Simple Investing Strategy, Affordable for all!Hey! Everybody wants to get rich. But not many from us know what it takes. In this article let's discuss Investing income from annual percentage yield (APY) . Key point is the percentage of income can be different from your location, but lets make our calculations from 8.0% APY.
Why this strategy is Affordable for ALL? Well, for calculation I've used only $161 of monthly investing.
I understand for some person this is nothing, and for another it is a lot. But you can calculate your own affordable investing amount per month and use it. Consistency is the key!
Another point why its affordable, its because you don't need to have a lot of money at the beginning. You can start from minimal deposit allowed by service/fund/bank (APY provider) where you allocating your funds.
Please, note, this is simple and affordable investing strategy. But still THIS IS NOT 100% SAFE STRATEGY... There are several risks of losing your money after all. Mostly this risks depends on APY provider, so I recommend to change your APY provider over a time, and to secure your funds use multiple providers.
Let's see how we get this numbers and first of all it is important to keep consistency during all your investment journey. Remember, this way can make you millionaire and can create a fortune for your kids.
To understand how this works, let's see what is Compound Interest:
Compound interest is the concept of adding accumulated interest back to the principal sum, so that interest is earned on top of interest from that moment on. The act of declaring interest to be principal is called compounding. Financials institutions vary in terms of their compounding rate frequency - daily, monthly, yearly, etc.
Your savings account may vary on this, so you may wish to check with your bank or financial institution to find out which frequency they compound your interest at. I used monthly compounding to calculate final value.
With savings accounts, interest can be compounded at either the start or the end of the compounding period (month or year).
Compound interest formula
Compound interest, or 'interest on interest', is calculated with the compound interest formula. Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest.
This formula is base of all interest calculations. To get easier process of calculation, I have used online Compound Interest Calculator.
Best numbers we can get if we start investing early, but it happens we see right information too late, and we ask ourselves "Is it good time to start?" — I can say for sure, YES! Always good idea to start investing in your savings account. Trading is trading, but investing is a little different. You can invest in markets, or in savings accounts.
Now let's see "worst case" — you starting your investing journey at 40 years old.
How much you can earn on savings account until 60?
I have calculated it with calculator, and used only $161 investments/savings per month with APY of 8%.
You can see after 20 years of savings this amount of money (pretty much affordable for many people out there) you will get about $95,464 Final Value. Very impressive. Imagine if you can save more from your income each month... For example if you can save $1000 monthly, you will get $592,947 Final value after 20 years on your Savings Account.
Middle scenario — investing for 30 years on your savings account. Until 60 you can earn solid $241,547 Final value, investing only $161 per month!
Now if you can invest about $500 per month from your income you will get amazing $750,147 Final value.
And of course best scenario — start investing on savings account early from 20y.o. This way you can get $565,799 Final value by 60 y.o.
And if its possible to save more, let's say $250 monthly, you can get $878,570.30 Final value by 60 y.o.
So in order to get rich, you don't need to invest a lot of money. Just make you investments consistent, and improve your financial education.
Hope this article can inspire you to create your savings account and plan your future.
Best regards,
Artem Crypto
Savings
Learn The Only Proven Way to Become Rich
1. Money mindset is everything
You need to have a positive money mindset when it comes to creating wealth. Everyone carries a money story and it’s your job to understand what yours is and if it’s holding you back. Reframing your story to a millionaire’s mindset is essential for success because rich people think differently. How to get rich can’t be a passing phase in your life; it takes work and commitment.
2. Millionaires still budget
Hard to believe, but it’s true. Even millionaires follow a budget. The biggest secret on how to get rich and stay rich is spending less than you bring in. There will always be wants that exceed budget limits, even for millionaires, because there is not an unlimited supply of money.
3. Money management is key
Good money management is so important to get rich and stay rich. Money management is a behavior and habit. You need to be mindful of where you are investing and spending your money. There is a specific strategy to growing your wealth and maintaining it and you must follow it like you do a workout regime.
4. Invest your money for growth
Investing in assets that will appreciate over time and provide you with a return on your investment such as dividend or interest payments is smart. The goal is to build your asset portfolio and make it so strong that you can live off the passive income in your retirement.
5. Build your business around your personal financial goals
As a business owner you have more control over the money you make versus being an employee with a set salary. If you want more money in your pockets, you can increase your revenue and your profit margins to ensure you are taking home more money. The more profits you have in your business the more you can pay yourself a dividend or bonus, depending on the legal structure of your business.
6. Create multiple income streams
Smart business owners create more than one income streamas it protects them from fluctuations in the market. That means if one source of revenue dries up due to market conditions, other sources of income can protect you from a loss.
7. CONCLUSION:
The bottom line is that knowing how to get rich is something that is learned. There are no guarantees that if you start a business that you will get rich because even the best business ideas fail due to poor execution. But if you educate yourself and get help in making your business a success, you will increase your chances of success.
Please, support my work with like and comment!
Love you, my dear followers!👩💻🌸
Cutting Expenses and Increasing Income
There are steps you can take to get a handle on your finances – and your financial stress. The very first step is to figure out if your income covers all of your current expenses. An increase in expenses or a drop in income usually means a change in lifestyle. The sooner you look at your household budget, the more options you have and the better off you will be in the long run. Once you have a better understanding of where your money is going, it’s time to look at ways to make the best use of your hard-earned dollar.
Cutting Expenses
If you find that your expenses are more than your income, you can take steps to develop a spending plan and move toward balancing your budget.
Begin by listing your expenses, starting with expenses that provide basic needs for living. Some of these are fixed, such as rent or mortgage payments, car payments, or installment loan payments. Some are variable, such as clothing or consumer goods. These expenses have some flexibility.
It is important to know what you are currently spending to find ways to reduce spending and balance your budget.
After you have your list, the next step is think about what can be reduced or completely cut out. Think about how a repeating weekly or daily expense will add up over an entire year.
How can you save more?
Buy gently used clothing. Instead of spending BMV:60 or more on name brand jeans with holes, your teenager may find “cool” jeans for $6.
Save on energy costs. Turn down the thermostat 5 degrees. Turn off lights or a television when no one is in the room to save money on the electric bill.
