Almost all of us want to have economic stability as a goal. However, sometimes we must remember that more than a goal to reach, financial stability is a state that we build according to the decisions we make. That is why it is so important to invest in our financial education. This does not necessarily mean with money, but also with effort and time to understand. Savings and investment are two keys to generating economic stability. That is why it is important that you define the reasons for investing and saving along with your objectives and goals. Only then will you have a complete guide on how to do it. Here we prepare a guide to do this.
Also read: Future investments: How to take advantage of them?
Table of Contents
Reasons to invest: external reasons
If you consider that investing is not for you, here we tell you why you should change the chip. Whether it is because you consider investing is complex, and risky or that it is just an extra expense, the truth is that you should not stay away from this tool due to prejudice and false information. When you invest, you make your money not lose value, that is, you not only save it, but you make it grow. There is usually an associated risk, but if it is done responsibly and consciously, this is reduced. The benefits you get are much higher. In addition, the results you get in the long term will help you: you can capitalize and obtain long-term returns.
However, these are external reasons to invest. Although they can be very good and attractive, they are not enough to make the initial jump and you venture to do it. The decision to invest must come from within, that is, by your own conviction. You will only achieve this after having made a financial plan. Set what you want to get: items to buy, experiences you want to get, places to travel to, etc. Everyone is looking for different things. Once you do, put a date and price on them. This is how you will achieve your goals. And then you will be one step closer to knowing why you want to invest (since it will be a way to help you achieve this).
Reasons to invest: internal reasons
As you can see, the first step in this is to have a financial plan. It is useless to accumulate and invest just to generate money. This will only cause you to do it in an unstructured way. The guide to success is to have a goal. Since, by doing this, your decisions in difficult moments can be directed by the goals you want to reach. For example, if you want a trip and you are just planning it, but your returns were not as good as you expected, why not wait a longer period and go with a better budget to withdraw it and go very far? Your goals will give you the guidelines to make decision-making easier.
How to start?
Investing is a process that must be done with responsibility and commitment. It is not something you should take lightly. Just as it can be very beneficial, it can also bring a lot of risk and loss if done wrong. That is why it is important that you know about it before making important decisions. This is not to scare or discourage you, on the contrary, it is to make you aware of the risks that exist.
For this reason, we share a guide with tips to start investing, what do you need to know? You can read it in full here and find out the details below:
- Learn about the different financial instruments there are, that is, what you can invest in: stocks, metals, currencies, raw materials, bonds, real estate, energy, etc.
- Know the basic investment concepts: make a glossary to help you with the terms that exist, both those you know and those that cause you to doubt.
- Study and investigate before investing: get advice, material, and information, but investigate well before deciding to make a decision
- Use technology: applications and digitization help you both to search for information in a more accessible way and to keep better control of your investments.
Keys to invest
If you are starting to invest, the most important thing is that you learn in detail. You can do this by reading and researching the different forms of investment that exist. Remember that you must choose the one that suits you best according to your reasons for investing. You can separate them by terms: short, medium and long, or by objectives: what you want to obtain, or by returns: moderate or larger. The important thing is that you have a guide and know the options. Here we leave you, precisely, a guide to invest if you are a beginner.
Another good tool is to do your own calculations and keep track of your investments. It may seem laborious, but today there are many tools that allow us to automate and better manage these processes.
To summarize, we leave you a three-step guide on how you can start investing in a simple way:
- Make your guide to concepts and glossaries of terms, as well as financial products
- Recognize the different types of investment there are and which ones are most convenient for you
- Diversify your investment portfolio according to your needs. Stick to your plan and reasons to invest.
Reasons to invest: Types of investment
One of the secrets to success with investments is diversification, but you can’t just accept all investments. You must have a criterion. You can develop this through the objectives you want to achieve. They can be for terms, financial goals, yields, etc. There is no magic formula, but there are certain patterns that can help you. We leave you a scheme that can help you think of combinations of how to diversify your investments:
- Short term: You can start investing in cetes to capitalize, understand finances and get a constant income and return.
- Medium-term: Invest in currencies. Let your money work for a while in different currencies and then come back after evaluating the situation. Here you can find a guide on how to start with this type of investment.
- Long-term: Invest in real estate. This will bring you long-term benefits. You can learn more about the property market and what considerations to have in this regard from this article.
As you can see, there are many options. The secret to making a winning combination is to sit down and set your goals and objectives. Don’t just do it as something to be achieved, but put in writing (or in a very tangible way) the reasons behind your investment. These are the key that will guide you in what you should prioritize and how to make better decisions.