If you are a person who has adopted a good savings strategy and you already have a financial cushion that allows you to face any unforeseen event, it is a good idea to think about saving part of your savings with the aim of obtaining a financial return that allows you to live. better in the future.
Making savings compatible with investment is recommended once you enjoy a favorable economic condition for this, and it is advisable to invest approximately 30% of monthly savings. Although this strategy may lead to a reduction in savings capacity, the risk that will be assumed in the investment will end up increasing capital in the long term.
However, when investing you must be aware that it must be considered in the medium term, since a certain amount of time must pass until the expense made can be made profitable. Therefore, it is advisable to be very aware of each person’s personal situation and the objectives for two or three years, so that one can determine whether the most appropriate thing is to invest or save.
If you choose to invest, it is necessary to analyze where the greatest profitability is obtained, in addition to being able to diversify the money in different products with different levels of risk, so that possible losses are balanced with benefits.
What to invest the savings in?
Even if you do not have much savings, you can invest without taking great risks, although, before investing, it is important to analyze the way you want to do it and the appropriate products. Depending on the amount you can invest each month, it will be preferable to opt for one option or another, and a good option is to hire an investment advisor.
Some investment options are the following
Investment funds: They are a way of bringing the world of financial markets closer to small savers, as they allow small contributions and enjoy adjusted commissions. These funds are created with the money invested by their participants and are managed by professionals who determine the assets in which to invest. One of its advantages is that it provides diversification, which helps reduce risks. Foreign exchange market: Currency exchanges are carried out electronically with the intermediation of services offered by different platforms or brokers. Changes in the value of currencies can represent a notable business or investment opportunity. However, it is a highly volatile market, so it is only recommended for those who have some investment experience and extensive knowledge of the market. Remunerative accounts: Those who want to obtain returns on their savings without taking risks can opt for remunerated accounts, which provide a percentage of the total amount of money invested. With this type of account there is the possibility of depositing or withdrawing money whenever desired, making it an interesting route for those who may need high liquidity. Bank deposits: When an investment is made in a bank deposit, the money is deposited in the entity for a certain time that is established by contract. It also stipulates an exact interest rate, so the investment does not depend on the evolution of the markets or external indices. Once the end of the stipulated period is reached, the amount invested plus the interest generated by the deposit during that time will be recovered.