Deferring on a repair or doing it yourself. If you don’t have the skills or the tools, perhaps there is a neighbor or friend that can help.
It is essential to stick to your spending plan. With less income, each spending decision is critical. Finding ways to pinch pennies can add up to dollars you can use to make ends meet
Even in good economic times, financial experts recommend a spending plan for effective money management. But good financial planning is an even more essential tool in tough times. Setting priorities for spending is a necessary step in finding a way to balance your budget-especially when you have less money available to spend.
What do you want to learn in the next post?
Are Health Savings Accounts Worth Your Time? Absolutely.When you're well, sometimes it is difficult to imagine things suddenly taking a turn for the worse. 1.5 years ago, I was as healthy as could be. I thought medical problems were for other people, my checkups always came up roses.
Then I fell ill with an autoimmune neurologic condition, likely autoimmune encephalitis, and I wish I had opened a Health Saving's Account (HSA) the day I turned 18. Funny how life teaches you those lessons.
So what is an HSA?
An HSA is an investment account whose contributions are tax-deductible and withdrawals are tax-free if used for medical expenses. This type of account is only available for those with high-deductible plans health plans. The IRS defines a high deductible health plan as: any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. Literally ripped that last sentence straight out of google. Sue me. If you're uninsured, you're out of luck.
So for those who have high-deductible health plans, it's a way to not only save for sudden health catastrophes, but also to grow your wealth. With Fidelity, there is no limit to what asset class you can partake in. Other HSA's may have limitations, acting more like savings accounts.
When you make a contribution, that money is tax-deductible (so you're investing with "pre-tax dollars"), and will never, ever be taxed if used to pay for a medical expense. But what if your investments have gone down and you have to sell to pay for medical bills? Hint: don't. You can reimburse your own medical bills with NO time limit. That means you could pay $1,000 for surgery using a cash-back credit card (or whatever payment method), wait until your money grows in your HSA, then reimburse yourself tax-free in 30 years. That is, if you kept the receipt ;)
By budgeting, like using YNAB, it's easy to keep track of medical expenses and reimburse yourself tax-free when it makes the most sense. Or, if you prefer, you can invest in more conservative instruments. Like CD's, which are paying as high as 4.7%. Or you can treat it like an actual savings account and enjoy Fidelity's 2.21% APY on uninvested cash.
So for those keeping score:
-Contributions are tax deductible
-Medical expenses are tax-free when you liquidate your investment(s) to cover them, which you can do retroactively with no time limit
-Growth and trading within the account is tax-free (unless you live in CALIFORNIA or NEW JERSEY. Don't ask me, but you will be taxed on trading like you would an individual brokerage account)
-You can withdraw your funds like you would an individual brokerage account at 65 (that is, you'll be taxed but not penalized)
There are pretty hefty penalties for non-medical withdrawals before you're 65: up to a 20% penalty and ordinary income tax on capital gains. Not pretty, so don't put money into an HSA that you'll need for other things.
In addition, there are yearly limits to how much can contribute. For 2023, it's $3,850 for an individual plan, $7,750 for family plans. You can alternatively roll funds over from an IRA into an HSA (but not the other way around).
I opened one today with Fidelity and will max it out every year. I use YNAB to budget, so I can keep track of my health expenses for 2023 easy peasy. It's always best to plan for the worst.
Thanks for reading, and best of health to you.
InTheMoney
7 Stages to Financial Freedom and How You Can Get There
Today we will discuss the stages you go through to reach freedom and how you can achieve it with awesome thinking models.
The journey to financial freedom includes seven stages.
1. Clarity
This is the stage where you are clear about your current financial position and where you want to be.
2. Self-sufficiency
This is the stage where you can bear all your expenses by yourself. You are not dependent on anyone for your survival. This also means you earn enough to sustain your expenses.
3. Breathing room
This is the stage where you have saved enough to sustain yourself for a couple of months, even if you lose your source of income right now.
4. Stability
This is the stage where you have paid off all your debts and you also have a saving to sustain you for at least 6 months in advance.
5. Flexibility
This is the stage where you have saved enough money to sustain yourself for two years in advance.
6. Financial independence
This is the stage where your money earns more for you. It’s when you have enough investments and savings that the return you get is enough to sustain your expenses without working. At this point, you work on something because it’s your hobby, and not to earn money.
7. Abundant wealth
This is the stage where you have accumulated so much money that you would not be able to spend all in your lifetime.
But how do you progress through these stages and achieve financial freedom?
Here are some awesome thinking models you can use to head towards financial freedom.
1. Time is more valuable than money.
2. Compounding can help you achieve it earlier
3. Make money with a side business
4. Learn to sell stuff
As it should be your ultimate financial goal, it is never enough to talk about achieving financial freedom. I wish you luck, dear traders.
Hey traders, let me know what subject do you want to dive in in the next post?
27 Ways to Save money to TradeSaving money to trade, or in general, can be a pain.
Either it drops your quality of life, or you find that you just can’t save a cent at the end of the month.
No matter what you’re earning, I’m going to show you exactly how to save money the easy way.
Here are my 27 favourite money savings tips with a couple of personal notes…
SAVINGS TIP #1: Stick to your shopping list
Write your shopping list down on a piece of paper or on your phone, and stick to it to avoid overspending.
When you are prepared for what you have to buy when it comes to your grocery shopping, this will more likely stop you from buying extra items you don’t need.
SAVINGS TIP #2: Pay with hard cash
Pay using real money instead of swiping your debit or credit cards.
When you pay with a card, instead of cash, you’ll find that you’ll spend more money on unnecessary items than you should or with money you don’t even have.
Personal note:
While I’ve been living and trading in Greece, I find this is the best savings tip I’ve used so far.
SAVINGS TIP #3: Pay yourself firstay yourself first
As soon as you’re paid your salary, wage or income for the month – deposit a portion of that money straight into your trading or savings account.
I like to use the 10% rule, but this all depends on what you can afford to deposit. This means, if you earn R60,000 per month deposit R6,000 into your trading account or savings account each month.
SAVINGS TIP #4: Don’t shop when ‘hangry’ or emotional
Avoid shopping when you’re feeling hungry, thirsty, angry or upset.
