From Profit to Prosperity: A Business Owner’s Roadmap to Financial Success

Hey there, go-getters! Ever dreamed of watching your business profits transform into mountains of wealth? You’re not alone. As entrepreneurs chasing our dreams, it’s high time we shift our focus from just making a profit to building sustainable wealth that grows alongside you and your dreams. 💸🌱

First things first, no guilt if you’re unsure about converting profits into sustainable wealth. You’re a boss at your business, and with a little guidance, you can be a boss at wealth-building too. Let’s get into it!

1. Picture Your Prosperity: Crafting a Financial Blueprint 🗺️

Just like planning an epic road trip, the journey to wealth starts with a financial plan. It’s your financial GPS, helping you navigate the complex world of assets, debts, and savings. And remember, friends don’t let friends navigate alone! At Wellthi, we encourage you to make it a team effort. Sharing your financial goals with friends increases your chances of success. And of course, always save a portion of your profit. It’s like packing a spare tire; you never know when you’ll need it.

2. Know Your Costs: Becoming an Expense Detective 🕵️‍♂️

The secret to making a profit? Mastering your business expenses. And we mean Sherlock-level understanding. Once you know where your money is going, you can curb overspending and boost savings. Need proof? A JPMorgan Chase study shows businesses that closely monitor expenses increase their profit margins by up to 60%. Now that’s worth investigating!

3. The Magic of Investing: Make Your Money Work for You 💸

Turning profits into wealth means becoming an investor. Whether it’s reinvesting in your business or venturing into stocks, bonds, or real estate, wise investment choices can lead to incredible returns. A S&P Global study shows that a diversified portfolio can deliver a steady 5-15% return annually. In other words, sit back and let your money do the heavy lifting.

4. Tax Smarts: Navigating the Tax Jungle 🌴

No one likes the taxman, but savvy entrepreneurs learn to play the game. By diligently tracking expenses and deductions, and consulting with tax pros, you can reduce your tax liability and keep more of your profit. The Small Business Administration affirms effective tax planning can save small businesses thousands each year. That’s more cash for your wealth-building journey.

5. Keep Your Eyes on the Prize: The Power of Discipline and Focus 🎯

Building wealth is a marathon, not a sprint. Stay disciplined, follow your financial plan, and keep reinvesting. Building wealth takes time, patience, and dedication, but remember, Rome wasn’t built in a day. Stay the course, and the rewards will come.

In conclusion, transforming profits into wealth is like mastering a new skill. It requires a plan, knowledge of expenses, smart investing, tax planning, and a whole lot of patience. Building wealth is not a sprint, but a road trip – a thrilling, rewarding journey. With Wellthi, you don’t have to go it alone. Let’s navigate this road to riches together, supporting each other and celebrating every financial win along the way. Get ready to put the pedal to the metal! 🚗💨💰

Remember, we’re not just earning; we’re building, growing, and creating wealth. So let’s turn those profits into prosperity, together! 💪💰

*Disclaimer: Always consult with a financial advisor before making investment decisions. This blog is for educational purposes only and is not financial advice.

Go Deeper

  1. https://www.xero.com/us/guides/growing-your-business/write-a-business-development-plan/: Learn how to write a business development plan
  2. Internal Revenue Service (IRS): Access comprehensive information about tax credits and deductions that can help maximize your profits.
  3. Small Business Administration (SBA): A great resource for understanding business expenses and planning financial strategies.
  4. https://airfocus.com/blog/what-is-a-business-roadmap/: Explains what a business roadmap is and how to set it
Wellthi retirement savings

S.O.S! Your 401k Is Having a Wardrobe Malfunction – Here’s How To Dress for Retirement Success In a Rocky Market

Honey, your 401k is calling, and it’s in need of a makeover!👠 Just as you would never dream of wearing last season’s fashions with mismatched accessories, you absolutely cannot afford to have your retirement savings out of vogue. There’s $9 trillion adorning the closets of over 100 million Americans in the U.S. 401k retirement plan market, as reported by the US Department of Labor. But, darling, there’s a snag in the fabric.

It wasn’t long ago that retirement savings accounts performed like a chic ensemble at a pre-pandemic rooftop party. Well they’ve lost that sparkle, and at an alarming rate. According to Vanguard, the average balance in 401k accounts has slipped down the runway by about 20% – from $141,542 in 2021 to $112,572.

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

The median balance isn’t strutting any better. Picture yourself sashaying through New York with a stunning designer bag; now imagine it’s contents vanishing. That’s right, my dears, the median balance has cascaded from $35,345 in 2021 to a humbling $27,376.

But let’s not be fashion victims. This 401k issue is like that little black dress waiting to be styled to perfection. The primary culprit, as per Vanguard, is lukewarm equity and bond markets recently. They’re like that outfit you adored, but now it just doesn’t light up the room.

As your confidant, I urge you not to panic. It’s time to be your own investment stylist. How about diversifying, honey? Like pairing those Nike kicks with a chic blazer. Or, go on and explore the world of IRAs, real estate, or even the bold and edgy cryptocurrencies. Whatever you choose, make sure to do your homework, and better yet consult with a financial advisor.

