13 Personal Finance Tips that we can learn from the World’s Richest People

It’s no secret that a lot of us want to be rich. After all, who doesn’t want to live a life of leisure in luxury? However, while a lot of us also know that to get there requires a lot of hard work, there are a few other steps you need to become acquainted with.

As there’s no such thing as overnight success, the habits you pick up to grow your wealth are going to require some patience and practice but will be well-worth it in the end. Check them out below:

Pick up a side hustle

Having a side hustle is going to be one the first ways you can not only gain some extra income but establish yourself for a skill or service. This can mean anything from hosting a drop shipping business to even just running a store on Etsy. Look into what you’re passionate about, and who knows? Maybe it’ll become your full-time gig.

Have saving goals

As you’ve probably heard 100 times before, saving money is absolutely imperative for financial freedom. However, it’s something that collectively we haven’t been as attuned with, as according to GoBankingRates, a shocking 69 percent of Americans has less than $1,000 in their savings account. Take the time to set aside some of your paychecks as you never know when a rainy day is going to come.

Budget for the experiences

Another practice of the super wealthy when it comes to savings is setting aside funds for the experiences they want to have. Regardless of income, everyone has some dream vacation or adventure they want to go on, which you shouldn’t feel guilty for wanting to pursue. Whether it is a wine tour through Napa Valley or hiking in Peru, make an effort to put these activities as a priority.

Spend money where it counts

There are certain events in life that you’re going to want to remember forever, but come with a hefty price tag. Which, if you already know the cost of a wedding or how much a car is going to be, then why try to finagle your way around it? Be honest about the experiences you’ll want to have, and the reward will be much richer.

Pay attention to your credit

Your credit score is going to be the lifeblood of how much people are going to be willing to lend to you, so it’s best to utilize it wisely. If you’re unsure or don’t know how you’ll get out of the hole, not to worry, as there are plenty of firms out there whose job is to fix credit. Make an effort to develop this, as it will serve you well in the long run.

Invest early

While a lot of people fear the stock market in thinking it’s a gambling person’s game, it can actually be a great way to get rich slowly. Yet, not everyone sees it this way, because as noted by Gallup, only 52 percent of Americans have money in the market, a record low. Some places to consider include Index Funds, Roth accounts, or even a 401k.

Cut out some of the short-term spending

Noting our point above on saving for experiences, it’s important to consider the little things you’re spending money on unnecessarily. This includes activities like going out to eat, which according to CNBC, accounts to approximately $140 per month in excess costs.

Don’t buy expensive just because you can afford it

Do you want to know what the most popular car choice of the wealthy is? According to a study by Experian, Honda, Fords, and Toyotas. The rich don’t always want to show off their wealth, but even more, they view their car as a utility, something that doesn’t need to be excessive.

Real estate can have good returns

Perhaps one of the soundest investments you can make long-term is with real estate. According to Investopedia, investment in commercial real estate comes around 9.5 percent, with residential around 10.6percent. These figures beat out the S&P 500’s rate at 8.6 percent, even when factoring in recessions.

Stay away from loaning money

It’s true that there’s such a thing as ‘healthy’ debt, where you’re not biting off more than you can chew, as well as can make payments on-time over the course of a couple of years. However, be very wary of things like credit card debt or loaning money for leisurely activities, as according to NerdWallet, the average credit card debt is $16,883. The interest alone on a balance like that could be crippling, so be mindful of being able to pay every month.

Always focus on your passion

A big thing any wealthy person will tell you is to focus on your passions, and the rest will come. While it sounds cliche, being excited about going to work every day will seriously increase your drive and hustle.

Stay grounded in your decisions

Whether it be investing in the stock market, a startup, or even a piece of property, always is mindful of the risk involved. Sure, taking big risks can have big rewards, but also some sizable losses as well. As noted by MarketWatch, those who are after a five-year return fall within a range of +33.35 percent to a -13.22 percent. That’s a pretty wide spread and one that should not be taken lightly.

Turn yourself into a business

As we mentioned above on your side-hustle, turning yourself into a business/becoming self-employed is one of the most important ways of getting rich. There’s just so much more upside in setting your own price, schedule, and work/life balance. Plus, as the Bureau of Labor Statistic notes, 10 percent of all workers are now self-employed, a number that’s only going to increase steadily.


