Finance Tips for Young Professionals

Many young professionals face various financial challenges, such as managing debt and saving for the future. It can be overwhelming to think about what steps are needed to achieve financial stability. With the recent volatility in the stock market, now is a great opportunity to review your finances and develop a plan.

Craft a Thoughtful Budget

Before you can start making financial decisions, it’s important that you have a budget that takes into account all of your financial factors. This will help you make informed decisions when it comes to paying off debt and saving for the future. Prioritizing essential expenses over discretionary ones is very important when it comes to managing your finances. Essential expenses are the ones that are necessary to maintain a certain level of stability, such as bills and housing payments. On the other hand, discretionary expenses are less pressing–things like new appliances or fun outings.

To create a budget, consider taking your monthly income and dividing it into three categories: living expenses, loans, and debt payments. Then, subtract these items from your total monthly budget to avoid late fees and other expenses. After you have created a budget, it’s important that you prioritize how you spend any extra money.

Build Credit

You should regularly check your credit score to make sure that it is in good shape. Having a good score can help you get approved for credit cards and lower interest rates on loans. It can also help you negotiate better terms with lenders. You can also improve your credit score by taking simple steps such as paying off your bills on time and keeping low or zero balances. When shopping for a new credit card, choose one that has a great rewards program.

Add to a 401k

One of the most important factors that you should consider when it comes to saving for retirement is a tax-advantaged account such as a 401k or a 403(B). Many young professionals don’t realize how important it is to save for retirement. Since it’s tax-free, contributing to a 401k can also help lower your taxable income. It can also help you grow and earn more interest on the money that you’re investing. To help boost your retirement savings, it’s important to regularly contribute a portion of your monthly income to a 401k.

If your company provides a matching contribution to your 401k, you should start contributing up to that point so that you’re taking full advantage of the plan. However, this isn’t yours until you’re fully vested. For instance, if you leave the company after five years, your employer’s contribution may not carry over.

Make a Debt Payment Plan

Getting out of debt can be hard to manage, especially if it’s high-interest credit card debt. It’s important to prioritize paying it off as soon as possible. High-interest loans or credits cards should be prioritized first, as they will cost you more in the long run. Are you aware of the various student loan repayment options available? There are various ways to pay off your student loans, such as private consolidation or income-based repayment.

Regardless of what kind of debt you are dealing with, do the research and make a plan to pay it all off soon. Then, all the money you’re pouring into loan payments can be redirected to other uses!

 

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Financial Tips for Buying a Car

Buying a car can be expensive, and those on a limited budget want to make sure that they get a vehicle for a reasonable price. There are several ways for one to save money when shopping for a car.

 

Don’t Overlook Used Options:

Some will go shopping for a vehicle, and they will be determined to buy something brand new. However, there are often used cars on the lot available for a much lower price but are still recent models with very few miles on them. One should consider purchasing a vehicle that is even just a year or two old, knowing that they will get that for a great price and still get plenty of functional years.

 

Look for a Vehicle with a Warranty:

When someone purchases a new or a certified pre-owned vehicle, they will probably get some kind of a warranty with that vehicle. A warranty can help someone out if they have issues with their car shortly after purchasing it, and it can help a person look out for their future financial situation. Even if major repairs seem unlikely, the buyer will be grateful for the warranty if something unexpectedly breaks within the first few years.

 

Pay Attention to Loan Details:

One needs to think about the interest rate attached to each loan they are considering and figure out how much they will be spending on interest alone as they pay off that loan. The longer it takes one to pay off their loan, the more money they likely will spend on interest. Sometimes it’s beneficial to explore several different lenders to find the best rates.

 

Be Careful When Talking with Salesmen:

When someone visits a car lot, they should not let those working the lot think they are too desperate. Even if someone needs to buy a car right away, they should not share that information with the car sales associates, or they may get ripped off. If a salesperson makes it sound like they’re offering a great deal, do some research and compare it to similar cars at other dealers to ensure the price is actually reasonable.

 

Small Things to Consider When Looking to Save Money on a Vehicle:

One should always be prepared when going to shop for a vehicle, and they should be careful about how they interact with those working the lot that they visit. When one is cautious and puts a lot of thought into their vehicle purchase, they can feel good about their financial situation. It’s helpful to bring a list of desired features and the desired price range to stay on track.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Is Bitcoin Crashing?

