Magical Penny

In “A Random Walk Down Wall Street” Princeton University professor Burton Malkiel claimed that a blindfolded monkey could do as well as the professional traders in selecting an investment portfolio. This theory was put to the test by Research Affiliates where they randomly selected 100 portfolios of each containing 30 stocks over a period of 1964 to 2010. This stimulated the “monkeys” randomly picking their stocks. The result was that these randomly selected portfolios outperformed the market index by 1.7%, hence beating the “professional” traders. The “monkeys” not only performed as well as the traders, but they also beat them! That might be an excellent endorsement for getting a monkey to deal with your financial investments from now on! Before you do, however, you might need to continue reading.

Smaller Stock is Both Riskier & More Rewarding

In analysing the results of the experiment, the researchers found that the reason why the “monkeys” outperformed the traders was mostly due to inclusion of smaller stocks as in stocks for lesser-known brands than the usual global stocks. When people select stock, they rely on a more significant portion of investing in larger, well-known companies. 

When chosen randomly and without the knowledge of which stock belongs to which big brand, the portfolios contained a more significant proportion of smaller stocks. Herein lies the connection with outperforming the index. As smaller stocks have higher yields, they also have a higher risk profile. Where larger companies can be relied on for continued business and stability, the yields will be lower. 

Smaller stocks don’t have that security and therefore will deliver better value when they pay off. In short, in selecting a riskier portfolio for the years between 1964 and 2010, an investor would have beaten the regular market returns by 1.7% on average.

Our Own Bias

The “monkeys” randomly selecting stock is a great way at looking at your own investment behaviour and will give away what kind of risk profile you should take on when investing. If you can afford it and are looking for bigger yields, you should be willing to take risks. When you are risk-averse, you should pick larger stocks of well-known brands or invest in bonds altogether. 

This all seems quite straightforward, but the issue is that we mostly live in a bubble of our own making. What’s a low-risk portfolio for you might be something of extreme risk for another. It’s essential to be able to take a few steps back and put everything in perspective. What’s important to consider is that some of these risk-appetite is culturally defined. FreeBets has a great infographic showing you which countries bet the most. And you can take betting as an indicator of who is willing to endure a more significant risk appetite. 

Take this into consideration and taking the emotion out of investing (i.e. don’t invest in a company just because you like their products) will serve you well in creating a better portfolio. That’s not to say that you can’t make moral choices to not invest in things you consider unsustainable companies such as oil and weapons manufacturing. Actually, environmentally & positive sustainability companies have shown great returns in the last few years, so it makes great investment sense.

{ 0 comments }

If you’re looking at selling your property and you don’t know where to begin then don’t worry, you have come to the right place. Whilst it may seem difficult, to begin with, there are lots of different things you can ask yourself to ensure you’re making the best possible choices. From choosing the right estate agents to knowing how to set the right asking price, you need to ensure you’re doing what is best for you. With that in mind, here are five things to consider before selling your house: 

What Estate Agent Will You Be Using?

One of the first things you need to decide is what estate agents you’re going to be working with. Although there are going to be various different options available to you, you need to be sure you’re choosing the best possible property manager for you. 

Whether this means they take the lowest percentage of they offer the most support, it’s important you’re doing your research. For tips and tricks when it comes to finding the perfect estate agents, you can visit this site here. 

Do You Have An Asking Price In Mind? 

Another important thing to consider is whether or not you have an asking price in mind. Although you may already have a rough idea of what you want your property to sell for, you need to be sure you and your estate agent are on the right page. In most cases, they will be able to offer you advice when it comes to setting your asking price. 

Are There Any Home Improvements You Need To Do Before You Put Your House On The Market?

When it comes to putting your house on the market, you need to ensure you have done all of the necessary work that needs to be done. Whether that means renovating the garden or repairing the roof, the more you do the easier it will be to sell. Whilst it may take some time to get your home ready to sell, it will definitely be worth it when it finally comes to putting it on the market for the first time. For tips and tricks when it comes to getting your home ready to sell, you can visit this site here. 

Do You Have A Date You Need To Sell By?

Another important thing to consider is whether or not there is a specific date you need to sell your home by. Although you cannot guarantee you will sell your home by this date, it is definitely something you need to discuss with your estate agent. 

Do You Have A Contingency Plan? 

Finally, you need to ensure you have a strong contingency plan in place. If you don’t sell your house by the date you had in mind, what will you do? If you’re worried, it might be worth speaking to a professional to ask their advice. 

Are you looking to sell your property soon? What do you need to consider beforehand?  Let me know your thoughts and ideas in the comments section below. 

