The best way to generate wealth is to invest! Investing also allows you to reach your financial goal, and to grow your money and make it work for you. Yet, it is also good you know that investments are risky too, life is full of uncertainties after all. However, if you invest wisely , the potential to gain money is much higher than if you chose to never invest.

Why Should You Invest?

Manage your risk by investing across different asset classes worth little to no correlation

Asset classes refer to different groups of investment vehicles, classified according to the similarities they share such as stocks, bonds, real estate and cash.

What Are Asset Classes?

Equities or stocks are a way of owning shares of publicly traded companies such as Tesla. Stocks allow you to earn when the share price of the company rises or via the payment of dividends. This asset class is further broken down according to the market cap so that there are small-cap, mid-cap, and large-cap stocks. Degiro, Interactive Brokers and Revolut are a few trading platforms that allow you to begin investing in the stock market.

What Are Equities (Stocks)?

Fixed-income investments are investments in debt securities that pay you “interests”. These interests are set according to rates and last within a period. Bonds are less risky investments because they include risk-free or guaranteed assets. You can buy bonds from your bank.

Fixed-Income Investments (Bonds)

This asset class is “real” assets, investments in physical properties, rather than financial instruments. It is a good hedge against inflation. Fundrise can help you as it is a good platform for investing in this asset class.

Real Estate or Other Tangible Assets

Derivatives are financial instruments that are an offshoot of an underlying asset. An example is stock options; a derivative of stocks.Other classes include:<ul><li>REITs: allows for investment in the portfolios of real estate assets through the purchase of individual company stock.</li><li>Exchange-traded funds (ETFs): offers exposure to the energy market</li></ul>Alternative investment attracts more risks and at the same time, more liquid. They include:<ul><li>Cryptocurrencies</li><li>Hedge Funds</li></ul>

Forex, Futures this and Other Derivatives (REITs, ETFs, Crypto)

Portfolio Diversification Most financial experts encourage investors to diversify their portfolios by investing in different asset classes. This is to help mitigate the risk of losing out on all your investments If a particular asset class experiences a downturn.Also, diversification can help curtail volatility; an upswing in one class can make up for the loss that results from a downward movement in others. Also, this strategy caters to your:<ul><li>Financial and investment goals: both short-term and long-term.</li><li>Tolerance for risk (market volatility)</li><li>Desire to invest in specific types of investments</li></ul>

Risk Measures to Take While Investing

<ol><li>The value investing strategy is an effective less-risk strategy for stock investments.</li><li>Use a dollar-cost averaging system to reduce the impact of volatility on your investment.</li><li>Invest in growth stock companies such as Johnson and Johnson, IBM.</li><li>Invest in blue-chip companies like Amazon and Facebook.</li></ol>

Investing Strategies That Will Get You Started 

If you know the rules of successful investing then you can make a real profit as an investor by making less-risky investment decisions.

Everyone is capable of growing their income with the below tips. It’s definitely essential to learn about investment opportunities in the midst of increased inflation. As an investment professional, I share key tips to get started with your investment journey. I hope you enjoy!

Risk management, investing, personal finance, how to invest in the stock market, diversification

moneyandinvestments

Money & Investments

Beginner Tips to Investing in the Financial Markets

Benford’s law is an observation about the distribution of first digits in unmanipulated numerical data sets. Benford’s law states that the first digit in naturally occurring collections of numbers is more likely to be small than large.

What Is Benford's Law?

In a number set 0 to 9911% of the numbers start with 1. Likewise, with every other digit from 2 to 9.In a number set 0 to 199more than 50% of the numbers start with 1 and less than 6% start with 2 to 9.In a number set 0 to 29937% start with 1, 37% start with 2, and 3.7% each start with 3 through 9.When number sets obey Benford’s law30% start with 1, while less than 5% start with 9.Benford observed that the first digits of naturally occurring multidigit numbers follow a different pattern.

Getting Technical 

Benford’s law can uncover fictitious numbers in random data sets because data manipulated for tax evasion purposes will likely deviate from Benford’s law, and in that case it is supposed that there had been a tax fraud act.The difference between the expected and observed frequencies is determined through use of a chi-square test. A chi-square statistic measures how a model of expectations compares with actual observed data.

Benford's Law and Tax Fraud

The chi-square test has the following steps:<ul><li>determine the expected frequency of the first digit;</li><li>determine the observed frequency of the first digit;</li><li>calculate the difference between the observed and expected frequencies;</li><li>square the difference (to eliminate distortion from negative numbers);</li><li>divide the result by the number of expected frequencies.</li></ul>When the value computed by the chi-square test exceeds a predetermined critical value, it is appropriate to accept the hypothesis of tax fraud.

