Unfortunately, many parents and teachers think of starting a business as something to do when you’re done with school. The truth is that many of today’s adult entrepreneurs started their first ventures before they turned 18.

The experience and lessons teens get from entrepreneurship can positively impact their entire lives, whether they stay an entrepreneur or transition to a traditional job in the future. Here are just a few of the benefits of teenagers embracing entrepreneurship.

Teen Entrepreneurs Gain Confidence

The Junior Achievement survey noted that 27% of teens thought starting a business was very risky. Running a business is challenging, and you do take financial risks in the process.

However, teens are in a position to be able to weather financial risk more effectively since they generally live at home and don’t have to worry about bills, rent, and other expenses. Embracing entrepreneurship during high school gives teenagers the chance to find out what the risk is like without having to worry about not having food or a roof over their heads.

In the process, these entrepreneurs will gain confidence in their own abilities. They may gain experience in leadership, and they’ll definitely learn more about their own interests and passions. This confidence helps them overcome negative peer pressure and potentially avoid bad decisions.

Improved Problem-Solving Skills

Some people solve problems quickly and easily, while others freeze, panic, and wait for someone else to tell them what to do. Often the primary difference between these responses is the experience you’ve had earlier in life.

Problem-solving is a skill that’s rarely taught until it’s too late, similar to car and home maintenance or first aid. Too often, we don’t learn to solve problems until we’re in the middle of a crisis, and by then, it’s do-or-die.

A teen entrepreneur has the opportunity to learn problem-solving skills in a safer environment. The business they’re running isn’t responsible for 100% of their support or success in life. Instead, it’s a side venture while they’re in school, which helps reduce the fear involved with facing difficulties.

Businesses face a variety of problems, whether it’s a new competitor in the market or a change in customers’ buying habits. By learning to face and solve these small problems without having everything on the line, a teen will be far better able to solve bigger challenges in the future.

Financial Literacy

Children and often teens have a hard time understanding the role of money — how it’s earned, taxed, and spent — until they have direct experience with it. This can come through a first job or by jumping into entrepreneurship.

Starting a business gives teens a real understanding of how hard it is to earn money, whether they decide to start a lemonade stand, be a coach for a sport or hobby, babysit, or walk dogs. A teen with their own business can also learn about the specifics of self-employment taxes, business write-offs, and other important financial details of having a business.

Learning how to manage sales, operate a business bank account, and pay taxes can help them have a much smoother transition into adulthood, where they have to manage their income and budget themselves.

Learning to Manage Stress

Going to school, being a good family member, and running a business can be a lot to handle. But being resilient under stress is a skill that can be learned, and it’s often best learned while a teen is still at home and has the support of their family.

Even without running a business, teens are often under a lot of pressure. By choosing to run a business, even at a very small scale, they can learn how to balance competing priorities, decide when making more money is worth it versus taking a break, and more.

As a parent, it’s important to know how to identify stress in teens and help them cope in healthy ways. Sometimes stress is motivational, like when you’re trying to hit a revenue goal or other target. Other times, it can lead to mental health struggles. If you notice more irritability than normal, changes in behavior, or problems sleeping, talk to your teen about their stress levels and help them find healthy management strategies.

Learning to leverage mindfulness practices, for example, can reduce stress and increase resilience. Limiting the use of technology can also help teens unplug and unwind. The skills teens learn before they turn 18 can make a big difference in how well they cope with the stress of adult life.

Encourage Your Teen To Embrace Entrepreneurship

As a parent, there’s a lot you can do to help set your teen up for success in their adult life. When you encourage them to pursue entrepreneurship while still living at home, you’re giving them the benefits of entrepreneurial experience without the sometimes overwhelming risk.

Running a business helps your teen develop creativity and communication skills, along with the other benefits we’ve mentioned. Entrepreneurship doesn’t have to be overwhelming — a simple side hustle or gig job during evenings and weekends can help your teen grow and experience the pluses and minuses of being their own boss.

Who knows, you might decide to give entrepreneurship a try too!

