Tag: Personal Finance

Growing up, my family didn’t have much. Additionally, I had little understanding of money. In fact, I wasn’t able to determine what I wanted to do until I was a freshman in college. Through a sequence of events, I learned a lot about money relatively quickly. My mindset was also the right one for building wealth, which I didn’t even realize.

As long as you’re reading, you’re already taking steps to grow wealth. Now, I’m not talking about becoming rich. Instead, I’m focusing on building wealth.

Why? What separates a rich person from a wealthy person is the sustainability of the wealth. A wealthy person doesn’t have to worry about money for the rest of their lives, unlike a person who has only their money for a short period of time.

In addition, wealth is crucial to weather financial hardships such as unexpected medical expenses or a loss of employment. With credit card bills, student loan debt, rent or mortgage payments due every month, many people find it difficult or impossible to build wealth. However, it really comes down to tangible and intangible assets.

Tangible Assets

Tangible assets are items with a physical form or market value that provide value to their owners. In addition to cash and accounts receivable, tangible assets include vehicles, stocks, mutual funds, and marketable securities.

A tangible asset usually has the following features:

• Being physically present. A tangible asset can be felt, seen, or touched. You can see a stock certificate or move your vehicle, for example.
• The value that is easily accessible. A tangible asset’s value can be determined from its original cost, book value, or market value. It is important to understand that tangible assets have a different value from intangible assets – assets without physical existence, like a patent, computer software, or research and development.
• A potential collateral source. A tangible asset can be used as collateral for a loan if the loan defaults.
• Subject to depreciation. For example, companies depreciate long-term tangible assets on their financial statements.

A tangible resource includes all current assets and noncurrent assets.

• Current assets. Usually, a current asset is consumed or converted into cash within one year.
• Noncurrent assets. A noncurrent asset has a longer useful life or is required to be held for more than one year in order to generate a benefit.

Where to Start Investing

When it comes to investing, trial and error is the best way to learn. Taking advantage of the account, you experiment with some ideas you’ve come up with. Over time, you’ll learn what works and what doesn’t, and you’ll build a foundation of knowledge that will grow with you.

Opening an account and investing in a mutual fund was my first investment. When I started investing, I had only $25 per month to invest. But, it was a start.

To learn about cryptocurrencies, I opened an account on Coinbase and invested $1,000 to start. I wouldn’t say that’s life-changing money. However, that is the way I chose to jump in – headfirst.

My knowledge of other investment platforms was also gained through this method. Betterment, Fundrise, and Lending Club all drew me in after I opened an account and invested some money.

In short, if you want to build wealth, you need to start investing. A platform like Robinhood, Ally Invest, or M1 Finance is an option, as well as one of those I mentioned already.

In the end, it doesn’t really matter so long as you open an account. As you go, you will also learn how to invest and strive to read as much as possible. As you learn what works and what doesn’t, you’ll also discover how your investing style and risk tolerance contribute to your success.

Other investments.

After getting your feet wet with investing, here are some other investment accounts you should consider.

• Bonds. A person buys shares of a company in the hope that the company will increase in value in the future. Bonds are generally more stable than stocks, but if a company goes bankrupt, you’d still suffer losses.
• Commodities. The term ‘commodity’ refers to tangible items such as oil, grains, and precious metals. If you bought, say, two ounces of gold last year, and the price increased this year, you would be able to sell it for a profit.
• Exhange-traded funds. You can buy, sell, and trade shares of ETFs throughout the day since they pool diverse investments such as stocks, bonds, commodities, etc.
• Real estate. Many people gain substantial wealth through homeownership. Additionally, this can include land development, house flipping, and landlording. Real estate investment trusts (REITs) are also available. These are similar to mutual funds. It involves buying shares in a fund that manages properties on your behalf.
• Retirement. investing money can help us prepare for a more abundant future. Many people envision a work-free future. That’s why investing for retirement has become a business in and of itself. Money can be invested to prepare us for a more prosperous future. It is common for people to dream of a future in which they do not have to work. This is why investing for retirement has become an industry of its own. This can include IRAs, 401(k)s, and annuities.

Intangible Assets

Assets that cannot be seen or felt are intangible. In spite of this, you can still use such assets to their financial advantage. To drive revenue and earn a profit, you can leverage your solid professional reputation (which is nonphysical).

Some common intangible assets include:

• Brand equity, or a brand’s value and ability to generate revenue and profits.
• Intellectual property, such as patents, copyrights, and trademarks.
• Licensing and rights.
• Research & Development.
• Customer lists.
• Goodwill, an indicator of how valuable your brand is based on factors like your reputation.

How to Invest in Yourself

The stock market, starting a business, buying a home, or investing in stocks are probably the first things that come to mind when you think of investing. Even though those actions contribute to wealth building, improving yourself can provide far greater returns.

In fact, Warren Buffett believes investing in yourself is the best investment you can make.

But how do you get started?

Well, the most obvious is through education. The financial gain you can reap over time by investing in your own education can help qualify you for a better job or gain a promotion. After earning a bachelor’s degree, your education doesn’t have to end. In addition to in-school student loans, a credit union may also offer parent loans through Sallie Mae Bank or another lender partner to help pay for continuing education classes or certifications.

Consider this if you’re still not convinced. If you had a savings account earning 2% interest, you would have to save $300,000 to earn $6,000. Nevertheless, if you receive a promotion or a raise as a result of additional education, you can earn this amount much more quickly.

Additionally, there are plenty of online platforms where you can literally learn anything. For example, I spent $97 on a YouTube course. In just 30 days I learned what would have taken me years on how to make money on YouTube.

With that in mind, here are some platforms worth exploring;

• Masterclass
• LinkedIn Learning
• Coursera
• Skillshare
• Books
• Youtube
• Udemy
• Khan Academy

Investing in your brand.

Another intangible asset that you should invest in? Your brand.

But, wait. Isn’t a brand just your logo? No. It’s much more than that.

You are making a promise to all those who come into contact with it. It represents your commitment to your customers, employees, audience, and community. In addition to telling your story, your brand helps you build trust and differentiates you from your competitors.

The investment in branding is one that, if done right, can yield exponential returns over time.

As I started my financial planning career at 28, most of my clients were retirees — or at least close to retirement. To convince them that I was the right person to manage their nest egg, I earned the CFP designation.

