Updated: July 11, 2011
Everyone wants to invest.
But not everyone is ready to lose money.
While investing is a great way to secure a future, one must keep in mind that providing for the present is actually more important.
Because how can you reach your financial goals, if you’re not moving towards the right direction today, right?
And thus the question…
How do you know if you are ready to invest?
The answer is given below, through a simple flowchart I’ve made.
Go ahead and test yourself, then please read my notes after to learn more.
Do you spend less than what you earn every month?
Living below your means is a basic requirement if one wants to invest. If you can’t properly manage your money, then you won’t be able to properly manage your investments as well.
Can you survive 6 months without a job?
Build your emergency fund first before investing. You never know when you’ll suddenly need money, and the last thing you should do when this happens is selling your investments at a loss.
Are you happy with your job?
If your work does not give you self-fulfillment, then you’re at risk of squandering your money in short-term and superficial joys. It’s better to focus your time on finding your passion first, then focus your time on finding good investments later on.
In conclusion… as I’ve said before – I believe that it’s always a good time to invest – yes, I do.
But I also believe that one should not invest in portfolio and paper assets if one is not yet ready; or you might end up losing money later on.
So if you’ve found yourself moving on an endless loop in the flowchart above, then don’t worry… you’re still ready to invest – ready to invest on yourself.
Read more books, attend seminars, practice your skills, subscribe to Ready To Be Rich – just be hungry for knowledge and empower yourself so that someday, you can come back to this page and follow the flowchart again, and be able to congratulate yourself for a job well done.
So you like flowcharts, right? Then check out Your Ultimate Guide To Buying Any Gadget