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Fewer Americans Living Paycheck-to-Paycheck

Hey there, money savers! It’s high time we take a fresh look at your financial health. No more living paycheck-to-paycheck or being stressed out about those unexpected expenses. We’re all about making your money work smarter and not harder.

Remember those bumpy times when almost 61% of us had to survive from paycheck to paycheck (source: LendingClub report)? We’ve all been there, and it’s no picnic. Thankfully, that figure slipped to 57% in May this year, giving us some much-needed breathing space.

And breathe we did! Our buying power got a much-needed boost last month, thanks to the easing inflation. For the first time in two years, we felt our dollars stretching a bit more. No more pinching pennies just to cover the basics. We’ve also dodged a bullet with the consumer price index dropping to 4% in May, after a record high of 9.1% in June 2022. Sounds like a little victory, doesn’t it?

But let’s face it, the past year of crazy-high costs hasn’t been a walk in the park. Many of us felt the pinch and had to dip into savings, max out credit cards, or even take personal loans to cover our day-to-day expenses. And with credit card interest rates at an all-time high of over 20%, that’s not a path we want to tread.

What’s more, our latest survey by LendingTree found that 73% of us said higher prices have affected our ability to cover monthly expenses, including cell phone bills, utilities, auto insurance, and even internet service. Feels all too familiar, doesn’t it?

It’s clear we need to have a healthy buffer of savings for those rainy days. But here’s a little secret: most Americans are uncomfortable with their emergency fund levels. Believe it or not, fewer than half of us have enough emergency savings to cover at least three months of expenses, and about 22% don’t have any at all.

That’s where we come in! It’s recommended to aim for six months’ worth of expenses set aside in risk-free securities or cash. Some advise putting at least 10% of your income a month in an after-tax brokerage account or a high-yield savings account, a surefire way to boost your financial confidence and reduce stress.

But don’t worry, you’re not in this alone. Wellthi is here to hold your hand and guide you towards achieving these financial goals. Together with your friends, we’ll help you build that emergency fund, manage your monthly expenses, and gradually escape the paycheck-to-paycheck lifestyle. So, ready to get on the road to financial wellness? With Wellthi, you can! Let’s do this, together.

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Unlocking Funding Potential: A Guide to Revenue-Based Financing for Your Business

Hey there, savvy entrepreneurs! Are you looking for alternative financing options to fuel your business growth? Look no further than revenue-based financing!

This unique funding approach allows you to leverage your future revenue to secure the capital you need, without the drawbacks of traditional loans or equity financing. Let’s dive into the details and explore how revenue-based financing can help you achieve your business goals.

What is Revenue-Based Financing and How Does It Work?

Revenue-based financing, also known as revenue-based lending or revenue-based investing, is a game-changer for startups and businesses struggling with cash flow. Instead of fixed monthly payments or ownership shares, investors provide an initial investment and, in return, receive a percentage of your monthly revenue.

The best part? Your payment adjusts based on your cash receipts and the revenue you generate.

Unlocking the Benefits of Revenue-Based Financing

Here are some reasons why revenue-based financing might be the perfect fit for your high-growth business:

  • Accessibility: Traditional financing options often come with strict eligibility criteria. But revenue-based loans are different! They rely on your future revenue rather than personal credit or collateral, making them accessible to a wider range of businesses and entrepreneurs.
  • Flexibility: Say goodbye to rigid monthly payments! With revenue-based financing, your repayment is tied to your monthly revenue. This flexible structure allows you to align your payments with your cash flow, giving you greater control over your finances.
  • Ownership Retention: Unlike equity financing, revenue-based lenders won’t demand a stake in your business. This means you retain full ownership control and the freedom to steer your business towards success.

Considerations for Revenue-Based Financing

While revenue-based financing offers many benefits, it’s essential to make informed decisions. Here are a few points to keep in mind:

  • Cost Comparison: Evaluate the repayment cap of your revenue-based loan and compare it to the interest rates of traditional loans. While revenue-based financing offers flexibility, it can be more expensive in the long run. Ensure you understand the total repayment amount before committing.
  • Monthly Expenses: High monthly expenses can impact your cash flow. If your business falls into this category, a loan with a fixed monthly payment might be a better fit, ensuring predictable expenses.
  • Revenue Requirement: Revenue-based financing relies on your business’s revenue. Lenders usually require a minimum monthly revenue threshold. Be prepared to demonstrate a consistent revenue stream to secure the funding you need.

