Have You Conducted a Financial Checkup Before Investing?

[Suba]

I often encounter novice investors investing without understanding their financial situation or conducting a financial checkup first, resulting in investments that don't meet expectations or are sold at a low price because they need the money. Therefore, before investing, we must ensure the following financial conditions:
1. Ensure you have a healthy financial situation, where income must exceed expenses.
2. Ensure liquid funds are sufficient to pay off debts (if any), and ensure debt payments do not exceed 25% of your income.
3. Ensure an emergency fund has been reached/accumulated.
4. Ensure you have at least health insurance.

 

[Kera]

I can't invest in anything without taking my time to check the investment properly if it would favor me or not.

 

[Nomad]

I learned a hard way. I started investing, however, due to financial constrain I could not hold my assets for longer period and I ended up selling when market was down. These days I try to analyze my finances before investing

 

[Springtime]

Agree. Before investing, you need to do a check-up on your financial situation. Do you have enough buffer to hang on if the stock market crashes and you do not want to sell the stock at a very low price.

 

[Augusta]

This simple review can help you assess your budget, financial goals and progress—and make any adjustments necessary to stay on track or correct errors