The idea of investing money into the stock market can be intimidating to some and financially out of reach for others. But with the recent rise in popularity of online investing many of the old routines for trading are becoming outdated. Not only are the methods for buying and selling shares in a company changing significantly, the purchasing power over those shares is also starting to look very different.

The newest advancement to make the financial industry stand up and take notice has been the growing phenomenon known as fractional shares. These are a whole new way to look at  buying shares in today’s constantly evolving economic landscape and it’s opening up new possibilities for those individuals who were either too intimidated by the prospect of getting into the market or felt like they had been priced out of it all along.

How Fractional Shares Work

Simply put, fractional shares are exactly what they sound like in that you can purchase a fraction of a certain share. Consider some of the more popular (and expensive) stocks out there. Take Netflix, for instance, which is currently trading at around $280 per share. Some investors may balk at getting into Netflix for the sole reason that it’s just too expensive to buy.

But with fractional shares investors who steer clear of the higher priced stocks now have the chance to get in by purchasing a piece or fraction of that share. So if you were to purchase Netflix on a fractional share you might buy one third of one share which would come out to around $93. Now investors who may have wanted to buy Netflix at some point are able to do so at a fraction of the cost.

This new method for trading shares gives people a chance to put their money into those prestigious stocks that might have eluded them due to the cost of buying into them previously. The result is a whole new horizon of trading opportunities for potentially brand new investors who have never been involved in the stock market before.

Of course, this isn’t something you are going to consider doing with smaller, low value stocks such as penny shares. These are already extremely inexpensive to buy, splitting them up into even cheaper fractional shares seems redundant and you won’t see much of a profit anyway. That’s why fractional shares are ideal for those stocks that are already trading at high prices. They make owning shares in some of the most successful and popular companies more affordable for anyone.

The Viability of Fractional Shares

This is a new concept, one that has only taken hold because of advances in the technology and framework necessary to execute these kinds of trades. Up until now, the idea was just that, a nebulous concept that didn’t have the sufficient support or structural apparatus upon which to complete these types of transactions. The main barrier was that it was all but impossible to do through the existing channels inherent to the traditional markets.

But with online trading becoming such a popular method of playing the market, that missing infrastructure is no longer an issue. Now these fractional shares, which are mostly available due to certain corporate actions related to splitting of stocks and the implementation of dividend reinvestment plans, are more widely available and it gives first time investors a new way of being introduced to the market.

In addition, there’s a very real demand for fractional shares because buying into the hottest publicly traded companies is so cost-prohibitive. They say you need money to make money, but at the current trading price of some of these major corporations, that adage has become painfully apt. It’s not just the companies that most of us have heard of before either, there are stocks out there that might not be as widely known yet they are trading in the thousands per share.

Seaboard Corporation is trading at around $4,019 per share, double the price it was back in 2013. By comparison, Amazon seems affordable at around $1,590 a share. Both of these are dwarfed by the price per share of Lindt & Sprüngli AG, yes the Swiss chocolate maker, at a cost of $72,037. A share.

Fractional shares of these companies makes them a little less daunting to the everyday investor who has a limited amount of money to play with when it comes to putting those resources to work for them. High entry costs have turned people away from investing but fractional shares provide the distinct advantage of lowering those barriers for common American households.

Another great advantage is that it allows those newbies to test the waters, so to speak, and create a portfolio on a much smaller scale. Give that investor the feel of how the market works without sacrificing large sums of money to do it. You might even think of fractional shares as a Beginner’s Kit to the Stock Market. They’re also ideal for those investors who are very weary of risk as they’re not risking as much of their resources to own shares in a company they believe in.

The idea is now catching on with more and more brokerage firms that conduct their trading electronically through online platforms.

But keep in mind that the shares you own will dictate the amount of money you make. If you own a third of a share of a big company like Google, you can expect to make a third of the profit on that one share. Depending on what you own, that could be a few pennies or a few bucks at a time. So you may not expect to get rich quick on fractional shares but they are an excellent stepping stone towards gaining a greater understanding of how to play the market.

Those who enjoy the process might then venture a little further out on the limb and purchase full shares of companies, both large and small, and work towards growing a diverse and lucrative portfolio of stocks and other investment instruments over the course of time.

When it comes to retirement funds, you need to pick the right investments if you want to maintain your usual standard of living. Here’s a comprehensive guide.

Data shows that a third of Americans have less than $5,000 saved for retirement. If your retirement funds tell a similar story, you’re probably interested in how you can make a change.

The problem, though, is that planning for retirement isn’t easy. One article tells you to put all your money into a Roth IRA. The other tells you to avoid using a 401K account.

This post aims to remove some of the confusion associated with retirement investing. With the help of the tips in this post, you’ll find that retirement planning isn’t as scary as it seems.

Let’s begin!

