Although there have been some major struggles with all of the transitions that many of us have had to deal with thanks to the current state of the economy, one thing that has proven to be a silver lining is that entrepreneurship is at what many experts consider to be a record-high—as a matter of fact, one that we haven’t seen at this level in close to 20 years.

This means that now is a time when many people are stepping out and living their dreams of owning their own businesses and/or working from home as contractors or freelancers. And since so many people are making their living this way, would it not make sense to explore some options for investing that hard earned money?

Are you a freelancer who is looking for a few investment tips? If so, here are five that can further help to empower you as someone who makes money, in many ways, on your own terms, and would like to see it grow as a direct result.

1. Start a Solo 401K

Did you know that there is a 401K plan that is strictly for sole proprietors? If you are someone who has no employees, you can set up a kind of 401K to where you can put away money that can grow tax-deferred. It’s called an Independent or Solo 401K and a huge benefit to this is that it will not be taxed until you withdraw it.

2. Set Up a Flexible Automation

If you’re someone who needs a bit of help when it comes to putting money aside each month for your investments, setting up a flexible automation might be the thing that you need to do. Basically, it’s a monthly transfer. In order to determine how much to transfer, look over the past six months of income that you have made and put aside a percentage that reflects the month that you made the least amount of money. That way, you won’t be investing more than you can afford during your “feast” or “famine” months.

3. Consider Investing Your Tax Payments

There is a “blessed curse” that comes with being a freelancer as it relates to the IRS. Since you are considered to be an independent contractor, you are responsible for the money that you make because none of it is taxed income. That can be a good thing, so long as you pay your taxes on a quarterly basis (especially since you can write off certain expenses by being a contractor).

Here is where the investment part comes in. The money that you do make, you can put into investing; money that people who are taxed do not have at their disposal. However, do keep in mind that if you lose money on those investments that invested cash is still owed to the IRS.

4. Maximize Your Deductions

Again, since you have to pay your own taxes, you definitely want to make sure that you don’t end up paying the IRS any more than you absolutely have to. So, make sure that you read up on all of the kinds of deductions that are applicable to you such as deducting your home office, some of your utilities, work-related travel and office supplies. If the thought of going through all of your receipts feels a bit overwhelming, companies like ShoeBoxed.com will actually organize all of your receipts for you for a pretty fair price.

5. Become a Home Owner

Real estate is definitely still a pretty unstable market, but owning a home (owning property, period) is unquestionably a wise investment especially when it comes to preparing for retirement. So, if you don’t own a home yet, make sure to start saving money so that you can within the next few years. And when you do, don’t forget to get some home insurance too. All the way around, being a home owner is a good thing to be whether you’re a freelancer or not. Both for now and the years that are to come.

About the Author

Evan Fischer is a contributing writer for Tim Sykes, the premier penny stock investment adviser. You can read a Timothy Sykes review here.

When you first hear the word “investment,” your mind probably goes straight to Wall Street and the 20-year-old dudes in overpriced suits shouting buy and sell orders over a throng of equally loud and well-dressed 20-somethings.

But there is a lot more to the world of investing than simply playing the stock market. For example, anyone who is a homeowner has already made an investment in an asset that is practically guaranteed to pay off (and hopefully show a significant return) down the road.

You can also invest in bonds, mutual funds, and CDs as part of a balanced portfolio. Some people even invest directly in retail stores, farms, or other types of business (their own or others). And if you are looking to invest safely in your future, contributing to a 401K, Roth IRA, or some other type of investment fund is a good idea.

Okay, by now you might be getting a little overwhelmed by the sheer number of possibilities. But, what if you’re on a budget and you simply don’t have a lot of money to play with? In this case, there are a few guidelines you will probably want to follow to ensure that your money is invested both safely and wisely.

Things to Consider When Investing on a Tight Budget

The first rule, and this is of the hard and fast variety, is never invest more than you can afford to lose. Consider that to varying degrees, investments are like gambling. There’s a chance you’ll win, and you can definitely do your homework and hedge your bets, but if you’re putting up your mortgage payment or the kids’ college funds (in other words, money that you really can’t afford to lose) you need to be aware that there is a chance you won’t get it back.

