Where to start investing without dying in the attempt
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The goal in winning the money game is to achieve and maintain financial freedom.
Many try, but few succeed. Why? They handle the worst number in investments, which is 1. That is, they have only one investment. And that makes them more vulnerable in times of uncertainty like the one we are living in now. Because there is a great chance that that 1 will become 0, you will run out of your capital and have to start over.
The secret to investing and not dying in the attempt is to invest in multiple investment vehicles that generate multiple sources of income. In that way, if one stops working, the impact will be minimal and you will have the resources to place them in a new investment and build a new source of income.
One of the reasons people invest in just one investment is because they don't know where else to invest.
For this reason, I share six business areas where you can invest in 2021.
1. Business or companies
That is investing in someone else's company. The easiest way is through crowdfunding platforms. The investment amounts can go from 5000 pesos onwards and the times are normally medium term (four or five years).
2. Real Estate
Two of the reasons why many people prefer to invest in real estate are the increase in value over time (capital gains), and the fact that it is a tangible investment, that is, you can see your investment. You can also start on crowdfunding platforms, FIBRAS or with a small property that is easy to acquire and sell.
3. Stock Exchange
The Stock Exchange is an organization that facilitates the sale of securities. The easiest way to get started is through indices like the S & P500, which has the results of the top 500 companies in the United States. Historically, the value of the S & P500 has grown consistently over the years, with some declines in economic downturns, but recovering and exceeding its previous value in no time. You can buy it and let it grow.
Gold, silver and platinum mainly. Metals are hedge investments against inflation. In economic crises, countries give stimuli to the population for consumption and that consumption is what generates inflation. In those moments is when metals become the stars of the moment.
5. Intellectual Property
One of the easiest ways to make money is through Intellectual Property. For example, if you write a book, develop software or patent an invention, you will be able to receive income through royalties, a license for use or exploitation. Royalties allow you to make money while you sleep.
This is one of the safest areas to invest and where I would recommend starting, for example, with government instruments such as bonds or treasury certificates. To invest you need 100 pesos and although it will not be the vehicle that will give you the most returns, it will be backed by the federal government.
Now that you know the different investment areas, my recommendation is that you start with one and then explore the others.
Remember that the objective is and will be to invest in multiple investment vehicles to generate multiple sources of income that allow us to achieve and maintain our financial freedom.