Bitcoin has soared high in value and popularity, but this astonishing rise has also proven a double-edged sword. Its high potential value has created equal confidence in increased volatility. This makes it an excellent trading currency and a valuable currency for purchase but also causes wild fluctuations in price.

 

Recently, Bitcoin prices have faced significant dips; this led to panic among early investors and the general public. Even though it’s just about a week since the downward trend started, this has caused a lot of worries in the Bitcoin community. Some experts suggest that Bitcoin is in a bubble and could burst at any time; we will examine this possibility.

 

Bitcoin Bubble?

 

It’s been said that Bitcoin’s value depends on its use as an alternative currency, and it has been rising at an exponential rate for some time now. The value has recently started to stabilize, but there is still a lot of uncertainty in the market. Therefore, the recent drop in the price comes as a shock for some users.

 

The fact that there are very few vendors who accept Bitcoin as a form of payment hasn’t helped either. The only notable companies that accept this form of payment are WordPress and Reddit; it will take time before more companies start adopting it as a payment medium. Thus, the primary reason for Bitcoin’s existence is still vague at best.

 

If the use of Bitcoin isn’t drastically improved, there is a high possibility that it can collapse at any time. However, it is worth considering why Bitcoin seems to be headed for a massive change in value.

 

The actual cause of the drop in value was due to China’s announcement that they would not be interacting with the cryptocurrency market anymore (until further notice). This announcement made others unsure about the stability of their investments in cryptocurrencies; this led to a massive sell-off.

 

The signs of a recession are also looming large; this causes even more anxiety among investors. They panic and sell-off, which in turn causes a drop in the value of Bitcoin. This spiral can lead to a complete collapse of the cryptocurrency.

 

Solution for Bitcoin’s Flaws?

 

Some people think that Bitcoin is meant to collapse, but that is not the case. The drop in value has revealed some disturbing trends; these trends could be corrected with a few changes in how Bitcoin is utilized.

 

The biggest flaw with Bitcoin’s current model is that an actual commodity doesn’t back it. This means that its value depends solely on investors’ confidence; if people lose faith in Bitcoin, its price begins to drop.

 

As any real-world commodity does not back Bitcoin, there is a very high possibility that its value will drop at some point. Even though Ethereum, Litecoin, and Ripple have their problems to deal with, they have small markets; this makes it less volatile.

 

The decentralized nature of these currencies also means that any single entity can’t manipulate its value. This allows for the high circulation of these currencies, which in turn can lead to a higher price.

 

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

2022 Stock Market Summary

As we round the end of the first quarter of the new year, we are already seeing the warning play out from many Wall Street firms that the market’s rally is over. While the economy still looks good, returns will moderate. After the initial boom from countries returning to more normal levels of operation in light of the weakening effects of the pandemic, lingering effects in areas like the supply chain and other world economic issues are causing new challenges.

Bloomberg News compiles and presents the key investment themes and forecasts from dozens of financial firms in its annual report on the state of the stock market.

 

Inflation Concerns

Inflation is frequently cited from the board room to the bar-room this year. It’s often paired with terms like “rising” or “higher.” Rising prices are definitely a primary concern for the stock market and the rest of the financial world this year. Firms are somewhat divided on how the current inflation crisis will play out, but everyone agrees predictions are uncertain and monetary policy mistakes are more likely to occur this year.

The expectation is that policy will raise rates and that yields will rise, resulting in negative returns for fixed-income investors.

According to Goldman Sachs, part of the reason why valuations are elevated is that they’re more than the historical norm. When everything looks expensive, the expected return is less than 10%.

 

China and Pandemic After-Effects

Calls seem to agree, however, that pandemic threats are lessening. At the same time, the continued slowing of China’s economy has people concerned about significant risks. The word “China” was more than twice as often used. Bejing domestic policies have been unpredictable, and continued concerns about tensions surrounding Taiwan have everyone on edge. While China isn’t yet an uninvestable asset, several firms argued that it could still be a good investment. 

