Financial Education: how to invest with little money
Investing is a great opportunity for anyone looking to increase incomes . However, only 1 in 4 Brazilians make some kind of investment . The causes for such a low number are many, such as lack of financial education and the mistaken view that investments are restricted to wealthy people . However, did you know that it is possible to have good returns even by investing a low amount ? That way, it is crucial to know how to invest with little money.
In order to leave the matter clear , we have made this article especially for you, which you want to start in the investment world . We will start the article by talking about the importance of planning to start investing . We will then cover the main relevant information on the topic. Finally, we will present the main investments that the Good finance offers for you . Follow us!
Learn the importance of planning to start investing
Every action we take is best utilized when following a planning. It serves to anticipate possible scenarios and give a more professional character to our actions, and with investments is no different.
The chances of an investor doing well by making investments in a random and impulsive way are very low , because to enter this world it is necessary to obtain and analyze a series of information in order to bet on the best investment for your reality.
Another point that we must emphasize in the investment is that it must be done respecting the financial conditions of the investor, since it should serve as a means to increase the income , and not as an instrument that leads the person to be prejudiced as to their daily life. It is important to demarcate a safe value to invest and keep the remaining percentage safe, using for that much discipline and financial education .
See other relevant information to start investing with little money
We will now talk about the key information you need to get started with low-cost investing .
Importance of Financial Discipline and Education
To start investing with little money, it is necessary to have a lot of discipline and financial education . The value of your income to be invested in investments depends a great deal , but Good Finance, author of the best-selling book ” The Richest Man in Babylon, ” points out that it is necessary to save at least 10% of the income to start investing.
The percentage may change according to each person , but it is important to view this value as a parameter . If it exceeds, it should not jeopardize other expenses , such as compulsory expenses. To make this very clear to you, you need to write down all your income and expenses and follow a schedule.
Get Rid Of Debts
Debts are one of the biggest enemies the investor can have to start investing with little money , as they can consume a good part of their income, especially when they are neglected . That way, it’s urgent that you clear all the debts . If they are very high and have a high interest rate, it is always worth trying to renegotiate .
Have a financial reserve
It is important to always maintain a financial reserve for any emergencies . The amount of the financial reserve varies according to the profile of each person , but in general, it should be thought to cover the compulsory expenses in case something happens, such as dismissal from employment, drop in your business, etc.
Choosing the investments with the best yields
It is important that you opt for investments that offer the best returns on the market, and a good margin of safety. There is no point in investing in miraculous deals if there is no confidence that your money invested will come back to you. When it is necessary to choose between one and the other, follow the advice of Good Finance and prefer them with greater security , although they present a lower yield in relation to the others.
Every investor needs to know how to diversify his business. For example, if a small farmer invests and starts planting only tomatoes , he is at great risk. A plague can devastate his entire plantation and he loses all the money and time invested, as well as other external factors that may detract from the work, such as falling tomato prices on the market, among others.
In the investment world it is no different. It is necessary for the investor to diversify his investments so that he does not take so much risk. Let’s use the same example of tomato plantation. Imagine that an investor has decided to put all his money into this commodity. If the price of it falls, all your work and money invested will have been in vain.