Investment tips
One of the most effective ways to increase wealth is to eradicate unnecessary spending and balance the books by using the Good Money Keeping in a way that can help you build a financially healthier future. To achieve this, it is essential to have valuable investment advice and focus on the goals.
Reaching a financial balance is one of the main human challenges, not only for ensuring the necessary liquidity to meet commitments but also because it promotes a calmer and more comfortable life. The dream of most of those who undertake and plan their future!
For entrepreneurs, it is extremely important to know how to manage your financial resources effectively. Especially if we consider that the business environment fluctuates according to market movements.
This market is increasingly unstable and competitive, a situation that demands an austere behavior focused on a cost economy and a savings policy.
You should keep in mind that unused money, easily accessible and without a specific objective, open up space for you to use it irresponsibly.
As we know that this matter raises many doubts, we have prepared an article with 7 investment tips so that you can inject your money into profitable financial products and, thus, strengthen your assets in the medium and long term.
Why is it so important to diversify investments?
Until a few years ago, investing was a financial measure aimed at people who actually had the conditions to inject large amounts into creating a robust portfolio.
Fortunately, this situation has changed, now allowing the most modest entrepreneurs to access certain financial products by contributing small amounts of money.
In the same way that access to the investment environment has become more flexible, the conditions required to access returns have improved.
There are investments of money that can be withdrawn at the time that the investor deems appropriate, as well as its performance.
On the other hand, there are options that allow it only after the end of the term defined in the contract.
If you carefully investigate the investment scenario, you will see that there are plenty of investment alternatives for every entrepreneur profile, from the most conservative to the riskiest.
However, we do not advise injecting all your money into just one type of investment or, worse, into only one financial product.
As the market is extremely unstable, especially in countries with a fragile economic scenario, if you focus all your savings on just one option, if a sudden drop in profitability occurs, you can lose money and even everything invested.
Therefore, if you diversify your investments, beyond ensuring the multiplication of your capital, you avoid suffering drastic losses as a result of a negative variation in one of the markets.
What amount should I invest?
First of all, you should keep in mind that there is no minimum or maximum value to invest, that is, the amount varies according to the type of investment and the profile of the entrepreneur.
However, there are some calculations you can do to identify the ideal number to achieve your goals.
Start by recording your fixed expenses such as:
Rental.
Financing.
Regular bills such as electricity, water, medical assistance, telephone, and the Internet.
Taxes.
Studies.
It is important that you remember to include business expenses such as space rent —in the event that it is a physical enterprise—, and production and supplier costs.
Likewise, it is important that you structure the templates by adding the amount of cash flow so that the business continues to function, even if its income decreases.
When it comes to creating templates, you can use Microsoft Excel, Google Drive or any other financial management tool that catches your eye, is intuitive, and is easy to use.
After recording the expenses, try to reserve at least 10% of your monthly income to invest.
As we pointed out previously, you do not need to have a certain amount of money to inject into investments. However, it is recommended that you establish a monthly amount for this purpose, so you will make this measure a habit.
Indeed, by investing monthly in profitable assets, you will achieve very good results in just 12 months.
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