Auteur: Valerie

I need to get something off my chest. I’ve had it with the statement that money doesn’t buy happiness. And here’s why. Money is evil I’ve had it. I’m sick and tired. If I hear “money doesn’t buy happiness” one more time I think I’m gonna lose it! You probably recognize the statement, you have probably heard it before. Everyone – from your teacher in elementary school to Hollywood movies – tries to make you believe that chasing money is a bad thing. The whole world wants to convince you of the fact that the desire to be rich is despicable. And I just don’t think that’s fair. Money craving Disney villains If you have ever watched Disney movies you know that the villain is almost always a bad guy who’s after the money. In Aladdin, Jafar wants to be rich and powerful and therefor tries to control the genie. Cinderella’s step mom wants to marry off one of her daughters to the prince to be able to live a privileged life. Edgar tries to kill a bunch of innocent kittens to prevent them from getting a large inheritance in the aristocats. Am I defending these villains? Nope. But I cannot agree with the fact that wanting money is reason enough to be crucified. Cheesy Christmas movies It’s not just Disney by the way. If you didn’t know it yet, I’m a sucker for cheesy Christmas movies. Every year I (not so) secretly count down to the holiday season because of the coziness. Crawling up in the sofa with a silly movie is the epitome of the month December for me. Call me crazy, but I actually love the corny story lines. Only during festive season, naturally. But what annoys me beyond words is the parade of main characters being shamed for putting time and effort in their career. Now, I’m not a screenwriter but I’m gonna give it a go: Girl leaves her career in the Big City temporarily behind to visit the family farm in a small village. On her first day there she bumps into her high school sweetheart, who judges here for having stayed away for such a long time. The movie ends with the girl quitting her job and taking over the family farm, after having rekindled the relationship with the high school sweetheart. Sweet, because spending time with your loved ones is the only thing that counts, right? Yes and no. Don’t get me wrong, I do believe in family (and friends) first. But the main characters in these movies always get shamed for chasing the money. Life without money The thing is, it’s hard to imagine a good life without money: No lavish dinner table on Christmas Eve No fun nights out with friends No house to live in and host your loved ones … Money pays for the life of your dreams “Money cannot buy happiness” The saying is true. It is not possible to take your money to the store and buy a kilogram of happiness. Money does however allow you to pay for the things that make you happy, whether those are material things or experiences. Money pays for the life of your dreams. Money pays for: Plane tickets for travel addicts Coffee dates with friends The roof over your head The internet you use to read this blog The ability to support your family … If money is evil, then why do we work to get it? If rich people are despicable, then why do we dream of winning the lottery? Would you turn away 1 million if it were gifted to you? Of course not. Does that make you superficial or bad? Definitely not. For once and for all: rich people with money who do bad things are bad people, the money doesn’t change that. It’s just a tool that gives you possibilities, but how you use it is up to you.

People have different reasons to get into investing, you have your own without a doubt. In this blog I give you an exclusive peak behind the curtains of my personal life. I share the story of how I got into investing and I talk about the mistakes I made so that you can learn from them.  Life starts at retirement, no? I took my first steps in the world of investing at the age of approximately 25 years old. In Belgium it’s pretty common to save with one main goal in mind: retirement. Because that’s when you apparently get to start enjoying life. “Yes, work is hard but I will start enjoying life when I’m retired.” “You’re going on a sabbatical? Ooh, that’s gonna harm your pension!” Something else that’s pretty common in Belgium is trying to lower the amount of taxes you pay because we are taxed heavily on our income. So it won’t come as a surprise that the first investment I made was starting up a retirement savings plan. It ticked the two boxes: saving up for later and the payments I made were deductible. Win win! First mistake: not knowing what I invested in Someone in my environment was an insurance broker and he signed me up for a life insurance as a retirement plan. I didn’t know back then, but that particular plan was super hard to get out of. I had no idea what I actually signed up for and it ended up being a bad decision. The insurance didn’t cause heavy losses but wasn’t beneficial either, and now I’m stuck with a rigid plan until I’m 60.  At that time I thought it was a good decision: save for your retirement, it’s the sensible thing to do. I paid little to no attention to what it actually was and just transferred the money. That was the firs lesson I got to make me realize the importance of education. Second mistake: believing investing keeps your money locked up Later I started thinking about what else I could do to minimize my taxes but I still needed my savings account because I wanted to go traveling.  Whenever my parents discussed investing they would always mention that they were “locking money away”. That scared me so – I mean, what about a money jail sounds appealing?! – that I stuck to my savings account. The idea of not being able to pull out money whenever I needed it didn’t make me feel comfortable at all. This is something I hear many other people say as well about investing.  