What's next in the housing market? The Bitcoin halving!
Want to get RICH in the next 3-5 years? Student Loan debt
Money Mindset
👋 Hello Everyone.
Starting a New Business and looking for a Partner? Below are the 5 things you should consider prior to bringing them on - and remember a partner is like a marriage so you have to get this right!!!
When looking for a partner for your new business, it's crucial to find someone who can 1) compliment your skillset with a their own, yet varied skillset, 2) shares your vision, and 3) can contribute to the success of the venture via capital or connections. If they don’t bring all or part of these three traits then they likely are not a good match
Here Goes:
Shared Vision and Goals: Ensure that your potential partner shares the same vision and long-term goals for the business. Alignment in values, mission, and objectives is essential to avoid conflicts and keep everyone focused on achieving the same outcomes.
Complementary Skills and Expertise: Look for a partner who brings skills and expertise that complement your own. Ideally, their strengths should fill the gaps in your abilities, creating a well-rounded team that can tackle various aspects of the business effectively.
Commitment and Work Ethic: Choose a partner who is committed to the business's success and is willing to put in the necessary time and effort to make it work. A strong work ethic and dedication are crucial qualities for any business partner.
Trust and Communication: Building a business partnership requires trust and open communication. Look for someone you can communicate with effectively, discuss ideas openly, and trust to make sound decisions in the best interest of the business.
Financial Compatibility: Discuss financial matters upfront to ensure that you and your partner are on the same page regarding financial contributions, profit-sharing, and investment commitments. Financial compatibility helps avoid misunderstandings and disputes in the future.
Forming a business partnership is a significant decision, and conducting due diligence in selecting the right partner can greatly contribute to the success and longevity of your new venture.
📣 What is the BITCOIN halving and why is it important??
The exact date of the Bitcoin halving in 2024 is projected to be around May 5th, 2024. Dates may change but this timeline is very important as in past halving events prices of Bitcoin had swings to the downside prior to the halving and large upswings thereafter. So its time to pay attention and really consider where you stand on Bitcoin and crypto in general so you can execute on the plan the suits you. Ok here are the takeaways.
Top 5 Takeaways for the Bitcoin Halving in 2024:
Halving Event: The Bitcoin halving is a pre-coded event that occurs approximately every four years (or every 210,000 blocks). During the halving, the block reward that miners receive for validating transactions is reduced by half. In the 2024 halving, the block reward will decrease from the current 6.25 bitcoins per block to 3.125 bitcoins per block.
Supply Reduction: The Bitcoin halving has a significant impact on the cryptocurrency's supply rate. With each halving, the rate at which new bitcoins are created decreases, leading to a reduction in the inflation rate. This controlled and predictable supply reduction is one of Bitcoin's fundamental features and contributes to its scarcity and potential value appreciation over time.
Scarcity Narrative: The halving reinforces the scarcity narrative associated with Bitcoin. Similar to precious metals like gold, Bitcoin's issuance rate decreases over time, making it a deflationary asset. Many investors and proponents compare Bitcoin to digital gold due to its limited supply and store-of-value characteristics, which attracts long-term investment and hedging against inflation.
Mining Economics: The halving has significant implications for Bitcoin miners. With the block reward reduced, miners' revenue from newly minted bitcoins is halved, affecting their profitability. This can lead to adjustments in mining operations, with less efficient miners potentially facing challenges. However, a halving event can also drive up the price of Bitcoin due to increased demand and reduced supply, which can offset the revenue reduction for miners.
Market Speculation: The halving is widely anticipated and discussed in the crypto community, leading to increased market speculation and price volatility around the event. Historically, Bitcoin's price has experienced significant price movements before and after halving events. Traders and investors closely monitor market sentiment and historical patterns to make informed decisions during these periods.
Subscribed
🎙️ I am also really excited about how quickly the podcast has grown. So thank all of you that have downloaded and given it a listen. We have climbed the charts very rapidly and we are currently ranked #6…For those of you that have not stopped by it is the Rich Habits podcast on Spotify and Apple. And please feel free to DM me or message on any platforms and let me know your thoughts and takeaways.
