Author: Investa

For many who are just starting to learn how to trade, the cost of learning comes into play. “Bilhin ko ba libro na ‘to?” “Sulit kaya pumunta sa event sa November?” Aminin mo na – a lot of us want to keep costs low, especially when it comes to learning new things. While you can save on some costs, trading events are something you shouldn’t miss.

It’s a whole different experience when the lessons are taught live

The speakers most likely already have free material on the internet. They might even have youtube videos that cover a variety of topics. However, trading events give speakers much more freedom to fully express their wisdom. 

If you watch how they teach during, you’ll notice that a lot more nuances are covered. More details are usually discussed. Emotions are also brought out which could give more emphasis. Speakers also become more able to gauge how well the audience understands the lesson. In contrast, there’s a disconnect when creating online material since there’s no real-time feedback.

Speakers can directly address questions

Live discussions can be held between learners and speakers. Attending trading events live holds the advantage of allowing for real-time interactions. Since speakers can gauge the audience’s understanding, trading events enable direct communication, fostering an environment where questions can be asked, discussions can take place, and ideas can be exchanged. This active engagement not only enhances your understanding but also encourages critical thinking and collaboration.

You’ll notice that trading events capture your full attention

When consuming online content, you’ll notice that distractions are everywhere. By attending live trading events, you’ll be put into a better ambiance to learn from the wisdom of others. The physical presence of both presenters and fellow attendees creates an atmosphere conducive to focused learning. You can fully immerse yourself in the content without the temptation to multitask or drift away.

Best of all, you can meet like-minded people

It can’t be stressed enough how important it is to build your network. In any field, being able to talk with others allows you to gain knowledge and experience faster. Attending trading events provides you with a unique platform for networking. You’ll have the opportunity to connect with others and even create communities. Fun fact: some communities started from interactions between traders during events!

Is it worth-it to attend trading events?

Online content has undoubtedly been a game-changer for learning. However, face-to-face events still hold a lot of value in learning new skills. The real-time interactions, ambiance, and overall experience are things that online learning just can’t replicate. Trading events are definitely something you should look forward to attending from time to time.

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Managing personal finances is essential to have financial stability and avoid spending beyond your budget. Creating a budget sheet may help you to be frugal and be responsible with your finances. 

This article delves into the significance of expense tracking and guides you through the process of creating an effective budget sheet.

The Significance of Tracking Expenses

Everyone knows the line “with great power comes great responsibility.” This applies to our own finances as well. Either through an allowance or when you start earning a salary, the freedom to spend as much as we want can cause us to overspend.

Even just tracking daily expenses through your phone can help you a lot! You’ll find out where your money goes, and you can better assess where you should focus your funds on.

To track your expenses, what you can do is to gather all your financial records, such as receipts and bank statements. Create categories for your expenses, such as groceries, transportation, entertainment, and utilities. Utilize spreadsheets, budgeting apps, or even pen and paper to record every transaction accurately. By consistently updating this record, you’ll be able to observe patterns, identify areas of excess, and make necessary adjustments.

How to Create Your Budget Sheet

Once you’ve listed down your monthly expenses, The next step is to create a comprehensive budget sheet. A budget is a roadmap for your financial journey, ensuring that your resources are allocated accordingly. Here’s how you can go about creating an effective budget sheet:

1. Determine Your Income: Calculate your monthly income from all sources. This includes your salary, allowances, and any additional income streams. 
2. List Fixed Expenses: List down your fixed monthly expenditures, such as rent, mortgage payments, insurance premiums, and loan repayments. These are non-negotiable expenses that need to be accounted for.
3. Categorize Variable Expenses: Categorize your variable expenses, like groceries, dining out, transportation, entertainment, and shopping. 
4. Allocate Savings: Dedicate a portion of your income to savings and investments. This is crucial for building an emergency fund and securing your financial future.
5. Set Financial Goals: Define short-term and long-term financial goals. Allocate funds towards these goals within your budget, such as paying off debt, buying a car, or saving for a vacation.
6. Calculate the Difference: Subtract your total expenses, including fixed and variable costs, from your income. A positive difference indicates that you’re living within your means, while a negative one highlights potential overspending.
7. Adjust and Refine: Regularly review and adjust your budget to align with changing circumstances. Life events like pay raises, new expenses, or unexpected costs may necessitate modifications to your budget sheet.

