Clearly define your short-term and long-term financial goals. This will help you determine the appropriate investment strategy and risk tolerance.
Emergency Fund First:
Before investing, establish an emergency fund to cover three to six months’ worth of living expenses. This provides a financial safety net and prevents the need to liquidate investments in emergencies.
Diversify Your Portfolio:
Diversification involves spreading your investments across different asset classes (stocks, bonds, real estate) to reduce risk.
Exchange-traded funds (ETFs) and mutual funds can provide instant diversification.
Take Advantage of Retirement Accounts:
Contribute to retirement accounts like a 401(k) or an Individual Retirement Account (IRA).
