Hello, beautiful people from across the lands! The new buzz word nowadays is investing. Between Apple and Tesla splitting their stock options, many are considering getting their feet wet in this thing called investing. Myself included! But where do you start? Before doing anything it’s important to pause and think things through. Now do not get me wrong impulsive action does serve its purpose. With investing however it’s a calculated risk that involves some level knowledge to get started. In this post, I want to share some reasonable questions to ask yourself before you start to invest. Let’s get it!

1. Do I want to pay off my debt before I invest?

This was a big question for me at the beginning of my debt freedom journey. There is mixed advice out there. Some stand strong on stopping all investments while paying off debt. While others believe you can do both. It is important to determine which works for you, as every dollar should be accounted for and have an assignment. There is no right or wrong way in my opinion just the way that works best for you. It’s called personal finance for a reason. 

2. Do I have a solid emergency fund saved? (ideally 6 months-1 year)

If this pandemic has not taught us anything, having emergency savings is a must. With the spike of unemployment and evictions, this is so vital. I share in this post ways to build your savings. I am aware financial situations vary and saving 6months of expenses may not be feasible right now. Having at least $500-$1k is a decent place to start and puts ahead in some way.  

3. Where should I start investing? (retirement accounts, stocks, bonds, index funds, etc)

Investing can be intimidating as there are various ways to invest. I recommend doing some research and getting familiar with the terms. Again this is your journey, what may work for some may not be your cup of tea and that’s ok. Just do not allow a lack of understanding to stop you from starting at all. 

4. What are my investing goals?

Just doing something because others say you should is never a good idea. Get clear on your goals and why you think it’s important to start investing. Whether it is for short term or long term gain it is important to do what is best for you in your personal finance journey.

5. Where do I want to open investment accounts?

Investing is not something that is connected to your regular checking or savings account. It requires a different type of account known as Brokerage. Depending on your bank you may have to do some research on what is out there. No worries I talk about a few commonly referred ones in this post to help get you started.

Action Steps to Take NOW

1st Step: Watch this YouTube video from His and Her Money to gain some foundational knowledge on investing

2nd Step: Research these 5 investment terms and write out what they mean (IRA, Index Fund, Brokerage Account, Stock, Bonds)

Conclusion

Investing does not have to be a foreign language any longer. There is a lot of hype around investing right now and I do not want you to get lost in the noise. There are some basic fundamental ways to get started as a beginner. Learning the basics is a good place to start.

Until next time dream, believe, and achieve.

What has sparked your interest to start investing?