Using The Chi-Square Method

Carrie Elliot examines Benford's law and considers how it can be used to detect tax fraud.

crypto

Cryptocurrency

Can Benford’s Law Detect Tax Fraud?

When getting started raising money from friends and family, and even into pre-seed, people are investing in you because they know you, they want to support you. Or you’re building something that they believe in and want to do their part to bring your product to fruition.
But once you start talking to professional investors, whether angels or venture capital firms, you’re not selling your product, nor your team, nor even your traction. You’re selling an investment in your company. Your pitch needs to be a story about how the investor makes money.

Your pitch needs to be a story

<ul><li>The context is the problem, your solution, and the market size. The point is not to sell the product or even explain it in detail, but only to convince investors there’s a real need and a big opportunity. </li><li>Next is the evidence. You have the perfect team to solve the problem and build the business. There are other people in the space, but you not only have a better solution, but patents or another moat to keep the competition at bay. </li><li>Last is the investment. How large will the business grow in five years when you’re ready for acquisition. </li></ul>

Structure of a pitch

After writing more than twenty articles on pitching, I was asked if I could sum up my advice in a single sentence. My first reaction was a snarky, “Yes, read all the damn articles.” But while working…

entrepreneurship

Entrepreneurship

startup

Startups

The One Thing That Separates Great Pitches from Amateurs

<ul><li>Earned income.</li><li>Business income.</li><li>Dividend income.</li><li>Rental income.</li><li>Capital gains.</li><li>Royalty income.</li></ul>

6 Income Sources That Millionaires Have.

productivity

Productivity

Discover the world of business and economics.

economics

Economics

problemsolving

Problem Solving

business

Business

Asif ul Ghazali 

Vanity is excessive pride in or admiration of one’s own abilities, appearance, or achievements. There is a fine line between vanity and ego. Ego is a person’s sense of self-esteem or self-importance.Vanity may be the devil’s favorite sin, but ego can be a trader's (or investor’s) worst nightmare.Ego gets in the way of rational, logical, and reasonable conclusions because fear and greed can tug on our egos and cause us to make mistakes.

Vanity & Ego

Human nature is a powerful force, but it deludes us to believe our gut instincts. When the price of an asset falls to a level where an investor or trader believes is a logical, reasonable, and rational low, they perceive the price as a bargain.After an initial purchase, if the price continues to fall, our emotions cause a dangerous impulse. The little voice in our heads (ego) declares that the market is wrong. But it's never wrong.The quest to buy the low in any market has everything to do with ego and little to do with making a profit.

Buying The Low

On April 20, 2020, in the crude oil futures, came to 0$. Who wouldn’t want to buy crude oil at zero? After all, what is the risk?As the history shows, a purchase of the expiring futures contract at zero looked more than ugly at negative $40 per barrel, the April 20, 2020 low.

Example Of Buying The Low

Shorting an asset has the same ego dynamics. The market can take prices to levels on the up and downside that defy logic, reason, and rational analysis. There are many instances where prices rise to levels that make no sense.Selling short and ignoring the power of the trend is dangerous and could be disastrous. Just because a market price rises to a high, does not mean it cannot go higher, a lot higher.

Selling At All Time High

The annual chart of wood price has never traded over $493.50 per 1,000 board (1993 ATH) before 2017.After falling to a low of $251.50 in early 2020 as the global pandemic gripped markets across all asset classes, the price took off on the upside.At $660 in August 2020, it reached a new record high.At $1,000 in September 2020, the price was irrational, and it more than halved in value, reaching a low of just over $490 in October 2020.In May 2021, the price exploded to $1711.20 per 1,000 board before collapsing.

Example Of Selling At ATH

Following trends requires a special skill, which is no skill at all. Ignore expert advice, the news, and any other exogenous forces. The only tool necessary is a simple chart that displays the path of least resistance of the price.The process is entirely objective, while fundamental analysis is completely subjective.James Surowiecki argues that the many are smarter than the few and collective wisdom shapes business, economies, societies, and nations. A price chart is the roadmap of the crowd’s wisdom.

Follow The Trend

Eliminating ego from all investment and trading decisions starts with ignoring the news, experts, and any inputs other than the herd behavior in markets.Prices rise & fall to levels that many believe are not sustainable, following trends allows you to take advantage of their mistakes. Make a conscious decision that you will end the quest to pick a high or low in any market.Ignore those voices in your head that appeal to your ego. Never forget that your view has no relevance whatsoever. Approach markets with a clear risk-reward plan.

