financial growth

Sep

2022

4 Ways to Deal with Rising Inflation

Reading Time: 3 minutes

If you feel that the prices of goods you are able to buy is increasing; you are not alone. This is the effect of inflation. While most of us don’t really understand how it works; we feel it whenever we notice that our monthly income doesn’t seem to cover all the expenses we had as it did before. That is why you have to care about inflation so you can do something to reduce its effect on your finances. Prices are always rising but your income is not following that trend. So how do we deal with inflation? Here are 4 ways you can deal with rising inflation and maybe even beat it.

1. Reduce Your Expenses

Of course, the first thing you can do to beat or keep up with the rising cost of goods and services is to try to find ways to reduce your expenses. Inflation is a silent budget killer. It is a money leak that you have no control over. Thus, it is important to take the time to go over your budget and review your expenses as well as your financial strategy. See which of your regular expenses you can reduce spending on, replace with a less pricey option, or eliminate entirely. This way, you can still afford to pay for your regular expenses without having to dip into your emergency fund or savings account.

2. Increase Your Income

Increasing your source of income is always a good idea with or without inflation. Of course, the fastest way is to get a promotion in your current job. You can also create a business out of your hobbies or accept projects related to your job or expertise as a side hustle. Collaborating with other people on projects can also help. If you have non-performing assets just lying around; these are also good sources of minimal income. Try to declutter your space or declutter your entire home. See which items you have in your closet and cabinets that you’re not using and you can sell for some extra cash.

3. Keep on Saving

A good savings fund will not only give you peace of mind that you can survive inflation; it will also be a good buffer if you do need to spend more on important things. You might have to pause on some of your big-money savings goals until your income is more stable again to support your lifestyle. But you should not stop saving for your future while you’re struggling with inflation. You might need to pause for a while to review and renew your financial strategies and to adjust your budget. But don’t quit on saving.

4. Diversify Investments

Just as you continue saving; you should not stop investing as well. Learn more about other investment instruments that can help you diversify your portfolio to help you beat inflation. That means opening up new investments in stocks or industries that might be less risky to ensure long-term investment growth. This also means being open to investing in instruments that are more risky for short-term gains that you can use to fund your long-term investments. Depending on your money personality; choose what investments you are more comfortable with. Learn as much as you can about them so you can reduce your losses and maximize your earnings.

Inflation is always going to be around so the best way to prepare for it is to keep increasing your income and learning and adjusting your financial strategies. This way you can maintain the lifestyle that you want to enjoy and be able to keep up with rising prices without too much of a dent to your budget.

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Jul

2022

4 More Tips to Improve Your Financial Wellness

Reading Time: 2 minutes

We have provided common sense money advice before. Here are 4 more tips to help you improve your financial wellness. These additional tips should be a big boost to transforming your financial wellness for the better.

1. Pay in Cash

To help you stick to your budget; you need to remove the temptation to swipe your credit card. So it is better to carry cash with you. This way, you can allocate different amounts to different expenses instead of taking out your credit card. You can use envelopes or your wallet dividers to visually distribute your money. With this method, you also get to see how much money you have left. This means that you will be able to say “No” to some expenses or money leaks that is not allocated for in your current budget. Paying for your purchases in cash is one way to help you get closer to your goal of being debt-free.

2. Build Savings

Before you start investing; make sure that you already have your emergency savings in place. Your savings account should be equal to 6 months of your income. This allows you to be able to pay for your basic necessities and regular expenses in case you lose your job. It will also ensure that you have money to support you in case of emergency situations such as needing to repair your house due to natural calamities or needing to buy a new laptop for work, etc. This is different from an allocated savings account for planned expenses. For example, if you want a new sofa; then you can save up for that amount aside from your emergency savings.

