1 00:00:00,000 --> 00:00:05,279 the general consensus is that 40 of the 2 00:00:03,540 --> 00:00:07,620 world's population is financially 3 00:00:05,279 --> 00:00:09,360 illiterate and things get even worse 4 00:00:07,620 --> 00:00:11,639 when you evaluate each country 5 00:00:09,360 --> 00:00:13,920 individually now we don't want to scare 6 00:00:11,639 --> 00:00:17,160 anybody but in developing countries this 7 00:00:13,920 --> 00:00:20,520 percentage skyrockets to almost 80 8 00:00:17,160 --> 00:00:23,520 percent and make no mistake okay there 9 00:00:20,520 --> 00:00:25,439 is a price to pay for ignorance a report 10 00:00:23,520 --> 00:00:27,300 from The National Financial Educators 11 00:00:25,439 --> 00:00:30,779 Council shows the lack of financial 12 00:00:27,300 --> 00:00:34,079 literacy costs 15 percent of adults at 13 00:00:30,779 --> 00:00:35,520 least ten thousand dollars in 2022 and 14 00:00:34,079 --> 00:00:38,460 if you don't want to be one of them 15 00:00:35,520 --> 00:00:43,140 you'd better watch this video here are 16 00:00:38,460 --> 00:00:46,020 15 ways to increase your financial IQ 17 00:00:43,140 --> 00:00:49,020 welcome to a lux 18 00:00:46,020 --> 00:00:51,780 so number one first and foremost you 19 00:00:49,020 --> 00:00:54,120 need to understand the finance Matrix 20 00:00:51,780 --> 00:00:55,980 now this is the foundation of all the 21 00:00:54,120 --> 00:00:57,600 arguments we're going to expand on in 22 00:00:55,980 --> 00:00:59,219 this video so make sure you've got a 23 00:00:57,600 --> 00:01:01,620 decent understanding of how the banking 24 00:00:59,219 --> 00:01:04,379 system and how money work before diving 25 00:01:01,620 --> 00:01:05,939 in now we dedicated two videos on these 26 00:01:04,379 --> 00:01:08,340 so if you feel like you don't understand 27 00:01:05,939 --> 00:01:10,380 how money Ebbs and flows through the 28 00:01:08,340 --> 00:01:12,479 economy we encourage you to watch those 29 00:01:10,380 --> 00:01:15,060 videos first and then Circle back to 30 00:01:12,479 --> 00:01:16,860 this one anyway grasping the 31 00:01:15,060 --> 00:01:19,200 complexities of the banking system and 32 00:01:16,860 --> 00:01:22,020 the inner workings of money is the basis 33 00:01:19,200 --> 00:01:24,299 for increasing your financial IQ by 34 00:01:22,020 --> 00:01:27,360 mastering key Concepts such as interest 35 00:01:24,299 --> 00:01:30,060 rates inflation and credit you can craft 36 00:01:27,360 --> 00:01:32,520 a strategic approach to saving investing 37 00:01:30,060 --> 00:01:35,100 and managing risk and this will allow 38 00:01:32,520 --> 00:01:37,740 you to optimize your wealth and steer 39 00:01:35,100 --> 00:01:39,658 clear of potential hazards acquainting 40 00:01:37,740 --> 00:01:42,840 yourself with the fundamentals of loans 41 00:01:39,658 --> 00:01:45,720 and borrowing equips you to utilize debt 42 00:01:42,840 --> 00:01:47,579 judiciously it'll also make you smarter 43 00:01:45,720 --> 00:01:49,920 when it comes to selecting the most 44 00:01:47,579 --> 00:01:51,780 advantageous credit products and 45 00:01:49,920 --> 00:01:54,180 securing favorable terms during 46 00:01:51,780 --> 00:01:55,740 negotiations with lenders now 47 00:01:54,180 --> 00:01:57,600 comprehensive understanding of the 48 00:01:55,740 --> 00:01:59,460 banking system and monetary mechanisms 49 00:01:57,600 --> 00:02:02,340 not only bolsters your personal 50 00:01:59,460 --> 00:02:04,560 financial management prowess but it also 51 00:02:02,340 --> 00:02:07,259 expands your comprehension of 52 00:02:04,560 --> 00:02:09,919 overarching economic forces we're of 53 00:02:07,259 --> 00:02:12,540 course talking about macroeconomics here 54 00:02:09,919 --> 00:02:14,700 recognizing the ways in which banks and 55 00:02:12,540 --> 00:02:17,160 monetary policies shape The Wider 56 00:02:14,700 --> 00:02:19,560 economy empowers you to adapt your 57 00:02:17,160 --> 00:02:22,560 financial game plan in response to 58 00:02:19,560 --> 00:02:24,780 fluctuating economic circumstances this 59 00:02:22,560 --> 00:02:27,239 is important if you want to ensure that 60 00:02:24,780 --> 00:02:29,640 your Investments maintain diversity and 61 00:02:27,239 --> 00:02:32,879 that your financial objectives remain 62 00:02:29,640 --> 00:02:35,420 Within Reach remember billionaires are 63 00:02:32,879 --> 00:02:38,099 made during times of economic turmoil 64 00:02:35,420 --> 00:02:40,260 financially educated people see these 65 00:02:38,099 --> 00:02:42,900 moments as opportunities because they 66 00:02:40,260 --> 00:02:45,180 know the economy has a life cycle of its 67 00:02:42,900 --> 00:02:47,340 own these are the best times to build 68 00:02:45,180 --> 00:02:50,040 generational wealth and they only come 69 00:02:47,340 --> 00:02:52,440 around about once every few decades this 70 00:02:50,040 --> 00:02:54,480 is why investing time and effort in 71 00:02:52,440 --> 00:02:56,879 learning about the banking system and 72 00:02:54,480 --> 00:03:00,239 money is an invaluable investment in 73 00:02:56,879 --> 00:03:02,160 yourself and your financial future this 74 00:03:00,239 --> 00:03:04,019 foundational knowledge equips you with 75 00:03:02,160 --> 00:03:06,420 the tools necessary for Effective 76 00:03:04,019 --> 00:03:10,019 decision making astute risk management 77 00:03:06,420 --> 00:03:14,940 and the cultivation of wealth 78 00:03:10,019 --> 00:03:17,760 number two Master the rule of 72. 79 00:03:14,940 --> 00:03:19,739 the rule of 72 is an ingenious yet 80 00:03:17,760 --> 00:03:21,720 straightforward formula employed to 81 00:03:19,739 --> 00:03:24,060 approximate the number of years needed 82 00:03:21,720 --> 00:03:26,700 to double the value of an investment or 83 00:03:24,060 --> 00:03:29,340 funds deposited at a consistent annual 84 00:03:26,700 --> 00:03:31,140 interest rate so this convenient tool 85 00:03:29,340 --> 00:03:33,420 not only facilitates a deeper 86 00:03:31,140 --> 00:03:35,879 comprehension of the formidable power of 87 00:03:33,420 --> 00:03:38,220 compounding but it also enables Swift 88 00:03:35,879 --> 00:03:40,739 comparisons of the prospective growth 89 00:03:38,220 --> 00:03:44,099 trajectories of various Investments so 90 00:03:40,739 --> 00:03:47,459 to harness the rule of 72 simply divide 91 00:03:44,099 --> 00:03:49,680 72 by the annual interest rate expressed 92 00:03:47,459 --> 00:03:51,959 as a percentage the resulting