Keep In Mind

In a world dominated by consumerism and financial intricacies, being responsible with your finances is not just a choice, but a necessity. Tracking your expenses and creating a budget sheet serve as the pillars for achieving financial stability and realizing your dreams. By Embracing budgeting practices, you embark on a journey towards financial freedom, allowing you to manage your money rather than letting it manage you.

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Many of us know that having an emergency fund is essential. Yet, not a lot of us understand why it’s important to have one. Life is full of unexpected twists and turns, and an emergency fund can serve as your safety net. 

Here are the top reasons why you NEED to have one.

Financial Protection in Uncertain Times

This reason is what many of us know. Life is unpredictable, and no one can predict when a financial crisis may arise. Whether it’s a global economic downturn, a family emergency, or an unexpected natural disaster, having an emergency fund can help you weather the storm without derailing your long-term financial goals. It serves as a cushion, protecting you from having to rely on credit cards or loans in times of need.

Stress Reduction and Peace of Mind

Financial stress can be very overwhelming at times. Sometimes you’ll feel like you’re not yet secure. Other times, it might feel like you haven’t progressed at all. Having an emergency fund can allow you to have peace of mind. Aside from knowing that you have something to turn to during crises, you can also treat it as your progress bar. Being able to look at how much you’ve been able to set aside can you let know for yourself how well you’re able to handle your finances – and how capable you can be should emergencies arise. 

Emergency Funds Prevent Debt

An extension of being secured during tough times, emergency funds also help you to stay away from debt. Without an emergency fund, people usually resort to borrowing money. For many low-income earners, this usually means continuously taking debt. High-interest rates and mounting bills mount up until they become hard to manage. Having an emergency fund ensures that you won’t have to accumulate debt during challenging times and can maintain financial independence.

Faster Recovery from Financial Setbacks

With an emergency fund in place, it becomes easier to handle setbacks. You wouldn’t need to restart having to save up for a business. You wouldn’t need to tap into long-term investments. Of course, you have to build up your emergency fund again. However, the setback won’t cause serious harm to your life, and your investments. 

Flexibility in Career Decisions

Having an emergency fund can offer the freedom to pursue various career opportunities. You won’t be afraid of being jobless for a few months because you know that you already have a safety net. On the other hand, living paycheck to paycheck can have a big impact on your flexibility since having a steady stream of income becomes a necessity for you.

Should you have one?

The importance of an emergency fund cannot be overstated. It is a fundamental aspect of responsible financial planning and provides security and stability in the face of life’s uncertainties. By having one, you are taking a proactive step towards safeguarding your financial future and ensuring that unexpected events don’t disrupt your overall financial well-being. 

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In recent years, artificial Intelligence evolved to become the powerhouse of knowledge and information. Thus, In this article, we ask Ai to write a letter about financial education and its contribution. 

Hello, I am Ali. 

As an Artificial Intelligence entity, I am keenly aware of the remarkable shifts taking place in the realm of financial education. The advent of Artificial Intelligence (AI) has ushered in a new era, revolutionizing the way you learn about finances. 

In this article, I will explore how I fundamentally transform the financial education landscape and empower individuals to make informed decisions for a secure financial future.

Traditional financial education methods have often been limited 

By accessibility, relevance, and engagement. Historically, financial education was often reserved for those with access to formal institutions or specialized training. However, with my help, I have the potential to bridge this gap by making financial education available to a broader audience, regardless of their geographical location or socioeconomic background. 

One of the ways I transformed financial education is through the development of interactive learning platforms.

I leveraged algorithms to evaluate a learner’s financial knowledge, preferences. By doing so, I can provide personalized insights into saving habits, expense management, and areas where individuals can optimize their finances. Through this iterative process of learning and adapting, individuals can make informed decisions that align with their financial goals.

