Things to Pay Attention to Before Investing – When we grow up, you must have spent a lot of money. But as time goes by, more and more people are investing. Most people invest only to get rich quickly. Whereas the essence of investing is to invest in stocks for the future. Here are things you need to do before you invest
1. Determine the Investment Goal
Not knowing the purpose of investment actually makes the investment itself die before it develops because what we have is only enthusiasm at the beginning and stops before getting a return. Therefore, determining investment goals is very important, such as investing because you want to buy a house.
2. Determine the Time Duration to Achieve Investment Goals
How often do we not hear that goals have to be SMART? Well, many people don’t determine the time to achieve it, having a goal without a deadline is what we call dreaming. The right thing is to have seven people who want to buy a car in five years, want to have a business at the age of 30, that’s just a goal, not imagining it.
3. Studying Investment Products
The crucial part is here! Many people invest without knowing what product they are investing in? In what type of asset? Anyway, a high return is good.
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Yes, it’s really good if we understand the product. If we are ready, if we know the current market and economic conditions, if we don’t follow suit. However, if we don’t know anything and only think that the return is high, then we are actually digging for our own losses, so study it first.
4. Allocating Investment Funds As Needed
After knowing the purpose, time, and having studied the investment instrument, then determine how much funds we have to set aside to invest. It’s not because we know, that we save money and allocate as much money as possible from income to invest without paying attention to cashflow, debt, insurance, and other important needs. This is actually dangerous for our own finances.
5. Invest
Investing is consistent and improvised. That is, done consistently and learning continuously. Not only on products but also our knowledge of anything related to investment products. The point is to minimize the losses that we can experience. That’s because there is no investment product that does not have losses. However, the good news is that we can minimize losses even though we cannot avoid them.