Category: Personal finance

Tips from a Money Coach: a Talk over Coffee with Debbie Katzav

In times when the lockdown is slowly being lifted, life is more confusing than usual. From a financial perspective, the global pandemic brought us new challenges. The good news is that we now have time to reflect on what is happening to our personal finances.

Experts note that when the situation gets uncertain, people should not rush to make big decisions or make hasty changes in their financial pictures. Seeking professional financial advice might be a useful step to help. 

Having that in mind, we have decided to talk with the financial coach Debbie Katzav and share her tips on how to manage personal finances in a time of global crisis. 

We’ve met with Debbie by video call over morning coffee. She inspired us immediately with her vivid energy and positive attitude. Here are the moments from our talk.

Debbie, could you please introduce yourself? What is your job?

My name is Debbie Katzav. I live in the center of Israel, just north of Tel Aviv. Officially, my title is Personal Finances Advisor. It is also known as a Money Coach in certain countries. 

Basically, what I do is I guide people – it can be singles, couples, or small business owners – towards understanding, managing, and organizing various aspects of their finances. It can be their budget, expenses, their incomes, or their savings. I explain how to reduce expenses and create savings, to make sure they put some money away for pension time and so that they know what’s going on with their insurances. I’m not an insurance agent or broker. However, I have enough knowledge to point my clients in the right direction and ask the right questions of their brokers and advisors. As those areas are full of information and terminology, whenever people get a report or request from their agent, they get scared and don’t know what to do with it. But I know how to deal with it.

One of the reasons why I am in this field is that I’ve gone through different things in my life, all of which had financial implications. I migrated between countries three times. I was married, got divorced, got married again. I lost my dad at a pretty young age… So I’ve had a lot of different experiences and more… I made money, lost money, bought and sold properties, and so on. All these events had implications also on my finances, so eventually, I wanted to help other people to avoid financial problems and mistakes. 

Besides this, I love organizing. I love knowing where I can find information quickly and be able to use it. And I enjoy everything digital: apps, programs, technology… For instance, I’ve been using Excel and PowerPoint since the 1990-s. Now I learn how to use any new app very easily and quickly. 

To go back, I became self-employed 9 years ago, I’m 52, by the way. Till then I was always an employee in large organizations for over 20 years. I worked very hard building my business and raising two small boys at that time. And I was really lucky to get great marketing opportunities at the beginning which took me further. I charged forward with those opportunities, as I knew that I’d need to step outside my own boundaries in order to succeed as a small business owner. Taking those risks paid off and I managed to build my business very well. For example, I had a regular column on one of Israel’s biggest websites and that led to TV appearances, radio broadcasts, and other media contacts. Right now I prefer to invest in my own media: website, blog, and podcast (in Hebrew at the moment).

Wow! That’s amazing.

Yes, that’s a lot of life behind me! (Laughing)

You’ve mentioned that you love to use the apps. How did you get to know Toshl?

I use the Toshl app for more than 4 years. I don’t really remember exactly but either I’ve heard about it through a client or my sister who lives in New York. Anyway, I’ve been a paid Toshl Pro customer for 4 years and it is really worth the money… I did explore other apps at that time and I found that Toshl was really intuitive, nicely designed, and user-friendly.

As a financial coach, could you please share: what should we focus on when managing our financial life?

Obviously, the first thing is control of the day-to-day expenses. I call them variable expenses – expenses that occur daily and we actually have to put a hand in our pocket to take a credit card or cash, or use online banking to make a transfer – all of these expenses need to be tracked because it is very easy to lose control over them. 

Aside from those, we have fixed expenses. Although they are repeating every month, we need to control them and think if there is a way we can reduce them. Some people say: “Oh this is fixed. I can’t do anything about it”. But sometimes you can. For instance, in Israel, we have a pretty cheap cellular service for less than 10 dollars per month. And I still see some people using the more expensive program even though there is no reason for them to have it. 

Then, we need to make sure that we have savings, liquid savings. Especially now, in the times of the global pandemic, a lot of people suddenly didn’t have an income… And if you have some money to put back in your current account that you’ve saved up for a rainy day, you are in a much better position than people who haven’t done that. So you need to have money that is pretty liquid and you need to have savings for retirement or when you stop working. It can be in many formats: rent from the property, saving accounts, investments. 

