Currently for people who want to do business and money saving your capital in the banks waiting for some interest, it is definitely no longer a profitable business due to the very low interest rates that they offer. Although there are many ways to earn money outside of the banking system, most people avoid them because they carry the element of risk, for example in the stock market despite the fact that the returns are much more interesting.
Here we leave you with 5 tips for you to start earn much more money with long-term investments:
1. Diversify. Lower risk by investing in different markets and in mutual funds, bonds, and other instruments. Many use as a rule not to invest more than 10% of their capital in a single instrument. This will give protection against something unforeseen in a certain sector.
2. Do your researchn. Invest in some companies whose products and strategies you like. On the Internet there are many resources with which you can compare, analyze and understand investments. If an investment was good in the past, there is no assurance that it will be so in the future. Choose a mutual fund that has performed well for the past 2 years and offers low management fees.
3. Don’t act by chance. A good investor does not leave everything to chance, first of all, you must investigate, analyze, compare and never leave anything aside, when seeing and knowing the variables of a company where you want to invest your money.
4. Take risks. Ordinary investors say, “Take no chances.” The rich, successful, and millionaire investor takes risks. Although it seems a contradiction of the previous point, what we want to say is that these risks must be measured, nor can we wait for the moment and the perfect conditions to invest our money.
5. Re-invest the dividends. A surprisingly large part of the overall growth for most portfolios comes from the reinvestment of dividends. A 2.5% yield may seem small, but over a period of time it can make a big difference.
Lastly, be prepared to sell when you occasionally need the money. The idea is not to become the richest corpse in the cemetery, but to build financial security for you and your family.