If you were a member of the Boy Scouts of Girl Scouts as a kid, you likely have some essential skills you can use as an adult. Whether you learned how to start a fire in the woods, get along well with others, or survive temporarily without electricity, you can likely attribute those abilities to your “training” as a child.

Being a part of these groups may also mean you took several trips where you made new friends and learned new survival tactics. Given the current state of the world, you may have to use some of these skills while traveling. Here are some of the ways you can be prepared for the unexpected while traveling.

1. Carry A First Aid Kit

While it’s true you’ll likely have access to modern medicine no matter where you go, you should still have a first aid kit for immediate medical care. Fill the kit with hydrocortisone and antibacterial cream, allergy medicine, painkillers, scissors, bandages, and Band-Aids.

2. Carry A Reusable Water Bottle With A Filter

When you’re traveling, it’s important to stay hydrated. Take a reusable water bottle with you and make sure the water has a filter so you can be sure your water is clean, no matter where you’re traveling.

3. Don’t Forget A Flashlight

Carry a small flashlight in case you’re outside at night and want to be able to see clearly. The light can also come in handy if the electricity goes out in your room.

4. Learn The Language

Even if you’re not fluent, make sure you know the basics of your traveling language. You should know how to get around in the city and show basic courtesy to natives.

5. Observe Nonverbal Communication

Make sure you know what people are saying even when they’re not talking. Know when to speak, when to stay quiet, and what certain gestures mean in other countries.

6. Bring Extra Bank And Credit Cards

Always carry at least one backup card with you in case of an emergency. This keeps you from being locked out of your account for “suspicious activity” if your bank sees that your spending money in an unfamiliar location. Of course, backup cards also help to keep your money safe if you’re robbed.

7. Download Essential Apps

Make sure you download a money transfer mobile app such as Venmo Cashapp, or Western Union when traveling so you can send and receive money from anybody in seconds in case of an emergency or splitting checks. Apps that help you remember words or phrases in a foreign language or provide directions to important landmarks are essential.

8. Make Copies Of Important Paperwork

Make copies of your passport, social security card, and identification cards when you’re traveling. These copies come in handy if you have to file a police report for any reason.

9. Keep An Emergency Contact List

If anything happens to you while traveling, make sure you have a list of emergency contacts on hand, so law enforcement or medical staff know who to get in touch with. If you have food allergies or health conditions, keep this information on your person while traveling.

10. Don’t Forget Travel Insurance

You need travel insurance in case you have to go to the hospital for any reason so you can get the treatment you need.

11. Research Before You Leave

It’s essential to know the laws in the place you’re visiting. For instance, some countries forbid or look down on public displays of affection. Some regions of the world require you to dress a certain way in open settings. If a family is hosting you, you should know how to behave in their home to exhibit proper etiquette. Show respect for the place you’re visiting by becoming familiar with the culture.

12. Carry Multipurpose Items

Make sure you have specific suitcase items that can help you adjust to changing weather or other vacation conditions. If you decide to have an impromptu dinner date, you should have an outfit that works for the occasion but is still comfortable enough to wear in the daytime. It’s also helpful to buy a swimsuit that you can wear with a flowing skirt or pair of pants so your swimwear can serve as an additional outfit.

These helpful tips can help you make the most of your trip and increase your chances of traveling safely during and after the pandemic.

This post originally appeared on Arrest Your Debt.

The 457b is really just the slightly different sibling of the 401k. It is a tax-advantaged retirement account that is used by employees of local and state governments to save for retirement. There are also some tax-exempt organizations that also are permitted to utilize 457b plans.

As a similar benefit, federal government employees have access to a Thrift Savings Plan (TSP) rather than a 457b. The 457b is also commonly referred to as a deferred compensation plan or deferred comp plan.

So how does this plan work, and what are the advantages and disadvantages of contributing to this type of plan?

The 457b plan does offer several benefits to government workers, such as tax-deferred growth of their savings, but these plans do come with a few drawbacks. Keep reading to see precisely how this plan works and what to be aware of as you plan for your retirement.

What Is The Purpose Of The 457b And How Does It Work?

A 457b plan works very similarly to a 401k. You can think of the 457b plan like the 401k for public employees such as police officers, firefighters, corrections officers, and some other municipal, county, state, and university workers. The main advantage of this plan is that it is offered through an employer and allows you to make pre-tax contributions into the plan, which then grow tax-deferred.

The real purpose of the 457b plan is to allow public employees a tax-advantaged way to save for retirement and supplement their pensions. Most government workers also are members of a local or state pension system. These pension systems are typically defined benefit plans. This means that the employee will receive a set benefit for life once they meet the criteria for retirement (usually based on age and/or years of service).

Typically, a pension provides a percentage of an employee’s working salary. This generally falls in the range of 50%-70%, depending upon the pension system. The purpose of the 457b plan is to supplement these pensions payments and provide more income in retirement to fill the “income gap.”

To read more on this, check out my article: Why Your Pension May Not Be Enough.

Understanding 457b Contributions

You are permitted to contribute a specific amount per year, which is set annually by the IRS. In 2020, you can contribute up to $19,500, and if you are older than 50, you may contribute up to $26,000. This is called the “catch up” provision.

Since the contributions into a 457b are pre-tax, you will pay ordinary income tax on the withdrawals in retirement. These withdrawals will be taxed at your future tax bracket rates when the withdrawal is made.

The 457b plan also has a Roth version. However, not every public employer offers this option. In a Roth 457b plan, your contributions would be made with after-tax dollars. The advantage to this option is that your contributions grow tax-deferred. However, when you withdraw money from the Roth 457b, the withdrawals are also tax-free.

With the Roth option, you will not get the tax deduction in the year you contribute; you reap the benefits later on!

Therefore, the significant difference between the 457b and the Roth 457b is how and when you will be taxed on your contributions and growth. The 457b plan allows you to contribute pre-tax today and reduce your tax burden in the present. At retirement, you will pay income tax on the full account value (contributions and growth).

Think of the regular 457b plan as “tax me later.” Contrarily, with a Roth 457b, you will pay tax on the contributions now but enjoy tax-free withdrawals later. Think of the Roth 457b as “tax me now.” The question becomes, do you think taxes will go up, go down, or stay the same in the future? Additionally, your employer may not offer the Roth option with their 457b plan, so that may make your decision very easy.

Is There An Employer Match?

Public government employers very rarely provide a match to their employees’ contributions within a 457b plan. This is partially due to the fact that they are already contributing to the pension system in which that employee is a member.

If you are lucky enough to have an employer that makes match contributions, the contributions do, in fact, count towards the annual contribution limit, which is currently $19,500. This is where the 457b plan differs from a 401k or 403b.

For example, if your public employer matches/contributes $1,500 in 2020, you as the employee may only contribute $18,000 for the year. An employer could make the entire $19,500 contribution if they wanted to. However, I have never personally seen that; and I would venture to say that will probably never happen for the average public employee.

The Drawbacks To The 457b

As we said, most government employees are members of a pension system. Therefore, a 457b plan is considered a supplemental retirement savings plan for them. That is why an employer match is uncommon. Whereas, many private-sector workers rely on only a 401k and do not belong to a pension system.

In turn, many private-sector employees do receive an employer match. It is essential to understand the difference between a defined benefit plan such as a pension and a defined contribution plan like the 457b and 401k.

The difference boils down to this: the burden of providing income with a pension falls on the back of the pension system. You make your contributions, and they are responsible for investing that money and then pay you a set benefit for life regardless of what the economy or stock market is doing.

With the 457b or 401k, YOU, the employee, are responsible for providing income from that account. Things such as market volatility or a bad economy can impact your account balance and future income from that account.

It is important to remember that for public employees, the 457b is a supplement; an added benefit. This plan will not be a significant retirement benefit that will draw people to a government job. Typically, the draw is the pension as pension plans are extremely rare in the private sector today.

457b Limitations

One of the issues nationwide with 457b plans is the lack of education and lack of choices. What I mean by that is to contribute to a 457b plan, it must be approved by your employer through what is commonly referred to as a “payroll slot.” This means that your employer approves different companies or vendors to offer this type of plan to their employees, allowing them to make contributions through paycheck withholdings.

For example, an employee can agree to have $100 per paycheck taken out and sent to the company holding their 457b account. You cannot go out an open a 457b plan that is not approved by your employer.

The problem is that the 457b is not an investment per se, but a tax code. There are thousands of different investments you can hold within your 457b account, and hundreds of companies offer it. In a 457b plan, the employer may only have one or two companies approved to offer 457b’s to their employees – with limited investment options.

Frankly, what this means is that your employer could have some great options, some terrible options, or a mix. So how do you choose? By educating yourself and asking the right questions.

Lack Of Education

This brings us to our other issue – lack of education. Rarely do employers offer any training on the 457b plan or how to choose one that is right for you and your financial goals.

Typically, what they will do is allow representatives from their approved 457b companies to attend new employee orientations, union meetings, or hang out on-site to try and enroll employees into their company’s plan. The problem with this is that employees are usually getting a sales pitch from competing representatives and not true financial education or beneficial financial advice.

This is because these representatives earn a commission for new enrollments. You need to be working with an independent financial advisor to ensure you are actually enrolling in the most beneficial plan possible and not being “sold” a plan by the first representative that you meet.

Learn more about this in my article: Is Your “Financial Advisor” Actually an Advisor?

Aside from the lack of proper education and guidance, unnecessarily bringing in multiple companies and representatives can also unnecessarily increase the plan fees for the 457b participants. Ideally, you would like to see your employer approve one or two quality companies with a broad range of excellent investment options.

Some other factors that come into play with the fees include the investment offerings within the plan and the size of the plan. More extensive plans typically offer lower fees, and the 457b companies have more margin to operate with. This can also largely depend upon the company and how friendly they are to public employees.

I have seen 457b plans that charge their participants no annual fee up to fees that are as high as 5% annually. Don’t be fooled; these annual fees will add up to a large sum of money throughout a 20- or 30-year career!

Hardship Withdrawals

When it comes to withdrawals from your 457b, there are pros and cons. Hardship withdrawals taken from a 457b can be a bit tricky. Typically, these will only work for an “unforeseeable emergency” when no other resources or options are available. Then, if an early withdrawal is taken, there is usually a certain waiting period for new contributions or deferrals.

Early Distributions And Taxes

There is one massive perk with a 457b when it comes to distributions. The pro? The 59 ½ rule does not apply here!

With other qualified plans like a 401k or an IRA, the account owner must be 59 ½ to withdraw funds without a 10% IRS penalty (yes, there are a few exceptions there). However, in a 457b plan, the account holder must ONLY be separated from employment to withdraw these funds without a 10% tax penalty.

Do not confuse the early withdrawal penalty with income tax. You will still be responsible for income tax on the withdrawals. However, if you retire or separate from your employer, you can take money from your account without a 10% penalty – even if you are younger than 59 ½.

