How to start investing and maximizing your profits

When someone says “investing”, we often imagine a Wall Street broker sitting in front of computers filled with numbers and charts we don’t understand. However, investing is more accessible than you’d think.

Today there are many tools and resources available to start investing. In fact, if you have a 401k, you’re already investing! Want to venture into the world of investments? We’ll explain how to make your money work for you.

Growing your money could be one of your main goals when investing. For example, if you choose or decide to set aside some of your money hoping to obtain medium or long-term benefits, that’s investing in action!

To achieve the desired results, you must define what is your goal and consider the time it could take to reach it.

Furthermore, if you’re thinking about how to increase your capital or income, you could explore options such as investment accounts.

There are several investment vehicles. The most common are:

• Stocks: When you buy stocks, you acquire a small portion of a company. Profits are generated when the company’s value increases or when dividends are distributed. Investing in stocks entails a greater risk than other types of investments because a stock’s behavior is far more fluctuating or volatile than that of other types of investments and your money could decrease as well.
• Bonds: When you buy a bond, you are lending money to a government or corporation so they can use it for different purposes, for example, finance a project. Bonds are considered a less risky investment when compared to stocks, but the returns could be lower and like any other investment, there’s the risk of losing the principal invested.
• Mutualfunds: These are investment companies that invest your money along with the money of several investors in stocks, bonds or other assets, all within the same pool, where, depending on the type of company or product, profits could be in dividend payment or an increase in value of the money invested. Just like stocks and bonds, your money could decrease, and you could lose the principal invested.

No matter your goal, the time you need or the type of investment you choose, it’s always important to consider the level of risk involved.

Key points to consider when determining the level of risk you’re willing to accept:

• Employment status: If you have a stable income, you may be able to take on more risk.
• Savings: If you have a consistent savings budget, you can take some of that money and invest.
• Debt: Don’t stop paying your debts to invest.
• Expenses: If you have many monthly expenses, it’s better to invest more conservatively.
• Age: Generally, the earlier you start investing, the more risk you can tolerate, as you may have more opportunities to recover.
• Emotional state: Not all of us can manage risks. If investing causes anxiety or you don’t feel ready to make financial decisions, it’s best to seek guidance from a professional.

Remember that your risk tolerance can change over time. Reviewing your tolerance at least every year can help keep your investments on track. If you think you need help, consider using the services of a financial advisor who specializes in investments.

Dare to invest and continue building your path to financial prosperity. Use this guide to dive into the world of investments without feeling overwhelmed.

Remember, the power to secure your future is in your hands.