I didn’t have to become a CFP. However, it accelerated my financial knowledge. And, more importantly, these credentials elevated my brand. How? Well, it showed others that I’m just not just another financial planner. I am a certified financial planner. And, there were only 3 or 4 other CFPs in a 45-mile radius of where I used to live.

So, even though I couldn’t touch these credentials, investing in my brand separated me from the competition and built trust with potential customers.

The best intangible asset I invested in.

One of my best intangible assets, however, was investing a thousand dollars in a coaching program. I attended four in-person sessions per year, but I walked away with a new perspective. In fact, this new mindset wasn’t just associated with my business. I also changed how I approached life.

Overall, this program helped me work smarter, not harder. The result was that I went from making $250,000 a year within three years to making almost three-quarters of a million dollars. All from an investment of nine thousand dollars

FAQs

What are assets?

Assets are things you or a company own that are of economic value. A tangible asset, such as a car or piece of business equipment, can be sold and converted into cash; or an intangible asset, such as a registered trademark, can be sold and converted into cash.

How do assets work?

Assets are generally acquired by individuals and companies in the hope of providing future funds. An individual may begin a 401(k) or IRA to ensure financial security upon retirement, for instance. Similar to a real estate purchase, a company may purchase an office building to facilitate work and profit.

An asset can, however, become a liability with any financial decision. For instance, when you buy a stock, you may earn or lose money. In addition to asset-backed loans, such as mortgages, you can also have a liability-backed loan, which is backed by the value of your home.

What’s the importance of assets?

In order to determine a company’s or individual’s net worth, assets are important. A greater net worth is a sign of a better financial standing, since assets are worth more than liabilities. In times of financial hardship or loss of income, assets can be useful to cover expenses and cover losses.

As part of the home loan application process, assets can be an important factor. In determining whether your loan will be approved, lenders consider liquid assets like cash and bank accounts.

What’s my assets’ value?

You can determine the value of your assets in a lot of different ways, depending on what assets you have. For example, you can find the value of your house online or by looking at comparable homes in your area. You can link various investments, retirement accounts, other assets, and liabilities to your budgeting app or investment platform to see your net worth and breakdown.

The post Have Assets, Have Financial Freedom appeared first on Due.

The topic of a recession has weighed heavily on the minds of the American public and the American investor for quite a while now – and for good reason.

Although we can find a sliver of good news here and there, the gist of the matter is that both the cost of living crisis, inflation, and the Fed’s raising of interest rates aren’t coming to a close any time soon. None of these facts bode well for investors in the immediate term. In fact, most economists believe that we are headed for recession sooner rather than later – if we’re not already in one now.

Is this bad news? Undoubtedly. Yet we’ve been here before, and we’ve made it out before – so let’s focus on actionable advice the everyday investor can take to preserve their capital.

There are a number of proactive steps an individual can take to prepare their personal financial situation for a situation. But while emergency funds, cutting down on expenses, and paying off debts are all positive moves, one key question remains for the DIY investor: What are the ideal types of stocks to buy in a recessionary environment?

Is There Really Such a Thing as Recession-proof Stocks?

The short answer to this question is no – there isn’t a single stock that will remain completely unaffected by wider macroeconomic downturns. In and of itself however, this shouldn’t dissuade you from investing in the stock market during an economic downturn.

With the proper approach, investors can do more than scrape by in economic downswings. Although it might seem unlikely, achieving more than just capital preservation during a recession is certainly possible.

So, what’s the key to spotting such diamonds in the rough? It all comes down to the specific sector in which the business operates. Some sectors sustain or even improve revenue during a recessionary environment.

This is a part of fundamental analysis – so let’s quickly clarify how this works.

Factors to Consider When Analyzing Stocks

Fundamental and technical analysis are the two crucial approaches used by investors to analyze stocks.

While both methods of analysis are significant and can help identify which direction a stock is more likely to go, it’s really fundamental analysis that’s more valuable to investors amid an economic downturn.

Fundamental analysis is a method which takes macroeconomic factors into account, such as the wider state of the economy, the strength of the industry, and the financial statements published by a particular company.

In this field, some of the most important factors to consider are:

• Earnings and Revenue Growth: In a recession, look for companies with consistent earnings and revenue growth. These firms tend to have a stronger financial position and are more likely to withstand economic downturns.
• Price-to-Earnings (P/E) Ratio: The P/E ratio compares a company’s stock price to its earnings per share. In a recession, focus on companies with lower P/E ratios, as they tend to be undervalued and present a better investment opportunity.
• Debt-to-Equity Ratio: Companies with lower debt-to-equity ratios are generally in a better financial position to weather a recession. High levels of debt can increase the risk of bankruptcy and limit a company’s ability to invest and grow.
• General macroeconomic factors, including GDP growth, changes in the consumer price index, and changes in interest rates – and how these can impact consumer spending in the sector that the company operates in.

Technical analysis, on the other hand, looks at historical price action. It is primarily used by day traders, and while it is an effective approach, short-term trading in a recession isn’t an approach that meshes well with the risk tolerance most investors have. Nonetheless, a few metrics should be understood at a minimum in order to understand a stock’s current momentum.

These include:

• Relative Strength Index (RSI): The RSI measures the momentum of a stock’s price movements. During a recession, look for stocks with RSI values below 30, as this indicates they may be oversold and due for a rebound
• Volume Analysis: Trading volume measures how many units of a security were traded in a specific timeframe. In a recession, strong volume during upward price movements can be a positive sign, indicating increased buying interest.
• Moving Averages: Use moving averages to smooth out price fluctuations and identify trends. In a recessionary environment, focus on stocks that remain above their long-term moving averages, as this indicates relative strength

Stocks that Historically Perform Well During a Recession

Now that we’ve gone through the methodology that should be used to identify good investment opportunities, let’s narrow down the search. Although there are standout companies in every sector and industry that will outperform the competition in a recession, looking at historical data can clue us in as to which industries as a whole outperform the market in a recession.

Consumer Staples

Consumer staples are products that people need to buy regardless of the economic climate, such as food, beverages, household products, and personal care items.

Unlike some other expenses, all of the above is non-negotiable – while the average consumer will cut down on luxury items, travel, and probably postpone the purchase of a new car in a recession, consumer staples hold steady even in downturns.

