Not everyone has enough money to make investments of high risk. Therefore, it is important that we know how to manage money to invest properly. And this advice goes for most investors. As it is well known, there is no need to spend money to invest that compromises our daily livelihood and our short-term goals. How to make the distribution correctly? Here we show with the help of these 8 steps:
Determines how much your income and your upcoming needs soar. In fact, you’ll be a surplus (if it is that you have come handling appropriately your personal finance). That surplus is known in the world of finance as the investing mass.
That investment mass deduced how much the amount of money you are willing to risk. Risk does not mean to lose, eye. Risking implies that capital should not be touched, say, within approximately 5 years (unless emergency).
That available venture capital, it establishes in percentage terms how much going to devote to equities (or mixed, for that matter, management will be similar).
What will you do with the other percentage of available venture capital? That money you will invest in fixed income. It will be a capital that will not touch, but that you’ll get a safe return (yes, looks for interests higher than the annual inflation rate).
That ratio between equity and bond must be inserted in your memory. Never forget that. Always handle yourself under the range that allows you to your first financial approach.
It may happen that enter a special capital suddenly. Who knows, an inheritance, won a car in a lottery, or a lottery jackpot. When that happens, you can rethink the proportion of your investment portfolio.
It’s time to choose. You must choose, first, the assets in which you invest your capital for fixed income. There are different options: investing in fixed deposits, government bonds, corporate bonds, certificates of deposits, make loans to individuals, etc…
Do not forget to equities. The offer is even greater. Mutual Funds, stocks and other investment funds are examples of this type of income.