How to start investing from scratch - Trustpilot

 How to start investing from scratch

Check out our step-by-step instructions to start investing from scratch and achieve financial freedom.

Knowing how to start investing from scratch will allow you to live a quiet life one day without worrying about bills at the end of the month.

Now ask yourself the following question:

Why do some people live in abundance when many can barely pay their bills at the end of the month?

I was always worried about my money and knew that in order to live in abundance, I needed to learn methods that would protect me and increase my financial security.

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It doesn't matter if you actually spent more than you earn, owed a credit card, bought something impulsively and later regretted it, or lost money by investing in a bad investment.

Understand a simple rule:

Nobody cares about your money better than you!

The seven lessons I've shared will help you start investing from scratch:

Organize your money

set your goals;

Discover your investor profile;

Learn about attachment types.

develop your investment plan;

start investing

Track your investments.

Organize your money

Not everyone can be financially healthy - which means being successful in terms of personal finances - without first updating their accounts.

You need to know everything you earn, as well as everything you spend from month to month.

look simple?

But this is not the case.

Evidence of this is that 63.8 million Brazilians started 2021 with overdue bills, according to Serrassa Experien, due to unemployment in the country.

The total number of people with delinquent accounts is 40.8% of the country's adult population.

This means that the debt is at its highest level since 2010 when the series began counting.

So, start with a recommendation: get out of debt.

Set your goals

The savings are worth it when there is a goal and fit your personal desires in the short, medium and long term.

You can now say:

I don't know where I want to go to save money.

This is normal.

From my own experience, I can assure you that it is.

Setting goals is often confusing to most people because it requires thinking about what goals you have in life and what your priorities are.

The strategy of the financial institution is to know where you are going.

Money is the result. Wealth is the result. Health is the result. Illness is the result. Your weight is the result. We live in a world of cause and effect. The result is a lack of money. But what is the reason? It all comes down to this: the only way to change your outer world is Change your inner world.” - T. Harv Ecker

Now you need to specify:

What I would like to do with this money objectively and realistically.

For example, you can buy a motorcycle.

Write your goals down on a piece of paper or even in a notebook with your smartphone.

Visualizing your financial goals will help you understand where your savings are going.

Start Small: Set 3 goals - short, medium and long term.

What will be done first?

There is no consensus on the exact timing, but consider one year for the short term, one to five years for the medium term, and five years for the long term.

Discover your investor profile

An investor is someone who makes money work for himself. This is a fairly abstract definition.

Therefore, it deserves a more detailed explanation.

I love how Robert T Kiyosaki, in his book Financial Independence - A Rich Dad's Guide, presents 4 ways to generate income.

"We're buying things we don't need." Fight Club.

This is the concept of a quarter of cash flow.

Each quarter defines how you generate income — as well as where you might be if your goal is to achieve financial independence.

The employee earns money by keeping his job. He works for a public or private company and sells his time for a fee.

The self-employed are self-employed in economic activities and thus earn money. He also sells his hours, but owns the company. Doctors, dentists and lawyers are self-employed.

A businessman hires people to work for him. Your income comes from your business earnings.

The investor makes money by making his own money work for him. Then the money starts making more money.

Now every investor has a very specific psychological profile.

There are many ways to define an investor profile, but the vast majority of organizations talk about three types:

reservation;

Moderate;

violent.

To find out your risk profile, analyze your psychological characteristics and financial goals.

I suggest you use a practical tool that will help you find out your investor profile, known as the investor profile test.

Learn about the types of attachments

I have already noticed that one of the basic rules of financial education is to make more money every month.

This is true if you want to achieve a dream (financial goal), have a financial reserve in case of emergency (unemployment, illness), or even ensure a better future for your retirement.

The financial market offers different types of investments so that you can make money month after month.

Whether the investor has a conservative, moderate or aggressive profile, this is a common trait for everyone, and they never leave money in a checking account.

This is the only way to take advantage of the benefit an investment offers, isn't it?

In general, investments in the financial market are divided into fixed income and variable income.

This is a simplified classification to make it easier to understand.

Now you will know how each works and which one best suits your investor profile.

Develop your investment plan

Everyone who prepares a realistic investment plan takes an important step toward thinking about the applications that will fit your financial goals.

“If you do something halfway, you will fail. We have found in this world that success begins with our intention and everything is determined by our spirit.” - Napoleon Hill

Imagine you have a flight plan.

To reach your final destination, you need to select the plane, route, transit time and duration.

Logic is no different with your money.

You need to define your financial goals and when to achieve them, know your investor profile and how you will allocate your money between fixed income and variable income.

start investing

You are now about to take the first steps on your path as an investor!

To start investing, you need to choose a broker on the stock exchange.

The first step is to open an account with one of the brokerage firms registered with B3 so that you can make your financial investments - whether they are shares or direct treasury bonds.

In my experience, most brokers offer almost the same package of service.

The differences lie in 3 primary points:

Fees and commissions charged by the broker;

home broker stability

Good service.

When you open a brokerage account, you need to invest capital in order to start investing.

Only then will your journey as an effective investor begin.

Transferring funds to a broker is a very simple process.

Monitor your investments

Congratulations! You are already an investor since you started investing your money and make sure that the income you get will help you achieve your dreams.

There are many tools and techniques for all skill levels.

I have collected 4 tips that I find practical and practical to help you manage your investment.

review your attachments periodically;

try to reduce the number of transactions;

Make monthly installments

Be disciplined and patient.

If you've made it this far, it's because you organized your money, set your financial goals, figured out your investor profile, learned about investment types, prepared an investment plan, and started investing.

I'm sure it wasn't easy.

It's time to develop the habit of patience and allow the power of interest to work in your favor.