This means that if you retire early, retire with a disability, or make a career change, you can withdraw funds without a penalty. If you switch employers, you can transfer your old 457b to a new one with your new employer without a penalty. You can also transfer a 457b to an IRA or 401k.

Word of caution: early distributions are great for flexibility. However, for some, this could be a problem. Early distributions become a problem if this money is prematurely withdrawn when it could have grown over time and benefited the retiree later in life.

It is always important to consider your entire financial picture and always have multiple sources of retirement income. Just because you have early access to funds does not always mean it is best to do so.

Takeaways

The 457b plan is a unique supplemental retirement plan that is exclusively available to government and other specified employees. There are some unique advantages to deferred compensations plan that uniquely benefit the employee.

However, it is vitally important to understand how your employer’s plan(s) works, the provisions, and fees of your employer’s plan(s). Structuring a plan that is tailored to your overall retirement portfolio is just as important as the benefits it provides.

Ideally, you would also want a trusted advisor on your side to help you navigate the options and make the best choice. You can also learn some common pitfalls and mistakes to avoid with your 457b here: Don’t Make These 457b Mistakes (Deferred Comp Plan).

This post originally appeared on Arrest Your Debt.

There was some good news out of the May (2020) jobs report about how many new jobs were added despite the dismal outlooks during the previous two months. The good news is that confidence may be returning to the markets and investment opportunities looking good for consumers.

However, people are still leary about where they should put their investments. There are some stocks you could find to be great investments, but others may not be as good as the hype indicates.

Cannabis Stock In The Aftermath Of COVID-19

It’s becoming more and more likely that cannabis will be legalized in more states once all is said and done after the COVID-19 pandemic. Part of this reasoning is that in certain states, where it’s legal, local governments have deemed cannabis and CBD businesses essential.

Various industry experts have compared the current situation with the repeal of the Prohibition Act during the onslaught of the Great Depression, and how the government then recognized the tax benefits of alcohol when it was sold.

Experts expect to see something similar if cannabis becomes fully legalized, and it is a field in which more and more innovation in products is taking place. Cannabis stocks are still slowly working their way onto public exchanges and are deemed a bit risky, but this is something you should pay attention to in the coming years.

Video Tech Stocks Could Boom

Right now, there is a massive demand for reliable video streaming technology with people working from home and using telemedicine more frequently. While going back to work in the physical office may happen for many companies and their employees, there’s no doubt that some will see the cost-cutting benefits of remote work using collaboration and video streaming software.

Doctors have also turned to video streaming, especially for telemedicine, which has grown in appeal for patients who wish to visit without coming into contact with other COVID-19 positive patients. Expect remote work and video streaming technology stocks to continue the trend.

Be Careful Of Airbnb

You may have heard about the announcement of Airbnb finally going public, a big move which is expected to lead to high valuations for the stock. It certainly is a company that disrupted the hospitality industry and made a lot of profits in doing so, but today you may want to tamp down on the excitement before buying Airbnb stock.

According to the experts at Money Morning, “It may be a good investment eventually, but we suggest waiting two or three quarters for the potential volatility to settle. Then, if the financials look good, you can invest.”

This is not simply because the travel and hospitality industry has suffered during the pandemic. The travel industry will certainly bounce back, but other hotel providers and partners have seen the Airbnb business model work and have started adapting to it with their own similar services. Also, Airbnb has run into some legal red tape in a few cities and they haven’t yet figured out how to resolve these issues.

Consumer Staples Stocks Going Forward

Consumer staples stocks have been hot throughout the pandemic because they are part of the essential businesses category. Consumers tend to stock up on items like food, toilet paper, cleaning supplies, and of course, healthcare items like masks and gloves.

But going forward, the surge some companies have seen in sales will dissipate as COVID-19 does. Before you buy into the consumer staples arena, you may want to make sure you’re investing in companies with sustainable business models that enhance customer shopping experiences, like Costco and Amazon.

The market was at some very low points in the last few months, but with reopenings of the economy beginning, it’s already going back up, and time may be running out to find good deals on stock prices. But remember that good stock buying strategies don’t revolve only around which industries are growing, but on which companies are best poised to surge in those industries.

This post originally appeared on Arrest Your Debt.

It can be tricky to start a new business in this competitive world, but the rewards are well worth it. At the onset, you have a lot to deal with and think about – from simple administrative jobs to more complex decision-making. Managing your finances is a crucial step to make sure your entrepreneurial endeavor is successful.

Here are the top 8 suggestions for new small business owners to [](https://arrestyourdebt.com/long-term-investing-success/) manage their finances [](https://arrestyourdebt.com/long-term-investing-success/) in a way that maximizes their chances of success.

1. Rely On Your Bank

The way you set up your banking is actually very important when it’s time to organize your finances. Will Thompson, a finance blogger at Academized and Thesis Writing, tells entrepreneurs to “make sure you’re set up to track your spending for any length of time, and that you have the right accounts for your needs.”

Will continues, “Talk to your banking advisors for information on applying for small business loans, retirement savings plans, and financial tracking throughout the year.”

2. Track Your Expenses And Keep Your Receipts

To stay on top of your expenses, and keep track of your receipts, consider getting software or tools that will store them and analyze them for you. These tools keep everything in a digital format, and it helps you stay in charge of your finances and aware of them at all times.

When it’s time to balance the books or review spending, your work throughout the year makes it easy to do this. Look for a receipt capturing tool that can sync with your accounting program.

There are many different ways to automate your receipts and put them into your accounting program. Some people prefer the more old-fashioned way of using a standalone spreadsheet, in which case you have to enter receipts into your program manually. If that’s the case with you, business blogger for Paper Fellows and State Of Writing David McGuff says you should “consider entering your receipts weekly instead of waiting for every month or few months.”

He continues, “It can be hard to do this at first, but it should become a habit in no time and will help you visualize where your business is on a regular schedule.”

3. Paying Yourself

It’s so important to remember to pay yourself a wage as you start and manage your business. This is especially important during the early days when you’re starting.

It’s easy to fall into the trap of trying to put every single cent you make back into your business so you can propel it faster into the realms of success. However, while it’s good to show determination, doing this isn’t a sustainable practice.

You need to make sure your finances are covered, and you can live your life in a sustainable and healthy manner. If not, you’re only going to hurt yourself later down the line. You don’t want your business to fail in the future because you put in so much hard work, but you were unable to look after yourself.

4. Keep Your Personal And Business Finances Separate

We’ve saved perhaps the most important points for last, so they stick with you. There’s nothing more critical than keeping your personal and business finances apart. Keeping a firm line between the two will make it easier at the end of the tax year to file for your returns, and also prevents business cash crunches when you withdraw money for personal spending.

Keep your credit cards and loans separate as well, and never use them for the wrong purposes – you’ll be setting yourself up for unexplained losses and tax nightmares.

Another benefit of keeping them separate is it becomes easier to track your small business’ profitability throughout the year because you know exactly what your expenses and income are. If you loan any money from your personal accounts to your business accounts, keep clear records of this, and when your business turns a profit, you can repay your loans first before paying tax on your earnings.

In fact, it’s essential to make sure you’re paying yourself first, without merely absorbing all the profit immediately. In the beginning, take 10% of your earnings, and you’ll find that consistently putting money aside will show how profitable your business is. This way, you’re also making sure you have a safety margin if you have any unexpected expenses.

5. Send Out Invoices And Follow Up

Sending out invoices can be a strange experience if it’s something you’ve never done before, and you may seem like you’re pestering clients if you’re asking them for money. After all, you don’t want to scare them away. However, you’re a business, and you need to run like a business, and that means not letting people walk all over you.

This means sending out invoices as soon as your goods and/or services have been sent out, and you need to set a deadline stating that these invoices need to be paid within seven days of the invoice being sent. If someone isn’t paying, then you need to make sure you’re creating follow up emails to chase this transaction. You don’t want clients thinking you’re easy to take advantage of.

6. Plan For The Future

Every good business knows that the best way to succeed is to plan and know what kind of path you’re going to take. This applies to all areas of your business, especially your finances. This means figuring out how much you’re going to be spending in the future, how much profit you need to make to cover costs, and then how much profit you want to build on top of that.

For example, if your expenses are $5,000 per month, you need to be at least making this figure for your business to be sustainable. If you’re making $10,000 per month, then you know you have $5,000 to play with, so plan what you’re going to do with it. Are you going to invest it or save it for a rainy day? Perhaps you should think about doing both.

You’ll then want to think about what sort of goals you can set. While you’re making $10,000 per month now, how much do you want to be making in a year? How about five years? The more accurately and clearly you set your goals, the more focused you’ll be on carrying them out and being about to achieve them.

Get organized.

7. Think About Tax Payments

Tax payments are an essential part of any operating business, and you’ll want to make sure you’re thinking about how you’re going to pay your bills. Most companies will pay their tax bills quarterly, but this can change to monthly payments if it’s easier for you to keep up.

8. Lower Spending Where Possible

Finally, you want to keep your business expenses as low as possible even if it’s possible to spend more. Keep your salary as low as you can, and offer limited benefits. The money you save now will give you more flexibility in the future if you hit a difficult month.

For example, if you need to travel for work, keep the costs to a bare minimum – a simple place to sleep and a way to get to your meeting. Anything else is extra and unnecessary.

If you spend too much on more luxurious arrangements, it sets a bad precedent for yourself and your employees, and it’s a waste of money with zero returns. The business trip should be planned as though you were paying for it out of your pocket.

This post originally appeared on Arrest Your Debt.

It would be an understatement to say 2020 has been a turbulent year. The health of the economy and stock market is no exception. We have seen wild swings in the stock market from the lows in March to the rebound levels we are experiencing so far in June.

Retirement – Is It Even Possible?

It has truly been a mental test for many people to stay invested in the stock market during this time. There has been a lot of money made and a lot of money lost.

As always, this shows the importance of having a sound financial plan and sticking to the plan no matter what happens. Having a well-developed financial plan can take emotional decision making out of the investment process and let logical decision making prevail.

Logic, strategy, and perseverance will win in the long run. We will discuss some options to help you properly prepare for your future with a long-term approach. Simply put I will teach you how to weather any financial storm because you can bet there will probably be another one in your lifetime.

Identify Your Investment Personality

One of the first steps on the path to financial success is to identify what type of investor you are – as far as risk is concerned.

Generally, risk is broken down into three broad categories:

Conservative

Moderate

Aggressive

The vast majority of people I speak to will say they are conservative or moderate risk investors. Typically, aggressive investors tend to have a more “gambler style” approach to investing, which is not common among the majority of the investing population.

It is extremely important to be honest with yourself as to how you want to approach investing. If the thought of losing hard-earned money frightens you, then it is important to invest accordingly.

If you do not invest appropriately, you may prematurely give up on your plan if you begin to lose too much money or abandon ship if you do not see the returns you expected. Not being invested according to your risk tolerance will often lead to emotionally-based investing decisions that can really hurt you in the long run.

