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Why You Should Avoid Grocery Delivery and Pick Up

December 12, 2019 By MelissaB Leave a Comment

Our lives just seem to be getting busier and busier.  Luckily, our society offers conveniences to help us save time where ever we can including grocery delivery.  Seriously, does anything beat not having to go to the grocery store and having your groceries brought right to your door?  While this sounds like a dream, there are reasons why you should avoid grocery delivery and pick up.

Why You Should Avoid Grocery Delivery and Pick Up

Delivery Fees

Many grocery stores will offer customers a one-time free delivery.  This is an excellent way to try out the service, and you could get grocery delivery for a few weeks by shopping at a different store each week and trying out the free trial from each store.

After the free trial, most grocery store delivery services charge $5.99 and upward.  Many people argue this fee pays for itself because you’ll likely save by not giving into impulse buys.  However, if you rarely give in to impulse buys, you’ll be paying an extra $24 in delivery fees every month (if you shop once a week).

Some Items Are Automatically Substituted

If an item that you ordered is not available, the store will often automatically replace it with an item that they consider comparable.  While this may be fine some of the time, other times, the item may not be what you want.  You may need to make a separate trip to the grocery store to get the item that you actually need.

Can’t Buy the Bargains

If you’re someone who likes to peruse the clearance items, you may be disappointed by a grocery delivery service because most items aren’t on clearance.  You’ll not only have to pay full price, but sometimes the grocery store marks up the items that are available for delivery to help cover the cost of the service.

Some Produce May Be Less Fresh

Photo by Emma Van Sant on Unsplash

For about a year when my children were very young, I ordered groceries through Peapod.  I was worried how the produce would arrive, but almost always, Peapod sent produce that was fresher than I could have bought in the store.  I absolutely loved this, and it was one of the main reasons why I continued with a grocery delivery service.  However, this is not always the case.

A hobby of mine is to watch grocery hauls on YouTube, and some of these vloggers take advantage of grocery delivery.  Time and time again a common complaint is that the vegetables and fruits are not fresh.  One woman even showed that the greens she ordered were already slimy.  Yuck!  That particular vlogger no longer orders produce when getting grocery delivery.

The quality of your produce may depend on the store you order from and their delivery service.  You’ll just need to try out several to find the one that offers the best quality.

Grocery delivery is a wonderful service, but like anything, there can be drawbacks.  If they bother you, the added delivery fees and possible item mark ups and less than fresh produce are why you should avoid grocery delivery and pick up.

Do you use a grocery delivery store?  If so, what has been your experience?  Would you recommend it?

 

Filed Under: Guru Advice

So You Wanna Start Buying Stocks?

June 25, 2018 By Dan Kent 2 Comments

Investing is absolutely crucial in today’s society. With skyrocketing housing prices and an ever increasing cost of living, you simply can’t save your way to retirement.

The problem with investing to those who don’t know much about it, is it is scary as hell. The stock market is filled with nonsensical jargon, terms that you can’t even begin to think of what they mean.

“There seems to be some perverse human characteristic that likes to make easy things difficult”

That was once said by arguably the best investor of all time, Warren Buffett, and it couldn’t ring any more true. Investing isn’t hard. In fact, it’s quite easy. Anybody can simply open up a brokerage account and buy some of their favorite companies.

The key to building a successful retirement portfolio is investing in the right things. That is where the difficulty lies. I’m writing this piece to show you a few ways that you can get started.

I’m going to talk about two separate ways you can get started investing in this article, one of them requiring little to no effort at all, and one that will start you down a path you will be forever grateful you chose upon completing it. Let’s get started with the easy part.

Paying someone to manage your investments

An Investing Primer
Investing can be a crucial part of your personal finances.

Considering that almost everybody at one point or another, if they want to retire one day, will need to invest, there is absolutely no shortage of companies that will take on the task for you. Keep in mind though that nothing in life is free, and these methods of investing often come with a cost.

Investing In A Mutual Fund

This has been far and beyond the most popular investment vehicle people have decided to get involved with. So what exactly is a mutual fund?

A mutual fund is simply a basket of stocks so to speak. You aren’t buying individual companies, you are buying into a fund that contains individual companies.

Why are mutual funds so popular, and quite frankly, so damn handy? Well, first things first, it requires little to no involvement from the investor themselves. Mutual funds for most people are a simple set it and forget it option. Head into your bank, say you want to invest in a mutual fund, and they will do everything they can to set you up with the best portfolio possible.

