5 Things That You Must Do Before Investing

5 Things That You Must Do Before Investing

Understand your Risk Appetite and Goals

Map your goals and understand your risk appetite by understanding your financial personality.

Create an Emergency Fund

Have at least 6 to 12 months of your expenses parked in a savings account, fixed deposit, or liquid funds.

Buy Health Insurance

Buy adequate health insurance for you and your family.

Buy Term Insurance

Buy term life insurance for yourself, generally 10 to 15X of your annual salary is a good number but do consider adding your liabilities too.

Clear High-Interest Rate Debts

If you have a high-interest-rate debt, like a credit card, consider clearing it first.