Now, let’s get together with our besties and venture through this together. The Wellthi app is your virtual brunch squad – always there for you. It’s the sparkling jewelry to your 401k’s little black dress. 🥂

Take a page out of Carrie Bradshaw’s book – when life trips you on the runway, pick yourself up, adjust your tiara, and keep walking with grace and determination. Accessorize your retirement plan, don your financial stilettos, and let’s take on this 401k drama together, head held high. 🎩💖

You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

  1. Understanding 401k Investments: A guide by Investopedia that explains the basics of 401k and how to make the most out of your retirement savings. Link
  2. Diversifying Your Retirement Savings: A piece by Fidelity on why diversification is essential for managing risk and enhancing returns on retirement savings. Link
  3. Cryptocurrency for Beginners: A beginner’s guide to cryptocurrency by Investopedia that covers the essentials of crypto as an investment option. Link
  4. IRA vs. 401k: A side-by-side comparison by The Balance to understand the differences between IRA and 401k, to make an informed decision. Link

How the Fed’s Latest Move May Impact Your Mortgage

As summer days approach, we’re all primed to flaunt our freshly chosen swimwear and chic sandals à la Rihanna, Gigi Hadid, and Jennifer Lawrence. But it’s not just our wardrobes that demand a seasonal shift; our finances crave a refresh too. With a changing financial landscape, it’s time to rethink our money moves, particularly for those considering buying a new home or refinancing.

Like a surprise plotline from “Sex and the City,” homebuyers and mortgage holders were handed an unexpected financial cocktail of relief on Wednesday. The Federal Reserve, our very own ‘Mr. Big’ of finance, has decided to hit pause on its succession of interest rate hikes.

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!

Wondering why this matters to you? The federal funds rate – the cost for banks to borrow money overnight – influences various other interest rates, including the ones on your mortgage. This shift could stabilize or even slightly decrease mortgage rates, giving you a breather after the unpredictable spring we’ve been through.

Why is the Fed taking a rest? Post-COVID-19 inflation didn’t fade as expected, and in a bid to control it, the Fed began raising the federal funds rate in March 2022.But these financial maneuvers take time to have an effect.

In an interview with Nerdwallet, economist David Bieri painted a vivid picture, comparing the strategy to braking a car, but you only find out after a delay whether the brakes have taken hold.

As we move forward, how does this affect your mortgage? Amid other contributing factors like persistent inflation, bank failures, and ongoing debt ceiling negotiations, the financial market has felt like a roller-coaster ride straight out of an amusement park. However, the Fed’s decision could allow mortgage rates to cool down for a bit.

This shift could bring a pause or even a slight drop in mortgage rates. The duration of this relief, whether it’s a short skip or a longer pause, will determine if we see a rate rebound or a further decline.

Fed officials have also clarified that a rate cut isn’t likely soon. The financial future may seem as unpredictable as a “Sex and the City” script, but armed with this knowledge, you’re better prepared to make smart, informed decisions, just like you would for your summer fashion haul.

Remember, navigating your financial journey with a little help from your friends (or a savvy financial app like Wellthi) can turn these money moments into empowering milestones. Here’s to stepping into a financially sunny summer season, ladies!

You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

www.federalreserve.gov – Official website of the Federal Reserve

www.nytimes.com/section/business/economy – Business and economy section of The New York Times

www.bankrate.com/mortgages – Bankrate’s mortgage section with information and rates

www.cnbc.com/mortgages – CNBC’s mortgage coverage with news and analysis


Breaking Up with the Market: How the 60:40 Portfolio is like Your Most Reliable Ex

Are you ready for a dive into the deep end of the finance pool? Hold onto your pool noodles, because we’re about to splash around the concept of “regression to the mean” like it’s a Marco Polo game on a hot summer day.

Picture this: the 60:40 portfolio is like that old reliable friend you always went to parties with in college. They were usually a good time (consistent returns), but last year they had a major party foul (a 23.4% loss). They tripped over the keg, spilled their drink all over the host, and broke a priceless family heirloom (if those happened to be represented by the Vanguard Total Stock Market ETF and the Vanguard Long-Term Treasury ETF, of course). Not their finest hour, and certainly not their norm.

But hold the phone, because 2023 is turning out to be quite the comeback tour for our friend. As of the end of May, they’re turning heads and impressing the crowd with a stellar annualized pace of 17.6% – a major glow-up from their historic average return of 7.7% since 1793. It’s like they aced their mid-terms after weeks of partying. Impressive, right?

Increase the odds: By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!

Now, before you start thinking they’re the life of every party, remember this: ‘Regression to the mean’ is as relentless as your mom asking when you’re going to settle down and get married. It basically means that over time, super impressive performance is likely to settle back down to average – kind of like how all-nighters become less appealing once you’re out of college.

So, while our friend the 60:40 portfolio is hitting it out of the park this year, that doesn’t mean it’ll keep this pace up. Heck, it might even lose a bit of steam next year.

Remember, the 60:40 portfolio isn’t some slick player you’re trying to time for maximum gain. It’s more like that long-term, steady relationship where the attraction doesn’t burn bright and extinguish fast, but instead, lasts over the years. Just look at its trailing 20-year annualized return – it’s practically snuggled up with its two-century average of 7.7%.

So, should you be excited about the 60:40’s recent glow-up? Sure, it’s great news for now! But always remember, investing isn’t a sprint; it’s a marathon (or a very, very long Netflix binge). The market might be a rollercoaster of ups and downs, but your plans should be more ‘chill on the couch with a good book’. And if you’re ever in doubt, we’re here to help guide you through it.

Until next time, keep your financial chill, Wellthi fam.

You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!