Taking care of your finances can sometimes feel like a second full-time job or a never-ending puzzle. And with so many moving targets to keep up with in life, it can be overwhelming to prioritize it.&nbsp; The most important part of prioritizing your finances is to fall in love with the process because trying to fix the whole array at once will not leave you feeling fulfilled. Move forward in baby steps&nbsp;with intentionality, knowing each step leads closer to the end goal.A few paramount tips:<ul><li>Get it in motion: An object in motion tends to stay in motion, which you already knew. Thanks, Isaac Newton. Once you get started on getting your financial affairs in order, it becomes much easier to keep going. Start by thinking about your goals:&nbsp;What are your short-term, intermediate, and long-term goals? And if you've been thinking about your goals for a while, it’s probably high time to&nbsp;get them out&nbsp;of your head and documented.&nbsp;</li><li>Save, save, and save: In Maslow’s hierarchy of needs, safety is a top priority for humans, and it’s no different in our finances. No matter your financial situation, having a buffer against the inevitable unknown is one of the smartest things you can do that will allow you to build a foundation for your other financial goals.&nbsp; </li><li>It's OK to pay down debt and invest, simultaneously.&nbsp;Unless you’ve got some really urgent high-interest CC debt, that is.&nbsp;If not, it’s okay to split your extra cash between investing in the future and paying off the past, and you inch a step closer toward financial freedom by doing both. Sometimes though, paying down debt first or solely investing is OK too—it entirely depends on your situation.</li><li>Tackle one goal at a time:&nbsp;If you try to tackle all of your financial goals and priorities all at once, you'll get overwhelmed.&nbsp;Small meaningful progress every day are the keywords here.</li></ul>💡Check out <a href="https://i.imgur.com/u0ocDRI.png" target="_blank">this pretty neat flow chart</a> that may help some of you get those priorities in action.

Taking care of your finances can sometimes feel like a second full-time job or a never-ending puzzle. And with so many moving targets to keep up with in life, it can be overwhelming to prioritize it.   The most important part of prioritizing your finances is to fall in love with the process because trying to fix the whole array at once will not leave you feeling fulfilled. Move forward in baby steps with intentionality, knowing each step leads closer to the end goal.A few paramount tips:💡Check out this pretty neat flow chart that may help some of you get those priorities in action.

Prioritize your financial goals

FINANCIAL FREEDOM

Here we are again—the&nbsp;all too well-known perpetual moving target of trying to sight and predict bubbles in the market. It’s a long-standing economic phenomenon that not even the most experienced investors can gauge perfectly, let alone those who reside permanently with the bulls or the bears.&nbsp; But hey, this doesn’t stop us from trying to squint and make a good guess. Of course, guesses are often made better when they’re laced with quality data, and thankfully we have a few relevant insights that might help some of you decide whether or not we’re in some kind of a market bubble right now.The ingredients for a bubble A bubble could be loosely defined as an accrual of unsustainable traits, usually in the form of excess liquidity and market exuberance. They form a kind of temporary Goldilocks Zone that seems&nbsp;destined to come to an end, eventually. So, here are a few things that could indicate a bubble of sorts. <ul><li> Unusual trading volume: When a market reaches a peak cycle or market exuberance, overall trading volume tends to rise. We saw this in the <a href="https://www.statista.com/statistics/226144/us-existing-home-sales/" target="_blank">housing market</a> leading up to 07-08’, and it’s happening again in the <a href="https://data.worldbank.org/indicator/CM.MKT.TRAD.CD" target="_blank">equities markets</a> now.</li></ul><img src="https://finny.s3.amazonaws.com/images/20ed26d2-c68f-42b7-8f2a-7da79a91073d.png" style="width: 469px; height: 305px;" width="469" height="305"><ul><li>Open season—democratization: Democratizing finance has opened the proverbial investing doors to new investors who've together&nbsp;moved markets in ways they couldn't dare dream about doing in years past. Despite the noble mission, it can also cause a flood of inexperience to contribute to markets running wild, especially in unforeseen ways like meme stocks, the SPACs boom, meme coins, etc. </li><li>Leverage running high: Margin debt has spiked since the flash crash in early 2020, and we already know the nightmares of what can happen when we extend loans to borrowers who may be underqualified.</li></ul><img src="https://finny.s3.amazonaws.com/images/f34ded76-8505-4cb4-aad5-fd5ccc3426c7.png" style="width: 418px; height: 303px;" width="418" height="303">Some further observations and heck, some suggestions too All of these quantitative and anecdotal observations can help&nbsp;us come to a conclusion, but one of the most overlooked steps in making an informed decision is to look for further information beyond what’s presented, even if it contradicts the original idea.&nbsp; And the nuance to remember here is that “the market” is far from a single entity, so it’s fair to break it down further. For example, we see that just 3 out of&nbsp;11&nbsp;GICS&nbsp;sectors have outperformed the market (technology, communication services, and consumer discretionary),&nbsp;that a near-record number of <a href="https://www.yahoo.com/now/number-nasdaq-stocks-down-50-191637334.html" target="_blank">Nasdaq stocks</a> have been beaten down by 50% or more, and that the S&amp;P 600 is trading much poorer on forward earnings than its large-cap sibling, S&amp;P 500.The big pictureIf the bubble exists, it probably isn’t universal, and if you’re scared, the best safe haven might be to find beaten-down stocks, lagging sectors, or hold on for dear life and never sell, because it usually works itself out in the long run.&nbsp;<img src="https://finny.s3.amazonaws.com/images/a99cd66c-df6f-46f8-a0ee-8f7700ff940a.png" style="width: 485px; height: 273px;">Fear of a bubbly market combined with inflation and Fed talks has already forced the markets into a haircut. The S&amp;P is down 4.5% this year already, the Dow 3.3%, Russell 2000 small-cap nearly 8%, and the Nasdaq over 8% as well.&nbsp; Bubble or not, we’ve been approaching correction territory so far in 2022 as&nbsp;top-heavy indexes have stumbled out the gate. Could this trimming stave off a deeper sell-off for now? Sure, but it could also continue if investors see fit, but that shouldn’t stop you from staying invested.