You’ll find you’ll spend more money than you should. In a recent study: Hungry mall shoppers who were hungry spent on average 64% MORE than non-hungry shoppers.
Make sure you have a nice meal and drink lots of water, before you go on your next shopping trip.
SAVINGS TIP #5: The ‘cookie-jar’ approach
When you empty your pockets, at the end of the day, drop them into a yearly cookie jar for your savings.
You’ll be surprised how many thousands of rands you’ll be able to save, collect and be able to deposit into your trading account for the next year.
SAVINGS TIP #6: Use the 24-Hour-Rule
Before paying money for non-essential and expensive items on clothes, cosmetics, appliances or even tools, just wait 24 hours before buying it.
You may find that you’ll lose that desire to buy them after 24 hours, which will save you tens of thousands of rands a year. Maybe when your parents said “sleep on it”, there was method behind their madness.
SAVINGS TIP #7: Go generic
Save a ton of money by buying the generic prescription medicines instead of paying a fortune for the name branded drugs.
Ask your local pharmacist or physician if you can have the generic prescription drugs instead of the brand-name drugs.
You’ll find that the generic products cost far less than the brand names, and will work equally well.
SAVINGS TIP #8: A quick breakfast that lasts a week
Breakfasts are not only the most important meal of the day, but can also be the quickest, easiest and most inexpensive meal for the day.
When you eat a full and healthy breakfast, you’ll find it will keep you from going out to eat an expensive lunch…
Personal note:
For the last two years, I have had the same breakfast which I make once and it lasts an entire week.
This has truly been life-changing as it makes my day start with one less decision to make before I get on with the rest of the day.
It’s called “Overnight Oats”. If you’d like to see my personal recipe feel free to click here…
SAVINGS TIP #9: Follow the 30-Day-Rule
Before you buy something really expensive, give it 30 days and then decide if it’s worth it.
I’m talking about items like jewellery, motorbikes, paintings, juice extractors and any other item that can cost over R3,000.
SAVINGS TIP #10: Don’t be fooled by sales
Avoid sales and don’t be duped by discounts, special offers, buy 1 get one free etc…
Remember this for every time you see a sale for 50% at the next Black Friday’s Special.
“You’re not saving 50% of your money, you’re spending 50% of your money that you weren’t planning to spend in the first place.”
SAVINGS TIP #11: Skip the alcohol and bottled water!
When you go out to a restaurant, avoid spending unnecessary money on alcohol and expensive water bottles.
A standard restaurant can mark up their cost of alcohol by three to five times.
Instead order just plain water or even a sugar free soda.
Personal note:
In Europe I have noticed that when you ask for tap water, they pour it from a bottle of expensive water (R30) anyway. This is due to the danger of drinking tap water in Europe.
SAVINGS TIP #12: Own your doggy bag
Ask your waiter to put the food that you didn’t finish in a doggy bag, so you can save money on lunch for the next day.
People are far too embarrassed about everything nowadays which I think needs to stop.
There should not be a stigma attached to taking leftover food home.
Everybody easts, drinks and sleeps. And when it comes to the food you ordered at the restaurant, you paid for it so why waste it?
This will also save you money, time and effort the next day for lunch, which will make your trip to the restaurant EVEN MORE WORTH IT.
SAVINGS TIP #13: Put three items back after shopping
When you’ve added extra items to your shopping that weren’t on the list, to avoid overspending, put back at least three items that you believe you can live without.
It’s very easy to walk through the final naughty aisle grabbing a whole bunch of crisps, chocolates, biltong, dried fruit and even a bottle of juice.
SAVINGS TIP #15: Cut down on smoking and drinking
Try to cut down your smoking and drinking by half the number per day.
This is really tricky to do but if you put your mind to it and challenge yourself, I know you can achieve this.
Personal note:
What I do with smoking is I’ve limited it to two in the morning, two in the afternoon and two at night.
This tip has saved me hundreds of rands per week from buying more boxes and I will continue to try cut it down until I’ve quit completely.
SAVINGS TIP #16: Fill up your milk with water
As soon as the milk reaches, the half way mark – fill it up with water. YOU WON’T TASTE THE DIFFERENCE.
As a parent or as a milk drinker, it can be extremely expensive to buy milk on a daily basis.
SAVINGS TIP #17: Become a vegetarian (at least once a week)
At least once a week, switch to meatless dishes which will help drop your grocery bill.
Replace it with: Chickpeas, couscous, okra, rice, sauerkraut, quinoa, beans, nuts, pasta dishes etc… You’ll be surprised what you can find at your local supermarket.
Personal note:
Inspired by my cousin, she insisted I cut meat out just once a week. I call this day “Meatless Monday”.
EXTRA MONEY SAVINGS TIPS
#18: Grow your own vegetables
#19: Sign up for loyalty cards
#20: Track your spending on your finance budget app
#21: Make meals that will last a week e.g. Lasagna, casserole, giouvetsi, gemista, soups, roasts, ratatouille etc…
#22: Buy the generic foods rather than the expensive name branded foods
#23: Pay careful attention to expiration dates
#24: Check your eggs in their boxes and your vegetables in their packets
#25: Freeze your foods in bulk
#26: Eat a meal before going to a restaurant
#27: Keep to Pay-As-You-Go with your cell phone account and use the Wi-Fi to call on WhatsAapp
This will be fun!
With these savings tips you can watch your money grow in your savings and trading account!
Why is it better for Europeans to keep their savings in CHF ?Why is it better for Europeans to keep their security/savings in Swiss francs rather than in euros?
Hi everyone,
An idea that’s a little different from usual, but today I wanted to explain why it is better for Europeans to keep their security/savings funds in Swiss Francs rather than in Euros.
Let's start with some history. A strong economy, low debt and high foreign investment all combine to make the Swiss franc a strong currency and a safe haven. But the strength of the Swiss franc is not new. Today's Swiss franc draws its strength from its long history, from its economic ties with Switzerland and its main partners.
Strong vs. weak currency
The notion of a strong currency is quite relative: a currency can be strong against one currency, and weak against another. The euro is strong against the Japanese yen but weak against the Swiss franc.
Let’s take the EUR/CHF pair as an example (in other words, what one euro is worth after conversion into Swiss francs). At the beginning of 2008, it cost about 1,638 Swiss francs to obtain 1,000 euros, whereas today it costs only 984 Swiss francs to obtain the same amount.
