How long will the capital twice?
If you have saved the money and want extra income, investing is a better option.
But if you do not know what to
invest in, or you do not feel secure about their experience in this, here to introduce you some tips so that you can make the best advantage of your money.
As it doubles your money ..? RULE 72.
I explained to you when your bank is usually 72?
Almost certainly it would be a good way to lose customers.
It's very simple to calculate approximately how long you need to double the fixed assets.
It's as simple as dividing the number of 72 interest rate, which we get for our money.
The unit of time for the rate of return will be that applied to the result.
Some examples: if we get 4% 72/4 = 18, our savings will take 18 years to double, if we get 12% 72/12 = 6, our savings will take 6 years to double, if we get the 8% monthly 72/8 = 9 our savings will take 9 months to double it's important to understand that, in the long-term investment, double the profitability does not mean twice as much interest, but so much more.
Rule 72 may also be used in reverse to figure out what the interest rate will need to double our capital for the desired time.
For example, if I want to double my savings over 10 years: 72/10 = 7.2 is required return of 7% per annum.
Of course, this simple calculation does not account for taxes inherent in any investment or increase in the
price level.
Let us remember that inflation is a negative impact on profitability, we get to get real income, which means investments in our pockets, we must subtract the appropriate I.P.C. to profitability.
It is clear that the banks do not teach customers financially if the outside, no one will hire a deposit of 4 percent per year, as the ultimate return is negative, if we take into account taxes and inflation, investing is not something simple, so that the minimum amount that you have, all investments involve risks and who would lose their money.
But the way you invest, the risk can be a reduction to cease to be an obstacle for your investment.
So it is better to invest in what you know.
There are many places to invest our money (bags,
bank deposits, debt, real estate, bonds, etc.).
If you have a particular fondness for some, it is the ideal place to invest.
This is the best form to be fully aware of how things operate them.
But if they are not familiar with any type of investment, the solution is to let you
experts.
family member, friend or well-known, even you can seek help in the confidence of your
bank.
But do not let yourself be guided by the opinion of a stranger.
Another piece of advice for investors is always diversify.
If you put all your money in the sector is due entirely to it.
If, instead, you invest small amounts in various sectors have increased strength.
You should always keep an eye on your money. Even if the investment has a high margin of safety, you should always operate it.
Stay on the direction of the economy may give you some advantages when it comes to investing.
All investments means benefits, but can also lead to losses.
You should be aware of this fact and take it. If this time touched you lose, keep in mind that the next one will touch you to recover and earn money.
Do not despair, for this reason.
Investments usually have a period as long as you start to feel the benefits.
Have patience, but to keep you informed about your money and the economy at this time.
your investment will be safe with these tips.
In that invest to be a successful investment?
Why?
How?
Where?
With whom?
Why?
The answer to some of these questions, which we will discuss in the following paragraphs make us understand why we seek solutions to the investment.
The formal definition of economy says that it is "the difference between disposable income and consumption is carried out individuals, companies, public administration ... In the same way that the economy is part of the income, which is not intended for consumption, or a complementary part of the costs."
This is often seen in the media the results of surveys in which you ask the population if it preserves.
Usually, most of the response was not, and now I am convinced that the vast majority also says he does not save more, maybe not normal operating costs.
Well, even if they are in the situation we are saving is possible.
Saving is the most important investment decision.
And when I talk about the economy, I did not mean tickets meter 500 euros under the bed mattress.
Talk about responsible money management and effective manner, as well as the valuation of the opportunity to use, although it is always inclined to be aware of this.
Whenever we spend, when to consume or invest there are costs as far as possible.
I mean, when the economic use of our resources in something, assume that it does not do in the other, that we could give a different result.
In an infinite number of things.
Something as simple as this concept is reflected, it is usually held at high.
Talk about synergy good solution investments and savings you know, maybe it's the concept of overlap, but I think that you need to remove the side.
Good investment portfolio only be received is referred to as the concept and make them alone.
Conclusion: it is necessary to know the investment
market before to know where to invest.
investment decision without studying the
market is half good, other than that other options were valued.
Another point is important, even fundamental, it is to control the liquidity of your portfolio.
The language more clear: the ins and outs of capital.
It depends on what to see and may need investment that, while you give the lower profitability, liquidity have more opportunities, it is that it can be converted into cash in less time possible.
With the real estate "boom" before curing, said their "hooves" problem of many
investors who have been with the floors, have an interesting
price, but it can not sell.
Important controls maturities and liquidity, and the inputs and outputs of your investment portfolio, it firstly has to do before investing.
At that time, you may need the capital they invest?
Not all of these investments will have the same options.
Basic: knows where to invest, it is not because you have it, because most likely you are wrong, or not sleep quietly.
As the summary of the key and the key aspects of managing your investment decisions, which will be your portfolio, we should mention three concepts:
1 - Evaluation of existing investment opportunities and investment preferences.
2. The risk analysis of investment risk you are willing to accept.
Third knowledge of where you
invest.
Three fundamental aspects for creating a successful investment.
Thank you, and most importantly, "Invest your money and enjoy your winnings" of this information is at: [excerpts from the book "Tools for solving the crisis"]
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