figure 93 00:03:49,680 --> 00:03:54,480 offers an estimation of the number of 94 00:03:51,959 --> 00:03:57,180 years it'll take for your investment to 95 00:03:54,480 --> 00:03:58,980 double in value for instance with an 96 00:03:57,180 --> 00:04:01,860 investment boasting an annual interest 97 00:03:58,980 --> 00:04:04,319 rate of six percent you can expect the 98 00:04:01,860 --> 00:04:07,500 value to double in approximately 12 99 00:04:04,319 --> 00:04:10,319 years bear in mind though the rule of 72 100 00:04:07,500 --> 00:04:12,480 serves as an approximation and may not 101 00:04:10,319 --> 00:04:14,700 always provide pinpoint accuracy 102 00:04:12,480 --> 00:04:18,180 particularly for higher interest rates 103 00:04:14,700 --> 00:04:20,040 or When taking into account fees taxes 104 00:04:18,180 --> 00:04:22,680 and other variables that could influence 105 00:04:20,040 --> 00:04:24,479 an investment's return nonetheless 106 00:04:22,680 --> 00:04:27,120 though it still functions as an 107 00:04:24,479 --> 00:04:29,040 invaluable mental shortcut for swiftly 108 00:04:27,120 --> 00:04:31,139 grasping the potential growth of an 109 00:04:29,040 --> 00:04:33,780 investment and how compounding interest 110 00:04:31,139 --> 00:04:37,800 can expedite wealth accumulation over 111 00:04:33,780 --> 00:04:39,659 time so by mastering the rule of 72 you 112 00:04:37,800 --> 00:04:41,880 can acquire a heightened understanding 113 00:04:39,659 --> 00:04:44,460 of the influence of interest rates on 114 00:04:41,880 --> 00:04:46,680 your Investments make more judicious 115 00:04:44,460 --> 00:04:48,900 investment Decisions by rapidly 116 00:04:46,680 --> 00:04:51,479 contrasting potential growth of diverse 117 00:04:48,900 --> 00:04:53,580 investment options you can cultivate a 118 00:04:51,479 --> 00:04:56,159 lucid perspective on the significance of 119 00:04:53,580 --> 00:04:58,979 compounding and the time value of money 120 00:04:56,159 --> 00:05:01,080 you can employ that rule to establish 121 00:04:58,979 --> 00:05:03,000 pragmatic expectations for your 122 00:05:01,080 --> 00:05:05,699 investment objectives and your time 123 00:05:03,000 --> 00:05:07,919 frames and Foster a profound 124 00:05:05,699 --> 00:05:10,020 appreciation for the necessity of 125 00:05:07,919 --> 00:05:13,320 initiating savings and investment plans 126 00:05:10,020 --> 00:05:16,139 early in order to fully capitalize on 127 00:05:13,320 --> 00:05:20,820 the advantages of compound and interest 128 00:05:16,139 --> 00:05:23,220 number three decode behavioral Finance 129 00:05:20,820 --> 00:05:25,979 behavioral Finance is a fascinating 130 00:05:23,220 --> 00:05:28,440 field of study that melds psychology and 131 00:05:25,979 --> 00:05:30,960 finance to unravel how human emotions 132 00:05:28,440 --> 00:05:34,020 and cognitive biases shape financial 133 00:05:30,960 --> 00:05:36,360 decision making its primary objective is 134 00:05:34,020 --> 00:05:38,880 to explain why individuals frequently 135 00:05:36,360 --> 00:05:40,940 make irrational choices despite having 136 00:05:38,880 --> 00:05:44,400 access to all the pertinent information 137 00:05:40,940 --> 00:05:46,979 by demystifying behavioral Finance you 138 00:05:44,400 --> 00:05:49,139 can pinpoint and surmount biases that 139 00:05:46,979 --> 00:05:52,139 could adversely affect your financial 140 00:05:49,139 --> 00:05:55,039 decisions and outcomes crucial Concepts 141 00:05:52,139 --> 00:05:58,440 within behavioral Finance Encompass 142 00:05:55,039 --> 00:06:01,080 overconfidence the tendency to overrate 143 00:05:58,440 --> 00:06:03,720 one's capabilities or the Precision of 144 00:06:01,080 --> 00:06:06,120 one's beliefs culminating in excessive 145 00:06:03,720 --> 00:06:07,639 risk-taking or subpar investment 146 00:06:06,120 --> 00:06:11,220 decisions 147 00:06:07,639 --> 00:06:13,500 confirmation bias the predisposition to 148 00:06:11,220 --> 00:06:16,440 search for and prioritize information 149 00:06:13,500 --> 00:06:18,419 that corroborates preconceived beliefs 150 00:06:16,440 --> 00:06:20,520 while dismissing or minimizing 151 00:06:18,419 --> 00:06:22,800 conflicting evidence leading to 152 00:06:20,520 --> 00:06:24,680 narrow-mindedness and improved and 153 00:06:22,800 --> 00:06:27,840 financial choices 154 00:06:24,680 --> 00:06:30,360 loss aversion the phenomenal whereby 155 00:06:27,840 --> 00:06:32,639 individuals experience the sting of 156 00:06:30,360 --> 00:06:34,860 losses more acutely than the 157 00:06:32,639 --> 00:06:37,800 satisfaction of equivalent gains 158 00:06:34,860 --> 00:06:40,800 resulting in hanging on to failing 159 00:06:37,800 --> 00:06:43,699 Investments for too long or prematurely 160 00:06:40,800 --> 00:06:47,100 offloading profitable ones 161 00:06:43,699 --> 00:06:49,440 anchoring a cognitive bias wherein a 162 00:06:47,100 --> 00:06:52,259 person relies excessively on their 163 00:06:49,440 --> 00:06:54,960 initial piece of information the anchor 164 00:06:52,259 --> 00:06:57,659 when making their decisions in finance 165 00:06:54,960 --> 00:07:00,180 this can manifest as an investor basing 166 00:06:57,659 --> 00:07:04,440 their asset valuation on historical 167 00:07:00,180 --> 00:07:08,280 prices rather than intrinsic value 168 00:07:04,440 --> 00:07:11,220 herd mentality the tendency to mimic the 169 00:07:08,280 --> 00:07:13,199 actions or opinions of others even when 170 00:07:11,220 --> 00:07:15,660 contradicting one's beliefs or 171 00:07:13,199 --> 00:07:19,280 information which can give rise to 172 00:07:15,660 --> 00:07:23,160 irrational market trends and Bubbles 173 00:07:19,280 --> 00:07:25,740 mental accounting the inclination to 174 00:07:23,160 --> 00:07:28,319 treat money differently depending on its 175 00:07:25,740 --> 00:07:30,599 origin or intended use engendering 176 00:07:28,319 --> 00:07:32,520 inconsistent and illogical financial 177 00:07:30,599 --> 00:07:36,000 behavior 178 00:07:32,520 --> 00:07:38,520 Regency bias the proclivity to assign 179 00:07:36,000 --> 00:07:40,560 greater importance to recent events or 180 00:07:38,520 --> 00:07:43,020 information when making decisions 181 00:07:40,560 --> 00:07:45,720 potentially resulting in an overreaction 182 00:07:43,020 --> 00:07:48,780 to short-term Market fluctuations and 183 00:07:45,720 --> 00:07:51,360 disregard for long-term trends 184 00:07:48,780 --> 00:07:53,639 so to decode and