Stocks | How To Know Which To Buy And When To Invest? [Investing Strategy 101]

How To Know Which Stocks To Buy And When To Invest - Investing Strategy 101

Disclosure: Fresh Life Advice may receive commissions for affiliate links included in this stocks article. However, we only include links to products that we believe in and utilize ourselves. These recommendations are not given out lightly.

The Main Rules of Fresh Life Advice Stock Investing Strategy

Of all the articles published in this blog’s archives, you can really boil down my incoherent ramblings into a few fundamentals that anyone can use to become a wealthy investor:

  1. Save more than you spend. Live below your means to be able to invest as much money as possible and as early as possible.
  2. Choose passively managed index funds or ETF’s (i.e. NYSEARCA: VTI or MUTF: VTSAX) with the lowest expense ratios (less than 0.15%) in lieu of picking individual stocks, mutual funds with high fees, or actively managed hedge funds.
  3. No short-term active trading. Yes, I’m even talking about the GameStop Stock Frenzy.
  4. Buy and hold for as long as possible, preferably forever. The longer you remain invested, the less “rigged” the market is.
  5. Pick a portfolio allocation and stick to it. Asset allocation trumps stock-picking and a constant search for alpha.

With all that being said, sometimes I will occasionally indulge my animalistic instincts and make speculative plays. In these cases, I am essentially betting on a certain equity (stock) to outperform the market.

But it’s important to realize individual stock investing should not be the majority of your portfolio. We are talking less than 20% of your net worth. Think of it as fun money. If you theoretically lost it all, you would not be devastated.

I know, even losing more than a penny, can be devastating to one’s fragile ego.

INVESTING IN INDIVIDUAL STOCKS

Investing in individual stocks and equities can be overwhelming. There are so many options to choose from. How do you know which will perform well?

The truth is… No one knows.

No one can confidently predict the future without knowing. That’s why investing in low cost index funds is such a trusted solution.

In general, the index funds track the overall market performance. Since indexes like the Standard & Poor’s 500 (S&P 500) are composed of 500 large public stocks, they can capture the stocks that do incredibly well. However, they also contain stocks that possibly underperform or file for bankruptcy.

The world usually references the S&P 500 or the Dow Jones Industrial Average as two major indexes that capture the stock market. They are two different indexes, but both are composed of some of the major companies that drive the market.

Time To Invest - S And P 500 Index History Chart
Source: Fed Prime Rate

Although there is no way to tell what the future holds, studying the general market structure and where we are in the current market cycle can help provide a framework for better decision making and future market expectations.

The chart below shows the historical performance of the S&P 500 Index throughout the U.S. Bull and Bear Markets from 1926 all the way up to 2019. It’s imperative to remember past performance is no guarantee of future results. Nevertheless, looking at the history of the market’s expansions and recessions does help to gain a ‘Fresh Life Advice’ perspective on the benefits of investing for the long haul.

Time To Invest - History of U.S. Bear and Bull Markets Since 1926
Source: First Trust Advisors L.P., Bloomberg. Returns from 1926 – 2019.

On the other hand, the Dow Jones Industrial Average (DJIA) is comprised of 30 large public companies. In the financial industry, the DJIA is used as a benchmark for the largest stock market in the world.Time To Invest - Dow Jones Industrial Average History

What can you observe from looking at the charts above?

Have a child look at this, and even they will be able to tell you the line goes up over time.

Investing, otherwise known as buying and holding, is not the same as gambling. If you invest in the market long enough, your investment will increase! Great news for investors!

Due to the former factors, the rate of return for index funds is much more stable than for individual stocks. In other words, the increases and decreases may not be as significant as other equities. This is also what’s known in the finance world as lower volatility.

Stocks are a risky investment vehicle – don’t get me wrong. But index funds are so diversified that it’s nearly impossible for you to lose your entire investment since the fund is unlikely to crash 100% when so many different companies are held in the fund portfolio.

However, as we’ve seen in the past (Covid-19 Correction of March 2020, Financial Crisis of 2008-2009, Dot-Com Bubble of 2000, etc.), investing in individual companies that do go bankrupt can lead to you lose all of your equity in that respective company.

Just remember:

“The markets can stay irrational longer than we can stay solvent…”

– John Maynard Keynes, Economist

Essentially, just because you made the right fundamental investment doesn’t mean the market will treat you fairly. It’s an “Eat-or-be-eaten” world. And the market can easily strip you of all your hard-earned money if you aren’t careful with your risk.

I’m a firm believer that you should never invest in anything that causes you to lose sleep. Dale Carnegie mentions in his famous best-selling book How to Stop Worrying and Start Living.

Without further ado, the two main approaches to use for investing in individual stocks are fundamental analysis and technical analysis.

FUNDAMENTAL ANALYSIS

Fundamental analysis measures stocks by looking at their intrinsic value. For this theory, companies are worth the net present value of their cash flows. Long-term investors study everything from the overall economy and industry conditions to the financial strength and management of individual companies. Earnings, expenses, assets, and liabilities all come under scrutiny by fundamental analysts.

Let’s run through 3 main aspects of fundamentals to check before investing in a stock.

1. Quarterly Earnings

Quarterly earnings are arguably the most important quality of a good stock.

If the company is consistently making money, you will be consistently making money too!

People always like to advise “Let your winners win”. I interpret this as the classic buy and never sell model that Warren Buffett’s mentor, Benjamin Graham, preaches in his book The Intelligent Investor. The underlying basis of this novel is fundamental analysis.

Companies that flaunt consistent earnings beat will see a steady increase in price. This is a major indication that the company is doing something right.

Here is an example of what Apple’s quarterly earnings looks like.

2. Company Leadership

Many investment gurus also claim that past performance does not indicate future results. There is no denying this, but instincts tell us this isn’t painting the whole picture.

Warren Buffett bought more than $1 billion of Coca-Cola (KO) shares in 1988, an amount equivalent to 6.2% of the company, making it the largest position in his portfolio at the time. It remains one of Berkshire Hathaway’s biggest holdings today. Coca-Cola’s iconic name and global reach created a moat around its core soft drink product, so Buffett did not have to worry a competitor would come and take away its market share.

There was a profound perspective Warren touted: no matter who was the CEO of Coca-Cola, the company would still thrive due to the economic powerhouse it had become.

For 99% of the other companies, leadership matters. If a company doesn’t have a strong C-Suite or Board of Directors, the company’s profits may suffer too.

3. PE Ratio

Price-to-Earnings (P/E) Ratio: A ratio used for valuing companies and to find out whether they are overvalued or undervalued.

When To Invest Price To Earnings Ratio Formula

A high Price-Earnings ratio indicates that investors are expecting higher growth of company’s earnings in the future compared to companies with a lower Price-Earnings ratio.

A low Price-Earnings ratio may indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends.

When a company has no earnings or is posting losses, in both cases P/E will be expressed as “N/A.” Though it is possible to calculate a negative P/E, this is not the common convention.

In general, if you see this P/E ratio higher than 30, the stock is likely overvalued unless there is significant future growth planned.

Jeremy J. Siegel’s The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New is a great resource for all kinds of investors interested in fundamental analysis.

Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. He discusses extensively on the economy and financial markets.

PE Ratio in Action

In his novel, Siegel argues that P/E ratio matters. He compares all kinds of stocks. For example, he asks you if you’d rather invest in Standard Oil of NJ or IBM from 1950 to 2003. What do you think?

Initial instinct tells you IBM because of the technological revolution. As a result, IBM did well because investors expected it to do well.

The basic principle of return states that the long-term return on a stock depends not on the actual growth of its earnings but on how those earnings compare to what investors expected.

The results? Standard Oil of NJ beat out IBM by a narrow margin of a 14.42% return vs a 13.83% return.

Although the difference seems small, when you look at equal initial investments of $1,000 in each company, the outcome is astounding!

After 53 years, the small investment in the oil giant yields $1,260,000 while IBM yields $961,000. That’s 24% less…

Investing Leaving Money on the Table

Who really would want to leave that $299,000 difference on the table? No one.

Siegel also strongly advises reinvesting dividends, just like I do in my monthly income reports. Reinvesting dividends is the critical factor giving the edge to most winning stocks in the long run.

Siegel has stated that IPOs typically disappoint. In fact, he analyzed 9,000 IPOs between 1968 and 2003 and concluded that they consistently underperformed a small-cap index in nearly 4 out 5 cases. That’s a whopping 80%! Others disagree, especially with some of the hottest tech IPO’s that debuted between 2003 and present day.

If you were curious, Siegel has found the best performing stock from 1925 to 2003. Not many would have guessed it, but Phillip Morris, now known as Altria Group (NYSE: MO), dominated.

  1. Phillip Morris (NYSE: MO)
  2. Abbott Labs (NYSE: ABT)
  3. Bristol Myers Squibb (NYSE: BMY)
  4. Tootsie Rolls (NYSE: TR)

I’m sure no one would have expected Tootsie Rolls to be on that list, but chocolate candies were popular during this time!

The top 20 average is 15.26%, versus 10.85% for the S&P 500.

Average PE ratio of these companies is 19.04 versus S&P 500 PE ratio of 17.35.

Note that the average dividend yield is 3.40%, so they return cash to shareholders.

Siegel says if you look at every stock traded from 1925, the best performing stock is Phillip Morris. If you look at the best performing stock since 1950, it is Philip Morris. What is best stock since 1957? You guessed it – Philip Morris.

If you put $1,000 in the S&P 500 in 1957, it would be $124,522 by the end of 2004.

If you had put that same $1,000 in Philip Morris, it would be worth $4.6 million.

Philip Morris has even paid $125 billion to litigants for cigarette liability… And they still have outperformed the rest of the market.

History shows that, on average, just two stocks from the global market-cap top 10 list remain on the list a decade later. The two survivors almost always include the number-one stock.

But the number-one stock has never been top dog a decade later, ultimately underperforming and moving lower in the list. The second surviving stock has 50/50 odds of beating the market. If this history repeats, 9 of the top 10 market-cap stocks will underperform the market over the next 10 years, and just one has a 50% chance of underperforming.

Fundamental Analysis Summary

  • Companies are worth the net present value of their cash flows
  • Buy and hold companies priced below their intrinsic value
  • Markets are 90% rational, 10% psychological
  • Long-term investors

TECHNICAL ANALYSIS

Technical analysis uses visual patterns on a chart created by price to determine where the market is moving. For technical analysis, traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock’s price and volume. Traders theorize there is no need to pay attention to the fundamentals since they are assumed to be factored into the price already. Technical analysts do not attempt to measure a security’s intrinsic value. Instead, they use stock charts to identify patterns and trends that suggest what a stock will do in the future.

1. RSI Indicator

Relative Strength Index (RSI): A momentum oscillator that is able to measure the velocity and magnitude of stock price changes.

The relative strength index (RSI) conveys a stock’s momentum, where RSI is calculated as the ratio of positive price changes to negative price changes.

RSI analysis compares the current RSI against different conditions.

  • An RSI value of 70 indicates the stock is Overbought. Recommended Action: Hold or Sell.
  • An RSI value of 50 indicates the stock is Neutral. Recommended Action: Hold.
  • An RSI value of 30 indicates the stock is Oversold. Recommended Action: Buy.

When determining whether to buy a stock, you should go through many steps. Some steps are implicit, but all are necessary in the process.

When checking the RSI of a stock, ensure the indicator somewhere between 25 and 45 before pulling the trigger on the ‘Buy’ button.

2. MACD Indicator

Moving Average Convergence-Divergence (MACD): Difference between short-term and long-term exponential moving averages, as plotted against a center line that represents where the two averages equal each other.

The best-known volume indicator is the moving average convergence-divergence (MACD) indicator.

  • A positive MACD value shows that the short-term average is above the long-term average and the market should move upward. Recommended Action: Hold or Sell.
  • A negative MACD value shows that the short-term average is below the long-term average and that the market is moving downward. Recommended Action: Buy.

