Uncategorized - Money Not Spent

Have you heard that you need a lot of money to invest or investing is for rich people? I initially
thought that, too, as I opened up my Roth IRA with Vanguard until I had enough in the money market to transfer money into a mutual fund.
Well, thanks to apps like Robinhood, no longer do you have to have $3,000 to invest as you would with most brokerage mutual funds to invest. If only Robinhood had been around sooner, I could’ve started my financial journey much earlier. Now I will review Robinhood and my
experiences with the popular app.
What is Robinhood?
Robinhood is a popular investment app used primarily by millennial demographic to trade
stocks, EFTs, and Bonds on their phones. The app is a popular alternative for millennials that want to invest with little money or without having to buy a mutual fund through a typical a brokerage account or day traders
Changing The Industry
The app differs from other platforms as it has commissioned free trades. The app has changed
the industry and big brokerages have taken notice and cut fees and commissions on funds. They are benefiting investors across the board, as fees can cut into your investment earnings.

Pros & Cons of Robinhood:

Like any financial app or investing technology, there will be pros and cons when it comes to the
platform. For Robinhood, here are revered pros and the not so friendly cons of the platform:
Pros
● -Commission-free
● -Hands-on easy to use platform
-Exposure to International Stocks
● -Options to invest a variety of ways, stocks and risky alternatives
● -Robinhood Gold feature for extended trading
● -Partial Shares options
● -Dividend Reinvestment
● -Categories such as Top 100 stocks
● – Free stock for joining and referrals
● -Cash Management (Although currently low-interest rates in the current market)
● -Learning experience
● – *Can create passive income capital gains and dividends (Also potential for loss, due to
viotile markets No guarantees individual stock investing)
Cons
● -Delayed time on stock trades (doesn’t seem always to trade real-time, can be seconds
off from my experiences)
● -Occasionally glitches
● -Customer Service not Great
● -Had an issue with the server in March leading to lawsuits
● -Doesn’t teach how to invest
● -Isn’t as tax efficient and Roth IRA at brokerage such as Vanguard Fidelity, Charles
Schwab.
● – For inexperienced investors can be particularly risky
● -Easy to get anxious and make poor decisions
● – Waiting for funds to start trading or withdrawing after the sale. (6 trading days after the
sell of securities can you withdraw money into your bank)
● – Others in Space Webull, M1 Finance, Wealthfront, Betterment, Stash, Acorns
● – It doesn’t have to invest advice or help other apps provide.
● – It doesn’t offer tax-loss harvesting, a strategy used by other apps to sell stocks that lost
money at the end of the year that may have lost money to reduce taxes. (Typically this
would likely be done in December) Once you sell a stock, wait 30 days before you can
repurchase stock to qualify for capital loss. Otherwise, it is considered a wash sale.
Who is Robinhood for
Millennials or people interested in trading stocks. People who have money to invest or risk.
What’s cool about Investing on Robinhood?

People who have ever been interested in being Shareholders in a company that you consume products and services from, for example, if you buy the latest iPhone, maybe you’d consider
Apple stock, if you like coffee, instead of $5 latte perhaps consider Starbucks
ETFs you may decide to invest in a sector or basket of companies you have options in ETFs
A few popular ETFs include l
VOO S&P 500, VTI Total Stock Market, QQQ (100 stocks on Nasdaq including Tesla) BND
Total Bond or with your values such as social responsibility fund like ESGV that tracks stocks that do suitable for environmental and or social issues
Note-These are examples, not stock recommendations) Stocks are volatile and come with risk and I am not currently a financial Advisor or fiduciary)

How does Robinhood stack up against the competition
● Robinhood is the most popular downloaded mobile investment app.
● Stash is 2nd most popular Stash is educational for beginners and encourages more EFT trading, which usually is safer than individual stocks as far as being less volatile, and having a mix of companies to diversity. Stash, however, takes a $1 month for service, which makes the app more expensive to use than Robinhood. Stash has fractional shares and automatic weekly payments into ETFs and stocks.
● Acorns is another app suitable for beginners but are less aggressive investments, and it’s a better savings account for purchases you round up using your debit card, in theory,
helps you invest spare change.
Betterment and Wealthfront are more diversified portfolios or pies that offer help from financial professionals and Robo investing. These apps have excellent benefits. Robinhood doesn’t include pie portfolio and tax loss harvesting.
Other apps comparable to Robinhood are WeBull and M1 Finance, with a similar setup.
*Disclosure of list I have only personally used and invested with Robinhood, Stash, and Acorns
app.