The next thing you should consider is the speed and size of return you want to see. High-risk stocks can come with swift rewards, but you could lose your shirt just as easily. Money put into CDs, on the other hand, will show only a minor return (within a selected time, between 6 months and 5 years), but it’s fairly safe.

However, if you’re willing to wait until the age of retirement, your best option for investing on a tight budget is to contribute to a retirement account. If your employer offers a 401K, this is a good option (especially if they have a matching program). If not, you should consider starting a Roth IRA. There are two good reasons to go this route rather than, say, stocks and bonds, united rare coins gold, or commodities.

For one thing, any money you contribute to such an account is considered pre-taxable income. So if you put money into a Roth IRA, you can deduct it on your income tax. The other benefit is that retirement accounts use compound interest, which means you have the potential to earn a lot more over time than other types of accounts. Plus, retirement accounts are generally invested in a variety of low-risk stocks, bonds, and mutual funds, and there tends to be strict oversight.

So if you’ve only got a small amount of money to invest, put it into your future. It’s the best way to make your money work for you.

Every month I do a roundup of the previous month’s posts, in case you may have missed any. I encourage you to check out and comment on any you may have skipped over or didn’t get a chance to read yet.

As always, I appreciate the continued support from all of you.

Okay, let’s get to last month’s blog posts…

February 2012 Blog Posts on ReplaceYourSalary.com

Work From Home Compatibility Match?

Humans vs. Robots: Who Reads Your Writing?

RSS Feed Now Showing ‘Summary’ Only

5 Great Ways to Get New Clients in 2012

10 Steps to Choosing a Perfect Niche for Your Blog

Blog Blueprint for Beginners – Free eBook by Travis Sago

Got a Hobby on the Side? Turn It Into a Business!

5 Ideas on Marketing to Existing Customers

Covered Call Option – 7 Good Investment Strategies You Can Learn In Front Of Your Computer

That’s all for now. Stay tuned for more articles coming soon.

Got anything to say? Share your thoughts by leaving a comment below…

While investment strategies require a great deal of care and planning, they can be a great way to supplement or replace your current income, if so desired. Investing is also an alternative way to work from home. With that said, I strongly encourage you to do your due diligence and invest wisely. ~ Alan

Finding some truly great covered call option investment strategies is not as simple as many people might think. The reason for this is that although the internet abounds with numerous opinions and advices with regard to investing money in covered call options, they are so diverse that choosing the best one is almost impossible. However, what you can do is to get the top investment strategies and decide on the best possible alternative for you. In order to help you with this, the current article presents the top 7 investment strategies, which can teach you the most important things that you must know about investing in covered call options.

The Top 7 Covered Call Investment Strategies for Falling Markets

Unfortunately, the specialists are talking these days about falling markets and the disasters they engage. Everywhere we look, we can see the international indices increasing a little bit only to fall more than before. But, even in this financial environment, there are specific covered call strategies, which can help investors to get some hefty profits. Most strategies can be implemented with the help of three distinct methods, which include LEAPS, index futures, and ETFs bought on margin.

Although these methods relate to the same financial objective – which in this case is generating profit – their mechanics are completely different. This thing actually means that they suit various situations and requirements based on the investors’ targets. However, as the main scope of this article is to reveal the most important covered call option strategies that you can apply in order to register some great profits even in falling markets, the methods that you may use for implementing these strategies are not that important. The rest of this article concentrates on explaining the top 7 strategies for covered call options.

1. LEAPS Covered Call Strategy

The LEAPS covered calls are those options that include a minimum period of nine months until the expiration date. In most cases, these calls can be purchased based on underlying security. The short calls that belong to LEAPS processes are usually sold monthly and the operation repeats until the covered call expires at the end of the nine-moth period. The cost of these options is determined by a few factors, including long-term volatility, expiration date, interest rate, and intrinsic value.

2. Index Future Strategy

Another strategy is to get covered call options with index futures. The index futures actually refer to futures contracts, which give investors the chance to get security in order to set prices in the future. In most cases, the prices incorporate the cost of invested capital – that is equal to the call rate – from which the broker extracts the dividend yield. Thus, as you can easily comprehend, the futures calls are actually securities, which give institutional investors the chance to become retail investors and earn more profit than if they would use other strategies.

