{"id":10619,"date":"2023-05-08T02:00:59","date_gmt":"2023-05-08T02:00:59","guid":{"rendered":"https:\/\/elmads.com\/?p=10619"},"modified":"2024-04-25T12:43:38","modified_gmt":"2024-04-25T12:43:38","slug":"investing-101-the-what-why-how-when-where","status":"publish","type":"post","link":"https:\/\/elmads.com\/?p=10619","title":{"rendered":"Investing 101: Everything You Need to Know About Why, How, When &amp; Where"},"content":{"rendered":"\n<p class=\"\">by elmads<\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Investing-101.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10640\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Investing-101.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Investing-101.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Investing-101.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Investing-101.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/elmads.com\/?p=10619\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/elmads.com\/?p=10619\/#WHAT_is_Investing\" >WHAT is Investing?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/elmads.com\/?p=10619\/#Investing_is_Different_from_Saving_Money\" >Investing is Different from Saving Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/elmads.com\/?p=10619\/#Investing_ALWAYS_Involves_RISKS\" >Investing ALWAYS Involves RISKS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/elmads.com\/?p=10619\/#WHY_Invest\" >WHY Invest?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/elmads.com\/?p=10619\/#To_Outpace_Inflation\" >To Outpace Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/elmads.com\/?p=10619\/#To_Buy_a_Day_Where_You_Dont_Have_to_Work_for_Money\" >To Buy a Day Where You Don\u2019t Have to Work for Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/elmads.com\/?p=10619\/#To_Supplement_Our_Savings_as_Saving_Money_Alone_Might_Not_Be_Enough\" >To Supplement Our Savings, as Saving Money Alone Might Not Be Enough<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/elmads.com\/?p=10619\/#HOW_Does_It_Work\" >HOW Does It Work?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/elmads.com\/?p=10619\/#The_Brain_and_Power_of_Investing\" >The Brain and Power of Investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/elmads.com\/?p=10619\/#Investing_Early_is_Crucial\" >Investing Early is Crucial<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/elmads.com\/?p=10619\/#There_is_NO_Perfect_Way_to_Invest_Your_Hard-Earned_Money\" >There is NO Perfect Way to Invest Your Hard-Earned Money<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/elmads.com\/?p=10619\/#WHEN_to_Invest_Things_to_Consider\" >WHEN to Invest? Things to Consider<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/elmads.com\/?p=10619\/#Be_Aware_of_Your_Financial_Situations_your_Financial_Responsibilities\" >Be Aware of Your Financial Situations, your Financial Responsibilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/elmads.com\/?p=10619\/#Know_Your_Why\" >Know Your Why<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/elmads.com\/?p=10619\/#Know_Your_Risk_Tolerance\" >Know Your Risk Tolerance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/elmads.com\/?p=10619\/#WHERE_to_Invest\" >WHERE to Invest?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/elmads.com\/?p=10619\/#The_5_Basic_Asset_Classes\" >The 5 Basic Asset Classes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/elmads.com\/?p=10619\/#Where_as_beginners_can_we_actually_invest\" >Where, as beginners, can we actually invest?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-text-align-justify\">Investing is a word that we&#8217;ve been constantly encountering in today\u2019s information age. A word that has always been heavily marketed by the financial industry but is often misunderstood by people.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">It is so broad that people don&#8217;t even know where to start because there are multiple approaches to this vast world.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">And honestly, only a few methods will truly be applicable to each of us.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Successful investing means bridging the gap between our level of willingness to learn about it, applying those accumulated learnings, and incorporating them into our own lives and beings.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Possessing a fundamental understanding of investing is of paramount importance. Similar to any other field, comprehending its basic principles is necessary to understand its critical parts.<\/p>\n\n\n\n<p class=\"\">Before we move ahead, I just want to clear things out. Investing is not the first step in personal finance. Before a person invests his or her hard-earned money, he or she should first and foremost secure and sort out his or her financial core, the wealth protection side of personal finance.<\/p>\n\n\n\n<p class=\"\">To know more about this, see my blogs titled <span style=\"text-decoration: underline;\"><em><a href=\"https:\/\/elmads.com\/?p=484\">&#8220;Basic Financial Planning Part 1&#8221;<\/a><\/em><\/span> and <a href=\"https:\/\/elmads.com\/?p=546\"><em><span style=\"text-decoration: underline;\">&#8220;Part 2.&#8221;<\/span><\/em><\/a><\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"WHAT_is_Investing\"><\/span>WHAT is Investing?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:83%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/ghuvaCOI6GOoTX0RmH\" title=\"what \"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<p class=\"has-text-align-justify\">&#8220;It is the act of committing money or capital to an endeavour with the expectation of obtaining additional income or profit.&#8221; -Wikipedia.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">&#8220;To put money, effort, time, etc. into something to make a profit or get an advantage&#8221; -Cambridge dictionary.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">&#8220;Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.&#8221; -Forbes.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">&#8220;Investing, broadly, is putting money to work for a period of time in some sort of project or undertaking to generate positive returns (i.e., profits that exceed the amount of the initial investment). It is the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit, or gain.&#8221; -Investopedia.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">All these definitions are from several sources and, though they have different ways of explaining them, point out the process of putting money to work.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In short, it\u2019s making more money with money. Making money work for us.