Fund for emergencies first.
As a reminder, the goal for an emergency fund is to save enough money to cover your expenses for six to nine months. With this in place, you're prepared in case you lose a job or come face-to-face with unexpected costs from repairs or medical emergencies.
Make building an emergency fund a priority in your home. It's a smart way to ease stress or concerns over some of life's unknown events.
Is your debt unproductive?
Unproductive debt is a drain on your budget. This is the type of debt that comes from bad spending habits. Productive debt, on the other hand, works to help you build wealth in the long run.
Is your money helping you or draining you?
If your money is going towards excessive credit card debt or private loans, make a plan to figure out how and when you might pay those down. In the meantime, make smart decisions about how to keep investment opportunities in balance.
Having a full emergency fund and being debt free are not prerequisites to investing. But, knowing where your money is going helps you plan how to invest wisely while you take care of other responsibilities.
Take in the insights from the opening chapter to set you up for investing like a champ.
Your Chapter 1 Checklist:
- Watch the Are you ready? video
- Download the Just the Facts: Investing Worksheet
- Take an assessment of your debt
What to Know Before You Start Investing
Before you make the leap to investing, check out the guidance offered by these experts.