Category: Blog

How to invest money? 7 tips for entrepreneurs! II

7 tips for investing money

Now that you’ve understood where you can invest money, let’s look at some practical tips that can help you get started with your investments.

  1. Look for different options

As you can see, there are several investment options available, and each of them has advantages and disadvantages that can significantly influence performance.

Before deciding, do an extensive search and carefully evaluate to choose the options that best suit the characteristics of your business.

  1. Consult a specialist

For those who are just starting out and have no knowledge of the subject, research on your own may not clarify all the doubts and details about investments.

For more security, it is worth consulting a specialist in the field, be it a bank manager, accountant, investment analyst or economist. This way, you can carefully analyze each option and allocate the ideal value for each type of investment.

  1. Let the money work

Even if one of your choices has daily liquidity and therefore makes withdrawal possible at any time, get organized so that this is not necessary.

By bailing out money before the hour, you lose income, which makes all the effort you made to collect and invest that amount worthless.

  1. Have a goal in saving

One of the points to consider when applying the money is the goal you want to achieve with that value.

If you need to have an amount x in a period of 2 years to be able to expand your business, for example, it is interesting to bet on a format that has higher profitability, even if the liquidity is lower (which will not be so bad, since it will serve as an incentive for you not to withdraw the money before time!)

  1. Don’t mix personal finance with business finance

By separating your personal and professional finances, it is easier to see the real situation of your business.

By keeping the two accounts together, you may feel that your business has more money to spend than it actually does, as it is mixed with what is intended for your personal expenses.

Imagine spending that money on your business that was meant for taxes collected at the beginning of the year, and then having no way to replace that money!

  1. Save on the little things

On a day-to-day basis, we buy a lot of low-cost things that, for the moment, don’t seem to affect our overall spending, don’t they?

However, when we add it all up at the end of the month, we find ourselves with a huge bill, full of “little things”.

One tip for saving more money is to watch out for these smaller expenses which, if reduced, can generate good savings and allow you to make a larger investment.

Here are some examples:

  • When shopping for food and cleaning and hygiene products, you can spend more time looking for the best prices and promotions in stores. In the case of food, investing in seasonal food can help you pay less and also include several ingredients that are not part of your routine.
  • As far as transportation is concerned, try to leave the use of private transportation applications only for times of need, investing in walking and public transportation whenever possible.
  • If your concern is that outing with friends, there is nothing to stop you from setting aside a fixed amount per month for fun. This way, you can maintain and adjust your personal life without overextending yourself and hurting yourself financially.
  1. Invest any extra money

You might do a freelance job, get back an amount you borrowed a few years ago, or have access to any money that was not provided for in your fixed income.

At this point, try not to get carried away and spend it all on superfluous things. It’s hard, we know, but think long term and put that value into your investment to further increase your income.

Invest in your business

Now that you’ve seen that investing is not a seven-headed bug, you can start getting organized to invest money in the best way possible.

Remember that, in addition to enabling you to multiply the financial return of your business, part of the return can be used to promote improvements in your business and help you be more successful!

How to invest money? 7 tips for entrepreneurs! I

Listening to investment advice is crucial in every entrepreneurship and business.

We can say that it is common for people, regardless of the work they do, to seek financial stability, but with the concern of having to carry high debt and loan interest to get it.

For entrepreneurs, knowing how to manage their money in a healthy way is even more important, considering the uncertainties that a business of their own can bring, mainly for beginners.

We know that when money is idle, easily accessible and has no destination, it is easier to spend it irresponsibly and unnecessarily.

That is why we are going to share 7 tips to invest money and have the guarantee that, when you need it, you will have that value available (plus the returns!).

The importance of investing money in different ways

Some investments allow you to spend a small amount, while others require a higher value to get started.

With withdrawal, it works the same way. There are investments you can withdraw at any time, such as savings, and others in which you will only see your money again after six months or a year.

If you investigate the market, you will see that there are investment options available for every profile of entrepreneur, from the insecure to the more daring.

However, it is not advisable to put everything you have (even if it is little) into one investment.

