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?
Your 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?
Establish 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?
Again, your 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?
The decision 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.