Category Archives: Financial

• on 11 Apr 2022
• By Amanda Amregian
• Financial

10 Simple Ways to Improve your Financial Literacy Skills

April is the month of financial literacy awareness. Many people, especially in the United States, are not the best when it comes to financial literacy skills. To ensure successful handling and growing of your money, have a look at these simple tips.

Reading time: 6 mins | Published on: 4/12/2022

1. Budgeting

A task as easy as budgeting can keep your expenses in check. Say you are a single person living on your own who wants to spend around $500 or less each month. This is easily attainable if you can keep track of your expenses. You can allocate different amounts of money to specific costs. Plus, you could have an amount set aside for emergencies each month, so you know that you have it ready if you need extra cash for an unexpected expense. There are tons of resources you can use for this process. You could track them on a spreadsheet or use an app. Budgeting is one of the simplest tricks to keep yourself from overindulging.

2. Sign Up for Financial Newsletters

If you do not know where to start on this journey toward gaining financial literacy skills, signing up for financial newsletters is a good start. Research and reading are great ways to increase your awareness of good and bad spending habits. It can inform you more about how to save money, deal with your credit score, and much more. A beneficial financial newsletter is Athene’s Smart Strategies.

3. Invest in a Retirement PLan

At an early age, one needs to start investing in a retirement plan. Some of the available plans are 401(k), 403(b), traditional IRA, Roth IRA, etc. This is the money you will save and, hopefully, grow to have available after your retirement. Instead of putting minimal funding into this account, it is vital to start this investing as soon as possible. This will allow you to be financially stable once you leave work and start a new journey in your life. Even if you only put around 10% aside from your paycheck each month, this will still add up to amazing savings. Don’t neglect your retirement plan. Research and choose one that benefits you because this will help you be set up for success later on in life.

4. Learn from Social Media

As we know, social media can contain fake news. One must be careful with who they trust and what they see online. However, there are many people on different social channels that want to help others become financially literate. LinkedIn, Twitter, and Facebook are good places to find information about financial literacy skills and what you can do to improve them. Just make sure you follow trusted and honest sources of information.

5. Check your Credit Score

Your credit score is fundamental. If you ever want to take out a loan to buy a house, car, or finance your business, then you need to have a healthy credit score. This can be attained by paying off your credit card bills and interest on time, new missing payments, etc. If your credit score is low, this can negatively impact you in many ways. It is much harder and much more expensive to get credit from banks and other institutions with a low credit score. Improving or maintaining a high credit score is vital.

6. Financial Management Tools

As mentioned before, budgeting apps can help you keep track of your finances. However, this is not the only financial management tool available at your disposal. Some apps can track the progress of your loan and when payments are due, your 401(k) investments, your net worth, and so much more. These apps can help you become organized by tracking your finances, leading to financial stability. If you want to check out some apps, Personal Capital’s Retirement Planner is great for 401(k) tracking, Mint is good for budgeting and keeping track of savings, and Investmate is a helpful education app to learn everything about trading. Check these apps out!

7. Talk to a Professional

If self-teaching isn’t working, you could always speak to a professional. Don’t be afraid to ask for help! There are tons of people who do financial planning in their lives or for a job and would help you out if you were to ask. If you cannot afford to hire someone to do this, then try to network with someone in the field and see if they can give you some tips. Additionally, there are hundreds of meetups, webinars, and professional presentations, where you can ask questions at the end. Reaching out does not hurt and will most likely help you in the long run.

8. Understand Basics of Debt and Loans

Loans and debts hold a lot of power in the financial world. When taking out a loan, knowing everything about interest rates, repayment schedule, penalties for late or pre-payments is essential. Ask about all those properties before taking a loan to ensure you won’t harm your credit score. If you are already in debt, you have to try to pay it off as soon as possible. If you get behind on your payment schedule, you could have to pay more for your loans, sending you into additional debt. Understanding these basic concepts should enable you to make the right decision should you choose to go down this path.

9. Safe Spending with Credit Cards

Credit cards are great because of the bonuses you can get and the simplicity of use. However, this can be dangerous for people who cannot control their spending. Credit cards have limits, and surpassing them could get you into trouble. You have to be able to pay off a portion of your bill each month, and if you can’t, this can send you into debt or cause legal troubles for you. Yes, it is fun to swipe that card and get tons of different items, but not at the expense of your financial stability. Use your credit cards wisely.

10. Gain control

All in all, you have to be in control of your finances. If you don’t invest and budget, you will not have money saved for later. Ignoring free financial resources will prevent you from learning and improving your financial situation. Instead of allowing yourself to overspend and go into debt, it is necessary to see your flaws and try to manage them. Additionally, gaining control over your financial present and future will help you overcome any negatives you may face or faced in the past.