3. Financial Health Check

As you are tracking your expenses and trying to stick to your budget; it is important to do a regular health check of your finances. This allows you to see where you can improve things and create a better budget that suits your current needs and goals. If you are paying-off credit card debt, then talk to personnel from your bank to review where you are in your goal. If you are already investing, then review your losses and gains and any potential areas for further growth. More importantly, check the status of your savings; have you maintained it and/or is it growing as your income has grown? What other things can you do to generate more income?

4. Maximize Employee Benefits

One more thing that you can do to improve your financial wellness is to check if your employer provides financial wellness programs. This could be in the form of monthly contributions (thru government agencies) or other programs offered by the company itself with other 3rd party partners. For example, your company might have partnered with a bank to provide employees with special rates for maintaining a time deposit or savings account. Ask your colleagues or inquire from designated personnel in your office if these options are available.

If you are just starting out on your financial wellness journey; make sure that you do your financial wellness assessment first. This way, you know which areas you can improve on and which areas you are good at currently. Don’t forget to keep improving your financial literacy as well. Remember that there is no one budget or investment strategy that fits everyone and works all the time. You always need to be aware about where your money goes so you can adjust your financial strategies accordingly.

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Aug

2021

How to Spot Investment Scams

Reading Time: 3 minutes

The only way to grow your money is through investment. Leaving your money in a regular savings account is never enough because of the low interest rate. More often, inflation will take the value of your hard earned savings. But where do you invest your money? There are many types of investments available out there depending on your age, goal, time horizon and risk appetite. While there are legitimate ones, there are also some which are fraudulent in nature. As an investor, it is important that you know how to spot investment scams.

1. Low or No Risk, High Return

If someone offers you an investment that is low risk yet offers high returns, you are most probably getting scammed. Investing is all about risk. Whether you are buying bonds, funds, stocks, stock option, real estate, antique or any other kind of investment; there is always risk involved. The same is true when you are opening a business.

The general rule of investment is that the higher the risk, the higher the potential return. If the investment being offered to you defies this rule, then it is a scam. These kinds of investments are what you call phantom riches. It simply means that they are dangling the prospect of wealth, knowing full wealth that it is something that you want but can’t have.

Always remember, “If it is too good to be true, it is too good to be true.”

2. High Pressure Sales Tactics

Avoid being rushed. Example high pressure sales tactics include:

Limited Time Offers
Available Only to First Few investors
Invest Today and Get Credits

Although high pressure sales tactics are considered legitimate marketing strategies, scammers used this primarily as their persuasion technique. Their goal is to have you commit to the investment right away so that you will have no time to do your research or change your mind. Never entertain those that give you pressures or force you to make a quick decision.

If you are going to invest your hard earned money, you need to have ample time to think about it and do your research. It is one of the investing rules from The Richest Man in Babylon. Know what you are getting yourself into. Yes, do your research even if the one offering you is a close friend or family.

3. Unsolicited Approaches

If they just contacted you out of the blue; chances are it is a scam. How did you learn about the investment? If you learned about it through a phone call, email or text message from someone you don’t know; Some of them will even ring your doorbell. This is what you call cold calling. Their intention is to sell something or make you invest in something. Although it is not illegal, it is best to be wary of them.

If ever you receive an offer, get the following details:

Full name of the person
Company name and address
Telephone number preferably landline not a cellular number

Do not deal with them if they seem hesitant to give their information. Once you get all these details, hang up. Tell them that you think about it and that you will be the one to call them back. Then do your research. Make sure that the company is duly-registered. It is best also to check if the type of investment is regulated by the government.

4. Requirement of Getting New Participants

Multilevel marketing is a sales strategy wherein distributors are encouraged to recruit new distributors. Many big companies use this as their marketing strategy. Although it is legitimate, it is also very controversial. Many people have been scammed with pyramid schemes. How to spot the legitimate ones from not? Simple, the legitimate ones focus on product sales while the scammers focus on recruitment of new members. If the earnings are dependent on how many people you can recruit, then stay away from it. It is a pyramid scam.

Do not invest in something that you are not familiar with. Do your research first. Take your time. And soon, you will find a legitimate investment vehicle that fits your financial goals.

