It doesn't really matter even if you aren't earning a six-figure salary for a living, as long as you are opting for the correct investments. Of course, as an investor you should always avoid the basic pitfalls of every investment opportunity.
With this article, Lendbox will suggest you 7 good investing habits that you should must know.
Starting Early is Necessary
Needless to say, you must realize that starting early with your investment is possibly the best financial decision that you can make.
Another plus of starting to invest early is that you would have to chip in much lesser amount every month or every quarter (depending upon your investment strategy) which actually helps you in the long term.
There is nothing like one general investment plan nor there exists any one single reason for anyone to start investing your money in a particular product. Different investment strategies and plans have different nuances associated respectively.
Therefore, one must be thorough with their research before getting started with their investment. Lendbox is a platform that connects investors to eligible borrowers, providing you with a great investment option and doing the research on the borrowers for you.
Now, this shouldn't be confused with living in absolute misery. It simply means that you should understand what is a good spending and what isn't. Also, you should never spend the entire amount that you are earning as then you would not be able to save up anything for your future.
Being financially independent requires you to always have a little extra in your bank account. A pro-tip would be to make a monthly list of your projected expenses and figure out what all you can eliminate from the list.
Cut Down on Your EMI's
Assets pulled out of debt are good but only to an extent and you should know when to put the brakes on. According to a research, your EMIs should not exceed more than 35% of what you earn in a month.
Taking excessive loans from either a moneylender or a bank can pull your financial status down sooner or later.
Investing in a Medical Insurance
Health is one of the most uncertain things in life especially when you cross your 40's. You must know that the hospital and other diagnostic bills are big enough to make a significant dent to one's account.
You never know what life could offer you in future therefore you should start investing in a reliable medical insurance plan that will save you from your future health troubles.
Wisely choose a Term Insurance
Observing your health conditions and liabilities, you must invest in a term insurance. Make sure that you don't go overboard with huge numbers but wisely select a plan while keeping a check on your dependencies and liabilities.
If the policy lapses, you should choose another term insurance but stick to the concept of term insurances even after.
Know Your Priorities
Your financial game becomes stronger once you get hold of knowing the priorities. If you do not need an asset, there is no need to borrow money or to raise a debt for the same. Carefully balance out between repaying your loans and investing.
Hope this post will help you understand more about good investing habits. If you like it then don't forget to share it on facebook and other social media sites.