Photo Credit

Photo by cottonbro studio on Pexels

Guest Author Bio
Luke Smith

Luke Smith is a writer and researcher turned blogger. He enjoys writing on a variety of topics but business, technology, and digital marketing topics are his favorite. When he isn’t writing you can find him traveling, hiking, or getting into the latest tech.

Instead of going on a shopping spree and purchasing trivial items that won’t bring lifelong satisfaction, consider more noble and useful purchases. Here are a few things you won’t regret buying with your lottery winnings.

1. Real Estate

Real estate can be a highly profitable market for amateur investors. The barrier for entry is low, and you have a dozen ways to diversify your investment. You can use your money to take a hands-on approach with fix-and-flips or rental properties, or invest behind the scenes in REITs and crowdfunded real estate investments.

Best of all, you don’t have to have all of the money at once. A $20,000 lottery winning is an adequate starter because you can leverage funding to pay for the rest of the investment and use your investment earnings to pay it back.

2. Stock Investments

Speak with a financial advisor about investing in stocks (don’t try to invest without their help). There will be many options depending on the amount of money you’re putting up and the current stock market.

Your financial advisor will likely recommend taking a diversified approach, separating your money into several different types of investments to help you avoid losses and improve your chances of maximizing the markets.

3. Retirement Starter

Did you know that 15 percent of Americans don’t have anything in retirement? Among those under the age of 29, 42 percent have nothing in savings, which means they’ll have a hard time accruing adequate retirement savings by the time they’ve reached retirement age.

This is the perfect time to start your retirement or add to what you already have. Determine how much you’ll need at that time to live comfortably, and use a retirement calculator to determine what you need to save yearly. You might consider speaking with a financial advisor to determine the best type of retirement account to use and the proper way to add to it.

4. Debt Payoff

Americans pay exorbitant interest fees for their existing debt. On average, those with credit card debt will pay between $1100 and $1400 per year in interest alone. Those with 10-year student loans will pay an average of $650 yearly in interest, and those with a 30-year fixed-rate loan will pay anywhere between $3,000 and $15,000 per year for interest.

If you have a windfall, throwing it towards debt is a great way to reduce what you pay in interest significantly. Paying down debt gives you more financial freedom to use your regular paychecks more wisely.

5. Business Startup

Whether you’re an entrepreneur looking for your big break, or you know of a great startup that needs funding, investing in a business venture is a great way to let your money work for you. Depending on the business, the payoff might be small or nonexistent at first, but in a few years, it may have huge yields that provide money for the rest of your life.

6. College Funds

If you have children, use a portion of the money to start a college fund. If you put the money into high-interest savings accounts, it can compound annually and quadruple your investment over the next 10 years or so.

Remember that you don’t have to pay for your child’s entire education, but the money you save will give them a great head start.

7. Charitable Giving

With extra money burning a hole in your pocket, don’t forget about others who could benefit from it. If there’s a cause or organization you believe in, consider making a donation. Not only is this money tax-deductible, potentially offering huge savings, but it leaves you satisfied knowing you selflessly helped others.

8. Budgeted Purchases

Most importantly, only purchase things that your budget allows. Setting a budget should be your first move, and you may need to constantly remind yourself not to overspend.

Lining out how you’ll spend your money will make your money last much longer. It will also give you the freedom to purchase things you want and also practical investments that can be for your long term benefit.

Photo Credit

Image by Hermann Traub from Pixabay

Guest Author Bio
Jamie Lansley

Jamie is a freelance writer who covers trends in business, technology, and health. She loves to go skiing, camping, and rock climbing with her family.

For a small, fortunate few, their dreams about winning the lottery became a reality. As they spent their money, a few trends emerged.

Real Estate

For most lottery winners, their first big purchase is a piece of real estate (or five!). The allure of a new home is too much to resist, and with plenty of money to indulge, you have the freedom to choose the home that’s perfect for your situation.

Paul and Denise Hardware are an example of the right way to approach buying property. When they won £5 million in 2007, they wanted to secure a solid financial future for years to come. Rather than buying multiple homes for themselves, they bought one residence and several small rental properties. Over time, the income from the rental properties more than replaced what they spent to buy them.

The benefit of investing in real estate is that the assets almost always increase in value, and you have something tangible to show for your winnings. 