3. Covered Call Options in Margin Account Strategy

Margin account allows investors to buy different securities with the help of borrowed money. If an investor possesses options and margins in the same margin account, the person in cause can use a leverage strategy. This thing can be done by purchasing an ETF or stock on margin and selling monthly covered call options. It is essential to know that this strategy highlights some potential pitfalls, which underline situations when the interest rates vary widely and call options decline in value. Therefore, before opting for this strategy, an investor must ponder any related risks carefully.

4. Leverage Strategy

By choosing leverage investing strategy, an investor can complete various investment tasks with borrowed money. Usually, an investor, who chooses this investment plan, must use covered calls with low volatility, which ensures increased returns.

5. Covered Call Return Strategy

In most cases, this strategy pairs a short call option with a long position. This combination is able to deliver high returns of investments due to low volatility. The reason for this is that, even in the falling market, the covered call premium usually reduces the effect of negative returns, making them positive.

6. Complete Option Report Strategy

By simply using a Complete Option Report, you can make money in different markets. This thing can be done by trading stocks based on the markets’ weaknesses and strengths. If you regularly check the Complete Option Report, you can choose the most profitable covered call option trades.

7. “Naked” Call Strategy

This strategy teaches you to use an interesting twist. You can write a call option without having 100% stock shares. This thing indirectly means that you write a “naked,” also known as uncovered call. It is important to know that this strategy may be implemented with the help of a contingent buy order, which helps you to purchase a stock at the call’s strike price.

If you succeed to apply these strategies, you can be sure of the fact that you will record some hefty profits even in falling markets. If you opt for one or more strategies, you can increase your profits with about 12% more than you usually generate.

The following is a guest post by Sachin. If you would like to write for this blog, please check out the guidelines here.

We all know the saying ‘money doesn’t grow on trees,’ but it does grow if we plant it in the right places and nurture it wisely. You will never experience a ‘Jack and the Beanstalk’ type miracle by making an investment, but you could find yourself in a far greater financial position through wise investment and the sensible use of your cash.

This article will discuss two places where you can watch your money grow significantly as you nurture it into maturity.

1. Property Investment

The housing market has created wealth for more people than any other form of investment has. With a small investment and some shrewd purchasing, you will be able to gain access to a property with far greater value than your initial fund (even during the current economic crisis). A wise investment needs to involve heavy research and the use of property valuation software to ensure you are getting the best possible deal. By doing so, you will literally be able to watch your investment grow as your debt reduces and then your profit increases.

Owning property will put you in an advantageous position. Whilst it will require your expenditure for a long period of time, it is more practical than renting because the money is effectively remaining in your possession rather than lining a landlord’s pocket. After time, you will be in possession of an un-mortgaged home and thus an asset which will open many doors for you. By developing, you could increase its value and sell it, or you could invest in another property and earn an alternative income from renting. Consider your options using real estate development software and by looking at investment properties near you.

One thing that is for certain is that it is far better to get onto the property ladder when you are as young as possible, so that you are able to grow your investment over a long period of time and harvest the benefits of doing so.

2. Stock Market Investment

Investing in the stock market is by far the best way to accrue wealth quickly. There are several benefits to investing in the stock market over the real estate market, but there are also disadvantages.

Pros

• Stock markets are liquid, so it is easy to remove your money at any point when you need it. You are not tied down to investments, and it is even possible to invest and withdraw funds from any particular stock within a single day.
• Stock markets see fast returns of investment because there are huge fluctuations in the value of shares depending on global, national and in-house situations.
• You can create a diverse range of incomes easily by investing in multiple companies.
• Someone else manages your investment. You will not have to personally manage the running of the company, so your part is as simple as investing in shares once and removing them as you will.

Cons

• Just as markets can fluctuate upwards in value, they can also fall. This creates a high level of risk for the investor as they could potentially lose everything.
• Discerning the best investment will take a lot of effort in order to make a wise choice. Everyone grows up with exposure to houses and real estate but not many people grow up with an exposure to the stock market.