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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Financial News; Hit or Miss?

Financial News; HIT OR MISS?

What kind of financial news do you pay attention to? CNBC, Fox Business Network, or do you get your financial dose from reading the Wall Street Journal?
If you’re into any of those, more power to you. What we have sourced from “The Simple Dollar”, is that people keep track of the news for a few reasons. You’re either trying to learn something or trying to build up a more informed opinion about an issue. Investments are an aspect of your life that should be based on your personal and financial conditions and financial news does not help with any of that. News should be just taken as news, rather than allowing the news to influence you into making important life decisions.
Let’s look at news reporting in general. Headlines usually pick out the highlight of the event reported and turn it into a single catchy statement. This is often to draw attention, and realistically, we wouldn’t be able to tell if the event was that big of a deal because we weren’t there ourselves. We’re trusting a source that only provides us with the highlights, but the factual details for that particular event are usually found much later. Financial news does something similar. Since the market fluctuates so much, there is only a limited amount of information that can be accurately shared with a news source, without the nitty-gritty.
It is a significantly lousy idea to take financial action on anything without having factual information. Based on your personal needs, an immense understanding needs to be developed. why that action is being taken from your end. While acquiring education about financial matters, it is important that you have more of a substantially accurate source of information. Rather than reaching for news that is intended for attention-grabbing, it would be wiser to grant your attention to something more educating.
If financial news can’t be an accurate source, then what would be?
Books.
One of the main things that you can use to educate yourself is by reading books. Based on what you’re looking for, this would be a book with regards to financial education. However, you would still have to do some research about the author of the book you are reading. You need to know the authority the author had to write and publish the book. If the figure is authoritative enough to write a book about finance, then it is most likely a reliable read for you to source your financial education from.
Research reports by different organisations.
Most financial organisations work on yearly reports based on the trends that they might have seen, or if they have noticed a new change in the system. They also conduct studies on different samples of people, which makes it more accurate since the data is recorded from real users and based on their experience. These reports contain great detail and are lovely with regards to statistical analysis and for you to come up with your general summary.
Financial blogs geared toward financial education.
Several bloggers write for the sole purpose of wanting to educate their readers. Rationally, anyone can indeed become a blogger, and anyone can put up a blog about anything. Once again, it is essential to recognise the organisation and source of where it is coming from.
Personal research and your financial plan.
These things go in a flow. After you have attained all the information from reading books, reports, updates, getting ahead with your research, your plan comes into being. Your financial success depends on how diligent you are with following the plan on your long term investment goals. These plans and decisions would be based on things that are much more concrete rather than just confusing yourself. Financial news can be a platform where information might be opinionated or inaccurate.
“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.”
Stevel Jobs
We certainly don’t want to promote the fact that financial news is useless, as it does have its credits. Financial education has to start from somewhere and you should use these news outlets to remain informed. However, as with most things you read online, take the news with a grain of salt and don’t allow it to be the sole reason for your future investment decisions.

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