Recurring savings for investment: see how it works

 When we started studying about financial education, we started to deal with money differently. You understand, for example, the importance of saving and investing .

 Another thing you learn about is constancy. That is, the economy of recurrence.

 Even if you don't know this term yet, the concept is present in your life. In streaming subscriptions, for example. Something you pay for on a recurring basis and not a one-time purchase.

 Investing requires discipline and consistency. Want to learn more about how recurrence impacts your investments? Read this article and see how it happens!

 What is recurrence?

 Let's start by talking about recurrence.

 Surely you pay some recurring service, to listen to music or watch movies and series. Hiring is done through plans, subscriptions or monthly fees.

 So, we can say that whenever you make an acquisition through a contract, it's a recurring purchase. And that goes for everything, electricity bill, internet plans. These are accounts that appear every certain period of time.

 But now you're on the subject, so let's move on!

 What is recurrence economics?

 From those recurrence sales that we talked about above, the recurrence economy emerges. Or what is called the new global market.

 One of the main sectors of this type of economy is movie streaming. Companies in this sector are a reference for the recurrence economy, as they are platforms that revolutionized the market.

 It may seem like a lie, but before them, people went to the video store to get DVDs of their movies and series and they had a few days to return them.

 These platforms have provoked a real revolution by changing the way companies relate to customers. And for customers to relate to the company and the product.

 So we can say that the recurrence economy is when the customer pays for a service in the long run. Easy to hire and cancel, with different prices.

 Not to mention the convenience of doing everything from the cell phone, hiring, payment, content reproduction and everything else. These are the characteristics of services that use the recurring model.

 But as we said, recurrence is present in several other services. We only singled out movie streaming because it represents a very big change in recent years.

 Types of companies that use the recurrence economy model

 We highlight streaming for the popularity and strength of the business. But other companies use the recurring model.

 Business like:

 – subscription gym, annual or semiannual plans;

 – educational institutions, schools, universities and courses that charge students monthly fees;

 – parking lots that offer monthly packages;

 – book or wine clubs, for example, in which the subscriber receives a package with the products at home every month;

 – other services paid monthly, such as health plan and insurance of the most varied types.

 The examples are many, but let's stop here to get to our main subject.

 And what does all this have to do with your investments? Keep reading to find out!

 How does the recurrence economy act on investments?

 Well, after you better understand what recurrence economics is, let's move on to the next topic.

 Investments also use this business model.

 A definition of recurring investment is: the attitude of making frequent contributions to a portfolio of assets. And it doesn't matter what type of application it can be, CDBs and Debentures, shares or private pension.

 It works like this, as the investor makes new investments, the amount applied is accumulated with the sum of the other contributions and is still plus interest.

 Therefore, the value continues to increase over time until the moment the investor performs the redemption.

 The recurrence of investments causes your equity to increase in an orderly way with the power of compound interest (interest on interest). The more discipline and financial organization , the more you can benefit from using a recurring model.

 Why is it important to keep recurring?

 So, to explain the importance, let's use a private pension plan as an example.

 When you hire a pension plan, you can program a monthly investment via automatic debit or bank slip. So it's a recurring payment.

 But what do you get out of it?

 First, you put Rocky Balboa's wise words into practice and take it one step at a time. But instead of climbing steps to prepare for the fight, you learn to collect money a little at a time.

 This makes the investment more accessible to different audiences and profiles. Over time, with compound interest, your investment grows exponentially.

 The investor still has the advantage of building a more peaceful future, as this redemption can be scheduled for retirement . If you prefer, you can also buy a house or take the trip of your dreams. It's your choice!

 Want to use recurring savings on investments to get into the habit of saving a little each month? Make a private pension plan.

  

Posted by: John Labunski