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Or by simply taking this idea into other aspects of our lives, like relationships, specifically courtship, to make it more understandable. A man invests his time and effort in a woman with the hopeful expectation that eventually the woman will be able to like him back, making his investments fruitful in the long run. Nevertheless, the risk is still present even in such a situation because there is always an alternative outcome of rejection or, in the financial space, a poor or failed investment decision.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">You can control the effort and approach, but not always the outcome. It\u2019s the same with making our hard-earned money work for us.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\" id=\"investing-is-different\"><span class=\"ez-toc-section\" id=\"Investing_is_Different_from_Saving_Money\"><\/span>Investing is Different from Saving Money<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/1.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10631\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/1.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/1.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/1.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/1.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">Investing is and will always be different from saving money. The former is making our money make more money for us, while the latter is for our own safety and security.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">To understand this better, I always divide investing and saving money based on time frames.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">What I live by and practise is that all my hard-earned money has a purpose in my life. I see myself and my family\u2019s finances as those of a company, of which I am the chairman and CEO. I consider the money that comes in as my employees, whom I allocate per department with a specific purpose that completely aligns with the greater good and success of the company\u2014in this case, myself and my family.<\/p>\n\n\n\n<p class=\"\">Just like with any other company, I also see my life with goals across time: short, medium, and long-term.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">For short-term financial goals, money that I\u2019ll need within less than or equal to 3 years should be readily available, or if it\u2019s in savings accounts, it must be easily accessed and used within the day. (Just sitting on a bank and flexible savings account)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">For medium-term financial goals, any amount that I will not need within 3\u201310 years (Bonds or high-yielding time deposits.)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">For long-term financial goals, any amount I\u2019ll not need for a very long time, greater or equal to 10 years\u2019 time horizon, (This is where I heavily invest my money on assets that I understand. These are assets with high volatility and very erratic price movements only int the short term, such as stocks and cryptocurrencies.)<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">My reasoning is that if the money we\u2019ll need within 3 years is invested in stocks and cryptocurrencies, that can be problematic. Once the time comes that we\u2019ll be needing the money, let\u2019s say today, while the market is down from your average cost price of your investments, then you\u2019ll be selling your assets at a loss. Instead of making more money from your investments, you lost a portion of them just because of the short-term volatility of the markets.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Or let\u2019s just say you\u2019ve invested the money you\u2019ll need within three years in a property. How will you get that money if you suddenly need it now? Properties cannot be sold within the day, unlike marketable securities (stocks and bonds).<\/p>\n\n\n\n<p class=\"has-text-align-justify\">My personal rule of thumb is that any money I\u2019ll need within 3 years should be saved; it doesn\u2019t matter if that money will not make more money for me because it\u2019s for my safety and security and short-term goals.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Our individual success with our own money management and allocation is rooted in our own goals from a practical yet ambitious point of view.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Investing_ALWAYS_Involves_RISKS\"><\/span>Investing ALWAYS Involves RISKS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/2.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10632\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/2.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/2.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/2.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/2.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">There is no such thing as zero percent risk in the investment world. If someone says otherwise, then those people are likely wanting to sell you something. Therefore, run away from them! \ud83d\ude02<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Even money placed in a bank savings account has a risk of permanent capital loss, like in the event of a bank\u2019s bankruptcy. Though it can be argued that the risk of it happening is minimal thanks to the financial government agency that covers depositors\u2019 money in the event that it does happen, but the element of risk is still there.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">As with crossing the road, what are the chances that you can be hit by a car if you cross at a no-pedestrian crossing compared to a pedestrian crossing? It is a no-brainer that crossing a pedestrian road is safe, yet we couldn\u2019t completely say that it is 100% safe. Drivers under the influence of alcohol and\/or drugs, anyone?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">So, what do we need to be aware of, then? It\u2019s the levels of risk, the types of risk, the level of risk we are willing to take, and how to manage it depending on our personality, individual circumstances, and financial goals.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"2vdD5KWdUz\"><a href=\"https:\/\/elmads.com\/?p=1261\">Investment Risks<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Investment Risks&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=1261&#038;embed=true#?secret=wCWBcmVsaA#?secret=2vdD5KWdUz\" data-secret=\"2vdD5KWdUz\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">One simple fact about risk, whether it be financial, mental, spiritual, health, or relationship aspects of our wellbeing, is that by doing nothing, you\u2019re also taking a risk. Learn to handle risks!<\/p>\n\n\n\n<p class=\"has-text-align-justify\">And as usual, my favourite line &#8220;There\u2019s always a price to pay for the life you choose&#8221;. Take accountability.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"WHY_Invest\"><\/span>WHY Invest?