How can you make better savings and investment decisions?

Yes , I believe knowing your goals help you to perform better in personal as well as profesional life . If you have to buy a property in future then start saving i.e.investing from today. If you want really love yourself and your family then invest in health and life insurance. To earn more,upskill yourself ,invest money on higher education and skillset. Create an emergency fund and make investment in different assets. Saving and investing should move parallely.

To make better savings and investment decisions, focus on three key principles: education, discipline, and diversification. Educate yourself about various investment options, understand your risk tolerance, and set clear financial goals. Exercise discipline by regularly saving a portion of your income and avoiding impulsive spending. Diversify your investments across different asset classes to spread risk and enhance long-term returns.

I encourage people to identify their vision and answer these 3 questions: 1. What’s the timeline? 2. What are the taxes? 3. What are the risks? Invest in what you understand. Align the investments with this vision. You’ll be just fine.

It has to start with the goals! The numbers are secondary to any goals. They need to resonate deeply; have detail and engage your emotions otherwise you’ve just got a list of numbers on a page with no meaning. You should also review them regularly as they will change and adapt over time as your life changes.

It is crucial, before embarking on a specific goal, to evaluate the risks and the meaning for the company. At LDLC Group, this is always how we operate. We calculate the maximum risk cost of a project, and if we are prepared to lose the corresponding amount without endangering ourselves, then the first criterion is met. The second will be to ensure that the project receives positive feedback from the involved teams, which will be necessary for its successful implementation and success. If everything is OK, then we go for it! And of course we´ll be ready to stop and admit that we failed if it’s the case !

When it comes to investing, a good shift in mindset is to think of tolerance to risk as tolerance to volatility, as risk can sound scary. Risk tolerance determines how much uncertainty and volatility you can handle for desired investment returns. It's unique to each person and can evolve over time, depending on factors such as time horizon, financial situation, as well as knowledge and experience.

Your risk profile isn't just a number; it's a dynamic reflection of your unique circumstances. It's not solely about being risk-averse or risk-seeking, but rather finding that sweet spot that aligns with your contingencies and your tolerance for volatility. If you're risk-averse and have a short-term goal, consider low-risk options like savings accounts or bonds for peace of mind in a less volatile environment. On the flip side, if you have a longer horizon and are comfortable with some ups and downs, exploring high-return investments like stocks might make sense. The key is striking the right balance between your risk appetite and risk capacity, and continuously reassessing as your circumstances evolve.

Risk profiling is made way more complex than it needs to be. Long-term investing should be higher-risk and mainly (if not all) equities, because they are the growth engines of performance. You can ride the ups & downs because of the time until you need the funds. On the other end of the spectrum, short-term investing is about protecting capital. Cash @ 5% right now is very attractive. If you can estimate when you need to access the funds, you can then work out how you need to invest them.

I believe the first step and a big win for anyone is to actually list down the goals, with their timeline and priority. This process in itself provides an opportunity for us to think deeply about our life goals. Also, it is important to understand that goals are fluid, and can change as per life situations, so this process needs to have a cadence to it. Further, as a next step, it helps to segregate the goals in buckets as per timeline i.e. short, medium and long term. This will help to get the asset allocation right as per the goals. Knowing your goals in itself is a big win and planning for them is another step, even more important than the identification.

Risk profile is crucial to determine before any investment decision. Risk management is more about how much potential loss you are able to tolerate vs how much potential that action has. There are multiple financial products available, and defining your risk profile will narrow your choices to a more effective financial decision.

Emotions are so powerful and more so when money is involved, we all have a relationship with it and relationships are fuelled with emotion. Making big financial decision when we are emotional can prove to be very costly, that's why the right expert can look at the granular detail without emotion. That doesn't however mean that emotions can't be used to help with financial decisions, they absolutely can but there's a right time and a wrong time.

This is the best investment advice you’re going to get: ZERO emotional decision-making. Successful investing means always having a plan based on your personal risk profile. For example, a bad plan is “I will sell stock X if it goes down too much”, while a good plan is “I will only sell stock X if in 3 months it has not appreciated 10%, then buy a safer S&P 500 fund instead”.

El dinero depende más de la psicología que de las finanzas y lo mismo en lograr ser lo más razonable posible (que no siempre racionales) en su gestión. Somos seres emocionales. El problema es que la formación que uno puede recibir se enfoca en los conocimientos técnicos (inflación, interés,....) pero poco (o nada) en las emociones, algo que debería de modificarse, para mejorar en el futuro, nuestra relación con el dinero.

One way to avoid emotional investing is to have a clear investment plan and stick to it. It would help if you also focused on investing in high-quality assets likely to be appreciated over time. Finally, it is important to remember that other investors are emotional too. When the market is down, many investors sell their stocks out of fear. This can create opportunities for investors who are able to stay calm and buy stocks when they are undervalued. Many investors are selling their stocks out of fear. On the other hand, are aware that this is a good opportunity to buy stocks at a discount.

Recognize market volatility as normal, avoid impulsive decisions during fluctuations, and focus on a long-term strategy. There are four key habits that will help you. 1. Create a Clear Investment Plan 2. Automate Investments 3. Practice Discipline 4. Don't panic

I could think of 2 ways:- 1) Install a mutual fund app to set a SIP of your choice. 2) Set a direct debit from your salary account to your Recurring Deposit account. This ensures automatic transfer of money between these 2 accounts without you needing to worry :)

You need to build a strategy that you can be committed to for the long term. The longer you are invested, the more likelihood that you are making money, statistically speaking. The worst thing you can do is to move in and out of the market, either out of fear or because you are trying to time things.