7 Habits That Foster Wealth and Success

Success is always associated with wealth. Although you can be successful without becoming wealthy, most people who struggle financially consider financial independence as success. If you really want to succeed, clean up your finances and make an educated decision as to what kind of loan will take you on that path. Considering personal loans also known as signature loans, like signature. Loan recommends, can lead you to that goal of reaching financial success.

On the other hand, success is built on specific habits that are common traits of many self-made wealthy individuals. Regardless of your financial status today, you are likely to become wealthy and successful if you possess the right qualities. If you don’t have these qualities yet, it’s time you start developing them now.

Today, we will be going over these habits that foster wealth and success. Let’s get started!

1. Wealthy People Know What They Want

Just like architects, wealthy people have their own blueprint of their future. They know exactly what they want, so they know what they need. They plan their goals carefully.

Once they are in the building process, they do not compromise their plans. They are open-minded, but they are determined to prove they’re on the right track.

 2. Wealthy People Never Surrender

When they are down, the more they become eager to move forward because they know that moving forward is the only direction left. That’s how they think, so they do not give up easily on something, especially on achieving a goal.

3. Wealthy People Are Less Talkative but More Action-Oriented

Most unsuccessful people are the ones who have a lot to say. They are good at reasoning out. These are the people who keep on complaining about many things.

Meanwhile, wealthy people talk less as they keep thoughts to themselves. They want their results to speak louder than what they would say. They will not tell you “this can be done.” Instead, they will just do it and show you how.

4. Wealthy People Avoid Negative People

Wealthy people are not interested in getting along with negative people. They are not comfortable hearing expressions, like “I hope so,” “That’s impossible,” “I am not sure,” and so on. The people they want to be around are positive people who are passionate and enthusiastic about what they do.

5. Wealthy People Do Not Procrastinate

It’s no secret to everyone that procrastination is one of the many obstacles toward success. For wealthy people, time is of the essence as they consider time as a precious commodity. Instead, they increase time’s value through organization so that it’s properly utilized. This is why their own rate, they set for themselves is much higher than other people in the workplace.

6. Wealthy People Work Hard

Everybody knows that working hard is the key ingredient to success; however, many people simply don’t do it in reality. This habit is not a secret as all you have to do is apply it in business. Wealthy people work hard, but they schedule out their time accordingly.

7. Wealthy People strive to be Frugal

Wealthy people put a large portion of their money into some type of investment in order to make more. They tend to be frugal with their money as they use wisely on specific purchases. Wealthy people tend to also make budgets and stick to them in order to succeed.

Final Thoughts

To foster wealth and success you have to have the right mindset. Following the habits that have been outlined today will get you started on the right path. Which processes will you apply in your life in order to achieve wealth and success?

Nine DIY Financial Management Tips For Individual Investors

They say you have to spend money to make money, and this is especially true when you’re seeking financial guidance. Financial advisors are well-paid for their in-depth expertise and often help their clients through decisions like investing, retirement planning and long-term savings plans.

Although it’s still wise to consult a professional before any major investments, you can educate yourself enough to confidently make your own personal financial choices without the help of a professional. Nine members of the Forbes Finance Council shared their best do-it-yourself tips for individual investors looking to better manage their finances.

1. Invest for the long term.

The lure of a quick buck can guide investors to make certain investing decisions. But, unless you’re a day trader, a long-term strategy is the best way to protect your assets while ensuring ROI in the long run. The market will fluctuate over time, but history shows that it tends to go up in the long run, so looking to the future will keep an investment plan focused and profitable. – Sari Holtz, DailyForex

2. Open a Roth IRA.

If you’re just getting started with investing, a Roth IRA can be a great way to start. Since it is a tax-advantaged investment, it allows your wealth to grow and compound tax-free. Your investments are initially taxed, so you can make withdrawals tax-free in retirement. And, you will typically have access to a wider range of investment opportunities with a Roth IRA than you would with a 401(k). – Elle Kaplan, LexION Capital

3. Don’t follow fads.

I believe that everyone can be successful in managing their own finances as long as they are well-informed. A common mistake I see individuals making is investing based on a trend or fad instead of research. Read everything you can get your hands on, and question unproven assumptions. – Mahati Mukkamala, Klaviyo 