I think it is also important to be a smart consumer. It means not being roped in by clever advertising or a friend or celebrity who posts an Instagram photo of an item that was just bought but rather  – to investigate, do price comparisons in advance. I’m not saying: “Don’t buy”. I love buying myself and I think it’s fun. Just let’s be clever consumers.

It is better to buy one good-quality expensive item than many cheap ones. Personally, I don’t like online shopping for cheap clothes… That’s just like… Where I’m going to put it?! (Laughing) It might be the wrong size or colour, or maybe the quality of the material will be very low… I’d rather buy good things, more expensive and not so many. That’s being the smart consumer.

To sum up, just control your expenses, make the savings, and be a smart consumer.

Do you suggest looking at it individually?

Oh, absolutely. For instance, a situation in my family is very different from the situation of a family with small children. Yes, I can give very general advice but at the end of the day, each person or family and each household is in its own situation. All in all, it is very individual. 

You know, I cannot tell a family who has a coeliac kid to spend much less on food. They will spend more because that gluten-free food is very expensive. So everything needs to be adjusted. Only when I do individual work with a family, I can point out the areas that are not in line with what it should be.

Now we live in times of the global pandemic. Some of us could experience uncertainty about our financial future. Are there any specific tips on how to act in these circumstances?

I think you need to put on your creative hat and realize that you have to move out of your comfort zone. For example, what I’m doing now (as I finally had the time during the 2 months of lockdown) is putting together an online workshop. Yes, it is a lot of work but I’m moving out of my comfort zone to create new services which will bring me new clients and new income. That is what we need at the moment of uncertainty. 

On the other hand, we need to exercise restraint. As the lockdown is lifting slowly, I see that people are so craving to go to the mall and buy… And maybe they don’t have money… They need to think first: “OK, the mall is open but it doesn’t imply that I HAVE to go and spend!”. You know, don’t go to the mall, go for a walk around the block! 

So we need to become restrained and keep being optimistic and learn some new skills. I think there are lots of opportunities to learn skills that you can sell to create an income. These things could be a little bit more difficult, though it’s worth trying.

What else? We should put off some purchases… For example, before the pandemic, you planned to renovate your house during the summer. But now, if your income has changed, you need to put it off, to leave some money in your bank account. 

This is also a time to review the budget of your monthly expenses. You need to do it every month but in times of uncertainty, you need to adjust it even more. And in this sense, Toshl is a very handy tool.

Recently, the global market has shifted to the Internet. Many people purchase goods and services online. Are there any hints on how not to overspend?

It’s a big problem. I see it with a lot of my clients. Apart from purchases that require delivery services, there are subscriptions for online products. When my clients go through their bank statements having transactions from App Store or Play Store, sometimes they can hardly answer what that online purchase was for. When you’re buying online, it is very easy to think: “Oh, it’s just three dollars!” I think our minds are not capable of aggregating everything that we purchase over a period of a month and we cannot work it out unless we see it on a screen (in Toshl!)

Another thing… Most of my clients use Toshl manually. One of the things I teach them is that they have to enter their purchases on the same day. Because the next day you wake up, your mind is like a blank page and you don’t remember anything. I’m also quite a big online purchaser of services for my business Yesterday I paid for Zoom and I put it in Toshl right away. And that’s how I can control myself because it is very easy to get lost.

Could you describe: who is your typical customer?

I have three types of customers. The first ones are couples or individuals that want to learn how to manage their finances. I teach them how to analyze their expenses and how to create, maintain, follow, and track a new budget. These people come to me to learn and I guide them in that. 

The next type is people who ask me to manage things for them as a personal financial assistant. Typically, these are older people. Normally, they are well off, and if they want someone to deal with it for them, they can afford it. I’m the one to clean up the messes and consult them. 

And the last ones are small business owners. If you are a small business owner, you have to sell your service or product but at the same time, you need to manage your business on your own. A lot of small business owners don’t know how to manage the financial aspects of their business. Most deal only with the tax aspects and amounts that need to be paid to the authorities. I’m the one who really goes into the numbers and says: “Oh, you spent too much on equipment!”. What I do with small business owners, I look at the details and advise them every month on what they need to be more careful with. I look at the numbers from a different point of view than the accountant does.

And now I might have one more type! These are the people who are going to learn and do everything on their own using the Toshl app. 

Yes, we’ve heard about the workshops you organize to share your knowledge with others. Could you tell us more about these events?

The workshops are my new service. It’s something that I’ve been wanting to do for a couple of years but it was quite challenging to get people to come at the same time and to the same place. Then the pandemic came… And now everybody meets and learns online. So I said, “OK, now it is time”. What I want to share is completely teachable in the online environment. 

