Do you have money left and want to invest? That’s good news! Wait, but looking for a beginner investment? Came to the right place. We have prepared an article to explain how to prepare financially in this beginning. See tips for being organized when investing, in addition to revealing the main types of investment. Follow!
Investment for beginners: how to start preparing?
In the case of an investment for beginners, the first step is to make an emergency reserve. That’s right, it’s a way to create an amount to cover any unforeseen events that may arise along the way. It is recommended to store your average expenses in your budget for around six months .
And reserve, what would that have to do with the investment? In order not to need to redeem part of your invested money and, consequently, lose some money, it is worth creating a reserve only for the purpose of everyday tightness. Thus, it makes it possible to continue investing frequently, without interfering with your strategy.
Also, as you would be getting to know a new universe, study about investments. Investing can seem complex and far from reality for many people. So try to dedicate a considerable time to read and inform yourself about where you would be putting your money. This would make you more secure, lessening the chance of being surprised.
Tips to start investing
As we are talking about an investment for beginners, you need to better understand why you are investing. There you can find out how to organize yourself for this, in addition to the most appropriate way to keep the money invested yielding. So we’ve listed six tips on how to start investing. Check out:
define your goals
Why are you wanting to invest? The answer to this question needs to be on the tip of the investor’s tongue. Whether to buy a car, take that dream trip , renovate the house or simply save money thinking about the future, the goal must be well defined. That way, you can define the most appropriate investment with your profile.
That is, each goal has a different time to be achieved. And it affects the choice of the ideal investment to achieve what you want. That is, there are three categories of investments: short-term (up to one year), medium-term (up to five years) and long-term (over five years).
The investment time is crucial for the success of your objective. For example, if you can’t wait four years to get your money back, rethink your investment. Be very clear about the period of time that it would take to recover the application made. This prevents you from withdrawing capital ahead of schedule and making a loss.
Make a financial plan
It may sound cliché, but financial planning must be present in investment for beginners. It is necessary to be aware of what goes in and out of your family budget each month, even small debts. With the diagnosis of your finances, it facilitates the understanding of the expenses and helps to create a control of the expenses.
don’t have debts
Do you want to start investing in debt in the square? Not a good sign. First, settle all the debts that exist so as not to commit your money to investments. Whether it’s the credit card , loans or that debt at the bakery, prevent it from going on. Wanting to save on outstanding debts, and even more so if it has interest, is not a good idea.
Seek to negotiate your debts so you don’t let it turn into the dreaded snowball. When you get out of the red, you can kick-start investments without major worries.
Discover your investor profile
This is a very important point at the beginning: how would you deal with the risk of losing money? With the answer, discover your investor profile , a combination of characteristics and attitudes when it comes to money. To better understand your profile, there are three types of investors:
- Conservative: thinks safety first at the expense of your financial return. Prefers low-risk investments for fear of losing money;
- Moderate: likes to be safe, but would be more open to taking a little risk in certain applications. In fact, this makes it possible for you to be more versatile in your investments, diversifying your portfolio to increase profitability;
- Aggressive: not afraid to take risks, so he focuses on investments with greater profitability (such as stocks and cryptocurrencies). As a result, you are more likely to lose money if the trade does not go as expected.
Have patience and discipline
Yes, two key characteristics in investing for beginners to succeed is: patience and discipline. Remember we’re stepping into uncharted territory, right? Therefore, the requirement to maintain financial control, saving expenses regularly, is essential when thinking about financial success.
With regard to patience, do not forget that in order to reach the established objective and preserve profitability, a little waiting is necessary. In this sense, experience in the universe of investments will make you more prepared.
Discover the main investments
In case you don’t feel very secure, fixed income investments are the most appropriate in this beginning. Fixed income, huh? These are investments in public and private securities that, when buying a debt, receive payment within a period with interest for the period.
There is also prefixed profitability, in which you know how much money will yield at the beginning of the investment. Post-fixed, on the other hand, depends on a financial indicator.