Working Hard VS Working Smart

Working hard vs working smart

Being rich is the dream of several people around the world, and someone who aspires to become rich has their own way of doing so. You can be rich and have your own ways of growing your wealth. Involving yourself in a regular 9-5 job can be one of those ways, but it is known not to work just by itself. Although a 9-5 job is a monotonous way of earning money, it helps to fill your pockets to make up for all the expenses that you might come across on a day to day basis. The only catch is, you earn a limited amount of money by it and so, the success that you gain from this 9-5 job is also limited.
The amount of hard work that you put into the job does not determine the amount of money that you will earn from it. Of course, it is a wonderful stepping stone from not having a job and not earning, to having a decent job and beginning to accumulate a decent amount of earnings, but it won’t get you too far if you’re not smart with your money. There is a constant battle — does a person need to work hard or work smart to become successful? We are not here to discourage hard workers or passionate employees, but we are here to promote a mindset that will encourage you to be smarter with your hard-earned money.
Let’s take a look at two hypothetical situations:
1) Michael is a construction worker who earns $45,000 a year, his job conditions require him to work under harsh conditions, sometimes even over 12-15 hours per day, which is much higher than the hours to a standard office job. He has no other source of income apart from his job, which would put him in an extremely difficult situation if he ever has the thought of leaving his job, or gets fired from his job.
2) Phoebe worked a 9-5 office job for a while before starting a side business on her own in order to generate more income due to the rising expenses in response to the economic ups and downs. She wanted to sustain her income and allow herself to have some flexibility when it came to her job, which is why she started a side business. The money she generated from her business was used to enhance it, while the rest was put into real estate investment, which helped her generate more. She is expected to make $250,000 out of her business and investments.
Who do you think attracted more wealth — the first scenario, where Michael only worked hard or the second scenario, where Phoebe worked both hard and smart to manage her expenses?
There really is no competition between them both, and there is no either/or with regards to working hard and working smart. Both of them go hand in hand, coordinate with one another to reward you with something bigger. What you choose to do with your money plays a big part in how you sustain your wealth. If you are merely earning to suit your short-term goals, this can be a big risk as you might accidentally fall into economic problems in the future. The more unique value you have to what you are doing, the more it will last you in the long run, in terms of income.
Working hard is an aspect that has been drilled within us ever since we start going to school. We are told that we should work hard to achieve our grades, to strive to work towards leadership. We can work hard to absorb as much information as we can, but if we prepare for exams in this way, it will only get us a limited grade. For an exceptional result, you would need to have a strategy, a motivation to solve similar kinds of exams to prepare yourself and a target in terms of how much you want to complete in the given amount of time.
The same goes for money. We are taught that working hard and long hours at our jobs after attaining our degrees is the way to go, to be successful. You might be able to achieve nobility or success within your field, but you might not be able to advance too much in terms of income if you’re not smart with what you do with it. Saving money for consumer goods could work out, but then again, the money will be spent and gone from your pocket. Rather than doing this, you should save to buy things that could possibly allow you to earn money from what you bought. That “thing” is defined as an asset because when you buy it, it eventually brings more money into your account instead of taking money away from your account over a period of time. Your hard and smart work, have a definite worth for your future. Don’t let them be enemies or frenemies — they are partners.

Make your money work for you.

With Smart Crowd, you can build a simple & affordable crowdfunding real estate investments portfolio starting from USD5,000

Buying vs Renting


There are several blogs revolving around this topic – whether buying or renting is better, which one is more advantageous than the other. Some try to intentionally weigh up buying and some try to weigh up renting based on bias. What is less commonly seen, is people talking about preference. Which one do you think would be better fit for you? Which one do you think suits your lifestyle? There are several factors when it comes to choosing between buying or renting, and they are all pertaining to your personal needs and your lifestyle. Circumstances make buying and renting different for several people around the world, and it is not advisable to follow somebody else’s steps in matters that can be so personal to someone. It is obvious that there are cost differences between both, but there are intangible differences that matter the most when it comes to buying or renting.
These are the kind of questions you should ask while thinking about buying over renting or vice versa:
  • What are your financial plans or family goals?
  • Are your plans reaching towards the direction of a long term or short term
  • Are your options more geared towards stability or flexibility?
  • How long are you planning to stay, or are you planning to stay at all?
These are some of the basic starting points to consider when it comes to thinking about whether to buy or rent a property/home. They merely provide you with a roadmap or guidance to help you to reach the ultimate decision.
Your roadmap to renting
If you’re someone who has more of a short term plan in terms of finances and lifestyle, then renting would be a preferred area of choice. There are several times where people are not secure within their jobs and think it would be more suitable to keep moving and remain flexible rather than stable, this is one of those situations where renting may be ideal, because you’re not responsible for anything related to the property, and you can simply pack up and leave based on your own needs.
A significant difference is that there is no hassle with regards to selling the property because the process itself takes a lot of time, and there is no promising that you would be able to sell the property for more value than you originally bought it for, based on market value. With renting, that area is ruled out completely. You might even be renting in order to build credit points for when you might want to own a house in the future, and it would be ideal to wait until you can either afford enough to buy a house on your own or build enough credit to finally attain a house on a mortgage basis. If you choose to rent for a long time, the rent will stick with you for a lengthy period and you might end up paying more when you rent than in comparison to when you buy – this is subject to the rent, how much it increases or decreases as the years go by, etc. Another thing to keep in mind would be the fact that once again, selling the property is not in your hands. If the landlord decides to sell the property to a different owner, you might not be able to live there and eventually have to move out, making stability quite difficult in a situation where a home is rented.
Your roadmap to buying
If you’re following a long term financial and lifestyle plan, it would make sense for you to buy instead of rent, because it would mean that you probably have plans to live in that particular place for a long time. If your family has established itself in one place, and work-wise, it is convenient for you to stay in that one place, it could secure your stability and be of great benefit to you. Lifestyle and personal plans are some of the most personal reasons why one might want to choose to buy over renting and these are the attributes that should first be taken into account before you actually start making the tangible calculations/comparisons between both options.
On the practical side, you would probably need a lot of money on the forefront in order to buy a home or property as well as the entire process of paperwork. If you don’t have the time, money or patience to handle such things, buying would most certainly not be ideal for you, and it would make more sense to wait it out rather than impulsively making the choice to buy at that point. Purchasing the property with the mere expectation of the value going up would be a gamble, speculation. You can’t speculate, nor can you predict the future.
Here is an example of how a couple were not able to manage mortgage payments due to the husband losing his job in between the process.
If you buy a house with the intention of living in it, you might lose money over the years aside from your mortgage payments in terms of the fact that you would be in charge of all the fixing and remodelling that might need to be done to it. Even though the expenses will drastically reduce after the mortgage has been paid off fully, you would have lost a lot more money and the cash flow would not be rolling in much of a smooth manner.
If you buy a house with the intention of not living in it and would rather put it up for rent so that you could earn rental income from tenants, this could benefit you even more in the long run, because rental income is more certain than price appreciation. The rental income would mean that you have a monthly income from the property purchased, and once you have paid off the mortgage, you will become the legitimate owner and be able to save much more at the end of it, in retrospect.
Since it takes such an intimidating sum to invest in a property, Smart Crowd is a niche that is able to balance ownership along with cash flow. It is now possible to own a share of a property with minimal capital along with earning rental income from it.
For a more detailed view about financing your real estate investments, check out our blog on “how you should finance your real estate investment“.