Suppressing Emotions are Harder Than You Think

Vanity may be the devil’s favorite sin, but ego can be a trader or investor’s worst nightmare. 

Understand yourself and those around you.

psychology

Psychology

Leave Your Ego At The Door

Today! We are looking at Top 3 advantages of being born poor. Please don't get us wrong! Being born rich is wonderful, but being born poor and becoming successful later in life by working hard. Your life status becomes the next level.

Introduction

You know what being poor means. So, you work hard 24 X 7 to make your life better. So, that your kids can get a better life, a better opportunity that you never had when you were young. When you are poor, you value everything because even the basic things are hard to get. It is almost like a luxury to you. You know, working hard day in and out is the only way to improve your life, improve your life status. So, you cultivate that habit of working throughout your life.

1. You work hard to make your life better

When you are poor, you have to manage everything with whatever you earn. As you learn to value money; you also learn to work out, with whatever you earn as money don't come to you easily.

2. You understand the value of money

When you're poor, the more knowledge you have more you learn. That's simple! In order, to earn more you enhanced your existing knowledge or you explore more areas of different fields in order to earn more. Thus, you begin to gain more knowledge along the way and also. You begin to gain respect has to having more knowledge in different fields and people love you and even respect you more.

3. You become more knowledgeable 

personaldevelopment

Personal Development

Top 3 advantages of being born poor

It's true that we have don't understand between LIABILITIES and ASSETS. Liabilities is the thinge which take out money from you.Asset is something which puts money in your pocket

Money Fact

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

motivationandinspiration

Motivation & Inspiration

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

Robert T. Kiyosaki

Rich Dad, Poor Dad

This is the most common approach that senior marketers take for setting their marketing budget that is based on the previous year's expenses. A survey reported that 41% of their respondents base their yearly budget the previous year's expenses and then adjusted during the year if needed.

Creating a Yearly Budget

Include (based from the CMO survey):<ul><li>Building the budget from scratch every year based on new needs and objectives - 28%</li><li>Setting the budget as a percentage of projected revenue - 21%</li><li>Resetting the budget every month/quarter depending on what's needed to meet the objectives - 10% </li></ul>

Other common approaches

The most common approach marketers take for setting their marketing budget is to create a yearly budget based on the previous year's expenses. See the research.

marketingandsales

Marketing & Sales

How Senior Marketers Set Their Budgets

This referes to the income received for performing a service. Some examples of active income are: wages, tips, salaries, commissions, and income from businesses that hae material participation.

Active Income

<ol><li>Active Income - the most common example of an active income comes in the form of paychecks from your employer </li><li>Passive Income - this type of income is received even without active participation in the business</li><li>Portofilio Income - comes in forms of investment divdends and capital gains.</li></ol>

Types of Income

Active income refers to income received from performing a service. Wages, tips, salaries, and commissions are all examples of active income.

What Is Active Income?

Because the IRS classifies digital currencies like bitcoin<a href="https://www.cnbc.com/quotes/BTC.BS=-USS"> </a>as property, losses on crypto holdings are treated much differently than losses on stocks and mutual funds, according to Onramp Invest CEO Tyrone Ross. With crypto tokens, <a href="https://www.investor.gov/introduction-investing/investing-basics/glossary/wash-sales">wash sale rules </a>don’t apply, meaning that you can sell your bitcoin and buy it right back, whereas with a stock, you would have to wait 30 days to buy it back.

BTC as a Property

The more losses you can rack up, the better it is for the investor in the long run.“You can harvest an unlimited amount of losses and <a href="https://taxbit.com/blog/cryptocurrency-trading-tax-loss-harvesting-guide/#:~:text=You%20can%20carry%20forward%20capital,each%20asset's%20cost%20basis%20manually.">carry them forward </a>into an unlimited number of tax years”.Because the wash sale rule doesn’t apply, investors can harvest their crypto losses more aggressively than with stocks, because there’s no baked-in waiting period.

Accumulate Losses

Quickly buying back the crypto is a key part of the equation. If timed correctly, buying the dip enables investors to catch the ride back up, if the price of the digital coin rebounds.But be caution that thorough bookkeeping is essential.Be warned, “Without detailed records of your transaction and cost basis, you cannot substantiate your calculations to the IRS”.

Thorough Bookkeeping Is Very Essential

With crypto tokens, wash sale rules don't apply, meaning that you can sell your bitcoin and buy it right back, whereas with a stock, you would have to wait 30 days. 

Tax loophole to avoid federal taxes on BTC

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