Stoic Money

#1 "must know investing tools"

Three reasons why you need these tools.

🔎 Research Efficiency:
Investing tools provide access to a wealth of information and data, allowing investors to quickly analyze stocks, trends, and market conditions, saving time compared to manually researching each investment option.

🤖 Automation and Alerts:
Investing tools often offer features such as automated portfolio management, alerts for price changes or news updates, and predefined investment strategies. These tools streamline processes and keep investors informed, reducing the time spent on manual tracking and decision-making.

📦 Streamlined Transactions:
With investing tools, investors can execute trades and manage their portfolios online, avoiding the need for physical paperwork and lengthy administrative processes. This convenience and efficiency save time and enable swift action when needed.

In case you loved this post, I have some good news for you:
#2 of “must know investing tools” is coming!

Stay tuned.

Credit card debt, cars you can’t afford, fancy dining?

Stop that!

You need to be the master of your money. Not the other way around.

Why?

Because every road to success starts with a good budget.

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Stoic Money Blog Every Sunday morning, one actionable tip to get closer to Financial Freedom.

I know what you’re thinking:

Can the president really change the course of the stock market?

While the President can have some influence on the stock market, it's important to remember that the stock market is influenced by many factors, including the overall state of the economy, investor sentiment, and global events.

The President's policies and actions can impact the market indirectly by affecting things like government spending, taxes, regulations, and trade policies.

However, it's not accurate to say that the President has complete control over the direction of the stock market, as it is a complex system influenced by various factors beyond any single individual's control.

Nevertheless, it’s fun to see.

A quick lesson on the FED. Keep reading.

So, the Federal Reserve is like a big bank that plays an important role in our economy.
When it comes to stocks, the Federal Reserve can have an impact.
One way is by changing something called "interest rates".

When they lower interest rates, it can make it cheaper for businesses to borrow money.
This can make them more likely to invest, which can be good for stocks because it means companies have more money to grow and make profits.

On the other hand, if the Federal Reserve raises interest rates, it can make it more expensive for businesses to borrow money, which might make them hesitant to invest.
This can sometimes lead to a decrease in stock prices.

So, in a nutshell, the Federal Reserve can influence stocks by changing interest rates, which affects how companies borrow and invest money.

And that’s why every investor is watching Jerome Powell’s speeches.

Feeling trapped in 9-5 jobs, people often give up on their dream of financial freedom.

But it's a journey worth taking!
For yourself, for your spouse, for your children.

Discover a unique 10-Year Roadmap to Financial Freedom tomorrow.

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Stoic Money Blog Every Sunday morning, one actionable tip to get closer to Financial Freedom.

Are you ready to change your life?

On average, a human lifetime consists of around 28,000 days.
Therefore, 30 days represents approximately 0.11% of an average lifetime.

While it may seem like a small fraction, the impact of dedicating 30 days to transform your financial life can be substantial.

By committing to this challenge, you are allocating a valuable portion of your time and energy to improve your financial well-being, paving the way for long-term prosperity.

Remember, it's not about the quantity of days, but the quality of actions and decisions you make within that timeframe.

This chart says it all. Buy and hold.
Here is a story that supports that.

Once there was a young man named John who loved trading stocks, hoping to make quick profits. But he often ended up losing money.

One day, he decided to try a different approach: long-term investing. Instead of buying and selling quickly, he chose to hold onto stocks for a longer time.

John researched companies he believed in, investing in ones with a bright future. He didn't worry about daily ups and downs like before.

Over time, his investments started to grow steadily, thanks to compound interest. By staying calm during market downturns, he avoided making hasty decisions.

As the years went by, John's portfolio stopped losing money and started generating consistent returns. He learned the power of patience and making wise choices.

Through long-term investing, John not only grew his wealth but also found peace of mind, he realized that investing isn't just about quick gains but about securing a better future.

In short, by trying long-term investing, John turned his losses into wins and discovered the benefits of patience and smart decision-making in the world of investing.

Data source: BofA

Dividends are awesome.
Some call it the ultimate passive income source.

Tomorrow, I'll dive deep into the world of dividends, sharing everything you need to know to harness their power for financial success.

Find out tomorrow at:

Stoic Money Blog Every Sunday morning, one actionable tip to get closer to Financial Freedom.

Three things to consider when setting up passive income streams.

🧗 Scalability and Potential for Growth:
Look for passive income opportunities that have the potential to scale and grow over time.
Consider investments or ventures that can generate increasing returns as you build them up.
Aim for income streams that can expand without requiring excessive time and effort on your part.

🗯️ Passive vs. Active Involvement:
Determine the level of involvement you are willing to commit to your passive income streams, some ventures may require more initial effort and maintenance, while others may be more hands-off.
Understand the trade-offs between active and passive involvement, including the time, skills, and resources needed to generate and sustain the income. Passive income doesn't necessarily mean zero effort, but the goal is to minimize ongoing active work compared to traditional employment.