Here we are again—the all too well-known perpetual moving target of trying to sight and predict bubbles in the market. It’s a long-standing economic phenomenon that not even the most experienced investors can gauge perfectly, let alone those who reside permanently with the bulls or the bears.  But hey, this doesn’t stop us from trying to squint and make a good guess. Of course, guesses are often made better when they’re laced with quality data, and thankfully we have a few relevant insights that might help some of you decide whether or not we’re in some kind of a market bubble right now.The ingredients for a bubble  A bubble could be loosely defined as an accrual of unsustainable traits, usually in the form of excess liquidity and market exuberance. They form a kind of temporary Goldilocks Zone that seems destined to come to an end, eventually. So, here are a few things that could indicate a bubble of sorts. Some further observations and heck, some suggestions too All of these quantitative and anecdotal observations can help us come to a conclusion, but one of the most overlooked steps in making an informed decision is to look for further information beyond what’s presented, even if it contradicts the original idea.   And the nuance to remember here is that “the market” is far from a single entity, so it’s fair to break it down further. For example, we see that just 3 out of 11 GICS sectors have outperformed the market (technology, communication services, and consumer discretionary), that a near-record number of Nasdaq stocks have been beaten down by 50% or more, and that the S&P 600 is trading much poorer on forward earnings than its large-cap sibling, S&P 500.The big pictureIf the bubble exists, it probably isn’t universal, and if you’re scared, the best safe haven might be to find beaten-down stocks, lagging sectors, or hold on for dear life and never sell, because it usually works itself out in the long run. Fear of a bubbly market combined with inflation and Fed talks has already forced the markets into a haircut. The S&P is down 4.5% this year already, the Dow 3.3%, Russell 2000 small-cap nearly 8%, and the Nasdaq over 8% as well.   Bubble or not, we’ve been approaching correction territory so far in 2022 as top-heavy indexes have stumbled out the gate. Could this trimming stave off a deeper sell-off for now? Sure, but it could also continue if investors see fit, but that shouldn’t stop you from staying invested.

Avoiding the market bubble

INVESTING

Giphy

Crypto has had an <a href="https://www.askfinny.com/bites/What-happened-in-crypto-last-year-2022-Jan-20" target="_blank">adventurous 12 months</a>. The volatility of this evolving asset class can be daunting, but there are&nbsp;some worthwhile benefits it brings during tax season too.Crypto’s volatility = tax savingsBitcoin is down about 50% from its November highs, down about 25% year-to-date, and probably down some other varying amount from when you might’ve purchased it, considering its volatility.&nbsp; Luckily, this can be used to your advantage come tax time. You can use what’s known as the <a href="https://www.forbes.com/sites/shehanchandrasekera/2020/09/17/what-crypto-taxpayers-need-to-know-about-fifo-lifo-hifo-specific-id/" target="_blank">HIFO</a>,&nbsp;highest in first out, method. That means you can pick out the most expensive crypto you bought and use that number to determine how much in taxes you owe.&nbsp; This either reduces your capital gains by giving you a higher cost basis on the amount sold or increases your losses in the same manner.To do this, you’ll need the following information: Date and time the crypto was bought, cost basis and fair market value at the time of purchase, date and time each unit was sold or swapped, and the fair market value of each unit at the time of sale, swap, or if exchanged, the value of property received in exchange.&nbsp;Wash sale rule—not yet applicable You pay capital gains taxes on both property and equities, so it might seem like the two are very similarly treated come tax season. This is true to an extent, but they also have their differences, and because crypto is treated as&nbsp;property vs. equity, it gets the benefit of being exempt from the wash sale rule for now.&nbsp; What’s the wash sale rule?&nbsp;IRS' wash sale rule is&nbsp;designed to ensure you don't unduly reduce your taxable income by booking losses and then re-purchasing&nbsp;the same or substantially same&nbsp;security within a 30-day window.&nbsp;That means with crypto,&nbsp;you can choose to sell your coin for a loss and use that loss to either offset your capital gains or offset up to $3,000 in ordinary income each year as well. And if you had a really bad year, those losses can be applied annually and indefinitely, $3K at a time.📚&nbsp;Learn about the wash sale rule or brush up on it right here:

Crypto has had an adventurous 12 months. The volatility of this evolving asset class can be daunting, but there are some worthwhile benefits it brings during tax season too.Crypto’s volatility = tax savingsBitcoin is down about 50% from its November highs, down about 25% year-to-date, and probably down some other varying amount from when you might’ve purchased it, considering its volatility.  Luckily, this can be used to your advantage come tax time. You can use what’s known as the HIFO, highest in first out, method. That means you can pick out the most expensive crypto you bought and use that number to determine how much in taxes you owe.  This either reduces your capital gains by giving you a higher cost basis on the amount sold or increases your losses in the same manner.To do this, you’ll need the following information: Date and time the crypto was bought, cost basis and fair market value at the time of purchase, date and time each unit was sold or swapped, and the fair market value of each unit at the time of sale, swap, or if exchanged, the value of property received in exchange. Wash sale rule—not yet applicable  You pay capital gains taxes on both property and equities, so it might seem like the two are very similarly treated come tax season. This is true to an extent, but they also have their differences, and because crypto is treated as property vs. equity, it gets the benefit of being exempt from the wash sale rule for now.   What’s the wash sale rule? IRS' wash sale rule is designed to ensure you don't unduly reduce your taxable income by booking losses and then re-purchasing the same or substantially same security within a 30-day window. That means with crypto, you can choose to sell your coin for a loss and use that loss to either offset your capital gains or offset up to $3,000 in ordinary income each year as well. And if you had a really bad year, those losses can be applied annually and indefinitely, $3K at a time.📚 Learn about the wash sale rule or brush up on it right here:

Crypto tax loopholes

TAXES & CRYPTO

Source—MoneySuperMarket

Madness might be a limiting descriptor of what we’ve experienced in the stock market over the last couple years. From the pandemic crash to meme stocks, crypto and inflation, we’ve all had our fair share of stressful happenings touch our portfolio in one way or another.&nbsp; No matter how much we know to keep the emotion out of investing, it can still be tough to truly filter out those feelings of angst during times of market chaos. The desire to do something to fix it is always present, and although it’s a natural reaction, there are some things we can do to use that for good.The calm within the storm<ul><li>Have a plan beforehand: Investing without a plan is a recipe for disaster and incessant questioning of your previous decisions. When you take the time to plan and understand the why, how, when, how much, and all parameters of your investment before even getting in, the fluctuations will phase you much less.&nbsp; </li><li>Set barriers to unnecessary action: Take your brokerage app off your home screen, turn off your notifications, turn down the brightness, delete the app entirely and only use a computer. Whatever you need to do to prevent yourself from keeping an ear to the markets 24/7, and subsequently avoid making rash decisions.&nbsp; </li><li>Trade within your means: No investment could ever cause too much anxiety if it’s something you can afford to lose. This rings mostly true within short-term trading especially, and if you find yourself fretting over every tick of the price… you’ve probably invested beyond your means. As&nbsp;cliché as it is, only invest what you can afford to lose.</li></ul>🐻 Review a few concepts when it comes to the psychology in investing. These concepts may seem obvious, but not so much when panic settles in.&nbsp;

Madness might be a limiting descriptor of what we’ve experienced in the stock market over the last couple years. From the pandemic crash to meme stocks, crypto and inflation, we’ve all had our fair share of stressful happenings touch our portfolio in one way or another.   No matter how much we know to keep the emotion out of investing, it can still be tough to truly filter out those feelings of angst during times of market chaos. The desire to do something to fix it is always present, and although it’s a natural reaction, there are some things we can do to use that for good.The calm within the storm🐻 Review a few concepts when it comes to the psychology in investing. These concepts may seem obvious, but not so much when panic settles in. 

Ways to stay calm amidst the market madness 

INVESTING MINDSET

Many of us long-term investors have no doubt suffered our fair share of intrusive thoughts over the last 18 months. Fears of an elongated bear market are natural amidst unprecedented world events and can make deciding on a safe place to hide our money for the long haul more difficult than it already is.&nbsp; Questioning the sustainability of an investment is of course an important part of due diligence, and unfortunately much easier said than done. There are of course your traditional easy money placeholders like mutual funds and ETFs that can easily set you up for retirement, and those are a great place to start.&nbsp; But for those of us who want to venture out on our own and try to find the future before it gets here, where should we look?Cover your bases firstAs the saying goes, let’s not put all of our eggs into one basket. Although investing in the future of the market can be fun and also lucrative, it’s important to make sure you’re in a good position to do so first. Future-oriented investments tend to be smaller cap, growth companies that will experience more volatility than your more well-established, dividend aristocrat investments that retirement funds love.&nbsp; So, before venturing into the world of growth sectors and betting on the next decade, get your ducks in a row. Establish an emergency fund, max out your retirement contributions, stash primary retirement money in some&nbsp;diversified boring investments for the long run. If you’ve checked all those boxes and still have money to invest, let's zoom in.The future by the numbers <ul><li> Fintech: With expected growth rates ranging from the mid to high teens over the next decade, the financial technology sector is one of the fastest-growing in the market. It’s expected to reach over $300 billion in value by 2025, and $500 billion by 2030. Ideas** might include: $SQ, $PYPL, $SOFI, $ARKF, and $FINX.</li><li>Greentech: Despite disagreements, the long-term momentum toward greener energy is clear, and the data bears it out. With the industry value expected to grow from almost $9 billion in 2019 to $48 billion in 2027, not to mention a 24% CAGR, (compounded annual growth rate),&nbsp;renewable energy is a sector of the future. Ideas**: $FCEL, $BEP, $NEE, $ICLN, and $TAN.&nbsp; </li><li>Electric Vehicle (EVs), maybe: EVs can definitely vie for a spot here, but a lot of it depends on the world’s ability to develop and adopt enough of the underlying infrastructure necessary to maintain them. That being said, EVs are certainly looking to supplant traditional vehicles, and with a growth rate of over 20% for 2020-2027, it’s a sector worth parking some speculative funds into, and perhaps allocating a bit more in the future once more established. Ideas**: $GOEV, $CCIV, $CHPT, $DRIV, and $IDRV. </li><li>ESG investing: ESG (environmental, social, and governance) is kind of a broad term and one that can encompass businesses throughout multiple sectors. Nevertheless, this category of investing is a fast-growing one, notching $21 billion in assets in Q1 of 2021 alone—and that's after pulling in $51 billion in 2020, $21 billion in 2019, and just $5.4 billion in 2018. ESG is on pace to 15x in the last 4 years, and iShares predicts it could top $1 trillion in assets by 2030. Ideas**: $CSCO, $MSFT, $ESGE, and $ESGV.</li></ul>📚 Not quite sure what ESG investing is? Learn a thing or two from this bite-size Finny quiz:

Many of us long-term investors have no doubt suffered our fair share of intrusive thoughts over the last 18 months. Fears of an elongated bear market are natural amidst unprecedented world events and can make deciding on a safe place to hide our money for the long haul more difficult than it already is.   Questioning the sustainability of an investment is of course an important part of due diligence, and unfortunately much easier said than done. There are of course your traditional easy money placeholders like mutual funds and ETFs that can easily set you up for retirement, and those are a great place to start.   But for those of us who want to venture out on our own and try to find the future before it gets here, where should we look?Cover your bases firstAs the saying goes, let’s not put all of our eggs into one basket. Although investing in the future of the market can be fun and also lucrative, it’s important to make sure you’re in a good position to do so first. Future-oriented investments tend to be smaller cap, growth companies that will experience more volatility than your more well-established, dividend aristocrat investments that retirement funds love.   So, before venturing into the world of growth sectors and betting on the next decade, get your ducks in a row. Establish an emergency fund, max out your retirement contributions, stash primary retirement money in some diversified boring investments for the long run. If you’ve checked all those boxes and still have money to invest, let's zoom in.The future by the numbers 📚 Not quite sure what ESG investing is? Learn a thing or two from this bite-size Finny quiz:

Where to invest $10, $20 or even $100,000 for the next 10 years

When you buy everyday items like razors or body wash, it's easy to spot "masculine" products because they tend to be blue or gray, and if scented, "musky" in smell.&nbsp; On the other hand, "feminine" products are pink with a dash of glitter and have "fruity" scented names like sweet pea or apple blossom.While colors and scents are the most obvious differences between products aimed at men and women, there's another not-so-apparent difference: the price tag. And it’s costing those who buy products aimed at women a lot more.So what is it?The pink tax is&nbsp;gender-based pricing that charges more for the same or similar&nbsp;products targeted to women. And it’s not actually a tax, but rather an income-generating strategy by consumer goods companies that see the opportunity to make more by charging more.&nbsp; The thinking is if you can make more money, why not?And it's&nbsp;not a new phenomenon.&nbsp;&nbsp;Over the last two decades, several US states have released detailed reports on gender pricing discrimination in their states. The issue&nbsp;was then more clearly defined in 2015 when the New York City Department of Consumer Affairs released <a href="https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Study-of-Gender-Pricing-in-NYC.pdf" target="_blank">their findings</a>: women’s products cost 7% more than similar
products for men, with&nbsp;the&nbsp;most egregious upcharges found in personal care products. The pink tax doesn't just stop at women's products though. Toys and accessories for girls are consistently priced higher than those for boys.&nbsp; Based on the study, the largest price discrepancy was in helmets and knee/elbow pads, with girls' versions priced 13% higher!So how do you avoid it?♀️ Support companies that are standing up to the pink tax.&nbsp; Have you heard of startups like Harry's, Billie or&nbsp;Box?&nbsp; They are&nbsp;enforcing price equality for feminine products, on a&nbsp;per-unit basis for products that typically cost more for women than men.🧴&nbsp;Buy&nbsp;gender-neutral items when shopping for toys, razors, shampoos, deodorants.🧼 Price compare&nbsp;services&nbsp;like dry cleaning that are&nbsp;known to have a steep pink tax.⚖️ If you're feeling inspired, talk to your state representatives, and support price equality&nbsp;social media campaigns.&nbsp; Activism and word-of-mouth&nbsp;are&nbsp;powerful tools we've got.

When you buy everyday items like razors or body wash, it's easy to spot "masculine" products because they tend to be blue or gray, and if scented, "musky" in smell.  On the other hand, "feminine" products are pink with a dash of glitter and have "fruity" scented names like sweet pea or apple blossom.While colors and scents are the most obvious differences between products aimed at men and women, there's another not-so-apparent difference: the price tag. And it’s costing those who buy products aimed at women a lot more.So what is it?The pink tax is gender-based pricing that charges more for the same or similar products targeted to women. And it’s not actually a tax, but rather an income-generating strategy by consumer goods companies that see the opportunity to make more by charging more.  The thinking is if you can make more money, why not?And it's not a new phenomenon.  Over the last two decades, several US states have released detailed reports on gender pricing discrimination in their states. The issue was then more clearly defined in 2015 when the New York City Department of Consumer Affairs released their findings: women’s products cost 7% more than similar
products for men, with the most egregious upcharges found in personal care products. The pink tax doesn't just stop at women's products though. Toys and accessories for girls are consistently priced higher than those for boys.  Based on the study, the largest price discrepancy was in helmets and knee/elbow pads, with girls' versions priced 13% higher!So how do you avoid it?♀️ Support companies that are standing up to the pink tax.  Have you heard of startups like Harry's, Billie or Box?  They are enforcing price equality for feminine products, on a per-unit basis for products that typically cost more for women than men.🧴 Buy gender-neutral items when shopping for toys, razors, shampoos, deodorants.🧼 Price compare services like dry cleaning that are known to have a steep pink tax.⚖️ If you're feeling inspired, talk to your state representatives, and support price equality social media campaigns.  Activism and word-of-mouth are powerful tools we've got.

The pink tax is for real

CONSUMERISM

How does an annual return on your investment of 5% percent
sound? Not bad, right? What about 10%? Surely not. 15%? No way.
These returns would be unimaginable if you left your money
to sit in a bank account, but this is well within reach through ‘staking’
cryptocurrencies. 
It may seem like a daunting task to ‘get into crypto,’ but behind
all the complicated jargon, there is money to be made, and learning the basics
is not as painful as we might imagine.Staking—not as complicated as you thoughtStaking involves using your cryptocurrency tokens to
contribute to keeping a cryptocurrency network up and running. You're rewarded
with crypto by contributing to the network the same way you're rewarded with dollars&nbsp;for leaving your money in the bank, but the returns can be much higher.Getting started with staking crypto is a simple
process:<ol><li>
Purchase some crypto from an exchange such as FTX, Coinbase or&nbsp;Binance.&nbsp;Purchasing cryptocurrency is no longer a complicated process
reserved for computer nerds. Register on an exchange and use your fiat
(Dollars, Euros, Yen, etc.) to get your virtual hands on some crypto. Just make
sure you buy a stakable crypto such as Cardano (ADA) or Solana (SOL).</li><li>Move your crypto to a <a href="https://www.askfinny.com/bites/whats-a-crypto-wallet-dec-01-2021" target="_blank">cryptocurrency wallet</a>.&nbsp;Once you’ve purchased some crypto, it is important to store
it safely in a cryptocurrency wallet. If you don’t already have one, dozens of
wallets can be downloaded onto your PC and set up with less hassle than
creating a new e-mail address.</li><li>Stake your crypto. Congratulations, the big moment has arrived – follow the
instructions in your wallet and stake away!</li><li>Sit back, relax and enjoy your passive crypto
income.&nbsp;Your cryptocurrency is now staked, and it's being used to
keep the crypto-network up and running. The longer you leave your crypto staked,
the more rewards you will collect.</li></ol>Sounds great, but what are the risks?Like any investment, there are potential downsides—no risk,
no reward, as they say. <ul><li>Market Volatility:
The crypto market is notoriously volatile; this is something
everyone should bear in mind when purchasing crypto, even if you plan to hold
and stake. Your crypto might appreciate or depreciate&nbsp;dramatically in value in
a short space of time.</li><li>Lockup Periods: 
Some cryptos have to be ‘locked-up’ for a certain number of
days, weeks, or even months when staking. During this period, you may not be able to withdraw your investment or you may&nbsp;have to pay a withdrawal fee.</li><li>Fluctuating Returns: Although you will be given an estimate of your annual return
on investment, this can change over time, meaning you might get more or less
than you expected when investing. </li><li>Lost, Frozen, or Stolen:&nbsp;Although rarely an issue, your staked tokens could be stolen
by hackers, lost due to network error, or even frozen if the crypto project
gets de-listed.</li></ul>
The big picture
Staking crypto tokens can be a great way to earn high
returns on your investment while holding an asset that you could appreciate
over time. However, as with any investment, you should be aware of investment
risks, especially when dealing with a market as volatile as crypto.