Own A Business

When you think, “If I won the lottery…”, you probably don’t envision yourself going in to work every day; however, a significant number of lottery winners wind up doing just that. The difference post-lottery is that they are now the boss.

Nigel Willets took his £1 million EuroMillions winnings and opened the Go Air trampoline parks. Not only does the business give Willets something to do each day, but it also provides a steady stream of long-term income for the lottery winner. Through the success of the business, Willet has been able to create dozens of new jobs and spur economic activity in his home town.

Owning a business is the dream of many a lottery winner, and can be a lucrative way to use lottery winnings to make even more money. Just be sure that your business idea is one that will make money and not form a black hole that drains your winnings.

Donate to the Community

The adage, “It’s better to give than to receive” is not always entirely true: most people would choose to receive a lottery jackpot than to give one to someone else, after all. At the same time, the opportunity to give generously to the community is something most people want to do, though many lack the resources to do so.

John Kutey won a $28.7 million jackpot in 2011. He then took a portion of that money and gave it to his home town of Green Island, New York to build a spray park. The new construction provides a place for local children to enjoy time outdoors, playing in the water, free of charge. The park was built without taxpayer funds and with donations from the Kutey family and local construction companies who wanted to partner on the project. 

Virtually every lottery winner is faced with hundreds of hands asking for money or donations. Making a large gift to your community can eliminate some of those requests because you can claim that you’ve already given back, and don’t need to do so again.

Give to Others

Winning a large lottery jackpot not only changes your life but gives you the financial resources to change others as well. While giving to the community is a great start, there is still so much that can be done to help individual families.

In early 2019, Frances and Patrick Connolly won £114 million in the EuroMillions lottery. When asked by Sky News what they would do with the fourth-largest jackpot in UK history, the Connollys gave an interesting response. They admitted to wanting to do all of the usual things lottery winners do (buy new cars, travel the world, etc.), but they then said that £114 million is too much for any person or family, so they would be giving a large portion of the money away to individuals and businesses in the region.

A few thousand pounds is a small percentage of a large lottery jackpot, but it has the capacity to change someone’s life forever. Random acts of kindness to pay off debts or fund creative/business ventures for young people pave the way for a brighter future for everyone involved.

Everyone who plays the lottery daydreams a little. When you think about how you’d spend your lottery winnings, think beyond just the parties and the “stuff” you can buy. Look at the big picture and understand the good that you can do with a lottery jackpot.

Photo Credit

Photo is pixabay creative commons

Guest Author Bio
Kate Sanders

Kate is an author and admin at Ippio.com, writing useful articles and HOW TOs on various topics. Particularly interested in topics such as Interior design, lifestyle, health, beauty, fashion, technology, and more.

In this article, we are analyzing all details of entering the industry of short-term rentals. We will focus on the required steps to start an Airbnb business, costs, and other resources related to it, as well as how you can make your rental profitable.

Why Should You Become an Airbnb Host?

The majority of hosts might be in it for the money, but starting an Airbnb business has other benefits, too.

Those include:

• It doesn’t have to be a full-time job – you can choose when you want to rent your property, and for how long, which secures flexibility.
• Pick your guests – it is up to you whether to accept potential guests. But if they seem like good people, you might even make new friends.
• Exchange opinions about your city and other topics – it is always interesting to hear tourists speaking about your city. If they are open to talking, feel free to discuss other topics, too.

Steps to Becoming Airbnb Hosts

The first thing to do is to determine the space you will be renting. Will it be a single property or multiple apartments?

Next, you need to acquire all permissions and licenses. That includes Airbnb verification, which is a way of protecting both guests and hosts from frauds, theft, and other potential problems.

Search the local area for similar properties and check out their prices and amenities. You want to ensure that your property is competitive and offers a fair price.

Pay special attention to the property listing, upload high-quality photos, and add an engaging description. Mention all amenities and everything that sets your listing apart from the competition.

Finally, you may consider promoting the listing. Paid advertising might help in the beginning when you still don’t have any reviews.

