Do you want to save money? .. First you need to know what kind of investor you are

Do you know what are the main keys to saving money and want to discover what kind of investor you are? Are you a brave, enterprising, wise or conservative investor?

There are many types of savers, but not all of them know how to do this well, writer Diana Arastia said in a report published in the Spanish newspaper "El Mundo".

According to Bao Monserrat, personal finance expert and economist for Infinitec, the first basic knowledge lies in understanding the importance of savings and understanding that the sacrifice made today is a benefit that will come in the future, so you can learn to save.

The writer mentioned that whether you are seeking to get your first home, provide funds for retirement or to study your children, it is imperative that you plan well.

In this case, the first thing that you have to consider and take into account is the amount that you are saving, as this will clear you with knowledge of the time horizon, the money that you will be able to save and the way in which you will achieve the desired goals.

The expert said Monserrat that the important thing is not the amount of money, but the proportion, for every month must go part of our income to savings and investment.

Savings as additional expenses
People tend to view savings as an optional matter that we do if we have money left at the end of the month, but we must start looking at the issue as if it were additional expenses, and regularity and perseverance are essential factors in achieving good savings.

Monserrat said it is more about investing than saving, because with negative interest rates today, saving in the basic sense of the word is a loss of money.

If we do not invest our savings in a financial system that exceeds inflation and compensates for the assumed risks, the increase in prices will ultimately reduce our purchasing power over time.

Here are a few rules that can help you in this task:

Know the rules of savings and investment
Carrying out training courses on financial products on an ongoing basis is necessary, either with the assistance of a consultant or through the resources available to all, and on the Internet there are many sources for this field, such as the "Lahuru", "Rankia" or "Blueberg".

There are no incomes without risk
Monserrat pointed out that there is no product that gives us little profit compared to not risking capital except for very rare times, and if savings are higher than inflation, it is natural that they provide less profits than that.

Therefore, this product that guarantees us capital and gives us a stable return does not exist, because these savings are devoured by inflation.

Variable income stocks
The economist Monserrat warned against investing your money in fixed-income investment funds, because you must know that in a scenario where interest rates will be zero, fixed income will decrease, and it is advisable to choose variable returns at least in a very important amount.

Determine the type you belong to
In the meantime, the allocation of the part that you need to provide for fixed income funds may occur in the short term, so diversification is important, and when setting the rules for the ideal savings you must determine the type you belong to, and here are the types of investors.

• Very conservative
  A person who does not want to risk any capital and has money in a checking or savings account, and is not limited to not only earning money but also losing it, and although savings increase nominally by 2 or 3%, inflation is always higher than the nominal benefit of savings.
• The governor
  This type of person does not want to invest in the stock market or even in variable income assets, and these people always prefer saving in pension plans and investment funds with always fixed income, because they believe that in this way they will not take any risks.

But according to Monserrat in situations similar to the current situation, fixed income is more risky than variable, because when interest rates rise, fixed income loses its value.

• Moderate
  These people invest their money in fixed and joint income investment funds (fixed and variable income) and can even think about pension plans, not only related to fixed income, but bear little risk, and this input will be fairly moderate depending on his economic situation, age and whether He had a family or not.
• Risks
  This type of investor goes directly to variable income asset funds globally.

These people invest a higher percentage of their capital in investment options that are subject to a higher level of volatility, and given that the stock market is characterized by frequent fluctuations, it has a long-term goal.