LETTERS IN FINANCE

I’ve realized I’m very emotional when it comes to money, and in 2025, I want to work on improving the bad traits that come along with it. That’s why my first read for 2025 will be The Psychology of Money by Morgan Housel.   Why am I sharing this? Because I want you to think about one area where you might be struggling with your finances. Is there something you need to get right?   Invest in a book—just one is enough—that can help you understand or navigate that part of your financial life. When setting financial goals, remember: that you don’t need to overwhelm yourself with too many. Focus on one transformative goal.  For example, if you’ve struggled with sticking to a financial plan or budget because of a lack of discipline, make financial discipline your primary goal. To support that goal, find a book that offers practical guidance, like The Total Money Makeover by Dave Ramsey, which lays out actionable steps to eliminate debt, build an emergency fund, and ...

In 2021, I created a video about Bitcoin. You can watch the video here because my sentiments have remained unchanged. Recently, Bitcoin has been setting new records, and as of now, it's trading at $86,723 (00:24 CAT, 12/11/2024).( Google Finance ) A LinkedIn post I saw yesterday mentioned that 14 years ago, Bitcoin was worth only $0.50. This made me reflect on how things have evolved. Back then, I was in high school and had never heard of Bitcoin. Even if older people knew about it, the idea of investing in such a risky and complicated asset was likely daunting. In high school, $0.50 was just pocket money for snacks, but who knew that small amount could become so valuable? Today, Bitcoin's worth far exceeds $0.50, showcasing its growth over the years. In this letter, I won't dwell too much on Bitcoin itself. Instead, I urge you to wa...

Money etiquette is an essential conversation because a lack of it can lead to misunderstandings and broken relationships. Growing up, my mother had strict rules about money. She’d give us a stern look if we asked visitors for money or anything they had. These side eyes were more effective than any punishment. I appreciate her lessons about respecting money because they play as a foundation to how l see and respect money. Self-Respect In 2018, I went to town in Zvishavane to withdraw $200. On my way back, some scammers targeted me. They dropped a pile of money with a large figure written on top. A man suggested we split the money since we both saw it. Due to my upbringing, I knew money doesn’t come from nowhere. That lesson saved me from losing my $200. I remember another time in primary school when I saw $10 on the road and didn’t pick it up. Reflecting on these incidents, I’m proud of my restraint. It taught me that nothing is free and the love of mo...

I just have one question for you. Are you guys really broke? So many of you do not know if you are really broke. We often assume we are broke because we can't cater to certain needs we fail to plan for or wants we don't really need. Being broke means you do not have any money, but let's question this assumption after auditing one's lifestyle over a month, two, or three. What have you done in the past 3 months to change your financial state? Many of us are in the same position we were in last year. Nothing has changed throughout the year, and we're still singing the same song: "I am broke!" Have you ever sat down to see how much you need to sustain your lifestyle? Consider these basic expenses one needs to cover every single month: Rent Food Water Electricity Transport If you are already able ...

The Bigger Picture – Weekly Timeframe There has been a general downtrend from the highs in July 2024, with a few pullbacks along the way. The current price is near a recent support level around 1049, as marked by the green line at the bottom. The alternating red and green candles show volatility, with some periods of consolidation before price moves lower. On the chart above, I added the MA and RSI indicators: 20-day Moving Average – yellow 50-day Moving Average – grey 200-day Moving Average – dark blue The price is consistently below the 20-period moving average, confirming the ongoing downtrend. The 20-period moving average is acting as a dynamic resistance level. Any price movement towards this line might encounter resistance, making it a possible entry point for short positions in a bearish trend. If the price manage...