That scared me so – I mean, what about a money jail sounds appealing?! – that I stuck to my savings account. Eventually I went to the bank: I was clueless about wealth building but wanted to do something else besides saving. They suggested an investment plan where I would transfer 25 euro/month to invest in a mutual fund. Back then I was pretty risk averse (=no aggressive investing approach) so they selected a fund for me with a neutral risk profile. Still I didn’t have an idea what investing was exactly, but at least these were only low amounts. Travel before investing 2 yeas after that I started traveling and I stopped the plan payments but I kept the fund. I needed the money to have fun, because that’s what it’s all about after all! Money isn’t meant to just pile up in your account for you to admire it. It pays for the good things in life, that’s the whole point.  A combined total of over a year of traveling cost me a couple of thousands, but I’m happy to report I have 0 regrets. Travel taught me so much. I understand better now how the world works and how everything is connected. I expanded my horizon and got rid of tunnel vision. If you ever find yourself doubting to start traveling: just do it. It will help you get ahead in life. A combined total of over a year of traveling cost me a couple of thousands, but I’m happy to report I have 0 regrets. Travel taught me so much. Naturally I did need an income after I returned to Belgium. There were some savings left in my account (always keep a buffer!) but it was time to top up the balance.  Unexpected career moves Back then I was stuck career wise. As a highly gifted person I am good at a lot of things and I was unsure about what my actual talent was (that’s what I thought back then but spoiler alert, it’s actually exactly that: being able to learn everything is my superpower). So I went to a recruitment office that I had worked for before and just asked them to look for a job for me. I handed my CV and just said “get me something based on my experience”.  I had experience in customer service and they ended up sending me to a bank. “Are you sure?” I asked. I didn’t have a background in economics at all, as a matter of fact I don’t even have a degree. They assured me it would not be a problem and that I would get an in-house training. “Just give it a shot” they said, and so I did.  Stay updated, get on the Money Girl email list. The interview was amazing, there was a good vibe and eventually they offered me the job and I started two weeks later.  When I got the training I was surprised to find out it was rather interesting, not at all as boring as I believed the banking world to be. They appointed me to join the team that specializes in investing, which scared me at first. In school at some point they explained funds and bonds and I didn’t get it at all. But the training about investing at work was awesome, and I fell in love. I realize that sounds crazy, but I

Look I get it. The stock market currently reminds you of a beach where the ocean has withdrawn itself and all that’s left for you to see are the wrecks of sunken ships. Not to worry my dear. I am here to guide you through these treacherous waters and to not let the sirens drag you to the depths. Here’s how you can actually benefit from a stock market crash. Run toooooo the hilllllls What does this iconic Iron Maiden song have to do with investing? Well, I Just want to point out what so many investors do when the stock market crashes: they run. Not literally of course. By ‘they run’ I mean ‘they dump their stocks at a low price and get out’. I’m sorry if I’m calling you out, but that’s a rookie move. You could compare panic selling to the sirens luring the sailors into the water. Fear should never be the motivation behind a buy or sell transaction. The trick with investing is a simple one, but not an easy one: you need to put all of your emotions aside. Want to know more about surviving a stock market crash? Go and check out this blog post: How to stop losing money in the stock market. 3 reasons why you shouldn’t panic sell during a stock market crash: The goal is to buy low and sell high, not the other way around. If you sell low you lose money, and if you buy the stock back later at a higher price you lose money a second time. You might get rid of a really good stock that’s justing going through some bad times and you will regret selling it later. You have put a lot of effort into selecting stocks for your portfolio. Honor your work and stick to your investments. Tip: Always do your own research when building an investment portfolio. Need help with selecting the right stocks for you? I have got the perfect template for you! Selecting stocks and ETF’s can be tricky. This template will help you make the right decision: It tells you what criteria to take into account It allows you to gather information in one place It allows you to compare all products in a very simple way So, how do you benefit from a stock market crash? Buy more stocks When you have the budget for it, buy more stocks. A stock market crash is like a sale: it’s a perfect time to hunt for bargains. Here’s an opportunity to grow your investment portfolio on a budget. A lot of people are scared to shop around during a crash, because they fear that a low priced stock might not be as good as an expensive one. But this is no different than scoring designer clothing during in an outlet or summer sales. Be sure to do your homework though. Don’t just buy any stock because it’s cheap. Research, compare and then decide. Be fearful when others are greedy, be greedy when others are fearful Warren Buffet Dollar cost average Dollar cost averaging is the perfect way to optimize the returns in your portfolio. What is it exactly?Dollar cost averaging is a strategy where you invest a fixed amount of money on regular intervals. Example: you could invest 50 euro every 1st day of the month in an index fund. This means that you consistently buy stocks (or parts of a fund), regardless of the price. Whenever the market is doing well, prices are higher and you will get less bang for your buck. But during market crashes you’ll get a whole lot more value for that same amount. This technique lowers the average purchase value in your portfolio and makes sure that your wealth keeps on growing. Dollar cost averaging ALWAYS beats trying to time the market. Consistency is definitely the key to results.