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Jul

2021

Investing Rules from The Richest Man in Babylon

Reading Time: 4 minutes

All your life you have been working for money. But did you know that it can be the other way around? Yes, you can make money work for you instead. In order to do this, you need to learn to invest your money. However, investing your money is not as easy as it sounds. There are certain rules that govern investing. In ancient times, the residents of the city of Babylon understood this. They appreciated the value of money and applied some wealth rules. Thus, the city of Babylon was the wealthiest city in the world during that time. So, how to build personal wealth? What are the investing rules from The Richest Man in Babylon?

Best-selling author George Clason narrated the teachings of Arkad, the richest man in ancient Babylon in his book The Richest Man in Babylon. The story is filled with ancient yet timeless wisdom and knowledge. The book contains practical lessons and advice that can still be applicable even in this modern world.

Here are the the investing rules from the Richest Man in Babylon coined as the Five Laws of Gold:

1. Save 10% of Income.

Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

This is the first step in the road towards financial freedom. That is to save 10% of income. This money will serve as the seed of your money tree. Consistency is the key. By consistently setting aside 10% of your income, you are slowly building your wealth.

Those who do not save will forever find themselves in the rat race, living from paycheck to paycheck. The key is to spend less than you earn. Many people save what is left after expenses. That should not be the case. Rather, as soon as you receive your income, you should automatically set aside 10% for savings first.

2. Invest Your Money

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

The second step is to invest your money. Putting your money under your bed or depositing it on a regular savings account is never a good idea because of inflation. Your money will soon lose its value over time. It is only through investing will you be able to take advantage of the power of compound interest and make money for you instead of you working for money.

There are many investment vehicles available out there. Choose one that will best suit your interest and risk tolerance. You can choose from bonds, funds, stocks, stock options, cryptocurrencies. Fixed properties such as real estate or movable properties such as jewelries, antique and vintage items, artworks and luxury watches are also good options. You can even start your own business.

3. Seek Expert Advice / Have a Mentor

Gold Clingeth to the protection of the cautious owner who invests it under the advise of men wise in its handling.

Who do you ask for advice? This is one area where most people fail, especially when it comes to money. People have the tendency to ask for money advice from people they are familiar and comfortable with. However, that should not be the case. Instead of asking someone that you are comfortable with, learn to seek the advice of financial experts.

Have a mentor. A mentor is someone who has already achieved your goals. For example, you want to learn how to play tennis. Will you get a coach who does not know how to play the sports? Of course not! Another example is if you are failing math in class, will you hire an English tutor to teach you math? It is the same way in life, seek the advice of experts. Be choosy when finding a mentor. Do not ask a friend who is broke for money advice.

4. Only Invest on Something That You Are Familiar With

Gold slippery away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

Have you heard of stories of people losing all their investments? Yes, it happens. It is possible to lose all your hard-earned money if you are going to invest on something that you are not familiar with.

This fourth rule of the laws of gold takes investing to the next level. It implies that it is not enough to simply ask advice from other people. It also entails the investors to know, learn and understand what they are getting into. Don’t just blindly trust others. Do your homework too. Study the market. Do research. Enroll in classes. In short, learn, learn, learn.

5. Do Due Diligence

Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Due diligence means investigating, reviewing and checking the facts. Many people lost a lot of money because they did not bother doing a background check on the seller and the investment. For example, in real estate investing, research first before buying a property. Verify the deed on the land registration bureau. Bring an engineer or architect to inspect the property for any unseen damage. Check the surrounding community if it is a safe environment. Ensure that it is not a flood zone. Talk to the neighbors for a brief history or stories of the house. This is what due diligence is all about.

And always remember before you invest in anything, if something is too good to be true, chances are it is. Don’t let others fool you.

Apply the investing rules from the Richest Man in Babylon and soon you will be on your way to building your personal wealth.

