compromise on paying any debt. Your credit score solely depends on how timely you are in paying credit cards as well as any other debt owed. In case of any difficulty, ensure to talk to your lenders and come up with a flexible repayment plan.
  • What do you intend to achieve in the next 5 or 10 years? Have set goals for what you want in life and start working towards that. Having a vision will help you have the discipline to work towards actualizing it.
  • The power of a budget. Budgeting helps you have a plan. Your budget should include the money you set for investing every month. This way, you are working towards being free financially and establishing a foundation for your future.

As a young investor, don’t be afraid to invest. Life is all about risks. Read a lot as information is a powerful tool when making such crucial decision. If at analyzing yourself you feel you need a financial advisor, get one. Do not invest in something because you hear that people are making millions out of it, invest in it because you know about it and you have analyzed the risk level and you are comfortable with it.

Is playing the Lottery a Type of Investment?

Lots of investment schemes allow you to pay in a small amount of money, even just a couple of dollars every week, in the hope that one day this will grow into a large pot. Does that sound familiar? In some ways, it’s just like playing the lottery – a similarity which may well make you wonder if funneling your cash into the magic weekly draw might well be a decent investment decision after all. Here, we’ll take a look at how playing the lottery compares to other major forms of investment.

Stock Market

Investing your money in the stock market is one potential method to consider if you’re hoping to build returns over time. Many people who make the decision to invest and build a diverse portfolio covering lots of different stock interests do find themselves earning something back as time marches on, although as with the lottery, it’s not guaranteed.

However, while there’s a possibility that the stock market can provide returns over time, there’s one way in which playing the lottery is almost always going to beat the markets. That lies in the size of the prize money for larger jackpots! When it comes to playing the lottery, the amount that you’ll win if you win big will pretty much always trump anything you’d get from investing in the stock market – so if you’re happy to forego relatively small dividends over time on the off chance that you’ll cash in a million dollars, then the lottery is definitely for you.

Forex Trading

One type of alternative investing which is growing in popularity these days is trading foreign exchange (Forex) currencies. By betting on how prices between two different international currencies (such as the US dollar and the Canadian dollar, for example) are going to change, you can in theory profit from the difference if you predict correctly.

While the word “trading” might give this form of investment more of a reputable veneer, it’s not necessarily the case that you’re likely to win. In fact, despite being known as an alternative investment, it’s suggested by some that the systems used are deliberately stacked against you. While the odds of winning the lottery are also relatively low, they’re also fair: anyone’s numbers can come up, and they’re generated at random. With Forex trading an element of expertise is essential and you can lose a lot of money very quickly if things go against you – which makes the lottery suddenly seem a whole lot more appealing.

Buying a Property

Those who disapprove of the lottery might say: “Oh, you could have bought a condo by now if you’d saved up all that money you spend on tickets every week!” And while that might be true, saving and sacrificing to buy a condo wouldn’t necessarily have been the smartest move. Despite property having a reputation for being a “safe bet” when it comes to investment decision making, it’s not always the case.

Real estate prices in Manhattan, for example, have dropped recently to their worst quarter in more than five years – so there’s no certainty that investing in bricks and mortar will reap rewards. As this example shows, the odds of success when investing in property aren’t exactly guaranteed – so you might as well invest in the lottery instead! But whatever path you choose, if you find yourself wondering “what are the odds of winning the lottery” then it’s worth taking some tips on how best to maximize your chances – just as you would for property.

Playing the lottery is fun and enjoyable, and it gives you a chance to daydream about what it would be like if you didn’t have to commute to work in traffic every day or put up with a job you dislike. And while many people might laugh at the idea of calling it an investment, it’s clear that there’s some truth to the idea. Very few investments are 100% risk free, and the lottery is just another example of where money can possibly make you rich without it being guaranteed.

In fact, when the lottery makes you rich it pulls out all of the stops. Unlike some forms of investment, which take your money and then pay back paltry returns over a period of years, the lottery can give you a huge windfall at any moment – which as an amateur could change your life more than any property investment or well-executed stock market trade would!

