Saving is something that we have been taught or learned from children, it is important to save some money for any mishap. However, it is interesting to see how not all the people who save, invest, and although the savings are good, there are some factors (such as inflation) that make our savings in the end, are less than what we had at first, is That is why in the short, medium and long term it is important to invest, and this is a possibility to think about our retirement in the future.
Many times people believe that investments are only for entrepreneurs, nowadays the trends and financial possibilities have diversified to such a degree that it is possible to start investing money with up to two thousand five hundred pesos saved. This was impossible before, but with technology, the possibilities of financing, investing and lending have increased radically.
Now investing is always better, but there are times when you have to be a little careful when doing it, that’s why it’s important not to do this:
- To aspire to great returns with minimal risks: It must be taken into account that a prudent investment with little risk is very stable, but not necessarily lucrative. As well, know that big profits can happen from considerable risks. We have to ask ourselves this question when investing. What kind of investment do I want to make? And at what level of risk am I willing to invest ?, whether conservative, moderate or aggressive.
- Invest all our savings without preventing economic mishaps: It is important not to bet all our money without considering unforeseen economic needs in the near future. In most investments, the money that is invested is not available to us for some time. Take this into account when deciding how much to invest. Consider investing the amount you do not need in the short term.
- Investing in something that we do not know or do not understand: It is essential to be informed about the market we are targeting and how it is positioned in the current economy. To be informed is to give certainty and criteria to our money and investment. If we know that it costs a lot of work to save, why give it to something that we do not know well?
- Do not diversify: The purpose of diversifying is to completely reduce the risk that investments have as well as to achieve the maximum possible return on investment. As it is said colloquially “not having all the eggs in one basket” is exactly what the diversification in investments refers to.
- Do not consider taxes: From the profits of our investments we also have to consider tax obligations. In case there are some losses, we can deduct them but only from our profits, therefore, only after fulfilling the fiscal obligations can we take into account the true profitability of our investments.