Cool Things to Know About Robinhood
It’s a game-changer for investors that can now invest instead of waiting on the sidelines. People can now get into stocks, even partial shares of companies. The feature includes 100 Most
Popular Stocks held by users on the app such as FAANG Facebook, Amazon, Apple, Netflix,Google and other popular stocks such as Microsoft, Tesla Starbucks, and Disney to name blue-
chip stocks
*Not a recommendation to buy these stocks.
The app has created fresh ideas, such as cash management, cryptocurrency trading,
international stocks from around the world, options trading, and dividend reinvestment options.

Where Robinhood can improve
● Customer Service is lacking. Difficult to contact them over the phone. Buying and selling
shares may be sold at a higher or lower price than you initially went to swipe /slide for
trade. (In day trade stock that can make a massive difference on timing)
● More material to educate people to make wiser investment decisions. Robinhood app is
so easy to use, one consideration it can be addicting to watch on your phone, and may not
be best for people who like to gamble or buy and sell on impulse.
● Robinhood is still in the early years of development, and they are trying to appeal to
many types of investors and evolving and growing. However, they can find a better way
to help investors make wiser decisions. The app trades stocks, and EFTs, but doesn’t buy
mutual funds and Index funds which is an advantage of brokerages with retirement
accounts such as Vanguard and Fidelity which each offer a variety of low-cost funds that
track the market. It is tough to time market and most stock pickers even professionals
will perform underperformance the market index over ten years, (as Warren Buffett

famously won a bet with a hedge fund manager by having S&P 500 vs. hedge fund with

higher fees and more trading)

Final Thoughts
● Robinhood is a great app and game-changer for generation millennials and younger
allowing younger people to begin to take steps towards wealth accumulation sooner.
● Many people will make a lot of money on Robinhood; many others may be better with a more passive investing approach. During a bull market, you feel like a genius with stocks, bear market, or recession; you may lose a good chunk of your portfolio and
might want to sell as market bottoms out.
● Robinhood is not for the faint of heart that panics and sells at lousy news or stock trading lower. New Investors may want to practice on stock simulations or more conservative apps like Acorns or Stash you can learn.
Robinhood is a fantastic app for people that do proper research on stocks and have money to invest and can tolerate losses on the money they don’t need in the short term.
● Especially now in the current economy, stocks fluctuate significantly in the short term.
Still, in a long time, most stocks go up as, on average, historically, the market (measured
by index funds such as S&P 500 and Total Stock Market) has returned 7.2% after
inflation, even accounting for recessions. If you have the right temperament and don’t
panic, sell and buy, Robinhood may be an excellent app for you to Increase Cash Flow
with the potential for capital gains and passive income.

7 Simple Steps to Help You Raise Your Credit Score
money not spent savings

When I got my first credit card the lesson my dad shared with me was simple:
You only have a credit card for the sole intent and purpose of raising your credit score.
After that, he instructed me to make sure I used my credit card for specific purchases only such as fuel for my car or essentials during college, and to always make sure I paid my balance in full.
The purpose of raising my credit score starting at a young age was to set myself up for the future when it came to buying cars, landing the best insurance rates, and even buying a home down the
road.
That being said, sometimes the opportunity to start young when it comes to credit scores has passed, but that doesn’t mean you can’t raise your credit score.
Today, I will share with you the steps to help you raise your credit score, but first, let’s identify the
reasons why you want to have a higher credit score!

Why You Need a Higher Credit Score (5 Benefits):

Here are a few quick reasons as to why there are immense benefits in raising your credit score
or the 5 Perks of Higher Score:
1. Better Odds of receiving Lending or being approved for loans
2. Lower interest rates the higher the tier score of credit, less interest you pay on loans such as
car loan or mortgage.

