by MSE Staff | Published 31 Jan 2022 

There are many different cryptocurrencies on the market today, but Bitcoin and Ethereum are two of the most well-known. But what's the difference between them? And how does the US dollar compare? In this blog post, we will explore the differences between these three currencies and see which one comes out on top!

What are Bitcoin and Ethereum, and how are they different from the US dollar?

Bitcoin and Ethereum are cryptocurrencies that are often described as digital currencies. However, cryptocurrencies were classified as property by the Internal Revenue Service (IRS) in their 2014-21 ruling. While cryptocurrencies like Bitcoin and Ethereum are used to make transactions like fiat currencies, they are not currencies. This is most evident in the fact that tax liabilities resulting from transactions made using cryptocurrencies must be classified as either business income or capital gains which is not the case with fiat currencies. It's more accurate to describe cryptocurrencies as digital assets with a range of utility that intersects with fiat currencies like the US dollar.

 The US dollar, on the other hand, is strictly a currency. Currencies are a medium of exchange between items of value. For example, you contribute 2 weeks of labor to the production of value for your employer and your employer compensates you with $3,000 which is an amount of currency that represents the value of your economic output. You can then exchange that currency for other items of value such as $20 worth of apples. Without currency, you would have to barter with or work for the apple farmer just to eat. Currency is a necessary medium that allows us all to exchange the things we want and need to survive in society.

Another distinction to make is that fiat currencies do not store value. Fiat currencies like the US dollar typically inflate over time (losing value). Inflation is what happens when you have too much money buying too few things. Take for example the inflated cost of a Mcdonald's hamburger between 1970 and 2022. In 1970 a Mcdonald's hamburger cost $0.18 (USD). In 2022 a McDonald's hamburger cost $1.59 (USD). The hamburger itself didn't increase in value. Instead, the Consumer Price Index (CPI) would show that the currency's purchasing power decreased over time. While some cryptocurrencies are designed to experience some inflation, they are intended to increase in value. This is partially what makes cryptocurrencies attractive for investment opportunities.

Let's recap. Cryptocurrencies like Bitcoin and Ethereum are considered property in the US; they are taxed as either business income or capital gains. While Bitcoin and Ethereum can be used like fiat currency, they are not fiat currency. Cryptocurrencies are intended to be a store of value while fiat currencies like the US dollar are intended to be a medium of exchange between items of value.

How do people use Bitcoin and Ethereum, and what are the benefits of using them instead of traditional currency?

Cryptocurrencies like Bitcoin and Ethereum are digital assets that have a range of uses. People use them to make transactions, similar to how they would use fiat currencies like the US dollar. However, there are some distinct benefits to using cryptocurrencies over traditional currency.

The first benefit is that cryptocurrencies can be used in more ways than traditional currencies. For example, you can't sit on cash and expect it to grow in value, but you can with Bitcoin. This is because cryptocurrencies grow in value as their demand increases. The more people who use Bitcoin regularly, the more value it has.

Another benefit of using cryptocurrencies instead of traditional currency is their security features. Cryptocurrencies are encrypted which makes it difficult for criminals to steal them or hack into your account. In addition, cryptocurrency transactions are recorded on a public ledger which makes it difficult for people to engage in fraudulent activities.

While there are many benefits to using cryptocurrencies over traditional currency, it's important to note that they aren't perfect. Cryptocurrencies have been known to experience price volatility which can cause them to lose value quickly. Additionally, not all businesses accept cryptocurrencies as payment yet. However, this is changing rapidly as more people adopt them into their everyday lives.

What impact could Bitcoin and Ethereum have on the global economy, and how might they change the way we do business in the future?

Bitcoin and Ethereum have the potential to revolutionize the global economy. Their biggest impact could be on how we do business. For example, cryptocurrencies could help reduce fraudulent activities like money laundering and embezzlement. Additionally, they could make it easier for businesses to conduct transactions with each other by eliminating the need for third-party intermediaries. This would save businesses time and money, which could lead to increased efficiency and productivity across the globe.

While it's still too early to know for sure how Bitcoin and Ethereum will change the global economy, there's no doubt that they hold tremendous potential. As more people adopt them into their everyday lives, we can expect to see even greater things from these groundbreaking technologies.

Are there any risks associated with using Bitcoin and Ethereum, or is it safe to invest in them?

There are risks associated with using Bitcoin and Ethereum, but it's ultimately up to each individual to decide whether or not they want to invest in them. One of the biggest risks is that cryptocurrency prices can be very volatile. This means that they can both increase and decrease in value rapidly. Additionally, the Securities and Exchange Commission (SEC) has issued statements cautioning investors that cryptocurrency exchanges and Initial Coin Offerings (ICOs) are not regulated by the SEC and are not afforded adequate protection against fraudulent activities.