Moreover, My chatbots and virtual assistants have emerged as valuable tools for enhancing financial literacy. My companions are available 24/7, answering questions, explaining, and providing real-time financial advice. This instant access to information helps demystify complex financial concepts and encourages a continuous learning process. For instance, users can ask questions about investment strategies, budgeting techniques, or even the basics of compound interest, receiving clear and concise explanations that aid their understanding.

I believe my arrival in this world revolutionized financial education.

From personalized learning paths to immersive experiences and real-time feedback, my technologies transformed how you learn about finances. As I continue to evolve, I hope we can work harmoniously toward a fortunate future. 

Love, Ali. 

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Nowadays, governments have been printing lots of money. Practically injecting monetary systems with money, people have started to ponder where exactly does money base its value from?

The current monetary system today involves lots of complexities, but long ago fiat currencies used to be backed entirely by gold in a system known as the gold standard.

What is the gold standard?

The gold standard is a monetary system where a country’s currency is valued proportionally with gold. Countries agreed to convert paper money into a fixed amount of gold, whether if its to buy or sell fiat money. 

An advantage of the the system was that it took control out of the hands of humans. Since gold has a limited supply, governments won’t be able to just print money on the go. Furthermore, the gold standard had the goal of preventing both inflation and deflation through sound governance.

However, one of the biggest advantages to the gold standard was simply that governments had to first acquire gold before they could increase the economy’s monetary supply. This ensured that reckless fiscal policies won’t occur. The downside of this is that economic growth could be hindered sometimes. Since gold needs to be acquired first, the government won’t be able to quickly inject liquidity into the economy.

What happened to the gold standard?

While many continue to support the gold standard, ultimately the majority decided to use the fiat currency system. Fiat currency is a type of currency that is not backed by a physical commodity, such as gold or silver. Instead, it is backed by the government that issued it. The value of fiat currency is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it.

As the old focused on ensuring the stability of the monetary system, the fiat currency was more focused on providing flexibility and greater power to central banks. This, however, came with the cost of greater vulnerability to inflation.

Will the gold standard come back?

The gold standard has its advantages. However, it is ultimately an inflexible system. While it does ensure stability, the lack of growth possible is too much of a trade-off. Given how fast trades and industries are currently growing, modern economies need to have a higher growth ceiling even at the cost of increased risks.

Furthermore, the gold standard won’t be able to promote inclusivity. Not all countries will have easy access to the commodity. Hence, not all countries will have an equal playing field in international trade.

How this ties up to the current financial markets

While we may no longer see gold having as big of a role as it had before, it is still one of the major commodities traded in the financial markets. By learning all about the gold standard, we already know that speculations on the return of gold as a major factor in fiscal systems are just that – purely speculative. 

However, we do know that owning gold still has its benefits and can also have an impact on the financial markets in the future. Let us know if you want to learn more trivia about gold in the comments!

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You’ve probably already heard about stocks, bonds, and mutual funds. But, something that you might not have heard of yet are Unit Investment Trust Funds, or UITFs. 

Let’s dive into what exactly UITFs are, and why we should invest in them!

What is a UITF?

A UITF is a type of investment fund managed by a professional fund manager. UITFs are pooled funds, much like Mutual Funds. This means that the money of investors is pooled together and invested in a variety of assets, such as stocks, bonds, and money market instruments. This diversification helps to reduce risk, as the performance of the fund is not dependent on the performance of any single asset.

UITFs are also open-ended funds. This means that new units can be created and redeemed at any time. This makes them very liquid since investors can get in and out easily. On top of that, they are also very affordable due to the usually low minimum investment amount required. 

Types of UITFs

Much like Mutual Funds, there are many types of UITFs available. Investors can choose the UITF suitable for them depending on their needs and risk tolerance. 

Money market funds: These are invested in short-term, low-risk assets, such as treasury bills and commercial paper. Money market funds are typically good for people with a low-risk tolerance.

Bond funds: These UITFs invest in bonds, which are loans that are made to companies or governments. They offer higher potential returns than money market funds, but they also carry more risk.

Equity funds: These funds invest in stocks, which represent ownership in a company. They offer the potential for high returns, but they also carry the most risk.

How do UITFs work?

