Determine your ability to risk and choose the right time .. 7 ways to save money and invest better | Economie

Determine your ability to risk and choose the right time .. 7 ways to save money and invest better | Economie
Determine your ability to risk and choose the right time .. 7 ways to save money and invest better | Economie

Good financial planning can help you save and invest better and make quick profits. This requires defining your goals and how much you can spend, assessing risks and choosing the right time to invest.

In a report published by Business Insider, writers Kaya Moynihan and Marta Garrigo review a number of tips offered by money management experts to help you improve your ability to save and choose the right investments to achieve your goals.

1. Setting goals

Paola Strostegui, director of financial planning at Abante Access, explains that saving $2,000 a month is not the same as saving $10,000, so the first thing you need to do is set goals and figure out what you want to achieve with your savings.

This requires knowing how much is required to achieve goals, and ascertaining whether it is feasible or difficult to achieve. Once you are sure of the amount you need, you can begin to develop an investment plan and set a deadline for achieving the goals.

2. Determine the amount that can be saved

It is important to know your monthly savings capabilities and how quickly you can reach the amount needed to achieve your goals.

“First of all, you have to set an annual budget, taking into account annual expenses such as taxes, insurance and other expenses,” says financial expert Javier Niederleitner. This way, it will be easier to determine how much you can save.

3. Control of expenses

“A lot of the time, we don’t know where our money is going when we commit to something for the first time,” says Satrostegui. For example, if you sign up for a free loyalty card, the money may be charged at a later time without you even realizing it.

4. Calculate the profit you need

If you have a specific goal and you know the amount that can be saved regularly, this means that you can calculate the profit required to achieve your goals.

It is important to plan the expected profits in a specific time frame, because later you can determine how successful you are in achieving the goals you set at the beginning.

5. Determine your ability to take risks

Knowing your personal risk appetite will help you decide which products to invest in. For example, someone who is very conservative should stay away from investing in stocks, in contrast to someone who is willing to take risks.

“It is important to realize that if you need the money in the short term, it may be better not to invest it, or to invest only the amount you do not need in the short term,” says Niederleitner.

6. Choose the right time to invest in the right products

Financial expert Victor Alvargonzalez stresses that some products may be attractive for a short period, so the right time to invest should be chosen. In fact, it is about monitoring market developments to seize the optimal investment opportunity and take the step that enables you to achieve the greatest gains.

7. Diversification of investments

One of the best ways to ensure you don’t lose all of your money is to use mutual funds because they enable you to combine several types of investments into one product, Satrostegui says.

Alvargonzalez points out that it is important to diversify by buying valuable assets, as you will ensure that investments are balanced.

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