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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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You might have heard that stocks of Jollibee and SM are blue chip stocks from your investor friends. But, what exactly are blue chips? 

In a nutshell, a blue chip stock is a stock issued by a large, well-established, and financially sound company with a long history of profitability. These companies are typically market leaders. They are known for their strong track records, stable growth, and reliable dividends.

What can be considered a blue chip?

Blue chip stocks are regarded as the highest-quality stocks in the stock market. They are often used to benchmark a country’s growth and even other stocks in the same industry. 

Typically, blue chips have the following characteristics:

• Big market capitalizations
• History of strong profitability
• A Solid track record of dividends
• Has a stable financial condition

For the Philippines, the stocks that compose the $PSEi are usually considered the Philippine blue chips. Thirty (30) stocks are selected by the PSE, with public float and liquidity being the main criteria. They also make sure to select a market leader from every industry. This way, the index can accurately reflect the economic condition of the country.

What are the implications of investing in blue chips?

Since blue chips are seen as the safest stocks, this means that the reward you can get is usually low. Blue chips are considered “predictable businesses,” so the times that you can buy them for cheap are rare. On the other hand, mid to small caps like $PIZZA and $SSI have a lot more uncertainty. Thus, the reward is also typically higher since the market isn’t sure how to value them.

Aside from this, blue chips also experience less volatility. Buyers and sellers seldom rush to buy or sell them since not a lot of uncertainty surrounds these stocks. Sans black swan events, Blue chips usually weeks to months to make a move. 

When is the best time to buy blue chips?

Since blue chip stocks typically have solid track records, you’ll rarely get a chance to buy them at discounts. However, prices due crash because of systematic risks, that’s usually the best chance you’ll have to get shares at solid prices.

Take for example the COVID pandemic. While it did have a big effect on companies during the lockdown, it didn’t necessarily mean that businesses won’t be able to bounce back and grow again afterward. As restrictions eased, a lot of stocks in the Philippines already started showing solid growth. Many even released dividends, which due to the crash in prices, caused yields to be very high. 

The rule of thumb to remember is that if a blue chip crashes, figure out if it’s due to the business or not. If it isn’t, you have yourself an opportunity you shouldn’t miss out on. This will let you invest in quality stocks that pay good dividends.

Also, if you want to find a list of blue chips or figure out what stocks give the biggest dividends, you can find the information you need all on the Investagrams homepage!

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Making a significant purchase is an important decision that can have big purchases involving substantial financial investment and an important decision that can have a lasting impact on our lives.

Therefore, several essential factors must be considered before diving into any significant acquisition. This essay discusses the critical aspects that individuals should consider before making a big purchase

Evaluate Your Financial Situation 

Evaluating your current financial situation is essential before making a big purchase, as this can give a clear picture if your financial stability is at risk. Calculate your monthly income together with your debts and monthly expenses. Determine if you have enough funds to cover the purchase cost without compromising your financial freedom. By evaluating your financial situation, you can better assess whether the acquisition fits into your budget and aligns with your financial goals.

Research and Comparison

In the era of the digital age, information has become more accessible than ever before. You should leverage this by researching the product or service you intend to buy. You can read reviews online to compare different brands and models and gain insight from expert opinions. Additionally, explore alternative sellers and retailers that are legit and can give you big discounts. This research not only helps you to find the best deal and price, it also allows you to make an informed decision throughout your research process that suits your specific needs and preferences.

Assess Its Long-Term Impact

Before making a big purchase, List all long-term impacts associated with your purchase. Will your purchase contribute to your life or your work productivity? Can your purchase help to achieve your long-term life goals? 

For instance, When buying a laptop, you should list its benefits and the cost. Can it help you to be more productive? Can you sustain its repair and monthly subscriptions to achieve your career goals? If not, then you better think again and seek other options. Similarly, when purchasing a home, factors such as maintenance and repair should be considered. assess if it’s aligned with your long-term goals. Understanding the long-term impact of your purchase ensures that your asset remains relevant and valuable in the years to come.