When the MACD is plotted on a chart, and its line crosses the centerline, it shows when the moving averages that make it up cross over.

The MACD indicator is the most popular tool in technical analysis because it gives traders the ability to quickly and easily identify the short-term trend direction. This helps traders to ensure that they are trading in the direction of momentum.

3. ADX Indicator

Average Directional Index (ADX): Uses positive and negative directional indicators to determine how strong an uptrend or downtrend is on a scale of 0 to 100.

  • Values below 25 indicate a weak trend.
  • Values over 25 indicate a strong trend.

The ADX indicator can be used to dictate if a security is trending or not. This deduction helps traders choose between a trend-following system or a non-trend-following system. The ADX indicator is an average of expanding price range values.

The Aroon indicator is a very similar tool to analyze trends. The ADX is composed of a total of 3 lines, while the Aroon indicator is composed of 2.

The Aroon indicator plots the lengths of time since the highest and lowest trading prices were reached, using that data to ascertain the nature and strength of the trend or the onset of a new trend.

Technical Analysis Summary

  • Companies are worth what other investors perceive their as their worth
  • Buy and sell companies based on movement in stock prices
  • Markets are 10% rational, 90% psychological
  • Traders

If you want to learn more about technical analysis, a great place to start is Technical Analysis for Dummies. Don’t be too offended by the title. The book really does a great job of taking a complex subject and educating using terms that an average investor can easily digest.

ARE STOCK ANALYSIS METHODS OUTDATED?

We can look at popular stock like Amazon.com, Inc. (NASDAQ: AMZN) and wonder “Is fundamental analysis broken?

Time To Invest - Amazon PE Ratio 5 Year History
Source: YCharts

Here, we see the PE ratio of Amazon reached insane levels of near 500 in 2016. Yes, shareholders were paying more than 500 times the earnings…

Time To Invest Amazon Stock Price 5 Year History
Source: Google Finance

Yet, when we look at the stock price graph above, the stock continued to soar despite overvaluation.

Some of the most popular tech stocks are from the FAAMG acronym, which stands for:

  • Facebook (NASDAQ: FB)
  • Amazon (NASDAQ: AMZN)
  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Google (NASDAQ: GOOGL / NASDAQ: GOOG)

As of April 01, 2021, the market capitalization of these companies summed up to $848.14B + $1.58T + $2.06T + $1.82T + $1.44T = $7.75 trillion.

Each of the stocks in the FAAMG class is in the top 10, by market cap, of the S&P 500 index. Although the five stocks are only 1% of the 500 companies in the index, they make up 13% of the market value weighting in the S&P 500.

Since the S&P 500 has widely been accepted as representation of the US economy, a collective upward (or downward) movement in the stock performance of FAAMG will most likely lead to a similar movement in the index and the market.

Some experts are predicting another tech bubble and market crash like the one in 2000.

However, some analysts have noted that there is a major difference this time. Nowadays, there is plenty room for the current tech class to grow as areas of cloud computing, social media, e-commerce, artificial intelligence (AI), machine learning, and big data are still being explored and developed.

Only time will tell.

It feels like everyone is day trading or hitting the jackpot. Remind yourself to stay on your own investing course. Boring and slow often is the way to wealth.

USING FUNDAMENTAL AND TECHNICAL ANALYSIS TOGETHER

The Efficient Market Hypothesis argues that asset prices reflect all available information, so you cannot reliably use fundamental analysis (expert stock selection) or technical analysis (market timing) alone to outperform the overall market.

Top Stock Investing Strategies

Should you buy what’s been working? Pour money into your losers? Pick new stocks altogether?

Yes, buying individual stocks offers the potential for greater gains but it also opens you up to all sorts of psychological pitfalls that don’t necessarily apply when owning the entire stock market.

The problem for many investors these days is they only believe in their stocks when they’re rising. If you don’t believe in those same stocks when they’re falling, you have no business owning them over the long haul.

You don’t have to meticulously study the stock market day in and day out like some hedge funds or financial analysts, but if you keep an occasional watchful eye, you will be able to tell when the stock market is hot or cooling off.

Buy low, sell high. You’re well aware of this trite advice, but it’s easier said than done. When you’re experiencing 30% – 50% drops of your entire net worth within months, and even in the short span of days, are you really going to have the discipline to refrain from panic selling?

FREE STOCK ANALYSIS TOOLS

One of the best free tools used to track the state of the market is the Fear and Greed Index.

  • Use this to your advantage to buy when others are fearful.
  • Hold (or sell) and enjoy watching your gains skyrocket when most investors are greedy.

Other free tools I frequently use to compare stocks include the following:

This is, by all means, not the most comprehensive method of buying stocks. However, I can guarantee you’ll have an edge over the average Joe.

One of the biggest reasons why I believe my portfolio has outperformed the S&P is pure luck because I never sell. I’ve never sold a stock.

And I don’t plan to until I actually need the money. You ask – when will that be, FLA?

Once I’ve left my corporate 9-5 job, I will live off the dividends of my stocks to financially support my ideal retirement.

WIN OR LOSE

Don’t forget that for every stock buy, there is someone on the other side of the deal that is selling their shares. That’s mainly where you see the buy / ask price. The broker is looking for a seller that agrees to the asking price.

The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The spread is the difference between these two prices. The smaller the spread, the greater the liquidity is of the given security.

For every stock transaction, there will be a winner and loser. Which side will you be on?

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What is your investing strategy? When do you know it’s the right time to buy or sell a stock? Let me know in the comments below.

What Is Going On With GameStop Stock? | Explained

So what is going on with GameStop stock? What has happened to the stock ticker NYSE: GME? Let’s break it down into layman’s terms and explain this roller coaster ride of a company.

GameStop Corp. went from being nearly bankrupt to seeing its shares up by 2,000% in less than a week — but how did it happen, what’s Reddit have to do with it, and is it even legal?

First, let us define some financial terms.

What Does This Have To Do With Hedge Funds?

Hedge Fund: A group of investors with large amounts of capital – think in terms of billions. These funds hire analysts to track trends in the market to “hedge” against changes in the future.

Point72 Asset Management, Melvin Capital, Citron Research, D1 Capital Partners, Maplelane Capital, and Candlestick Capital Management are all hedge funds that have suffered immense losses, some in the range of billions of dollars, due to the events that have unfolded around GameStop Corp.

How Does Short Selling Work?

Short Selling: Basically, you borrow a stock on credit, and sell it to someone else. Then, you offer to buy it back when the price decreases. Ultimately, you gain the difference in price and it has been the traditional way to gain money off a market crash or decline.

I’d recommend watching the movie The Big Short as it effectively delves into how short selling was pragmatically utilized during the Financial crisis of 2007–2008. The movie also helps to visualize how the economic collapse in America transpired.

In addition, it may be helpful to watch Season 1 Episode 4 of the HBO show Billions because the episode conveys a prime fictitious example of a short squeeze.

Short Squeeze: When two of these hedge funds get into a financial argument, one fund often shorts because they think the stock will go down, and one buys because they think it will go up. The one buying attempts to buy faster than the stock was dipping to put pressure on the shorter to buy back stock to cover its losses.

Okay, thank you for making it this far, very boring, I know.

GameStop Stock (GME) Frenzy

So what happened is there’s a group of individuals on Reddit that like to gamble on stocks (it is speculative gambling, some may argue investing, but advisors can assure you otherwise) called WallStreetBets (WSB). These guys are as young as 17 years old, using new apps like Robinhood that make investing cheap and easy.

WSB were tracking a regime change at GameStop (yes, that video game store). For those of you unfamiliar, GameStop is an American video game, consumer electronics, and gaming merchandise retailer.

What Is Going On With GameStop Stock Wolf of Wall Street

GameStop Corp. got a new investor that wanted to change the business strategy there, citing management problems being the biggest issue for the failing company. The investor started working on developing an online presence for the company to buy/rent/sell games for better prices than they were currently offering. This amelioration took the price from about $4 per share in June/July of 2020 to upwards of $10 per share in August/September of the same year.

This was a problem though… “But stocks going up are good, right?” Right… Unless you were shorting the stock due to a guaranteed decline on the back of an outdated business model turning negative revenue.

That’s right, our old friends – those aforementioned hedge funds, had shorted GME upwards of 140% of the available GameStop stock. This was actually such a heavy short that it was contributing to the decline of the stock price up until the regime change.

Meanwhile, on the subreddit WSB, some of these guys figured it out, and began buying the stock, simultaneously  encouraging others to buy as well. The stock even got an unexpected bump from Tesla’s / SpaceX’s CEO Elon Musk’s tweet.

See, the hedge funds were so confident they could keep the price down, they did not anticipate a short squeeze, but a couple hundred thousand people on the Internet got together and began squeezing anyway. And squeezing, and squeezing until BOOM…

Suddenly, GME hits all-time highs $100, $150, $200, $300, and $400 per share. At its highest peak, the company was valued high enough to be in the Fortune 500. Yes, you read that correctly. GameStop in the Fortune 500! This is all occurring while GameStop’s physical stores are closing down from lack of business during a global pandemic.

What Is Going On With GameStop Stock Fortune 500

This hit the hedge funds so hard that they borrowed (legitimately) almost 3 billion dollars to short against a couple hundred thousand guys on the Internet.

Some of these WSB guys (and teenagers) have made between $100k and $25 million. They are paying off student loans, medical bills, paying their way through college, etc.

And the hedge funds? Some of them are reporting a 100% loss (in the billions of dollars, mind you).

Why Is This Significant? Should I Care?

Why is this significant if there’s no way this can last? Yes, GME will go back down probably to $20 and there’s no way to tell when. It’s a ticking time bomb of a stock.

But, some of these same hedge funds were bailed out between 2008 and 2010 by the federal government. Guess what. These funds were just taken to the cleaners by a bunch of college-aged common folk with nothing but a free app and a Discord server so they could pay for college and also get rich.

Don’t let anyone tell you that this was some sort of illegal scheme or the poor fund managers are losing too much money. These games are played on Wall Street all the time. That’s just the way the system is set up. This anomaly proved that anything can happen.

What Is Going On With GameStop Stock Market Fire

How Much Money Are We Talking?

Here’s the original guy on Reddit posting his 20 MILLION DOLLAR gain in ONE DAY. For a grand total of 48 MILLION DOLLARS LEFT IN THE MARKET.

What Is Going On With GameStop Stock 25 Million Dollar Gain

He bought 500 call contracts (100 shares per contract ) at $0.20 per share and bought 50,000 shares at about 15 dollars per share. For context, if the trend theoretically continued, GME would hit $2k per share in a few weeks, and he will have more money than the entire market cap of GameStop was worth in July 2020.

Where To Go From Here

In modern times, it feels like everyone is day trading or hitting the jackpot. Remind yourself to stay on your own investing course. Boring and slow often is the way to wealth. These market success stories that trickle into the mainstream media are there to grab your attention.

For every person that’s winning big, there’s also someone on the other side of that coin that may have lost their shirt. You rarely hear about those stories because they are not “newsworthy”.

Some people have higher risk tolerances than others. It’s ultimately up to you to determine whether you can stomach the volatility of some of these individual stocks. Is it worth the stress? Can you sleep soundly at night?

As for FLA, we are going to continue touting the index funds that have produced sound returns since the beginning of the stock market. The great news is that we don’t have to be the world’s greatest investor to benefit from this phenomenon. I mean, if FLA lucked his way into this, I think the rest of us will do just fine.

With some of the index funds, you can also rationalize that you do in fact own a small portion of GameStop via the index, along with every other stock in the U.S. market. At least, that’s how I help myself sleep at night.

With enough time and patience, nearly every investment you hold can turn into a money printing machine. And that’s when the compound interest starts to go crazy.

End Game for GameStop Stock

The GameStop C-Suite and board of directors are indeed shareholders of GME and are most likely in awe of their stock’s dramatic increase. We can be sure they have had intense meetings to decide on the next company maneuver.