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May

2021

Benefits of The Tithe and Giving Back

Reading Time: 3 minutes

Do you know the benefits of the tithe and giving back? The concept of sharing our blessings is a teaching that we often hear as children. Sadly, we do not practice this very much. As we grow older, we don’t often encounter such generosity from other people either. This is mostly due to financial reasons but also due to having a poverty mindset.

In fact, generosity in the form of a “tithe” or a giving fund should be a habit. The tithe should be part of our monthly budget. Here are some reasons why we should develop and maintain the practice of tithing.

An Attitude of Gratitude

Giving is an opportunity for us to share our blessings. It is an act of giving where we are also able to acknowledge and appreciate our own blessings. Whenever we give off ourselves to others (whether thru our time, money or in kind); we also feel a certain fulfillment. We feel an assurance that the world is not so bleak and gloomy after all.

Giving to another also carries with it a wish, a hope. You can even say that giving back is form of prayer. It is a prayer that things will become better for that person or organization that we intended to help out. In these moments, we also become grateful. We are able to be thankful that our own situation is not worse off. We feel gratitude that we are still capable of giving back. This is one of the benefits of the tithe and giving back.

Paying It Forward

The practice of tithing is a way to give back. We do it in exchange for all the kindness and generosity that other people have shown us in the past. It can also be a form of paying things forward. An advance to give thanks for the generosity and kindness of other people that we will encounter in the future. As you give; it gives the recipient the opportunity to grow. They can develop themselves into someone who can be capable of giving back the same way you did for them.

When you practice tithing, the amount you give helps the recipient to expand their options in their own self-development. When they succeed; they will also become capable of giving back to others the same way that you helped them along the way.

Turning Feelings Into Reality

When you are truly sharing your blessings, it should not be with a heavy heart. Tithing is as simple as giving away a certain amount to a charity, a person in need, or even a tip to a kind waiter. You should do so with a light heart and even a smile. If you can do that, then you are truly helping without expecting anything in return. That is how you act when you feel truly “blessed”.

You know that you attract more of what you focus on. If you feel generous, grateful and blessed; you will continue to attract more opportunities that will make you feel this way. Wouldn’t you want to feel this way most of the time, even all of the time? This will definitely help you get out of a poverty mindset.

These are some of the reasons of why you should have a tithe fund. These are the benefits the tithe and giving back. This is the kind of mindset and attitude you should have when giving. The next question is how much to give. In your monthly budget, it is recommended that you set aside 10% of your income as tithe. You will find this recommendation in the Bible as well.

Your tithe fund is where you get money to tip waiters, the stylist and her assistant at your favorite hair salon, the kind taxi driver, etc. This is also where you can take out cash for gifts or when a relative needs to borrow some cash.

Remember that a tithe is different from an offering. You can consider an offering as something extra aside from the tithe.

Updated. First published on Pinoy Smart Living on 2019.10.22.
Feature Image: Original Photo by Katt Yukawa on Unsplash.

Mar

2021

How To Reboot Your Finances

Reading Time: 3 minutes

What stage are you in in your financial life? If you are not happy with where you are right now, the good news is that you can actually reboot your finances once and for all. True, your financial woes will not disappear overnight but it will give you a chance to change your financial future. In the computer world, a reboot means the act of instantly shutting down your computer and restarting right away. The same is true with your finances. You can actually shut it down and restart right away. Don’t wait until next month, next year or when things start going well again. Do it as soon as the clock strikes zero o’clock . So, how to reboot your finances?

1.Abstain from Spending

The first thing to do is halt all spending at once. Unless it is a necessity, stop all unnecessary spending for now. A cup of coffee, a pack of cigarettes or a can of soda may be little expenses but it is actually these kinds of small expenses that is harming your budget. While you are at it, refrain also from using your credit card. Until you have fully understood how credit cards work, it is best to put your card use on hiatus.