What is crypto? Is it the future or is it one big scam? And what on Earth is that blockchain everyone is talking about? In this crypto basics miniseries you will find answers to those questions, and a lot more. Dive into the world of crypto with me!

It is 2022 and if you haven’t heard about Bitcoin, you have probably been living under a rock. But that doesn’t mean you understand how it works. To help you out I answered 10 frequently asked questions about the mother of all cryptocurrencies. Table of content What is Bitcoin Who created Bitcoin? Who controls Bitcoin? What is mining? How can I buy Bitcoin? Can I invest in Bitcoin with a small budget? Can I lose my money? Can I use Bitcoin to pay for my groceries? Where does Bitcoin get its value from? What is the difference with regular money? 1. What is Bitcoin? Bitcoin is a digital currency that uses blockchain technology to secure and record its transactions. It was the first cryptocurrency ever, and it is still the largest. People often call Bitcoin the digital gold because of its limited supply. A cryptocurrency is a digital currency that serves as a medium of exchange through a computernetwork that is not reliant on any central authority to maintain it. 2. Who created Bitcoin? On 31 October 2008 a white paper was published by Satoshi Nakamoto. (A white paper is a document used to highlight the features of a certain product or service. An announcement basically.) The title of this paper was “Bitcoin: a peer-to-peer electronic cash system”. In the document Nakamoto described how Bitcoin and the blockchain would work, and proceeded to actually create the Bitcoin network on 3 January 2009. To this day, the identity of Satoshi Nakamoto remains unknown. It could be one person, but it could be just as well a whole group that’s behind the famous paper. 3. Who controls Bitcoin? Nobody does. Bitcoin runs on blockchain technology and is fully decentralized. It’s a peer-to-peer network that involves all users, instead of depending on one central authority. By buying or receiving Bitcoin every user participates in the network and has to comply with the rules that were set up at the creation of the cryptocurrency. There is no government or higher authority that can change the rules. 4. What is mining? Bitcoin mining is adding new Bitcoins to the blockchain. Put simply: to verify and secure all transactions, the network relies on its users. Bitcoin miners use powerful computers to find the answer to a mathematical problem. That answer is a key that seals a block in the chain, meaning it cannot be altered anymore. As a reward, the miners receive new Bitcoins. Read more about mining and how the blockchain works here. 5. How can I buy Bitcoin? Investors can buy Bitcoin on a crypto exchange, such as Coinbase or Binance*. You will need to create a profile on the exchange of your choice – of course this all happens online – and select a payment method. You can either link a debit or credit card or you can work with bank transfers to top up your balance. Keep in mind that transaction fees apply when buying or selling crypto. Alternatively, if you own any altcoins there’s always the option to swap them for Bitcoin, or the other way around. What are altcoins?An altcoin is any cryptocurrency other than Bitcoin. Examples are Ethereum, XRP, Cardano, Tether… *Not sponsored 6. Can I invest in Bitcoin with a small budget? Currently, the value of 1 Bitcoin is around 30 000 USD. That’s too much money for most investors to spend at once. Luckily you don’t have to buy a full Bitcoin, you can buy fractions of it. The smallest unit in Bitcoin currency is called a Satoshi, after its creator. One Satoshi equals 0,00000001 BTC. At this point, 1 USD equals approximately 3000 STSH. Do you find it hard to keep up with all the changes in the economy? Can’t see the forest through the trees when looking up information about investing online? I’ve got you! Subscribe and get weekly tips, tricks and updates delivered at your digital doorstep. 7. Can I lose my money? Investing always comes with a certain risk. Cryptocurrency has been much more volatile (that means that prices go up and down a lot) than the traditional stock market, so that is something to take into account. The same rule always applies: never invest with money you cannot afford to lose. Because the answer is yes, you can lose your money when you invest, be it in crypto or traditional stocks. It is crucial to do your research before you start investing. Jumping in blindly is the best way to lose your money fast. You can never fully eliminate the risk, but you can surely manage it. 8. Can I use Bitcoin to pay for my groceries? Although the use of Bitcoin as a mean of payment is not (yet) globally accepted, there are more and more businesses that allow payments in Bitcoin. El Salvador even adopted the cryptocurrency as a legal tender in June 2021 in an attempt to save its failing economy. But at this point, the main use of Bitcoin is sending money over the internet in a super fast, decentralized way. People buy and hold it (HODL), trade with it to make more money, swap it for other cryptocurrencies etc… HODL= hold on for dear lifeHODL is a popular term in the crypto world. It means that you hold on to your portfolio in both the good and the bad times. 9. Where does Bitcoin get its value from? Supply and demand influence Bitcoin’s value. Satoshi Nakamoto programmed the network in a way that the amount of Bitcoin is limited to 21 million. Every time a miner adds new Bitcoin to the blockchain, the remaining stock gets smaller and it often fires up the value. Bitcoin halving: After every 210,000 blocks mined, roughly every four years, the block reward given to Bitcoin miners for processing transactions is cut in half. We call this event “the Bitcoin halving”, because the rate at which new Bitcoins are being brought into circulation goes down by 50%. In 2140 all Bitcoins