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:75%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/3cXmze4Y8igXdnkc3U\" title=\"why?\"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"To_Outpace_Inflation\"><\/span>To Outpace Inflation <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/3.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10633\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/3.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/3.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/3.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/3.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">It is one of the main reasons, if not the main reason, why we should invest our hard-earned money.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Inflation is a normal occurrence in most economies worldwide. It spurs people to spend, which helps to increase the velocity of money within the economy through more investments, more jobs, and more products and services, which in turn increases economic output. But then it should be within a healthy inflation zone, which first-world countries\u2019 central banks consider to be 2%\u20134%. More than that for long periods of time can be detrimental for both the people and the economy.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">How does it help with spending? Here\u2019s an oversimplified thought:<\/p>\n\n\n\n<p class=\"has-text-align-justify\">If prices increase over time, then what\u2019s the point of buying it tomorrow if you have the money to buy it now? Because by tomorrow the prices could be higher than they are today, you might as well buy it now.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In our financial lives, we have goals that are time-bound \u2014short-, medium-, and long-term aims. The problem here is that saving money alone for our long-term financial objectives is not enough to keep up with inflation.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Let me give you an example: I was born in 1990; a million PHP during that time is now worth more than 5 million PHP in 2023 (adjusted for inflation). Can you imagine just saving money to reach a million PHP today, then realising that once you reached a million PHP, you wouldn\u2019t even be able to purchase the products and services that that 1 million PHP today could buy decades ago? Whew!\ud83d\ude13<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The buying power of money decreases over time due to inflation, so investing our money for our long-term goals would be the most important strategy to overcome the devaluation of our hard-earned money.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"To_Buy_a_Day_Where_You_Dont_Have_to_Work_for_Money\"><\/span>To Buy a Day Where You Don\u2019t Have to Work for Money <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/4.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10634\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/4.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/4.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/4.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/4.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">People think that having a large salary is the only way to achieve financial independence and security. It is certainly important for us to generate a strong cash flow to support our lives and add leisure on top of it. But then we don\u2019t realise that we\u2019re still trading our time and effort for money. In short, most of us do active work to generate income.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Don\u2019t get me wrong; there is nothing wrong with exchanging time for money or making money with the things that we love to do for the rest of our lives. But then we also must be realistic about the fact that our mind and body are not eternal. As with other living things in this world, our body will get old and deteriorate. Active work can only do so much for us, but once activity declines, so does our ability to generate money.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Learning how to invest and letting our hard-earned money work for us without requiring any physical labour or effort is one of the answers to this inevitable ageing process relating to our financial lives. Money doesn\u2019t get old; it doesn\u2019t need sleep; it doesn\u2019t need food and water; it doesn\u2019t need vacations; and most importantly, it can work 24 hours a day nonstop.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">On top of that, investing is for everyone. You can do whatever you want with your life and career, like start your own business, become a neurosurgeon, strive to become a judge, become the CEO of the company where you are currently working, create the first effective AI robot, write songs, become an artist, and whatnot, and still make your hard-earned money work for you.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In short, you can focus on your career, make money on top of it, and then allocate that portion of money for passive investments. It\u2019s creating two paths to wealth. One with your career, while the other is with your investments.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Creating your own investment is like having a business partner that you can trust; instead of a person, it\u2019s your own money. While you strive hard to take the path and career you want in life, your money is also making money for you on the side without you even exerting too much physical time and effort for it.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">It&#8217;s the best of both worlds. It&#8217;s a pragmatic approach.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"To_Supplement_Our_Savings_as_Saving_Money_Alone_Might_Not_Be_Enough\"><\/span>To Supplement Our Savings, as Saving Money Alone Might Not Be Enough <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-text-align-justify\">It is better to understand this through a scenario. See the image below.<\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/5-1.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10635\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/5-1.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/5-1.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/5-1.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/5-1.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">As shown above, saving money alone will not be enough to attain our financial goals over the long haul. Sure, increasing our income will be of substantial help and could be enough to attain our long-term financial goals, but this can only be true for a small number of people and might not be applicable for all.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/6.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10636\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/6.