This week on the blog, I thought it would be a great idea to touch on the topic of investing again. If you don’t know what investing is, then investing can often be seen as a great alternative to putting your money into a savings account, especially now that our interest rates are so low. However, despite this, I am often asked when the best time to start investing is. Because of this, I am here to share my personal view on when you may want to consider investing.
1) If You Have Cash Savings Set Aside First
As there is an element of risk associated with investing, it is always a good idea to have some cash savings first. Ideally you want to have around 3-6 months’ worth of your expenses saved up in an emergency fund before you go anywhere near the stock market. This is because savings are your best friend in the event of an emergency, so the last thing you want to do is invest all of your money in the stock market and potentially lose all of it!
2) If You Have Conducted Enough Research
This point is absolutely crucial. Please don’t invest any money on the stock market until you feel as if you have done enough research into the stock market itself and any particular stock or share you want to invest in. Reading news articles, and key investor information documents (KIID) are often great places to start. I also have an investing guide if you would like to delve deeper into the world of investing!
3) If You Can Leave Your Money Untouched for 5-10 Years
Lastly, when it comes to investing, it is always a good idea to try and invest for the long-term. This is because it will enable you to ride out the waves of volatility. If you feel like you can not leave your money untouched for this rough period of time, then it may be best to just stick to your savings account for now!
Hopefully this short but sweet article will help you decide whether or not you are ready to start investing! If you would like to learn more about how to invest, then feel free to purchase a copy of the investing guide here.
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