Entrepreneurs Break
No Result
View All Result
Monday, January 30, 2023
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion
Entrepreneurs Break
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion
No Result
View All Result
Entrepreneurs Break
No Result
View All Result
Home Business

10 investment tips: how to invest your money the right way

by Abdullah Hussain
August 12, 2020
in Business
0
10 investment tips: how to invest your money the right way
158
SHARES
2k
VIEWS
Share on FacebookShare on Twitter

Table of Contents

  • Tip 1: Pay off debts first, then invest money 
  • Tip 2: Your risk increases with the size of the return
  • Which form of investment is a safe investment? 
  •  
  • Tip 3: A broad diversification of your investments protects against losses
  • Tip 4: patience often pays off
  • Tip 5: don’t invest more than 10% of your income
  • Tip 6: think of a hidden reserve
  • Tip 7: Pay attention to the additional costs of your investment
  • Tip 8: Those who invest early can make more profit
  • Tip 10: A robo-advisor can be useful

Tip 1: Pay off debts first, then invest money 

There are few high interest investments that allow a higher return than you pay interest on an existing loan . That is why it is usually worthwhile to first pay off existing debts and then invest your money. By the way: the overdraft facility is also a loan. Here, an average of almost 10% interest is due.

Tip 2: Your risk increases with the size of the return

Many investors want to achieve the highest possible profit. This is possible, for example, with stocks or funds. However, this also increases the risk. Because these securities can also crash and lose their value. Or to put it another way: with an investment with low profits, your risk decreases.

The following overview summarizes the forms of investment described above under the aspect of security.

Which form of investment is a safe investment? 

 

Safe investmentLess secure investment
Savings bookshares
Time deposit and overnight deposit accountFunds
Child accountsForeign currency account
ETFsDerivatives
Real estate and equity crowdfundingCertificates
Bonds and PfandbriefeReal assets such as art, antiques, musical instruments
Cooperative sharesInvest in FinTechs
goldBitcoins

 

Tip 3: A broad diversification of your investments protects against losses

For example, if you invest money in stocks and make losses in the process, you can offset this loss with gains from other investments. If you are one of those investors who want to take a medium risk, then dividing your investment into thirds is a good option. So around a third each in equity funds, fixed-term deposits and overnight money.

Tip 4: patience often pays off

There are frequent fluctuations, for example on the stock markets. If you wait and see, possible losses can be made up over the years.

Tip 5: don’t invest more than 10% of your income

With a gross income of € 4,000, that’s € 400. If the amount of money invested is too high, you will lack money for everyday life. There is a risk that you will no longer be able to meet your regular expenses.

Tip 6: think of a hidden reserve

There can be unforeseen expenses at any time. That is why experts recommend a reserve of around 3-6 months’ salary that you can reach at any time.

Tip 7: Pay attention to the additional costs of your investment

For some types of investment such as equity funds, administration costs are due. These can eat up part of your profit. But even low costs, such as account management fees , can reduce the profit on your investment. It is best to always keep an eye on these additional costs.

Tip 8: Those who invest early can make more profit

The subject of investments is often not yet important for young people. The motto is: First complete an apprenticeship or degree, then get started in your job and start a family. That’s why many don’t start investing their money until their late 30s or mid-40s. But then a few years have already been given away in which money invested can yield interest. Those who have the opportunity to invest at a young age are ahead of the curve, especially when it comes to long-term investments.

Tip 9: Take into account your specific life situation

Do you want children? Are you planning to build a house? Do you have a fixed-term employment contract? Depending on the situation you are in, other forms of investment are useful. If you are not sure how much your income will be in six months, it is risky to choose long-term investments.

Tip 10: A robo-advisor can be useful

How do I best invest my money? Finding the right investment strategy is difficult, especially for young and inexperienced investors. So-called robo-advisors , ie internet-based system robots, can help you. You do not determine your investment strategy personally; instead, based on specific questions, you are advised to invest in a robo-advisor such as easyfolio, whitebox or cashboard. However, as an investor, you have to pay fees.

  • Trending
  • Comments
  • Latest
Potential High Return Cryptocurrencies in 2021

Potential High Return Cryptocurrencies in 2021

January 22, 2023
How to Search, Share and Download Video TikTok

How to Search, Share and Download Video TikTok

April 25, 2022
Diamond Painting: The Ideal Craft Trending On Social Media

Diamond Painting: The Ideal Craft Trending On Social Media

September 13, 2022
5 Tips to Becoming a Good Actor- The Best Guide by Julian Brand

5 Tips to Becoming a Good Actor- The Best Guide by Julian Brand

January 9, 2022
Top 5 Safety Tips for your Family Road Trip

Top 5 Safety Tips for your Family Road Trip

2
Discover How to Get More Facebook Fans in 3 Weeks

Discover How to Get More Facebook Fans in 3 Weeks

1
Blockchain for Social Good

Blockchain for Social Good: Transparency and Accountability is Key

1
What is TikTok? Lets find out more about the app of the moment

What is TikTok? Lets find out more about the app of the moment

0
Air India Star Alliance 4.5m

All About Air India Star Alliance 4.5m

January 30, 2023
Mastering Reverse Logistics: Understanding the 5 Key Elements

Mastering Reverse Logistics: Understanding the 5 Key Elements

January 29, 2023
AI Content Generation Services That Will Supercharge Your Content Strategy

3 AI Content Generation Services That Will Supercharge Your Content Strategy

January 29, 2023
How Sesteel Is Pushing the Boundaries of Structural Steelwork

How Sesteel Is Pushing the Boundaries of Structural Steelwork?

January 29, 2023
Entrepreneurs Break

Entrepreneurs Break is mostly focus on Business, Entertainment, Lifestyle, Health, News, and many more articles.

Contact: [email protected]

Note: We are not related or affiliated with entrepreneur.com or any Entrepreneur media.

© 2022 - Entrepreneurs Break

No Result
View All Result
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion

© 2022 - Entrepreneurs Break

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In