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/6.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/6.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/6.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">Hmm, to somehow know the answer to the quote above, we need another scenario for this. <\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/7.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10637\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/7.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/7.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/7.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/7.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/8.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10638\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/8.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/8.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/8.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/8.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"\"><span style=\"text-decoration: underline;\"><em>What\u2019s your point in the image above, Evan? All of them reached a million dollars anyway.<\/em> <\/span><\/p>\n\n\n\n<p class=\"has-text-align-justify\">Look closely; there is one person who made a lot of money by just investing a small amount of money consistently over a long period of time (when added all together, it amounts to a small sum of money compared to others, but there is this one person who got more bang for his investment buck because this person invested early).<\/p>\n\n\n\n<p class=\"\">Let me explain this per person.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Mads:<\/strong> She started to invest at 50 years old&nbsp; and invested $3,500 monthly for 15 years, which amounted to $630,000 of her total money invested. This means that she made $370,000 by just investing.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">($1,000,000 goal retirement fund minus $630,000 total money invested = $370,000 money made through investing).<\/p>\n\n\n\n<p class=\"has-text-align-justify\">This is a 58% increase from her total invested capital of $630,000. Not bad!<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Let\u2019s now go to the other person in the example, shall we?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Eyah:<\/strong> She started to invest at 40-years old; she invested $1,500 monthly for 25 years, which amounted to $450,000 of her total money invested. This means that she made $550,000 by just investing.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">($1,000,000 goal retirement fund minus $450,000 total money invested = $550,000 money made through investing).<\/p>\n\n\n\n<p class=\"has-text-align-justify\">This is a 122% increase from her total invested capital of $450,000. That\u2019s more than a double! Absolutely fantastic!<\/p>\n\n\n\n<p class=\"\">Now that you get the idea, I\u2019ll simplify the next two.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Tin:<\/strong> She invested a total of $294,000 for 35 years. She made $706,000 by just investing. A 240% increase\u2014that&#8217;s a threefold increase.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Evan:<\/strong> He invested a total of $189,000 over 45 years. He made $811,000 by just investing. An eye-watering 429% increase in his total capital invested.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">Now we go back again to the question I asked regarding the quote &#8220;The best time to invest was yesterday; the second best is today&#8221;. is this true?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">From a mathematical point of view, the statement above is completely true! But then we are talking about people investing their hard-earned money. Human beings have individual uniqueness and life circumstances, which we must first consider. <\/p>\n\n\n\n<p class=\"has-text-align-justify\">Nevertheless, if a person has the financial capability to invest as early as he or she can, then by all means, he or she should do it as soon as possible because the math is on his or her side.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"HOW_Does_It_Work\"><\/span>HOW Does It Work?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:75%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/xT1R9XWlRXt08xfDX2\" title=\"How does it work?\"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"The_Brain_and_Power_of_Investing\"><\/span>The Brain and Power of Investing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/9.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10652\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/9.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/9.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/9.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/9.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">Compound Interest is the brain and power behind investing.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">If Simple Interest = interest calculated on the initial principal amount<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Then, compound interest = interest calculated on the initial principal amount and accumulated interest of previous periods.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The way I explain this is through a basic mathematical equation.<\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/SIMPLEST-EXPLANATION-of-CI-SI.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10653\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/SIMPLEST-EXPLANATION-of-CI-SI.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/SIMPLEST-EXPLANATION-of-CI-SI.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/SIMPLEST-EXPLANATION-of-CI-SI.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/SIMPLEST-EXPLANATION-of-CI-SI.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">As shown above, we have two columns, one for simple interest (left column) and the other for compound interest (right column).<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In simple interest, the interest we get is based ONLY on the amount of money we placed. This is the kind of interest we get from a bank savings account.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">On the other hand, compound interest is in a different league than its cousin, simple interest. The interest we get from it is based on both the initial amount of money we placed and the previous interest we got. Thus, the longer we use compounding interest to grow our hard-earned money, the larger the growth it will achieve, but only if done correctly.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Let me give you an example scenario to show you the different outcomes of using simple and compound interest. See the image below.<\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/10.