Before You Invest Your Money, Invest Some Effort In Doing These Two Things
While investing money is a very smart move for your long-term financial security, it may not be time to visit an investment firm just yet. The smartest investors are those who fully prepared themselves to make the most of their investments by making some smart moves before they ever invested a penny. Read on to find out how you can best prepare yourself to start investing money -- and reaping the financial rewards!
Cut Out Credit Card Debt
One of the best ways to give yourself enough financial room to invest freely is to cut out credit card debt, especially the high interest credit card debt. If you still have major credit card debt, it is usually best to focus on paying that debt off before you start investing. Even great investments may not pay off well enough to make up for it if you're throwing thousands of dollars (or more!) every year on high interest credit cards.
Focus on aggressively paying down balances, and you'll be amazed at how much extra you'll then have to invest. Many people like to keep at least one credit card available for emergencies, and this is usually fine. Just be sure that you keep a very low interest card and retain it for real emergencies.
Examine Your Emergency Resources
Before you visit the investment firm, it is smart to take a good look at your emergency fund. Did you know that financial experts now often recommend having 9 to 12 months of living expenses available in accessible cash? This doesn't just mean having a credit card with a big limit, either: The best place for an emergency fund is usually a savings account that allows you quick and easy access to the money if you should need it. To some people it may seem silly to let so much money sit there untouched, but the truth is that investment funds just aren't as easy to access as savings accounts are. Once you've got a solid emergency fund, you can feel confident about investing -- and using your investment funds to generate even more money.
If you have the credit cards paid off and have established a healthy emergency fund, you are probably excited about starting to invest. Be sure that you discuss your investing comfort level with your financial adviser before you jump in. Whether you are a risk lover or you feel terrified of taking a gamble, your investment firm can find the perfect investment mix for your comfort level.
For professional investment advice, contact a company such as Painter Smith and Amberg.
