Before you consider investing in
any type of market, you should really take a long hard look at your current
situation. Investing in the future is a good thing, but clearing up bad – or
potentially bad – situations in the present is more important.
Pull your credit report. You
should do this once each year. It is important to know what is on your report,
and to clear up any negative items on your credit report as soon as possible.
If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad
credit, you are better off cleaning up the credit 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 dollars will be better
spent to rectify adverse financial issues that affect you each day.
While you are in the process of
clearing up your present financial situation, make it a point to educate
yourself about the various types of investments.
This way, when you are in a
financially sound situation, you will be armed with the knowledge that you need
to make equally sound investments in your future.
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