I have been investing my money for many years, and I have realized that I have always been looking for what to invest or where to put my savings to earn more. If I’m honest, I wouldn’t know if that effort was worth it or not. Rather, I have the feeling of being entertained and that I have warmed my head a lot.
Some things went well for me. That’s clear to me. To the point of thinking that I was good at this investment. But I don’t know if it really has been a succession of decisions with luck, more than skill or knowledge.
I think I do know one thing for sure. And over the years, I have been improving. I no longer try so much to find where to invest money or to discover what is the best investment of the moment, but to have a method for the process to transform savings into investments with the result that compensates for the trip.
I understand perfectly if you are looking for what to invest your money to earn more. It is a perfectly logical and reasonable claim. But I think that is an objective that we all usually have, especially when we start investing because we seek immediate reward or short-term results. And that approach over time seems to me to be a trap, which can make you lose a lot of money.
The more decisions you make and the more operations you make, the more risk you have to make a mistake. Sometimes earning less than you could have earned and sometimes losing excessively, for not knowing how to control your emotions and sell at a bad time.
Whether you want to start investing and you don’t know how or if you already have some savings, but you want to know how to invest in a profitable and safe way, first of all, congratulate yourself. Because that means you have already understood the need to put your savings to work to fight inflation. Because in the end, savings accounts and deposits are nothing more than a path of the poor, which leads you to the loss of purchasing power.
My advice is to read some investment books. That you acquire knowledge, to form your own criteria to be able to decide. And have a slightly broader vision, which cures my nearsightedness that prevents you from seeing beyond the product or the interested advice they can give you in the office of a commercial bank.
Financial education is the first step towards financial freedom and what will allow you to decide better on what to invest your money and how to make it profitable with the security of knowing what you are doing.
The second aspect you should know is that the simpler your investment plan is, the better. It is not necessary to complicate it. You have to diversify, it’s true. But bear in mind that a tangle of products and funds does not help you at all to be clear about the results of your investments, nor do they help you know how close or far you are from your financial goals.
If I had to give a road map to a person who doesn’t know anything about the world of investment and who wants to start taking his first steps, to find out what to invest in savings to earn more, these points would be.
Read stock books and investments. Learn from the ones that know.
- Simplify. Complicated is not better. You lose control and double positions
- Diversify globally. Look beyond your local market.
- Look for the most appropriate strategic asset allocation for your way of being
- Control the risk. If you don’t see market volatility as an opportunity to invest and be able to earn more money, you may not have to lower your stock market dose.
- Don’t be aware of the market every day
- Investment when markets fall
- Rebalance your investment portfolio. Sell the asset that has risen the most and buys the one that has fallen the most every two years to return to the equilibrium situation in which you were at the beginning of your strategic assignment.
- Enjoy the process of saving and investment, as if it were a walk in the countryside. If you really want to make money, I’m sorry. It has to be boring. Look for adrenaline in other things.
- It operates little. Do not enter and exit the market constantly. Stay invested and try to keep the rotation of your investments as low as possible.
- It goes from investment fashions and sectors.
- Do not look at the past. Forget about star funds or products. The future is uncertain, and the track record does not mean much.
- Watch the costs. Get rid of yourself, and the bank is not your friend. It has conflicting interests with yours. They have to earn money for your thing.
- Choose the most appropriate and efficient investment vehicles and intermediaries. Quoted funds or ETFs, index funds, or low-cost passive management fund portfolios are good tools. Find yourself a safe or cheap global broker.
- Use several intermediaries for security and offer, but not too many. Remember the principle of simplicity.
- Trust what has always worked. The market and long-term profitability. If at the end a day comes when everything goes to hell, it won’t matter where you had your money invested.
- Enjoy your investments with the peace of mind that lets you know that you have everything clear and know where you want to go.
- Start as soon as possible, but don’t invest all your money at once. Not always, any time is the best time to start investing. But as we are never sure when it is that bad time, start, but do it with an amount of money that you can correct if it turns out that you were wrong.
Almost for any age, if you want to make your long-term savings profitable and you don’t know what to invest in, my personal recommendation would be an indexed fund portfolio, a fund, or an ETF investment portfolio, 2/3 global equity and 1/3 global fixed income. It’s that simple, that simple. The result will be better than 95% of your other options. Want to know what funds or ETFs you would choose? Give me a comment
And more or less, this is the idea of where and how to invest to earn more money. Yes, I know. Like you look at this article carnage where you say the most profitable stocks for the coming months or background that will Petar coming years. I will only tell you that, within a normal distribution, the probability of finding the extreme data is usually not very high. So do not expect to discover many investment unicorns announced in general media.