You never want to be caught in a situation where you are forced to sell your investments, especially when the market is down.
Here are 3 things to do first before investing:
Make sure you get yourself fully covered first before you even of think of investing.
Get yourself at least an integrated shield plan first.
Because you don't want to sell your investments just to pay your medical bills or replace your income when an something unfortunate happens to you.
2. Set up an emergency fund
Set aside 3 to 6 months of your living expenses for emergency funds.
In the event you lose your job, you’ll have 3 to 6 months to find another job so you don’t have to sell your investments just for extra cashflow.
3. Ensure that you have positive cashflow
You want to make sure that you have consistent income coming in, and that your income is higher than your expenses.
If you have any debts, please clear them first.
If your expenses are at the minimum already and you can’t afford to save a cent, you should work on increasing your income first.
But if you know that your income is pretty ok, yet you don’t save much every month, because you are spending excessively/impulsively, you may want to use this strategy of paying yourself first.
Which is saving and investing first before spending.
These are the 3 things you have to do first before you start investing.
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