We can use different mindsets for different conditions
There are a number of personality types. One type is the transactional individual. A highly transactional person seeks mostly transactional relationships and interactions. And they seek out “the process” because they like to understand a system or a network and leverage it. Like many things, this is a spectrum. Some people are somewhat transactional and some are purely transactional. A transactional personality leads to a transactional mindset. Typically, a transactional mindset means you are looking for something in return. This for that.
There are pros and cons to transactional mentalities and relationships. Perhaps you are not very transactional, but you have a transactional relationship with someone. For instance, “When Mike and I get together, we drink a coffee and talk about sports.” It’s a true friendship, but it’s transactional. So just because an individual’s personality, or a particular relationship, is a this-for-that one doesn’t make it good or bad. It is what it is.
But if you were in a sales position, you would be wise to add transactional skills.
Beware though: If you are not a transactional person naturally, then there is a certain amount of friction that occurs when you act transactionally. Decide if that’s okay for you.
You’re almost certainly adding skills and participating in the workplace in ways that create some friction for you already. When there’s too much friction though, you want to quit your job or change your field. But having a transactional skill set can be valuable when under the right conditions. Most times people think of personalities as set, and that may be correct. But you can certainly add skills that transactional people naturally have.
So what’s “The Investor Mindset” then?
The Investor Mindset, briefly, is what investor-types use. You may already know the people in your life that think and act like investors naturally. Some of their characteristics are: analytical, delayed gratification and thinking long, re-investing, builders or curators, value-measurers, value-adders.
These are pretty positive characteristics. Again, like many things, it is a spectrum. If you are so analytical that you cannot make a decision, that is bad. You don’t want “paralysis by analysis,” as they say.
Another thing to watch out for is delaying gratification too much. Someone who overdoes this may become unhappy. Perhaps it is useful when managing money, but it isn’t great if you overuse it in your life. What if you never eat a cookie? It sounds funny when talking about cookies, but be careful about persistently delaying gratification. Discipline is great, but find appropriate treats for yourself too along your journey.
So whether the previously described investor characteristics come naturally to you or not, you want to treat it like a skill, and use it when appropriate.
At Arena Investor we use “The Investor Mindset” to help us perform our jobs well serving financial planning and investment management clients, as well as providing financial education.
Simply put, The Investor Mindset treats almost everything like a portfolio and only things that make that portfolio better should go in it. At Arena Investor this can mean: stocks, crypto, ETFs, mutual funds, bonds, real estate and so on.
But The Investor Mindset can be used at large too – well beyond finances. For instance, it can also apply to nutrition, fitness, friendship, your subscription TV “watch later” list, and on and on. Investor-types don’t naturally take-on things that don’t make their portfolio better. At a minimum, they try to decide if it is on-par with what they already like, or better. If it is sub-par then good luck talking them into doing it.
A Lot of People Can Relate to This Already
Believe it or not, a lot of people can relate to this as sports fans. Good luck convincing a Cleveland Browns fan that the Arizona Cardinals vs the Seattle Seahawks fits their “entertainment portfolio.” They may watch because they like football at large, but they aren’t truly invested in that game. It isn’t as good or better than their AFC North matchups against the Pittsburgh Steelers, Cincinnati Bengals, or Baltimore Ravens. They believe those matchups do make their entertainment portfolio better though.
The suggestion is this:Add “The Investor Mindset” to your life. You don’t have to re-create yourself and try to be someone you’re not though. Simply start to see the world with Investor-tinted glass a bit more each day.
It can help you get started as an investor too
Perhaps you’ve wanted to invest for a long time now. But you are afraid to get started. With The Investor Mindset realize that an empty portfolio would be made better with one quality company in it.
Now you’ve started.
And you’ve used The Investor Mindset – you upgraded your portfolio!
Do that a second time, and continue until you are diversified.
Remember: You only want to put stocks into your portfolio that make it better. So say you want to build a portfolio of 10 stocks. Well at the beginning you are really just laying a foundation. Don’t lay a crappy foundation.
If you wouldn’t leave the portfolio alone for 5 years and be happy with your picks with minimal intervention (say, less than once per quarter), then do not add that stock.