As the financial market suffers many fluctuations, mainly in more fragile economies, if you put all your money in one place, in the event of a fall, you can suffer many damages or even lose all the value invested.

What value to invest?

First, it is important to know that there is no minimum or maximum value to invest, the amount will vary depending on the type of investment and the profile of the entrepreneur.

However, there are some calculations you can make to think of an amount that is ideal to reach your goal.

Start by recording all your fixed expenses, such as rent, financing, electricity, water, health plan, telephone, Internet, monthly bills, taxes, studies, among others. Don’t forget to record the expenses generated by your company, such as space rent (if applicable), production costs and payment of suppliers.

Record a cash flow value, so that the company continues to operate, even if you are not generating as much income.

To perform this control, you can use Excel, Google Drive or financial management tools available online.

Types of investment

There are several types of investments in the world, so we will present the main formats and explain what makes each one different so you can decide the best destination for your money.

When analyzing the advantages and disadvantages that the models present, try also to observe which ones are more suitable to the goals you set for your venture.


Saving is one of the most common forms of investment, probably because it is available in any financial institution.

However, it has lost ground to options that, despite being a little more complex, end up being more profitable for the investor.

To begin with, it is only necessary to find a financial institution with the required documentation in hand and open a savings book. From there, the investor can deposit and withdraw the desired value when needed.


  • To have daily liquidity, which is exactly that practicality of being able to withdraw money at any time.
  • It’s exempt from income tax.
  • It is a safe form of investment, since in several countries it has the protection of protection funds per individual.
  • There are no charges.


  • In some countries it may be underperforming.
  • Although withdrawals can be made at any time, the investor receives the return only when he leaves the money until the date the deposit is one year old or more, i.e. once a year. If you withdraw it earlier, you lose the entire yield.
  • For those who have difficulty saving, the daily liquidity resource can encourage unnecessary and early withdrawal of money.

Time deposit

This investment option is a security issued by banks in order to raise money to finance their activities, such as investments or loans to third parties.

To simplify, we can say that, when you invest in a term deposit, you lend your money to the bank and receive in return the payment of interest on the operation, which can be pre- or post-fixed.

In most cases, the longer the application period, the higher the valuation offered.


  • It presents greater profitability compared to savings.
  • In many countries it is also protected by credit guarantee funds, making it a safe investment.
  • It has shorter grace periods compared to other types of investments, allowing the money to be withdrawn after a short period of time from application.


  • In many countries it is subject to income tax, with taxation varying according to the term of the investment.
  • It requires a minimum initial amount, which can be difficult for those who are starting out and/or do not yet have the stipulated value.
  • Normally it cannot be withdrawn before 6 months.

Bills of Exchange

Bills of exchange are a form of savings, where the amount of money to be invested can be withdrawn on a set date and whose returns depend on the market to which the value is associated. One of the most common markets is real estate.

However, in those cases, the investor “lends” the money to the financial institutions that issue it to be offered as credit in the real estate or agribusiness areas, for example.


  • It has a higher return in many countries, compared to savings and time deposits.
  • They are exempt from income tax for individuals.
  • They usually have some credit fund protection.


  • They require a higher minimum application, compared to that of the time deposit.
  • In the event of a 90-day recovery period, i.e. before this period, the money invested cannot be withdrawn.

Direct Treasury

Treasury Direct is a program developed to enable the online sale of federal government securities to individuals.

If in the previous options the investor “lends” his money to banks, real estate institutions or others, when choosing Tesoro Directo, the loan is made directly to the federal or national government.

Therefore, the investment is available for the government to invest in public works and, after the determined term, the investor receives the capital back with the corrected value.


  • It is an affordable investment, whose minimum values for application are usually low.
  • It offers security for the investor because they are guaranteed by the National Treasury.
  • It presents high profitability.
  • It has daily liquidity.


  • The investor loses the return if the redemption is made before the stipulated time.
  • Requires payment of fees.
  • It is not exempt from income tax.

