Prepare these five things before you start investing!

Investment in this day and age is becoming more and more popular. Of course this is good news for all of us. Unfortunately, there are still many people who have started investing but instead of getting profits, they lose a lot.

There are even some people who get into debt because they are tempted by investment profits. In fact, he himself did not prepare anything before investing, only reckless capital. Then some time later, it turned out that his investment lost, and he was increasingly confused about how to pay off his debt.

So that we don't experience the things above, it would be nice for friends who want to start investing to prepare themselves as well as possible.

Then what should be prepared? Let's learn together

1. Understand the Basic Concept of Investment

Investment is not a game. Investment decisions must be based on good knowledge and analysis of many things. Don't invest just to look cool, or to follow your friends. Because if we make the wrong investment, we will end up losing money.

Please learn the basic concepts of investing first. Currently, there are many sources that we can absorb knowledge from: internet articles, books, webinars, and paid classes. In this day and age, there are many sources of knowledge that we can learn, as long as we have the will.

Some basic concepts of investing that we should understand:

- Investment is not gambling. Investment must be studied and analyzed.
- The difference between saving, investing, trading, and gambling.
- The higher the risk, the higher the return, and vice versa. High risk high return.
- Some types of assets that can be used to invest, and so on.

 

2. Make an Investment Plan

Making an investment plan is one of the keys to success in investing. What do we want to invest for? Long term or short term? What percentage return do we need? How much money will you invest each year? And many more.

By making an investment plan, we will be more careful and can maximize our investment to achieve the goals we want to achieve, not just because we follow the crowd.

3. Learn the Risks

As novice investors, we are often tempted by high returns. In fact, every high return should have a high risk too.

Please learn the risks of each investment instrument. Adjust it to your goals and the amount of risk you can bear. Each instrument has its own risks, and don't be fooled by the lure of big profits.

Also, do investment diversification as a precautionary measure and reduce risk. Diversification is done by investing your money in different instruments.

Invest our money in several instruments at once: stock A, stock B, stock C. Invest some in mutual funds, bonds, and precious metals where the risk tends to be lower. The rest can also be invested in P2P Lending, as a form of investment while helping to fund our brothers and sisters.

4. Mental

Mental preparation when investing is also very important. Don't let us invest implusively without thinking. Don't just follow the trend without studying a particular instrument.

For example, the crypto trend, or the IPO stock trend some time ago. Many people are tempted just because of media coverage, and invest without learning more about it. In the end, what? Loss.

Or maybe you've joined a fraudulent investment group that promises 100% return or more? Don't just because you're mentally defeated, you end up investing and your capital is taken away.

5. Capital

This is the most important thing: you must have capital. And before having capital for investment, first fix our financial health. Don't let it happen that just because you want to invest, you find it difficult to pay for the needs of yourself and your family.

Especially if you have to go into debt for an investment that is still uncertain, you should not do it.

So those are some of the things that must be prepared before investing. After reading this, are you ready to invest yet?