Beware of little expenses, a small leak will sink a great ship.
– Benjamin Franklin

2. Track your Spending

The next thing to do is to track your expenses. Why do you need to track your expenses? The main reason why you should write down all your spending is for you to be able to identify where your money is going. Record everything that is going out of your pocket even small ones like a piece of candy, tips or parking fees. Don’t miss anything. Only through knowing will you be able to control your finances and eliminate bad spending habits.

3. Set Financial Goals

Now that you know where you are right now in your finances, the next thing to do is to define where you want to go from here. Thus, it is important to set your financial goals . Identifying your short-term, mid-term and long-term goals are crucial in your journey towards financial freedom. Your goals will help you make better financial decisions in the present. For example, you will not do an impulse buy on a new handbag that you see on the display window of a mall when you have an upcoming spring trip to Japan or New York for example.

4. Follow a Budget Plan

A budget is a financial plan on how you plan to spend your money. Since it allows you to plan your expenditures, following a budget will help you define your limits as far as spending is concerned. A budget will help you know if you can afford something or not. T. Harv Eker, best-selling author of Secrets of the Millionaire Mind introduced the money jar budgeting system. It is a simple money management system that will not only solve your finances but you can actually lead you to wealth accumulation.

A budget is telling your money where to go instead of wondering where it went.
– Dave Ramsey

5. Pay-off Bad Debts

Once you have your budget plan in place, you must first focus on paying off your bad debts. You see, not all debts are created equal. There is such a thing as good debts and bad debts. Good debts are money that you owe that can help you build your wealth over time. A housing loan is considered good debt. Money that you loan to use as capital for your business is also considered good debt. Bad debts on the other hand, drags you down. Examples of bad debts are consumer and credit card debts. Thus, it is important to prioritize paying off bad debts first.

6. Start Investing

Saving money alone is never enough. In order to grow your wealth, you need to learn to invest. As opposed to working for money, investing allows money to work for you. There are so many investment vehicles to choose from depending on your risk tolerance. You can invest in bonds, funds, stocks or stock options. You can also invest in real estate, jewelries, antiques, art pieces, even luxury watches and bags.

7. Raise Your Financial IQ

And last but not the least is you should make an effort to raise your financial intelligence. Financial literacy equips you with the knowledge and skills that you need to be able to manage money effectively. There are many things that you wish you learned in school. Unfortunately, most schools do not teach money management. Thus, it is up to you to fill the gap.

What are you waiting for? Reboot your finances now. Good luck!

Feature Image by Amit Karkare from Pixabay

Feb

2021

Change Your Poverty Mindset To Wealth Mindset

Reading Time: 4 minutes

Do you want to become wealthy? The key to wealth is to master the wealth mindset. The difference between the rich and poor has nothing to do with the amount of money that they have in the bank; rather, it is all about their mindset. Your mindset is your set of beliefs and attitudes about certain areas in your life. If money is your concern, then chances are you have symptoms of a poverty mindset. You need to be able to change your poverty mindset to wealth mindset.

Your first step towards financial prosperity is to break out from your poverty mindset. Having a poverty mindset is ruining your chances of success. It is not yet too late to change your life for the better. Once you have the correct mindset, you can slowly rise from whatever position you are in right now in your life.

Here are ways on how to change your poverty mindset to wealth mindset.

1. Have a Grateful Heart

Did you know that about 150,000 people die each day around the world? That number is even greater now that we are in the middle of the pandemic. The fact that you woke up this morning is already one big reason to be grateful for. I’m sure if you take a closer look in your life, you will find so many simple things to be grateful for,

Unfortunately, most people take their blessings for granted. Everyday life is full or worries, challenges and busyness. In the midst of all that pressure, it is very easy to forget to be grateful.

I remember a story told by preacher and best-selling author Bo Sanchez in one his weekly prayer gathering called The Feast.

A woman approached him complaining how everything is wrong with her life. Here is how Bo Sanchez replied.

Bo asked, “Do you have cancer?”. The woman replied saying “no, I don’t have cancer”.

Bo then asked, “Is your husband having an affair?”. The woman laughed saying “no, my husband is ugly. The only two persons in this world who likes him is her mother and me.”

