What can I do with my savings? I think that there are three answers!
Summary
First answer. You can do nothing!
Second answer. You can give your savings to someone else and pay him to administrate them.
Third answer. You can become the administrator of your savings!
Conclusions.
First answer. You can do nothing!
However, remember, keeping savings in a drawer is harmful and dangerous: inflation will erode their value day after day and they are easy to be stolen (or incinerated by fire)!
You can save them in a safer place like a bank, but inflation will strike anyway and you will add banking costs, too.
So doing nothing is not the best idea. Period.
Second answer. You can give your savings to someone else and pay him to administrate them.
It’s better than doing nothing, of course!
You can choose a mutual fund or a hedge fund, give it your money and look at the performance year after year, expenses deducted. It’s a lazy way to use your money, but it can work.
I don’t like this possibility because I want to have control over my money ever. Earning money takes a lot of effort and I don't willingly give it to other people.
Third answer. You can become the administrator of your savings!
This is my favorite solution and it’s what I suggest to you, although it's the hardest way. And I have built this blog to help you.
Why is it the most complicated way? Because you must learn a new job (investor)!
And if you completely follow my opinions you must learn two new jobs: investor and trader. Believe me, they are different jobs.
Becoming an investor and a trader you can allocate your money between these two different doings; for example, trading 10-20% (more dangerous activity) and investing 80-90% (less dangerous activity).
Remember that investing and trading are both of them dangerous, especially in case of a lack of knowledge from you.
Furthermore, also this way has costs: time (that you must employ to study) and money (that you must pay for books, courses, etc.).
There’s no free lunch in finance!
Conclusions.
- As usual, knowledge is the key. The more knowledge you have, the more direct and profitable will be the administration of your savings (and this blog can help you!).
- You can only obtain the knowledge you need by studying hard and spending money on books and courses. If you are lazy this is not the right solution for you and the performance of your savings will depend on the professional ability of other people. I don't like this.
A sincere wish of good work to all!
Written by F. GRAMOLA (*).
(*) Member of S.I.A.T., the Italian Society of Technical Analysis (member society of I.F.T.A. – International Federation of Technical Analysts).
Warning
We merely cite our personal opinions for educational purposes only.
Investing and trading are risky. Don't invest or trade money that you cannot afford to lose.
All trademarks are the property of their respective owners.
Initial Photo by Elisa Ventur on Unsplash.
We merely cite our personal opinions for educational purposes only.
Investing and trading are risky. Don't invest or trade money that you cannot afford to lose.
All trademarks are the property of their respective owners.
Initial Photo by Elisa Ventur on Unsplash.
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