Investments for beginners: everything to get you started investing

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For many decades, Brazilians have always been “behind the curve” when it comes to investments, putting their money in savings until the moment when it returns close to zero, currently. However, this view has gradually changed, where there are thousands of people looking for investments for beginners.

investments for beginners — (Photo: Google)

This process of movement, with many billions taken from the savings account, especially today (06), with the confirmation that R$ 33,631 billion were withdrawn from savings in January, this being the largest net withdrawal in the Central Bank's historical series, since 1995.

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In this sense, we have separated special content for you who want to start investing correctly, with good profitability and security. See below all the details, tips and the best paths to follow when it comes to investments for beginners.

Why invest my money?

As previously mentioned, having money in savings yielding close to zero is useless, mainly because investing the money we have is the simplest and easiest way to multiply capital.

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Therefore, investing your money is the best way to take care of your present and your future, because after a certain period of time, your capital will increase and provide you with a better life.

Many people, especially young people, are enchanted by this world, but end up falling into traps, internet scammers offering high rates of return and guaranteed quick money, something that is completely rejected by serious investors and the financial market.

Financial trading pyramids, games that seem simple and give you high returns, as well as other means of scams, are common, unfortunately, but this does not qualify as investment.

Therefore, we decided to list here the right path to follow, after understanding the reason for investing your money.

How is it possible to make money with investments for beginners?

Basically, you remember math class when the teacher taught you the compound interest formula, right? Where the Amount is the Invested Capital multiplied by 1+ interest rate, all raised to time.

Okay, this sounds complicated, but how does it work in practice? It's quite simple. You can lend your money to banks, companies and even the Government, and it will return this money to you after a period of time, with additional interest on the amount you lent.

This way, if you lend your capital to Banco do Itaú, for example, in the amount of R$10.000,00 after 1 month, it will return you R$1.100,00, that is, you had a real gain of R$100.

What types of investments?

Furthermore, after understanding how it is possible to make money with investments, it is possible to say that the financial market is known for different types of investments, from different areas, segments and characteristics. However, they are combined within two large classes, or groups, as you prefer. Are they:

Fixed Income

This is the best asset class for investments for beginners, as it is a large set of investments, and has a more conservative profile, that is, for those who are willing to hand over a large part of their profit to have more security and good liquidity.

Fixed income investments are indexed to the Selic index, that is, they act according to the variation of this index. If it increases, the return increases, if it decreases, the return decreases.

However, there are investments in pre-fixed and post-fixed fixed income. In these cases, the index rates are set at the current Selic rate or the future Selic rate, respectively.

Variable income

Following the content on investments for beginners, we have the best one for those who like high returns, but it is also the most dangerous among the types of investments. Here in this group we can place the famous stock market shares, which vary every single day, up and down, meaning that the stability of fixed income does not exist here.

What are the best types of investments for beginners?

1. Selic Treasury

To start the list of best investments for beginners, here we have the Selic Treasure, one of the main ways to invest safely and bringing greater profitability than a savings account.

In this type of investment, you will lend your money to the Federal Government for use in projects for the country and, in return, you will receive your money with a return according to the Selic rate.

The main advantage is that in this modality you do not leave your money tied up for long periods, and can redeem it as soon as you wish, called Daily Liquidity.

2. IPCA Treasury

Another type of investment for beginners is IPCA Treasury, where it is similar to the Treasury Direct, but it operates according to a fixed rate + IPCA (National Consumer Price Index) performance, always above inflation.

However, you will not be able to withdraw this amount before the expiration date, otherwise you may lose total profitability.

3. Actions

Finally, here we have one of the most talked about investment options for beginners, where we have an investment with a greater proportion in variations, which can go up a lot or fall a lot, like a graph.

When entering the Brazilian Stock Exchange, you will have access to high-value financial assets that are widely known by many people, as in the case of being able to invest in Magalu, Petrobrás, Banco Santander.

The process is relatively simple, where you just need to acquire shares in companies and earn in two ways: with the appreciation of the asset over time and with the dividends that will be paid, that is, part of the company's net profit.

Investments for Beginners: 4 Essential Steps

From now on, after learning many lessons about the main investments for beginners, you need to see what you should actually do to get out of where you are today and start building an investment portfolio for your future. See the 4 essential steps:

1 – Pay your debts

This will be your first step towards starting to have a quality and successful financial life. There is no point in earning more in this first step, as your financial situation will remain the same. You will have to pay your debt in full or in part and then proceed to the second step.

2 – Have more money

After paying off your debts, focus on making cash, that is, having more financial income. Look for a main source of income that pays you at least your monthly costs and soon after that, look for extra income alternatives to start making a monthly profit in your cash flow. When you make a monthly profit, after you manage to have extra in your account, you can move on to the third step.

3 – Always save

Most people, when they reach this stage, end up wasting the extra money on superfluous things, returning to the second step, and even the first step. So, be careful and save as much as you can. Close your hand so you can move on to the fourth point: investments for beginners.

4 – Invest your money

This step will give you a lot of financial autonomy, in addition to being able to be sustainable if something happens. We call the first level of investments for beginners as “Building an emergency reserve”, which is equivalent to 6 months of the amount spent monthly on your home. Once you have this amount invested in Fixed Income, yielding at least 100% of the CDI, think about varying your investments.