While in absolute terms these two currencies can be considered strong, the Swiss franc has won the match against the euro over the last decade with a positive evolution of the exchange rate against the single currency.
Once we understand the concept of the exchange rate between currencies and its constant fluctuation, it is not very complicated to start to have a small idea of where we want to go to benefit from it.
Why is the Swiss franc so powerful?
In the case of Switzerland, three important factors explain the robustness of the Swiss franc compared to other currencies:
- The economic growth ; rather in good shape in comparison with the rest of the world and has managed to get through the last few crises without too much damage.
- Low debt ; despite the crisis, Switzerland's debt level remains well below that of its European counterparts. While Switzerland's debt ratio does not exceed 30% of GDP, those of its neighbours soar to 116.3% for France and 153.5% for Italy.
- The stability of the geopolitical context ; Unlike some monetary zones that are relatively unstable due to geopolitical factors and/or galloping inflation, Switzerland is reassuring because of its great economic and political stability.
A correlation between the Swiss franc and the N100 (Euronext 100 index)?
Yes, but not only that, it seems obvious from the different developments of these two assets that a correlation link is indeed present. It is relatively simple to explain. We can observe that in the past, when the N100 performs well, it attracts investors and at the same time, it increases the strength of the euro and therefore decreases the strength of the Swiss Franc. In times of economic uncertainty or recession, however, investors flee the N100 and the euro to seek refuge (hence the term "safe haven") in the Swiss franc. The strength of the Swiss franc then increases and allows the investor to continue to gain purchasing power.
We can also add to this that it is a very good way for European investors who wish to keep their savings liquid to fight inflation. Indeed, in 2021, the average inflation in the euro zone was 5% while the Swiss franc rose by 4.47% against the euro. We can therefore deduce that a European who has left his liquid assets in euro has lost 5% of his purchasing power, whereas a European who has converted his liquid assets into Swiss Francs has only lost 0.53% of his purchasing power.
So why is it important to keep your savings in Swiss francs?
If you want to keep your savings liquid while avoiding taking too much risk, it seems obvious to me that keeping them in Swiss francs is the best solution. The Swiss franc, compared to the euro, has all the advantages of a financial investment, while retaining the liquidity of a currency. It is obviously less risky than gold or commodities and provides an average annual return of about 3% over the last ten years. It is a good way to convert these investments into cash during recessions, but also to fight inflation during periods of uncertainty or to protect savings against the rising cost of living.
How to find the best conversion point?
Technical analysis lovers, it's up to us, let's start with this obvious bearish channel presented since early 2018. We can observe that the Swiss franc is gaining more and more strength against the euro and continues to oscillate within this channel. At the time of writing this article (November 11, 2022) we could observe during the last month a bullish reversal pattern which has not been validated yet, but which came to test the resistance n°1 (0.99453CHF). For the time being, even with this reversal figure in daily time unit, the euro remains bearish against the Swiss franc. It is therefore still interesting to convert savings into Swiss francs. We can consider a reversal when the euro breaks the 5 resistances and especially when we have a confirmed breakout from the top of the bearish channel.
From a more macroeconomic point of view, we have observed a correlation link between the N100 and the EUR/CHF, we can thus deduce that when the N100 performs, the euro gains strenght and it becomes more advantageous to keep its savings in euros. When the N100 falls, the euro falls and the Swiss franc becomes stronger. The best conversion point is therefore logically the transition from a period of sustainability for the euro zone, to a period of uncertainty. This is what we saw on 24 February following the Russian invasion of Ukraine.
How can you increase your profitability by combining the Swiss franc with your investments?
Let's assume that you are an average French investor, you have invested part of your savings in an ETF/Tracker representing the 40 largest French companies (Lyxor CAC 40 (DR) UCITS ETF) . You then obtain an average return of 14.36%, smoothed over the last 10 years.
Although this is already a very good performance, like many investors you are suffering from the covid crisis + the Ukrainian geopolitical context which has been causing the markets to fall for over a year now. During this last year, you would have lost 5.69% due to an economic recession.
If we assume that you know that when the markets are down it is better to convert your investment back into cash and more specifically into Swiss Francs, you would have validated your gains of the previous 9 years, i.e. 149.34% which you would have converted into Swiss Francs. In one year, you would have earned 7.07% more on your investment. Therefore, you would have gone from a smoothed return of 14.36% to 15.64% over the last 10 years.
So you can see that combining investments with safe havens in times of crisis can help you boost your profitability. We can also add that over the last 10 years you could have converted your investment during the covid period (March 2020) which would have further increased your profitability.
Conclusion
The Swiss franc is your ally, so use it! Whether it is to protect your savings from inflation or to boost your profitability during periods of economic downturn, the Swiss franc is a very powerful lever for your finances and your investments. It allows you to maintain a certain amount of liquidity while suffering from more moderate inflation than in the euro zone.
Disclamer
I would like to remind you that if you are domiciled in France or Monaco, you must declare to the tax authorities any accounts opened, held, used (at least once) or closed during the year abroad.
THIS IS NOT INVESTMENT ADVICE !
If you have any questions, I remain at your disposal in the comment space.
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French version
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Pourquoi est-il préférable pour les Européens de conserver leurs fonds de sécurités/épargnes en franc suisse plutôt qu’en euros ?
Bonjour à tous,
Une idée un peu différente de d’habitudes, aujourd’hui je souhaitais vous expliquer pourquoi est il préférable pour les Européens de conserver leurs fonds de sécurités/économies en franc suisse plutôt qu’en euros.
Commençons par un peu d'histoire. Une économie forte, un faible endettement et des investissements étrangers élevés réunissent tous les ingrédients pour faire du franc suisse une monnaie forte et une valeur refuge. Mais cette force du franc suisse n'est pas nouvelle. Le franc suisse d'aujourd'hui tire sa force de son histoire ancienne, de ses liens économiques avec la Suisse ainsi que de ses principaux partenaires.
Monnaie forte vs monnaie faible
La notion de monnaie forte est assez relative : une monnaie peut être forte par rapport à une monnaie, et faible par rapport à une autre. L’euro est fort par rapport au Yen japonais mais faible par rapport au franc suisse.
