You hear of all these people making money in stocks, and you want in. I mean, who wouldn’t have wanted to grab a few shares of Apple stock 10 years ago and be sitting on some serious cash right now?
Before you start dreaming about how you would spend that money, we are going to talk about the 5 things that you MUST do before you rush out and open that account at ETrade.
- ER Fund– Make sure you have 3-6 month’s of expenses saved somewhere safe.
- Get rid of credit card debt– debt is the biggest drainer of funds, so get on a plan to pay it off asap.
- Get other debt on auto-pay– student loan, mortgage and car payment debt is ok debt to have. Make sure you get it on auto-pay so you never miss a payment. Low interest rates and an accountable payment schedule make this kind of debt ok to keep around.
- Fund your retirement– IRA, 401K -make sure you fund your retirement no matter how old, or young you are. It’s super important, and likely will be your first step into investing.
- Extra fund- separate account with $500-$2500 of throw away money– picture yourself driving in a convertible with the top down. The wind is blowing in your hair, and $2000 suddenly blows out the window. If you are ok with this happening, then you are ready to start investing in stocks.
If you’ve checked these boxes off, then you want to look for 5-10 stocks that you KNOW. Start with what you know.
Investing is smart. It’s smart to make money. Just be smart about how you go about it. Watch, research, read, learn…then do.