Setting Things in
What should you consider before Investing?
Here are some things that potential investors like you should consider before you start investing.
Set your financial goals first.
What does this mean?
I believe in setting goals before investing. You must always invest in a goal first before putting money in any investment. Make sure that you have a goal that you would want to meet.
Why people lose their money?
It may because they did not align their investment with their goals.
Know what you are getting into
After you have filtered out which portion of your goals will be aligned for the long-term.
As an investor, you can lose money if you panic in the middle of the game.
Avoid debt
Before even starting to invest, it is best to have no debt at all.
Keep your emergency fund intact.
An emergency fund is a bank account or money set aside that will be used for unforeseen crises. Classified as an emergency are the following:
The situation that calls for immediate action
Day to day living
Accidents
Job loss
Illness in the family
Not count as an emergency:
Sale in the Mall
Seat sale in your favorite airplane
An emergency fund is very helpful because it can give you the leeway to leave your investments untouched should something bad happen to your investment.
Invest only whats extra.
What you should put in your investment that you are willing to be part of the money that you aren't willing to touch for a long period of time. The safer and more relaxed way of earning in your investment in not touching your earnings and just letting it go, grow, and glow for you.
Basket
It means that you should not put all your eggs in one basket. You are distributing your wealth into different investments varying risks and returns.