Bo then asked, “Is your child a drug addict?”. By this time the woman was laughing, “no, Bo. My child is only three years old.”

The woman then proceeded to explain that she is having problems with her boss at work.

Then Bo answered by saying that “It is not true then that everything is wrong with your life. Only a small fraction of your life is not doing well.”

This story is a classic example of how a poverty mindset works. People who have poverty mindset focuses on the negative aspect of their life. In order to be happy and to grow, you need to focus on the positiv e. Be grateful to all the blessings in your life. Always start your day by thanking God for all His blessings. Be thankful also to the people around you have always been there for you.

2. Spend Time with People who have a Growth or Millionaire Mindset

Did you know that you are the average of the five people you spend the most time with? Your mindset is a product of your environment. If you have a poverty mindset, chances are the people around you have the same mindset. In order to grow, you need to get out of your circle. It does not mean ditching your old friends, it only means that you should spend more time with awesome positive people. If you spend too much time with negative people doing meaningless things, you will never get anywhere.

He who walks with wise men will be wise, but the companion of fools will be destroyed.
– Proverbs 13:20

3. Set Goals

When was the last time you set a goal for yourself? Setting goals will make you look at things in the long term rather than the short term. A millionaire mindset looks at things in the long term while a poverty mindset looks at things in the short term.

What you should do is to imagine yourself in the future living the life that you want. What will your spring day be like? Discover where you want to be in one, five, ten or even twenty years from now. Remember that success always starts with a vision. Then, write them all down in paper. Read them everyday in the morning to remind yourself of what you want to achieve or better yet, have a vision board. A vision board will inspire you and keep you motivated to achieve your dreams.

Setting goals is the first step to turning the invisible to the visible.
– Tony Robbins

4. Refrain from Speaking the Poverty Language

How many times have you said the following statements?

“I cannot afford it.”
“That is only for the rich, not for us.”
“We don’t have money.”
“I can’t do that.”

Watch your thoughts; they become words. Watch your words; they become actions. Watch your actions; they become habits.Watch your habits; they become character. Watch your character; it becomes your destiny.
– Lao Tzu

Be conscious of the words that come out of your mouth because your words are simply a manifestation of your thoughts or your subconscious mind. Speaking the poverty language indicates that you have a negative state of mind regarding your situation. If you want to get out of your situation, you need to get rid of the negative, only then can you change your future.

5. Educate Yourself

For most people, education ends the moment they graduate from college. If you are one of these people, this is probably one the biggest mistake that you can do in your life. Continuous learning is an essential strategy for your success. Education does not not necessarily mean that you need to go back to school to get your Masters or PHD. There are many ways to learn. You can attend training or seminars, read books or simply have a mentor.

For starters, do you have idols? Who among the successful people out there do you wish to become? Then, study those people. Study their lives, their values, their life strategies. Find out what they did in order to get to where they are now. Their stories will definitely inspire you.

By educating yourself, you are improving your skills. You need better skills to be more qualified and successful in whatever field you are in right now. For example, if financial freedom is your goal, have you studied about money and how it works? If not, how do you expect to gain financial freedom if you don’t spend time learning about money?

Continuous learning is the minimum requirement for success in any field.
– Brian Tracy

Follow the steps above and you will just wake up one day with a different mindset. However, this is not a one day to do list, it is something that you have to do on a daily basis.

Good luck!

First Published in Pinoy Smart Living on 09.04.2018

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Jan

2021

Why I Stopped Investing in Stocks

Reading Time: 3 minutes

When I first got into the stock market I was always looking for the blue chip stock or the undervalued stock with the dream of thinking one day it will make me rich. After 2 years of getting 10%-15% returns; I realized it would take me many years to achieve my dreams. When I found Stock Options and a system that works with it, that’s when all my dreams of being financially free finally came true. In fact, if you asked me to buy shares on the stock market, it would feel like watching grass grow. That’s why I stopped investing in stocks.