Investing in Real Estate is not for the 1% anymore!

With Smart Crowd, you can build a simple & affordable crowdfunding real estate investments portfolio starting from USD5,000

How to Avoid Debt and Money Trap Problems

How to avoid debts and money trap problems

If you live in the UAE, or are planning to move to the UAE, you’re probably curious about debts and how the system works. The best advice would actually enable you to avoid getting into debt in UAE; moreover, avoid getting yourself into a possible money trap problem or activities which could lead to possible fraud. Debts and failure of payments could cause you to be in serious trouble not only in the UAE, but anywhere else in the world, which is why it would be wise to take precaution; it is better to be safe rather than sorry.

The entire reason you would be needing to borrow money from the bank is either because your expenses are not proportionate to your earnings, you want to start a business or want to buy a home. The bigger purchases such as a car or a home would be impossible to attain without a loan for someone with an average wage, but there are certain things that can be put off for buying later when you can afford them, rather than taking a loan to purchase them immediately.

Can YOU return all the money?

Although banks in the UAE have sufficient criteria in order to apply for loans, so that they are fully guaranteed that you will be able to pay them back, it is still important that you personally reflect. Ask questions like:

  • Is the item that I am taking the loan for, an absolute necessity for the present?
  • Does my financial status give me the guarantee that I will be able to pay back the loans?
  • Will I have to take another loan to compensate for the loan I am taking now?

The following are the things that you should avoid taking loans for:

  • Shopping
  • Birthdays
  • Tickets for special events
  • Topping up your mobile phone
  • Repairs
  • Compensation for other loans

The main goal would be to live within your means. Say no to impulses. If there is anything that makes you feel like ‘you HAVE to buy it,’ sleep it off. If you still want it the next day, you can consider buying it, but keep your mind open to saying no to things frequently. This will help you save up on a lot of cash that you may end up spending unnecessarily. Having a monthly budget would further allow you to monitory your money and spending. Undervaluing budgeting could contribute to a great loss in the future. Feeling overruled by extravagance is another thing that you might encounter if you live or strive to live in a place like Dubai. Spending a sum of money on things you don’t need is not the solution to your wants it will only feed to them more. It is important to distinguish between the things you have been wanting, in comparison to the things that you actually need.

As said by Khaleej Times, the most expensive form of debt is a credit card debt. The moment you make a bank account, you’re bound to get emails and calls for easy loans. Ignoring these will prevent you from getting into the cycle of loans in the first place. The wrongdoer here, is the steep interest or profit rate on credit cards. Don’t let that seemingly small number of 2.99 per cent to 3.25 per cent per month lead you astray. When converted to an annual rate or APR, interest rates on credit cards in the UAE can touch a whopping 40 per cent on average.

Today’s generation has quite the obsession with having a credit card for convenience. Monitoring your money is much easier when you’re paying in cash, so the next step would be to pay in cash as much as possible. Having the reassurance that you have saved something out of being cautious is merely astonishing.

One of the most effective ways of avoiding the situation of attaining a loan all together, is looking for a way to boost your income. A secondary source of income aside from your monthly wage job will serve you well in terms of cash flow. Investing in real estate is an interesting way of attaining secondary income because it is passive. Once the property is rented, you will be sure to have money in your wallet at the end or beginning of every month. The most engrossing part about it, is that – with crowdfunding platforms like Smart Crowd AE, there isn’t a need for a large amount of capital in order to get your investments in place.

Create a secondary source of income!

With Smart Crowd, you don’t acquire debt to invest in a piece of property. You can build a simple & affordable investments portfolio starting from USD5,000.