As of the recent short squeeze, there are simply not enough shares of the GameStop stock to meet the demand in the market. That’s exactly why the stock has skyrocketed. But if GameStop can fill this gap, by raising capital, selling stock, and supplying shares to the market, then they will make a hefty profit.

However, given that the shareholder base is a bunch of teenagers from a subreddit, GameStop should know better not to take money from these people at $200+ per share, let alone the huge commissions that will probably go to Wall Street in a capital raise like this.

All in all, this business is unlikely to support such a high valuation. GameStop is not suddenly the new Facebook, Apple, Amazon, Netflix, or Google. It’s still mostly a business that derives its value from brick and mortar stores in malls. If you look around, you know that this is not exactly a big growth area in the coming years.

The WSB community has made a quick buck from the power of technology and online forums, but will it change the way Wall Street operates in the future? I doubt it. To be determined.

These amateur investors have also targeted other heavily shorted names including AMC Entertainment and Bed Bath & Beyond, leaving Wall Street analysts’ targets in the dust.

Robinhood has now restricted users from buying GameStop, AMC, BlackBerry, Nokia stock to stop the madness. I do not see how Robinhood remains unscathed after limiting its users like this.

Disclosure: I / We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. This site does not receive direct compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

What are your thoughts on the GameStop frenzy? Let me know in the comments below.

How Your DISC Personality Affects Your Spending Habits

How Your DISC Personality Affects Your Spending Habits

The DISC personality assessment shows us that there are four main quadrants or variants of personality, consisting of Dominance, Influence, Steadiness and Conscientiousness. Which category do you fall under? More importantly, how does your DISC personality affect your spending habits?

The four main DISC personality types stem between two dichotomies: Active or Passive, and Task-Oriented or People-Oriented. When combined in different ways, you get a person who responds drastically differently to a particular conversation, assignment, task, environment, or anything else.

A research white paper done by Bill J. Bonnstetter, Dave Bonnstetter and Ron Bonnstetter, PhD examines 10 different countries and their DISC profile makeup. The following chart conveys how the United States DISC profiles have changed over the last 20 years.

United States DISC Profiles Over Last 20 Years

Though it may seem shallow and superficial to categorize all human beings into only 4 categories, it really is remarkable how the combination of nature and nurture effectively influences your overall behavior.

It’s also important to remember that the DISC personality is not meant to judge, but it is intended to be utilized as a useful tool to help you deal and work with others that may or may not have the same personality as oneself.

Let’s take a look at each personality style and how it affects your spending habits.

Dominance (D)

The D-personality type characterizes people who are Direct, Decisive, and Determined.

They are both Active and Task-Oriented.

D-types ask the “what” questions, “What is the bottom line?” or ” What is in it for me?”

Those with the D (Captain) personality type, also known as Type A personality, tend to be assertive, intense, and ambitious. They are usually pragmatic, results-oriented executors who work quickly and make decisions with firmness and objectivity. With a position on the top left of the DISC, Captains prefer more independence and may be drained when others expect them to be more collaborative.

The D-type of person is most concerned with deadlines. These natural born leaders are afraid of running out of time. It’s very important for them to feel like they are in control to get things done.

Core Belief: I’m valuable if I can produce.

Here are some examples of famous celebrities with the Dominance (D) personality:

  • Barbara Walters
  • Beyoncé
  • Charlize Theron
  • Donald Trump
  • Franklin D. Roosevelt
  • Gordon Ramsay
  • Helen Mirren
  • Hillary Clinton
  • Jerry Seinfeld
  • Kamala Harris
  • Mark Cuban
  • Michael Jordan
  • Robert De Niro
  • Salma Hayek
  • Tiger Woods

Money Strengths: Dominant people love to take action. When you shop, you get things done efficiently. In-and-out. That’s also a great trait to have when others are fearful, let’s say, during a market correction. You’re not afraid to pull the trigger on buying an equity on-sale.

Money Improvement Plan of Action: You can be impulsive at times. Take a step back and take notes from observing your C-type counterparts. Do more research before blindly diving into investments you don’t fully understand. Take a breather and plan out a detailed budget. Once you lay the groundwork, you are ready to continue your “Go-Go-Go” attitude!

Influence (I)

The I-personality type characterizes people who are Interactive, Imaginative, and Involved.

They are both Active and People-Oriented.

I-types ask the “who” questions, “Who is at the meeting?” or ” Who else uses this?”

People with the I (Motivator) personality type tend to be enthusiastic, cheerful, and outgoing. They typically have an easy, relaxed, casual manner when speaking or interacting with others.

The biggest fear of each group can indicate a lot about that person. For example, the I-style’s biggest fear is rejection. It’s sort of an irrational fear because in many ways, the social butterfly I’s are the life of the party that bring a positive mood to the group or party.

Core Belief: I’m valuable if I can attract people.

Here are some examples of famous celebrities with the Influence (I) personality:

  • Bill Clinton
  • Britney Spears
  • Dick Van Dyke
  • Ellen DeGeneres
  • Elton John
  • Gene Wilder
  • Jack Black
  • Jeff Bridges
  • Jim Carey
  • John F. Kennedy
  • Justin Bieber
  • Taylor Swift
  • Robin Williams
  • Will Smith
  • Whoopi Goldberg

Money Strengths: Shopping is often a social activity for you. The positive spin here is that you know you’ll be making purchases you feel good about because you’ll have the affirmations of your friends, family, or significant other.

Money Improvement Plan of Action: Although, the 30% off deal on shoes may make you feel warm and fuzzy internally, you tend to go overboard and discover as many deals as you possibly can. Keep shopping a social event but bring a friend to hold you accountable to a limited number of purchases. Then, you will have leftover money to spend on other social activities that bring you joy, like a family-style dinner or even going out for a night on the town.

Steadiness (S)

The S-personality type characterizes people who are Sympathetic, Stable, and Sweet.

They are both Passive and People-Oriented.

S-types ask the “how” questions – “How are we going to do this?” or “How does this impact us?”

People with the S (Supporter) personality type tend to be calm, patient and respectful in their interactions with others. Rarely angered or excited, they are likely to work to maintain a peaceful and harmonious environment.

S-styles greatest fears are conflict and instability. In fact, S-styles worry about inconveniencing others or being a burden. Stability is important to S-style so it’s imperative to give them what they want. Contrary to how the S-personality thinks, conflict can be productive and healthy when working through prevalent issues.

Core Belief: I’m valuable if I can help others.

Here are some examples of famous celebrities with the Steadiness (S) personality:

  • David Beckham
  • Halle Berry
  • Jimmy Carter
  • Julia Roberts
  • Lana Del Ray
  • Mahatma Gandhi
  • Michael J. Fox
  • Mother Teresa
  • Mr. Rogers
  • Nancy Reagan
  • Nelson Mandela
  • Nicole Kidman
  • Tom Hanks
  • Stevie Wonder
  • Susan Lucci

Money Strengths: You live and die by the motto “If it ain’t broke, don’t fix it”. This is a great money-saving mindset when it comes to everyday consumer goods. Many highly regarded brands also reward these types of loyal customers with discounts and other types of dependable deals. The S-types are also aware that wealth building takes consistency – you invest periodically in the income producing assets, even when things get hectic and markets may be uncertain.

Money Improvement Plan of Action: Change can be hard for you. Although you like to stick to your guns, it can be advantageous to take the road less traveled sometimes. Look outside your comfort zones for other creative ways to invest and reduce your liabilities. And don’t be afraid to buy a new tube of toothpaste; no one should be putting in that much effort to squeeze out the last drop.

Conscientiousness (C)

The C-personality type characterizes people who are Calculating, Competent, and Cautious.

They are both Passive and Task-Oriented.

C-types ask the “why” questions – “Why does it work this way?” or ” Why is this step needed?”

Conscientiousness is the personality trait of being careful, or diligent. Conscientiousness implies a desire to do a task well, and to take obligations to others seriously. Conscientious people tend to be efficient and organized as opposed to easy-going and disorderly.

People with the C-personality type tend to be objective, skeptical, and logical in their behavior. They are usually fiercely pragmatic and frequently solve problems with an analytical, fact-driven approach. They are likely to be more reserved in groups and may take a long time before they build enough trust to open up.

A C-style person’s greatest fears are ambiguity and criticism. C’s are the biggest critics of their own work as they are often perfectionists. He or she always needs more time to perfect his or her craft. Make sure not to rush these C-types, as this is often their biggest pet peeve. Sometimes, it is necessary to constrain their time otherwise they may be working endless until the end of time. Prevent any distractions that may impede their ability to accomplish the desired task.

Core Belief: I’m valuable if I am competent.

Here are some examples of famous celebrities with the Conscientiousness (C) personality:

  • Al Gore
  • Alan Greenspan
  • Albert Einstein
  • Bill Gates
  • Diane Sawyer
  • Isaac Newton
  • J.K. Rowling
  • Jodie Foster
  • Kevin Costner
  • Mark Zuckerberg
  • Michelle Rodriguez
  • Richard Nixon
  • Tim Burton
  • Tom Brokaw
  • Warren Buffett

Money Strengths: You are thorough and careful, which helps to avoid falling for any get-rich-quick schemes. If there’s a stock you’re interested in, you’ve kept a watchful eye on the equity for countless days and have conducted all the research you possibly can conduct to minimize risk. You meticulously weigh the pros and cons before making any purchases.

Money Improvement Plan of Action: Your hesitance and precaution may be a downfall that leads to analysis paralysis. You may have missed a few once-in-a-lifetime shopping deals or stocks at an all-time low price because you were not 100% certain at the moment. While these regrets may haunt you, fret not as you can still adapt to be more decisive in the future. You always think you need more time to analyze the good and the bad. The truth is that there never is a truly “right time”. Don’t get caught up in the details; Carpe diem and chase your fiscal goals without delay!

 

How Do Personalities Differ at Work Infographic DISC Personality Spending Habits

From the above infographic, C-Suite employees have predominantly the same style personalities regardless of their country of origin. CEO’s and CFO’s in many different companies had D as their dominant personality style. Findings in the U.S. yielded similar results.

Albeit, D’s may be more geared to climb the corporate ladder, but every personality style has the capacity for excellent leadership. Moreover, every personality style lends itself to a different, but equally beneficial, leadership style.

COVID Effect on DISC Personality

The COVID-19 global pandemic is affecting every person differently. It can help to realize how you are handling the consequences.

For instance, an analytical C-style person may want to dive into the precise numbers and daily updated stats of the virus.

On the other hand, the I-style person may feel neglected and miserable from lack of social interaction with friends and loved ones.

Maybe the D-style person is demanding too much from his or her spouse and has too high of expectations of his or her kids to complete all of their schoolwork in a timely manner.

Finally, the S-style individual may have taken on a workload they can’t possibly handle, but will suffer in silence because they want to please everyone around them. 

Everyone has unique reactions to problems and issues they encounter day in and day out. It’s important to realize how we can help each other cope with the pandemic ramifications.

DISC Personality Interaction

As you would expect, the opposite personalities clash the most (i.e. D’s clash with S’s while I’s clash with C’s.)

Unsurprisingly, adjacent personalities get along more (D’s with I’s and C’s, I’s with S’s and D’s, S’s with I’s and C’s, C’s with S’s and D’s).

No matter how unique our parents or teachers tell us we are, each one of us can be categorized into four categories. At times, we may wander from one quadrant to the other depending on the situation or location (i.e. at work vs. at home), but our fundamental personalities are predominately anchored to one of the DISC letters.

Having the DISC personality information at your disposal allows you to effectively interact with different types of people as well as you possibly can. Once you can understand personalities, you can begin to depersonalize behaviors and realize a person is acting predictably based on the situation he or she is presented with.

As a result, one may decrease frustration, miscommunication, and error in judgement. This allows you to have more empathy and to improve relationships with friends, family, colleagues, and even strangers.

Where Does Your DISC Personality Fit In?