Here’s 5 Reasons Why I Never Touch Stocks Anymore:

1. The Multiplier Effect

Options are a leveraged tool…when a stock goes up 5% it might make you happy but NOT wealthy unless you have a lot of money invested in that stock. For new investors with only a few thousand dollars, this is not going to make much of a positive impact on their financial situation.

But with Stock Options, a mere 5% increase in the share price can result in a 30%-50% increase in your investment. And if you can do that once or twice a month, the compounding effect over a year can be life-changing.

2. I Can Bet On Any Horse

Imagine going to the races and trying to pick the winning horse. Changes of you betting on the winning horse is very low. But what if you can bet on any horse and still, win?

Stock options investing is similar. if you know how to, you can bet on any ‘horse’ and make money. Whether the market goes up, down or sideways; you can still make money.

Whereas when buying shares, you generally can only make money if the stock goes one way…UP.

3. Protecting My Downside

The #1 greatest fear for every stock investor is that if the market has a big correction or crashes. I, on the other hand, have no such worries.

If the market crashes, my investments are well protected. Many times, I’ve made the most money when there’s a sudden huge market dip. That’s the beauty of using stock options rather than buying the actual stock.

4. Time Can be My Friend

For stock investors, if a stock goes sideways for a long period of time; they end up making no money or lose out on other investment opportunities. But for me, sideway stocks can be great. Every month I can make a good sum of money as the stock goes sideways.

That’s another benefit of using Options.

5. A Great Tool to Compliment Your Investment in Shares

Ok, so maybe you want to stick to investing in regular shares.

Options are actually a fantastic tool to compliment your investments in shares and help you get better returns.

Here’s just a few examples:

You can buy shares at a ‘discount’ to the current market price, usually at a 2% to 5% discount.
You can get ‘rent’ from your shares every single month of around 2%-5% of the value of your shares.
Protect your stock’s value. Imagine that for a small price, you can ‘lock-in’ the profits of your stock and not worry about waking up to a market crash…and still profit if the stock goes up further

But a word of caution…Options, like any leveraged tool, is like a double-edged sword. It can help you cut things but you can also cut yourself.

While Investing in Options can help you get incredible gains. There are many dangers:

Many people end up losing all their investment capital
Many people take risks that professionals would never make
You need a good system to invest otherwise you will be constantly stressed.
Time can be your enemy…the value of your Option can erode very quickly and be worthless.

That’s why you need proper education and a system that works…

PS. Warning! Once you discover the power of Options investing, you may not ever want to invest in anything else ever again.

Interested in knowing more about stock options trading? Register for a free webinar now.

Mirriam MacWilliams is a recipient of the “World’s Leading Trading Couch and Trainer” by Brand Laureate. She is the former National Director of Education of the largest investment club in the US.

A corporate high-flyer at the peak of her career, Miriam gave up a jet-setting job as the former Vice-President of Investor Relations of a large bottling company outside of the US, and a six-figure annual salary for a little known and predominantly male-dominated world of stock options trading.

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Aug

2020

Improve Your Financial Wellness

Reading Time: 2 minutes

When we talk about health, normally what comes into mind is physical health. Although physical health is very important, it is but only one aspect of your total well-being. There are other dimensions of wellness that are equally important, one of which is your financial wellness. Numerous studies revealed that the main source of stress for many people around the world is money, or the lack thereof. In fact, the lack of money can lead to negative effects on the other areas of your life. For example, not being able to afford nutritious food or not being able to properly sleep at night. It also brings about anxiety on personal relationships especially when you can no longer provide for the family’s basic needs. Thus, to improve your financial wellness should always be part of your goals.

What is Financial Wellness?

Financial wellness refers to the state of your financial health and your relationship with money. Are you able to handle your money well? Do you have enough to meet your needs? Not having enough of it will have an adverse effect on your health.

Why is Financial Wellness Important?

