[ad_1]
What is often seen among people who start investing is that they start investing with the first money they manage to save. It remains to be seen which properties are more promising and start buying.
But what if I told you that there are a few things you need to do before buying any property so that your first investment step doesn’t become a stumbling block?
Do not invest without security
It’s amazing how many people don’t have an emergency fund to cover unexpected expenses. Starting an investment without it is like balancing on a rope without a bottom safety net. In the face of unforeseen financial problems, you must liquidate your investments to cover these expenses, Can cause significant damage to your finances.
Think of the pandemic crisis of 2020, accompanied by a sharp decline in the market. In turn, those who lost their income stream had to sell their investments at bad times, believing the latter had reversed too quickly.from there The importance of having an emergency fund to sleep soundly.
Before buying any asset, if you haven’t formed it, It is important to allocate the first savings available. This should be on devices without major fluctuations so you know you can use them when you need them. It is inconvenient to buy USD only as an emergency fund, as the USD may have an indirect fall, so some stability between the instruments of the peso and the USD is recommended.
The inclusion of variable income instruments in emergency funds is not recommended as they tend to be highly volatile. Therefore, they are not suitable for this purpose. That’s why the importance of putting those funds aside and knowing that they are reserves should help you in the event of the unexpected.
A question I get often is how do I determine how much my emergency fund should be? Of course, this is a very personal decision and depends on each individual’s circumstances. Too little can leave you vulnerable in unforeseen circumstances. And, conversely, an emergency fund that’s too big could mean you’re missing out on investing in equipment with greater potential.
However, since many are asking how much I have to set aside as an emergency fund to invest, I’ll leave it to you below. Some tips for you to keep in mind:
Your funds can then be more or less depending on your specific circumstances. Under no circumstances would I recommend spending less than 3 months per month, but I would also not make the mistake of just putting this mattress together and never stepping out to be a real investment one step, Leaves the possibility of multiplying your capital.
Make it clear that emergency funds are designed to keep calm and not touch your portfolio in the event of an unexpected event. We don’t expect good returns because that’s what your long-term portfolio is for.
Investing without an emergency fund is like driving a car without insurance. You are taking an unacceptable risk to your finances. It goes beyond whether you are conservative or aggressive. It’s just that you need easy access to funds to deal with the contingencies of everyday life. This protection will prepare you to start your path as an investor and achieve greater success.
[ad_2]
Source link