But remember, while we say stock we really mean company. You should be happy with the company you pick for 5+ years. You should believe in it, the work it does, the role it plays, and be able to sleep at night. That way, you will get through the ups and downs that The Business Cycle (here) intrinsically experiences.
Be sure to think long when you build the foundation. You wouldn’t swap out parts of your foundation every day, week, or month would you? Perhaps over time you make an upgrade though because it makes sense.
“The Investor Mindset” is large and encompassing. So is a transactional mindset. But you can use the skills that naturally come with those mindsets to your advantage. And you don’t have to become a different person to do it. Pick something in your life to try out The Investor Mindset on. At the start of the new year health and wealth are at the top of many people’s minds already. Maybe choose one of those. Nutrition is a great way to add it to your life: Does this thing I’m about to eat or drink make my body-portfolio better or worse?
Note: There’s a key difference with nutrition though in that a splurge for an hour on a Friday night isn’t as long-lasting as a financial splurge or investing splurge – that money is spent indefinitely.
Built for The One in the Arena
Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.
You’re the Hero.
We’re the Guide.
Understanding Liquid Term
Understanding Liquid Term
When managing personal finances, especially for future goals and emergencies, understanding the concept of "Liquid Term" becomes crucial. This term, though less commonly discussed outside professional financial circles, provides essential insights into the liquidity of your assets and how quickly you can convert them into cash without significant loss. Here’s a detailed explanation of Liquid Term, simplified for those new to finances, and how an Arena Investor Advisor can guide you in optimizing this aspect of your financial planning.
What is Liquid Term?
Liquid Term refers to the measure of how long you can sustain your current lifestyle or cover expenses using only your liquid assets without additional income.
In simpler terms, it's an estimate of how many months or years you can fund your living expenses using readily available resources if no more money comes in. This measure is crucial during periods of financial adjustment, such as a job change, or unexpected situations like a medical emergency.
Importance of Understanding Liquid Term
1. Emergency Preparedness: Knowing your Liquid Term helps gauge how well-prepared you are for unexpected events. It highlights the importance of having accessible funds that can be quickly mobilized in emergencies.
2. Financial Flexibility: A healthy Liquid Term implies more financial flexibility. It allows you to make choices such as changing careers or moving without the immediate pressure of financial constraints.
3. Investment Decisions: Understanding your Liquid Term can influence your investment strategies. If you have a short Liquid Term, you might prioritize increasing it by investing in more liquid assets to enhance your financial security.
Calculating Liquid Term
To calculate your Liquid Term, you divide your liquid assets by your monthly expenses. Liquid assets include things like cash in checking or savings accounts, stocks, and other marketable securities that can be quickly converted to cash. For example, if you have $30,000 in liquid assets and your monthly expenses are $3,000, your Liquid Term is 10 months.
How an Arena Investor Advisor Can Help
1. Assessment and Planning: An Arena Investor Advisor starts by assessing your current financial situation, including calculating your Liquid Term. They can help you understand what your number means and plan steps to improve it if necessary.
2. Customizing Investment Strategies: Depending on your needs and goals, your advisor might suggest ways to adjust your investment portfolio to improve liquidity without sacrificing long-term growth. This could involve diversifying investments or reallocating assets to include more liquid options.
3. Budgeting and Expense Management: Advisors can work with you to optimize your budget, potentially reducing monthly expenses and extending your Liquid Term. They can offer insights into cost-saving without compromising lifestyle quality too much.
4. Continuous Monitoring and Adjustment: Financial situations evolve, so continuous monitoring is vital. Your Arena Investor Advisor will help update your financial plan based on changes in your life and goals, ensuring that your Liquid Term remains adequate.
5. Educational Support: Understanding financial concepts can be overwhelming. Arena Investor Advisors are dedicated to educating you about key financial indicators like Liquid Term. They ensure you’re equipped with the knowledge to make informed decisions.
6. Utilizing Technology: Tools from industry-leading app and platforms you Arena Investor Advisor's ability to present visual and easy-to-understand representations of your financial data, including Liquid Term assessments. This helps you see and understand your financial health in an easy way. It also helps in making informed, data-driven decisions.
