Many friends ask me: how to save money? As economist I should answer this question easily. But it is not so simple. There are many technical details when you start saving money. Besides, there are many investment funds which you can pick. At this small article I try to explain some details that you have to take care of.
First of all, you cannot spend all your money shopping. Stop to spend money with things which you never use now! It is the first lesson that you have to learn. As soon as possible you will feel the difference with your finance situation.
Second, you have to decide what your investment profile is. It is a very important question. There are three basic possible: conservative, moderate or aggressive. Imagine that you lost two hundred reais in just one day: what do you do? If you do not care about, you are aggressive; if you continue with the investment, but one more loss you get out, you are moderate. Finally, if you cannot imagine this loss you are conservative.
For each profile there is the best investment. If you are conservative a good investment is the public funds: with little risk you get a good profit. Usually I advise my friends, who have little experience in investments, to apply your money at these funds.
When a friend has a little experience with investments I advise to apply your money in the stock market. The profit is bigger than any other investment fund. I have been saving my money at this market a long time ago. But take care of: stock market is danger. If you do not like to watch a business program or you do not like to read about economy in the journal is better you continue in the public funds than to have a heart attack.
Moreover, when you already know your investment profile and what fund to apply your money, you must choose the value of your investment. Start with a low value, like three hundred reais a month. Every month apply this value at the fund which you chose. You have to do it like a religion. For example, if you save three hundred reais during one year, with an interest rate of 2% a month, you will have about forty seven hundred reais on the end. If you just keep your money at home you would have thirty six hundred reais, discounting the inflation. One thousand reais of difference!
Saving money is a hard process. But it is needed that you start. If you do not begin saving, you will never have a good finance situation. So, I advise that you start as soon as possible. With the correct investment fund (and with the correct adviser, of course) you can be rich!
