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Auteur: Valerie

4 stock market products every investor should learn about right now

When I first started investing I imagined the stock market as a jungle. I envisioned I stood at the edge of the jungle, thinking there was absolutely no way to get in there without getting lost (or at least seriously hurt, haha). Investing to me meant a couple of things. Here are some of the opinions that came to my mind when thinking of finance and the stock market: finance is boring necessary to read difficult financial newspapers (the kind where you read a piece 5 times and still don’t understand) white men in suits talking gibberish putting money into schemes I didn’t understand locking your money away for a long time, not being able to reach it when you need to There’s a good chance you might be nodding now. “Yes Valerie, that’s exactly what I think!” Well, in that case I have some good news for you: it doesn’t have to be this complicated. In order to understand investing you should take it step by step. And the first step is to understand what kind of products you can buy on the stock market. The stock market and its products First of all: what is the stock market? The stock market is just like any other market: a place where buyers and sellers meet. Only here they don’t sell fruit or vegetables, they sell a variety of financial instruments. In order to see the forest through the trees as a beginner there are 4 products you need to learn about. Get a good understanding of these before you do anything else. Stocks A stock is a fraction of a company. Whenever a company goes public (i.e. offers itself on the stock market) it virtually splits itself up into pieces that are valued at a certain price. Those pieces are the stocks. The goal? Raising capital the company can use for further growth, product development etc… Stocks are considered the purest form of investing because you have a direct link with the issuing company. You get to share in both wins and losses, so there is quite a large risk attached to investing in stocks. As a stock holder you own a piece of the company, which also comes with voting rights. Bonds A bond is a financial instrument that represents a loan between a borrower and an investor. The borrower – for example: the government – needs money and issues bonds that investors can buy at a set price. The bond is a proof of the loan and has a fixed due date after which the investor is reimbursed. Usually a set interest rate is communicated upon issuing the bonds, so the investor knows how much the profit will be. Bonds are considered fairly safe investments. Learn how to start investing and build wealth with my course “Newbie to investor”: Mutual funds A mutual fund is a basket of securities and consists most commonly of bonds and stocks. Multiple investors put money into the fund through a broker, and the fund managers will actively follow up on the fund’s structure with the goal of optimizing the returns. For this active management investors pay a fee. Mutual funds offer diversification, so that you – the investor – don’t have to purchase each of the underlying financial instruments individually. ETF’s ETF stands for “exchange traded fund”. They are similar to mutual funds because ETF’s too are baskets of securities. The difference? They are not actively managed which means they have lower fees. ETF’s are freely available and are traded all day long on the stock market (whereas the price of mutual funds is only determined once a day or even once a week). They are in fact traded like stocks. My opinion? They are the ultimate beginner product because of the simplicity, diversification and low fees. Investing in ETF’s will give you the opportunity to get to know the market in a low effort way. Side note A lot of ETF’s are index funds, meaning they track a particular index. What is an index?A list of securities to measure the performance of a certain market. For example: the S&P500 index measures the performance of the largest US listed companies. An ETF that tracks the S&P500 buys all stocks in that index, so if you buy a unit of the ETF you have a tiny part of each and every one of those stocks. Recap The stock market is a place where buyers and sellers meet to trade in financial instruments. There are 4 products you need to know and understand as a beginner:– stocks– bonds– mutual funds– ETF’s ETF’s are great beginner products as they are simple, diversified and relatively cheap. Hungry for more? Start learning how to invest with “Newbie to investor” now!