Basically, I run the workshop to teach people how to use Toshl to manage their personal finances. I’ve discovered over the years how to use the app correctly and stick with it over time. It needs to be set in a certain way and I’ll share these tips at the workshop. The session lasts for 1.5 hours and it is in Hebrew. There in fact going to be 2 workshops – for beginners and an advanced session. I also have an idea to do it in English for clients from all over the world. And hopefully, I’ll also sell the workshop as an online course.

Which methods and approaches do you use in your work?

First of all, my approach is that order and efficiency are the basis for effectiveness. If you have all your ducks in a row and everything organized in a clever way, then you are probably going to be efficient and effective in whatever it is: your business or saving. Another approach is that at the beginning you’re always sweating a little bit more until you get everything organized, and then it goes pretty quickly and smoothly. 

In terms of actual methods or tools, I use a lot of different ones to run the business. With my clients, I use Excel and Toshl: Toshl – for tracking the day-to-day expenses and controlling them and Excel – for looking at the big picture and doing more complicated analysis, etc. 

Is there anything else you would like to add?

During the last two months, many people were writing statements such as: “Now I know that it is important to save, spend money on the right things and not to overspend”. I think in a few months most of us will go back to our old habits because we are creatures of comfort and we like buying items and experiences. But I do hope that more and more people will understand that it is OK and not so boring to control personal finances… It can be done quite easily and in a more calculated way. There are so many handy tools for that! So do not forget what we went and are still going through with Covid-19 and spend wisely. 

Useful links: Debbie’s website, Facebook page, blog, about the workshop (in Hebrew)

Posted in Family finance, Opinions, Personal finance, Tips & Tricks

How to Spend Less in Summer: Hints for Shoppers

Summertime. We are craving for it in the frosty winter evenings, we are waiting for it in the rainy spring mornings. When the desired season finally comes, we are constantly looking for an air-conditioned shelter: at home, office or… shopping mall. 

Summer is meant to be vacation time. It is calling upon us to go on sparkling adventures: traveling, visiting open-air events, hanging out with our friends… shopping. All this can be very appealing. At the same time, the long wish-lists push us to spend more in this season. 
Surely, there are ways to spend less in summer. We have already wrote about how to spend less on a summer trip in one of our previous blog posts. Today we are going to look at another challenge —  shopping.

Shopping therapy and its traps

We tend to overspend on special occasions. Why wouldn’t you indulge a bit more on vacations? It’s a case where our inner wishes match the intentions of the sales industry.

In sales, the summer is also known as a season of discounts and special offerings. Thus, if we go with this flow, we might end up overspending. And we might buy lots of things that are not necessary for us.

Researchers Selin Atalay and Margaret Meloy found that 62 percent of shoppers had purchased something to cheer themselves up, and another 28 percent had bought something to celebrate. This type of shopper is likely involved in “retail therapy”

It is true that if we feel bad, getting a new thing might improve our mood immediately. Shopping provokes us to imagine ourselves in a “better” life, where we’re dressed in fancy clothes and surrounded by pleasant-looking things. Purchasing makes those dreams seem real. 

And there’s nothing necessarily wrong with it: as proved by many great athletes, visualization can boost our performance and reduce anxiety. On the other hand, this shopping effect does not stay long enough to make us really happy. Moreover, when you tend to shop impulsively, you risk overspending your budget. In some cases, if the pattern of thoughtless shopping behaviour repeats quite frequently, it might be a sign of an addiction.

So, how to resist summer shopping when thousands of shops are offering incredible discounts? Of course, you can give in and buy the things you don’t need, often can’t afford. But how do you get rid of this budget-killing habit? 

Track and analyse your expenses

Experts say that the most effective first step for changing this habit is to identify why and how your shopping initially became a problem. They suggest starting to write a journal to keep track of our triggers. 

Here, the Toshl Finance app will be very handy. Simply keep tracking your expenses and incomes and add relevant categories and tags. 

If you are a Toshl Medici subscriber, you don’t need to add your expenses or incomes manually, they just fly in from your connected bank account. In this case, the smart categorisation system is learning from your past patterns and predicting the categories. To see how it works, try out the free 30-day trial of Toshl Medici.