How does an annual return on your investment of 5% percent
sound? Not bad, right? What about 10%? Surely not. 15%? No way.
These returns would be unimaginable if you left your money
to sit in a bank account, but this is well within reach through ‘staking’
cryptocurrencies. 
It may seem like a daunting task to ‘get into crypto,’ but behind
all the complicated jargon, there is money to be made, and learning the basics
is not as painful as we might imagine.Staking—not as complicated as you thoughtStaking involves using your cryptocurrency tokens to
contribute to keeping a cryptocurrency network up and running. You're rewarded
with crypto by contributing to the network the same way you're rewarded with dollars for leaving your money in the bank, but the returns can be much higher.Getting started with staking crypto is a simple
process:Sounds great, but what are the risks?Like any investment, there are potential downsides—no risk,
no reward, as they say. The big picture
Staking crypto tokens can be a great way to earn high
returns on your investment while holding an asset that you could appreciate
over time. However, as with any investment, you should be aware of investment
risks, especially when dealing with a market as volatile as crypto.

What is crypto staking? Could it be a passive income gold-mine?

Crypto & NFTs

Terry Smith, often known as the English Warren Buffett, has once again shared his <a href="https://www.fundsmith.co.uk/media/3wcngjie/2021-fef-annual-letter-to-shareholders-web.pdf" target="_blank">annual letter</a> encompassing ideas on investment strategies positioned to do well,&nbsp;views on specific stocks and thoughts on the current financial world.&nbsp;Well-known in the UK among retail investors, Smith’s Fundsmith Equity&nbsp;fund returned about 18.6%&nbsp;in 2021 and holds 28.9 billion pounds ($39.4 billion).Here are 8 lessons that I've taken away from him:<ol><li>No investment strategy will outperform in every reporting period and every type of market condition. So, as much as we may not like it, we can expect some periods of underperformance. </li><li>In investment, as in life, you cannot have your cake and eat it, so it is difficult if not impossible to find companies which are resilient in a downturn but which also benefit fully from the subsequent recovery. </li><li>In our view, it would be a mistake to sell some of these good businesses in order to invest temporarily in companies which are much worse but which have greater recovery potential. </li><li>Someone once said that no one ever got poor by taking profits. This may be true but I doubt they got very rich by this approach. </li><li>We invest in companies, not indices or countries and in our view, the country where a company is listed is largely irrelevant. </li><li>We continue to apply a simple three step investment strategy: Buy good companies, don't overpay,&nbsp;do nothing (i.e.,&nbsp;minimising portfolio turnover&nbsp;to minimise costs)</li><li>You may have heard a lot talked about the so-called 'rotation' from quality stocks of the sort we seek to own to so-called value stocks, which in many cases is simply taken as equating to lowly rated companies. </li><li>&nbsp;Inflation: It is a bit like trying to light a bonfire or a traditional BBQ on a damp day. If you put an accelerant like gasoline on it you can go from no fire to a loud ‘Whoosh!’ and find that you have also set fire to the garden fence. </li><li>The good news is that we do not invest on the basis of our ability to forecast inflation or any other macroeconomic factor. We invest in companies not countries, indices or macroeconomic forecasts.</li></ol>“On the whole the return characteristics of businesses persist,” Smith wrote.&nbsp;The top five contributors to the Fundsmith Equity fund in 2021 were&nbsp;Microsoft Corp.,&nbsp;Intuit Inc., Novo Nordisk A/S, Estée Lauder Cos Inc. and&nbsp;IDEXX Laboratories Inc. The bottom five were&nbsp;PayPal Holdings Inc.,&nbsp;Amadeus IT Group SA, Kone AG, Unilever Plc and&nbsp;Brown-Forman Corp.

Terry Smith, often known as the English Warren Buffett, has once again shared his annual letter encompassing ideas on investment strategies positioned to do well, views on specific stocks and thoughts on the current financial world. Well-known in the UK among retail investors, Smith’s Fundsmith Equity fund returned about 18.6% in 2021 and holds 28.9 billion pounds ($39.4 billion).Here are 8 lessons that I've taken away from him:“On the whole the return characteristics of businesses persist,” Smith wrote. The top five contributors to the Fundsmith Equity fund in 2021 were Microsoft Corp., Intuit Inc., Novo Nordisk A/S, Estée Lauder Cos Inc. and IDEXX Laboratories Inc. The bottom five were PayPal Holdings Inc., Amadeus IT Group SA, Kone AG, Unilever Plc and Brown-Forman Corp.