When I got my first credit card the lesson my dad shared with me was simple:
You only have a credit card for the sole intent and purpose of raising your credit score.
After that, he instructed me to make sure I used my credit card for specific purchases only such as
fuel for my car or essentials during college, and to always make sure I paid my balance in full.
The purpose of raising my credit score starting at a young age was to set myself up for the future
when it came to buying cars, landing the best insurance rates, and even buying a home down the
road.
That being said, sometimes the opportunity to start young when it comes to credit scores has
passed, but that doesn’t mean you can’t raise your credit score.
Today, I will share with you the steps to help you raise your credit score, but first, let’s identify the
reasons why you want to have a higher credit score!

Why You Need a Higher Credit Score (5 Benefits):

Here are a few quick reasons as to why there are immense benefits in raising your credit score
or the 5 Perks of Higher Score:
1.Better Odds of receiving Lending or being approved for loans
2.Lower interest rates the higher the tier score of credit, less interest you pay on loans such as
car loan or mortgage.
3.Rewards- Get rewards and discounts on things you purchase already.

Travel Rewards and hacking. I have a friend Nick who travels off his credit rewards. He has
gone on a round trip from Iowa to Europe for only about $300. My Dad has used his rewards to
get nearly free trips to Jamaica and California.
Credit Scores after 760 are just bragging rights, but its more acceptable and celebrated than
bragging about finance milestones. Having high score shows being responsible and that’s reason to celebrate because good credit can potentially open up doors that poor credit or no
credit wouldn’t be able
Now that you know why there are numerous benefits to raising your credit score, here are
actionable steps to help you do just that!

How to Raise Your Credit Score in 7 Steps:

Here are hacks and simple steps to boost your crest score (that I personally used and I learned
along the way):

Pay Your Card Automatically
Set your credit card to pay off automatically before the bill is due. I like to pay my balance off 5
days before due. I do this to lower my utilization rate to 0 when monthly credit is reported by the
bank. Utilization under 10% boost credit score. Your credit utilization ratio — the amount of
credit you use, compared to your credit card limits is one of greatest overall factors impacting
credit score.
As example below using Credit Karma Payment History , credit cards use and derogatory marks
make up High impact on credit scores. These three factors make up the most significant impact
to credit score.
Credit History Keep Oldest Card Open

Scores will be higher than the long history you have of on-time payments. Before college, I
added a credit card and took out student loans which I have paid off early. Paying off early
ironically decreased my score but still in the sweet spot between 760-800 (Though 850 is
perfect about 760 is great, 800 is bragging rights)
Another option for younger people become authorized user on parents accounts. According to
Credit Karma showed below is chart lenders look for in the Credit Age. Credit Age makes a
medium impact on credit score. While just beginning Credit you are limited on credit history it is
a factor in credit score. The older your good credit the better history you’ll have and will be
better score in this area on credit report

Limit Hard Inquiry Credit Pulls

Limit the hard inquiries for credit, more than 2 in a 6-month period can hurt your score, only
apply for loans or credit you need.
What are hard inquiries?
When you want to apply for a new loan or new line of credit, refinancing or increase in credit,
you have the lender see your eligibility they pull an inquiry which tells them if they’d approve you
based on current credit.
You don’t want to have too many inquiries within year before attempting to get a major loan or
mortgage.
If you have too many inquiries in a short period of time, your score will drop and creditors will
see you as being potentially more risky.
Below tips from Credit Karma to limit your hard inquiries on your credit report.

Keep your longest credit card account active,

If you can have the card paid off and keep it consider doing so. I did this strategy with student
loans for a bit as I paid all but $300 because interest was only 3% and help me up to my score,
(also figured I could get higher return investing with such minimal debt and interest could
leverage, saving in Roth IRA.
Length of credit history is important, my credir score actually went down after I closed my
student loans off entirely last year. Impacted my score as only having my credit card and
student loans history, dropping my average age of credit.
Important to keep initial credit cards open until you have established credit history as longer
length of credit history improves your credit score.

