New Year's Resolutions –
Ingrid Pino finds out why some details on the investment, apart from just returns.
¿How to know what your risk profile is? Natalia de Santiago shares some key points you need to know before starting to invest.
If one of your intentions is to invest, keep in mind that the returns aren't the only thing that matters.
First and foremost: save before you invest. You should only invest money you aren't going to need in the short/medium term.
Make a budget with your expenses and income one year out to make sure you can cover your expenses.
A safety cushion is money you can set aside and not use for daily needs. It's there for contingencies and, in this case, to avoid having to sell your investments if you have an unexpected expense.
No pain, no gain, but you need to consider how much risk you can accept and feel comfortable with. That is why you need to determine your risk profile as an investor.
To figure it out, take a suitability test that assesses your financial status, knowledge and your investing time horizon. As well as your subjective risk profile: How much risk you can accept before the investment becomes stressful.
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