How to become an investor while receiving a regular salary

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July 8, 2022, 18:39 | Business

Investment is a "game" which can bring you a considerable profit.

How to become an investor while receiving a regular salary

An investor is a person who competently uses various tools to increase income and build up his financial capital. Despite the fact that many people consider investments too complicated and confusing, everyone can become an investor and learn how to properly manage their money, informs Ukr.Media.

Moreover, if you currently have a bank deposit, then you can safely consider yourself an "investor" — because your money started working for you.

Investment is a strategic multi-income game that can bring you a considerable profit (if you understand its rules).

It is especially profitable, strangely enough, to invest during a crisis, because after a downturn in the economy (sooner or later, but inevitably) its rapid growth begins.

It is this turbulent time that can bring a person who knows how to handle money , very serious money. For an inexperienced investor, the crisis usually “takes away” invested money.

How to invest correctly? What should the “ideal” consist of? investment portfolio? Which investments should be avoided?

I would like to draw your attention to 3 very important points:

Each of your transactions with money should be invested in your "personal investment strategy"< /p>

This phrase sounds too clever, so let's explain its meaning.

Before investing money, you should outline a plan – a strategy for your investments – in very broad strokes.

From this point of view, investments are divided into 2 main stages:

1st stage — capital formation

It involves carrying out operations with an above-average risk (for example, buying shares), the purpose of which is to actively increase the amount of capital.

2nd stage — preservation of capital

Involves obtaining stable and regular income from the created capital (selling shares and buying bonds with the proceeds or placing them in a bank deposit).

Investment is a strict calculation and discipline

Investment is a strict calculation and discipline

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An investment strategy, developed taking into account the specifics of your financial situation, will allow you to avoid losses or a complete loss of money.

It is it that determines and at every moment of time prompts you – in which instruments and assets you should invest your money.

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Thanks to the strategy, you will always know exactly how much of your savings should be invested in stocks and bonds, how much in real estate and non-ferrous metals, how much money you will simply keep in the bank.

Important moment in the formation of an investment portfolio – you should not invest all your money in one instrument (no matter how efficient and highly profitable it may seem to you). your financial situation is stable and predictable.

Summary

  • Every person can become an investor (even those who receive an ordinary salary ).
  • Define your personal investment strategy iyu – it is she who will tell you which instruments (and in what ratio) will be included in your investment portfolio.

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