1: Introduction Can you think of an instance when someone deeply harmed you? This can be a friend who broke your trust, a loved one who disappointed you, or a co-worker who undercut your efforts. In these situations, forgiveness may appear to be an impossible task. Have you ever thought about the transformational power of forgiveness? In this blog post, you will learn about the powerful impact forgiveness can have on your live, as well as the great freedom and inner peace it provides. 2: What is Forgiveness Forgiveness is often seen as an act of weakness. However, this is a skill that only the strongest and most mature people possess. Forgiveness can liberate you from a constant anger towards a person and can cure relationships. As Buddha once said: “ Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned .”. You can better understand this quote with an example: Imagine your best friend broke your trust by t...
1) Introduction
2) ETF’s
First and foremost
we will discuss what ETF’s are and why it can be a good investment especially
for beginners. An ETF or exchange-traded
fund is a basket of underlying securities such as stocks, bonds or commodities.
In other words, it contains shares of multiple companies. For example, an
ETF can consist for 50% of Apple shares and 50% of Tesla shares.
One of the key
advantages of this instrument is diversification across multiple
companies, which helps to reduce risk. By spreading your investment across
several underlying companies, you are less exposed to the negative effects of
any one individual company. If one of the companies in the portfolio were to go
bankrupt, the impact on the overall value of your investment would be
minimized, since the performance of the other companies can help to offset the
losses.
There has been done a
lot of research in which assets to invest in. Many researches have found that
investing in ETF’s (especially for beginners but also often intermediate stock
pickers) will have a better outcome than picking stocks to invest in. It
is thus an ideal tool to invest in passively without doing much research
3) Investing and saving
Investing in ETFs on a
consistent basis can be a great way to grow your savings over the long term. A
good strategy is to set aside a portion of your savings specifically for
investing in ETFs, while ensuring that you still have enough savings to
cover any unexpected events that may arise. By starting with a small amount
and gradually increasing your investment over time, you can build a diversified
portfolio of ETFs that suits your risk tolerance and investment goals. It's
important to remember that investing involves risks and you should do your own
research and seek professional advice if needed.
4) Dollar cost averaging
Dolalr cost averaging
means that you invest money on a consistent basis. You can choose to
invest a fixed amount on a regular basis, such as monthly or quarterly, using a
brokerage account. This allows you to benefit from the power of compounding.
Compound interest is an important concept in investing. It means that you earn
interest on interest. For example if you earn 5% interest in your first year
starting with €100, you will have €105. If you earn 5% again on the €105 the
next year, you will now earn €5,25 instead of €5. This may not seem like a lot
but in the long term, the difference will be significant.
5) Conclusion
The most important thing I want you to remember is that investing in ETFs can provide a smart and straightforward path to building wealth over time, especially for beginners, offering diversification, long-term growth potential, and the power of compounding. By diversifying your investment across multiple companies, you can minimize the impact of any one individual company's negative performance. It's important to set aside a portion of your savings specifically for investing in ETFs, while ensuring that you still have enough savings to cover any unexpected events that may arise. By investing on a consistent basis, you can benefit from the power of compounding and build a diversified portfolio of ETFs that suits your risk tolerance and investment goals. Remember that investing involves risks, and it's important to do your own research and seek professional advice if needed. With a little patience and discipline, you can take control of your financial future and work towards achieving your long-term financial goals.
6) Your next steps
1. Broker:
Choose an online broker that offers ETF trading like for example DEGIRO. Look
for a broker with low fees and a user-friendly platform. (5 minutes)
2. Create an
account: Create an account with the broker and complete the necessary
verification process. (5 minutes)
3. Investment
amount: Determine how much money you can afford to invest in ETFs, taking
into consideration how much saving you need and risk tolerance. It's important
to have a plan in place to guide your investment decisions. (5 minutes)
4. Pick an ETF:
Choose the ETFs you want to invest in based on your research and investment
plan. I suggest that you invest in ETF’s that diversify as much as possible.
The MSCI world index can be good for example because it basically invests in
the economy of the whole world. (5-10 minutes)
5. First order:
Place your first order by selecting the ETF you want to buy and the amount you
want to invest. It is best that you place an order to automatically invest each
month. (5 minutes)
6. Stay Connected: Click the "about me" section on the right side of this page and hit the Pinterest button to follow me. By staying connected, you'll receive regular updates on future blog posts about personal development, allowing you to continue expanding your knowledge and motivation. It only takes a few seconds, but the benefits are priceless. (10 seconds)
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