When do investments come into the picture?
We can picture you asking yourself if you have made enough investments to retire early and live a less stressful life. We can also picture you brainstorming with ten investment company brochures trying to make your mind about which one to choose. As personal debt, personal investment is a completely subjective topic. But here are a few pointers we would like you to pay attention to.
Is there a 401k scheme in the company that I work?
If there is, you should waste no time pumping a bit of money into your company account. Your company will add up extra money as a match- this is in return for you trusting them with your money and being loyal to them for years. All firms have different mechanisms in their 401k account schemes. But we are betting our money that most of them are incredibly profitable for their employees. You should try inquiring into this.
If you have high-interest debt, like a credit card, those types of debt should be prioritized before investing. But prioritizing doesn’t mean you can’t make smaller contributions. Let’s say for example at the end of the month you have an extra $500 to go towards your debt and savings goals. In this case, putting $400 towards your high-interest debt, and $100 towards your brokerage is a fairly smart bet. Compounded over time, you will have a solid start to your investing career while also aggressively paying down your debt.
Keep your eyes and ears open
If you could have invested in crypto a year ago, your money wouldn't have doubled. It would have become twelve times. Isn't that mind-boggling? If you are constantly on the lookout for acquiring assets and properties whose value multiplies fast and which show low price volatility, you can make money. It does not matter if you are still paying off your debts. The myth that you need a large sum of money to start investments is what it is - a myth. So look for a good plan, and invest small. Invest slow but start early.