blog image 24.09.2020

"Money must work." How to start investing with minimal risks

"Money must work." How to start investing with minimal risks

"Money must work" - everyone knows this saying. Imagine how great it would be if money "came" to us even at night, when we are asleep.

But, in fact, this is quite real, if you correctly put them "in the box". height».

In this article, we will talk about how to learn how to increase your money competently (even if it seems that it is prohibitively difficult, and that it is impossible in your financial situation).

The topic of investment has grown a huge number of tall tales and gossipthat frighten a novice investor.

That is why it is extremely difficult for a novice to independently figure out where the truth is here, and where the fiction is; which are the facts.strategies work and bring income, but which lead only to the loss of invested money.

Let's analyze the most important ones common myths about investing:

1) you can't predict what will happen to your investments. Today you have everything, tomorrow-nothing

It is not true.

Reasonable investors adhere to a well-developed plan for investing money that brings stable, transparent and most importantly the main thing is a predictable income.

By and large, the so-called "passive income" exists in net form only in investments — for example, in the form of coupon income from bonds (in particular OFZ). 

2) the Stock market is a casino and easy money

Often the game is played on the stock exchange it is perceived as a game of excitement, HYIP or roulette, where you can "break a big jackpot", if luck is on your side.

But this is not quite true:

  • Yes, it is better for inexperienced investors not to meddle in the exchange (because just like in any other business, you need the appropriate knowledge and skills).
  • Investments in securities — this is a planned, serious activity to create your own financial capital (which will become a source of passive income).

3) Investment is extremely difficult

In order to start investing money, it is enough to master the basic basics of investing and get acquainted with basic tools.

If you translate it to a household example: in order to prepare delicious dishes, you do not have to become a chef of the coolest restaurant of author's cuisine.

Feed your family, and very well, you can have a pot, a recipe book and fresh products.

Of course, there is always a risk of losing money (because the higher the expected return, the higher the risk).

But is this something to be afraid of?

Learn how to manage risks and make it a rule to always distribute your investments across different assets and instruments (which is called a smart word «diversification»). 

4) to start investing, you need to invest large amounts of money

You can buy the first securities for just 100 rubles. This is the minimum entry threshold for some mutual funds.

The main thing is not the amount. The most important thing for a reliable formation of your own financial capital is the regularity of investment and the duration of your money's operation.

I myself started at the time with an investment of 1000 rubles per month (and I will say frankly that if I did not do this, then I would not now have a significant passive income from investments').

PRACTICE:

1) Start keeping track of your income and expenses. This way you will understand where the money is going and be able to optimize your spending.

2) spend 10-20% of your salary every month on investing (regularly buying foreign currency, stocks, and other financial assets tooling).

Pre-accumulate a "safety cushion" — this is a certain amount of money that can help you out at any time when it is necessary.

3) Study, study specialized literature, improve your professional qualities.

The masters of their craft are always in touch price. This way you can increase your income level and spend more money on investments.

ADDITIONALLY:

1) Read my article "Where should I not invest my money? TOP 3 most dangerous places for money".

2) Read my article " which Ones skills are needed to become rich».

The author of the article is Alexander Evstegneev

I WILL BE GRATEFUL FOR YOUR LIKES AND REPOSTS OF THIS ARTICLE

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