Where do I invest my money? Many and relatively often we ask ourselves this important question. But why do we make it clear that we will be able to realize the return on our invested money and what do we think we should invest our money at all costs? In this article, we consider 5 circumstances when the best investment for you, if you do not invest!
We never invest our safety book!
In any case, do you ask yourself to invest in your “one million forints”? It does not matter whether you are looking for the best investment or the money that you can ignore the long run without problems for a safety margin.
Usually people make the mistake of investing there
- do not know the risk of investing
- They are investing money they may need at any time
- not prepared for vis force situations
If you want to build a stable financial background for yourself, it’s important to create your so-called layered security points:
- money on your current account
- liquid reserve
- Liquid Safety Reserve
- medium-term objective capital
- long-term capital
- invest money
Until we have our financial reserves and our financial products that achieve specific goals, the investment is worth as much pouring half a glass of warm water in the pan at the cooling pool.
If you can get more than you can win with the investment
It’s a boredom in the world of investing to boredom that’s a good investment if you make a profit for us. Let’s go further and say that it is worth investing our money if the potential fall is less painful than the potential profit!
For every investment you have to look at it
- the risks involved in investing
- how much money do I need (eg for my daily living in a worse month)
Invest yourself in the investment eye test, ie decide which of the options you have for investing money would be better off? If you win x, would you lose and?
For example, you invest $ 1 million:
- and you will have a 5% yield, you will get 50,000 forints
- and you will lose 7%, you will lose 70,000 forints
If you run into a problem of more than 70,000 forints than you would “get well” (ie how easy it could be for you) 50,000 forints, you can be sure that you will not invest this money at the given risk levels!
If you are not able to think for a few years and housing is not an option for you
For today’s money market, people do not necessarily have to reassess financial product that, over a period of 1-2-3 years, would offer an alternative to costs and potential losses that could make a significant investment.
What are your chances if you want to put your crossed 1 million HUF for 1-2-3 years?
- put it in gold and hope that there will be no correction in the market
- Start Forex and try to hit the right currency pairs
- enter the crypt market and do not be surprised by the 30-50% bug due to votality
- buy government paper and win a minimal amount on the deal without risk
- buy an investment fund and pray that the money market is not collapsing now
- trust a professional and believe that it is worth it for your $ 1 million
I do not deny that you can get out of it well. Practice shows that people pay more than necessary for short-term investment when they listen to clever tips or try to turn into Hungarian Jordan Belfort as an ancillary.
You feel your income is not stable, your life
Often, during counseling, I try to discourage a long-standing client from investing in long-term commitment or investment. The reason for this is that for me, finance and economics can not only be described with numbers and can be expressed. The whole also has a lesser material page with many variables, which can be called emotion-based decision making.
Many people want to do something because they have read / heard somewhere that is a good thing. This emerging need to obscure the reality of well-founded decision-making. After all, we may be in a phase of our lives when the road ahead is unclear, uncertain.
In such a situation, it is not advisable to commit financially at any level, as we can take a different direction at any minute, which we will need for tied money. And it makes no sense for you to have your financial products lifted for a lifetime by guiding you with the decision of a hurry, and you can only get out of it at high cost / loss!
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