What is Robinhood?
The Robinhood app debuted in 2013 as a first-of-its-kind revolutionizing free investment platform. Much like the 700-year-old story of the hero to the people, Robin Hood, FinTech entrepreneurs Vladimir Tenev and Baiju Bhatt created the platform in order to make stock trading easily accessible to the general public and not just the wealthy.
The sleek designed interface of the Robinhood app is easy to use
What do I need to open a Robinhood account?
Essentially, you don't need anything but your basic info and email to get your account started. Since Robinhood doesn't require a minimum deposit, you can connect your banking accounts after setup. Your Robinhood account can be accessed either from the web or through their mobile app.Once you link your financial institution to transfer funds into the account, you can start buying and selling stock. Robinhood features instant deposits, which makes up to $1000 of your pending bank transfer available immediately for trades. This can be crucial if you wish to buy on stock right away for max gains, as it can take up to five business days for the transfer to go through.
The most enticing aspect of joining Robinhood may just be the randomized free stock they give to each user at sign up. Although there is a 98% chance that stock will range anywhere from $2.50-10 in value, there's a 2% chance you might receive a stock valued at $200 or more!
The statistics and return on individual Robinhood stocks is easy to read and understand
- Robinhood offers fractional share purchases. This allows you to buy a portion, or fraction, of a stock share. Say you want to invest in Tesla stock but don't want to put around $400 into buying one share of it. With fractional shares, you can invest as little as $1 into stocks like Tesla.
- The refer a friend program offers you another randomized free stock for each successful referral.
- With Robinhood's cash management program, uninvested cash deposits are managed through Robinhood's network of program banks, where it earns a variable interest (currently .30%) and is protected under FDIC insurance regulations. You also receive a debit card for use of the funds and can make purchases online through Apple Pay, Google Pay, and Samsung Pay. All of this is offered to Robinhood users free of charges or fees.
- For $5 a month, users can upgrade to Robinhood Gold. With Gold membership, you get higher thresholds for instant deposits, substantially superior market research through Morningstar and NASDAQ, and access to margin trading to buy stocks on borrowed money.
Some of the popular stocks on Robinhood will show brief analytics, but professional research is only available to Robinhood Gold members
- The user is in complete control over which funds to buy and sell. There is no financial advisor in charge of your investments. With complete control, the user has to either take time to do their own research or take the risk of possibly losing big without having expert advice.
- Robinhood limits you to only one account option, a brokerage account. Without the option of a tax-deferred retirement account as the investment vessel, users have no choice but to pay taxes on the account right away.
Who is Robinhood Best Suited for?
Robinhood offers cryptocurrency trades from many of the biggest companies in the business. Being one of the few brokerage apps that allow this, Robinhood is great for people looking to get into crypto investing.
Generally speaking, Robinhood is best for new-to-investing users who want to try an innovative way to dip into the world of investing with a little bit of cash. However, I wouldn't recommend this app for anyone looking for anything long term.While Robinhood gained much of its craze because of being the first commission-free trading app, many more brokers have also gone to commission-free trades. Ameritrade and Fidelity are two brokerages that offer commission-free trades but with the full service and options of a mainstream brokerage.
As anyone who has ever sold a house will tell you, you must prioritize curb appeal. Before a potential buyer even considers looking inside your house, they notice the outside first. Does it attract the right kind of attention? Does it take away from the feel you're going for? If you plan to sell sometime soon, you must think about these things. Here are some landscaping options to increase your home's curb appeal, so you can get the best price on your home.
Extensive Plants and Greenery
A barren front yard won't get you the price you want on your home. So, invest in at least a little bit of greenery to keep the surrounding area from looking too dead. Shrubs and bushes tie the house to the lawn that precedes it, and flower beds bring a pop of color to an otherwise drab structure. You can also strategically plant some trees to improve the overall feel of your home's exterior.
As we mentioned, your lawn is one of the most prominent features of your home's exterior. A patchy, dried-up lawn will quickly drive your home's price way down. Some of the best landscaping options for your home's curb appeal involve improving your lawn for the next inhabitant. Overall fertilization, ground aeration, underbrush removal, proper mowing—all of these lawn care tasks contribute to a greener and more lively area that invites people to see your house, rather than stay away from it.
There's nothing like a broken and disheveled pathway to make someone think twice about buying a property. Just as you want the entryway in your house to be welcoming, so too should the pathway leading up to the house be inviting. The pathway from the street to your front door provides plenty of real estate to get creative with. You don't have to settle for a boring concrete pathway. Consider something more eye catching, like a cobblestone path or intermittent brick patterns, as a way to better welcome potential buyers.
