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Vicky Monroe

Why Supporting Local Businesses Using SMBX Benefits You and Your Community

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support small businesses

Due to the pandemic, small businesses need our support now more than ever. As of September, nearly 100,000 small businesses have closed their doors for good because of COVID-19, and many more are struggling. 

In an effort to help, we’ve all been donating to GoFundMe campaigns, purchasing gift cards, and ordering as much takeout as we can. But if you’re looking for new ways to support small businesses during this difficult time, check out SMBX. 

What is SMBX, and How Do They Support Small Businesses? 

SMBX is an awesome investment platform that allows you to purchase small business bonds from local brands you love. If you’re not familiar with small business bonds, they’re basically like loans.

A bunch of individual investors like you and me can purchase a company’s bond through SMBX. The proceeds from the sale of the bonds go to that local small business (minus a small processing fee) so they can use the money to grow. 

The best part is that you can get a return on your investment, so it’s a win-win for you and the company. You could earn up to 9% interest from your bonds and receive principal and interest payments every single month until they mature. 

Keep in mind that all investments have risks, though—so it’s recommended that you don’t invest more money than you can afford to lose. But if you have extra cash in your bank account and want to put it to good use, SMBX is a great place to invest it. 

My Experience with the Sign-Up Process 

Investment platforms can sometimes be hard to navigate, but not SMBX. It has an attractive, user-friendly interface that makes signing up a breeze. The whole process took me under 15 minutes, so it’s easy to fit investing into your busy schedule. 

First, you have to create an account by entering your name, date of birth, address, and email. 

You’ll also be asked for your estimated annual income and net worth. If you’ve invested any money in crowdfunding over the past 12 months, you’ll have to enter that too. SMBX needs this info to calculate your investment limit. 

Then you can connect your bank account or credit card to the platform and start investing. There’s a 4% surcharge on credit cards, but buying bonds with your bank account is completely free. I chose to link my bank account, which was super easy. 

SMBX uses a data transfer network called Plaid that allows you to securely sign in to your bank account. I just had to enter my login details, account number, and routing number, and I was ready to go. 

Investing with SMBX 

Now for the fun part—picking which businesses you want to support!

SMBX currently has 15 different small businesses you can invest in. They add new bonds all the time, which allows you to keep expanding your portfolio. 

Each small business bond has a dedicated page with lots of information about the company. 

On the right-hand side of the page, there’s a quick bond summary with bond duration, yield, and the minimum and maximum amounts of money the company needs to raise. You can also see when the fundraising period is set to end and how much money has been collected so far. 

Further down the page, there’s an about tab where you can learn more about the founders and how they started and grew their business. All of the stories I read were really inspiring and worth taking a few minutes to read. 

There’s also a section about how they plan to use the funds to grow their operation and achieve their goals. I loved seeing how my investment would benefit the company and make a real difference. 

Under the documents tab, you can access the bond prospectus, which gives you detailed information about the investment. There’s also a link where you can view the company’s financial information. 

And if you’re short on time, there’s a handy summary of important details from the bond prospectus and the company’s financials.

Buying a Bond 

With so many worthy businesses to choose from, it’s pretty hard to decide which one to invest in. I spent a good 30 minutes reading each company’s story and learning about their products. 

There was a keto cookie company, a minority-owned trucking business, and more, so it was a tough choice. But ultimately, I decided to invest in Jule’s Foods, a vegan cheese company based in California. 

I eat a plant-based diet, so I always want to support small businesses that produce delicious food for people with dietary restrictions. I was also inspired by Julie and her husband Stephen’s story. 

They decided to adopt a healthier plant-based diet after Julie was diagnosed with Stage 4 colorectal cancer. Now they share their lifestyle and love of fine foods with others through their business. 

Once I decided which company to choose, the process of buying the bond was easy. You just have to hit the yellow button on the left side of the screen that says “buy bonds” and a separate window will pop up. 

Then you can enter how much money you want to invest. SMBX has a minimum investment of just $10, which enables you to get started even if you don’t have a lot of spare cash. I chose to put in $50, which got me 5 bonds. 

You’ll also be able to see the estimated return based on how much money you plan to invest. The bond I picked has a 7.5% interest rate with an estimated total return of $60.11 on my initial $50 investment. That means I can expect to receive around $1 per month over the total duration of the bond, which is 60 months. 

Receiving Your Bonds

A few business days after the fundraising period ends, I’ll get my electronically signed bond certificate and start receiving interest and principal payments soon after that. I’m looking forward to seeing how my investment performs! 

One thing to keep in mind is that you can’t sell or transfer your bond for at least a year, and there’s no guarantee you’ll be able to find someone to buy it after that. If you need an investment that’s fairly liquid, small business bonds aren’t the best choice. 