Emotional Decision Making: The Power of Add to Cart

Emotions are often associated with big purchases, especially when on your goal list. However, it is crucial to balance your emotions to avoid overspending and irresponsible purchases. Separate your desires from practicality and assess the purchase objectively. Ask yourself whether the item you want to purchase is aligned with your actual needs and is a responsible financial decision. You can place your items in your cart for a week to contemplate if you still want to buy the item. Through this, it allows you to reflect on your emotions, and making a well-balanced decision will prevent potential regrets in the future.

Check Your Current Assets

Before making your big purchase, check whether you already possess the item you intend to purchase, serving the same purpose and function. For instance, you want a new laptop for your research studies. However, upon checking your assets, you found that you still have a decent laptop you can use for your studies. By assessing the things you already have, you can avoid unnecessary spending. 

Keep In Mind

Making a big purchase is a significant decision that should be taken seriously. Considering the factors discussed in this essay, you can confidently approach your buy and make a well-informed choice. Taking the time to analyze and ponder these aspects will lead to a satisfying purchase and ensure a positive impact on your financial well-being and overall happiness in the long run.

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Like many others, high school was a time when I spent a lot of hours playing video games with friends. In true Filipino fashion, DotA was always our video game of choice. We’d spend countless hours trying to grind our way through the ranks.

Then, college came and it was time to think about the future. For me, that was when I started trading stocks. For a good 3 years, I gave up my hobbies and got addicted to the market. While I was lucky to be in a bull market during the start, the bear market quickly humbled me. After putting in a lot of effort, I still couldn’t find out why I wasn’t improving.

Summer came, it was still a bear market and I had no classes to attend. So, I decided to play DotA again. That’s when I realized there are a lot of similarities between trading and a video game. After a while, I realized I was learning valuable lessons that I can translate to trading.

Here are some of the biggest takeaways I got.

Focus on the things you can control

“The more time you spend complaining about what you deserve, the less time you have to focus on what you can create.”

James Clear

In the chaos of random matchmaking, everyone complains about something. Yet, only a few focus on what they have control over. DotA is a video game where you play in teams of 5, making it easy to put the blame on someone else. But, the matter of fact is higher ranked players often win games by mainly focusing on what they can do to win.

Likewise, you won’t always be in a favorable position when trading the markets. A lot of people complain about not having accurate insider information. Some blame the people behind pump and dumps. Others think that the top traders have the “holy grail” of trading, which is why they can’t seem to profit from the market. The truth is, the market is an even playing field. Everyone is subject to the same black swans and market crashes. The difference lies in how strongly you hold yourself accountable for your performance. 

Figure out the things you can control and find a way to use them to your advantage. 

Pick your spots

Early on, I had the problem of having a very low win rate. I’d try to make trades with a 3, 4, or even a 5 risk-to-reward ratio. But, I wasn’t converting on a substantial portion of those trades. I read in books and articles that traders often did have win rates below 50%, so I thought this was just a losing streak on my end – until the string of losses eventually ate up a big portion of my portfolio.

As I tried playing DotA again, I realized that risk-to-reward ratios are also present in the video game. While some plays are risky, winning on those bets could easily turn the tide. The key was picking your spots. Trying to balance out the chances of winning an engagement with the risk-to-reward of the idea became a skill I learned to help me improve. Unsurprisingly, I figured that the concept can be applied to trading as well.

Is the market bullish or bearish? Does the stock have any bulging red flags? Are there other factors I need to consider? Trying to stack the probabilities in my favor has been a big help in winning more trades and capitalizing on solid risk-to-reward opportunities.

Stay up to date with the latest changes

Unlike other video games, DotA constantly gets updated. Even the most minor of changes can often dictate big changes to the most effective tactic available (meta). It alters what decisions become suboptimal and which ones become the best course of action. Failing to stay in the know often leads to worse performance.

Likewise, being unaware of changes in the market can have an impact on how you trade. Changes in the Fed’s stance, the USDPHP’s trend, and what industries are currently the strongest are all important factors you need to stay updated on. Else, you might be caught off guard when trends change or be unprepared once big opportunities come.

There will always be losses – focus on the bigger picture

As in any endeavor, losses will always occur no matter how good you get. While they may be hard to accept, losing is a natural part of the learning process. Especially in trading, losses can help set you up to be better. Make mistakes, learn how others handle the same situations, and apply your solutions.

Just remember to keep track of your progress, and keep in mind that you’re in this for the long run. 

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