Usable Outdoor Furniture
Landscaping doesn't just involve the ground you walk on; also included are the items you use as extras to the overall look. Outdoor furniture is one such extra that you don't necessarily need but can look quite attractive if done correctly. Staging is important with outdoor furniture. Old, broken-down pieces will only look like more work to the potential buyer. A few comfortable chairs, a bench, or a table with an umbrella really go a long way to improving your outdoor aesthetics.
A good tip for deciding on curb appeal items is to decide what you personally would want to see as a part of a welcoming home's exterior. You don't need to go overboard, but a little bit of forethought could net you quite a lot of extra cash in the sale.
Many people strive to support their community by donating their time or their money. When you find a meaningful cause, you might be quick to cut a donation check. Though it's admirable to be quick to act charitably, you should be wary of several common mistakes made when giving to charity. Being mindful of these mistakes and learning tips for making informed charitable choices can help you make the most out of your generous check.
Acting Quickly Out of Emotion
Mission statements are meant to be compelling. If you're an emotionally driven individual, it's natural to pull out your wallet at the sight of a sad puppy on TV or when informed about food insecurity over the phone. Unfortunately, not all charities are as effective or official as they may seem.
Take your passion for helping others one step further by making sure your chosen charity is legit. Speaking with a representative, reviewing their website and social media accounts, and looking at testaments online can give you a better idea of whether the organization is worth your donation.
Forgetting to Keep Record of the Donation
Don't forget that you can reap some financial perks from giving back! With the proper documentation of your donation, you can acquire a better tax deductible.
If you donate more than $12,400 as a single filer or $24,800 as one of two joint filers, you're eligible to deduct that amount from your taxes. So, when a charity asks if you'd like a receipt of donation, always answer yes.
Donating Unusable Materials
Most charities can utilize a monetary donation—it's the physical donations that usually cause some issues. Providing a local nonprofit with irrelevant materials or gifting them with unusable products are surprisingly common mistakes made when giving to charity.
Always check your intended charity's website for a list of things they do and do not accept. The majority of places will provide a guideline to donating or offer contact information to clarify any questions.
Strictly Giving at Year's End
As more and more people get into the holiday spirit at the end of the year, nonprofit organizations see an influx of donations. While it's great to spread holiday cheer via a monetary donation, it's important to keep that spirit going year-round.
With regular donations, charities can more effectively allocate their annual budget. Setting up an automatic monthly donation with the charity of your choosing can maximize your impact. You can account for a monthly donation by foregoing a costly coffee every once in a while.
Knowing how much you should spend on home maintenance each year is hard to figure out and may be preventing you from buying your first home. The types of costs you'll incur depend on the house you buy and its location. The one certainty is that you should start saving now. Read on to figure out how much to start setting aside based on the home you own.
The Age of Your House
Consider several factors when budgeting for home repairs. If you've purchased a new home, your house likely won't require as much maintenance for a few years. Homes built 20 or more years ago are likely to require more maintenance, including replacing and keeping your windows clean. Further, depending on your home's location, weather can cause additional strain over time, so you may need to budget for more repairs.
The One-Percent Rule
An easy way to budget for home repairs is to follow the one-percent rule. Set aside one percent of your home's purchase price each year to cover maintenance costs. For instance, if you paid $200,000 for your home, you would set aside $2,000 each year. This plan is not foolproof. If you bought your home for a good deal during a buyer's market, your home could require more repairs than you've budgeted for.
The Square-Foot Rule
Easy to calculate, you can also budget for home maintenance by saving one dollar for every square foot of your home. This pricing method is more consistent than pricing it by how much you paid because the rate relies on the objective size of your home. Unfortunately, it does not consider inflation for the area where you live, so make sure you also budget for increased taxes and labor costs if you live in or near a city.
The Mix and Match Method
Since there is no infallible rule for how much you should spend on home maintenance, you can combine both methods to get an idea for a budget. Average your results from the square-foot rule and the one-percent rule to arrive at a budget that works for you. You should also increase your savings by 10 percent for each risk factor that affects your home, such as weather and age.
Holding on to savings is easier in theory than practice. Once you know how much you should spend on home maintenance, you'll know what to aim for and be more prepared for an emergency. If you are having trouble securing funds for home repairs, consider taking out a home equity loan, borrowing money from friends or family, or applying for funds through a home repair program through your local government for low-income individuals.