Before investing that money you have more, make sure you are making the best decision reviewing the following tips to that “talk” will not vanish.
Put to work the money that you worked so hard, or that money that came by luck or inheritance, it is no easy task and unless a decision is taken from the overnight. When you have those resources, first thing you want to do is to buy all those things you’ve always wanted or take both longed tastes. However, calm, that the desire is not only fatigue.
That money has today, tomorrow will no longer be in less than you think you will ask me to what I spent it or fix me? If in your life financial education has been nil is best not to accelerate in spending the first thing that comes to mind, try to consult with experts or true friends, whose economic experiences are successful, but for that we are, to try to help them with their personal finances.
“First things first” What consider before investing?
- Assess the profitability and risk: These two components go together, if you are looking for a high return have to be aware that there is also a high risk, these two are directly correlated, depending on the target.
- Set the investment objective: It’s not the same if the goal is to pay for college for children or pay for a trip, depending on the goal can be more risky, it is important to be clear from the beginning.
- Liquidity: There are investments that have the capital to view all the time, and actions can withdraw and deposit at any time, withdraw money partially or totally takes 2 to 5 days without any penalty. While liquidate an investment in real estate can take months or even years. This is important to know whether that money I’ll need immediately at some point.
- For how long you expect to see gains : This is key, there are investments that are profitable after 5 or 10 years, while others are from the first month, plus in some cases, such as time deposits, may result in penalties liquidated investment before the agreed time.
- Know what is going to get: As in any business is important to know how the instrument that is investing, work study, evaluate and compare alternatives. Do not settle with the information that gives the advisor of the product, education is the most important investment. Sometimes many think to pay a course is to engage a part of the investment, but if you are not educated, you may lose more.
- Be realistic: Many times when we have a surplus capital to invest or think we say something like, that money will not touch in 10 years, or have a very risky profile and will invest with high risk. Sit down and take the time to think about what can happen before 10 years, or what happens if I lose this money
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WATCH OUT! These are the typical mistakes when investing
Finally, agree that there are four mistakes that are very often when people are going to invest for the first view:
- Be seduced by magical promises
The goose that lays golden eggs does not exist, every investment and every business requires effort, suspect when they offer high returns in a short time.
If you invested for a reason, either because they saw an opportunity or a good time to go into business, wait until the results are displayed, stay calm, if not patient two things can happen, the first not end the investment not wait and miss the chance and the second most inordinately want to invest because the investment goes well and lose ambition.
- No diversify
For more profitable than an investment is the first commandment of a good investor is to diversify, think of different alternatives, distribute your portfolio in different portions that allow them to engage more risk or longer term.
- Borrowing to invest
This is one of the worst, for it rather see a business, any investment is uncertain, it is possible that your investment will not yield in some periods and debts do not give expected.