3 Signs You're Ready to Start Investing
For most people, investing is essential for growing their money and securing their financial future. It's the greatest path to building wealth over time. That said, investing isn't always right for everyone at all times. If you're wondering if investing is right for you, here are three things you should make sure of.
Investing is great for your financial future, but you shouldn't do it before you have an emergency fund saved up -- one of the most important things in your financial life. Whether it's a car repair, house repair, medical emergency, or job loss, a major unexpected life expense can, and will, occur.
Without an emergency fund, you run the risk of having to take out a loan to cover the expense, which adds to the cost because of the interest you'll owe. And if you're forced to rely on a non-traditional financial institution like a payday loan service, the interest rate could be well into the double-digit percentages. If you've been investing without an emergency fund and an unexpected expense happens, you could be forced to sell shares, possibly resulting in owing taxes on any profits (or taking a loss).
Source Fool.com
