When we organize our finances, we increase the chances of realizing our dreams. The first car, a more comfortable home, travel on vacation, maintain the standard of living in retirement: only a balanced financial life allows us to get there.
Investing our economies well and the extra resources to maximize profitability is the first step. When we leave our money confined to the current account or the Savings account, it does not even maintain purchasing power, since inflation acts to erode its value.
Many people do not invest because they find it difficult. The reasons are the most varied: there are many options and different products; one must keep up with what is happening in the economy; and also by a general lack of confidence in the financial market. However, globalization and the advancement of technology have enabled the development of several tools that help in the process of choice and follow-up, making investments much simpler and more practical.
According to a survey conducted by Serasa Experian (released on 06/07/2013), 35% of the population prefers to spend everything they earn right away. It is very common here to think that making money from investments is only for the privileged, which is no longer true.
Financial education has been widely disseminated in Brazil, but has not yet yielded the expected results, the study found. Two out of three Brazilians do not save money and half are unaware of the advantages of saving. The lack of knowledge demonstrates the enormous distance between people and the financial market. Investing should be as natural as consuming.
It is worth remembering that saving and investing are different things. Just saving does not add value to your money and will not help you achieve your goals. Investing is putting the money to work. A good investment delivers profitability above inflation, values your equity and allows you to realize your dreams.
Social security is tight, and it is not just the Brazilian – world, as governments struggle to cover negative results. The life expectancy of the population grows and as our pension system is based on the simple distribution system, that is, the newest taxpayers bank the retirees, there is no magic. The contribution time tends to be longer and the amounts paid will be lower. To give you an idea, pensions now pay a ceiling of approximately R $ 4,000, but the average is R $ 803, after 35 years of contribution for men and 30 for women.
Research conducted by HSBC and released in March showed that we expect to live 23 years after we retire, but the savings should only last for the first 12 years. Currently, only 1% of the Brazilian population can maintain the standard of living after retirement. If we want to be part of this group, we need to recognize that there are advantages to investing. We have to worry about saving and investing money well for the future.
In Brazil, it is common for people to think about retirement only from the age of 40, which is considered relatively late. The amount we need to invest monthly to supplement our future income is inversely proportional to the time horizon we have before retiring. That is, when we started at 40 we need to apply a much larger amount than if we had started at 20.
Retirement is a stage of life. Faced with this fact, we have no other choice: we need to review our habits and start our applications – now! Expecting to have enough money to start should not be an option. After all, it will not be pleasant to get ahead without the financial means to live comfortably.
My suggestion to those who think it is difficult to invest but want to increase the chances of realizing dreams and having a quiet retirement is to start applying for funds from independent managers. By choosing an investment fund that is appropriate to your profile and with a long and consistent track record of profitability you will undoubtedly be making a simple and reliable investment that will help you achieve your goals.
Do you think investing is difficult?
Prefer to spend everything because you do not see advantages in applying the money? Do you want to invest, but do not know how to start? If you have any questions or need help, please contact me through the “Talk to Sandra” channel on the Órama website.