In the course of our life, and especially in the business field, we are presented with many investment opportunities, however, how can we make the best decision? Here we will have 5 points to take into account to make this investment in the best way and waiting for the best result:
Have a clear goal
Conceptualize the goal and the era it will take to reach it. Exemplifying a goal could be: «My goal is to invest to have money to buy a home in 5 years.»
Ideally, write down specific goals to:
Short term: up to 3 months.
Medium term: up to 3 years.
Long term: more than 3 years.
The goals and deadlines are diverse and we must review them from time to time to see if we are well directed towards them, with the investments we have chosen.
Have a clear investment objective
Having an investment objective will let you know in what type of devices to invest better or what types of investments to make. It is essential to choose different types, to diversify our investment portfolio, keeping in mind our own goals.
- Maintain the cost of money (do not lose due to inflation).
- Earn an income or increase profits. Here we have the possibility of naming investments in activities, as it could also be buying an apartment to rent it.
How much danger you can or want to accept?
The safer the investment, the lower the productivity will be, the benefit that you will obtain. Depending on your goals, you have to keep in mind the danger that you are going to accept for all the investments you make.
If it’s a long-term goal, you might be willing to make a more dangerous investment, since you won’t need the money immediately.
What are you going to compare the returns with?
To know if you are succeeding or losing with an investment, you have to be clear with what you are going to compare its performance.
It could be that for one type of investment, you want to beat inflation, to protect the cost of your money and for another investment, that you have for a longer term, it is convenient for you to market productivity with another financial instrument (for example, compare yields of various types of actions).
How much time are you going to spend investing?
Bearing in mind that today you can make investments from the homebanking of your bank, you do not have to stop considering that if you are not a specialist in the field, you will need to dedicate time, even to learn the matter in the first instance and later to Follow up.
For various investments you will need a financial advisor anyway. Which in addition you will have to choose it really well, keeping in mind its experience and trajectory.