5 easy money management tips for couples

Ah, love! It can be so beautiful, but what if money challenges your relationship? Finance can drive the best couples apart. Luckily I came up with 5 easy money management tips to keep the romance thriving. Love don’t cost a thing “My love don’t cost a thing” Even J-Lo said it, so it’s probably true. But what if money costs you love? Money makes the world go round, whether you like it or not. That means that finance has a way of shaking the fundaments of your relationship too if you don’t see eye to eye. In a society where it’s taboo to talk about money too much it can be a challenge to get down to the financial nitty gritty with your partner. It can feel very intimate to open up about your money mindset, especially when you have different ideas. Now here’s the good news:YOU ARE NOT ALONE! Arguments about money are amongst the most common reasons for divorce. Ouch. But can you tackle this problem? And if so, how? Money management for couples In a world where financial education is absent in the school system it’s hard enough already to make it work on your own, let alone as a couple. That’s why I came up with 5 easy tips for couples to get those money mindset issues out of the way. 1. Start with yourself Before anything else: get clear on your own money mindset. Do you lean towards saving or spending? Was money a problem when you were little? Are you into investing? Get to know your own opinions before challenging someone else’s. If you happen to stumble upon some limiting money beliefs of your own, then this is the time to work on them. 2. Don’t wait too long to discuss money with your partner I know, I know. When you’ve just met someone it’s all about the butterflies and you want to do nothing but fun stuff. I get it, you’re in love! But I’m gonna go ahead and be a party pooper: you need to start talking about money as soon as possible. When you just start dating you are interested to know if your partner wants to eventually get married or have children, don’t you? Finance is just as important to discuss because it has a huge impact on your future. 3. Be honest about your finances Honesty is crucial in any relationship, so it shouldn’t come as a surprise that you need to be. honest about your finances. Many couples have hit a bump in the road because not all of the information was out in the open. So if you have any debt or other money issues: put your cards on the table. If it’s meant to be you can work it out together. 4. Look for the middle ground What if you and your partner have very different ideas about money? This can be tough, but it’s not necessarily a ground for separation. In fact it can even be inspiring. My advice to couples with different opinions on money would be to sit down and interview each other. Get to know why they have certain beliefs. Questions you can ask: How did your parents talk about money? Was money an issue when you were little? Did you get pocket money? Do you talk about money with your friends? What does being rich mean to you? … Grab a drink and some snacks, you could be in for a long night. Remember to keep an open mind. You might get your significant other out of their comfort zone and maybe they can teach you a thing or two as well. 5. Think of yourself as a team It’s incredibly cheesy but yes, teamwork makes the dream work. You are no longer alone, you have a partner to rely on. Don’t keep score, because no one benefits from that. Learn from each other and don’t let ego run the game. Wherever there is mutual love and trust, there is almost nothing you cannot conquer.

When do you use your emergency fund? – The money girl club, episode 002

Over the years you managed to save up for a rainy day. Good on you! This is an accomplishment worth celebrating because not everyone is able to save money. But what exactly is considered a rainy day? When do you tap into that buffer? I can help you decide when to use – or not use – your emergency fund. What’s up with your financial situation? Wether you are planning to start investing or not, it is always a good idea to have a closer look at your financial situation. Determining where you are at is the first step of moving forward. Analyze your spending behavior, check what goes out versus what comes in, and establish an emergency fund. Enter: emergency fund What is it? An emergency fund is a cash buffer for when anything goes wrong. Keeping your money 100% invested is not the best idea, you need to keep some cash at hand. You could save for short term goals (such as the purchase of a house, renovating the bath room, a trip, a wedding…) but you also need to save for emergencies. Where do you keep your cash buffer? You’re going to keep your buffer in a savings account. If you are able to find one with a high interest rate that’s awesome, but nowadays it’s nearly impossible to find a high yield account. Do NOT keep the money in your checking account. This account is for daily expenses only: groceries, bills, going out… It might sound obvious but you don’t want to know how many times I have seen people stash their whole capital in an active checking account. Why is keeping an emergency fund in your checking account a bad idea? There is no way whatsoever of telling your active budget and your savings apart. It is way too tempting to spend your savings if you have direct access to them through a debit or credit card. If you were to become a victim of phishing or fraud – I truly hope this never happens but better safe than sorry – you don’t want them to have easy access to all of your money. How much money should an emergency fund contain? Your emergency fund should contain 3 to 6 months worth of expenses. That’s the general rule of thumb, but I personally think 6 months is a lot. I prefer 3 months because of inflation, but you have to find out for yourself what amount you are comfortable with. If you feel more secure having 5 or 6 months worth of expenses as a buffer, by all means, stick to that. I would recommend 6 months as a maximum though, unless you are saving for a large project. Having trouble building your emergency fund? Do you find it hard to save? → Click on the image below to download my personal expense tracker FOR FREE! What is an emergency? When is a good time or occasion to actually use the money you saved? Let’s start by defining what an emergency is: An emergency is a serious, unexpected, and often dangerous situation requiring immediate action. Serious → the event is not to be taken lightly Unexpected → you couldn’t foresee this happening and were unable to prepare Dangerous → the event is impacting your life in a negative way Requiring immediate action → you need to make an urgent decision These are the objective criteria, but of course an emergency can look different to everyone. These 3 questions will help you decide what an emergency is to you: What is the impact on my life if I don’t spend money on this right now? Is the emergency serious? In other words: are we in the ‘must have’ category or the ‘nice to have’ category. Is there an alternative? Can I get the money somewhere else? Example: my washing machine breaks down. Impact: for me, a washing machine is very important. I used to not have a washing machine when I just moved out of my parents’ house and I know now what a luxury it is to do your laundry at home. I couldn’t live without it anymore, so my machine breaking down seriously impacts my life. Must have or nice to have: for me this is a must have. I do not have time to run to a laundry salon and wait for my laundry to be done. Alternative: can I put in extra hours at work or make extra money some other way on short notice? If that’s not the case, I will use my emergency fund. Examples of must haves: Fridge breaks down: you need a fridge to store your food. Without it, it will go bad. Period of illness: sometimes you need to prioritize your health (mental and physical) and take a paycut. It’s absolutely fine to use your emergency fund for this. Income disappears: losing your job is an emergency worth using your buffer for. Your savings literally buy you time to find a new job. They say money doesn’t buy happiness. It’s true that counting the money in your account doesn’t make you happy. But when going through a stressful time you don’t want any added financial stress. When to not use your emergency fund? Nice to haves are not emergencies. Maybe I am stating the obvious, but you would be surprised how many people use their savings to buy a pair of expensive boots. For your information: I’ll be the first to admit that boots can make you happy. But financial stress doesn’t, please keep that in mind. Examples of nice to haves: An expensive purse or piece of designer clothing. A new phone (when the old one isn’t broken). A pleasure trip that you know you cannot afford. What happens after you have used cash from your emergency fund? This is important! Once you have spent the money: let it go. Most of us dislike spending money because it hurts us. But being able to pay

