Don’t be so quick to invest. There are a few things you should think about before that happens. There are many positive sides to investing but getting started before you are ready could set you back on your financial journey.
There are many things to think about but I wanted to share 5 top strategies that will help you to make the right decisions.
FIRST, Get organized.
Organization shows that you are on top of your finances. Having your bills automated makes sure you don’t miss payments. I like to use the numbers app when keeping track of my bills.
Knowing how much debt you have down to the penny say’s that you are aware of what you are responsible for.
Having a system to open mail and file away your papers will help you keep everything in it’s right place.
If you are going to invest, there are documents that your accountant will need every year when you file your taxes. You will need to be organized so you can make the process simple.
SECOND, Pick a strategy.
I see people who buy a few shares here and there. A good strategy is to become a Trader or Investor. Traders are people who buy and sell within a short period of time for a profit. Investors are people who are investing for longer periods of time. Most are doing it to take advantage of compound interest, so they can live off of the interest their money produces.
THIRD, Pay back taxes,
If you owe money to the government it’s best to pay them back with any extra money you have coming in. They have the authority to take any investment money out of your account if you owe them. Not to mention, when you owe anyone it’s best to put a plan in place to pay off the debt as fast a possible.
FOURTH, Fill up your emergency fund.
I have been preaching this for a long time. Everyone needs to have 9-12 months of expenses put away for times like this. It should be in another account outside of your normal banking institution. This way you don’t use the money for non-emergency purchases. Who would have thought that we would be facing a time where a lot of Americans are out of work and have to stay home because of the Corona Virus.
Don’t you wish you had 9 months or more of expenses put away? Wouldn’t it make this time less stressful? Of course it would. Don’t get caught out in the rain. Repair your roof while the sun is still shinning.
FIFTH, Read a book or take a class
There are so many great books from experts out there. If you don’t like reading you can always buy the audio version. I have several books that I have had to read over and over again because I didn’t understand a lot of the language. Here are some of my favorite investing BOOKS IN THIS LINK.
You can also take a class. I created INVESTING 101 to teach other entrepreneurs the basics of investing so they could eventually live off their investments. If you feel like you don’t want to pay the high fees that come along with hiring a financial advisor, this would be a step in the right direction. I hope this helps.