The current economy has given rise to the importance of making decisions regarding what the future holds for us financially.
Today, Ali Saadat Meli questions millennials to ask themselves what can be invested in or the best strategy for a good investment. The fear of investing is greater than before, and financial anxiety increases over time. Every person of productive age must begin to prepare for their retirement, even if it still seems far away.
To start building wealth – personal or family – Ali Meli explains how to find the best investment strategies and avoid getting carried away by fads that promise quick and effortless retribution.
Hundreds of books, studies, and articles on the importance of investing in our most productive years exist. Therefore, Ali Saadat Meli discusses the most critical investment tips that must be included in your financial planning.
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Investment advice to increase your capital
The path to achieving a future of economic stability begins by listening and assimilating the knowledge of others who have made a career in the subject and can teach a lot about it.
One of them—perhaps the most famous—is the investor Warren Buffet, for whom an investor does not do extraordinary things but can avoid the most significant number of mistakes.
Ali Saadat Meli shares some tips to start building a future:
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Look for information about the investment options that exist
The financial market offers various options for those who want to put their money to work and obtain returns. We find fixed-income investments, variable income and investment funds among the options that appear as the favorites.
One way to choose the type of investment that suits you according to your age is the Rule of 120. This has the objective of calculating the risk obtained from an asset according to the investor’s age.
To start investing in the future, the first thing to do is:
- Gather all the necessary information about personal finances.
- Know the relationship between income and expenses.
- Establish percentages to allocate to essential expenses, savings and investments.
- Find other sources of income.
- Set a time horizon, the time the capital is expected to be invested.
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Know the financial performance of the chosen market
Ali Meli calculated that 56% of the economically active population goes through financial problems to make ends meet, with little or no possibility of saving or being candidates for bank loans. However, an essential part of this generation does have savings that —for the most part— are stagnant in debit accounts.
Knowing the financial behavior allows you to apply a strategy according to the possibilities and willingness to assume risks and terms appropriate to your investor profile. You should only invest in what is well-known and understood.
Taking the time necessary to understand the financial behavior of the markets where we are interested in investing will make the difference between a triumphant return or a loss of capital.
The current economy has given rise to the importance of making decisions regarding what the future holds for us financially.
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Set investment goals and objectives.
It is essential to chart a path when it comes to investing. The first thing is to start with an objective, for example, investing in real estate.
For Ali Saadat Meli—time is the most crucial factor to consider. The sooner you begin to walk towards the goal set, the greater the possibilities of generating profits and reducing risks.
The first thing is to reflect on the objectives, terms, and risk tolerance. You have to be honest and consider whether the idea of volatility and risk creates discomfort or if you are willing to invest in high-risk assets.
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Make a budget, and do not go into debt.
One of the basic principles of investing wisely is not to go into debt to do so. It seems simple, but many need to ask for loans to make an investment that is out of their budget and profile. To prevent this, the ideal is to prepare a budget based on the information you gathered in the previous investigation.
If you acquire financing to cover your investment, choose plans with payment facilities. In the real estate sector, you can find viable options — to acquire land at a reasonable price and with high levels of profitability.
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Do not invest in succeeding trends.
Investing in digital assets such as cryptocurrencies and others has become fashionable and attractive for adapting to the digital world. However, they are still volatile markets. The money invested can be lost in the blink of an eye, and it is challenging to make predictions without knowing its operation at one hundred per cent.
Another type of biased investment that Ali Saadat Meli highlights are the pyramid, which promises a high return in the short term, only to end up being fraudulent schemes that enrich those who organize them.