Despite the media hype, digital assets were also not widely discussed. Cryptocurrency has a lot of potential, but it hasn’t yet been established as a reliable portfolio asset. ESG investing, however, seems to be a popular option. Specific strategies are hard to find, but it’s worth pursuing.

 

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Altcoins to Watch in 2022

This year has had a rocky start for cryptocurrency investors. In November, many major cryptos hit new all-time highs, then suddenly fell by around 50%. Although altcoins are expected to surge this year, it’s essential to keep in mind that they may not replicate the massive gains of 2021. Due to the current economic climate, many investors are shying away from cryptos, which could take a long time to recover.

However, there remains strong potential and long-term gains for taking many promising altcoins. Here are just a few to watch.

 

1. Avalanche (AVAX)

In 2021, altcoins like Avalanche gained over 3,000%. Its fast processing speeds and low fees make it an attractive alternative to Ethereum.

According to DeFi Llama, 176 projects were running on Avalanche’s network at the time of writing, and it had a total value locked of $10 billion. It’s currently in fourth place.

 

2. Polygon (MATIC)

Instead of building a new blockchain, Polygon is an aggregation of layer 2s that make Ethereum faster and cheaper. Despite the upgrade to Ethereum’s network, which is expected to be completed in 2023, most developers still prefer to stay on the existing network instead of migrating to a new one. Some of Ethereum’s popular projects are already using Polygon.

Although Ethereum’s upgrade may not be completed in 2023, Ethereum’s founder Vitalik Buterin still holds that layer 2s will be useful in the future.

 

3. Enjin (ENJ)

Enjin is a platform that lets people create and sell NFTs — an industry that has seen rapid growth. It has a robust community, a reputation, and several proven use cases. Enjin is a project that focuses on non-fungible tokens, more commonly known as NFTs. They are digital certificates stored on the blockchain and used to purchase digital items.

The biggest threat to Enjin is the sustainability of NFTs. Although it had some surprising sales in 2021, it is still expected to see solid use cases once the hype dies down.

 

4. Cardano (ADA)

Due to its slow-and-steady development, Cardano has become a controversial project. Its supporters are disappointed with its approach to development, as it only released its smart contract functionality in September 2021.

So, what’s the bottom line? Looking for the next big altcoin is attractive but often a high-risk venture, as it’s prone to fraud and poor thought-out projects. While some altcoins may offer promising returns, many will fail. Instead of searching for coins that will surge in the short term, try investing in solid cryptocurrencies that will help you build wealth over time.

All cryptocurrencies are subject to risk, and it is wise to only invest in a few at a time. It avoids getting caught up in the inevitable technical issues and regulations that could affect the industry.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

2022 Stock Market Summary

As we round the end of the first quarter of the new year, we are already seeing the warning play out from many Wall Street firms that the market’s rally is over. While the economy still looks good, returns will moderate. After the initial boom from countries returning to more normal levels of operation in light of the weakening effects of the pandemic, lingering effects in areas like the supply chain and other world economic issues are causing new challenges.

Bloomberg News compiles and presents the key investment themes and forecasts from dozens of financial firms in its annual report on the state of the stock market.

Inflation Concerns

Inflation is frequently cited from the board room to the bar-room this year. It’s often paired with terms like “rising” or “higher.” Rising prices are definitely a primary concern for the stock market and the rest of the financial world this year. Firms are somewhat divided on how the current inflation crisis will play out, but everyone agrees predictions are uncertain and monetary policy mistakes are more likely to occur this year.

The expectation is that policy will raise rates and that yields will rise, resulting in negative returns for fixed-income investors.

According to Goldman Sachs, part of the reason why valuations are elevated is that they’re more than the historical norm. When everything looks expensive, the expected return is less than 10%.

China and Pandemic After-Effects

Calls seem to agree, however, that pandemic threats are lessening. At the same time, the continued slowing of China’s economy has people concerned about significant risks. The word “China” was more than twice as often used. Bejing domestic policies have been unpredictable, and continued concerns about tensions surrounding Taiwan have everyone on edge. While China isn’t yet an uninvestable asset, several firms argued that it could still be a good investment.

Despite the media hype, digital assets were also not widely discussed. Cryptocurrency has a lot of potential, but it hasn’t yet been established as a reliable portfolio asset. ESG investing, however, seems to be a popular option. Specific strategies are hard to find, but it’s worth pursuing.