Companies that produce and sell these products tend to be less affected by recessions, as demand for their products remains relatively stable – meaning that the same holds true for their income and revenue. Examples of consumer staples companies include:

• Procter & Gamble Co. (NYSE: PG)
• The Coca-Cola Company (NYSE: KO)
• PepsiCo, Inc. (NASDAQ: PEP)
• Walmart Inc. (NYSE: WMT)
• Colgate-Palmolive Company (NYSE: CL)

Utilities

Utilities provide essential services such as electricity, gas, and water, which are necessary both for daily life and the operation of various businesses and industries. Just as in the case of consumer staples, demand for these services remains relatively stable.

Additionally, many utilities have regulated pricing, which provides a level of stability and predictability for investors. A few examples of common utilities stocks include:

• NextEra Energy, Inc. (NYSE: NEE)
• Duke Energy Corporation (NYSE: DUK)
• Dominion Energy, Inc. (NYSE: D)
• Southern Company (NYSE: SO)
• American Electric Power Company, Inc. (NASDAQ: AEP)
• Consolidated Edison, Inc. (NYSE: ED)

Discount Retail Sectors

Retail might seem like the first sector that will experience massive losses in a recession – and that is partly true, but with a big asterisk next to that “partly’. While consumers do make large adjustments to their shopping habits in economic downturns, this actually plays to the advantage of certain retail companies.

To be more precise, we’re talking about discount retail companies here. These companies leverage economies of scale and their size to offer a wide variety of products at prices that the competition simply can’t keep up with.

Examples of discount retail companies that are likely to outperform the rest of the retail sector include companies such as:

• Walmart Inc. (NYSE: WMT).
• The TJX Companies, Inc. (NYSE: TJX) –
• Dollar General Corporation (NYSE: DG).
• Dollar Tree, Inc. (NASDAQ: DLTR).
• Ross Stores, Inc. (NASDAQ: ROST).
• Burlington Stores, Inc. (NYSE: BURL)

Healthy Large Cap Stocks

Large cap stocks are stocks of companies that have a market capitalization of $10 billion or more. In times of recession, size can definitely prove to be an advantage.

Healthy large-cap stocks are companies that combine size with strong financials, a track record of stable earnings, and they usually have economic moats – advantages that the competition isn’t likely to overcome any time soon.

Often referred to as “blue chip stocks”, these companies are household names, industry leaders, and facets of everyday life. Although none of us have a crystal ball, it’s hard to imagine McDonald’s, Coca-Cola, Apple, or IBM going out of business.

These companies tend to be more resilient during a recession, as they have the resources to weather economic downturns. What’s more, the amount of capital that they have at their disposal often allows them to make acquisitions and expand their businesses in times of recession.

Stocks to Avoid During a Recession

Just as some industries have proven to be less affected by recessions, others have proven to be particularly vulnerable to economic downturns. Focusing your investments in these industries is one of the most common mistakes when investing in a recession.

Now, this isn’t a blanket condemnation of these industries – some companies in these sectors will do just fine, and others might even excel – but investing in them during a recession is quite a risky move that most retail investors should be quite wary of.

Cyclical Industries

Cyclical industries are those that are heavily impacted by economic cycles – they tend to perform well during economic expansions and poorly during recessions. These include the construction industry, the automotive industry, and the technology industry.

Companies in these industries can see significant declines in revenue and profitability during a recession which are much more pronounced when compared to the market at large.

A few examples of cyclical industries include construction, automotive, leisure, and luxury goods.

Leveraged Companies (debt)

Companies with high levels of debt can be particularly vulnerable during a recession. With reduced consumer spending, revenues drop – meaning that these companies might struggle to pay off their interest payments.

If that happens, there are two possible solutions – refinancing their debt using new loans, which is unlikely in a recession, or cost-cutting measures such as layoffs, which are much more likely. The problem is that these choices lead to a downward spiral of reduced revenue and shrinking business.

Companies that are highly leveraged may also face higher interest costs, and the sheer fact of a bad debt-to-equity ratio will likely deter most investors in times of recession.

An example of a stock to consider avoiding in this category would be Carnival Corporation (NYSE: CCL), which as of early 2023 had a high debt-to-equity ratio of 5.6.

Speculative Stocks

Speculative stocks are those that are highly unpredictable and may be based on a promising but untested business model, new technology, or other factors that could be easily disrupted during a recession.

Examples of speculative stocks include emerging technology companies, biotech companies, and other startups. These stocks may be particularly risky during a recession, as investors may become more cautious and less willing to take on risk.

It’s worth noting that while these industries and types of stocks may be riskier during a recession, sometimes those risks pay off – however, extra diligence is required, and even so, these stocks will only be a choice for those with extremely high risk tolerance.

Other Favorable Assets in a Recession

Most of our focus has been on stocks – but rarely anyone holds a portfolio composed completely of stocks. What’s more, having a diversified portfolio is one of the key elements of successfully weathering a recession – so let’s take a look at some of the other assets and asset classes that can help an investor weather a recession.

Precious Metals

Investors often turn to precious metals as a safe haven investment during times of economic uncertainty. This is because they are considered a store of value and tend to hold their value well, even when other assets like stocks and bonds are declining in value.

During a recession, governments usually take measures to stimulate the economy by increasing the money supply, which can lead to inflation. Precious metals have historically held their value during times of inflation, making them a particularly attractive investment during a recession.

Including precious metals in a well-diversified portfolio can help manage risk and potentially improve returns over the long term. There are several ways to get exposure to the precious metals industry:

1. Physical Bullion: One way to invest in precious metals is to buy physical bullion, such as gold coins or bars. This allows investors to own the metal directly, but it also comes with storage and security costs.
2. Exchange-Traded Funds (ETFs): Another way to invest in precious metals is through ETFs that track the price of the metal. These funds are traded on stock exchanges, making them a convenient and accessible way for investors to get exposure to precious metals. Examples of such ETFs include SPDR Gold Shares (NYSE ARCA: GLD) and iShares Silver Trust (NYSE ARCA: SLV).
3. Investing in gold and silver mining stocks can provide exposure to the precious metals industry while also potentially benefiting from the earnings and growth of the mining companies. Examples of gold and silver mining companies include Barrick Gold Corporation (NYSE: GOLD), Newmont Corporation (NYSE: NEM), and Silver Wheaton Corp (NYSE: SLW).
4. Futures Contracts: Investors can also invest in futures contracts for precious metals. These contracts allow investors to buy or sell a specific amount of the metal at a predetermined price and date in the future.

