Are you one of those who - with great sacrifice and baby steps - has managed to save some money even during Covid/Pandemic crazy times and have been able to save "cleanly"? If this is the case, you are one of the few who can save even during "not ideal" times shall we say! Today we will give you some ideas to invest and not lose money. But what do we mean by "save cleanly"? Let's explain:
Many people say they have some ability to save because they have been able to save money for say just 1 month. But their credit cards are still maxed out, their debts have grown and therefore the interests. In this case, those savings are probably not much compared to the debts. The genuine saving is the one that we manage to make from a surplus that we keep.
Accumulating money under the mattress should not be part of your goals, if you recognize yourself as an ambitious person. Therefore, and for your capital to grow, you have to invest. But where? How? The best and, to begin with, is doing it in the formal market. If someone appears with a fantastic business and promises zero risk, you will most likely lose your money. To avoid a bad experience, we recommend you invest in the formal financial market.
Buying certificates from a known bank can be a good option. Of course, keep in mind that interest rates will vary according to the market. The percentages of interest are usually between 1 and 2%, depending on the term to which the money is placed. If you choose a fixed term of 90 days, for example, and you have to withdraw your money before that period, then you will have to pay a fine.
If you have achieved a considerable sum and are willing to "freeze" your savings for a year or more, state bonds can be an attractive alternative. The interests may not be very high, but the risk is also very low. The State usually gives high guarantees, but we must also be aware that the stock market is vulnerable. One day an action is worth a lot and the next almost nothing.
In short, this idea means that you put your money that will be used as an investment fund. The fact that it is closed means that you leave the administration of that investment in the hands of experts. Naturally depending on the success of the investment will be the revenue you get.
Investing in property is always good business, but what is the limitation? That you have to have a good initial capital. It is proven that to make a good business and successfully face the interest that a bank will charge you for lending money, you need to cover at least half the price of the property. Then, the rent of said property will end up paying for that property alone.
Before closing a mortgage loan think about the possible "imponderables" that life can pose. The cases of losing a property due to not being able to pay the bank are very well known. What happens, for example, if the property remains without rent for a few months? Will I have to continue paying the fee to the bank?
A commercial business. Investing your savings in opening a restaurant or a clothing store, can be an excellent business or the way to the total loss of your savings. The risks in this type of investment are high due to the great vulnerability of commercial ventures. We all know some history of a restaurant that, for example, closed because it did not have enough customers, and another that started with 2 employees and ended up being a chain of more than 100 employees.
Faced with this option you have to do an exhaustive market study and be willing to work very hard from the beginning.
As you can see, the range of options is varied. In any case, and before investing the money, we recommend that you consult with professional people, that you compare and then invest later.