Many people often ask me how to invest their monies smartly. Well, if you have something on your account and can save every month some money i have some useful tips.
Cash is King
The first and most important is to have liquidity in good and bad times. Same as for companies the rule applies “cash is king”. Therefore i follow the rule to keep an amount of three times of an average monthly net salary on a saving account with daily interest. This ensures that you don´t devaluate your savings through inflation completely and you always have access.
Flexibility in times of increasing interst rates
Fixterm deposits are getting more and more attractive and are safe! If you have i.e. 20TEUR, divide it by three. The first part is invested in an fix term of 6 month. This makes sure that in 6 month after the interest rates have increase again you can benefit of new higher rates. The second part in 1-2 year fix term deposit and the third part beyond 3 years, maybe even 10 years. This is a conservative but safe way to invest your money and benefit with the new situation in the market being high interst rates. Looking into the development of the inflation i strongly believe that interest rates might continue to raise.
I want to gamble
As many of us like to gamble (and that is why we are on wallstreet-bets.net) I spare some money (which should not be more that one to five percent of the net salary) to invest in high volatile and risky shares like Gamestop (GME), AMC or Bed Bath and Beyond (BBBY) – i really like them – Be aware that you don´t invest money you can´t effort to loose.
Invest in Shares during Recession
Investing in shares during recession is a difficult choice. There some Value Shares that will navigate us safely through a possible recession. Warren Buffet proofed the way. Personally i believe money makes like Coca Cola and Apple are good examples on stocks which seem to be resistant. They are able to cope best with inflation as they can increase their prices as they want and everybody pays. Companies who can 1 to1 pass the inflation through to their customers are the share to focus on.If you want more examples and insites do not hesitate to contact us. If you like this article please support via the donate button.
This is not a recommendation only my personal opinion. If you like the article please donate.