You can Make Budget For Investing. You might think you need a lot of money to start investing, but all you need is $100 to get started. We also have some great ways to invest $1,000. The most important thing is not how much money you have to start with, but that you are financially ready to invest and that you invest money often over time.
Setting Up Emergency Fund
Setting up an emergency fund is an important step to take before you start to invest. All investments have some level of risk, whether they are stocks, mutual funds, or real estate, and you never want to be in a position where you have to sell them when you need the money. This can’t happen if you have an emergency fund.
Most financial planners say that an emergency fund should have enough money to cover expenses for six months. This is a good goal, but you don’t need to save up this much before you can start investing. The idea is that you don’t want to have to sell your investments every time you get a flat tyre or have some other unexpected expense.
Get Rid of Any Debt
Before you start investing, it’s also a good idea to get rid of any debt with high interest rates, like credit cards. Think about it this way: historically, the stock market has given returns of 9–10% per year over long periods of time. If you invest your money at these rates of return and pay 16 percent, 18 percent, or higher APRs to your creditors, you are setting yourself up to lose money in the long run.
Always Make Budget For Investing
Also Read