Maybe you’ve already thought about starting to invest , but gave up because you didn’t have a high initial value. But we have good news: even on a tight budget, you can make an investment.
More important than having a large amount available to apply, is having financial organization . Start with as much as you can, the important thing is discipline and recurrence.
I have a tight budget, how can I start investing?
Regardless of the size of the bank balance, everyone needs to have financial planning . Only by organizing your finances will you be able to reach your goals .
Even if you currently have a tight budget, you can plan for your future and increase your wealth .
There are several types of investments and surely one of them will meet your needs. Therefore, be prepared to study and learn about each of the applications. But first of all comes the planning. So start by knowing your finances and getting as organized as possible . Thus, you will be able to start your journey and improve your financial life.
But how to organize finances on a tight budget?
First, think that by organizing your personal finances you will have a better quality of life. Having late bills, for example, takes anyone’s sleep.
The stress that a financial life can cause is harmful, as money has a direct impact on your physical and mental health. Therefore, prioritize the financial organization.
When you have everything organized, you will realize that it is possible to save and invest , and still keep your bills up to date and your standard of living. It doesn’t matter the value, the important thing is to start.
But how to do the financial organization in practice? Check out some tips to get you started today!
1. Know what’s going on in your financial life
We often lose control of finances, spend the overdraft limit, all credit cards and the budget is tight. We end up not even knowing how much and what we spend on during the month. How much did you spend on shopping at the market? And with deliveries ?
Although common, this is not good! Know your finances to know what your next step will be, what your mistakes and successes are.
2. Invest time in financial planning
In addition to writing down your expenses and having expense categories (shopping, food, transport, etc.), you need to have short, medium and long term goals .
For example, the goal to start saving money every month and establish an amount that fits the budget. Already in the long run, having money to travel abroad. Goals can be ambitious, but they need to be achievable.
Anyway, the important thing is to keep this planning and closely monitor your finances.
3. Pay off your debts
Try to pay your debts , even those that are not overdue. Everything you can best anticipate. Because, you can get discounts by doing this. And no new debts, huh?
Write down all debts and the amount of each. Plan to pay them off over a period of time and set aside some money for this every month.
4 . Save efficiently
Now it’s time to cut expenses , whatever is superfluous or that can be replaced with a cheaper product/service. If you realize you’re spending a lot on streaming services , for example, how about just having one?
How to choose an investment on a tight budget?
Well, as there are several types of investments, you will need to do a little research before applying your money.
One of the things that will help you choose is knowing what your goals are. Where do you want to go and in how long?
Another thing you can do is discover your investor profile . Your profile indicates what type of investor you are and there are three categories. Check out!
Discover your investor profile
– Conservative profile : those investors who prefer security, even if this reduces profitability.
– Aggressive profile: for this profile, profitability is the most important factor, even if it means facing greater risk.
– Moderated profile : as you might have guessed it is a mix of the two other profiles. The moderate wants security, but accepts a little risk in order to have a higher income.
The profile has a lot to do with what we call risk tolerance! Typically, longer-term investments can be riskier, while short-term investments are conversational. This is why setting a goal is so important.
Fixed or variable income?
When you invest in fixed income , you are actually lending money to a company, bank or the government. In return, you receive the borrowed amount plus interest.
This type of investment is usually safer , as the remuneration calculation is already known . It might be:
– pre-fixed: fixed interest rate known at the time of contracting.
– post-fixed: interest rate linked to an economic index, such as the IPCA or the CDI.
– hybrid: mixture of the previous categories.
