Our first tip for investing is to make sure that you have your finances in order so that you are investment ready.

You are ready for an investment portfolio if you are:

  1. Saving more than you are spending each month
  2. Have 3-6 months salary saved in case of emergency
  3. Paying off your credit card in full each month
  4. Are comfortably meeting all your debt repayments (e.g. mortgage / car loans) and could continue to do so if rates increased
  5. Have adequate life and income protection insurance in place
  6. Your retirement savings are on track

Make sure you have checked off each of the six points above before you start investing.

Before you get started

Like most things, investing works better when you have a plan.  Before you start investing it is important to consider:

Investment Goal Whether it be to save a deposit for your first home, or to pay for your child’s education, it is important to identify why you are investing.
Time Frame How long will your money be invested for? This is a crucial part of any investment strategy, as it will help determine which investment products are most suitable for you.
Return How long will your money be invested for? This is a crucial part of any investment strategy, as it will help determine which investment products are most suitable for you.
Risk How much of your money could you afford to lose? Nobody likes losing money, but if you are investing there will come a time when you will lose some money.  Determining how much you could afford to lose will help you determine which assets to invest in, as some are much riskier than others.
Taxation How much of your money could you afford to lose? Nobody likes losing money, but if you are investing there will come a time when you will lose some money.  Determining how much you could afford to lose will help you determine which assets to invest in, as some are much riskier than others.

Conclusion

Starting an investment portfolio is a process.  The more time you spend in the planning stage, the more likely you are to meet your financial goals.  Once you have confirmed:

  • That you are financially ready to invest;
  • The goal and timeline of your investment; and
  • Your risk and return targets

Then you ready to start building your portfolio.  The construction of a portfolio is yet another process, which we’ll discuss in more detail in future posts.

The information on this website is for general information purposes only. It is not intended as  financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product. Balance Impact does not recommend or endorse products and does not receive remuneration based upon investment or other decisions by our email recipients, publications, newsletter or website users.

Investment Ready

Our first tip for investing is to make sure that you have your finances in order so that you are investment ready.

You are ready for an investment portfolio if you are:

  1. Saving more than you are spending each month
  2. Have 3-6 months salary saved in case of emergency
  3. Paying off your credit card in full each month
  4. Are comfortably meeting all your debt repayments (e.g. mortgage / car loans) and could continue to do so if rates increased
  5. Have adequate life and income protection insurance in place
  6. Your retirement savings are on track

Make sure you have checked off each of the six points above before you start investing.

Before you get started

Like most things, investing works better when you have a plan.  Before you start investing it is important to consider:

Investment Goal Whether it be to save a deposit for your first home, or to pay for your child’s education, it is important to identify why you are investing.
Time Frame How long will your money be invested for? This is a crucial part of any investment strategy, as it will help determine which investment products are most suitable for you.
Return How long will your money be invested for? This is a crucial part of any investment strategy, as it will help determine which investment products are most suitable for you.
Risk How much of your money could you afford to lose? Nobody likes losing money, but if you are investing there will come a time when you will lose some money.  Determining how much you could afford to lose will help you determine which assets to invest in, as some are much riskier than others.
Taxation How much of your money could you afford to lose? Nobody likes losing money, but if you are investing there will come a time when you will lose some money.  Determining how much you could afford to lose will help you determine which assets to invest in, as some are much riskier than others.

Conclusion

Starting an investment portfolio is a process.  The more time you spend in the planning stage, the more likely you are to meet your financial goals.  Once you have confirmed:

  • That you are financially ready to invest;
  • The goal and timeline of your investment; and
  • Your risk and return targets

Then you ready to start building your portfolio.  The construction of a portfolio is yet another process, which we’ll discuss in more detail in future posts.

The information on this website is for general information purposes only. It is not intended as  financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product. Balance Impact does not recommend or endorse products and does not receive remuneration based upon investment or other decisions by our email recipients, publications, newsletter or website users.

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