Rather, we want our investment decisions to be based on strategy, logic, and a well-configured plan.

Develop A Strategy According To Risk Tolerance

Once we have worked together to identify your investment style and risk tolerance, it is time to come up with a strategy to maximize return, protect your investments, and accumulate wealth.

I will focus mostly on strategies for conservative or moderate investors throughout this article since this is where the majority of the investing population lies as well as a large portion of my clientele base.

A Firm Investment Foundation

An easy way to think of the financial journey is to think of it as building a house. The first step is to identify any financial obligations, debts, and the needs of the investor’s dependents.

Once we determine this, we will make sure they have adequate life insurance to cover any expenses they may need or want to have covered so dependents will not be left without income or left responsible for any of the investor’s outstanding debts.

Much of today’s life insurance also includes something called living benefits, which a policyholder can use for healthcare expenses while they are still alive.

Investments are typically earmarked for retirement or some other specific need, so we do not want them to double as an emergency fund for healthcare, debts, or an unexpected death. Additionally, if investments are held within an IRS qualified plan, there are limitations on when these funds can be accessed.

Using Life Insurance To Your Advantage

I view life insurance as the foundation of the financial house for these reasons. This can be accomplished by using either whole or term life insurance. While not a traditional investment, life insurance provides an amount of financial protection for my clients and their families which would otherwise generally take decades to accumulate.

Simply put, should life insurance be needed, it provides an extremely high rate of return in comparison to the premium paid. This immediate and tax-free payout is often overlooked in many financial plans and can create a hardship for families should the primary income earner die.

Remember, a good financial plan is more than just stocks, bonds, or mutual funds. You need to make sure any possible situation is covered. You need to be working with a financial advisor that is a fee-based fiduciary, not a stockbroker. If you are unsure how to tell the difference, you can view my previous article, “Is Your “Financial Advisor” Actually an Advisor? Investment Advisor vs. Broker.”

Building The Financial Frame To Weather The Storm

When one of my clients has a stable foundation, we begin to look at various investment options after we have covered any possible setbacks. As mentioned, this article focuses primarily on conservative and moderate risk tolerance as the vast majority of people fall into these two categories.

I view these investments as the walls of the house. These investments need to be solid and consistent. These investments are generally comprised of low-fee, low-expense, well established mutual funds that have a solid history of stable returns.

These investments are chosen based on historical performance, future outlook, and several other factors. Often times, these can be but are not limited to index-based funds or funds which invest in well-established blue-chip companies.

These funds are often lower in volatility and are consistent in their returns when compared to riskier investments. Many of these funds include established dividend-paying companies that help provide a hedge against market downturns as well as added income to the investor.

Depending on the investor’s age I will also look at the suitability of bond funds and annuities in their portfolio. Again, the purpose of these “walls” is to create consistent and stable growth as well as a strong structure of the house.

Finishing Touches To Weather Any Financial Storm

Now that an investor has a stable foundation and solid walls for their financial house, we will now put on the final touches. I will then look at this as putting the roof and fixtures on the house. Even in a conservative or moderate risk portfolio is can be appropriate in some cases to put some more aggressive investments within a portfolio.

However, these riskier investments will comprise a much smaller amount of the portfolio. These investments can include small-cap mutual funds, mid-cap mutual funds, or foreign investment mutual funds. As the investments are mutual funds, this provides instant diversification as they will invest in many companies, which will minimize risk when compared to purchasing individual stocks or bonds.

Small-cap, mid-cap, or foreign investment mutual funds, however, will generally be more volatile to positive or negative movement. These investments will be more suitable for younger investors who have a long-time horizon to recover from a down market or financial crisis.

Unnecessary Risk Can Be A Wrecking Ball

Just to put things in perspective as to why we do not want to assume any unnecessary risk:

Image result for market losses, how long it takes to recover

This chart shows the importance of being properly invested. For example, if your portfolio were to take on a 40% loss, you would need to have a 67% return the following year just to get back to your starting point before the loss.

What do you think the chances of that happening are? Not sure? Here is the probability:

As you can see, even within a 10-year time frame, you only have an 80.6% probability of recovering from a 50% loss. It is also worth noting that contrary to popular belief, if you take on a 50% loss, you must earn 100% to recover from that loss, not 50%.

A Wealthy Retirement Is Still Possible

I take this approach that I have laid out with many of my own clients because it is a simple to understand concept, and is also amazingly effective. By building a house with a solid foundation and solid walls, even if an economic storm strikes and rips the roof off our house, we are in a position where we can recover quickly and repair.

A destroyed roof can easily be replaced compared to having to rebuild an entire house. If you do not have a solid plan with proper investment choices in place should an economic crisis strike, you may have your entire house destroyed and may not be able to ever recover.

This is even more true if you only have a short time horizon to do so (i.e. you are within 10 years or less of retirement). With the proper planning, you can weather any financial storm and have minimal rebuilding afterward.

It is also important to pick the right builder for your house. If you choose to work with a financial professional, make sure that person has a fiduciary responsibility which means they obligated and required to put their clients’ needs first.

This post originally appeared on Arrest Your Debt.

If you have been struggling with bad credit and you need a loan, there are certain types of loans with guaranteed approval guidelines. This post will show you the ins and outs of loans with bad credit and how to get your finances back on track!

Are There Any Guaranteed Loans For Bad Credit?

Although there is no such thing as a 100 percent guarantee, there are companies offering loans for consumers with poor credit. “Bad credit loans” are the closest you can come to a guaranteed loan.

Credit requirements are much more flexible when you apply for a loan to a lender specializing in bad credit. Even if you have a low credit score, lousy credit history, or have defaulted on loans in the past, you may still be approved. Depending on whether you make your payments on time, you can also help restore your credit.

Even Bad Credit Loans Can Help Improve Credit Scores

Every time you make a payment, bad credit lenders will report to a minimum of one of the national credit bureaus. If you pay the full amount due every month on time, your credit score will eventually begin to improve.

However, if you make your payments late or for partial amounts, you will be charged excessively high late fees and penalties. If you miss a specific number of payments, legal action, such as turning your loan over to a collection agency, will most likely be taken by the lender. Depending on your particular situation, there are lenders offering options for bad credit.

The majority of bad credit lenders have different loan options dependent on numerous factors, including your credit history, credit score, length of employment, and income. Every individual is assigned a Fair Isaac Corporation (FICO) credit score. Almost all guaranteed approval loans are based on this score because the lenders require a credit check.

Your number will be between 300 and 850. This number is what the lending industry uses to determine the risk of your defaulting on the loan. When you have a low credit score, offering you a loan is riskier for the lender. This is the reason it becomes difficult to borrow money.

How Credit Scores Affect Your Ability To Borrow Money

If your FICO score is below 580, it is considered subprime. This is a term used by lenders for individuals with poor credit. Some of the more particular lenders consider any score below 600 to be subprime, or a bad credit score.

There are two different ways credit is checked. A soft credit check and a hard credit check are the two methods lenders use to analyze your credit score and history.

Hard Credit Checks

A hard credit check or hard inquiry is usually conducted by a financial institution issuing loans guaranteed or credit cards to determine if you will be approved. This generally occurs why you apply for a credit card, loan, or mortgage. Your approval to run this check is usually required.

Your credit score may decrease by a couple of points due to a hard credit check. However, the effect on your credit is generally negligible. But, the results are significant for whether or not you will be approved for credit.

Any damage resulting from this type of check should disappear from your credit report fairly quickly.

Soft Credit Checks

A soft credit check or a soft inquiry is run when an individual or a company checks your credit for a background check. This can happen when you apply for a job, rent an apartment, or a credit card company does not obtain your permission to see if you qualify for a specific offer.

Each credit bureau determines if the results will be recorded in your FICO score. The only time this check can be seen is if you look at your credit report. Credit loans guaranteed are based on your credit score.

This is the reason the phrase “guaranteed instant approval bad credit loans” is not entirely accurate.

You receive some protection from the Consumer Financial Protection Bureau. The United States government established this agency to offer protection to consumers participating in the financial sector.

Does Carmax Approve Bad Credit?

Yes, you can receive financing from CarMax if you have bad credit. CarMax works with several different financial institutions throughout the country. Each institution has slightly different qualifications for individuals with either no credit or poor credit.

This means you have a better chance of being approved for a bad credit loan. CarMax considers a good FICO score 680 or over. These individuals will receive a much lower interest rate.

If you have bad credit, you will be charged a high-interest rate. You need to be employed to show you can pay back the loan. Keep in mind, a minimum downpayment of 20 percent is required.

What’s The Minimum Credit Score For A Personal Loan?

The majority of personal loan lenders require a minimum credit score for approval. In most cases, this is 580 to 600. If you have a low credit score or poor credit reports, you are perceived as an increased risk.

This does not mean you will be unable to qualify for a personal loan. However, you may be offered a loan for a lower amount with a much higher interest rate. According to Experian, approximately 60 percent of all consumers with a credit score of 580 or below will have a serious delinquency.

With a quick Google search, you can find companies are offering online personal loans. But, if you have bad credit, you may not qualify for unsecured personal loans.

How To Get An Instant Loan Online

The best option is to conduct an online search for instant online loans guaranteed. Some online direct lenders claim instant approval bad credit loans “requires 24 hours or less.” Keep in mind; each lender will require specific information, including your name, address, telephone number, email address, employer, social security number, and income.

Most importantly, the lower your credit score, the higher the interest rate charged. Some online lenders advertise instant approval for bad credit. If you need money right now, you may qualify for a next business day loan.

A word of caution: this online lender field is filled with predatory lenders who take advantage of consumers with bad credit.

5 Places Where You Can Borrow Money ASAP

If you need cash fast with bad credit, the following lenders are an excellent place to begin.

1. Avant

Avant offers an online platform for both credit cards and personal loans. The majority of applicants have FICO scores between 600 and 700. The company also accepts lousy credit borrowers with scores below 600.

If approved, most of their loans range between $2,000 and $35,000. In some cases, your funds may be available the next business day. If you are looking for an emergency loan, Avant is a good option.

The Annual Percentage Rate (APR) for Avant is usually between 9.95 and 35.99 percent. Do not expect a lower interest rate if you have bad credit. If approved, you should have two to five years to pay back the loan.

The typical credit limit for an AvantCards credit card is $300 to $1,000. The APR and annual membership fees depend on credit history, which will either help or hurt you. The company offers an option for a cash advance with a three percent or $5 fee, whichever is larger.

Avant is one of the biggest subprime lenders. The online platform was created so borrowers can check loan details, easily apply for credit, and change or make payments. If you are experiencing difficulty making a credit card or loan payment, contact their customer service team.

If you have a low FICO score, you may not be able to receive approval from Avant. If you do get a loan, you will be charged a 4.75 percent administration fee and a higher interest rate.