Top Social Media Marketing Mistakes to Avoid

The internet is day by day becoming more involved in our lives. An average at least spends around one hour on the internet in one way or another. Majority of the internet use is on social media and with that more and more businesses are moving towards social media for marketing. The virtual ads where they used to be printed in the newspapers now are on social sites such as Facebook, Instagram, Twitter and much more.

Just like with anything new you make mistakes doing it the first time, same as the situation with the social marketing it’s complicated and different from how it used to be done in the old ages.

Here are some of the mistakes people make in social media marketing:

Social Media Marketing Mistakes

Content Equals Success

One rule to learn about the internet is the better your content is, you’re more likely to get a lot of attention through it. There’s a saying “content is king”. If you have a starters company need to get recognition strong content might just be the only hit you have on getting your company viral.

When selling your product make the description of your products properly, get then reviewed see what the professionals think of it and the customers get feedback and try to make it better, use catchy phrases and things which are unique and will sit in a person mind.

Business Connections

There’s a big difference in business Connections and social media connections. There’s no doubt social media connections will help you spread it on social media and make connections. Although these connections will help you spread it to more people too this won’t help you make real connections which are interested in helping you grow your business and help you make your products better.

Start a Blog

Ever increasingly there are more and more blogs started by companies now to bring awareness to the people about the company. More companies are hiring writers for their blogs and the writers expect to get a lot of views but this becomes otherwise. Because of so many blogs by companies now even the good content is not getting recognized as well as it used to be. So the companies and writers get frustrated and shut down their blogs.

There is a need for patience. If you keep delivering good high-quality content sooner or later you will get recognized it’s just about luck so keep writing and don’t get frustrated it’s a long-term process and takes time.

Newsletter Subscription

It might seem useless at first I mean if someone’s interested they’ll visit your blog again they won’t they, right? But sometimes I’m sure even you can relate to it after reading something you think it’s really good and you will come back visit the site again but in the meantime, you get busy in a lot of things and forget about it.

Pay more Get more

If you desperate to grow your blog and spread the word about your company quickly invest money put up your ads on social website’s this will help you spread your word quickly and bring customers in fast.

How to Become a Millionaire by 30

Poverty is a punishment for the crime you never committed. Being poor sucks, even the middle-class category where you have to think twice before taking any money-involving step. Be it buying or investing in the smallest of things, when a person cannot afford to go bankrupt then hesitance become a hurdle in financially progressing well in life. Here is presenting to you 5 simple ways to become a millionaire by the age 30 because life does not wait for the person to grow, you either wait for a miracle to happen or row the boat yourself to make waves.

How to Become a Millionaire

Think Big

When the focus is a small target then the destination also becomes an ordinary one. To make more money with limited resources and time, it is necessary to start and think big so that the objective delivers an extraordinary outcome. The key to thinking of higher achievements is to pick up an inspirational personality to get improving influenced.

Don’t Show Off

When people start showing off after only a little hike in their income, the reactions act as a root of the downfall. Instead of showing off, the focus should be on growing and developing more ideas on how to turn this asset into a beneficial reward. Instantly spending the money without thinking of the future plans ultimately result in destruction.

Avoid Non-Profitable Loans

Debt acts the snake venom that sucks all the money from the accounts leaving the person financially dead. Taking loans that are ineffective in the long run should be skipped if the intention is that of a millionaire. If needed, loans should be the ones that can be paid in lesser time to get rid of the outgoing of the money.

Earn to Save and Invest

Logically speaking, what is the use of the saved money when you are unable to provide yourself with all the luxuries that you’ve been desiring for? This idea is for those people who believe in saving all their life and getting nothing in return. Money should be saved but to an extent. To become a millionaire, one should earn and save the money to keep it rolling.

Frame the Priorities

Setting the target before starting off with the millionaire journey is a mandatory step to take. When you have the priorities set, it becomes easier to achieve the goal. Also, never restrict the aim to a limited target. When the destination has a limitation in terms of earnings, then the stored money soon starts to disperse resulting in a loss.

Read Also: Retirement Mistakes Everyone Should Avoid

Chances Don’t Wait

Life is too short to be working for someone else’s dream. When the intention is to cross all the boundaries of success, then working in a restricted environment is useless. Opportunities can either be created or waited for. Build your own dreams and follow them without any hindrance to reach the ambition.

