By Linda Terrill
Be it investors, potential investors or general public who is looking to start investing, everyone gets excited the minute they have extra cash on their hands and one of the usual plans is to invest it for quick profits. People want to start making their money work for them and that's a very understandable and rational thought but sure enough one needs to be practical about their finances as well. There is a lot of due diligence and groundwork that goes into understanding the financial markets before one must start investing and it's for their best as well!
An investment making company will generally help you get started with your investment and offer you end-to-end insights into how to make more money and how to invest money to achieve your financial goals. However, there are a few things you as an investor must consider before approaching any Asset Management Company or getting started on your investment journey.
Here are the top 7 things one should consider before they start investing to make more money:
1. Pay Off Prior Dues
No investment can start without you actually being done paying off your dues and clearing your credit. A clean slate for all your debts is very essential to begin investing stress free and focusing on returns.
2. Create Cash Emergency Fund
Before you start investing it is very important for you to have a separate cash fund prepared just in case of emergencies. There is no questioning the volatility of the market and you can't really depend on redeeming from market when in dire need. Having an emergency fund lets you start your investment journey with a bit more ease.
Your Credit Rating Explained - UK Only
By Jim Romand
Having a bad credit rating will severely limit your borrowing options when it comes to consolidating your debts. If you have declared yourself bankrupt, have a CCJ (county court judgment) or defaulted on payments then you will find yourself up against it when trying to secure credit from a lender.
There are two main credit reference agencies in the UK that lenders will normally use, Equifax (08700 100 583) and Experian (0870 241 6212). These agencies supply information to the lender in order for them to give a fair assessment as to whether you should be eligible for credit.
The agencies compile their information about you from a number of sources including the electoral roll and then give you a credit score. The more points you get, the better your chances. However, every time you apply for credit you leave an electronic footprint on your record, which can be seen by a potential lender. Finally, the lender, not the agencies, decide as to whether you should be given credit based on their own criteria and your credit history.
Check Out Our Partner Websites