Costs of Opening an Airbnb Business

Before starting an Airbnb business, you should be aware it comes with certain costs. Your initial investments may include the following:

• Renter service fee – the regulations may require to pay a renter service fee. These are usually between 1-2%, but make sure to check your local laws to learn the exact rate.
• Renter insurance – it is an expense, but many consider it a mandatory layer of protection against things going wrong.
• Getting the apartment ready – you might need to buy new furniture or update the existing furniture. The apartment also needs towels, linens, and other essentials that guests will use during their stay.
• Amenities – a TV and Wi-Fi are considered basics these days. You can also consider other amenities, such as other gadgets, streaming services like Netflix, etc. Some of these come with a recurring fee.
• Cleaning service – you can do this yourself, but you should still invest in cleaning products. Cleaning is another recurring cost because you need to clean the property between visits.
• Taking photos of the apartment – it is always wise to hire a professional photographer to take superb pictures of your listing.

How Much Time Does Hosting an Airbnb Take?

Money should be a top priority, but running an Airbnb also takes time. First, starting an Airbnb business can take days or weeks. While guests are in your rental property, you need to be at their service. Experienced hosts advise to let them know they can call you 24/7. That means you can’t leave town because you need to be ready to come quickly if there are any issues.

Once the guests leave the apartment, you need to clean and get it ready for the next travelers. Although all these things are time-consuming, you will be able to handle them if you optimize your schedule.

Hiring a property management company could save you time as they will handle everything. On the other hand, that will increase your Airbnb expenses.

Another great idea is to take advantage of technology. That involves finding a software solution to automate guest communication, key exchange, etc. Using suitable software can save up to 70% of your time.

How Much Money Can You Earn as an Airbnb Host?

According to Travel + Leisure, earnings can vary from $200 to more than $10,000 monthly. However, the majority of hosts have a $500+ profit each month, which means this can be a source of extra income.

Your earnings will depend on many factors, including:

• Are you renting one or multiple Airbnb listings? The math is simple – the more listings you have, the higher your earning can be.
• Is your property open for renting throughout the year or only during certain months? If you want to maximize profit, keep your rental available whenever possible.
• Is the interest in your rental high? If the answer is no, you may need to adjust the price or work on your marketing strategies.

Conclusion

Starting an Airbnb business will take a bit of time, effort, and money. However, as long as you plan things through, this can become a stable income source. If you see that things are going well, you may even consider becoming a full-time host and maximizing your earnings!

Photo Credit

Photo is pixabay creative commons

Guest Author Bio
Inna Shevchenko

Inna has 10 years of experience in marketing and content writing specifically. Currently, she is the Director of Marketing at iGMS, a short-term rental management software company.

Rising Interest Rates

The Federal Reserve already announced its first interest rate increase in years, and also gave warning to expect three more increases throughout 2017. Rates have been at historic and near-historic lows since the Great Recession hit in an attempt to spur lending and economic growth. Since the economy has recovered to a point the Fed is satisfied with, the rate hike shows they believe that the markets can tolerate higher interest rates.

This move will directly impact the housing market in a number of ways. First, it will likely slow home value increases. Since homebuyers must be approved for a mortgage based on the monthly loan payment amount, the amount they spend on the actual principal will have to be cut to compensate for the extra money they’re spending on interest. This could also lead people looking at houses under budget to perhaps spend a little bit more, which might slow other parts of the economy since that money may be spent on housing instead of other things. Of course, the rate increases are fractional and spread out, so the effects won’t be terribly dramatic, but still enough to slow growth a bit.

Urgency to Buy

However, 2017 won’t be all doom and gloom for homeowners hoping to sell their homes at a premium. Since the rate hikes have been announced and potential buyers know they are on the rise, it could spur an urgency for renters and other homebuyers to make a decision sooner rather than later. If they haven’t already taken advantage of low rates, they know now is the time to lock in before more increases take place.

This is particularly true of Millennials who previously preferred renting to buying. But with low interest rates on mortgages and rent prices on the rise throughout the nation, many younger people are deciding to jump on the homeownership bandwagon. In fact, a survey by Realtor.com revealed that more than half of homes sales in 2017 would be from first-time homebuyers — and the majority of those will be Millennials. It’s an interesting change in the narrative as an entire generation begins a new mind shift in the way they view housing and real estate.

