Guide: how to invest your money profitably

You can reach your personal savings goals faster by investing strategically. A well-thought-out investment plan lets you save for your own home, your children’s education or your financial security in retirement. By investing your savings in the financial markets, you can systematically build wealth over a period of years. You also protect your assets from depreciation due to inflation, as the interest rates on savings accounts are usually lower than the inflation rate. Especially with investment strategy solutions such as strategy funds, the invested capital is less exposed to losses due to inflation, and you participate in economic growth.

Despite many advantages, every form of investment is also associated with risks. However, with the right strategy and broad diversification, these risks can be reduced.

A thorough understanding of financial markets and general investment topics is crucial for investment success. The more you know and the more experience you have, the more well-founded and rational your investment decisions will be. And the good thing is that because expert support is available you don’t have to shoulder the responsibility alone.

How to succeed at systematically accumulating wealth? The following steps form the basis of planning and are a guide for your personal investment plan.

Step 2: Find an investment

How do you save money in a particularly profitable way while taking your preferences into account? This depends on your personal needs and your investment horizon, i.e., the desired time frame. To find the right investment solution you should examine asset classes, financial instruments, companies and markets for opportunities, risks and expected returns.

The advantage of a professional investment solution from investment experts is that you can more easily derive the right approach for your securities portfolio, adhere to an investment strategy in a disciplined manner and thus protect yourself from hasty purchases and sales and the associated rising transaction costs.

Step 3: Determine your portfolio

Once you have considered all of the variables, choose your preferred investment solution. Choosing a portfolio lays the foundation for building your wealth. However, if your circumstances change over time or your values no longer align with your chosen selection, you can always revise and adjust your portfolio.

Do not forget to adjust your investment plan to changed circumstances in your life. If, for example, owning your own home is no longer a priority, you can put aside a regular amount to provide for your retirement. Not every type of investment suits your goals and needs.

Let your money work for you, but check your investments regularly and rely on facts rather than your gut feeling.

Even though the term inflation means “more expensive,” we feel its effect through the fact that our money is worth less. As a result, you can afford fewer groceries with the same amount of money. The same applies to savings. With rising inflation, the same money will be worth less in ten years than it is today because we will be able to afford fewer goods and services with it. Therefore, it is important to offset – and ideally even surpass – any potential losses in value through the interest earnings and/or appreciation of your investments.

Personal finances are an emotional topic. With a strategy that’s right for you and by following a disciplined approach, you’ll be less dependent on your emotions and will know that you have chosen your investments wisely.

Avoid chasing trends or investing in companies you particularly like. Every investment should align with your values and not be driven by short-term developments or feelings. By sticking to your own strategy and reevaluating your course from time to time, you stand a good chance of achieving your financial goals.