How to start investing

Learning to invest should be a basic skill for anyone, but very few people devote time to this task. A person’s economic future is determined by:

To know how to start investing these 3 points are fundamental. But most people focus only on the money they earn, some get to the second step (saving) and only a few take the third step (investing) seriously. The 3 “legs” are very important for the economic future, but if you had to name one of them as the least important when it comes to accumulating wealth I think it would be the first one; the money you earn.

If you earn a lot of money but you spend it all, you cannot create wealth. However, it is possible to earn little, save a lot, invest well and obtain a very good result. Time is also very important, accumulating good wealth with a low income in a short time is extremely difficult. But over a long period of time, time and discipline mean that practically anyone can significantly raise their standard of living.

The most important investments are:

  • Stock market: I think it’s the best option for many reasons.
  • Real estate: Historically it has been the second most profitable option after the stock market. Overall it has been a good investment, although not as good as most people think. The investment in real estate, in practice, has many disadvantages that are not usually taken into account when talking about it in a theoretical way, as you can see in the previous link. The real estate market is pending a reform that would radically change the valuation of real estate; the liberalization of land. If the land is liberalized in a real way the value of the real estate will fall significantly.
  • Fixed income: It is considered the safest, but its real profitability (the one that takes into account inflation) is very low. It can be used temporarily, but it is not a good long-term investment because of its low profitability. Obviously it is preferable to stay in a fixed income for a while than to buy overvalued shares. But it is not possible to “live off the income” by investing in fixed income, because the moment you stop reinvesting the interest, the real value of your assets begins to fall and eventually disappears in the long term.
  • Objects of art: It is very complicated for people who are not very expert. Most art objects cannot even be considered as an investment, since only very high quality ones deserve this consideration. Forgeries, fashions, etc. make this type of investment very difficult. Besides, they do not provide a rent and the same work can have very different prices at the same time depending on the place of purchase, who is the buyer and the seller, etc.

The first thing that should be done is to design the management of the patrimony and to decide what percentage of the total is going to be invested in the stock market. It can range from 10% to 100%, depending on each investor.

To invest in the stock market there are 2 options:

  • Investment funds: What are investment funds and what are their advantages
  • Direct investment in the stock market: Advantages of investing directly in the stock market

I think direct investment is more interesting, but for some investors it will be preferable to invest through investment funds. But before deciding to invest through funds I think you should read the articles Stock indices do not reflect the dividends paid by companies and How to match (and beat) stock indices so that you understand well the implications of your decision. You should also bear in mind that direct investment in the stock market and investment through funds are compatible options.

Before you start buying shares you should choose the strategy you will use to invest in the stock market. You can use more than one strategy, in which case you should decide how much money you will devote to each strategy and open a stock account for each one. The same account should not be used for several strategies, as it makes it difficult to evaluate them and a bad strategy could slowly and “silently” “eat” the profits of good strategies. They should be separated so that they can be easily evaluated and corrective action taken if one of the strategies is failing.

The choice of strategy and the acquisition of the necessary knowledge to carry it out are parallel tasks. For this purpose, books or websites such as this one can be read, the contents of which are completely free. You will find the stock market articles useful.

An initial difficulty is that in order to choose the strategy you have to have some knowledge, for which you have to read books and spend some time. But that initial lack of knowledge means that you cannot choose correctly which books to read and you may read several books that do not suit your needs, which will have been a waste of time and money.

If you don’t know which strategy to choose or which books to read, I recommend a strategy that I think is very suitable for most individual investors because of its combination of profitability and long-term security. It consists of building a solid portfolio of stocks with good future prospects that have a high dividend yield. And that, in addition, those profits and dividends grow over the long term above inflation. These companies are usually banks, utilities (electricity, gas, water distribution, telecommunication operators), highways, insurance companies and construction companies. They are not the only ones, but many of them belong to these sectors. All the contents of this website will be useful for you to develop this strategy or others.

The fundamental analysis is the one that tries to determine the value of companies based on their results and the assets (factories, brands, real estate, machinery, customer portfolio, etc.) that they have.

The technical analysis only looks at the graphs of the quotations. It does not pay any attention to the results and assets of the companies, only to the evolution of their quotation on the stock exchange. On many occasions, fundamental and technical analysis are placed on two opposite and irreconcilable sides. In my opinion, they are totally compatible. 

