If you are planning to enter the world of investing, you should first know that you will be dealing with a beast.
This beast can either strike for or against you, so be careful.
Your duty then is to make sure to do your assignment and research about investing and never ever enter without prior knowledge.
We have read and taught by others that acting now is better than spending all your time studying the industry until you reach paralysis analysis.
Yes it is true, you must act but you only act the time you are comfortable enough and already have written plan that you should follow.
Investing without a written plan. That’s a guarantee for failure, because such investors end up relying on their instincts in tight situations, and successful investing is counter intuitive. Credits: Traits of unsuccessful investors – Business Insider
In investing, you should have a written rules that you stick no matter what. Of course, when you are just starting, that rules will keep changing through time until you become expert in that investing instrument.
Aside from knowing the necessary information, strategy, and techniques of the chosen investment, beginners must also change their mindset.
Investing must be a long term thinking and that you must decide and accept that you will be living it in your lifetime.
With that said, you should change from more of a spending thinker to an investing thinker.
When you find yourself with a little extra cash, it’s hard to not immediately start thinking of all the stuff you want to buy. You’re better off saving that money or putting it to work, and a simple shift in perspective can help you do that.
If you’re like me, as soon as you have some extra cash, it starts burning a hole in your pocket and you look over your list of wants. Doing so won’t hurt you now (after all it’s surplus money), but it definitely doesn’t help you in the future. Mr. Money Mustache explains on Farnoosh Torabi’s “So Money” podcast that surplus money should be something you invest, not something you immediately spend. Credits: Think of Surplus Money as Something to Invest, Not Spend
You must also see to it that you only use excess money for your investing. Thus, when you still have existing debt, it is a good a idea to pay all of them first before investing.
In that way, you will have much peace of mind while executing your stressing investment.
But this is really a personal decision – whether paying your debt first or investing that money.
You should look at more than the numbers, considering your own feelings as well. Where do you think the money would be best used? If you have a significant windfall, do you feel best investing it or using it to repay a large portion of your mortgage? The best answer for you will fall in line with your highest priority goals.
It’s important to make the decision that you’ll be happiest with, so consider all options before applying money to one or the other.
You may want to speak with an investment professional or your family for advice. They may point out options you hadn’t considered. Credits: Paying Off Debt vs. Investing | Success Praxis
We hope that you learn something from our article today. You know, there are many considerations before investing but the thing is – you will get better at it along the way if you just keep on pushing and pushing it in a long term.
Good luck and happy investing!