For those who are already experienced investors, this may even seem silly. For those who are just starting out, some tips are like gold mines. Talking to friends and family is a practice that helps a lot, but sometimes it is not enough to "turn the key" and make you a great and successful investor.
That's why Yubb, your free, online investment search engine, is here on Investor's Compass. Today's post will bring you 5 unmissable tips for you to invest your money better. After this text, you will certainly be more motivated to save and continue investing.
1. Have an emergency reserve
Have you ever heard of an emergency reserve? It is an amount of money that you set aside just to use in case of unforeseen events. Some people set aside 6 to 12 salaries, but this will depend on how much you think you need to save. For you to invest better, you need to have an emergency reserve.
The purpose of the reserve is to bring you more peace of mind in your financial life. How can you leave your money in investments with liquidity at maturity (that can only be redeemed at the end of the term) if you run the risk of needing that amount at any time? How can you take more risks to earn more if an emergency could happen?
That is what this reserve is for. Setting aside the necessary amount will take a few months, maybe even years, but be patient because it will be worth it! If any unforeseen event happens (job loss, health emergency, etc), you will have that money on hand. After having this money "saved" in an investment with daily liquidity, then you can invest the rest of your assets with more tranquility.
2. Get out of your comfort zone
When you started investing, what motivated you? A video you watched? A text you read? A friend who advised you? Did something "slap" you to take the first step? This motivation is very important, but it needs to be renewed every day. If you have put your savings in a SELIC Treasury, great! But you are not going to invest in this bond for the rest of your life, are you?
To be a good investor, you need to get out of your comfort zone. Study about investments, watch videos, read texts, learn about new products, search on Yubb... In short, get headlong into this world of personal finance and investments.
Sounds complicated and lazy, right? We understand you! But after you start researching more about the subject, it is natural to become more interested and look for new options. If you are used to the SELIC Treasury, for example, don't buy this bond again. Go for a CDB with daily liquidity of a bank to get to know it. Breathe new air and get to know new yields and types of investment to earn more and more.
3. Understand the guarantees
Usually, when someone starts investing, he/she thinks a lot about security. This is very correct, because there is no sense in venturing into something you don't know yet and still run the risk of losing money. There is no point in buying bitcoin just because you saw an article about it in the newspaper, for example.
To invest better and better, you need to understand that all investments have risks, but that there are also safe options. Did you invest in the SELIC Treasury because your friend recommended it? Cool! But what is the guarantee that you will receive the income on the stipulated date?
Tesouro Direto, for example, is guaranteed by the federal government itself, and therefore has the safest securities. Understanding the risks and guarantees of your investment is a very important step to get familiar with new investments and get out of the comfort zone as we talked about in tip 2 above.
4. Diversify your portfolio
Diversifying your investments means not putting all your assets in one place. This is very important to minimize risks and increase profitability. And I bet you want to make more money in a safer way, right?
To make this diversification you need to define what your investor-profile is and what your financial goals are. This way you can decide what percentage of your assets will go to fixed income and what percentage will go to variable income.
Once this is defined, all you have to do is allocate your money to different assets (assets = investment products). This way, if one of the assets is yielding little (or even if the institution goes bankrupt), it is only a part of your money that is there. And, of course, you can also find different yields on different assets and maximize your gains. It is that old story: it is not worth putting all your eggs in one basket, either for safety or profitability. Think about it!
5. Have discipline
As we said above, the goal of this text is that you feel motivated to keep saving and investing. It is much easier to spend all your money without thinking about the future, but this will not bring you any results, the only result will be that your dreams and life goals will become more and more distant! So the last tip could not be any other: have discipline!
A good investor is one who saves every month in order to invest. Of course, some months are more complicated than others, but the important thing is to have a controlled, organized, and regulated financial life so that you can make a monthly plan to invest every month (even if it is only a few dollars per month).
To achieve your financial goals, you need discipline. There is no point in taking the first step, making the first investment, and then forgetting the whole process. Keep studying, getting to know new options (remember tip #2?), saving wherever you can, and investing to always make more money.