Blockchain is the technology behind cryptocurrencies. It was invented along with the creation of Bitcoin, but its use is spreading much further nowadays. If you find it hard to envision how blockchain works, keep on reading. What is blockchain? The word “blockchain” is commonly associated with cryptocurrency. Although it stretches further than that, you need to understand blockchain if you want to understand crypto. A cryptocurrency is a digital currency that serves as a medium of exchange through a computernetwork that is not reliant on any central authority to maintain it. That decentralized computer network is the blockchain. Definition:Blockchain is a technology where data – secured by cryptography – is stored in blocks that are linked together. The most important characteristics of blockchain: Cryptography is used to secure the data in the blocks The blocks cannot be altered All blocks are linked together, forming a chain that continues to grow The blockchain is a public database The blockchain is typically managed by a peer-to-peer network, not a third party authority (such as a bank) How does blockchain work? The simple explanation: A blockchain gathers data and secures it in a place for everyone to see. You could compare it to a an accountancy book where all transactions of a community are being kept. Once a transaction is written down in the book, it can never be changed anymore. It is possible to add new transactions though. After every couple of transactions the page will be automatically seal itself. The book remains open for every member of the community to read. All members of the community write down their transactions, they have all taken on the function of bookkeeper. The hard explanation: Let’s take the Bitcoin blockchain as an example: whenever someone makes a transaction with Bitcoin, it will appear on a block. The block collects all transactions made within 10 minutes and will then be full. In order to seal the block, Bitcoin miners will have to calculate a key using mathematic techniques. A sealed block cannot be opened or altered again, and a new block will be created. The process continues for as long as there are transactions. What is Bitcoin mining? Satoshi Namkamoto – the creator of Bitcoin – programmed the technology in a way that only a really complicated math problem can generate a key to seal each block. You need a powerful computer to calculate the key, but basically everyone with the right equipment could do it. The first person to solve the problem receives a Bitcoin payment as a reward for sealing the block. These are new Bitcoins that weren’t on the blockchain before, they are now ‘mined’. In addition to the new Bitcoin, the miners also get the fees charged on Bitcoin transactions. Why will blockchain change the world? Blockchain technology is the backbone for cryptocurrencies, but the possibilities stretch much further than the crypto world. It works in a different way than what we are used to and it has several advantages. Security Because of the strong encryption, blockchain technology is very secure. It could be used to battle fraud since it is impossible to alter any of the information on the chain. Anything that is written on paper or saved in a computer file can be changed by someone with bad intents, but information stored on the blockchain is incorruptible. Decentralization There is no need for a third party authority, such as a bank. This will not only result in less middleman fees, but also less risk of corruption. The blockchain relies on a peer-to-peer network instead of a centralized authority which makes it very fair. Transparency The blockchain is a public ledger, open for every member to consult it (remember the community book?). There is no harm in keeping it accessible for everyone since the encryption makes sure that the information cannot be adapted or deleted. In other words: there is no risk in showing the content because nobody can access it. It’s a read-only history that can take away any form of discussion around a transaction. Do you find it hard to keep up with all the changes in the economy? Can’t see the forest through the trees when looking up information about investing online? I’ve got you! Subscribe and get weekly tips, tricks and updates delivered at your digital doorstep. Possible uses for blockchain Maybe you think “I’m not into crypto, so I probably won’t ever get to deal with blockchain”. But there are so many possible uses for this technology. Here are a few examples: Real estate: nowadays you still need a notary to officially seal the purchase of a piece of real estate. Using a blockchain network will simplify the process and make it a whole lot cheaper. Elections: people can cast their vote from a smartphone or a computer in a secure way. The encryption makes sure nobody can tamper with the results. This is also ideal to reach people who live remotely or aren’t able to leave their house. Finance: wether it’s crypto or fiat money, blockchain