Use Apps to monitor your score.
While FICO score and app estimated score give a good idea usually on credit habits. Apps also
break down important factors and grade you on your account.
I learned a lot through Credit Karma and Credit Sesame app Good idea to also do a free credit
check on Annual Credit Report.com and check the score and any possible wrong information
that can impact the score. Having apps at the tips of my phone was a great resource to monitor
and learn about credit scores. Several apps to choose from including Credit Karma, Credit
Sesame, Nerd Wallet, Money Lion, Mint that are free to use. Below is the Credit Sesame and
grading system. They have to see your strengths and weaknesses impacting credit score. I like
the feature as it gives letter grades and also gives guide to ratio lenders typically like to see.

Pay Off Debt , increase Income, spend less

Two ways to improve score decrease the amount of debt you owe, or earn more income / cash
flow
If you can have an Income to debt ratio, with a smaller percentage of debt compared to the
income that’s good news because you are deemed a less risky borrower. You may decide to
purchase necessities and not wants. In one of my favorite books “Your Money or Your Life” by
Vicki Robin, the author breaks down money as your life energy and how many hours of your life
a purchase is, opportunity cost. Before I make impulse buy online I give myself a two day period
to check that I really want it, or impulse buy. Being a long time broke college student, I’ve
learned the ability to sacrifice things such as cutting cable bills, riding my bicycle to work
everyday, renting with college grad students off of campus to pay down debt faster.

Increase Credit Limit
Increasing your credit limit can improve your credit score. If you are able to increase limits and
budget same you can improve credit score , as it drops your utilization rate percentage down.
When your credit limit goes up and your balance stays the same, it instantly lowers your overall
credit utilization. When applying for a higher credit limit you may get A “hard” credit inquiry,
which can temporarily drop your score a few points, but will be taken off after 6 months.
Assuming spending the same amount, having a higher limit allows for your credit usage rates to
improve, which benefits credit score.
Increase your credit limit. I had a $500 limit in high school, 1000 in college, now up to 5,000 but
my budget remains the same, keep balance utilization under 10% of the available balance.
Utilization rate had been my biggest key to building my score despite my relatively younger age.

Final Thoughts on Raising Your Credit Score:
My “Credit Score” was a term I thought was just reserved for older people up until High School
when my Dad told me I needed to get a credit card to establish my credit history.
We went to a local credit union where I signed up for a card designed for beginners with no
credit history. We set a $500 monthly limit,( later in college up to 1,000)
The card if late had horrible interest rates around 19%, which motivated me to never be late on
payment. I had always heard growing up credit cards were terrible and should only be used in
emergencies.
Dave Ramsey (I have Total Money Makeover book) advises against Credit Cards, which to a lot
of people who aren’t fiscally responsible or would be tempted to spend more his philosophies
may be sound advice, but if responsible opening Credit card young can have advantages.

The topic interested me as I achieved my goal of an 800 FICO Credit score before 30, while
studies suggest many fellow millennials report bad credit card scores. Many of my friends have
asked me for tips, which inspired this blog post.

wards- Get rewards and discounts on things you purchase already.

Travel Rewards and hacking. I have a friend Nick who travels off his credit rewards. He has
gone on a round trip from Iowa to Europe for only about $300. My Dad has used his rewards to
get nearly free trips to Jamaica and California.
Credit Scores after 760 are just bragging rights, but its more acceptable and celebrated than
bragging about financial milestones. Having a high score shows being responsible and that’s a reason to celebrate because good credit can potentially open up doors that poor credit or no wouldn’t be able to.
Now that you know why there are numerous benefits to raising your credit score, here are
actionable steps to help you do just that!

