Last article talking about are you better off spending your spare time being frugal or earning more money? Now that you’ve decided to pursue your dream in a side business to make more money. However, nearly two-thirds of new businesses are doomed. Havard Business Review has a great advice about whether or not you should give up on your new dream. “You’ve recently launched your brainchild. But things aren’t off to a roaring start. Is it just the low end of the S-curve of growth, the flat line before things start to improve? Or is it just…well…a flat line?” Here’s how to decide to stick with your dream. Does your business occupy an otherwise unoccupied niche? Are you playing to your strengths? Have you assumed the right risks? Do you find your work difficult but not debilitating? Are you gaining momentum? If the answers are yes to those questions, then you’re on the low end of the curve and growth is coming. If you’ve carved a niche that you occupy from a position of strength, then it’s time to settle in and persevere. Otherwise, “knowing when to pull the plug can be the difference between sinking a rowboat and sinking the Titanic.” (hbr.org)
Mr. Money Mustache preaches about minimizing one’s car-related expenses to the bare bone. “When it comes to the Automobile, you really have a choice between two possible relationships. You can be the Master, and thoughtfully use cars as a tool as needed to reach your goals. Or you can be a Slave to the auto – worshiping it, allowing it to steal your money, your physical fitness, and your sense of control over your life.” In his situation, by spending only $1500 per year on vehicles’ expenses comparing to $9000 for the average two-care family’s spending, he’ll come out ahead by $104,751 over 10-year period. However, his friend Ben has a totally different saving route regarding to car-related expenses. Ben shows how he makes profit after he has owned and driven over 50 cars. Basically he gets his cars for free by buying, fixing, driving and selling cars for profit. Ben’s recommendations are to buy low, to look for neglected cars, to research and do as much work as you can on your own. Then sell quickly at a modest price. That way you still save money and have fun at the same time. (mrmoneymustache.com)
An article on The Wall Street Journey reports that the cost of investing is falling toward zero for mutual funs and ETFs. This is an excellent news for common investors everywhere. However, “some money managers that get much of their revenue from actively managed funds are fighting back, partly by getting more vocal about the potential risks of index investing. They say the strategy forces investors into risky bonds or pricey stocks just because they are part of a benchmark.” Despite their talks, indexed funds consistently out perform actively managed funds. That’s not good news for fund managers. They still don’t accept their fate yet in order to get some revenue by being a market-leader in indexed mutual offerings and by profiting more so due to high volume. The tough time is ahead for actively money manager as fee cutting pressure remains relentless while Vanguard automatically lowers fees as its funds grow. (wsj.com)
More and more employers are opening up companywide salary information to all employees. For instance, This company, Buffer, posts all employees’ salaries on its website. “The idea of open pay is to get pay and performance problems out on the table for discussion, eliminate salary inequities and spark better performance. But open pay also is sparking some awkward conversations between co-workers comparing their paychecks, and puncturing egos among those whose salaries don’t sync with their self-image.”
According to Dice’s new survey data, average technology salaries in the U.S. saw the biggest year-over-year leap ever, up 7.7 percent to $96,370 annually. Bonuses and contract rates also rose from 2014, and tech salaries in seven metro areas reached six-figures for the first time since the survey began more than a decade ago. Contract workers saw a rise (5%) in hourly compensation, with contractors earning $70.26 per hour. With the big salary increase, technology professionals are also more satisfied with their pay and confident in job prospects of their field. (dice.com)
Bloomberg Business reports that 32 of the 35 districts in which inequality is greatest are represented by Democrats. Clearly, extreme inequality correlates strongly with Democratic political representation. Bloomberg Rankings, drawing on U.S. Census data, have measured the level of inequality—the Gini coefficient—in each of the 435 U.S. congressional districts. It’s a fascinating list (and a map) that reveals all sorts of interesting things. Of the 100 districts with the highest levels of inequality, not one held by a Republican is considered to be in play this November. (bloomberg.com)
In this day and age, it is easy for anyone to create a website. Domain will cost around $12/year and hosting will cost $3.49/month through BlueHost. WordPress will let you set up and run your website quickly. Anyway, Financial Samurai shows some reason for you to start your own website today. With a website, you can connect with many people and do what you love. You can also make some money along the way and the website looks good on your resume. Finally, with your own website you can create your own legacy.
There’s a lot of guides online giving you advice on how to be successful. Personal finance blogger Ramit Sethi, at I Will Teach You To Be Rich, show us the three critical success habits that he has developed to find success in different areas of life:
- “Success habit #1: Pick one goal
- Success habit #2: Work twice as hard, get 10x the results
- Success habit #3: Always have a mentor.”
Instead of laissez-faire economy China’s Communist Party tends to mess with the market. They are attempting the impossible: Stop market volatility. They did it last year just before the market peaked by telling people to buy more stocks. At the beginning of 2016, the Chinese government also halted the stock market for an entire day on January 7 but to no avail as the market continued to tank. It seems that China doesn’t know what it’s doing and it affects many global economies around the world. 2016 will be another uglier year as China still tries to control the market.