Greater Slowdowns in Larger Markets

While the broader U.S. market will see moderate slowed growth throughout 2017, larger markets will likely have a much more significant slowing of home prices. Cities like New York, San Francisco, and Miami — who have generally seen double-digit growth in recent years — are poised to see continued major slowdowns. These are the cities that saw the quickest recovery from the housing slump since they are major economic centers.

But the effects of a growing economy have finally trickled down to smaller markets, and those are the areas that will see the greatest sustained growth. It’s taken them a while to catch up, but where larger markets are witnessing less of a boom, mid-sized cities with affordable homes for those earning around the median income will become the stars of 2017.

Navigating the New Market

Homeowners and homebuyers alike can benefit from the real estate market in 2017 if they keep a smart strategy. If you’re a homeowner who has been thinking about making a move, now might be the right time. You could potentially sell your house at a premium while still taking advantage of low interest rates before they rise too much.

It’s also an ideal time for refinancing before interest rates get too high. Even if you’re still in a home that you purchased during the housing peak and the value hasn’t reached your loan amount, you can take advantage of the federal government’s Home Affordable Refinance Program (HARP). It was initially set to expire at the end of 2016 but has been extended to last until September 30, 2017. In fact, it’s estimated that at least 300,000 homeowners are eligible for this program. No matter what you choose, make sure you follow the best practices for refinancing to make sure it’s the best decision for you.

If you’re a potential homebuyer, don’t push your housing budget because of higher interest rates. You could become maxed out, especially in the event of a financial emergency like an illness or job loss. In that situation, you could quickly become at risk of going into foreclosure. While there are many ways to get foreclosure help, it’s always best to avoid it at all costs.

Photo Credits

Photo is pixabay Public Domain

Guest Author Bio
Simon Campbell
Simon Campbell has spent over 15 years in all the various facets of real estate including sales, purchases, investment and research. Simon has changed directions and is now sharing his knowledge and experience with others to avoid foreclosure. For more details, check his website StopForeclosuresHelp.

Why Do People Gamble? – Risk Taking

One of the reasons for gambling is that it’s human nature to feel excited when taking risks and the positive feeling gained from gambling is no different. “Will my numbers come up?” “Will my team win?” The sense of anticipation creates a natural high, an adrenaline rush, a feeling that very many of us seek when looking for fun and entertainment. A feeling that some people believe they cannot live without.

Why Do People Gamble? – Escapism

The gambling environment can provide an escape from everyday life. Whether it be the glitzy casino environment, a loud and exciting amusement arcade or even an online betting company, for the time that we are taking part we can be surrounded by different people, different sounds and emotions, all of which stimulate and arouse our senses.

Why Do People Gamble? – Glamorous

The media and advertising agencies understand the psychology of gambling and often portray a stylish, sexy, fashionable image of gambling. In film and TV, we see characters enjoying a night at the casino or an afternoon at the races. There is often a suggestion of ‘high society’ and attending at ‘a place to be seen’.

Why Do People Gamble? – Social

Gambling is accepted as part of this country’s culture and as such is widely participated in (with varying frequency) by the majority of the population. Some young people are introduced to gambling by learning to play card games like poker with their parents at home or at popular online casinos like Royal Vegas online casino. Some start by going to bingo with friends. Others might meet after school at the amusement arcade.

Psychology of Gambling: The Common Misperception

The above reasons for gambling all tie into this: most people think about gambling as a low-risk, high-yield proposition. In reality, it’s the opposite: a high-risk, low-yield situation. The odds always favor the house. Despite that, the thought and excitement of hitting a casino jackpot are often too alluring – regardless of its probability.

Photo Credits

Photo is from Pixabay – CC0 Public Domain

Guest Author Bio

Jacob Urinoff

Jacob Urinoff is a risk management team leader at NetEnt online gaming company

One way that managing things can be made a lot easier is by using business credit cards. Not only does this make it simple to keep track of expenditures but there are also plenty of other solid advantages too.