Fixed Income

Fixed-income assets such as bonds tend to be less volatile than stocks. On top of that, they can provide a reliable source of income through interest payments.

Because of their stability and predictability, investors naturally gravitate toward bonds in times of economic uncertainty. Allocating a large portion of your portfolio to these assets is a great way to ensure capital preservation.

Keep in mind that not all bonds are made equal – while government bonds, backed by the U.S Treasury, are arguably the safest investment you can find, they offer low yields. Corporate bonds, on the other hand, offer much greater yields, but come with greater risk.

It’s also worth looking into municipal bonds and TIPS. Municipal bonds are issued by local governments, typically to finance infrastructure or public projects. What makes them appealing, however, is that they are exempt from federal income tax – and in many cases, from local and state tax as well.

TIPS or treasury inflation-protected securities are specifically designed to protect against inflation – with interest based on a fixed rate, but a principal value that is adjusted according to changes in the Consumer Price Index (CPI).

Dividend Producing Assets

Investments that produce regular dividend payments, such as dividend-paying stocks and real estate investment trusts (REITs) provide a source of passive income that can help offset any losses in other parts of an investor’s portfolio.

Additionally, companies that pay consistent dividends are often viewed as stable and reliable, which can make them attractive to investors during times of market volatility.

Examples of dividend-producing assets include blue-chip stocks like Johnson & Johnson (NYSE: JNJ) and Coca-Cola (NYSE: KO), as well as REITs that invest in stable income-producing properties like apartments, offices, and shopping centers.

Incorporating at least some elements of dividend investing is a common move when economic conditions are poor. To narrow down the search, take a look at the S&P 500 dividend aristocrats index – it consists of companies that have both paid out and raised dividends for at least 25 years on end.

Beyond the fact that passive income helps to offset losses on other ends, it also gives investors capital to invest in good opportunities that they otherwise might not have been able to take advantage of.

Conclusion: Don’t Panic

We know that recessions are tumultuous periods that have a tendency to send investors into panic mode. And those worries aren’t unfounded – but the only way to avoid disaster is to make decisions with a cool head.

It is simply the nature of the market to fluctuate, even if those fluctuations are dire and negative – but the main takeaway is that the market always rebounds. If you take all of the advice we’ve given you into account, apply it in time, and remain calm throughout the turbulence – you’ll eventually find yourself in calm waters again, with minimal damage after the storm.

The post What Types of Stocks Are Good to Buy During a Recession? appeared first on Due.

Are you thinking about cutting the cord? You’re not the only one.

According to a Pew Research Center survey, the percentage of Americans who watch TV through cable or satellite service dropped from 76% in 2015 to 56% in 2021. According to the survey, they cite a variety of reasons for this: high monthly costs, access to everything online and not watching much TV anymore.

Streaming services have filled the gap left by cord-cutting as cord-cutting has gained popularity. From channels and programming to how you watch and pricing, each offers a slightly different viewing experience. But, to help narrow down your decision, and save some money, here are 23 of the best alternatives to cable TV in 2023.

Because Sling TV’s lower price and customizable nature align with cutting the cord, it is arguably one of the most popular cable TV alternatives.

With Sling TV, you’ll also get ESPN, FOX, and NBC for $40 a month after a recent price increase. However, their first month is currently half-off. Viewers can pick and choose from two basic packages of channels (Orange and Blue), then add on smaller extras for $5.

There is an Orange + Blue package for $55 as well. It’s best for those who can’t decide between NFL Network and ESPN to subscribe to Sling Orange + Blue, which gives you six extra channels than Sling Blue alone.

Whether you’re a sports fan or a comedy fan or a parent looking for kids’ programming, Sling TV has something for everybody. Here’s a handy hack for you to try. Ordering an HD antenna with any package will allow you to receive all your local channels.

Is Sling TV perfect? Of course not. In terms of channels, Sling TV does not have the most. In addition, unlike Hulu and YouTube, its cloud DVR is not unlimited

A great cable TV alternative, YouTube TV offers an easy-to-use interface and a huge array of channels. The service offers shows from 70+ different networks such as ESPN, Bravo, Animal Planet, TLC, National Geographic, and FX.

Aside from that, there are more than 100 live channels, sports (MLB, NFL, and NBA Networks), and movies to choose from. There are also add-ons from Starz, Showtime, or AMC for an additional price.

YouTube TV also has a short lag behind cable TV, which is another standout feature. Despite being a little behind live feeds (less than a minute), Sling and other services still count for sports and live events. Upon recording sports matches on a DVR, YouTube TV also has key plays, which makes it easy to view key highlights in minutes. With the launch of YouTube TV 5.1 channel audio in September 2022, Apple TV and Fire TV will have it as well. Previously, only Smart TVs, Roku, Google/Android TV devices had it.

Its monthly bill will increase to $73 due to a price hike in April 2023. There is also the lack of forced bundling, which may be a pro or a con depending on your perspective. Those who do not need Disney Plus or ESPN Plus might also enjoy it. The NFL Sunday Ticket will be available as a paid add-on to YouTube TV starting in 2023

As a relative newcomer to the video streaming scene, Philo launched its nationwide streaming service in 2017. It is one of the most affordable cable TV alternatives with a monthly subscription rate of $25 for 64 channels. Some of the standout channels include A&E, AMC, Comedy Central, Food Network, Hallmark Channel, and Nickelodeon.

The main drawback? You will need to check out other options if you are looking for news or sports channels on Philo.

Up to ten different accounts can be created with Philo and three devices can be streamed at the same time. In addition to unlimited DVR, they also offer a 7-day free trial. Movie lovers will also appreciate Philo’s affordable add-ons, including Reelz and Sony Movies for $3/month, EPIX for $6/month, and Starz for $9/month.

For people who want to watch the latest episodes of their favorite network shows, Hulu is a great alternative to cable TV. Moreover, Hulu has released its own content with Hulu Originals such as The Handmaid’s Tale, Only Murders in the Building, and Letterkenny. Additionally, they have a growing library of movies that are updated fairly frequently. A&E, HGTV, CNN, FX, MTV, and CNN are all included.

Meanwhile, Hulu’s lowest level service has been reduced from $7.99/month to $5.99/month, while some of the best streaming services are increasing their costs.