The Importance of Starting Early

If you can start saving early, you’ll find it a lot easier to increase the value of your retirement account. The problem, though, is that a lot of people feel like they don’t have the discipline needed to save moneyon a monthly basis.

If you’re one of these people, consider setting up an automated saving system.

If you speak to your bank, they may be able to set things up so that a certain amount of money is deposited into your savings account every month. With this kind of setup everything will be automated, thereby making it easier to save money.

Increasing Your Earning Power

If you can increase your earning power, it’ll be a lot easier to increase the value of your retirement account. If you want to improve your earning potential, you can either move up in your existing career or select a new job altogether.

The option you pick will depend on your particular situation, as some careers provide more progression than others.

Take a look at the people who are a few years ahead of you and find out what their salaries are. You can do this by looking at job listings for similar roles or with the help of websites like Glassdoor. If the sum isn’t that much higher than what you’re currently earning, it might be worth going into a different career.

The fastest way to boost your earnings is by selecting a career that’s in demand. In the current climate, you’ll find that jobs related to coding tend to pay very well. For instance, the average wage for a web developer is around $63,078, with higher earners easily making above six figures.

The good thing about learning something like coding is that you can go freelance. Thus, even when you consider yourself retired, you might be able to pick up a project here and there to help keep you busy and supplement your income. Plus, freelance coders can earn hundreds of dollars per day.

401K

One of the options you can use when saving for retirement is a 401K account. This account lets you save money before you pay tax on your income. Only when you take money out of the account will you need to pay any taxes on it.

The money you put into a 401K goes into an investment account, and this can help the value of the account grow over time. You can choose how you invest the money and whether you want the portfolio to be aggressive or conservative.

Another benefit of using a 401K is that some employers might match your contributions.

This means that if you put $1000, they’ll also put in $1000. If you’re ever offered something like this, it can be a great way to boost the size of your retirement account quickly. In fact, when looking for a job, you may want to seek out employers that explicitly state they’ll match your 401K contributions.

One of the downsides of using a 401K is that you’re going to face a limit concerning how much you can invest. At the moment the 2019 employee contribution limit is $19,000. Thus if you’re a high earner, you might find yourself limited with how much money you can put into your 401K on a yearly basis.

It’s also worth noting you’ll face a penalty if you withdraw the money before the age of 59.5. The idea behind this restriction is to prevent you from eating into your retirement fund. That said, some purchases provide you with access to your 401K, with one example being the purchase of a house.

IRA

You can also put your retirement money into an ‘individual retirement arrangement,’ also known as an IRA. This, in effect, is a savings account that’s designed to help people save for retirement. You don’t have to put ‘cash’ in your IRA, and you can fund it using a wide range of investment products.

The great thing about an IRA is that it helps you save money on tax. The money you put into an IRA is not going to contribute to your taxable income for a specific year. If you select the right kinds of investment products, then the money in your IRA will grow over time.

It’s worth noting, though, the amount you can deduct will depend on whether your employer offers a 401K plan. If they do, you might not be able to deduct the entire yearly IRA contribution from your taxable income.

Like the 401K, the IRA is going to face a contribution limit. Sometimes this figure can go up and sometimes it can go down. For example, in 2019, it’s expected that the IRA limit is going to rise to $6000, an improvement of $500, from the previous figure.

Roth IRA

As the name suggests, the Roth IRA is like the IRA account covered above.

With a Roth IRA, you pay taxes on the money you contribute to the account, but you don’t pay money when you withdraw the funds. This is powerful because if an investment grows in value, you have the chance to earn a lot of money, without having to pay much in taxes.

Like the 401K, this is intended to be an investment vehicle, so you will face penalties if you decide to withdraw the money before the age of 59.5.

Investing in Both a 401k and an IRA Account

If you have the funds to do so, it’s a good idea to invest in both a 401k and an IRA account. Especially when you consider the benefits of a matched 401k contribution and the potential for low tax earnings with a Roth IRA.

Of course, your ability to invest in both of these accounts will depend on how much earning power you have. But as mentioned earlier, you can increase your earning potential by learning some new, in-demand skills.

Diversifying Your Investments

If you’ve maxed out the accounts discussed above, you’ll likely want to do some investing on your own terms. But if you take this approach, it helps to practice some caution by diversifying your investments.

Many fall into the trap of putting a lot of money into one company. While this can be a good option in the short term, if there is a correction in the market it can lead to huge losses.

People also make the similar mistake of putting all their money into one kind of stock. An example of this may include investing only in companies that belong to the software industry. This is a problem because if one company experiences trouble, the rest of the companies in that industry can experience a drop in stock price too.

Think About the Fees You’ll Encounter

It’s also vital that you consider the fees you’re going to face when you put your money into investments.

If you’re using a brokerage firm to help you manage your investments, make sure you know how much they’re going to be charging you. If you’re not happy with the fees, don’t be afraid to work with another firm.