I was introduced to synthetic indices back in 2019. I don’t remember exactly who showed them to me, but I vividly recall my first $50 deposit. I blew the account in under 10 minutes on a Volatility 75 Index trade. I of the V75. That initial trade was painful, yet it marked the start of my journey, leading me to put more money in without fully processing what had happened in that first trade. Leading to a huge loss in the markets trading forex. Over time, my focus shifted as I tried to make sense of different volatility indices, eventually finding myself drawn to the Volatility 100 Index (V100). Unlike others, V100 kept pulling me back. In 2020, I joined a btmm mentorship program centered on “boom and crash” indices, but I applied everything I learned to V100. Since then, I’ve seen wins and losses with V100, and I’ve decided to share what I would have wanted to kn...

Good morning, dear reader, Setting financial goals is essential for achieving financial security and independence, especially in a challenging economy like Zimbabwe’s. While managing money can be tough with high inflation and currency instability, having clear goals and a plan can make a significant difference. This blog will explore what financial goals are, examples of achievable goals in Zimbabwe, and tools to help you set and track your progress. Understanding Financial Goals A financial goal is a specific target related to managing or growing your money. It could be something as immediate as building an emergency fund, or as long-term as saving for retirement or purchasing a home. Financial goals are stepping stones that help you manage your finances better, make intentional spending choices, and build wealth over time. Setting Financial Goals in Zimbabwe Setting financial goals in Zimbabwe involves planning around unique e...

Money is one of those topics that always seems to spark mixed emotions. For me, it’s empowering, yet stressful; freeing, yet anxiety-inducing. I feel that my relationship with money is full of potential and excitement as I build toward future goals. However, the weight of life’s financial demands — from basic needs to supporting loved ones — brings a unique stress that only money can seem to alleviate. Personal Finances: Balancing Freedom and Worry Right now, my biggest financial concern is building a strong enough foundation to ensure I’m not caught off-guard by unexpected events. My goal is to have enough saved in an emergency fund to protect against anything that might happen to me, my partner, or even the broader economy. Alongside this, I want to invest thoughtfully to secure a future where financial stress doesn’t feel so ever-present. What I value most ab...

Good morning, dear reader, I trust this message finds you well. As for me, these letters have brought a sense of peace and purpose post-work, becoming a mental journal for my thoughts on finance and everything that revolves around it. My previous letter was a bit technical, purely because I enjoy that aspect of my work. As the year draws to a close, I find myself reflecting on my feelings about money, similar to how many people do during this time. There's always pressure—what have you accomplished, especially financially? Some might even think they were bewitched whenever their money seems to slip through their fingers. While prayer can be a solace, I believe it's also crucial to sit down and meticulously write out all your income and expenses for the year. Questioning some financial decisions is not harmful; it helps you understand what to cut b...

Recently, I completed the 4-hour Standard Bank - Global Markets Trading Job Simulation on Forage . Using 2023 data in the simulation, I will now examine what I learned with current data to solidify the lessons. This write-up doesn’t serve as financial advice but is merely a way for me to cement knowledge and encourage others who have taken the training to continue practicing with fresh data. On the Global Markets Trading desk, equities traders meet at the start of each week to recap key events from the previous week and highlight upcoming ones. These events range from economic to geopolitical, often sparking thought-provoking discussions that equip traders with the knowledge to hold well-informed conversations with clients. Today, on November 3rd, 2024, my first task is to find and summarize articles on events from the past week relevant to Stand...

Good morning, dear reader, I hope this letter finds you well. As we welcome the 1st of November with warm weather, we inch closer to the year's end. One thing I've wanted to accomplish this year is to start my blog, "Letters in Finance." The journey hasn't been smooth. During my unemployment, I dedicated myself to building the blog using Python , but several obstacles kept me from writing. I was fearful—would anyone read my blog? Would people find my writing interesting in this day and age? Today, I've decided to face these fears and challenge myself to write to you every day about the fascinating world of finance. A bit about me: I'm Rutendo, an investment analyst intern. I started a YouTube channel in 2021 but have been inactive for the past two years. My main reason for not creating content is my desire for quality. This same drive for quality applies to the letters I want to write to you. Earlier this year, I started l...