If you want to find out what DISC personality you have, feel free to take a free 5 minute DISC test right here (No email address or personal data required).

The test only consists of 28 groups of four statements.

For each group of four descriptions, you should have one most like you and only one least like you. Very simple and fun!

Which DISC Personality style are you? Let me know in the comments below.

Top 10 Best Money Blogs To Improve Your Personal Finance Knowledge

Top 10 Favorite Money Bloggers To Improve Your Personal Finance Knowledge

As the holiday season is finally here, Fresh Life Advice is giving you all presents. I present to you my favorite top 10 best money blogs to improve your personal finance knowledge.

Collectively, these best money blogs incorporate topics on investing, retirement, estate planning, budgeting, saving, estate planning, mortgages, and many more money related subjects. Their articles are packed with information that keep you stimulated throughout your own personal finance journey.

“If I have seen further, it is by standing on the shoulders of giants.”

-Isaac Newton, Mathematician

What was Newton referring to?

He had the brilliant idea of using knowledge bestowed upon him by great thinkers of previous generations and utilizing their fundamental principles to propel his own understanding to a higher level.

We can apply this same philosophy to personal finance. As you read about me, you know that I’m always looking to learn and advance. Consistent success and growth stem from constant self-improvement.

As you follow FLA through my expedition to early retirement, I will make plenty of mistakes. Inevitable mistakes.

Expectations vs Reality Top 10 Favorite Money Bloggers

The wise ones with plenty of experience are aware that the path to success is not a straight line. It’s a zig-zag, circular, loop-de-loop type of path that will lead to failure after failure after failure. But the successful ones do not succumb to such intimidating obstacles in their way. They continually battle and never give up. This has been one of the most important lessons I have ever learned.

As I’m always learning and reading, I would like to share with you some of my favorite finance and money blogs that I religiously read. Some of these people have already achieved financial freedom. They represent role models that show you early retirement has been done before or will be completed. Myth debunked.

Fresh Life Advice, on the other hand, is trying to give you a perspective of the beginning of the journey. I want you to learn from my mistakes so you don’t make the same ones.

 

Top 10 Best Money Blogs

Hopefully, I will be able to collaborate and work with these bloggers in some type of way in the future. The old adage claims that two heads are better than one. Without further ado, below are some of the best money blogs:

1. My Money Wizard – Sean

My Money Wizard commenced in 2015, and I’ve been an avid reader ever since. Sean works as a financial analyst so he does have a background in economics. Whether it’s touting index funds or analyzing the optimal order in which to invest your money, I see many parallels between FLA and The Money Wiz. Sean’s been tracking his net worth every month and is on track to retire by age 35. My Money Wizard is one of the most humble and down-to-Earth blogs you will see in the Personal Finance blogosphere.

2. Budgets Are Sexy – J. Money / Joel

J. Money was one of the first in the game to publicly track his net worth in 2008. With such transparency, this best money blog allows you to track your own net worth alongside J$ to see if you are on pace for your own goals. J. Money made downloadable Excel spreadsheets that will aid with budgeting and net worth tracking. In 2019, J. Money sold the attention-grabbing blog Budgets Are Sexy to The Motley Fool.

Joel has now taken over the blog in 2020 and is one of the most dedicated bloggers I’ve read. Joel wakes up every single day, weekday and weekends, at 5 AM to seize the day. Although this lifestyle may not be for everyone, including his own wife, Joel’s productivity in Los Angeles is through the roof.

3. Millennial Money – Grant Sabatier

Grant’s incredible claim to fame was going from being broke with a balance of $2.26 in his bank account to saving over $1 million in less than 5 years. Grant was earning $50,000 a year in his day job and saving about 20 percent, but he knew it wouldn’t be enough. So he launched a side hustle building websites for law firms, and invested the vast majority of what he made in index funds. Now, Millennial Money has appeared on every major news outlet, and Grant has even gotten to hang out with Rachel Ray to promote his book Financial Freedom.

4. Financial Samurai – Sam Dogen

In 2009, Sam began writing Financial Samurai. Sam did not graduate from any Ivy League school, but he still managed to outwork his competition and got a job for Goldman Sachs out of college. In 1999, he made a $3,000 investment in VCSY and was blessed with a 5,000% return from the Dotcom Bubble. Part of it was luck, but he had done his research, and the big risk paid off immensely. From there, Sam never looked back. He worked his way up the corporate ladder and became a Vice President of his company by age 27. After saving more than 70% of his after-tax income, he was able to retire at age 34 in San Francisco with a net worth of over 2 million dollars. Sam now writes via Financial Samurai for an audience of over 1 million readers every single month. As an expert in negotiating and wealth management, Sam always generates profound posts that make you truly think.

5. Mr. Tako Escapes – Mr. Tako

Mr. Tako is one of the wealthiest bloggers that discusses money. Despite what you would assume, his wife and him did not work on Wall Street, receive a large inheritance, sell stocks before the financial crisis of 2008, or flip real estate. No, in fact, Mr. and Mrs. Tako have just been disciplined investors that have weathered the uneasy storm of harsh financial markets and have worked hard to retire at the age of 38. They now enjoy cooking delicious meals and homeschooling their 2 sons in their home in the Pacific Northwest of the U.S. Mr. Tako often provides insightful commentary and predictions about individual equities. His whole reason for writing Mr. Tako Escapes is to document financial independence and provide a resourceful guide for both of his sons to use when they grow older.

6. Early Retirement Extreme – Jacob Lund Fisker

Jacob is not only the creator of Early Retirement Extreme but also seems to be the founder of the FIRE movement altogether. Mr. Fisker is one of the most frugal people you will read about with expenses so low that he will make you question your own annual purchases. After living a thrifty life as a PhD astrophysicist and biking to all of his destinations, he was able to free himself of Corporate America by the astounding age 33. In his book Early Retirement Extreme, he explains how his smart financial choices and simple living brought him financial freedom at such an early age.

7. Get Rich Slowly – J.D. Roth

Another one of the best money blogs is Get Rich Slowly, authored by J.D. Roth. He is a self-proclaimed “professional nerd, accidental personal-finance expert, dog lover, and whiskey drinker.” With so many personal finance sites on the web, J.D. stood out by documenting his struggles to get out of debt in 2006. The idea behind Get Rich Slowly was to convey that there are no shortcuts to achieving wealth. Everyone wants a get-rich-quick scheme, but J.D. exalted the idea of delayed gratification.

8. Mr. Money Mustache – Pete Adeney

When people think of the FIRE movement and best money blogs, usually Mr. Money Mustache is the first person that comes to mind. Many note Pete’s blog as the first website that got them hooked into the pursuit of Early Retirement. MMM developed an iconic yet simple chart that showed if you started saving more money, you’d be able to cut down your working years by a significant amount of years. This, in turn, saved many people the headache of continually slaving away in the office. Pete was a software engineer who reached total financial independence at the ripe age of 30. After he promptly quit his job, he started a side construction business as a hobby. The man with the wacky blog name now enjoys his freedom fully with his wife and son.

9. Go Curry Cracker! – Jeremy and Winnie

Jeremy and Winnie were able to hit financial independence in their 30’s. Go Curry Cracker and his wife pride themselves on traveling and exploring the world. The Go Curry Cracker site has many travel hacks, tax tips, and great insight to get you the best bang for your buck. By saving and resisting the splurge on unnecessary purchases, this couple now enjoys more annual vacations than they could ever imagine. With a playful yet analytical tone, Go Curry Cracker shows you how you can make the world your adventure too.

10. The Simple Path to Wealth – J.L. Collins

J.L. Collins is a FI blogger that is most noted for The Stock Series. Starting out selling flyswatters door-to-door, he is now an accomplished consultant, speaker, and author of one of the best money blogs. J.L. is also an avid index fund investor and world traveler. Based off of his blog, he’s written a book The Simple Path to Wealth, which chronicles his rags to riches life. J.L. Collins discusses controversial dollar cost averaging (DCA) and other interesting investment strategies on the honest best money blog.

 

Moreover, the Internet is a vast endless space so this list is ever-growing as I read and find more interesting sites along my journey. I’m always looking for new recommendations because an important part of life is the continual pursuit of education and self-growth. With that being said, I cannot limit the list to only 10 websites, so I must also present the honorable mentions for the best money blogs.

 

Best Money Blogs – Honorable Mentions

11. Tic Toc Life – Chris and Jenni

The story of Chris and Jenni stems all the way back to middle school, when they first met. After going to high school and college together, they eventually got married with similar financial goals. Chris and Jenni reached FI at age 33 to retire early at 35. Their goal became a reality. Chris and Jenni offer principals they learned along the way that readers could adapt to their own lives. They even started a Reader’s Fund, which generously donates monthly to non-profits of the blog readers’ choice! This Donor-Advised Fund is something FLA hopes to start too and something other best money blogs should mimic for the greater good.

12. Impersonal Finances – IF

Impersonal Finances is written by a man in his 30’s living in the San Francisco Bay Area. Despite what you may have predicted, he does not work in the tech industry. His blog chronicles how it’s possible to live in one of the most expensive areas in the U.S. but still retire early through consistent investment and constant saving. IF has one of the best senses of humor around that makes personal finance enjoyable to read.

13. Happily Disengaged – Noel

Noel is 2nd generation Chicano union carpenter with a lot of soul. He is not only a veteran of the Iraq War but also has backpacked around the world…twice. Is there anything this blogger can’t do? His travel has given him and his wife a taste of retirement. The site Happily Disengaged talks about consumerism, the corporate rat race, and anything to do with commuting on a freeway. With the eventual dream of living in Spain full time, Noel writes this blog to make both of his daughters proud.

14. Physician on Fire – Lief

If you have a career as a physician, then the Physician on Fire site is for you. Even if you are not a physician, you can learn so much from Lief’s approach towards money and his financial independence journey. He is an anesthesiologist by day, but he makes sure family comes first. PoF is definitely not afraid to speak his mind, and that’s exactly what you want in lieu of the slimy financial advisors that beat around the bush to make a quick buck off of your ignorance. All in all, Lief covers topics from income earning to credit cards and much more. You can look forward to his weekly series The Sunday Best, where he features other refreshing reads from around the personal finance blogosphere.

15. The Savvy Couple – Kelan and Brittany

Founded in 2016, Kelan and Brittany have a mission as The Savvy Couple to help families learn how to budget their money, organize their life, and unlock the freedom to do more of the things they love! This pursuit is simple yet very admirable. Once children are introduced into the mix, expenses and budgeting are thrown to the side, but Kelan and Brittany are there to keep you in line using tools such as the Eisenhower Matrix, automating systems, and outsourcing menial tasks.

16. Financial Fred – Fred

Financial Fred is written by who else, but Fred himself! As a millennial in these fast-paced times, Fred advocates that everyone should become more financially responsible. He loves to read and write about finance, economics, and how emotions affect our decisions. Currently working on his CPA designation, he’s had several management and executive roles within the field of finance. Thus, you can trust that Fred knows what he’s talking about.

17. Reverse The Crush – Graham

In 2016, Graham took a year off from working as a stock broker in Toronto, Canada. He mused and took time to prioritize his financial goals in life. From then on, Reverse The Crush was born. If you’re looking to build income streams through blogging and dividend investing to reach financial independence, then Reverse The Crush is the place to start.

18. Our Intentional Farm – Sean and Simone

No, Sean and Simone do not currently own a farm. But the name Our Intentional Farm is “about planting seeds of intention to reap a well-balanced and joyful life.” With the hopes to inspire and encourage others in similar financial situations, Sean and Simone show you how to keep track and rid yourself of debt. These are compelling articles that are not hypothetical situations. Instead, they represent real-life struggles to learn how to manage finances. The style is relaxed, while the content is rich.

19. The Working At Home Man – Matt

The Working At Home Man name is pretty self-explanatory. Matt has been working from home ever since 2017 only to discover that working from home has many more benefits to working in the office. If you’re looking to live a similar lifestyle, then Matt has plenty of resources to help you on your path to financial independence. The Working At Home Man also publishes monthly updates along with his portfolio progress.

