Things To Do Before you Invest

9:42:00 AM Rhea Mocorro 2 Comments

Image from meritinvestmentgroup

To date, we see many individuals who are investing be it in the stock market, equity funds, mutual funds and more. And we are also getting ready to join the bandwagon and become investors. However, before becoming one there are things that you need to know and do first before you can invest. Investing is not a walk in the park after all. It takes a lot of commitment, patience and more so money to get it started.
Hence, if you have been aiming to start your investing journey, these are the things you need to do first.

Goal

The first thing you need to be able to identify would be your goal why you invest. You see, we know how to get started with investing but we don’t know when to stop investing. The goal would serve as the finish line for us to stop investing and in return can persuade us more to invest. Are you investing for your retirement? Are you investing for your dream house, for your children’s education or what not? After that, you need to be able to quantify just how much we are talking here. How much are you planning to get for your retirement? How much your dream house would be and so on and so forth.

Money

As previously mentioned, investing needs money. That is why there are many things you can do in order to get started with your investing money. You can find a new way to increase your income or you can set aside a specific percentage of your salary for your investment. For instance, if you are earning 10,000, how much should be for your investment. Or you can opt to increase your income so the other source would be dedicated for your investment. And you need to take note this is not a one-time thing. You need to do it monthly or consistently. You cannot simply invest this day and leave it there. You need to pour in more funds in order to let your money grow in the process.

Personality

Another very important thing to do prior to investing would be to know your risk appetite. Being able to identify this kind of personality will help you land the right investment. For instance, if you are a conservative investor, you might need to opt for investments that are relatively conservative too like time deposits and special savings account. If you are aggressive however, you can opt for equity funds and even the stocks. You need to fit well your investment with your personality so you can be at rest and you can be calm throughout the investment.

Knowledge

To be an investor, you need to be persuaded with knowledge rather than by your friends to join them. What may be working for some could work or could not work for you. Hence, it is important that you get to have your own research on varied investments and you get to study it first before submerging. It is important that you get to read and understand this so that you won’t fail in the end.


Now don’t get startled because of the many things you need to do prior to investing. These are relatively easy things if you really want to pursue this path. Plus, it can save you a lot of time and money in the process. Happy investing everyone!






P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 12 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

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2 comments:

  1. Hi Rhea I agree! connections is also another good factor to consider.

    ReplyDelete
  2. Thank you for the great input @Anne

    ReplyDelete

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