If you keep tracking your expenses on a daily basis, you’ll discover the trends in your spending. Just check the Expense graphs. This chart will easily visualise your spending habits. If the category “Clothing & Footwear” is getting the largest space on the chart, it is an alarm. Reawake your willpower and limit yourself. 

Next time you see a new purse with a -70% or a new tablet with a -50% discount, try to think twice if you really need to buy any. In most cases, choosing one thing means giving up something else. Money spent on one thing could be the money spent on another thing. And there are always better (smarter) alternatives. For instance, for many of us, having some funds in a retirement savings account will be more useful in a couple of years than having lots of useless things at our apartments. 

Budgeting is important

Psychologists note that smart budgeting can increase our feeling of happiness. If we plan our expenses in advance, we might spend more money and time on the things that make us happiest.

University of Georgia’s Dr. Matt J. Goren suggests dividing our potential expenses into wants and needs while budgeting. In simple words: needs are “required stuff” (a necessity to buy a new laptop if your old one is broken and cannot be fixed) and wants are always the “fun stuff” (a desire to get a newer laptop when you still have a working one). 

According to Abraham Maslow’s hierarchy of needs, when we satisfy our lower levels of needs (physiological and safety needs), we get motivated enough to reach the higher levels (love, self-respect, and self-actualization). This way, we feel happier if our basic needs are covered. 

This applies to our fixed needs — such as food. Essentially, we are more vital and productive when we aren’t hungry. It can refer to variable needs as well, such as emergency expenses — a new substitute for a worn-out device. If you’re a freelancer and your laptop gets broken, you might have an urgent expense related to your job security.

Fixed needs are the stuff we can’t deny ourselves in everyday life, but we definitely can spend less on it. Variable needs such as any unexpected expenses are less pleasant for our pocket. If you plan some reserves in your budget for emergency cases, you will go through any stressful event having less negative emotions.

Photo by Maria Vernigora on Unsplash

When we spend on our wants, we can feel even happier. The thing is the duration of happiness depends on the type of want. 

Fixed wants are our daily expenses and are usually the result of our habits. For instance, every day you stop by a coffee place and buy some fancy drink (a premium quality espresso). When you discover that 500 g package of this coffee can be purchased at the local grocery store for a price you pay for the two cups at the coffee place, you will be surprised how much money you could have saved just drinking this coffee at home. The thing you need to do is to modify your daily premium espresso ritual. You might buy your favourite coffee at the grocery store and enjoy it at any time.

No, we should not neglect our wants. Covering some of the variable wants can motivate us and make us feel good. For instance, you might get inspired by the trip to Spain. The memories from this trip will stay longer than memories from buying a new pair of shoes. Buying experiences instead of things can contribute to our mental well-being. 

All in all, if we reduce spending on our fixed needs and fixed wants and plan some costs for our variable needs, we’ll have more money on our variable wants. As a result, we could afford enriching experiences such as postgraduate education or opening our own company and grow as personalities. To get to this goal, budgeting your expenses is a really good start.

For starters, find the Achilles heel of your spending: check your expenses graph and find which of your expenses really stand out. You can easily create a monthly budget aimed precisely at your spending weakness, for example, Clothes & Footwear, then set the budget to equal the amount you can spend on your monthly clothing needs. Toshl monsters will warn you as you approach the limit, so you could stop and think before buying some related product impulsively. Moreover, if you don’t go over the budget limit, you’ll definitely feel relieved. And all the summer sales ads will pass as a pointless buzz.

Already hot, eh? If you read these lines drinking a juice at the shopping mall, just remember to spend smart at the summer sales, track your expenses precisely and make budgets in advance. But whatever you do: don’t forget to enjoy your summertime. Make it magic. ;)


Posted in Budgeting, Personal finance, Tips & Tricks, Travel

Track Your Cryptocurrency Assets on Bitstamp, Bitfinex and Coinbase with Toshl

Tracking all your Bitcoin, Ethereum, Litecoin and other assets on cryptocurrency exchanges just got a whole lot easier. Toshl can now automatically connect to Bitstamp, Bitfinex and Coinbase exchanges. With these integrations, your crypto accounts can be automatically uploaded with latest balances, as well as individual transactions.

 

You’ll always see the crypto value side-by-side with the current value in your main currency, which is likely the one you’re most used to thinking in.

This applies both to the account balances as well as the prices of individual transactions. So there’s no need to search for “BTC to USD” conversions and manual calculations. You’ll see the exact price for all your assets right next to your account.

 

How to connect to the cryptocurrency exchange?

