Choosing investment projects for your personal finances is not a simple task, nor a decision that should be taken lightly. We want our savings to generate more returns, but we don’t want to completely lose the benefits of liquidity. Therefore, before deciding where to allocate your savings, consider the pros and cons of all the different investment opportunities, starting with these 4 financial products.
# 1 Real Estate
Anyone can invest in a property and calculate if, by selling it, you are gaining on your investment. However, if you are looking for liquidity and security in the medium term, investing in real estate is not a great idea. Investing in property ties you indefinitely to the market position, and this type of investment tends to consume more management time.
# 2 Cryptocurrencies
Investing in cryptocurrencies may be the latest trend, and it’s a field with immense growth potential. However, the ups and downs in those markets make these products too risky, and can leave your personal finances in a vulnerable position-
# 3 Stock market
The stock market is still one of the best refuges for your money, but some products may be safer than others. For example, maturity bonds, with the shortest investment periods, have much lower credit and interest rate risk than most stock market products.
# 4 Savings accounts
Savings accounts have the disadvantage of not growing on par with inflation, but it is possible to find savings accounts with high yields. While they tend to be one of the safest options with the least risk, they offer the lowest returns. Consider certificates of deposit that are insured deposits with fixed time and have a very low risk, but offer slightly better returns than savings accounts.
Deciding how to optimize your personal finances is a very important decision; increasing your savings regularly is simply not enough, and you need to be more proactive with your finances to make your money growth. Get your personal finances under control, join Glass and visualize all your financial movements on a single platform, anywhere at anytime.