Everyone will become an investor at some point in their lives. It is in these moments that we come into contact with financial investments for the first time. Within a multitude of investment options, it is normal to be in doubt. However, if you are an investor who is here to stay in Financial Investments, you better have a few things clear before you start.

How Does Money Earn?

The financial market does not create money and money is not born . Amazingly, money grows through the work of human beings. When you invest your money in a bank, it lends it, say, to a businessman, who with the money is able to buy goods and hire people, so that after making sales, there is some profit. From this profit, he retains his share and returns the loan to the bank . Therefore, the bank's service is to connect the right people without you knowing it, it will allocate part of its financial investments to people and companies that need loans.

Sardines and Sharks in Financial Investments

There are sharks and sardines in the financial market . The sharks are the big bank funds and the sardines are the investor without knowledge. You know that investment you made without thinking, and had to exit before maturity with a loss? You understood. A sardine only stops being a sardine after swimming for a long time in the ocean of financial investments , and this requires a perfect game of patience.

Types of Financial Investments

If I tried to summarize the types of financial investments here, this blog would probably lack pixels. But I dare to divide Financial investments into 3 large categories: Fixed Income, Variable Income, and Other Investments. If you have never invested , start your internship in fixed income , do not skip this step and only then venture into variable income and other financial investments . The good news is that every bank has fixed income and a manager sitting there waiting to talk.

Return on Financial Investments

Returns on financial investments : As a rule, the higher the return on an investment, the greater its risk. This means that when you hear that an investment returned 30% per year, it ran the risk of 30% per year. The return is always determined by the investor's risk appetite, his perception of this variable. For many investors , losses on financial investments can represent the end of their career, while for others, losses on financial investments are not as relevant as they have other sources of income such as rentals, partnerships, etc.

In short, money and financial investments do not create themselves, they depend on human work and effort in their activities. Furthermore, banks function as intermediaries between investors and creditors, with the most unsuspecting investors generally being penalized in the process. Furthermore, there are numerous investments , and the beginner investor must start with fixed income before progressing where returns go hand in hand with risks, meaning that the investor has to assess how much of the Financial Investment he is willing to lose in order to gain.

Keywords:

Investments, Actions, Investment Funds, Treasury Direct, Fixed Income, CBD, Savings, Real Estate Funds, BDRs, Dividends, Fees, Profitability,