One of the ways you can judge the quality of a brokerage firm is by reading the content on their site. If they’re knowledgeable, they’ll share insights on their blog. If you’d like to see an example of a company that does this, you can read more here.

Additionally, make sure you know what your tax burdens are going to be when you turn your investments into cash. Not doing this can lead to you misjudging the value of your investments and thus ending up with less money than anticipated.

Do You Know How to Improve Your Retirement Funds?

Retirement planning is something that a lot of people put off. But if you don’t plan, you may never be able to retire comfortably.

This post has reviewed some of the things you can do to bolster your retirement funds.

One of the best things you can do is to start as early as you can. You should also think about how you can improve your income so that it’s easier to save more money in shorter periods of time. Even if you’re not a financial wizard, you should be able to see some results from investing in a 401K or an IRA account.

At some point, you may max out these accounts, and you may want to put your money in other investment vehicles. If you decide to do this, make sure you practice some caution, as not doing so, could lead to you losing your entire retirement account.

Want to learn more about forex trading? Check out this blog post for some tips.

It is impossible to become a millionaire overnight unless you end up winning a lottery. That’s a different scenario altogether. However, you can still build wealth by educating yourself and getting a proper understanding of how the financial system works. With strong dedication and hard work, you will be able to invest money wisely.

It isn’t only about saving money. In truth, there’s much more to it. In this article, we are going to share with you eight tips for investing money to build real wealth.

Here’s how you can do it:

1.       Automate Your Finances

The first tip you must start following is to automate your finances.  This includes sending money automatically to your investment accounts, savings accounts and other places that follows a plan you have made. By doing so, you will be able to build wealth gradually.

All you need to do is to link your account to your investment and savings accounts. Once you have completed that, then the paycheck will directly go into that particular account. You can also set up a specific day and amount to transfer.

Another advantage of automating your finances is so that you do not need to worry whether you have paid the bills or not.

2.       Avoid Small Daily Purchases

One mistake we often perform is making small purchases daily. For instance, some people grab coffee every day while some spend money on other things. Imagine spending $1.43 every day. It doesn’t sound like a lot, but over a week it amounts to $10, and for a month it’s nearly $43.

Instead, try to make coffee at home, take it to the work and save up this money for your investment account. We all use money on our expenses without realizing how much it can add up to over months and years.

3.       Track Your Spending

To build wealth, it’s necessary to track and record your expenses. You cannot generate wealth if more money is leaving your account than what is coming in.

There are a handful of apps available like Mint, Personal, and Level Money. Give one of them a try and see how they can help you!

Alternatively, if you are not interested in getting an app, then have a spreadsheet or merely jot down all the expenses in the notebook or your phone.

4.       Pay Off Debts

One thing that often becomes an obstacle to wealth-building is old debts, credit card debts, mortgages, or otherwise. It prevents you from save money, since instead you are forced to pay interest on your debt each and every month.

If you have some debts that are due, then the first thing you should do is to pay it all down as fast as you can. Next, remember to limit the credit card debt you ever allow yourself to take on. With the right use, credit cards can be beneficial, but if you overuse them, they will create problems for you.

5.       Stock Investments

Investing in the stock markets is an excellent way to build wealth over the long-term. As with all investments, the golden rule is to try to buy low and sell high.

Today, a lot of youngsters are into the stock market, and some have even made good money from it.  However, make sure you educate and learn to trade yourself before you jump into any kind of stock investments. Remember that it’s as easy to lose money as it is to make money!

6.       Set Money-Oriented Specific Goals

One reason people are unable to achieve what they want in life is because they are not specific about their goals. If you wish to build wealth, then you first need to make a plan for how you are going to make the money, and then figure out realistically how much that can bring in for you.

Start by writing down your income goals. Also, write down your current income and net worth so that you are able to figure out how to realistically achieve your goals.

7.       Invest in Cryptocurrencies

Cryptocurrency investments are among the hottest thing in the market right now, and it’s working out very well for some people. Although many still consider crypto to be an extremely risky investment, the asset is gaining acceptance and popularity among mainstream investors as well.

Educate yourself on the opportunity cryptocurrencies represent, and then decide how much you can afford to put aside for at least a few years. Remember that crypto is still risky, but over the long-term, this asset class is likely to rise dramatically in value.

8.       Warren Buffet’s Advice

There is no better investor in the world than Warren Buffet, and he also shares good information related to the world of investing. Here are some lessons from this legendary investor on how you can build your wealth step by step:

• Consider yourself as a rich person and think that you are capable of building wealth
• Invest your time in reading and building relationships that are going to last
• Have long-term goals and buy into the companies because you want to own it, not because you wish the stocks to go up
• Buy into valuable companies at low prices. Paying more money for something that is of less value is going to lose you money over time

It’s never too late to start investing and securing your future. Building wealth requires a lot of attention, discipline, and good strategies. So, go ahead and start investing for your own future now!