surmount these 185 00:07:51,360 --> 00:07:55,620 behavioral biases contemplate the 186 00:07:53,639 --> 00:07:58,139 following tactics say Alexa 187 00:07:55,620 --> 00:07:59,880 increase your self-awareness 188 00:07:58,139 --> 00:08:02,220 periodically reflect on your 189 00:07:59,880 --> 00:08:05,220 decision-making processes and pinpoint 190 00:08:02,220 --> 00:08:07,440 instances where emotions or biases may 191 00:08:05,220 --> 00:08:09,360 have swayed your choice and we actually 192 00:08:07,440 --> 00:08:13,259 know a cool little trick to help you out 193 00:08:09,360 --> 00:08:14,819 here it's called the 72-hour rule we 194 00:08:13,259 --> 00:08:17,280 learned this from Carl Richards 195 00:08:14,819 --> 00:08:19,979 fantastic personal finance book the 196 00:08:17,280 --> 00:08:23,039 one-page financial plan and the rule is 197 00:08:19,979 --> 00:08:25,560 quite simple for all non-essential 198 00:08:23,039 --> 00:08:29,340 purchases before you make the purchase 199 00:08:25,560 --> 00:08:31,620 wait 72 hours that's it and the same 200 00:08:29,340 --> 00:08:34,520 goes for Investments when you feel that 201 00:08:31,620 --> 00:08:37,919 fomo or fear of missing out kicking in 202 00:08:34,520 --> 00:08:41,039 you will know after some time passes if 203 00:08:37,919 --> 00:08:43,860 it's a good idea to buy the thing or not 204 00:08:41,039 --> 00:08:46,200 you should also seek diversive 205 00:08:43,860 --> 00:08:47,940 perspectives consult a range of 206 00:08:46,200 --> 00:08:50,220 information sources and entertain 207 00:08:47,940 --> 00:08:53,100 opposing viewpoints to circumvent 208 00:08:50,220 --> 00:08:54,480 confirmation bias and make well-informed 209 00:08:53,100 --> 00:08:56,700 decisions 210 00:08:54,480 --> 00:08:59,820 Implement disciplined investment 211 00:08:56,700 --> 00:09:02,760 strategies employ methodical approaches 212 00:08:59,820 --> 00:09:05,580 such as dollar cost averaging settings 213 00:09:02,760 --> 00:09:07,860 stop loss orders or adhering to a 214 00:09:05,580 --> 00:09:10,380 predetermined asset allocation to 215 00:09:07,860 --> 00:09:12,420 diminish the influence of emotions on 216 00:09:10,380 --> 00:09:16,160 your investment decisions 217 00:09:12,420 --> 00:09:18,240 as well as focusing on the long term 218 00:09:16,160 --> 00:09:21,060 prioritize your long-term Financial 219 00:09:18,240 --> 00:09:23,220 objectives and resist the impulsive 220 00:09:21,060 --> 00:09:26,959 reactions to short-term Market 221 00:09:23,220 --> 00:09:29,160 fluctuations and monitor your progress 222 00:09:26,959 --> 00:09:31,740 routinely assess your Investment 223 00:09:29,160 --> 00:09:34,140 Portfolio and financial plan to ensure 224 00:09:31,740 --> 00:09:36,779 alignment with your goals and to detect 225 00:09:34,140 --> 00:09:39,540 any instances where biases may have 226 00:09:36,779 --> 00:09:41,880 swayed your decisions by comprehending 227 00:09:39,540 --> 00:09:43,920 behavioral finance and its bearing on 228 00:09:41,880 --> 00:09:46,860 your financial decisions you can 229 00:09:43,920 --> 00:09:49,620 cultivate Superior habits and make more 230 00:09:46,860 --> 00:09:51,959 rational choices and believe us when we 231 00:09:49,620 --> 00:09:53,880 say these are the only type of choices 232 00:09:51,959 --> 00:09:55,260 that you should be making with your 233 00:09:53,880 --> 00:09:58,920 money 234 00:09:55,260 --> 00:10:00,380 number four Implement zero-based 235 00:09:58,920 --> 00:10:03,240 budgeting 236 00:10:00,380 --> 00:10:04,920 zero-based budgeting or zbb is an 237 00:10:03,240 --> 00:10:07,560 Innovative financial management approach 238 00:10:04,920 --> 00:10:09,720 that entails assigning every dollar of 239 00:10:07,560 --> 00:10:13,019 your income to particular expenses 240 00:10:09,720 --> 00:10:16,380 savings or Investments ensuring that no 241 00:10:13,019 --> 00:10:18,180 funds remain unallocated so contrary to 242 00:10:16,380 --> 00:10:22,140 Conventional budgeting techniques which 243 00:10:18,180 --> 00:10:24,440 emphasize modifying prior budgets zbb 244 00:10:22,140 --> 00:10:27,480 commences from scratch each time 245 00:10:24,440 --> 00:10:29,760 obliging you to substantiate every 246 00:10:27,480 --> 00:10:32,040 expenditure and prioritize your 247 00:10:29,760 --> 00:10:34,980 financial objectives so this method 248 00:10:32,040 --> 00:10:36,959 Fosters deliberate spending heightened 249 00:10:34,980 --> 00:10:40,320 Financial awareness and an amplified 250 00:10:36,959 --> 00:10:42,720 sense of control over your finances to 251 00:10:40,320 --> 00:10:44,820 adopt zero-based budgeting you can start 252 00:10:42,720 --> 00:10:47,760 by enumerating your monthly income 253 00:10:44,820 --> 00:10:50,040 sources which encompasses salary side 254 00:10:47,760 --> 00:10:52,380 hustles and any passive income streams 255 00:10:50,040 --> 00:10:54,480 then you're going to want to itemize all 256 00:10:52,380 --> 00:10:58,860 of your expenses categorizing them into 257 00:10:54,480 --> 00:11:01,800 fixed costs for example rent utilities 258 00:10:58,860 --> 00:11:04,920 Etc and then there variable costs like 259 00:11:01,800 --> 00:11:07,800 groceries or entertainment and lastly 260 00:11:04,920 --> 00:11:10,320 allocate the residual funds into savings 261 00:11:07,800 --> 00:11:12,720 Investments or debt repayment making 262 00:11:10,320 --> 00:11:14,480 sure that every dollar of your income is 263 00:11:12,720 --> 00:11:17,279 designed for a specific purpose 264 00:11:14,480 --> 00:11:20,100 employing a zero-based budget empowers 265 00:11:17,279 --> 00:11:22,500 you to pinpoint areas where overspending 266 00:11:20,100 --> 00:11:24,959 might be happening enabling you to 267 00:11:22,500 --> 00:11:27,480 redirect those funds toward achieving 268 00:11:24,959 --> 00:11:29,640 your financial aspirations periodically 269 00:11:27,480 --> 00:11:32,399 reviewing and fine-tuning your budget 270 00:11:29,640 --> 00:11:34,980 also Fosters accountability and ensures 271 00:11:32,399 --> 00:11:37,620 that you consistently progress toward 272 00:11:34,980 --> 00:11:39,779 Financial stability and Triumph over 273 00:11:37,620 --> 00:11:42,120 time this systematic approach can assist 274 00:11:39,779 --> 00:11:44,220 you in forging Superior money management 275 00:11:42,120 --> 00:11:46,620 habits and nurturing a more 276 00:11:44,220 --> 00:11:48,480 conscientious attitude toward your 277 