Habits are said to take anywhere from six weeks to thirteen weeks to start embedding. If you only consider your investment strategy once or twice a year you are effectively starting from scratch every time. This includes the stress and uncertainty which is probably keeping you from making the decisions you need to. Automating good behaviours is one of the best ways to deploy modern technology. Set up direct debits for all your essential expenses so your bills get paid; AND set up a direct debit to invest your savings each month.

Para el ahorro, una buena opción para lograrlo, es aplicar la regla de "pagarte a ti mismo", esto es, automatizar que al momento de recibir la nómina, una parte de la misma, se transfiera a la cuenta donde gestionamos nuestros ahorros/inversiones, y así evitamos utilizar ese dinero en otros gastos no siempre esenciales. Se trata de "limitar" así nuestras tentaciones y poder reducir los gastos más emocionales (y no racionales), que todos tenemos.

Nada como um “opt-in” “opt-out” pra mostrar pra gente a força da automatização de decisões. Muito disso vemos em nudges como “descadastre seu email da lista de promoções”. Ele tem o opt-out, em que a pessoa só para de receber, se fizer o descadastramento. O mesmo acontece com planos de previdência privada de empresas, se na contratação a pessoa precisar se cadastrar e preencher fichas, pode deixar de fazer ou adiar, agora se tem que fazer o mesmo passo a passo pra se descadastrar, é provável que faça a adesão ao plano. Eu sou fã desse tipo de processo de tomada de decisão.

If you want to start investing yourself, you need to spend a lot of time learning and even then, you might often be wrong. But you definitely need to understand the basics of finance and investing and how things work. Compare it with your health. You might not become a professional sportsman, but if you understand the basics and exercise daily, you will be all right.

How much time do you have to dedicate to this? If you have time, feel free to do it yourself and save the fees. If you don't have time, or are concerned about making a mistake, using a professional to help you should more than pay-off with overall benefits vs any fees paid.

For personal investing couple of rules have worked better for me even if it's contrary accepted investing wisdom... Illiquid assets like real estate and NPS is far better for long term wealth preservation than high return generating stock portfolio. e.g Apartment bought a decade ago have generated more value (with low single digit return) compared to double digit return earned through active trading. Ended up spending stock returns on discretionary and compeltely avoidable things, while Illiquid assets like real estate remain untouched. Similarly, automated SIPs has worked better than carefully planned portfolio construction due to inability to stay consistently focused on markets while focussing on a different day job...

For good investment decisions, it is inevitable to learn more about the topic. In Brazil we have several options, many free of charge through the brokers' own teaching platforms. Familiarity with the topic will make you decipher this alphabet soup that is the stock market. It is worth attending classes, lectures, following serious and responsible financial educators to learn more.

Learning from others in the realm of saving and investing is like having a personal guide on your financial journey. They can provide valuable insights, warn you about potential pitfalls, and offer strategies based on their experiences. Just remember, while their advice can be helpful, it's important to tailor it to your unique situation and objectives. Your financial path is your own, and what works for someone else may not be the best fit for you. That's why is important to speak with an Independent Financial Advisor who will have your best interest at heart.

Understanding the difference between “saving” and “investing” is a good starting point. Spend less than you earn each month and you automatically generate savings. Contribute, or have your employer contribute (or both) to a pension plan each month will generate savings. What to do with these savings to achieve your goals is investing. What to invest in requires consideration of risk. What time frame are we investing for? Is there is simple and cheap way of effectively investing? Can it be automated? Yes, Yes. Make it so!

Putting money into your own growth, especially when you don't have much, can really pay off. Learning new things and improving your skills can help you get better job opportunities and depend less on others. It makes you more flexible and able to keep up with quick changes in the job world. It also helps you grow as a person and take care of your mental and physical health. When you learn different skills, you're not just stuck in one job or field, which can be a big help when the economy is shaky. Investing in yourself is something you can control, unlike investing in the stock market. You get to choose what to learn and how to grow, and these choices can benefit you for your whole life.

"Just keep buying" is a great mantra for a number of reasons. 1. You need to have an income surplus to do this i.e. so your spending is < your income. 2. It means you keep buying through all the down markets which puts you in a much better position in the future. 3. By automating the investing process, it removes any decision-making required which is another benefit. So, just keep buying!

Often younger people tend to invest into riskier, more volatile assets that may have a higher expected return, but that are only realized over the long-term (referencing primarily equities here). Before one considers these assets, I think it is wise to have an emergency fund worth about six months worth of expenses. This is to avoid unexpected liquidations that stop the long-term returns from being realized. Due to age and longer investment horizon, young investors can accept more risk, but it is important they own them for the long-term, so the higher expected returns are realized. Companies with stable and growing cash flows tend to increase their dividends annually and a small dividend now could be quite significant in 10-20 years.

Try to avoid taking investment advice from that given in social settings. People more often share their wins and not their losses, which gives the illusion of "skill" or "a sure thing" by doing the same thing. Investing needs to be deliberate for your situation and objectives. If it looks too good to be true, it most likely is. Be cautious. For super speculative investments, ask yourself: "Can I afford to lose this money without derailing my plans and broader objectives?" If the answer is no, reduce the investment amount or simply stand clear. If the answer is yes, still be cautious, do your research, understand the risks and ensure your ownership structuring is appropriate for the returns you expect to manage tax implications.