These are just some of the tips and tricks to increase your financial literacy skills. Knowing what can help you and what hinders you is a big step in this process. Be sure to be safe with your money and do not overindulge.

• on 1 Nov 2021
• By Amanda Amregian
• Financial

5 of the Best Long-Term Stocks

Stocks have their ups and downs. Historically, some stocks have been more profitable than others. There are specific stocks that have continually done well in the market. This article will discuss some of the best long-term stocks to invest in, based on different factors.

1. Amazon (AMZN)

Amazon continues to be one of the front runners in the stock market. Since their launch in 1997, they have been a continuously growing leader in their space. Amazon has an endless amount of products available, a very efficient company structure, and a strong base of customers, which contributes to their success. They have the highest total return of 212,922%, since their IPO in 1997. $1,000 invested in Amazon stock back then would be worth over $2 million now.

2. Monster Beverage Corp. (MNST)

Monster energy drinks have a strong standing in the market. Over the past 20 years, the company has continued to grow and release new products. They expanded their customer base and even made a deal with Coca-Cola to help with production, and research and development. Furthermore, Monster’s total return is close to Amazon’s – at 212,468% and has an average annual return of 35.4%. Had you purchased MNST stocks for $1,000 in 1995, you would now have more than $2 million.

Actually, Monster is the leader if we only look at the last 20 years. Check out this chart by Statista.

3. Jack and Henry Associates (JKHY)

Jack and Henry Associates is a financial services company. They are one of the first companies to offer products and services for financial transactions, processing, and automation. The company puts a heavy focus on its core values: a passion for customer service, relationships, integrity, drive for results, and excellence. These values spell out the word “PRIDE,” further emphasizing how much they care about implementing these values into their company. Jack and Henry Associates has a total return of 212,322%, following right after Monster and Amazon. Once again, the $1,000 investment in 1985 would have grown to over $2 million now.

4. Best Buy Co. (BBY)

Best Buy is the largest consumer electronics retailer in the US. With new technology and changing consumer preferences, Best Buy has always adapted and progressed as an organization. They are a reliable business, with customers returning to their stores, contributing to their 108,511% total return. Best Buy has been performing very well on the stock market and continues to be one of the best long-term stocks. Indeed, $1,000 back in 1990 would have become over $1 million by now.

5. Ross Stores (ROST)

Many retail stores have not been able to keep up with Amazon, but Ross Stores has performed well in this competitive environment. They sell clothing and have an excellent long-term company strategy. As all brick-and-mortar stores, they were severely affected by the COVID-19 pandemic. Yet, their stock bounced back and went above its pre-pandemic levels. ROST shares have generated a total return of 81,286%. $1,000 invested in Ross in 1990 would be worth over $800K now.

Major Factors Contributing to Success

All these companies share attributes contributing to their success. They have well-defined mission statements and values to ensure their consumers’ needs are satisfied. These businesses have a solid hold over the market in their sectors and do not easily fall victim to competitors or substitutes. Due to these factors, they have remained strong over the years, placing them among some of the best long-term stocks.

Simply Flows offers unique stock data analysis tools to assist your investments.

• on 26 Oct 2021
• By Amanda Amregian
• Financial

Profitable Stocks: How to Know if it’s a Good Investment

It is hard to find profitable stocks that will continue performing well on the market. There is always a risk with investing, but the more you understand the stock market and its forces, the better decisions you’ll make. It is essential to check out multiple factors to determine if a stock is profitable before investing. You want to make sure the choice you are making is in your best interest.

Company Standing 

Before getting into the technical aspects of a company, check out the basics – if the company is in the green. Look at their cash flow statements to ensure that more cash is coming in than going out. Also, look at the company’s balance sheet. It would be best if you understood an organization’s assets to know what they’re putting money towards, as well as their outstanding debts. Determining a company’s book value can also contribute to having a better understanding of a company’s standing. These basic checkpoints can help you determine whether to invest in that company or not.

Historical Prices

The most obvious factor used to determine if you’re investing in profitable stocks is price. However, you cannot just look at the selling price to know if you’re making a good investment. You must compare the business’s historical stock price to the amount they are selling for now. If there is a solid increase in the stock’s price over time, then you can tell that the company has continually performed well on the market. Comparing the historical price is also essential because it will show you if you buy the stock for a good value based on its previous cost. Price plays a significant role in determining if you are getting a good deal and if the company performs well on the market.

Earnings Per Share

There are several financial ratios used to evaluate stocks’ performance. One of them is earnings per share (EPS). EPS is the net profit a company receives divided by the number of common shares outstanding in the company. For example, say a company makes a net profit of $70 million in one quarter, with 10 million shares. If you hold one share in the company, you will make $7.00 at the end of that quarter. However, companies typically reinvest their profits back into the business, so you would not actually make this profit, at least not until the business has been liquidated. Check out this ratio to ensure that you invest in a profitable stock, not one with earnings per share in the red.