4. Purchase indexed annuities.

Sold by insurance companies, indexed annuities offer a way to participate in stock market gains while limiting downside risk. When the market is climbing, you’ll share in the returns, but you’ll be protected from losses by a guaranteed return even when stocks fall. The guaranteed return means that even inexperienced investors can participate without big risk. – Danielle Kunkle, Boomer Benefits

5. Take advantage of money management apps.

I personally manage my own money and regularly use apps like Mint and Robinhood. Mint keeps my personal finances in check, and I invest through Robinhood. Both have extremely low fees and are easy to use. Money management and investing aren’t just for the pros anymore; the fintech trend has resulted in new resources and apps at your fingertips. – Rachel Carpenter, Intrinio

6. Invest in a lifecycle fund.

Lifecycle funds require very little work on your part. Unless you really know exactly what you’re doing, it’s the best way to go. As long as you keep stashing money away, it should keep working for you. – Ismael Wrixen, FE International

7. Look into low-cost index funds.

Paying investment professionals to manage your portfolio can often cost you a lot of money unnecessarily. When you add in the cost of actively managed investment options, the average managed portfolio will underperform the market.

The best investment most people can make, whether they’re wealthy or just have a few hundred dollars to invest is a low-cost index fund. – Paul Paradis, Sezzle

Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?

8. Be resourceful with technology.

In the technological era, everyone can be successful with their finances without professional interference. Take advantage of the resources at your disposal. Thousands of apps and websites can aid in the investment process. Record keeping is a must-do, and it’s the only true way to monitor and adjust for proper spending. – Ibrahim AlHusseini, The Husseini Group

9. Budget, budget, budget.

Know how much you spend monthly and what you spend it on. If you’re able save $500 to $1,000 each month and place it into an investment account, you will witness the phenomenon of compounding interest first hand. Making this systematic is the key to it actually happening. Don’t look at saving money as an idea but as a way of life. You will thank yourself later. – Lance Scott, Bay Harbor Wealth Management

How to Invest for the Rest of 2017: Our Mid-Year 2017 Outlook

Heading into the second half of 2017, we believe the elongated U.S. credit and business cycle – currently eight years old and counting – will continue through the end of the year. Yet for the first time in almost a decade, the risks to the global economy are centered in the U.S. and not in other major world economies.

Growth in much of the rest of the world is stable or accelerating. In Europe, a much-anticipated credit and earnings cycle is underway, while most emerging markets are recovering from their 2015-2016 slowdowns and recessions. In our view, the biggest threat to the global economy is the prospect of the U.S. Federal Reserve (Fed) further tightening U.S. monetary policy.

Against this backdrop, we believe:

  • Equities remain the asset class of choice. International equities are more attractively valued than, and likely to outperform, U.S. stocks.
  • Within the U.S., we favor growth companies in an environment where macro growth will continue to be scarce.
  • Long-term Treasury rates will remain low for the foreseeable future and send a message to the Fed to proceed with caution.
  • Emerging market sovereign and corporate bonds offer the most attractive value in fixed income for global bond investors seeking potential total returns.

Market cycles ultimately end with tighter monetary policy and the yield curve inverting. We believe this time will be no different.

Mutual funds are subject to market risk and volatility. Shares may gain or lose value. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks.

These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.

Carefully consider fund investment objectives, risks, charges, and expenses. Visit oppenheimerfunds.com or call your advisor for a prospectus with this and other fund information. Read it carefully before investing.

Here’s how to invest in real estate — think Warren Buffett-style, not shopping malls

It’s beginning to feel like a summer lull out there for markets.

But a herd of Fed speakers — including Janet Yellen — could break the pre-holiday spell and deliver a last-minute shake-up as this year’s first half wraps up today.

Stocks don’t necessarily deserve a boost, with the Dow and S&P on track for their best first half in four years. And the NASDAQ is flirting with its biggest gain since 2003 (though techs don’t look too frisky in the early going).

So, where to invest for the second half? Well, there’s lots of chatter about real estate investment trusts, aka REITs, after yesterday’s news that Warren Buffett has taken a big stake in Store Capital STOR, +0.71%.