I don’t need to access my money anytime soon, so that doesn’t bother me, especially since I’m supporting small businesses. 

Wrapping Up 

Buying local is really important during the pandemic. But if you want to support small businesses even more, investing in bonds through SMBX is a great way to do it. 

I thought signing up and purchasing my first bond was easy. I liked how much information SMBX provided to help me make a good investment decision and learn more about amazing local businesses. 

It was pretty tough to decide which business to invest in, so I could definitely see myself making another investment in the near future. The bonds provide a high return of up to 9% and support awesome companies, so it’s really a win-win. 

I’d highly recommend the platform to anyone who wants to invest in local American businesses to keep our economy and communities strong. 

If you want to try out SMBX, you can sign up here. Let us know which small business bonds you buy!

The Best Purchases I’ve Ever Made

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Last week I wrote a blog post on the top three purchases I regret the most. So I thought I’d follow it up with some positivity and talk about some of the best purchases I’ve ever made. Whether they cost $50 or $500, these four items were worth every penny I spent on them.

Ping Pong Table

Table tennis was one of my favorite activities growing up and something my dad and I bonded over. So when I saw that Walmart was selling ping pong tables for less than $200, I had to snap one up for the nostalgia factor alone. 

I didn’t think I would use it much, but my partner and I have been playing a couple games of ping pong almost every day. It’s been a great way to beat the winter and quarantine blues, so it was definitely worth the money. 

Exercise Bike

I bought my exercise bike a couple months before the pandemic. It’s not a Peloton, it’s just a basic stationary bike that I spent about $500 on.

I have to cycle for at least 30 minutes per day to help treat my chronic illnesses. I bought the bike because I knew I wouldn’t be able to stick to my exercise plan if I had to drive to the gym every day. 

Little did I know that in just a few months, going to the gym wouldn’t even be an option because of the pandemic. I’m so glad that I decided to purchase my bike when I did.  Without it, I wouldn’t have been able to exercise and take care of my health during quarantine. 

SodaStream

Another purchase I love and use daily is my SodaStream sparkling water maker. My partner and I are big seltzer drinkers, so we were buying multiple packages of La Croix every week before we got our SodaStream. 

Seltzer is surprisingly expensive and usually costs $4 per package in my area. Buying a SodaStream has allowed us to drink all the seltzer we want for a fraction of the price. 

My House

My house is hands down the best purchase I’ve ever made. 

I only wanted to spend around $150,000 on a house, but wasn’t impressed with any of the properties in that price range. They were all pretty small and dark and would’ve needed a lot of work. 

As soon as I agreed to up my budget by $30,000, my real estate agent found the red farmhouse I’m currently living in.

It was built in the 1970s, so it’s a bit outdated. But it has tons of living space, natural light, and character. Unlike the other homes I looked at, I can see myself staying here for a long time. 

When you’re making a big purchase like a house, it’s a good idea to be flexible on the price if you can afford to. Upping your budget by a couple grand won’t change your monthly payments much and could get you a nicer property. 

Moving every few years is expensive, especially when you have to sell a home and pay a bunch of closing fees. So even if you have to spend a little more to get a place you want to live in long-term, it’s usually worth it. 

What are your favorite purchases you’ve made over the years? 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
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Everything You Need to Know About Dogecoin

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Dogecoin is a type of cryptocurrency that was created by Billy Markus and Jackson Palmer mostly as a joke. The coin has an image of a dog on the front and was inspired by a popular internet meme that features a Shiba Inu.

Palmer and Markus never expected dogecoin to catch on, but it’s recently grown to become the 10th most valuable crypto. To help you decide whether or not dogecoin is a good investment, here’s everything you need to know about this unique currency. 

What is Dogecoin?

Dogecoin is a type of cryptocurrency that’s stored in a digital wallet. You can trade it, hold it as an investment, or spend it online. 

Most retailers don’t accept cryptocurrency because it’s more volatile than fiat money like USD. But you can still use it to purchase gift cards through services like Bitrefill. Many fans of dogecoin also use it to give tips to online content creators to thank them for their hard work. 

Is Dogecoin a Good Investment?

Dogecoin has recently surged in popularity. Many celebrities like Elon Musk and Snoop Dogg have started tweeting about it, which has created some buzz and caused its price to increase. 

Everybody’s talking about dogecoin, so it may seem like a good time to invest before prices go up even more like they did with bitcoin. However, there’s no guarantee that dogecoin will continue to rise. 

Many people believe that part of why bitcoin is in such high demand is because the supply is limited. There are only a certain number of bitcoins, which may be driving up the price. 