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10654\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/10.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/10.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/10.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/10.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify has-white-color has-accent-background-color has-text-color has-background has-link-color wp-elements-68c6022ab014e0587dcbcd70978ab582\">\ud83d\udcddNOTE: Inflation is not yet included in the returns above. If it is included, then $12,000 saved under the mattress would be worth less (in terms of buying power) after 35 years.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Investing_Early_is_Crucial\"><\/span>Investing Early is Crucial<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/11.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10655\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/11.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/11.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/11.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/11.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">You have to remember that you should, as much as possible, secure first your personal financial core (cash flow management, emergency and rainy-day funds, life and medical insurance, and debt management).<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"There_is_NO_Perfect_Way_to_Invest_Your_Hard-Earned_Money\"><\/span>There is NO Perfect Way to Invest Your Hard-Earned Money<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/12.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10656\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/12.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/12.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/12.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/12.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">A breadwinner considers the welfare of his\/her family when making financial decisions.<\/li>\n\n\n\n<li class=\"\">A single mom is doing everything by herself.<\/li>\n\n\n\n<li class=\"\">A soon-to-be father changes his priorities in his career.<\/li>\n\n\n\n<li class=\"\">A loved one died.<\/li>\n\n\n\n<li class=\"\">An individual resigned from his 9-to-5 job and started his own small business.<\/li>\n\n\n\n<li class=\"\">A person was laid off from his job.<\/li>\n\n\n\n<li class=\"\">A couple recently migrated to another country.<\/li>\n\n\n\n<li class=\"\">An individual was newly diagnosed with a disease.<\/li>\n\n\n\n<li class=\"\">An employee got the dream position she has always wanted.<\/li>\n\n\n\n<li class=\"\">A son recently took in his elderly parents to take care of them.<\/li>\n\n\n\n<li class=\"\">A married couple will be retiring in 2 years.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">Your life is unique, you have your own successes, failures, fulfilments, hardships, advantages and disadvantages, and you have your own angels and demons. <\/p>\n\n\n\n<p class=\"has-text-align-justify\">The perfect financial approach to handling your money and investing it is the one that perfectly syncs with your personality and priorities in life. It\u2019s not about how other people handle and invest their money; it\u2019s about you and your family. That\u2019s how you must think about it. #beselfaware<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Learn and then apply the basic knowledge and principles of finance and investing to your own life, tailoring them to the financial life that you want for yourself and your family.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"WHEN_to_Invest_Things_to_Consider\"><\/span>WHEN to Invest? Things to Consider<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:56%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/3o6ozlXnM5JSgopPPy\" title=\"When\"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Be_Aware_of_Your_Financial_Situations_your_Financial_Responsibilities\"><\/span><strong>Be Aware of Your Financial Situations, your Financial Responsibilities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-text-align-justify\">This again boils down to personal finance. The best way to explain this is by showing you the financial planning pyramid. (See image below).<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"483\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?resize=750%2C483&#038;ssl=1\" alt=\"\" class=\"wp-image-10685\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?resize=1024%2C660&amp;ssl=1 1024w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?resize=300%2C193&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?resize=768%2C495&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?resize=600%2C387&amp;ssl=1 600w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Blog-6-part-2-financial-planning-pyramid.png?w=1067&amp;ssl=1 1067w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">What we must focus on first is the wealth protection side of personal finance.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Firstly, cash flow management. It is finding our first source of income, which is the base of our finances. Everyone started somewhere, and that somewhere is usually through employment; there are other ways than this, such as freelancing and starting a business. Realistically, the majority of people start with getting a job, and from there, we build our finances from the bottom up.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Secondly, under wealth protection, is risk management. Here comes the emergency fund, the rainy day fund, and life and medical insurance.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"xiKt9KFlBE\"><a href=\"https:\/\/elmads.com\/?p=339\">Saving Money for Safety and Security<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Saving Money for Safety and Security&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=339&#038;embed=true#?secret=m4AwnPWxmL#?secret=xiKt9KFlBE\" data-secret=\"xiKt9KFlBE\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">Other people argue that some of these are not important and should not even be prioritised. Though I don\u2019t completely agree with those who have this view, I do understand where they are coming from.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">You see, emergencies and unpredictable negative life-changing events have a low chance of happening to some people, but they are not completely risk-free. This means that such an event in our life can still occur and this is where the principles of personal finance covers us. It\u2019s financially protecting us when emergencies and unexpected events in our lives happen.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">It is always important to be ready for every situation. Always be prepared, resilient, and antifragile.