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.