Financial wellness is important not just for the individual per se but the community as well. Personally, to be financially well means less stress. A person on this state does not have to worry about meeting financial obligations. in addition, there is a wide array of options for the individual to enjoy life.

Financial wellness is also important for families. Children from these families have access not only to optimal nutrition but to good environment and education as well. Strong families are needed to build strong communities.

In the workplace, a happy, satisfied individual is a more productive employee. A survey conducted by the American Psychological Association indicated that money problem is the number one reason why employees are distracted from work. Employees under financial stress are generally unmotivated and has low productivity rate.

How to Achieve Financial Wellness?

To achieve financial wellness, you must first understand what stage are you in in your financial life right now. It also helps to compute your current net worth. Knowing your starting point will make it easier for you to make financial goals. Once you know what your goals are, you can now start your journey towards the improvement of your financial wellness. Just like in any aspect in life, do remember that success does not happen overnight. It takes time and continuous effort to reach your goals.

Success is the sum of all efforts – repeated day in and day out.
-Robert Collier

Launch Challenge

There is a single life rule as far as your financial life is concern that you should follow. It is so simple yet many people take it for granted. The rule is to spend less than you earn.

Follow this golden rule and soon you will be able to improve your overall financial wellness. This rule will help you eliminate debts. It will also help you start building your savings account. In the end, your stress level will definitely go down.

To be able to successfully do this, you need to have a clear idea on how much you are earning vis-a-vis how much you are spending. Thus, it is advisable that you begin to track your expenses on a daily basis. Remember that you can only make good financial decisions if you know where your money is going. It helps also to increase your financial literacy.

Good luck!

Feature Image by luxstorm from Pixabay Images

Jun

2020

Basics of Financial Literacy: What You Need to Know

Reading Time: 2 minutes

The world is now officially on a recession. Businesses went bankrupt and millions of people have lost their jobs. Many people found themselves in deep financial troubles. Although It is impossible to undo the events of the past, it is still possible to improve your financial future through financial literacy. What you need to know for now is the basics of financial literacy.

Whether we like it or not, money is a part of our daily lives. A basic understanding on how money works can help you make wise financial decisions in the future. It will help save you financially when the next big crisis comes. Thus, knowing the basics of financial literacy is a must.

Start your financial literacy journey by reading some life-changing books on wealth and success. It will also help if you familiarize yourself with some basic terms on personal finance. Knowing some of the basic components on financial literacy is also is very important in your financial life.

Basics of Financial Literacy

1. Budgeting

Budgeting is a spending plan. It is allocating a certain amount of money for the things that you need and want. Though budgeting, you will be able to figure out if you have enough money to buy things that you want. It will also allow you to create a plan for your future spending. It is basically weighing in your income vis-a-vis your expenses and trying to create a balance between the two.

A good budgeting technique that you can follow is the money jar budgeting system. This approach allows you to be be able to meet both your needs and wants and at the same time, grow your wealth in the process.

2. Saving

Every financial guru stresses the importance of saving. Savings are the money that is set aside for future use especially during emergencies. It is common sense yet only a handful of people do it. That’s because saving money takes a lot of discipline.

If there is one thing that this crisis taught us, it is the importance of saving. Those who have enough savings will be able to rise above this crisis. Aside from serving as your emergency fund, your savings can also give you freedom. You can use it as downpayment for your dream house. Your savings can also use to buy a new car or to travel to your dream destination. The possibilities are endless.

3. Understanding Debt

Not all debts are created equal. There are good debts and there are bad debts. Understanding what they are and how they differ from one another will help you make good financial decisions when it comes to handling debts.

Almost all people in the world will have to handle debt at one point in their lives, whether it be a mortgage, a car loan, a credit card debt or any other kind of personal loans. Debts can have positive or negative effects on everyone’s lives. Knowing the basics will help people use debts for their own advantage.

There is still a lot to learn but it is definitely worth the time and effort. For now, understanding the basics of financial literacy is a good start towards your journey to improving your financial life for the better.

Feature Image by Steve Buissinne from Pixabay Images