It is one of the three most important pillars in your finances.
Therefore, it is essential to know all the alternatives regarding investing money to make the right decision and get the most out of your savings.
Working hard to earn money and making an effort to save a portion is a must.
But if you do not invest that money, you are missing the opportunity to make the money work for you, which is fantastic.
You know, if you put enough money to work for you, you can stop working for the money ? Financial Freedom.
If you have come this far intending to learn how to invest your money, this article will be great for you.
I am going to tell you, among others:
? What to invest money in
? How to invest your money safely
? How do I invest my own money, and what do I think is the best way to invest without risk.
? The best investments and where to invest now
If you directly want to know what my preferred investment is, click here
Why is it necessary to invest your money?
I imagine that if you are wondering where to invest money, you know the importance of obtaining the highest possible return on your savings.
Of course, I imagine that you are interested in safe and profitable investments.
No cryptocurrencies, no CFDs, futures, binary options, and things like that, which more than investments are bets.
Of course, I agree with you.
Investing in your savings is essential, especially for the following reasons:
Inflation makes things worth more day by day.
More or less, every 25 years, the price of things doubles.
If you save for the future and do not invest that savings, each day that passes, you are losing money.
The best investments will beat inflation and by a wide margin.
Compound interest is, according to Einstein, the most potent force in the galaxy.
Applying compound interest to your investments will make your money grow exponentially every day.
Here you can read more about compound interest and try the calculator yourself.
The pension system
Every day it seems less likely that we will collect decent pensions when we retire.
Given that, you have two options.
? The first is to do nothing and risk getting the State to pay your pension.
I see it wrong.
? The second is to start preparing an alternative plan and save and invest that money in the long term to generate passive income in the future.
Where to invest money?
invest your money
The first problem you come across when deciding to start investing your money is the many alternatives on the market.
When you look for things like where to invest my money or where to invest money without risk, you find a lot of information, which can throw you back and make it difficult for you to start.
Therefore, I will talk to you in a summarized way about the main options you have to invest your money.
As I have told you, I will focus on safe investments, investments in which I invest my money myself.
Before thinking about where to invest money …
You must consider certain aspects and concepts that will guide you in your decision to invest money.
Do you know what type of investor you are?
To know what type of investor you are, you must know to what extent you are willing to risk your money. Although it is not that simple, since challenging to quantify and other subjective elements can influence, knowing your financial profile will help you know the most suitable investment.
The investor profile will indicate the relationship between the risk you are willing to take and the returns you hope to obtain. Taking this into account, the investment profiles are:
Risky: The investor who already knows and controls the financial world is willing to risk his capital with the possibility of achieving greater profitability. Typically you will invest money in equities in short terms.
Conservative: He is an investor who will prefer to keep his capital safe even if this means lower profitability. He is going to make investments in fixed income, and they are usually medium-long term.
Moderate: This investor is between the risky and the conservative because he wants to receive more returns without risking too much. His investments in fixed income and equities will be similar and in the medium term.
And you, what type of investor are you?
Is it possible to invest without risk?
The risk of investments will never be zero. All investments run some risk, but we can reduce it, choosing products with low risk.
Are you going to get money fast?
I am sorry to inform you that if this is your intention, this is not for you.
No, you are not going to get it fast money. Some investments go to gen.