can definitely revolutionize finance as we know it. There is still a large amount of people who don’t keep their money at a bank, simply because there is no agency nearby or they don’t trust it. Decentralized, digital finance could offer a solution to those people. Charity projects: when you donate money to a charity there is always the risk of someone in the organization taking their share. With blockchain, you can exactly track the whereabouts of your money and what it is used for. More and more charities are looking for ways to implement blockchain in their projects. So it’s perfect then? No, it is not. There are ways to hack into and corrupt a blockchain, despite all of the security measures. Obviously the system is not perfect, but it sure is a giant leap forward from the systems we currently rely on. You’re all caught up! Read the other parts of the crypto miniseries to

Uh oh, did you miss the crypto boat? Maybe you didn’t trust or believe in crypto in the early stages, but now you’ve noticed that some people have made big money with it. Meanwhile you still don’t really understand how it all works, and you feel as if the crypto ship has sailed. But has it? And is it really that important to learn about crypto? Is it too late to start learning about crypto? Be honest: if you had a time machine you would travel back to 2009 and buy a sh*tload of Bitcoin, wouldn’t you? Well, you and me both. Maybe you believe you are too late anyway to get started with crypto. With all due respect: I call BS on that. So you weren’t an early adopter. So you needed a little bit of time to adjust to this “new money”. I didn’t jump on crypto either in those early days because I was sceptic, just like you. But does that mean that you missed your chance? Absolutely not. It’s not too late to build a solid crypto portfolio on one condition: that you properly educate yourself first. Do you find it hard to keep up with all the changes in the economy? Can’t see the forest through the trees when looking up information about investing online? I’ve got you! Subscribe and get weekly tips, tricks and updates delivered at your digital doorstep. What is crypto? Let’s start with the very basics (and no, you shouldn’t feel stupid for hearing all of this for the first time): what is crypto exactly? Definition:A cryptocurrency is a digital currency that serves as a medium of exchange through a computernetwork that is not reliant on any central authority to maintain it. Still gibberish to you? No worries, I am going to break this down into small pieces. There are 3 elements to unpack here. Element 1: Digital Cryptocurrency is fully digital money, meaning it only exists online. Our “standard” money is becoming more and more digitalized as well – think about bank cards, payments through bank apps or digital wallets… – but physical money still exists. There are still occasions where you have to go to an ATM, insert your card and get some paper bank notes. With crypto, that’s not possible. Element 2: Medium of exchange Crypto coins are interchangeable, just like the money we know. For example: just like the Euro, every Bitcoin is worth exactly the same. You can exchange one Bitcoin for another, because one is not worth less or more that the other. That means that the coins can be used as a medium for exchange. In other words: you can buy things or trade with it. Element 3: Computer network not reliant on any kind of centralized authority Crypto is stored and exchanged on a computer network that is not maintained by one particular authority, such as a bank or company. In other words: crypto is decentralized. This is probably the most important characteristic of cryptocurrencies. The network uses strong cryptography to secure the currency and all of its transactions. The goal is to make it an ultra transparent system that is safe for everybody to use. Crypto vs. fiat currency When you submerge yourself in the world of crypto you will at some point come across the term “fiat money” or “fiat currency“. Here’s what that means: Definition:Fiat money is any currency that is created and endorsed by a government. Its value depends on supply and demand, the stability of the government and the economy it is tied to. The national currencies we all know – Euro, USD, GB pound… – are fiat money. “Fiat” is a Latin word, and it basically means “with permission“. This is where crypto sets itself apart: it is not issued and influenced by a government. It belongs to the global network and the classic rules that apply to fiat money don’t apply to crypto. Why is it important to learn about crypto? For as long as it has existed, the world has been constantly evolving. That’s the case for nature, humans and animals, but also for politics and the systems we use to make our lives comfortable. Crypto aims to change how we treat finance. You could say that cryptocurrencies challenge the status quo that we have reached when it comes to money. We grew up in a world where it’s normal to let the government dictate how finance works. This new technology works in an entirely different way. It wants to make money more fair and transparent, and above all independent from governments. Whether you agree with that or not, it will have an impact on our future in one way or another. And that’s why you should at least learn to understand how crypto works. You’re all caught up! Read the other parts of the crypto miniseries to become a true crypto expert.