However, dogecoin is uncapped, so the supply isn’t limited. Experts believe that this may prevent it from becoming as valuable as bitcoin and other major cryptocurrencies. 

It’s also worth keeping in mind that cryptocurrencies are considered risky investments because prices rise and fall in a pretty volatile way.  So even if you think dogecoin is the next big thing, you definitely shouldn’t pour all of your money into it.

If you want to purchase dogecoin, it’s wise to keep it as a small part of your portfolio and allocate most of your savings toward traditional, proven investments. 

How to Get Dogecoin

You can either get dogecoin by mining it or purchasing it through an exchange. Here’s a closer look at both options. 

Mining Dogecoin

If you’re not familiar with mining, it involves running software on your computer that confirms the accuracy of recent cryptocurrency transactions. This helps secure the network and prevents people from lying and claiming they have more coins than they actually do. 

In exchange for performing this task, you may get a small reward. But your computer has to be the first to document the transaction and add it to the blockchain, so you’re not guaranteed any dogecoins. It’s kind of like playing the lottery, so you can’t go into it expecting to win every time. 

However, the great thing about mining dogecoin is that you have a much higher chance of winning than you would with bitcoin. It also takes less computer power and time, so it’s easier to get started with. 

Buying Dogecoin

If mining dogecoin sounds like too much work, you can purchase it on exchanges like Binance and Kraken. 

Unfortunately you can’t buy dogecoin with USD. So you’ll have to purchase another cryptocurrency that’s listed as a pairing and trade it for dogecoin. 

Wrapping Up

If you’ve never bought in cryptocurrency before, dogecoin is a great coin to start with. But don’t get carried away by the hype and invest more money than you can afford to lose.

Even though prices have been on the rise recently, they could fall at any time. Cryptocurrency is a pretty volatile investment, so you should always exercise caution when deciding how much to buy.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Why I’m Not Renovating My Outdated Home

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Nearly 40% of Americans plan to renovate their home within the next two years, but I’m not one of them. Even though my house could definitely use some updates, I’ve decided that the cost of bringing my 1970s home into the 2020s just isn’t worth it. 

Here’s why. 

I Wouldn’t Get My Money Back 

Studies have shown that you almost never get your money back when you pour it into home upgrades. 

My kitchen currently has blue laminate countertops, so it could definitely use a minor remodel. But if I decide to sell my home down the line, I’ll only get back about 77% of the money I put into redoing the counters. 

Instead of spending that money improving the aesthetics of my kitchen, I could put it in the stock market and get a 7% return. That’s one of the main reasons why I decided home improvement projects aren’t worth investing in. 

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Upgrades Wouldn’t Improve My Home’s Function

I was lucky to find a house that has newer home systems with a lot of life left in them. I don’t have to make any upgrades to bring my home up to a livable standard. Any renovations I do now will only improve the look of my home, not the function. 

Even though the bathroom has linoleum tile that’s a little scuffed up from years of use, it still does its job. I’d only be replacing it because I like the appearance of slate better. That doesn’t seem like a very good reason to pull a few thousand dollars out of my savings account in an unstable economy. 

Home Improvement Takes Time 

Home improvement projects take a lot of time, especially if you try to do some of the work yourself to reduce labor costs. 

I don’t want to devote tons of time to home maintenance because it would take me away from my business and side hustles. Time is money, and I don’t want to sacrifice it making home upgrades that won’t give me a good return when I could be working instead. 

Renovations Can Be Unpredictable 

Renovations are unpredictable, and a lot of things can go wrong financially. 

There’s always a chance that the contractor you hire will perform substandard work that you’re not happy with. It’s not always possible to get your money back, so you may have to spend extra money to make things right. 

Remodels can also go over budget, which can cause financial strain. I put a lot of money down on the house, so I don’t want to drain my savings further by remodeling my kitchen. 

Finishes Go In and Out of Style 

Another reason I’m not rushing to remodel is because design styles are constantly changing. 

Right now, farmhouse decor and all-white kitchens are super popular. But if I renovate my home to match current trends, it could look outdated in the future when those finishes are no longer in fashion. 

That’s why keeping your house updated is pretty difficult. It will always be outdated to some degree, so I’ve learned to embrace the blue carpets and track lighting in my home. 

Since I’m treating my home mainly as an investment, I’ve decided home improvement projects aren’t worth my time or money. 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

How to Request a Bonus From Your Boss

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If you’ve hustled this year and brought in lots of new business for your employer, you may be considering making a bonus request. Although it can feel a little awkward to ask for money, you deserve to be recognized and compensated for your excellent performance. 

Here’s the best way to frame a bonus request so it doesn’t come off the wrong way to your boss. 