Si l’on prend comme exemple la paire EUR/CHF (autrement dit, ce que vaut un euro après conversion en franc suisse). Il fallait débourser environ 1 638 francs suisses début 2008 pour obtenir 1000 euros, tandis qu’il suffit aujourd’hui de débourser 984 francs suisses pour obtenir la même somme.
Si dans l’absolu ces deux monnaies peuvent être considérées comme fortes, le franc suisse remporte le match face à l’euro au cours de la dernière décennie avec une évolution positive du taux de change face à la monnaie unique.
Une fois cette notion de taux de change entre les devises, ainsi que de cette perpétuelle fluctuation de ce dernier comprise, il n’est déjà pas très compliqué de commencer à avoir une petite idée d'où nous souhaitons aller pour en tirer profit.
Pourquoi le franc suisse est-il si puissant ?
Dans le cas de la Suisse, trois facteurs importants viennent expliquer la robustesse du franc suisse par rapport à d’autres monnaies :
- la croissance économique ; plutôt en forme en comparaison avec l’international et qui a su traverser les dernières crises sans trop de dommages.
- le faible endettement ; malgré la crise, le niveau d’endettement de la Suisse reste bien inférieur à celui de ses homologues européens. Si le taux d’endettement de la Suisse ne dépasse pas les 30% du PIB, ceux de ses voisins s’envolent avec 116,3% pour la France et 153,5% pour l’Italie.
- la stabilité du contexte géopolitique ; Contrairement à certaines zones monétaires relativement instables en raison de facteurs géopolitiques et/ou d’une inflation galopante, la Suisse rassure de par sa grande stabilité économique et politique.
Un lien de corrélation entre le franc suisse et le N100 (Euronext 100 index) ?
Oui, mais pas que, il parait évident aux vues des différentes évolutions de ces deux actifs qu’un lien de corrélation est bien présent. Il est relativement simple à expliquer. Nous pouvons observer que dans le passé, lorsque le N100 performe il attire des investisseurs, par la même occasion, il fait augmenter la puissance de l’euro et contribue donc à faire diminuer la puissance du franc suisse. Tandis que lors des moment d’incertitude économique ou bien de récession, les investisseurs fuit le N100 ainsi que l’euro pour se réfugier (d’où le terme de monnaie refuge) en franc suisse. La puissance du franc suisse augmente alors et permet au investisseur de continuer à gagner du pouvoir d’achat.
Nous pouvons également ajouter à cela que c’est un très bon moyen pour les investisseurs européens qui souhaitent garder leurs épargnes liquides de lutter contre l’inflation. En effet en 2021, l’inflation moyenne dans la zone euro a été de 5% tandis que le franc suisse à augmenter de 4,47% par rapport à l’euro. Nous pouvons donc en déduire qu’un Européen qui a laissé ces liquidités en euro a perdu 5% de pouvoir d’achat sur ces dernières tandis qu’un Européens qui aurait converti ces liquidités en franc suisse n’aurait quant à lui perdu que 0,53% de son pouvoir d’achat.
Pourquoi est-il donc important de conserver son épargne en franc suisse ?
Dans le cas où vous souhaiter garder votre épargne liquide tout en évitant de prendre des risques trop importants, il me paraît évident que la conserver en franc suisse sera la meilleure des solutions. Le franc suisse par rapport à l’euro, a tous les avantages d’un placement financier, tout en gardant la liquidité d’une monnaie. Il est évidemment moins risqué que l’or ou les matières premières et permet d’obtenir sur ces dix dernière un rendement annuel moyen d’environ 3%. C’est un bon moyen de convertir ces investissements en cash lors des récessions, mais également de lutter contre l’inflation lors des périodes d’incertitudes ou encore de protéger son épargne contre l’augmentation du coût de la vie.
Comment trouver le meilleur point de conversion ?
Amateur d’analyse technique, c’est à nous, commençons par cet évident canal baissier présenter depuis début 2018. Nous pouvons observer que le franc suisse prend de plus en plus de puissance par rapport à l’euro et continue d’osciller à l’intérieur de ce canal. À l’heure où j’écris cet article (le 11 novembre 2022) nous avons pu observer lors du mois dernier une figure de retournement haussière qui n’a pour l’instant certes pas été validée, mais qui est venue tester la résistance n°1 (0.99453CHF). Pour l’instant, même en présence de cette figure de retournement en unité de temps journalière, l’euro reste baissier par rapport au franc suisse. Il reste donc intéressant de convertir son épargne en franc suisse. Nous pourrons envisager un retournement lorsque l’euro viendra casser les 5 résistances et surtout lorsque nous aurons une cassure confirmée par le haut du canal baissier.
D’un point de vue plus macroéconomique, nous avons pu observer un lien de corrélation entre le N100 et l’EUR/CHF, nous pouvons en déduire que lorsque le N100 performe, l’euro prend de la puissance et il devient donc plus avantageux de garder son épargne en euros. Tandis que lorsque le N100 régresse, l’euro chute et donc le franc Suisse prend plus de puissance. Le meilleur point de conversion est donc en toute logique le passage d’une période de pérennité pour la zone euro, à celle d’une période d’incertitude. C’est ce que nous avons pue observer le 24 février dernier suite à l’invasion de l’Ukraine par la Russie.
Comment augmenter sa rentabilité en combinant le franc suisse à ses investissements ?
Partons du principe que vous êtes un investisseur français lambda, vous avez placé une partie de vos économies sur un ETF/Tracker représentant les 40 plus grosses sociétés françaises ( Lyxor CAC 40 (DR) UCITS ETF ). Vous obtenez alors un rendement moyen lissé sur les 10 dernières années de 14.36%.
Bien que ce soit déjà une très belle performance, comme beaucoup d’investisseur vous subissez la crise du covid + le contexte géopolitique ukrainien qui fait chuter les marchés depuis maintenant plus d’un an. Lors de cette dernière année, vous auriez perdu 5,69% dû à une récession économique.
