Key Milestones before you start Investing
Nowadays the best way to earn more money is to let money work for you by investing it smartly. And I am here to help you do that!
These days lot of people are ready to jump into the world of financial investing because nowadays you can start investing with as little as $10/month and receive higher returns.
But is it the right time to start your investment journey?
I would like you to reach few milestones before you start investing and to get the most out of your investment, it is imperative that you reach a few important financial milestones before starting your investment journey.
Have a proper Budget in place
Jumping into investing, without having a proper understanding of your finances is like jumping into deep waters without knowing how to swim.
Understand where you stand financially – do you have enough to cover all your expenses and left with some spare income at the end of the month?
Build an Emergency fund
Before you start investing it is important that you have a proper emergency fund in place so that you can get through tough times.
Therefore, start building your emergency fund with your spare money and only when you have created a sufficient fund, you should consider investing the rest.
Understand where you stand financially – do you have enough to cover all your expenses and left with some spare income at the end of the month?
Life is unpredictable and insurance is necessary, so get insured and it is very important to get sufficient insurance coverage based on your situation and requirements.
If you have any dependents get life insurance to secure their future, and of course everyone should opt for health insurance to take care of medical emergencies.
Pay off any High-interest Debt
Pay off any high-interest debt before you even think about investing.
If you have high-interest debt (say above 8% annually) there is nothing better, you can do with your money than pay down the debt.
The reason for getting rid of debt is so that you can start investing and start earning interest instead of paying it.
Getting debt-free means more money to invest, as your money is free from interest payments and other charges.