2. BadCreditLoans.com

BadCreditLoans.com is classified as a loan aggregator. This means the company will work with you even if you have a bad credit score. However, BadCreditLoans.com is not a lender.

The company accepts loan applications, then makes you an offer from numerous different lenders. You select the best offer you receive for your needs. Also, you will not be charged to fill out an application. The loan amounts offered are between $500 and $5,000.

If you are a subprime borrower, you will most likely not receive more than $5,000. The average APR from BadCreditLoans.com is between 5.99 and 35.99 percent.

You may be offered short term loans with three months to pay the money back for up to three years. To apply, you mush have all of the following:

Be a minimum of 18 years of age

Earn a regular income

Have a valid email address and phone number

Be a citizen of the United States

Have your own checking account

Since BadCreditLoans.com offers loans from many different lenders, there will be a variety of interest rates, fees, rules, and rates. The approved lender may charge you an origination fee. All of your loan documentation should be reviewed carefully before committing to avoid any nasty surprises in the future.

3. LendingPoint

If you have bad credit with a reasonable income, LendingPoint might be a good option. LendingPoint places more emphasis on debt to income ratio as opposed to your FICO score. The lender does have a minimum FICO score for approval of 585.

If your score is below 585, or you live in West Virginia, you will not be approved. The lender offers personal loans for a maximum of $25,000. Once you have completed the online application, you may receive your loan the next business day. The average APR is between 9.99 and 35.99 percent.

You should have between two and four years to pay back your loan. You may need to pay a loan origination fee. The lender offers some useful features usually unavailable for consumers with bad credit. This includes smaller monthly payments, lower interest rates, and receiving additional funds by refinancing after making six consecutive monthly payments on time. You will be able to decide if you prefer monthly or biweekly payments and your due date.

4. OneMainFinancial

onemainfinancial bad credit loan guaranteed approval

OneMainFinancial offers you the advantage of a physical location. If you would rather talk to someone face to face as opposed to online, this lender is a good option. You will be required to go to one of the company branches to open a loan.

OneMainFinancial is currently located in 44 states, with approximately 1,600 offices. Even though you need to go to a branch to finalize your loan, you can apply either on the phone or online to determine how much money you qualify to receive.

If you have been unsuccessful in obtaining credit somewhere else, this lender does not have a minimum requirement for your FICO score.

OneMainFinancial offers a high-speed loan approval process. In some instances, you can be approved in just 10 minutes, and your funds may be available during the same day you submit your application!

The majority of loans offered by the company are $1,500 to $20,000, and the terms usually state you have two to five years to pay back the loan. The APR is dependent on your credit score runs between 18 and 35.99 percent. You will be charged a loan origination fee of a maximum of five percent. If you have bad credit, the company offers a secured loan option.

These are credit check loans with collateral required. Your approval is dependent on having appropriate collateral, such as a vehicle. If you fail to make your loan payments, your collateral can be lost.

5. Upstart

If you have an excellent income with no credit or very little credit, Upstart is a good option. The company works with individuals who have not yet used credit. Loan terms are set according to specific factors, such as your job history and education. You can receive your loan as early as the next business day.

Upstart is a lending platform as opposed to an online lender. Once you have completed an application, you will receive offers from numerous lenders. The Typical APR is between 6.14 and 35.99 percent, with loan amounts from $1,000 to $50,000.

You should have between three and five years to pay back your loan. Every offer you receive through the company is from a different lender. This means the repayment options, rules, interest, etc. are all different. You should not agree to any loan until you have thoroughly read all of the documentation.

What’s The Easiest Loan To Get With Bad Credit?

There are several different types of loans you can secure easier if you have bad credit. The first one is called a no credit check loan. There are several companies running ads stating they will issue a loan, and not check your FICO score. The issue with this type of loan is the interest rates are unbelievably high. You could be charged a 400 percent interest rate!

With that type of interest rate, your monthly payments will be incredibly high. You will also have to pay back a lot more than you borrowed. If you borrow $1,000, you may need to pay $2,000 to $3,000 or more.

The Payday Guaranteed Loan Option

Payday or guaranteed payday loans are other options. This type of loan is also referred to as a cash advance loan. Payday loans online are very different from traditional loans.

You are required to write the company a check for the full amount of your loan in addition to fees for the lender. The company will keep your check until the following payday when the lender will cash your check.

The biggest issue with payday loans direct is the exorbitant fees and interest rates charged by every lender not performing a credit check.

A payday loan is for a short period, usually one or two weeks. The difference in the interest rates for traditional and payday loans is tremendous. There have been so many issues with payday lenders in the past, and a warning has been issued to consumers by the Federal Trade Commission (FTC).

Consumers are strongly advised not to take out a payday loan.

Can I Get A Loan With A 450 Credit Score?

Although it is possible to be approved with a 450 credit score, there are numerous stipulations. This includes much smaller credit lines or loan amounts, many accounts must be secured, multiple different fees apply, and the interest rates are incredibly high.

Due to these stipulations, lenders can offer loans to some consumers with a credit score of 450. The actual requirements for each lender are different, but all of them work with individuals with bad credit. Some of the companies offering these types of loans include the following top bad credit loan companies:

1. MoneyMutual

This lender offers personal loans for individuals with bad credit. This is an online marketplace for numerous lenders offering short-term loans for a maximum of $2,500. The average time necessary to fill out an application is five minutes, with as little as 24 hours required for the funds to become available.

Loan terms and interest rates vary from lender to lender on this platform. Numerous lenders are competing for business through MoneyMutual.

The marketplace offers short-term and personal loans, generally between $250 and $2,500. If you live in New York or Connecticut, MoneyMutual is not an option. You can select the loan offering the best terms from those you have been qualified to receive.

2. CashUSA.com

CashUSA.com offers consumers with bad credit personal loans between $500 and $10,000. The company accepts all types of credit, with guaranteed approvals received within minutes. If approved, the money is transferred right into your bank account.

You can use your loan for any reason, and the interest rate is between 5.99 and 35.99 percent. You will be given between three and 72 months to pay back your loan. The company connects applicants to lenders offering loans for a maximum of $10,000. The fees and loan terms vary, but the CashUSA.com service is free. The qualifications for approval are as follows:

You must be a minimum of 18 years of age

You must be a permanent resident or citizen of the United States

Your monthly income must meet the minimum requirements

You are required to have your own checking account

A valid email address and phone number are required

3. BadCreditLoans.com

badcreditloans.com bad credit loans guaranteed approval

The company offers individuals with bad credit personal loans between $500 and $5,000. BadCreditLoans.com has been offering fast funding with simple applications since 1998. The funds can be available on the next business day.

The interest rates on these loans are between 5.99 and 35.99 percent, and you should have between three and 60 months to pay off your loan. If you have bad credit, do not expect to receive a loan for more than $1,000.

According to the website, consumers are connected to lenders accepting all credit scores with no collateral required. You must meet the following requirements:

Age

Income

Residence

Checking account

Phone number

Email address

4. PersonalLoans.com

PersonalLoans.com offers consumers with poor credit personal loans between $500 and $35,000. This company is a large lender network accepting all types of credit. Loans for any purpose are available in 50 states, and loans can be approved in one business day.

The interest rate can range from 5.99 to 35.99 percent, and you should have between three and 72 months to pay back your loan. You can apply for a personal loan with a $35,000 maximum.

The loan amount you qualify for is dependent on your state laws, income, and credit history. The lender network is offering personal bank loans, personal installment loans, and peer-to-peer loans. The majority of loan providers have a maximum of 35.99 percent APR and give you between three and 72 months to pay back your loan.

5. CashAdvance.com

The company offers individuals with bad credit short-term loans between $100 and $1,000. CashAdvance.com is a large lending network welcoming lousy credit. Loans are often approved within a few minutes, with the funding available as quickly as the following business day.

You must have been working the same job for a minimum of 90 days with a $1,000 minimum monthly income to qualify. The interest rate is between 15 and 1,564 percent!

cashadvance.com interest rates for bad credit loans guaranteed approval

CashAdvance.com offers fast cash through a short-term lending network. Your funds are deposited into your bank account by the lender. Some lenders automatically take your payments from the same account. You must meet the employment and income requirements for approval. You must be a United States citizen above the age of 18 with a phone number, checking account number, and email address to apply.

Using A Credit Card For Larger Purchases

You can finance larger purchases using a credit card as opposed to a personal loan. Some credit cards offer cash advances for a lower interest rate than a personal loan. If you apply for a secured credit card, you will need to make a cash deposit matching your credit line. Your approval is virtually guaranteed.

Getting A Bad Credit Loan With Guaranteed Approval

There are issues related to getting additional loans you should be aware. It is very easy to lose control of your finances. Your best option is to improve your financial situation through financial structuring, financial planning, and budgeting.

The last thing you want is to become a victim of a payday loan or a predatory lender. You can help prevent needing a loan by starting an emergency fund. The best way to begin is by taking a good look at your spending. You should put ten percent of your income into an emergency fund every month whenever possible.

If you are unable to do so, put in as much money as you can. You can sell items you are not using to raise some fast cash. Use this money to open your savings account. Once you have started accumulating cash in your emergency fund, place half of your monthly deposits into another savings account for your future.

Avoid Making Other People Rich At Your Expense

If you need a loan to purchase a home or vehicle once your credit score has improved, you will receive a personal loan for a much lower interest rate. You can start improving your credit score by budgeting to ensure all of your loans and bills are paid on time every month.

Pay off the debts with the highest interest rate, then your smallest debts. Do not apply for any new credit cards or loans. Once you have paid off a credit card, call the company and cancel the card to prevent future use.

Personal Loans Are A Short Term Solution To A Long Term Problem

Unfortunately, there are a lot of disadvantages to personal loans.

When you have a lot of personal loans, you are essentially trapped in a neverending cycle of debt. Although a debt consolidation loan may sound like a good idea, all of your debt will still be there.

Too many individuals have taken out a personal or debt consolidation loan only to continue charging and overspending. The result is an even larger balance with higher monthly payments. When you see a rate advertised for a personal loan, keep in mind the lower rates are for consumers with good credit.

If you have bad credit, you will not receive the advertised rate. You will be “guaranteed” a high-interest rate from personal loan providers who do not have your best interest in mind.

Bad Credit Loan Fees Should Be Illegal

The majority of personal loans for individuals with bad credit, charge an origination fee. This is usually between one to six percent of the loan amount. This loan processing fee will increase the amount of your loan.

A good example is a loan of $10,000. If you have a four percent origination fee, you will have to pay $400. A lot of bad credit loans also have a prepayment penalty. This means if you can pay off your loan early, you will be charged a fee. Although the actual cost varies from lender to lender, some of them are incredibly steep.

When you are approved for a larger personal loan with bad credit, there will be several additional fees hidden in the documentation. Almost any loan you are approved for will have a fixed term and monthly payment. Although this is generally beneficial for a mortgage, the same is not necessarily true for a personal loan.