Si nous partons du principe que vous savez que lorsque les marchés s’essouffle qu’il est préférable de reconvertir votre investissement en cash et plus particulièrement en franc suisse, vous auriez alors validée vos gains des 9 années précédentes, cette à dire 149,34% que vous auriez alors converti en franc suisse. Ce qui en une année, vous aurez permis de gagner 7,07 % en plus sur votre investissement. Vous seriez donc passé d’un rendement lissé sur ces 10 dernières années de 14,36% à 15,64%.
Vous comprenez donc que combiner l’investissement ainsi que les valeurs refuges en temps de crise peut vous aider à booster votre rentabilité. Nous pouvons ajouter à cela qu'au cours des 10 dernières années vous auriez également pu convertir votre investissement lors de la période du covid (mars 2020) ce qui aurez encore augmenter votre rentabilité.
Conclusion
Le franc suisse est votre allié alors utilisé le ! Que ce soit pour protéger votre épargne de l’inflation ou bien pour booster votre rentabilité lors des périodes d’essoufflement, le franc suisse est un effet de levier très puissant pour vos finances et vos investissements. Il permet de conserver une certaine liquidité tout en subissant une inflation plus modérée que dans la zone euro.
Disclamer
Je tiens à rappeler que si vous êtes domicilié en France ou à Monaco, vous devez déclarer à l'administration fiscale les comptes ouverts, détenus, utilisés (au moins une fois) ou clos dans l'année à l'étranger.
CECI N'EST PAS UN CONSEIL EN INVESTISSEMENT !
Si vous avez des questions, je reste à votre disposition dans l'espace commentaire.
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Thanks to Owen (owensn) for his help with the translation.
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Making MORE Money 🤑 Side Hustle Ideas Hi Traders, Investors and Speculators 📈📉
Times are tough. With forever increasing inflation comes forever increases prices of gas, food and other inescapable living expenses. Although the cost of things keeps on rising, our salaries unfortunately, do not. So today I've done something a little different, and pulled up a table on things you can do part time to make additional money. Please remember to hit like to show your appreciation for the efforts that went into this post :-)
Let's break it down:
1) TRADING 📈 📉
Speculating markets can be challenging no doubt, but if you do it right and have the patience, you can most definitely make more than the basic savings cost the bank offers you (which is 3% - 5% per year, depending on your capital). Remember that these are ideas to make extra money . So don't go quitting your full time job and sell your house to trade, even the guys on Wall Street earn a basic.
2) TUTORING 📚
Tutoring can be a great source of additional income. The only catch with this, naturally is you would need some sort of education in the subjects that you are tutoring. The field for tutoring is wide. You could teach online, or at a student's house. Tutoring doesn't only mean math or science. Can you speak a foreign language apart form English? This could be an opportunity for you to tutor a foreign language!
3) HANDYMAN 🔨🔌
People need handymen for all sorts of reasons. Perhaps an old lady needs help putting up curtains, or the man next door can't figure out how to change his plugs. Maybe your cousin wants to paint the house, or build a shed... If you have a few tools, this could be a lucrative extra income.
4) MUSIC 🎭🎶📯
Can you play a musical instrument? Or sing really well? Many people would love to learn. Teaching them what you've learned can be a great additional income, and if you're good at it, high paying as well.
5) GARDENING 🌻🌼🌷🌲
Gardening is like pineapple on pizza - you either love it or you hate it. Luckily, this makes for an excellent opportunity if you enjoy gardening. If you're knowledgeable on plants, you could either offering landscaping advice or even put together a small team of workers to redo a garden. You could even stem plants, grow them and sell them... pure profit !
6) CLEANING 🧼🧺
I have a friend who started a cleaning company when her children left the house... she now makes more money than her husband, who has a corporate job. She has a team of ladies who clean houses before people move into a new place or as they leave. But the options are endless.
7) RETAIL ⌚🎁👓
Perhaps the most common way to earn a profit, is to hunt bargains and sell products on an online platform for a higher price. The options here are also endless, just keep in mind import taxes and fees for listing on the platform.
There are many more ideas to earn additional income on top of your salary, these are a few that came to the top of my mind. I hope you enjoyed this post today!
_______________________
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We thank you for your support !
CryptoCheck
HOW TO GET RICH?
1. Money mindset is everything
You need to have a positive money mindset when it comes to creating wealth. Everyone carries a money story and it’s your job to understand what yours is and if it’s holding you back. Reframing your story to a millionaire’s mindset is essential for success because rich people think differently. How to get rich can’t be a passing phase in your life; it takes work and commitment.
2. Millionaires still budget
Hard to believe, but it’s true. Even millionaires follow a budget. The biggest secret on how to get rich and stay rich is spending less than you bring in. There will always be wants that exceed budget limits, even for millionaires, because there is not an unlimited supply of money.
3. Money management is key
Good money management is so important to get rich and stay rich. Money management is a behavior and habit. You need to be mindful of where you are investing and spending your money. There is a specific strategy to growing your wealth and maintaining it and you must follow it like you do a workout regime.
4. Invest your money for growth
Investing in assets that will appreciate over time and provide you with a return on your investment such as dividend or interest payments is smart. The goal is to build your asset portfolio and make it so strong that you can live off the passive income in your retirement.
5. Build your business around your personal financial goals
As a business owner you have more control over the money you make versus being an employee with a set salary. If you want more money in your pockets, you can increase your revenue and your profit margins to ensure you are taking home more money. The more profits you have in your business the more you can pay yourself a dividend or bonus, depending on the legal structure of your business.
6. Create multiple income streams
Smart business owners create more than one income streamas it protects them from fluctuations in the market. That means if one source of revenue dries up due to market conditions, other sources of income can protect you from a loss.
7. CONCLUSION:
The bottom line is that knowing how to get rich is something that is learned. There are no guarantees that if you start a business that you will get rich because even the best business ideas fail due to poor execution. But if you educate yourself and get help in making your business a success, you will increase your chances of success.
Savings Rate - Free Falling - 90% CollapseWhois gonna buy all those Model Y's, iPhone 14's/13''s/11's, and assorted GPUs for strip mining Klepto Coins?
Apparently - far fewer now.
A 90% collapse in the Personal Savings Rate...
Not Bullish.
_____________________________________________________________________________________________
Consumer Credit expansion is Historic.