20. Common Cents Lifestyle – Ashley

Common Cents Lifestyle came to life after Ashley found her passion in helping others with personal finance. She currently holds an MBA and has spent her expansive career in the world of finance. Ashley has a great understanding of retirement accounts, insurance, and general business. She even has a successful track record of growing several small businesses to medium-sized business. In her free time, Ashley loves to travel and ski. Not a bad way to spend your free time.

21. Max Out of Pocket – Max

Max Out of Pocket is not just a fun pun. In truth, Max created this blog with a wealth of knowledge from both the healthcare industry and the personal finance space. Armed with answers to every medical question you may have, Max shares information from his experience of working more than a decade in the American healthcare system. Knowing how the corporate world can be rewarding, toxic, and addictive, Max is here to help make your mental and physical life easier.

22. Divs4Jesus – D4J

D4J has one of the most creative names on the list. Some live and die by stock dividends. Dividends have yet to fail D4J. D4J writes the Divs4Jesus blog, including some pretty good stuff about investing. I’ve learned a thing or two from reading this blog, which means it definitely merits inclusion into the best money blogs honorable mentions. He shows how a diversified portfolio of 33 stocks and bonds can provide considerable passive income. For those of you who didn’t know, Jesus’ age at the time of his death was also 33.

23. GenY Money – GYM

GenY Money a fun site that’s chock-full of great material to help you manage your finances. As you probably have guessed from the site name, GYM is a member of Generation Y. She’s here to prove that Gen Y is not entitled, spoiled, and lazy after all. Gen Y can be very good with money, and GYM has all the tips for you to learn. In her 30’s and living in one of the most expensive cities in Vancouver, British Columbia,  Canada, GYM shares net worth updates along the way to the target $1 million goal by age 40.

24. FIRE Your Own Way – Jordan

Jordan is the creator of FIRE Your Own Way. Discovering FIRE is life-altering for many, and the story was no different for Jordan. She was able to save over $200,000 by age of 30 and is now well on her way to retire by 40. As a fellow proponent of experimentation and optimization, Jordan continues exploring for different ways to Financial Independence. Whether you want to retire early or retire eventually, Jordan is there to shed light on the process.

24. Financially free in 10 years – Mr. Robot

Mr. Robot is not actually a robot. Artificial Intelligence running personal finance blogs may become the norm, but humans are still generally the faces behind these sites. Financially free in 10 years is exactly what it sounds like. A Dutch man in his mid-30’s using the pseudonym Mr. Robot works in IT by day and runs this blog at night. Mr. Robot aims to retire at age 55 to enjoy the most of his freedom with his wife Mrs. Robot and child Lil’ Bot in The Netherlands. Like FLA, Mr. Robot also enjoys sports and movies in his free time. Without fail, Mr. Robot is the go-to guy for an obscure movie reference or sound personal finance advice.

25. The Sensible Merchant – Kevin

When I read Kevin’s story, what struck me was the mentality he adopted to take control of his money. That is, he decided to look at his personal life as a business. He looked for ways to lower expenses, increase revenue, and pay down debt. It’s inspiring to read, and he continues to write insightful posts.

 

Fresh Life Advice will keep a running list of the best money blogs that will be continually changing, as this list is not intended to be comprehensive.

Fortunately, I have come to known some of these sites’ creators on a personal basis. I can assure you these people truly do want to spread financial knowledge to as many readers as possible. Readers that are earnestly searching for personal finance knowledge. All of these best money bloggers have a passion for helping others navigate the often confusing world of personal and business finances.

The aforementioned blogs should make for plenty of reading material to keep you busy during the holiday season!  I really hope you learn something interesting from reading all of those amazing money, investing, and personal finance blogs!

If you have any websites or niches that come to mind, please include them in the comment section below. I cannot promise to add them, but I can guarantee I will check them out and read as much as I can.

Happy Holidays and Happy New Year to you and your family!

Which blogs do you frequently read?

Ideal Day of Retirement

Ideal Day of Retirement

What does your ideal day of retirement look like? What’s the perfect day of leisure that you envision?

Early retirement, and retirement in general for that matter, is the dream we fantasize about every so often. Some even obsess over it. Guilty as charged…

The underlying idea is that we may be trying to escape from reality. Maybe it’s that soul-crushing 9-5 job or that abusive relationship or even that condescending boss. Whatever the case may be, you’ve most likely thought about retirement.

It’s human nature to stress over the future. We ultimately want to be happy, each and every single one of us.

But we generally overlook the present. If you were to retire right now, what would it look like? Yes, walk through the scenario with me:

  • You’ve just handed in your resignation letter to your boss [yes, in this hypothetical you’ve already given your 2 weeks’ notice].
  • Your coworkers celebrated with cake [yes, they enjoyed the cake more than the speeches about you].
  • You’ve said your final goodbyes [yes, you’ll only keep in touch with the people who truly matter to you].

Really take a second to imagine. What would your ideal day of retirement look like? Most have the cliché fantasy of lavish vacations to the Bahamas or extravagant parties on yachts. If you can actually afford those without putting yourself into debt, then you certainly do not need to be reading this blog.

Retirement Vacation

A perfect day doesn’t actually cost millions to achieve or require much to make it happen. Contrary to popular belief and how most of the lottery-hungry population makes it out to be, you don’t need to spend money to be happy.

How would you spend your first day of early retirement? You’ve worked so hard in preparation for your financial freedom.

What’s My Ideal Day of Retirement?

Before we start, I’d like to disclose that I’m a night owl. 80% of the population find themselves as intermediate with minor preference for mornings or evenings while the remaining 20% of the population are either true morning people or true night owls. Night owls habitually get a bad rap for being lazy for sleeping in. To my fellow night owls, this is disparaging criticism does not hold much merit because night owls are awake just as long as morning people. The only difference is our body clocks are shifted a couple of hours behind. This stems from genetics, age, and environment.

Now that we’ve got that out of the way…

10:00 AM – Wake up after a full night’s sleep.

10:00 AM to 10:20 AM – Mediate and repeat some positive affirmations. Journal and jot down some goals for the day (i.e. write a new blog post). And of course, make my bed. This small accomplishment always propels the momentum for the day into full swing.

10:20 AM to 11:00 AM – I’m a firm believer that breakfast is the most important meal of the day. I routinely rotate between French toast, eggs, and oatmeal with fruit.

11:00 AM to 12:00 PM – Cross off a couple of goals by crafting new FLA blog posts. My mind will be energized from a hearty breakfast so this should be relatively fulfilling.

12:00 PM to 1:00 PM – Work out. I enjoy weightlifting 4-5 times per week, even with a full time job. Without a full time job, I’ll be able to sleep and recover more to build stronger muscles. On this blog, we talk about money a lot… At the end of the day, money doesn’t mean anything if you aren’t healthy enough to live long and enjoy your luxurious life. Make your health a priority.

1:00 PM to 1:30 PM – As you’ve noticed, I eat quickly just by force of habit. I would take this time to eat an enjoyable lunch. Besides the quintessential bodybuilding chicken, broccoli, and brown rice meal, I frequently like to switch out the proteins and carbs for alternatives like salmon, tuna, steak, and sweet potato, butternut squash, chickpeas and black beans, respectively.

1:30 PM to 2:00 PM – I’ve really never been a big proponent of napping throughout my life. But I’ve come to learn the human body was meant to have a midafternoon nap, according to a new consensus among sleep researchers who are studying the biological rhythms of sleep and alertness. This stems from evolution, where our ancestors would take turns sleeping to always allow someone to be awake to keep the tribe safe from predators. Theoretically, I will be sleeping much more during early retirement, but I’ll just have to experiment to see if naps improve my quality of life.

Task Batching Productivity

2:00 PM to 3:30 PM – While the sun’s still out, I’ll go for a walk. Walking is an extremely underrated activity. Recent studies show that walking as little as two hours per week can help you live longer and reduce the risk of disease. You’ll clear your head, enjoy nature, and also burn calories without even breaking a sweat.

4:00 PM to 6:00 PM – Free time! I will most likely snack on some kind of fruit like an apple, banana, or kiwi while challenging my mind to a puzzle, game of chess, or even Sudoku. Whether it’s learning a new language, volunteering at a soup kitchen, or playing an instrument, I’d like to reserve this time slot for self-improvement.

6:00 PM to 7:00 PM – I enjoy cooking and would love to try out recipes I’ve read about in various cook books. A cook follows a recipe, while a chef creates a meal on the fly. I’d work on transitioning from a cook to a chef. This hour would be solely dedicated to dinner.

8:00 PM to 10:00 PM – As readers of FLA know, I’m a movie buff. I’ve seen over 100 movies in 2020 alone with newfound quarantine time. My favorite genre of movies is thrillers, but I’m always open to seeing obscure titles most people would never think of viewing. This would be classified as time to unwind.

10:00 PM to 11:00 PM – Some of the smartest people on the planet attribute to their success to the books they’ve read. This last hour of the day would be dedicated to reading anything off my book shelf. Matthew Walker’s Why We Sleep ironically helps put me to sleep.

 

Will every day look like this? No, of course not. But it’s a day I am proud of and would be happy to live many times.

When I reveal my plan for early retirement, the number one response I hear from friends, family, and strangers  is:

“Wow, I could never retire early. I would be so bored.”

Well, take a look at my ideal day. I don’t see any boredom. In fact, I see days filled with opportunity and freedom.

When I think of boredom, I think of number-filled spreadsheets, monotonous status update meetings, and microwaved lunches. This is synonymous with the 9-5 corporate life.

Hey, maybe the daily grind is for you. No judgement whatsoever. But I know for a fact that it’s not for me.

 

Cost of Ideal Day of Retirement

Did you notice how little I spent in my hypothetical perfect day of early retirement?

The small things in life consistently make us the happiest. Those mansions, yachts, and fancy cars will inevitably leave you empty on the inside. We wonder why celebrities develop drug addictions and have messy divorces. That’s another story, but the ones we idolize don’t have it figured out. I’m here to remind you to try different things in your own life to make you happy.

I started a list of all the things I would do with unlimited time and some money. I’m always baffled by people who say they are bored. Even with unlimited freedom, I still feel like I wouldn’t have enough time to do everything I want.

Here are some ideas to fill your early retirement days:

  • Teach your kids everything – math, science, finance, programming, hardware, woodworking, cooking, hunting, writing, art, music, etc.
  • Build businesses partner, friends, or even with your kids [I know what you’re thinking – No, I do not condone child labor.]
  • Vacation with your partner – luxurious ones that he or she deserves
  • Act in a play
  • Camp in the outdoors
  • Canoe trips
  • Hunt
  • Start a band – try out a new instrument whether it be guitar, piano, or clarinet
  • Volunteer to help disadvantaged youth
  • Get into woodworking
  • Build and ride old motorcycles
  • Try Brazilian jiu-jitsu – it’s never too late to procure a black belt
  • Work out every day
  • Enter a bodybuilding or powerlifting competition
  • Complete a triathlon
  • Take surfing lessons
  • Become a part time Little League Coach
  • Help any family that is struggling with your time, give them a leg up, but also stick around to guide them

Whatever happens after you achieve financial freedom is ultimately up to you.

Relax

It’s a tough question to ask yourself but absolutely necessary:

What will you do during your ideal day of early retirement?

What Should You Do With Credit Card Debt When You Are Laid Off?

Credit Card Debt Unemployed

Welcome to the 1st FLA Guest Blog Post! Today we explore what you should do with credit card debt when you are laid off. Thank you to Bethaine from Debt Consolidation US for sharing these helpful answers to a frequently asked question.

She freely shares her magical money secrets to climb out of debt – which really aren’t too magical or secretive – that helped her build her net worth tremendously.

 

What Should You Do with Credit Card Debt When You Are Laid Off?