The difference between personal loans and credit cards is you can make a minimum payment on a credit card when your funds are short for any given month. If your payment on a personal loan is $500 per month, you must pay the full amount for the loan.

Legal Issues Associated With Personal And Unsecured Loans

If you miss payments or make late payments, you can be sued by the lender for an unsecured loan. There are a lot of scammers in the personal loan sector. These lenders will take advantage of you.

An unethical lender may require a prepaid debit card to pay for loan fees or use it as collateral. With this arrangement, you may discover your money is gone without ever having received a loan. If you do apply for a loan, be sure the lender is 100 percent legitimate. The website for the Better Business Bureau will let you know if the lender is accredited.

Protect Yourself From Unethical And Predatory Lenders

Do not do business with any broker or lender not registered for the state or states in which business is being conducted. If this information is not on the official website of the lender, contact the attorney general’s office in your state for verification before doing business with the company.

If there is no choice other than a loan, consider some of the other available options first. A good example is if significant repairs on your home, such as a new roof or structural repairs are necessary, the equity you have in your home may qualify for a line of credit or home equity loan.

Alternatives To A Typical Bad Credit Loan

A home equity loan is classified as an installment loan. You receive a revolving credit line referred to as a HELOC. You can use this money to make the repairs.

The difference is the interest rate is generally much lower than a personal loan, especially if your credit is terrible. You can also use a home equity loan for debt consolidation at a lower interest rate and medical or educational expenses. You must be sure you can make the payments before you apply.

Warning:

If you default on a HELOC, your home is at risk of foreclosure.

Avoid Guaranteed Payday Loans And Title Loans

Even if you have no savings account, bad credit, and are experiencing an emergency, one of your worst options is a payday loan.

A title loan is just as bad because you will be required to hand over your vehicle title before receiving a loan. If you are unable to make your payments for any reason, your vehicle will be repossessed. You will also be paying a very high-interest rate for a short term loan. These types of loans are targeting individuals with poor credit.

A lot of lenders target consumers with bad credit in need of quick cash. Many of these lenders prey on the desperation of the individual to receive a loan. You can easily be drawn to a payday loan because no credit check is required.

Even if you can pay off your loan, you will be paying so much in interest and fees you will be worse off than you were before. Although getting a fast loan may appear to be the ideal solution to your problem, you will fix the issue only for a short time.

If you take out one loan to pay off another, you will become buried under debt.

Changing Your Financial Path

You can choose to sit down, review all of your bills, determine which debts can be eliminated, and create a workable budget. You can start improving your financial future now by putting money into a savings account. If there is an emergency, you will have the funds available to cover your expenses without any interest, fees, or deadlines.

Living paycheck to paycheck is risky because there will always be emergencies and unexpected expenses. Did you know more than two-thirds of every person living in the United States has a savings account containing less than $1,000?

Don’t be a statistic!

The problem with bad credit guaranteed loans is that numerous companies are explicitly targeting consumers who are unable to cover their current debts.

A good example is if you need to repair your car and borrow $1,000. If you did not have the funds available due to your current budget to cover the repair, there is a good chance you will be unable to pay back the loan. According to the studies, payday loans are accepted in the United States, with more than $9 billion in fees every year. The interest is so high, and it is nearly impossible to pay back the initial loan.

Structuring your finances is a permanent solution. Taking out yet another loan is a temporary fix at best. If you qualified for a traditional loan with good credit, you would pay approximately 15 percent in interest during the year. If you take out a bad credit loan for two weeks, your annual interest would be around 300 percent or more.

Some bad credit lenders charge interest rates of 500 percent or more!

The saddest part is the people with the least amount of money pay the highest interest rates – out of desperation.

Your Future Starts Today

A loan will not help you pay your bills next year or even next month. Unless you make the necessary changes in your budget now, you will not be able to secure your future.

Bad credit lenders know once you have paid back one short-term loan, you will need another and another. If you consistently pay $75 in interest every month, a $1,000 loan will cost you $2,000 or more.

Yes, you can be approved for a personal loan with bad credit. You need to ask yourself where you will get the money to pay for the next emergency. If the answer is yet another loan, you will be in a constant state of debt.

This post originally appeared on Arrest Your Debt.

A statement I hear somewhat regularly is, “oh, I have a financial advisor” or “I have an investment guy.” However, what you may have is just a stock or mutual fund broker who is selling you different securities. In reality, he or she may not be advising you on anything and may only be selling you something for a commission.

We will take a look and examine the difference between a financial professional who is a broker and one who is an investment advisor/fiduciary. You will then be able to determine if your “advisor” is working for you or themselves.

While the two jobs may seem quite similar to someone who does not work in the financial world, investment advisors and brokers perform vastly different roles in the financial services field.

We are going to look at some of the similarities and differences between the investment advisor (also commonly called the financial advisor) and the broker. Be sure that you educate yourself on the differences so that you know what questions to ask your “advisor” to see if you genuinely have a real financial advisor or someone only selling you financial products. This will help you to choose someone who is acting as a fiduciary and with your best interests at the forefront.

First, we will start by looking at some significant key differences:

Investment or financial advisors are paid a flat fee or percentage of the assets they have under their management to advise clients on securities and/or manage client portfolios. Instead of earning a commission based on the sale of a security or other financial product, they are paid a flat fee in exchange for independent, unbiased advice. (This is what you want if you are going to hire someone to look after your portfolio, retirement account, etc.)

Brokers are paid commissions to execute trades, buy and sell assets for clients, or place a client into a specific type of financial product. Their compensation is dependent upon the sale of a security or financial product.

Brokers and investment advisers are regulated by different entities and require different qualifications/licenses to operate. The Financial Industry Regulatory Authority (FINRA) regulates brokers, and The U.S. Securities & Exchange Commission (SEC) regulates investment advisers. Advisors and brokers are also subject to passing different licensing examinations to act as either an advisor or a broker.

Both professionals are legally prohibited from giving advice that conflicts with their clients’ needs. In other words, the investments must be suitable for the client regardless of how the financial professional is paid. However, there is a significant difference between suitable versus what is best for you. Suitability does not always imply a fiduciary duty. More on this shortly.

Brokers

In ancient times long before online trading, investing apps and self-directed accounts, accessing and utilizing a broker was usually just a luxury service that wealthy individuals enjoyed investing their money. Individual investors typically had very little or no means to access the market or a trading platform to make any trades.

What would happen is they would have to place their orders using a licensed broker, frequently by phone. In return, the broker would charge a healthy commission on the trade. However, the dawn of the “web-based” and discount brokerages throughout the country has drastically changed the role of the traditional broker. The traditional broker is quickly being phased out in exchange for the investment advisor who manages assets (more on the investment advisor below).

Those who want to trade on the stock market or in other securities no longer need to have a broker on speed-dial to execute their trades. People now have direct access to make trades, often with no commissions. Numerous online brokerage platforms now offer zero-fee trades and zero-commission trades.

Many brokers will still execute orders for clients. However, many have changed or just expanded their services to justify charging their still relatively high commissions. The commission-based model seems to be becoming a thing of the past, and if you stop and think about it – is someone working on commission acting in your best interests or theirs?

This is why as of June 30, 2020, the U.S. Securities and Exchange Commission (SEC) has ruled that brokers can no longer call themselves or market themselves as “financial advisors” or use any title that includes the word, “advisor.”

This is a massive step in the right direction as brokers typically do not offer unbiased advice. Their “advice” usually stems from a particular security or product they are trying to sell or promote. For example, if a broker works for a firm or company, they will often recommend only financial products that firm or company endorses, which may or may not be best for you and your goals.

I have had many clients come to me asking for me to review what their previous “advisor” put together for them. I then must be the bearer of bad news in telling them that they did not have an advisor. Instead, they had a stock or mutual funds salesperson managing their finances and retirement portfolios; and that they do not have a holistic financial plan but rather a collection of stocks, bonds, and mutual funds that they accumulated over the years.

Pretty scary if you ask me.

So, you might be wondering, what exactly is an investment or financial advisor, and how can I tell the difference?

Investment Advisers

Unlike brokers, investment advisors work for a flat fee or rate. When acting as an investment advisor, one is NOT permitted to work for a commission. Investment advisors also have a fiduciary standard or fiduciary duty. This means that they are always and legally required to act in the best interests of their clients.

Therefore, the investment advisor works on a fee-based system that allows them to give unbiased and transparent investment and financial advice, catered to individual client needs, goals, and objectives. Investment advisors will also often manage a variety of investment accounts for their clients.

For example, an investment advisor may work directly with their client to create an entire financial plan. This can include helping clients with tax, estate, legacy, mortgage, college savings, and retirement planning.

Investment advisors are registered with and regulated by the United States Securities and Exchange Commission (SEC), and sometimes by a state regulatory body or state securities commission. Investment advisors are also known to some as financial advisors, asset managers, investment managers, and wealth managers, to name a few.

A simple way to know if your “investment person” is an investment advisor is to ask them, “are you a licensed investment advisor representative?”

Regulations

Investment advisors are also held to a much higher legal standard than brokers. In the United States, all registered investment advisors must adhere to the Investment Advisers Act of 1940. This act mandates that advisors must perform, “fiduciary duties in regard to their clients’ accounts.” “A fiduciary duty, which is legally enforceable under the Advisors Act Sections 206 (1)/(2), prohibits advisers from “employ[ing] any device, scheme or artifice to defraud any client or prospective client.”

The fiduciary standard also mandates, “affirmative duty of ‘utmost good faith’ and full and fair disclosure of material facts” as part of the adviser’s duty to exercise loyalty and care. This includes “an obligation not to subordinate the clients’ interests to its own.” Due to the importance of this fiduciary conduct, most investment advisers can make investment decisions for their clients without first getting the client’s permission.”

All investment advisors with $110 million or more assets under management must register with the U.S. Securities and Exchange Commission (SEC).

Testing and Licensure

Investment advisers and brokers have different training, testing, and licensing requirements. Brokers take their exams through FINRA, and investment advisors take their exams through the NASAA.

Brokers typically take the Series 6 and/or Series 7 exam depending on the types of financial products they will offer their clients. Alternatively, investment advisers must pass the Series 65 Uniform Investment Adviser Law Examination. This is a requirement before any investment adviser can provide financial advice for a fee. This exam is administered by NASAA and is regarded by some as the most comprehensive and challenging examination offering for financial professionals.

When surveyed, over 40% of everyday investors incorrectly thought that both brokers and investment advisors are required to act in their clients’ best interests. This was a part of a joint study directed by the Rand Corp. and the SEC’s Office of the Investor Advocate.

Things get a bit tricky when dealing with what is called a dual-registered representative. This is someone that is licensed both as a broker and an investment advisor. This can present somewhat of a conflict of interest, and it is vital to understand what capacity the financial professional is operating as at a particular moment.