{ 0 comments }

In Elbow Lake, Minnesota, a homeowner stumbled upon a surprising discovery during the remodelling project of his 1938-built house. He discovered an original 1938 copy of the Action Comics. The comic book sold at an auction for $175,000 – that would be around £142,000, which is a pleasant surprise! 

Admittedly, this is not to say that you might find priceless treasures in your home, but there’s a lot more value under your roof than you might at first suspect. If you are in no rush to sell your property, there are still plenty of options for you to maximise its hidden value and make money on the side. 

You can free up some cash

If you’ve had your mortgage for a few years, chances are that your credit score today is not the same as it was when you first applied for a loan. Additionally, there might be new opportunities on the banking market that offer a better rate than your existing mortgage. In other words, it’s always a good idea to consider your remortgage option after a few years. Most homeowners can switch to a better rate and save money on the full payment process. Typically, you will have a high standard variable rate that can apply if you’re trying to switch your mortgage earlier, but it’s something you can discuss in-depth with an experienced adviser before making your decision. 

Get rid of everything you don’t need

Everybody hates clutter, however, we all accumulate things we don’t want or need! Months after months, years after years, your living room, bedroom, and garage are filled with objects and gadgets you don’t need. Not only clutter affects your mental health, but it also transforms your perception of space. The room feels a lot smaller as a result. There’s an easy way out: get rid of everything you don’t need. Marie Kondo, the queen of decluttering, describes it as removing items that don’t spark joy. But, what she forgets to mention is that you could make money by reselling your old stuff – if it is in decent condition. 

Airbnb is your best friend

Your spare bedroom is full of surprises. Indeed, have you considered renting out a spare room inside your home? With the rent-a-room scheme, you can earn up to £7,500 tax-free, using a popular renting tool such as Airbnb. You can also choose to advertise your room privately, aka in the local newspaper or via Gumtree for instance. However, Airbnb is by far the most profitable and sustainable option, as it gives you insight into your guests’ profile! 

Do you live in a picturesque area?

Depending on your interior style and your location, you might even want to consider registering your house as a filming or photo shoot place. You can discuss the fee directly with the filmmaker – or let a specialist agent handle the matter for you – which means that if your house is picked as the set for an expected blockbuster, you can expect a very generous offer. 

In conclusion, there is a lot more value in your home than you might think. While you might not become a millionaire overnight, you can certainly make some money on the side by managing your house value, features, and location effectively. 

{ 0 comments }

There are a lot of things in life that can be the cause of a lot of stress. From work to family to even trying to keep up some kind of social life, it often feels like the modern world is designed to be as stressful as possible. 

However, there’s one thing that causes more stress for a lot of people than just about anything else. That thing is, of course, money. Most people find that their finances are constantly hanging over their heads no matter what they do. This is especially true when you’re stuck having to make a larger purchase for one reason or another. However, there are ways you can make things easier. Here are just a few ways to deal with those big life purchases.

Save your money

The best thing that you can do when it comes to any kind of large expenses is to make sure that you have a financial safety net in place. That way, even if you have to spend a lot of money at once, it’s not going to impact your general financial position too badly. A lot of people assume that they can’t save money unless they’re already in a totally comfortable financial position but that’s not the case. Even if you’re just putting away a tiny amount at a time, being able to save any amount of money is going to make your life a whole lot easier.

Find the best deals 

Just because you’re having to spend a large amount of money doesn’t mean that there aren’t things that you can do in order to bring the cost down somewhat. Looking for the best possible deals for things like a home, energy bills, or a car is one of the best things that you can do. Places like Motormill can help you find high-quality used cars at great prices, taking at least some of the stress out of buying a car. Don’t resign yourself to spending more than you want to just because you think that’s the way things have to be.

Be careful with credit

Credit can be an incredibly valuable thing. From finance deals on cars to using a credit card to pay for certain things, it can both help you stay financially solvent and help build up a valuable credit rating. However, you need to be careful with credit wherever possible. Otherwise, you could end up drowning in debt and just making your entire financial situation far worse than it was in the first place.

Even people who are somewhat careful with their money make one incredibly significant mistake: they often find themselves ignoring their finances whenever they can. This is understandable since you don’t want to spend all of your time thinking about money. However, if you’re hiding from your bank balance then you’re just going to end up in a situation where you’re not fully aware of what you’re spending or what you have left which is going to cause some serious problems down the line.

{ 0 comments }

Whatever kind of car you drive, you can be sure that it is one of those things which has the real potential to cause you financial trouble. This is something that is true for anyone who has a car, and yet you will need to try and work out a way that you can deal with it if you hope to make your finances a little better. There are many approaches you can take towards this, but one of the most important is to do whatever you can to keep your car running and on the road for as long as possible. That is in itself a strong financial act to take, so it is clearly a good idea and highly beneficial, but how can you make sure that you actually do that? As we will see, there are a few things to consider.