All In All
Liquid Term is a vital aspect of financial health, for both new investors learning to navigate the complexities of personal finance and for established investors too. Understanding and managing this term can significantly impact your financial flexibility and security. Working with an Arena Investor Advisor provides you with expert guidance and tools to optimize your Liquid Term effectively. Together, we can build a simple to understand and use financial plan that not only prepares you for the unexpected but also helps achieve your long-term financial goals.
By approaching your financial planning with a clear understanding of Liquid Term, supported by professional advice and advanced financial tools, you can ensure greater stability and confidence in managing your finances.
Built for The One in the Arena
Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.
You’re the Hero.
We’re the Guide.
Announcement: Arena Investor Partners with Stripe
We are excited to announce our latest integration with Stripe, a global leader in payment processing, to further enhance the security, reliability, and ease of transactions on ArenaInvestor.com. This partnership is a key addition to our tech stack, ensuring that every transaction our clients make is handled with the highest standards of security and efficiency.
Why Stripe?
Stripe is renowned for its industry-leading payment solutions, offering secure and seamless transaction processing for businesses around the world. With a reputation for innovation and reliability, Stripe is trusted by millions of companies to handle their financial transactions securely and efficiently. By integrating Stripe into Arena Investor’s platform, we are providing our clients with a trusted and modern payment experience that aligns perfectly with our commitment to delivering cutting-edge financial services.
Secure and Seamless Transactions
The integration of Stripe into Arena Investor’s tech-stack means that all transactions you make—whether purchasing Financial Planning services, Financial Health Monitoring & Alerts services, Portfolio Checkup services, or receiving any necessary refunds—are processed with the utmost security. Stripe’s advanced fraud prevention tools, encryption protocols, and secure payment methods ensure that your financial information is always protected. This partnership allows us to offer you a seamless, hassle-free experience when managing your investments or making payments through our platform.
Trusted by Millions, Now at Arena Investor
Stripe’s technology is trusted by some of the largest companies in the world, and we are proud to bring that same level of trust to our clients at Arena Investor. Whether you’re a new client or a long-time client, you can now enjoy the peace of mind that comes with using a secure, globally recognized payment processor. The buying experience on ArenaInvestor.com is now more streamlined than ever, making it easier for you to focus on what truly matters—your financial growth and success.
A Modern Advisory Experience
At Arena Investor, we believe that a modern advisory should be built on a foundation of technology that people know, love, and trust. The integration of Stripe into our platform is a reflection of this belief. We are committed to using the best tools available to create an experience that is efficient and secure. With Stripe, we are not only enhancing the quality of our services but also ensuring that our clients have access to the most reliable and modern financial tools available.
Looking Ahead
We are thrilled about the benefits this partnership with Stripe will bring to our clients and are excited to continue innovating and improving the services we offer. As always, our goal is to provide you with the best possible experience, and we believe that this integration is a significant step in that direction.
Thank you for trusting Arena Investor with your financial needs. If you have any questions about how Stripe will enhance your experience, please don’t hesitate to reach out to us.
Truly,
The Arena Investor Team
Built for The One in the Arena
Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.
You’re the Hero.
We’re the Guide.
Understanding Financial Health Monitoring and Alerts
In today’s rapidly changing financial landscape, keeping a close eye on your finances is more important than ever. Managing your financial health starts by knowing your financial health. A doctor takes a patient’s vital signs, no? It’s time people had an affordable way to know their financial vital signs.
This is where Financial Health Monitoring & Alerts come into play, and Arena Investor, in partnership with the innovative Elements app, is here to provide a comprehensive solution, so you can learn, understand, and improve your financial health – along a journey you can actually enjoy!
What is Financial Health Monitoring & Alerts?
Financial Health Monitoring & Alerts is a service provided by Arena Investor that tracks various aspects of your financial life, from spending and savings to investment and debt levels. It gives you accurate insights into the most important financial ratios and key factors that make up one’s financial health.
With the integration of the Elements app into Arena Investor’s platform, we’re taking this service to the next level. The Elements app is designed to give you a structured, visual approach to understanding your financial picture. It breaks down your financial data into key components—such as income, assets, liabilities, and cash flow—providing you with a clear and comprehensive view of your financial health.
