“My investments bring me profits, but what should I do with them? ”
This is a question that readers ask me quite often by email.
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I thought it would be a good idea to do an article on the subject.
For benefit everyone answers I give to those who contact me.
The fruits of your investments
When you invest, you always want to make a medium or long-term profit.
The good investments also allow yourself the luxury of being profitable from their purchases.
Over time, therefore, your investments will provide you financial earnings.
Be it dividends or capital gains if you bought shares.
Only rents or capital gains if you have selected properties.
In a first time you can ignore optimization of your earnings.
In fact, they will be nonexistent or weak at first if you have more options.
It is therefore best to spare them the time they start having children.
When you have enough money set aside from your investments.
Or rather if they generate comfortable cash flow (positive cash flow) every month.
In other words once you have a profitable investment.
You may then wonder what you will do with this money.
This is usually when readers contact me 🙂
I answer while we can leave 4 different and complementary axes.
And that if they want and have enough money they can do it use several.
So I advise you to discover them in the next 4 parts 😉
Precautionary savings for your investments
A first track is to create dedicated savings in case of problems.
Cases adapted to the situation
The donors know that you never know what can happen.
A tenant who does not pay for several months or deteriorates the accommodation upon departure.
A boiler change or a major facade makeover, for example.
The examples are numerous and they prove itit is better to have some money aside.
This savings will allow you to finance all these expenses quickly and easily.
Without having to tap into personal precautionary savings.
You see worse being forced to make a new credit to finance these expenses.
For a financial or stock market investment things are different.
Because you don’t risk having to pay a large sum along the way.
On the other hand, everything gets complicated if you have to sell and the market has lost 50% …
In this case they allow dedicated precautionary savingsmitigate or even cancel the decline.
According to the situation so it’s up to you how much do you want to set aside.
This can be, for example, 6 months’ rent in case of non-payment by the tenant.
Plus € 10,000 to anticipate future works on an old and dilapidated building.
If you trade you can choose to save 30% of your investment amount.
And so face a general decline in markets of up to 30% …
How to build it
Setting this savings is not very difficult 🙂
You “just” have to earn money with your investments.
Thanks to recurring earnings of your investments you can save money.
Better do it on a dedicated savings account like a passbook account (CSL).
Whenever you receive an income you will have to pay a dues on this CSL.
It is up to you to see how this percentage should be determined.
You can decide to allocate 100% to this savings In the first place.
Then when it’s high enough in your eyes you can do it go down to 10% For instance.
Or choose a fixed number and keep it for the life of your investments.
It is up to you to study the question and see how you want to proceed.
If your investments don’t bring you anything, it’s more complicated.
And at the same time you will have to ask yourself why and not repeat the same mistake.
In any case, to accumulate this savings, you will have to draw on your personal funds.
Then, when your purchase provides you with earnings, you can refund yourself.
Save for other projects
You can also choose to save for other things.
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Whether it is for your projects or for a future investment.
An additional source of income
In fact, the earnings from your investments are additional income for you 🙂
So you can do whatever you want with that money.
After paying taxes on this new income of course …
But it still remains a very good thing for your wallet
It’s a real bargain for your finances too.
In fact, without your investments you would never have earned this money.
It then comes to fall directly and automatically in your pocket…
And yes, an investment works for you 24 hours a day without you doing anything.
So you can use that cash flow to fund something else.
How your different projects : travel, car, jobs, training …
Or set aside enough to get started new investments.
Examples abound and I trust you to find them 😉
Accumulating this dedicated savings is not very complicated.
First and foremost it is necessary that your investments make you money.
After that it’s up to you to see how many you want to use for this project savings.
Reinvest in new investments
A good option is to use your money to invest in something else.
So you can trigger a true avalanche effect 🙂!
Multiply the effects
Redirecting the earnings from your old investments to a new one is a good idea.
This allows you toinvest over time if the sum is low.
Or to constitute a savings investment if the entrance fee is higher.
All without spending money from your personal funds!
It is therefore an option that I often recommend to those who contact me.
Especially when they have already accumulated dedicated precautionary savings.
Because they can allocate all the cash flow from their investments to this project.
Over time, the effects of this method are truly excellent.
Because you buy more and more goods that produce money.
And with their earnings, new investments are made.
Gradually and effortlessly you become established a nice asset.
This virtuous circle will allow you to become rich in the long run.
The hardest part remains as always begin priming the pump.
Then the more time passes, the easier things will become.
So don’t hesitate Act as soon as possible 😉
To please yourself
It is also possible to use your earnings to improve your daily life.
Fulfill your wishes
You can decide to use these earnings as you wish 🙂
While in normal times you wouldn’t have been able to afford to spend this money.
For example to pay you a good restaurant or a new dress.
Or offer yourself a great weekend on the coast for sunny days.
It doesn’t matter what it is, as long as it’s a purchase that gets you joy and pleasure.
You will enjoy this shopping much more easily with such a particular taste….
Because these are earnings from your investments who paid you for it.
And not the money you have earned from your usual activities.
board ofuse this method sparingly to make him have fun.
In fact, if you abuse these good things too often, you will experience less pleasure.
Whereas if they remain exceptional you will expect them and Make the best of 😉
Also, it is preferable that your cash flow asset financing not passivity.
Otherwise your wealth will not grow and may even crumble over time …
You must therefore find the right balance between making new investments and your pleasures.
What do you do with the earnings from your investments?