00:11:46,620 --> 00:11:51,839 finances 278 00:11:48,480 --> 00:11:54,680 number five examine case studies of 279 00:11:51,839 --> 00:11:56,700 financial successes and failures 280 00:11:54,680 --> 00:11:58,980 analyzing case studies of financial 281 00:11:56,700 --> 00:12:01,140 triumphs and setbacks can yield 282 00:11:58,980 --> 00:12:03,240 Priceless insights into the tactics 283 00:12:01,140 --> 00:12:05,220 decision-making methodologies and 284 00:12:03,240 --> 00:12:08,600 external elements that contribute to 285 00:12:05,220 --> 00:12:11,279 both favorable and unfavorable outcomes 286 00:12:08,600 --> 00:12:13,800 scrutinizing real world instances will 287 00:12:11,279 --> 00:12:16,260 teach you to discern patterns assimilate 288 00:12:13,800 --> 00:12:18,240 wisdom from others experiences and 289 00:12:16,260 --> 00:12:20,880 integrate the lessons into your own 290 00:12:18,240 --> 00:12:22,800 Financial Odyssey prosperous case 291 00:12:20,880 --> 00:12:25,140 studies such as Warren Buffett's 292 00:12:22,800 --> 00:12:26,579 long-term investment strategies or the 293 00:12:25,140 --> 00:12:29,399 remarkable growth of Technology 294 00:12:26,579 --> 00:12:31,500 behemoths like apple and Amazon can 295 00:12:29,399 --> 00:12:33,540 impart a treasure Trove of knowledge on 296 00:12:31,500 --> 00:12:37,019 value investing Adept business 297 00:12:33,540 --> 00:12:39,120 management and evolving market trends by 298 00:12:37,019 --> 00:12:41,459 dissecting the driving forces Behind 299 00:12:39,120 --> 00:12:43,980 These successes you can extract insights 300 00:12:41,459 --> 00:12:46,019 into potent investment techniques the 301 00:12:43,980 --> 00:12:48,600 significance of maintaining a long-term 302 00:12:46,019 --> 00:12:50,420 Outlook and the transformative power of 303 00:12:48,600 --> 00:12:52,800 innovation in generating wealth 304 00:12:50,420 --> 00:12:55,260 conversely delving into Financial 305 00:12:52,800 --> 00:12:58,800 failures like the dramatic collapse of 306 00:12:55,260 --> 00:13:00,480 Enron or the 2008 financial crisis or 307 00:12:58,800 --> 00:13:02,880 even the more recent collapse of the 308 00:13:00,480 --> 00:13:04,980 Silicon Valley Bank can impart crucial 309 00:13:02,880 --> 00:13:07,440 lessons to the repercussions of 310 00:13:04,980 --> 00:13:10,079 unethical conduct unrestrained 311 00:13:07,440 --> 00:13:12,060 risk-taking and The Perils of succumbing 312 00:13:10,079 --> 00:13:14,760 to herd mentality 313 00:13:12,060 --> 00:13:16,320 by grasping the errors and misjudgments 314 00:13:14,760 --> 00:13:18,899 that precipitated these Financial 315 00:13:16,320 --> 00:13:21,360 catastrophes you can cultivate a more 316 00:13:18,899 --> 00:13:23,880 prudent and comprehensive approach to 317 00:13:21,360 --> 00:13:26,220 your own Financial stewardship ensuring 318 00:13:23,880 --> 00:13:29,820 that you are better equipped to steer 319 00:13:26,220 --> 00:13:33,720 through potential hazards and obstacles 320 00:13:29,820 --> 00:13:35,399 number six learn to read financial news 321 00:13:33,720 --> 00:13:37,380 critically 322 00:13:35,399 --> 00:13:39,899 cultivating the ability to critically 323 00:13:37,380 --> 00:13:42,060 read financial news is crucial for 324 00:13:39,899 --> 00:13:45,120 making well-informed decisions and 325 00:13:42,060 --> 00:13:47,600 sifting through extraneous noise amidst 326 00:13:45,120 --> 00:13:50,060 today's rapidly evolving media landscape 327 00:13:47,600 --> 00:13:52,620 Discerning valuable insights from 328 00:13:50,060 --> 00:13:55,680 sensationalized headlines is of 329 00:13:52,620 --> 00:13:57,420 Paramount importance when you hone your 330 00:13:55,680 --> 00:13:59,600 critical thinking skills you can more 331 00:13:57,420 --> 00:14:02,279 effectively evaluate the credibility 332 00:13:59,600 --> 00:14:05,579 relevance and accuracy of financial 333 00:14:02,279 --> 00:14:07,800 information Begin by scrutinizing the 334 00:14:05,579 --> 00:14:10,500 news source considering its credibility 335 00:14:07,800 --> 00:14:13,620 and potential biases Begin by 336 00:14:10,500 --> 00:14:16,200 scrutinizing the news source considering 337 00:14:13,620 --> 00:14:19,320 this source's credibility and potential 338 00:14:16,200 --> 00:14:21,300 biases because look financial news like 339 00:14:19,320 --> 00:14:23,399 all news can be swayed by various 340 00:14:21,300 --> 00:14:26,040 factors including the authors or 341 00:14:23,399 --> 00:14:28,380 Publishers interests advertising 342 00:14:26,040 --> 00:14:31,680 pressures or even political affiliations 343 00:14:28,380 --> 00:14:33,440 so stay vigilant for possible conflicts 344 00:14:31,680 --> 00:14:36,000 of interest and contemplate 345 00:14:33,440 --> 00:14:38,040 cross-referencing multiple sources to 346 00:14:36,000 --> 00:14:39,440 obtain a more balanced perspective on 347 00:14:38,040 --> 00:14:42,060 the subject matter 348 00:14:39,440 --> 00:14:44,459 diversifying your sources will introduce 349 00:14:42,060 --> 00:14:46,380 you to Alternative viewpoints and enable 350 00:14:44,459 --> 00:14:48,019 you to form a more holistic 351 00:14:46,380 --> 00:14:51,600 understanding of the topic at hand 352 00:14:48,019 --> 00:14:54,060 moreover concentrate on the caliber and 353 00:14:51,600 --> 00:14:56,519 depth of the analysis offered in the 354 00:14:54,060 --> 00:14:59,279 news seek out well-researched 355 00:14:56,519 --> 00:15:02,040 data-driven articles that substantiate 356 00:14:59,279 --> 00:15:05,060 their assertations with evidence rather 357 00:15:02,040 --> 00:15:07,620 than depending on anecdotes or opinions 358 00:15:05,060 --> 00:15:10,320 exercise caution when encountering 359 00:15:07,620 --> 00:15:12,959 Sensational headlines devised to capture 360 00:15:10,320 --> 00:15:16,139 your attention but which might lack 361 00:15:12,959 --> 00:15:18,180 substantive information by refining your 362 00:15:16,139 --> 00:15:20,519 Proficiency in critically assessing 363 00:15:18,180 --> 00:15:23,100 financial news you can more accurately 364 00:15:20,519 --> 00:15:25,800 discern valuable insights and then 365 00:15:23,100 --> 00:15:29,220 sidestep making impetuous decisions 366 00:15:25,800 --> 00:15:31,980 predicted on untrustworthy or slanted 367 00:15:29,220 --> 00:15:34,500 information remember when in doubt 368 00:15:31,980 --> 00:15:36,839 always follow the money and you will get 369 00:15:34,500 --> 00:15:40,199 