The Financial Milestones To Reach Before You Start Investing

The Financial Milestones to Reach Before You Start Investing

It's a myth that you have to be rich to invest. It helps, but you can actually start investing with very little money. That doesn't mean you should, though. There are a few financial milestones you should hit before diving into it.

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Recently, we broke down the common myth that you need a lot of money to invest. There are plenty of mutual funds that let you buy in for as little as a hundred bucks. You can read more about the myth at the link above, but the point is: there are a few things you should have in order before you decide to use your money for investing in the stock market.

In short, saving for the future is smart, and investing can help you do that. While you can get started with little money, it's probably not a good idea until you've hit these milestones. You want to have a plan and a safety net, and you certainly don't want debt holding you back.


Comments

    Done all that... still not ready to invest (again). Pay off non-deductible debt is also worth considering. For me, the only thing that falls into that category is my house. Putting any extra money into my offset gives me the equivalent of a risk free (as much as dealing with money can be risk free) equivalent of an investment guaranteeing a 6.5% return yoy.

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