Prior to pulling all of my money out of mutual funds to head down the path of self directed investment, which we will speak about later on in the article, I barely checked my mutual funds. I simply opened up the annual report, seen my returns, and waited until next years report.

But, mutual funds have been taking a lot of heat recently. This is due to the fact they are freaking expensive. The average MER (Management Expense Ratio) of a mutual fund is around 2.5%. Now, to someone who doesn’t know much about what you can expect to earn from the stock market, this doesn’t seem like much.

But, in the grand scheme of things, it is a boatload of money. The average return of the stock market is around 7%. If a mutual fund is eating away 2.5% of your portfolio, that means it is taking over 35% of your yearly returns in fees.

Over the course of your working career, this could amount to numbers in the 6 figures in terms of fees paid.

However, that doesn’t mean mutual funds are terrible. They are a great item for a person looking to get started with investing that simply doesn’t have the time nor patience to learn the markets and manage their own money.

If you’re looking to get started with mutual funds, simply book an appointment with your bank and see what they can do for you!

Investing In A Robo-Advisor

Robo-Advisors are becoming exceptionally popular these days, and for good reason. Why?

Well, for one, Robo-Advisor fees are drastically cheaper than mutual fund fees. Compared to a mutual funds MER of 2.5, you can expect to pay anywhere from 0.25-0.50% with a Robo-Advisor. How do they get away with charging so little?

Robo-Advisors don’t invest in stocks. They invest in something called ETFs. I’m not going to go too in depth on what exactly an ETF is in this article, but the concept is very similar to a mutual fund. They contain a group of companies from a specific industry, all bundled into one investment.

So for example, if you wanted to invest in the oil and gas industry, you could simply purchase an ETF that includes some of the biggest companies in the sector.

When you purchase a mutual fund, you need someone managing the fund. This is because there is a constant need to monitor the fund and adjust the investments within it accordingly. You pay for this in two ways. One, you have to pay the person managing the fund, and secondly, you have to pay commissions as the fund buys and sells the stocks within it.

With an ETF, there is no buying and selling within. The holdings in the ETF will always stay the same. You don’t need a manager constantly balancing the fund.

When you sign up with a Robo-Advisor, they start off by taking you through a simple questionaire that will determine your risk tolerance. From there, they invest your money on what they believe to be investments that adhere to your tolerance.

From there, they simply tweak and re-balance your portfolio as needed. It is literally a custom investment catered to your needs and philosophies.

And the best part? These advisors are making returns that are just as good, if not better than mutual funds.

That’s about all you need to know about Robo-Advisors. They are literally that simple. If you’re interested in signing up for one in Canada, head to Wealthsimple. If you’re in the United States, check out Betterment

The Road To Self Directed Investment

Now that we have talked a little bit about some investment methods you can try out if you aren’t too keen on learning yourself, let’s dig into the awesome stuff.

If you’ve decided to take control of your own finances and invest your own money, you’ve made an amazing decision. Not that either decision is bad, it’s just with me being a DIY investor, I think this one is way more exciting.

How to get started buying stocks

Before we get started, let me note that there are a ton of ways you can invest your money. In fact, I published a great article on 55 ways to invest your cash here. But we’d be here until next week if I were to explain them all in this article.

I’m going to go over the basics of what you need to do prior to beginning your investing career, and what you need to get it started.

Make sure your debt is paid off, and you’ve got a nest egg

This is the number one mistake I see a ton of people who are just getting started make. Remember when I was talking about the average return of the stock market being 7%? Well, you can probably put two and two together that it may not be wise to invest your money when you have a credit card balance that is charging you 19.99%.

You may feel like you are getting ahead because your investment account is growing, but you aren’t. You’re losing money!

I always tell people who are just getting started to always have a chunk of money placed away for those uh-oh moments. A broken down car, a fridge that finally kicked the bucket. All of these mishaps can run you up quite a bit of money.

The worst thing you can possibly do is pull invested money out of your brokerage account to pay for these situations. Why?

Well, the stock market very finicky over the short term. Over the long term, it is a slam dunk in terms of capital appreciation. But when you are pulling money in and out of the stock market every 1, 3, or even 5 years, you are allowing short term fluctuations have a drastic effect on your investment returns.