When you go through the renowned millionaire’s inspirational stories, you’d conclude that these 6 simple steps are foolproof and never fail to impress. So, follow them and turn your dream into a reality.

Retirement Mistakes Everyone Should Avoid

There no doubt we all make mistakes in life and later on catch up with them, but some steps in life can have such consequences which you cannot make up for such as the mistakes we make in the retirement stage. Planning for your retirement is crucial; some important decisions have to be made in life at this stage, so it is necessary that you don’t make mistakes at this time.

So to help you in the process to make your retirement a smooth one here are some of the general mistakes people make in time of retirement

Leaving out Maximizing your Employer Match

If you’re lucky enough to have worked for someone who offers 401k or some other retirement plan with a match, take advantage of it.

Once you have taken into the plan (which means you have worked with the company for long enough that you comply with their policy of retirement plan). The employer match money is yours but in the term that you have invested in it yourself as well.

Majority of the people say the employer money is like free money and possibly the best return you will find on a dollar. So for the sake if you’re employer matches money up to 3% on your salary, you also have to invest 3% of your salary as well.

This way you annually save up to 6% of your salary. If not maximizing your employer money you’re leaving out on almost free money which could help you with funds and financially in the future.

Taking Loan from the Retirement Account

This might just be the most common mistake people make. Most of the retirement funds let you take out money as a loan from your retirement plan account, so many people treat those accounts as savings accounts. People use that money to buy a nice car and so on.

While this might be fun at this stage but can have really bad effects in the future. Where that money could be used to buy things and help you get settled after retirement, that money is used up for luxuries in your daily life.

Adding to this if you leave the job before you pay off your loans when the taxes add up the interest rates may top up to the sky.

Not Diversifying your Investments

You might’ve heard many people saying don’t invest in a single business. It’s a piece of advice which if you follow will lead you to be a successful person.

The key to getting successful is not to rush when doing anything. If you rush into investing and exhaust out your retirement funds, the market is going high up, and you invest in diverse markets without analyzing it well.

You possibly lose a lot of money, and with that being said, you even don’t have the money to return your loans in such case you will be in great debt you won’t be able to pay off.

In the end, I would advise you not to use up your retirement funds for anything; it will cost you more than you expect.

How to and Where to Invest When you are Broke?

No one can claim that he does not need money. Even just for the basic necessities of life, we need money. And money has to be earned, to be made. Money defines our position in the society – this had become an unwritten, understood rule of the world. Since the very beginning, human beings exchanged items in return for something. The barter system was ended up, coins and gold taking place and then paper currency made a revolution.

Everyone is in the race of making more and more money to let the ends meet.

Earning Money

There are various ways of earning money unless you become a thief. Either you do a job and get paid for your services, or you do business. Running a business is not easy, you need to take a risk on your capital and must guess on whether you will be getting profit on your investment or not. Investing your money in the right place is highly essential and is an art not everyone is master of. To take a business initiative, one has to be bold and promising enough to make a mark and a difference in the already established market.

Investing with Low Money

But what if someone has less or no money at all? How can you start building up money and profit? There are many ways to start a small business. Like for instance, you can start a home-based DIY craft business. Utilize your skills and talent to work for you. Employ all your knowledge to it. But before any of this, start saving money. Cut the amount of money you usually spend and save it up. The more you save, the more you will have to invest.

Some Stock-Based Options

Dividends reinvestment plans, exchange-traded funds, and target date funds are some of the assured ways to get profit on your money. In DRIPs, you buy stocks from the company directly and invest the dividends again, making the profit growth. ETFs are a way in which you invest in some of the promising sectors of stock markets through brokers and there no limit to how much less you can invest. The companies will pay dividends. In TDFs, you are investing for your retirement. It is a combination of when you retire and the percentage of profit of the stocks. It is a way to ensure that you have money saved and build up when you approach retirement.

Gold and Property

You can also invest in gold or property. It is said that gold can never disappoint you. Buy a gold biscuit or a bar, and let the prices get high and similarly, invest in some emerging property area and wait for the prices to rise before selling it.

It is a tough but promising task to invest your money, and that too when you are broke.

But with little foresight and vision, and a little bit of risk, you can take one big decision which will end up making you successful.