All of us want to quit the rat race at some point. Here’s how to make money without a job, and truly set yourself free.

By 2020, 50% of America’s workforce will work remotely. That’s a staggering number that speaks volumes about the digital ecology we live in today.

Already, hordes of digital nomads have found ways to nix their desk job in favor of full-time remote work. Where are you in your journey to leave the rat race forever and start working from home?

If your goal is to become the next digital nomad, you’re going to need to learn how to make money without a job first. Your Google searches yield spammy get-rich-quick schemes, though, don’t they? You need genuine ways to make money from home.

Read on to find them. You’ll be making money from home in no time.

How to Make Money Without a Job

Older generations scoff at the idea of making “easy money” online. What they don’t know is that there are tons of legitimate ways to make a living without a conventional job today. One thing’s for sure: the gig economy is alive and well.

Become an Uber Driver

Uber took the world by storm in 2009 when it introduced its peer-to-peer taxicab business. Never used Uber before? It’s simple: the app connects a willing driver with someone needing a ride.

To sign up, you need to have a decent car and pass a background check. Once you’re approved, Uber will send you a phone to use for GPS.

Some have a hard time making full-time wages driving for Uber, though. One Uber driver reports that they’d have to work 80-120 hours a week to make a full-time living. That’s why Uber is probably best suited for retirees looking to earn a few extra bucks, or anyone looking for a weekend gig.

Affiliate Marketing

You’ve probably heard of affiliate marketing before, but what the heck is it? It’s actually pretty simple. And if you want to learn how to make real money online, affiliate marketing is your first stop.

Here are the basics.

First, you’ll create a blog. You can choose any niche you want, but it’s best to stick to one. That way, you can build an authoritative internet presence on one topic, which will build trust with your readers.

Next, you’ll start posting review articles. 84% of consumers trust reviews they read online just as much as a friend’s opinion, so review blogs are incredibly lucrative. This is where sticking to one niche comes in–why should your readers trust your opinion if you’re not an authority on the product?

The best way to go about this is to highlight various features of each product you’re reviewing instead of championing one product over others. Why? Because if you write that one product is the best without a shadow of a doubt, your other affiliate links won’t get any love.

Each time a consumer purchases a product through your affiliate link, you’ll get a commission. There are tons of affiliate networks out there that you can join, too. Probably the easiest to join and most accessible is Amazon.

Amazon has a big affiliate program. Since they sell almost every product under the sun, you won’t have a hard time finding things to review on the site. Just remember these three keys to a successful affiliate marketing blog:

• Post frequently
• Focus on SEO to increase your site’s popularity
• Perform thorough reviews

Stick to those three tips, and you’ll be on your way to a passive income in no time!

Sell Stuff

One of the easiest ways to make quick cash: selling stuff you already own. We’re willing to bet that you’ve got a ton of stuff around the house you don’t need.

Embrace the minimalist movement. This movement is all about reducing clutter, which in turn actually can improve mental health. Sever your sentimental ties to your possessions and turn that clutter into cash!

There are tons of apps and programs that make this easy nowadays. One of the easiest to use is called LetGo. You simply create an account, snap a photo of the thing you want to sell, and post it to the app.

LetGo will then sort potential buyers and sellers according to your location. You’ll be able to log in and see what others are selling. Likewise, local buyers can log in, see your items, and purchase with the click of a button.

If you have a huge wardrobe and could stand to part with some of it, Poshmark might be perfect for you. It’s a website on which you can sell your used clothing. Brand name clothing can go for a pretty penny!

Finally, if you have an extra room in your house, consider putting it on Airbnb! People turn to Airbnb when they want a more personal touch than a hotel provides. If you consider yourself a great host or hostess, you might be perfect for the gig.

Hot tip: list your place when there’s an event going on in your town. You’ll likely make more money. Don’t forget to stock up on toiletries for your guests, too!

Invent Killer Software

If you’ve got a knack for software programming and have a great idea, it’s time to get to work. If your software takes off, you might just be the next Tom Gentile.

He created a software called Money Calendar. The software scans years of daily stock transactions to find the most profitable investments for the user. Users make a small investment for a guarantee of big returns.

That’s a no-brainer. Inventing software with big returns for the consumer is an easy way to create a hot-ticket item. After all, before you can have passive income, you need a product that sells!

Check out a Tom Gentile money calendar review here to learn more about how he did it, and why it works!

Earn and Save

9 to 5s can be draining–we don’t blame you for wanting to leave the rat race and make a living another way. Now that you’ve read up on how to make money without a job, you’re equipped to start your journey!

After you start earning the big bucks, you’ll need to get a savings plan in place. Check out our advice on saving money to build that savings account in a hurry!