New Year, the perfect time to start or improve a financial plan!
That’s a new year, and you’ll see many articles out on the media about the best potential investments to make you richer in 2022. As long as you’re interested in financial issues, you’ll be harassed by service and content providers for the next months, too. It’s a lot of information to deal with, isn’t it?
Even if they meet your preferences, it might become confusing and even take too much of your time. Furthermore, you also need to filter and analyze which services are reliable, since threats and blows are also booming in the financial world.
What could be the solution to guide you? Smart project management is the answer. GitScrum is the tool for you to organize your investor routine and align your actions with your goals.
As the best financial experts would teach you: for each one of your goals, there is one appropriate type of investment. And you’ll make your financial plan according to them, fixing short to long-term goals. You can use professional advice from a professional you trust, if you want. Organize your financial plan and add the knowledge you gather to it.
How to build a financial plan with GitScrum?
Kanban Boards are the classical project management feature that allow you to manage project stages, moving tasks into columns.
In GitScrum, you can customize them and rename those columns, building different kinds of projects for specific applications. So, they are perfectly suitable to create a smart agenda for you to monitor and manage your weekly and daily investments.
Gather all in one place with GitScrum, organizing into columns:
- Your key data sources and service subscriptions;
- The modalities you operate or plan to;
- The courses you intend to do;
- Your legal duties and taxes to pay – monthly and yearly statement;
- Guidelines and costs per operations;
- Key assets to monitor.
Tips to build a good plan
Elect a few reliable key data sources (the image above is merely illustrative).
They might be your stockbroker’s representative, and a few more. When receiving a service or asset recommendation, always check the sources you’ve selected to find out what market analysts say. Never buy on impulse and without analyzing and comparing first.
Remember the investments must be aligned with your goals, like said before. Make a list of your goals (things you want to conquer and/or buy):
- Short-term goals: 1 year (1 key asset per goal)
- Mid-term goals: 2-3 years (1 key asset per goal)
- Long-term goals: 5-10 years (1 key asset per goal)
You can create GitScrum Sprints for these goals and integrate them with your financial board plan, if you want.
Choose a few recognized and certified professionals in the market to guide you, personally or virtually.
Since it’s hard to “follow” too many specialists, you can choose your main virtual counselors and check what they think of the main topics eventually. They will give you tips on how to diversify your investment portfolio, and the ideal asset for each situation.
If you are just starting, go slow and look for simpler modalities.
Of course, you are the ruler and are free to make your decisions. The point is you don’t need to start doing everything at a time, you probably shouldn’t. Ask your counselor or certified broker about assets that allow you to invest in a simple way, but catching excellent opportunities. For example, you don’t need to know much about cryptocurrencies, or operate them, to be able to invest in funds based on them.
If your financial plan is for your business – your company, check your country’s legal issues
Make sure the investments will not affect its accountability. If possible, keep separate accounts for daily administrative routine and investments.
Manage your services password in a safe way
Never keep all of them written or recorded together, don’t record bank passwords and choose strong combinations. Also, include checking your true
balance in the custody house(s) from time to time, in your routine.
Modalities – how can you plan to make money?
This means buying assets for long-term investing, to increase your equity and create passive income. It is possible to do this through traditional banks. However, people use stockbrokers because of the variety of products with better return rates. You will have many options of assets to choose, among stocks, futures, (Exchange Trade Funds) ETFs, (Real Estate Investment Trust) REITs, and others. You should stay aware about the changing regulations in your country about taxes and profit rout.
Investors who buy assets in one day and sell them the next day, or days after, are doing Swing Trade. This modality needs training first, as it involves risk management. Many individuals do this, combined with other modalities, or exclusively, with high potential of gain and loss. To operate this modality, it takes knowledge, an account with a stockbroker and, if possible, a professional platform subscription. You can use Kanban Boards to elaborate your trade plan, too.
This modality is similar to the one above, but the transactions are closed on the same day. As a stockbroker client, you will buy or sell an asset, then do the opposite operation. If you manage to close a profitable operation, you will keep this value (just paying the costs and taxes). This is widely known as a high-risk modality. Many people do this exclusively for a living, but the success rate for day traders is estimated to be around only 10% worldwide.
Here is a safe way to make money, which many people still ignore. Besides the option to buy stocks and win money with profits and dividends, you can also rent them. While you do that, both you and your lessee will have advantages and share the incomes. Ask your broker for more details, and consider this in your plan.
Some brokers specializing in cryptocurrencies are offering this service. You can act as a liquidity provider, putting your money on temporarily, and earning profits as cryptocurrencies rise. It’s important to allert that there is also risk involved, since this is not fixed income. You can use GitScrum to create Tasks on your main target products and label them using task type templates, sorting them per return potential and risk.
How can I know what is safe? Are operations over blockchain with cryptocurrencies safe?
You are responsible for your risk management, and there are some principles you must always remember for your safety:
- All variable income assets involve risks, which are proportional to their earning potential;
- You should always check the source of any recommendation and news, and choose reliable sources to look up;
- There are thousands of serious companies offering reliable services, but at the same time there are forgers, too – lean on consolidated brokers;
- In your broker website, all assets are displayed and sorted according to their risk level;
- You must consider balancing your portfolio to reduce the proportion of risky investments;
- Ask for professional advice if you don’t feel confident to start.
Cryptocurrency is decentralized digital money based on blockchain technology. Although Bitcoin (the first one) and Ethereum became the most popular among the public, there are more than 5,000 different cryptocurrencies in the market.
A blockchain is an open, distributed ledger that records transactions in code. It works like a validation book, distributed among numerous computers around the globe. Transactions are recorded in “blocks” that are then linked together on a “chain” of previous cryptocurrency transactions.
In order to prevent fraud, two main validation techniques are used to check each transaction: proof of work or proof of stake. Proof of work relates to solving mathematical problems using computers to verify transactions (“minering”), at high energy and time cost. Proof of stake is what we defined as Staking above, the financial validation.
“Both proof of stake and proof of work rely on consensus mechanisms to verify transactions. This means while each uses individual users to verify transactions, each verified transaction must be checked and approved by the majority of ledger holders. For example, a hacker couldn’t alter the blockchain ledger unless they successfully got at least 51% of the ledgers to match their fraudulent version. The amount of resources necessary to do this makes fraud unlikely.” say the Forbes editors Kate Ashford and John Schmidt.