Good sense

Using interest free periods can be a great help for ‘cash-flow’ problems when you might need to make purchases whilst still waiting to be paid by a client or customer. Various everyday expenses can be turned into reward points just by using a card for business supplies and equipment purchases.

Management of your finances can be made simpler by using the 24 hour a day access to customer service and information about your accounts, giving you a hands-on capability so you know exactly where you stand at all times.

However, using a business card can also give you the opportunity to do some good for other people by making charitable giving an easy and straightforward process.

Donate

With American Express Canada you can donate to charity in a number of ways, and even earn valuable rewards for each dollar you donate when you use an eligible card.

The Members Give system covers a wide range of charities involved in health and human services, education, the environment and much more. In fact you can access over one million worthy organizations online and then choose from several different ways to donate.

You can give to one or more charities and non-profit organizations by donating dollars with your American Express Card in the form of one off sums, recurring donations or spreading out your donation over the year. You can even redeem Membership Rewards® points to make a donation.

Choosing a charity

You can use the online system to search for charitable organizations by name, keywords, location or from an extensive list of popular categories in order to donate to a particular cause. You can also access full financial reports and mission statements to fully understand where you money will go and how it helps those in need.

Benefits all around

Donating online in this way helps non-profit organizations reduce their administrative costs, allowing the money you give to go further.

Of course, your dollar donations are also tax-deductible too.

Photo Credit

Photo is from – The Microsoft Office Clipart Collection

Guest Author Bio
Sarah Jones

Sarah Jones is a freelance business writer and adviser. In Sarah’s spare time she enjoys fundraising for charities and reading.

If you are passionate about travel or get an itch every time you look at pictures of different parts of the world with fire and intrigue in your eyes, and you are broke, here are 7 tips that will help you!

1. There are never boring places, only boring people.

So be very selective about your attitude on a trip and the people you choose to bring with you. You might have to leave one of your best friends at home. After all, you more than anyone knows he/she is a pain in the ass..oh well…trips costs too much money for you to be miserable while you’re away from home.

2. Don’t be as concerned about where you are going as getting the best deal on a flight.

It’s the places that you never expected to go that can be the greatest adventures. Be open to really seeing the world and this attitude will allow you to see a lot of it. The fact is, when you go on a trip more than likely you are going to end up spending more money than you thought you would so at-least make sure the flight is as cheap as possible to offer you more flexibility on the ground.

3. Do your research before you leave your home country.

People always like to boast about being adventurous, but living the broke life just doesn’t allow for you to throw money around like that. Figure out ahead of time how much the taxi should cost from the airport to your hotel because most likely the cab driver will try to hustle you with a ridiculous price. Find out about public transit and use it. Most cities that are attractive to tourists there will be decent and reliable public transit.

4. Don’t be scared to wander off.

Brave those unknown beaten paths or take side trips because that’s where you might see the most interesting things. That’s how you’ll learn what the native people actually do, what they eat and how they live. The locals might end up knowing of a gem in the country that you never heard of. Eat like a local….it will always be much cheaper and probably better quality than in touristic places. For example, you go to Spanish speaking country but there are only English speakers in the restaurant – turn around and leave. Guaranteed there is somewhere less expensive (and tastier) to eat not too far away. Use your common sense and wits….when you’re dealing with people you don’t know it’s no time to act dumb!

5. A good night’s sleep costs money.

This one is probably going to make me sound boogie and maybe a little different than what you would expect from my cheap ass.. But here it is: it’s important to feel comfortable where you lay your head down at night, even if it costs a few extra dollars. Three star is not the same in every country, and if you have travelled enough you know that already. Make a realistic budget about how much you are willing to spend on accommodations and what you need to be comfortable (hot showers and clean water is important). Book hotels and hostels on sites with customer reviews. Location and comfortability are the two most important things to consider when organizing travel. It’s the worst thing to be walking all day and not being able to sleep at night because you’re scared of cockroaches climbing into bed with you.

6. Bring your walking shoes.

A lot of great cities have amazing places to see that are easy to walk to. Walking saves you money and allows you to find the in between places that can be so interesting. Without knowing you can find yourself at other great sightseeing places you never thought you would find or discover places you never knew existed. If you can’t afford all the museums, think of the country itself as a museum where everything is new to you and important to see, that way you won’t feel like you missed out as much.

