Preparing to invest? These things should be known

           

Do you find it very easy to start investing? But now it is not so easy. Investing is part of your overall financial planning. So even if it is one rupee, one should think before investing. Some Things to Know Before Investing

1. Prepare your own budget.

This is the first thing to do before investing. Once you have your own budget, you will be able to understand how much money you can invest after dwelling and other expenses. For budgeting, first write down all the sources you can get from various sources. This includes the salary of your spouse, rental income, interest on investments and dividends. Then make a list of expenses for each month and set aside the amount. This should include everything from grocery bill to petrol costs to vehicles, car EMI. It is better to calculate all revenues and expenses for the month.

Once you have budgeted and followed it, the first stage of financial planning will be completed. Within two to three months you will be able to understand where you are spending the most and where to cut costs. It is also possible to set aside additional savings. Short term and long-term financial goals such as car purchase, children's education and leisure travel can be accurately planned.

2. Get rid of debt

The next step is to make a plan to get out of debt as quickly as possible if you have borrowed money. Debt is of great importance in financial planning for each person's financial planning. Suppose an investor makes 12% of returns per year through various investments. If that percentage is the interest rate on the loan, then there is no point in earning any income. Your wealth will never increase. Unreconstructed loans such as personal loans, credit cards and car loans and constructive loans such as home loans