Effective savings methods: automated investment

Saving and saving methods have been linked to man since the beginning as a very important part of his culture. It has always been associated with terms such as prosperity, abundance, and fortune. In fact, the very image that comes to mind when we imagine it, the piggy bank, is a reminder of this.

So much so that in Asia, where the first piggy banks came from, the first savings methods, with this shape (from the 12th century), were called ‘cèlèngan’, which means ‘resembling a wild boar’. Precisely the animal that symbolizes prosperity, abundance, and fortune for Asian cultures. This simile has also reached the West where, for example, in Germany (where the first piggy banks appeared in Europe), a lucky person is called “Schwein” (pig) and the very figure of the animal is said to bring luck.

Why does saving matter?

The fact that our ancestors equated savings with fortune or prosperity is no coincidence. Saving is of vital importance in the life of any person, as it represents a support not only to deal with emergencies, but also allows for a better life in the future. One of the reasons is that it helps to meet vital goals and objectives.

However, it is not enough to just save. To the question that many people ask about whether they should invest or save, the answer is simple: you must save in order to be able to invest, and you invest in order to be able to save.

How to save? Saving methods

For many people, saving money is a real challenge. However, there are savings methods that can help you achieve this. These include:

1. Set a goal: when it comes to saving, it is much easier to do so if we have a goal in mind to meet, as this helps us to be consistent. The goal does not have to be very ambitious and not unique, we can have several, the only important thing is to have one that really motivates us.
2. Reduce your expenses: a good method of saving is to cut back on your unnecessary expenses. To do this, do a simple audit of what you have spent money on in recent months, detect spending patterns that are superfluous and try to reduce them as much as possible.
3. Increase your income: finding an alternative source of income is one of the saving methods that helps the most.
4. Automatic savings: for many people, savings are nothing more than the money they have left between paychecks. A misconception, as another trick is to have automated savings, that is, to set aside a fixed amount of money when you get paid. Also, if this saving method is automatic, even better.
5. Automate investments for savings: you could say that this is the next step, with respect to point 4, and that is that once we withdraw money each month, it goes to some financial products that allow our money to grow just by having it there.

The best savings method: automated investment

Automated investment stands out because it is the element that really makes the difference when it comes to creating a financial cushion. In addition, it is probably the least demanding step, since it is done in a simple and comfortable way, being automated.

To do this, we first have to automate a series of movements of our cash flows: the first is that a fixed amount of money must be set aside from our account every month. In this sense, the most logical thing is that it is always the same, but you can also modulate it depending on the extra expenses you may have, for example, the month of vacation. The second step is that this money goes to an investment account or portfolio, and from there it is distributed in different investment products that generate a return for you. The best of all is that although it sounds cumbersome, it is not, since there are platforms that do it for you.

Over time, you will see how with a small gesture you are generating a powerful savings method that will allow you to obtain a good cushion of money for your future goals. And the best thing is that you will do it without any effort.

Savings methods: products to take advantage of automated investment

To learn a little more about how you can carry out automated investment to grow your savings, it is important that you understand which products your savings can go to. In this case, the safest thing for you and your money is that they generate interest without any type of risk, so the most convenient ones are:

• Savings portfolio: This is a financial instrument designed to preserve capital and provide moderate growth. Unlike more aggressive investment portfolios, savings portfolios prioritize security and liquidity, making them ideal for those seeking to keep their funds accessible and with low risk. An added bonus is that these types of products currently have a high return.
• Target portfolio: This is a type of savings portfolio, but it allows for more flexibility when investing money. They seek to diversify capital between fixed income (debt market) and the money market (very short-term debt market). This allows for generating slightly more return, while maintaining high diversification considerably reduces risk. Lastly, it stands out for being a flexible and efficient product.

Save with inbestMe and achieve your goals

If you’re convinced by the idea of ​​creating savings methods and growing your money easily and comfortably through automated investment, we recommend that you take a look at inbestMe to do it with them. The platform has a long history in Spain and stands out for its wide range of products, its competitive costs and for having some of the highest expertise in the market.

But it’s not just its general characteristics, its products for automated savings also stand out: first, its savings portfolio, which is a high-yield savings portfolio with which you can guarantee up to 5% profitability for your savings, if they are in dollars, or 3.35% in euros. Both figures not only generate significant interest, but beat inflation. Secondly, its target portfolio, which is also available in dollars and euros and guarantees returns that can exceed 10%.