The first and most important matter is you need a good survival plan immediately when you are laid off and need to cope with the credit card debt.

In the case of the ‘Layoff’ scenario, the importance of a good survival plan is very necessary. Usually, the layoff order does not give you enough time to control your finances.

For the present condition, your goal must be to chalk out a survival plan for you and your family until you get a new job again. Along with it, you must check yourself from falling into a huge debt hole and take care of your credit score as well.

In this article, the intention is to brainstorm a plan for you so that you can survive your layoff as well as cope with your credit card debt.

1. You Can Pay Off Just the Minimum Amount Now

Usually, it is a bad idea to pay off the minimum amount on your credit card debt. Nonetheless, this idea will work for you when you no longer have a job.

Thus, the better option for you will be to pay off the minimum amount rather than paying almost nothing.

If you pay nothing, then the credit card companies may charge penalties, fees, and fines against you and it will most likely negatively affect your credit score.

It will be better for you to pay off at least the minimum amount for now. Further down the line when you can generate steady income again, you can then pay off more than the minimum amount.

By this strategy, you can salvage your credit score, get protection from late fees and fines, and won’t get any pesky calls from debt collection agencies.

2. You Can Negotiate an Agreement with Your Credit Card Firm

People often forget: everything is negotiable. After all, exchange of money is just a barter system.

You may contact your credit card firm and state your case to their representative regarding your present financial condition.

Nowadays, overseeing the current COVID-19 situation, many credit card companies are offering special assistance programs for those who are laid off due to Coronavirus.

With the special assistance program, you can come into an agreement with your credit card firm so that you can skip the monthly payment for a few months, waive your credit card interest and you may get other benefits also.

You have to get in touch with the credit card firm to get the special assistance that is only available in the pandemic time period.

3. You Should Try to Create a Family Budget and Continue Your Daily Expenses According to It

Creating a strict family budget and continuing your daily expenses according to the budget, can be a useful way to cope with credit card debt.

A strict family budget will decide for you what you need in your life now and where you can stop spending. This may, in turn, prove that some of your superfluous spending is surprisingly a luxury for you.

A budget may help you with some extra saved dollars that you can use to pay at least the minimum amount every month of your credit card debt.

4. You Can Consider the Credit Card Debt Consolidation Option to Tackle the Debt Burden

You can easily opt for the credit card debt consolidation to consolidate or merge all your credit card debts and make it into a single payment.

The balance transfer card can be another option for you that you can choose. You can transfer all your credit card dues to the balance transfer card.

With a balance transfer card, you may get a 0% interest promotional offer for 6 months to 18 months. You have to pay off your credit card dues with the benefit of a 0% interest rate and that is within 12 to 18 months.

Therefore, you can repay a major portion of your outstanding balance without paying any interest rate.

Thus, you can apply either the credit card debt consolidation method or the balance transfer card method to repay your credit card debt when you’re going through the inauspicious layoff situation.

5. The Wise Decision Will be to Shun Using Credit Cards for a While and Use the Cash Payment Option

In normal times, people use credit cards more than cash payment because, with credit card buying, you may get several rewards and points that are not possible with normal cash payment options.

But this restriction-free-buying mode has a negative side too. With the lure of rewards and offers, we sometimes spend more balance than our given necessity.

The ultimate result is you have to bear the debt burden on your shoulders.

So, when you are out of a job and your earning avenues are limited, return to the traditional cash-payment method.

It will keep you within a spending limit and you’ll be saved from any type of additional credit card debt burden.

These are the 5 ways that you can choose to take action when you are unemployed, concerned about your retirement, and the stress of how to repay your credit card debt is gulping you.

 

What Can Be Your Last Resort If You Are Completely Unable to Pay Off Your Credit Card Bill?

According to financial experts, when you are unemployed and don’t have enough savings even for paying off the minimum credit card amount, you can opt for the bankruptcy option.

You may get some immediate relief by choosing the bankruptcy option, but experts always recommend using the bankruptcy option as your last resort.

You may file bankruptcy under Chapter 7 and Chapter 13 under the bankruptcy act, but beware of the negative effect because bankruptcy may damage your credit for the long-term.

 

Final words:

The best option is at least you should try to pay off the minimum amount on your credit card debt. At this fundamental point, you can avoid any late fee charges, penalties, etc. You should not try to avail of the bankruptcy option as your first option. Later when your financial situation will improve again, the best course of action is to try and pay off your credit card debt in the standard way.

 

Why Guest Post With Us?

Guest posting allows you to gain access to our readers and serves as a way to promote your content. We do not charge for guest posting like many other blogs. We believe in the power of unique, valuable content and will not charge to promote it!

5 Scary Halloween Spending Facts That May Spook You

Happy Halloween

The unprecedented pandemic has certainly stunted our day-to-day activities and even our dearest holidays like Halloween. Health officials have forecasted a new surge in COVID-19 cases in the fall, as temperatures drop and the flu season approaches — all while celebrations, including Halloween, are due to kick off later this month. Below are 5 scary Halloween spending facts that may spook you.

Year after year, Halloween continues to be a highly anticipated holiday in America. But this year, we may have to proceed with caution with respect to trick-or-treating.

On the bright side, Halloween is usually an outdoor holiday as opposed to most other holidays celebrated inside of a relative’s home.

States across the country have either limited or restricted regulations for standard door-to-door trick-or-treating. That being said, residents have tried their best to lift spirits and continue longstanding house decorating traditions.

This blog has consistently been focused on how to save for early retirement, but often we forget to focus on the present. Of course it is imperative to save for your future, but every present day should not be taken for granted. Thus, give yourself permission to enjoy the holiday.

The National Retail Federation (NRF), in a partnership with Prosper Insights, surveyed 7,013 consumers about their Halloween shopping plans. The following 5 scary Halloween spending facts from previous years give me goosebumps!

Interpreting Spooky Halloween Spending

If you’re ever curious why you rarely receive a Halloween greeting card, it’s because most Americans are spending their October budget on costumes, candy, and decorations.

Spending in the past 3 years has hovered around the $9 Billion [yes, B, as in BILLION] mark. Due to the circumstances, I’d expect spending to be reduced this year.

Take advantage of this situation and your bank account will thank your unintentional frugality.

If there’s one lesson from the infographic, it’s that consumers spend money on things they are passionate about! Who doesn’t love Halloween?

And if Americans are spending $9 billion on Halloween, just imagine how many purchases are made in November and December during the holiday season peak.

Either way, this is no excuse to stop you from completely forgetting about Halloween. Dress up if it’s your favorite tradition. But make sure to enjoy yourself while staying safe.

Watching scary movies with jump scares [that you’re probably expecting] may also be an efficient way to practically quarantine yet still enjoy the spirit of Halloween.

If you’re looking to get ahead on shopping too, the Amazon Halloween Store has a variety of options for costumes, candy, and fun to celebrate the spooky holiday.

Just remember to not overdo it on the candy! This will save your waistline and your dentist unnecessary hassle! Cavities are never fun, no matter what age you may be.

Scary Halloween Spending Facts

May each of you reading this be lucky enough to eat a large candy bar this October 31st.

Let me know your favorite costume or trick-or-treat tactic below in the comments.

5 Foolproof Steps for Early Retirement

Have A Plan

Many of us would like to build enough capital to prepare for the future and enjoy an early retirement.  However, this can feel impossible at times. What are the 5 foolproof steps for early retirement? How do we develop a solid plan?

Fortunately, there are some easy steps you can start taking today to help you achieve the F.I.R.E. (Financial Independence Early Retirement) you’ve always dreamed of.

There are no secret tricks and tips. It mainly stems from discipline and consistency. You don’t need to be a Wall Street investment banker or a PhD scientist to outsmart the market. Here are 5 simple steps that will put you on the right path.

1. Increase Annual Savings

Everyone has heard the trite advice of forgoing the precious cup of morning coffee at your favorite hip coffeehouse to save money. This simply isn’t going to get you to retirement though.

You need to build habits of saving. Let me let you in on a little secret; successful people do not have greater will power and determination than your average Joe. The high achievers just remove temptation and practice consistent habits.

Save as much as you possibly can now, and I promise you will not be disappointed by the results in 10 to 30 years from today.

2. Decrease Annual Expenses

It may seem like common sense, but so many of us struggle to grasp this basic concept. Expenses add up very easily and very quickly. It’s important you perform monthly audits of your credit card statements to see how your spending has changed month to month.

It is okay to splurge every once in a while, but be sure to not make it a habit. It’s the same idea of eating healthy. You can stop by the fast food drive-through once in a blue moon, but if you continually practice this bad habit, you will gain weight without a doubt.

Furthermore, avoid consumer and other forms debt like it’s the plague. Even if you are indeed in debt, it’s still easier than you think to rid yourself of debt with the power of positive habits. Again, it may be daunting to turn your net worth from negative to positive, but if millions have done it before, so can you.

3. Make Steady, Consistent Investments

Now, there are some factors here that you have little control over.

Investment Growth Rate: How much your investments compound annually.

Investment growth rate is sometimes at the mercy of the stock or housing market, depending on the year. But overall, you can expect a rate of approximately ~6-7% (with inflation accounted for). Your income from your job may not increase much year over year, unless you pester your boss for a raise or a bonus.

Your neighbor, your co-worker, and even your family may argue with you about which stock will provide the best returns, but one thing is for sure:

Time in the market is way more important than timing the market.

Investment and financial analysts will always recommend buying low and selling high, but the truth is, humans simply aren’t robots. We will never be able to flawlessly invest, but we can get the best bang for our buck by letting our investments grow for as long as possible. Let your money do the heavy lifting for you.

Raven Monkey Money Manager Foolproof
Source: Guinness World Records

Even our cute friend, Raven, can predict stocks better than some money managers that possibly bring home a larger annual salary than both you and I.

4. Diversify Income Streams

The wealthy often have multiple streams of income. Whether this is from stocks, real estate, I.O.U.’s, or even intellectual property, the rich know how to maximize cash flow going into their bank accounts.

The book Rich Dad Poor Dad by Robert Kiyosaki is a great fundamental novel that goes into detail regarding assets (things that make you money) and liabilities (things that lose you money).

Early Retirement Assets Liabilities
Source: Rich Dad Poor Dad Book by Robert Kiyosaki

Although we will not get involved in judging Kiyosaki’s character and other ventures, the financial community can agree the book is a vital tool to launch your net worth in the right direction.

Feel free to check out Fresh Life Advice’s Monthly Side Income Reports to see the current ways F.L.A. creatively supplementing a corporate paycheck. Again, there is no one-size-fits-all formula to follow, but hopefully this can supply you with myriad ideas to implement in your own life.

5. Use Money to Save Time

Ask yourself, “Self, what is truly the point of early retirement?” To most of us, the purpose of early retirement is to use our time for the things we truly care about. There is no doubt about it; we all have limited time on this Earth. That is the limiting factor that puts the rich and the poor on the same level playing field. What is the difference between the rich and the poor?

Well, the rich are using their hard earned money (or lucky inheritance) to buy back time for the things that truly matter in life: family, friends, hobbies, etc.

The poor, along with a great deal of the middle class, misleadingly think that spending their money on impractical status symbols, such as fancy watches, luxurious cars, and excessive wardrobes will make other people admire them more, and thus increase their happiness. This is, of course, a fallacy as we know that most people only really care about themselves and are often too busy with their own problems to be concerned with what car you drive.

For example, the modern wealthy folks now spend money on nannies, gardeners, maids, and other services that allow them to focus less on daily household chores and more on the mysteries and life experiences that awaits them.

 

Why Should You Have a Plan?

“Everybody has a plan until they get punched in the mouth.”

-Mike Tyson, Former Heavyweight Boxing Champion

Knocked Out
Ouch…

To the contrary, Fresh Life Advice has a formidable rebuttal to this famous opposing quote. F.L.A. would like to emphasize the importance of planning – specifically the right kind of planning. Everybody does have a plan until they get punched in the mouth — the key is planning for what you are going to do AFTER that happens.

