Before you consider investing in any type of market you need to take a good look at your current situation. Investing for the future is a priority but clearing up potentially bad situations in the present is just as important.
Assess your liabilities, you should do this once each year. It is important to know what is outstanding and what the time horizon to clear it is.
If you’ve set aside some money to invest, but you have outstanding debts, you are better off cleaning up the debt first!
Next, look at what you are paying out each month, and get rid of expenses that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.
If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action.
Get yourself into good financial shape – and then enhance your financial situation with sound investments.
It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment monies will be better spent to rectify adverse financial issues that affect you each day.
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