A couple days ago my client asked me when she should start investing in the stock market. She had been unemployed a couple months and was excited about starting her new job the day after Memorial Day. She asked me whether she should pay off her debt before beginning investing in the stock market. My answer? Absolutely not!
Based on my decades of experience, my recommendations for her, as well as all of my clients are to pay off debt and invest in the stock market at the same time. From her base salary, set aside 10% for her financial freedom fund. Even if she can't afford 10% now, start at 1% and work her way up to 10% and possibly more.
In the words of the infamous Nike commercial, Just Do It! And might I add: "Now"
I personally like to set aside 10% for Giving, 10% for Training, 10% for Play, and 10% for Contingency (some call this an Emergency fund). I also set aside a portion for my Necessities (aka bills). The remainder goes into my financial freedom fund. This is what funds my investments in the stock market.
If your company has a 401k type of investment plan, start investing immediately. If you have your own brokerage account, build your financial freedom fund up to $2000 before deciding on what and how much of a stock, ETF, or equity you will buy.
There are always opportunities to make money in the stock market, even when we were in a down market just a few years ago. All you need is the correct strategic approach.
Best of luck to you on your financial freedom journey!
Aneshia
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