Crypto Academy Week 7 - Homework for [@stream4u] // Management

Hello everyone, I am glad to be here alive , I enjoyed this weeks lesson from crypto prof @stream4u , and I’m assignment I will be using simple language and explaining this in beginner level .

MONEY MANAGEMENT

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Money is just a paper they called currency that can be used to buy goods and services, but this paper we are talking about here seems to be a destiny changer if it is well treated and sowed well .
Today in Africa most of the youth in the university’s end up broke and jobless after they graduate, but wait what happened to the huge money parents gave us as pockets and daily upkeep where they not enough to save some to be use to start something, I believe we had it all and we didn’t manage well for the future .
Money management is a skip every individual need to acquire and it improves financial situations it involves saving , budgeting and investment .
Basically I will define money management as handling well your finances by planning how to spend your incomes .
In mud case I follow the following steps in managing my money :

1. Budgeting : in life one must analyze his/her monthly incomes and plan on where to use them , and in my case I involve self discipline here , i budget my expenditures base on percentage on shelter, clothing, internet and savings .
   A budget becomes useless if you do not respect and follow it .
   One things that is a must to add into budget as a start up is to do long term saving investment with any bank or stable coin , here in Africa there is no legacy left for a child to start up a business with so saving small monies for a period of time will give you the capital you want with more interest on it .

2. INVESTMENT : Once your savings hit your target you need to let the money work for you , so it high time you invest in yourself I mean get some knowledge about what ever business you want to run , in my case is crypto trading so I make sure I acquire more knowledge in that , after which I apply the knowledge by investing as well and in doing this I make sure I consult people as well to prevent great loses , one thing I have learnt about this big investors is that they do not push all their start up capitals into one assets because it pain when you loose everything at once , so I will carefully study some few assets to begin with .

3. RISK management: in like everything is risk so consider the risk involved in investment and suite yourself where you think you can Handle , take the risk base on your analysis on a particular asset and push in your money .every trader need to know his kind either a short trader or long term investor in my case I love huge profit so I considered short trading with carefull steps because it is the riskiest.

4. To be good with money management you have to practice, learn how to plan ahead and save until you can afford what ever you want, when you do this often you get use to it

PORTFOLIO MANAGEMENT

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Portfolio is a combination of different assets of investment such as Bonds, shares, crypto tokens and stocks , managing this investments to take good profits is called portfolio management.

Portfolio management can be done in two ways and these are :

• Active Portfolio Management: this is where you invest in large assets that can make you profit in short period after you sell your stand.

• Passive Portfolio Management : this involves investment in index assets that will give you small profits for a longer time .

In portfolio management I consider my investment goals Before choosing an assets , once I trust my analysis and the capital return to invest in other business I always fall under active portfolio management.
I have been observing some crypto tokens such as POLKADOT and Unsiswap for a month now a I will put them in my portfolio early next month , one thing that I always consider is the liquidity of the token and a how good it can let me appreciate my returns on the capital I invested.
in life an investor we learn how to bite small small in other to get loaf in the mouth , so we don’t invest all our capital in one asset but study different assets and invest in them wisely and while they are in your portfolio you either hire a portfolio manager or you monitor them yourself to know when you are quitting with the profit or when to take down the lost .
Leaning how to manage your money and where to invest them is the best foundation of a good trade .