Roughly 60% of the current 504,000 registered brokers in the United States are dually registered as both brokers and advisors. Are they acting as an advisor or as a broker/salesperson? I would certainly want to know if I was on the receiving end of their advice and suggestions. So, do NOT be afraid to ask!

The right financial advisor, who is a true fiduciary, can help you meet both your short- and long-term financial goals. They can assist you with retirement planning, investment selection, estate planning, and overall financial well-being. It is important to work with an advisor who is going to be your advocate and ally, who is going to do what is best for you and not for his or her wallet.

Do NOT be afraid to ask a financial professional what examinations they have passed, what titles they hold, and in what capacity they are acting in when assisting you. After all, this is your hard-earned money they will be managing and overseeing for you.

If you have questions or would like personalized advice, you can schedule a one-on-one call with Gary (an investment advisor/fiduciary) here: https://calendly.com/downes-dalessio/thin-line-financial

This post originally appeared on Arrest Your Debt.

Retail arbitrage is not a new concept, but it has evolved into a massive industry due to lucrative deals available on the Internet. Using retail arbitrage, you can make money selling retail items that were once limited only to large retailers and businesses.

This is a complete guide to retail arbitrage business, which contains essential tips for sellers on how to find retail items, how to sell these items, and use the Amazon seller app to fine-tune their sales.

Why Retail Arbitrage?

If you were ever involved in a retail business, you already know that doing business and selling stuff is not easy. Due to the dwindling profit margins, opening a retail store on a busy street does not guarantee success. The traditional retail model means you can sell unique items, but there isn’t much profit left at the end of the day.

Considering stores and retail businesses have to pay huge rents, salaries, and bills, the retail business model has its limitations, and opening a storefront is not practical for most of us.

Similarly, the Internet is dominated by Megastores, such as Amazon and eBay. For us, it means it’s almost impossible to run an online retail store without a clear competitive advantage or a very innovative product. It’s difficult to compete with these online retailers because these companies give their customers guarantees, refunds, and top-notch customer service.

So if you’re like most of us who want to start a retail business and don’t have cash, what can you do?

Enter the world of Retail Arbitrage …

What Is Retail Arbitrage?

Retail arbitrage is a fairly simple method of buying a product from one store at a significant discount and selling it at another store at a higher price. Some experts also call it “flipping the product for profit,” but flipping is a broad term that is not always suitable for business-minded individuals.

There are various sources and channels where you can buy products at a significant discount and then resell them on Amazon. For starters, stores like Walmart, Office Depot, and Costco are an excellent place to look for discounted items. If you don’t want to walk to a store, websites such as DealNews.com regularly post massive sales found on third-party websites.

By using these deal websites, you can potentially locate thousands of products to sell for profit on Amazon and eBay.

More experienced sellers use online and offline liquidators to buy products at massive discounts. These liquidation channels are also the secret inventory source used by eBay and Amazon power sellers. We will talk about these in a moment.

Overall, the idea behind retail arbitrage is simple. The seller needs to find a product at a discount so they can sell it for a significant profit in the market.

Can You Make Money Via Retail Arbitrage?

To answer the question, let’s review the profit margin of a typical retail business. By understanding how to make profit margins, we can quickly evaluate the potential benefits of retail arbitrage.

According to recent statistics by the Retail Owner Institute*, the average gross profit margin of a small business in the United States is typically more than 25% for most storefronts. For instance, women’s clothing and pet stores offer a gross profit margin of 46.5% and 43.6%, respectively. Similarly, bakery goods and supermarkets & grocery also enjoy hefty margins of 28.8% and 56.5%.

However, the real profits of a retail business are not as large as they seem because the actual pre-tax profits have dwindled over the years. For instance, the pre-tax profit of a women’s clothing store, pet supply shop, and a bakery are only 2.9%, 4.1%, and 7.2%, respectively. In fact, pre-tax profits of most retail businesses have steadily declined since the last few years.

These statistics tell us that it’s not easy to own a retail business because taxes, property rent, energy bills, salaries, fuel, and various fees can quickly reduce profits.

Compare it to the profit margins of retail arbitrage, where you can easily end up with profits of more than 50% after paying all the expenses. Experienced traders already know that many of the online stores and supermarkets hold clearance sales, deals, bargains, and discounted deals offering huge discounts on the inventory. Therefore, it’s possible to get huge savings on the full price of the product from one store and sell the same item at another store for quick and easy cash.

Considering you don’t have to deal with property rent, energy bills, and employee salaries, the result can be a hefty profit for the seller.

How Hard Is Retail Arbitrage?

There is no doubt that making money via retail arbitrage is perhaps one of the most straightforward business models out there. If done right, anyone can reap more profits than owning a physical store or an online store.

All you need to do is find profitable products by searching for deals on the Internet or walking over to a store to grab a clearance sale. Once done, you can quickly put the discounted item on sale on Amazon, Costco, eBay, or similar online stores. As such, potential buyers will only see you’re selling the item at a reasonable price without knowing the underlying source of your purchase.

The best thing about this business model is the lack of marketing. Just like other Internet or physical business, you don’t need to market your product. If it’s a fast-selling product, online platforms such as Amazon retail arbitrage may automatically help you expose it to thousands of potential buyers every day.

In a nutshell, your only job is to find discounted items and place them for sale on a popular online platform such as Amazon Business, Overstock, JD.com, and eBay.

Isn’t Retail Arbitrage Similar To Drop Shipping?

In the earlier days of the Internet, dropshipping became a popular model for some businesses. In this business model, a large retailer would provide sellers the opportunity to select inventory from their members-only page and send the stock to potential customers on behalf of the business.

While the business model may have worked initially, Dropshipping is quickly becoming a strain on businesses as discounts are lagging, and the available discounts seldom offer any profit at all. The only one to profit is the dropshipping company that gets regular monthly payments from the businesses in the form of membership.

Retail Arbitrage = Buying directly from the source

Dropshipping = Buying from a middle-man, often a retailer just like you.

Use These Retail Arbitrage Tips To Find Items To Sell

As you start practicing retail arbitrage, you will find multiple sources to find discounted items. Some of the most popular methods are listed below:

Online Retailers: As a starting point, you can visit a variety of well-known online retailers such as eBay, Amazon, Walmart, Apple, Wayfair, the Home Depot, Best Buy, and Target. These retailers regularly list items on sale, which are often much less than the original selling price. Using retail arbitrage, you can buy an item at a discount to sell it on another popular platform.

Price Comparison Websites: A secret weapon for sellers, websites such as Yahoo Shopping, NexTag, PriceGrabber, and BizRate offer everyone a chance to find deals and discounts offered by big-name retailers. In fact, you can also compare the price of a product with other retailers. Just Google “price comparison websites” to get a list of some of the best websites in this category.

Specialty Retailers: Retailers such as Costco, Sam’s Club, and BJ’s Wholesale Club offer a variety of special offers for their members, which are not available elsewhere. Due to their unique business model, you can easily buy products at a significant discount and sell it on Amazon, eBay, and other online platforms.

Deal Websites: Perhaps, one of the best sources for retail arbitrage is deal websites such as Slickdeals, FatWallet, and DealNews. These websites list thousands of deals offered by retailers. If you don’t want to spend time looking for exclusive deals, these websites are an excellent source to find items to sell.

Physical Storefronts: Don’t overlook the importance of walking down to your favorite retailer and grabbing a deal. To attract customers, large retailers offer walk-in deals that you can get only by visiting the store.

Yard and Garage Sales: These days, a lot of individuals specialize in finding little gems found in the basement, yard, and garage sales. If you have time for a treasure hunt, you will be surprised to find that there is an entire retail industry built around these sales outlets.

Newsletters: If you’re serious about retail arbitrage, then start signing up for newsletters because most retailers regularly offer discounts and coupons that are specifically reserved for their newsletters. You can survive solely on newsletters to fund your appetite for discounted items.

Once you get hold of different sources of online arbitrage, you can then move on to liquidators. A liquidator is a source used by eBay Power Sellers, Amazon Best Seller, and Amazon Buy Box because it’s the place where you can buy inventory in bulk. Buying in bulk can provide massive discounts not available elsewhere. It’s also not uncommon for individuals and businesses to purchase a truckload of items.

If you have some cash to dispense, liquidators are the secret source people have written entire books about.

Now that the rabbit is out of the box, here are some great liquidators to get an idea of what they do and how they do it:

1. Liquidation.com

2. Directliquidation

3. Quicklotz.com

4. BlueLots (Formerly: Source)

As time passes, you will also find there are many local liquidators near your home. Some of these liquidators only offer inventory in pallets and truckloads, but there are many out there that sell individual items and open-boxes. By using a liquidator, it’s not difficult to find products that are 75% to 90% off the retail price.

However, it’s recommended to start with online sources and then try your hand on liquidation because liquidation is another ballgame. Without learning the ropes, many individuals have burned their hands trying to get stuff from liquidators without learning what to sell, how to sell, and where to sell.

What You Should Sell

Before selling anything, you should get an idea of what you want to sell. It’s crucial because the profit margins, ease of finding the right stuff to sell, and the time it takes to sell them can differ from product to product.

While it’s true that many people try to sell what they love, successful retail arbitrage actually is all about flexibility. If you’re in love with antiques and board games, it doesn’t mean you should start selling them without learning about their profit potential and sales statistics.

Electronics

For many individuals, electronics are a great choice because electronic gadgets and accessories sell fast. If you want a quick turnover by selling smaller items for a quick profit, electronics are something to consider.

Clothing

On the other hand, some individuals love selling clothing and furniture because it gives them more profit. If you have the patience to wait for the right seller, selling furniture and clothing can bring much more profit than traditional stuff.

Specialty Items

Similarly, many individuals sell specialty products, such as healthcare items and pet supplies. The fact that these specialty items require knowledge, these categories often get much less competition allowing individuals the liberty to accumulate substantial profits.

In the end, no one can tell you what to sell; however, everyone recommends you do the proper research before diving into the profitable world of retail arbitrage.

How To Sell Effectively

Before the advent of the internet, the retail business was limited to people who knew inside information or who had the experience to run such companies. Luckily, the internet has changed the dynamics of the retail business model.

As a first step, you should focus on two important selling metrics: profit margin and inventory turnover.

Profit Margin

Visit different online retailers and investigate how much customers are willing to pay for an item. As a strict benchmark, note down the minimum price or one near the minimum. Once you have a good idea of the amount customers may be willing to pay, find if you can get these items for less than the minimum price. As a rule of thumb, try sourcing something for 10% to 30% lower than the minimum cost.

Inventory Turnover

If you know what to sell and you can find reasonable profit margins, it’s time to think about inventory turnover. Inventory turnover tells you the amount of time it takes for the inventory to sell. Newer models of electronics sold at a reasonable price sell quickly, but an older model may require more time to sell. Accordingly, office furniture usually sells more quickly than house furniture.