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"\">Like the weather, life is unpredictable,<\/p>\n\n\n\n<p class=\"\">Prepare for the worst, even when the situation is amicable.<\/p>\n\n\n\n<p class=\"\">The rain will come, it&#8217;s just a matter of time,<\/p>\n\n\n\n<p class=\"\">But with preparation and skill, your future will shine.<\/p>\n\n\n\n<p class=\"\">Don&#8217;t be fooled by the sun&#8217;s gentle rays,<\/p>\n\n\n\n<p class=\"\">For storms may come and last for days.<\/p>\n\n\n\n<p class=\"\">Learn to weather the monstrous storm,<\/p>\n\n\n\n<p class=\"\">And emerge stronger, better, and at your best.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-pullquote has-border-color has-black-border-color has-black-color has-text-color has-background has-medium-font-size\" style=\"border-width:2px;border-radius:75px;background:radial-gradient(rgb(255,245,203) 0%,rgb(182,227,212) 64%,rgb(51,167,181) 100%);font-style:normal;font-weight:500\"><blockquote><p>\u201cIt\u2019s better to be a warrior in a garden, than a gardener in a war.\u201d <\/p><cite>\u2014Miyamoto Masushi<\/cite><\/blockquote><\/figure>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-justify\">On top of this, we also must investigate our debts (if we have any) and learn how to manage them.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Debt is a serious financial problem for everyone. It is literally a hole in our finances that can sink our ship if not handled properly.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">It\u2019s hard to live today without going into debt, I do understand that, so understanding it and managing it will be of paramount importance in our financial journey.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"\">&#8220;Pay off your debt first. Freedom from debt is worth more than any amount you can earn.&#8221; <\/p>\n<cite><em>\u2014Mark Cuban<\/em><\/cite><\/blockquote>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"3TbOYgJPb9\"><a href=\"https:\/\/elmads.com\/?p=3075\">Debt is not Good, nor Evil<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Debt is not Good, nor Evil&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=3075&#038;embed=true#?secret=aCGjIvQDqy#?secret=3TbOYgJPb9\" data-secret=\"3TbOYgJPb9\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"qPjiJ47NRH\"><a href=\"https:\/\/elmads.com\/?p=3077\">Debt Free Journey<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Debt Free Journey&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=3077&#038;embed=true#?secret=nqg2KkLukz#?secret=qPjiJ47NRH\" data-secret=\"qPjiJ47NRH\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"has-text-align-justify\"><strong><em>Is that everything, Evan?<\/em><\/strong> Well, not really, because we must consider our priorities in life. Everything that we want and need in the future will most likely require money, and planning beforehand is of the utmost importance.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Recall that I explained in this blog\u2019s portion <a href=\"#investing-is-different\">&#8220;<strong>Investing is Different from Saving Money&#8221;?<\/strong><\/a> where I base my money allocation depending on my goals and when I aim to achieve them. That\u2019s one of the things we need to consider as well.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">This is where knowing your why is important.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Know_Your_Why\"><\/span>Know Your Why<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<blockquote class=\"is-style-default wp-block-quote has-text-align-left is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"\">\u201cWithout goals and plans to reach them, you are like a ship that has to set sail with no destination\u201d <\/p>\n<cite><em>\u2014 Fitzhugh Dodson<\/em><\/cite><\/blockquote>\n\n\n\n<p class=\"has-text-align-justify\">Knowing your why is also knowing what investment approach will be suitable to reach your whys. But before we focus on what method we need to use; we should first think of our \u201cWhys\u201d.<\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/13-2.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10699\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/13-2.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/13-2.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/13-2.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/13-2.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Know_Your_Risk_Tolerance\"><\/span>Know Your Risk Tolerance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/14-1.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10701\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/14-1.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/14-1.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/14-1.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/14-1.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-justify\">Once you have your whys, you then need to be aware of your own risk tolerance. The level of risk you can manage and the types of risk (this is dependent on your chosen asset class and investment vehicle)<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">A measure of how much risk you can handle as an investor<\/li>\n\n\n\n<li class=\"\">Factors that determine your risk tolerance\n<ul class=\"wp-block-list\">\n<li class=\"\">Amount of money you can lose.<\/li>\n\n\n\n<li class=\"\">Your time frames<\/li>\n\n\n\n<li class=\"\">Emotional ability to handle risk.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li class=\"\">Determines what kinds of investments you should pursue.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Over time, as you get used to investing and learn more about it, you&#8217;ll be less risk-averse than when you initially started your investment journey.<\/p>\n\n\n\n<p class=\"\">Learn, apply, and dip your toes first in the water, then eventually take the plunge.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Always remember this: <strong>There is no perfect way to invest. The investment approach you choose must always fit your own financial situation and objectives.<\/strong><\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"WHERE_to_Invest\"><\/span>WHERE to Invest?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-text-align-justify\">Have you ever wanted to try to invest but then, when you do your own research, you just find a million pieces of information about it that confuse you more?<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Are you still having the same problem today? I bet you&#8217;re having headaches now from just taking in all the information in the investment world. This space is so broad that reading a single book about it won\u2019t be enough.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">After you understand the WHAT, WHY, HOW, and WHEN of investing, it is the WHERE that will take a chunk of your time in making your own investment approach decision.