Regular Servicing

All cars need regular servicing, and if you are to make sure that you keep your car on the road then you will definitely need to think about this. With regular servicing from somewhere like https://www.georgesonscars.co.uk/motandservicing.php, you should find that your vehicle runs better, is considerably less likely to run into any problems which would cost you later on, and will even be more efficient to drive, making it cheaper in that way too. If you are not sure about paying money upfront for servicing, just remember how much money you are almost certainly saving in the long run. It is absolutely worth your while, in fact it is just about the most cost-effective way of keeping a car.

Driving Well

The way you drive your vehicle is obviously going to have an impact here too, and that is something that is worth looking into in some detail. Take a look at https://www.idrivesafely.com/ for more on driving well. By ensuring that you drive well, you are making it much less likely that you will crash your car or cause it damage, both situations which would mean you are out of pocket. It will last longer as a vehicle, and therefore cost you a lot less overall too. Do whatever you can to drive as carefully as you can at all times, and you should be able to make a difference to your finances.

Focusing On Efficiency

The more efficiently run your vehicle is, the less wear and tear it goes through. That means you won’t be taking it to the garage too often, which is obviously going to save you money, perhaps thousands throughout its life. You will also find that you save money on fuel by the simple fact that it is being used efficiently. You can make sure of this by driving in such a way as to reduce fuel usage, and by ensuring that you buy a car in the first place which is efficient. That is going to help you keep your money in tact for much longer, and much more easily. Clearly, it is worth doing so for that reason alone, and it’s something you can do easily enough.

{ 0 comments }

It’s fair to say that every single person on the planet wants to be wealthy or to have enough funds in order to be comfortable in life – comfortable might have different meanings depending on who you talk to, of course! Whether you love or hate the current system in place, the fact is that money controls everything we do, so we need to have as much of it as possible. The problem? It’s pretty hard to come by if you’re not the savviest in terms of business or enterprise.

If you want to make some money, you have to put in the effort and really create an income off your own back. Nobody ever went from the bottom to the top without putting in a shift. Some may have been born into wealth, but in order to maintain it, they need to work hard and know what they’re doing. If they don’t do these things, they’ll probably throw it all away somehow. 

Wanting to work hard, wanting to have lots of money, and wanting a business are all easy to do. What’s more difficult is finding the motivation for it all. If you feel as though things are going to be difficult and hard to reach, then it’s easy to quit before you’ve even started and choose an easier life. Do you want to become more motivated, and do you want to have a lot more money in your account than at present? I bet you do. Here are a few ways you can find and keep that drive: 

Create Goals And Write Them Down  

Everybody has a goal or two in their life. They might be something small and doable, or they might be huge and long-lasting. Whatever the challenges are, they all become a lot more important when they’re written down. That kind of written confirmation almost brings them to life. When they’re stuck exclusively within your thoughts, it’s easy to palm them off and never really chase them. If they are on a piece of paper, your computer screen, a mirror, or a wall, then they’re alive! You could also post online about your goals. This would make you motivated because you’ve literally just told the general public about what you’re planning on doing! You won’t want to give up or fail!

Think About How The Past Decade Has Gone  

If you’ve been working away for a while to no prosperous avail, then you can use the past to drive you on. Do you want another decade of the same income and the same lifestyle? It is okay if you do, but an ambitious person won’t stand for that. They’ll want to improve year on year! When you look back at the past, do you best not to get down or be disheartened. You should use it in a positive light. 

Watch, Read And Listen To Motivational Content

There is a lot of content online regarding motivation and driving people. If you need that boost of adrenaline or a different perspective, then YouTube has more than enough material for you to indulge in. You could also read articles on blogs that have been written by experts and those with all the experience in the world. Podcasts have become very popular in the past five years or so; listening to a money-making pod while you work or while you travel might be a nice idea. 

Look At Potentially New Homes 

Something that really makes people excited about earning money is the lifestyle that they might potentially have. Head online or walk into an estate agents and talk to staff about different houses that are on the market. You obviously won’t be buying, but the knowledge in terms of what it takes might give you a real boost. Even walking by big, stylish homes on a hilltop can give you all the motivation in the world!

Begin A Project  

Just start something. Obviously, a business would be a more convoluted set of tasks, so you can’t just begin it and make money out of it, but other side hustles can be monetised pretty quickly. Blogging, buying and selling, freelance work – these are all ways you can make money. When you start to make a little more; you end up getting even more motivated to make even more money! It becomes something akin to an addiction when you see the money go up.