7. Start saving for that next trip…now.

Start a travel savings account and work extra hours just for travel. It’s hard to shake off the travel bug so keep it as a healthy part of your life!

Photo Credits:

Traveller by Sergio Bertolini.

World Traveller and his Serious Knife by Martin Sharman.

Walking shoes by Henry Bucklow.

All via Flickr Creative Commons. Some rights reserved.

 Guest Author Bio

Keithan Alexis
I am a broke Toronto based University graduate who started blogging initially as a way to release some of my own stress. I soon realized how much people were not getting relatable honest opinions from young people that wasn’t about selling any products.

Blog / Website: http://kthatslife.blogspot.ca/ 

• Pyramid letters requesting me to send money to people on a list, including the sender, and to disseminate the letter to friends and family requesting they do the same. The letter is always accompanied by statistical data showing me how I’m going to become a millionaire. These letters are illegal in Australia and don’t result in instant riches.

• A letter from Nigeria saying I had a dead relative that had left me an inheritance and all I had to do was pay an administration fee and I would be rich

• An email through Facebook saying a friend travelling overseas was in trouble and needed my financial help. Fortunately I had heard of this scam.

• Emails supposedly from my bank saying they needed to update my personal details. Luckily the logo was from a bank I had never held an account with. Subsequent emails came from other banking institutions which was quite amusing.

• When I was a teenager, in the pre- Internet days, I had a pen pal in Ghana. Not long after we started sending letters to each other he told me he collected coins and asked me to send money for his collection. This was disappointing to me as I knew instantly this person wasn’t interested in a friendship but rather in what he could get out of me.

• A telephone call from someone claiming to be a Council representative asked me questions about my home security. I hung up very quickly.

Scamming is so prevalent in Australia that our federal government has published a booklet called The Little Black Book of Scams warning the community of these dangers and have set up a website, www.scamwatch.gov.au, to alert people to the most recent scams.

The booklet lists the top ten scams

1. Advanced fee scams, such as the fake inheritance scam and the rewards for transferring money scam. If you’ve never heard of a relative it’s not your relative and “transferring money” is actually illegal laundering.
2. Lottery, sweepstakes and competition scams. Remember, you can only win a competition if you have actually entered it. These scammers request a fee or personal details.
3. Dating and romance scams. Someone may befriend you online and then pull at your heart strings, telling you they need help because they’re sick or have problems, and request money. Never disclose to anyone your financial situation and be sceptical of people that don’t want to meet in person and send overly romantic emails when they haven’t even met you. Beware of anyone that offers to take you on a holiday as you may be used as a drug mule.
4. Computer hacking. Don’t click on online links in emails from unverified senders as you may be giving hackers access to your computer files and information stored on your computer such as your bank details. Keep firewalls and antivirus software up to date. Beware of phone calls from people claiming to represent Microsoft telling you your computer is infected. They are trying to gain access to your computer. Use secure payment sites and don’t put banking and other personal details on your computer.
5. Online shopping, classifieds and auctions scams. A colleague was recently scammed through eBay. Fortunately, they had paid via PayPal and got their money back. I have heard of people that have bought something online only to be sent a picture of the product or a very small version of it.
6. Small business scams. Many years ago a business tried to charge my business for advertising we didn’t approve. What they actual did was photocopy my business partner’s business card which they had somehow obtained and published it in their newsletter. False invoicing is common and all businesses should audit any bills. Domain name scams are also common.
7. Golden opportunity and gambling scam. Beware of investments that offer exceptionally high returns. They may be using other people’s money to pay your return initially and charging you exorbitant fees. Eventually this will come unstuck as new investors demand a return. Prediction software is a scam. Why would someone share their secret with you? They make money from conventions, not the product they are selling.
8. Charity and medical scams. Miracle cures, easy weight loss plans and fake charities: I’m sure we’ve all heard of these. They prey on the vulnerable who are desperate for treatment or on those with kind hearts.
9. Banking, credit card and online account scams. Phishing scams, card skimming, and strangers using your credit card details online. Always check credit card statements, ring your bank if your receive requests for details online and be careful using ATMs.
10. Job and employment scams. Work-from-home scams offering big bucks may offer big disappointments.

