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A BASIC list of money-making, saving, and investing tips #investing #lifebasics #moneybasics #management

Updated: Jun 3

This document offers a general guide to navigating your financial understanding. We'll cover various strategies for making money, saving effectively, and investing for the future. Whether you're a seasoned investor or just starting your financial journey, this guide provides valuable tools and information to help you achieve your goals.




Money Making Tips

  • Start a YouTube channel. If you have a creative or informative side, you can start a YouTube channel and share your videos with the world. Once you have enough subscribers and views, you can start to monetize your channel through ads.

How to start a YouTube channel: Choose a topic that you're passionate about. - Create high-quality videos that are well-edited and engaging. - Promote your channel on social media and other platforms. - Be patient and consistent. It takes time to build a successful YouTube channel.
How to monetize your YouTube channel: - Once you have enough subscribers and views, you can start to monetize your channel through ads. - You can also make money through YouTube's Partner Program, which allows you to sell merchandise, run paid promotions, and earn money from Super Chats and Super Stickers.
  • Freelance. If you have skills that are in demand, you can freelance on platforms like Upwork or Fiverr. This is a great way to make money on your own terms.

How to freelance: - Identify your skills and expertise. - Create a profile on a freelancing platform. - Bid on projects that you're interested in and qualified for. - Deliver high-quality work on time and within budget. - Get good reviews from your clients.
  • Sell your stuff. If you have stuff you don't need anymore, you can sell it online or at a garage sale. This is a great way to make some extra cash.

How to sell your stuff online: - Take clear and high-quality photos of your items. - Write accurate and descriptive product listings. - Price your items competitively. - Promote your listings on social media and other platforms.
  • Take online surveys. There are a number of websites that will pay you to take online surveys. This is a quick and easy way to make some extra money.

How to take online surveys: - Sign up for a few survey websites. - Complete your profile information so that you're matched with surveys that are relevant to you. - Take surveys when you have time. - Be honest in your answers.



Money Saving Tips

  • Create a budget. The first step to saving money is to create a budget. This will help you track your income and expenses so you can see where your money is going.

How to create a budget: - Track your income and expenses for one month. - Identify your fixed expenses (e.g., rent, car payment, insurance). - Identify your variable expenses (e.g., food, entertainment, clothing). - Set spending limits for your variable expenses. - Track your spending and adjust your budget as needed.
  • Cut back on unnecessary expenses. Once you have a budget, you can start to cut back on unnecessary expenses. This could mean things like eating out less, canceling unused subscriptions, or shopping around for cheaper deals.

How to cut back on unnecessary expenses: - Review your budget and identify areas where you can cut back. - Make a list of things you can cut back on, such as eating out, going to the movies, or buying new clothes. - Prioritize your spending and make sure you're spending money on the things that are most important to you. - Find creative ways to save money, such as cooking at home, taking public transportation, or carpooling.
  • Set financial goals. Once you've cut back on your expenses, you can start to set financial goals. This could be anything from saving for a down payment on a house to paying off debt.

How to set financial goals: - What do you want to achieve with your money?
  • What do you WANT your money to do for you?  Dream vacation? New car? Down payment on a house? Write it down!

  • How much will it COST?  Research what your goal needs and set a realistic savings target.

  • Break it DOWN!  Divide your total cost by the time you want to reach your goal. This is how much you gotta save each period (week, month, year).

  • Automate it!  Set up automatic transfers from your checking to your savings account. Out of sight, out of spend!






Investing 101: A Beginner's Guide

Investing can be a powerful tool to grow your wealth over time, but it's important to start with a solid foundation. Here are some essential investing tips to keep in mind:

1. Know Your Goals:

  • What are you saving for?  Retirement, a down payment on a house, a dream vacation?  Your goals will determine your investment timeline and risk tolerance.

2. Understand Risk & Reward:

  • Higher-risk investments generally offer the potential for higher returns, but also come with the possibility of greater losses.

  • Lower-risk investments offer steadier, but often lower returns.

3. Invest for the Long Term:

  • Don't expect to get rich quick. The stock market can be volatile, but history shows that over time, it tends to trend upwards.

4. Diversification is Key:

  • Don't put all your eggs in one basket! Spread your investments across different asset classes like stocks, bonds, and real estate to mitigate risk.

5. Start Small & Invest Regularly:

  • You don't need a huge sum to start.  Even small, regular contributions can add up significantly over time thanks to compound interest.

6. Educate Yourself:

  • There's a wealth of information available online and through libraries. The more you know, the more confident you'll be making informed decisions.

7. Consider Fees:

  • Investment fees can eat into your returns. Do your research and choose low-cost options like index funds.

8. Don't Panic Sell:

  • Market downturns are inevitable. Stick to your investment plan and avoid selling out of fear.

9. Rebalance Regularly:

  • Your asset allocation might change over time. Rebalance your portfolio periodically to maintain your desired risk profile.

10. Seek Professional Help:

  • If you're unsure where to start, consider consulting a financial advisor. They can help you create a personalized investment plan.

Bonus Tip:  Be patient and disciplined! Building wealth through investing takes time and consistency.



 


Investment Terminology for Beginners:

Basics:

  • Asset: Anything with economic value, like stocks, bonds, or real estate.

  • Portfolio: A collection of your investments.

  • Diversification: Spreading your investments across different assets to reduce risk.

  • Risk Tolerance: Your comfort level with potential losses.

  • Return: The profit (or loss) you make on an investment.

  • Compound Interest: Interest earned on both the initial investment and previous interest payments.

Stocks:

  • Share: A unit of ownership in a company.

  • Stock Market: Where stocks are bought and sold.

  • Dividend: A portion of a company's profit paid to shareholders.

  • Stock Price: The current price of a share.

  • Market Capitalization: The total value of all a company's outstanding shares.

  • Bull Market: When stock prices are rising.

  • Bear Market: When stock prices are falling.

Bonds:

  • Loan: Borrowing money with a promise to repay it with interest.

  • Bond: An IOU issued by a government or company.

  • Yield: The return on a bond, expressed as a percentage.

  • Maturity Date: The date when the bond issuer must repay the principal.

  • Investment Grade: Bonds considered low risk by credit rating agencies.

  • Junk Bond: Bonds are considered high risk, offering higher potential returns.

Mutual Funds & ETFs:

  • Mutual Fund: A professionally managed pool of investments.

  • ETF (Exchange-Traded Fund): A basket of assets traded on a stock exchange.

  • Expense Ratio: The annual fee charged by a mutual fund or ETF.

  • Index Fund: Tracks a specific market index, like the S&P 500.

  • Actively Managed Fund: A fund where a manager chooses investments.

Financial Ratios:

  • P/E Ratio (Price-to-Earnings Ratio): Stock price divided by earnings per share.

  • Debt-to-Equity Ratio: A measure of a company's financial leverage.

  • Profit Margin: A measure of a company's profitability.

Other:

  • Broker: An individual or firm that helps you buy and sell investments.

  • Financial Advisor: A professional who helps you create and manage your investment plan.

  • IRA (Individual Retirement Account): A tax-advantaged retirement savings account.

  • 401(k): Employer-sponsored retirement savings plan with potential tax benefits.

Remember: This is just a starting point. Researching and understanding any investment is important before putting your money in it. Consider talking to a financial advisor for personalized advice.


Everyone's financial journey is different.  These are just tips to get you started. Stay tuned for more 'general knowledge' coming your way!


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