How to Raise Your Credit Score in 7 Steps:

Here are hacks and simple steps to boost your crest score (that I personally used and I learned
along the way):

Pay Your Card Automatically
Set your credit card to pay off automatically before the bill is due. I like to pay my balance off 5
days before the due. I do this to lower my utilization rate to 0 when monthly credit is reported by the
bank. Utilization under 10% boost credit score. Your credit utilization ratio — the amount of
credit you use, compared to your credit card limits is one of the greatest overall factors impacting
your credit score.
As an example below using Credit Karma Payment History, credit cards use and derogatory marks
make up a High impact on credit scores. These three factors make up the most significant impact
to credit score.
Credit History Keep Oldest Card Open

Scores will be higher than the long history you have of on-time payments. Before college, I
added a credit card and took out student loans which I have paid off early. Paying off early
ironically decreased my score but still in the sweet spot between 760-800 (Though 850 is
perfect about 760 is great, 800 is bragging rights)
Another option for younger people become authorized users on parent’s accounts. According to
Credit Karma shown below is the chart lenders look for in the Credit Age. Credit Age makes a
medium impact on credit score. While just beginning Credit you are limited on credit history it is
a factor in credit score. The older your good credit the better history you’ll have and will be
better score in this area on credit report

Limit Hard Inquiry Credit Pulls

Keep your longest credit card account active,

Use Apps to monitor your score.
While FICO score and app estimated score give a good idea usually on credit habits. Apps also
break down important factors and grade you on your account.
I learned a lot through Credit Karma and Credit Sesame app Good idea to also do a free credit
check on Annual Credit Report.com and check the score and any possible wrong information
that can impact the score. Having apps at the tips of my phone was a great resource to monitor
and learn about credit scores. Several apps to choose from including Credit Karma, Credit
Sesame, Nerd Wallet, Money Lion, Mint that are free to use. Below is the Credit Sesame and
grading system. They have to see your strengths and weaknesses impacting credit score. I like
the feature as it gives letter grades and also gives guide to ratio lenders typically like to see.

Pay Off Debt , increase Income, spend less

Two ways to improve score decrease the amount of debt you owe, or earn more income/cash
flow
If you can have an Income to debt ratio, with a smaller percentage of debt compared to the income that’s good news because you are deemed a less risky borrower. You may decide to
purchase necessities and not wants. In one of my favorite books “Your Money or Your Life” by
Vicki Robin, the author breaks down money as your life energy and how many hours of your life a purchase is, opportunity cost. Before I make impulse buy online I give myself a two day period
to check that I really want it, or impulse buy. Being a long time broke college student, I’ve
learned the ability to sacrifice things such as cutting cable bills, riding my bicycle to work
every day, renting with college grad students off of campus to pay down debt faster.

Increase Credit Limit
Increasing your credit limit can improve your credit score. If you are able to increase limits and
budget same you can improve your credit score, as it drops your utilization rate percentage down.
When your credit limit goes up and your balance stays the same, it instantly lowers your overall
credit utilization. When applying for a higher credit limit you may get A “hard” credit inquiry,
which can temporarily drop your score a few points but will be taken off after 6 months.
Assuming spending the same amount, having a higher limit allows for your credit usage rates to
improve, which benefits credit scores.
Increase your credit limit, but keep budget the same, keep balance utilization under 10% of the available balance.
Utilization rate had been my biggest key to building my score despite my relatively younger age.

Final Thoughts on Raising Your Credit Score:
My “Credit Score” was a term I thought was just reserved for older people up until High School
when my Dad told me I needed to get a credit card to establish my credit history.
We went to a local credit union where I signed up for a card designed for beginners with no
credit history. We set a $500 monthly limit,( later in college up to 1,000)
The card if late had horrible interest rates around 19%, which motivated me to never be late on payment. I had always heard growing up credit cards were terrible and should only be used in
emergencies.
Dave Ramsey (I have Total Money Makeover book) advises against Credit Cards, which to a lot of people who aren’t fiscally responsible or would be tempted to spend more his philosophies
may be sound advice, but if responsible opening Credit card young can have advantages.

The topic interested me as I achieved my goal of an 800 FICO Credit score before 30, while studies suggest many fellow millennials report bad credit card scores. Many of my friends have
asked me for tips, which inspired this blog post.

Stock/ETF investing app review Robinhood, Acorns. Can you really Start investing with as little as $5?

7 Steps to HigheCredit Score, get an 800 FICO Credit Score