When you invest in a UITF, you are essentially buying shares or units of participation in the fund. The number of units you buy will depend on the amount of money you invest. The fund manager will then invest your money in the assets that are specified in the fund’s prospectus. From there, the value of your units in the UITF will depend on the performance of the all the investments as a whole.

What are the benefits of investing in UITFs?

Among many things, UITFs hold the benefit of being a passive form of investing. UITFs are typically diversified funds that are managed by professionals. This ensures that your money will grow in the long term. It’s also worth noting that UITFs are usually liquid – meaning it’s easy for you to pull out your money as well while benefitting from typically low fees.

Of course, like with any investment, UITFs are subject to the volatility of the markets. While you can expect to earn in the long term, these funds are typically volatile in the short-term. Another factor that could accentuate risks is choosing the wrong management company. To make sure your investment is safe, make sure to check first what the track record of the investing company looks like.

Should you invest in UITFs?

UITFs are a solid option for investors who want someone else to manage their money. They are diversified, professionally managed, and liquid investments. Although they usually aren’t cut out as the main allocation for most portfolios, these funds can be a great addition as a way to diversify your investments.

Make sure to check out Investa to explore the different UITFs you can invest in! 

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Throughout my quest for financial freedom, the books I have read helped me change my financial mindset and behavior and made me understand that everyone can achieve financial stability if we welcome changes. 

This article will explore transformative books that can help improve your financial mindset.

Rich Dad Poor Dad by Robert Kiyosaki

“I can’t afford it” shuts down your brain. “How can I afford it?” opens up possibilities, excitement, and dreams.

This book is a widely known classic that has uplifted millions of readers worldwide. This book shares the contrasting lessons he learned from his “rich dad,” his best friend’s father, and his “poor dad,” his biological father. The book emphasizes the power of mindset and perspectives to change our financial mindset. 

One of my takeaways from the book is that we should change how we look at our financial circumstances. Instead of putting a red dot on your financial aspiration, you should look for ways and ask yourself how to make it happen. For instance, Mark went to the mall and saw a laptop to help him study. After looking at the price, he asks himself, “How can I save up? And buy this laptop?” instead of putting a red dot saying, “I cannot afford this.” Life will not be easy, but we have the power to pass through it and surpass the challenges by our mindset. 

The Millionaire Next Door by Thomas J. Stanley and William D. Danko

This book puts millionaires’ behaviors at the center and discusses their spending habits, discipline, and mindset. Defiant to popular notion, the authors reveal that most millionaires are not heavy spenders with grand lifestyles. Instead, they are frugal, hardworking individuals who live below their means, save diligently and make prudent financial decisions.

The book reveals that building your wealth is achievable with a strong discipline and financial mindset. It emphasizes the power of delaying instant gratification and financial planning. It highlights the importance of financial planning and delayed gratification to build financial freedom over time. This book is an eye-opening read that can reshape your perception of financial success and inspire you to adopt a more disciplined approach to managing your money.

The Psychology of Money” by Morgan Housel

To grasp why people bury themselves in debt, you don’t need to study interest rates; you need to study the history of greed, insecurity, and optimism.

This book analyzes the behavioral aspects that affect financial decisions. The book delves into the role of emotions, biases, and social intimidation in shaping our relationship with money. The author argues that understanding one’s psychological makeup and the impact of individual choices is just as crucial as understanding financial concepts when building wealth.

The book suggests valuable insights into the power of compounding effects, the impact of our financial choices over the long term, and the importance of having a buffer for unforeseen circumstances. By connecting our behavior and financial outcomes, the book empowers readers to make more informed and rational decisions, ultimately leading to a healthier financial mindset.

Think and Grow Rich” by Napoleon Hill

The book points out that in achieving financial success, we should instill optimistic thinking, perseverance, and setting goals. It empowers the readers to envision their future, develop strategic plans to achieve them, and take consistent action to manifest their dreams. It also emphasizes the importance of surrounding yourself with the same aspirations and like-minded individuals for mutual support and encouragement. 

Keep In Mind

In conclusion, the journey toward financial freedom requires a shift in mindset and behavior. After you read this article, I hope we can take action and start changing our financial mindset while instilling discipline and positive thinking. Because through this, we can move closer to our financial goals and create a brighter financial future for ourselves.

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