5 Tips To Start Investing Now!

How many people have you met who say, “I really wanted to start investing , but I have neither money nor time…”?

Many, isn’t it? Fortunately, this problem is easy to solve, and all you need is a little commitment to yourself.

Here are 5 tips on how to start investing right now!

Define your goals

To be able to do something, the most important thing is to have motivation, right?

Take a sheet of paper and a pen and start writing all the things you want to achieve in your life, after all, that’s what you’re investing for!

First, think about the horizon of a year, after 5, and increase until you reach your retirement. Whatever you want, but you don’t have the money to do it now, you should enter this list:

  • change car
  • travel to Canada at the end of the year
  • renovate your apartment
  • buy your own home
  • have a child
  • retire and live on the beach

Understand the different types of investment

Knowledge is power!

For this, it is important that you understand the different types of investments according to the risk that your money will run: conservative, moderate, and risky.

“Why would I invest in something risky?”

This is a question for you to answer. The riskier the investment, the greater the potential return it can give.

In general, risky investments should have a long-term perspective since they usually outperform the profitability of more conservative investments in long periods of time.

See what type of investment fits in each of the categories:

Conservative Investments: fixed income, savings, banks’ CDBs, funds indexed to the CDI

Moderate Investments:  funds that try to surpass the CDI profitability, real estate funds with good properties

Risky Investments: stocks, options, funds that seek to surpass the Ibovespa and real estate funds with not so good properties

Choose a stockbroker

Many people invest based on the recommendation of the bank manager. Unfortunately, bank managers receive commissions from the bank for each investment they manage to “sell” and therefore, do not always make an appropriate suggestion to the client.

To avoid falling into these traps, it is always good to have a second opinion.

Stockbrokers are investment-oriented institutions, and anyone can open an account with a broker in the same way that they open an account with a bank.

The vast majority of brokerage firms do not charge anything for opening accounts, and contrary to what many think, it is much cheaper to invest through a brokerage firm than through a bank.

Once you have an account open, you will have access to a series of investments, and your new stockbroker will help you choose which ones are right for you. 

Diversify your investments

Have you ever heard someone say, “don’t put all your eggs in one basket”?

In investments, this is very important: always try to choose diversified and different investments, so if one of them is not doing so well, the others will be.

You should not put all your money on the stock exchange, for example, although there are years when stocks do well, there are also years when stocks go bad.

The same goes for leaving all the money in savings, if you have no plans to use that money in the short term, investing in something riskier is a good idea for that money to grow more in the future.

There is the basic rule of 25%, which is basically to always have at least 25% of your money invested in riskier investments, as long as you don’t need that money in the coming months.

Be true to your goals

After starting to invest, it is normal for many people to get excited and forget what led them to invest in the first place.

As much as your risky investments are yielding a lot more return than the more conservative ones, don’t be tempted to put more than you owe in these investments.

As I said, there are phases when things are going well, and there are phases where things are going bad. Do not let these cycles hinder your goals and what you have determined in your investment strategy.

In the long run, the investor who does well is one who was faithful to his strategies and did not make decisions on impulse.

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