One of the biggest reasons why I created a blog was to organize my thoughts coherently and offer advice to the general public. Again, I don’t claim to know more than you. I just hope you learn at least one new thing from me. Moving to different states and taking several different jobs, I’ve run into eclectic groups of people. Oddly enough, I observed that there was a constant underlying accepted corporate dogma.

People in the public and private sector both seemed to accept the standard way of life was to work until you’re 65 and then retire. This antiquated way of thought was hardwired into their brains either via their parents, boss, coworkers, etc. At times, I often felt like I was alone until I reached out to the finance blogging community. FIRE is becoming a modern mantra.

The first law in the United States that called for an eight-hour work day was passed in Illinois in 1867. In 1926, as many history lovers know, Henry Ford — possibly influenced by US labor unions — instituted an eight-hour work day for his employees.

Now, we can see this divergent fork in the road caused by the Covid-19 global pandemic. The world’s workforce is now being split up into employees who can work from home and essential employees who must physically be present in the office, warehouse, hospital, etc.

Many predict that in the future, the office will function as a 3rd space (similar to your favorite coffeehouse): a hub, a town square, a neighborhood. Workers will decide when, how and where to work. People will flow in and out. Employees will be connected by social networks, cloud computing.

Which side of the spectrum will you end up as technology and artificial intelligence develop at an aggressively rapid pace?

If there’s anything that life and Darwin have taught me, the answer is simple: you must not only survive but also adapt.

So what does this all have to do with money?

Well, my point is that the world is a scary and unpredictable place. Most people enjoy their 9-5 jobs because it gives them the comfort and security they long for to help them sleep at night. I’m here to tell you it’s possible for a normal human, just like you and me, to leave the workforce way before age 65. In fact, I’m on pace to retire by age 38. Even if I miss that mark by a full 10 years, I’m still on pace to retire a full 27 years earlier than the average American! That’s an incredible amount of time of freedom.

 

Is This ‘5 Foolproof Steps Early Retirement’ Plan Actually Foolproof?

Of course not. No plan ever is. But I can assure you it’s pragmatically close to flawless.

Life almost never goes according to plan. And that’s totally okay. We will adjust and adapt.

Many fear an economic downturn or recession. Well, I’m here to shed some light on this fear.

Economic recessions [bear markets] generally do not last as long as expansions [bull markets] do. Since 1900, the average recession has lasted 15 months while the average expansion has lasted 48 months. The Great Recession of 2008 and 2009, which lasted for 18 months, was the longest period of economic decline since World War II. If this happens, buy stocks or bonds at the cheaper price and retire a year later. There is nothing to fret!

The most important thing is to have a plan though. Be intentional with your thoughts and actions. It’s time to stop being reactive and start being proactive. Where’s a great place to start?

Well, think about your own retirement age. What age are you aiming for?

If you can control these 3 factors, you will be in GREAT shape:

Income: How much money you are making

Expenses: How much money you are spending

Savings: How much money you are saving

When people mention Savings Rate, they are simply referring to your Savings divided by Income. Don’t let terms like these confuse you.

Sounds obvious, right? It’s not rocket science, but Wall Street often makes it sound like it. There are only two ways to do increase your savings rate: earn more or spend less. That’s the basic rule of personal finance. Still, Americans significantly struggle with these aspects. F.L.A. will show you specific action plans to increase your savings rate.

 

Caveat:

Be ready for backlash when revealing your early retirement plan to friends, family, and loved ones. Even the people closest to you and the ones that you trust the most may project some negative feelings onto you. It’s completely normal.

“Don’t ever let someone tell you, you can’t do something. Not even me. You got a dream, you got to protect it. People can’t do something themselves, they want to tell you you can’t do it. You want something, go get it. Period.”

― Pursuit of Happyness

 

Will Early Retirement Guarantee Happiness?

Humans are terrible at predicting future happiness. In fact, there was actually a scientific study conducted by three established psychology university professors to prove this “end of history illusion.” No matter what age, humans underestimate how much they will change. Two different studies were conducted:

  1. A group of 18-year-olds was asked to predict what their lives will be like in 10 years. The 28-year-olds group reported significantly more changes than expected.
  2. This exact experiment was then conducted with 58-year-olds and the same result occurred when the subjects turned 68.

Conclusion:

Even with plenty of life experience, you have no idea what will happen to you in 10 years!

As a result, it is imperative that you have a plan in place to at least guide you in the direction you would like to follow. But more importantly, remember to practice gratitude and count your blessings every single day, because you never know what your future holds.

How To Start A Blog In 8 Easy Steps

How To Start A Blog

So you’ve discovered why you want to start a blog. But what about now? How does one start a blog?

The good news is that you are on the right path. The first step in the process is making the decision to move forward with your intent.

Some of the top bloggers have turned their passions into full time blogs that support their hopes and dreams. Why can’t that be you? What’s stopping you? Lack of information?

Well, this guide will break everything down into simple, easy steps to help you start your blogging career.

Disclosure: Please note that some of the links below are affiliate links and at no additional cost to you, FLA will earn a commission. When you purchase hosting using the Bluehost or SiteGround affiliate links, they compensate Fresh Life Advice, which helps make this comprehensive guide free of charge to you. Know that I only recommend products and services I’ve personally used and stand behind.

Let us start with the basics:

What Is A Blog?

Some of us may not know what a blog even is. Well, guess what? You’re reading a blog right now! The word blog is actually short for the term weblog.

A blog is known to represent digitized information, an online magazine, a diary, a portfolio of art, a teaching platform, and really anything that you can imagine.

The most popular modern blogs use not only text, but also a combination of images, GIFs, videos, journals, and other references. This conglomeration is ideal to convey the message, information, or propaganda the author is attempting to present.

Blogs are often interactive, where readers can comment on posts in real-time. This is facet alone is a massive advantage over outdated televised news outlets and physical newspapers and magazines.

Now, we are aware of what elements make blogs so popular and successful. But how do we build our own? Here are 8 easy steps for you to follow and start a blog:

1. Choose Your Niche

Before you come up with a website name, it’s smart to target a specific niche you would like pursue. The Internet is a vast place. Choosing a niche will allow the people who are searching for your content find you with relative ease. If you have a general blog with no direction, your work will most likely end up in the graveyard of unfinished blogs after you’ve seen the lack of traffic to your site.

I recommend focusing on 1-2 niches on your blog, but no more. If you write about too many topics, then your SEO potential will be limited.

The search engine Google typically likes to establish themes around your blog. From that point of establishment, then you will be able to rank for a myriad of subcategories around that theme (i.e. personal finance).

If you want your blog to be about all areas of your life, that’s awesome; however, to be blunt, your posts likely won’t rank as highly as a blog focused on 1-2 topics.

The following list includes some of the top profitable niche categories, some that even encompass billion dollar industry opportunities:

  1. Fitness / Diet / Weight Loss
  2. Sports
  3. Dating / Relationships
  4. Pets
  5. Self-Improvement
  6. Wealth / Investing / Personal Finance
  7. Make Money Online / Passive Income
  8. Beauty / Anti-Aging / Makeup
  9. Gadgets / Technology
  10. Gaming
  11. Prepping (i.e. Meal Prepping to Doomsday Prepping)

If you are looking into selling your own niche products whether via e-commerce or whatever it may be, then here are some inventive ideas to sell online:

  1. Handcrafted Beaded Necklaces.
  2. Home-made Frozen Yogurt.
  3. Leather iPad Cases.
  4. Bluetooth Wireless Speakers.
  5. Baby Clothes.
  6. Mason Jar Pour Caps.
  7. Fidget Spinners.
  8. Organic Beard Oil.
  9. Bow Ties.
  10. Wood Apparel.

Reviewing the previous list, you’ll notice a pattern that these odd items grouped together are profitable because there is little competition. Therefore, if you enter the market, you will have a greater chance of succeeding. Never forget to do your thorough market research before diving into your chosen niche.

Action Item:  Jot down a list on a piece of paper, on the computer, or on your phone of your 5 passions, 5 problems and 5 fears. Once you have a list of 15 items, pick your 5 favorite ones. From this point, enter these 5 key terms into a keyword research tool and look for related keywords that branch from your selected original term that you can utilize to build a site fully function website.

2. Choose a Blog / Domain Name

Ultimately, the name of your blog is everything. It’s your brand. People have such short attention spans these days that you need to IMMEDIATELY hook them in with your name.

Many choose to use their domain name as their full name (i.e. www.FirstNameLastName.com), especially if they are the only person running the blog.

However, if you would like to remain anonymous, use a company name or brand instead. In that case, the possibilities are endless.

Try to keep your domain name to fewer than 4 words or 20 characters. Anything too long may make it difficult for your audience to remember. Think about the most iconic companies, such as Apple, Nike, etc. They are short, concise, and easy to recall.

Keeping a short, punchy name will lead to higher direct traffic as users will be able to directly type your business name into their browser HTML bars.

More importantly, experts highly recommend securing the .com domain since it has the largest global ranking potential. Even if the price is higher, you will see a higher return on your purchase.

Action Item:  Jot down a list on paper or on your phone of your 10 different possible domain names. Be sure to use an online thesaurus to aid with the process. This is still preliminary since you’ll need to check with the next step for finalization.

3. Check the Name Availability

You may have gone through the mentally taxing brainstorming process. However, all of that work may be for not if someone else has thought of the idea before you.

Action Item:  Use the free tool below to see if someone else has already come up with your concept.

If you want to start your own blog, feel free to start with hosting your very own site!

4. Buy and Reserve the Domain

After you’ve ensured that no one has stolen your ingenious name, it’s time to put the petal to the metal. Go ahead and purchase that domain name to ensure you are the sole owner of the website domain.

SiteGround Domain Purchase
How to Start Blog Domain

Bluehost Domain Purchase
Start Building

Action Item:  Lock that dream business name in stone by purchasing an available domain.

5. Choose Your Hosting

One of the first mistakes I made was proceeding with a free blog. I did not want to spend money as it was common sense that saving money rather than spending money would result in a profit. However, it took experience to learn that it wasn’t so much foolishly spending money as it was rather investing in the business. Some of the most profitable blogs on the Internet spend millions of dollar in advertisements and other marketing techniques. But for new bloggers, the best advice I can give you is to not skimp on hosting. You want your site to be fully functional without the servers crashing.

Using Bluehost or SiteGround will help you get an edge up on your competition as they offer:

  • Customer Service Support – to answer any of your questions. Trust me, making a blog is not easy. You will have questions and they will not rest until they solve it.
  • Fast and Responsive Loading Times –if your site goes down, you may lose valuable traffic opportunities. A fully functional site will also decrease your bounce rate, ensuring readers stay on your site for long periods of time.
  • Unlimited Advertising Opportunities – you are free to monetize your site with this hosting option. This is how you will make your money in the long run. Don’t skimp out on hosting.

Bluehost Hosting Plans
Bluehost Pricing

SiteGround Hosting Plans
SiteGround Hosting Plans

 

Action Item:  To be clear, buying domains and buying hosting are totally separate and different transactions. However, Bluehost and SiteGround  are the hosting companies that make it really easy for you by combining both steps into one. Go ahead get your site running smoothly with hosting!

6. Design your Website Theme

Moreover, before you jump into writing your blog posts, you should take time to lay out your ideal website theme. You may not be a trained web graphic designer with front end software engineering experience, but I can promise you WordPress has made this a cinch.

Bluehost WordPress Theme

WordPress is the most popular platform for content management. It is an application programming interface that allows you to stay organized.

Notable WordPress Users

As you can imagine, WordPress is used by some of the top Fortune 500 companies, most popular news stations, music record labels, and celebrity influencers. In fact, WordPress is used by

WordPress.com is actually free while you have to pay for WordPress.org. Make sure you are aware of the differences between signing up.

