Crucial Steps Before Investing

in #investing • 7 years ago (edited)

Crucial Steps Before Investing

(1) Pay Off Debt First things first, pay off your debt, especially debt that incurs interest. If not, the interest from your debt will be eating away at whatever gains you're experiencing with your investments.

(2)Build Up An Emergency Fund Not having an emergency fund will come back to bite you in the ass. Life situations happen...so if you don't have any money put up for a rainy day you'll be cashing out your investments to take care of your affairs. I fell victim to this last year and had to cash out a percentage of my crypto and stocks 😭. It's suggested to have 3 months of all living expenses saved up for a sufficient emergency fund.


(3) Learn, Research, Prepare This step is just as, if not more important than the others. You MUST do your due diligence. Don't, then someone is waiting to take advantage of you. Investing is a game of winners & losers and not doing your homework will have you taking L's by default. Some things to consider are choosing an investing strategy, studying past performance, researching current events, and determining your risk tolerance.


(4)Stop Saving, Start Investing All that's left to do now is to start putting your extra money towards your chosen investments instead of your savings.

This is not financial advice

#steemleo #business #life #personalfinance
7 years ago in #investing by
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