Tips

7 tips on how to invest your savings

Have you been saving money for some time, but would you like it to yield more? So see here tips on how and where to invest your savings to make your dreams come true faster!

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Learn incredible tips on how to invest your savings

pessoa colocando moedas em um porquinho rosa
Discover some tips on how to invest your savings. Source: Canva.

With our tips on how to invest your savings, you can make good investments and see your money multiply! After all, we know that the financial world is complex.

Furthermore, we also understand that it is not possible to simply let your money sit idle. So today we came to help! This way, you will be able to save money for the future and different projects.

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Direct Social Security: what is it? Look here!

Do you know what Direct Social Security is? Be aware that it represents an important channel for Portuguese citizens. Keep reading and learn more about how it works and how it can help you!

In fact, making investments is a way of not allowing inflation to eat your money. So, keep reading and understand some tips that will help you invest your savings and make your money work for you.

1. Plan

Planning is essential when making investments. After all, you need to know what you expect when investing, how long you plan to wait and what your financial conditions are.

Therefore, it is important that you ask some questions:

  • How much money do you want to invest?
  • How much do you intend to earn from the investment?
  • How long do you intend to keep the investment?
  • Are you able to monitor your investments and dedicate yourself to them?

These questions will provide you with some guidance that will be important for outlining your investor profile and choosing what types of investments to make.

2. Study about investments

Before you start investing your savings, it is important that you study investments. This way you can better understand how each of the available modalities works.

That is, the risks it offers, the target audience and the promised benefits. Furthermore, by studying investments you gain a better understanding of the financial market and its changes.

To do this, follow the financial market, look for magazines and articles that talk about the subject and follow experts on social networks, such as short videos or live streams, for example.

However, be careful with false experts who promise worlds and funds without having any qualifications in the financial market, okay? Apply what you learn to your reality!

3. Have an emergency fund

Another tip for investing your savings with quality and safety is not to invest everything you have left!

After all, it is essential that you have a reserve available for emergencies. After all, many investments do not allow redemption at any time or impose fines for doing so.

Therefore, if you experience an emergency without having a reserve available, you will probably suffer financial losses or find yourself in trouble.

Therefore, it is important that you save part of your savings for reserve purposes. The rest, then, goes to investments.

As for that, don't worry! There are different types of investments, some of which don't ask for more than a few tens of Euros for you to participate.

4. Diversify your investments

homem de gravata segurando um pote de vidro com várias moedas dentro
Diversify your investments so your money goes further. Source: Canva.

If you have a considerable amount to invest, don't bet all your chips in one place. In other words: diversify your investments and choose different modalities for them.

This reduces the risk of losing money, as well as allowing you to act on several fronts at once. Therefore, if one investment does not work out, the other can make up for it.

5. Take out insurance for your investments

Many financial institutions offer investment insurance. In other words, they promise to cover values in case of losses.

However, note that this can be a great source of security when investing. Therefore, find out which banks and insurance companies have these options.

When doing so, pay attention to the premium (the amount you will pay to take out the insurance), the coverage conditions, the waiting period and other relevant information.

With this, you can make the best choice and invest with fewer worries, protecting your finances.

6. Seek help from experts to make your investments

A great tip for investing your savings is to seek help from experts. Today there are several banks, financial institutions and administrators that provide consultancy.

Thus, they help you analyze your investor profile, the values you have available and the best options in the short, medium and long term.

Many manage your investments or give you access to tools where you can monitor and direct them, as well as answer questions.

7. Learn about different types of investments

Finally, to invest your savings it is important that you know the main options available on the market. Discover some of them below.

Investment Funds

These are joint investments managed by a manager. In this case, several investors pool their savings. To do this, they buy investment shares in funds that can be open-ended, closed-ended or mixed.

The values gathered are then used in various types of investments. This means they diversify, which increases the chances of profits for everyone.

In addition, there is management by an experienced finance specialist, who manages the values without you having to worry.

Then, the profits from the investments are divided between the investors, according to the number of shares each has.

Term deposits

This is another way to invest your savings safely and with low risks. In this case, you make scheduled deposits into a fund.

It's a great option for saving money for a future project. However, it does not have great profitability, especially due to the low risk (which can also be an advantage).

The caution here refers to the possibility of inflation being higher than the interest paid by the financial institution on its term deposits. In this case, your money may decrease, not increase.

Retirement Savings Plans (PPR)

PPRs are options for investing your savings in the medium or long term. They allow you to save gradually.

This modality requires subscription and periodic reinforcements that guarantee that upon retirement the old-age pension will have a financial addition.

Actions

Shares are also investment alternatives for your savings. However, they have more risks than the previous options, so if you are a beginner, you need to be careful.

Here you buy shares that correspond to portions of the share capital of a joint-stock company. Finally, with the appreciation of the company or shares, you gain, while the depreciation leads to a loss of money.

Furthermore, if you want to know a little more about investments, read the text below! In it, we discuss whether it is still worth investing in cryptocurrencies, such as bitcoin and others. Access!

criptomoedas em fundo preto e escuro

Is it worth investing in cryptocurrency? Don't decide before reading!

Is it worth investing in cryptocurrencies? They are the talk of the town and have already attracted many investors. But are they really all that? Find out today!

About the author  /  Aline Augusto

My name is Aline Mesquita, I'm a writer here on the blog, where I write about finance in general, as well as other topics. I have been working with content creation for 10 years, with a postgraduate degree in Project Management, with expertise in SEO practices, in addition to studying finance, market trends and cryptocurrencies.

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