We live in a time full of questions, doubts, and fears, marked by an unequal number of answers to the uncertainties we feel. We try to make the right decisions, but we are not always sure where things will lead to, and many of them are about finances and their destiny.
It doesn’t matter whether we have a surplus or just enough. We always keep asking. What Investments to Make? Where to invest, for how long, how much, and how often? Or would you like to buy a property, land, garden? All the expected answers should assure us that we will be successful in the following years and won’t lose our investment. Everybody has an idea about how to live and how much money to earn and spend. The question is how much it costs today.
Would you like to invest in real estate?
If people really want, they will take a loan to buy a property, which they rent and believe they will earn some money. Ideally, everything works perfectly. But the reality is always different. We may not find a suitable tenant for a long time, or we do, but later we find out that foreign property is treated as a foreigner, so we then have a new investment – this time in a destroyed apartment, so you can rent it again. You need to take care of everything, and renting a property isn’t any different.
We suffocate our money in the bank, savings accounts, and passbooks, so it’s a good idea to think about investing.
We need to take care of ourselves and, at the same time, keep in mind that we are paying a loan. We almost always imagine everything nicely and without any obstacles that could hinder repaying the loan. Once we want back the money we have invested in real estate, the outcome of whether we will be profitable or loss-making will also depend on how quickly we need finance from the sale. If we have enough time, we can wait for a fair offer and earn, but if not, the result will be contrary.
Regularly, regularly, regularly
It is easier when we consult our future vision with the financial experts. How and when do we want to live on our savings, how much should we contribute to this goal today, and, in particular, where? Slovaks are a relatively conservative nation; we like to keep money in bank accounts, passbooks, or savings accounts. We simply want to supervise them and have them immediately available. We’d rather lose some money than take a little risk. But we squeeze our money in the bank, savings accounts, and passbooks. We do not earn anything; our deposits are shrinking every year because they do not gain even up to inflation, but they are still at hand. This is imaginary security. Another way to make a really nice profit, in the long run, is to invest regularly.
Understanding the principles of proper investment isn’t an issue, but we prefer to leave it to professionals in any case.
Although the pandemic has been able to shuffle cards in the financial markets, it is an increasingly hot topic. Stocks have fallen in price during this period, the market is still moving, and this is an excellent opportunity for regular investment. Investing is a scarecrow for many of us, so for sure, we are not even interested in safe options. And what we don’t understand, we don’t want automatically. We often translate investments as uncertainty, loss, and the like. However, investing is currently the only way to make money above inflation in the long run. According to the Statistical Office of the Slovak Republic, the current year-on-year inflation rate is 1.6%. It means that if our savings are in any account that does not earn more than this value, they lose 1.6% per year.
Where to look for a safe place?
Gone are the days when we bought products on the insurance market in which the deposit interest rate was guaranteed. Building savings is also slightly behind, although various combinations of small benefits can be earned a bit better than bank accounts. However, if we understand that investing in the right funds is very effective in the long run and safe in valuing our investments, it will be the right time for us to decide. It’s good to know your expectations – when and how much we would like to have on our account at what time, and then adjust our own regular investment opportunities to this goal.
We can earn a lot if we regularly deposit money into the investment account on a monthly or weekly basis, at the time of the decline in the value of securities we still make deposits and, in particular, do not withdraw the money invested in this way. We have our goal. We should discuss our money in detail with an expert, so our attitude to risk can be ascertained and financial instruments selected accordingly. Then we will be ready, and in the future, like many, we will not be just unpleasant surprises. There are more than enough opportunities in the financial market. Understanding the principles of proper investment isn’t an issue, but we prefer to leave it to professionals in any case.
Text: Mirka Grochalová, photo: Pixabay