How to start investing?

It seems like everyone is investing nowadays. You can’t turn on the tv without seeing an ad for a broker app and stock market tips are all over social media. We are all starting to realize that just saving money isn’t gonna cut it. But how do you start investing? Saving is losing Savin is losing. There, I said it. Inflation rates are sky high and they are surpassing interest rates on savings accounts by miles. This means that you are losing money without spending it. The best way to combat inflation? Investing. Investing = putting money into financial schemes, shares, property… with the expectation of achieving a profit. Getting your money invested is what will keep it in the running. It means that you are actively participating in the economy and your hard earned cash is not going to waste. “Sure Valerie, that’s nice and all, but where do I even start?” I get that investing can seem daunting. It took me years to get started because I was convinced that the stock market was a playground of the rich only. I also thought it was too dangerous to put my savings on the line. What if I lost it all? Luckily, I learned a lot in the past couple of years and I know now that you can start with small amounts and that taking huge risks is not necessary. Follow these steps to start investing First of all: you need to set goals. Knowing what you want to do with your money is crucial because it will give you the motivation you need. I want you to really visualize this: do you want a nice house in 10 years? Do you want to send your future kids to a private school? Do you want to take care of your loved ones after you die, donate to charity, buy a condo in Thailand… Whatever it is you want, write it down and revisit that goal from time to time. Secondly, you need to take a look at your financial situation. Track your expenses and see where you are at financially. See if you are overspending on things you don’t need. Maybe you can save on things you weren’t even aware of you bought. Look for ways to increase your income if you’re short on money and can’t cut back. Calculate what you could set aside every month. This is also important to determine how much risk you can take. Now it’s time to learn about the stock market. It is in fact like any other market: a place where buyers and sellers come together. You can choose from the range of products and pick the ones that are interesting to you. In order to choose you need to know the basic products: stocks, mutual funds and ETF’s. Select the products that will make up your portfolio following a strategy. That strategy is based upon your risk profile and financial situation. That’s why it is really important to go through those first steps before you are even taking a look at the stock market. Lastly, you need to pick a broker. A broker is your gateway to the stock market. They facilitate your transactions. See if the broker of your choice offers advice if you want that, check the fees and the available markets. Stock market products for beginning investors Stocks: fractions of a company. You have a direct link to the company and get to share in their wins and losses. Mutual funds: a basket of securities that commonly consists of bonds and stocks. They are manually built by fund managers. Mutual funds allow you to diversify without having to buy all underlying stocks separately. ETF’s: exchange traded fund. Similar to a mutual fund but this product is not managed actively, meaning you also get the diversification but at a lower cost. ETF’s are traded all day long just like stocks. Download my guide “How to start investing” for FREE: Go and listen to this episode on Spotify. If you enjoyed it, please subscribe and share the podcast with your friends. P.s.: Are you eager to learn more about investing? Check out my online course “Newbie to investor”. It contains everything you need to know to get started.