♻️ Diversification and Risk Management:
Consider diversifying your passive income sources to reduce risk and ensure a more stable income stream because relying solely on one source can be risky, as market conditions or industry changes could impact its viability.
Explore various avenues such as real estate, stocks, bonds, peer-to-peer lending, or royalties. By spreading your investments across different asset classes or industries, you can mitigate the risk of relying on a single income source.

Do you already have a passive income source?

With the average new car price at almost $50,000, it seems like only the rich can buy new cars today!

Think about it.

If you follow the 1/10th rule for car buying, you need to earn $500,000 to buy
the average new car.
However, a $500,000 household income is the start of a top 1% income!

In contrast, the average price of a used car is about $27,000.
A $22,388 spread between the average new car price and average used car price is significant.
So maybe a used car would be a better option.

But still!

It does matter which car you buy.
When you’re running the numbers, don’t forget to assess the true annual costs of vehicle ownership.

I’m curious. Do you own a car? 🚗

Investing in the stock market without understanding the basics is like playing a game of chess without knowing how the pieces move.

Tomorrow, I'll equip you with 30 essential terms every investor needs to know.

Your guessing stops here.

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Stoic Money Blog Every Sunday morning, one actionable tip to get closer to Financial Freedom.

A simple budgeting principle that can help you achieve financial balance.

Here's how it works:
The 50/30/20 rule suggests dividing your income into three categories: needs, wants, and savings.

🍎 Needs (50%):
Allocate about 50% of your income towards essential expenses like food, housing, transportation, and other bills. These are things you can't live without and need to prioritize.

🏎️ Wants (30%):
Reserve around 30% of your income for things you want but may not necessarily need. This category includes entertainment, eating out, shopping, hobbies, and other enjoyable activities.

🔮 Financial future (20%):
Aim to save at least 20% of your income. This money can go towards building an emergency fund, saving for future goals, or investing. Saving regularly helps you prepare for unexpected expenses and secure your financial future.

By following the 50/30/20 rule, you ensure that you're covering your essential needs, enjoying some fun and treats, and setting aside a portion of your income for your future.

So, every time you get a paycheck pull out three envelopes and divide that money accordingly.
It’s a great way to start with budgeting.

If you know any other budgeting tricks feel free to share with the community!

Let me introduce you to a nifty financial rule called the "Rule of 72."

It's a simple way to estimate how long it will take for your money to double when
you invest it.

Here's how it works:
The Rule of 72 states that you can divide the number 72 by the annual interest rate or growth rate of your investment to get an estimate of how many years it will take for your money to double.

For example, let's say you have $1,000 and you invest it in an index fund that offers an annual interest rate of 6%.
By dividing 72 by 6, you get 12.
So, according to the rule, it would take approximately 12 years for your $1,000 to double to $2,000.

This rule can help you understand the power of compound interest and how time can work in your favor when it comes to investing.
The earlier you start investing, the more time your money has to grow.

Of course, this is a simplified estimation and doesn't account for factors like taxes or fluctuations in investment returns.
Remember, the Rule of 72 is just a handy tool to give you a rough idea of how long it might take for your money to double.

It's a cool trick to keep in mind as you navigate the world of personal finance!

Debt is a really big problem.
Millennials average $78,396 in debt!

Moreover, every dollar spent on debt repayment is a step back from financial freedom.

Join me tomorrow as I unveil my proven tactics to break free from debt.

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Stoic Money Blog Every Sunday morning, one actionable tip to get closer to Financial Freedom.

Here is a quick overview of each.

🧱 Stocks:
They represent ownership in companies, allowing investors to potentially benefit from their growth and profitability.

🤝 Bonds:
They are fixed-income securities issued by governments or corporations, providing investors with regular interest payments and return of principal upon maturity.

🏠 Real estate investments:
They involve purchasing properties for rental income or potential appreciation. It can include residential, commercial, or even real estate investment trusts (REITs).

🔄 Mutual funds:
They pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. They are managed by professional fund managers who make investment decisions on behalf of the investors.

📈 Index funds:
They are a type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific market index, such as the S&P 500.

📦 Certificates of Deposit:
They are time deposits offered by banks with a fixed interest rate and maturity date.
Peer-to-peer lending platforms connect borrowers with individual lenders, eliminating the need for traditional financial intermediaries like banks.

🔌 P2P Lending:
It is a game-changing method of connecting borrowers directly with lenders through online platforms.
It eliminates the traditional intermediaries like banks, allowing individuals to lend and borrow money from each other without using a centralized institution.

💠 Cryptocurrencies:
They are digital or virtual currencies that use cryptography for security.
Investing in precious metals like gold, silver, or platinum can act as a hedge against inflation and economic uncertainty.