There is no one right way to start investing. But, after listening to your co-worker, uncle, and neighbor swear by their investment strategies, you’re likely ready for some actionable tips.
Whether investing, buying a house, or working to increase your income, think of your goals as a roadmap to take you from Point A (where you are now) to Point B (where you want to go).
If your financial goals are your road map, then consider your budget the vehicle that’s transporting you along your journey.
Often overlooked, your budget is your foundation to financial success. Having a solid grasp of how you spend and save is essential to the beginning investor.
Many believe budgeting to be complicated and restrictive; however, once you’re regularly budgeting, you’ll find it’s neither. Instead, budgeting offers you the freedom to spend and save in a way that supports your values and priorities.
Before you begin investing, it’s in your best interest to establish an emergency fund. Essentially, you want to avoid investing all your extra money and then taking it back out when you experience an emergency.
As with all personal finance decisions, deciding whether to get out of debt before investing is personal. However, many people don’t want to wait to begin investing for fear that they will miss out on potential growth as they work to pay off their debt.