Popular sayings are passed from generation to generation because they bring timeless and universal lessons. See this one: “Standard money doesn’t pay interest”. Ever heard?


The meaning is simple: if you know how to invest money — and not just keep it — you will see the amount increase more and more.


There is a huge difference between saving and investing your money. You know the saying “money has wings”? So it is.




Even with a reserve. if you don’t apply that amount. it’s easier to get carried away and end up robbing the piggy bank. In addition. idle money suffers the effect of inflation and can lose a lot of value.


Don’t you understand any of this? Want to know some ways to earn money and make it pay?


So. follow this guide and clear all your doubts about investments!



Why should you invest your money?

If you have an emergency fund and can save a little a month. congratulations! You are already on the right path.


Saving money is. in fact. an essential element of financial management . However. let’s go a little further: how about seeing your reservation bear fruit?


In order for you to better understand the difference between saving and investing. let’s see another popular saying: “Whoever eats and saves. sets the table twice”. Sounds good. doesn’t it?




You make a small sacrifice at a meal. leaving some for later. With that. you can have another meal.


But what if that first effort was reversed into not just one. but several other meals?


That’s what investment is all about. After all. keeping an amount saved. without application. is a devaluation of your effort. since there is no significant correction on top of it.


Investments and profitability

If you live on planet Earth. you must have at least heard of Bettina and her million. Yes. the young woman in the Empiricus advertisement was talked about and even became a meme.


And not for less: according to her. the feat of Estonia Phone Numbers becoming a millionaire with a small investment would be possible for anyone. The statement created a stir on the internet.


Is investing really that profitable? Yes and no. Bettina’s case is very particular and brings millions of discussions that are not the subject of this article. But yes. you can have great returns if you know how to invest your money.


It is no wonder that the investment culture grows every day. On the Brazilian stock exchange. the number of investors hit a record in 2019. reaching more than 1 million registered individuals .


To make it clearer for you. let’s look at an example. Recently. the rate on fixed-rate Treasury Direct bonds — one of the possibilities for investing in fixed income — reached 6.58% per year .

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This means that if you invested BRL 10.000 in the middle of this year. with a monthly contribution of BRL 150. you would be able to recover around BRL 16.600 in January 2022: a profit of almost BRL 4.000 in less of 2 years. Much better than leaving the money saved. isn’t it?


To get to this result. just use the Direct Treasure Simulator .


Oh. one note: as this example is a fixed income investment. that is. whose profit margin is predictable – which offers less risk -. profitability is more stable and contained.


On the other hand. those who start with variable income investments can have much more significant profits. However. the risks are also more relevant.


All this must be considered according to your goals and your investor profile. Let’s understand better!


What are your investment goals?

Nobody saves or invests money without setting goals : accumulating wealth. taking a trip. paying for their children’s college education. etc.


Knowing them and. especially. understanding whether they are short. medium or long term is very important to take more targeted steps in relation to investment. Look!


short term goals

Short-term goals are those that will be completed in the next few months or up to 3 years. Some examples are:


a trip on the next vacation;

a big birthday party;

a house renovation. among others.

Those who need to recover the money in a shorter period usually make investments with high liquidity and low risks.


An investment with good liquidity is the one that is easier to redeem. that is. converted into cash. This is the case with the Selic Treasury — when you make a redemption request. the amount drops into your account within one business day.


On the other hand. investments with low liquidity are those that. even if they give a great return. are less agile in this conversion. This is the case with real estate. for example: buying a house to resell it when there is an appreciation can mean a few years before you can find a buyer.


If you need the money in a short time. you won’t take much risk either. After all. a sudden drop in market rates can thwart your plans to travel or renovate the house. as there will be no time for recovery.


Medium term goals

Medium-term objectives. in turn. are achieved in approximately 3 to 10 years. Examples are:


buy a new property;

save enough for the kids’ college;

accumulate wealth;

open a family business to change careers. etc.


In these cases. investments can be a little more moderate in terms of risks. In addition. high liquidity is no longer a fundamental criterion. which opens up more possibilities for the investor.


long term goals

If you want to start investing thinking ahead. like having a comfortable retirement or passing on wealth to your children. investments can already be riskier.


After all. if a stock on the stock market plummets. for example. you’re in no hurry: you can wait a long time before recovering your capital. Who knows. maybe the scenario changes completely?


Liquidity is also not so fundamental. as there is no urgency to recover the investment. So if the funds are committed for several years. your goals will not be harmed.


How to identify your investor profile

Knowing your investor profile is also essential in the recipe for a good investment.


Here. a lot comes into play: monthly income. age. risk tolerance. needs. and more. See a little about each one!


For this profile. security is the watchword. Therefore. he prefers to invest mainly in options with low risks and high liquidity. Afraid of losing your funds. you can miss good profit opportunities by not diversifying your investments.


Conservative: the cautious

This one takes a little more risk than the previous profile. but still goes with great caution.


As he doesn’t like to deal with risks. he wants to avoid surprises at all costs. Therefore. it also prefers investments with more predictable and stable earnings.


Moderate: Down to earth

The moderate is that investor who. although he likes to take a risk from time to time and bet big on options with more chances of profit. still keeps his feet on the ground most of the time.


It is the profile that places around 60% of its funds in conservative options and 40% in more aggressive applications.


Bold: the cold-blooded


Risky: the crazy investor

The extreme opposite of the . the risky profile is that of the crazy investor. He takes seriously the thought that the riskier an investment. the more chances of getting rich!


He can’t hear a rumor that such a stock is  Therefore. it is often  at least one more  needs.

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