Many people pay interest to acquire a good. In addition to the value of the house or car, they pay a high price to a financial institution for early access to the money.
If you're already part of this select group, congratulations! Now it's important to have the wisdom to consolidate your assets and a future of financial security.
To help you invest your money correctly, this article offers golden tips for investing your money!
First of all you need to: define your strategy
We can say that investing means giving up resources and the pleasure of spending them now, with the goal of obtaining even greater value in the future. To do this, it's important to be clear about the time frame you're willing to not have the money in hand—that is, giving up immediate liquidity.
Now let's look at the capital you've allocated to build wealth and achieve your medium- and long-term dreams. Set priorities and goals, as this will make it easier to visualize your progress and define the appropriate mechanisms based on your objectives.
Some investors intend to redeem their investments in the short and medium term and tend to be more conservative, sacrificing profitability. There's also the moderate investor profile. They're able to wait a little longer for better returns, but they still have a tendency to take risks.
Be careful with private contracts
Some tax incentives may seem like a great deal. However, the market is concentrated in large banks, which in turn charge high fees, significantly impacting profitability. Therefore, it's crucial to better understand how private pension plans work and the fees they charge.
Furthermore, it's important to know that private pension funds often severely penalize those who need to withdraw their investments in the short term. Before opting for one, it's always worth doing comparative calculations by evaluating other investment options available on the market.
Try investing your money in insurance
Those who want to build up reserves must also be careful to preserve their assets. Unforeseen events are a part of life. Imagine this: you invested in an illiquid investment with a minimum vesting period of 12 months. But before that deadline, there was a serious fire in your laundry room.
Choose where to invest your money
There are countless types of financial investments available in the financial market and elsewhere. We'll list just a few. Here on the blog, you'll find detailed explanations of virtually every type available in the financial market.
Stock exchange
Through the stock exchange, investors can acquire shares in a publicly traded company. This occurs through so-called stocks, whose pricing follows the laws of supply and demand. The value of shares is influenced by factors such as revenue, profitability, and market expectations.
It is also possible to invest jointly through so-called Investment Funds, which are managed by a financial institution upon payment of an administrative fee.
In developed countries, where interest rates are low, stock market investment is widespread. In Brazil, this culture is gaining momentum with the appreciation of several companies and the influx of large numbers of investors in recent years.
Beware of Rental Properties
Investing in real estate is a long-standing practice. What's often heard is that rent should be approximately 0.5% of the property's value, but this isn't a rule to be taken literally. For example, a coastal apartment that may remain vacant for long periods of the year.
Therefore, it's reasonable that during peak tourist seasons, the price charged will also be higher. Or, perhaps a location where a factory has just opened that will attract many workers, or a university that will attract many students. In short: carefully evaluate the context.
Diversify your investments
The dynamics of our needs and desires must be considered when building an investment portfolio. A good method is to divide it into timeframes. Set aside part of your capital in liquid investments to meet more immediate needs.
But remember: every financial investment starts with organizing a budget. Balancing your income and expenses, enabling you to accumulate a surplus, is the most important step.
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