Should you focus on savings or income generation?

Should you focus on savings or income generation?

This question is known and debated amongst, by several different people not only in the financial world but in life in itself. The reality behind this question might be strange to some individuals as they might choose either of the two. Some readers might have already answered this question in their minds, based on their lifestyle and experiences.
Several types of research have led us to find out that attracting wealth has a lot to do with spending habits. When you earn less, there is a tendency to spend in that way, knowing that there is less money to fall back onto, so saving is maximised. The habit that is seen in most people who start earning more is that they begin to change their lifestyle then and there. They change their spending habits following what they make, so they are left with the same amount of money as before and the same situation. Less money to fall back onto and less money saved.
However, it usually does not end up in this for most of the situation that we encounter. Typically, the purpose for people to earn more money is to upgrade their lifestyle. Also, to live a more lavish life that they might have imagined to have when they just started up with a career. Short term luxuries seem fantastic to all of us. However, we need all that money in other specific situations; we usually lack it and fall into a loophole of a money trap problem. There are several things that our minds cannot foresee amid the excitement of earning more. This could include health emergencies, financial emergencies, a sudden loss in business, a sudden loss in an investment made, a lost job or even a natural disaster.
It’s not about earning more or spending less. It’s about earning more AND spending less.
If your goal is to attract sustainable wealth, you need to be doing both.
It is true. Your search towards earning more certainly shouldn’t stop, but you need to make sure that your spendings remain intact. The only way to maximise your earning is if you save a lot of what you earn. Depending on where you are in life, you can begin to think about the long term and how these savings themselves can help you make more money. What you earn adds to what you have already accumulated. It might be exciting to see that much growth in terms of money in your account, but a lot of things need to be considered to KEEP that money.
Investing is one of the most powerful tools that can allow you to accumulate wealth over a period of time. It is an excellent long term solution even when it comes to sudden changes in one’s life since the passive income can be something you can fall back on when it is needed. You can save what you make out of the investment and start building a strong portfolio for your future. As mentioned before, nothing can be predicted, and anything can happen. A strong portfolio is one that is diversified, meaning that returns are generated from several places instead of just one. This allows you to narrow your investment risks and make use of your profits if one investment supposedly fails.
Working smart in terms of both earning and saving can save you and your family from a lot of trouble. It can even set an example for those around you, and you may be able to inspire others into adapting to a healthy, long-term mindset. In this way, you won’t only be helping yourself, but also indirectly guiding the others around you to be better, smarter people.
Do you think one is better than the other? Or, do you believe that earning and saving are both essential aspects of getting through the maze of finances?

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Women in the Investment Market

