How to invest better and have more income for your business

Payment of suppliers, employees, rents, taxes, tools, water, electricity, service providers, commissions… The entrepreneur has a giant list of expenses in the month! It’s a lot of money coming out and any extra income is welcome.

Cutting out superfluous expenses is a “law” in the life of a business owner. Most people save every penny so they can invest in their own company, but some forget to invest their own money. By putting the remaining money into financial investments, you will be organizing yourself to have extra income and earn more and more.

In this post, we at Yubb will show you how a financial investment works, what are the best options for entrepreneurs, and, of course, show you a very simple step-by-step on how to invest better and have more money to do your business thrive. Come on!

What is a financial investment?

For those who don’t know, an investment is what you make in the hope of receiving something in return. I invest time, money and labor thinking of the profit this will bring me in the future” and yes, you are right! You are investing in your company😉

However, here we are going to talk about financial investments. They are the ones where you leave your money with a financial institution (like a loan) and, in return, you receive the interest of that amount, which is the investment income.

In general, all the money left in an entrepreneur’s pocket goes to their company. This is still a type of investment, but it is very important that you save money a month to put in financial investments. That way you will always have extra income!

Yes, when you invest your money in banks and brokerages, you will receive a “no need to do anything” income. For an entrepreneur, having extra income can be very interesting to have more money.

There are different types of investment. In general, they are divided between fixed income, variable income and investment funds.

Fixed income are the most conservative and low-risk investment. They can be guaranteed by the government (National Treasury) or by the Credit Guarantee Fund (FGC), that is, they are safe options. Examples in fixed income: Tesouro Direto, CDBs, LCIs, LCAs, RDBs and so on.

The riskiest investments are in variable income, such as stocks on the stock exchange, cryptocurrencies, and so on. Funds, on the other hand, can be safer (such as fixed income funds) or riskier (such as real estate funds).

What is suitable for the entrepreneur?

Usually, the entrepreneur cannot run the risk of losing money, that is, he has a more conservative profile. This means that the best option for the business owner is to put most of their money into fixed income.

Note that we said “most part” and not “all”: it is very important to diversify! A good investor is one who does not leave all his eggs in one basket. 😉That is, even if you have little appetite for risk, it is always good to have different types of investments in your portfolio to obtain high returns.

Another very important point for the entrepreneur is liquidity. Investments can have daily liquidity or liquidity at maturity. In other words, you can withdraw your money at any time (daily) or your money will be “stuck” until the agreed day (on expiration). For an entrepreneur, the best option is to invest in investments with daily liquidity.

It’s the perfect setting, right? Instead of leaving the money in a checking account or savings account, you invest in conservative investments (very safe) and with daily liquidity (can be redeemed at any time). This way, the amount will always pay off and you will have more income to invest in what matters to you: your business.

Step by step to invest better

If you already understood what the best options are for the entrepreneur, now all that’s left is to invest (or invest better)! As we’ve already said, it doesn’t matter if there is a lot of money or a little, the important thing is to get your hands dirty to start investing and have extra income.

We’ve set out a brief step-by-step guide for you to invest better and have more money for your business:

1. Define your investor profile

Are you conservative, moderate or aggressive? Entrepreneurs tend to be more conservative, but nothing prevents you from enjoying taking a little risk to obtain greater returns. Knowing your profile is the first step.

2. Choose the features that interest you

Are you looking for investments guaranteed by the Credit Guarantee Fund (FGC)? Or that they have profitability higher than the IPCA (inflation rate)? Or are you just looking for the biggest payoff? Have defined what is most important to you to choose applications that have these characteristics.

3. Compare the options

This is the time to research! After the two steps, most likely you already imagine what type of investment you are looking for (fixed or variable income, for example). Now just enter Yubb, type how much you want to invest and for how long and see the available options. From there, it’s much easier to choose.

4. Get to know different financial institutions

Many people are “attached” to the bank that has a checking account, but in the case of investments, it is important to know the different options in the market. Tip: Smaller financial institutions tend to offer more profitability than larger ones.

5. Open an account and apply

Did you like the investment you saw in Yubb? Does it have everything to do with your investor profile and the characteristics you are looking for? Open an account at the institution (it’s completely online and free!) and transfer your money to start investing.

6. Keep analyzing investments

Keep looking for the best investment options through Yubb. Every month, take the remaining money and invest it! This will make you always earn more and can have more income for your business!

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