Before investing, 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. What can you afford to invest? You don’t need lots of money to get started and it’s better to start with a small amount than not at all.
- 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.