We’re all too aware that investing is all the rage, but… do we really know what it’s all about? Don’t worry, in this article, we’ll tell you from the ground up what an investment is and all its benefits. We’ll also tell you about its risks and everything you need to know before taking the plunge.
What are we talking about when we talk about financial investment?
You may have an idea, but it never hurts to review that an investment involves allocating money we’ve saved in order to earn a profit over a given period.
Investing, unlike saving, always involves risk. That’s why it’s very important to seek expert advice and keep these tips in mind:
- Anyone can invest.
- It is not necessary to have a large amount of money.
- It is recommended that you have no debts when you start investing.
- It is an action that can directly impact your assets.
- Investing does not guarantee a return.
- By doing so, you assume the possibility of losing some or all of your savings.
- Keep in mind what percentage of your income you are going to allocate and how long you want to invest.
- And one last piece of advice! Develop an investment strategy based on your investor profile.
So why is it worth investing?
- It allows you to preserve your savings against inflation.
- You’re making your money grow! Remember that money saved loses value over time.
- In times of emergency, the return on investment serves as a backup.
- To achieve your financial goals.
- And best of all: to plan a retirement plan with the profits generated by the investment.
Now that you know the advantages and disadvantages, the next step is to understand your investor profile. Why is this so important? Because it will allow you to choose the right financial products that will help you meet your needs and goals.
Investor profile, which one do you identify with?
- Conservative profile: Does not take major risks, prioritizing above all the immediate availability of investments, thus maintaining the value of its capital and avoiding major losses.
The goal is always the same: to grow the accumulated money. Today, the market offers mutual funds. What’s this all about? Let’s put it this way: It’s a common pot of money made up of the contributions of many people. The best part? You can use your money or withdraw it whenever you want. Plus, these funds are managed by financial specialists, which can give you greater peace of mind when you’re just getting started.
Do you dare or not?
Now that you have all this information, the decision is in your hands. Keep in mind that a good strategy and a lot of patience will be essential on this journey. Rome wasn’t built in a day, and you probably won’t see profits overnight. Still, it’s worth a try because in this context of inflation and devaluation of the local currency, keeping your savings sitting still just isn’t a good idea!