The Battle for Interest Rates: Tezos (XTZ) vs Ethereum (ETH2)Been writing a few long articles lately but the tl;dr of it is that now that interest rates are going up, the asset speculation market (real estate, stocks, venture capital, crypto/NFTs) is largely over and money will start to flow into financial products that provide more "reliable" returns - mainly interest rates.
Given that the banks are dragging its feet in terms of giving people interest in their savings accounts, coins that offer reliable staking rewards will probably start to gain more attention as time goes on.
I've been promoting the coin Tezos quite a bit lately since it's the coin that I feel like has the biggest long-term promise. They currently offer:
1) staking rewards (4.63% on Coinbase but higher if you stake them yourself)
2) on-chain governance (which most don't have, including Bitcoin and Ethereum)
3) people building/minting lots of things on top of it all the time, despite the dips in the market right now
You probably remember me stanning for ETH since that's how I got my first successes is crypto, but to be honest they may be in trouble longer term if they don't do their merge sooner than later - gas fees are one thing but their decision to stick to off-chain governance models (basically trusting its users to make decisions behind closed doors) has been causing major issues in some projects, especially in DAOs. (Look up Brantley and ENS for an example of what happens with coin-based voting systems.)
Whether I give up on ETH completely (I did sell off a pretty big chunk of it recently) will largely depend on how the Consensys merge goes this August and if they move towards or away from the ideals that they're advocating for all the time. They have a lot of catching up to do because #XTZ right now has all of the things they like to talk about already running.
For the average person out there, what they're going to see is banks and crypto competing against each other in something that more people can understand: interest rates. Right now crypto is winning since they have the capacity to offer people better rates than the banks are - and can definitely win if they play their cards right. NFTs are still confusing for most people but one number being higher than another number is something that almost anyone can understand. You might even argue that this is the first time crypto is competing against the banks in a very direct way.
The markets might look scary right now but once it settles down we'll start to see new patterns emerge with new ideas and products taking the scene.
Markets Unresponsive to ETH2's Test Merge: What's Rallying Now?Ethereum holders were hoping for a big rally after this week's "merge" on ETH's primary test network, Ropsten, but so far the markets have been responsive.
Coins that offer staking rewards, however, did fairly well this week as a whole - the two winners being Tezos (XTZ) and Chainlink (LINK) which saw big gains today and over the course of this week as a whole.
Tezos:
- Fork-less upgrades and on-chain governance models on XTZ provide tangible solutions to a lot of the issues the crypto industry is going through right now, especially in DAOs.
- Recession talks are getting more people into a savings mindset - and Tezos' accessible and competitive rates (4.6%) makes it very appealing for crypto holders to convert to.
- The interest in NFTs from artists and art collectors are starting to migrate over to chains like XTZ ever since gas-fees started to get out of control on the ETH ecosystems - time will tell if the Consensys "Merge" in August will have developers and artists return but for now, Tezos and other layer 2s are taking advantage of the lull and pulling ahead.
Chainlink:
- Working on many background infrastructure projects at high levels.
- Has an interesting history (which involves the 4chan crowd, oddly enough) that gave it a cult-like status a few years ago that seems to be paying off today.
--
While the crypto market as a whole has remained fairly flat-lined this week, the projects with the biggest gains seem to have a few things in common: the offer of staking rewards; and a visible community backing the project during its downturns, thus "buying the dip". If you're a long-term trader, these trends are positive signs that the asset has real resilience behind them.
www.forbes.com
Yearn Finance: A World of Painthis is a "governance" token, with a paralyzingly high per unit value ($20,000 and up)
the team has no regard for establishing traits to justify the YFI token to have any non-speculative value.
solutions may involve:
1. revenue payments to YFI holders
2. token split - to normalize per unit price in context of other altcoin crypto assets
3. compensation of revenue per participation in governance decisions
the software team building yearn finance are world class however the tokens are at face value nothing but monopoly bucks
i see a massive dead cat bounce rally happening soon, followed by a very slow and painful 2022, and price never returning to the doorstep for $100,000
Personal Savings Rate - Personal Savings Decline ~300%Retails Sales was the Pre-Rush.
Get the Made in China Blow Plastics...
while you can.
A complete Disaster,r this Chart.
No New Stimmy for the Hoi Polloi.
__________________________________
Bullish...
No.
Divergences are being Ignored, for now.
OGNUSDT TECHNICAL ANALYSIS Bollinger signals says, it may lose value more if the candle stay below the line. The candle on the edge of up trend-line and one of the candle already break out the up trend-line. We can see symmetrical triangle over there but I can highly recommend for not trade at the moment. Wait for clear time then start your trade. Also our risk/reward ratio above 2.40 as well. Need to be really careful. If it lose value, it may go down till our support line.
“NFA”
Personal Savings Rate - Consumer Spending to DeclineAs the Pandemic progressed, Consumers began to spending on
Durable Goods, Home Improvement, Electronics and a host of
additional Products to improve their nesting conditions.
This dynamic applied to Americans who remained employed
through "Stay at Home" Measures.
Lower Income Consumers paid down Debt and began Investing
via WeBull, CoinBase and Robin Hood. Online gambling began to
increase markedly.
Rents were abated through moratoriums on Real Estate.
Stimulus measures provided Income substitution effects, why
work when you are assure $600 per week for one year.
Demand was brought forward for a number of Sectors.
It is now declining.
Consumers purchased new Computers, Phones, Tablets and
peripherals.
White goods and Construction Materials were extremely strong
for 16 months.
Demand has been sated, the Economy has been contracting for
a number of months.
On sector Watch:
XLE
XLU
XLK
XLB
XLP
XLY
XLI
XLC
XLV
XLF
XLRE
Breadth should be closely monitored in each of these Sectors
as it is in decline once again.
#hex about to make a NEW all time high against #BTCwould u have liked to had 56% more #bitcoin?
tested the 100 satoshi
and up 56 sats in relatively short order
CHSB LongAfter reaching ATH for SwissBorg and over 40% drop down i thing its time to back to track.. next stop 2$?.
3 Reasons Why You Should TradeNow before I started, you may have thought my top reasons were probably things like:
You can trade anywhere, you can do it anytime, and you will have a lot of free time and money.
Yes, all of these are good reasons, but I wanted to give you my top three reasons why I think that you should trade.
