The art of stretching money; we all carry a financier inside.

 "It's not what you have, but how you use what you have that makes the difference" (Zig Ziglar).

Zig Ziglar is considered one of the greatest authors of motivational books, speakers, and salespeople in the United States. Starting this article with his quote may seem risky on my part as I delve into the controversial territory it may provoke, because... Does what we have not make a fundamental difference?

But every controversy requires analysis, qualification, drawing conclusions, and that is my goal.

We are born at a moment in history and in a specific environment, with certain qualities and abilities. This is given to us, we cannot do anything to change it, and it will undoubtedly shape our lives. However, how we use it depends on us, and that is where we can make a difference. We are talking about the attitude of each individual towards similar situations.

This thought applied to finances will determine how we manage our income, expenses, and savings, no matter how small they may be.

Whether we like it or not, we are all small financiers who sooner or later will have to make decisions about our money. Family management involves constant decision-making in this regard; our mothers, our fathers are and have been real managers, we will all have to be.

 The "Crowdfactoring" is just another tool available to small businesses and savers. At Inversa, we like to think that we help our clients "stretch their money" in a controlled and non-speculative manner, stretching the rope just enough and fairly for all parties involved.

With a single objective:

That companies and investors see their money grow by making their own decisions.

And as everything is better understood with an example, let's take two real cases of two people who receive unexpected income:

Person 1: Receives €3,500 from the sale of eucalyptus trees in a forest due to the increasing demand for wood to make masks and medical gowns.

Person 2: Receives €3,000 deposited into their account as a tax refund from the government.

 It could happen that one of them needs to use it, but in this case, we start from a context where they do not initially need to spend it. It is here where the attitude and decisions of each one in managing that savings will make the difference.

Let's simulate some possible decisions to compare the results of each one.

Person 1 (P1) decides to leave it in a current account that does not generate returns.

Person 2 (P2) decides to invest it. They study different options and finally choose Inversa.

Through the investment simulator on our website, we can visualize the returns obtained with different variables; amount, term, and profitability. We will have:

Amount= €3,000

Term: We will choose the maximum possible, 180 days.

Profitability: It can range between 4% and 8% depending on whether we are more or less conservative. In this case, we will use the current average which is close to 7%.

The result would be as follows:

In the first six months, we earn €107. So, we already have the initial €3,000 plus the €107, in total, €3,107.

At this point, we have the option to withdraw the money or invest it in another invoice.

If we reinvest that amount for another six months, we get a profit of €111, greater than the first time because we are reinvesting the interests.

The result after one year will be €3,218 in total savings .

And so on, always with the option to withdraw the money in the short term, at the maturity and collection of invoices or promissory notes.

But in the case of being able to hold it over time:

In five years, our money would already reach €4,000; in ten, we would double our money.

Person 1 deposited €3,500 and would still have €3,500

Person 2 deposited slightly less, €3,000, but would have double, €6,000.

This is what we call "stretching the money" at Inversa.