A long-term investor should use fundamental analysis to say “what” companies to buy and technical analysis to decide “when” to buy them.

He should follow the results presented by the companies every quarter. You can use several sources to do this, such as the results section of this website, the companies’ own websites or newspapers. Use the one you find most comfortable and understand best. No matter how good a company is, it cannot be bought at any price. Pay close attention to the present dividend yield and to the prospects of that dividend increasing above inflation in the future. Most companies in the sectors listed above (banking, utilities, motorways, insurance and construction) meet these characteristics.

If you find a better strategy that you like best, do not hesitate to use it. But don’t start buying shares without knowing why you are doing it and what goals you intend to achieve with your investment. Every investor must find a strategy that suits his needs, his objectives and his way of being. The strategy should be tailored to the investor, not the investor to the strategy.

3 things you should know before you start investing

Investing your money is critical, and if you don’t already do so, I advise you to start. This is how Marc Frau, author of Opinatron and Inversionautom√°, tells us in this article what his formula is.

Besides, although sometimes it may not seem so, investing is easy, and anyone can do it.

However, you can’t do it in a crazy way and without having a plan, as it will surely go wrong.

That’s why in this article I want to talk to you about the 3 things you should know before you start investing your money

Three things that, once you know for sure, can lead you to success as an investor.

1 – What time frame do you want to invest your money in

The first thing you should know before you start investing your money is exactly what you want to achieve.

It won’t be the same if you want to make a profit on money you will need in 1 year or if you want to start preparing a mattress for your retirement.

Therefore, the first fundamental aspect to take into account is the time frame in which you are going to invest your money.

We can differentiate between 3 investment terms, and I’ll tell you right now that my favourite is the long term.

Short term

The short term is equivalent to between 0 and 2 years.

Short term investment is something known as trading, and in my opinion it is quite risky and I would not recommend it.

If you have money and you want to make it profitable in the short term, my opinion is that the best thing is a bank deposit or an interest-bearing account.

Medium term

The medium term is equivalent to between 2 and 5 years.

You may be saving up to buy a house in a few years, and you want to make that saving pay off so that you don’t have the money standing around.

In that case, your investment objective will be the medium term.

Investing in the medium term is difficult, because it is not advisable to use the same instruments as when investing in the long term, which are those that offer the best return/risk ratio.

But it is also true that it does not make sense to have your money stopped for 4 years, for example.

If you want to invest in the medium term, one option can be the same as before, bank deposits.

There is also another option that is quite interesting and that is becoming more and more fashionable, crowdlending. 

Long term

The short term is equivalent to more than 5 years, even 10 years.

As I told you before, the long term investment is my favorite, and I think it is the most recommended for many.

Among the many options that someone would have, I think the most interesting for someone who is starting out is undoubtedly investing in index funds through a robbery advisor.

Here is a comparison of the most important robo advisors to start with. 

Investing for the long term through a Robo Advisor has, among others, the following advantages:

  • The risk is low, because the longer term the less risk.
  • The average expected return is quite high, around 7% per year, a figure with which you would double your money every 10 years.
  • You take advantage of compound interest.
  • The diversification is very high, since you will be investing your money in thousands of companies all over the world.
  • The investment is totally automatic and does not require dedication, so it is a method suitable for anyone.
  • Commissions are much lower than those offered by most banks.

The biggest disadvantage of long-term investing is that it is not suitable for someone who wants to get their money back in a short time.

It could be recovered, but it is not ideal because if the stock market is low you would be losing money.

Personally I advise you to invest in the long term, but only if you are not going to need that money for at least 5 years, even more.

2 – How much money you save and how much you will invest each month.

This aspect is also very important, and is something you should be clear about even if you don’t want to invest.

Almost everyone works to make money at the end of the month, and usually that money comes out of the account very quickly.

Saving is fundamental, and it is also very important to know how much you are saving and have a plan to follow.

One option, for example, is pre-saving, which ensures that you always save the same amount.

When you know how much money you are saving, you can decide how much you want to invest, so that you can also draw up your investment plan.