In a 3 year period, times have existed where the stock market has faced 25% or more swings in either direction. Having to pull your money out to pay for a new set of tires while the market is taking an absolute hammering is just setting you behind the 8 ball.

When you invest money, invest money that you don’t ever plan to touch until it is supplementing your income in retirement.

Your brain must become an investing sponge

This is the number two mistake I see aspiring investors make. Jumping into the markets before they are ready. It’s absolutely crucial you attempt to digest every single piece of financial and investing knowledge that you can.

When I first started out, I read a ton of books. I started out with a play account at Questrade and messed around with purchasing a bunch of stocks. I’d read a book, think I was a genius and make a bunch of investments in the practice account.

It brought me down to earth pretty quickly, as I realized that reading a book or two and diving right in wasn’t going to get me anywhere.

Knowledge of the stock market takes years. I’ve been a DIY investor for 8 now, and there is still so much I don’t know it makes my head hurt.

That isn’t to say you need to commit to strictly learning for years prior to actually investing your money. The key is to be comfortable doing what you are doing. Start out investing in blue-chip dividend paying stocks. They don’t offer the wild returns I know you are thinking you are going to make right now, but they offer security and safety of principle.

Opening your first brokerage account

This seems to be pretty obvious, but it is the first step you need to take when you want to start investing. Like I said above, until you get comfortable, get a practice account. They will fund your account with play money and you can mess around buying and selling stocks with zero risk.

When you are opening a brokerage account, you really need to think about what you want to achieve. Lots of discount brokerages like Questrade and Interactive Brokers offer extremely cheap commissions. This is because they provide absolutely no human interaction with your portfolio besides customer service.

You are provided with research tools and a platform where you can buy and sell stocks. That is about where it begins and ends.

If you’re looking to manage your own investments but may want a little help or some suggestions every now and then, you can head to a full service brokerage. Keep in mind that commissions and possibly even annual account fees are often substantially higher. Remember what I said at the start of the article about nothing in life being free?

Doing research is absolutely crucial prior to opening a brokerage account as a lot of them have their benefits and their pitfalls. Some may appeal more to traders, while some to investors looking to dig into the fundamentals of a company.

Buying your first stock

Buying your first official stock can be a challenging endeavor. There are hundreds of stocks available to choose from, how do you know which one is best for you?

There really isn’t a simple answer. Diversification is the key to a successful investment portfolio so owning just one stock really is never a good thing. Try to pick 2 or 3 industries you are comfortable with and have at least some extra knowledge of how things operate. If you work for an oil company, you may have some knowledge on how the industry works and how certain commodities, like the price of oil, may have an effect on the stocks.

Another key element you need to decide on prior to purchasing a stock is what type of investor will you be? I consider the three main types of investing to be dividend, growth, and value.

As a dividend investor, you’re looking for that developed industry leader who has seen it all. They aren’t too concerned about growth anymore, and are instead more concerned about pleasing shareholders in the form of a dividend.

As a growth investor, you may be taking that up and coming stock in the industry that has high potential to overtake the industry leader. You get in at a cheap price, hold the stock for the foreseeable future and cash in during your later years. Keep in mind that this method of investing places substantially more risk on your portfolio than the value or dividend strategies.

Value investing is a strategy that is used by investors who try to find stocks that are currently undervalued. Their stock price should be higher as you have calculated using methods I won’t go into during this piece, and you buy them knowing the market will eventually bring them back up.

There is no wrong method of investing

All in all, choosing whether to have someone else manage your investments or making them on your own is a win-win situation. This is because you are finally putting your money to work, towards a better financial future.

I hope that I have given you at least some sort of foundation to begin your investing career. It’s a fun and frustrating process all at the same time. But in the end, you’ll give yourself a huge pat on the back when you finally quit your 9 to 5 and have some money to enjoy the things you love to do.

Filed Under: Guru Advice, Investing Tagged With: Investing, stock market, stock trading, stocks

Using your network to achieve your financial freedom goals

May 16, 2018 By Millionaire Mob Leave a Comment

This is a guest post by Millionaire Mob, a blog focused on investing in dividend growth stocks, passive income ideas and travel hacking. We have helped thousands of people with bettering their financial future through our personal finance tips.

A solid network is a promising asset in your financial freedom journey. Having a strong network is crucial to achieving financial independence.

“No man is an island” an old adage goes.

How are you utilizing your existing networks to reach your financial goals?