Hulu offers the following plans and pricing:

• Hulu $7.99 per month (or $79.99 per year). Enjoy over 85,000 episodes from your favorite shows, movies, and Hulu Originals.
• Hulu (No Ads) $14.99/month. This is similar to the above, but without any ads.
• Hulu + Live TV $69.99/month. Stream live TV and all the content in Hulu’s library.
• Hulu (No Ads) + Live TV now with Disney+ and ESPN+: $82.99 per month
• Hulu Premium Networks $8.99-$14.99/month. With HBO, Showtime, and Starz on demand, you can pay for premium cable channels as you wish.
• If you are a student, you may be able to sign up for Hulu (with ads) for just $1.99 per month.

Aside from unlimited screens, a cloud DVR enhanced with Spanish subtitles, and many other add-ons, Hulu lets you customize your plan even further.

Sadly, major sports channels such as MLB Network and NBA TV are often left out.

As part of their “Elite” plan, fuboTV offers access to 164 channels for $79.99 a month. In addition to this, there are a number of local channels, sports, and entertainment channels. For those who prefer premium options like Showtime, STARZ, and Regional Sports, there are additional add-ons available.

The following are the different fuboTV packages:

• Pro Quarterly. For $70/month, you’ll get 125 channels, 1,000 hours of Cloud DVR, and unlimited screens
• Elite Quarterly. For $80/month, you get 176 channels, fubo Extra (39 more channels), News Plus (12 extra channels), 1,000 hours of cloud DVR, and unlimited screens.
• Ultimate Quarterly. $100/month gets you 210 channels, fubo Extra (39 additional channels), News Plus (12 additional channels), SHOWTIME® live + on-demand, NFL Redzone, and 1000 hours of cloud DVR.
• Latino Quarterly. A subscription for 43 channels, 250 hours of Cloud DVR, and two screens at once costs $33/month. This package does not offer a free trial and is prepaid every 3 months at $99 per month.

Currently, fuboTV does not offer parental controls, which is a major oversight. You can cancel fuboTV at any time since there are no contracts.

Launched in 2020, Peacock is NBC’s streaming service. A free version, a premium version, and a plus version are available. However, new Peacock subscribers will no longer be able to sign up for a free membership tier as of January 30, 2023.

There are 50 channels and plenty of new and old shows and movies from studios like Universal and Dreamworks included in the free version. New episodes of NBC shows can be viewed a week after their airing.

With the premium plan, you’ll have access to more on-demand content for only $4.99 a month. As an example, the free version lets you watch the first five seasons of The Office, while Peacock Plus unlocks the entire series and bonus material. Furthermore, you will be able to watch the NBC and Bravo series the following day as well as all of the live sports events on the platform.

You can watch some titles offline when you subscribe to the Plus plan, which costs $9.99 a month.

There are countless shows you can watch, including Cheers, Below Deck, Parks and Recreation, and Bel-Air. There are 40,000 hours of movies, TV shows, and more on their platform. You can also watch live sports and events, such as the Olympics, Super Bowl, and WWE.

Vidgo is a newer alternative to cable television. As you watch a show or play a game, you can join chat rooms to share the experience with friends and family.

The Vidgo plan is a respectable one, despite its youth. You can subscribe to 110+ channels for $64.95 or 150 channels for $79.95 a month. Sadly, the service no longer offers free trials.

In addition to ESPN and Fox Sports, the package offers a full suite of lifestyle and entertainment channels. There are two major drawbacks to Vidgo, though — there isn’t much coverage of news networks and there isn’t a cloud DVR available.

CBS All Access was replaced by Paramount+ in March, 2021. The Paramount Network, Nickelodeon, and CBS are all included in the ad-supported Essential Plan, which is only $50 per year.

With Paramount+, you can remove all advertisements for a slightly higher $10 monthly fee. The pricing and offerings of Paramount could change in the near future since the service is relatively new. As an alternative to basic cable, this is a great option for less than $10 per month. Plus, this is the only home for CBS shows on-demand.

Included in the Paramount+ Premium plan are:

• On-demand access to over 30,000 episodes, movies, and originals
• Exclusive programming and Paramount+ Originals
• Stream the NFL and UEFA Champions League on CBS, as well as other top soccer leagues, plus MORE sports like PGA golf and NCAA basketball.
• CBS News Streaming Network and CBS Live offer 24/7 local and national news
• Watch your shows offline at any time by downloading them
• Live CBS channel from your local CBS affiliate
• Stream on up to three devices simultaneously with up to 6 profiles

In addition, if you have a T-Mobile postpaid wireless account, you can add the Paramount+ ON US offer without providing your credit card information for a year. On your T-Mobile bill, a monthly fee of $4.99 will be applied after your one-year offer period expires.

You can access Disney, Pixar, Marvel, Star Wars, and National Geographic titles through Disney Plus, along with some 20th Century Fox titles. Movies and series from the Disney vault as well as originals from Disney Channel are included.

For $14 a month, Disney Plus can be bundled with Hulu and ESPN+ to save sports fans money. It’s important to note that ESPN+ is its own app and doesn’t include live content from ESPN2.

To watch shows or movies on the go, Disney Plus lets you download them. In addition, you can download unlimited files from up to 10 devices as long as you remain a subscriber. It is also possible to watch on four screens at the same time. This might be the coolest thing about Disney Plus.

Additionally, Disney Plus offers more than 300 titles in 4k UHD and HDR, all of which are ad-free. Both of these upgrades are free, unlike some platforms which charge for them.

Pricing is as follows:

• For $7.99/month, you can get Disney+ Basic (With Ads)
• The Disney+ Premium subscription costs $10.99/month or $109.99/year.

In terms of OG cord-cutters, Netflix has long been a popular alternative to cable TV. Most likely because you have access to both movies and TV shows, including original content that won 25 Emmy trophies in 2022.

Netflix is what we’ve been using to watch TV mostly, and it’s one of my favorite alternatives to cable TV

Netflix has been putting a lot of money into creating its own content. This includes popular favorites like Stranger Things, Black Mirror, Orange Is the New Black, House of Cards, Arrested Development, and more.

They constantly add more titles, in addition to original shows like Stranger Things and The Crown, to keep this alternative feeling fresh. Furthermore, it is very good at analyzing your viewing habits and making recommendations for you.