Reason Number Three: Trading Can Make You Money & Money Buys Happiness
I’m a firm believer that money CAN buy happiness.
Now, I know that this is controversial because people say,
“Money can’t buy you happiness.”
Based on my experience, they are wrong.
I will prove it to you.
If you’re an avid reader of this blog, a subscriber to my YouTube channel, or are a member of Rockwell Trading, you know I’m always about the facts.
I have multiple trading accounts, and recently I was trading a small account live on my YouTube channel using a trading strategy called The Wheel.
Many of you are already trading this strategy as well.
On this account up to this point, I have made $3,204, in a month.
Even though this isn’t my main account, and is one of my smaller ones, $3,200 is not too bad.
Let me prove to you how money can buy happiness.
Let me ask you, do know somebody who is in a tough spot right now with everything that we have going on in the world?
Do you know someone who got laid off and couldn’t pay their rent?
Someone who got sick and couldn’t afford to buy the needed medication?
What about somebody whose car broke down, and didn’t have money to fix it making transportation difficult?
So so let me ask you this. What if you could have given them $3,204?
Do you think that this could have changed that person’s life?
Making $3,000 for me is nice, but it doesn’t change my life.
But maybe you know somebody whose life we can change with this.
Very recently, I decided to give away that month’s worth of profits to a few people in need.
I had our members and viewers nominate someone they knew, who was currently having a tough time.
We received so many applications, and I reviewed the (heart-wrenching) submissions.
I picked the two candidates who I felt could use it the most, and I split the profits from this trading account and sent them a check.
It helped them out a great deal, and it meant the world to them.
So for me, this was very solid proof that money CAN buy happiness, and can change your life for the better.
I believe we have a responsibility to make more money to help not just ourselves, but others.
Money buys happiness and this is why I will keep doing it.
I’m doing this information out there because I want you to succeed.
I want you to make money to give back.
There are so many people in need that you could help.
Here is an example of one of the nominations for the recipient of the trading profits we gave away.
This nominee is a single mother of four children.
Her son had a needed surgery a while back and she got stuck with a $9,000 bill.
She’s getting garnished for this by taking $150 from each of her paychecks.
She’s a nursing assistant and doesn’t receive all that much.
She wasn’t one of the recipients that I chose as the final two, but I decided to send her the money that she needed anyway.
Now doesn’t have to worry about her paychecks getting garnished for a whole year.
Here is an email that I received over the weekend, and it’s from a man named Robert, and it read,
“Markus, thank you for being you, brother! Could go into a long story about how ironic it is that I’ve been a Rockwell member for almost four years and finally started applying your trading rules in August of 2020, and had one of my best months ever."
"But that’s not what this is all about. I would like to donate an additional $300 to whoever you decide to give the money to. I feel very blessed and just want to pay it forward. Let me know the best method to get the money to you."
"Thanks for your persistence and all you do.”
Why I’m showing you this e-mail? This is exactly what happens when we start making money together.
I know that people are probably telling you,
“You can’t make money with trading.”
Well, you know what? Prove them wrong. You can make money with trading.
Is it easy? No, because you need three things:
You need the right strategy, the right tools, and the right mindset.
Together we can make a difference
Money buys happiness.
I believe we have a moral obligation to make as much money as we possibly can to be like Robert.
I know that many of you are already donating.
I mean, you have told me in these emails and I’m so, so proud of you for what you’re doing already.
Together we can make a difference.
This is what this blog is all about, and this is what this message is all about.
Analysis: Earn 12% interest APY on stable coins and fiat on NEXOThe following is NOT financial advice:
Still feels like mainstream is not aware of the interest savings options available these days. On the Nexo platform they recently raised their interest rate another 2% and you can now earn up to 12% compound interest in stable coins and fiat currencies and a whopping 8% on crypto assets. Paid out daily! The highest interest rates are paid if you let the interest payment be paid out in Nexo tokens and if you stake 10% of your total assets in Nexo tokens as well. Additionally Nexo pays out annually a dividend to their token holders annually. Hence a look at the Nexo token and if it makes sense to maximize your interest rate on Nexo using the Nexo token payout method.
The short answer is it depends on your appetite for risk. Generally speaking if you want to maximize the interest earned it makes sense however you have a currency risk so to speak when you want to realize your gains in fiat currency.
Looking at the graph which shows the Nexo token in Euro and on the bottom Bitcoin in Euro. One sees that just before the annual Nexo dividend payout the value in Nexo rises, but (of course) crashes just before and after the payout. Also to be considered is that if the crypto market / Bitcoin crashes Nexo is pulled down as well loosing interest.
So if you want a more stable interest in e.g. your Euro savings just be happy with the 8% interest you are able to achieve. That's already fantastic in today's negative interest environment.
If you follow the market closely and have a more mid-term (over years) horizon you can of course make use of the extra 4%.
PINS - One of Potential Future Trending Business The world shocked by corona virus that kill 682.885 people around the world. Until now, this virus still spreading and haunting many country (mine including). So sad. People then making many policy to disrupt this virus and stop it to spreading again. One of the policies is social distancing that made many traditional business suffered and slow down global economy. In fact, triggered economy crisis in USA, and Europe.
But not all business down, some of them survive even growing nowadays. One of them is social media business. Here, I share about PINS, a code stock of Pinterest. Pinterest is a "social network" with boards. It is like you pin an image and short information on the board. Making people know what is your thoughts and ideas. A simple idea but can visualized beautifully by Silbermann. With the features like that, people can use Pinterest for make a catalogs and triggered shopping; data analysis by company to track the popular items among market to build their marketing strategy. So, generally, it has a potential future business. And with this corona virus and social distancing, this Pinterest growing more and more. Okay, now, lets see the chart.
PINS making bullish pattern, challenged 26-28. and all of sudden broke out with huge gaps.This reflected a urgency movement from buyers. And gives us a clue the potential future movement for this PINS. Now, buyers once again facing the strong resistance 34-36 of sellers territory. If they can breakout this resistance, and making solid ground after that, then, buyers has a high possibility can reach 57-58. An interesting target for this PINS.
So, make PINS as your watchlist and monitor its movement.
Stay blessed
Jee