your answers 370 00:15:36,839 --> 00:15:42,560 number seven challenge yourself with 371 00:15:40,199 --> 00:15:45,180 financial experiments 372 00:15:42,560 --> 00:15:47,100 embracing Financial experiments as a 373 00:15:45,180 --> 00:15:49,920 method to test your financial Acumen 374 00:15:47,100 --> 00:15:52,139 expertise and adaptability proves to Be 375 00:15:49,920 --> 00:15:54,180 an Effective approach these experiments 376 00:15:52,139 --> 00:15:56,459 May Encompass establishing short-term 377 00:15:54,180 --> 00:15:58,260 objectives experimenting with novel 378 00:15:56,459 --> 00:16:00,959 Financial tactics or delving into 379 00:15:58,260 --> 00:16:03,180 Uncharted investment prospects when 380 00:16:00,959 --> 00:16:05,519 venturing beyond your comfort zone you 381 00:16:03,180 --> 00:16:07,860 can reap invaluable insights learn from 382 00:16:05,519 --> 00:16:09,839 your experiences and augment your 383 00:16:07,860 --> 00:16:11,940 financial proficiency Financial 384 00:16:09,839 --> 00:16:14,339 experiments can manifest in various 385 00:16:11,940 --> 00:16:16,260 forms ranging from adhering to a 386 00:16:14,339 --> 00:16:18,480 stringent budget for a month to assess 387 00:16:16,260 --> 00:16:21,120 your frugality to investing in an 388 00:16:18,480 --> 00:16:23,339 emerging class to explore its risks and 389 00:16:21,120 --> 00:16:25,440 potential rewards alternative 390 00:16:23,339 --> 00:16:27,779 experiments could entail launching a 391 00:16:25,440 --> 00:16:30,360 side hustle to generate supplementary 392 00:16:27,779 --> 00:16:33,060 income or experimenting with diverse 393 00:16:30,360 --> 00:16:35,760 savings techniques to ascertain the most 394 00:16:33,060 --> 00:16:37,320 effective method for you through these 395 00:16:35,760 --> 00:16:39,240 challenges you'll cultivate a more 396 00:16:37,320 --> 00:16:42,060 profound comprehension of your financial 397 00:16:39,240 --> 00:16:44,220 habits and inclinations empowering you 398 00:16:42,060 --> 00:16:46,500 to make more informed decisions in the 399 00:16:44,220 --> 00:16:48,899 future and while embarking on these 400 00:16:46,500 --> 00:16:51,360 experiments it is crucial to adopt a 401 00:16:48,899 --> 00:16:53,639 learning mindset reflect on your 402 00:16:51,360 --> 00:16:56,639 triumphs and setbacks and remain 403 00:16:53,639 --> 00:16:58,740 receptive to change monitor your 404 00:16:56,639 --> 00:17:01,620 progress and Chronicle your experiences 405 00:16:58,740 --> 00:17:04,919 to pinpoint patterns and lessons that 406 00:17:01,620 --> 00:17:07,559 can guide your future Financial choices 407 00:17:04,919 --> 00:17:10,020 number eight analyze your favorite 408 00:17:07,559 --> 00:17:12,059 Brands financials 409 00:17:10,020 --> 00:17:14,160 examining the financials of your beloved 410 00:17:12,059 --> 00:17:15,720 Brands can be a captivating Endeavor 411 00:17:14,160 --> 00:17:18,299 allowing you to delve into Financial 412 00:17:15,720 --> 00:17:21,179 Concepts and assess the performance of 413 00:17:18,299 --> 00:17:22,980 companies that spark Your Enthusiasm by 414 00:17:21,179 --> 00:17:25,199 scrutinizing the financial statements 415 00:17:22,980 --> 00:17:27,240 annual reports and earnings of all of 416 00:17:25,199 --> 00:17:28,500 these Enterprises you can gain a deeper 417 00:17:27,240 --> 00:17:31,559 understanding of their business 418 00:17:28,500 --> 00:17:34,620 structures Revenue sources profitability 419 00:17:31,559 --> 00:17:36,840 and growth potential and this immersive 420 00:17:34,620 --> 00:17:38,580 approach allows you to develop an Acumen 421 00:17:36,840 --> 00:17:40,799 necessary for making well-informed 422 00:17:38,580 --> 00:17:43,980 investment choices while further 423 00:17:40,799 --> 00:17:46,320 augmenting your financial IQ embark on 424 00:17:43,980 --> 00:17:48,840 your analysis by perusing the company's 425 00:17:46,320 --> 00:17:51,179 income statement balance sheet and cash 426 00:17:48,840 --> 00:17:53,220 flow statement these crucial financial 427 00:17:51,179 --> 00:17:55,200 documents offer a glimpse into the 428 00:17:53,220 --> 00:17:57,000 company's fiscal well-being and 429 00:17:55,200 --> 00:17:59,400 facilitate the evaluation of its 430 00:17:57,000 --> 00:18:01,980 performance trajectory keep an eye on 431 00:17:59,400 --> 00:18:04,799 metrics such as Revenue growth profit 432 00:18:01,980 --> 00:18:07,440 margins debt levels and liquidity ratios 433 00:18:04,799 --> 00:18:09,660 by juxtaposing these figures with 434 00:18:07,440 --> 00:18:11,640 industry benchmarks or competitor data 435 00:18:09,660 --> 00:18:13,260 you you can glean insights into the 436 00:18:11,640 --> 00:18:15,660 company's relative strengths and 437 00:18:13,260 --> 00:18:18,900 weaknesses as well as its overarching 438 00:18:15,660 --> 00:18:20,700 competitive stance and finally tune in 439 00:18:18,900 --> 00:18:22,620 to earnings calls and sift through 440 00:18:20,700 --> 00:18:24,360 annual reports to acquire a more 441 00:18:22,620 --> 00:18:27,059 profound comprehension of the company's 442 00:18:24,360 --> 00:18:29,400 strategic Vision Management's Outlook 443 00:18:27,059 --> 00:18:32,100 and potential risks or opportunities 444 00:18:29,400 --> 00:18:34,500 this information provides invaluable 445 00:18:32,100 --> 00:18:36,360 context for interpreting financial data 446 00:18:34,500 --> 00:18:38,280 enabling you to cultivate a more 447 00:18:36,360 --> 00:18:39,620 holistic perspective on the company's 448 00:18:38,280 --> 00:18:41,940 prospects 449 00:18:39,620 --> 00:18:43,799 analyzing your favorite Brands 450 00:18:41,940 --> 00:18:46,320 financials not only bolsters your 451 00:18:43,799 --> 00:18:49,440 financial literacy but also equips you 452 00:18:46,320 --> 00:18:52,260 to make more informed choices as both a 453 00:18:49,440 --> 00:18:55,740 consumer and an investor 454 00:18:52,260 --> 00:18:57,360 number nine follow influential Financial 455 00:18:55,740 --> 00:18:58,919 podcasts 456 00:18:57,360 --> 00:19:01,260 watching or listening to financial 457 00:18:58,919 --> 00:19:03,419 podcasts is a great method to elevate 458 00:19:01,260 --> 00:19:05,220 your financial IQ as they offer 459 00:19:03,419 --> 00:19:07,679 invaluable insights and expert 460 00:19:05,220 --> 00:19:10,380 perspectives on various facets of 461 00:19:07,679 --> 00:19:14,160 personal finance investing and wealth 462 00:19:10,380 --> 00:19:16,020 management here's why podcasts serve as 463 00:19:14,160 --> 00:19:18,419 a convenient and readily available 464 00:19:16,020 --> 00:19:20,700 source of information that you can enjoy 465 00:19:18,419 --> 00:19:23,100 while commuting working out or during 466 00:19:20,700 --> 00:19:25,500 your leisure time they assist in keeping 467 00:19:23,100 --> 00:19:27,720 you abreast of market trends investment 468 00:19:25,500 --> 00:19:30,539 techniques and personal finance advice 469 00:19:27,720 --> 00:19:32,460 while simultaneously inspiring and 470 00:19:30,539 --> 00:19:33,720 motivating you to refine your financial 471 00:19:32,460 --> 00:19:36,360 habits 472 00:19:33,720 --> 00:19:38,220 Premiere Financial podcasts often 473 00:19:36,360 --> 00:19:40,440 showcase interviews with accomplished 474 00:19:38,220 --> 00:19:43,200 entrepreneurs investors and financial 475 00:19:40,440 --> 00:19:46,200 gurus presenting a rich tapestry of 476 00:19:43,200 --> 00:19:47,940 perspectives and pragmatic guidance by 477 00:19:46,200 --> 00:19:49,980 absorbing these discussions you can get 478 00:19:47,940 --> 00:19:52,679 yourself valuable lessons from their 479 00:19:49,980 --> 00:19:54,600 experiences missteps and tactics and 480 00:19:52,679 --> 00:19:57,179 Implement these insights into your own 481 00:19:54,600 --> 00:19:59,340 Financial Journey furthermore these 482 00:19:57,179 --> 00:20:01,559 podcasts expertly distill complex 483 00:19:59,340 --> 00:20:03,960 Financial Concepts into more palatable 484 00:20:01,559 --> 00:20:06,059 and engaging formats making it more 485 00:20:03,960 --> 00:20:08,220 simple for listeners to comprehend and 486 00:20:06,059 --> 00:20:10,860 apply their acquired knowledge and their 487 00:20:08,220 --> 00:20:13,380 daily lives to optimize the benefits of 488 00:20:10,860 --> 00:20:15,780 financial podcasts it is crucial to 489 00:20:13,380 --> 00:20:18,539 select those that resonate with your 490 00:20:15,780 --> 00:20:20,820 interests and objectives so seek out 491 00:20:18,539 --> 00:20:23,100 podcasts that Encompass a broad spectrum 492 00:20:20,820 --> 00:20:25,679 of topics such as personal finance 493 00:20:23,100 --> 00:20:28,440 investing entrepreneurship or financial 494 00:20:25,679 --> 00:20:30,660 Independence and subscribe to a variety 495 00:20:28,440 --> 00:20:32,640 of shows to guarantee exposure to a 496 00:20:30,660 --> 00:20:34,559 balanced and more diverse range of 497 00:20:32,640 --> 00:20:36,360 insights and if you're looking for a 498 00:20:34,559 --> 00:20:39,240 great way to start you should check out 499 00:20:36,360 --> 00:20:41,460 Naval ravicon's podcasts he has the 500 00:20:39,240 --> 00:20:44,400 healthiest and most logical principles 501 00:20:41,460 --> 00:20:47,760 for building and maintaining wealth 502 00:20:44,400 --> 00:20:50,460 number 10. read influential personal 503 00:20:47,760 --> 00:20:52,559 finance books reading influential 504 00:20:50,460 --> 00:20:55,140 personal finance books can significantly 505 00:20:52,559 --> 00:20:57,960 improve your financial IQ by providing 506 00:20:55,140 --> 00:21:00,360 valuable insights practical advice and 507 00:20:57,960 --> 00:21:01,500 tried and tested strategies from experts 508 00:21:00,360 --> 00:21:03,539 in the field 509 00:21:01,500 --> 00:21:05,820 these books often cover a wide range of 510 00:21:03,539 --> 00:21:08,280 topics such as budgeting saving 511 00:21:05,820 --> 00:21:10,260 investing debt management and wealth 512 00:21:08,280 --> 00:21:11,700 building by learning from the 513 00:21:10,260 --> 00:21:13,919 experiences and knowledge of 514 00:21:11,700 --> 00:21:15,960 accomplished Financial authors you can 515 00:21:13,919 --> 00:21:18,600 develop a strong foundation in personal 516 00:21:15,960 --> 00:21:21,539 finance and apply their wisdom to your 517 00:21:18,600 --> 00:21:23,580 own Financial journey and influential 518 00:21:21,539 --> 00:21:26,039 personal finance books they often 519 00:21:23,580 --> 00:21:28,260 feature relatable stories case studies 520 00:21:26,039 --> 00:21:30,659 and real life examples that make complex 521 00:21:28,260 --> 00:21:32,880 Financial Concepts a lot more accessible 522 00:21:30,659 --> 00:21:34,919 and engaging they can help you to 523 00:21:32,880 --> 00:21:38,280 identify and overcome common Financial 524 00:21:34,919 --> 00:21:40,860 challenges develop a growth mindset and 525 00:21:38,280 --> 00:21:43,559 cultivate habits that promote long-term 526 00:21:40,860 --> 00:21:45,480 financial success reading these books 527 00:21:43,559 --> 00:21:47,640 can also provide inspiration and 528 00:21:45,480 --> 00:21:50,400 motivation to take control of your 529 00:21:47,640 --> 00:21:52,500 finances set ambitious financial goals 530 00:21:50,400 --> 00:21:53,820 and pursue a path toward Financial 531 00:21:52,500 --> 00:21:55,799 Independence 532 00:21:53,820 --> 00:21:58,679 to get the most out of reading personal 533 00:21:55,799 --> 00:22:01,260 finance books consider taking notes or 534 00:21:58,679 --> 00:22:04,320 creating summaries of key takeaways and 535 00:22:01,260 --> 00:22:06,299 then applying those lessons to your own 536 00:22:04,320 --> 00:22:08,820 financial situation 537 00:22:06,299 --> 00:22:11,280 implement the strategies and techniques 538 00:22:08,820 --> 00:22:13,940 you learn in a way that best suits your 539 00:22:11,280 --> 00:22:16,559 unique financial goals and circumstances 540 00:22:13,940 --> 00:22:19,559 continuously seek out new books and 541 00:22:16,559 --> 00:22:21,240 resources to expand your knowledge stay 542 00:22:19,559 --> 00:22:23,940 up to date with the ever-changing 543 00:22:21,240 --> 00:22:26,159 financial landscape and adapt your 544 00:22:23,940 --> 00:22:28,620 financial strategies as you progress 545 00:22:26,159 --> 00:22:30,179 through different life stages and if 546 00:22:28,620 --> 00:22:32,100 you're looking for a book recommendation 547 00:22:30,179 --> 00:22:34,260 just browse here around on our Channel 548 00:22:32,100 --> 00:22:37,919 we've got plenty of videos where we 549 00:22:34,260 --> 00:22:42,659 provide overviews of great Finance books 550 00:22:37,919 --> 00:22:45,059 number 11 utilize gamified learning apps 551 00:22:42,659 --> 00:22:46,860 gamified learning apps offer an engaging 552 00:22:45,059 --> 00:22:49,020 and interactive way to build Financial 553 00:22:46,860 --> 00:22:50,880 