Investing is an ageless process that can accompany us throughout our lives. You should know, however, that this is not a game and that every decision we make can have positive or negative implications. Meanwhile, it is important to know that one invests for income (e.g., coupons, dividends, rent) or to generate wealth.
However, when you monetize your assets you may have a gain (capital gain or capital gain) or a loss (capital loss). Anyone can have money that can be set aside for financial investments, and it is, therefore, important to be familiar with certain concepts.
In this regard, it is not certain that investments made during the year are still valid in the future; situations change and so do earnings. That is why it is always good to check with fixed deadlines the situation of the investment portfolio, to avoid continuing to invest resources in something that no longer pays off.
Learn about other financial best practices
Good financial advice #06 Dedicate 30% of income for personal expenses
Plenty of people suggest using no more than 30 percent of monthly earnings for personal expenses, i.e., travel, dinners out, birthday gifts or subscriptions to gyms, newspapers and more.
Good financial advice #05 Devote 20% of income in savings
A good way to save is to follow the 50-30-20 rule that suggests using 50 percent of income for necessary expenses, 30 percent for personal expenses, and 20 percent for savings.
Good financial advice #04 Spend one minute of money a day
To be always sure of one’s financial and, therefore, economic situation, one only needs to devote 60 seconds each day to money management. How? Checking on investment trends, news, and important news.
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