There are a few things you need to do to fix your financial position before you start investing. Most people make the mistake of not taking care of their dues and debts before starting to invest. Before investing or spending a single rupee, make sure you have a stable financial base and then only take the next step of investing. For instance, make a budget, create an emergency fund for unforeseen rainy days, get coverage for yourself and your family, and then start investing. Not only limited to millennials, but many middle-aged people also make this mistake.
Investment is a journey, not a destination. It is a process of making a series of financial decisions targeted towards earning returns and realizing your financial goals without taking too many risks.
You may be afraid to invest because you do not understand the market or because you are intimidated by the initial investment options in many mutual funds. While it’s always better to begin investing sooner rather than later, there a few things you should consider before you begin building your investment portfolio.
Here are the Things to do Before You Start Investing
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