What To Know Before You Start Investing

August 18, 2022

What To Know Before You Start Investing

Do you have investments? Maybe you’ve researched the stock market or considered talking to an investment advisor. But, if you’re pretty new to investment funds, there are some overall things you should know before you get started.

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Start Investing With Help From Troy Kearns

Troy Kearns is a real-estate investor who has made millions developing his own business and investing smartly. He went from struggling with his finances like many other Americans to creating a six-figure business, and now he wants to help people like you make money, too.

If you are looking to find similar success, there are some things you need to keep in mind when looking at investing. Here is a guide to get you started.

Why Should You Invest?

There are many reasons to invest, but investing is essential for most people to have a backup plan and look at retirement. Investing helps your money go further and could potentially lead to a lot more success and passive income. If you only keep your money in the bank, you’re losing money in the long run.

All people need to have at least some assets or investments that allow them to meet their financial goals and ensure they have retirement savings.

Investing is critical if you’re looking to make more money now or save more for your future. There are investments you can make that bring more immediate and long-term success, such as real estate. Other investments may pay off in the long run as you look to save for retirement or have life savings. These options include various investment funds. Then, there are investments that may seem a bit riskier but still have their benefits, including stocks.


Tips To Know Before You Invest Money

These specific tips will have you well on your way to an investment strategy. Before deciding how and where to invest, make sure you have followed these steps to build a solid financial foundation.

  1. Have an emergency fund: Before you figure out how much you can invest, you’ll need to save up some money for emergencies. You’ll want to save enough money to live on for at least three months if you couldn’t work any longer, but aiming for six months is even better. While you don’t want to keep too much in the bank, you do need money you can access quickly in an emergency.
  2. Stick to a budget: To safely invest, you need to have a budget and keep to it. The only way to know how much you can afford to invest is to take stock of your cash flow. This will help you determine how much extra you can risk setting aside.
  3. Work to pay off high-interest debts: While some debt that allows you to maintain excellent credit can be okay, high-interest debt is stressful and risky. Before making an investment plan or setting or a retirement account, it’s wise to ensure you’re not racking up a bunch of credit card debt through interest.
  4. Set goals and work on a plan: Throughout the entire process of investing money, you’ll want to make a plan with your financial goals. You may need investment advice from a mentor to help with this. Remember to ask yourself questions such as how much do you need to have in a savings account? And what is your financial plan for the next year, five years, ten years?

As you work through these preparations, you’ll get a much better idea of where you are at with your personal finances. From there, you can make adjustments to your lifestyle and how you approach money, and these steps will allow you to make sound investment choices moving forward.

How Much Money Should You Invest?

Once you have worked with a financial advisor or mentor like Troy Kearns and have your finances in order, you might be wondering how much you should actually invest. While your mentors and advisors can help you with this, there are some rules of thumb to keep in mind now before you even get started.

One common strategy is the 50/20/30 approach to budgeting in general. Here’s the breakdown of these numbers:

  1. 50% of your income should cover the monthly needs you have, including rent, food, car payment, utilities, and other bills.
  2. 20% of your monthly funds should go to various savings like your investment funds or retirement.
  3. 30% of your money should then go to things you want to do like going out to eat or hobbies

While you might have to make minor changes to these exact numbers, this is a good way to approach budgeting and investments. When trying to save money and think about investing, the first thing to cut down on should be what you want and that is fun but unnecessary. While you don’t want to deprive yourself of all enjoyment, going without a few things can help you reach your financial goals.

Final Thoughts On How To Start Investing

To prepare for investing, make sure you take stock of your finances. You’ll want to have an emergency fund, a savings account, help from a financial advisor, and a plan for your personal finance moving ahead.

With these tips in mind, you’ll be well on your way to start investing, whether in the stock market or mutual funds. Just make sure that you make wise choices and don’t take unnecessary risks without consulting experts. You’ll want to work with people who know about things like stock market investing, risk tolerance, and market conditions.

Contact Troy Kearns For Investment Options And Advice

You don’t want to lose money if you’re new to investing. You may wonder if you should invest in stocks or look to real estate or something else. Troy Kearns offers many resources for people looking to make more money and find financial freedom. Reach out today to learn more about how he can help you start investing and make the money you want.

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