It is a dream of almost everyone to attain financial freedom and investing is one way of reaching that goal.
Investing can come with a lot of mixed expectations. It could be intimidating, scary or even confusing.
Before you decide to invest, ask yourself these simple questions;
1. What is my financial goals?
It is important to note your financial goals and what you wish to achieve before investing.
You should consider if you are investing for short-term gains such as to generate income or for long-term reasons like retirement.
This will help you determine how conservative or aggressive you should be.
2. What is my risk tolerance?
Once you decide to invest, ask yourself what your risk tolerance will be.
You don’t want to be overly aggressive and invest all your money, otherwise you set yourself up for a quick financial disaster. Ensure you research first about the area of investment and solutions to take when challenges set in.
3. What is my investment time frame?
Once you consider your financial goal, you should take note of the amount of time required to achieve the goal.
You should also note that the longer your investment period, the more the risks you might encounter and also the more time you have to recover from a certain mistake.
Do not invest for a life time goal and when you need money after few months you run to the investment.