However, these risks shouldn't dissuade you from investing in cryptocurrencies if you believe in their long-term potential. Just like any other investment opportunity, there is always a chance for loss, but there is also the potential for gain. Do your research before making any decisions and remember to consult your financial advisors.

How can you buy Bitcoin and Ethereum, and what are some of the most popular exchanges for doing so?

You can buy Bitcoin and Ethereum on many different exchanges. Some of the most popular ones include Coinbase, Kraken, and Crypto.com. To purchase them, you'll need to create an account with the exchange and deposit some funds. Once you have done that, you can then buy Bitcoin or Ethereum by exchanging your currency for it.

It's important to note that not all exchanges offer both Bitcoin and Ethereum. Be sure to do your research before choosing an exchange so that you can be sure they offer the cryptocurrencies you're interested in buying.

Final Thoughts

Cryptocurrencies, such as Bitcoin and Ethereum, are quickly becoming a popular investment. However, before you jump in with both feet, it's important to understand how these currencies work and the risks associated with investing in them. In this blog post we've explored some of the basics about cryptocurrencies- from what they are to why people might choose to use them instead of US dollars or other traditional currency options. If you're looking for more information on how to build wealth or want to chat about investing strategies - let us know!

by MSE Staff | Published 7 Nov 2021 

The Definition of Income

Income is the money you bring in, but that's not all! There are a variety of different types of income and near limitless ways to create streams of it. The number of income sources you maintain have a direct impact on your financial security and peace of mind.

The different types of income include

Earned Income: 

Income you earn from employment and includes your salary, bonuses, tips and commissions. It also refers to any income earned doing odd jobs or freelance work on the side such as babysitting or selling unused items online.

Passive Income:

Income you earn from assets such as rental properties. It also includes income earned through royalties for creative works like songs, movies and books.

Investment Income:

Income earned from investments such as dividends, interest or capital gains on your investments.

These income sources can all be classified as income and contribute to your overall financial wellbeing. However, it's important you know how each income stream is taxed so that the correct taxes are applied at the right times. Consulting with a tax planner to avoid overpaying in taxes is an excellent strategy to maximize your income.

Finances can be a huge source of stress and worry. But it doesn't have to be! There are many different types of income, and near limitless ways to create streams of money that will help you build the financial security and peace of mind you deserve. If we've piqued your interest in this subject matter, don't hesitate to book a free discovery session with Curtis Banks today. You and Curtis will work together so that you can feel confident about your future – both financially AND emotionally!

by MSE Staff | Published 6 Nov 2021 

Managing your money can be a challenge. It is not always easy to stay on top of the daily tasks that are required for managing your wealth. Curtis Banks, Wealth Mentor and Financial Educator, shares his Managing Money Tips with readers in order to help them manage their finances better. For those who want to build wealth, this article will give you some great tips that will help you get there faster!

Money Tip #1: Personal Development

Your ability to make sound financial decisions depends heavily on your financial knowledge and skills. This is known as your financial capability. A big part of your financial capability is your personal development. This includes things like improving your knowledge about finance, learning new skills and building better habits that will lead you to success in the long run.

Money Tip #2: Schedule Time to Review Your Accounts

Imagine you're reviewing your bank statement for the first time in over 6 months, and you notice that fraudulent charges started occurring 4 months ago. You promptly place the account on hold and attempt to get your money back. However, you may not get any of your money back if you report it beyond the 60-day limit according to the FDIC. This reporting timeline may change from country to country. However, it's important to review your accounts well within that timeline. There are a plethora of free calendar apps available that you can use to set reminders. Carve out time and honor it. Review your accounts regularly for accuracy.

Money Tip #3: Automate Your Money Management System

You've created a money management plan using Curtis Banks' Money Smart Allocation System. Depending on the payment options provided by your employer you may be able to have a portion of your income automatically deposited to meet your savings goals. As for your banking institutions, they may offer automatic transfers and automatic bill payment. All of these tools are useful in helping you manage your money and avoid fees.

Money Tip #4: Wealth Mentor (Your Team)

Managing money tips are an excellent resource for building financial awareness. They provide broad educational benefit to readers. A wealth mentor goes above and beyond providing education and resources specific to your individual needs. Because a wealth mentor is someone who has accomplished what you have set out to achieve, a wealth mentor is an indispensable member in your team of experts.

Have you identified who your wealth mentor could be? Curtis Banks has mentored tons of people on how to build wealth. If building wealth is one of your goals, feel free to book a discovery session to learn more about working with Curtis Banks.

Money Tip #5: Payoff Credit Cards Monthly

Curtis recommends that you pay off your credit cards every month to avoid carrying over a balance. This is an important strategy to avoid paying more and more money on interest. By paying off your credit cards every month you're freeing up money for growth opportunities. Additionally, keep each credit card balance within 25% of their credit limit and do not exceed 25% of your total credit limit. Your utilized credit shows up on your credit report and ultimately affects your credit score.

