We normally neglect these when we are so excited into investing our money but if you will build your house upon the sand you are heading for a disaster. Instead build your house upon the rock.
1. Start saving.
Saving every pay day will give you massive discipline to create wealth. The skills that you will get is so good that you will exercise your financial muscle to sustain heavy lifting. Before you lift big barbel you need to start from very little to avoid potential injury. Like saving very little it will give you enough preparation for something bigger. It is essential to start small and progress every step of the way.
2. Set up emergency fund.
You are already making a progress with your finances and things are doing very well. Now, you are ready for the next adventure which is going thru the ultimate emergency fund. If your average monthly expenses is 10 thousand only then multiply into 6x (6months) just in case someone might get sick or someone just got laid off from the family your investment still secure. The principle behind 6x is you are preparing for the worst case scenario.
3. Study your investment.
You need to prepare and know your risk tolerance. Maybe you are already at the edge of investing your hard earned money but you don't know what is the best then studying will answer your questions. I love this part because I got scammed before with the amount of 35-40k.It was a big lost for me. With a proper preparation you are on the right side.
4. Commit to a particular amount.
You are reading this because you are not a millionaire yet or maybe you don't have tons of money in your bank account but don't worry because your commitment will be the strongest force in the universe once you start making investment as your hobby. While your other young professional still hanging out and spending a lot of their salary to all the latest gadgets you are so blessed because this year will be the year where you made a commitment that no matter what happened your future is something that is important.
You might be struggling somewhere in your finances now but the storm will simply pass. The sun will rise again. A new morning is waiting. Never lose hope.
If you have questions send me an email at david_angway@yahoo.com
David Isaiah Angway is a Registered Financial Planner and a Financial Evangelist
No comments:
Post a Comment