Knowing Where And How To Invest Your Money

Where and how to invest your money

We all know that 2020 started badly and ended with a lot of uncertainties. I was not ready either. But I have good news for you: it’s not too late to make it interesting. What if you made 2021 the year of investing? I reveal to you all my secrets on the best financial investments. Starting with 5 tips for investing your money.

Tip 1: Understand before you act

In investing, you cannot do just anything. If you go headlong into all the potential financial investments that you see, on the one hand, you will scatter and on the other hand, you will screw up. Before making any decision, check with financial investment professionals.

They will guide you on the right tracks according to your profile and your heritage. Then, take an interest in the range of possibilities available to you: read, study a little, try to understand how it all works. You don’t need a degree, just a little common sense.

Tip 2: Diversify your investments

What do you think will happen if you put everything you own into buying a single share? If it collapses, you lose everything. But since you’re smart, you’re not going to do that. Instead, you will diversify your investments to minimize the risk. No investment is ever 100% secure. So think more broadly: insurance, savings, real estate, bonds. Like that, a source of profit lost, then found.

Tip 3: Get to know yourself

It’s not about going to the psychologist or doing meditation, it’s about knowing your values. Are you more of the shark type looking for a profitable, prudent, or even ethical investment? Are you in urgent need of liquidity or are you ready to invest for the very long term? Because depending on your risk profile, the extent of your assets, and your objective, the investments will not be the same.

Tip 4: Get started as early as possible

When to start investing, The answer is: now! The sooner you start, the longer your savings will last, and therefore the more your money will grow. So I know very well, when you’re young, you have other things to do than get into the stock market or real estate. But think about it, it can give you a tidy sum by the time you retire. For the less young forty or fifty, do not panic, the investment is nonetheless interesting. So turn your back on prejudices and get started in life insurance or retirement savings plans.

Tip 5: Keep precautionary savings

The investment is great, but you always have to remember to keep a woolen sock. Yep, what will you do if your business doesn’t take off right away or if all your investments go wrong? It would be a nerd but unlikely if you followed tip 3. The secret is to keep the equivalent of 6 months or even a year of cash warm, in a savings book for example. Not a very profitable investment, of course, but still better than the current account and besides, you can get your money back as you see fit. And then, it’s never a tiny part of your fortune. The rest will be well-invested thanks to the best investments of 2021.

Now to understand where exactly to put your money in 2021 to make a profit as I told you, there is no right answer since it all depends on your profile. That said, nothing prevents me from making a non-exhaustive list of the most recommended investments this year.

1. Stock and Bonds

Here are scary words! And yet, the financial markets are more accessible than you think. With a little practice and good advice, it is easy to achieve more than adequate returns. Of course, stocks are among the riskiest financial investments, but how do you make your money grow? By taking risks, let’s be honest. In 2019, French equities are number 1 in terms of yield with more than 20% yield. However, if you are a little cautious, instead of fall back on other less risky investments.

2. Rental investment

I honestly believe that rental investment is one of the best ways to grow your money. The principle is simple: you buy a house, apartments, garages, or even commercial premises and you put them up for rent. Very quickly, the rents collected will exceed your loan and you will earn money. The advantage is that if you can no longer manage the rental, you just have to resell them.

4. Life insurance

I have told you this over and over again, but a wise man is worth two. Life insurance is the preferred investment of many mid-age and people in general and rightly so, since, depending on the management method and the supports you choose, you will be able to hit the jackpot. In terms of taxation, it is probably the most interesting investment, especially if you want to pass on your wealth. Of course, the longer the investment, the more you will reap in the end. Let this not prevent you from recovering your capital, if you need it.

5. Savings plans

Whether it is a company savings plan or a retirement savings plan, both are practical and tax-efficient investment. This is the opportunity to make your money work since when it is closed, you will not only get your savings back but also interest.

6. Business participation

I was telling you about it just now, buying shares in SMEs or innovative companies can save you a lot of money if the activity takes off. How do you think Norman and Cyprien became millionaires? Well, obviously there is always the risk of society falling apart, but what would life be worth without a bit of danger?

7. SRI

Socially Responsible Investment brings together all types of ethical investments, that is to say, for environmental, social, or governance purposes. These can be traditional or financial savings products PER, life insurance, shares, etc. Basically, you are participating in the economic growth of a business, while having a positive impact on the world. That is the demand of the people.