So how do I manage my money? I try not to invest in too many areas. Instead I have four areas that I regularly look at when developing my investment portfolio. I call them my ‘ways to invest’. I know this sounds a bit strange but it works really well! In fact, it is probably the best way I know of to vary your portfolio.
Areas of your portfolio you can keep stable. The easiest way to do this is by always keeping your cash and investments in the same bank. Why do I always keep cash and investments in the same bank? Because if you had to lend or borrow your money then you would lose it very quickly indeed.
An excellent way to save money and spread risk is to buy some bonds. Bonds generally offer a higher interest rate than equities and have a longer time to mature. This allows you to spread out the risk. I tend to only buy and sell bonds when I have some cash in the bank. There are other ways to take my impact investing quiz for me though.
What if I were to take my impact investing quiz for me and build up some cash in a savings account? In this case I would still diversify my portfolio but in a different way. Instead of keeping all my bonds in one bank, I might want to buy some bonds that pay high interest rates and reinvest those earnings in other bonds that offer a lower rate. By doing this I am still diversifying my portfolio but I have got some income from the reinvested earnings.
Another option is to take a little bit of each investment and put it into a different portfolio. For example I have my money in a few high quality funds like Vanguard and Fidelity. I also have a few good growth funds that I buy periodically. These are just two examples of how you can spread your risk and earn some additional income at the same time.
You don’t have to take my impact investing quiz for me to understand how important some or all diversification is. You need to do your own research to find out what types of investments to suit your particular goals. The point of this article is to show you how easy it is to invest for yourself and to educate yourself on how you can take control over your financial future. Once you have learned a little more, you will be ready to take your own action.
If you really want to take my impact investing quiz for me then I encourage you to do research online to find out what is hot and what is not. Get a good investing calendar of the past several years and learn when it is a good time to buy or sell. Find out what terms to look for when borrowing money or getting lines of credit. Invest in your education and find out what you can do to reduce the risk of your portfolio. You can’t take my impact investing quiz for me, if you want to succeed, you will have to do your own research.