.

.

.

Originally published on EtienneKiss-Borlase.net on March 2, 2022

Altcoins to Watch in 2022

This year has had a rocky start for cryptocurrency investors. In November, many major cryptos hit new all-time highs, then suddenly fell by around 50%. Although altcoins are expected to surge this year, it’s essential to keep in mind that they may not replicate the massive gains of 2021. Due to the current economic climate, many investors are shying away from cryptos, which could take a long time to recover.

However, there remains strong potential and long-term gains for taking many promising altcoins. Here are just a few to watch.

1. Avalanche (AVAX)

In 2021, altcoins like Avalanche gained over 3,000%. Its fast processing speeds and low fees make it an attractive alternative to Ethereum.

According to DeFi Llama, 176 projects were running on Avalanche’s network at the time of writing, and it had a total value locked of $10 billion. It’s currently in fourth place.

2. Polygon (MATIC)

Instead of building a new blockchain, Polygon is an aggregation of layer 2s that make Ethereum faster and cheaper. Despite the upgrade to Ethereum’s network, which is expected to be completed in 2023, most developers still prefer to stay on the existing network instead of migrating to a new one. Some of Ethereum’s popular projects are already using Polygon.

Although Ethereum’s upgrade may not be completed in 2023, Ethereum’s founder Vitalik Buterin still holds that layer 2s will be useful in the future.

3. Enjin (ENJ)

Enjin is a platform that lets people create and sell NFTs — an industry that has seen rapid growth. It has a robust community, a reputation, and several proven use cases. Enjin is a project that focuses on non-fungible tokens, more commonly known as NFTs. They are digital certificates stored on the blockchain and used to purchase digital items.

The biggest threat to Enjin is the sustainability of NFTs. Although it had some surprising sales in 2021, it is still expected to see solid use cases once the hype dies down.

4. Cardano (ADA)

Due to its slow-and-steady development, Cardano has become a controversial project. Its supporters are disappointed with its approach to development, as it only released its smart contract functionality in September 2021.

So, what’s the bottom line? Looking for the next big altcoin is attractive but often a high-risk venture, as it’s prone to fraud and poor thought-out projects. While some altcoins may offer promising returns, many will fail. Instead of searching for coins that will surge in the short term, try investing in solid cryptocurrencies that will help you build wealth over time.

All cryptocurrencies are subject to risk, and it is wise to only invest in a few at a time. It avoids getting caught up in the inevitable technical issues and regulations that could affect the industry.

.

.

.

Originally publishes on EtienneKiss-Borlase.net on March 2, 2022

Financial Tips for Small Businesses

As a small business owner, you know that managing your finances is critical to your success. But what are the best ways to manage your money? Read on for tips to help you stay financially healthy and in control.

 

Invest in a Good Accounting Software

 

One of the best ways to manage your finances is to keep up with your tax information. Between state and federal taxes, there are a lot of documents that you need to keep on hand. However, filing them can be very time-consuming, especially if you have a small business with a limited staff. A great way to get around this is to use online accounting software to help with your finances.

 

Make a Budget and Stick to it

 

Once a month, sit down with your business plan and make a budget for the next 30 days. This will help you get an idea of what expenses are coming up in the short term to manage them accordingly. Make sure to include anything from office supplies to advertising costs.

 

Once a month, review this budget and adjust it accordingly.

 

Watch Out for Hidden Fees

 

Many businesses have fallen into the trap of using services that have hidden fees. Make sure that you know what your monthly charges will be before signing up with any service. Also, find out what the contract length is and any early termination penalties.

 

Set Up a Separate Bank Account

 

If you have a partner or multiple partners in your business, it’s essential to keep your money separate. Setting up a bank account just for the company will help you do this. You can use this account to pay bills and track receipts to ensure that you are always staying on budget.

 

Incorporate Your Business

 

This is an important step that many small business owners don’t think about. If you are starting your business, making it official by incorporating it will help keep your assets safe in case of any lawsuits. It will also make opening a bank account and getting a loan easier since you can show potential lenders your official company paperwork.

