The most prosperous societies are those in which people make large savings since these savings translate into a productive investment that impacts the real economy.
The Woman Post | Catalina Mejía Pizano
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The financing for enterprises comes from the savings that people have in different banks. It is this money that enables enterprises to invest in technology, launch new goods and services, and even conquer new markets. People who have savings can also enjoy better living standards in the medium term.
Saving money means sacrificing the consumption of today for the well-being of tomorrow. In order to guarantee that our saving will help us have good living standards in the future, we must make sure that our savings maintain their value or increase it throughout time. Hence, our savings must have profitability, but how can we achieve this? Let's explore some interesting tips:
1. Effective Ways To Save Money
First of all, we must not think of savings as the money that is left over each month. We should always set a mandatory percentage that we need to save monthly. A good way to achieve this is to think our consumption must equal income minus savings. There are two ways to increase our savings, one is to increase our income and the other is to reduce consumption.
2. Why Should We Invest?
If you are seeking high profitability, you must be willing to risk more. One option is to invest in startups or technology entrepreneurs. Not all of them will be as successful as google but they are still attractive options in a world that is constantly becoming more digital.
3. Invest Little Amounts and Widen Your Portfolios
Investing in startups is far riskier than investing in mature companies, but it can be worth it in some cases. Not all startups, will turn out to be successful, but one out of 10 will be.
4. Crowdfunding Platforms
Crowdfunding platforms were created to enable low-risk investments. Various micro-investors can use their money to positively impact different entrepreneurship. Equity crowdfunding is the type of financing used by small enterprises looking for large capital to grow their business. In real-estate crowdfunding, investors place approximately 5000 dollars in part of the property they wished to buy. Investors receive trimestral payments, according to the rent generated by the property.
5. Advantages of Investing in Crowdfunding
An important aspect to bear in mind when looking for profitability is that we should only invest amounts that we can afford to lose. Let us look at three reasons why we should invest in crowdfunding: When investing in a start-up, our money goes directly to helping enterprises achieve their missions. Also, various start-ups have objectives that help humanity in different ways. Investing in start-ups involves taking higher risks, but also comes with the possibility of higher rewards. The greatest part of crowdfunding platforms is they enable high-risk investments, with small amounts of money but also with high profitability. The shortage of funds prevents the investor from making emotional decisions and helps investments reach their maximum potential.
In general terms, it is clear that going for higher risks, but a low amount of money investments, enables you to get more profitability. This is why investing in equity crowdfunding can be a great opportunity to help enterprises achieve their mission while potentially increasing your savings too.