For all PAID community members please note that the private livestream is now being held on ZOOM and its awesome. It is scheduled every Thursday @ 7pm EST. This is so exciting and will add so much more personal/community interaction. So buckle up and let’s have some fun.
💸 Do you want to get Rich in the next 3-5 years? Here are the top 3 things I would focus on to make it happen - And I mean GO All-In!!! (This section is for those that simply desire the speed and have the tolerance for high risk-high rewards).
AI - With the explosive growth of AI comes a ton of financial opportunities. The services based portion of AI is a gold rush right now and you should be all-in learning and finding your niche. AI services are highly profitable - think video editing, thumbnail creation or copywriting. Pro Tip - Drop Servicing. Promote your services, build a customer base and outsource it through AI and online providers and mark it up for your profit.
Crypto - I know a ton of people have been turned off by crypto but there is still a ton of wealth to be made over the next few years. With the favorable XRP verdict and the assumed BlackRock Bitcoin ETF approval - crypto is on the verge of another great bull run. As always I would be dollar cost averaging into Bitcoin, Etherium, Polygon and Chainlink but also watching the ISO2022 coins closely.
Web 3.0 - This is still so early on - You could be up and running and crushing it within a year. Jobs like blockchain developer, smart contracts developer and DApp developers are all in need and the space is going to continue to grow as blockchain and crypto adoption continues!!!
So if you are hungry to get rich quicker these are the 3 strategies I would focus on! I personally prefer a less risky approach to wealth building but this is a strategy that can work to help accelerate your growth if you are willing to really focus and become an expert in the niche you choose.
😭😭 Whats Next in the Housing Market - And is it a good time to buy? Below are some takeaways:
Housing market activity remains weak overall, thanks to high mortgage rates, elevated home prices and constrained housing inventory—a trifecta of headwinds perpetuating the housing affordability crisis. So that begs the question - to buy or not to buy. I think it is all buyer dependent.
What is your current situation and reasons for buying? Is it for an investment - then the timing might be just right for you. Is it for a primary home - I would say waiting might be better. But always consider that with less competition you might be able to buy that craftsman you have had you eye on for years. And rates inevitably come back down so you can always refinance when the timing is right.
RECENT NEWS: Following a surge in the first week of June, mortgage rates wobbled in a narrow range as Federal Reserve policymakers voted to hold off on raising the federal funds rate at its June meeting.
The decision to pause broke a rapid 15-month rate-hiking streak the Fed unleashed to rein in runaway inflation. The federal funds rate is the rate financial institutions lend to each other overnight.
Even so, mortgage rates remain high partly due to the central bank’s aggressive series of rate increases. The federal funds rate hovered near zero in March 2022 when the Fed began raising rates. The rate range is now 5% to 5.25%. A Fed rate hike indirectly impacts long-term home loans, such as 30-year, fixed-rate mortgages.
The Fed doesn’t plan to stop there, revealing new projections that the rate could go as high as 5.6% by the end of 2023. The Fed is expected to raise its benchmark interest rate again at its July 26 meeting.
In prepared remarks to lawmakers during his Semiannual Monetary Policy Report to Congress, Federal Reserve Chairman Jerome Powell testified that the Fed’s process to get inflation down to its 2% target goal still has “a long way to go.”
Nonetheless, perpetually-high home prices, combined with mortgage rates holding steady well over 6%, and short supply have drastically weakened the housing market but that does not mean you shouldn’t buy. Just always DYOR and make sure to fully run the numbers to make sure it’s the right time for you.
🤔 What is the difference between subsidized and unsubsidized interest on Student Loan debt - and what are the takeaways you need to know?
The main difference between subsidized and unsubsidized interest on student loans lies in how interest accrues and is handled while the borrower is in school and during certain periods of repayment. Here are the five takeaways:
Subsidized Interest:
Subsidized student loans are need-based loans offered to undergraduate students with demonstrated financial need.