9 investing quotes from Terry Smith's 12th annual letter

When it comes to cryptocurrencies, the perspectives investors tend to take on rests on a spectrum of sorts. On one end, you’ve got the measured, conservative approach that may be quite leery of this new asset class, and on the other,&nbsp;the YOLO, let’s take it to the moon camp.&nbsp; Neither of these outlooks are wrong per se, but perhaps there's a happy medium to be found. We should obviously try to understand the things we invest in, but to what extent? With something as intricate as crypto, how do we know if we’re ready?Look at it as a spectrum They say we should understand what we invest, but insofar as what? You might understand you’re buying shares of Apple, but how much do you know about the process of building a brand new Macbook? Do you know what the company’s quick ratio is, who their marketing director is, or any number of obscure facts about the business?&nbsp; As we can see, it’s very easy to take this too far. We don’t need to have in-depth knowledge of the inner workings of each and every company we invest in, because although it would be really impressive, it’s just impractical. Crypto can be viewed similarly.The basics and the risk&nbsp; Cryptocurrency is different, in some ways vastly so, but also similar in terms of utility to the average investor. Its uniqueness comes with unique risks, and of course its own terminology too. So, let’s distill it down to a few essentials you should understand before investing in crypto.<ul><li>Volatility: Stocks can be volatile, just read topic one. Crypto though, in most cases, is volatile. Reasons for this vary by coin, with <a href="https://t3index.com/indices/bit-vol/" target="_blank">Bitcoin’s volatility</a> being due to a low float, concentrated holdings, and the fact that its intrinsic value is uncertain. For other coins, reasons may be similar or different, but the inherent volatility of an emerging asset is the same.&nbsp; </li><li>Purpose: Each crypto project has its own goal, and the coins that coincide with them exist as incentive for the validators who support their decentralized system. You don’t need to understand every crypto’s mission statement, but at least get the gist of the one you want to invest in.&nbsp; </li><li>Regulation: Crypto is an asset for now, and you will pay capital gains taxes on it if applicable. Outside of that, oversight and regulation are limited, but improving.&nbsp; </li><li>Security: Crypto exchanges where coins can be bought often ensure your dollars on the platform, but not your crypto. So, there’s a slight risk you could lose your crypto in the event of a hack. This is the risk of keeping your coins in a hot wallet, and you should understand the difference between that and cold storage before investing.</li></ul>If you’re still not sure about crypto, try this decision tree:<img src="https://finny.s3.amazonaws.com/images/58b619d8-7121-4e6e-9b4e-aa634581107a.png">💡And if you haven't already, take this bite-size lesson on crypto basics:

When it comes to cryptocurrencies, the perspectives investors tend to take on rests on a spectrum of sorts. On one end, you’ve got the measured, conservative approach that may be quite leery of this new asset class, and on the other, the YOLO, let’s take it to the moon camp.   Neither of these outlooks are wrong per se, but perhaps there's a happy medium to be found. We should obviously try to understand the things we invest in, but to what extent? With something as intricate as crypto, how do we know if we’re ready?Look at it as a spectrum  They say we should understand what we invest, but insofar as what? You might understand you’re buying shares of Apple, but how much do you know about the process of building a brand new Macbook? Do you know what the company’s quick ratio is, who their marketing director is, or any number of obscure facts about the business?  As we can see, it’s very easy to take this too far. We don’t need to have in-depth knowledge of the inner workings of each and every company we invest in, because although it would be really impressive, it’s just impractical. Crypto can be viewed similarly.The basics and the risk   Cryptocurrency is different, in some ways vastly so, but also similar in terms of utility to the average investor. Its uniqueness comes with unique risks, and of course its own terminology too. So, let’s distill it down to a few essentials you should understand before investing in crypto.If you’re still not sure about crypto, try this decision tree:💡And if you haven't already, take this bite-size lesson on crypto basics:

How to qualify yourself to invest in crypto

CRYPTO

Bitcoin was created back in 2009, but it seems it didn’t formally introduce itself to the world until its initial breakout in late 2017. After that initial pump, $BTC fell off drastically, taking the entire crypto crew&nbsp;out of the spotlight with it for a while.&nbsp; After a long three years, crypto was unofficially "back” in late 2020. Bitcoin broke out of an almost 3-year slump, pulling a 3x return in a matter of months. It then climbed to an all-time high of $61K in March, holding ground in the $50Ks through May. And Ethereum and other altcoins went along for the rollercoaster ride.&nbsp;Crypto’s 2021 price recap After reaching peak euphoria on multiple occasions through May 2021, crypto again faced headwinds as leaders $BTC and $ETH&nbsp;dropped about 50% each through the summer doldrums, caused primarily by further crackdowns on the industry in China.&nbsp; But markets subsequently rebounded buoyantly before dipping again and then climbing back up. Chart patterns of other noteworthy projects like Cardano, Polygon, Solana, Polkadot, etc. all mirrored the market cap leaders.&nbsp; Based on price action alone, fans of the emerging asset class will argue that&nbsp;regardless of the volatility, the&nbsp;upside is huge and that we're simply on the ground floor. But despite that, there's no doubt&nbsp;a lot of positive progress was made in 2021.Some noteworthy events from 2021 <ul><li> Bitcoin crossed the $1 trillion&nbsp;market value mark:&nbsp;Achieving this milestone was&nbsp;fueled, in part, by increased adoption by major investors, companies and retail investors alike.</li><li>China bans crypto: China effectively put the nail in crypto’s coffin with their latest legislation. </li><li>El Salvador went all in: El Salvador decided to adopt Bitcoin as legal tender, and is the first country to do so. </li><li>The first “Bitcoin ETF” launched: We now have a “Bitcoin ETF” that’s really a “Bitcoin futures ETF.” This isn’t quite what most wanted, but progress nonetheless.&nbsp;</li><li>Ethereum launched EIP 1559: $ETH launched an anticipated update that will begin reducing the supply of Ether, change how gas fees are estimated, and prepare the shift to a proof of stake model.</li><li>NFTs explode: They seemed to have come out of nowhere, and then one of them&nbsp;set a new record by selling for $69 million. The NFT market hit $22 billion in 2021 (vs. $100 million a year prior). </li><li>Regulation talks came to the surface: New SEC Chair Gary Gensler and other members of Congress have finally brought crypto to the legislative limelight. </li><li>Venture capital boom: Venture capital that went towards blockchain and crypto-related companies increased almost 7x year over year, totaling $23.1 billion.</li></ul>Where this could take us in 2022 Previous trends aren’t always indicative of future events, but they certainly wield influence on them and will weigh heavily on the decisions made in the coming years. So, when we look back on crypto in 2021, we undoubtedly see a lot of progress combined with a lot of adversity too.&nbsp;We might not see the price of major coins take off uninhibited this year, but we can be certain that this market is&nbsp;growing and here to stay.&nbsp;Be on the lookout for how web3, metaverse, and the various budding blockchain use-cases shape up this year.&nbsp;🖼️ Need an introductory overview of crypto basics? Here's a lesson on the topic:

Bitcoin was created back in 2009, but it seems it didn’t formally introduce itself to the world until its initial breakout in late 2017. After that initial pump, $BTC fell off drastically, taking the entire crypto crew out of the spotlight with it for a while.   After a long three years, crypto was unofficially "back” in late 2020. Bitcoin broke out of an almost 3-year slump, pulling a 3x return in a matter of months. It then climbed to an all-time high of $61K in March, holding ground in the $50Ks through May. And Ethereum and other altcoins went along for the rollercoaster ride. Crypto’s 2021 price recap  After reaching peak euphoria on multiple occasions through May 2021, crypto again faced headwinds as leaders $BTC and $ETH dropped about 50% each through the summer doldrums, caused primarily by further crackdowns on the industry in China.  But markets subsequently rebounded buoyantly before dipping again and then climbing back up. Chart patterns of other noteworthy projects like Cardano, Polygon, Solana, Polkadot, etc. all mirrored the market cap leaders.  Based on price action alone, fans of the emerging asset class will argue that regardless of the volatility, the upside is huge and that we're simply on the ground floor. But despite that, there's no doubt a lot of positive progress was made in 2021.Some noteworthy events from 2021 Where this could take us in 2022  Previous trends aren’t always indicative of future events, but they certainly wield influence on them and will weigh heavily on the decisions made in the coming years. So, when we look back on crypto in 2021, we undoubtedly see a lot of progress combined with a lot of adversity too. We might not see the price of major coins take off uninhibited this year, but we can be certain that this market is growing and here to stay. Be on the lookout for how web3, metaverse, and the various budding blockchain use-cases shape up this year. 🖼️ Need an introductory overview of crypto basics? Here's a lesson on the topic:

What happened in crypto last year? 

CRYPTOCURRENCIES

Wells Fargo and Barclays Global Investors introduced the first target-date fund back in 1994, making them a spry 28 years old, and relatively young in the financial world. They were designed mostly with the “do it for me” type retirement investor in mind, aiming to meet the needs of busy professionals without much time to invest on their own. This of course came at a time when self-directed investing was nowhere near as popular as it is today and far from accessible as it is now either. While target-date funds do maintain their appeal, we’re also beginning to learn more about their shortcomings that date back to their origins.The path of a target-date fund Target date funds are tailored to an investor's anticipated retirement year, and so they're also tethered to your age. They start out with a higher allocation toward equities, usually about 90% prior to age 40. After this, they meander down toward 50% as you near retirement age, ultimately dropping as low as 20-30% equity if the fund is held through retirement.&nbsp;That sounds pretty logical on the surface—a fund that’s designed to optimize its allocations based on my age? Perfect, right? Yes, they’re certainly better than nothing, and perhaps even perfect for someone who really wants a hands-off approach to managing their nest egg, but this so-called “glide path” has some inherent biases, and it seems to be falling short based on some new data.How target-date funds might fall short Recent <a href="https://www.nber.org/papers/w29559" target="_blank">research</a> from the National Bureau of Economic Research suggests these funds might be overly conservative, which is something that could cost passive investors a lot of money, maybe even a comma or two.Researchers turned to a budding branch of artificial intelligence (AI), often referred to as deep learning, to mint this data. Simply put, the&nbsp;AI was put through what they dubbed “the game of life” to account for the “risky economic environment in which people earn, save and invest over their lives.” Its goal was to solve the optimal allocation to equities over time. The outcome? After running this simulation countless times, the result was an AI-crafted glide path that never falls below a 60% equity allocation at any point along the lifetime of the account holder.<img src="https://finny.s3.amazonaws.com/images/fd7750e0-349c-4262-a72c-cc88e3256d90.jpg" style="width: 383px; height: 213px;">Source: <a href="https://www.wsj.com/articles/why-target-date-funds-might-be-inappropriate-for-most-investors-11641500579" target="_blank">WSJ</a>Viewing retirement investing through a personal lens&nbsp; A commonly followed proverb of investing is to trust facts over feelings. This is seen in everything from buying the dip, holding through crashes and dollar-cost averaging. The takeaway is to ignore the micro for the sake of the macro.&nbsp; Although these funds undoubtedly use data to generate glide paths, it seems that&nbsp;the algorithms&nbsp;behind existing target-date funds might be a bit emotional, potentially leading investors astray as it&nbsp;tapers out of equities&nbsp;with age.&nbsp; What’s the solution, then? Make your retirement investing more personal. Account for your own age, health, dependents, financial situation, career, risks and retirement goals, and only&nbsp;then decide how to invest, adjusting as things change.&nbsp; You might still come to the conclusion that a target-date fund is perfect for you, and that’s certainly a fine outcome. The larger point here is perhaps that it may also be worth&nbsp;doing some healthy second-guessing before investing.

