Want to invest, but don’t know where to start? In this article we share seven steps you should follow for a successful investment strategy.
Step 1: Before investing, start by making a budget
Before investing, it is recommended to know what you earn, what you spend and what amount you want to allocate to savings and investment.
Step 2: Build an emergency fund
Regardless of your profile as an investor, you must guarantee an emergency fund. This reserve must correspond to your fixed expenses for 3 to 12 months. If the risk of losing your income (or part of it) is low, you can only save the equivalent of three months of expenses, but if the risk is high, it is better to save the equivalent of 12 months.
Step 3: Define your investment goals
If your goal is to save for a long vacation, it is recommended to invest in low-risk products. On the other hand, if you’re saving for retirement, you might consider taking on some level of risk.
Step 4: Know yourself as an investor
Before investing, it is essential to define your profile as an investor, as this decision influences both the strategy and the selection of the types of assets that will make up your investment portfolio.
Step 5: Choose the vehicle to start investing
When investing, it is essential to choose the type of bank that best meets your needs. You can opt for traditional banks, which offer products aimed at the general public, or specialized investment banks, which offer more personalized options.
Step 6: Decide what you want to invest in and diversify
At this stage, you must choose the assets in which you will invest your money, considering the products that make the most sense for your strategy. Don’t forget that, as a rule, the greater the promise of return, the greater the associated risk. And there is a rule that you must always follow in your strategy: diversify your investments.
Step 7: Be patient
In an investment strategy you have to be patient, as you need to give investments time so that the return is identifiable.
The Brasil & Ávila team is ready to analyze your financial situation and help you identify the most suitable investment product, considering your profile and financial objectives.