Our Blog

​7 Things You Need to Know Before You Start Investing...

11-22-2017

By: Jason Chew Copyright 2006

1.Know your current financial situation.

Know you debts level. Calculate your income and expenses by taking into account the following:

Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainy days. 10% is a small amount that you won't feel a pinch. Save it until you have managed to build a "dam management funds".

2. Prepare funds for dam management.

This goes in line with point 1. You need to keep at least 3 to 6 months of you income as dam management. After you have managed to do that then additional money that you saved can be used to invest.

3. Protect yourself and your family first.

By this point, I mean you should have the basic life insurance that insure you and your family against terminal diseases and accident. This is very important as even though you might loose all your money through investment and if you or your family members need medical attention, it will be well taken care of.

4. Know your risk level.

If you are not able to take big risks, short term investment and swing trading is not for you. It's better to invest in mutual or trusts funds which will give a steady payout and have lower risk. If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.

5. Diversify your investment.

Expert would tell you it is a must to diversify your investment. Your investments need to have a steady mix of stocks, mutual funds and/or bonds. Besides that, you should invest in different industry and/or different regions. This will help you minimize your risk as fluctuations in the markets will not have a big impact on your investments. Your ideal mix will be 20-40% stock and the rest mutual funds and bonds.

6. Do it your homework before you invest.

It is good to seek expert advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisors might have already worked it out all for you. This is to make sure you know what you are investing and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.

7. Do stock take yearly if not frequently.

Your investment might already be reaping in profits. But, it is good to know how well you fare at the end of the day. Reinvest the profits and celebrate if you have success. This will serve as motivations for you and will make you more determined to achieve your financial goals.

Latest Posts

BUY REAL ESTATE ONLINE BOOM OR BUST
05-14-2020

Offshore Investing: The Perfect Solution
04-09-2020

Learn How To Repair Your Credit By Following These Suggestions
03-11-2020

Consejos para recuperar su capacidad de crédito
02-14-2020

Money management guide
01-09-2020

5 Advantages Of Long Term Trading
12-12-2019

More than Just Money: Barter
10-11-2019

The Cutbacks in How to Save Money
06-17-2019

Struggling With Your Personal Finances Here Are Some Great Tips To Hel
03-14-2019

Tips On How To Maximize Your Personal Finances
02-05-2019

Tips to Better Manage Your Finances
01-09-2019

Tips to Help Baby Boomers Cut Costs Without Cutting Out Happiness
01-04-2019

Managing Your Risks in the Stock Market
11-08-2018

5 Pitfalls To Avoid For Your Next Investment Property
10-08-2018

​Cash Out Refinance Mortgage Loan
09-10-2018

Closed and Open Home Equity Loans
08-23-2018

HOW TO DEEP CLEAN YOUR SPENDING HABITS
07-26-2018

​Money Is In The Mind
07-23-2018

The Magic Bullet Theory of Investing
06-20-2018

The Importance of Saving Money for the Future
06-07-2018

Secured Loan For The Self-Employed
05-04-2018

The simple $10 debt elimination solution
04-11-2018

The simple $10 debt elimination solution
04-11-2018

​How to Manage Foreclosed Equity Loans
03-22-2018

5 Tips for Successful Trading
02-22-2018

Catch the Spirit of the Entrepreneur
02-07-2018

A Money Saving Exercise
01-25-2018

Offshore Investing: The Perfect Solution
01-10-2018

​Secured Consolidation Loans
01-04-2018

​5 Facts You Must Know When Applying for a Loan
12-22-2017

​The Risks and Rewards of Investing in Foreclosures
12-06-2017

3 Ways to Get the Lowest Rate on Your Home Equity Loan
11-22-2017

​Renting Versus Buying A Home
11-22-2017

5 Features to Look for when Choosing a Property Rental Service: ☝️
11-22-2017

​7 Things You Need to Know Before You Start Investing...
11-22-2017