Money Tip #6: Have Adequate Insurance

Insurance is meant to protect you from financial hardship when pre-defined conditions occur. Insurance is a financial product with a variety of options in the marketplace. There are a variety of insurance products ranging from unemployment to healthcare and beyond to help reimburse you. Be a savvy shopper. Shop around for products that offer you an adequate amount of protection at an optimal price. Revisit your plan periodically to ensure that you're getting the best coverage and the best rates.

Money Tip #7: Buy Cash Producing Assets (Passive Income)

Do you plan to work forever? While the type of assets you purchase to grow your net worth should align with your financial goals, it's important to focus on assets that pay you in addition to growing in value. The benefits of cash producing assets have a snowball effect as you buy more and more. It is possible to replace earned income with income from cash producing assets. This can translate to more freedom to pursue other passions you have. Talk to your team of advisors and make a plan for passive income.

Money Tip #8: Grow Your Network

It's said that we are the sum of our social circle. Growing your network of mentors and mentees aids in the personal development of you and those around you. Don't limit yourself by being an island, look outside your immediate circle and expand on the wealth around you so it can be passed down to the next generation.

Money Tip #9: Leverage Tax Deductions

Working with a credible tax advisor and tax preparer can help you keep more of the money you make. Curtis Banks says that it's important to plan ahead and keep a record of deductible transactions. It's important to note that every tax situation is different. Please consult with your team of experts on how this applies to you and your unique financial goals.

Money Tip #10: Be A Savvy Shopper

Curtis says that being a savvy shopper is an important money management tip. Chances are the thing that you’re interested in purchasing is available at a better price from another seller. Comparing prices can save you money. Finally, be patient when shopping. The things you want to buy will still be there in a few days or weeks if you’re willing to wait for the price to go down.

We hope that you have found this article helpful in your journey to better manage your finances. If you want help from a wealth mentor who understands the challenges of managing money, we invite you to book a free discovery session with Curtis Banks. He is looking forward to meeting with you and helping make it easier for all those who are seeking financial freedom!

by MSE Staff | Published 13 Jul 2021 (Updated 5 Nov 2021)

You’re well into your career and finding success with your investments. Now you’re ready to start creating streams of passive income, but you’re not sure what you want to do. Passive income is something that happens when the assets you own generate positive cash flow for you. If you’re looking for ideas of what to do, check out 7 Inspirational Ways to Create Passive Income. Here, I’m going to cover some tips you can use to decide what you want to do.

Understand What Your Goals Are

Your goals are your compass in life. You get to decide where you’re heading and set your own milestones. This is important because you’ll want to be able to answer this basic question:

Does this passive income opportunity align with my goals?

Your passive income stream can be used to fulfill your short-term goals, long-term goals, or both. Are you keeping track of your goals in all the different aspects of your life? Sometimes our focus can be too narrow or too broad when it comes to goals. Request of copy of my Daily Life Balance Dashboard to make sure that you’re covering all of your bases. If you’re already using the Daily Life Balance Dashboard, you can quickly see whether or not a passive income opportunity aligns with your goals.

What Are You Passionate About?

There are things that we know we are passionate about and things we have yet to discover in life. Draw a box on a sheet of paper and write a list of all the things that you know you’re passionate about in that box. Next, write down all of the things you’re aware of yet unsure about outside that box. Take a moment to examine your findings.

You are the CEO of your life. You decide what new experiences to seek out and what new passions you want to discover. The same is true about passive income opportunities. Take a moment to repeat the exercise but replace the passions you identified with passive income opportunities. If you find it difficult to list out passive income opportunities, that is a sign to start searching and learning more.

How Passionate Are You About It?

How much effort are you willing to put into the passive income opportunity? Are you willing to play at a level ten with the passive income opportunities you’ve identified. In this context, playing at a level ten means doing your due diligence. I describe this as four easy-to-remember steps.

First, learn as much as you can about your passive income opportunity. Learn how it works. Learn from multiple experts how to make it work for you.

 Second, make sure that your level of understanding is sufficient so that you are capable of making the right decisions. Your mentors are there to help. Don’t be afraid to ask!

Third, practice what you’ve learned. When you practice what you’ve learned, your understanding increases and you develop skills. Demonstrating financial capability is a skillset; the same is true about creating passive income streams. If you’re unaware of what skills are necessary, ask your mentor.

Finally, have multiple mentors that are willing to show you how to succeed. A mentor is someone who is successful at what you want to achieve, knowledgeable, and willing to show you how to find success. If you’re playing at a level ten, you’re willing to commit to these four steps on your good days and your bad days!

