Before you invest, check your finances
Make sure that your overall financial situation is healthy before you buy stock market investments.
Take an honest look in the mirror. Ask yourself what you can afford to invest?
Think about why you are investing and what you would like to achieve (your aims and objectives). Also understand your tolerance to risk rather than appetite for reward.
These are some of the other important things you need to consider before committing money to the stock market or buying other investments.
- Set aside some money in an easy-access savings account for any emergencies and short-term spending needs.
- Pay off any short-term debts which have high interest rates
- Consider reducing the term of your mortgage.
- Consider life and income insurance.
When you start investing
- Don’t invest money which is critical to your day-to-day life.
- Don’t invest more than you can afford to lose.
- Commit to investing for at least five years.
These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The value of your investments, and the income derived from them, may go down as well as up. If in doubt, please seek advice from a qualified investment adviser.