REITs can yield big profits — but only if you know which ones to buy, say Bespoke Investment Group analysts for our call of the day.

“While the shopping mall REITs have been tanking, the REITs that lease out warehouses to tech companies that need space to house all of their servers and cloud data have been surging,” Bespoke’s team says.

“The ten best-performing REITs in 2017 are all in strong uptrends, with the exception of GEO and QCP. If you’re a trend investor, you’ll like these charts,” the analysts add. (They’re referring to Geo Group GEO, -0.65% and Quality Care Properties QCP, +2.77 %.)

In other words, tech-exposed and health-care real-estate stocks have had a stellar start to the year and are likely to keep going up. Traditional retail real estate such as malls, however, faces “Death by Amazon” as shoppers shift online. That means investors should avoid that type of building, according to Bespoke.

“While there has been lots of brainstorming about what to do with malls that often look like ghost towns these days, we haven’t seen any convincing ideas yet (except maybe turning them into tech data centers!),” the analysts say.

One of Bespoke’s picks also gets praise from Forbes and Seeking Alpha scribe Brad Thomas, who singles out CareTrust CTRE, +0.57% as a “REIT gem” set for relatively speedy earnings growth.

As for Buffett’s REIT pick, that’s along the lines of what Bespoke is backing — less than 20% of Store’s portfolio is in traditional retail.

Key market gauges

Dow ESU7, -0.34%   and S&P futures ESU7, -0.34% are slightly lower, while Nasdaq-100 ESU7, -0.34% futures YMU7, -0.26% are showing a bigger loss.

The dollar index DXY, -0.02% is suffering, largely because a jump in the euro. The shared currency EURUSD, +0.0000% surged to a two-week high after hawkish noises from ECB boss Mario Draghi. That drove European stocks SXXP, +0.60% lower.

Crude US: CLU7 continues to recover and is taking a stab at reclaiming the $44 level, while gold US: GCQ7 is recovering from its “flash crash” yesterday.

The chart

The sun is shining again on shares of solar-panel makers, which have been through a rough patch. Now they’re rallying, after President Donald Trump said last week he wanted to clad the long-promised border wall with solar panels, to help pay for it by generating power.

That helped send the Guggenheim Solar ETF TAN, +1.01% up 8% last week — the best weekly gain since December 2015 — and it continued to rise on Monday. That means it’s now trading at an eight-month high, as this chart shows.

Analysts don’t necessarily believe the wall-plus-panels will see the light of day. But it’s a positive development that Trump’s making a pro-solar statement, they noted, according to The Wall Street Journal.

The buzz

Alphabet GOOG, -0.21% GOOGL, -0.34% is getting squeezed today after the EU’s antitrust body slapped the Google parent with a record €2.42 billion fine.

Sprint S, +0.24%  , Charter Communications CHTR, -1.52%  and Comcast CMCSA, +1.11%   are said to be in talks to bolster their wireless services.

Pandora Media shares P, -1.66% is halted this morning and the rumor mill is going nuts.

GM GM, +2.24% are waving another red flag for the car industry, warning its U.S. auto sales will fall short of forecasts.

China’s Premier Li is touting the country’s “unimaginable job growth” at the annual June meeting of the World Economic Forum, which started Tuesday.

All sorts of investing views have been getting shared at the Evidence-Based Investing Conference (West)

The economy

The flurry of Fed talk continues today, with Philly Fed’s Patrick Harker and Minneapolis Fed’s Neel Kashkari on tap. The highlight though is Chairwoman Yellen’s speech in London around lunchtime.

On the economic docket this morning are the Case-Shiller U.S. home price index and the consumer-confidence index. See MarketWatch’s Economic Calendar.

The quote

“If, however, Mr. Assad conducts another mass murder attack using chemical weapons, he and his military will pay a heavy price.” — The White House accuses the Syrian government of preparing to use chemical weapons on civilians, including children.

The stat

710% — that’s where Venezuela’s annual inflation rate stands, as the country battles with an ever deepening economic crisis. Professor Steve Hanke from Johns Hopkins University points out that it’s the first time inflation has spiked above 700% in the country since June 2015.

How to Invest in Oil without Taking a Risk

Bob Ravnaas raised a paddle in a Houston auction house to secure his first block of mineral rights 19 years ago, when oil prices were swooning below $20 a barrel.