Netflix offers the following plans:

• Basic with ads: $6.99 per month
• Basic $9.99 per month. On one streaming device, you can watch unlimited movies and shows. There are no ads and you can watch unlimited movies, TV shows, and mobile games.
• Standard $15.49 per month. You can watch on up to two screens simultaneously, with HD picture quality. Ads are not present.
• Premium $19.99 per month. With this, you can watch Netflix on up to four devices simultaneously in HD and Ultra HD. There are no ads as well.

The first month of Netflix is also free. Netflix subscriptions are affordable every month — but this might change as they keep hiking up prices. Netflix doesn’t require any contracts or other fees, so you can change your plan at any time.

DirecTV Stream (formerly AT&T TV, AT&T TV Now before that, and DirecTV Now originally) has changed its name many times without actually fixing its shortcomings. In addition to being more expensive than most, the Entertainment package only includes about 75 channels. Also, the DVR deletes recordings after 90 days.

What’s more, it will try to entice you into signing an annual contract — something you definitely do not want to do. To keep up with other games, DirecTV Stream will add live scores like Fubo.

Despite this, cord-cutters can still watch their favorite local teams through DirecTV Stream, as many regional sports networks are only available through DirecTV Stream.

In addition to regional sports networks, NBA TV, MLB Network, and college sports networks, the entry-level starter plan, Entertainment, costs $74.99 per month and has 75 channels. The next tier is Choice, which costs $99.99 per month, and has 105 channels.

With the Ultimate package, you get 140 channels, including Golf Channel and NHL Network, for $109.99 per month. With Premier, you get HBO Max, Showtime, Starz and Cinemax bundled into a single monthly fee of $154.99 — which might seem like a money waster.

On HBO MAX, you can stream over 10,000 hours of popular content on demand. As such, HBO’s streaming service should more than satisfy cord-cutters who still want premium content.

Shows and movies from WarnerMedia are included in the streaming service, as well as HBO content. That means HBO Originals such as Game of Thrones, Succession, Curb Your Enthusiasm, and more are also included.

HBO Max has 2,000+ movies and 500+ TV shows, such as Friends, South Park, and The Fresh Prince of Bel-Air.

You can choose between two plans, one with commercials, which costs $9.99 a month. For $15.99 per month, you can get ad-free access.

As an Amazon Prime member, you get access to Prime Video. Even with AmazonFresh and two-day shipping, you can’t beat 25,000 movies and TV shows for $14.99 a month. At $8.99 a month, Prime Video is good, though less so when compared with a standalone, non-Prime membership service.

Besides live sports coverage, such as the NFL, NBA, and WNBA, Prime Video also has a growing slate of original programming. This includes The Marvelous Mrs. Maisel and The Lord of the Rings: The Rings of Power.

With just a few original shows and movies to choose from, Prime Video cannot compete with Netflix’s vast catalog. Additionally, it doesn’t provide the immediate availability of Hulu, which streams many TV shows following their broadcast elsewhere the following day. Even so, Prime Video has plenty to offer.

Apple TV+ has carved out quite the niche with hit shows like Ted Lasso and Schmigadoon for only $$6.99/month. Since this is a relatively new service, it doesn’t have a large back catalog of content. It is growing rapidly, however, when it comes to original content.

It is important to note that Apple TV+ is a streaming service only and shouldn’t be confused with Apple TV streaming devices or Apple TV app. You can test out Apple TV+ for free for 7 days and it’s ad-free and available in 4K. Downloads last for 30 days and you can watch 6 screens at once.

A free year of Apple TV+ is likely to have been included as part of your new Apple device purchase (must be activated within 3 months). For $14.99/month, it’s also offered as part of bundles like Apple One, which includes Apple TV+, Apple Music, Apple Arcade, iCloud+, Apple News+ and Apple Fitness+. Apple TV+ is also free to students with an Apple Music subscription.15 Television Channels Online

15. Local Networks with an Antenna

You can watch dozens of live channels with a digital antenna, including ABC, CBS, FOX, and NBC affiliates based on your location. The advantages and disadvantages of a digital antenna are the same as those of any alternative to cable TV.

Pros:

• There are no monthly fees
• Resolutions up to 4K and HD are available
• There can be more than one TV served by one antenna

Cons:

• Channel selection is limited
• There may be some difficulty with the initial setup
• Bad weather can interfere with signal reception

Antennas for digital television are available both indoors and outdoors. The channel selection of indoor antennas will be less than that of outdoor antennas, but they tend to be cheaper and easier to install. The reception will be better and there will likely be more channels with outdoor antennas. But they can be more expensive and harder to install.

If you’re a sports fan, ESPN+ is the best alternative to cable TV. It’s $9.99 per month and you can stream live sporting events, watch sports networks, and watch ESPN+ Originals.

It does not replace ESPN, but it does provide access to exclusive content. Moreover, The app is the exclusive provider of UFC pay-per-view fights, which you receive at a reduced rate.

Save even more when you sign up for a year for just $99.99. For $12.99 per month, you can bundle ESPN+, Hulu, and Disney+.

There are many shows and movies available on Crackle, a free, ad-supported video-on-demand service. Chicken Soup for the Soul took majority control of Crackle in 2019 after Sony acquired it in 2006. Despite not being Netflix or HBO it’s become one of the most popular free services.

Crackle Originals was one of the first free streaming services to offer original content. The Crackle catalog is smaller than Hulu’s original catalog, but for a free service, it’s pretty solid. Drama, comedy, docuseries, miniseries, and movies are among the service’s original content offerings. With over 38,000 hours of content combined, it continues to grow.

At only $6.99/month, Frndly TV claims to offer some of the cheapest live TV programming.

With more than 40 live streams, on-demand channels, and DVRs it offers a wide variety of entertainment. There are several popular channels, including A&E, Hallmark Channel, and the Outdoor Channel.

In addition to 1,000+ on-demand movies and shows, there is live streaming available as well. Most devices, including FireTV, Roku, Android TV, Apple TV, and iOS mobile apps, can be used to watch Frndly TV.

With Frndly TV, you can also record unlimited hours and watch shows 72 hours after they air. When you subscribe to the premium plan, you can record multiple movies and shows at once and keep them for nine months.

There are three services that Frndly offers:

• Basic – $6.99/month. Watch live and on-demand TV on one TV
• Classic – $8.99/month. Stream HD video on two screens simultaneously, record for three months, watch on two screens at once
• Premium – $10.99/month. Watch on four screens at once, record for nine months, and DVR is unlimited

As a streaming service, Vudu offers two primary functions, each appealing to a different type of audience. Featuring over 200,000 titles to rent or buy, it offers new releases and catalog titles as well as digital rentals and purchases. Additionally, it offers free on-demand streaming of movies and TV episodes without subscriptions or monthly fees.

