Why investing in real estate should be your purpose in 2021.

When a new year begins, our resolutions form an endless list, and the illusion comes to us to fulfill the objectives that we set for ourselves.

Surely there is some reference to money among yours, but what if we focus on improving the management of our savings? Investment, along with savings, can be the perfect combination to organize our money. Tajarat properties help us produce a return on our money and see how it grows.

I already have a savings account, why invest?

As time passes, inflation causes money to lose its value. To understand it clearly, if we currently have a 20-euro bill and can buy a certain number of things, in a few years that 20-euro bill will not reach us to buy so many things.

In a savings account we can deposit the money, but it does not grow or make profitable, that is, it hardly increases its value.

Unlike savings accounts, in investment products we look for a percentage of return against the risk we take, which is a highly variable element, but with patience and a long-term investment, the results could be beneficial for us and we will see how our money grows.

Saving money is necessary and useful, and it is best to always have several options, such as several baskets to combine the objectives that interest us for the short, medium or long term.

We have to start by allocating an amount of money to the emergency fund, which is an amount of money that covers, at least, about six months of our usual expenses, in case something unforeseen arises.

Then we can think of another amount to buy a car in a few months or a year. In addition to that, we can invest the money that we do not need immediately, in the long term, to fulfill a life project (about 15, 20 or 30 years).

Therefore, in this 2021, investing must sneak into our list of purposes and desires. We have to pass with note that pending subject that is the management of our personal finances, and we must begin to think about our future, about that bag of money for the long term, and thus make the fruit of our work profitable.

I don’t know anything about investing, how do I get started?

It is never too late to start getting informed and dedicating part of our savings to investment products. The first thing we must do is be clear about our priorities in saving and the terms that we will give our money.

Do we need to save to buy something in a few months? Can we already think in the long term, about 20 or 30 years from now?

Once we separate that part that we do not need in the coming months, we can start investing. We must know that before contracting a financial product, we will have to understand the information about its conditions.

Then, it is time to assess what type of financial institution is best for us, and this will depend on our interests and our way of understanding personal finances. Are we more comfortable with a traditional bank or with an online broker service?

Is it more attractive for us to manage our money from a mobile application or do we prefer to go to the bank in person?

Do we want to manage our money doing it ourselves or do we want to transfer the management to a financial institution? Currently there are numerous possibilities and we only have to look for the one that best suits us.

And finally, we must choose which investment products are best for us. There are investment funds, index funds, ETFs, stocks, bonds, pension plans (to save for our retirement). And a very varied offer for us to find what suits our needs.

It is simply a matter of contrasting the characteristics and adapting that offer to our profile as an investor, that is, to the risk that we want to assume for our money, to the management that we will do of it and the time in which we plan to withdraw the money.

The vocabulary of investment. What concepts should we know?

Starting to be interested in the world of investment implies getting to know some terms and words that may be new to us.

Therefore, we must have all the information in our hands to understand the products we are reading about, such as investment funds, stocks, real estate properties of nova city Rawalpindi or pension plans. Here we leave a list of ten keywords that we should all know.

Investment and savings difference

Something important for our personal finances is to differentiate and organize our investment and our savings. Saving is the money that we have saved for our expenses in the short or medium term (a computer that we want to buy, a trip, a car).

The money saved will have almost no growth. The investment, on the other hand, is the money that we will not need until a medium-long time and that we place in a financial product to obtain profitability.

Emergency fund

The emergency fund is the first element that we must worry about, already before investing. The emergency fund is an amount of money that we have saved for any unforeseen event that may arise, so it must have full liquidity to take part of it when necessary.

It is advisable to cover the usual expenses that we have for six months or a year, depending on our job stability. We will not invest this money, so there is no risk on it. Thus, the first step before starting an investment is to have the emergency fund.


An investment is the money that is placed, through a financial institution or an intermediary, in a financial product. By investing this money, we assume a risk, and thus we also expect profitability. The more risk we take, the higher the return should be. The goal of investing money is to make it grow.

Cost effectiveness

The profitability of an investment is the percentage of profit it produces over time. It can be a positive or negative value and can be measured in different time frames. It is a useful term for comparing investment products.


The commissions of an investment are a percentage of the money we have deposited in that investment product. This percentage goes to the manager and / or the financial institution that offers the product, for the service they offer and the work they do.

It is a figure that changes a lot depending on the entity and the asset, and directly influences profitability, since the fewer commissions they charge us, the greater the growth of our money and likewise, the reinvestment that we can do with it.

They are very different from one entity to another, and we always have to identify them, before signing any contract. It is also a good feature to compare investment products.


The assets of an investment are the financial products in which it is invested. There are many types of assets and our money will go to them. They can be stocks, company debt, public debt, currencies, raw materials (gold), cryptocurrencies, etc.

The most common forms of investment are stocks and bonds, also known as equities and fixed income, respectively, depending on their nature.

Variable income

Equities encompasses investment products that have a higher risk of variation for the investor’s money, but that potentially have more returns.

The value of these products varies depending on what are known as financial exchanges or markets and on supply and demand. In addition, if they are company shares, their value also changes according to the current or future financial situation of the company. Stocks are equity products.

Fixed rent

Fixed income encompasses all financial debt products issued by public and private entities. When an entity or company issues debt, it does so that investors who buy shares will lend it the money it needs. Investors receive interest that they already know from the beginning.

The risk in a fixed income investment is lower than in equities, and also the return will probably be lower. An example of a fixed income product is Treasury bills and bonds.


Managing different aspects of time in our investment is of great importance. First, we must know that the most advisable thing is to start investing as soon as possible and do it periodically, with discipline.

On the other hand, it is interesting to know that we can choose one product, or another based on the time our money will be invested. Long-term investment is the one that will allow us to take more risk and then will offer better results for our money.


Liquidity is the name given to the conditions presented by a financial product for the withdrawal of money. A product will be illiquid, like a pension plan, when we cannot withdraw the money until a certain moment arrives (retirement, after many years saving) and it will have maximum liquidity when we can withdraw the total money when we want.

Liquidity does not mean that we recover all the money invested, but that our assets will be sold at the market price (not the purchase price). We may win or lose money.


Diversification is one of the keys that we must take into account when looking for what to invest in. Diversification of financial products, types of assets and even markets (in different geographical locations) is the most recommended, and we can configure it so that investment products adapt to our demands as investors.

We must always understand what we are contracting, so when diversifying we must also take into account how much we know about the investment.