5 Signs You're Ready to Become an Investor

The investment matter is always interesting to talk about. There are so many things about investing that we must understand. Moreover, the capital market often changes, and we as investors must be prepared for all these changes.

Basically, everyone has the right to become an investor. However, if you want to become an investor, then you must have certain criteria.

Let's discuss 5 signs that you are ready to become an investor!

Already have an Emergency Fund

Why should an investor have an emergency fund?

Because basically, a true investor invests using cold money, aka money that is unlikely to be used in the long term.

Meanwhile, if he does not have an emergency fund, then the money is still hot. Hot money is money that you use for daily needs, and hot money is usually in and out of your account.

And an emergency fund is a fund that someone prepares to deal with certain situations, and of course, an investor must have an emergency fund to back up his current finances.

If you use most of your savings for investment, then sometimes you need a large amount of money and you don't have an emergency fund; then you will be confused to find the money.

Read More: Prepare Five Things Before Starting to Invest

Don't have a lot of bad debt

Another sign that you're ready to become an investor is that you don't have a lot of bad debt.

Debt is called bad if the debt is too much or even exceeds your income. Basically, debt should not be more than 30% of income.

Debt is a liability, an obligation. In debt are the rights of others. Do you want to invest but are still overshadowed by debt collectors?

Unfortunately, there are still many of us who even go into debt to gain profits from investment. If it's a profit, it's not a problem. Unfortunately, the reality in the capital market is not so.

Have enough knowledge

Investing is not like gambling which only depends on luck. Investment decisions must be based on a long analysis. And to do the analysis, of course, we need knowledge.

Investment science does not have to be studied in lectures, or certain majors. Currently, there are many ways to learn the science of investing.

There are many websites, books, journals, and even light articles that talk about investing. Please read, land earn everything. Participate in various investment seminars and trainings, itoequip yourself before plunging into the investment world.

Already good at managing personal finances

Before you try to dive into the world of investment, one of the signs that someone is ready to become an investor is to be good at managing personal finances.

What is meant by managing personal finances here is: already understanding how to record finances, how to save, and how to save money.

An investor must be good at distinguishing between needs and wants. Don't let it be because you want something that isn't important, so you rush to sell the assets you have.

Read More: 6 Benefits of Peer-to-Peer Financing for tThoseof you who wWantto start investing

Have serenity

In making investment decisions, we should not rush.

An investor must have a calm soul,and can think for the long term. Don't just because your friends sell company A's shares, for example, you also rush to sell A's shares without studying the situation first.

The investment world is a rapidly changing world. If you are not good at adapting to various changes, and it is easy to panic when you see a slight loss, it can be fatal later.

By having serenity, you will think more clearly and not carelessly in making decisions. Because once you make a mistake in making investment decisions, you can lose a lot.

Are these 5 signs already in you? If you feel already having it, then you are ready to become an investor!