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How to Start Investing Safely and Profitably

How to Start Investing Safely and Profitably
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How to start investing is a very important question if you really want to change your life in 2019. Many people still think that it takes big sums to get into the financial market. In fact, this is just a myth because you can start investing with little money.

You do not need a lot of money to invest, but it’s no use investing a single hundred dollars because that would not be effective. The important thing is to maintain a frequency in investments. In addition, the financial market offers assets aimed at all audiences, from beginners to investors with extensive experience. So it’s time to put the excuses aside and take that dream off the paper. The first tip for you to start investing is: the sooner you start, the greater your equity in the future.

By 2019, there are positive expectations for the country. So, this may be the ideal time to make your equity grow. In this article, we bring you everything you need to know to start investing profitably and safely from now on:

Why Should You Invest Your Money?

Why start investing? By investing, you can realize your biggest dreams. We all have dreams. For the most part, they need money to be made, for example, buying a property, taking a vacation trip, changing their smartphone, or retiring. However, saving and just saving are not usually good alternatives, since inflation is one of your biggest enemies. It causes your money to lose value or purchasing power over time.

So the trend is for you to take more time to realize your long dreamed goals. Investments can be seen as what was missing to make your equity grow really. With them, you will get income on the amount applied. Keep in mind that with the appropriate asset, it is possible to have real gains, that is, to have returns above inflation. So you can achieve your goals in less time than by joining on your own. In addition, they allow you to build solid equity in the medium and long term. Maybe you can sell Rolex, eh? Luxury watches are good investments.

So the time to start investing is now!

Once you understand the importance of investing, you’re probably interested in getting started. But how to do this? Where to start? This is the most common doubt among people who want to enter the investment world.

Set your goals

Before you start investing, define the reasons you want to make your money grow, such as opening your own business, gaining financial independence, buying a new home, doing an exchange, and so on. They enter into the concept of the importance of applying. So it’s vital to keep in mind how much you would like to have in the future and why you save money. For you to have more control and stay motivated, experts recommend that the ideal is to have five goals and separate them by completion time in the short, medium and long term.

Determine the amount to be invested

Once you set your goals, you must estimate the value of each. This withdrawal is necessary to establish the amount to be invested and term of application. For example, you want to buy a property of $ 200,000 in 20 years, for that, you should apply around $ 834.00 monthly. Remember that money can be invested in one go or every month. The important thing is that it is within your budget and that you can keep your goal. Therefore, the idea is to follow financial planning. With it, you map out your finances and check what can be improved. Plus, know how much you have available to invest.

Know the types of investments

Basically; there are two types of investments: fixed income and variable income. The first consists of a public or private title, which is a loan of your money to an institution. In exchange, you receive an income tax, which in turn can be prefixed or postfixed and is set at the time of purchase. Fixed income is a fixed return, for example, 9% per year. Regardless of market conditions, you will continue to receive exactly that compensation until the due date. Whereas, the post-fixed rate is tied to an index of the economy.

Every day, the market is subject to variations. Basically, it reflects investors’ expectations about companies and the country.