A generation later, that same West Texas oilfield is still spinning off royalties, part of a mineral-rights empire amassed by Ravnaas that stretches across 20 states and delivers millions of dollars in cash payments. Kimbell Royalty Partners LP, where the former petroleum engineer is now chief executive officer has stakes in 48,000 oil and natural-gas wells in some of the hottest U.S. shale patches. These days, it’s not alone.

America’s drilling boom is making a hot commodity out of one of the stodgiest of oilfield assets, the monthly royalty check. Lured by the promise of steady returns without the cost of actually operating wells, companies like Kimbell are racing to acquire rights around the U.S. Private-equity giants including EnCap Investments LP and Blackstone Group LP are getting into the game as well, pouring billions into the market.

“It’s become a very attractive investment,” said Ravnaas, whose Fort Worth, Texas, company went public in February with a $90 million offering. “Oil and gas production has increased dramatically in the last ten years, and the size of the royalty market is increasing exponentially along with it.”

Drillers have negotiated with landowners for decades to tap the reserves below their acreage. But mineral rights have taken on new value as advanced drilling techniques sparked a renaissance in oilfields across the U.S. The rights guarantee holders an upfront bonus when an operator decides to drill and a cut of revenues for each barrel sold thereafter.

Generational Turnover

The growth in interest has been fueled by generational turnover. As time has passed, mineral rights have been passed down and diluted among successive generations. Descendants now see better value in packaging and selling off those rights for an upfront payment or equity in the new minerals companies, Ravnaas said.

In what was once a mom-and-pop business, $20 million deals with Texas cattle ranches or other major landowners have become more common, according to the CEO. Speculators are knocking on doors and blanketing mailboxes in hot shale plays, hoping to amass mineral rights for cheap before the drilling companies arrive.

Royalties typically range from an eighth of the per-barrel price to as high as a quarter in coveted areas like the Permian shale basin in Texas and New Mexico. Rights-holders aren’t on the hook for operating or financing costs to run the wells, although their income does depend on a driller’s willingness to keep pumping. Crude futures have fallen 14 percent in New York this year and were at $46.53 a barrel as of 10:06 a.m. on Friday.

“It’s effectively a zero-cost exposure to the minerals” said Brian Brungardt, a Stifel Nicolaus & Co. analyst in St. Louis. He tracks Kimbell and two other royalty-chasing partnerships, Black Stone Minerals LP (no relation to the equity firm) and Viper Energy Partners LP.

20 Million Acres

Collectively, the companies have spent more than $120 million to acquire new rights this year and now hold a claim on oil and gas royalties from more than 20 million acres in the Permian, Bakken, Marcellus and other shale fields, according to corporate filings.

Private equity firms have jumped in as well, seeing mineral rights as a more affordable entree into the U.S. shale boom.

In the Permian, drilling rights have reached $40,000 an acre and higher in the past year. The top price for mineral rights in the area is closer to $20,000 an acre, although competition has been pushing the tab up, said Rich Aube, co-president of New York-based Pine Brook Partners. The firm has devoted more than $100 million to royalty investments, including Brigham Minerals LLC.

“It’s a new way to invest in the same resources in a way that’s less capital-intensive,” Aube said in a telephone interview. “You have a lot of folks who want exposure to these resources with a different risk profile and have found this more attractively priced.”

Encap, Blackstone

Houston-based EnCap, among the biggest energy-focused buyout firms, has devoted $1 billion to mineral investments, while New York-based Blackstone has invested more than a half-billion dollars. Aube said he knew of at least a dozen other equity firms that have assembled their own minerals teams.

Representatives at EnCap and Blackstone declined to comment.

The firms are pitching mineral rights as a new asset class for investors seeking better returns in a world of ultra-low interest rates.

Viper Energy and Black Stone Minerals pay quarterly distributions that yielded more than 7.2 percent apiece as of this week, while Kimbell’s yield was projected at 5.6 percent, according to data compiled by Bloomberg. Each beats the average investment-grade energy bond yield of about 3.5 percent, according to Bloomberg Barclays index data.

“You’ve got hundreds and hundreds of landmen that are constantly putting together an acre here and an acre there and then selling,” said R. Davis Ravnaas, Kimbell’s chief financial officer and the CEO’s son. “We meet a new team almost every week.”

