You may have decided that 2017 is the year you are going to start investing some of your money. You may even know what you going to in invest in. However, what you may not know are things you should do before investing.
People often get excited by the prospect of investing; the fact they have saved or made enough money to begin investing it, the idea of getting a good return – there are all sorts of reasons. But before investing, there is some groundwork that is recommended, things that can take a little bit of time and learning and self-evaluation.
Below is a list of things everyone should do before they consider investing their hard earned cash:
No More Debt
If you have debts, especially high-interest debts, the single best investment you can make is paying these off. The reason for this is simple; there is absolutely no investment that provides the long-terms stability and return as much as paying down your debts. Getting rid of your debt means less monthly bills, which means less outgoings, which means you’ll have more money to invest than you do right now. What’s more, and this leads onto the next point, paying off any debt you may have incurred will have an immediately positive impact on your net-worth.
Only One Care: Net Worth
Your net-worth is the absolute and total value of everything you own. This includes your house, your car, any valuables you may own and can be resold, any funds in your bank accounts and saving accounts, and any investments you may have. However, this figure is minus any debts you have, whether that be a credit card, or mortgage, or student loans. As such, your financial focus should be on this figure and this figure only. But more importantly, you should be thinking about how you can increase this figure.
What this means is, looking at your finances and understanding what money you can realistically afford to invest. The more money you have, the more you can invest and, thus, the quicker you can reach your long-term goals. There are two obvious ways to increase the amount of money you can realistically afford to invest. Either you can earn more or save more. Saving more usually requires spending less, so anything you can cut out of your monthly spend bill, do. That doesn’t mean cutting out things that you need. But anything you can look at and clearly see is a luxury you maybe don’t need, then maybe don’t buy it.
Seek The Help Of Professionals
Once you know whether or not you are in a position to invest your money, talk to the professionals; they are in the best position to offer you guidance and help you decide on where you are best suited to investing your money first. Don’t just take the gamble on your own without speaking to a reputable company like Camori Investments. Professionals built their entire careers on knowing the market and where people should be looking to invest, especially first-time investors.