All people can invest small or big sums. The key is to start and learn in the process. For new generations, building their financial future without the need for large initial capitals is possible and necessary. The secret? Know how to save.
Is it possible to be a great investor if we do not learn first to save? Reality shows us no.
Financial independence is achieved through a combination of disciplined savings and intelligent investment. It is key to avoid unnecessary debts and look for opportunities to increase income and grow our long -term assets.
When we are planning our finances, we must be clear about the horizon: am I saving for next year or for the next 10 years? There are various tools, such as common investment funds or interest savings accounts.
Five key tips:
Budget: Arm a budget is an essential tool to have control over finance, whether personal, family or commercial. The creation of a monthly budget will help to know where money is going.
- Income: salaries or salary, extra income (freelance, rentals, sales)
- Fixed expenses: They are paid every month and do not vary much; They can be rental or mortgage, services, transport, food, quotas, loans, cards, subscriptions, mandatory insurance, school, etc.
- Variable expenses: They can change every month; They depend on your lifestyle and behavior (entertainment, clothing, gifts, trips, goods of all kinds, etc).
Emerge (“Safety Mattress). This money will serve in case of unforeseen events. The recommended amount is to have enough money to live from 3 to 6 months (they can be three to six salaries)
Where to save it: savings account, fixed quick liquidity term or common low -risk investment funds.
Save regularly: A good practice is to save between 10% and 20% of income.
Basic method or infallible rule. In personal finance, “Basic Method” is called rule 50/30/20. Fixed and necessary expenses (rental, services, food) will be 50%; Variable expenses and lifestyle (leisure, outputs, non -essential purchases) will have 30%; and savings and investment (first your emergency savings and then investments) will take 20% of income.
It is important to separate the savings and investment money as soon as the income arrives (“pay yourself first to yourself”), to avoid spending it without realizing it.
And the debts? Good management is key. Prioritize debts with high interest and avoid accumulating more.
Time and its tools
Each investment time space offers different instruments. The ishort -term nversions (0 to 2 years), are aimed at preserving capital and maintaining liquidity.
Examples:
- Traditional fixed deadlines or grapes (in inflation contexts).
- Common liquidity investment funds (Money Market).
- Remunerated accounts.
- Short -term bonds.
The medium -term investments (2 to 5 years), make money with more performance, and a moderate risk.
Examples:
- Negotiable bonds and obligations.
- Common investment funds.
- ETFS (quoted funds) diversified.
- Savings plans programmed for specific goals (eg buying a car or giving advance of a house)
The long -term investments (10 years or more), they have the purpose of maximizing capital growth.
Examples:
- Actions (solid companies or indices ETFs).
- Retirement or retirement funds.
- Real estate investment.
Finally, insurance plans with capitalization, which take advantage of the compound interest.
If I arrive just at the end of the month, can I invest?
It is always possible to invest with specific strategies such as the adjustment of ant expenses o Variables: small cuts in daily coffees, apps, subscriptions and purchases that are not strictly necessary. You can start with low -amount investments.
For any investment, even in its initial process, the previous step is to review the finances, create a small savings margin and ensure an emergency “mattress”. Time is the best ally for this healthy habit of saving and investing.
Finance Specialist, Savings and Investments
Source: Ambito
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