7 Points You Need to Know Before You Start Investing


Before investing your money, you need to bear in mind some points to take a right decisions. Here are the most important 7 points:

1. Financial situation

Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following:

  • Mortgage repayments
  • Personal tax
  • Loans and overdrafts
  • Living expenses
  • Emergency funds
  • Car expenses
  • Entertainment
  • Holidays
  • School fees
  • Credit card debts
  • Family commitments

Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rain days. 10% is a small amount that you won’t feel a pinch. Save it until you have managed to build a “dam management funds”.