My podcast is live!

OMG it happened, I have my own podcast! Aaah I’m so excited! I published the first ever episode of The money girl club! I am so happy that I can finally present this podcast to you. This show is going to be all about money mindset and investing. I confess: I’m a podcast addict. I have been playing with the idea of starting a podcast for a long time. Why? I feel I have so much to say about this subject and even though I share a lot on Instagram, I don’t feel like that’s enough. I’m a huge podcast fan myself. During the lockdowns (I still cannot believe that’s a plural) I started walking a lot. Like, who didn’t? And on those walks I turned to podcasts. Hours and hours of information poured through my ear buds, I was absolutely hooked. I did listen to podcasts before that but my addiction grew exponentially the past 2 years. “Can you please shut up for a minute, Valerie?” Of course listening to a podcast is one thing, making one myself is another. But it felt like a logical step, because I loooove to talk. Ask my parents and friends, they will gladly confirm. Fun fact: I actually went to law school but dropped out in the second year because I hated it. It was so boring and I couldn’t stand reading those complicated legal documents. Life is too short to figure out those wordings. When I was little, my teachers would always say that I would surely become a lawyer because I just wouldn’t shut up. Fun fact: I actually went to law school but dropped out in the second year because I hated it. It was so boring and I couldn’t stand reading those complicated legal documents. Life is too short to figure out those wordings. Now that we’re on the subject, I’ll tell you a bit more about me. My name is Valerie. I am 34 years old at the time of the first recording and I live in Antwerp with my husband David. It still feels funny to call him that, even though we have been married for almost a year now. Freedom chaser I have traveled a lot and plan to continue that in the future. I went to Australia and Asia, both solo and with my husband. If you ask my parents they will tell you I am stubborn and exhausting, and that I am non conformist to say the least. I believe they call it difficult, I prefer to call it creative. 😃 I chase freedom constantly. I believe life is meant to be designed to your liking, and that money is a tool to accomplish that. Money will get you where you want to be, and that’s why I want to speak freely about in this podcast, without the attitude and the taboos. Also: I like to believe I’m really funny and I hope you agree with me. And if not… well we will find out soon enough, no? Haha! In 2021 I founded “This money girl”. In my business I want to help you get educated about finance. I’m one of those people who were lucky enough to find their purpose in Covid times. The past two years have been hard on the world and on me as well. But I’m very grateful I was able to turn this shitty experience into something positive. Let’s talk about financial education I work at the customer service department of a bank, and it struck me how many people don’t have basic financial knowledge. So many people don’t have a clue about what is happening to their money, and it bothers me so much. I realized that most of us aren’t taught how to manage money and that’s where I want to step in. To be clear: I’m not saying this to make fun of those people or to be condescending. It’s just a conclusion. If you want to lead a nice life it is crucial that you understand money, but too little is said about this topic because it’s “not done”. I’m over this mindset and aim to spread as much knowledge as I can. Who is this show for? Ok, enough about me. I want to talk about you! Who are you, who is this podcast for? This show is for you if you want to learn about investing but don’t know where to start. This show is for you if you too are over the money taboo and want to change your money mindset. And lastly, this show is for you if you want to design your life to your liking and if you’re an ambitious freedom seeker just like me, a bit of a rebel even. So many people don’t have a clue about what is happening to their money, and it bothers me so much. Up until now, my audience on Instagram and my clients consist mostly of women. That doesn’t mean that my message is only for women, I want you to know that everybody is welcome here. What I do aim for is to get more women on to the stock market, because it is still very much a men’s world. Classic investing campaigns in the past almost always targeted men, as they were “the head of the family”. I hate this expression, with a capital “H”. I believe a family consists of equal members who all contribute to the best of their ability. This is why I call myself a financial feminist: not because I hate men (that’s really not what feminism is about) but because I believe everyone has the right to the same opportunities. So ladies: it’s time to enter the stock market! This show is not for you if… This show is not for you if you are looking for financial advice. I will never tell you what to buy or sell, and when to do it. What I will do is provide you

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