Questions to Ask Before Investing

By now, you should know that investing is a different form of income that is passive. It is opposite of investing in a business where you would be actively managing the company or firm. Investing money should be done with utmost care and consideration. So, before putting your money in a basket, here are the questions you should ask yourself.

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Comfort Level: What Kind of Investor Are You?

Here’s the part where most people fail in their investing journey. They invest money simply because the numbers are good. First, money should give you peace, not the other way around. Your comfort should be considered before making an investment or getting health insurance 18 year student. Are you a risk-taker? Do you play safe? Do you have time to be an active investor? Today, there are tons of investment options you can choose from, which match different investor levels and types. If you don’t like getting surprises, investing in a high-risk company but could potentially earn a high profit, is not for you.

Knowledge Check: How Well Do You Know the Business Model?

financial studyGreat investors of all time such as Warren Buffet admitted that there is no secret formula in making decisions for investment. After all, they are not fortune-tellers. What they do is they study the company they bank their money on. They understand how the business operates and how it gains profit. More often, they scrutinize the CEO who will be leading the company to success. One thing you should understand in choosing a company for investment is that you are choosing people, the people you believe who can make this work.

Finance Management: Can You Take Loses?

Loses are inevitable but can be reduced or manage. The point is, are you financially secured in case you lose? Before investing, there are areas in your finance that you need to consider such as emergency funds, other sources of income, and your lifestyle. Rule of thumb: don’t invest if you can’t afford to lose. Position yourself in a high place by leveraging your assets wisely to the point that market fluctuations and changes in 18 years and take out health insurance doesn’t bother you anymore.