MODULE 8
4. Investing
Should You Start Investing?
Contrary to popular belief, you don’t need to be debt-free in order to begin your investment journey. As long as you’re comfortable with your debt repayment plan, you should start investing. On page 23 of your workbook, I’ve listed different types of investments, how they work, and whom they benefit most.
Take the time to read through those types of investments and choose the ones that will work for you. And once you’re ready, open up an account with low fees (I’ve listed some for you below) and transfer funds into that account. Don’t forget to invest those funds once you’ve transferred them! Or, hire a financial advisor to select your investments for you.
If you choose to invest on your own, remember to diversify your portfolio. Never keep all of your eggs in one basket. Consider a riskier portfolio (one with more stocks than bonds) when you have a lot of years before retirement, and as you get closer to retirement, minimize your risk by investing in more bonds than stocks.
Prioritize this on your paycheck breakdown so that you make consistent payments and grow your money for the future.
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Set Up for Success
After this last step in your planning process, you should be completely financially prepared. You’ve made moves to shift your money mindset, opened up all the right accounts, started a spending plan, developed specific savings goals, prepared for your taxes, taken steps to increase your income, fixed your credit score, started crushing your debt, and planned for your future. You should feel a wave of confidence and congratulate yourself for how far you’ve come!