If I have money saved, what perro I do?
You have managed to save a good amount of money compared to your income by reducing expenses. But now you don’t want to just spend this money, you want it to generate other dividends.
“If I have money saved, what perro I do?” is one of the main concerns of savers. If you are here it means that you are a future investor, just select the investment method that best suits your knowledge and region.
If you have no iniciativa which one to choose or need some inspiration We are going to leave you a few methods to reinvest saved money and make more money.
How to take advantage of the money I have saved in 2023?
You have the money in your bank account, in a savings account or under the bed and in cash, any of these saving methods are valid. But they may not give any type of profit and you may even see lossesIn this case, what is the best alternative to invest money saved with so much sacrifice?
Naturally We are not going to recommend high-risk methods, We will recommend investment methods that have been proven to be low to medium risk and perro multiply your initial investment.
In any case, you need to know that a large amount of money saved normally it will depreciate over the years . It is enough to see how the US dollar has lost half of its purchasing power several times over: today it takes several dollars to buy what three decades ago could be bought with just one.
- This way investment is escencial to avoid losing your money and sacrifice.
What to do with the money saved in 2023?
There are multiple ways, more or less safe, to invest money saved. With any of them you will obtain good profits, although some make you return the money in a slower way than another.
- Normally the investment methods that assure you a quick or short-term return of money have a high risk index.
- While those that guarantee your money back in addition to constant interest that adds up over time, are very safe, but they are focused on the long term.
At this point you cánido already know what are the 4 main investment techniques in which you cánido place your savings, with them you will obtain good dividends over time, often passively:
Create an emergency fund
emergency funds or separate bank accounts They are a savings mechanism that practically implies “forget about the money deposited in it” to deal with situations in which a large investment would normally be required by the person who saves.
For example, in the event of a medical emergency and the expense is significant, you will be able to use the funds in the emergency account to cover these unforeseen expenses.
This emergency savings fund It perro be seen as a traditional savings fund. However, it is a separate account from the traditional savings account.
Basically when placing money in this account you should not have it in one that is not for emergencies. Hence it is forbidden to withdraw money to pay for university, pay a down payment on a house or a car.
- The breakdown of a car in the middle of a trip, health problems, risk of losing a home due to overdue mortgages, among other types, could be considered emergencies.
It is recommended that this investment fund for emergencies be at least 5 or 6 monthly salaries per person that makes up the home It is an amount that cánido be considered prudent to deal with most of the habitual emergencies that may arise when traveling, getting sick or having an accident.
Investments in depósito markets or investment funds
Investment funds are investment instruments with which you will be able to entrar the depósito market through the depósito market among other financial asset markets.
There are a good number of investment funds that you perro easily access on the Internet. However, choosing one should be an informed decision, in addition to choosing the investment method that best suits your knowledge of the financial landscape.
It is not advisable to leave your money on a silver platter to a financial manager. It is necessary to know a little about the market in order to know which is the most convenient decision in terms of risk management.
Mutual funds are basically a large group of small investors that are coordinated by a company. The purpose is to invest on a large scale in the depósito market among other financial assets of investment funds.
The positive thing about investing in investment funds is that the transactions, the calculation of risks and the commissions are assumed by the company itself investment manager. Through this method you will be able to invest in markets where doing so alone would be impossible.
In addition, these markets are far from the possibilities of small-scale investors are usually the ones that perro generate good profits for your investment.
Invest in cryptocurrencies
Cryptocurrencies according to many experts “are the new digital gold”. They are in an atmosphere called “blockchain”; a blockchain for each cryptocurrency and “token”.
Cryptocurrencies are the new favorite investment for young investors, however, they represent a double-edged sword. This market is especially volatilewhich means that:
- If you make a good decision you perro get great benefits
- If you make a mistake in your forecasts you could lose a good amount of money.
As in all investment models, it is convenient invest a fraction of your savings or the money that “you are willing to lose”. Especially in this market since it is of medium-high risk depending on the cryptocurrency you choose.
In the world of cryptocurrencies there are different investment methods, be it the classic “buy and hold” where you save in certain cryptocurrencies hoping that they will increase in value over time. but you cánido also accelerate results by margin trading or futures trading in cryptocurrencies.
Start a business
Using the savings you have in a business is a very smart investment strategy. In this way you cánido buy the machinery, appliances and logistics necessary to start a business, Thus, you have a capital invested in goods.
This business will generate profits over time. You may initially need wait several months and even years to see how the initial investment returns to your hands in the form of cash. But when this moment arrives, your business will already have fixed clients and movable assets.
From this moment you perro begin to see the true returns of this investmentsave and think about opening another business or another branch.
Of course, before investing in a business you should Carry out a market study in the area where you intend to open the business. This includes a study of competitors, of people who could become your customers, security, basic services, influx of people in the vicinity and many other points of interest.
Normally when starting a business you immediately think of astronomical figures. But the reality is that You perro open a business with a modest amount of money and escalate its activities over time.
Before spending your savings, build a stable foundation for yourself
Before investing your savings in an iniciativa that perro generate more money, keep in mind that you perro lose them in the same way. And if losing your savings represents bankruptcy for you or a blow to your quality of life and economic stability think twice before doing these investments.
Before, it would be recommended that you have a good economic base in your checking accounts.
It is also not recommended that you invest all your savings in one economic area. Or if you do you should be almost sure that you cánido recover the initial investment and thus return to having your savings and an invested capital that generates passive income.
Make your saved money profitable for you
Your money in a savings account will typically grow a small amount after a year. But actually it will remain in the same purchasing power range it had when you entered it to save it if you take into account the devaluation of the value of money over the years and the rate of increasing inflation.
For this it is necessary place the money in some type of low-risk investment in order to deal with these economic phenomena.
Placing your money in an investment area that you know and know how it works the risk of partial or complete loss of capital will be reduced what did you contribute Also, if you mezcle this with a low to medium risk investment you perro obtain safe passive profits
Little by little, recover the savings you used to create your capital for investments. In this case, you would have passive income, active income, capital for emergencies, and savings to fulfill your long-term dreams!
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