The risk for royalty collectors is that they’re at the mercy of a third party — oil companies — to keep the petroleum pumping. Kimbell reported a net loss in each of the last three years, after more than $40 million in writedowns related to slumping oil and gas prices.

Despite those paper losses, cash flow and production continued to grow, the company said in an emailed statement. Kimbell credited “a highly tuned acquisition strategy which focuses on only buying high quality properties with ongoing development and upside potential.”

The market’s volatility puts a premium on having the right executive team, said Brungardt, the Stifel analyst.

“You need a team in place that has got the experience in not only analyzing reserves and well economics but also the acquisition side,” he said. “You may be sitting on a lot of acreage, but if nobody’s interested in it, you are out of luck.”

“It’s critically important to purchase not only the right rocks but the right rocks operated by the right operators,” added Aube, of Pine Brook Partners. “You don’t control the pace of drilling, but that’s a judgement that affects the value of your asset and what your cash flow is going to look like over time.”

Investment tip: How long should you run an SIP?

mutual-funds-bcclIt’s a question that vexes many mutual fund investors once they buy into the concept of investing through a Systematic Investment Plan (SIP): When you have a lump sum to invest, then over what period should you spread the SIP? Of course, for most SIP investments, the question does not arise. The most common type of SIP investment is a monthly one that goes out of a monthly income. This sort of SIP continues and is useful in a way to keep investing without bothering to actually take the time out and do it.

However, occasionally, the SIP investor gets a large sum of money at one go. It could be a bonus from a workplace, or it could be proceeds from the sale of some asset like real estate, or it could even be your retirement kitty which you need to spread and make it last for the rest of your life. Investing in an equity-backed mutual fund is the best way to get great returns over a long period like 5-7 years or more. However, over shorter periods, equity funds are dangerous. And when you invest at a large sum at one shot, then the risk is the highest. If the markets turn turtle, you could lose 10, 20 or even higher percentage of your invested amount very quickly. Since the beginning of the Sensex in April 1979, of the almost 13,900 possible six month periods, as many as 2,269 yielded a loss worse than 20%. If you just happened to catch a period like that at the beginning, then you would lose a large chunk of your capital right before it even starts growing. In theory, you could eventually recover, but in practice you would probably panic and pull out your money, making your loss permanent.

The antidote to this is a Systematic Investment Plan. Spread your investment at a monthly periodicity over a certain period. Your entry price will be averaged out and you will be saved from the risk of a sudden decline. Moreover, you will end up buying more units of the fund when the markets are lower, which will enhance the returns you will get. That is of course, the standard set of advantages that a SIP has. However, the vexing question is what is this ‘certain period’? Is it six months? One year? Two years? Or even longer? There are arguments for and against.

Last week, I wrote about the research project on historic SIP returns that Value Research has carried out and we saw how SIP was truly safe for about four years and above. In this study, we found that on an average, if you invest in a SIP over four years, then your risk of a loss is negligible. It’s also interesting that the risk of loss and the chance of an outside gain are both higher over short periods. Over longer periods, the good times and the bad get averaged out minima and the maxima converge. Consider this, for a typical fund with a multi-decade history, over all possible one year periods; the maximum returns are 160% and the minimum – 57%. Over two years, this becomes 82% and -34%. Over three, 63% and -18%. Over five, 54% and 4%, meaning never any loss. Over ten years, maximum is 30% and minimum 13% .These is all annualized figures. The trade-off is crystal clear–the shorter the period, the higher the potential gain but the worse the possible risk.

The answer from this data appears to be that SIPs must last more than three years. If you seek zero risk of loss, then that is the correct answer. However, for many investments, this is too long. If you are getting an annual bonus from your employer, it would be ridiculous to spread it over 3-4 years.

If you have sold some ancestral property and the sum realized will be the core of your old age income, then you need to be cautious about the risk you take. In a case like this, you would do well to forego some potential income to ensure that you don’t make a loss. A rule of thumb is that you could invest the money over half the period that it has taken you to earn it, subject to the maximum of 4-5 years. So annual bonus could be invested in six months, while ancestral property could take five years. It’s basically a way of linking risk to how significant that sum of money is for you.