Investing myths are costing you money When it comes to investing and the stock market, there are a lot of misconceptions going around. Too many people want to start investing, but are scared to do it because of the negative stories that they’ve heard. But are the rumors true? Are you better off keeping your money in a savings account? Not. At. All. These misconceptions are costing you money so I want to help you get rid of them once and for all. Here are 7 investing myths that you really should stop believing right now. 7 investing myths that you should really stop believing The real danger is keeping all of your money in your savings account. Inflation rates are higher than the interest rates on savings, which means that you are losing money instead of growing wealth. Investing myth #1: You need a lot of money Investing only for rich people? No way José! I always claim this: “Investing does not require you to be rich, it is what makes you rich.” Really, you don’t need a lot of money to start investing, contrary to popular belief. You don’t need to save up thousands before you can even think about opening a brokerage account. Nowadays you can get started with as little as €20 per month. Investing small amounts periodically is an amazing way to build your portfolio and it doesn’t feel as scary as putting in a large sum at once. Look for investment plans or ETF’s, those are perfect for small budgets. Investing myth #2: Investing is dangerous The stock market is not dangerous or risky. Yes, there will be ups and downs, but if you stick to a long term strategy you will be just fine. Investing is never without risk, but did you know that risk can be managed? The real danger is keeping all of your money in your savings account. Inflation rates are higher than the interest rates on savings, which means that you are losing money instead of growing wealth. Always start by educating yourself before you build a portfolio. Investing is not the same as gambling, you need a strong game plan in order to succeed. If knowledge is the first thing you invest in you’ll be in pole position for success. Investing myth #3: You need a master’s degree in finance Amongst investing myths, this is a tough one to get rid of. But unlike what many people believe investing is really not that hard. It’s not necessary at all to have a master’s degree in finance to understand what happens on the stock market. The basics are actually quite simple, and they are more than enough to build a portfolio. You don’t need the complicated stuff to get rich, that’s the beauty of it. Let me put it like this: When you were a toddler you thought it would be hard to learn how to read, yet here you are. And does knowing how to read mean that you should read Tolstoy or Dostoyevsky*? Nope. You can if you want to, but it is not necessary nor mandatory. Investing is the same: dive into to complicated products if you are interested, but sticking to the basics is more than enough to let your money grow. Learn about the basics of the stock market in a nutshell. Download my free guide now! Investing myth #4: The stock market is boring If you picture charts, men with briefcases and dry financial newspapers when you think about the stock market, then think again. The stock exchange reflects what happens in the world. The world is an exciting and wildly interesting place, so the market is too! You need to start looking past the charts and see what is actually behind those numbers. There are companies out there that try to leave an impact on the world or create amazing products. They provide jobs to the community and therefor support thousands of families. Investing is a way for you to get involved in that mechanism and to have your own impact. You get to decide which company or industry you support and I think that’s a powerful feeling. Investing myth #5: It’s a lot of work The amount of work that goes into your portfolio is completely up to you. You can choose to get actively involved by hand picking stocks, or you can go for a passive investing approach. There is more than just one way to invest and it all depends on the strategy you pick. One of the most popular investing myths is that stocks are the only option, but there is so much more out there. Individual stocks require quite a bit of work, but have you considered mutual funds or ETF’s? Those products allow you to invest in multiple stocks at the same time, while a team of experts does the research for you. Read more about the different stock market products in this blog post: 4 stock market products every investor should learn about right now. Investing myth #6: You lock away your money for a long time This is something I believed to be true until a few years ago. Investing does not mean that you are locking away your money for a really long time, and that you can’t access it in the meantime. There are products with an expiry date, but you don’t have to invest in those of you don’t want that. In order to leverage the compounding effect you should hold on to your investments for as long as possible, sure. But let’s be real: life happens and sometimes you just need money unexpectedly. Money in stocks, funds or ETF’s can be withdrawn at any given point (by selling the investment). Again, everything starts with the right knowledge. Investing myth #7: You need to be able to time the market Worst. Advice. Ever. Do not ever try to time the market or you will end up frustrated and broke. Nobody