Tools such as CamelCamelCamel and Keepa are well-known to offer low prices, profit margins, and inventory turnover for sellers wishing to sell items on Amazon. These tools will help you answer your questions that we discussed. As a starting point, try Googling for “Amazon FBA seller tools.” You will find plenty of tools that can help you answer if a particular retail arbitrage product is the right choice to sell?

Create Trust With Your Brand

The more items you sell, the more credibility you will get as a seller. As buyers get to know you and leave positive reviews, the more buyers will follow. In addtion, getting your name out in front of potential buyers is extremely important.

One great way to create additional trust for your brand is by creating an inexpensive business card. Crello is a great place to get the perfect business cards for your brand without spending an arm and a leg.

Where You Should Sell Your Items

Obviously, the two most well-known websites to sell products are Amazon and eBay. Using an Amazon seller account is extremely popular because it not only attracts thousands of visitors, but there are tons of tools to help sellers. FBA seller tools are just a few good examples that can instantly help you find the right product to sell on Amazon.

If you like Amazon, start by finding the source of your products that you will sell on Amazon. We have listed various sources in the previous section, “Where to Find Items to Sell.” Once you have the source, you can do further research via Amazon FBA seller tools to investigate if your product selection is practical to sell.

Apart from Amazon, eBay is another excellent choice. Just browse eBay to find which products sell in an auction. If you can find products that are auctioned quickly, then there is nothing better than eBay because you may not have to wait for the seller to come to you. Instead, popular products on eBay sell relatively fast within a matter of hours.

Besides Amazon and eBay, don’t forget that tons of other well-known websites have much less competition. It means that sites like Costco, Walmart, and Overstock are just as good, considering that they also get a fair amount of web traffic, and fewer sellers are competing against you. Specialty websites like Esty and Zazzle are even better at attracting sellers who sell craft, clothing, and other novelty items.

Recently, there has been a lot of talk about Amazon and Costco restricting sellers to list specific products. In reality, the restrictions are limited to a few brand name products and particular items that can’t be sold as new. Just remember, you can pretty much use any retail arbitrage products.

Wrapping It Up

Overall, if you want to really make money, retail arbitrage sourcing is an excellent business model that doesn’t require a lot of upfront cash, inventory, and business space. Hopefully, this guide will allow you to take initial steps that are important to succeed in a competitive retail world.

This post originally appeared on Arrest Your Debt.

We’re all aiming for security and stability in every aspect of our life. As we grow older and more responsible, we start to realize how significant it is to look further into our future and think about the long term effects of our current actions. This is precisely why we have to track and manage our finances and make sure we take full control over them.

But, not everyone’s aware of how proper finance management is conducted. Luckily, we’ve got you covered. We’ve put together a list of 7 tips and tools that can help you manage your personal finance like a professional. This can help you reach your short and long-term financial goals and take full control over your money.

Let’s break it down together.

1. Analyze Your Income

Starting from scratch, the first thing you’ve got to do is to analyze your family income. You’d be surprised to hear how many people don’t know for sure what’s the monthly income of their family.

Therefore, sit with the rest of the family members who are providers and analyze your:

salaries

bonuses

pensions

temp-job wages

other sources of income

Together, create a family income table and you’ll be certain you know exactly how much money you’ve got at your disposal.

Calculator.net can help you all calculate your income as precisely as possible.

Without an income analysis, you can’t start thinking about managing your personal finances.

2. Categorize Your Monthly Expenses

The second step you have to take is to define and categorize your family’s monthly expenses. So, where does your money go?

Once you analyze the expenses from the last couple of months, you’ll have a clear idea of where your money’s going and how to handle it better.

Make sure that you single out the following categories:

Utilities & Bills

Taxes

Groceries

Personal Hygiene

Transportation

School & Child Care

Hobbies & Leisure

Debt

Make sure you analyze your expenses as precisely as possible to gain a better understanding of how you’ve been handling your money so far.

3. Set Goals

Now it’s time to think about the changes you’d like to introduce into the management of your personal finances. What is it that you’d want to change, accomplish, and turn around about the way you spend or save money?

“To be able to make changes in your finances, you’ll have to think about specific goals. The goals can vary from small and simple, to more serious and complex, but they have to be specific,” says George Pearson, a financial advisor, and writer at Subjecto.

Think about what you want to achieve:

pay off the debt earlier

save money for retirement

save money for your kids’ college fund

buy a new washer

decrease your spending

A goal can be anything you set your mind to and defining it is the first step towards making it happen.

Once you define your goals, you’ll have to re-assess your current situation and make the right calls.

4. Create A Budget

The first step towards reaching any of your financial goals is setting a family budget. Without it, you won’t be able to track your money and make the changes you need to make.

Family budgeting is all about making a plan that will allow you to decrease your expenses and save money for your goals.

That means that you need to:

analyze the way you’re spending money at the moment

find places where you can cut down the expenses

set a clear budget for each of the categories we’ve listed above

be prepared to take more precaution when spending

give up on the things you don’t actually need

Naturally, this will only work if you stick to your budget and ask the entire family to get on board.

The first couple of months might be hard, especially if you’re not used to paying so much attention to how you’re spending. But, once you get used to it, you’ll be wondering how you’ve managed before.

5. Pay Off Your Debt

While there are millions of financial goals you could be setting, paying off your debt should be your number one priority.

If you’ve followed the steps above so far, you’re at the phase when you’re able to save some extra cash and we strongly suggest you invest in early debt payment.

There are free online tools like Free Online Calculator Use which can help you calculate:

how much extra money you can invest

how faster you can pay off your debt

Look at this as an investment. The moment you pay off your debt, you’ll have all that extra money to focus on other goals you’ve set.

“Paying off your debt should be the top priority of your family finance management. Once you get rid of that major expense, you’ll be able to invest your money into whatever you want,” says Melanie Faber, a budget analyst and editor at Classy Essay.

Also, make sure you read, research, and investigate about debt. You can check out Arrest Your Debt to get all the answers and the latest information about paying off your debt.

6. Create A Savings Fund

If you don’t have a debt to pay off, or you’re working on it, you should also consider creating a savings fund for you and your family. Saving money is another goal you have to set for yourself.

A savings fund is always a great idea and here’s why:

there could be a global crisis like with COVID 19

you could lose your job

there can be unexpected expenses

A savings fund will create a sense of security and prevent you from stressing out about what’s going to happen tomorrow or any other day.

This is why we strongly recommend you set aside a fixed amount of money every month and don’t reach into that fund unless you absolutely have to.

7. Invest

Once you regain control of your finances, you can start thinking about making wise investment decisions and find a way to increase your monthly income or secure financial stability in the future.

There are all kinds of investment opportunities you could seize:

stocks, bonds, and mutual funds

real estate

retirement plans

startup businesses

crowdfunding

Making the right investment choices will help you grow your money and further stabilize your monthly income.

It would also be a great idea to write down an entire, detailed investment plan and set a time frame for achieving your investment goals. If you need help with writing your plan, you should check out writing services and tools such as Write Scout, Studyker, Top Essay Writing, or Grammarly.

Final Thoughts

As you can see, tracking and managing your personal finances can be extremely beneficial for your future and help you achieve all types of goals you set. This is why you should take it seriously and give it your best to take control of your finances.

The tips and tools provided above can help you start working on your new financial plan today. Use them to make wise choices and improve your financial status as soon as possible.

This post originally appeared on Arrest Your Debt.

If you’re looking to make a little extra money and get in better shape, use one of these mobile apps to get paid to walk! Full disclosure, you won’t get rich using these apps, but you certainly can make a few extra bucks while encouraging yourself to get in shape!

Yes, You Can Really Get Paid For Walking

Yes, even though you most likely walk every day anyway, you can still get paid to walk. There are many apps and programs that will pay you to walk without having a full-time side hustle.

Why Do Apps Pay You To Walk?

Apps pay you to walk to offer motivation for improving your health. Although many people exercise or walk for their health, many do not. Receiving financial motivation will encourage numerous individuals to begin walking.

What Is The Best App To Get Paid For Walking?

Although some apps offer better benefits than others, the best apps are dependent on what you are interested in, such as earning cash, rewards, prizes, Amazon gift cards, helping others, etc. The majority of these phone apps require you to link a fitness tracker such as a watch or even a mobile app like Google Fit.

All of the apps detailed below enable you to make extra money.

1.

Using the Sweatcoin app enables you to earn cryptocurrency, referred to as Sweatcoins. There is no sign-up fee, and you can upgrade to increase the number of coins you earn per day. Only outside walking registers on the app, so GPS must be turned on.

Is Sweatcoin Real?

Sweatcoin is definitely real. It is a type of cryptocurrency or digital currency you can earn by running or walking. Once you have downloaded the app onto your phone, your outdoor steps are tracked throughout the day. For every 1,000 steps you take, you will earn roughly one Sweatcoin. You can redeem your coins for gifts, including music downloads, magazines, running shoes, healthy energy drinks, digital watches, and electronics.

You can cash out your Sweatcoins for a variety of items, including PayPal, Amazon cards, sunglasses, food boxes, subscriptions, and shoes. Sweatcoin is essentially an alternative currency, derived from mining. You earn coins through physical exercise and activities. Sweatcoin is similar to Bitcoin. To earn Bitcoin, miners must solve complicated equations. With Sweatcoin, the steps you take in real life are what generate the Sweatcoins.

The difference with Sweatcoin is your coins are guaranteed as opposed to being found at random. Since Bitcoin is limited, a lot of miners spend months working without receiving a single Bitcoin. If you are a runner, you can earn one Sweatcoin in a total of eight minutes or less. You start by installing the app on your iPhone. Sweatcoin is expected to be available for Android in the future. Your physical activity, such as walking or running, is tracked because the app is running in the background.

Every time you take 1,000 steps, you will receive 0.95 Sweatcoins as a reward. You can redeem your coins immediately with exciting low-cost offers, including magazine subscriptions and music downloads. You can also save your Sweatcoins for big-ticket items, including running shoes, video game consoles, and digital watches. At one point in time, you could get PS4+games by redeeming several hundred Sweatcoins.

How Many Sweatcoins Is $1?

Approximately 20 Sweatcoins is the equivalent of $1.

How Many Steps Is 20000 Sweatcoins?

To earn 20000 Sweatcoins, the individual would have to take 21 million verified steps.

How Do You Convert Sweatcoins to Cash?

Your best option is finding an exchange for purchasing and selling Sweatcoins. You can also put in the effort to locate a buyer. There are numerous investors interested in purchasing Sweatcoins. The purchase price is set by the investor. You will either have to accept the offer or decline. The amount currently offered for Sweatcoins is not set. This means the price per coin is continually changing.

You may be able to sell your coins for as much as $0.10 each or as little as $0.02 cents. Although this may not seem like a lot, you can earn a lot of Sweatcoins through physical activity by running or walking six miles each day. This will earn you between 45 and 50 coins each week. By saving your coins, you can make a much more significant amount of cash.