knowledge by incorporating game-like 554 00:22:49,020 --> 00:22:53,460 elements and rewards into the 555 00:22:50,880 --> 00:22:55,260 educational experience these apps 556 00:22:53,460 --> 00:22:57,659 provide a fun and motivating environment 557 00:22:55,260 --> 00:23:00,720 that encourages users to learn Financial 558 00:22:57,659 --> 00:23:03,480 Concepts test their strategies and 559 00:23:00,720 --> 00:23:05,580 develop essential skills by utilizing 560 00:23:03,480 --> 00:23:08,100 gamified learning apps you can transform 561 00:23:05,580 --> 00:23:10,980 your financial education journey into an 562 00:23:08,100 --> 00:23:12,840 enjoyable and stimulating process some 563 00:23:10,980 --> 00:23:15,480 popular gamified learning apps such as 564 00:23:12,840 --> 00:23:17,880 wellspace or investopedia's stock 565 00:23:15,480 --> 00:23:20,460 simulator focus on stock market 566 00:23:17,880 --> 00:23:23,400 investing they allow users to create 567 00:23:20,460 --> 00:23:25,559 virtual portfolios simulate real-time 568 00:23:23,400 --> 00:23:27,740 trading and compete with friends or 569 00:23:25,559 --> 00:23:30,179 other users in a risk-free environment 570 00:23:27,740 --> 00:23:32,120 these platforms enable you to learn 571 00:23:30,179 --> 00:23:34,919 about various investment strategies 572 00:23:32,120 --> 00:23:37,080 analyze companies financial health and 573 00:23:34,919 --> 00:23:39,960 understand market dynamics all while 574 00:23:37,080 --> 00:23:41,820 having fun and earning rewards and in 575 00:23:39,960 --> 00:23:44,280 addition to stock market simulators 576 00:23:41,820 --> 00:23:46,799 there are other gamified apps designed 577 00:23:44,280 --> 00:23:49,799 to teach budgeting saving and Personal 578 00:23:46,799 --> 00:23:52,440 Finance Management these apps often use 579 00:23:49,799 --> 00:23:55,500 engaging visuals quizzes and progress 580 00:23:52,440 --> 00:23:58,679 tracking to help users develop positive 581 00:23:55,500 --> 00:24:02,220 financial habits and achieve their goals 582 00:23:58,679 --> 00:24:06,659 number 12. set up a financial vision 583 00:24:02,220 --> 00:24:09,120 board and utilize goal-based investing a 584 00:24:06,659 --> 00:24:10,500 financial vision board serves as a vivid 585 00:24:09,120 --> 00:24:13,380 representation of your financial 586 00:24:10,500 --> 00:24:16,500 Ambitions and aspirations meticulously 587 00:24:13,380 --> 00:24:18,360 crafted to inspire and Galvanize you to 588 00:24:16,500 --> 00:24:19,679 remain steadfast on your financial 589 00:24:18,360 --> 00:24:21,900 Journey 590 00:24:19,679 --> 00:24:24,840 the process of creating a vision board 591 00:24:21,900 --> 00:24:27,480 entails Gathering images quotes or 592 00:24:24,840 --> 00:24:30,120 symbols epitomizing your envisioned 593 00:24:27,480 --> 00:24:32,940 financial future and organizing them on 594 00:24:30,120 --> 00:24:35,580 a tangible or digital board the vision 595 00:24:32,940 --> 00:24:37,980 board acts as a Perpetual reminder of 596 00:24:35,580 --> 00:24:40,260 your financial aspirations guiding you 597 00:24:37,980 --> 00:24:42,200 toward decisions that align with your 598 00:24:40,260 --> 00:24:44,820 sought after outcomes 599 00:24:42,200 --> 00:24:46,440 goal-based investing is a Strategic 600 00:24:44,820 --> 00:24:49,080 investment approach centered around 601 00:24:46,440 --> 00:24:51,480 aligning your financial objectives with 602 00:24:49,080 --> 00:24:53,760 your investment blueprint rather than 603 00:24:51,480 --> 00:24:56,400 exclusively fixating on optimizing 604 00:24:53,760 --> 00:24:58,580 returns goal-based investing accentuates 605 00:24:56,400 --> 00:25:01,380 the attainment of explicit Financial 606 00:24:58,580 --> 00:25:04,020 Milestones encompassing saving for a 607 00:25:01,380 --> 00:25:06,480 house financing a child's education or 608 00:25:04,020 --> 00:25:08,520 preparing for retirement when 609 00:25:06,480 --> 00:25:10,260 pinpointing and prioritizing these 610 00:25:08,520 --> 00:25:12,539 objectives you can customize your 611 00:25:10,260 --> 00:25:15,480 investment strategy to accommodate each 612 00:25:12,539 --> 00:25:18,360 goal's distinct time Horizon risk 613 00:25:15,480 --> 00:25:20,100 tolerance and requisite Capital this 614 00:25:18,360 --> 00:25:23,159 method empowers you to gauge your 615 00:25:20,100 --> 00:25:25,400 process more precisely and fine-tune 616 00:25:23,159 --> 00:25:27,900 your plan as circumstances demand 617 00:25:25,400 --> 00:25:30,720 merging the utilization of a financial 618 00:25:27,900 --> 00:25:33,120 vision board with goal-based investing 619 00:25:30,720 --> 00:25:36,360 can create a formidable strategy to 620 00:25:33,120 --> 00:25:38,940 actualize your financial aspirations the 621 00:25:36,360 --> 00:25:41,640 vision board instills inspiration and 622 00:25:38,940 --> 00:25:44,580 motivation while goal-based Investing 623 00:25:41,640 --> 00:25:47,640 For furnishes a lucid structured road 624 00:25:44,580 --> 00:25:51,539 map to reach your objectives 625 00:25:47,640 --> 00:25:53,220 number 13 experiment with dollar cost 626 00:25:51,539 --> 00:25:56,460 averaging 627 00:25:53,220 --> 00:25:58,080 dollar cost averaging or DCA is a 628 00:25:56,460 --> 00:25:59,940 disciplined investment strategy that 629 00:25:58,080 --> 00:26:02,520 involves investing a fixed amount of 630 00:25:59,940 --> 00:26:05,100 money at regular intervals regardless of 631 00:26:02,520 --> 00:26:07,220 market conditions this approach helps to 632 00:26:05,100 --> 00:26:09,720 reduce the impact of Market volatility 633 00:26:07,220 --> 00:26:12,059 mitigates the risk of making poor 634 00:26:09,720 --> 00:26:15,059 investment decisions based on short-term 635 00:26:12,059 --> 00:26:17,400 fluctuations and eliminates the need for 636 00:26:15,059 --> 00:26:19,020 attempting to time the market when 637 00:26:17,400 --> 00:26:22,440 consistently investing over time 638 00:26:19,020 --> 00:26:24,840 investors benefit from both upswings and 639 00:26:22,440 --> 00:26:27,419 downturns as they can purchase more 640 00:26:24,840 --> 00:26:30,179 shares when prices are low and fewer 641 00:26:27,419 --> 00:26:32,880 shares when prices are high now one of 642 00:26:30,179 --> 00:26:35,159 the key advantages of DCA is it helps 643 00:26:32,880 --> 00:26:37,559 investors to overcome the psychological 644 00:26:35,159 --> 00:26:40,020 barriers that can hinder successful 