Which beginners guide to investment for a secure investment

Which beginners guide to investment

Investing your money is a big decision in financial management. You should take all precautions before investing your money and have proper safeguards in place. Investing money is a crucial decision and you should be prepared for any outcome. That is why the Which beginners guide to investment is important to study before you invest your money anywhere.

Investing in markets has assumed significance in recent years because of low interest rates. Rates of interest on cash savings have come down since the financial crisis. Therefore, by following the Which beginners guide to investment, you can be quite sure of good advice regarding your money.

Some hesitate to invest their money in the market because of the associated risks. But, some risk is part of investment and careful risk taking is the way out. Risk is not always a bad thing and more risk could mean better returns. But the related factor of loss should be kept in mind and you may lose some or all of your savings. Therefore, it is strongly advisable to assess your finances before proceeding and have safeguards in place.

1. Clear your debt

Pay off your debts. If it is not possible to pay your debts in total at the present, then keep the debts under control. Make sure that the debts are within manageable limits.

2. Get protected

Be prepared for the possibility that you may have to stop working for an extended period of time. you should check your sick-pay scheme at work and consider taking out income protection insurance if you are self-employed. You could also consider critical illness cover if you have a mortgage or dependents. Another item which should be taken care of before investing is life insurance. You should consider an additional policy if you change jobs or are out of work.

3. Plan for retirement

Plan for your life after retirement well in advance. You should begin at the earliest because state pension is not enough to sustain your lifestyle after retirement. Make sure that you invest your money after contributing to your workplace pension scheme.

4. Ensure that you have savings

Make sure that you have emergency fund. You should have enough cash for any unexpected events. There must have a fund for unexpected events. You should have at least three month salary in savings account before you invest your money.