Investing: Is Your Money Rising?
Are you one of those who accompanies your investments or do you just believe that everything is working out? Research existing options or faithfully trust the manager’s word? How much of the salary program will save or leave to see how much is left over at the end of the month? Between good and bad choices, is your money paying off?
Check out some tips to get this head straight and make sure you are making the best deal to see your equity grow. Do not forget: real dreams come closer when accompanied by financial planning and good investments.
1) Plan how much you will save each month
A lot of people make the basic mistake of believing that you have to save up your leftovers at the end of the month. But the truth is that savings should be seen as a necessity and planned in advance. Otherwise, you are very likely to spend almost everything you earn and get a false feeling that you do not earn enough to have a reservation.
So to find out if you’re making the best choices for your hard-earned money, start by making sure you’re saving everything you can. With a good budget worksheet, you’ll be able to make an objective estimate of your spending for the month and be aware of how much you can save. Ideally, a person should save 20% of their net income, but it may not fit in their pocket right away. So you can start by saving 5% or 10% and increase as your expenses adjust.
2) Learn why you are saving
A good financial investment is one that will help you achieve your dreams. So to choose where you will put your resources, you need to be sure of what your goals are. Some applications work best for short, medium or long-term goals, so start by setting your own.
This planning will even help you maintain discipline in the difficult task of saving, as you will know exactly how and when you will be rewarded for your effort.
3) Understand how your investment works
Research is an essential step in choosing a good investment. Here you should not only rely on your manager’s version, you have to understand, for example, your investor profile, what the profitability of that investment is, what fees are being charged – and how much they will “eat” your income – when you can redeem it, if there is an income tax entry or what level of risk is involved.
It may seem like a lot, but there is a lot of material available that can help you understand these issues. If you want to know more about it, check out this investment ebook for beginners.
4) Study the options available in the market
Not comparing your investments to other market options is also a fairly common mistake. It takes a broad look when talking about financial investments, and a good market research is essential to know if your money is yielding everything it could.
Compare the conditions offered in your application to other products offered by the bank. Compare them also to the advantages offered by other banks and brokerages. Finally, always consider what investment specialists are talking about one or another financial product.
5) Always compare the return on your investment to inflation
Maybe you’re happy to see your money yielding a little bit each month and feel like you’re doing a good deal. The fact is that to be considered as an option, and an investment needs to surpass inflation at least and thus ensure its purchasing power over time. The ideal, however, is for profitability to outperform the IPCA and bring it a real good return. After all, those who invest want to see their wealth growing and begetting