Avoid ‘Shiny Thing’ Strategies To Make Money – NerdWallet

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Whether it’s investing for the future or making more money, a human being can only tolerate being told, “Hey, I know it’s hard, but you’ve got to hang in there. Stay the course. Remember, you’re in it.” long-term”.

Faced with a tight budget, rising prices, and a rollercoaster stock market, you might think at some point, “There’s got to be a better way.”

‘Shiny Thing’ Strategies

When the stock market offers you more thrills than you’re willing to take, it’s tempting to withdraw money and look for other investment options.

That’s when someone tells you about something shiny and new.

could be a alternative investment: Commodities, Hybrid Bonds, Leveraged Exchange Traded Funds, Hedge Funds, Private Equity, Preferred and Convertible Securities, Real Estate Investment Trusts and Structured Notes are a few.

The people who design these investments are creative, to say the least. A new hybrid index fund invests in a portfolio of stocks of large companies for overnight trading only. Get this: the fund buys when the stock market closes and sells when the market reopens the next day. I’ll give you some time to think about it.

Some of these ideas may work as a small part of a portfolio, but are best suited for those with the investment fundamentals covered.

Other “big money ideas” can quickly take an ugly turn:

  • Lottery tickets and sports betting applications (if you do not have a budget for a long period without winning or accumulating losses).

  • Crypto (especially if you take more risk than you were prepared for).

Whatever the new idea and whoever pitches it to you, make sure they can explain the mechanics of investing (the benefits and drawbacks) in a simple and easy-to-understand way.

If they can’t, what are the chances that things will end well?

Income schemes that seem too good to be true

You may be looking to boost your budget with some additional income.

Every few weeks, I get an invitation to wrap my car with a national brand logo for “easy income just driving as usual.” Some legitimate companies do this, but many of these “wrap your car” deals are scams.

According to the Federal Trade Commission, auto wrap fraud begins when the scammer issues you a large payment, more than the agreed revenue. You must deposit all of the money, keep a portion, but immediately issue a separate payment to a retailer who will install the graphics on the vehicle. That payment, which is paid to the scammer, is collected, but the check issued to him is worthless.

Such fake check scams it can come in many forms. Be especially careful with text messages that originate from email addresses instead of phone numbers.

Other quick money schemes to consider:

Questions to ask when considering a “shiny thing” strategy

When considering an alternative investment or new income opportunity, ask questions like:

  • Does the new idea have a successful track record? Most “you have to get in on the ground floor” strategies don’t. It’s such a new and innovative approach that no one has made money from it yet. No one has lost money yet either. Or if they have, are they willing to admit it to you?

  • Is it the recommendation from someone who is significantly invested in the idea and can show you proof of that, or is it just a sales pitch?

  • Are the “guarantees” in writing?

  • Still: do the guarantees sound too good to be true?

  • Are you putting up money that you are really willing to lose?

Whether it’s increasing your income or saving and investing, there are no quick and easy answers. A prudent, well-planned course of action and a lot of patience are required.

Hey, I know it’s hard, but you have to hold on. Stay the course. Remember, you’re in it for the long haul.

Where are we with inflation? the last numbers

Inflation, the increase in the prices we pay for products and services, is measured in several ways: 1) before a product reaches the consumer, 2) the prices of goods and services reported by consumers, and 3) the consumer prices reported by companies. Economists look for even the smallest change to detect a possible trend.

The latest reports, the Producer Price Index and the Consumer Price Index, which represent the first two measures of inflation mentioned above, showed signs of slowing down in October. Keep in mind that overall prices weren’t going down, but they weren’t going up as fast as they’ve been in recent months. Little movements, right?

These could be hopeful early signs that the inflationary tide may be turning.

A sign of the times: $9 million meat theft

There was a time when banks were the main target for robberies. In those days, the saying was: “That’s where the money is.” Today, many banks are more like coffee shops than safe deposit boxes, with more baristas than bankers. And apparently, the real money is in the meat.

A Miami-based crime ring was busted last month for loading 18-wheeler trucks filled with frozen beef and pork into 45 packinghouse robberies in half a dozen Midwestern states. The total haul: $9 million.

Frozen meat is the new cold, hard cash.

#Avoid #Shiny #Strategies #Money #NerdWallet

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