Wells Fargo and Barclays Global Investors introduced the first target-date fund back in 1994, making them a spry 28 years old, and relatively young in the financial world. They were designed mostly with the “do it for me” type retirement investor in mind, aiming to meet the needs of busy professionals without much time to invest on their own.  This of course came at a time when self-directed investing was nowhere near as popular as it is today and far from accessible as it is now either. While target-date funds do maintain their appeal, we’re also beginning to learn more about their shortcomings that date back to their origins.The path of a target-date fund  Target date funds are tailored to an investor's anticipated retirement year, and so they're also tethered to your age. They start out with a higher allocation toward equities, usually about 90% prior to age 40. After this, they meander down toward 50% as you near retirement age, ultimately dropping as low as 20-30% equity if the fund is held through retirement. That sounds pretty logical on the surface—a fund that’s designed to optimize its allocations based on my age? Perfect, right?  Yes, they’re certainly better than nothing, and perhaps even perfect for someone who really wants a hands-off approach to managing their nest egg, but this so-called “glide path” has some inherent biases, and it seems to be falling short based on some new data.How target-date funds might fall short  Recent research from the National Bureau of Economic Research suggests these funds might be overly conservative, which is something that could cost passive investors a lot of money, maybe even a comma or two.Researchers turned to a budding branch of artificial intelligence (AI), often referred to as deep learning, to mint this data. Simply put, the AI was put through what they dubbed “the game of life” to account for the “risky economic environment in which people earn, save and invest over their lives.” Its goal was to solve the optimal allocation to equities over time. The outcome? After running this simulation countless times, the result was an AI-crafted glide path that never falls below a 60% equity allocation at any point along the lifetime of the account holder.Source: WSJViewing retirement investing through a personal lens   A commonly followed proverb of investing is to trust facts over feelings. This is seen in everything from buying the dip, holding through crashes and dollar-cost averaging. The takeaway is to ignore the micro for the sake of the macro.   Although these funds undoubtedly use data to generate glide paths, it seems that the algorithms behind existing target-date funds might be a bit emotional, potentially leading investors astray as it tapers out of equities with age.   What’s the solution, then? Make your retirement investing more personal. Account for your own age, health, dependents, financial situation, career, risks and retirement goals, and only then decide how to invest, adjusting as things change.   You might still come to the conclusion that a target-date fund is perfect for you, and that’s certainly a fine outcome. The larger point here is perhaps that it may also be worth doing some healthy second-guessing before investing.

Are target-date funds really right for you?

It’s much easier to win a family game of Monopoly when you know the rules, and understand how to use them to your advantage. The game of credit scores is extremely similar, and one best played by those who know the rules and know how to use them. These rules change a little every year though. Whether they’re due to updates made by credit reporting agencies, or perhaps the occasional once-in-a-lifetime pandemic that forces the government to step in and make changes to installment debt like student loans, it’s always best to be prepared.So, here’s a few tips to improve your credit, tailored for 2022. <ul><li> Resume paying student loans: After being paused for over two years, Federal Student loan repayments will, supposedly, once again resume on May 1st, and interest forbearance on February 1st. Although this has been postponed several times now, it’s best to assume this time the dates are for real, because payment history makes up the largest portion of your credit score calculation at 35%. </li><li>Open a new credit card: Credit utilization takes up another sizable piece of your score, and opening up a new card can help reduce that rate by increasing your total available credit. As travel remains a bit controversial, some cards are shifting their offerings to new account holders elsewhere, to areas that might benefit the more practical spender even more.&nbsp; </li><li>Keep old accounts open: A caveat about that last point is that opening a new account will reduce your average age of account, which can hurt your score more if you’re new to credit cards. This is why it’s important to keep old accounts open, even if you no longer need it. The age of that account may be helping your score tremendously. Yeah, it really is just all a big game isn’t it?</li></ul>👀 Need more insights on how to improve your credit score?&nbsp;Earn 10 Dibs (or gold coins) for every correct answer in this lesson,&nbsp;and redeem them for rewards.

It’s much easier to win a family game of Monopoly when you know the rules, and understand how to use them to your advantage. The game of credit scores is extremely similar, and one best played by those who know the rules and know how to use them.  These rules change a little every year though. Whether they’re due to updates made by credit reporting agencies, or perhaps the occasional once-in-a-lifetime pandemic that forces the government to step in and make changes to installment debt like student loans, it’s always best to be prepared.So, here’s a few tips to improve your credit, tailored for 2022. 👀 Need more insights on how to improve your credit score? Earn 10 Dibs (or gold coins) for every correct answer in this lesson, and redeem them for rewards.

A few ways to improve your credit in 2022

MONEY TIPS

You’ve likely seen more than enough advertisements by now for so-called “crypto savings” platforms that allow you to earn exponentially higher interest rates than a traditional bank could ever dream of.&nbsp;With offerings sometimes north of 9% on your deposited&nbsp;crypto, it’s fair to wonder what the catch is if there is any. So, here are a few caveats we should take note of before buying and depositing some crypto into these accounts.<ul><li> Crypto savings aren’t insured: Companies like BlockFi and others aren’t insured by either the FDIC or the SIPC, which means if something were to happen and they become insolvent, there’s no guarantee you’d get your crypto. Crypto exchanges are similar, with the difference being that options like Coinbase and others do insure any cash you hold on the platform.&nbsp; </li><li>Advertised rates don’t always apply: Although almost anything is better than what your bank may offer, it’s worth noting that those lofty double-digit rates only apply to a few things. BlockFi’s highest rates are offered on <a href="https://www.askfinny.com/bites/stablecoins-the-bridge-between-crypto-and-fiat" target="_blank">stablecoins</a> like $USDT, and more popular coins like Bitcoin and Ethereum have different tiers of interest-based on the amount held, ranging from 5% on 0-1.5 Eth to as low as 0.1% if you hold greater than 0.35 BTC.&nbsp; </li><li>Withdrawals: Not all crypto savings accounts impose a lockup period, but instead allow something like one free crypto withdrawal per calendar month. That sounds good, but, if you do happen to exceed this limit, you’ll be hit with a fee unique to the coin you’re withdrawing.</li></ul>

You’ve likely seen more than enough advertisements by now for so-called “crypto savings” platforms that allow you to earn exponentially higher interest rates than a traditional bank could ever dream of. With offerings sometimes north of 9% on your deposited crypto, it’s fair to wonder what the catch is if there is any. So, here are a few caveats we should take note of before buying and depositing some crypto into these accounts.