There are also apps that will pay you to walk, such as dog walking or paid online surveys. Some of the apps offer new features performance and great benefits. To help you earn extra cash and make extra money, some of these apps are detailed below.

2. StepBet

StepBet enables you to bet on yourself by establishing fitness goals. If you reach your goals, you receive money; if you do not, you lose money. The app uses your current level of fitness to help establish your goals.

If you do not reach your goals for six weeks, you will lose money. The average bet placed is $40.

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3. Achievement

The Achievement app is an excellent money-making app. You are paid to complete different exercises such as walking, running, biking, and swimming. Your activities are logged in daily.

You receive six points for logging weight loss or gain, sleep schedule, and food intake and sharing your experience through social media. A maximum of 80 points can be earned daily for logging exercise. You are paid $10 for every 1000 points, which can help make weight loss easier to stay motivated.

4. Fit for Bucks

You can earn points by downloading the Fit for Bucks app and connecting it to your Apple Watch or activity tracker. Your points can be redeemed for exercise classes, massages, and drinks at local merchants. This app is only available in Los Angeles.

5. Higi

Higi has health tracking stations throughout the country at pharmacies. You are measured for numerous parameters with this health app, including weight, body fat, pulse, and blood pressure. You receive rewards for completing health station check-ins. Higi connects you to many different apps and fitness trackers to receive your rewards from many activities, including walking.

You receive weekly and monthly challenges. You can earn points every day for walking roughly one mile. You can redeem your rewards for gear, but you will need to make a purchase. This is an excellent way to receive discounts on a lot of different products. You also have the option of donating your points to charity.

6. Charity Miles

The Charity Miles app enables you to donate the money you earn walking to charity. The app was created specifically to help you make donations by merely walking. The app is similar to Walk-A-Thon, but you will not need to ask anyone for cash. Charity Miles uses your phone’s motion sensors and GPS for daily tracking. You can receive rewards for walking, cycling, and running and also log indoor workouts, such as running on a treadmill.

You must physically open the app to receive your rewards. This means every time you want to track your workout, you must open the app. You can choose to donate to more than 40 worthy charities, including St. Jude Children’s Research Hospital, the Wounded Warrior Project, the National Park Foundation, the World Wildlife Fund, Feeding America, and Habitat for Humanity. You should not have any difficulty finding a cause you believe in through Charity Miles.

7. Walgreens Balance Rewards

When you walk, you receive Balance Rewards points through Walgreens Balance Rewards. The points go toward your Walgreens Redemption Dollars. If you are a Walgreens shopper, this is also an excellent way to meet your weight loss goal. You need to go to the Walgreens website to sign up for a Balance Reward account to begin. Once you have created an account, you can sign into the Walgreens app.

You will then be linked to a fitness tracker. You can either use your phone’s sensor or your choice of different kinds of fitness trackers. Every time you walk one mile, you earn 20 points. Your monthly point limit is 1,000. You also earn points when you log your blood measurements or weight.

8. Earth Miles

The Earth Miles app is unique because the more difficult the task you complete, the more points you earn. You will receive more points for running than walking, even if the distance is the same. You can redeem your points for health-related rewards, including supplements and classes.

9. Carrot

The Carrot app was initially released in 2015 in British Columbia. The app was forced to close in 2019 because all funds were depleted. Carrot Rewards 2.0 has released through new ownership. The app will most likely work in the same way as previously. The key feature of the app is the step cha llenges. When you initially sign up, you need to allow approximately one week for your steps to be analyzed to achieve your step goal.

Once your goal is determined, you will be able to begin earning points. As with any new app, bug fixes are aimed at helping you achieve your fitness goals. Points are earned for reaching your daily step goal, completing challenges with friends to reach your goals as a team, and meeting your daily step goal five times within seven days. You can also earn additional points by taking health surveys.

You can earn Drop points which pay you for shopping, Petro-Points, Aeroplan Miles, and Scene points to earn free movies. Carrot is currently only available through a waiting list. There is no guarantee the app will perform in the same way as in the past.

10. Runtopia

If you want to earn money walking, Runtopia is a good option. The purpose of the app is to help you improve your fitness level. You receive rewards as a bonus. You set your personal goals for walking, running, or cycling. During your workouts, you can even listen to an audio coach. The app has built-in training programs to help you warm up, lose weight, stretch, and more.

Although the majority of the features are free, you will need to pay for a premium membership for a few of them. You earn Sports Coins for participation within your community and the completion of your daily tasks. You can redeem your Sports Coins for PayPal cash, coupons, free memberships, and products. You need to use your coins before March 1st of each year, or they will expire.

11. LifeCoin

LifeCoin is extremely similar to Sweatcoin, but the look is entirely different. The functions of both are nearly identical. LifeCoins can only be earned for taking outdoor steps. Free users can earn a maximum of five LifeCoins per day. There are several ways this app is different than Sweatcoin. You have the option of paying $4.33 per month to increase your maximum daily LifeCoins to 10. Your subscription also includes Azumio premium.

This provides you with premium access to all of Azumio’s top apps. LifeCoin also gives you the ability to make a selection from a wide range of gift cards or to redeem your coins for physical merchandise such as Beats headphones, a quadcopter, or Airpods. Since the available rewards are always changing, they are offered on a first-come basis. You will always have a different selection of merchandise to choose from.

12. Lympo

If you want to start getting paid for walking, take a look at Lympo. This is an excellent way to earn extra money online. In addition to receiving payment for your steps, you will also receive payment for the completion of both running and walking challenges. New challenges are always being added to the Lympo app. Once you complete a challenge, you will start to earn LYM tokens. You can redeem them for rewards. One of the best parts of Lympo is your challenges can be completed either outside or inside.

You can even complete your challenge on a treadmill. You also can connect numerous health trackers to your app, so tracking becomes even more accessible. Currently, your LYM tokens are redeemable for products offered in your app. LYM tokens do have a cash value. This means there may be an LYM wallet in the future for withdrawing your tokens. Lympo is also beginning to offer giveaways for various products and Amazon gift cards.

13. PK Rewards

In the past, PK Rewards was called PK Coin. You are paid for general exercise, including walking and working out. You can earn rewards as long as you keep moving. Before every workout, such as biking, hiking, walking, or running, you need to open your PK Rewards app on an Apple Watch or phone. Bluetooth trackers are also supported. You then press Start Earning. This is the only way to be sure your app will be accurate.

After you have completed your workout, you need to open your app again and press the button so your effort and time can be calculated. This is referred to as your Effort Score and is how you receive coins. Your rewards are better when you put a lot of effort into your workout. Your coins can be redeemed for rewards, including top brands such as Amazon and Nike.

14. FitPotato

FitPotato has a lot of similarities with StepBet. The difference is you can do much more than merely walking for cash. To be able to win a higher reward, you need to make a bet on yourself. Every week, FitPotato offers a cash prize pool. This is generally $1,000. To have a chance of winning the pool, you need to place a $5 bet on yourself. You can make money walking fast by completing three jog/run/walk step sessions successfully. The majority of sessions currently require you to take 6,000 steps.

The number of steps required may change in the future. When you have completed the week, you need to open your app so your actions can be synced. If all three of your sessions have been completed successfully, you will receive a share of the prize pool. The only downside is the FitPotato app is currently a little clunky.

15. Winwalk

Right now, Winwalk is only available if you have an Android phone. The app is both straightforward and simple. Winwalk is like a pedometer because it is capable of counting your steps. You will not need to use GPS because the app uses the built-in sensor on your phone for counting all of your actions. Both outdoor and indoor steps qualify.

Every time you take 100 steps, you earn one coin. The maximum number of coins you can make each day is 100. This will require you to take 10,000 steps. You can redeem your coins for rewards, including free Starbucks gift cards, free Amazon gift cards, and free Walmart gift cards. If you have an Android phone and are already walking, this is an ideal way to get a few free rewards.

1

You can only use FitFetti if you have an iOS device. Once you have established a link with FitBit, all of your steps are directly tracked right through your iPhone. You can earn a variety of rewards by reaching your step goals.

17. Rover

To find dog walking opportunities, take a look at Rover. This is an excellent way to make money. If you love dogs, you can find jobs for dog walking through Rover. The app will enable you to find clients willing to pay for walking their dogs. The majority of apps only pay for the steps you take. Although you can find this type of job in other ways, Rover is a much simpler way to bring the gigs to you.

18. Healthy Wage

Healthy Wage will not pay you for walking. What you can do is place a bet on yourself to lose a specific amount of weight. If you reach your goal, you can win a maximum of $10,000. One of the best benefits of the app is motivation.

19. DoorDash

DoorDash is an app offering food delivery. You can earn a lot of money this way, you have no minimum number of orders required for your account to remain active and you select the hours you want to work. DoorDash offers you a flexible way to walk while delivering orders and earning cash.

20. GigWalk

The GigWalk app allows you to gather data for numerous companies. You complete small jobs while walking around your area. Some of the jobs offered include looking at various displays and taking photographs of signs. GigWalk is very useful if there are a lot of stores in your area and you can walk around comfortably. This enables you to receive the best possible earnings for your time.

21. Postmates

Although Postmates is a delivery service, it is not strictly based on food. The courier service will pay you to make deliveries. During peak times, Postmates pays an average of $19 per hour. You keep every single dollar you have earned.

22. ShopKick

The ShopKick app enables you to earn Kicks or rewards while you are shopping. Your Kicks can be redeemed for gift cards. There are different ways to earn Kicks, including:

• Scanning barcodes for specific products

• Making purchases online

• Walking into specific stores

• Watching videos in-app

• Submitting a receipt for a purchase

• Using a linked card to make a purchase

23. Deliver Newspapers

One of the most traditional ways of receiving payment for walking is delivering newspapers in your area. Some newspapers have apps; for others, a visit to the local office is necessary. Individual businesses may also pay you to walk around making deliveries.

24. Becoming A Sign Holder

A lot of companies will now pay you just to hold a sign. Although you will not be earning a lot of money, this is an excellent opportunity just to walk around. You are literally being paid for walking while holding a sign.

25. Instacart

One of the most popular grocery delivery services is Instacart. You have two different options for earning money. Your first option is signing up as a shopper. No involvement in the delivery process is required. You will be walking through a grocery store to gather the items customers have purchased. You will be classified as an in-store shopper. This makes you a part-time employee with the advantage of flexible hours.

Your second option is to become a full-service shopper. Your responsibilities will include making deliveries and performing all of the shopping. You must have a vehicle and be willing to drive in addition to walking. As a full-service shopper through Instacart, you will be classified as an independent contractor. This means you can choose the hours you want to work.

Wrapping It Up

Whether you’re trying to get in shape or want to make extra money doing your daily activities, running an app in the background that counts your step is one of the best passive income strategies that doesn’t require any work!

Did I miss any? What is your favorite way to get paid to walk?

This post originally appeared on Arrest Your Debt.