Investing in cryptocurrencies can be an excellent business in the long run, but you must be careful to control your finances before making your first investment.
In this sense, in addition to establishing a budget, you will need to know how to save money to start investing in cryptos.
In this article, we are going to teach you the main tips for saving before making an investment in digital currencies and the importance of this practice.
Tips on how to save money to invest
To save money to invest in cryptos, you need to follow some effective steps to optimize your income and budget.
Check out the tips below!
Use a financial manager
The best way to save is to take care of your financial life , knowing how much you earn and how you spend your money.
For this, the ideal is to use a financial manager. The most complete option available on the market is the Mobills financial control platform .
Through the application or computer, it is possible to create personalized financial plans with budgets to make money left over at the end of the month.
In addition, it is possible to manage credit cards (even automatically), analyze graphs and reports of your financial life, and much more.
Having the help of such a tool will be essential for you to be able to follow the next tips.
understand your reality
Making a diagnosis of your financial life will bring you a context about the reality of your finances.
Naturally, taking the first steps in the financial market without understanding our reality can make us “walk without leaving the place”.
So, see if you have debts, your sources of income, your fixed and variable expenses, your main responsibilities, etc. With the help of the financial control tool, it is much easier to visualize and take care of finances.
Decrease or cut expenses
Spending on entertainment and leisure, for example, can be reduced or exchanged for cheaper or even free activities.
Therefore, prioritize essential expenses in your budget, such as housing, food and health.
If you pay for the gym and don’t go, start going or cancel. If you pay for a subscription service and don’t use it, cancel it.
In addition, even on essential expenses, it is possible to save, such as water and energy.
Many times, some people buy only on impulse, without thinking about the damage it can cause to their personal budget at the end of the month.
So, avoid consumerism! Before spending your money, check that it is really necessary and that the amount will fit within your planning.
An effective method is to stop visiting store websites or product pages and leave that WhatsApp transmission list of that store you love so much.
Organize your purchases
Finally, another excellent way to control your spending is through a shopping list.
Before making any purchase, write down in advance which products you need and follow your list as much as possible.
This planning will prevent you from buying what you don’t need and still save money.
Why save to invest?
The wealth we will accumulate in the long term depends on three factors:
- Volume of investments;
- Achieved profitability; It is
- Elapsed time.
Therefore, those who save are leaving more money at the end of the month, which, in turn, can be used to invest in cryptos.
Imagine the following situation: two investors invest in the same cryptocurrency for the same period, 30 years, but one invests R$100.00 and the other R$200.00 per month.
If both manage to earn 1% per month, the first investor will have R$349,496.41 while the second investor will have R$698,992.83 at the end of the period.
In this way, the second investor will have twice as much equity as the first, just because he invested R$100.00 more every month.
Therefore, the more money you manage to make at the end of the month to invest, the greater your results in the future.
How to start investing in cryptos
If you have already organized your finances, created a proper budget and started making extra money through savings, you can start investing in crypto.
However, you must first understand what a cryptocurrency is. These are digital currencies that use cryptography for protection and trading .
Currently, there are thousands of different currencies with different proposals and technologies, so it is important to choose carefully which one you will invest in.
In any case, cryptocurrencies were created in 2008 to escape state interference and the centralization of the banking system.
In this sense, as it is a very recent market, it still presents a lot of volatility, that is, currency prices fluctuate a lot.
Therefore, it is very important that the cryptocurrency investor is aware of this reality and these risks.
In addition, new cryptoassets appear every day, so you need to make a very strict filter to avoid those that are not promising.
Save to invest
Given what has been said, we can see the importance of organizing our finances to save and thus invest in cryptos.
In addition, the steps to start investing cannot be ignored, as they are what will guarantee our financial success.
We must be careful when choosing the cryptos we are going to invest in, considering the wide variety of currencies on the market.
Thus, we are able to invest more and better and increase our assets in the future, which in turn will guarantee a peaceful and stable retirement.