How to start investing is a very important question if you want to change your life this year or in the future. After all, you won’t see your money grow until you invest it.

Many people still believe that entering the financial market requires a lot of money.

In fact, this is just a myth because you can invest with little money. From today you can start investing in Treasury Direct for around $30.

You don’t need a lot of money to invest, but you also don’t need to invest 100 reais at once because it won’t be profitable.

The most important thing is to maintain the frequency of your investments.

Furthermore, financial markets offer assets aimed at all target groups, from beginner investors to experienced investors.

So now is the time to put excuses aside and get this dream off the ground.

The first tip for starting to invest: the sooner you start, the more assets you will have in the future.

And now could be a great time to start investing and watch your wealth grow.

In this article, we will tell you everything you need to know to start investing effectively and safely today.

Why should you invest your money in 2023?

We all have goals and dreams.

Most of them cost money to access. For example, buying a house, going on vacation, changing your smartphone, retiring, etc.

But saving and saving money is not enough because inflation is one of your biggest enemies. This causes the value or purchasing power of money to decrease over time.

So $50.00 today buys less than $50.00 bought 10 years ago. Therefore, it takes a long time to achieve the long-awaited goal.

In fact, investing can be seen as something you need to increase your wealth. With them you will receive income from the amount invested.

Remember, with the right assets, you can earn real returns – returns above inflation. This way, you can reach your goal in less time than saving money alone.

It can also form solid assets in the medium and long term. If so, now is the time to start investing!

How to Start Investing

Once you understand the importance of investing, all you need to do is get started. But what should I do? This is a common question asked by those who want to enter the world of investments.

If this is yours, stay with us!

We’ve put together 7 perfect tips to help you get started on this project today.

1 – Establish your goals

Before you start investing, you need to figure out why you want to grow your money.

For example, this could be starting a business, becoming financially independent, buying a new house or participating in an exchange program. They understand the concept of the importance of employment.

Therefore, it is important to remember how much money you want to have in the future and why you should save. Experts recommend setting five goals and breaking them down into specific time frames to feel in control and motivated.

That is, in the short, medium and long term.

2 – Determine the amount to be invested

Once you identify your goals, you need to evaluate the value of each goal.

This research is necessary to determine the investment value and investment period. For example, you want to buy a property worth $200,000 in 20 years, and to do so you will need to invest approximately $834.00 per month.

Remember, you can invest all at once or monthly. The most important thing is that it fits within your budget and achieves your goals.

Therefore, it is recommended to continue with financial planning. This will help you understand your financial situation and see where you can improve.

It also lets you know how much money you can invest.

3 – Know the types of investments

There are basically two types of investments: fixed income and variable income.

The first consists of providing money to public or private security, that is, to institutions. In return you will receive a return fee, which can be defined in advance or later and is defined at the time of purchase.

A predetermined interest rate is fixed income. For example, 6% per year.

You will continue to receive the same payment until maturity, regardless of market conditions. Subsequently, the pre-fixed interest rate is linked to economic indicators such as CDI, IPCA and Selic interest rates.

For example, there is an investment that pays 120% of the CDI. Therefore, returns may vary depending on the performance of the index.

As it increases, returns increase and vice versa. Fixed income investments:

• Treasury Direct
• CBD
• LCI/LCA
• CRI/CRA
• L.C.
• Debentures
• Investment Funds.

Variable income includes investments in the stock market. They didn’t come fixed. This means that past profits are no guarantee of future returns. The market changes every day. In short, it reflects investors’ expectations regarding companies and the country. The stock market reacts to news published in the media, corporate balance sheets and political results. It goes without saying that external scenarios can also have an impact. So you can get 100% or 0% returns. There is no way to predict. Therefore, the secret is to make the right choice and invest in education.

Variable income investments include:

• Actions
• Futures contracts
• Commodities
• Options
• Real Estate Investment Funds (REIF)
• Exchange Traded Funds (ETFs)
• COE

4 – Know your investor profile

To know which applications are best suited to start investing, it is essential to know your investor profile.

It is a simple and practical test in which you will know your risk tolerance.

Basically, there are three types of profile:

• Conservative
• Moderate
• Aggressive or bold

5 – Look for a financial institution

To start investing, you need to have an account at a financial institution.

Always prioritize reliable stock brokers.

Banks have few products available and offer unattractive profitability rates.

6 – Open your account

After choosing your broker, you need to create your account. Just enter your personal details, create a login and password.

Now, transfer the money intended to start investing from your bank account to the brokerage account through a TED of the same ownership.

In a few minutes, the amount will be available for use.

7 – Choose your investments

Now is the time to achieve your goals. Start investing in paper.

Now let’s get to the best part: deciding where to invest your money.

To do this, follow the previous steps and check the following aspects:

• Application deadline
• Initial contribution
• Risks involved

The ideal is to set aside a moment in your day to calmly decide what you are going to invest in.

It is a complete tool for you to simulate the financial applications you are interested in and define the best one according to your objectives.

Have you found the perfect investment for you yet? Then, set the values and click Buy.

From now on, just let your money work for you.

Conclusion

Knowing how to start investing is an important step in anyone’s life.

From there, you stop earning and saving money and start earning it. Investing acts as a bridge between your goals. Depending on your choice, your route may be faster or more efficient. With so many possible applications, doubts are common. That’s why you need to know your investor profile, inform yourself and define your objectives. To start investing, we recommend that you prioritize investments in securities such as Tesouro Direto, CDB and LCI.

However, it is important to remember that high returns over time are only possible with variable income, especially shares. So now might be the right time to enter the market.

You need to be educated before you start investing. Alternatives include investing in books and films.