So what is Alerts?
With Alerts you get notifications each month when one or more of your financial health vital signs become excellent or concerning. No more guessing how you’re doing. No more wishing you had a teammate monitoring your progress and alerting you to something that needs your attention. Now, you have a vigilant teammate ensuring you stay the course on a healthy financial journey.
Why Financial Health Monitoring is Essential
In the modern financial environment, it’s easy to lose track of where your money is going. Financial Health Monitoring & Alerts is crucial because it allows you to stay on top of your finances in a proactive manner. Instead of reacting to financial issues after they arise, you can address them before they become significant problems.
The Role of Alerts in Financial Health Management
Alerts are the cornerstone of effective Financial Health Monitoring. They act as a financial guardian, constantly scanning your accounts and transactions to identify any issues that may require your attention.
The Elements app enhances this by categorizing your financial life into easily understandable “elements” and providing alerts when certain thresholds are crossed. Whether it’s a budget overspend, a savings shortfall, under-investing in tax-advantaged accounts (and therefore not reducing your tax bill or optimizing your retirement) an Arena Investor representative will notify you, so you aren't the last one to know your financial health is off-track.
Elements helps you stay on top of your financial game.
Some common types of alerts include:
- Budget Alerts: Notifications when your spending exceeds set limits.
- Savings Alerts: Reminders when you’re behind on savings rates or celebrations when you hit a milestone.
- Investment Alerts: Warnings when your equity rate is too low.
- Debt Alerts: Notifications when debt rate becomes too high or you pay-off debt and can celebrate the accomplishment.
- Insurance Alerts: Get alerted if your insurance rate is too low and you may be vulnerable, or if it is too high and you’re overspending for the coverage.
- Liquidity Alerts: Notifications if you have too little cash, or cash-equivalent assets
- Total Term Alerts: Know how many years you can live in retirement based on your current financial situation!
Benefits of Integrating with the Elements App
1. Proactive Financial Management: By continuously monitoring your finances and alerting you to potential issues, Arena Investor allows you to manage your money proactively. You’re empowered to make adjustments before small issues become major setbacks.
2. Visual Financial Planning: Elements breaks down complex financial information into visually engaging and easy-to-understand components, making it simpler to see where you stand financially and what steps you need to take to improve your situation.
3. Personalized Insights: With the combined power of Arena Investor’s Financial Health Monitoring & Alerts and the Elements app, you receive insights tailored to your specific financial situation. Whether you’re saving for a home, planning for retirement, or managing a complex investment portfolio, the platform provides guidance that aligns with your goals.
4. Stress Reduction: Finances can be a major source of stress, especially when surprises arise. With Financial Health Monitoring & Alerts, supported by Elements, you gain peace of mind knowing you’re always informed and prepared.
5. Improved Financial Discipline: Alerts from Arena Investor help you stay disciplined in your financial habits, whether it’s sticking to a budget, contributing to savings, or managing debt.
Who Should Use Financial Health Monitoring & Alerts?
Financial Health Monitoring & Alerts, especially when enhanced by the Elements app, is beneficial for anyone looking to take control of their financial future. It’s particularly valuable for those busy individuals who know they should be doing better with their money but don’t have the time, or simply want better work-life balance.
Finding Better Balance
In today’s dynamic financial environment, staying informed and proactive about your finances is crucial. Arena Investor’s integration with the Elements app for Financial Health Monitoring & Alerts offers a powerful way to stay on top of your financial health. By providing insights and alerts, this service helps you manage your money more effectively, avoid potential pitfalls, and achieve your financial goals with confidence.
At Arena Investor, we are committed to providing our clients with the best tools and resources to secure their financial futures. With the integration of the Elements app into our tech stack, we’re offering a modern, comprehensive approach to Financial Health Monitoring & Alerts. Whether you’re looking to save for a major life event, optimize your investment strategy, or simply gain a clearer understanding of your financial situation, Arena Investor, with Elements, is here to help you every step of the way.
Built for The One in the Arena
Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.
You’re the Hero.
We’re the Guide.
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