The first step will be to create a safety cushion, if you don’t have one, with which to face the unexpected.

You do not want to have 100% of your money invested, because if something happens that makes you need money you will have to recover part of your investment regardless of how the market is.

When you have the mattress you can invest the rest, and my advice is to do so by diversifying temporarily.

For example, if you save 500 euros a month and decide to invest 300 euros, you could make purchases of 600 euros every 2 months, or even 900 euros every 3 months.

What is really important is that you have a plan and follow it, both to save and to invest.

Usually doing things without planning does not give the best possible results.

3- What investment strategy do you want to apply

Although I have already told you in the first point of what I consider the best investment options in terms of time, I do not want to finish the article without mentioning the importance of being clear about your investment strategy.

Starting to invest without being clear about what you want to do is a mistake, since you will most likely end up making twists and turns in your strategy, something that will surely make you lose money.

Decide how much money you want to invest and how long you want to invest it, and then decide which strategy or strategies you are going to follow.

As I said, my preferred strategy is to invest in index funds through a Robo Advisor, which is an automated manager that creates and manages a diversified portfolio for you.

But that’s not the only acceptable option.

You can also invest in crowdlending, trading, buy and hold, value investing and many other alternatives.

The main thing is that you have a clear idea of what you want to do before you do it.

Investing is not difficult, and anyone can multiply their money by doing it, but you can also lose money if you don’t have things clear.

Why is it important to invest money to expand your business?

The life of a business goes through different phases: the initial phase, in which your efforts are focused on the choice and registration of name and type of company, search for workers, location of your market niche; the one of being able to generate income; the one of growth and the one of stabilization plus sustained growth. As you can see, the big difference between a SME and a book or film is that the end is not a desired stage, but a natural consequence of bad management or lack of planning.

Something that all phases of the development and growth of your business have in common is the importance of investing money. In the face of this statement, the phrase “is it the only possibility?” will surely cross your mind, yes, and in this article we explain why.

Investing money, an action that reinforces all the steps to grow your business

The much-vaunted phrase “money moves the world” has a much broader meaning than is usually employed. For most people, it has negative connotations, but everything changes when they enter the labour market and discover that every piece of the social machinery needs some remuneration to carry out its functions.

Therefore, if you want to launch your business, you will have to invest money. If you get a lot of customers, you will need more money to hire more and more specialized staff. Finally, if you want to grow nationally and, later, internationally, the operation of your present and future business structure will require the payment of capital.

Once you have grasped the idea that investing money is the best way to expand your SME, we will leave you with the keys that complement this action:

  • Motivation. It is advisable that, among your motivations, you will find, in addition to making money, to realize yourself as a person, learn new things and surround yourself with enriching points of view.
  • Realistic goals set. For this, it is essential to define what your business is, what you want to turn it into and the resources you have and could have for the correct development of your growth plan.
  • Focus on the path you have set, that is, instead of diversifying madly just to make money quickly (this never works), the important thing is that you strive to improve and publicize the products or services you have.
  • Delegate functions. As you grow up, you will notice that you will not have the time to perform all your duties, so it is appropriate to surround yourself with professionals who perform your duties in the same way you would.
  • Be able to recognize mistakes and modify strategies that fail. It is inevitable that things will change and to get out of the difficulties that come with it, you must have a humble and proactive attitude. You must also work on the virtues of perseverance and patience.
  • You must have powerful databases of your clients. In this way you will be aware of their needs and the ways of dealing with each of them.
  • Hire the best professionals in your sector. A trained staff is one of the best guarantees of success for your business.
  • Reinvest. From the moment you start a business, it is vital that you set aside part of your income to continue improving any aspect of your SME.
  • Bet on content marketing and presence in social networks. We always repeat, nowadays, people are on the Internet, so in order to grow, it is necessary to become their reference website.

As you can see, in addition to investing money, to make your business grow, you need to accompany that capital with a series of actions and persevere. But always keep all the pieces of your expansion, because if you delete one, the rest will be seriously affected. After our indications, what are you waiting for to expand your business?