Are you thinking about how to invest your capital today?
Understanding how to invest today is certainly not easy, both for the many forms of investment available, both for fear of making a Misuse of savings hard earned.
In this article I will give you some references that may help in the choice of 'right investment.
I'll show you what are the 3 most important elements of which you have to take into account when choosing where to invest your money, so that you can act consciously.
First I want to explain to you that an investment is "right" only if it is in line with your goals, with your budget and your personality. So "right investment" means "most suitable investment for you”.
You must be clear about your goal: why do you want to invest your money?
Who is looking for an investment usually has one of these purposes:
- Capital protection
- Growth capital
- Use of a periodic gain
It's hard to find an investment that can make you achieve all three goals. It is therefore essential that you understand what is your greatest aspiration.
Make it clear to yourself what is among them the goal we want to achieve, and only after doing that analyzes the 3 criteria below and learn how you can invest your money today.
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Time
How long you want to invest your money?
Once you have clearly defined the goal that pushes you to invest, you have to figure out which time constraint can do for you.
Your money may be blocked from 3 months, per 5 years or for 20 years: you can see that between these horizons there is a big difference.
Investments are usually divided into:
- Short term (maturity of 12/18 months)
- half finished (life by 2 to 5 years)
- Long term (longer than 5 years or undefined)
Decide how long you want your capital remains bound.
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Yield
How much you want to earn?
The Yield is the difference between how much money you invest and how we get to the end of the investment, and it is usually expressed with a percentage its base yearly.
You have to understand if and how much you want make money your money, Also according to the time you would bind.
Eg, with some investment instruments can point to a medium-high gain but only in long times, with others you have even a percentage of return anything if you want the convenience to get back at all times your capital.
Decide what you want to get rich level.
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Risk
How much are you willing to risk to achieve your goal?
Risk is the chance that you do not get i expected results, namely, that what earn the investment order is very different from what you expected when you have invested.
To risk, Furthermore, It can mean investing your capital with the danger that not only you can not obtain the hoped for gain, but you can even lose altogether your money.
Every investment has its own risk profile (more or less high) so it is important that you understand what is the your risk tolerance to make the right choice.
Determine what is the risk you're willing to face.
What is the right investment?
I want to tell you sincerely that they do not exist safe investments to 100%.
In principle, more investment is risky, the higher its yield and sometimes even its timing constraint, why do you have to "pay back" the most risk you run and the wider period of time in which your money is tied.
However I want to tell you something: this rule is not always applicable without distinction.
There are in fact investments that represent a more balanced mix time factor, return and risk.
I make you some examples to help orientate better in the choice.
If you just want protect yours money and are not interested in them increase, the ideal investment for you may be instruments as good e i postal savings O deposit accounts, that have a almost no risk, because they offer a very low gain, and a wide choice of various timing constraints.
Unlike, if aspire to a un very high yield and you're also willing to risk losing all your capital, you can opt for actions, with medium-long times, or forex, which has a high potentiality of profit in the short but also a very high risk.
If your primary purpose is instead to invest to get a constant gain over time, you can rely for example on long-term solutions such as blue chips (firmer equities) O mutual funds less risky.
but there is, in my opinion, only one form of investment which can make you reach any of three objectives: real estate.
that's why.
Real estate investments
First, the property is a real good, always required on the market, that lets you preserve your capital because it follows the 'inflation.
In fact, you can buy a house and sell it or rent it whenever you want with the certainty that will not lose its value and your money will not devalue.
Furthermore, properties allow you to grow your capital: uses a sum of money to buy a house and obtain a gain by sale or income generation.
If you choose to give the property for rent, in addition to the increase in your capital, you can ensure a 'constant input over time it based on the monthly rent.
When talking about investments sometimes do not think about the real estate market.
Yet you can do Affordable real estate investments, obtaining a high gain and with the guarantee of a good safety margin.
Think carefully about your goals and 3 criteria that I explained to you to have the ideas a little 'clearer about how to invest your money now in the right way.
We have chosen the real estate investments for their versatility and because we see in them the best value between time, return and risk.
If you think that real estate investing can do for you please read this Getting Started we have done for those who want to start ad invest in property.