Pick a Good Time to Talk 

Bonus requests usually go over best when you make them in person. Schedule a time to sit down and talk to your boss face-to-face. 

Try to pick a time when you think your boss will be in a good mood. If they’re not a morning person, don’t ask for a meeting at 9 a.m. on Monday. 

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Go the Extra Mile 

In the weeks leading up to the meeting, make sure you’re giving your all at work. Show up early and stay late. Meet all of your deadlines and go above and beyond the call of duty. 

If your boss notices how hard you’re working, they may be more receptive to your bonus request when you make it. 

Don’t Say You Need The Money 

If you’re trying to pay off debt or max out your Roth IRA, getting a bonus can get you a lot closer to your goals. But don’t tell your boss that you want a bonus because you could use the money. It usually isn’t appropriate to bring up your personal finances at work. 

Highlight Your Performance Instead 

Your boss won’t give you a bonus just because you have credit card debt. But they may be open to granting your bonus request if you highlight all of the ways that you’ve improved the company’s bottom line this year. 

Prepare for your meeting with your boss by making a list of your recent work achievements. Try to include statistics to show how your much hard work has directly benefited the company. 

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Don’t Push It 

Many businesses have struggled because of the pandemic. So if your boss says that the company just doesn’t have enough money to give you a bonus, don’t be pushy or act disappointed. 

If there isn’t enough wiggle room in the books to give employees more money, your boss may still be able to make other concessions. Ask about things like vacation days and stock options. If you want more flexible hours or work from home privileges, now may be a good time to bring it up. 

However, if your performance is the reason your boss isn’t granting your bonus request, you’ll make things worse by requesting flextime or extra vacation days. Instead, follow up by asking your boss how you can improve in the coming year and get the bonus you want next time. 

It can feel awkward to ask your boss for more money, especially during a pandemic when many businesses are struggling. But if you’ve delivered results that have kept your company afloat during this difficult time, you deserve to be compensated for your hard work.

Keep these tips in mind when you make your bonus request and you just might get that extra check you want. 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

How to Avoid Stock Investment Hype

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Recently it’s been hard to avoid stock investment hype. Everyone’s been talking about how amateur Reddit investors drove up the cost of GameStop stock and beat Wall Street. 

Financial websites gave daily updates on the situation and tried to predict which stocks were next. Many people invested their hard-earned money into GameStop and other popular stocks like AMC at the top of the market hoping that they would continue to go up. 

GameStop stock has fallen from nearly $350 a share at its peak to only $50. Given that the company closed 462 stores in 2020 and was struggling before this recent surge, it’s unlikely that GME will go back up. 

AMC has also fallen back down to $5.65 after its rapid rise to $19.90 per share on January 27th. 

Although some people made thousands of dollars off of GME and AMC because they got in early, it’s likely that many more lost money. The reality is that by the time you’ve heard about a stock, it’s usually too late to invest and still make a profit. 

Why You Should Avoid Stock Investment Hype 

If you pay attention to stock investment hype and allow it to influence your decisions, you’ll probably end up losing money. 

By the time media outlets are covering a particular stock, it’s typically already at its peak because so many people have bought in and driven up the price. Getting in at the top of the market means that you’ll lose a lot of cash when the hype is over and the price of the stock falls back down to normal levels. 

If you invested in GME or AMC and didn’t turn a profit, the good news is that you can deduct your losses to offset your income taxes up to $3,000. 

But if you want to build real wealth instead of losing money on risky investments, here are some steps you can take to avoid stock investment hype in the future. 

How to Ignore Investing Hype

The best way to avoid stock investment hype is to stay offline. 

Amateur investing forums like WallStreetBets encourage people to spend money on volatile stocks and assets, which won’t help you grow your money long-term. 

For most people, building wealth takes decades and involves diligent saving and investing in vehicles that track the market like low-cost index funds. They’re typically a much better bet than risky, overhyped stocks.

It’s usually not possible for the average person to beat the market by day trading individual stocks. Even Wall Street investors who have access to lots of financial analysis tools often have a hard time outperforming the S&P 500. 

In fact, in two 30-year studies, the S&P 500 outperformed fund managers 97% and 94% of the time respectively. 

Trading stocks can be fun and exciting, but there’s a chance that you’ll lose most of your money. So I tend to view day trading as a form of gambling. 

I only put around $20 into my Robinhood account so I could try my hand at day trading as a hobby. Although the recent hype around GME gave me a little bit of FOMO, I don’t plan on putting any more cash into Robinhood. 

I know that the best path to wealth is lower-risk investments that track the S&P 500, so that’s where most of my money will be going. 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.