LEVELS UP

Money Moves

Hey Rayne Drops! Money is a resource and most of the time when it's talked about in music, it relates to spending it and using it to show immediately what you have and be a status symbol. I say, that's cool and you know I love a new shoe BUT let's have a space where we can support each other stacking and building legacy.

I believe we all have insight on how to make things happen since we are all unique and have different skills. What would happen if we started putting those things together? - GREATNESS and probably some really good music inspired from it.

Please share in the comments of this blog, download the money saving hack eBook below and tell a friend. Let's Move!

Rayne Drops Money Level Up Corner

Blog: She Levels Up™

From Multiple to Maxed 

Its okay to have more than one or two credit cards but there are certain stipulations to making them work to your benefit. 
If you've had trouble with debt before because you've lacked some level of spending discipline then hold off on trying this a bit until that is addressed. If you're ok in the disciple department or you keep an ultra low balance on your one credit card then know it will not hurt your credit if you have another. Once you have it your biggest job is to make sure you do not ever keep a high balance on either one. 

It shows you can manage a large sum available to you without going crazy. If this happens and you keep everything else with your money in order, you should see some improvements in your credit score.

Don't Blindly Invest 

Go with what you know and if you are thinking of trying another investment or savings vehicle, research the heck out of it -- just don't take one other persons opinion. 

The information they give you may be 100% accurate but you need to have a full scope of your risks in any investment you make. Know all of the pros and con's and then decide whether or not you can tolerate the worst happening or if it would be too devastating.

 

Here are some of my suggestions for accessible information sources before you invest:

Realty: Danielle Pierce, Mark Whitten, Max Maxwell, Douglass Depte

Stocks: Red Panda, Wall Street Trapper, The Black Financial Channel, Our Rich Journey

 

There are so many resources. What are your favorites?

Analysis Paralysis 

This really applies to every area of your life. Your home, money, business, health - everything.

Analysis paralysis is real. It’s great to know that you need some level of knowledge to adequately take a leap of faith and succeed; however, if you never apply that knowledge, what are you really gaining? Knowledge is a resource that must be used in order to be leveraged. Also when you use what you know, what you've learned will be reinforced and you'll gain more knowledge along the way. Remember, you never stop learning and things are a process.

In the comments, write down what action you're going to take by the end of the week toward at least one of your goals.

Keep Your Oldest Credit Cards Open 

The older your credit accounts the better so keep your oldest credit card open. If you've just paid it off or are about to, don't close it. Put it away and let it now help you raise your credit score by maintaining a low balance that you pay off every month.

High Interest vs. Lowest Balance 

There are 2 popular methods to paying down debt. Choose one of your debts and pay more on that one, starting with the one with the highest interest OR the one with the largest amount. 

The highest interest may seem to take longer but will result in you dishing out less overall in interest payments. 

Decide on a method today if you haven't already and crush it!

Business Types 

While you're hustling and making your passion and/or hobby work for you and your legacy, make sure you understand what type of business structure you have or may need. Here is just a brief run through of what each is. If one sticks with you as fitting, please look into it some more as every state handles each business type differently. And let us know in the comments, what type of business you have.

 

Sole Proprietorship 

A sole proprietorship is easy to form and gives you complete control of your business. You're automatically considered to be a sole proprietorship if you do business activities but don't register as any other kind of business. You get all of the benefits directly AND you get all of the liability.

 

Partnership 

Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP). 

Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability. The partners with limited liability also tend to have limited control over the company, which is documented in a partnership agreement. Profits are passed through to personal tax returns, and the general partner — the partner without limited liability — must also pay self-employment taxes. 

Limited liability partnerships are similar to limited partnerships, but give limited liability to every owner. An LLP protects each partner from debts against the partnership, they won't be responsible for the actions of other partners.

 

Limited Liability Company (LLC) 

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. 

LLCs give your personal money protection from our business in most cases. (Your car, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits).

Profits and losses can get passed through to your personal income without facing corporate taxes. However, members of an LLC are considered self-employed and must pay self-employment tax contributions towards Medicare and Social Security.

 

Corporation 

C Corp 

A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. 

Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting. 

Unlike sole proprietors, partnerships, and LLCs, corporations pay income tax on their profits.

 

S Corp 

An S corporation, sometimes called an S corp, is a special type of corporation that's designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners' personal income without ever being subject to corporate tax rates. 

Not all states tax S corps equally, but most recognize them the same way the federal government does and taxes the shareholders accordingly. Some states tax S corps on profits above a specified limit and other states don't recognize the S corp election at all, simply treating the business as a C corp. So check out what your state does before you take the leap.

Can You Buy It Twice? 

Tax Season is coming around and after the deductions from your business and the money back from your job withholdings, you might be getting a nice little stack of change. Something to remember...

When you're buying things, especially big ticket items like a car, take all of its financial requirements into consideration. Research and factor everything you can before you sign on the line. You should always have more money at your disposal than what the initial investment says it is. 

A car is a really great example since you'll remember to think about the monthly payment, gas and down payment but might let the insurance, oil changes and other maintenance slip past you. Go back and give those items some thought. They vary depending on the vehicle, age, prior driving history and even your credit.

We're Not Paying Annual Fees 

Credit cards should not be things you pay for regularly. The goal is not to use them for emergency measures but in lieu of the money you already have. Paying interest or an annual fee when you are trying to get out of debt or create a sizeable savings is a no.

Live Under Your Means 

Just because you have money currently in your possession and you've paid all of your bills for the month does not mean you have to or should spend the rest of your earnings. Leaving a portion of your money for another day will be the difference between you staying in debt, getting in debt or you carving out a great financial future for yourself. Build the groundwork for you to not feel like you are living paycheck to paycheck. 

Live under your means. Put a portion of your pay away in savings. Students, put it away in a savings or CD account. If you're knowledgeable enough or have a knowledgeable and reliable teacher or mentor, look into opening a Roth IRA. Its never to early to start saving for retirement. Or do a combination of these suggestions or more in areas you understand. Just make sure you are not spending every dime of your pay.

Don't let the knowledge of the money your have burn a whole in your pocket.

Who You Have to Tell 

So people will ask all the time how much you get paid? Where you're going? How much it cost? How did you get that? And everyone's intentions are not the same. 

Some people may see you doing well or on track with your goals and congratulate you and genuinely be happy for you. Or they might give you some suggestions or motivate you to get on track. Keep those people around! Some other people may not. Keep a stick between you and those people. Jealousy, envy and greed usually follow with those people and just like anything else, you want to safeguard what is yours. 

Yes, they could probably figure it out but you are in no way obligated to share the details of your money with anyone. Feel comfortable saying nicely, I'm not comfortable discussing that with you if you want to. And end that conversation and move on to the next.

I ain't out here needing your validation...I be bout my money”

Larayne

Rayne Drop Money Corner Forum

Board nameTopicsLast post

Finance Books

Useful books along the way.

112/19/2019 by Larayne

All Things Credit Related

Credit Reports & Scores, credit cards, etc.

0

Starting A New Business & Keeping it Open

Tips & tricks to opening a successful business and sustaining it.

0

Budgeting Tools

Apps, websites, practices.

0