PRIME |Passive Responsible Investing MEthod

Talking About Investing, ETF’s, Money, Books, Mindset.

Thank you for visiting my private blog on financial education and its discussion.

What can you expect here, especially with this fun definition of ‚PRIME‘ ?

In short, thoughts and ideas about financial investing – optimally in a sense where rationality is responsible for any decision – not emotions.

That’s why I focus on providing rational, evidence-based advice for creating the basics for your personal financial plan that aligns with your lifestyle.

For starters of any age, investing, or coming up with a financial plan at all, is very likely overwhelming. Especially if you do the work all by yourself and have no idea where to start.

So I cover essential topics (such as determining financial goals, considering the time horizon for investments), and upgrade your psychological skills and knowledge around money and finances. We will explore why it is crucial to understand the psychology behind personal finances and how to apply this knowledge in your daily life.

Whether you’re just starting out or looking to refine your strategy, this blog is hopefully a valuable resource for anyone seeking to improve their financial literacy.

Understanding the Psychological Aspect of Financial Education

With the rise of the gig economy and fast-paced lives, financial education has become more important than ever. The ability to make sound financial decisions does not just involve understanding numbers and concepts; it also involves understanding the psychological aspect of money.
In fact, I personally think that understanding, applying, and eventually mastering the psychological aspect of money is even more important than understanding the (often complicated) technical side of finances or the complexitiy of the economy. You don’t need to know everything. A solid and good „relationship“ with money as the most important foundation is enough.
From there, however, everything is possible.

When setting up this blog in 2021, the vast majority of actively managed funds did not perform better than the passive manageable ETF (Exchange Traded Funds that just buys the whole index). This was also true for 2021: ETFs had their all-time highs.

Whats left of that statement in 2022/2023?

ETF’s still perform better than most active managed mutual funds. But they do not have their all-time highs again. Buy-and-hold is in a crisis.

And it is not a psychological safety-net anymore where you could lean back and let the market work for you.

Still though, out of respect for this cool product and because it is the easiest (not necessarily the best) form of investment, I have named this blog PRIME investing.

PRIME (Latin: PRIM/PRIMA [HORA]) = The First [Hour] (Of The Day)

So, for over a decade now, ETFs have been a game-changer for the average person looking to invest their money without competing with the big dogs on Wall Street. After all, why bother trying to beat the market when you can just buy the market and let the economy do the heavy lifting for you?

There is a saying in sport that it doesn’t matter who starts first, but who arrives first.

For passive investing, however, this is not true. Starting early (= Time) is PRIME.

Let’s start from here.

Many people want to be rich, but who
really wants to become it?