We know the importance of saving, yet we are not all born with that “gift.” When you do not have the discipline to comply with a savings plan it is necessary to take other measures to force yourself to do it.
It is not necessary to talk about the importance of saving and investment, we already know the advantages of being protected and being able to face future problems or projects.
Here are some basic ideas to save.
Invest in fixed assets
What better way to save than to invest in assets than over time increase its value or at least keep itIt is important to choose correctly and know the market that will be bought and sold, otherwise there is a risk of losing money and maybe time.
This has some inconvenience:
- The time (and perhaps procedures) that are used to buy the asset.
- The risk of losses due to devaluation, theft, wear or natural disasters.
- The time spent on getting clients.
It should be considered the time in which the desired liquidity will be obtainedIt would not be wise to invest in a house if the savings will be needed in just a few weeks since the time to get customers to do and the purchase / sale procedures can last for months.
But, it also has its advantage:
- Losses from inflation are avoided (if the indicated asset is selected) and profits are most likely obtained.
- Avoid spending money before the planned date.
- The asset can be used in the meantime (in some cases it is not recommended).
- It has a back to unexpected urgent expenses.
Not much money is needed for this, there are many low / medium value objectives that can work very well while preserving or increasing its value over time.
Invest in financial assets
If you do not want to invest in fixed assets to avoid difficulty getting customers to recover liquidity another alternative are the investment funds. In general, banks offer their clients the opportunity to invest in terms that can range from months to years. There is also the public debt, many (if not all) governments give their citizens the opportunity to lend to the government and obtain a return (which is usually minimal).
The stock Exchange It is another option, although we know that depending on the behavior of the market there is a risk of losses or gains, therefore if this option is to be selected, the ideal is to consult with people trained to create an investment portfolio appropriate to the risk that is willing to assume.
Open a dollar account for example It can be a good alternative since since the savings are in another currency, there is less temptation to spend, for this it is important to make a detailed analysis of the future prospects of the currency before, you can consult the dollar price on this website to know the current exchange rate.
Do loans to other people is another alternative although very dangerous, there must be documentation that supports the transaction and a detailed analysis of the profile of the person to whom the loan will be made (see credit bureau, references, etc.). This has the advantage that if interest is charged, not only is it saved, but higher income is obtained.
Investing in financial assets has similar advantages and disadvantages with respect to fixed assets with some differences.
In this case there is no risk of losses due to rain and natural disasters, at least directly. Still still having the market risk, which as we know the current changing economy makes all assets increase or decrease their value constantly.
Which strategy do you prefer to save and why?