When researching how to invest your money, you can also look into how you can help answer your questions about investing. This research can be done through hiring a professional broker or financial advisor, or it can be as simple as doing your research online or through books on the subject. No matter how you go about it, you must find a way to invest some of your money for your future.
Once you have invested in knowledge and educated yourself on investing, you have to make a strategy. Again, this can be done through a professional or on your own, depending on what you can afford and your confidence level.
Though you may want to hire a professional financial planner or investment broker, it is important that you, as the investor, have some knowledge of investment strategies and financial planning. Here are three essential strategies that can get you started investing your money wisely.
An Emergency Fund
Though an emergency fund is not an investment that will grow your future, it is essential financial insurance that every person needs to have in place. Having a healthy emergency fund will ensure that if anything goes wrong in life or investment goes south, you are covered to pay bills and stay afloat financially until you recover.
Pay off high-interest debts. Do not ignore this advice, please. If you have credit card debts or consumer loans with more than 6% interest, you should not invest in anything. The first thing you should do is remove those debts; if you pay a debt of 6%, it is as if you had a return of 6% on your investment. It is the most profitable, safest, and most useful investment.
And if it is a credit card debt that can reach up to 21% interest, you will have made the best investment you could make with the payment of that debt.
Where to invest your money
1. Fixed income products
For those investors who do not want to take too much risk, the truth is that the outlook is very unprofitable at the moment. Here the options we would have are:
2. Fixed-term deposits
Although in his days we could find fixed-term deposits that could pay us up to 4% annual return, at this time, we would find that the returns are not exceeding in some countries such as Spain or 1%, so investing in deposits can make you lose purchasing power due to inflation.
3. Public debt
Treasury bills and bonds are still a good investment option. At least it is the safest thing there is. In some cases, it is convenient to leave your border to invest in public debt from other countries looking for a higher profitability rate.
4. Savings accounts
Although it happens the same as with fixed-term deposits – that profitability has dropped a lot – the truth is that there are still some savings accounts that, at least for some time, can offer us a decent return. When is a good option to open a savings account?
Above all, when we start to save, we can automate savings more than anything if we see that we lack the willpower to save.
5. Where not to invest
Before moving on to fewer conservative investments, I take the opportunity to remember that the shortcuts when it comes to making money can be costly. Flee the quick formulas to earn money in the stock market, as is trading. Here I explained certain truths about trading. Please do not fall into the trap of getting rich with binary investments, and I go further: distrust any investment product that carries the word Fund, Guaranteed, etc.
Investing may seem daunting to most people at first, but if you do a little bit of your research, you will know that you can make a road to a healthy and robust financial future.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.