Financial investments: understand what it is and where to invest!

In general, people look for a financial institution when there is a need to obtain funds to pay off debts or purchase consumer goods. The world of financial investments is still considered a “seven-headed beast” for many, but it can be the option that will make a lot of difference in your financial planning, and can even guarantee a more successful future.In this article, in addition to telling you how financial education can transform your life, we will explain how it works, what types of investments are, and how the practice of investing can help improve your financial life!

What are financial investments?

Technically, financial investment is the practice of buying and selling some financial asset – such as a stock – with the purpose of increasing equity, maintaining market share and generating profit on this investment.

To better understand, financial investments are operations to save or multiply money, aiming to ensure a prosperous future. Surely, at some point in your life, you must have heard the phrase “I’m going to invest to make my money work for me”, right?! This is what the investment does, it remains active in the market to generate more financial resources.

When it comes to investing, many people believe in the need to have a good amount of money to invest. However, today it is possible to make good financial investments without having to rely on a large sum of money. In addition, there are many platforms that can help you choose the best investment option according to your finances. However, before any step towards investment, it is necessary to work on financial re-education.

How important is financial education?

Achieving financial independence is what everyone wants. But getting the guarantee of a comfortable and successful future can seem like a real challenge for many. That’s because we have bills to pay all month, such as water, electricity, rent, internet, and, other than that, we need to maintain an emergency fund and still have that little money separate for the weekend pizza. With all this, how can you manage and keep your personal budget positive?

Financial education is key to this! It is nothing more than the way a person understands the universe of money and uses the possible tools to deal with it. Building assets, having good conditions in the future, honoring the commitment of regular expenses, and avoiding over-indebtedness is possible with the exercise of financial education in anyone’s life, regardless of their financial situation.

Financial education for young people

If in adult life, talking about – and doing – financial planning is already a great challenge, when young it is even greater. This is because it is during this period that independence arrives and expenses begin to be the responsibility of the parents, and no longer of the parents.

It is common to find people who started to get into debt in their youth. Therefore, learning to deal with money at that time is very important, so it is possible to manage resources efficiently from an early age, avoid indebtedness in adult life, and make financial returns come sooner than expected.

In general,  financial education for young people is the initial step to start to really appreciate the resources conquered and how to manage them in the best way to achieve stability in finances today and in the future.

How to understand more about investments?

Of course, everyone wants to make their money work or even multiply. The challenge is knowing how to do this! There are digital influencers and experts in the field of finance who offer content dedicated to those who want to learn how to invest. In these channels, online or in person, in addition to knowing the investment possibilities in the market, it is possible to follow almost instantly the alternatives that are on the rise.

It is also possible to have help and monitor the financial market daily through online applications. Today, there are several platforms that, in addition to organizing your investments and even indicating the best option for your profile, update and share information on this sector daily.

Each investment has an access platform. To follow the right way, everything will depend on which asset you choose, which can be on financial brokerage sites, banks or specialized portals.

What are the types of investment?

There are many ways to invest, it is worth studying or even looking for experienced professionals to understand is the best format for your profile. Here, we will introduce you to the main and most sought-after options for financial investments. Check out:

Actions Financial investments

Basically, shares are percentages of a company that can be acquired and traded through the Stock Exchange and specialized brokerages. In other words, investing in shares is having a percentage and becoming a partner in a company, and the more shares you buy, the more percentage you will have on top of the institution.

This investment format is high risk and needs to be monitored daily, as it suffers from constant market variations, which can increase or decrease the value of the share based on the company’s monthly profit or also due to external economic factors.

investment funds

The funds are on the list of the most requested financial investments in financial institutions. In this case, several people come together in order to gain access to financial investments at lower costs. The great uncertainty is that it is not always possible to receive financial gain. There are different types of investment funds and they vary according to the risk and term of the investment. One of the most sought-after is the real estate fund, which gathers real estate projects, and the gains from rents are divided between the shareholders.

Public titles

It is the famous Direct Treasure. They are important financial investments, especially if we pay attention to the government’s perspective. Public bonds are mechanisms through which the government manages to raise funds. This modality is popular among investors. As it does not require a high amount to invest, has a medium-term return greater than savings, and is considered a safe investment since they are Federal Government bonds.

LCI and LCA Financial investments

Despite appearing together most of the time and both being fixed-income investments, the acronyms are dedicated to different segments. LCI, or Letters of Real Estate Credit, are securities that investors buy from developers, construction companies, or real estate financing institutions in order to direct resources to the real estate buying and selling sector. The LCA, or Letters of Credit for Agribusiness, is the investment applied in securities of the Agribusiness market, that is, rural producers and cooperatives receive the loan. Investments in either of the two formats are remuneration – or interest – throughout the period in which the resource is applied.

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