Monday, 16 April 2012 21:35
If even the thought of investing is scary to you,
it’s best to take small steps to begin with. Here are a few things to keep in
mind before you start investing your money.
How much do you have to invest?
priority should be to first pay down debt and establish an emergency fund. If
you are set in those areas, then you can determine how much money you have left
over from expenses to devote to investing.
What are your goals?
both short-term and long-term goals. This will help you decide what types of
investments will work for you. For short-term goals, you’ll want more secure
investments, while long-term goals will allow you to be more risky.
What is your risk tolerance?
risk tolerance can be based on the time frame of you investments; however, you
don’t want to take on more risk than you are comfortable with. Also be careful
not to be overly confident and put all of your investments in one area.
Where will you go?
to do your own investing or to have someone else handle really depends on your
personality type. You may be the type of person who wants to have total control
and learn more about the investing process. Or you may not even know where to
start or have the time and would rather an expert handle your portfolio.