 

Small businesses need to manage their money carefully. By using these tips, you can ensure that your business stays financially healthy.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

All About Bitcoin and Ethereum

Cryptocurrency is becoming increasingly popular, but not all blockchain technologies are created equal. Two of the most common names floating around the Internet – Bitcoin and Ethereum – are among the most-used forms of cryptocurrency, yet they differ in significant ways. There are crucial differences between Bitcoin and Ethereum, including what a wallet-holder and do with them, how companies leverage the technology, and how they are used in 2022.

 

What is Bitcoin?

 

Bitcoin (BTC) is a digital currency. The first of its kind, this form of cryptocurrency is digital money that is able to operate outside of a government’s control. As a result, bitcoin valuation is largely determined by supply and demand. It is not tied to any standard. This means bitcoin investors and holders can see large gains and losses in a short period of time. Bitcoin is among the most widely accepted forms of cryptocurrency. Several major companies, including Microsoft, certain Burger King franchises, and Twitch, will now accept Bitcoin and Bitcoin Cash as payment for goods and services.

 

What is Ethereum?

 

Unlike Bitcoin, Ethereum (ETH) is a ledger technology. This means the companies can use Ethereum to build new programs. More specifically, ledger technology is a digital system that records transactions of assets. However, unlike a standard bank or payroll distribution software, these transactions are recorded in several places at the same time. Ethereum can function as a bank does in providing various financial services, but there is no need for an intermediary, like an exchange or brokerage. To that end, there is no centralized data storage center. Still, many use Ethereum like they use Bitcoin: as currency.

 

Key Differences Between Bitcoin and Ethereum

 

There are several similarities between Bitcoin and Ethereum. They both utilize blockchain technology, they can both live in digital cryptocurrency wallets, and both tokens are decentralized. Neither Ethereum nor Bitcoin is regulated by any authority.

 

However, Ethereum has more applications than Bitcoin, which contributes to a frequently higher valuation. Ethereum maintains both a payment network and also stores computer code. This code is tamper-proof, which means it can power all types of technological applications – from financial contracts to business inventory. Both Bitcoin and Ethereum make for great investments, especially with the forthcoming expansion of the Metaverse.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Why Ether is on Bitcoin’s Heels

Bitcoin has been the world’s most popular cryptocurrency for years. It is, at this point, nearly impossible to avoid hearing about bitcoin. However, other cryptocurrencies are quickly gaining ground on it – one of them being Ether. This blog post will discuss why you should pay attention to Ether and what makes it unique.

 

About Etherium

 

Ether is a cryptocurrency that serves a very different purpose than bitcoin. It’s better to think of it as fuel for a decentralized platform rather than an alternative currency. Ethereum was developed by Vitalik Buterin and went live in 2015 with about 12 million pre-mined coins (Ether). The price per coin started at $0.311 and rose to $19.42 by January 2017, making it the second-largest cryptocurrency behind bitcoin (with a current market cap of over $28 billion as of December 23rd, 2017).

 

Ether is used to “pay” for things within Ethereum’s platform, such as transaction fees or intelligent contract execution. Ether can be bought or sold using other cryptocurrencies or fiat currencies. It can also be used to “codify, decentralize, secure and trade just about anything.”

 

Ether is mined similarly to bitcoin. Ether mining uses proof-of-work, which makes it attractive for miners because there is no dedicated ASICs currently available on the market (and may never be due to the design of Ethereum). Ether is mined using graphics cards and general-purpose CPUs.

 

Ether can also be used as a “fuel” for other cryptocurrencies, such as Litecoin or Bitcoin Cash (to name two examples) that run on top of Ethereum’s blockchain. These tokens get their value from the network they’re built on.

 

Ether is traded on multiple exchanges, including Binance, Kraken, and Coinbase (to name a few). It can be bought with fiat currencies such as USD or EUR through online wallets like Coinbase or GDAX. Ether’s popularity has been increasing steadily since it launched in 2015 – but recently, there have been some significant developments that have helped boost its profile.

 

Bottom Line

 

Ether is on bitcoin’s heels for several reasons. Still, the two most prominent are: Ethereum has been used by many companies to launch new cryptocurrencies and raise money through issuing ICOs (initial coin offerings). Ether was added as the second cryptocurrency supported by Coinbase, behind only bitcoin. These both add significant value to ether in the eyes of investors.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.