Before you enter in the field of investing, relax. The field of investing is not a small one, it comprises a huge amount of things to learn. Most successful investors would tell you that they are still learning and continually expanding their skills and experience in making money in financial markets.
Unlike cash investment, share markets are prone to fall and rise in value, so as an investor you have to be patient and play wisely.
1. Pay Your Debts First
If you have any sort of high-interest debts like personal loans, mortgage loans, credit card dues, or any other, clear them first. The interest usually adds up higher compared you what you get return from the market. Pay debts and clear before you enter into the stock investment arena.
2. Invest Additional Funds Only
If you are considering investing your semester fee, flat rent, or any other saving which you have kept for future purpose or retirement, stop right there. Stock markets are subject to market risk, so invest that will not thrust your daily life.
3. Cash In Hand
When you have cash in hand, you could do more. You should have cash in hand for emergencies as well as your future plans. Don’t get involved in investing much that later you lose your freedom. Investing and opportunity in the field of investing goes hand in hand, it can increase or decrease in conjunction. Your cash in hand would save you from jerks and dents.
4. Consider For Developing An Emergency Fund
Whether you want to enter for a short period or long one, you should develop an emergency saving fund worth about three or six months of your expenses.