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">And to do that, we need to first grasp the basic information about the basic asset classes in the investment world. It is by understanding them that we will find a way to utilise each asset class to fit our own personalities, life circumstances, and financial goals.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"The_5_Basic_Asset_Classes\"><\/span>The 5 Basic Asset Classes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"aligncenter size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/16.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10716\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/16.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/16.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/16.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/16.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"pODc4OePSx\"><a href=\"https:\/\/elmads.com\/?p=750\">The 5 Basic Asset Classes<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;The 5 Basic Asset Classes&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=750&#038;embed=true#?secret=DcgVgy6oeJ#?secret=pODc4OePSx\" data-secret=\"pODc4OePSx\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Bonds\/Money Market:<\/strong> If you take this asset, then you\u2019re lending your money to either the government or a corporation. This is a debt security \u2014a formal legal agreement and certificate that has monetary value and can be traded \u2014 where governments and corporations borrow money to the public.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"\">&#8220;Debt is one person&#8217;s liability but another person&#8217;s asset.&#8221; <\/p>\n<cite><em>-Paul Krugman<\/em><\/cite><\/blockquote>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"4pp8qznTJw\"><a href=\"https:\/\/elmads.com\/?p=1337\">Bonds Asset Class: Making Money From Debt Of Others<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Bonds Asset Class: Making Money From Debt Of Others&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=1337&#038;embed=true#?secret=EGsgIzQQgF#?secret=4pp8qznTJw\" data-secret=\"4pp8qznTJw\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Stocks:<\/strong> An asset class where once you own stocks and shares of a particular publicly listed company, you then become a part owner or shareholder of it. If the company\u2019s businesses and its management do well over time, so does your investment in them.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"FQeLbU0hNh\"><a href=\"https:\/\/elmads.com\/?p=1548\">How Shares are made and how the Stock Market works<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;How Shares are made and how the Stock Market works&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=1548&#038;embed=true#?secret=CKzuQpe3Gv#?secret=FQeLbU0hNh\" data-secret=\"FQeLbU0hNh\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Real Estate:<\/strong> the asset class that everyone in the world knows and is mostly understood better than others. This is the most popular and oldest asset class in the world. It is the ownership of land and properties.<br><br>It is a no-brainer investment. Why? Well, it\u2019s as simple as this, we have limited land with an ever-growing population worldwide. Supply and demand mechanics at its core.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Commodities:<\/strong> All things we need in life are derived from commodities. Food, clothing, our home, and transportation, to name a few, when you take this asset class, you\u2019re pegging on a certain commodity to do well over time, though this is the asset class that is heavily tilted on supply and demand. A little change on the supply or demand sides of a commodity can spell substantial gains or losses for its owners.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-justify\">Then outside of these traditional assets are the alternative assets such as cryptocurrency, art, luxury watches and other more.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"vhfJxVDqFE\"><a href=\"https:\/\/elmads.com\/?p=5665\">The Alternative Assets<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;The Alternative Assets&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=5665&#038;embed=true#?secret=m9dc5H0OQC#?secret=vhfJxVDqFE\" data-secret=\"vhfJxVDqFE\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-text-align-justify\">There is indeed a lot of information, and for you to be able to find which one is the most suitable investment vehicle for you will require your own due diligence in understanding each asset class. But not everyone is willing to take the time to understand the nuances of investing and learn more about it on a deeper level.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The question that I always encounter from everyone who wants to invest but doesn&#8217;t want to exert too much effort and time into it is, &#8220;What is the simplest method that I can take to make my hard-earned money work for me and is also beginner-friendly?&#8221; And my answer to this question has always been consistent. It&#8217;s through <strong>PASSIVE INDEX FUND INVESTING.<\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Where_as_beginners_can_we_actually_invest\"><\/span>Where, as beginners, can we actually invest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-text-align-justify\">So, let&#8217;s say you already have a good income flow from a stable job, as a freelancer, or from having your own business. You have also built your emergency fund and some rainy-day funds. Have secured your own life and medical insurance and have little to no debt. And finally, you are starting to plan to start investing, with the knowledge of the WHAT, WHY, HOW, and WHERE of investing, but don&#8217;t know in what investment vehicle to start putting your hard-earned money that you&#8217;ll not need within a decade or more. Then just take the simple passive index fund investment approach.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">There are various pooled fund types of investment vehicles, such as investment unit trust funds (UITFs), closed-ended funds, and variable life insurance (VUL), which is a mix of investments plus life insurance, to name a few. There are differences between each type of fund, but all of them possess a fund manager who makes the investment decisions on behalf of the fund&#8217;s investors.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">So why index funds? low-cost fees, it copies a certain index performance, it&#8217;s passive, it takes away the hassle of making investment decisions, analysis, and risk management, to name a few, and you&#8217;re betting your hard-earned money on the success of either the economy of a country, a sector, an industry, a region, or the world \u2014 depending on what the index fund specifically invests in.