Frequently Asked Questions
Comprehensive answers to common questions
Investment Questions
How can I start investing with a small amount?
You can start investing even with a small amount. Here are the best ways:
• Mutual funds: Allow investing small amounts with diversification
• Fractional shares: Buy part of a share instead of a whole share
• Automatic savings: Invest a fixed amount monthly
• Index funds: Low cost and excellent diversification
The most important thing is to start and be consistent, even with 100 SAR monthly.
• Mutual funds: Allow investing small amounts with diversification
• Fractional shares: Buy part of a share instead of a whole share
• Automatic savings: Invest a fixed amount monthly
• Index funds: Low cost and excellent diversification
The most important thing is to start and be consistent, even with 100 SAR monthly.
What are the main risks in investing?
The main risks in investing include:
• Market risk: General price fluctuations
• Company risk: Company-specific problems
• Inflation risk: Decrease in purchasing power
• Liquidity risk: Difficulty selling the investment
• Currency risk: Exchange rate fluctuations
To manage risks: Diversify your investments, invest for the long term, and never invest more than you can afford to lose.
• Market risk: General price fluctuations
• Company risk: Company-specific problems
• Inflation risk: Decrease in purchasing power
• Liquidity risk: Difficulty selling the investment
• Currency risk: Exchange rate fluctuations
To manage risks: Diversify your investments, invest for the long term, and never invest more than you can afford to lose.
Saving Questions
How much should I save from my monthly salary?
The general rule is to save 20% of your monthly income, distributed as follows:
• 10%: Emergency fund (until it reaches 6 months of expenses)
• 5%: Medium-term goals (car, travel, etc.)
• 5%: Long-term goals (retirement, home)
If 20% is difficult, start with any possible amount and increase gradually.
• 10%: Emergency fund (until it reaches 6 months of expenses)
• 5%: Medium-term goals (car, travel, etc.)
• 5%: Long-term goals (retirement, home)
If 20% is difficult, start with any possible amount and increase gradually.
Trading Questions
What is the difference between trading and investing?
The main differences:
• Time frame: Trading is short-term (minutes to months), investing is long-term (years)
• Goal: Trading for quick profits, investing for wealth building
• Risk: Trading is high risk, investing is medium to low
• Time required: Trading needs daily monitoring, investing needs periodic monitoring
• Time frame: Trading is short-term (minutes to months), investing is long-term (years)
• Goal: Trading for quick profits, investing for wealth building
• Risk: Trading is high risk, investing is medium to low
• Time required: Trading needs daily monitoring, investing needs periodic monitoring
Cryptocurrency Questions
Are cryptocurrencies a safe investment?
Cryptocurrencies are high-risk, high-potential-return investments:
Risks:
• Extreme price volatility (may lose 50% in one day)
• Lack of full regulation
• Security and hacking risks
• Losing wallet = losing funds permanently
Safety tips:
• Don't invest more than 5-10% of your portfolio
• Start with major currencies (Bitcoin, Ethereum)
• Use trusted platforms
• Keep your private keys secure
Risks:
• Extreme price volatility (may lose 50% in one day)
• Lack of full regulation
• Security and hacking risks
• Losing wallet = losing funds permanently
Safety tips:
• Don't invest more than 5-10% of your portfolio
• Start with major currencies (Bitcoin, Ethereum)
• Use trusted platforms
• Keep your private keys secure
Financial Planning Questions
How do I create an effective personal financial plan?
Steps to create a personal financial plan:
1. Set your financial goals: short, medium, and long-term
2. Calculate your net worth: assets minus liabilities
3. Create a monthly budget: track income and expenses
4. Build an emergency fund: 3-6 months of expenses
5. Pay high-interest debts: credit cards first
6. Start investing: for long-term goals
7. Review and adjust: every 6 months
1. Set your financial goals: short, medium, and long-term
2. Calculate your net worth: assets minus liabilities
3. Create a monthly budget: track income and expenses
4. Build an emergency fund: 3-6 months of expenses
5. Pay high-interest debts: credit cards first
6. Start investing: for long-term goals
7. Review and adjust: every 6 months
Didn't find your answer?
Don't hesitate to contact us