Setting up the connection to a cryptocurrency exchange is very similar to any other bank connection in Toshl. Go to the Bank connections section and click “New bank connection“.

You can then search for an individual exchange or click the country dropdown on the top right and select “Multiple countries”. All the crypto exchanges will be listed there.

Choosing crypto exchanges to connect to

 

Once you select the exchange you wish to connect, you’ll need to enter your credentials. With Coinbase, you’ll be redirected to their website where you can log in and confirm the connection.

With Bitstamp and Bitfinex, you will first need to create an API key on their respective websites. More detailed instructions on how to create the API key are available on the Toshl connection page. It’s a few extra clicks, but quite easy to do. The API key is there to enable the automatic connection without Toshl ever having to know your account password, which adds an extra layer of security.

Bitfinex log in

Once you’ve entered the required info, you can select how much data you want to import from the cryptocurrency exchange. You can get all the past data, data from a specific date onward or from now on. With Coinbase, you can select this after the credentials are verified.

Then just click Connect.

All done! Toshl will now download the data and show it in Toshl. Don’t forget you can set a filter to only see data from particular financial accounts or categories.

 

Tracking assets in crypto wallets

While tracking the assets in your crypto wallets is not available yet, you can also track them manually using a normal financial account in Toshl. Make a new manual financial account in Toshl, choose the currency the account will be denominated in and the current balance. You can then add transfers or incomes and expenses to that account.

If you often transfer money from your exchange accounts to your crypto wallet, Toshl can half-automate this for you. The transfer will likely be automatically detected on your exchange account and will just be missing info about the part of the transfer in your wallet. Go to Bank connnections, click on “Review entries” on your crypto exchange connection. There, you can confirm which incomes and expenses are really transfers and Toshl will offer to automatically fill in the manual portion of the transfer on your wallet account, so you can sort it all out in 2 clicks.

 

Currencies and exchange rates

The exchange rates for entries and balances on the connected accounts are fetched from the particular cryptocurrency exchange you’re using.

If you’re adding a cryptocurrency entry to a manual account that isn’t connected to an exchange, Toshl will suggest a middle rate for the currency. You can also enter a completely custom exchange rate, if you so prefer.

We’ve also added support and fresh exchange rates for 35 new crypto currencies. Together with the previous additions of currencies in February and July 2017 this brings the total count to 55.

 

Latest cryptocurrency additions

Rates for these are provided by Bitfinex.

 

Ethereum Classic (ETC)

Recovery Right Tokens (RRT)

Zcash (ZEC)

CST Core (BCC)

CST Unlimited (BCU)

Iota (IOTA)

EOS

Santiment (SAN)

OmiseGO (OMG)

Bitcoin cash (BCH)

NEO

ETP

Qtum (QTUM)

BG1 (BT1)

BG2 (BT2)

Aventus (AVT)

Eidoo (EDO)

BTG

Streamr (DATA)

QASH

AidCoin (AID)

Basic Attention Token (BAT)

aelf (ELF)

FunFair (FUN)

Decentraland (MNA)

Ethfinex Nectar Token (NEC)

RCN

Augur (REP)

iExec (RLC)

SingularDTV (SNG)

SpankChain (SPK)

Time New Bank (TNB)

TRON (TRX)

YOYOW (YYW)

0x (ZRX)

 

 

List of cryptocurrencies available in Toshl

February 2018, alphabetical, all currencies are updated with latest exchange rates

 

0x (ZRX)
aelf (ELF)
AidCoin (AID)
Augur (REP)
Aventus (AVT)
Basic Attention Token (BAT)
BG1 (BT1)
BG2 (BT2)
Bitcoin (BTC)
Bitcoin cash (BCH)
BitShares (BTS)
BTG
CST Core (BCC)
CST Unlimited (BCU)
Dash (DASH)
Decentraland (MNA)
DogeCoin (DOGE)
EarthCoin (EAC)
Eidoo (EDO)
Emercoin (EMC)
EOS
Ethereum (ETH)
Ethereum Classic (ETC)
Ethfinex Nectar Token (NEC)
ETP
Factom (FCT)
Feathercoin (FTC)
FunFair (FUN)
iExec (RLC)
Iota (IOTA)
LindenDollar
LiteCoin (LTC)
Monero (XMR)
Namecoin (NMC)
NEO
NovaCoin (NVC)
Nxt (NXT)
OmiseGO (OMG)
Peercoin (PPC)
Primecoin (XPM)
QASH
Qtum (QTUM)
RCN
Recovery Right Tokens (RRT)
Ripple (XRP)
Santiment (SAN)
SingularDTV (SNG)
SpankChain (SPK)
Stellar (STR)
Streamr (DATA)
Time New Bank (TNB)
TRON (TRX)
VertCoin (VTC)
YOYOW (YYW)
Zcash (ZEC)

 

Toshl Medici

The Toshl Medici subscription plan is required to automatically connect Toshl to financial institutions. Medici also enables automatic connections to banks in the Unites States, with more than 9000 connections available. We’re working on adding more bank and financial service connections worldwide.

