Seeking guidance on how to investing money is essential for any person, venture or business?

We can even mention that it is quite common for people, regardless of the work they are doing, to seek financial stability, but with some concern about having to carry debts and face high interest rates based on loans to obtain them.

For entrepreneurs out there, knowing the right way to manage money in a healthy way is even more crucial. That’s if we take into account all the uncertainties that a business of your own can entail, especially for those who are just starting in this environment.

First, we must take into account that when we leave our money idle, with easy access and without a specific destination, the tendency to spend it in an undisciplined way is quite high.

For this reason, we will share in this post some basic guidelines so that you can invest your money and have a guarantee that when you need it, you will have this amount at your disposal and with much more income.

How important is investing money today?

Some types of investments end up allowing us to allocate a small amount of our earnings, while others require more significant amounts so that we can start the process of saving.

The process of withdrawing investments is also quite variable. In this way, there are investments in which it is possible to withdraw the amount invested at any time, as is the case with savings accounts.

On the other hand, there are other types of investments where you will only be able to see your money again available for withdrawal after a period of time (a matter of six months to a year).

If you do market research, you will notice that there are numerous alternatives to invest money that are available to the most varied entrepreneurial profiles.

It doesn’t matter if you are a more prudent, insecure, or more daring entrepreneur, you will certainly find ways to invest money that satisfy you.

However, we never advise you to invest all the money you have, even a small amount. Putting it all in one investment can pose a big risk.

Considering that the financial market is constantly changing, especially in the most fragile economies, if you happen to put all your money in one place, if your investment drops, you can suffer heavy losses.

However, when you diversify your investments, in addition to ensuring that financial resources can multiply, you can also avoid significant losses, if there is a negative evaluation in one of the markets, for example.

How much money should I invest?

First, it is worth mentioning that there is no suitable minimum/maximum amount to invest your money. The amount will depend a lot on the type of investment and also on your entrepreneurial profile.

Although this is variable, there are some calculations you can do to know how to reach your financial goal. See how to do it below:

• To get started, you should keep a record of all your fixed expenses, such as financing, rent, electricity bills, health insurance, water, telephone, internet, monthly bills, study taxes, among other fees.
• If, in addition to personal expenses, you have a company, it is also important to include the expenses that are generated by your venture, such as space rental costs, production costs, payment of suppliers, employees, etc.
• It is also important to keep a record of the amount of cash flow that you have and that is necessary for your business to remain in full operation, even if it is not providing you with as much income.
• So that you can carry out this type of control, you can create a spreadsheet in Google Drive or Excel to easily visualize your finances and have a more accurate idea of ​​what you are doing with your money.

After making all the records of your monthly expenses, it is also important to consider whether you can reserve at least 10% of your monthly income for investments.

As we pointed out earlier, it is not mandatory that this percentage be used, but if it is not possible to make an investment with a fixed amount every month, it will be much easier to achieve expressive results over 1 year, for example.

Where should I invest my money?

There are several types of investments that can be made in the financial market. In this way, we will present what are the main formats that currently exist, explain the difference between them.

As we analyze the advantages and disadvantages of each of the investment models, try to also observe which ones best suit the goals we have established for your venture.

Savings account

A savings account is one of the most common forms of investment, probably because it is available at any financial institution.

However, it ended up losing ground in the face of other options that, despite being a little more complex, end up being profitable for the investor.

To get started, all you need to do is look for a financial institution with the documentation required to open a savings account.

Advantages of saving Money

• You will be able to obtain daily liquidity, being able to withdraw these amounts at any time.
• In investment accounts we are exempt from income tax.
• It is a much safer way to invest your money, as in many countries they offer protection of funds for individuals.

Disadvantages of Savings Accounts

• Depending on the country, incomes can be very low;
• Even if the customer can make withdrawals from his account, the earnings are only computed if he respects the minimum time of earnings after the deposit.
• If you are a person who faces some difficulty in saving, an interesting resource can be to make investments in daily liquidity, as this method encourages the withdrawal of values ​​in advance, without harming your income.

Term deposit

This investment option is a type of security that is issued by banking institutions with the purpose of raising money to finance their activities with investments and loans to third parties.

By this, we mean that this type of investment involves depositing within a certain period. That is, you lend money to the bank and receive interest rates in exchange for this type of operation.

In most cases, the longer the investment period, the greater the appreciation offered by the bank.

Advantages of term deposit

• You will be able to enjoy greater profitability compared to savings accounts.
• In many countries, this type of investment is protected by credit guarantee funds.
• The investment has shorter grace periods than other existing types of investment. This will allow you to withdraw money after a short period of time.

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