- August 25, 2016
- Posted by: Rena Hawkins
- Category: Featured, Investing, sticky
You found a job and earn money on a regular basis, it’s not a lot but you want it to multiply for your future goals. But are you ready to invest into tech (btw, awesome tech news can be found on techimperatives.com)? Not yet? Then let’s get a bit into a primer on investing, shall we?
With proper money management and investing knowledge, it is the key to achieving your long-term goals. Investing should be done with careful planning and well-thought decision making. Your decision, time, motivation and quality of advice that you receive are great factors in investing successfully.
Below are the important points before investing your money:
- Debt – Aside from keeping your mind clear, paying off your debt will provide you discipline to save for investing.
- Income protection – this is an insurance that will benefit the policyholders who are unable to work due to illness or accident.
- Savings –Before putting your hard earned money into an investment, it is important to keep an amount to handle personal emergency to your bank. These are funds that are available and can be withdrawn from the bank immediately.
When is the right time to invest?
Once you have enough savings, income protection and debt under control you might consider investing your money. Of course, no investment is risk-free. It is important to understand that when you invest, you are also putting your money at risk.
The longer you put your money to investment, the more money you will make because of its compounding rates of return. So if you start young, you will have higher rates of return on investment.
Before making your financial decision, here are few steps to consider to getting started as an investor:
1. Identify your financial goals
Investing is part of your financial journey. In this journey, it is also important to know what you want. Do you want to grow your money? Do you want your money to work for you? By setting a clear goal, it will help you decide how much risk you are willing to take to achieve them.
2. How long should you Invest
After knowing your goals, you have to determine the age you want to retire or achieve your financial goal. By setting a time frame, this will help you choose which investment is the best for you.
3. Your attitude towards the risk
When you are investing , you must understand that the money you put in there is at risk. It is necessary to understand how much risk you are willing to take. Even though you have the money to fall back on, if it doesn’t let you sleep at night when the markets go down, then a high risk isn’t right for you.
4. Seek for financial advice
A financial advice can give you the important points that you need with investing and it will help you get the confidence in making the right financial decision.