In 2021, it merged with Fandango’s FandangoNow to become one popular streaming service. The only catch is there are a lot of ads, even though it’s free. A second complaint is that 4K quality is only available for rented content, not for free content.

This free over-the-top (OTT) streaming service was launched in 2014 and acquired by Viacom in 2019. Pluto TV is currently being marketed by Viacom as a way to market Viacom’s other services. Viacom has expressed interest in developing Pluto TV into a more competitive force in the streaming market

Accessing Pluto TV is as simple as launching your browser or downloading the app. The service can be enjoyed as long as your internet connection is stable. Basically, Pluto TV lets you watch it online across your devices, at the same time with your friends, and without spending a penny.

It reaches more than 22 million monthly viewers through its free streaming service. There are over 200 channels available to its viewers, including Viacom properties such as Comedy Central, MTV, and Nickelodeon. There are also notable content providers like A&E Networks, CNN, Nerdist, and WeatherNation TV that have partnered Pluto TV as well.

Users worldwide can access more than 200 live TV channels and on-demand content with the Samsung TV Plus app, included with all Samsung Smart TVs. To access the app, you don’t have to subscribe or create an account.

Samsung’s streaming platform is available on all Galaxy Devices, mobile and tablet, by updating their operating systems to Android 8.0 or higher, aside from TVs (specifically those released from 2016 onwards). If you want to watch your favorite channels hassle-free and cost-effectively, it’s a great choice for cord-cutters.

Launched in 2014, Tubi is often called “the free Netflix” because it offers quality movies and TV shows for streaming online. With one of the most extensive titles lineups, this free, ad-supported service is a popular cord-cutting option.

Most viewers don’t mind the low resolution because of the easy interface, the constant updating of the library, and of course the free titles. The service also includes parental controls that parents will appreciate.

23. The Local Library

Libraries are my favorite alternatives to cable TV. Why? Because it is 100% free!

A library has an enormous collection of movies (even new releases, blu-rays, and more), complete TV series, and more. In many areas, libraries collaborate with other libraries, so you can probably find what you’re looking for at another if you don’t find it at your local library.

Free digital access to TV and movies is available through many libraries now, such as:

The downside? You may be limited to how many shows and movies you can watch each month. However, if you truly want to cut the cord and save a lot each month, this is probably your most advisable option.

FAQs

What is the best streaming service for live TV?

Depending on what you are looking for, the answer may vary. Among the alternatives to cable, YouTube TV may be the best. It offers a variety of local channels, sports networks, and more. In addition, your DVR allows you to save an unlimited number of recordings.

How can I get rid of cable TV?

Your first step should be to check to see if you are still under a contract with your current cable company. If not, check out our streaming reviews and decide which is best for you.

Is it possible to watch local channels without a cable subscription?

Many cable alternatives offer local channels for free, including DIRECTV STREAM, Hulu + Live TV, and YouTube TV. If you prefer over-the-air broadcasts, choose the right digital TV antenna for your area. Alternatively, if you have access to it, you can download the Locast app.

Where can I watch free TV shows online?

Roku TV, Fire TV, and other streaming devices offer a number of free streaming services. You can watch thousands of movies and TV shows on these services, such as Hoopla and Tubi TV. In addition to streaming YouTube videos for free, you can also watch advertisements on the site. These are great budget-friendly cable TV alternatives.

The post 23 of the Best Alternatives To Cable TV In 2023 appeared first on Due.

What is the key to financial independence? Well, it’s not the amount of money you have. It’s how you spend your money.

The reason? In order to create and maintain wealth, you should live below your means, as well as avoid debt. It is well known among millionaires that spending less than you earn opens the door to more opportunities. Your money can be invested, saved, or donated to a charity of your choice. In a perfect world, you would be able to do all three.

And, that’s where Jim Rohn’s top piece of financial advice enters the ring.

The 70/30 Rule

For those who are unfamiliar, Jim Rohn is an entrepreneur, author, and motivational speaker. As a guideline for spending, saving, investing, and donating the 70/30 rule can be used.

Why can this be effective? The biggest hurdle for most people is living on 70% of their income after taxes, which includes all necessities and luxuries. An additional 30% is allocated for investments, savings, and charities.

In short, getting your spending under control and committing to a budget is necessary if you live on less than you make. You can’t save, invest, pay off debt,or give to causes you care about when you live paycheck to paycheck. Again, living paycheck-to-paycheck is not always the result of insufficient income.

In a Willis Towers Watson survey conducted in 2022, 36% of six-figure earners lived paycheck-to-paycheck, a percentage that has doubled since 2019. In addition to record inflation, a lack of a sound money management strategy may also be contributing to the problem.

Money can easily get spent without a plan when you spend without planning and you don’t get paid until the next month’s income arrives. Even better? Eventually, this becomes a habit.

According to Thomas Corley, who studied the daily habits of more than 350 rich and poor people for five years, self-made millionaires make saving a habit. Early savings will help you accumulate more wealth. During their pre-millionaire years, 94% of the self-made millionaires in my study developed the habit of saving 20% of their income.

Thanks to Jim Rohn’s 70% Budget Rule, you can break free from the paycheck-to-paycheck cycle. Furthermore, you can use this advice right away to save, invest, pay off debt, and donate.

Breaking Down the 70% Budget Rule

In spite of the fact that this rule seems pretty straightforward, let’s break it even further so that you can finally set up a budget that works for you. However, to simplify this rule further, it has been modified into the 70/20/10 rule.

In this case, your take-home pay is divided into three buckets based on a specific percentage:

• The majority of your income, 70% goes towards monthly bills and everyday expenses.
• 20% goes towards saving and investing.
• 10% goes towards debt repayment or donation.

The goal of this ratio is to invest in your long-term financial well-being as well as your current lifestyle. Plus, the 70/20/10 rule can be adjusted according to your specific financial situation.

Use 70% of Your Income for Monthly Spending

Regardless of what variation you use, this part is non-negotiable. This means spending no more than 70% of our monthly income on living expenses. But what does that really mean?