Women in the investment market

Not all heroes wear capes — but women investors should undoubtedly do so. Before we explore all the new arising opportunities for women in finance, it would only be fair to take a look back at the history of women in finance. Women have often been overlooked with regards to positions of power. There has also been an evident early history of discrimination in the industry.
History
Geraldine Weiss, an investment advisor, was one of the first women to make her name in the market. She learned everything about finance and investing from reading, research, listening to her parents’ conversations and studying finance at college. Investment firms were not keen on hiring her. Then, being a secretary was more relevant as a “womanly” profession, than being a financial professional. Despite her knowledge and studies, she was not able to attain a job within the sector. It was only in 1966, by the age of 40, that she decided to start her investment newsletter. Since she didn’t want to involve gender discrimination with what she did, she always ended her newsletters with “G. Weiss” rather than her name. When she gained a sustained amount of success concerning her newsletter, she revealed her identity as Geraldine. She further went on to publishing her newsletter “Investment Quality Trends”, for 37 years until she retired in 2003. The newsletter still exists and still follows Weiss’s strategy.
This has a lot to do with why there is such a big gap between women and investments. The main question is, why don’t women actively invest in their financial security?
Although in recent days, things have been notably more smooth, it is sometimes seen that financial professionals treat women differently. They are even less likely to listen to investment ideas from women and are also expected to push women out of business conversations. This might not be intentional, but it can be one of the most predominant reasons as to why women don’t try in the first place. Women have more detailed factors to their investments. For a male advisor, this might be difficult to understand. This is known because 29% of women prefer female advisors since they can relate to their reasonings more.
What does progress look like?
The fact that financial professionals and companies are becoming more comfortable with accommodating more women investors, there have been several successful investments made by women. Some even generating more returns than men usually would from their investments. The growing advancement in more women-friendly financial improvements opens new opportunities for women, as more come forward with new ideas in terms of businesses and ideas. According to Forbes, 96% of women have shared responsibility for their family’s financial decisions. It shows an immense amount of advancement in terms of the discriminating of the past and the evolving open-mindedness of the present.
Even though women investors are less in number, they are proved to be much more successful in terms of their investments due to the fact that they think about money differently than men. The transition from traditional “budget makers” to “investment experts” wouldn’t be too far off, since women have historically managed finances within the household. The success rate should urge and inspire more women to step their foot forward to step onto the investment ladder to reach for their financial independence. We at Smart Crowd, are part of a movement where educating and empowering women to take control of their finances is normalised, as we strive to make investments accessible to everyone, regardless of their gender. Education is key to shifting the mindset and perception of women as investors.
"You can only truly become accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing and then do them so well that people can't take their eyes off you."
Maya Angelou

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Are you greedy for wanting money?

Are you ambitious or greedy for wanting more money?

"The difference between greed and ambition is a greedy person desires things he isn't prepared to work for"
Habeeb Akande
Assuredly, there has been a distinct preconception about the rich. It is either that they are greedy beyond belief, or merely insensitive to another person’s needs – in other words; people classify them to be selfish. The people who have built up a decent amount of wealth have done it over a long period. They struggle to balance their lifestyle with the fact that they also need to build a future alongside their expenses.
We would be lying to ourselves if we said that we have never hoped or for earning a large sum of money to fulfil some of our dreams. Wishing for something does not make you greedy; in fact, it makes you ambitious. When you wish for a good future ahead of you, the goals you set for yourself require you to accomplish certain things so you can finally get there. Even if the planning is frantic and all sorts of excited, driven by adrenaline when it comes to visualizing your dream, it still makes you take action. The strong ambition would then attract motivation. When others see this kind of ambition and growing motivation, they go on to naming this ambition as greed and will start perceiving you as a greedy person.
Realistically, money doesn’t create who you are. It can be the tool to underline who you are as a person, as an individual. The intention behind your earnings is what drives the reason WHY you need the money, or why you would like to build a better income for yourself. If your purpose is to create a long term wealth which can last you and your family without having to struggle in the future, this isn’t greed at all. This is probably the most practical way to live your life.
You should certainly not feel bad for wanting to earn and create opportunities for yourself, whether it is with regards to your career or investment. If you make money with something good in mind, then it will help you with what you had in mind. If you earn money with something sketchy in mind, it will become a tool that feeds into that particular thought process.
When you can’t take care of yourself, it is beyond impossible to take care of others in the process of doing so. When you take care of yourself, earn, work towards improving your potential, it something that doesn’t even come close to greed. This is what greedy actually looks like:
When you get blinded by money, eventually forgetting the value of those around you and the people who are important to you. Greed becomes evident when you solely think about acquiring more and more money — with no intention to make that money work in a way that it is helping others. You CAN want money without being greedy, and we are here to reaffirm that wanting more money does NOT make you greedy. As long as you remember that money can be a vital tool that can be used to help yourself and others in the long run, wanting to have more of it is perfectly sane.
With this in mind, don’t be afraid to save. It is your future and something that you need to look after. It is not someone else’s business to interfere with the kind of goals you have based on your personal challenges or beliefs. The best thing would be not only saving alone but investing, even if it is in the smallest amounts. The way your money will initiate a process where you earn from your investments will help you secure yourself even further than just having a successful career or a job.

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