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"6SDm4Ar46x\"><a href=\"https:\/\/elmads.com\/?p=1952\">Mutual Funds<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Mutual Funds&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=1952&#038;embed=true#?secret=qOHoNJdBIP#?secret=6SDm4Ar46x\" data-secret=\"6SDm4Ar46x\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<div class=\"wp-block-jetpack-slideshow aligncenter\" data-effect=\"slide\"><div class=\"wp-block-jetpack-slideshow_container swiper-container\"><ul class=\"wp-block-jetpack-slideshow_swiper-wrapper swiper-wrapper\"><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-10713\" data-id=\"10713\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/17.png?resize=750%2C629&#038;ssl=1\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/17.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/17.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/17.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/17.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-10714\" data-id=\"10714\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/18.png?resize=750%2C629&#038;ssl=1\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/18.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/18.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/18.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/18.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/figure><\/li><\/ul><a class=\"wp-block-jetpack-slideshow_button-prev swiper-button-prev swiper-button-white\" role=\"button\"><\/a><a class=\"wp-block-jetpack-slideshow_button-next swiper-button-next swiper-button-white\" role=\"button\"><\/a><a aria-label=\"Pause Slideshow\" class=\"wp-block-jetpack-slideshow_button-pause\" role=\"button\"><\/a><div class=\"wp-block-jetpack-slideshow_pagination swiper-pagination swiper-pagination-white\"><\/div><\/div><\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"629\" src=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/19-1.png?resize=750%2C629&#038;ssl=1\" alt=\"\" class=\"wp-image-10717\" srcset=\"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/19-1.png?w=940&amp;ssl=1 940w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/19-1.png?resize=300%2C251&amp;ssl=1 300w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/19-1.png?resize=768%2C644&amp;ssl=1 768w, https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/19-1.png?resize=600%2C503&amp;ssl=1 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-elmads wp-block-embed-elmads\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"qMdif724Tb\"><a href=\"https:\/\/elmads.com\/?p=9115\">How to Spot a Legitimate and Safe Investment Broker<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;How to Spot a Legitimate and Safe Investment Broker&#8221; &#8212; elmads\" src=\"https:\/\/elmads.com\/?p=9115&#038;embed=true#?secret=H97EMspHYr#?secret=qMdif724Tb\" data-secret=\"qMdif724Tb\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"\">I walk the talk. A significant portion of my salary is invested in a Passive Index Mutual Fund under Vanguard Group. I&#8217;ve made several blogs relating the Vanguard group and also the breakdown of my 2022 Investment portfolio. See the blog links down below. <\/p>\n\n\n\n<p class=\"\"><a href=\"https:\/\/elmads.com\/?p=9606\" target=\"_blank\" rel=\"noreferrer noopener\"><em><span style=\"text-decoration: underline;\">\ud83d\udce3 https:\/\/elmads.com\/?p=9606 &#8211; 2022 Portfolio Performance \u201cInto the Global Investment World\u201d<\/span><\/em><\/a><br><em><span style=\"text-decoration: underline;\"><a href=\"https:\/\/elmads.com\/?p=5232\" target=\"_blank\" rel=\"noreferrer noopener\">\ud83d\udce3 https:\/\/elmads.com\/?p=5232 &#8211; How to open an Index Fund Investment Account \u2013 Vanguard<\/a><\/span><\/em><br><em><span style=\"text-decoration: underline;\"><a href=\"https:\/\/elmads.com\/?p=5265\" target=\"_blank\" rel=\"noreferrer noopener\">\ud83d\udce3 https:\/\/elmads.com\/?p=5265 &#8211; Vanguard UK \u2013 The FTSE Global All Cap Index Fund<\/a><\/span><\/em><br><em><span style=\"text-decoration: underline;\"><a href=\"https:\/\/elmads.com\/?p=5435\" target=\"_blank\" rel=\"noreferrer noopener\">\ud83d\udce3 https:\/\/elmads.com\/?p=5435 &#8211; Vanguard UK\u2019s Ready-Made-Portfolios<\/a><\/span><\/em><\/p>\n\n\n\n<figure class=\"wp-block-pullquote has-black-color has-text-color has-background has-medium-font-size\" style=\"border-width:1px;border-radius:52px;background:radial-gradient(rgb(255,203,112) 14%,rgb(199,81,192) 75%,rgb(65,88,208) 100%);font-style:normal;font-weight:700\"><blockquote><p>&#8220;The best thing money can buy is financial freedom&#8221;<br>In short, it buys you more TIME.<\/p><cite>-Rob Berger<\/cite><\/blockquote><\/figure>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-right\"><strong>Knowledge is my Sword and Patience is my Shield,<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-right\"><strong>Evan Louise Madri\u00f1an \/ elmads<\/strong><\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:4%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/5luFpAvB8VNwtPfLyA\" title=\"disclaimer\"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<p class=\"has-text-align-justify\"><strong><em>This blog is for informational purposes only and not a Financial Recommendation. Not all information will be accurate. Consult an independent financial professional before making any major financial decisions.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by elmads Introduction Investing is a word that we&#8217;ve been constantly encountering in today\u2019s information age. A word that has always been heavily marketed by the financial industry but is often misunderstood by people. It is so broad that people don&#8217;t even know where to start because there are multiple [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","nf_dc_page":"","om_disable_all_campaigns":false,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[24],"tags":[],"class_list":["post-10619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/elmads.com\/wp-content\/uploads\/2023\/05\/Untitled-design-17-1.png?fit=1200%2C675&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/posts\/10619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/elmads.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10619"}],"version-history":[{"count":5,"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/posts\/10619\/revisions"}],"predecessor-version":[{"id":12216,"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/posts\/10619\/revisions\/12216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/elmads.com\/index.php?rest_route=\/wp\/v2\/media\/10645"}],"wp:attachment":[{"href":"https:\/\/elmads.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/elmads.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elmads.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}