Finance
Personal Development
Investing
Investment
Financial Planning
Debt Management
Expense Tracking
Here are 10 steps that will put you ahead in life to achieve financial freedom:
1. Pay off heavy debt
There is no point investing when you have heavy debt stacked up against you.
Work out a plan to pay off credit cards first before investing.
There is no point investing when you have heavy debt stacked up against you.
Work out a plan to pay off credit cards first before investing.
2. Track your finances
Tracking your monthly expenses is crucial to finding out exactly how much you can invest every month.
Plus you can see where you can improve to cut back unnecessary expenses to allow more investments.
Tracking your monthly expenses is crucial to finding out exactly how much you can invest every month.
Plus you can see where you can improve to cut back unnecessary expenses to allow more investments.
3. Build an emergency fund
You need a safety net before even considering investing. There will be leaky expenses along the way in life.
You should try to reserve 3-6 months of expenses before you begin investing.
You need a safety net before even considering investing. There will be leaky expenses along the way in life.
You should try to reserve 3-6 months of expenses before you begin investing.
4. Read investing books
Don't rush to buy stocks. Develop a understanding of how the stock market works first.
You can never go wrong with personal finance books and to keep learning as you go on.
Don't rush to buy stocks. Develop a understanding of how the stock market works first.
You can never go wrong with personal finance books and to keep learning as you go on.
5. Know your purpose
Understand why you want to invest and what goals you want to accomplish.
Knowing your financial goals ahead will avoid making mistakes and losing sight of the big financial picture.
Understand why you want to invest and what goals you want to accomplish.
Knowing your financial goals ahead will avoid making mistakes and losing sight of the big financial picture.
6. Invest in what you know
Invest in companies that you like and understand the history of your investment.
Always do thorough research before you invest.
Invest in companies that you like and understand the history of your investment.
Always do thorough research before you invest.
7. Invest in Index Funds to start with
Picking individual stocks can be complicated and can put your money at risk.
Sticking to Index Funds/ETFs will keep your fees low and help you diversify your assets.
Use a small percentage of investing in individual stocks.
Picking individual stocks can be complicated and can put your money at risk.
Sticking to Index Funds/ETFs will keep your fees low and help you diversify your assets.
Use a small percentage of investing in individual stocks.
(7. Cont.)
Keeping broker fees low is essential, especially when near retirement.
These fees can kill your long-term returns.
Keeping broker fees low is essential, especially when near retirement.
These fees can kill your long-term returns.
8. Reinvest your dividends
This will build your portfolio and let compound interest do its magic.
This will build your portfolio and let compound interest do its magic.
9. Avoid trying to time the market
You will lose money doing this and have a long-term approach instead.
Be consistent with your contributions every month.
You will lose money doing this and have a long-term approach instead.
Be consistent with your contributions every month.
10. Avoid panic selling
It's natural to panic when the market is down and you start to think about cutting your losses and selling.
It's easy to panic sell when everyone is fearful, but it's important to understand the markets will recover.
They always have in the past.
It's natural to panic when the market is down and you start to think about cutting your losses and selling.
It's easy to panic sell when everyone is fearful, but it's important to understand the markets will recover.
They always have in the past.
Learn more on:
- Index Funds
- Mutual Funds
- Portfolio Rebalancing
- Safe Withdrawal Rates
Click the link below to read Index Fund Investing 101:
gumroad.com
- Index Funds
- Mutual Funds
- Portfolio Rebalancing
- Safe Withdrawal Rates
Click the link below to read Index Fund Investing 101:
gumroad.com
Thank you for reading!
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If you liked this thread and want to see more content like this:
1. Please retweet the first tweet
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