“Help! I’m losing money!” That might have been a concern of yours the past few weeks (and months) after looking at your investment portfolio. Scary, sure. But how worried do you really need to be about the stock market going down? The stock market is down. What now? The past couple of months the stock market has been rocky, to say the least. What is happening? What is causing the dips? Inflation Well for starters, there’s inflation. The Covid 19 pandemic hit the world’s pause button, and now that everything is slowly going back to lockdown free times (touches wood) the world economy is acting up more than me in my angry teenage years. Then there was a certain Russian president who decided to invade Ukraine, which stirred up the economy a whole lot more. Unstable times – be it a political or health crisis – always affect the way our system works. Stock market cycles The stock market has always been cyclic. That means that highs and lows happen back to back, continuously. This makes total sense if you think about it: the stock market is a collection of publicly listed stocks from companies in all kinds of industries. Every industry has ups and downs, and that will show in the stock price. For example: during the pandemic e-commerce businesses like Amazon thrived, but airlines saw their income drop to almost zero. The stock market has recovered every time and ended up higher than before. You could compare it to a tree: it loses its leaves every autumn, but gets them back every spring and in the meanwhile it has grown a little taller. Are we in a bear market now? Bull and bear markets have always been taking turns in the economy. It’s anything but easy to pinpoint the exact moment of transition, but it is safe to say that in May 2022 we are moving towards a bear market. What is the difference between a bear and a bull market? Read it here. So how can you avoid losing money in the stock market? We are almost surely moving towards a bear market in 2022. Yikes! That means we should start worrying? Not at all! A bear market is not a problem if you know what you’re doing. The stock market is cyclic, remember? What goes up must come down, but that works in the opposite direction too. Nobody can predict the future, but with these tips you can stop losing money in the stock market and regain your peace of mind as an investor. Tip 1: Don’t panic sell Always. Keep. Your. Cool. Whenever your portfolio is going down the last thing you should do is panic, because that will fuel a reflex to sell and take your losses. A lot of investors sell during a dip and buy back during a peak. That means you’re selling cheap and buying high: bad idea. Rely on your knowledge instead of emotions and you will get a lot further. Tip 2: Invest in education As stated above you want to avoid panic selling at all cost. The best way to do that is to invest in knowledge and education. The more educated you are, the less likely you are to make emotional decisions because you will be able to put it all into perspective. Investing in knowledge is buying yourself peace of mind. Get yourself the right tools to become a winner in the stock market. Get educated with online course ‘Newbie to investor’ now! Tip 3: Check your emergency fund Make sure that you don’t need to sell because you need the cash. This is why you always should have an emergency fund when you start investing. Whenever something unexpected happens you can tap into that buffer, and you leave your investments untouched. Read all about emergency funds and when you can (and cannot) use them here. Tip 4: Rebalance your portfolio if needed The keyword in investing is always “diversification”. If you find out during a dip that your portfolio isn’t diversified enough, you can re-evaluate and rebalance when necessary. For example: you could add bonds for more stability if your nerves don’t cope well with volatility. If you want to diversify with little effort, your best option are without a doubt ETF’s. The bottom line At the end of the day it all boils down to this: sit it out. Stock market dips come and go, and they are not bad news if you know how to handle them. As long as you don’t the money short notice and you have thought your portfolio through, you will be just fine.