Medici badge

 

Update 26. 2. 2018: Updated the post with 15 more currencies that were subsequently added.

Posted in Announcements, Personal finance, Tips & Tricks, Tutorials

Finish Financial 2017 with Flying Colors and Jump Wholeheartedly into 2018

May your 2018 be a good one! Full of joy, financial success and free from needless worry.

 

We’ve prepared some tips to help make these wishes a reality.

 

Check how you did in 2017

It’s easy to do. Just tap the month, click on “Custom time span” and then tap “2017”. The graphs and lists in Toshl will now show you the information for the entire year.

1. Follow the River flow to see how your incomes and expenses fared together.

2. Expense graphs might come useful too. Tap a category on the pie chart or a tag bubble to see more info for each.

3. Don’t forget to check the budgets. Budget history is especially important. Based on it, you can adjust your budget amounts for 2018. Hopefully it will free up some money for saving or spending.

 

Plan ahead for 2018

I know it seems far right now, but this is a good time to start planning your vacations and other major expenses in 2018.

4. Perhaps make savings account and set up automatic monthly transfers to it. That way you’ll be ready when the spending time comes.

5. Enter any future expenses you already know of to Toshl. At least a rough estimate. They’ll show up nicely on the Planning graphs so you can balance out each month in advance.

 

Connect your bank or credit card

Toshl can now automatically connect to banks and credit cards in the United States. This means your spending and income data flies in automatically without the need for manual entries.

We’ll be expanding the offer to more countries and financial institutions in 2018.

 

Toshl monsters really got into the holiday spirit. They’re like ninjas of joy. You never know where the festivities will strike next!

Embrace your inner Toshl monster.

Toodaloo!

Posted in Personal finance, Tips & Tricks

What are Your Financial Goals?

This is a guest post by Miha Slekovec, an avid user of Toshl Finance and an explorer of financial self-improvement.

 

Let’s take a step back and look at a bigger picture of the personal finance world. It can be much more than just keeping track of your monthly expenses. If done the right way, it can lead to the personal freedom many people are craving for – financial independence. Personal finance need not be just a monthly choir, or a task. It can be the first step on a ladder which leads to financial independence. The ladder has five steps and it starts with budgeting. Good budgeting leads to creating savings, which can then be invested. With a correct investment strategy you can create assets, and with enough assets you can reach your financial freedom. For details take a look at the picture below. Start at the bottom.

The beauty of the system is that you can step up and down the ladder according to your financial goals. The solid foundation is keeping your monthly finances in order. Without that you cannot search for possible savings in your spending. Monthly budgeting lets you identify the weakest points of your monthly money flow and it shows you what needs to be improved. These improvements lead to (extra) savings, which you can then use in whichever way you want. Maybe you want to save for that great vacation you wanted to go on for years? Or maybe you want to put the money on the side for that dream home you want to buy in the future? Maybe you want to invest it?

Here we are entering a new territory. In sports terms, budgeting/saving is playing defence, while investing is playing offence. There are many ways to score, but you must know what you are doing, especially in the long run. But don’t despair, there are many ways to invest and many sources to learn about investing. Just remember some basic rules: invest in only what you know, be prepared to lose your money, and don’t be greedy.

Be careful where you invest, as different countries have very different tax codes and regulations about investing. What is possible in the USA, is not necessarily possible in Germany. And the possibilities of investment in France differ from those in Japan. Make a study of what you can do in your country. A good general resource to start is JL Collins: The Simple Path to Wealth. The book offers good insight into the stock market for first time investors and helps you avoid some of the common rookie mistakes. For a few alternative resources try books by Jack Bogle or Benjamin Graham.

 

The most important question is – what do you want to achieve with your finances? Where do you want to enter and where leave the ladder?

Posted in Guest posts, Personal finance, Tips & Tricks