4 Things You Should Know Before Investing
When Nike released its campaign with their slogan “Just Do It” with Colin Kaepernick, the world stopped. There was a clear divide of controversy that surrounded the campaign. Social media was flooded by individuals who were either burning Nike sneakers, cutting the logo off of apparel or discussing ways to support a company who took a stance with a bold movement of social justice awareness. Following the campaign, Nike stock fell more than 2% which alarmed people due to Nike’s having a decade of stability in the market. This buzz cultivated refreshing conversations about investing into stock that would’ve never thought about investing otherwise. There were so many people that decided to “Just Do It”, and do the right thing, no Spike Lee by buying stock in Nike. However, when it comes to investing, you have to do more than Just Do It, you have to know what you are doing. You can’t make financial decisions based on Facebook statuses that sound good.
Now, that you know you have interest in stock, my advice is to consider these four things before investing, if you are new to the game.
Here are four things you should consider before investing
Investing money into your savings should be your priority! Building savings always comes before investing. If you haven’t established an emergency savings account or started saving for retirement, this is where you should start. Here are the 3 savings accounts, in length that are important. I know saving may not sound sexy but it is your safety net and could be cushion into new beginnings. Even though you may have an opportunity to earn money by investing, you don’t want to make the mistake of not having anything to fall back on. You can also save money that you want to invest, so it won’t hurt you to tolerate the level of risks that you are willing to take. The point is, save now so than you can become an investor later. Trust me, there will be chances to invest.
Define investment goals
What is your investment goal? What do you want to see as the end result? When investing, you have figure out what you are working towards. You would want to decide how much time would it take to reach that goal. It will also, help you figure out what you should be investing in to reach your goal. Define and invest with a purpose.
Seek investment advice
It’s best to seek information and insight from a financial planner or investment advisers. You don’t want to invest into something you don’t understand. Don’t put your money somewhere you don’t understand how it works, the risk of loss, or the return you are likely to receive.
Weigh the risk
Don’t invest more than you can afford to lose or what you don’t really have - Weigh the risks of the investment
Now, if you are thinking that you are just going to spend the money anyway, why not invest the money to make more money. The fact that you would rather buy stock than to a pair of shoes that doesn’t bring any value is a good indicator that you are thinking of money differently. However, you do not want to waste your time or money on investments that will the yield the return you are looking for. If you have money to spend that you would like to invest, save it until you it’s time to make wise investing decision. You may have missed this current phase of investing, but there will be plenty of chances for you to invest. Educate yourself, save now, so that you can be fully prepared for your next level of finances. It doesn’t have to be a long wait but just don’t do it just because everyone else is doing it.
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