You won’t regret it if you do these 3 things before investing

You Won’t Regret It, If You Do These 3 Things Before Investing.

Given that inflation lopped an average 2.28% off your money's value in 2019, we all understand that investments are one of the only ways to grow your money fast enough to overcome it. However, investing can seem daunting if you don’t know what you’re doing, especially during uncertain times. You may be asking yourself, “should I buy stocks right now or should I try funds first ?” There are a few simple tips you can use to safely and reliably before investing your money.

Step 1 : Reviewing your financial situation

Before you make any investment decision, sit down and take an honest look at your entire financial situation, especially if you’ve never made a financial plan before. From my own experience, I always separate my money in 4 parts when I get my salary. 40% for daily use, 15% for emergency (one's fortune can change in the blink of an eye), 25% for saving and the last 20% for investment. Once you know how much you can afford for investing, then you can move to the next step.

Step 2: Knowing your personality type.

In my opinion, it is a pivotal procedure when you start to invent. According to Merlin Rothfeld, an instructor and market strategist at Online Trading Academy, “ Understanding your personality preferences can significantly impact your results for better or worse.” All investments involve some degree of risk. Investors have to understand what kind of personality you have. For example, if you are an ambitious person, maybe you are capable of more risk, then stocks might be fit with you. However, a person who lacks adventure, instead of making high-risk investments, he or she should try more stable investment products like… funds or gold.

Step 3: Don’t put your money in investments rapidly.

                         

A recent study found that as much as 90% people lose money in stocks. Therefore, as an old saying goes, “Haste makes waste.” Before making any investment, you should do your own research. It is always better to research several investment products in the same industry, so you have a comparative analysis. In addition, be a market watcher before entering the stock market. Use a stock market simulator to practice and try out some trading strategies. With more experience and time, you will get more confident once you invest.


Money doesn’t grow on trees. There is no guarantee that you’ll make money from your investments.

                    

Also, a fool and his money are soon parted. Therefore, be a smart investor, practice more and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money. After investing for a while, and earning some money, the most important thing is “DON’T be too greedy”