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6 Positive Things That Came with Crowdfunding

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6 Positive Things That Came with Crowdfunding

Crowdfunding is a recently adopted investment concept that creates great opportunities for numerous companies around the world. The rise in popularity occurred back in 2009, with the development of the Kickstarter website. The website made it possible for people to raise money for their awesome ideas on all kinds of services and products.

People are able to see what the project is in complete detail, before giving money to the cause. Back in 2012 the government realized the investment crowdfunding potential and enacted the JOBS act, to make the whole crowdfunding process easier for everybody. The crowdfunding trend created numerous other positive trends in the world of business.

A variety of capital acquisition options

In the past, any company that wanted to grow their business in a shorter period of time had to look for accredited investors and depend on their good will, whether they personally found the idea good and whether they thought it was profitable or not. This made the whole company growth process even more complicated, and many creative and incredible ideas went on to become nothing due to the impossibility of find the right funding.

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With the expansion of crowdfunding platforms, people who want to start a small or big business, have a lot more options open to them. It is now possible to raise money from a much higher number of people. The success lies in the fact that people are not donating for free, but for a reward. This reward-based investment brought many new companies into existence, making it an awesome way of collecting funds from the crowd.

Lower risks

Creating and running a company is quite a challenging task. No matter how well you predict the financial expenses, there are always some things that require more funds, making the whole venture riskier. At some point people have to rely on a loan, which further increases risks. The investors ask for equity in the company, which can complicate things as the company grows and affect the ideas of the company’s initial creator.

All of these risks can now be avoided with reward-based crowdfunding, as all these problems are automatically solved. It is possible to make precise costs and ask for a little bit more just in case, to cover unexpected expenses. The options are endless. There is no loan taking procedure and, most importantly, the owner of the idea and the company doesn’t lose any equity in his or her company, making it go in a safe direction without the interference of other people.

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It is a great marketing campaign

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    Crowdfunding platforms are very popular and are visited by millions of people due to a wide variety of interesting ideas. This much organic traffic is very important when someone is starting a company and there are even brands that realize the marketing potential of crowdfunding platforms. The initial boost can not only increase the amount of funds, but also incredibly improve brand awareness. Additionally, numerous online blogs follow these websites and love to spread the word about interesting concepts, which can additionally drive more traffic to your campaign. This is a perfect way that enables businesses to attract loyal customers from the very moment the company is founded. The internet is a wonderful place where information travels fast, which is why these platforms create incredible results.

    The crowd’s idea support

    Just as all ideas in the world have flaws, so do the campaigns presented on crowdfunding platforms. This makes these platforms even more important, as a vast number of people involved in a campaign can share their opinions and ideas that are important for the whole campaign. This kind of free advice is very hard to get and it can be very effective.

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    Various solutions to problems an entrepreneur couldn’t foresee can be presented among the ideas coming from the crowd. This kind of help is something you cannot lean on, even if you have an incredible team of several people, as more minds working together can always create the most optimal solution to any type of problem.

    It is simply easier than the old funding ways

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      Applying for a loan is a procedure which most businesses have to go through, but the whole process is quite long and preparing all the paperwork is long and tiresome. Additionally, finding an “angel” investor is practically impossible without putting immense effort into it. This is where crowdfunding offers incredible improvement, as registering on any crowdfunding platform is a much easier and faster process. Once registered, all a company needs is an attractive promotional video, and detailed instructions for all the interested visitors.

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      Incredible growth of ideas

      All the crowdfunding possibilities have made people want to pursue their ideas. The crowdfunding platforms also present a perfect funnel for interesting ideas. Every fruitful idea will easily become recognized by the crowd, turning it into a success story. This is very motivating for numerous people around the world, as these platforms are there to give a chance to anyone from around the globe. With the right idea, impossible is nothing.

      These are only some of the positive things associated with the crowdfunding trend. We can sit and watch further growth of investment crowdfunding. The most important things is that now, anyone with a great plan and a good idea has much better chances of reaching the sky. Crowdfunding is probably the best possible thing that happened to the business world and the whole world in general.

      Featured photo credit: Ed Gregory via pexels.com

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      Djordje Todorovic

      Blogger, Gamer Extraordinaire

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      Last Updated on July 20, 2021

      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

      Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

      Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

      Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

      In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

      Break Free of Your Finances

      Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

      When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

      Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

      Though it seems hard to believe, it is really very simple to get financial freedom.

      To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

      While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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      Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

      1. Stop Unnecessary Spending

      We often spend money inwardly, instead of objectively.

      For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

      To stop this habitual spending, log down all your spending over the course of a month.

      Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

      This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

      2. Plan a Monthly Budget

      This is a great opportunity to get serious.

      Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

      Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

      3. Cut-up Credit Cards

      Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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      If not, you may want to consider ridding your life of the burden that credit cards bring.

      Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

      Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

      4. Increase Savings

      There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

      It’s good practice to save up to 15% of your income.

      Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

      Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

      5. Invest Wisely

      Consider investing in funds.

      Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

      To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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      Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

      6. Invest in Gold

      There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

      You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

      Another way to invest in gold is through ETFs (Exchange Traded Funds).

      These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

      With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

      7. Stash Emergency Funds

      Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

      If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

      Make it hard to get your cash.

      Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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      8. Find Fabulous Mentors

      Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

      If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

      There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

      9. Be Extra Patient

      Patience is the key of financial success.

      Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

      So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

      Financial Freedom for All

      Anyone can achieve financial freedom, regardless of their financial circumstance.

      Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

      Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

      Featured photo credit: rawpixel via unsplash.com

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      Reference

      [1] Hartford Gold Group: IRA Retirement Accounts

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