The U.S. Department of Education pays the interest on subsidized loans while the borrower is enrolled in school at least half-time, during the grace period (usually six months after graduation), and during authorized deferment periods.
Borrowers do not accrue interest on subsidized loans during the periods mentioned above, which helps keep the overall loan balance lower.
Subsidized loans are typically more favorable for borrowers with financial need, as they offer a temporary interest subsidy that reduces the overall cost of borrowing.
Unsubsidized Interest:
Unsubsidized student loans are available to both undergraduate and graduate students, regardless of financial need.
Borrowers are responsible for paying all the interest that accrues on unsubsidized loans from the time the loan is disbursed, including while they are in school, during grace periods, and during deferment periods.
Interest on unsubsidized loans starts accruing immediately after the loan disbursement, and any unpaid interest is capitalized (added to the principal balance) when the borrower enters repayment.
While unsubsidized loans provide more flexibility in eligibility, they result in higher overall borrowing costs due to the interest that accrues throughout the life of the loan.
Borrowing Limits:
The maximum annual and aggregate borrowing limits for subsidized and unsubsidized loans differ based on the student's academic level and dependency status.
Subsidized loans generally have lower borrowing limits since they are intended to assist students with financial need.
Need-Based Eligibility:
To qualify for subsidized loans, students must complete the Free Application for Federal Student Aid (FAFSA) to demonstrate financial need.
Unsubsidized loans do not have a need-based requirement, and students can receive them regardless of financial need.
Interest Subsidy Duration:
The interest subsidy for subsidized loans ends once the borrower is no longer enrolled at least half-time or when they exhaust their maximum eligibility period (usually six years for undergraduate students).
Once the borrower loses the subsidy on a subsidized loan, it converts to an unsubsidized loan, and they become responsible for all accruing interest.
Understanding the difference between subsidized and unsubsidized loans can help you make informed decisions about borrowing and repayment plans. In light of the new wave of loan relief it is important to know your options and what might be available to you.
👂👂 Will FedNow Replace Cash? And will FedNow create a digital currency?
The simple answer is No. The FedNow is to be viewed as a platform that will aid in speedy transfers online similar to current popular money apps transfer funds. The promise of FedNow is that it will happen between banks quicker - not like it is currently. We all know the drill. Do a wire and wait sometimes 3 days for it to clear to the recipient.
As far as the FedNow creating a CBDC those claims seem to be false or at the very least off in the distant future. The quote I read was”The FedNow service is neither a form of currency nor a step toward eliminating any form of payment, including cash”.
So only time will tell but for now our crypto and cash seem to be safe. I will monitor this daily for all of us and you should to.
Weekly Book Excerpt (“The philosophy of the rich and the poor is this - The RICH invest their money and spend what is left. The POOR spend their money and invest what is left”) Rich Dad Poor Dad by: Robert Kiyosaki
I would even take this one step further - Most people simply do not even begin to invest or ever truly make the time to create a wealth building strategy. That ends with anyone that follows along with me. I am here to help guide and create Rich Habits so everyone following along finds their way to financial freedom.
Money Mindset - Weekly insights
Have you tried Acorns yet. I know you all have heard me talk about this awesome platform for years but now I am officially working with them and I couldn’t be more excited. If you haven’t used Acorns yet its a must in your wealth building journey. Even if you use it just for the roundup feature.
How it works - You simply attach your bank account and set the rate of risk you want in your portfolio and Acorns does the rest by rounding up your daily purchases and investing those funds. It’s such a great investment tool because it is automated and just a few cents at a time. It’s like found money.
Brand of the month - Dun & Bradstreet
I am excited to add Dun & Bradstreet to my portfolio of companies that I proudly represent. A DUNS number is so important to the success of your small business. So if you have not applied for one please read up so you can understand the importance of it. Please use the provided link so you can check out all the amazing benefits for your company -
D&B link
Thanks for following along. See you soon!