Price to Earnings 

The price-to-earnings ratio (P/E) is vital in determining if a company is overvalued or undervalued. One can calculate P/E by taking the current share price and dividing it by the total earnings per share over the past 12 months. For example, if a stock is trading for $50 and the yearly EPS is $5 a share, the price/earnings ratio will be 10. The higher the price-to-earnings ratio, the higher the quality of the investment.

Debt to Equity 

Another helpful financial ratio is the debt to equity (D/E). It is used to determine how risky is the investment. You want to find out if their debt overshadows their equity financing. Calculate D/E by dividing the company’s total liabilities by its total shareholder equity. For example, if a business has $5 million in debt and $20 million in total shareholder equity, D/E would be .25 for the organization. This would be an example of a low-risk investment because the ratio is lower than 1. However, if the D/E ratio exceeds 2, it would be a high-risk investment. Ensuring that the company you invest in does not have too high of a D/E ratio is important when making investments.

Company Strength and Performance

Learning more about the industry helps with purchasing profitable stocks. There is a lot of competition in the market. It is better to invest in high performers who have stayed at the top rather than companies that may not have the best track record. When looking at companies in the energy drink industry, Monster and Red Bull have consistently dominated the market in this sector. Based on their history, they have continued to grow and remain industry leaders. Both would be beneficial investments in the energy drink sector due to their high performance. Determining high performers in the industry you wish to invest in is essential to making a good investment.

Company Leadership and Culture

Under good leadership, a company can perform well financially and thrive. Such an organization will be able to gain more revenue, make higher profits, and have a better standing in the stock market. Under good leaders, there is less employee turnover because employees wish to help the company succeed. Many studies have found a positive correlation between great company culture and strong financial performance. For example, a culture of diversity and inclusion increases job satisfaction, motivation, and enhances the decision making at the organization. This leads to increased productivity and positively affects the bottom line. 

There are many ways to determine if the stock you want to purchase would be a beneficial investment. These are just a few of the ways to know if you are investing in profitable stocks. Make sure that you do thorough research before buying and understand the risks. If you do this, then you will be able to make money in the stock market.

To learn more about what can affect the stock market and your investments, check out this article.

• on 7 Oct 2021
• By Simply Flows
• Financial

4 Major Factors Affecting the Stock Market

Stocks are representative of ownership equity in an organization. Stocks give shareholders, the people who own them, a residual claim on the organization’s earnings in the form of capital gains and dividends. The stock market is composed of individual and institutional investors to buy and sell shares of public organizations. Investing in the stock market carries risk because there is no guarantee of profiting off of the investments. There are four major factors affecting the stock market. These factors can drive stock prices up and down and ultimately impact one’s investments.

Macroeconomics

One of the main factors affecting the stock market is gross domestic product (GDP). Since GDP is an indicator of growth and contraction, and overall estimates the health of the economy, it can reflect stock prices. If an economy is healthy and growing, organizations are likely to be feeling the same effects. Another factor in macroeconomics is unemployment. If unemployment is high it shows a weak market and if unemployment is low, it shows a strong market.

Politics

Political effects on the stock market are often indirectly caused. Domestic or international turmoil can cause the stock market to go down. The stock market sees uncertainty as risk and therefore political uncertainty has a negative impact on stocks. For example, if a partner in the supply chain is affected by political turmoil, that can drive down the stocks of the affected companies. Corrupt and hostile governments create riskier environments for investors and therefore can drive prices down. However, credible and stable governments can drive stock prices up.

Consumers

Ultimately, all the ups and downs in the market are caused by humans. Consumers decide what products they want to buy and adversely drive that organization’s stock prices up. They also decide what products they don’t want to buy and drive those stock prices down.

The Pandemic

Since the start of the COVID-19 pandemic, user preferences have changed. Organizations that withstood the pandemic have proven to have lasting products or services. For example, the stock prices of video conferencing tools shot up during the pandemic. All meetings and events had to be moved to a digital format and digital conferencing was the answer. It gave people the ability to work together from anywhere. The social climate was able to have an effect on the stock market. During this same time that video conferencing tools stocks went up, stocks were going down for other organizations. As an example, airline companies saw their stocks plummet because of travel restrictions and fear of spreading the coronavirus.

The stock market is one of the riskiest investments a person can make. A lot of things come into play and there are many factors affecting the stock market. Some of those are macroeconomic factors and political factors. Or even factors such as consumers preferences and changes in consumer behavior caused by events such as the COVID-19 pandemic. Most of these factors are stable and will always be present. But one such as the pandemic, could be another type of event such as a natural disaster or a human caused event. However, knowing these factors and being aware of the social dynamic could lead you to making a rewarding investment.

Learn how Simply Flows is a good investment for your organization.