WordPress .com vs .org

WordPress Bluehost Recommendation
Wordpress.org Recommends Bluehost

Action Item:  Familiar yourself with WordPress, themes, plugins, tools, and settings. Once you watch a few tutorials, you should be ready to select the theme that most appeals to the look and feel of your website design.

7. Write A Blog Post

This is one of the least technical aspects of the process. College English majors and professional writers dream of this step. Put the pen to paper or fingers to the keyboard. In order for a website to thrive, you simply need content. There is no circumnavigating this step. Writers block is often the toughest obstacle in this case.

“Writer’s block is a phony, made up, BS excuse for not doing your work.”

-Jerry Seinfeld

According to a Backlinko study, the average word count of a Google Top 10 Result is 1,447 words. Does this mean you need to write a 1,447 exact word count post every day? No, of course not.

You can still succeed with plenty of posts under 1,000 words, but it is generally suggested to write at least one post per month of at least 1,500 words. This will convey experience, authority, and quality when user traffic searches for their inquiries.

The best thing you can do is begin to write. No one writes a perfect draft because it’s called a draft for a reason. Continue to proofread and edit until you are finally satisfied to press the ‘Post’ button for the first time.

Action Item:  Remember, there are never perfect conditions to start. Just begin, take action, and the momentum will run in your favor. Write that first blog post!

8. Promote Your Blog

You may have written the best blog post ever, but there is a possibility no one will read it.

Build an audience before you launch. Once you’ve got that audience, promoting your blog via social media becomes significantly easier to manage.

The biggest hurdle in social media, at least in my experience, is the initial push. Taking your blog from a no-show to a small success is difficult, but scaling that small success into a much larger traffic source isn’t as difficult as many social media marketers make it out to be.

The age old belief that building an audience after you launch your product is, simply put, entirely wrong.

From Bloomberg writers to one of the world’s most well-known marketers, the majority of successful business people will tell you that building your product after identifying its ideal market is the way to go. For bloggers, despite lacking a product per se, the rule still stands fairly true.

Building an audience before launching your blog allows you to quickly and easily make changes to it based on their reaction. It’s the same line of thinking that’s behind successful product advertising campaigns and focus groups – gaining data as quickly as possible. Treat your blog as an experiment in its early days and you’ll quickly discover what works, what doesn’t, and what’s worth doing right.

 

Not all of the following launch techniques are appropriate for every blog, and not all of them have the potential to build you a sizable audience before your launch. However, they all can help you build a promotional asset before your blog launches, which can come in very handy for initial promotion and word of mouth marketing.

‘Coming soon’ opt-in pages

Do you already have a following on Twitter, Facebook, Instagram, or another leading social media site? Use it to create pre-launch opt-in subscribers to your blog.

Before launching a blog on any topic, you need to make use of the biggest social media outlets to build a base level of subscribers. While these subscribers aren’t enough to spread word of your blog far and wide, they’re very helpful for launching smoothly.

Provided you have a reasonably large audience and a trust level that’s fairly high with them, you’ll have very little trouble converting followers into subscribers.

I should clarify this, since given the marketing antics that are often pulled on Twitter it’s important to weed out the potential for misinterpretation. If you have a Twitter account that’s loaded up with spam messages, endless self-promotion, and mindless marketing, you’re going to have difficulties converting your followers into opt-in subscribers or blog readers.

There’s a trust that needs to be maintained over social media, and every time you send out a link that’s forwarded to an affiliate offer or a mindless sales page, you lose some of that.

This runs somewhat against the ‘quantity is everything’ Twitter credo that many marketers believe in, but it’s essential to maintain authority if you plan to build a high-traffic blog.

Short-term tricks just don’t work in the blogging world, and an account that’s loaded with direct marketing tactics is likely to cause more damage to your blog before it launches than it could possibly cause in benefits.

Your core audience

Here’s an interesting phenomenon that I, and I’m sure most other marketers have noticed: regardless of where you’re publishing or what you’re writing about, a small (although not always) few will find it and market it for you.

Even if it’s an insignificant batch of ten to twenty people, almost every blog or guest post writer is going to find themselves attracting some kind of audience over time.

In the case of bigger bloggers, this audience eventually grows to the point where it acts as a buoy for their other content.

An interview or guest post on an unrelated site attracts comments that will turn attention in another direction, often towards your main blog or website. When combined with your new blog’s launch, this can eventually prove to be quite a valuable promotional asset.

Just like marketers are familiar with the landing page – a pre-sales page that convinces consumers of a product’s value – bloggers need to be familiar with their core audience, as they effectively do the same thing for their blog, albeit in an organic manner.

Avoiding ‘pushy’ emails

Effective mailing lists, particularly lists that have been generated over several years, are incredibly valuable for marketing a new blog, product, or service. While I didn’t have a large mailing list that could be used for the Fresh Life Advice launch, I can understand how valuable they are from past mail and subscription-based projects I’ve been involved in.

There’s one golden rule for sending email, particularly email that has a non-sale goal attached to it: don’t be pushy.

Andrew Warner, the founder of Mixergy and several other high-value websites, put things fairly well in his interview. When he founded his business in the late 1990s, receiving email was a monumental occasion for one of his subscribers.

Today, it’s something most of us don’t want to see, particularly in a niche as crowded with messages and technology as web design. While pushy email marketing can work in some fields, those with an urgent need for solutions especially, it’s not the best way to market a blog to tech-savvy readers and high-value customers.

Be persuasive when email marketing, but never be needlessly pushy.

Offer an incentive to join

Incentivizing your blog is a fairly risky move. On one hand, it’s incredibly effective at grabbing the attention of potential readers and contributors, yet on the other it can become quite a costly process, both in the amount of time required for a good promotion and the cost of running one.

If you’re completely new to the blogging world and lack any form of audience, running a promotion or competition is a fairly good way to generate subscribers and long-term readers.

The standard ‘buy a product for opt-in’ readers is fairly overblown and dull. Instead, it’s worth offering a service that’s related to your blog’s content, or providing some sort of professional value for your readers.

Instead of the standard prize, try to come up with something unique to your audience as an incentive to join your community or subscribe to your blog.

Action Item:  Create the social media pages for your website, build an email list, and start interacting with other bloggers and users via responses to comments, emails, and other forms of social media. Set aside an hour per day as this is arguably one of the most important steps of launching a successful blog.

Final Thoughts on How To Start A Blog:

It isn’t hard to launch your blog, but it is quite hard to avoid making simple mistakes and minor errors.

More than anything, consistency and regular posting builds authenticity. There’s an endless amount of empty marketing on the internet, particularly on thin blogs purporting to be impartial. When you have a huge archive of content behind you, it becomes significantly less likely for people to think of your blog as a marketing shill, ultra-commercial sales resource, or inauthentic scam.

Simply put, with a large content archive behind you and a reputation that’s stemmed from it, you’re insulated from the risk of being labeled a sell-out. I think that blogs are a fantastic tool for sales and marketing, but new blogs rarely are. It takes a certain amount of authenticity and reliability to sell to regular readers – much more so than it takes to sell to a search-based website visitor.

All in all, running a high-traffic blog has confirmed the immense value that I thought they could provide to both bloggers, readers, and advertisers. There’s really no excuse not to have your own blog, whether as an outlet or a commercial asset. If you’re on the fence about starting a journal or information blog, don’t fret – get out there, get writing, and start your own blog today.

 

Today, more than ever, there seems to be endless advice and information, but there is only one place that will provide you with Fresh Life Advice. Welcome.

 

Thank You!

I would like to thank you for reading, existing, and supporting Fresh Life Advice. This would not be possible without you.

Please also share this guide with any of the people in your circle who may benefit from it. My goal is to help as many people as possible on their financial journey.

Just think. If millions of others can successfully launch blogs, then so can you! Go out there and take action!

Are you thinking of starting your own blog? Grab FLA’s COMPLETE Step-By-Step Guide To Starting a Successful Blog and take complete control of your finances today!

Why Start A Blog | The Most Important 3 Reasons

Why Start a Blog

Why start a blog?

Welcome to my small sliver of the World Wide Web.

I don’t claim to know more about money than you do. In fact, you may have more knowledge than me in over 99% of the field of economics, but if I can at least teach you one single new thing (i.e. The motto on the first US coin was “Mind Your Business”), then I feel I’ve accomplished my goal.

Money is taboo. Nobody wants to tell other people what they make, and even worse is that most people don’t even know how much they spend. Everyone around me just seems resigned to working until 65.

Jason Bateman’s opening monologue from the pilot episode of the hit Netflix TV Series Ozark absolutely shocked me:

“Half of all American adults have more credit card debt than savings. Twenty-five percent have no savings at all. And only 15 percent of the population is on track to fund even 1 year of retirement… Money is, at its essence… The measure of a man’s choices.”

The Internet is vast place filled with tons and tons of endless information – yet, somehow, the humans you talk with every day don’t seem to reflect this phenomenon.

We all know that one person who loves to talk, but has nothing of substance to say:

“Shallow brooks babble loudest, but still waters run deep.”

A United States President said another variation of this when he originated the phrase,

“Speak softly and carry a big stick; you will go far.”

-Theodore Roosevelt, 26th U.S. President

My friends and family may know me as that quiet guy, but this is only because I enjoy listening more than speaking. This is my time to use my countless years and years of absorbing new concepts and formulating them into coherent thoughts for you to practically implement in your day-to-day life.

Do More Bloggin

Why Start A Blog? – The 3 Most Important Reasons

There are about 1,000 different reasons to create a blog, and each reason has varying importance depending on each person. Personally, these are my 3 paramount motives:

1. Legacy

No one lives forever. At least, for now… Last time I checked, humanity has yet to solve the mortality problem. This simple idea is the main driving motivation behind this steam engine of a blog, chugging along the uphill railroad tracks. The goal of Fresh Life Advice is to assist you with taking control of your money by increasing your savings and reducing your spending. FLA will encourage you and help you along your journey to financial independence. I plan to give readers a better understanding of his or her personal finances. FLA is here to show that the big world of Wall Street and intricate investing terms aren’t that complicated after all. This brings me to my next reason to start a blog…

2. Help Others

Again, what is the point of all of this money earned if you can’t enjoy it with others? Everyone may have his or her own internal purpose in life, but many believe the overarching theme is compassion towards others.

“At some point, you recognize the reason we are all here is to help someone else. That is the sole reason we are here. Once you get that in your head, life gets so much simpler. It gets so much simpler.”

-Tim Cook, Chief Executive Officer of Apple

3. Creative Outlet

As an engineer by day, I find my 9 to 5 filled with stringent guidelines, methodical calculations, and analysis that must free from errors.  As enjoyable as it is to know that I’m designing new real-world applications and ensuring the world is a safer place, it can often be mentally taxing. That is why we all need some sort of creative outlet.

Starting a blog seems to be the perfect solution to this conundrum. Not only do I receive a channel for the left side of my brain but I also am in a position to explore other hobbies, such as personal finance.

 

And of course, there is the undeniable financial motivation. You can’t avoid how tempting the additional income may seem. Not only is additional income, but at its very core, blogging is passive income.

Money is everywhere, and those who are willing to get a little creative and find new sources of income will reap the rewards. Everyone has some skill or motivation that makes them valuable. Find yours to figure out why you should start a blog.

Together, you and I will take the road less traveled, pioneer our way to retire early, and attain financial independence.

Today, more than ever, there seems to be endless advice and information, but there is only one place that will provide you with Fresh Life Advice. Welcome.

 

Thank You!

As the first blog post on this website, I would like to thank you for reading, existing, and supporting Fresh Life Advice. This would not be possible without you.

Please also share this guide with any of the people in your circle who may benefit from it. My goal is to help as many people as possible on their financial journey.

Just think. If millions of others can successfully launch blogs, then so can you! Go out there and take action!

 

Are you thinking of starting your own blog? Grab FLA’s COMPLETE Step-By-Step Guide To Starting a Successful Blog and take complete control of your finances today!