ASK YOURSELF THESE QUESTIONS BEFORE YOU START INVESTING

Everyone around you is investing, and you want to start too.

But before you do, here is a quick summary of what questions you need to ask yourself before you deep dive into the world of investing.

Why are you investing?

Are you investing because everyone is, or is it towards a goal? Being goal-based will help you stay consistent and on track, and will also help you make decisions in line with your risk appetite.

How do you plan on investing?

Do you want to learn it yourself? Do you want to ask an advisor? Both come with their own shares of merit, and you need to know what works best for your lifestyle and the time you will be able to devote to it. If you are a beginner with an interest in investing, you can always go to an advisor, get started, and as you increase your competence and confidence, continue to invest on your own,

What are the goals that you want to achieve through investing

Putting a number and name to your goals helps you work backward from there and also helps you aim realistically.

Do you have your emergency needs covered?

This is THE most important factor to consider while investing because your investments will not be your emergency fund. In case you need the money, it is best to keep some aside in a place where it is not influenced by market movements.

Emergency funds need to cover lack of employment, healthcare, auto repairs, etc.

What happens to your dependents’ financial future if something happens to you?

Are you sufficiently insured? Do they know how to access assets in your name?

What about your investments, how will they access that?

Once you have answers to these questions, you are better prepared to start investing!