Of course it is embarrassing to admit you’ve been scammed but this is what the scammer counts on. If you don’t report the scam to crime authorities other will be scammed too. If you publicise the scam you are protecting others. No one is safe from scammers or immune to falling prey. We all have to take steps to reduce our risk even if that requires us to be less trusting. Remember if it sounds too good to be true it probably is.

Image Credit

“The scam truck” by jepoirrier. Creative Commons Flickr. Some rights reserved.

The situation is slowly coming back to normal – whatever that means –, but a question remains: is real estate a good investment or is it not? Many people decide to stick to renting and avoid the financial risks of ownership. Are they right? Should you buy or rent your next home? Here are four tips that will help you make your decision.

Tip #1: Check How Real Estate Is Doing in Your Region

When you take a first look at the real estate market, it can appear confusing. Experts are contradicting each other, some saying real estate is doing bad, while others are assuring us that it is doing well and now is the time to buy something. Truth is, the real estate market is complex, its fluctuations are hard to predict and no overall statement can be made about its evolution without the chance to be proven false.

The real estate market situation varies from a country, state, province and city to another. So before you make a decision, try and take the pulse of your region. Some cities in Canada, for instance, are notoriously overpriced, like Vancouver (average price of a home as of January 2012: $752,000). Same thing in the United States. The average price of a home in New York is $6,400,000. Chances are, an investment in those markets right now would not be profitable in the long term, for there’s strong possibility that prices will go down.

Tip # 2: Calculate the Real Costs of Buying

A common saying is that, at least when you own your place, the money you put in it every month is not wasted: you will get back if not all of it, at least a part of it the day you sell.

This is not completely true. There are many expenses that come with ownership, money you’ll spend and never see again. We’re talking about taxes, interest on your loans, condo fees, maintenance fees, and homeowner insurance. Don’t just jump feet first into ownership thinking every dime you’re going to put into your home is going to come right back at you, because it won’t.

Calculate the expected expenses of your future property, and compare them with the amount you spend on your rent. You’ll see if the deal is truly worth it.

Tip #3: Make Sure You Buy a Unique Property, That Will Gain Value Over the Years

Shop intensively for your home and look for a place that’s unique. While this might sound easy to say, it is doable and very important. You’d be surprised by how some people don’t look long enough for their home and, most importantly, don’t think long term and buy only for the sake of buying, thinking that whatever happens, they’ll make a profit when they sell. Not only is it not true, but chances are you might even lose money when you sell a property that hasn’t been carefully chosen.

So look for rare things: a house with a yard in an urban area, one of the top floors unit of a condo tower, a cottage next to public transportation and public market… While those properties might be more expensive than the others, there’s always a chance to come across deals when you allow a sufficient amount of time for shopping.

Tip # 4: Think Long Term

Last but not least, this tip sums it all up. The key to a good real estate investment is to think long term. The longer you keep your property, the more chances you have to make a profit in the end. That’s one thing on which most experts agree. So if you have the intention to buy a house only to sell it back in a few years, don’t bother buying and stick to renting. The associated costs (bank fees, notary fees, real estate agent fees, taxes and so on) can be significant such that there’s only a slight chance you might make a profit at all.

If you already have a house and want to buy a new one, consider keeping the old house and renting it. If your credit margin and your financial situation allow such a move, it is definitely profitable.

For some people, buying real estate is not only about making a profit: living the owner life is appealing, no matter what the costs are. So, if your are one of those people who is eager to taste the joys of owning a home, and your financial situation allows you to do so, maybe you should just go for it, even if there’s no major profit ahead. But remember to buy clever to ensure you minimize any potential losses!

Photo Credit

The Microsoft Office Clip Art Collection

Guest Author Bio

Mireille Mayrand-Fiset
Mireille Mayrand-Fiset is a theater, music and travel enthusiast. Apart from working as a freelance blogger for www.toutsurmoncondo.com, she also writes for stage and television.