Getting Started

Never invest more than you can afford to lose

If you're reading this, you're likely eager to dive into the world of investing and start making money. However, before you take that leap, there are some foundational steps we need to cover. Think of this preparation like stretching before a marathon or checking your map before embarking on a road trip. These steps will significantly reduce the risk of financial missteps as you begin your investment journey.

Financial Health Check

First, let's assess your current financial situation

Are you living in debt?

Significant debt, especially high-interest debt like credit cards, can eat into your potential investment returns or even your ability to save.

Are you living paycheck to paycheck?

If your income covers just your immediate expenses, you might not have the buffer needed for the risks associated with investing.

If you answered 'yes' to either of these questions, it's crucial to address these issues before you start investing. Prioritize paying off high-interest debts, create a budget, save excess money, and review your near-term and long-term financial goals to give you a firmer footing for investing.

Why Financial Stability Matters

Here is a general rule of thumb for financial planning

Build an Emergency Fund:

Aim to save at least 3-6 months' worth of living expenses in cash.
This buffer ensures that you're not forced to liquidate investments at a loss just to cover unexpected costs.

Invest with Discretion:

Once you have your emergency fund, any additional income can be directed towards investments.

Remember, when you invest, you have the potential to both make, but also lose money. You want to avoid a scenario where you're compelled to sell your investments prematurely due to financial emergencies. Investments often require patience, sometimes years, before they yield significant returns. By ensuring your financial foundation is solid, you set the stage for a more secure and potentially more profitable investment journey.