25.6 C
Tuesday, March 7, 2023

Do you have savings? Tips to make your money profitable

Establishing a strategy or understanding the products in which you are going to invest are two of the main tips to start putting your savings to work

Must read

Declan Foster
Declan Foster
I'm Declan Foster, and I write about information technology and politics. I'm certified in cybersecurity and networks.
- Advertisement -
Financial health is not just about keeping your money organized and cultivating the habit of saving; it is also about learning how to make the most of cash and produce profits. It is useless to have money saved if inflation soars, as has happened in 2022 (in September, it closed at 8.9%),
Because not only does the price of products and services increase, but it also causes a loss of value. That is why it is so important to discover safe alternatives to invest, put money to work, make it grow, and, in the process, deal with inflation.

Having a strategy is the key.

Before making your savings profitable, it is important to examine your financial and personal situation. Modifying habits, changing things we don’t like about how we manage money, or setting new goals are necessary aspects to consider before hiring investment products. We must also know how tolerant we are of taking risks.

Once it is clear how the financial situation is, it is time to draw up a plan and define a savings investment strategy. But where do you start?

💶 Set a roadmap

Considering that you already know clearly what your personal financial picture is, you must decide how much money you want to make profitable and for how long. For example, suppose you have 30,000 euros.

In that case, if you are not very experienced in investment in securities and have a conservative risk profile, it may be worth keeping the money in a 2-year fixed-term deposit. These are easy-to-understand financial products that today make a return of up to 2.70% APR (at 24 months) and guarantee an investment of up to 100,000 euros per person and entity.

💶 Don’t invest everything

You should never invest all the money saved and neither the one that will be needed in a short time. The other golden rule of finance is always to have an emergency fund available for any unforeseen event that may arise.

More Read: Indishellgp: who is he?

💶 Look for checking accounts that make money profitable

Another way to put money to work is to deposit it in interest-bearing accounts. This financial product is a sight account that pays interest on the money deposited. Two types of accounts coexist in the market that offers profitability:

  • On the one hand, remunerated current accounts for day-to-day use with which you can make transfers, pay for purchases with a card, receive your salary, etc.
  • On the other, savings accounts have practically the same characteristics as current accounts but are designed to promote savings.

Both allow available cash and offer up to 5% remuneration. Of course, some limit the maximum balance that they make profits.

💶 Study before investing in complex products

If you tolerate the risk of loss or want to Money Profitable in more complex products, the first thing to do is Study. In other words, understand what you will invest in, what risks you run, how volatile the product is, and how the market is doing. The worst mistake you can make is risking your life savings on a product you don’t understand.

Currently, some entities offer a service known as Robo advisors or automated investment managers. These tools help choose the best investment fund portfolios according to the client’s preferences and profiles. These robotic advisors evaluate risk tolerance and propose a diversified portfolio that suits the client’s goal.

Beware of commissions

It is of little use to put money to work if, in the end, you end up paying large sums as commissions. Before contracting a fixed-term deposit, a Robo advisor, or any other product, it is essential to read the small print carefully and discover the commissions that must be paid.

- Advertisement -

More articles


Comments are closed.

- Advertisement -
- Advertisement -

Latest article