Exploring Alternatives and Finding the Right Fit

  • Revenue-based financing might not be suitable for every business scenario. Consider these alternatives to determine which option aligns best with your unique needs:
  • Invoice Financing: If your business relies heavily on invoicing, this alternative can be a great fit. Invoice financing allows you to leverage future invoices to secure funding, perfect for businesses with sporadic cash flow.
  • Startup Loans: If you’re just starting out and have strong personal financials, traditional startup loans from banks or online lenders could be a faster, easier, and more cost-effective option.
  • Business Line of Credit: Looking for flexible repayment options? A business line of credit operates like a revolving credit card, providing you with access to funds as needed. It’s an excellent choice for short-term cash flow needs and certain startup situations.
  • SBA Loans: Struggling to qualify for a traditional bank loan? Small Business Administration (SBA) loans offer government-backed guarantees that make lenders more willing to lend to riskier businesses or those with poor credit or finances.

Finding the Right Funding Fit for Your Business

When it comes to choosing the best business loan, it’s essential to consider factors like interest rates, terms, time to fund, and your business’s qualifications. We recommend comparing various small-business loan options to find the perfect fit for your entrepreneurial journey. At Wellthi, we’re here to support you in reaching your financial goals. Explore revenue-based financing and other funding alternatives to fuel your business growth. Remember, your success is within reach, and with the right financing strategy, you’ll unlock the potential to thrive! 

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!

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!

#FundingYourFuture #RevenueBasedFinancing #EntrepreneurLife #FinancialFreedom #AlternativeFinancing

Go Deeper

  1. Investopedia’s Revenue-Based Financing Guide: A comprehensive guide on revenue-based financing explaining its advantages and disadvantages. Link This guide can serve as an additional resource for those looking to understand the mechanics of revenue-based financing and its pros and cons.
  2. Forbes on Alternatives to Traditional Business Loans: An article exploring various alternatives to traditional business loans, including revenue-based financing. Link This article can help entrepreneurs evaluate different funding options and understand where revenue-based financing fits among these alternatives.
  3. Entrepreneur’s Insights on Keeping Ownership While Raising Capital: A piece offering insights on how entrepreneurs can raise capital without giving up equity, including through revenue-based financing. Link This article is useful for entrepreneurs who want to explore ways to retain ownership of their business while still securing the necessary funding.
  4. SBA’s Official Website for SBA Loans Information: The official website of the U.S. Small Business Administration, providing information on SBA loans. Link For those considering SBA loans, the official SBA website provides authoritative information on eligibility criteria, types of SBA loans, and application processes.
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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
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Embrace the Soft Living Trend: Gen Z and Millennials Redefining Prosperity with Wellthi by Their Side

Embracing the era of “soft living,” Gen Z and younger millennials are redefining what it means to prosper and prioritize their financial well-being. The days of hustle culture and aggressive savings goals are making way for a gentler approach, and Wellthi is here to support you every step of the way on this journey.

Take a moment to envision it: cozy candlelit dinners, indulgent bubble baths, and a mindset that focuses on balancing the present while still making progress for the future. This soft living trend has taken social media by storm, with over 10.5 billion views on TikTok alone. Younger millennials and Gen Zers like Tay Ladd (@thecorporatedogmom) are shifting their mindset away from the pressure of saving every penny and instead embracing a better quality of life.

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!

The current economic climate has created hesitancy among nearly three in four young people when it comes to setting long-term goals. The rising cost of living and the uncertainties brought about by the COVID-19 pandemic have prompted a shift in priorities. Rather than sacrificing their mental well-being and personal growth for an uncertain future, young Americans are choosing to invest in themselves and live their best soft life.

Tay Ladd, a millennial corporate lawyer and social media influencer, recently told MoneyWise she has found solace in this approach. Previously caught up in hustle culture, she realized the toll it was taking on her health and well-being. She made the conscious decision to prioritize a less stressful lifestyle and focus on what truly matters to her. And while her luxurious lifestyle may not be achievable for everyone, the key is to find your own definition of prosperity.

Brittney Castro, a certified financial planner, emphasizes the importance of managing your money in a way that aligns with your individual goals. Take the time to review your budget, assess your income and expenses, and identify your top financial priorities. This could be as simple as jotting down notes or using a budgeting app. Remember, it’s about finding that balance between enjoying the present and setting aside something for the future.

Tay Ladd allocates 100% of her brand dealership revenue to savings, building an emergency fund to cover three to six months’ worth of expenses. While she plans to start investing to accumulate wealth, retirement savings are not currently on her radar. She emphasizes the need to make intentional choices about where you spend your money, focusing on what brings you joy and aligns with your financial goals.

However, it’s crucial to avoid comparing yourself to others, especially on social media. Each person’s path to prosperity looks different, and it’s essential to find what works best for you. The key is to be mindful of your financial decisions, celebrate small victories, and gradually work towards increasing your savings over time.

So, let’s embark on this journey of soft living together, supporting one another as we strike a balance between financial responsibility and enjoying the present moment. Remember, you’re not alone—Wellthi is here as your trusted friend, providing guidance and inspiration to help you live your best financial life. Let’s embrace the soft living trend and create a future that’s filled with financial wellness and happiness. Because at the end of the day, we all deserve to live a soft life, just like Tay Ladd and her pampered pup, Gus.

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!