Look At Your Finances 

Every smart individual tracks their finances every week/month in order to avoid any problems. But you could also keep an eye on them in order to boost your own motivation. Seeing a relatively small number next to your incomings on your finances can really give you the drive to improve it.                                                            

{ 0 comments }

A rainy day is something which we are all about to get used to in the winter months. Summer is now over and most of us will be stuck in the house or will have to find things to occupy ourselves and the kids indoors. 

But if you want to save some money and ensure that you still have fun this weekend on a rainy day, there are some cheap ways to have fun at home and spend the days. 

Whether you decide to play eurocasino bonus online for the afternoon or have a home pamper session, we have some great ways to spend a rainy day which won’t cost the earth and might even be much more fun! 

A treasure hunt 

If you have kids you will know how hard it can be to entertain them in the rain. This is why an indoor treasure hunt could be the best idea you have all week. A treasure hunt in the house is always a great way to spend a few hours and you can download treasure hunt clues from online to send your kids on a wild goose chase around the house for ages! You can get some treats ready as a prize at the end and this can be a good way to spend some time when the rain is pouring down. 

Have a bath 

When the rain is pouring down outside and it is cold and miserable all around, what could possibly be better than being able to soak your body in a warm, cosy bath? On a rainy day why not make the most of the chance to relax and set yourself up a bath? A perfect relaxing bath can be made up of a bubble bath, bath bomb, some music or tv on your laptop, and a few candles. Spend an hour watching your favourite show with a glass of wine while you soak in the tub and enjoy not having to go outside. 

Make a recipe book 

Every family has their own recipes which they accumulate over the years and these recipes are often stored only in our memories. This is why it is a great idea for you to write your own recipe book when the weather is rainy and dull outside. Put on your favourite cooking show to get you in the mood and write down some of your classic family recipes which you want to share with the rest of the household. This can be surprisingly helpful because you will not only spend some time, but you will also allow other members of the family to make your famous dishes when you aren’t at home! Double whammy! 

Camp in the Great Indoors

Who said camping had to be outside in the woods by a campfire? What about inside the house, gathered around the gas job with some skewers and marshmallows? In all seriousness, if you have a whole day to yourself and you aren’t sure what to do with your time, one thing you can do with the kids is set up a tent in the living room and have an indoor camping trip. Toast some marshmallows, sing songs, and tell scary stories all in the comfort of your tent. 

Play games 

One easy way to spend some time on a rainy day is to break out the boardgames and spend a few hours playing a game with the family. This is always a classic way to wile away the hours and it will bring out some healthy competition between everyone in the house. 

Deep-Condition Your Hair

If you are looking for a great way to pamper yourself on a quiet and rainy day, you can enjoy a hair pamper session by making your own hair mask and then applying it to your hair for a few hours. A hair mask can be made easily with a mixture of oils such as olive, coconut, argan and more.Mix a few oils together, then apply to your hair and massage for a few minutes. Put up in a bun and leave to soak for a few hours. Wash and rinse, and you’ll end up with silky soft locks. 

Make cookies 

There’s not much which is more satisfying than eating a warm chocolate chip cookie right out of the oven. You can make some amazing triple chocolate cookies with this recipe: 

2 cups flour 

1/2 cup cocoa powder

1 tsp salt

1 tsp baking powder 

2 cups sugar 

1 cup butter 

2 large eggs 

100g white chocolate

100g milk chocolate 

100g dark chocolate 

Cream the butter and sugar in a bowl. Add egg and beat until light. Add dry ingredients slowly and mix into a thick batter. Cut chocolate into small pieces. Add chocolate to batter and mix well. Refrigerate for 30 minutes. 

Bake at 220C for 15 minutes and enjoy! 

Create a cinema 

One of the most classic and fun things for you to do when the rain is pouring down is to make a cinema inside the house and have a film festival with your family. Before you set up you will want to head to the shops for a few snacks such as: 

• Popcorn
• Sweets
• Chocolate
• Ice cream
• Nacho chips and cheese
• Chicken wings 

Once you get home you can start to transform your living room into a cinema. Use paper or card to black out the windows, create a floor blanket with pillows and throws to sit on, turn up the volume on the tv and set up the snacks and drinks on your coffee table to the side. Set off your favourite movie and have fun sitting in a cinema at home with amazing snacks and lots of fun! 

A rainy day doesn’t have to be boring and there are so many ways which you can make the most of the day with your family. Take some time today to make the most of your rainy day and try some of these activities with your family. 

{ 0 comments }

I’m very happy to host a guest post from a new voice in the UK personal finance community. I hope you find it as helpful as I did!

{ 0 comments }