645 00:26:37,559 --> 00:26:42,659 investing by automating the investment 646 00:26:40,020 --> 00:26:45,000 process and focusing on the long-term 647 00:26:42,659 --> 00:26:47,760 investors are less likely to be 648 00:26:45,000 --> 00:26:49,799 influenced by emotions such as fear or 649 00:26:47,760 --> 00:26:52,559 greed which can lead to impulsive 650 00:26:49,799 --> 00:26:54,840 decisions this strategy also promotes 651 00:26:52,559 --> 00:26:57,840 Good Financial Habits by encouraging 652 00:26:54,840 --> 00:27:00,240 regular saving and investing fostering a 653 00:26:57,840 --> 00:27:02,700 mindset of financial discipline and 654 00:27:00,240 --> 00:27:05,220 patience to implement a dollar cost 655 00:27:02,700 --> 00:27:07,260 averaging strategy investors should 656 00:27:05,220 --> 00:27:09,900 first determine the fixed amount they 657 00:27:07,260 --> 00:27:12,059 want to invest and the frequency of 658 00:27:09,900 --> 00:27:14,640 those Investments they should then 659 00:27:12,059 --> 00:27:17,159 select an investment vehicle such as an 660 00:27:14,640 --> 00:27:19,679 index fund or an exchange traded fund 661 00:27:17,159 --> 00:27:22,380 that aligns with their risk tolerance 662 00:27:19,679 --> 00:27:24,900 and their long-term financial goals who 663 00:27:22,380 --> 00:27:27,120 says you have to go all in remember 664 00:27:24,900 --> 00:27:30,900 splitting your Investments across time 665 00:27:27,120 --> 00:27:35,220 is the best way to invest period 666 00:27:30,900 --> 00:27:37,320 number 14 automate your finances 667 00:27:35,220 --> 00:27:39,960 automating your finances involves 668 00:27:37,320 --> 00:27:42,360 setting up systems and tools to manage 669 00:27:39,960 --> 00:27:44,580 and streamline various aspects of your 670 00:27:42,360 --> 00:27:46,799 financial life such as savings 671 00:27:44,580 --> 00:27:49,260 Investments and bill payments with 672 00:27:46,799 --> 00:27:51,299 minimal manual intervention automating 673 00:27:49,260 --> 00:27:53,820 these processes will help you to reduce 674 00:27:51,299 --> 00:27:56,159 the time and effort spent on managing 675 00:27:53,820 --> 00:27:58,380 your money minimize the risk of human 676 00:27:56,159 --> 00:28:00,779 error and make it easier to stick to 677 00:27:58,380 --> 00:28:03,120 your financial goals to automate your 678 00:28:00,779 --> 00:28:05,220 finances start by setting up automatic 679 00:28:03,120 --> 00:28:07,500 transfers from your checking account to 680 00:28:05,220 --> 00:28:09,960 your savings or investment Accounts at 681 00:28:07,500 --> 00:28:13,260 regular intervals such as monthly or 682 00:28:09,960 --> 00:28:15,659 bi-weekly this pay yourself first 683 00:28:13,260 --> 00:28:18,659 approach ensures that you consistently 684 00:28:15,659 --> 00:28:20,539 prioritize saving and investing helping 685 00:28:18,659 --> 00:28:23,039 you to build a wealth over time 686 00:28:20,539 --> 00:28:25,140 additionally consider automating your 687 00:28:23,039 --> 00:28:27,360 bill payments by scheduling reoccurring 688 00:28:25,140 --> 00:28:29,700 payments through your bank or directly 689 00:28:27,360 --> 00:28:32,220 with your service providers this will 690 00:28:29,700 --> 00:28:34,620 not only save you time but also avoid 691 00:28:32,220 --> 00:28:36,360 late fees and maintain a good credit 692 00:28:34,620 --> 00:28:39,440 score 693 00:28:36,360 --> 00:28:42,900 number 15 study the financial 694 00:28:39,440 --> 00:28:44,460 Independence retire early fire 695 00:28:42,900 --> 00:28:47,159 principles 696 00:28:44,460 --> 00:28:50,460 so the financial Independents retire 697 00:28:47,159 --> 00:28:52,200 early or fire movement is a lifestyle 698 00:28:50,460 --> 00:28:54,419 and personal finance approach that 699 00:28:52,200 --> 00:28:56,100 emphasizes aggressive saving and 700 00:28:54,419 --> 00:28:58,440 investing to Achieve Financial 701 00:28:56,100 --> 00:29:01,260 Independence at a relatively young age 702 00:28:58,440 --> 00:29:04,080 now the core idea here is to accumulate 703 00:29:01,260 --> 00:29:06,480 enough assets to generate a sustainable 704 00:29:04,080 --> 00:29:09,179 income that covers living expenses 705 00:29:06,480 --> 00:29:11,520 allowing you to retire early and pursue 706 00:29:09,179 --> 00:29:13,860 your passions without relying on 707 00:29:11,520 --> 00:29:16,080 traditional employment now this 708 00:29:13,860 --> 00:29:19,020 typically is achieved by maintaining a 709 00:29:16,080 --> 00:29:21,659 high savings rate often fifty percent or 710 00:29:19,020 --> 00:29:24,899 more of one's income and investing in 711 00:29:21,659 --> 00:29:28,860 low-cost Diversified portfolios to 712 00:29:24,899 --> 00:29:31,860 maximize returns fire principles focus 713 00:29:28,860 --> 00:29:34,620 on frugality intentional living and 714 00:29:31,860 --> 00:29:36,539 long-term financial planning adherence 715 00:29:34,620 --> 00:29:39,240 to this philosophy often cut out 716 00:29:36,539 --> 00:29:41,820 discretionary expenses they optimize 717 00:29:39,240 --> 00:29:44,640 their Tax Strategies and prioritize 718 00:29:41,820 --> 00:29:48,240 Investments That generate passive income 719 00:29:44,640 --> 00:29:51,299 such as index funds rental properties or 720 00:29:48,240 --> 00:29:53,760 dividend stocks and there you have it I 721 00:29:51,299 --> 00:29:56,460 like sir these were 15 ways that you can 722 00:29:53,760 --> 00:29:59,820 increase your financial IQ now we're 723 00:29:56,460 --> 00:30:02,520 curious to know where do you struggle 724 00:29:59,820 --> 00:30:03,840 the most with your finances drop your 725 00:30:02,520 --> 00:30:05,820 answer in the comments below we're 726 00:30:03,840 --> 00:30:07,559 always curious to hear your thoughts and 727 00:30:05,820 --> 00:30:09,840 who knows we might even make a video 728 00:30:07,559 --> 00:30:12,120 that can help you even more specifically 729 00:30:09,840 --> 00:30:13,980 and with all that being said let's wrap 730 00:30:12,120 --> 00:30:15,659 up this video if you found this 731 00:30:13,980 --> 00:30:17,580 information valuable don't forget to 732 00:30:15,659 --> 00:30:20,039 return the favor by tipping us with a 733 00:30:17,580 --> 00:30:21,539 like and a share and as always thanks 734 00:30:20,039 --> 00:30:23,460 for watching Elixir if you'd like to 735 00:30:21,539 --> 00:30:26,000 learn some more check out this video 736 00:30:23,460 --> 00:30:26,000 next