Make a list with two columns. In the left column, you’ll write down your passive income opportunities. In the right column, you’ll write down a number between 1 (low) and ten (high). Reflect on each of your selected passive income opportunities and decide what level you’re willing to play at.

Putting It All Together

If you’ve read this far, you now have a few solid tools to help you navigate which passive income opportunity is right for you. First, make sure that your passive income opportunity is in alignment with your goals. Second, make sure that you’re passionate about your passive income opportunity. It helps in the long-run and you’ll fell good about it. Third, determine how willing you are to learn, understand, and practice; follow through and play at a level ten. Fourth, make sure that you have mentors who are willing to guide you. If you can check off all four of these items, then you’ve found strong candidates for passive income opportunities.

by MSE Staff | Published 11 Jul 2021 (Updated 5 Nov 2021)

Imagine having a carefree day going to the places you like to go, doing the things you love to do, and feeling fantastic about it. That’s because at the end of the day your investments are creating income for you without you being there working. Welcome to the concept of passive income. There are generally three ways to generate income. These are sorted out as earned income, investments, and passive income. Today, we’ll focus on creative ways people are setting up passive income. But first, let’s briefly cover the different types of income.

Earned Income

Earned income happens when you exchange labor for money. This is one of the most common ways to create income. Most often, your labor is compensated as wages, tips, salary, commission, and bonuses. The key takeaways to earned income are that your time and the value of your labor dictate how much you can make. We all have a set amount of time that we can devote to work each day. This means that the value of labor is an important variable for earned income. However, passive income is our goal so let’s move on to investing.

Investing Income

An investment happens when you let someone borrow your money under the condition that they pay you back – along with compensation for the amount of time they have your money. Investments can become creative in and of themselves but that is the concept behind investing. The most common ways to be compensated for lending out your money include interest, dividends, capital gains, and equity.

The key takeaways to investing are as follows. First, your money grows overtime based on the terms you and your borrower agree to. Second, all investments assume a level of risk and reward. Investments create value over time based on the terms and interest rate. This means that it’s important to be comfortable with the terms and interest rate of your investment based on the level of risk you are willing to assume. However, most investments don’t qualify as passive income; they are considered assets that increase in value.

Equity is a bit different. Equity happens when you take on debt to acquire an asset. The goal is to have the value of the asset exceed the debt taken on when buying the asset. A great example of an equity investment is taking out a mortgage to buy real estate. The investor buys the real estate with the expectation that the future value of the real estate will offset the mortgage for a nice return. Understanding how to predict whether that asset will increase in value is very important. But that’s enough about investing, so let’s talk about passive income.

Passive Income

Passive income happens when the assets you own generate positive cash flow for you. Like investments, there are many creative ways to set up passive income streams. The important thing that distinguishes passive income from earned income is that you’re not exchanging labor for this income. And unlike investments, passive income generates passive cash flow for you. Some common income sources for passive income include rental properties, royalties, pensions, annuities, and business income. The key takeaway for passive income is that your asset is producing positive cash flow for you. With that out of the way, let’s look at some creative ways people are generating passive income.

Affiliate Programs

Affiliate marketing programs work by having a third party generate sales for your product or service in exchange for a share of the sales revenue. You may already have a great product or service that’s just waiting to make a positive impact in people’s live far beyond what you can do yourself. This can be an efficient way to spread the reach of your product or service while generating passive income. There are a variety of platforms and services that help make running your affiliate marketing program a breeze. I recommend that you learn and understand as much as you can about running your own affiliate marketing program if this sounds interesting to you.

Rental Properties

Renting out your property for others to use is an excellent source of revenue. Many of these options range from Air BnB to hiring a company to manage your tenants. The possibilities extend even further with people renting out their cars, storage space, and more. If you own it, chances are that somebody wants to rent it. Think about things that you own but never use; would you rent it to someone else for passive income?

Sell Your Knowledge Online

Think about something that you’re skilled at. Have you ever considered teaching it to others? An online course, book, or monetized YouTube video is a great way to generate passive income. It’s a big world. There are likely tens of thousands if not millions of people who would like to know what you know. If helping others succeed makes you happy, consider sharing your knowledge. It’s a great way to generate passive income.

Licensing Your Ideas for Others to Use

Did you create a new way of doing things, invent a tool, or develop an app that others can use? You can allow people to have access to your creation while generating revenue. This happens all the time in the background. Whether it be music, artwork, a process, or software, your intellectual property is valuable for you and for others. Take a moment to document your idea and understand who would be willing to pay you for continued access to it. You may discover a source of passive income.

Retirement Annuities & Pensions

Retirement plans are an important source of passive income when you’re retired and no longer working. Are you making the most of your employer’s retirement or pension plan? Retirement savings plans and pension plans are often overlooked as a source of passive income. Learn about your options and consult with a financial advisor so that you can make the most appropriate decisions around your retirement account.