Want to Start investing in Stock Market

As lot of people keep asking me regarding the specific financial advice when entering a stock market, this quick-read article gives you some pointers before you jump into stock markets

Start Early

Start NOW
Start NOW
  • Best advice anyone can give to you is to Start Early and Early means NOW
  • Whether you are earning 5k/month or 5lac/month, you need to start asap.
  • Only when you start early, you can finish or reach your goal early
Finish Early
Finish early

Emergency Fund

Emergency fund is a lifeline
Emergency fund is a lifeline
  • A must step!! Build an emergency fund equivalent to 3-6 months expenses
  • Understand the importance of emergency fund. There is no second thought about it.
  • Always maintain the emergency fund and review it on yearly basis.
  • Increase the emergency fund every year

Read in detail : Emergency funds

Buy Life Insurance & Health Insurance

  • These two insurances should be in addition to any insurance cover your employer provides.
  • Buy an appropriate term policy life cover (minimum 25 times of annual income)
  • Buy an adequate health insurance (minimum 20 lacs)

Also Read : You should invest in Stock Market if

Also Read : You should not invest in Stock Market if

Become Debt free

  • Apart from home loan, there should not be any debt.
  • Clear off your credit card debts, gold loans, car loans.

Establish a household budget

  • Maintain an elaborate budget with expenses under different heads
  • Don’t run away from noting down every single expense ( every rupee for that matter)
  • Keep %age of money for stock market investment and %age of money for other asset classes
  • Follow Save first, spend later approach.

Follow Goal based investing

  • Split your saving across different and appropriate set of investments
  • Park your money in Fixed deposits, Recurring deposits, liquid funds, debt funds, gold.
  • Start investing in Stocks and mutual funds when you are done with above steps
Goal Based Investing
Goal Based Investing

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