We are social beings and are connected with different people within different circles. We have people around us some who are family, friends, and colleagues that we have formed a strong bond with. These people can support us in one way or another to realize our financial goals.

Before you enlist the help of your network, you first need to have a clear goal of what you intend to attain. You need to plan why and how you will accumulate wealth and build a firm financial foundation. Our study shows that the true meaning of accumulated wealth is approximately 11x your income.

Set a plan of action with details of how you are going to generate income. Find out how you can diversify your income sources. Perform a research on different investments available to you. Read different resources to discover more information about the types, the advantages, and disadvantages of different investments. Get the opinions of diverse financial advisors and join their networks. Consider different investments that you can involve in. Engage in active, passive and portfolio income ideas. Consider getting a part-time job or try to obtain online jobs. Check out this list of over 23 proven online jobs without investment.

Whatever your financial targets are, they need to be clear and achievable. Define your deliverables, set quantifiable goals and gauge the level of risk appropriate for you. Set a timeframe on when to achieve every milestone. Be disciplined and avoid that which can distract you from your vision. If you set realistic goals, you are more likely to attract people with similar financial ambitions and resolutions.

Here are 4 surefire ways in which you can use your network to achieve your financial freedom goals:

  1. Foster quality connections

Your networks can be a great resource that will connect you to your dream job or an amazing opportunity that will change your financial situation. You can find potential partners to strike profitable business deals with that will take your business to another level. Your connections can also become your clients if you can offer valuable products to them. All you need is just to be outstanding in what you do.

These prospects this can be obtained without necessarily spamming your connections but by presenting and positioning yourself in such a way that opportunities find you. In one way or another, it will help raise your financial position and ultimately reach your financial goal.

With recent developments in technology, it is easier today to make more connections with friends, bosses, classmates, customers etc over social media platforms such as Facebook, LinkedIn, Whatsapp and Twitter among others.  Take advantage of these platforms to expand your circle of influence. Reach out to potential employers and be ready to grab every opportunity that may come your way. Be ready to deliver value and to produce exceptional results in your work so at to get referrals. When you are outstanding in what you do, you are more likely to attract and maintain quality connections that will thrust you to your financial destiny.

  1. Start a financial challenge

A challenge helps to keep the participants on their toes until they achieve their objectives. Start a financial challenge, for example, a challenge that can help to fix bad financial habits that can ruin your dream.

You can start a challenge to clear all your debts within the shortest time possible and enlist your networks to become part of it. Get and share resources to motivate and inspire each other to pay off debts.

It could also be a challenge to live frugally and to save as much as possible. Start a savings challenge. Find ways to help save and reduce expenses. Share discounted products, items on sale, and couponing ideas among other saving tips. You can also incorporate the use of different financial apps. Some apps like Spendee, Dollar bird, etc help you to track your expenses, manage budgets and track purchases among other great features.

You can form a group of friends or create a savings group through social media and start the challenge. It can be a year-long or a few months challenge. Make clear the rules and the governing the group, set milestones and track the progress.

For each month, week or day try to set-up or create a task to accomplish, the tools that you will need and the timeframe to do it. At the end of the challenge, gauge the outcome and see if there were any changes in your financial position. Create a new challenge and continue with the cycle.

When you create a group of people who are up to the challenge, it helps you to remain committed to the main agenda of the group and to be accountable to each other.  A financial challenge can help to keep you on the check and help you to avoid bad financial habits that are not aligned to your ultimate objectives.

  1. Keep learning from the best

Ensure that you have connections with people who have similar interests and learn from them. They may be resourceful especially if they have done something or have similar goals that you intend to achieve. They can also share with you different tips and tricks, what to do and mistakes to avoid achieving the specific goals.

  1. Share your interest

Share your financial objectives with people in your networks. You can use the social network platforms to engage with other professionals, join groups and forums that discuss financial matters and opportunities. Share content, create and post blog posts and online profiles with an aim to connect with other people with similar interests.

You are more likely to get tips and tricks from people you share related interests with. They can also encourage and motivate you to remain focused on your financial goals.

Bottom line

Financial freedom cannot be achieved in isolation. You must have and nurture your connections and be committed to making it possible. You should make it a priority to prepare and set clear financial goals before you enlist your networks. The financial objectives will also help you find people with common interests who will inspire you along the journey towards financial freedom.

Filed Under: General Finance, Guru Advice, Personal Finance Education Tagged With: financial freedom, financial freedom goals, network

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