Understanding Total Term

In personal finance, the term "Burn Rate" may not be as commonly discussed as budgets or savings, but it’s equally crucial. Especially suited for individuals looking to get a grasp on their financial health and spending efficiency, understanding your Burn Rate provides essential insights. This guide, designed for beginners and enhanced with expertise from Arena Investor Advisors, simplifies the concept of Burn Rate and illustrates how it can be a pivotal tool in managing your finances.

What is Burn Rate?

Burn Rate in personal finance measures the ratio of your estimated annual spending (excluding debt payments) to your total annual income. This metric helps you understand what percentage of your income is consumed by regular expenses, helping gauge how efficiently you are using your financial resources. Essentially, it's an indicator of how quickly you’re "burning through" your income on non-debt expenses each year.

Importance of Understanding Your Burn Rate

1. Efficiency in Spending: Knowing your Burn Rate helps identify how much of your income is going towards everyday expenses. A lower Burn Rate means more of your income is either being saved or invested, which is crucial for financial growth and stability.

2. Financial Planning and Budgeting: By understanding your Burn Rate, you can make informed decisions about where adjustments may be needed in your spending habits or income streams to improve financial health.

3  Preparing for the Future: Managing your Burn Rate effectively ensures that you are saving enough to meet future financial goals, whether it's buying a home, investing in education, or planning for retirement.

How to Calculate Burn Rate

To calculate your Burn Rate, subtract any debt payments from your total estimated annual spending, then divide this number by your total annual income. Multiply the result by 100 to get a percentage. For example, if your annual spending (minus debt payments) is $40,000 and your total annual income is $100,000, your Burn Rate is 40%. This means 40% of your income is used for regular expenses, excluding debt repayment.

How an Arena Investor Advisor Can Help

1. Personalized Analysis: An Arena Investor Advisor starts with a detailed assessment of your income and expenditures to calculate your Burn Rate accurately. This analysis serves as the foundation for personalized financial advice.

2. Strategic Budgeting: Depending on your Burn Rate, your Arena Investor Advisor might suggest strategies to optimize it. This could involve advice on reducing unnecessary expenditures, increasing income, or reallocating funds more efficiently between saving, spending, and investing.

3. Regular Updates and Financial Adjustments: Financial situations can evolve, so regular monitoring of your Burn Rate is essential. An Arena Investor Advisor will help keep your financial strategies aligned with changes in your income or spending patterns.

4. Educational Support and Guidance: For newcomers to financial management, comprehending and applying financial metrics like Burn Rate can be daunting. Arena Investor Advisors ensure you understand each element of your financial plan, empowering you with the knowledge to make sound decisions.

5. Technology Integration: Using advanced tools, industry-leading apps and platforms, your Arena Investor Advisor can visualize your financial data for you, so it’s easier to see, understand, and act upon. These tools help clarify how changes in your Burn Rate affect your overall financial health.

All In All

Understanding and managing your Burn Rate is essential for effective financial planning and maintaining economic stability. With the guidance of an Arena Investor Advisor, you can ensure that your spending is efficient, and your savings and investment strategies are on track to meet your financial goals. By monitoring and adjusting your Burn Rate regularly, you can achieve a balanced financial lifestyle that not only meets current needs but also secures your future.

Working with Arena Investor provides you with the expertise and tools necessary to navigate your financial journey with confidence, ensuring that every decision moves you closer to your long-term financial aspirations.

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.

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.

Arena Investor is modern planning and investing built for the busy, hardworking professionals who know their money needs more attention but don't have the time, or simply want better work-life balance

Good morning, Heroes!

Here’s your Morning Market Preview for September 19th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• Initial Jobless Claims reports at 8:30 am, with 230,000 expected, and 230,000 previously.
  
  
• Philadelphia Fed Manufacturing Survey reports at 8:30 am as well, with 2.7 expected, and -7.0 previously
  
  
• At 10:00 am, Existing Home Sales get reported, with 3.88 million expected, and 3.95 million previously

Key Events & Earnings Reports Today

• Cracker Barrel, FactSet, MoneyHero, Endava, and Darden Restaurants all report today.
  
  
• Boeing’s strike continues. The strike began after union members overwhelmingly rejected a proposed contract, leading to a work stoppage that has now extended into its sixth day. The strike began on September 13th.

The Fed

• The Fed made the healthy 50 point cut that many analysts were calling for, which reduces rates, signaling The Fed believes inflation is coming under control and the economy is slowing.

Stocks

Year-to-Date Performance:

• Up Most: Tech leads the pack, up 24.26% this year. Utilities is still the second-best on the year, up 23.03%.
  
  
• Down Most: Important to know, no sectors are negative on the year. The smallest gain has been in Energy, up 4.77% this year. Second-to-last is Materials, up 8.68%.

5 Day Moving Average: 

• Up Most: 95% of Energy Large Cap stocks are now above their 5 day average. Financial is second now with 77% of its Large Caps above their 5 day average.
  
  

• Down Most: Real Estate stocks have had a bad 5 days, and only 29% of Large Caps are above their 5 day average. Next closest is Utilities at 39%. 

Crypto

• Bitcoin: Over the past day, it is up about $62,981, which puts it at a staggering 50.2% gain on the year.
  
  
• Ethereum: It’s been a good day for Ethereum again, and is up to about $2,444, which means a 6.02% gain on the year.
  
  
• Top Gainers Recently: Bitcoin Cash is leading the pack, up a whopping 11.5% on the day. Solana did great too, up 8.2%.
  
  
• Important to note: Crypto markets are always open and prices change constantly.

Bonds

• 2-Year Treasury Yield:  Yields continue to come down, now at 3.586%.
  
  
• 10-Year Treasury Yield: Up a tick to 3.719%, but overall it’s had a decline this year too.
  
  
• The yield curve is no longer inverted, having un-inverted in late August.

Gold

• Price: Gold is up a bit the last day, now about $2,589 per ounce, and up 25.57% on the year.

Real Estate

• 30-Year Fixed Mortgage Rate: Up just a bit, now to 6.15%. The mortgage rate has dropped about 7.8% this year.

Geopolitical Aspects

• Market Sentiment: Positive movement in major global indices following the Fed's decision, with a focus on tech and renewable energy sectors.
  
  
• U.S.-China trade tensions remain a focal point, affecting technology and manufacturing sectors, while the Russia-Ukraine conflict continues to influence energy prices globally.
  
  
• Concerns about China’s slowing economic growth and rising energy prices in Europe are adding to market volatility.

‍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.

P.S.

Some Simple Explanations of Key Concepts to Level Up Your Financial Education

• Interest Rates: Controlled by central banks, these rates affect borrowing costs. Lower rates encourage spending and investment, potentially leading to inflation.
• Stock Sectors: Different industries thrive in different economic climates. Tech might boom during innovation, while energy could slump with green energy shifts.
• Geopolitical Events: Political stability or conflicts sway markets by affecting investor confidence, trade, or resource availability.
• Economic Reports: Data like jobless claims help predict economic health. For instance, rising claims might suggest economic slowdown.
• 1 Basis Point (BPS) equals 0.01%. It’s easier to say “5 bips” than it is to say “zero point zero five percent.”

Each of these elements interacts, creating the dynamic we call 'the market'.

Understanding these aspects of the investing arena can help investors in making informed investment decisions.

You’re the Hero.
    We’re the Guide.