What’s The Point Of Putting Money Into It?
How do you feel about it? To achieve a number of goals, a company should invest its funds rather than “sleep” on a Livret A or securities account.
It’s not the only reason people invest, but these are the most common. Because of this, they are more reluctant than the average French person to put any of their savings into active investing. Households are cautious in the face of the current economic crisis and focus their efforts on risk-free savings products: 89 percent of French consumers say they have at least one financial product that they consider to be “low risk,” with a strong preference for the Livret A in this category. Life insurance and home savings are the next LDDS (PEL, CEL).
Of sure, they’re safe investments, but they’re still losing money. In light of the returns on regulated savings accounts, it is clear that we are on the verge of losing money. As a result, you risk losing your money if you play the security card (in a passbook or securities account). Inevitably, there will be a gap in the future.
How Can You Make The Most Of Your Money?
You must first take a look at your personal finances before you begin planning for your future investments with your banker. This is a crucial step in ensuring that you don’t end up investing money that you don’t have. Make a list of all of your income, expenses, and assets to get a better idea of where you are financially. By sketching two columns, you may accomplish this yourself. Make a list of your assets, and then your liabilities.
Money in bank accounts, credit cards, and passbooks.It includes all of your debts ranging from a mortgage to a consumer debt that is currently being repaid.Look at your annual expenses, including the cost of lodging (electricity, rent), local taxes (household, property), and business expenses (gasoline, tolls, training, and equipment), as well as the cost of leisure activities such as vacations and sporting events (vacation, travel, outing, etc.). An annual budget rather than a monthly one is preferable. This will give you an idea of your financial situation.
To invest, there is no one-size-fits-all approach.A person’s financial status, aspirations, level of risk tolerance, and other factors all have a role. There are, however, four essential issues that should be considered while choosing a sensible investment:
- Invest in a wide range of different assets.
- Take a look at the long term;
- Assuring timely payment is essential.
- Make a substantial investment.
- A diversified portfolio is a good idea.
Investing success relies on understanding this fundamental principle. There is a 25 percent loss if you invest the same sum of funds in four different companies but one of then goes bankrupt. It’s more risky to invest in only one industry.
Spreading your risk by investing in a number of different assets is a smart strategy. Although certain sector may see a lower return, this will be compensated either by outperformance of others.
The majority of investment goods have a life expectancy of more than ten, twenty, or even thirty years. Because the success of your project depends on the product’s longevity (also known as “maturity”), this is a criterion that should be examined very seriously when making an investment. In other words, you must align your financial goals with your product’s long-term vision.
Think long-term and you won’t have to worry about the little adjustments in your daily routines. It had little impact on our looooooooong financial goals even though i lose 5% of our portfolio.
Investing with a time horizon of less that five years is referred to as “prudent saving.” Due to product development and market value volatility, this situation necessitates less risk taking.
Is this an investment in real estate? This option is available for people who prefer the traditional Home Savings Account & Plan (CEL and PEL). There are numerous short-term investing options, including the Terminal Account (CAT), formulae funds (FAF), bonds, or even short-term term deposits (CDs). Resolve to pay your debts on time in an amount that is within your means. In the face with volatile markets, investors should stick to a consistent and moderate investment strategy.