There are two types of living expenses:

• Essentials like food, rent, and utilities.
• Discretionary, such as a pair of new shoes, eating out, and entertainment.

The 70% rule is a good guideline for keeping enough money for essentials and discretionary spending so that we can afford everything we need and want in life. You can use the remaining 30% for saving more money and repaying debt, whether it’s credit card debt, utility bills that are late, or other personal debt.

The difference between fixed and variable expenses.

Budgeting requires understanding monthly expenses and differentiating between fixed and variable expenses.

Fixed expenses.

A fixed expense is one that remains the same on a monthly basis. Some common examples include:

• A mortgage or rent payment
• Utilities — are typically variable, but some utility companies also offer programs that estimate your average monthly cost so you pay more regularly
• Car payment
• Insurance premiums
• Subscriptions, such as streaming services or magazines
• Membership fees, professional organizations, or gyms
• Child care — you can add more for extra babysitting nights if necessary

Variable expenses.

Variable expenses, on the other hand, are those that change month to month, such as:

• Utilities
• Groceries
• Gas
• Dining out
• Entertainment
• Travel
• Gifts

When managing a budget, it is important to take both types of expenses into account since they can eat up a huge chunk of it. As such, in order to become a better money manager, you should be aware of fixed versus variable expenses on a monthly basis.

You Should Save 20% of Your Income

Saving is an essential part of everyone’s budget for monthly living expenses and unforeseen events. This is why you plan to save 20% of your total income in the 70% budget. This is an excellent goal, especially since only 43% of U.S. adults would use their savings to pay for an unexpected emergency expense.

You may want to consider the following personal finance priorities:

• Emergency fund. In case of an emergency, you can draw from your emergency fund. This is usually enough to cover basic living expenses for three to six months. But, start with a smaller amount like $1,000.
• Sinking funds. These are for bigger expenses like car repairs that can arise occasionally.
• Retirement savings. Some of the most common retirement accounts are 401(k), 403(b), and 457(b). Roth IRAs and traditional IRAs are also options.
• Savings plans for college for your children through 529 plans
• Start-up capital for a business.
• An investment in stocks and bonds
• Real estate investing, such as a real estate investment trust, or REIT.

Building up your emergency fund should be your top priority if you have little to no money in your savings account for emergencies. As you pay bills, variable expenses may arise, so saving is also essential.

The good news is that you can save money for multiple saving goals simultaneously. For example, the thought of retiring may seem far off. However, it’s best to start early to benefit from compounding.

Set Aside 10% of Your Income for Debt repayment or Charitable Giving

You will pay off debt or donate (or both) the remaining 10%. It might be a good idea to:

Paying off debts.

If you have debt, you could include it within this 10% category based on your financial situation. You are not limited to spending less than 10% of your income on loan payments, however. As you may recall, student loans and other debts were included in the 70% category of expenses.

The minimum required payments on your student loans and other debts should be included in your budget. You can also send extra money to speed up the process of getting out of debt if the minimum payments don’t work.

This final 10% can be calculated in any way you like. It may be more beneficial to focus on paying off your debt rather than giving. It’s especially important to pay off high-interest debt quickly if it comes with a high-interest rate.

There are two popular options when tackling your debt:

• Debt snowball method. No matter what the interest rate is, you start with the smallest debt.
• Debt avalanche method. As an alternative, you can pay off the debt with the highest interest rate first.

You must remember that your minimum debt payments come out of your spending category when using the 70/20/10 budget. To reduce debt faster, extra payments are required in the extra 10% category.

Sharing or giving.

Giving to something that is meaningful to you can be part of your final 10% category. You can give regularly to the same organization every month, or you may wish to vary your giving, like:

• Giving or tithing to a religious organization.
• Contributing to charitable causes.
• Donating to your college alma mater

FAQs

1. What is the 70/30 rule?

According to Jim Rohn, who is an author and motivational speaker, you should live on 70% of your income and save 30%.

The 70% includes all the necessities and desires you may have – housing, utilities, food, and clothes. It also includes small pleasures and even luxuries like a vacation or dining out.

How about the remaining 30%? He recommends an even split between saving, investing, and donating.

2. Why use budget percentages?

Rather than allocating a set dollar amount to each of your expenses, you should focus on percentages when creating your budget. The reason? Using a budget percentage, you can see how your income is spent on a monthly basis. As a result, identifying areas where spending may need to be adjusted is easier.

Furthermore, a percentage-based budget ensures that every dollar you earn has a purpose. When you feel that you are not meeting your financial goals, this is especially important.

3. If you’re over the 70% budget rule, what should you do?

Do you exceed the 70% guideline? Don’t panic. Begin cutting your expenses as soon as possible.

Of course, that’s easier said than done. But, to get started, take a hard look at your budget. From there, remove unnecessary costs that are “want” that you could eliminate on a monthly basis. It could include dining out, shopping for new clothes, and subscriptions to streaming services. Continue deleting until you reach 70%.

If you still cannot fit it within 70%, what are your options? Be honest with yourself and take action. The solution may be as drastic as selling your vehicle or moving to a cheaper house.

There are other options, such as asking for a raise or switching jobs. If you want to introduce multiple income streams, you might consider starting a side hustle.

4. What are the advantages of the 70% budget?

Budget rules such as 70/20/10 offer some great benefits.

The method is pretty simple to follow. By dividing your take-home pay into these three categories, you can spend how you like without worrying that you’ll derail your savings or debt repayment plans.

Although this budget has some structure, it isn’t overly restrictive or strict. Each dollar doesn’t have to be spent exactly the same way.

Moreover, this budgeting style puts your financial future first. Building an emergency fund, investing for retirement, paying off debt, and giving back to others will all be part of your daily routine as well.

5. What are the disadvantages of the 70% budget?

This budgeting method may prove difficult to maintain due to its inability to prioritize personal financial needs and wants over unexpected expenses.

People may use credit cards to buy items they cannot afford when they start out with such a budget. Due to interest payments, this could lead to overburdening with debt over time.

Buying a house or financing college tuition may not be possible with a 70/20/10 budget strategy’s fixed percentage model.

Retirement goals and emergency funds can also be affected by a limited number of long-term savings.

When this model is relied upon too heavily, there can be unintended consequences. If not monitored carefully, constantly depleting savings creates a cycle where you can’t save for retirement or necessities.

The post Jim Rohn’s Top Piece of Financial Advice You Can Use Right Now appeared first on Due.