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Being Financially Literate: What Does it Mean for Play-to-Earn Gamers

3 easy steps to get started in building your financial health while playing and earning from NFT games.

Imagine this: You won this week's tourney. You get your earnings. What do you do next – let it sit there? After you earn, it's still important to find ways to save and make more out of your money and your crypto earnings.

It's one thing to get the money. It's an entirely different ball game to manage your fiat and crypto earnings over a longer period of time, and make the needed adjustments to live within your means. While that seems like a daunting task, you definitely don't need to do it alone.

Here are three (3) easy steps you can follow to improve your financial footprint as you play and earn from NFT games.

  1. Apply for an online bank account
    This is the first step towards better management and control of all your earnings. Having a bank account means you have access to your peso both physically, wherever there is a bank branch or ATM, or digitally, through your mobile app.

    The security of your money is also guaranteed once you open a bank account. It keeps your money safe from theft and fires and more importantly, it is insured for up to P 500,000.00 by the Philippine Deposit Insurance Corporation (PDIC).

    What does this mean for your crypto earnings, then? It's simple. This just means you can better compartmentalize and save your extra fiat on your bank account and have access to it online anytime you need it. Your crypto can remain in your respective wallet, while your bank account can serve as a means to store your extra fiat savings for immediate needs.

    The UnionDigital Bank app can be a stepping stone for a full-fledged bank account. Here, you can save and spend on a larger scale – all while watching your money grow. With an account readily available on your smartphone, you have access to more financial services and exclusive perks.

  2. Increase bank transactions
    Most banks can help you access credit cards or loans for big purchases like a house or car. But before they approve anyone for a loan/credit, banks need to review a person's financial footprint to decide if they are capable of repaying.

    A person's financial footprint gives banks a glance at how responsibly a person uses their money and includes the history of their accounts, savings, expenses, and income as well as previous credit/loan activity. A healthy footprint usually indicates someone who is trustworthy with money, which looks good to banks. Therefore, a good financial footprint makes it easier to get approved for new loans or new lines of credit, since someone with a good footprint is more likely to repay. This includes which credit cards you can qualify for, or whether you qualify at all, and can even affect your ability to rent things like a car or apartment.

    Maximizing your bank account is an important step in creating a healthy financial footprint, which leads to more and better opportunities. In order to do that, use your account often and make the most of banking features you have available. Someone who makes frequent payments and deposits into their account, for example, has a much healthier and clear financial footprint than someone who has no activity.

    The UnionDigital Bank app offers a range of money transfer functions – what you do with it will be proof that you can handle bigger finances. Your UnionDigital Bank app keeps a record of your ability to make transactions. This increases your financial footprint which lets not only UnionDigital, but also other banks and institutions know what products you should qualify for.

  3. Broaden your horizon and start investing
    Investing is a way to earn passive income by having your money work for you. When you put money into a good investment, that money grows over time without any additional work required. If you have extra funds lying around, either sitting in a savings account or a crypto wallet, you are missing an opportunity to earn passive income by investing those funds.

    While investing can be intimidating for newbies, learning how to do it right is very powerful for building wealth. It is never too early to start learning. The first step is to educate yourself on the available investments for you to grow and make the most out of your money. Is it stocks? Bonds? Mutual Funds? Do your research and see what fits you and your goals best.

    The next step is to decide how much you're willing to invest. Especially when you are new to an investment, remember to only invest amounts that you are willing to lose. Expect to make mistakes, and you will find much more success in the long run.

    The third step is to pick an investment strategy and be consistent. Are you looking at short-term goals or long-term goals? Are you up for high-risk investments or low-risk investments? Whatever strategy you decide to use, remember to stay consistent. Frequently switching strategies will most likely lead to mixed results and losing money.

    Bottomline is, before signing up for any kind of investment, ensure that you do proper due diligence and know what you're getting into. It may seem overwhelming at the beginning but the sooner you get started, the sooner you can start making your money work for you.

Published April 25, 2022