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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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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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.

Have you ever wondered how
banks use your cash?
When you deposit money into a bank, it becomes part of the bank's reserves.

Banks are required to maintain a certain percentage (usually 10%) of their deposits as reserves, which are held in accounts with the central bank to ensure liquidity and stability in the financial system.

The portion of deposits that banks do not hold as reserves is available for lending and investment purposes.

Banks utilize these funds to provide loans to individuals, businesses, and other institutions. Loans can include mortgages, personal loans, business loans, and more.
By lending out the deposited funds, banks earn interest income from the borrowers, which contributes to their profitability.

In addition to lending, banks also invest deposit funds in various assets and financial instruments to earn additional returns.
These investments can include government and corporate bonds, stocks, mutual funds, real estate, and other financial products.

The specific investment strategies and choices vary among banks based on their risk appetite, regulatory requirements, and market conditions.

This means banks are actually doing what you should be doing. They’re investing with your money!

Most people are stuck
when it comes to finances.

Remember how you’ve been told to stay in school, get a good job, work you’re a** off for your boss and then retire?

Well, there is another option.
It is time we uncover the secret to early retirement.

Join me tomorrow as I reveal the ultimate strategy to retire before 40:

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

Key points to consider
when following this strategy.

🔄 Diversification:
Barbell investing allows for diversification by spreading investments across different asset classes. This diversification can help reduce risk, as conservative assets provide stability while speculative assets offer growth potential.

⛔ Risk management:
The conservative portion of the portfolio helps protect against downside risks and provides stability during market downturns. This can be beneficial for investors who are risk-averse or have shorter-term financial goals.

📈 Potential for higher returns:
By allocating a portion of the portfolio to speculative assets, there is a chance to capture significant returns if those assets perform well. This can be appealing for investors seeking higher growth potential and willing to take on additional risk.

📚 Market timing and research:
Successful implementation of a barbell strategy requires careful consideration of market conditions and thorough research. Identifying the right mix of conservative and speculative assets and timing the investments appropriately is crucial for maximizing potential returns.

🤸 Flexibility and adaptability:
Barbell investing allows for adjustments and rebalancing based on changing market conditions and individual investment goals. It offers the flexibility to shift the allocation between conservative and speculative assets as needed.

And remember, just like in the gym.
Progressive overload 🔥

Financial markets can be uncertain and volatile, causing anxiety.

You felt it right? In 2022?
In such situations, turning to the investments of legendary investors can offer guidance and reassurance.

These visionaries have weathered numerous storms, including recessions and market crashes, and consistently emerged victorious.
By following their lead, we align ourselves with proven winners, reducing our worries and gaining confidence.

However, that doesn’t mean you should
follow them blindly.
Always think with your own head.

Inspired by:

Business owners become millionaires if they solve valuable problems.

Investors become millionaires if they acquire valuable assets.

Which path is better?

Find out tomorrow at:

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

I have a question for you:
When does the stock market do well? Shortly before the peak or shortly after a terrible year?

If you don’t know the answer, here it is.

Historically, the stock market has tended to recover strongly after bear markets.
This is because bear markets are often caused by a sharp decline in investor confidence, which can lead to oversold conditions and create opportunities for value-oriented investors to buy stocks at a discount.

On the other hand, the stock market tends to perform well before the peak of a bull market, as investors are often optimistic about the prospects for economic growth and corporate earnings.

However, it is important to note that bull markets can be unpredictable and can also experience sharp corrections or crashes, so there is no guarantee of positive returns during these periods.

Ultimately, the stock market is quite unpredictable.
No one really knows what’s about to happen.

But as long-term investors, that doesn’t frighten us.

Story time.

Sarah was a young woman who grew up in a middle-class family.
From a young age, she had a fascination with money and how it worked. She was always asking her parents questions about their finances and how they made their money grow.

As Sarah grew older, she started to develop her own good money habits.
She got her first job at the age of 16 and immediately started saving a portion of her earnings. She opened a high yield savings account and regularly put money into it each month, no matter how small the amount.
At 18, she made her first investment.

After graduating from college, Sarah started working in finance, which allowed her to expand her knowledge of the industry and learn more about investing. She took advantage of her company's 401(k) plan and started investing in index funds, which helped her portfolio grow steadily over time.

In her late 20s, Sarah decided to start her own side business selling handmade jewelry. She used her business income to pay off her student loans early and invest even more aggressively in the stock market.

Thanks to her good money habits and smart investments, Sarah was able to retire in her early 40s, long before most people her age.

She now spends her days traveling the world and pursuing her hobbies, all while enjoying the financial security that her hard work and good money habits have provided.

Inspired by:

Internet + Desire = Money
But it’s often hard to find the right side hustle.

Tomorrow, I’ll share 50 side hustle ideas that anyone can start.

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

Focusing solely on the money is blocking your growth.

Here are three areas that need your attention:

👨 Investing in yourself can help you improve your skills, knowledge, and capabilities, which can increase your earning potential and career opportunities.

🌱 Investing in assets can provide you with a source of passive income and can help you build wealth over time, as the value of the assets appreciates.

📚 Investing in productivity can help you become more efficient and effective in your work, allowing you to accomplish more in less time. Time is the ultimate commodity.

That being said, you also need to find the time for your friends and family.
Living solely for the purpose of building wealth is a lonely road.

Inspired by: newmoney.blog

After working successfully with 200+ beginner investors worldwide, I am now looking for other winners!

I am looking for:

Employees...
Self employed professionals...
Business owners...

That want to become confident investors and create a $3,000+ monthly passive income that can replace the income from their full time job in the long term!

Don't get me wrong, I think working is a beautiful thing.
But there is a world of difference between working WHEN YOU WANT instead of HAVING TO work to sustain yourself.

This is what Work Optional is. And I am going to teach you how to get there.

This is the same coaching program through which I personally coached more than 200 people worldwide.

All of their video testimonials are available on my website.

Some of them just started their career and wanted to set up a plan to make Work Optional, others are in their 40s and looking to reach Early Retirement with a consistent passive income every month.

Most importantly, all of them started from zero!

So, if you are even just curious…

Use this post as an opportunity to know more about this… We are available!

Comment with “Invest” and we will send you a message personally! 👇

Because no matter your location, income or background...

You just need one thing: Motivation.

And if you have that, I will give you everything else you need to succeed as Investor!

Vittorio

The stock market is the perfect place to compound your wealth.
It's like a garden where you plant a tiny seed and watch it grow into a big, beautiful plant.

When you buy a stock, you are buying a tiny piece of a company.
If that company does well and makes a lot of money, the value of your stock can go up.
And if you keep that stock for a long time, you can earn a lot of money!
Especially if you reinvest the cash (dividends) received.

This is called "compounding" your wealth.
The stock market is a perfect place to compound your wealth because over the long term, stocks tend to go up in value.

By stocks I mean the overall stock market.
But don’t worry.
You can easily own a piece of the entire stock market through index funds or exchange-traded funds.

Some people waste up to 50% of their salary on low-value stuff.

Let’s fix that.

Tomorrow, I’ll share 10 + 1 things where you should never be cheap.

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